Sec. 13301. Extension, increase, and modifications of nonbusiness energy property credit
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Section 25C(g)(2) is amended by striking December 31, 2021 and inserting December 31, 2032 . Section 25C(a) is amended to read as follows: In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 30 percent of the sum of— the amount paid or incurred by the taxpayer for qualified energy efficiency improvements installed during such taxable year, and the amount of the residential energy property expenditures paid or incurred by the taxpayer during such taxable year. .
Section 25C(b) is amended to read as follows: The credit allowed under this section with respect to any taxpayer for any taxable year shall not exceed $1,200. The credit allowed under this section by reason of subsection (a)(2) with respect to any taxpayer for any taxable year shall not exceed, with respect to any item of qualified energy property, $600. The credit allowed under this section by reason of subsection (a)(1) with respect to any taxpayer for any taxable year shall not exceed, in the aggregate with respect to all exterior windows and skylights, $600.
The credit allowed under this section by reason of subsection (a)(1) with respect to any taxpayer for any taxable year shall not exceed— $250 in the case of any exterior door, and $500 in the aggregate with respect to all exterior doors. Notwithstanding paragraphs
(1)and (2), the credit allowed under this section by reason of subsection (a)(2) with respect to any taxpayer for any taxable year shall not, in the aggregate, exceed $2,000 with respect to amounts paid or incurred for property described in clauses
(i)and
(ii)of subsection (d)(2)(A) and in subsection (d)(2)(B). . Section 25C(c)(2) is amended by striking meets— and all that follows through the period at the end and inserting the following: meets— in the case of an exterior window or skylight, Energy Star most efficient certification requirements, in the case of an exterior door, applicable Energy Star requirements, and in the case of any other component, the prescriptive criteria for such component established by the most recent International Energy Conservation Code 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. . 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). Section 25C(c)(3)(A) is amended by inserting , including air sealing material or system, after material or system . Section 25C(d) is amended to read as follows: For purposes of this section— The term residential energy property expenditures means expenditures made by the taxpayer for qualified energy property which is— installed on or in connection with a dwelling unit located in the United States and used as a residence by the taxpayer, and 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. The term qualified energy property means any of the following: 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: An electric or natural gas heat pump water heater. An electric or natural gas heat pump. A central air conditioner. A natural gas, propane, or oil water heater. A natural gas, propane, or oil furnace or hot water boiler. A biomass stove or boiler which— uses the burning of biomass fuel to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit, and has a thermal efficiency rating of at least 75 percent (measured by the higher heating value of the fuel). Any oil furnace or hot water boiler which— is placed in service after December 31, 2022, and before January 1, 2027, and— meets or exceeds 2021 Energy Star efficiency criteria, and is rated by the manufacturer for use with fuel blends at least 20 percent of the volume of which consists of an eligible fuel, or is placed in service after December 31, 2026, and— achieves an annual fuel utilization efficiency rate of not less than 90, and is rated by the manufacturer for use with fuel blends at least 50 percent of the volume of which consists of an eligible fuel. Any improvement to, or replacement of, a panelboard, sub-panelboard, branch circuits, or feeders which— is installed in a manner consistent with the National Electric Code, has a load capacity of not less than 200 amps, is installed in conjunction with— any qualified energy efficiency improvements, or any qualified energy property described in subparagraphs
(A)through
(C)for which a credit is allowed under this section for expenditures with respect to such property, and enables the installation and use of any property described in subclause
(I)or
(II)of clause (iii). For purposes of paragraph (2), the term eligible fuel means— biodiesel and renewable diesel (within the meaning of section 40A), and second generation biofuel (within the meaning of section 40). . Section 25C(a), as amended by subsection (b), 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: the amount paid or incurred by the taxpayer during the taxable year for home energy audits. . Section 25C(b), as amended by subsection (c), is amended adding at the end the following new paragraph: The amount of the credit allowed under this section by reason of subsection (a)(3) shall not exceed $150. 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. . Section 25C 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: 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— 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 is conducted and prepared by a home energy auditor that meets the certification or other requirements specified by the Secretary in regulations or other guidance (as prescribed by the Secretary not later than 365 days after the date of the enactment of this subsection). . Section 1016(a)(33) is amended by striking section 25C(f) and inserting section 25C(g) . Section 6213(g)(2) is amended— in subparagraph (P), by striking and at the end, in subparagraph (Q), by striking the period at the end and inserting , and , and by inserting after subparagraph
(Q)the following: an omission of information or documentation required under section 25C(b)(6)(B) (relating to home energy audits) to be included on a return. . Section 25C , as amended by this section, is amended by redesignating subsection
(h)as subsection
(i)and by inserting after subsection
(g)the following new subsection: No credit shall be allowed under subsection
(a)with respect to any item of specified property placed in service after December 31, 2024, unless— such item is produced by a qualified manufacturer, and the taxpayer includes the qualified product identification number of such item on the return of tax for the taxable year. 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). 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— 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), label such item with such number in such manner as the Secretary may provide, and 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. 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). . Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended— in subparagraph (Q), by striking and at the end, in subparagraph (R), by striking the period at the end and inserting , and , and by inserting after subparagraph
(R)the following: 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. . The heading for section 25C is amended by striking and inserting Nonbusiness energy property . Energy efficient home improvement credit The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 25C and inserting after the item relating to section 25B the following item: Sec. 25C. Energy efficient home improvement credit. . Except as otherwise provided by this subsection, the amendments made by this section shall apply to property placed in service after December 31, 2022. The amendments made by subsection
(a)shall apply to property placed in service after December 31, 2021. The amendments made by subsection
(g)shall apply to property placed in service after December 31, 2024.