< Back to S. 1637 (111th Congress, 2009–2010)

Text of the Expanding Building Efficiency Incentives Act of 2009

This bill was introduced on August 6, 2009, in a previous session of Congress, but was not enacted. The text of the bill below is as of Aug 7, 2009 (Introduced).

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Source: GPO

II

111th CONGRESS

1st Session

S. 1637

IN THE SENATE OF THE UNITED STATES

August 7, 2009

(for herself, Mrs. Feinstein, and Mr. Bingaman) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to improve and extend certain energy-related tax provisions, and for other purposes.

1.

Short title; amendment of 1986 Code; table of contents

(a)

Short title

This Act may be cited as the Expanding Building Efficiency Incentives Act of 2009.

(b)

Amendment of 1986 Code

Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.

(c)

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title; amendment of 1986 Code; table of contents.

Sec. 2. Increase in, and extension of, new energy efficient home credit.

Sec. 3. Modification of deduction for energy efficient commercial buildings.

Sec. 4. Energy ratings of non-business property.

Sec. 5. Credit for home performance auditor certifications.

2.

Increase in, and extension of, new energy efficient home credit

(a)

New tier; credit amount for new tier

(1)

New tier

Subsection (c) of section 45L is amended to read as follows:

(c)

Energy savings requirements

(1)

In general

A dwelling unit meets the energy saving requirements of this subsection if such unit is—

(A)

described in paragraph (2),

(B)

described in paragraph (3),

(C)

a manufactured home described in paragraph (4), or

(D)

a manufactured home described in paragraph (5).

(2)

Dwelling unit described in paragraph (2)

A dwelling unit is described in this paragraph if such unit is certified—

(A)

to have a level of annual heating and cooling energy consumption which is at least 50 percent below the annual level of heating and cooling energy consumption of a comparable dwelling unit—

(i)

which is constructed in accordance with the standards of chapter 4 of the 2003 International Energy Conservation Code, as such Code (including supplements) is in effect on the date of the enactment of the Energy Tax Incentives Act of 2005, and

(ii)

for which the heating and cooling equipment efficiencies correspond to the minimum allowed under the regulations established by the Department of Energy pursuant to the National Appliance Energy Conservation Act of 1987 and in effect at the time of completion of construction, and

(B)

to have building envelope component improvements account for at least 1/5 of such 50 percent.

The Secretary, in consultation with the Secretary of Energy shall provide by regulation for the application of this paragraph in the case of a dwelling unit in a multifamily building that is more than 3 stories above grade, or in any other building that is not within the scope of such chapter 4. If, upon the acquisition of such unit by any person described in subsection (a)(1)(A)(ii)(I), the amount of the credit allowed under this section with respect to such unit shall be disclosed to such person.
(3)

Dwelling unit described in paragraph (3)

A dwelling unit is described in this paragraph if such unit is certified—

(A)

to have a level of annual total energy consumption (including heating, cooling, water heating, lighting, and appliance energy use) which is at least 50 percent below the annual level of total energy consumption of a comparable dwelling unit which is constructed in accordance with the 2004 Supplement of the 2003 International Energy Conservation Code, and

(B)

to have building envelope component improvements account for at least 1/5 of such 50 percent.

(4)

Manufactured home described in paragraph (4)

A manufactured home is described in this paragraph if such manufactured home conforms to Federal Manufactured Home Construction and Safety Standards (part 3280 of title 24, Code of Federal Regulations) and meets the requirements of a dwelling unit described in paragraph (2).

(5)

Manufactured home described in paragraph (5)

A manufactured home is described in this paragraph if such manufactured home conforms to Federal Manufactured Home Construction and Safety Standards (part 3280 of title 24, Code of Federal Regulations) and—

(A)

meets the requirements of—

(i)

a dwelling unit described in paragraph (2), applied by substituting 30 percent for 50 percent both places it appears therein and by substituting 1/3 for 1/5 in subparagraph (B) thereof, or

(ii)

a dwelling unit described in paragraph (3), or

(B)

meets the requirements established by the Administrator of the Environmental Protection Agency under the Energy Star Labeled Homes program as in effect on the date of the enactment of the Expanding Building Efficiency Incentives Act of 2009, or

(C)

meets the requirements under the Energy Star Labeled Homes program established after the date of the enactment of the Expanding Building Efficiency Incentives Act of 2009.

.

(2)

Credit amount for new tier

Paragraph (2) of section 45L(a) is amended to read as follows:

(2)

Applicable amount

For purposes of paragraph (1), the applicable amount is an amount equal to—

(A)

in the case of a dwelling unit described in paragraph (2) or (4) of subsection (c), $2,000,

(B)

in the case of a dwelling unit described in paragraph (3) of subsection (c), $5,000,

(C)

in the case of a manufactured home described in paragraph (5)(A)(i) or (5)(B) of subsection (c), $1,500, and

(D)

in the case of a manufactured home described in paragraph (5)(A)(ii) or (5)(C) of subsection (c), $2,500.

Nothing in this section shall permit the same dwelling unit or manufactured home to qualify for more than one applicable amount.

.

(b)

Credit available for rental units, owner-builders, and qualified low-income buildings; credit amount for qualified low-income buildings

(1)

In general

Paragraph (1) of section 45L(a) is amended to read as follows:

(1)

In general

For purposes of section 38—

(A)

in the case of an eligible contractor, the new energy efficient home credit for the taxable year is the applicable amount for each qualified new energy efficient home which is—

(i)

constructed by the eligible contractor, and

(ii)
(I)

acquired by a person from such eligible contractor and used by any person as a residence during the taxable year, or

(II)

used by such eligible contractor as a residence during the taxable year, and

(B)

in the case of a taxpayer, the new energy efficient home credit for the taxable year is the applicable amount for each qualified new energy efficient home which is in a qualified low-income building (as defined in section 42(c)(2))—

(i)

placed in service by the taxpayer during the taxable year, and

(ii)

for which such taxpayer is allowed a credit under section 42 or a subaward under section 1602(c) of the American Recovery and Reinvestment Tax Act of 2009.

.

(2)

Credit amount

Paragraph (2) of section 45L(a), as amended by this section, is amended by adding at the end the following new flush sentence:

In the case of a dwelling unit in a qualified low-income building (as so defined), the applicable dollar amount for such a dwelling unit described in 1 of the preceding subparagraphs shall be equal to 150 percent of the dollar amount otherwise specified in such preceding subparagraph, except that if the credit under section 42 with respect to such unit is determined by applying section 42(d)(5)(B), then the applicable dollar amount shall be 115 percent of such dollar amount so specified.

.

(3)

No basis adjustment

Section 45L(e) is amended by inserting (other than a qualified low-income building) after any property.

(c)

Certification method for high rise multifamily and mixed use buildings

Section 45L(d)(1) is amended by inserting , and in the case of high rise multifamily and mixed use buildings, after examining the methods required for such buildings under section 179D after the Secretary of Energy.

(d)

Credit allowed against alternative minimum tax

Subparagraph (B) of section 38(c)(4) is amended—

(1)

by redesignating clauses (vi), (vii), and (viii) as clauses (vii), (viii), and (ix), respectively, and

(2)

by inserting after clause (v) the following new clause:

(vi)

the credit determined under section 45L,

.

(e)

Extension

Subsection (g) of section 45L is amended to read as follows:

(g)

Termination

This section shall not apply to the acquisition of any qualified new energy efficient home—

(1)

described in subsection (a)(2)(A) after December 31, 2012,

(2)

described in subsection (a)(2)(B) after December 31, 2013,

(3)

described in subsection (a)(2)(C) after December 31, 2010, and

(4)

described in subsection (a)(2)(D) after December 31, 2013.

.

(f)

Effective dates

(1)

In general

The amendments made by this section shall apply to homes constructed and acquired or placed in service after December 31, 2008.

(2)

AMT

The amendments made by subsection (d) shall apply to credits determined under section 45L of the Internal Revenue Code of 1986 in taxable years beginning after December 31, 2008, and to carrybacks of such credits.

3.

Modification of deduction for energy efficient commercial buildings

(a)

Increase in maximum amount of deduction

(1)

In general

Subparagraph (A) of section 179D(b)(1) is amended by striking $1.80 and inserting $3.00.

(2)

Partial allowance

Paragraph (1) of section 179D(d) is amended to read as follows:

(1)

Partial allowance

(A)

In general

Except as provided in subsection (f), if—

(i)

the requirement of subsection (c)(1)(D) is not met, but

(ii)

there is a certification in accordance with paragraph (6) that—

(I)

any system referred to in subsection (c)(1)(C) satisfies the energy-savings targets established by the Secretary under subparagraph (B) with respect to such system, or

(II)

the systems referred to in subsection (c)(1)(C)(ii) and subsection (c)(1)(C)(iii) together satisfy the energy-savings targets established by the Secretary under subparagraph (B) with respect to such systems,

then the requirement of subsection (c)(1)(D) shall be treated as met with respect to such system or systems, and the deduction under subsection (a) shall be allowed with respect to energy efficient commercial building property installed as part of such system and as part of a plan to meet such targets, except that subsection (b) shall be applied to such property described in clause (ii)(I) by substituting $1.00 for $3.00 and to such property described in clause (ii)(II) by substituting $2.20 for $3.00.
(B)

Regulations

(i)

In general

The Secretary, after consultation with the Secretary of Energy, shall establish a target for each system described in subsection (c)(1)(C) which, if such targets were met for all such systems, the building would meet the requirements of subsection (c)(1)(D).

(ii)

Combined systems

The Secretary, after consultation with the Secretary of Energy, shall establish not later than 6 months after the date of the enactment of the Expanding Building Efficiency Incentives Act of 2009 a prescriptive partial compliance pathway for combined envelope and mechanical system performance that details the appropriate components, efficiency levels, or other relevant information for which the required level of combined savings in both categories can be deemed to have been achieved.

.

(b)

Denial of double benefit

Section 179D is amended by redesignating subsections (g) and (h) as subsections (h) and (i), respectively, and by inserting after subsection (f) the following new subsection:

(g)

Coordination with new energy efficient home credit

No deduction shall be allowed under this section with respect to any building or dwelling unit with respect to which a credit under section 45L was allowed.

.

(c)

Effective date

The amendments made by this section shall apply to property placed in service in taxable years beginning after the date of the enactment of this Act.

4.

Energy ratings of non-business property

(a)

In general

Subpart A of part IV of subchapter A of chapter 1 is amended by inserting after section 25D the following new section:

25E.

Energy ratings of non-business property

(a)

In general

In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the amount paid or incurred by the taxpayer for a qualified home energy rating conducted during such taxable year.

(b)

Limitation

The amount allowed as a credit under subsection (a) with respect to any taxpayer for any taxable year shall not exceed $200.

(c)

Qualified home energy rating

For purposes of this section, the term qualified home energy rating means a home energy rating conducted with respect to any residence of the taxpayer by a home performance auditor certified by a provider accredited by the Building Performance Institute (BPI), the Residential Energy Services Network (RESNET), or equivalent rating system as determined by the Secretary of Energy.

(d)

Termination

This section shall not apply with respect to any rating conducted after December 31, 2011.

.

(b)

Clerical amendment

The table of sections for subpart A of part IV of subchapter A chapter 1 is amended by inserting after the item relating to section 25D the following new item:

Sec. 25E. Energy ratings of non-business property.

.

(c)

Effective date

The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after the date of the enactment of this Act.

5.

Credit for home performance auditor certifications

(a)

In general

Subpart D of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section:

45R.

Home performance auditor certification credit

(a)

In general

For purposes of section 38, the home performance auditor certification credit determined under this section for any taxable year is an amount equal to the qualified training and certification costs paid or incurred by the taxpayer which may be taken into account for such taxable year.

(b)

Qualified training and certification costs

(1)

In general

The term qualified training and certification costs means costs paid or incurred for training which is required for the taxpayer or employees of the taxpayer to be certified as home performance auditors for purposes of providing qualified home energy ratings under section 25E(c).

(2)

Limitation

The qualified training and certification costs taken into account under subsection (a)(1) for the taxable year with respect to any individual shall not exceed $500 reduced by the amount of the credit allowed under subsection (a)(1) to the taxpayer (or any predecessor) with respect to such individual for all prior taxable years.

(3)

Year costs taken into account

Qualified training and certifications costs with respect to any individual shall not be taken into account under subsection (a)(1) before the taxable year in which the individual with respect to whom such costs are paid or incurred has performed 25 qualified home energy ratings under section 25E(c).

(c)

Special rules

(1)

Aggregation rules

For purposes of this section, all persons treated as a single employer under subsections (a) and (b) of section 52 shall be treated as 1 person.

(2)

Denial of double benefit

(A)

In general

No deduction shall be allowed for that portion of the expenses otherwise allowable as a deduction for the taxable year which is equal to the amount taken into account under subsection (a) for such taxable year.

(B)

Amount previously deducted

No credit shall be allowed under subsection (a) with respect to any amount for which a deduction has been allowed in any preceding taxable year.

.

(b)

Credit treated as part of general business credit

Section 38(b) is amended by striking plus at the end of paragraph (34), by striking the period at the end of paragraph (35) and inserting plus, and by adding at the end the following new paragraph:

(36)

the home performance auditor certification credit determined under section 45R(a).

.

(c)

Conforming amendment

The table of sections for subpart D of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 45Q the following new item:

Sec. 45R. Home performance auditor certification credit.

.

(d)

Effective date

The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act.