Internal Revenue Code:Sec. 45L. New Energy Efficient Home Credit

From TaxAlmanac

Location in Internal Revenue 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 TAXES
             Subpart D - Business Related Credits

Statute

       
    SEC. 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 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, 2008.

Sources

          Energy Policy Act of 2005, Sec. 1332(a), established this new Sec. 45L 
          to the IRC. Effective Date- The amendments made by this section shall
          apply to qualified new energy efficient homes acquired after December 31,
          2005, in taxable years ending after such date.