[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5187 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 5187
To amend the Internal Revenue Code of 1986 to extend, increase, and
modify the nonbusiness energy property credit.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 7, 2021
Mr. Gomez (for himself and Mr. Blumenauer) introduced the following
bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to extend, increase, and
modify the nonbusiness energy property credit.
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 ``Home Energy Savings Act of 2021''.
SEC. 2. EXTENSION, INCREASE, AND MODIFICATIONS OF NONBUSINESS ENERGY
PROPERTY CREDIT.
(a) Extension of Credit.--Section 25C(g)(2) is amended by striking
``December 31, 2021'' and inserting ``December 31, 2031''.
(b) Increase in Credit Percentage for Qualified Energy Efficiency
Improvements.--Section 25C(a)(1) is amended by striking ``10 percent''
and inserting ``30 percent''.
(c) Application of Annual Limitation in Lieu of Lifetime
Limitation.--Section 25C(b) is amended to read as follows:
``(b) Limitations.--
``(1) In general.--The credit allowed under this section
with respect to any taxpayer for any taxable year shall not
exceed $1,200.
``(2) Windows.--The credit allowed under this section by
reason of subsection (a)(1) with respect to any taxpayer for
any taxable year shall not exceed--
``(A) in the aggregate with respect to all exterior
windows and skylights which are not described in
subparagraph (B), $200,
``(B) in the aggregate with respect to all exterior
windows and skylights which meet the standard for the
most efficient certification under applicable Energy
Star program requirements, the excess (if any) of $600
over the credit so allowed with respect to all windows
and skylights taken into account under subparagraph
(A).
``(3) Doors.--The credit allowed under this section by
reason of subsection (a)(1) with respect to any taxpayer for
any taxable year shall not exceed--
``(A) $250 in the case of any exterior door, and
``(B) $500 in the aggregate with respect to all
exterior doors.''.
(d) Modifications Related to Qualified Energy Efficiency
Improvements.--
(1) Standards for energy efficient building envelope
components.--Section 25C(c)(2) is amended by striking ``meets--
'' and all that follows through the period at the end and
inserting the following: ``meets--
``(A) in the case of an exterior window, a
skylight, or an exterior door, applicable Energy Star
program requirements, and
``(B) in the case of any other component, the
prescriptive criteria for such component established by
the IECC standard in effect as of the beginning of the
calendar year which is 2 years prior to the calendar
year in which such component is placed in service.''.
(2) Roofs not treated as building envelope components.--
Section 25C(c)(3) is amended by adding ``and'' at the end of
subparagraph (B), by striking ``, and'' at the end of
subparagraph (C) and inserting a period, and by striking
subparagraph (D).
(3) Air barrier insulation added to definition of building
envelope component.--Section 25C(c)(3)(A) is amended by
striking ``material or system'' and inserting ``material or
system, including air barrier insulation,''.
(e) Modification of Residential Energy Property Expenditures.--
Section 25C(d) is amended to read as follows:
``(d) Residential Energy Property Expenditures.--For purposes of
this section--
``(1) In general.--The term `residential energy property
expenditures' means expenditures made by the taxpayer for
qualified energy property which is--
``(A) installed on or in connection with a dwelling
unit located in the United States and used as a
residence by the taxpayer, and
``(B) originally placed in service by the taxpayer.
Such term includes expenditures for labor costs properly
allocable to the onsite preparation, assembly, or original
installation of the property.
``(2) Qualified energy property.--The term `qualified
energy property' means any of the following which meet or
exceed the highest efficiency tier (not including any advanced
tier) established by the Consortium for Energy Efficiency which
is in effect as of the beginning of the calendar year in which
the property is placed in service:
``(A) An electric heat pump water heater.
``(B) An electric heat pump.
``(C) A central air conditioner.
``(D) A natural gas, propane, or oil water heater.
``(E) A natural gas, propane, or oil furnace or hot
water boiler.''.
(f) Home Energy Audits.--
(1) In general.--Section 25C(a) is amended by striking
``and'' at the end of paragraph (1), by striking the period at
the end of paragraph (2) and inserting ``, and'', and by adding
at the end the following new paragraph:
``(3) 30 percent of the amount paid or incurred by the
taxpayer during the taxable year for home energy audits.''.
(2) Limitation.--Section 25C(b), as amended by subsection
(c), is amended adding at the end the following new paragraph:
``(5) Home energy audits.--
``(A) Dollar limitation.--The amount of the credit
allowed under this section by reason of subsection
(a)(3) shall not exceed $150.
``(B) Substantiation requirement.--No credit shall
be allowed under this section by reason of subsection
(a)(3) unless the taxpayer includes with the taxpayer's
return of tax such information or documentation as the
Secretary may require.''.
(3) Home energy audits.--
(A) In general.--Section 25C, as amended by
subsection (a), is amended by redesignating subsections
(e), (f), and (g), as subsections (f), (g), and (h),
respectively, and by inserting after subsection (d) the
following new subsection:
``(e) Home Energy Audits.--For purposes of this section, the term
`home energy audit' means an inspection and written report with respect
to a dwelling unit located in the United States and owned or used by
the taxpayer as the taxpayer's principal residence (within the meaning
of section 121) which--
``(1) identifies the most significant and cost-effective
energy efficiency improvements with respect to such dwelling
unit, including an estimate of the energy and cost savings with
respect to each such improvement, and
``(2) is conducted and prepared by a home energy auditor
that meets the certification or other requirements specified by
the Secretary (after consultation with the Secretary of Energy,
and not later than 180 days after the date of the enactment of
this subsection) in regulations or other guidance.''.
(B) Conforming amendment.--Section 1016(a)(33) is
amended by striking ``section 25C(f)'' and inserting
``section 25C(g)''.
(4) Lack of substantiation treated as mathematical or
clerical error.--Section 6213(g)(2) is amended--
(A) in subparagraph (P), by striking ``and'' at the
end,
(B) in subparagraph (Q), by striking the period at
the end and inserting ``, and'', and
(C) by adding at the end the following:
``(R) an omission of correct information or
documentation required under section 25C(b)(5)(B)
(relating to home energy audits) to be included on a
return.''.
(g) Identification Number Requirement.--
(1) In general.--Section 25C, as amended by subsections (a)
and (f), is amended by redesignating subsection (h) as
subsection (i) and by inserting after subsection (g) the
following new subsection:
``(h) Product Identification Number Requirement.--
``(1) In general.--No credit shall be allowed under
subsection (a) with respect to any item of specified property
placed in service after December 31, 2023, unless--
``(A) such item is produced by a qualified
manufacturer, and
``(B) the taxpayer includes the qualified product
identification number of such item on the return of tax
for the taxable year.
``(2) Qualified product identification number.--For
purposes of this section, the term `qualified product
identification number' means, with respect to any item of
specified property, the product identification number assigned
to such item by the qualified manufacturer pursuant to the
methodology referred to in paragraph (3).
``(3) Qualified manufacturer.--For purposes of this
section, the term `qualified manufacturer' means any
manufacturer of specified property which enters into an
agreement with the Secretary which provides that such
manufacturer will--
``(A) assign a product identification number to
each item of specified property produced by such
manufacturer utilizing a methodology that will ensure
that such number (including any alphanumeric) is unique
to each such item (by utilizing numbers or letters
which are unique to such manufacturer or by such other
method as the Secretary may provide),
``(B) label such item with such number in such
manner as the Secretary may provide, and
``(C) make periodic written reports to the
Secretary (at such times and in such manner as the
Secretary may provide) of the product identification
numbers so assigned and including such information as
the Secretary may require with respect to the item of
specified property to which such number was so
assigned.
``(4) Specified property.--For purposes of this subsection,
the term `specified property' means any qualified energy
property and any property described in subparagraph (B) or (C)
of subsection (c)(3).''.
(2) Omission of correct product identification number
treated as mathematical or clerical error.--Section 6213(g)(2),
as amended by the preceding provisions of this Act, is
amended--
(A) in subparagraph (Q), by striking ``and'' at the
end,
(B) in subparagraph (R), by striking the period at
the end and inserting ``, and'', and
(C) by adding at the end the following:
``(S) an omission of a correct product
identification number required under section 25C(h)
(relating to credit for nonbusiness energy property) to
be included on a return.''.
(h) Effective Dates.--
(1) In general.--Except as otherwise provided by this
subsection, the amendments made by this section shall apply to
property placed in service after December 31, 2021.
(2) Home energy audits.--The amendments made by subsection
(f) shall apply to amounts paid or incurred after December 31,
2021.
(3) Identification number requirement.--The amendments made
subsection (g) shall apply to property placed in service after
December 31, 2023.
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