Sec. 5031. Credit for new energy efficient residential buildings
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Section 45L is amended to read as follows: 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 residence which is— constructed by the eligible contractor, and acquired by a person from such eligible contractor for use as a residence during the taxable year. For purposes of subsection (a), the applicable amount shall be an amount equal to $1,500 increased (but not above $3,000) by $100 for every 5 percentage points by which the efficiency ratio for the qualified residence is certified to be greater than 25 percent.
For purposes of this section, the efficiency ratio of a qualified residence shall be equal to the quotient, expressed as a percentage, obtained by dividing— an amount equal to the difference between— the annual level of energy consumption of the qualified residence, and the annual level of energy consumption of the baseline residence, by the annual level of energy consumption of the baseline residence. For purposes of this section, the baseline residence shall be a residence which is— comparable to the qualified residence, and constructed in accordance with the standards of the 2015 International Energy Conservation Code, as such Code (including supplements) is in effect on the date of the enactment of the American Energy Innovation Act .
For purposes of this section: The term eligible contractor means— the person who constructed the qualified residence, or in the case of a qualified residence which is a manufactured home, the manufactured home producer of such residence. The term qualified residence means a dwelling unit— located in the United States, the construction of which is substantially completed after the date of the enactment of this section, and which is certified to have an annual level of energy consumption that is less than the baseline residence and an efficiency ratio of not less than 25 percent.
The term construction does not include substantial reconstruction or rehabilitation. A certification described in this section shall be made— in accordance with guidance prescribed by, and by a third-party that is accredited by a certification program approved by, the Secretary, in consultation with the Secretary of Energy. Such guidance shall specify procedures and methods for calculating annual energy consumption levels, and shall include requirements to ensure the safe operation of energy efficiency improvements and that all improvements are installed according to the applicable standards of such certification program.
Any calculation under paragraph
(1)shall be prepared by qualified computer software. For purposes of this paragraph, the term qualified computer software means software— for which the software designer has certified that the software meets all procedures and detailed methods for calculating energy consumption levels as required by the Secretary, and which provides such forms as required to be filed by the Secretary in connection with energy consumption levels and the credit allowed under this section. For purposes of this subtitle, if a credit is allowed under this section in connection with any expenditure for any property (other than a qualified low-income building, as described in section 42(c)(2)), 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. For purposes of this section, expenditures taken into account under section 25D or 47 shall not be taken into account under this section. . The amendment made by this section shall apply to any qualified residence acquired after December 31, 2017.