§ 25C. Nonbusiness energy property
(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—
(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.
(c)
Qualified energy efficiency improvements
For purposes of this section—
(1)
In general
The term “qualified energy efficiency improvements” means any energy efficient building envelope component which meets the prescriptive criteria for such component 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 (or, in the case of an exterior window, a skylight, an exterior door, a metal roof with appropriate pigmented coatings, or an asphalt roof with appropriate cooling granules, which meet the Energy Star program requirements), if—
(A)
such component is installed in or on a dwelling unit located in the United States and owned and used by the taxpayer as the taxpayer’s principal residence (within the meaning of section
121),
(2)
Building envelope component
The term “building envelope component” means—
(3)
Manufactured homes included
The term “dwelling unit” includes a manufactured home which conforms to Federal Manufactured Home Construction and Safety Standards (part 3280 of title
24, Code of Federal Regulations).
(d)
Residential energy property expenditures
For purposes of this section—
(1)
In general
The term “residential energy property expenditures” means expenditures made by the taxpayer for qualified energy property which is—
(A)
installed on or in connection with a dwelling unit located in the United States and owned and used by the taxpayer as the taxpayer’s principal residence (within the meaning of section
121), and
Such term includes expenditures for labor costs properly allocable to the onsite preparation, assembly, or original installation of the property.
(2)
Qualified energy property
(B)
Performance and quality standards
Property described under subparagraph (A) shall meet the performance and quality standards, and the certification requirements (if any), which—
(C)
Requirements and standards for air conditioners and heat pumps
The standards and requirements prescribed by the Secretary under subparagraph (B) with respect to the energy efficiency ratio (EER) for central air conditioners and electric heat pumps—
(3)
Energy-efficient building property
The term “energy-efficient building property” means—
(A)
an electric heat pump water heater which yields an energy factor of at least 2.0 in the standard Department of Energy test procedure,
(B)
an electric heat pump which achieves the highest efficiency tier established by the Consortium for Energy Efficiency, as in effect on January 1, 2009.[1]
(C)
a central air conditioner which achieves the highest efficiency tier established by the Consortium for Energy Efficiency, as in effect on January 1, 2009,
(D)
a natural gas, propane, or oil water heater which has either an energy factor of at least 0.82 or a thermal efficiency of at least 90 percent.[2]
(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.
(5)
Advanced main air circulating fan
The term “advanced main air circulating fan” means a fan used in a natural gas, propane, or oil furnace and which has an annual electricity use of no more than 2 percent of the total annual energy use of the furnace (as determined in the standard Department of Energy test procedures).
(e)
Special rules
For purposes of this section—
(f)
Basis adjustments
For purposes of this subtitle, if a credit is allowed under this section for any expenditure with respect to any property, 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 allowed.
[1] So in original. The period probably should be a comma.
[2] So in original. The period probably should be “, and”.
[3] So in original.