New energy efficient home credit

1. Law
2. USC 26
3. Internal Revenue Code
4. Income Taxes
5. NORMAL TAXES AND SURTAXES
6. Determination of Tax Liability
7. CREDITS AGAINST TAX
8. Business Related Credits
9. New energy efficient home credit

§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 United States,

(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 2006 International Energy Conservation Code, as such Code (including supplements) is in effect on January 1, 2006, 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 (part 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 (part 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, 2020.

(Added Pub. L. 109–58, title XIII, §1332(a), Aug. 8, 2005, 119 Stat. 1024 ; amended Pub. L. 109–432, div. A, title II, §205, Dec. 20, 2006, 120 Stat. 2945 ; Pub. L. 110–172, §11(a)(7), Dec. 29, 2007, 121 Stat. 2485 ; Pub. L. 110–343, div. B, title III, §304, Oct. 3, 2008, 122 Stat. 3845 ; Pub. L. 111–312, title VII, §703(a), Dec. 17, 2010, 124 Stat. 3311 ; Pub. L. 112–240, title IV, §408(a), (b), Jan. 2, 2013, 126 Stat. 2342 ; Pub. L. 113–295, div. A, title I, §156(a), Dec. 19, 2014, 128 Stat. 4021 ; Pub. L. 114–113, div. Q, title I, §188(a), Dec. 18, 2015, 129 Stat. 3074 ; Pub. L. 115–123, div. D, title I, §40410(a), Feb. 9, 2018, 132 Stat. 150 ; Pub. L. 116–94, div. Q, title I, §129(a), Dec. 20, 2019, 133 Stat. 3232 .)

References in Text

The date of the enactment of this section, referred to in subsec. (b)(2)(B), is the date of enactment of Pub. L. 109–58, which was approved Aug. 8, 2005.

The National Appliance Energy Conservation Act of 1987, referred to in subsec. (c)(1)(A)(ii), is Pub. L. 100–12, Mar. 17, 1987, 101 Stat. 103 . For complete classification of this Act to the Code, see Short Title of 1987 Amendment note set out under section 6201 of Title 42, The Public Health and Welfare, and Tables.

Amendments

2019-Subsec. (g). Pub. L. 116–94 substituted "December 31, 2020" for "December 31, 2017".

2018-Subsec. (g). Pub. L. 115–123 substituted "December 31, 2017" for "December 31, 2016".

2015-Subsec. (g). Pub. L. 114–113 substituted "December 31, 2016" for "December 31, 2014".

2014-Subsec. (g). Pub. L. 113–295 substituted "December 31, 2014" for "December 31, 2013".

2013-Subsec. (c)(1)(A)(i). Pub. L. 112–240, §408(b), substituted "2006 International Energy Conservation Code, as such Code (including supplements) is in effect on January 1, 2006" for "2003 International Energy Conservation Code, as such Code (including supplements) is in effect on the date of the enactment of this section".

Subsec. (g). Pub. L. 112–240, §408(a), substituted "December 31, 2013" for "December 31, 2011".

2010-Subsec. (g). Pub. L. 111–312 substituted "December 31, 2011" for "December 31, 2009".

2008-Subsec. (g). Pub. L. 110–343 substituted "December 31, 2009" for "December 31, 2008".

2007-Subsec. (c)(2), (3). Pub. L. 110–172 substituted "part 3280" for "section 3280" in par. (2) and in introductory provisions of par. (3).

2006-Subsec. (g). Pub. L. 109–432 substituted "2008" for "2007".

Effective Date of 2019 Amendment

Pub. L. 116–94, div. Q, title I, §129(b), Dec. 20, 2019, 133 Stat. 3232 , provided that: "The amendment made by this section [amending this section] shall apply to homes acquired after December 31, 2017."

Effective Date of 2018 Amendment

Pub. L. 115–123, div. D, title I, §40410(b), Feb. 9, 2018, 132 Stat. 150 , provided that: "The amendment made by this section [amending this section] shall apply to homes acquired after December 31, 2016."

Effective Date of 2015 Amendment

Pub. L. 114–113, div. Q, title I, §188(b), Dec. 18, 2015, 129 Stat. 3074 , provided that: "The amendment made by this section [amending this section] shall apply to homes acquired after December 31, 2014."

Effective Date of 2014 Amendment

Pub. L. 113–295, div. A, title I, §156(b), Dec. 19, 2014, 128 Stat. 4022 , provided that: "The amendment made by this section [amending this section] shall apply to homes acquired after December 31, 2013."

Effective Date of 2013 Amendment

Pub. L. 112–240, title IV, §408(c), Jan. 2, 2013, 126 Stat. 2342 , provided that: "The amendments made by this section [amending this section] shall apply to homes acquired after December 31, 2011."

Effective Date of 2010 Amendment

Pub. L. 111–312, title VII, §703(b), Dec. 17, 2010, 124 Stat. 3311 , provided that: "The amendment made by this section [amending this section] shall apply to homes acquired after December 31, 2009."

Effective Date

Section applicable to qualified new energy efficient homes acquired after Dec. 31, 2005, in taxable years ending after such date, see section 1332(f) of Pub. L. 109–58, set out as an Effective Date of 2005 Amendments note under section 38 of this title.

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