New Home Energy Efficiency Act

II 116TH CONGRESS 1ST SESSION S. 2595 To amend the Internal Revenue Code of 1986 to extend and update the new energy efficient home credit. IN THE SENATE OF THE UNITED STATES OCTOBER 15, 2019 Ms. HASSAN (for herself and Ms. COLLINS) 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 extend and update the new energy efficient home credit. 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 ‘‘New Home Energy 4 Efficiency Act’’. 5 SEC. 2. EXTENSION OF NEW ENERGY EFFICIENT HOME 6 CREDIT. 7 (a) IN GENERAL.—Subsection (g) of section 45L of 8 the Internal Revenue Code of 1986 is amended by striking 9 VerDate Sep 11 2014 01:14 Oct 19, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S2595.IS S2595 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 2595 IS ‘‘December 31, 2017’’ and inserting ‘‘December 31, 1 2020’’. 2 (b) EFFECTIVE DATE.—The amendments made by 3 this section shall apply to qualified new energy efficient 4 homes acquired after December 31, 2017. 5 SEC. 3. UPDATING NEW ENERGY EFFICIENT HOME CREDIT. 6 (a) IN GENERAL.—Section 45L of the Internal Rev- 7 enue Code of 1986, as amended by section 2, is amend- 8 ed— 9 (1) in subsection (a)(2)— 10 (A) in subparagraph (A), by striking 11 ‘‘$2,000’’ and inserting ‘‘$2,500’’; and 12 (B) in subparagraph (B), by inserting ‘‘or 13 (4)’’ after ‘‘paragraph (3)’’; 14 (2) in subsection (b)— 15 (A) in paragraph (2)(B), by striking ‘‘this 16 section’’ and inserting ‘‘the New Home Energy 17 Efficiency Act’’; and 18 (B) by adding at the end the following: 19 ‘‘(5) 2018 IECC.— 20 ‘‘(A) IN GENERAL.—The term ‘2018 21 IECC’ means the 2018 International Energy 22 Conservation Code, as such Code (including 23 supplements) is in effect on the date of the en- 24 VerDate Sep 11 2014 01:14 Oct 19, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2595.IS S2595 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 2595 IS actment of the New Home Energy Efficiency 1 Act. 2 ‘‘(B) SPECIAL RULE.—For purposes of 3 subsection (c)(1)(B)(i)(I), in determining 4 whether a dwelling unit has been constructed in 5 accordance with the standards of chapter 4 of 6 the 2018 IECC by achieving a level of energy 7 efficiency which meets Section R406.4 8 (N1106.4) of such Code, such determination 9 shall be made without accounting for on-site en- 10 ergy generation.’’; 11 (3) by striking subsection (c) and inserting the 12 following: 13 ‘‘(c) ENERGY SAVING REQUIREMENTS.—A dwelling 14 unit meets the energy saving requirements of this sub- 15 section if such unit— 16 ‘‘(1)(A) is certified— 17 ‘‘(i) to have a level of annual heating and 18 cooling energy consumption which is at least 60 19 percent below the annual level of heating and 20 cooling energy consumption of a comparable 21 dwelling unit— 22 ‘‘(I) which is constructed in accord- 23 ance with the standards of chapter 4 of the 24 2006 International Energy Conservation 25 VerDate Sep 11 2014 01:14 Oct 19, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2595.IS S2595 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 2595 IS Code, as such Code (including supple- 1 ments) is in effect on January 1, 2006, 2 and 3 ‘‘(II) for which the heating and cool- 4 ing equipment efficiencies correspond to 5 the minimum allowed under the regula- 6 tions established by the Department of En- 7 ergy pursuant to the National Appliance 8 Energy Conservation Act of 1987 and in 9 effect at the time of completion of con- 10 struction, and 11 ‘‘(ii) to have building envelope component 12 improvements account for at least 1⁄5 of such 13 60 percent, or 14 ‘‘(B) is certified— 15 ‘‘(i) to have a level of annual energy con- 16 sumption which is at least 15 percent below the 17 annual level of energy consumption of a com- 18 parable dwelling unit— 19 ‘‘(I) which is constructed in accord- 20 ance with the standards of chapter 4 of the 21 2018 IECC, and 22 ‘‘(II) which meets the requirements 23 described in subparagraph (A)(i)(II), and 24 VerDate Sep 11 2014 01:14 Oct 19, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S2595.IS S2595 pamtmann on DSKBC07HB2PROD with BILLS 5 •S 2595 IS ‘‘(ii) to have building envelope component 1 improvements account for at least 1⁄5 of such 2 15 percent, 3 ‘‘(2) is a manufactured home which— 4 ‘‘(A) conforms to Federal Manufactured 5 Home Construction and Safety Standards (part 6 3280 of title 24, Code of Federal Regulations), 7 and 8 ‘‘(B) meets the requirements described in 9 subparagraph (A) or (B) of paragraph (1), 10 ‘‘(3) meets the requirements established by the 11 Administrator of the Environmental Protection 12 Agency under the Energy Star Labeled Homes pro- 13 gram, or 14 ‘‘(4) is a manufactured home which— 15 ‘‘(A) conforms to the standards described 16 in paragraph (2)(A), and 17 ‘‘(B) meets the requirements described in 18 paragraph (3).’’; and 19 (4) in subsection (g), by striking ‘‘December 20 31, 2020’’ and inserting ‘‘December 31, 2022’’. 21 (b) EFFECTIVE DATE.—The amendments made by 22 this section shall apply to qualified new energy efficient 23 homes acquired after December 31, 2020. 24 Æ VerDate Sep 11 2014 01:14 Oct 19, 2019 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\S2595.IS S2595 pamtmann on DSKBC07HB2PROD with BILLS