All-Electric Homes Act of 2019

II 116TH CONGRESS 1ST SESSION S. 1197 To amend the Internal Revenue Code of 1986 to establish a tax credit for construction of new all-electric homes. IN THE SENATE OF THE UNITED STATES APRIL 11, 2019 Mr. MARKEY introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to establish a tax credit for construction of new all-electric homes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘All-Electric Homes Act 4 of 2019’’. 5 SEC. 2. CREDIT FOR NEW ALL-ELECTRIC HOMES. 6 (a) IN GENERAL.—Subpart D of part IV of sub- 7 chapter A of chapter 1 of the Internal Revenue Code of 8 1986 is amended by adding at the end the following new 9 section: 10 VerDate Sep 11 2014 03:55 Apr 20, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1197.IS S1197 kjohnson on DSK79L0C42 with BILLS 2 •S 1197 IS ‘‘SEC. 45T. NEW ALL-ELECTRIC HOME CREDIT. 1 ‘‘(a) ALLOWANCE OF CREDIT.— 2 ‘‘(1) IN GENERAL.—For purposes of section 38, 3 in the case of an eligible contractor, the new all-elec- 4 tric home credit for the taxable year is the applicable 5 amount for each qualified new all-electric home 6 which is— 7 ‘‘(A) constructed by the eligible contractor, 8 and 9 ‘‘(B) acquired by a person from such eligi- 10 ble contractor for use as a residence during the 11 taxable year. 12 ‘‘(2) APPLICABLE AMOUNT.—For purposes of 13 paragraph (1), the applicable amount is an amount 14 equal to— 15 ‘‘(A) in the case of a qualified new all-elec- 16 tric home which is a single-family residence, 17 $5,000, and 18 ‘‘(B) in the case of a qualified new all-elec- 19 tric home which is a multi-family residence, an 20 amount equal to the product of— 21 ‘‘(i) $1750, multiplied by 22 ‘‘(ii) the total number of residential 23 units. 24 ‘‘(b) DEFINITIONS.—For purposes of this section— 25 VerDate Sep 11 2014 03:55 Apr 20, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1197.IS S1197 kjohnson on DSK79L0C42 with BILLS 3 •S 1197 IS ‘‘(1) ELIGIBLE CONTRACTOR.—The term ‘eligi- 1 ble contractor’ means the person who constructed 2 the qualified new all-electric home. 3 ‘‘(2) QUALIFIED NEW ALL-ELECTRIC HOME.— 4 The term ‘qualified new all-electric home’ means a 5 dwelling unit— 6 ‘‘(A) located in the United States, 7 ‘‘(B) the construction of which is substan- 8 tially completed after the date of the enactment 9 of this section, 10 ‘‘(C) for which all appliances and mechan- 11 ical systems are powered solely by electricity, 12 ‘‘(D) which does not have any gas line or 13 gas service to such dwelling unit, and 14 ‘‘(E) which meets the highest energy effi- 15 ciency standards for the United States (as de- 16 termined by the Secretary, in consultation with 17 the Secretary of Energy and the Administrator 18 of the Environmental Protection Agency) for 19 purposes of the building envelope and any ap- 20 pliances and mechanical systems within the 21 dwelling unit. 22 ‘‘(3) CONSTRUCTION.—The term ‘construction’ 23 includes substantial reconstruction and rehabilita- 24 tion. 25 VerDate Sep 11 2014 03:55 Apr 20, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1197.IS S1197 kjohnson on DSK79L0C42 with BILLS 4 •S 1197 IS ‘‘(4) ACQUIRE.—The term ‘acquire’ includes 1 purchase. 2 ‘‘(c) BASIS ADJUSTMENT.—For purposes of this sub- 3 title, if a credit is allowed under this section in connection 4 with any expenditure for any property, the increase in the 5 basis of such property which would (but for this sub- 6 section) result from such expenditure shall be reduced by 7 the amount of the credit so determined. 8 ‘‘(d) COORDINATION WITH INVESTMENT CREDIT.— 9 For purposes of this section, expenditures taken into ac- 10 count under section 47 or 48(a) shall not be taken into 11 account under this section.’’. 12 (b) CONFORMING AMENDMENTS.— 13 (1) Section 38(b) of the Internal Revenue Code 14 of 1986 is amended by striking ‘‘plus’’ at the end of 15 paragraph (31), by striking the period at the end of 16 paragraph (32) and inserting ‘‘, plus’’, and by add- 17 ing at the end the following new paragraph: 18 ‘‘(33) the new all-electric home credit deter- 19 mined under section 45T(a).’’. 20 (2) Section 196(c) of such Code is amended by 21 striking ‘‘and’’ at the end of paragraph (13), by 22 striking the period at the end of paragraph (14) and 23 inserting ‘‘, and’’, and by adding at the end the fol- 24 lowing new paragraph: 25 VerDate Sep 11 2014 03:55 Apr 20, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1197.IS S1197 kjohnson on DSK79L0C42 with BILLS 5 •S 1197 IS ‘‘(15) the new all-electric home credit deter- 1 mined under section 45T(a).’’. 2 (3) Section 1016(a) of such Code is amended 3 by striking ‘‘and’’ at the end of paragraph (37), by 4 striking the period at the end of paragraph (38) and 5 inserting ‘‘, and’’, and by inserting after paragraph 6 (38) the following new paragraph: 7 ‘‘(39) to the extent provided in section 45T(c), 8 in the case of amounts with respect to which a credit 9 has been allowed under section 45T.’’. 10 (4) The table of sections for subpart D of part 11 IV of subchapter A of chapter 1 of such Code is 12 amended by inserting after the item relating to sec- 13 tion 45S the following new item: 14 ‘‘45T. New All-Electric Home Credit.’’. (c) EFFECTIVE DATE.—The amendments made by 15 this section shall apply to qualified new all-electric homes 16 acquired after December 31, 2019, in taxable years ending 17 after such date. 18 Æ VerDate Sep 11 2014 03:55 Apr 20, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\S1197.IS S1197 kjohnson on DSK79L0C42 with BILLS