[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4974 Introduced in Senate (IS)]
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116th CONGRESS
2d Session
S. 4974
To amend the Internal Revenue Code of 1986 to establish a refundable
tax credit for the installation of energy efficient air source heat
pumps.
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IN THE SENATE OF THE UNITED STATES
December 8, 2020
Mr. King introduced the following bill; which was read twice and
referred to the Committee on Finance
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A BILL
To amend the Internal Revenue Code of 1986 to establish a refundable
tax credit for the installation of energy efficient air source heat
pumps.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Air Source Heat Pump Act of 2020''.
SEC. 2. REFUNDABLE TAX CREDIT FOR AIR SOURCE HEAT PUMPS.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 36 the following new section:
``SEC. 36A. AIR SOURCE HEAT PUMP CREDIT.
``(a) Allowance of Credit.--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 lesser of--
``(1) 20 percent of any qualified air source heat pump
expenditures, or
``(2) $800.
``(b) Qualified Air Source Heat Pump Expenditures.--The term
`qualified air source heat pump expenditures' means an expenditure for
property which uses an air source heat pump, as part of a ducted or
ductless system, to heat and cool a dwelling unit, provided that--
``(1) the dwelling unit is located in the United States and
used as the principal residence (as such term is used in
section 121) of the taxpayer, and
``(2) the air source heat pump--
``(A)(i) satisfies the applicable performance
requirements to meet the Cold-Climate Air-Source Heat
Pump Specification, as provided by Northeast Energy
Efficiency Partnerships, as in effect at the time that
the expenditure for such equipment is made (or any
successor standards provided by Northeast Energy
Efficiency Partnerships), or
``(ii) received the most efficient certification
under applicable Energy Star program requirements which
are in effect at the time that the expenditure for such
property is made (or any successor standards
established by the Environmental Protection Agency),
``(B) is installed in accordance with the Air
Conditioning Contractors of America HVAC Quality
Installation Specification (ANSI/ACCA Standard 5 QI-
2015), or a subsequent version approved for this
purpose by the Secretary of Energy, and
``(C) is displacing heating load previously
provided by an existing natural gas, propane, resistive
electric, or oil central heating system.
``(c) Special Rules.--For purposes of this section--
``(1) Application of certain rules.--Rules similar to the
rules under paragraphs (1), (5), (6), (7), and (8) of section
25D(e) shall apply.
``(2) Joint ownership.--
``(A) In general.--Any expenditure otherwise
qualifying as a qualified air source heat pump
expenditure under this section shall not be treated as
failing to so qualify merely because such expenditure
was made with respect to 2 or more dwelling units.
``(B) Limits applied separately.--In the case of
any expenditure described in subparagraph (A), the
amount of the credit allowable under subsection (a)
shall (subject to paragraph (1)) be computed separately
with respect to the amount of the expenditure made for
each dwelling unit.
``(3) Property financed by subsidized energy financing.--
For purposes of determining the amount of expenditures made by
any individual with respect to any property, there shall not be
taken into account expenditures which are made from subsidized
energy financing (as defined in section 48(a)(4)(C)).
``(d) Basis Adjustments.--For purposes of this subtitle, if a
credit is allowed under this section for any expenditure with respect
to any property, the increase in the basis of such property which would
(but for this subsection) result from such expenditure shall be reduced
by the amount of the credit so allowed.''.
(b) Conforming Amendments.--
(1) Section 6211(b)(4)(A) of the Internal Revenue Code of
1986 is amended by inserting ``36A,'' after ``36,''.
(2) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of such Code is amended by inserting
after the item relating to section 36 the following new item:
``Sec. 36A. Air source heat pump credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
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