Efficiency First

Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (Engrossed Amendment Senate – EAS)

SEC. 710. CREDIT FOR NONBUSINESS ENERGY PROPERTY.

(a) Extension- Section 25C(g)(2) is amended by striking `2010′ and inserting `2011′.

(b) Return to Pre-ARRA Limitations and Standards-

(1) IN GENERAL- Subsections (a) and (b) of section 25C are amended to read as follows:

`(a) Allowance of Credit- 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 the sum of–

`(1) 10 percent of the amount paid or incurred by the taxpayer for qualified energy efficiency improvements installed during such taxable year, and

`(2) the amount of the residential energy property expenditures paid or incurred by the taxpayer during such taxable year.

`(b) Limitations-

`(1) LIFETIME LIMITATION- The credit allowed under this section with respect to any taxpayer for any taxable year shall not exceed the excess (if any) of $500 over the aggregate credits allowed under this section with respect to such taxpayer for all prior taxable years ending after December 31, 2005.

`(2) WINDOWS- In the case of amounts paid or incurred for components described in subsection (c)(2)(B) by any taxpayer for any taxable year, the credit allowed under this section with respect to such amounts for such year shall not exceed the excess (if any) of $200 over the aggregate credits allowed under this section with respect to such amounts for all prior taxable years ending after December 31, 2005.

`(3) LIMITATION ON RESIDENTIAL ENERGY PROPERTY EXPENDITURES- The amount of the credit allowed under this section by reason of subsection (a)(2) shall not exceed–

`(A) $50 for any advanced main air circulating fan,

`(B) $150 for any qualified natural gas, propane, or oil furnace or hot water boiler, and

`(C) $300 for any item of energy-efficient building property.’.

(2) MODIFICATION OF STANDARDS-

(A) IN GENERAL- Paragraph (1) of section 25C(c) is amended by striking `2000′ and all that follows through `this section’ and inserting `2009 International Energy Conservation Code, as such Code (including supplements) is in effect on the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009′.

(B) WOOD STOVES- Subparagraph (E) of section 25C(d)(3) is amended by striking `, as measured using a lower heating value’.

(C) OIL FURNACES AND HOT WATER BOILERS-

(i) IN GENERAL- Paragraph (4) of section 25C(d) is amended to read as follows:

`(4) QUALIFIED NATURAL GAS, PROPANE, OR OIL FURNACE OR HOT WATER BOILER- The term `qualified natural gas, propane, or oil furnace or hot water boiler’ means a natural gas, propane, or oil furnace or hot water boiler which achieves an annual fuel utilization efficiency rate of not less than 95.’.

(ii) CONFORMING AMENDMENT- Clause (ii) of section 25C(d)(2)(A) is amended to read as follows:

`(ii) a qualified natural gas, propane, or oil furnace or hot water boiler, or’.

(D) EXTERIOR WINDOWS, DOORS, AND SKYLIGHTS-

(i) IN GENERAL- Subsection (c) of section 25C is amended by striking paragraph (4).

(ii) APPLICATION OF ENERGY STAR STANDARDS- Paragraph (1) of section 25C(c) is amended by inserting `an exterior window, a skylight, an exterior door,’ after `in the case of’ in the matter preceding subparagraph (A).

(E) INSULATION- Subparagraph (A) of section 25C(c)(2) is amended by striking `and meets the prescriptive criteria for such material or system established by the 2009 International Energy Conservation Code, as such Code (including supplements) is in effect on the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009′.

(3) SUBSIDIZED ENERGY FINANCING- Subsection (e) of section 25C is amended by adding at the end the following new paragraph:

`(3) PROPERTY FINANCED BY SUBSIDIZED ENERGY FINANCING- For purposes of determining the amount of expenditures made by any individual with respect to any property, there shall not be taken into account expenditures which are made from subsidized energy financing (as defined in section 48(a)(4)(C)).’.

(c) Effective Date- The amendments made by this section shall apply to property placed in service after December 31, 2010.