,,ii #aac? ,,congress #b;d ,session ,s4 #bahi ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,april #a1 #bjad,mr4 ,c>d9 7= himself1 ,mrs4 ,fe9/e91 & ,mr4 ,s*atz7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to improve & ext5d ! d$uction = new & exi/+ en]gy-effici5t comm]cial build+s1 & = o!r purposes4 #a4 ,%ort title2 am5dm5t ( #aihf ,code2 table ( cont5ts 7a7 ,%ort title ,?is ,act may be cit$ z ! ,en]gy ,effici5cy ,tax ,inc5tives ,act4 7b7 ,am5dm5t ( #aihf ,code ,except z o!rwise expressly provid$1 :5ev] 9 ?is ,act an am5dm5t or repeal is express$ 9 t]ms ( an am5dm5t to1 or repeal (1 a section or o!r provision1 ! ref]5ce %all be consid]$ to be made to a section or o!r provision ( ! ,int]nal ,rev5ue ,code ( #aihf4 7c7 ,table ( cont5ts ,! table ( cont5ts ( ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title2 am5dm5t ( #aihf ,code2 table ( cont5ts4,,title ,i--,comm]cial ,build+ ,modernization,sec4 #aja4 ,ext5sion & modification ( d$uction = en]gy-effici5t comm]cial build+s4,sec4 #ajb4 ,d$uction = retr(its ( exi/+ comm]cial & multifamily build+s4,,title ,,ii--,home en]gy improvements,sec4 #bja4 ,p]=mance bas$ home en]gy improvem5ts4,,title ,,iii--,indu/rial ,en]gy & ,wat] ,efficiency,sec4 #cja4 ,modifications 9 cr$it = comb9$ heat & p[] sy/em prop]ty4,sec4 #cjb4 ,inve/m5t tax cr$it = biomass heat+ prop]ty4,sec4 #cjc4 ,inve/m5t tax cr$it = wa/e heat to p[] prop]ty4,sec4 #cjd4 ,motor en]gy effici5cy improvem5t tax cr$it4,sec4 #cje4 ,cr$it = replacem5t ( ,,cfc refrig]ant *ill]4,sec4 #cjf4 ,qualify+ effici5t indu/rial process wat] use project cr$it4 ,i ,comm]cial ,build+ ,mod]nization #aja4 ,ext5sion & modification ( d$uction = en]gy-effici5t comm]cial build+s 7a7 ,ext5sion 7#a7 ,?r\gh #bjaf ,section #agi;,d7h7 is am5d$ by /rik+ ,decemb] #ca1 #bjac & ins]t+ ,decemb] #ca1 #bjaf4 7#b7 ,inclusion ( multifamily build+s 7,a7 ,9 g5]al ,subp>agraph 7,b7 ( section #agi;,d7c77#a7 is am5d$ by /rik+ build+ & ins]t+ comm]cial build+ or multifamily build+4 7,b7 ,def9itions ,subsection 7c7 ( section #agi;,d is am5d$ by add+ at ! end ! foll[+ new p>agraphs3 7#c7 ,comm]cial build+ ,! t]m comm]cial build+ means a build+ ) a prim>y use or purpose o!r ?an z resid5tial h\s+4 7#d7 ,multifamily build+ ,! t]m multifamily build+ means a /ructure ( #e or m dwell+ units ) a prim>y use z resid5tial h\s+1 & includes su* build+s own$ & op]at$ z a condom9ium1 coop]ative1 or o!r common int]e/ community4 4 7b7 ,increase 9 maximum am\nt ( d$uction 7#a7 ,9 g5]al ,subp>agraph 7,a7 ( section #agi;,d7b77#a7 is am5d$ by /rik+ #a4hj & ins]t+ #c4jj4 7#b7 ,p>tial all[ance ,p>agraph 7#a7 ( section #agi;,d7d7 is am5d$ to read z foll[s3 7#a7 ,p>tial all[ance 7,a7 ,9 g5]al ,except z provid$ 9 subsection 7f71 if-- 7i7 ! requirem5t ( subsection 7c77#a77;,d7 is n met1 b 7ii7 !re is a c]tification 9 accordance ) p>agraph 7#f7 t-- 7,i7 any sy/em ref]r$ to 9 subsection 7c77#a77;,c7 satisfies ! en]gy-sav+s t>gets e/abli%$ by ! ,secret>y "u subp>agraph 7,b7 ) respect to su* sy/em1 or 7,,ii7 ! sy/ems ref]r$ to 9 subsection 7c77#a77;,c77ii7 & subsection 7c77#a77;,c77iii7 toge!r satisfy ! en]gy-sav+s t>gets e/abli%$ by ! ,secret>y "u subp>agraph 7,b7 ) respect to su* sy/ems1 !n ! requirem5t ( subsection 7c77#a77;,d7 %all be treat$ z met ) respect to su* sy/em or sy/ems1 & ! d$uction "u subsection 7a7 %all be all[$ ) respect to en]gy-effici5t comm]cial build+ prop]ty in/all$ z "p ( su* sy/em & z "p ( a plan to meet su* t>gets1 except t subsection 7b7 %all be appli$ to su* prop]ty describ$ 9 clause 7ii77,i7 by sub/itut+ #a4jj = #c4jj & to su* prop]ty describ$ 9 clause 7ii77,,ii7 by sub/itut+ #b4bj = #c4jj4 7,b7 ,regulations 7i7 ,9 g5]al ,! ,secret>y1 aft] consultation ) ! ,secret>y ( ,en]gy1 %all promulgate regulations e/abli%+ a t>get = ea* sy/em describ$ 9 subsection 7c77#a77;,c7 :i*1 if su* t>gets 7 met = all su* sy/ems1 ! prop]ty w\ld meet ! requirem5ts ( subsection 7c77#a77;,d74 7ii7 ,safe h>bor = comb9$ sy/ems ,! ,secret>y1 aft] consultation ) ! ,secret>y ( ,en]gy1 & n lat] ?an #f mon?s aft] ! date ( ! enactm5t ( ! ,en]gy ,effici5cy ,tax ,inc5tives ,act1 %all promulgate regulations reg>d+ comb9$ envelope & me*anical sy/em p]=mance t detail appropriate compon5ts1 effici5cy levels1 or o!r relevant in=mation = ! sy/ems ref]r$ to 9 subsection 7c77#a77;,c77ii7 & subsection 7c77#a77;,c77iii7 toge!r to be deem$ to h a*iev$ two-?irds ( ! requirem5ts ( subsection 7c77#a77;,d74 4 7c7 ,d5ial ( d\ble b5efit rules 7#a7 ,9 g5]al ,section #agi;,d is am5d$ by r$esignat+ subsection 7h7 z subsection 7i7 & by ins]t+ aft] subsection 7g7 ! foll[+ new subsection3 7h7 ,tax inc5tives n available ,en]gy-effici5t measures = :i* a d$uction is all[$ "u ?is section %all n be eligible = a d$uction "u section #agi;,f4 4 7#b7 ,l[-income h\s+ exception to basis r$uction ,subsection 7e7 ( section #agi;,d is am5d$ by ins]t+ 7o!r ?an prop]ty plac$ 9 s]vice 9 a qualifi$ l[-income build+ 7)9 ! mean+ ( section #db77 aft] build+ prop]ty4 7d7 ,allocation ( d$uction ,p>agraph 7#d7 ( section #agi;,d7d7 is am5d$ to read z foll[s3 7#d7 ,allocation ( d$uction 7,a7 ,9 g5]al ,n lat] ?an #ahj days aft] ! date ( ! enactm5t ( ?is subsection1 ! ,secret>y1 9 consultation ) ! ,secret>y ( ,en]gy1 %all promulgate a regulation to all[ ! own] ( a comm]cial or multifamily build+1 includ+ a gov]nm5t1 tribal1 or non-pr(it own]1 to allocate any d$uction all[$ "u ?is section1 or a portion !re(1 to ! p]son prim>ily responsible = design+ ! prop]ty 9 lieu ( ! own] or to a comm]cial t5ant t leases or o!rwise occupies space 9 su* build+ pursuant to a writt5 agreem5t4 ,su* p]son %all be treat$ z ! taxpay] = purposes ( ?is section4 7,b7 ,=m ( allocation ,an allocation made "u ?is p>agraph %all be 9 writ+ & 9 a =m t meets ! =m ( allocation requirem5ts 9 ,notice #bjjh-dj ( ! ,int]nal ,rev5ue ,s]vice4 7,c7 ,provision ( allocation ,n lat] ?an #cj days aft] receipt ( a writt5 reque/ f a p]son eligible to receive an allocation "u ?is p>agraph1 ! own] ( a build+ t makes an allocation "u ?is p>agraph %all provide ! =m ( allocation 7z describ$ 9 subp>agraph 7,b77 to su* p]son4 7,d7 ,allocation f public own] ( build+ ,9 ! case ( a comm]cial build+ or multifamily build+ t is own$ by a ,f$]al1 ,/ate1 or local gov]nm5t or a subdivision !re(1 ,notice #bjjf-eb ( ! ,int]nal ,rev5ue ,s]vice1 z amplifi$ by ,notice #bjjh-dj1 %all apply to any allocation4 4 7e7 ,treatm5t ( basis 9 context ( allocation ,subsection 7e7 ( section #agi;,d1 z am5d$ by subsection 7c77#b71 is am5d$ by ins]t+ or s allocat$ aft] s all[$4 7f7 ,e>n+s & pr(its con=mity = real e/ate inve/m5t tru/s ,subp>agraph 7,b7 ( section #cab7k77#c7 is am5d$-- 7#a7 by /rik+ 4--,= purposes ( & ins]t+ 84-- 7i7 ,9 g5]al ,except z provid$ 9 clause 7ii71 = purposes ( 1 & 7#b7 by add+ at ! end ! foll[+ new clause3 7ii7 ,e>n+s & pr(its con=mity = real e/ate inve/m5t tru/s 7,i7 ,9 g5]al ,= purposes ( comput+ ! e>n+s & pr(its ( a real e/ate inve/m5t tru/ 7o!r ?an a captive real e/ate inve/m5t tru/71 ! entire am\nt d$uctible "u section #agi;,d %all be all[$ z d$uctions 9 ! taxable ye>s = :i* su* am\nts are claim$ "u su* section4 7,,ii7 ,captive real e/ate inve/m5t tru/ ,! t]m captive real e/ate inve/m5t tru/ means a real e/ate inve/m5t tru/ ! %>es or b5eficial int]e/s ( :i* are n regul>ly trad$ on an e/abli%$ securities m>ket & m ?an #ej p]c5t ( ! vot+ p[] or value ( ! b5eficial int]e/s or %>es ( :i* are own$ or controll$1 directly or indirectly1 or con/ructively1 by a s+le entity t is treat$ z an association taxable z a corporation "u ?is title & is n exempt f taxation pursuant to ! provisions ( section #eja7;a74 7,,iii7 ,rules ( application ,= purposes ( ?is clause1 ! con/ructive own]%ip rules ( section #cah7;a71 z modifi$ by section #hef7;d77#e71 %all apply 9 det]m9+ ! own]%ip ( /ock1 assets1 or net pr(its ( any p]son1 & ! foll[+ entities are n consid]$ an association taxable z a corporation3 7aa7 ,any real e/ate inve/m5t tru/ o!r ?an a captive real e/ate inve/m5t tru/4 7bb7 ,any qualifi$ real e/ate inve/m5t tru/ subsidi>y "u section #hef1 o!r ?an a qualifi$ ,,reit subsidi>y ( a captive real e/ate inve/m5t tru/4 7cc7 ,any ,li/$ ,au/ralian ,prop]ty ,tru/ 7mean+ an ,au/ralian unit tru/ regi/]$ z a ,manag$ ,inve/m5t ,s*eme "u ! ,au/ralian ,corporations ,act 9 :i* ! pr9cipal class ( units is li/$ on a recogniz$ /ock ex*ange 9 ,au/ralia & is regul>ly trad$ on an e/abli%$ securities m>ket71 or an entity organiz$ z a tru/1 provid$ t a ,li/$ ,au/ralian ,prop]ty ,tru/ owns or controls1 directly or indirectly1 #ge p]c5t or m ( ! vot+ p[] or value ( ! b5eficial int]e/s or %>es ( su* tru/4 7dd7 ,any corporation1 tru/1 association1 or p>tn]%ip organiz$ outside ! laws ( ! ,unit$ ,/ates & :i* satisfies ! crit]ia describ$ 9 subclause 7,,iv74 7,,iv7 ,crit]ia ,! crit]ia describ$ 9 ?is subclause are z foll[s3 7aa7 ,at lea/ #ge p]c5t ( ! entity's total asset value at ! close ( its taxable ye> is repres5t$ by real e/ate assets 7z def9$ 9 section #hef7;c77#e77;,b771 ca% & ca% equival5ts1 & ,unit$ ,/ates ,gov]nm5t securities4 7bb7 ,! entity is n subject to tax on am\nts di/ribut$ to its b5eficial own]s1 or is exempt f entity-level taxation4 7cc7 ,! entity di/ributes at lea/ #he p]c5t ( its taxable income 7z comput$ 9 ! jurisdiction 9 :i* x is organiz$7 to ! hold]s ( its %>es or c]tificates ( b5eficial int]e/ on an annual basis4 7dd7 ,n m ?an #aj p]c5t ( ! vot+ p[] or value 9 su* entity is held directly or indirectly or con/ructively by a s+le entity or individual1 or ! %>es or b5eficial int]e/s ( su* entity are regul>ly trad$ on an e/abli%$ securities m>ket4 7ee7 ,! entity is organiz$ 9 a c\ntry :i* has a tax treaty ) ! ,unit$ ,/ates4 4 7g7 ,rules = light+ sy/ems ,subsection 7f7 ( section #agi;,d is am5d$ to read z foll[s3 7f7 ,rules = light+ sy/ems 7#a7 ,9 g5]al ,) respect to prop]ty t is "p ( a light+ sy/em1 ! d$uction all[$ "u subsection 7a7 %all be equal to-- 7,a7 = a light+ sy/em t includes in/allation ( a light+ control describ$ 9 p>agraph 7#b77;,a71 ! applicable am\nt det]m9$ "u p>agraph 7#c77;,a71 7,b7 = a light+ sy/em t includes in/allation ( a light+ control describ$ 9 p>agraph 7#b77;,b71 ! applicable am\nt det]m9$ "u p>agraph 7#c77;,b71 or 7,c7 = a light+ sy/em t does n include in/allation ( any light+ controls describ$ 9 subp>agraph 7,a7 or 7,b7 ( p>agraph 7#b71 ! applicable am\nt det]m9$ "u p>agraph 7#c77;,c74 7#b7 ,en]gy sav+ controls 7,a7 ,light+ controls 9 c]ta9 spaces ,= purposes ( p>agraph 7#a77;,a71 ! light+ controls describ$ 9 ?is subp>agraph are ! foll[+3 7i7 ,occupancy s5sors 7z describ$ 9 p>agraph 7#d77;,i77 9 spaces n great] ?an #hjj squ>e feet4 7ii7 ,bi-level controls 7z describ$ 9 p>agraph 7#d77;,a774 7iii7 ,cont9u\s or /ep dimm+ controls 7z describ$ 9 subp>agraphs 7,b7 & 7,k7 ( p>agraph 7#d774 7iv7 ,daylight dimm+ :]e suffici5t daylight is available 7z describ$ 9 p>agraph 7#d77;,c774 7v7 ,a multi-sc5e controll] 7z describ$ 9 p>agraph 7#d77;,h774 7vi7 ,"t s*$ul+ controls 7z describ$ 9 p>agraph 7#d77,l771 provid$ t su* controls are n requir$ by ,/&>d #ij4a-bjaj4 7vii7 ,su* o!r light+ controls z ! ,secret>y1 9 consultation ) ! ,secret>y ( ,en]gy1 det]m9es appropriate4 7,b7 ,o!r control types ,= purposes ( p>agraph 7#a77;,b71 ! light+ controls describ$ 9 ?is subp>agraph are ! foll[+3 7i7 ,occupancy s5sors 7z describ$ 9 p>agraph 7#d77;,i77 9 spaces great] ?an #hjj squ>e feet4 7ii7 ,dem& responsive controls 7z describ$ 9 p>agraph 7#d77;,d774 7iii7 ,lum5 ma9t5ance controls 7z describ$ 9 p>agraph 7#d77;,f77 :]e solid /ate light+ is us$4 7iv7 ,su* o!r light+ controls z ! ,secret>y1 9 consultation ) ! ,secret>y ( ,en]gy1 det]m9es appropriate4 7#c7 ,applicable am\nt 7,a7 ,light+ controls 9 c]ta9 spaces ,= purposes ( p>agraph 7#a77;,a71 ! applicable am\nt %all be det]m9$ 9 accordance ) ! foll[+ table3 ,if ! p]c5tage ( r$uction 9 light+ p[] d5sity is n less ?an3,! am\nt ( ! d$uction p] squ>e foot is3#ae p]c5t#j4cjbj p]c5t#j4ddbe p]c5t#j4ehcj p]c5t#j4gbce p]c5t#j4hfdj p]c5t#a4jj4 7,b7 ,light+ controls 9 l>g] spaces & :]e solid light+ is us$ ,= purposes ( p>agraph 7#a77;,b71 ! applicable am\nt %all be det]m9$ 9 accordance ) ! foll[+ table3 ,if ! p]c5tage ( r$uction 9 light+ p[] d5sity is n less ?an3,! am\nt ( ! d$uction p] squ>e foot is3#bj p]c5t#j4cjbe p]c5t#j4ddcj p]c5t#j4ehce p]c5t#j4gbdj p]c5t#j4hfde p]c5t#a4jj4 7,c7 ,no qualifi$ light+ controls ,= purposes ( p>agraph 7#a77;,c71 ! applicable am\nt %all be det]m9$ 9 accordance ) ! foll[+ table3 ,if ! p]c5tage ( r$uction 9 light+ p[] d5sity is n less ?an3,! am\nt ( ! d$uction p] squ>e foot is3#be p]c5t#j4cjcj p]c5t#j4ddce p]c5t#j4ehdj p]c5t#j4gbde p]c5t#j4hfej p]c5t#a4jj4 7#d7 ,def9itions ,= purposes ( ?is subsection3 7,a7 ,bi-level control 7i7 ,9 g5]al ,subject to clause 7ii71 ! t]m bi-level control means a light+ control /rategy t provides = #b diff]5t levels ( light+4 7ii7 ,full-(f sett+ ,= purposes ( clause 7i71 a bi-level control %all also provide = a full-(f sett+4 7,b7 ,cont9u\s dimm+ ,! t]m cont9u\s dimm+ means a light+ control /rategy t adju/s ! light output ( a light+ sy/em betwe5 m9imum & maximum light output 9 a mann] t is n p]ceptible4 7,c7 ,daylight dimm+2 suffici5t daylight 7i7 ,daylight dimm+ ,! t]m daylight dimm+ means any device t-- 7,i7 adju/s electric light+ p[] 9 response to ! am\nt ( daylight t is pres5t 9 an area1 & 7,,ii7 provides = sep>ate control ( ! lamps = g5]al light+ 9 ! daylight area by n less ?an #a multi-level photocontrol1 includ+ cont9u\s dimm+ devices1 t satisfies ! foll[+ requirem5ts3 7aa7 ,! light s5sor = ! multi-level photocontrol is remote f :]e calibration adju/m5ts are made4 7bb7 ,! calibration adju/m5ts are readily accessible4 7cc7 ,! multi-level photocontrol r$uces electric light+ p[] 9 response to ! am\nt ( daylight )-- 7,,aa7 n less ?an #a control /ep t is betwe5 #ej p]c5t & #gj p]c5t ( design light+ p[]1 & 7,,bb7 n less ?an #a control /ep t is n less ?an #ce p]c5t ( design light+ p[]4 7ii7 ,suffici5t daylight 7,i7 ,9 g5]al ,! t]m suffici5t daylight means-- 7aa7 9 ! case ( toplight$ areas1 :5 ! total daylight area "u skylights plus ! total daylight area "u ro(top monitors 9 an enclos$ space is great] ?an #ijj squ>e feet 7z def9$ 9 ,/&>d #ij4a-bjaj71 & 7bb7 9 ! case ( sidelight$ areas1 :5 ! comb9$ prim>y sidelight area 9 an enclos$ space is n less ?an #bej squ>e feet 7z def9$ 9 ,/&>d #ij4a-bjaj74 7,,ii7 ,exceptions ,suffici5t daylight %all be deem$ to n be available if-- 7aa7 9 ! case ( areas describ$ 9 subclause 7,i77aa7-- 7,,aa7 = daylight$ areas "u skylights1 x is docum5t$ t exi/+ adjac5t /ructures or natural objects block direct beam sunlight = m ?an #aejj daytime h\rs 7aft] #h a4m4 & be=e #d p4m41 local "t7 p] ye>1 7,,bb7 = daylight$ areas1 ! skylight effective ap]ture is less ?an #j4jjf1 or 7,,cc7 = build+s 9 climate zone #h1 z def9$ "u ,/&>d #ij4a-bjaj1 ! daylight areas total less ?an #aejj squ>e feet 9 an enclos$ space1 & 7bb7 9 ! case ( prim>y sidelight$ areas describ$ 9 subclause 7,i77bb7-- 7,,aa7 ! top ( ! exi/+ adjac5t /ructures are at lea/ twice z high above ! w9d[s z ! di/ance f ! w9d[1 or 7,,bb7 ! sidelight+ effective ap]ture is less ?an #j4a4 7iii7 ,daylight1 sidelight+1 & o!r relat$ t]ms ,! t]ms daylight area1 daylight area "u skylights1 daylight area "u ro(top monitors1 daylight$ area1 enclos$ space1 prim>y sidelight$ areas1 sidelight+ effective ap]ture1 & skylight effective ap]ture h ! same mean+ giv5 su* t]ms "u ,/&>d #ij4a-bjaj4 7,d7 ,dem& ,responsive ,control 7i7 ,9 g5]al ,! t]m dem& responsive control means a control device t receives & automatically responds to a dem& response signal &-- 7,i7 9 ! case ( space-condition+ sy/ems1 conducts a c5traliz$ dem& %$ = non-critical zones dur+ a dem& response p]iod & t has ! capability to1 on a signal f a c5traliz$ contract or s(tw>e po9t )9 an ,en]gy ,managem5t ,control ,sy/em-- 7aa7 remotely increase ! op]at+ cool+ temp]ature set po9ts 9 su* zones by n less ?an #d degrees1 7bb7 remotely decrease ! op]at+ heat+ temp]ature set po9ts 9 su* zones by n less ?an #d degrees1 7cc7 remotely reset temp]atures 9 su* zones to orig9at+ op]at+ levels1 & 7dd7 provide an adju/able rate ( *ange = any temp]ature adju/m5t & reset1 & 7,,ii7 9 ! case ( light+ p[]1 has ! capability to r$uce light+ p[] by n less ?an #cj p]c5t dur+ a dem& response p]iod4 7ii7 ,dem& response p]iod ,! t]m dem& response p]iod means a p]iod 9 :i* %ort-t]m adju/m5ts 9 electricity usage are made by end-use cu/om]s f normal electricity consumption patt]ns1 includ+ adju/m5ts 9 response to-- 7,i7 ! price ( electricity1 & 7,,ii7 p>ticipation 9 programs or s]vices t are design$ to modify electricity usage 9 response to :olesale m>ket prices = electricity or :5 reliability ( ! electrical sy/em is 9 jeop>dy4 7iii7 ,dem& response signal ,! t]m dem& response signal means a signal s5t to an end-use cu/om] by a local utility1 indep5d5t sy/em op]ator1 or designat$ curtailm5t s]vice provid] or aggregator t-- 7,i7 indicates an adju/m5t 9 ! price ( electricity1 or 7,,ii7 is a reque/ to modify electricity consumption4 7,e7 ,lamp ,! t]m lamp means an artificial light s\rce t produces optical radiation 7includ+ ultraviolet & infr>$ radiation74 7,f7 ,lum5 ma9t5ance control ,! t]m lum5 ma9t5ance control means a light+ control /rategy t ma9ta9s con/ant light output by adju/+ lamp p[] to comp5sate = age & cleanl9ess ( lum9aires4 7,g7 ,lum9aire ,! t]m lum9aire means a complete light+ unit = ! production1 control1 & di/ribution ( light t consi/s (-- 7i7 n less ?an #a lamp1 & 7ii7 any ( ! foll[+ items3 7,i7 ,optical control devices design$ to di/ribute light4 7,,ii7 ,sockets or m\nt+s = ! position+1 protection1 & op]ation ( ! lamps4 7,,iii7 ,me*anical compon5ts = support or atta*m5t4 7,,iv7 ,electrical & electronic compon5ts = op]ation & control ( ! lamps4 7,h7 ,multi-sc5e control ,! t]m multi-sc5e control means a light+ control device or sy/em t all[s =-- 7i7 n less ?an #b pr$et]m9$ light+ sett+s1 7ii7 a sett+ t turns (f all lum9aires 9 an area1 & 7iii7 a recall ( ! sett+s describ$ 9 clauses 7i7 & 7ii7 = any lum9aires or gr\ps ( lum9aires to adju/ to multiple activities )9 ! area4 7,i7 ,occupancy s5sor ,! t]m occupancy s5sor means a control device t-- 7i7 detects ! pres5ce or abs5ce ( individuals )9 an area & regulates light+1 equipm5t1 or appliances accord+ to a requir$ sequ5ce ( op]ation1 7ii7 %uts (f light+ :5 an area is unoccupi$1 7iii7 except 9 areas designat$ z em]g5cy egress & us+ less ?an #j4b watts p] squ>e foot ( floor area1 provides = manual %ut-(f ( all lum9aires reg>dless ( ! /atus ( ! s5sor & all[s =-- 7,i7 indep5d5t control 9 ea* area enclos$ by ceil+-height p>titions1 7,,ii7 controls t are readily accessible1 & 7,,iii7 op]ation by a manual swit* t is locat$ 9 ! same area z ! light+ t is subject to ! control device4 7,j7 ,/&>d #ij4a-bjaj ,! t]m ,/&>d #ij4a-bjaj means ,/&>d #ij4a-bjaj ( ! ,am]ican ,society ( ,heat+1 ,refrig]at+1 & ,air ,condition+ ,eng9e]s & ! ,illum9at+ ,eng9e]+ ,society ( ,nor? ,am]ica4 7,k7 ,/ep dimm+ ,! t]m /ep dimm+ means a light+ control /rategy t adju/s ! light output ( a light+ sy/em by #a or m pr$et]m9$ am\nts ( great] ?an #a p]c5t ( full output 9 a mann] t may be p]ceptible4 7,l7 ,"t s*$ul+ control ,! t]m "t s*$ul+ control means a control /rategy t automatically controls light+1 equipm5t1 or sy/ems bas$ on a p>ticul> "t ( day or o!r daily ev5t 7includ+ sunrise & sunset74 4 7h7 ,updat$ /&>ds 7#a7 ,initial update 7,a7 ,9 g5]al ,section #agi;,d7c7 is am5d$ by /rik+ #ij4a-bjja ea* place x appe>s & ins]t+ #ij4a-bjjd4 7,b7 ,con=m+ am5dm5t ,p>agraph 7#b7 ( section #agi;,d7c7 is am5d$ by /rik+ 7z 9 effect on ,april #b1 #bjjc74 7#b7 ,second update 7,a7 ,9 g5]al ,section #agi;,d is am5d$ by /rik+ #ij4a-bjjd ea* place x appe>s 9 subsections 7c7 & 7f7 & ins]t+ #ij4a-bjjg4 7,b7 ,effective date ,! am5dm5ts made by subp>agraph 7,a7 %all apply to prop]ty plac$ 9 s]vice aft] ,decemb] #ca1 #bjad4 7i7 ,treatm5t ( light+ sy/ems ,section #agi;,d7c77#a7 is am5d$ by /rik+ int]ior ea* place x appe>s4 7j7 ,report+ program ,section #agi;,d1 z am5d$ by subsection 7c77#a71 is am5d$ by r$esignat+ subsection 7i7 z subsection 7j7 & by ins]t+ aft] subsection 7h7 ! foll[+ new subsection3 7i7 ,report+ program ,= purposes ( ! report requir$ "u section #agi;,f7l71 ! ,secret>y1 9 consultation ) ! ,secret>y ( ,en]gy1 %all-- 7#a7 develop a program to collect a /ati/ically valid sample ( en]gy consumption data f taxpay]s t receiv$ full d$uctions "u ?is section1 reg>dless ( :e!r su* taxpay]s allocat$ all or a portion ( su* d$uction1 & 7#b7 include su* data 9 ! report1 ) su* r$actions z deem$ necess>y to protect ! p]sonally id5tifiable in=mation ( su* taxpay]s4 4 7k7 ,special rule = p>tn]%ips & ,s corporations ,section #agi;,d1 z am5d$ by subsection 7j71 is am5d$ by r$esignat+ subsection 7j7 z subsection 7k7 & by ins]t+ aft] subsection 7i7 ! foll[+ new subsection3 7j7 ,special rule = p>tn]%ips & ,s corporations ,9 ! case ( a p>tn]%ip or ,s corporation1 ?is section %all be appli$ at ! p>tn] or %>ehold] level1 subject to su* report+ requirem5ts z are det]m9$ appropriate by ! ,secret>y4 4 7l7 ,effective date ,except z o!rwise provid$1 ! am5dm5ts made by ?is section %all apply to prop]ty plac$ 9 s]vice 9 taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #ajb4 ,d$uction = retr(its ( exi/+ comm]cial & multifamily build+s 7a7 ,9 g5]al ,"p ,,vi ( sub*apt] ,b ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] section #agi;,e ! foll[+ new section3 #agi;,f4 ,d$uction = retr(its ( exi/+ comm]cial & multifamily build+s 7a7 ,all[ance ( d$uction 7#a7 ,9 g5]al ,) respect to ea* c]tifi$ retr(it plan1 !re %all be all[$ z a d$uction an am\nt equal to ! less] (-- 7,a7 ! sum (-- 7i7 ! design d$uction1 & 7ii7 ! realiz$ d$uction1 or 7,b7 ! total co/ to develop & implem5t su* c]tifi$ retr(it plan4 7#b7 ,exception ,= purposes ( ! am\nt describ$ 9 p>agraph 7#a77;,b71 if su* am\nt is tak5 z a design d$uction1 no realiz$ d$uction %all be all[$4 7b7 ,d$uction am\nts ,= purposes ( ?is section-- 7#a7 ,design d$uction ,a design d$uction %all be-- 7,a7 bas$ on project$ s\rce en]gy sav+s z calculat$ 9 accordance ) subsection 7c77#c77;,b71 7,b7 correlat$ to ! p]c5t ( s\rce en]gy sav+s set =? 9 ! g5]al scale 9 p>agraph 7#c77;,a7 t a c]tifi$ retr(it plan is project$ to a*ieve :5 en]gy-effici5t measures are plac$ 9 s]vice1 & 7,c7 equal to #fj p]c5t ( ! am\nt all[$ "u ! g5]al scale4 7#b7 ,realiz$ d$uction 7,a7 ,9 g5]al ,a realiz$ d$uction %all be-- 7i7 bas$ on realiz$ s\rce en]gy sav+s z calculat$ 9 accordance ) subsection 7c77#c77;,c71 7ii7 correlat$ to ! p]c5t ( s\rce en]gy sav+s set =? 9 ! g5]al scale 9 p>agraph 7#c77;,a7 z realiz$ by a c]tifi$ retr(it plan1 & 7iii7 equal to #dj p]c5t ( ! am\nt all[$ "u ! g5]al scale4 7,b7 ,adju/m5t ( s\rce en]gy sav+s ,! p]c5t ( s\rce en]gy sav+s = purposes ( any realiz$ d$uction may v>y f su* sav+s project$ :5 en]gy-effici5t measures 7 plac$ 9 s]vice = purposes ( a design d$uction "u p>agraph 7#a74 7,c7 ,no recapture ( design d$uction ,not)/&+ ! regulations prescrib$ "u subsection 7f71 no recapture ( a design d$uction %all be requir$ :]e ! own] ( ! comm]cial or multifamily build+-- 7i7 claims or allocates a design d$uction :5 en]gy-effici5t measures are plac$ into s]vice pursuant to ! t]ms & conditions ( a c]tifi$ retr(it plan1 & 7ii7 is n eligible = or does n subsequ5tly claim or allocate a realiz$ d$uction4 7#c7 ,g5]al scale 7,a7 ,9 g5]al ,! scale = d$uctions all[$ "u ?is section %all be-- 7i7 #a4jj p] squ>e foot ( retr(it floor area = #bj to #bd p]c5t s\rce en]gy sav+s1 7ii7 #a4ej p] squ>e foot ( retr(it floor area = #be to #bi p]c5t s\rce en]gy sav+s1 7iii7 #b4jj p] squ>e foot ( retr(it floor area = #cj to #cd p]c5t s\rce en]gy sav+s1 7iv7 #b4ej p] squ>e foot ( retr(it floor area = #ce to #ci p]c5t s\rce en]gy sav+s1 7v7 #c4jj p] squ>e foot ( retr(it floor area = #dj to #dd p]c5t s\rce en]gy sav+s1 7vi7 #c4ej p] squ>e foot ( retr(it floor area = #de to #di p]c5t s\rce en]gy sav+s1 & 7vii7 #d4jj p] squ>e foot ( retr(it floor area = #ej p]c5t or m s\rce en]gy sav+s4 7,b7 ,hi/oric build+s 7i7 ,9 g5]al ,) respect to en]gy-effici5t measures plac$ 9 s]vice z "p ( a c]tifi$ retr(it plan 9 a comm]cial build+ or multifamily build+ on or eligible = ! ,national ,regi/] ( ,hi/oric ,places1 ! respective doll> am\nts set =? 9 ! g5]al scale "u subp>agraph 7,a7 %all-- 7,i7 ea* be increas$ by #bj p]c5t1 = ! purposes ( calculat+ any applicable design d$uction & realiz$ d$uction1 & 7,,ii7 n exce$ ! total co/ to develop & implem5t su* c]tifi$ retr(it plan4 7ii7 ,exception ,if ! am\nt describ$ 9 clause 7i77,,ii7 is tak5 z a design d$uction1 !n no realiz$ d$uction %all be all[$4 7c7 ,calculation ( en]gy sav+s 7#a7 ,9 g5]al ,= purposes ( ! design d$uction & ! realiz$ d$uction1 s\rce en]gy sav+s %all be calculat$ ) ref]5ce to a basel9e ( ! annual s\rce en]gy consumption ( ! comm]cial or multifamily build+ be=e en]gy-effici5t measures 7 plac$ 9 s]vice4 7#b7 ,basel9e b5*m>k ,! basel9e "u p>agraph 7#a7 %all be det]m9$ us+ a build+ en]gy p]=mance b5*m>k+ tool designat$ by ! ,adm9i/rator ( ! ,environm5tal ,protection ,ag5cy1 & bas$ ^u #a ye> ( s\rce en]gy consumption data prior to ! date ^u :i* ! en]gy-effici5t measures are plac$ 9 s]vice4 7#c7 ,design & realiz$ s\rce en]gy sav+s 7,a7 ,9 g5]al ,9 c]tify+ a retr(it plan z a c]tifi$ retr(it plan1 a lic5s$ eng9e] or ar*itect %all calculate s\rce en]gy sav+s by utiliz+ ! basel9e b5*m>k def9$ 9 p>agraph 7#b7 & det]m9+ p]c5t improvem5ts f su* basel9e4 7,b7 ,design d$uction ,= purposes ( claim+ a design d$uction1 ! regulations issu$ "u subsection 7f77#a7 %all prescribe ! /&>ds & process = a lic5s$ eng9e] or ar*itect to calculate & c]tify s\rce en]gy sav+s project$ f ! design ( a c]tifi$ retr(it plan z ( ! date en]gy-effici5t measures are plac$ 9 s]vice4 7,c7 ,realiz$ d$uction ,= purposes ( claim+ a realiz$ d$uction1 a lic5s$ eng9e] or ar*itect %all calculate & c]tify s\rce en]gy sav+s realiz$ by a c]tifi$ retr(it plan #b ye>s aft] a design d$uction is all[$ by utiliz+ en]gy consumption data aft] en]gy-effici5t measures are plac$ 9 s]vice1 & adju/+ = climate1 build+ occupancy h\rs1 d5sity1 or o!r factors deem$ appropriate 9 ! b5*m>k+ tool designat$ "u p>agraph 7#b74 7d7 ,c]tifi$ retr(it plan & o!r def9itions ,= purposes ( ?is section-- 7#a7 ,c]tifi$ retr(it plan ,! t]m c]tifi$ retr(it plan means a plan t-- 7,a7 is design$ to r$uce ! annual s\rce en]gy co/s ( a comm]cial build+1 or a multifamily build+1 ?r\gh ! in/allation ( en]gy-effici5t measures1 7,b7 is c]tifi$ "u p5alty ( p]jury by a lic5s$ eng9e] or ar*itect1 :o is n a direct employee ( ! own] ( ! comm]cial build+ or multifamily build+ t is ! subject ( ! plan1 & is lic5s$ 9 ! ,/ate 9 :i* su* build+ is locat$1 7,c7 describes ! squ>e footage ( retr(it floor area cov]$ by su* a plan1 7,d7 specifies t x is design$ to a*ieve a f9al s\rce en]gy usage int5sity aft] en]gy-effici5t measures are plac$ 9 s]vice 9 a comm]cial build+ or a multifamily build+ t does n exce$ on a squ>e foot basis ! av]age level ( en]gy usage int5sity ( o!r simil> build+s1 z describ$ 9 p>agraph 7#b71 7,e7 requires t aft] ! en]gy-effici5t measures are plac$ 9 s]vice1 ! comm]cial build+ or multifamily build+ meets ! applicable ,/ate & local build+ code requirem5ts = ! area 9 :i* su* build+ is locat$1 7,f7 satisfies ! regulations prescrib$ "u subsection 7f71 & 7,g7 is submitt$ to ! ,secret>y ( ,en]gy aft] en]gy-effici5t measures are plac$ 9 s]vice1 = ! purpose ( in=m+ ! report to ,congress requir$ by subsection 7l74 7#b7 ,av]age level ( en]gy usage int5sity 7,a7 ,9 g5]al ,! maximum av]age level ( en]gy usage int5sity "u p>agraph 7#a77;,d7 %all n exce$ #cjj1jjj ,briti% !rmal units p] squ>e foot4 7,b7 ,regulations 7i7 ,9 g5]al ,! ,secret>y1 9 consultation ) ! ,adm9i/rator ( ! ,environm5tal ,protection ,ag5cy1 %all develop di/9ct /&>ds = categories & subcategories ( build+s ) respect to maximum av]age level ( en]gy usage int5sity bas$ on ! be/ available in=mation us$ by ! ,,en]gy ,,/> program4 7ii7 ,review ,! /&>ds develop$ pursuant to clause 7i7 %all be review$ & updat$ by ! ,secret>y1 9 consultation ) ! ,adm9i/rator ( ! ,environm5tal ,protection ,ag5cy1 n lat] ?an e #c ye>s4 7#c7 ,comm]cial build+ 7,a7 ,9 g5]al ,! t]m comm]cial build+ means a build+ locat$ 9 ! ,unit$ ,/ates-- 7i7 t is 9 exi/5ce & occupi$ on ! date ( ! enactm5t ( ?is section1 7ii7 = :i* a c]tificate ( occupancy has be5 issu$ at lea/ #aj ye>s be=e en]gy effici5cy measures are plac$ 9 s]vice1 & 7iii7 ) a prim>y use or purpose o!r ?an z resid5tial h\s+4 7,b7 ,%opp+ c5t]s ,9 ! case ( a retail %opp+ c5t]1 ! t]m comm]cial build+ %all include an area )9 su* build+ t is-- 7i7 #ej1jjj squ>e feet or l>g] t is cov]$ by a sep>ate utility grade met] to record en]gy consumption 9 su* area1 & 7ii7 "u ! day-to-day managem5t & op]ation (-- 7,i7 ! own] ( su* build+ z common space areas1 or 7,,ii7 a retail t5ant1 lessee1 or o!r occupant4 7#d7 ,en]gy-effici5t measures ,! t]m en]gy-effici5t measures means a measure1 or comb9ation ( measures1 plac$ 9 s]vice ?r\gh a c]tifi$ retr(it plan-- 7,a7 on or 9 a comm]cial build+ or multifamily build+1 7,b7 z "p (-- 7i7 ! light+ sy/ems1 7ii7 ! heat+1 cool+1 v5tilation1 refrig]ation1 or hot wat] sy/ems1 7iii7 build+ transportation sy/ems1 su* z elevators & escalators1 7iv7 ! build+ envelope1 :i* may include an en]gy-effici5t cool ro(1 7v7 a cont9u\s commission+ contract "u ! sup]vision ( a lic5s$ eng9e] or ar*itect1 or 7vi7 build+ op]ations or monitor+ sy/ems1 includ+ utility-grade met]s & submet]s1 & 7,c7 includ+ equipm5t1 mat]ials1 & sy/ems )9 subp>agraph 7,b7 ) respect to :i* depreciation 7or amortization 9 lieu ( depreciation7 is all[$4 7#e7 ,en]gy sav+s ,! t]m en]gy sav+s means s\rce en]gy usage int5sity r$uc$ on a p] squ>e foot basis ?r\gh design & implem5tation ( a c]tifi$ retr(it plan4 7#f7 ,multifamily build+ ,! t]m multifamily build+-- 7,a7 means-- 7i7 a /ructure ( #e or m dwell+ units locat$ 9 ! ,unit$ ,/ates-- 7,i7 t is 9 exi/5ce & occupi$ on ! date ( ! enactm5t ( ?is section1 7,,ii7 = :i* a c]tificate ( occupancy has be5 issu$ at lea/ #aj ye>s be=e en]gy effici5cy measures are plac$ 9 s]vice1 & 7,,iii7 ) a prim>y use z resid5tial h\s+1 & 7,b7 includes su* build+s own$ & op]at$ z a condom9ium1 coop]ative1 or o!r common int]e/ community4 7#g7 ,s\rce en]gy ,! t]m s\rce en]gy means ! total am\nt ( raw fuel t is requir$ to op]ate a comm]cial build+ or multifamily build+1 & acc\nts = losses t are incurr$ 9 ! g5]ation1 /orage1 transport1 & deliv]y ( fuel to su* a build+4 7e7 ,tim+ ( claim+ d$uctions ,d$uctions all[$ "u ?is section may be claim$ z foll[s3 7#a7 ,design d$uction ,9 ! case ( a design d$uction1 9 ! taxable ye> t en]gy effici5cy measures are plac$ 9 s]vice4 7#b7 ,realiz$ d$uction ,9 ! case ( a realiz$ d$uction1 9 ! second taxable ye> foll[+ ! taxable ye> describ$ 9 p>agraph 7#a74 7f7 ,regulations 7#a7 ,9 g5]al ,n lat] ?an #ahj days aft] ! date ( ! enactm5t ( ?is section1 & aft] notice & opportunity = public comm5t1 ! ,secret>y1 9 consultation ) ! ,secret>y ( ,en]gy & ! ,adm9i/rator ( ! ,environm5tal ,protection ,ag5cy1 %all prescribe regulations-- 7,a7 = ! mann] & me?od = a lic5s$ eng9e] or ar*itect to c]tify retr(it plans1 model project$ en]gy sav+s1 & calculate realiz$ en]gy sav+s1 & 7,b7 not)/&+ subsection 7b77#b77;,c71 to provide1 z appropriate1 = a recapture ( ! d$uctions all[$ "u ?is section if a retr(it plan is n fully implem5t$1 or a retr(it plan & en]gy sav+s are n c]tifi$ or v]ifi$ 9 accordance ) regulations prescrib$ "u ?is subsection4 7#b7 ,reliance on e/abli%$ protocols1 etc ,to ! maximum ext5t practicable & available1 su* regulations %all rely ^u e/abli%$ protocols & docum5ts us$ 9 ! ,,en]gy ,,/> program1 & indu/ry be/ practices & exi/+ guidel9es1 su* z ! ,build+ ,en]gy ,model+ ,guidel9es ( ! ,comm]cial ,en]gy ,s]vices ,network 7,,comnet74 7#c7 ,all[ance ( d$uctions p5d+ issuance ( regulations ,p5d+ issuance ( ! regulations "u p>agraph 7#a71 ! own] ( a comm]cial build+ or a multifamily build+ %all be all[$ to claim or allocate a d$uction all[$ "u ?is section4 7g7 ,notice to own] ,ea* c]tification ( a retr(it plan & calculation ( en]gy sav+s requir$ "u ?is section %all include an explanation to ! own] ( a comm]cial build+ or a multifamily build+ reg>d+ ! en]gy-effici5t measures plac$ 9 s]vice & _! project$ & realiz$ annual en]gy co/s4 7h7 ,allocation ( d$uction 7#a7 ,9 g5]al ,n lat] ?an #ahj days aft] ! date ( ! enactm5t ( ?is section1 ! ,secret>y1 9 consultation ) ! ,secret>y ( ,en]gy1 %all promulgate a regulation to all[ ! own] ( a comm]cial build+ or a multifamily build+1 includ+ a gov]nm5t1 tribal1 or non-pr(it own]1 to allocate any d$uction all[$ "u ?is section1 or a portion !re(1 to ! p]son prim>ily responsible = fund+1 f9anc+1 design+1 leas+1 op]at+1 or plac+ 9 s]vice en]gy-effici5t measures4 ,su* p]son %all be treat$ z ! taxpay] = purposes ( ?is section & %all include a build+ t5ant1 f9anci]1 ar*itect1 pr(essional eng9e]1 lic5s$ contractor1 en]gy s]vices company1 or o!r build+ pr(essional4 7#b7 ,=m ( allocation ,an allocation made "u ?is p>agraph %all be 9 writ+ & 9 a =m t meets ! =m ( allocation requirem5ts 9 ,notice #bjjh-dj ( ! ,int]nal ,rev5ue ,s]vice4 7#c7 ,provision ( allocation ,n lat] ?an #cj days aft] receipt ( a writt5 reque/ f a p]son eligible to receive an allocation "u ?is p>agraph1 ! own] ( a build+ t makes an allocation "u ?is p>agraph %all provide ! =m ( allocation 7z describ$ 9 p>agraph 7#b77 to su* p]son4 7#d7 ,allocation f public own] ( build+ ,9 ! case ( a comm]cial build+ or a multifamily build+ t is own$ by a ,f$]al1 ,/ate1 or local gov]nm5t or a subdivision !re(1 ,notice #bjjf-eb ( ! ,int]nal ,rev5ue ,s]vice1 z amplifi$ by ,notice #bjjh-dj1 %all apply to any allocation4 7i7 ,basis r$uction ,= purposes ( ?is subtitle1 if a d$uction is all[$ "u ?is section ) respect to any en]gy-effici5t measures plac$ 9 s]vice "u a c]tifi$ retr(it plan o!r ?an 9 a qualifi$ l[-income build+ 7)9 ! mean+ ( section #db71 ! basis ( su* measures %all be r$uc$ by ! am\nt ( ! d$uction s all[$ or s allocat$4 7j7 ,special ,rule = ,p>tn]%ips & ,s ,corporations ,9 ! case ( a p>tn]%ip or ,s corporation1 ?is section %all be appli$ at ! p>tn] or %>ehold] level1 subject to su* report+ requirem5ts z are det]m9$ appropriate by ! ,secret>y4 7k7 ,tax inc5tives n available 7#a7 ,en]gy effici5t comm]cial build+s d$uction ,en]gy-effici5t measures = :i* a d$uction is all[$ "u ?is section %all n be eligible = a d$uction "u section #agi;,d4 7#b7 ,new en]gy effici5t home cr$it ,no d$uction %all be all[$ "u ?is section ) respect to any build+ or dwell+ unit ) respect to :i* a cr$it "u section #de,l 0 all[$4 7l7 ,report to ,congress 7#a7 ,9 g5]al ,bi5nially1 beg9n+ ) ! fir/ ye> aft] ! enactm5t ( ?is section1 ! ,secret>y1 9 conjunction ) ! ,secret>y ( ,en]gy1 %all submit a report to ,congress t-- 7,a7 expla9s ! en]gy sav$1 ! en]gy-effici5t measures implem5t$1 ! realization ( en]gy sav+s project$1 & records ! am\nts & types ( d$uctions all[$ "u ?is section1 7,b7 expla9s ! en]gy sav$1 ! en]gy effici5t measures implem5t$1 & records ! am\nt ( d$uctions all[$ "u section #agi;,d1 bas$ on ! data collect$ pursuant to subsection 7i7 ( su* section1 7,c7 det]m9es ! numb] ( jobs creat$ z a result ( ! d$uction all[$ "u ?is section1 7,d7 det]m9es h[ ! use ( any d$uction all[$ "u ?is section may be improv$1 bas$ on ! in=mation provid$ to ! ,secret>y ( ,en]gy1 7,e7 provides aggregat$ data ) respect to ! in=mation describ$ 9 subp>agraphs 7,a7 ?r\gh 7,d71 & 7,f7 provides /atutory recomm5dations to ,congress t w\ld r$uce en]gy consumption 9 new & exi/+ comm]cial build+s locat$ 9 ! ,unit$ ,/ates1 includ+ recomm5dations on provid+ en]gy-effici5t tax inc5tives = subsections ( build+s t op]ate ) specific utility-grade met]+4 7#b7 ,protection ( taxpay] in=mation ,! ,secret>y & ! ,secret>y ( ,en]gy %all %>e in=mation on d$uctions all[$ "u ?is section & relat$ reports submitt$1 z reque/$ by ea* ag5cy to fulfill its obligations "u ?is section1 ) su* r$actions z deem$ necess>y to protect ! p]sonally id5tifiable f9ancial in=mation ( a taxpay]4 7#c7 ,incorporation into ,dep>tm5t ( ,en]gy programs ,! ,secret>y ( ,en]gy %all1 to ! maximum ext5t practicable1 incorporate conclusions ( ! report "u ?is subsection into curr5t ,dep>tm5t ( ,en]gy build+ p]=mance & en]gy effici5cy data collection & o!r report+ programs4 7m7 ,t]m9ation ,?is section %all n apply to any prop]ty plac$ 9 s]vice aft] ,decemb] #ca1 #bjaf4 4 7b7 ,effect on depreciation on e>n+s & pr(its ,subp>agraph 7,b7 ( section #cab7k77#c71 z am5d$ by ?is title1 is am5d$-- 7#a7 by /rik+ or #agi;,e bo? places x appe>s 9 clause 7i7 & ins]t+ #agi;,e1 or #agi;,f1 7#b7 by /rik+ or #agi;,e 9 ! head+ & ins]t+ #agi;,e1 or #agi;,f1 & 7#c7 by ins]t+ or #agi;,f aft] section #agi;,d 9 clause 7ii77,i74 7c7 ,con=m+ am5dm5t ,! table ( sections = "p ,,vi ( sub*apt] ,b ( *apt] #a is am5d$ by ins]t+ aft] ! item relat+ to section #agi;,e ! foll[+ new item3 ,sec4 #agi;,f4 ,d$uction = retr(its ( exi/+ comm]cial & multifamily build+s4 4 7d7 ,effective date ,except z o!rwise provid$1 ! am5dm5ts made by ?is section %all apply to prop]ty plac$ 9 s]vice 9 taxable ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 ,,ii ,home en]gy improvem5ts #bja4 ,p]=mance bas$ home en]gy improvem5ts 7a7 ,9 g5]al ,subp>t ,a ( "p ,,iv ( sub*apt] ,a ( *apt] #a is am5d$ by add+ at ! end ! foll[+ new section3 #be;,e4 ,p]=mance bas$ en]gy improvem5ts 7a7 ,9 g5]al ,9 ! case ( an individual1 !re %all be all[$ z a cr$it aga9/ ! tax impos$ by ?is *apt] = ! taxable ye> = a qualifi$ :ole home en]gy effici5cy retr(it an am\nt det]m9$ "u subsection 7b74 7b7 ,am\nt det]m9$ 7#a7 ,9 g5]al ,subject to p>agraph 7#d71 ! am\nt det]m9$ "u ?is subsection is equal to-- 7,a7 ! base am\nt "u p>agraph 7#b71 increas$ by 7,b7 ! am\nt det]m9$ "u p>agraph 7#c74 7#b7 ,base am\nt ,= purposes ( p>agraph 7#a77;,a71 ! base am\nt is #b1jjj1 b only if ! en]gy use = ! resid5ce is r$uc$ by at lea/ #bj p]c5t bel[ ! basel9e en]gy use = su* resid5ce z calculat$ accord+ to p>agraph 7#e74 7#c7 ,increase am\nt ,= purposes ( p>agraph 7#a77;,b71 ! am\nt det]m9$ "u ?is p>agraph is #ejj = ea* additional #e p]c5tage po9t r$uction 9 en]gy use4 7#d7 ,limitation ,9 no ev5t %all ! am\nt det]m9$ "u ?is subsection exce$ ! less] (-- 7,a7 #e1jjj ) respect to any resid5ce1 or 7,b7 #cj p]c5t ( ! qualifi$ home en]gy effici5cy exp5ditures paid or incurr$ by ! taxpay] "u subsection 7c7 ) respect to su* resid5ce4 7#e7 ,det]m9ation ( en]gy use r$uction ,= purposes ( ?is subsection-- 7,a7 ,9 g5]al ,! r$uction 9 en]gy use = any resid5ce %all be det]m9$ by model+ ! annual pr$ict$ p]c5tage r$uction 9 total en]gy co/s = heat+1 cool+1 hot wat]1 & p]man5t light+4 ,x %all be model$ us+ comput] model+ s(tw>e approv$ "u subsection 7d77#b7 & a basel9e en]gy use calculat$ accord+ to subsection 7d77#a77;,c74 7,b7 ,en]gy co/s ,= purposes ( subp>agraph 7,a71 ! en]gy co/ p] unit ( fuel = ea* fuel type %all be det]m9$ by divid+ ! total actual en]gy bill = ! resid5ce = t fuel type = ! mo/ rec5t available #ab-mon? p]iod by ! total en]gy units ( t fuel type us$ ov] ! same p]iod4 7c7 ,qualifi$ home en]gy effici5cy exp5ditures ,= purposes ( ?is section1 ! t]m qualifi$ home en]gy effici5cy exp5ditures-- 7#a7 means any am\nt paid or incurr$ by ! taxpay] dur+ ! taxable ye> = a qualifi$ :ole home en]gy effici5cy retr(it1 includ+ ! co/ ( diagno/ic proc$ures1 labor1 & model+1 7#b7 includes only measures t h an av]age e/imat$ life ( #e ye>s or m z det]m9$ by ! ,secret>y1 aft] consultation ) ! ,secret>y ( ,en]gy1 & 7#c7 does n include any am\nt :i* is paid or incurr$ 9 connection ) any expansion ( ! build+ envelope ( ! resid5ce4 7d7 ,qualifi$ :ole home en]gy effici5cy retr(it ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,! t]m qualifi$ :ole home en]gy effici5cy retr(it means ! implem5tation ( measures plac$ 9 s]vice dur+ ! taxable ye> int5d$ to r$uce ! en]gy use ( ! pr9cipal resid5ce ( ! taxpay] :i* is locat$ 9 ! ,unit$ ,/ates4 ,a qualifi$ :ole home en]gy effici5cy retr(it %all-- 7,a7 subject to p>agraph 7#d71 be design$1 implem5t$1 & in/all$ by a contractor :i* is-- 7i7 accr$it$ by ! ,build+ ,p]=mance ,in/itute 7h]eaft] 9 ?is section ref]r$ to z ,,bpi7 or a preexi/+ ,,bpi accr$itation-bas$ ,/ate c]tification program ) enhancem5ts to a*ieve ,/ate en]gy policy1 7ii7 a ,resid5tial ,en]gy ,s]vices ,network 7h]eaft] 9 ?is section ref]r$ to z ,,resnet7 accr$it$ ,en]gy ,sm>t ,home ,p]=mance ,team1 or 7iii7 accr$it$ by an equival5t c]tification program approv$ by ! ,secret>y1 aft] consultation ) ! ,secret>y ( ,en]gy1 = ?is purpose1 7,b7 in/all a set ( measures model$ to a*ieve a r$uction 9 en]gy use ( at lea/ #bj p]c5t bel[ ! basel9e en]gy use e/abli%$ 9 subp>agraph 7,c71 us+ comput] model+ s(tw>e approv$ "u p>agraph 7#b71 7,c7 e/abli% ! basel9e en]gy use by calibrat+ ! model us+ sections #c & #d & ,annex ,d ( ,,bpi ,/&>d ,,bpi-#bdjj-,s-#bjaa3 ,/&>diz$ ,qualification ( ,:ole ,h\se ,en]gy ,sav+s ,e/imates1 or an equival5t /&>d approv$ by ! ,secret>y1 aft] consultation ) ,secret>y ( ,en]gy1 = ?is purpose1 7,d7 docum5t ! measures implem5t$ 9 ! resid5ce ?r\gh photographs tak5 be=e & aft] ! retr(it1 includ+ photographs ( its visible en]gy sy/ems & envelope z relevant1 & 7,e7 implem5t a te/-out proc$ure1 foll[+ guidel9es ( ! applicable c]tification program specifi$ "u clause 7i7 or 7ii7 ( subp>agraph 7,a71 or equival5t guidel9es approv$ by ! ,secret>y1 aft] consultation ) ! ,secret>y ( ,en]gy1 = ?is purpose1 to ensure-- 7i7 ! safe op]ation ( all sy/ems po/ retr(it1 & 7ii7 t all improvem5ts are includ$ 91 & h be5 in/all$ accord+ to1 /&>ds ( ! applicable c]tification program specifi$ "u clause 7i7 or 7ii7 ( subp>agraph 7,a71 or equival5t /&>ds approv$ by ! ,secret>y1 aft] consultation ) ! ,secret>y ( ,en]gy1 = ?is purpose4 ,= purposes ( subp>agraph 7,a77iii71 an organization or ,/ate may submit an equival5t c]tification program = approval by ! ,secret>y1 9 consultation ) ! ,secret>y ( ,en]gy4 ,! ,secret>y %all approve or d5y su* submission n lat] ?an #ahj days aft] receipt1 &1 if ! ,secret>y fails to respond 9 t "t p]iod1 ! submitt$ equival5t c]tification program %all be consid]$ approv$4 7#b7 ,approv$ model+ s(tw>e ,= purposes ( p>agraph 7#a77;,b71 ! contractor 7or1 if applicable1 ! p]son describ$ 9 p>agraph 7#d77 %all use model+ s(tw>e c]tifi$ by ,,resnet z foll[+ ! s(tw>e v]ification te/ suites 9 section #d4b4a ( ,,resnet ,publication ,no4 #jf-jja or c]tifi$ by an alt]native organization z foll[+ an equival5t /&>d1 z approv$ by ! ,secret>y1 aft] consultation ) ! ,secret>y ( ,en]gy1 = ?is purpose4 7#c7 ,docum5tation ,! ,secret>y1 aft] consultation ) ! ,secret>y ( ,en]gy1 %all prescribe regulations direct+ :at specific docum5tation is requir$ to be reta9$ or submitt$ by ! taxpay] 9 ord] to claim ! cr$it "u ?is section1 :i* %all include1 9 addition to ! photographs "u p>agraph 7#a77;,d71 a =m approv$ by ! ,secret>y t is complet$ & sign$ by ! qualifi$ :ole home en]gy effici5cy retr(it contractor "u p5alties ( p]jury4 ,su* =m %all include-- 7,a7 a /atem5t t ! contractor 7or1 if applicable1 ! p]son describ$ 9 p>agraph 7#d77 foll[$ ! specifi$ proc$ures = e/abli%+ basel9e en]gy use & e/imat+ r$uction 9 en]gy use1 7,b7 ! "n ( ! s(tw>e us$ = calculat+ ! basel9e en]gy use & r$uction 9 en]gy use1 ! p]c5tage r$uction 9 project$ en]gy sav+s a*iev$1 & a /atem5t t su* s(tw>e 0 c]tifi$ = ?is program by ! ,secret>y1 aft] consultation ) ! ,secret>y ( ,en]gy1 7,c7 a /atem5t t ! contractor 7or1 if applicable1 ! p]son describ$ 9 p>agraph 7#d77 w reta9 ! details ( ! calculations & und]ly+ en]gy bills = #e ye>s & w make su* details available = inspection by ! ,secret>y or ! ,secret>y ( ,en]gy1 if s reque/$1 7,d7 a li/ ( measures in/all$ & a /atem5t t all measures includ$ 9 ! r$uction 9 en]gy use e/imate are includ$ 91 & in/all$ accord+ to1 /&>ds ( ! applicable c]tification program specifi$ "u clause 7i7 or 7ii7 ( subp>agraph 7,a71 or equival5t /&>ds approv$ by ! ,secret>y1 aft] consultation ) ! ,secret>y ( ,en]gy1 7,e7 a /atem5t t ! contractor 7or1 if applicable1 ! p]son describ$ 9 p>agraph 7#d77 meets ! requirem5ts ( p>agraph 7#a77;,a71 & 7,f7 docum5tation ( ! total co/ ( ! project 9 ord] to comply ) ! limitation "u subsection 7b77#d77;,b74 7#d7 ,c]tifi$ home en]gy rat] ,= purposes ( p>agraph 7#a77;,a71 a contractor %all be deem$ to h satisfi$ ! accr$itation requirem5t "u su* p>agraph if ! contractor ent]s into a contract ) a p]son t satisfies su* accr$itation requirem5t = purposes ( model+ ! en]gy use r$uction describ$ 9 p>agraph 7#a77;,b74 7e7 ,additional rules ,= purposes ( ?is section-- 7#a7 ,no d\ble b5efit 7,a7 ,9 g5]al ,) respect to any resid5ce1 no cr$it %all be all[$ "u ?is section = any taxable ye> 9 :i* ! taxpay] claims a cr$it "u section #be;,c4 7,b7 ,r5ewable en]gy sy/ems & appliances ,9 ! case ( a r5ewable en]gy sy/em or appliance t qualifies = ano!r cr$it "u ?is *apt]1 ! result+ r$uction 9 en]gy use %all n be tak5 into acc\nt 9 det]m9+ ! p]c5tage en]gy use r$uctions "u subsection 7b74 7,c7 ,no d\ble b5efit = c]ta9 exp5ditures ,! t]m qualifi$ home en]gy effici5cy exp5ditures %all n include any exp5diture = :i* a d$uction or cr$it is claim$ by ! taxpay] "u ?is *apt] = ! taxable ye> or ) respect to :i* ! taxpay] receives any ,f$]al en]gy effici5cy rebate4 7#b7 ,pr9cipal resid5ce ,! t]m pr9cipal resid5ce has ! same mean+ z :5 us$ 9 section #aba4 7#c7 ,special rules ,rules simil> to ! rules "u p>agraphs 7#d71 7#e71 7#f71 7#g71 & 7#h7 ( section #be;,d7e7 & section #be;,c7e77#b7 %all apply1 z det]m9$ by ! ,secret>y1 aft] consultation ) ! ,secret>y ( ,en]gy4 7#d7 ,basis adju/m5ts ,= purposes ( ?is subtitle1 if a cr$it is all[$ "u ?is section ) respect to any exp5diture ) respect to any prop]ty1 ! increase 9 ! basis ( su* prop]ty :i* w\ld 7b = ?is p>agraph7 result f su* exp5diture %all be r$uc$ by ! am\nt ( ! cr$it s all[$4 7#e7 ,election n to claim cr$it ,no cr$it %all be det]m9$ "u subsection 7a7 = ! taxable ye> if ! taxpay] elects n to h subsection 7a7 apply to su* taxable ye>4 7#f7 ,multiple ye> retr(its ,if ! taxpay] has claim$ a cr$it "u ?is section 9 a previ\s taxable ye>1 ! basel9e en]gy use = ! calculation ( r$uc$ en]gy use mu/ be e/abli%$ aft] ! previ\s retr(it has be5 plac$ 9 s]vice4 7f7 ,t]m9ation ,?is section %all n apply ) respect to any co/s paid or incurr$ aft] ,decemb] #ca1 #bjaf4 7g7 ,secret>y review ,! ,secret>y1 aft] consultation ) ! ,secret>y ( ,en]gy1 %all e/abli% a review process = ! retr(its p]=m$1 includ+ an e/imate ( ! usage ( ! cr$it & a /ati/ically valid analysis ( ! av]age actual en]gy use r$uctions1 utiliz+ utility bill data collect$ on a volunt>y basis1 & report to ,congress n lat] ?an ,june #cj1 #bjad1 any f9d+s & recomm5dations =-- 7#a7 improvem5ts to ! effectiv5ess ( ! cr$it "u ?is section1 & 7#b7 expansion ( ! cr$it "u ?is section to r5tal units4 4 7b7 ,con=m+ am5dm5ts 7#a7 ,section #ajaf7;a7 is am5d$-- 7,a7 by /rik+ & at ! end ( p>agraph 7#cf71 7,b7 by /rik+ ! p]iod at ! end ( p>agraph 7#cg7 & ins]t+ 1 &1 & 7,c7 by add+ at ! end ! foll[+ new p>agraph3 7#ch7 to ! ext5t provid$ 9 section #be;,e7e77#d71 9 ! case ( am\nts ) respect to :i* a cr$it has be5 all[$ "u section #be;,e4 4 7#b7 ,section #feja7m7 is am5d$ by ins]t+ #be;,e7e77#e71 aft] section4 7#c7 ,! table ( sections = subp>t ,a ( "p ,,iv ( sub*apt] ,a *apt] #a is am5d$ by ins]t+ aft] ! item relat+ to section #be;,d ! foll[+ new item3 ,sec4 #be;,e4 ,p]=mance bas$ en]gy improvem5ts4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to am\nts paid or incurr$ = a qualifi$ :ole home en]gy effici5cy retr(it plac$ 9 s]vice aft] ,decemb] #ca1 #bjac4 ,,iii ,indu/rial ,en]gy & ,wat] ,effici5cy #cja4 ,modifications 9 cr$it = comb9$ heat & p[] sy/em prop]ty 7a7 ,modification ( c]ta9 capacity limitations ,section #dh7;c77#c77;,b7 is am5d$-- 7#a7 by /rik+ #ae megawatts 9 clause 7ii7 & ins]t+ #be megawatts1 7#b7 by /rik+ #bj1jjj horsep[] 9 clause 7ii7 & ins]t+ #cd1jjj horsep[]1 & 7#c7 by /rik+ clause 7iii74 7b7 ,increase 9 cr$it p]c5tage = sy/ems ) great] effici5cy ,subp>agraph 7,a7 ( section #dh7;a77#b7 is am5d$-- 7#a7 by /rik+ & at ! end ( subclause 7,,iii7 ( clause 7i71 7#b7 by add+ at ! end ( clause 7i7 ! foll[+ new subclause3 7,v7 comb9$ heat & p[] sy/em prop]ty ! en]gy effici5cy p]c5tage ( :i* 7z def9$ 9 subsection 7c77#c77;,c77i77 is equal to or great] ?an #he p]c5t1 1 7#c7 by r$esignat+ clause 7ii7 z clause 7iii71 7#d7 by /rik+ clause 7i7 9 clause 7iii71 z s r$esignat$1 & ins]t+ clause 7i7 or 7ii71 & 7#e7 by ins]t+ aft] clause 7i7 ! foll[+ new clause3 7ii7 #bj p]c5t 9 ! case ( comb9$ heat & p[] sy/em prop]ty ! en]gy p]c5tage ( :i* 7z def9$ 9 subsection 7c77#c77;,c77i77 is equal to or great] ?an #ge p]c5t & less ?an #he p]c5t1 & 4 7c7 ,ext5sion ,clause 7iv7 ( section #dh7;c77#c77;,a7 is am5d$ by /rik+ ,janu>y #a1 #bjag & ins]t+ ,janu>y #a1 #bjai4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to p]iods aft] ! date ( ! enactm5t ( ?is ,act1 "u rules simil> to ! rules ( section #dh7m7 ( ! ,int]nal ,rev5ue ,code ( #aihf 7z 9 effect on ! day be=e ! date ( ! enactm5t ( ! ,rev5ue ,reconciliation ,act ( #aiij74 #cjb4 ,inve/m5t tax cr$it = biomass heat+ prop]ty 7a7 ,9 g5]al ,subp>agraph 7,a7 ( section #dh7;a77#c7 is am5d$ by /rik+ or at ! end ( clause 7vi71 by ins]t+ or at ! end ( clause 7vii71 & by ins]t+ aft] clause 7vii7 ! foll[+ new clause3 7viii7 op5-loop biomass 7)9 ! mean+ ( section #de7;c77#c77 heat+ prop]ty1 includ+ boil]s or furnaces :i* op]ate at output effici5cies ( n less ?an #fe p]c5t 7measur$ by ! high] heat+ value ( ! fuel7 & :i* provide !rmal en]gy 9 ! =m ( heat1 hot wat]1 or /eam = space heat+1 air condition+1 dome/ic hot wat]1 or indu/rial process heat1 b only ) respect to p]iods end+ be=e ,janu>y #a1 #bjaf1 4 7b7 #cj-,p]c5t & #ae-,p]c5t cr$its 7#a7 ,9 g5]al ,subp>agraph 7,a7 ( section #dh7;a77#b71 z am5d$ by ?is title1 is am5d$-- 7,a7 by r$esignat+ clause 7iii7 z clause 7iv71 7,b7 by /rik+ & at ! end ( clause 7ii71 7,c7 by /rik+ clause 7i7 or 7ii7 9 clause 7iv71 z s r$esignat$1 & ins]t+ clause 7i71 7ii71 or 7iii71 & 7,d7 by ins]t+ aft] clause 7ii7 ! foll[+ new clause3 7iii7 #ae p]c5t 9 ! case ( en]gy prop]ty describ$ 9 p>agraph 7#c77;,a77viii7 to :i* clause 7i77,,vi7 does n apply1 & 4 7#b7 ,increas$ cr$it = great] effici5cy ,clause 7i7 ( section #dh7;a77#b77;,a71 z am5d$ by ?is title1 is am5d$ by /rik+ & at ! end ( subclause 7,,iv71 by /rik+ ! comma at ! end ( subclause 7,v7 & ins]t+ 1 &1 & by ins]t+ aft] subclause 7,v7 ! foll[+ new subclause3 7,,vi7 en]gy prop]ty describ$ 9 p>agraph 7#c77;,a77viii7 :i* op]ates at an output effici5cy ( n less ?an #hj p]c5t 7measur$ by ! high] heat+ value ( ! fuel71 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to p]iods aft] ! date ( ! enactm5t ( ?is ,act1 9 taxable ye>s end+ aft] su* date1 "u rules simil> to ! rules ( section #dh7m7 ( ! ,int]nal ,rev5ue ,code ( #aihf 7z 9 effect on ! day be=e ! date ( ! enactm5t ( ! ,rev5ue ,reconciliation ,act ( #aiij74 #cjc4 ,inve/m5t tax cr$it = wa/e heat to p[] prop]ty 7a7 ,9 g5]al ,subp>agraph 7,a7 ( section #dh7;a77#c71 z am5d$ by ?is title1 is am5d$ by /rik+ or at ! end ( clause 7vii71 by /rik+ ! comma at ! end ( clause 7viii7 & ins]t+ 1 or1 & by ins]t+ aft] clause 7viii7 ! foll[+ new clause3 7ix7 wa/e heat to p[] prop]ty1 4 7b7 #cj-,p]c5t cr$it ,clause 7i7 ( section #dh7;a77#b77;,a71 z am5d$ by ?is title1 is am5d$ by /rik+ & at ! end ( subclause 7,v71 by /rik+ ! comma at ! end ( subclause 7,,vi7 & ins]t+ 1 &1 & by ins]t+ aft] subclause 7,,vi7 ! foll[+ new subclause3 7,,vii7 wa/e heat to p[] prop]ty1 4 7c7 ,wa/e heat ,to p[] prop]ty ,subsection 7c7 ( section #dh is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#e7 ,wa/e heat to p[] prop]ty 7,a7 ,9 g5]al ,! t]m wa/e heat to p[] prop]ty means prop]ty-- 7i7 compris+ a sy/em :i* g5]ates electricity ?r\gh ! recov]y ( a qualifi$ wa/e heat res\rce1 & 7ii7 :i* is plac$ 9 s]vice be=e ,janu>y #a1 #bjai4 7,b7 ,qualifi$ wa/e heat res\rce ,! t]m qualifi$ wa/e heat res\rce means-- 7i7 exhau/ heat or fl>$ gas f an indu/rial process1 7ii7 wa/e gas or indu/rial tail gas t w\ld o!rwise be fl>$1 inc9]at$1 or v5t$1 7iii7 a pressure drop 9 any gas = an indu/rial or comm]cial process1 or 7iv7 su* o!r =ms ( wa/e heat res\rces z ! ,secret>y may det]m9e4 7,c7 ,exception ,! t]m qualifi$ wa/e heat res\rce does n include any heat res\rce f a process ^: prim>y purpose is ! g5]ation ( electricity utiliz+ a fossil fuel or ! production ( oil1 natural gas1 or o!r fossil fuels4 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to p]iods aft] ! date ( ! enactm5t ( ?is ,act1 9 taxable ye>s end+ aft] su* date1 "u rules simil> to ! rules ( section #dh7m7 ( ! ,int]nal ,rev5ue ,code ( #aihf 7z 9 effect on ! day be=e ! date ( ! enactm5t ( ! ,rev5ue ,reconciliation ,act ( #aiij74 #cjd4 ,motor en]gy effici5cy improvem5t tax cr$it 7a7 ,9 g5]al ,subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a is am5d$ by add+ at ! end ! foll[+ new section3 #de,s4 ,motor en]gy effici5cy improvem5t tax cr$it 7a7 ,9 g5]al ,= purposes ( section #ch1 ! motor en]gy effici5cy improvem5t tax cr$it det]m9$ "u ?is section = ! taxable ye> is an am\nt equal to #abj multipli$ by ! motor horsep[] ( an appliance1 ma*9e1 or equipm5t-- 7#a7 manufactur$ 9 su* taxable ye> by a manufactur] :i* incorporates an advanc$ motor & drive sy/em into a newly design$ appliance1 ma*9e1 or equipm5t or into a r$esign$ appliance1 ma*9e1 or equipm5t :i* did n previ\sly make use ( ! advanc$ motor & drive sy/em1 or 7#b7 plac$ back into s]vice 9 su* taxable ye> by an end us] :i* upgrades an exi/+ appliance1 ma*9e1 or equipm5t ) an advanc$ motor & drive sy/em4 ,= any advanc$ motor & drive sy/em ) a total horsep[] ( less ?an #aj1 su* motor en]gy effici5cy improvem5t tax cr$it is an am\nt :i* be>s ! same ratio to #abj z su* total horsep[] be>s to #a horsep[]4 7b7 ,advanc$ motor & drive sy/em ,= purposes ( ?is section1 ! t]m advanc$ motor & drive sy/em means a motor & any requir$ associat$ electronic control :i*-- 7#a7 (f]s v>iable or multiple spe$ op]ation1 & 7#b7 uses p]man5t magnet te*nology1 electronically commutat$ motor te*nology1 swit*$ reluctance motor te*nology1 syn*ron\s reluctance1 or su* o!r motor & drive sy/ems te*nologies z det]m9$ by ! ,secret>y ( ,en]gy4 7c7 ,aggregate p] taxpay] limitation 7#a7 ,9 g5]al ,! am\nt ( ! cr$it det]m9$ "u ?is section = any taxpay] = any taxable ye> %all n exce$ ! excess 7if any7 ( #b1jjj1jjj ov] ! aggregate cr$its all[$ "u ?is section ) respect to su* taxpay] = all prior taxable ye>s4 7#b7 ,aggregation rules ,= purposes ( ?is section1 all p]sons treat$ z a s+le employ] "u subsections 7a7 & 7b7 ( section #eb %all be treat$ z #a taxpay]4 7d7 ,special rules 7#a7 ,basis r$uction ,= purposes ( ?is subtitle1 ! basis ( any prop]ty = :i* a cr$it is all[able "u subsection 7a7 %all be r$uc$ by ! am\nt ( su* cr$it s all[$4 7#b7 ,no d\ble b5efit ,no o!r cr$it %all be all[able "u ?is *apt] = prop]ty ) respect to :i* a cr$it is all[$ "u ?is section4 7#c7 ,prop]ty us$ outside ,unit$ ,/ates n qualifi$ ,no cr$it %all be all[able "u subsection 7a7 ) respect to any prop]ty ref]r$ to 9 section #ej7;b77#a74 7e7 ,application ,?is section %all n apply to prop]ty manufactur$ or plac$ back into s]vice be=e ! date :i* is #f mon?s aft] ! date ( ! enactm5t ( ?is section or aft] ,decemb] #ca1 #bjaf4 4 7b7 ,con=m+ am5dm5ts 7#a7 ,section #ch7;b7 is am5d$ by /rik+ plus at ! end ( p>agraph 7#ce71 by /rik+ ! p]iod at ! end ( p>agraph 7#cf7 & ins]t+ 1 plus1 & by add+ at ! end ! foll[+ new p>agraph3 7#cg7 ! motor en]gy effici5cy improvem5t tax cr$it det]m9$ "u section #de,s4 4 7#b7 ,section #ajaf7;a7 is am5d$ by /rik+ & at ! end ( p>agraph 7#cf71 by /rik+ ! p]iod at ! end ( p>agraph 7#cg7 & ins]t+ 1 &1 & by add+ at ! end ! foll[+ new p>agraph3 7#ch7 to ! ext5t provid$ 9 section #de,s7d77#a74 4 7#c7 ,! table ( sections = subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a is am5d$ by add+ at ! end ! foll[+ new item3 ,sec4 #de,s4 ,motor en]gy effici5cy improvem5t tax cr$it4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to prop]ty manufactur$ or plac$ back into s]vice aft] ! date :i* is #f mon?s aft] ! date ( ! enactm5t ( ?is ,act4 #cje4 ,cr$it = replacem5t ( ,,cfc refrig]ant *ill] 7a7 ,9 g5]al ,subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a1 z am5d$ by ?is title1 is am5d$ by add+ at ! end ! foll[+ new section3 #de,t4 ,,cfc *ill] replacem5t cr$it 7a7 ,9 g5]al ,= purposes ( section #ch1 ! ,,cfc *ill] replacem5t cr$it det]m9$ "u ?is section = ! taxable ye> is an am\nt equal to-- 7#a7 #aej multipli$ by ! tonnage rat+ ( a ,,cfc *ill] replac$ ) a new effici5t *ill] t is plac$ 9 s]vice by ! taxpay] dur+ ! taxable ye>1 plus 7#b7 if all *ill$ wat] di/ribution pumps connect$ to ! new effici5t *ill] include v>iable frequ5cy drives1 #ajj multipli$ by any tonnage d[nsiz+4 7b7 ,,cfc *ill] ,= purposes ( ?is section1 ! t]m ,,cfc *ill] includes prop]ty :i*-- 7#a7 0 in/all$ aft] #aihj & be=e #aiic1 7#b7 utilizes *lor(luoroc>bon refrig]ant1 & 7#c7 until replac$ by a new effici5t *ill]1 has rema9$ 9 op]ation & utiliz$ = cool+ a comm]cial build+4 7c7 ,new effici5t *ill] ,= purposes ( ?is section1 ! t]m new effici5t *ill] includes a wat]-cool$ *ill] :i* is c]tifi$ to meet effici5cy /&>ds effective on ,janu>y #a1 #bjae1 z def9$ 9 table #f4h 9 ,/&>d #ij4a-bjac ( ! ,am]ican ,society ( ,heat+1 ,refrig]at+1 & ,air ,condition+ ,eng9e]s4 7d7 ,tonnage d[nsiz+ ,= purposes ( ?is section1 ! t]m tonnage d[nsiz+ means ! am\nt by :i* ! tonnage rat+ ( ! ,,cfc *ill] exce$s ! tonnage rat+ ( ! new effici5t *ill]4 7e7 ,en]gy audit ,z a condition ( receiv+ a tax cr$it "u ?is section1 an en]gy audit %all be p]=m$ on ! build+ prior to in/allation ( ! new effici5t *ill]1 id5tify+ co/-effective en]gy-sav+ measures1 p>ticul>ly measures t c\ld contribute to *ill] d[nsiz+4 ,! audit %all satisfy crit]ia t %all be issu$ by ! ,secret>y ( ,en]gy4 7f7 ,prop]ty us$ by tax-,exempt entity ,9 ! case ( a ,,cfc *ill] replac$ by a new effici5t *ill] ! use ( :i* is describ$ 9 p>agraph 7#c7 or 7#d7 ( section #ej7;b71 ! p]son :o sold su* new effici5t *ill] to ! entity %all be treat$ z ! taxpay] t plac$ 9 s]vice ! new effici5t *ill] t replac$ ! ,,cfc *ill]1 b only if su* p]son cle>ly discloses to su* entity 9 a docum5t ! am\nt ( any cr$it all[able "u subsection 7a7 & ! p]son c]tifies to ! ,secret>y t ! p]son r$uc$ ! price ! entity paid = su* new effici5t *ill] by ! entire am\nt ( su* cr$it4 7g7 ,t]m9ation ,?is section %all n apply to replacem5ts made aft] ,decemb] #ca1 #bjag4 4 7b7 ,con=m+ am5dm5ts 7#a7 ,section #ch7;b71 z am5d$ by ?is title1 is am5d$ by /rik+ plus at ! end ( p>agraph 7#cf71 by /rik+ ! p]iod at ! end ( p>agraph 7#cg7 & ins]t+ 1 plus1 & by add+ at ! end ! foll[+ new p>agraph3 7#ch7 ! ,,cfc *ill] replacem5t cr$it det]m9$ "u section #de,t4 4 7#b7 ,! table ( sections = subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a1 z am5d$ by ?is title1 is am5d$ by add+ at ! end ! foll[+ new item3 ,sec4 #de,t4 ,,cfc *ill] replacem5t cr$it4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to replacem5ts made aft] ! date ( ! enactm5t ( ?is ,act4 #cjf4 ,qualify+ effici5t indu/rial process wat] use project cr$it 7a7 ,9 g5]al ,section #df is am5d$ by ins]t+ a comma at ! end ( p>agraph 7#d71 by /rik+ & at ! end ( p>agraph 7#e71 by /rik+ ! p]iod at ! end ( p>agraph 7#f7 & ins]t+ 1 &1 & by add+ at ! end ! foll[+ new p>agraph3 7#g7 ! qualify+ effici5t indu/rial process wat] use project cr$it4 4 7b7 ,am\nt ( cr$it ,subp>t ,e ( "p ,,iv ( sub*apt] ,a ( *apt] #a is am5d$ by ins]t+ aft] section #dh;,d ! foll[+ new section3 #dh;,e4 ,qualify+ effici5t indu/rial process wat] use project cr$it 7a7 ,9 g5]al 7#a7 ,all[ance ( cr$it ,= purposes ( section #df1 ! qualify+ effici5t indu/rial process wat] use project cr$it = any taxable ye> is an am\nt equal to ! applicable p]c5tage ( ! qualifi$ inve/m5t = su* taxable ye> ) respect to any qualify+ effici5t indu/rial process wat] use project ( ! taxpay]4 7#b7 ,applicable p]c5tage ,= purposes ( subsection 7a7-- 7,a7 ,9 g5]al ,! applicable p]c5tage is-- 7i7 #aj p]c5t 9 ! case ( a qualify+ effici5t indu/rial process wat] use project :i* a*ieves a #be p]c5t or great] 7b less ?an #ej p]c5t7 r$uction 9 wat] use = indu/rial purposes1 7ii7 #bj p]c5t 9 ! case ( a qualify+ effici5t indu/rial process wat] use project :i* a*ieves a #ej p]c5t or great] 7b less ?an #ge p]c5t7 r$uction 9 wat] use = indu/rial purposes1 & 7iii7 #cj p]c5t 9 ! case ( a qualify+ effici5t indu/rial process wat] use project :i* a*ieves a #ge p]c5t or great] r$uction 9 wat] use = indu/rial purposes4 7,b7 ,wat] use ,= purposes ( subp>agraph 7,a7-- 7i7 ,measurem5t ( r$uction 9 wat] use 7,i7 ,9 g5]al ,! taxpay] %all elect "o ( ! me?ods specifi$ 9 clause 7ii7 = measur+ ! r$uction 9 wat] use a*iev$ by a qualify+ effici5t indu/rial process wat] use project4 7,,ii7 ,irrevocable election ,an election "u subclause 7,i71 once made ) respect to a qualify+ effici5t indu/rial process wat] use project1 %all apply to ! taxable ye> = :i* made & all subsequ5t taxable ye>s1 & may n be revok$4 7,,iii7 ,project$ sav+s ,! cr$it "u subsection 7a7 may be claim$ on ! basis ( a r$uction 9 wat] use :i* is project$1 by a regi/]$ pr(essional eng9e] :o is n a relat$ p]son 7)9 ! mean+ ( section #add7;a77#c77;,a77 to ! taxpay] or ! in/all] ( eligible prop]ty1 to be a*iev$ by a qualify+ effici5t indu/rial process wat] use project4 ,su* projection1 if us$ z a basis = det]m9+ ! cr$it "u subsection 7a71 %all be includ$ ) ! return ( tax4 7ii7 ,me?ods specifi$ ,! me?ods specifi$ 9 ?is clause are-- 7,i7 a measurem5t ( ! p]c5tage r$uction 9 wat] use p] unit ( product manufactur$ by ! taxpay]1 & 7,,ii7 a measurem5t ( ! p]c5tage r$uction 9 wat] use p] p\nd ( product manufactur$ by ! taxpay]4 7b7 ,qualifi$ inve/m5t 7#a7 ,9 g5]al ,= purposes ( subsection 7a71 ! qualifi$ inve/m5t = any taxable ye> is ! basis ( eligible prop]ty plac$ 9 s]vice by ! taxpay] dur+ su* taxable ye> :i* is "p ( a qualify+ effici5t indu/rial process wat] use project4 7#b7 ,exceptions ,su* t]m %all n include any portion ( ! basis relat$ to-- 7,a7 p]mitt+1 7,b7 l& acquisition1 or 7,c7 infra/ructure n directly associat$ ) ! implem5tation ( ! te*nology or process improvem5ts ( ! qualify+ effici5t indu/rial process wat] use project4 7#c7 ,c]ta9 qualifi$ progress exp5ditures rules made applicable ,rules simil> to ! rules ( subsections 7c77#d7 & 7d7 ( section #df 7z 9 effect on ! day be=e ! enactm5t ( ! ,rev5ue ,reconciliation ,act ( #aiij7 %all apply = purposes ( ?is section4 7#d7 ,special rule = subsidiz$ en]gy f9anc+ ,rules simil> to ! rules ( section #dh7;a77#d7 7)\t reg>d to subp>agraph 7,d7 !re(7 %all apply = purposes ( ?is section4 7#e7 ,limitation ,! am\nt :i* is treat$ = all taxable ye>s ) respect to any qualify+ effici5t indu/rial process wat] use project ) respect to any site %all n exce$ #aj1jjj1jjj4 7c7 ,def9itions ,= purposes ( ?is section-- 7#a7 ,qualify+ effici5t indu/rial process wat] use project 7,a7 ,9 g5]al ,! t]m qualify+ effici5t indu/rial process wat] use project means1 ) respect to any site1 a project :i* retr(its or exp&s an exi/+ facility to implem5t te*nology or process improvem5ts :i* are design$ to r$uce wat] use = sy/ems t use any =m ( wat] 9 ! production ( goods 9 ! manufactur+ sector 7z def9$ 9 ,nor? ,am]ican ,indu/rial ,classification ,sy/em codes #ca1 #cb1 & #cc71 includ+ any sy/em t uses wat] = heat+1 cool+1 or en]gy production = ! production ( goods 9 ! trade or bus9ess ( manufactur+ 7o!r ?an extraction ( fossil fuels74 ,su* t]m %all n include a project :i* alt]s an exi/+ facility to *ange ! type ( goods produc$ by su* facility4 7,b7 ,sy/ems ,= purposes ( subp>agraph 7,a71 ! t]m sy/em does n include any sy/em :i* does n encompass #a or m complete processes4 7#b7 ,eligible prop]ty ,! t]m eligible prop]ty means any prop]ty-- 7,a7 :i* is "p ( a qualify+ effici5t indu/rial process wat] use project & :i* is necess>y = ! r$uction 9 wat] use describ$ 9 p>agraph 7#a71 7,b7 7i7 ! con/ruction1 recon/ruction1 or erection ( :i* is complet$ by ! taxpay]1 or 7ii7 :i* is acquir$ by ! taxpay] if ! orig9al use ( su* prop]ty comm5ces ) ! taxpay]1 & 7,c7 ) respect to :i* depreciation 7or amortization 9 lieu ( depreciation7 is all[able4 7#c7 ,wat] use 7,a7 ,9 g5]al ,! t]m wat] use means all wat] tak5 = use at ! site directly f gr\nd & surface wat] s\rces toge!r ) any wat] suppli$ to ! site by a regulat$ wat] sy/em4 7,b7 ,regulat$ wat] sy/em ,! t]m regulat$ wat] sy/em means a sy/em t supplies wat] t has be5 treat$ to potable /&>ds4 7d7 ,t]m9ation ,?is section %all n apply to p]iods aft] ,decemb] #ca1 #bjag1 "u rules simil> to ! rules ( section #dh7m7 7z 9 effect on ! day be=e ! date ( ! enactm5t ( ! ,rev5ue ,reconciliation ,act ( #aiij74 4 7c7 ,con=m+ am5dm5ts 7#a7 ,section #di7;a77#a77;,c7 is am5d$ by /rik+ & at ! end ( clause 7v71 by /rik+ ! p]iod at ! end ( clause 7vi7 & ins]t+ 1 &1 & by add+ at ! end ! foll[+ new clause3 7vii7 ! basis ( any prop]ty :i* is "p ( a qualify+ effici5t indu/rial use wat] project "u section #dh;,e4 4 7#b7 ,! table ( sections = subp>t ,e ( "p ,,iv ( sub*apt] ,a ( *apt] #a is am5d$ by ins]t+ aft] ! item relat+ to section #dh;,d ! foll[+ new item3 ,sec4 #dh;,e4 ,qualify+ effici5t indu/rial process wat] use project cr$it4 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to p]iods aft] ! date ( ! enactm5t ( ?is ,act1 "u rules simil> to ! rules ( section #dh7m7 ( ! ,int]nal ,rev5ue ,code ( #aihf 7z 9 effect on ! day be=e ! date ( ! enactm5t ( ! ,rev5ue ,reconciliation ,act ( #aiij74