UNITED STATES CODE
TITLE 26. INTERNAL
REVENUE CODE
SUBTITLE A. INCOME TAXES
CHAPTER 1. NORMAL TAXES AND SURTAXES
SUBCHAPTER A. DETERMINATION OF TAX LIABILITY
PART IV. CREDITS AGAINST TAX
SUBPART D. BUSINESS RELATED CREDITS
26 USCS § 45L New energy efficient home credit.
(a) Allowance of credit.
(1) In general. For purposes of section 38 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--
(A) constructed by the eligible contractor, and
(B) acquired by a person from such eligible
contractor for use as a residence during the taxable year.
(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 (1) or (2) of subsection (c), $ 2,000, and
(B) in the case of a dwelling unit described in
paragraph (3) of subsection (c), $ 1,000.
(b) Definitions. For purposes of this section--
(1) Eligible contractor. The term "eligible
contractor" means--
(A) the person who constructed the qualified new
energy efficient home, or
(B) in the case of a qualified new energy
efficient home which is a manufactured home, the manufactured home producer of
such home.
(2) Qualified new energy efficient home. The term
"qualified new energy efficient home" means a dwelling unit--
(A) located in the
(B) the construction of which is substantially
completed after the date of the enactment of this section, and
(C) which meets the energy saving requirements
of subsection (c).
(3) Construction. The term "construction" includes
substantial reconstruction and rehabilitation.
(4) Acquire. The term "acquire" includes purchase.
(c) Energy saving requirements. A dwelling unit meets the energy saving
requirements of this subsection if such unit is--
(1) 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 this section, 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,
(2) a manufactured home which conforms to Federal
Manufactured Home Construction and Safety Standards (section 3280 of title 24,
Code of Federal Regulations) and which meets the requirements of paragraph (1),
or
(3) a manufactured home which conforms to Federal
Manufactured Home Construction and Safety Standards (section 3280 of title 24,
Code of Federal Regulations) and which--
(A) meets the requirements of paragraph (1)
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
(B) meets the requirements established by the
Administrator of the Environmental Protection Agency under the Energy Star
Labeled Homes program.
(d) Certification.
(1) Method of certification. A certification described in
subsection (c) shall be made in accordance with guidance prescribed by the
Secretary, after consultation with the Secretary of Energy. Such guidance shall
specify procedures and methods for calculating energy and cost savings.
(2) Form. Any certification described in subsection (c) shall
be made in writing in a manner which specifies in readily verifiable fashion
the energy efficient building envelope components and energy efficient heating
or cooling equipment installed and their respective rated energy efficiency
performance.
(e) Basis adjustment. For purposes of this subtitle, if a credit is allowed
under this section in connection with any expenditure for 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
determined.
(f) Coordination with investment credit. For purposes of this section,
expenditures taken into account under section 47 or 48(a) shall not be taken
into account under this section.
(g) Termination. This section shall not apply to any qualified new energy
efficient home acquired after December 31, 2007.