THE RESIDENTIAL ENERGY CONSERVATION TAX CREDIT

Mr. Kiefer, for himself, submitted the following, to be referred to the Energy and Commerce Committee with Mr. Laverone, Mr. Garwood, Mr. Cole, Ms. Wood, Mr. Palafox, Ms Marquardt, Mr. Thayer, Mr. Wisniewski, Mr. Dalton, Mr. Spitzen, Mr. Pregler, Mr. Miller, Mr. Littwin, Mr. Jackson, Mr. Cid, Mr. Hollins, Mr. Portela, Mr. Rhine, Mr. Plawinski, and Mr. Cherry.

A BILL

to provide a tax credit to encourage the conservation of energy, and other purposes

SECTION I: FINDINGS OF CONGRESS

Congress finds the following:

1. The consumption of energy-producing fuels has increased to the point where the supply cannot keep up with the demand.

2. The effect of this demand is a spiking of the price of oil, gas and other energy-producing fuels.

3. In addition, there is a potential shortage in fuels which may endanger this nation and its citizenry.

4. To stave off this crisis, the citizens of the United States should be encouraged to conserve fuel and energy where possible.

5. In 1978, when the United States faced a similar crisis, a Residential Energy Credit was created to give citizens certain tax breaks to compensate for the purchase and use of certain items that were beneficial in conserving energy.

6. Today, in this time of crisis, there is now a need to reinstate such a tax credit.

SECTION II: SHORT TITLE

This bill may be referred to as the "Residential Energy Conservation Tax Credit".

SECTION III: DEFINITION

For the purposes of this act,

(1) the term "BTU" shall mean "British Thermal Unit".
(2) the term "heating device" shall mean a device, usually a heater, that raises the environmental temperature of one or more enclosed spaces designed for habitation by one or more persons.
(3) the term "cooling device" shall mean a device, such as an air conditioner, that lowers the environmental temperature of one or more enclosed spaces designed for habitation by one or more persons.

SECTION IV: NEW SECTION

Title 26, Chapter 1, Subchapter A, Part IV, Subpart A of the United States Code is amended by adding a new Section 25C, to be entitiled "Residential Energy Conservation Tax Credit".

SECTION IV: ELIGIBILITY FOR THE TAX CREDIT

Section 25C is amended by adding a subsection (A), entitled "Eligibility for the Tax Credit", to read as follows:

"A person shall be eligible for the Residential Energy Conservation Tax Credit if the following conditions are fulfilled:

(1) The person has purchased an appliance that is rated less than seventy-five percent of the known maximum possible output of BTUs, or
(2) The person has purchased an item designed to reduce the energy output of any heating or cooling device by no less than twenty percent of the maximum output of BTUs used by such a device, or
(3) The person purchases a vehicle that is rated at no less than the distance of 350 miles travelled on a full tank of gasoline under driving conditions normally found in the city under good weather or 400 miles under driving conditions normally found in rural areas under good weather."

SECTION V: RATE OF TAX CREDIT

Section 25C is amended by adding a subsection (B), entitled "Rate of Tax Credit", which shall read as follows:

"The amount of credit shall be $10 plus an additional $1 per

(1) 10 BTUs under seventy-five percent of the stated possible maximum rating, or
(2) 10 BTUs over twenty-percent of the maximum output of the heating or cooling device, or
(3) 10 miles above the distance stated in Subsection (A) of this section."

SECTION VI: APPLICATION OF CREDIT AGAINST TAX

Section 25C is amended by adding a subsection �, entitled "Application of Credit Against Tax", which shall read as follows:

"(1) The person, so entitled, shall apply the credit to the tax after subtracting the credits listed in Sections 21 through 25B by subtracting the credit from the remaining tax.

(2) If the credit exceeds the amount of tax remaining after subtracting credits listed in Sections 21 through 25B, then the tax shall be zero, and any remaining tax shall be carried over to the next year."

SECTION VII: ENABLING SECTION

This bill shall become law immediately upon appropriate passage and/or the signature of the President or his official designate in accordance with the Constitution and/or federal law.