,,ii  #aag? ,,congress  #b;d ,session   
,s4 #daci  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,may #d1 #bjbb,ms4     
,klobu*> 7= h]self1 ,ms4 ,smi?1 ,mr4    
,hick5loop]1 ,mr4 ,:iteh\se1 ,mr4       
,leahy1 ,mr4 ,m]kley1 & ,mr4 ,book]7    
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to e/abli% a tax  
cr$it = manufactur]s ( high-effici5cy   
heat pumps & heat pump wat] heat]s4  #a4
 ,%ort title ,?is ,act may be cit$ z !  
,heat+ ,effici5cy & ,af=dability ?r\gh  
,tax ,relief ,act or ! ,,heatr ,act4    
#b4 ,en]gy effici5t prop]ty cr$it  7a7  
,9 g5]al ,subp>t ,d ( "p ,,iv ( sub*apt]
 ,a ( *apt] #a ( ! ,int]nal ,rev5ue     
,code ( #aihf is am5d$ by ins]t+ aft]   
section #de,l ! foll[+3  #de,m4 ,en]gy  
effici5t heat pump cr$it  7a7           
,e/abli%m5t ( cr$it  7#a7 ,9 g5]al ,=   
purposes ( section #ch1 ! en]gy effici5t
 heat pump cr$it det]m9$ "u ?is section 
= any taxable ye> is an am\nt equal to !

 sum ( ! cr$it am\nts det]m9$ "u        
p>agraph 7#b7 = ea* type ( qualifi$     
en]gy effici5t heat pump produc$ by !   
taxpay] dur+ ! cal5d> ye> end+ ) or )9 !
 taxable ye>4  7#b7 ,cr$it am\nts ,!    
cr$it am\nt det]m9$ = any type (        
qualifi$ en]gy effici5t heat pump is--  
7,a7 ! applicable am\nt det]m9$ "u      
subsection 7b7 ) respect to su* type1   
multipli$ by  7,b7 ! eligible production
 = su* type1 z det]m9$ "u subsection    
7c74  7b7 ,applicable am\nt ,= purposes 
( subsection 7a7 & subject to           
subsections 7f7 & 7h77#d71 ! applicable 
am\nt %all be det]m9$ z foll[s3 7#a7    
,heat pump wat] heat]s  7,a7 ,consum]   
heat pump wat] heat]s ,9 ! case ( a     
consum] heat pump wat] heat] :i* meets !
 requirem5ts ( ! ,en]gy ,/> ,wat] ,heat]
 program :i* are 9 effect at ! "t t su* 
wat] heat] is produc$ by ! taxpay]1 !   
applicable am\nt %all be-- 7i7 9 ! case 
( a wat] heat] ) a volume ( less ?an #ee
 gallons1 #fjj1 or  7ii7 9 ! case ( a   
wat] heat] ) a volume ( n less ?an #ee  

gallons1 #hjj4  7,b7 ,comm]cial heat    
pump wat] heat]s ,9 ! case ( a comm]cial
 heat pump wat] heat] :i* meets !       
requirem5ts ( ! ,en]gy ,/> ,comm]cial   
,wat] ,heat] program :i* are 9 effect at
 ! "t t su* wat] heat] is produc$ by !  
taxpay]1 ! applicable am\nt %all be !   
am\nt equal to ! product (-- 7i7 ! heat+
 capacity ( su* wat] heat]1 express$ 9  
,btus p] h\r1 multipli$ by  7ii7 #b4d   
c5ts4  7#b7 ,heat pumps  7,a7 ,consum]  
unit>y heat pumps  7i7 ,9 g5]al ,9 !    
case ( a consum] unit>y heat pump1 !    
applicable am\nt %all be-- 7,i7 9 ! case
 ( a heat pump :i* satisfies !          
applicable requirem5t "u clause 7ii7--  
7aa7 9 ! case ( a heat pump :i* is a    
duct$ sy/em ) a heat+ capacity ( n less 
?an #bb1jjj ,btus p] h\r & :i* satisfies
 ! ,en]gy ,/> ,en]gy-,effici5t ,crit]ia 
= ,c]tifi$ ,resid5tial ,cold ,climate   
,heat ,pumps or ! ,en]gy ,/>            
,en]gy-,effici5t ,crit]ia = ,geo!rmal   
,heat ,pumps :i* are 9 effect at ! "t t 
su* heat pump is produc$ by ! taxpay]1  

#a1jjj1  7bb7 9 ! case ( an electric    
heat pump :i* is n describ$ 9 item 7aa7 
& is produc$ dur+ any cal5d> ye> beg9n+ 
aft] ,decemb] #ca1 #bjbc1 by a taxpay]  
:i* has n produc$ any consum] c5tral air
 condition] units dur+ su* cal5d> ye>1  
#fjj1 or  7cc7 9 ! case ( a heat pump   
:i* is n describ$ 9 item 7aa7 or 7bb71  
#djj1 &  7,,ii7 subject to clause 7iii71
 9 ! case ( a heat pump :i* does n      
satisfy ! applicable requirem5t "u      
clause 7ii7 & is produc$ dur+ any cal5d>
 ye> beg9n+ aft] ,decemb] #ca1 #bjbc1 by
 a taxpay] :i* has n produc$ any consum]
 c5tral air condition] units dur+ su*   
cal5d> ye>1 #fjj4  7ii7 ,additional     
,requirem5t ,! requirem5t describ$ 9 ?is
 clause is ! ,en]gy ,/> ,c5tral ,air    
,condition] & ,air ,s\rce ,heat ,pump   
,specification :i* is 9 effect at ! "t t
 ! heat pump is produc$ by ! taxpay]4   
7iii7 ,limitation ,= purposes ( clause  
7i77,,ii71 if ! total numb] ( heat pumps
 describ$ 9 su* clause :i* are produc$  
by ! taxpay] dur+ any cal5d> ye> beg9n+ 

aft] ,decemb] #ca1 #bjbc1 exce$s ! numb]
 ( heat pumps describ$ 9 clause         
7i77,i77bb7 :i* are produc$ by ! taxpay]
 dur+ su* cal5d> ye>1 clause 7i77,,ii7  
%all n apply ) respect to ! am\nt ( su* 
excess4  7,b7 ,comm]cial heat pumps  7i7
 ,9 g5]al ,9 ! case ( a comm]cial heat  
pump :i* satisfies ! applicable         
requirem5ts "u clause 7ii71 ! applicable
 am\nt %all be ! am\nt equal to !       
product (-- 7,i7 ! heat+ capacity ( su* 
heat pump1 express$ 9 ,btus p] h\r1     
multipli$ by  7,,ii7 #b4d c5ts4  7ii7   
,requirem5ts ,! requirem5t describ$ 9   
?is clause is-- 7,i7 9 ! case ( an      
air-s\rce unit>y heat pump :i* has a    
cool+ capacity ( n great] ?an #bdj1jjj  
,btus p] h\r1 su* heat pump satisfies-- 
7aa7 ! requirem5ts ( ! ,en]gy ,/> ,light
 ,comm]cial ,,hvac program :i* are 9    
effect at ! "t t su* heat pump is       
produc$ by ! taxpay]1 or  7bb7 ! highe/ 
effici5cy ti] 7n includ+ any advanc$    
ti]7 e/abli%$ by ! ,consortium = ,en]gy 
,effici5cy :i* is 9 effect at ! "t t su*

 heat pump is produc$ by ! taxpay]1 or  
7,,ii7 9 ! case ( any heat pump :i* is n
 describ$ 9 subclause 7,i71 su* heat    
pump exce$s ! m9imum effici5cy /&>ds "u 
,ref]5ce ,/&>d #ij4a by n less ?an #aj  
p]c5t1 z det]m9$ "u te/+ conditions     
specifi$ 9 ,ref]5ce ,/&>d #ij4a4  7iii7 
,heat+ capacity ,= purposes ( clause    
7i77,i71 9 ! case ( an air-s\rce heat   
pump1 ! heat+ capacity ( su* heat pump  
%all be det]m9$ us+ an ambi5t temp]ature
 ( #ag degrees ,fahr5heit4  7,c7        
,indu/rial heat pump ,9 ! case ( an     
indu/rial heat pump1 ! applicable am\nt 
%all be ! am\nt equal to ! product (--  
7i7 ! heat+ capacity ( su* heat pump1   
express$ 9 ,btus p] h\r1 multipli$ by   
7ii7 7,i7 9 ! case ( a heat pump ) a    
heat+ capacity ( n great] ?an #b1djj1jjj
 ,btus p] h\r1 #c4f c5ts1 or  7,,ii7 9 !
 case ( a heat pump ) a heat+ capacity  
great] ?an #b1djj1jjj ,btus p] h\r & a  
coeffici5t ( p]=mance ( n less ?an #b4j1
 #a4h c5ts4  7c7 ,eligible production   
,subject to subsection 7h77#d71 !       

eligible production 9 a cal5d> ye> )    
respect to ea* type ( qualifi$ en]gy    
effici5t heat pump is ! excess (-- 7#a7 
! numb] ( heat pumps ( su* type :i* are 
produc$ by ! taxpay] 9 ! ,unit$ ,/ates  
dur+ su* cal5d> ye>1 ov]  7#b7 ! av]age 
numb] ( heat pumps ( su* type :i* 7     
produc$ by ! taxpay] 7or any pr$ecessor7
 9 ! ,unit$ ,/ates dur+ ! prec$+        
#c-;cal5d> ye> p]iod4  7d7 ,types (     
qualifi$ en]gy effici5t heat pumps ,=   
purposes ( ?is section1 ! types (       
qualifi$ en]gy effici5t heat pumps are--
 7#a7 consum] heat pump wat] heat]s     
describ$ 9 subp>agraph 7,a7 ( subsection
 7b77#a71  7#b7 comm]cial heat pump wat]
 heat]s describ$ 9 subp>agraph 7,b7 (   
su* subsection1  7#c7 consum] unit>y    
heat pumps describ$ 9 subp>agraph       
7,a77i7 ( subsection 7b77#b71  7#d7     
comm]cial heat pumps describ$ 9         
subp>agraph 7,b77i7 ( su* subsection1 & 
7#e7 indu/rial heat pumps describ$ 9    
subp>agraph 7,c7 ( su* subsection4  7e7 
,limitations  7#a7 ,aggregate cr$it     

am\nt all[$ ,! aggregate am\nt ( cr$it  
all[$ "u subsection 7a7 ) respect to a  
taxpay] = any taxable ye> %all n exce$  
an am\nt equal to ! sum (-- 7,a7 )      
respect to any consum] unit>y heat pumps
 describ$ 9 subsection                  
7b77#b77;,a77i77,i77bb71 #cjj1jjj1jjj   
r$uc$ by ! am\nt ( ! cr$it all[$ "u     
subsection 7a7 to ! taxpay] 7or any     
pr$ecessor7 ) respect to su* heat pumps 
= all prior taxable ye>s beg9n+ aft]    
,decemb] #ca1 #bjbc1 plus  7,b7 )       
respect to any qualifi$ en]gy effici5t  
heat pumps 7includ+ any consum] unit>y  
heat pumps describ$ 9 subsection        
7b77#b77;,a77i77,i77bb7 :i* are n       
includ$ "u subp>agraph 7,a771           
#djj1jjj1jjj r$uc$ by ! am\nt ( ! cr$it 
all[$ "u subsection 7a7 to ! taxpay] 7or
 any pr$ecessor7 ) respect to su* heat  
pumps = all prior taxable ye>s beg9n+   
aft] ,decemb] #ca1 #bjba4  7#b7         
,limitation bas$ on gross receipts ,!   
cr$it all[$ "u subsection 7a7 ) respect 
to a taxpay] = ! taxable ye> %all n     

exce$ an am\nt equal to #d p]c5t ( !    
av]age annual gross receipts ( ! taxpay]
 = ! #c taxable ye>s prec$+ ! taxable   
ye> 9 :i* ! cr$it is det]m9$4  7#c7     
,gross receipts ,= purposes ( ?is       
subsection1 ! rules ( p>agraphs 7#b7 &  
7#c7 ( section #ddh7;c7 %all apply4  7f7
 ,adju/m5t ( en]gy effici5cy crit]ia &  
te/ proc$ures  7#a7 ,adju/m5t ( en]gy   
effici5cy crit]ia = indu/rial heat pumps
 ,n lat] ?an ,decemb] #ca1 #bjbc1 & e #b
 ye>s !reaft]1 ! ,secret>y1 9           
consultation ) ! ,secret>y ( ,en]gy1    
%all-- 7,a7 review ! requirem5t )       
respect to coeffici5t ( p]=mance =      
indu/rial heat pumps "u subsection      
7b77#b77;,c77ii77,,ii71 &  7,b7 z       
necess>y1 prescribe regulations or o!r  
guidance :i* revise any su* requirem5t  
to ensure t-- 7i7 ! cr$it all[$ "u      
subsection 7a7 only applies to indu/rial
 heat pumps :i* are ! mo/ effici5t      
indu/rial heat pumps t are comm]cially  
available1 &  7ii7 n less ?an #c        
manufactur]s produce su* heat pumps     

across a range ( product heat+          
capacities4  7#b7 ,te/ me?ods &         
proc$ures  7,a7 ,indu/rial heat pumps ,n
 lat] ?an ! date :i* is #ab mon?s aft] !
 date ( enactm5t ( ?is ,act1 ! ,secret>y
 ( ,en]gy %all prescribe regulations or 
o!r guidance :i* e/abli% te/ me?ods &   
proc$ures to det]m9e ! coeffici5t (     
p]=mance = indu/rial heat pumps4  7,b7  
,,ansi & ,,iso te/ me?ods & proc$ures ,=
 purposes ( develop+ ! te/ me?ods &     
proc$ures describ$ 9 subp>agraph 7,a71 !
 ,secret>y ( ,en]gy %all exp& ^u any    
relevant te/ me?ods & proc$ures e/abli%$
 by ! ,am]ican ,national ,/&>ds         
,in/itute & ! ,int]national             
,organization = ,/&>dization :i* are 9  
effect z ( ! date ( enactm5t ( ! ,heat+ 
,effici5cy & ,af=dability ?r\gh ,tax    
,relief ,act4  7g7 ,def9itions ,9 ?is   
section-- 7#a7 ,btus ,! t]m ,btus means 
,briti% !rmal units4  7#b7 ,coeffici5t (
 p]=mance  7,a7 ,9 g5]al ,! t]m         
coeffici5t ( p]=mance means ! ratio (   
heat output to en]gy input4  7,b7       

,default ,until su* "t z ! ,secret>y (  
,en]gy issues regulations or guidance "u
 subsection 7f77#b71 9 ! case ( any     
indu/rial heat pump1 any det]m9ation )  
respect to coeffici5t ( p]=mance =      
purposes ( ?is section %all be det]m9$  
us+ any te/ me?ods or proc$ures employ$ 
by ! taxpay] :i* produc$ su* heat pump1 
provid$ t su* taxpay] makes any te/     
conditions & assumptions ) respect to   
su* me?ods or proc$ures publicly        
available4  7#c7 ,comm]cial heat pump ,!
 t]m comm]cial heat pump means a heat   
pump :i*-- 7,a7 is design$ to provide   
space heat+ & cool+1 &  7,b7 is n       
describ$ 9 subp>agraph 7,b7 ( p>agraph  
7#f74  7#d7 ,comm]cial heat pump wat]   
heat] ,! t]m comm]cial heat pump wat]   
heat] means a wat] heat] :i* uses a heat
 pump to heat wat] & is n describ$ 9    
subp>agraph 7,a7 or 7,b7 ( p>agraph     
7#e74  7#e7 ,consum] heat pump wat]     
heat] ,! t]m consum] heat pump wat]     
heat] means a wat] heat] :i* uses a heat
 pump to heat wat] & has a maximum      

curr5t rat+ ( #bd amp]es at a voltage n 
great] ?an #bej volts4  7#f7 ,consum]   
unit>y heat pump ,! t]m consum] unit>y  
heat pump means a heat pump :i*-- 7,a7  
is design$ to provide space heat+ &     
cool+1 &  7,b7 has a cool+ capacity ( n 
great] ?an #fe1jjj ,btus p] h\r4  7#g7  
,indu/rial heat pump ,! t]m indu/rial   
heat pump means a heat pump :i*-- 7,a7  
upgrades indu/rial wa/e heat to a high] 
temp]ature1 &  7,b7 su* heat is produc$ 
& suppli$ to an indu/rial facility 9 a  
mann] :i* is m en]gy effici5t ?an       
conv5tional heat+ me?ods1 su* z a /eam  
or electric resi/ance boil]4  7#h7      
,qualifi$ en]gy effici5t heat pump ,!   
t]m qualifi$ en]gy effici5t heat pump   
means-- 7,a7 any consum] heat pump wat] 
heat] describ$ 9 subp>agraph 7,a7 (     
subsection 7b77#a71  7,b7 any comm]cial 
heat pump wat] heat] describ$ 9         
subp>agraph 7,b7 ( su* subsection1  7,c7
 any consum] unit>y heat pump describ$ 9
 subp>agraph 7,a7 ( subsection 7b77#b71 
7,d7 any comm]cial heat pump describ$ 9 

subp>agraph 7,b7 ( su* subsection1 &    
7,e7 any indu/rial heat pump describ$ 9 
subp>agraph 7,c7 ( su* subsection4  7#i7
 ,produc$ ,! t]m produc$ includes       
manufactur$ or assembl$4  7#aj7 ,ref]5ce
 ,/&>d #ij4a ,! t]m ,ref]5ce ,/&>d #ij4a
 means1 ) respect to any heat pump1 !   
mo/ rec5t ,/&>d #ij4a publi%$ by !      
,am]ican ,society ( ,heat+1 ,refrig]at+1
 & ,air ,condition+ ,eng9e]s :i* is 9   
effect at ! "t t su* heat pump is       
produc$ by ! taxpay]4  7h7 ,special     
rules ,= purposes ( ?is section-- 7#a7  
,9 g5]al ,rules simil> to ! rules (     
subsections 7c71 7d71 & 7e7 ( section   
#eb %all apply4  7#b7 ,controll$ gr\p   
7,a7 ,9 g5]al ,all p]sons treat$ z a    
s+le employ] "u subsection 7a7 or 7b7 ( 
section #eb or subsection 7m7 or 7o7 (  
section #dad %all be treat$ z a s+le    
produc]4  7,b7 ,inclusion ( =eign       
corporations ,= purposes ( subp>agraph  
7,a71 9 apply+ subsections 7a7 & 7b7 (  
section #eb to ?is section1 section     
#aefc %all be appli$ )\t reg>d to       

subsection 7b77#b77;,c7 !re(4  7#c7     
,v]ification ,no am\nt %all be all[$ z a
 cr$it "u subsection 7a7 ) respect to   
:i* ! taxpay] has n submitt$ su*        
in=mation or c]tification z ! ,secret>y1
 9 consultation ) ! ,secret>y ( ,en]gy1 
det]m9es necess>y4  7#d7 #aj p]c5t      
increase 9 applicable am\nt = heat pumps
 produc$ 9 union facilities ,9 ! case ( 
any qualifi$ en]gy effici5t heat pump   
:i* is produc$ 9 a facility op]at+ "u a 
collective b>ga9+ agreem5t negotiat$ by 
an employee organization 7z def9$ 9     
section #dab7;c77#d771 det]m9$ 9 a mann]
 consi/5t ) section #ggja7;a77#df71 =   
purposes ( det]m9+ ! cr$it am\nt "u     
subsection 7a77#b7 ) respect to su* heat
 pump1 ! applicable am\nt det]m9$ "u    
subsection 7b7 ) respect to su* heat    
pump %all be increas$ by an am\nt equal 
to #aj p]c5t ( ! applicable am\nt       
o!rwise 9 effect "u su* subsection4  7i7
 ,election = direct paym5t  7#a7 ,9     
g5]al ,9 ! case ( a taxpay] mak+ an     
election 7at su* "t & 9 su* mann] z !   

,secret>y may provide7 "u ?is subsection
 ) respect to any cr$it det]m9$ "u      
subsection 7a7 ) respect to su* taxpay]1
 su* taxpay] %all be treat$ z mak+ a    
paym5t aga9/ ! tax impos$ by subtitle ,a
 7= ! taxable ye> ) respect to :i* su*  
cr$it 0 det]m9$7 equal to ! am\nt ( su* 
cr$it4  7#b7 ,special rules ,= purposes 
( ?is subsection-- 7,a7 ,application to 
p>tn]%ips & ,s corporations  7i7 ,9     
g5]al ,9 ! case ( any cr$it det]m9$ "u  
subsection 7a7 ) respect to any prop]ty 
produc$ by a p>tn]%ip or ,s corporation1
 if su* p>tn]%ip or ,s corporation makes
 an election "u p>agraph 7#a7 79 su*    
mann] z ! ,secret>y may provide7 )      
respect to su* cr$it-- 7,i7 ! ,secret>y 
%all make a paym5t to su* p>tn]%ip or ,s
 corporation equal to ! am\nt ( su*     
cr$it1  7,,ii7 p>agraph 7#d7 %all be    
appli$ ) respect to su* cr$it be=e      
det]m9+ any p>tn]'s di/ributive %>e1 or 
%>ehold]'s pro rata %>e1 ( su* cr$it1   
7,,iii7 any am\nt ) respect to :i* !    
election 9 p>agraph 7#a7 is made %all be

 treat$ z tax exempt income = purposes (
 sections #gje & #acff1 &  7,,iv7 a     
p>tn]'s di/ributive %>e ( su* tax exempt
 income %all be bas$ on su* p>tn]'s     
di/ributive %>e ( su* cr$it = ea*       
taxable ye>4  7ii7 ,coord9ation )       
application at p>tn] or %>ehold] level  
,9 ! case ( any p>tn]%ip or ,s          
corporation1 p>agraph 7#a7 %all be      
appli$ at ! p>tn] or %>ehold] level aft]
 application ( clause 7i77,,ii74  7,b7  
,elections ,any election "u p>agraph    
7#a7 %all be made n lat] ?an ! due date 
7includ+ ext5sions ( "t7 = ! return (   
tax = ! taxable ye> = :i* ! election is 
made4 ,any su* election1 once made1 %all
 be irrevocable4 ,any election "u       
p>agraph 7#a7 %all apply ) respect to   
any cr$it = ! taxable ye> = :i* !       
election is made4  7,c7 ,tim+ ,! paym5t 
describ$ 9 p>agraph 7#a7 %all be treat$ 
z made on ! lat] ( ! due date 7det]m9$  
)\t reg>d to ext5sions7 ( ! return ( tax
 = ! taxable ye> or ! date on :i* su*   
return is fil$4  7,d7 ,treatm5t (       

paym5ts to p>tn]%ips & ,s corporations  
,= purposes ( section #acbd ( title #ca1
 ,unit$ ,/ates ,code1 ! paym5ts "u      
subp>agraph 7,a77i77,i7 %all be treat$ 9
 ! same mann] z a refund due f a cr$it  
provision ref]r$ to 9 subsection 7b77#b7
 ( su* section4  7,e7 ,additional       
in=mation ,z a condition (1 & prior to1 
a paym5t "u ?is subsection1 ! ,secret>y 
may require su* in=mation or regi/ration
 z ! ,secret>y deems necess>y or        
appropriate = purposes ( prev5t+        
duplication1 fraud1 improp] paym5ts1 or 
excessive paym5ts "u ?is subsection4    
7,f7 ,excessive paym5t  7i7 ,9 g5]al ,9 
! case ( a paym5t made to a taxpay] "u  
?is p>agraph or any am\nt treat$ z a    
paym5t :i* is made by ! taxpay] "u      
p>agraph 7#a7 :i* ! ,secret>y det]m9es  
con/itutes an excessive paym5t1 ! tax   
impos$ on su* taxpay] by *apt] #a = !   
taxable ye> 9 :i* su* det]m9ation is    
made %all be increas$ by an am\nt equal 
to ! sum (-- 7,i7 ! am\nt ( su*         
excessive paym5t1 plus  7,,ii7 an am\nt 

equal to #bj p]c5t ( su* excessive      
paym5t4  7ii7 ,reasonable cause ,clause 
7i77,,ii7 %all n apply if ! taxpay]     
demon/rates to ! satisfaction ( !       
,secret>y t ! excessive paym5t result$ f
 reasonable cause4  7iii7 ,excessive    
paym5t def9$ ,= purposes ( ?is          
subp>agraph1 ! t]m excessive paym5t     
means1 ) respect to an election is made 
"u ?is subsection = any taxable ye>1 an 
am\nt equal to ! excess (-- 7,i7 ! am\nt
 ( ! paym5t made to ! taxpay] "u ?is    
p>agraph or any am\nt treat$ z a paym5t 
:i* is made by ! taxpay] "u p>agraph    
7#a7 = su* taxable ye>1 ov]  7,,ii7 !   
am\nt ( ! cr$it :i*1 )\t application (  
?is p>agraph1 w\ld be o!rwise all[able  
7det]m9$ )\t reg>d to section #ch7;c77  
"u subsection 7a7 = su* taxable ye>4    
7#c7 ,d5ial ( d\ble b5efit ,9 ! case ( a
 taxpay] mak+ an election "u ?is        
subsection ) respect to ! cr$it all[$ "u
 subsection 7a71 su* cr$it %all be r$uc$
 to z]o & %all1 = any o!r purposes "u   
?is title1 be deem$ to h be5 all[$ to ! 

taxpay] = su* taxable ye>4  7#d7 ,mirror
 code possessions ,9 ! case ( any       
possession ( ! ,unit$ ,/ates ) a mirror 
code tax sy/em 7z def9$ 9 section       
#bd7k771 ?is subsection %all n be treat$
 z "p ( ! income tax laws ( ! ,unit$    
,/ates = purposes ( det]m9+ ! income tax
 law ( su* possession unless su*        
possession elects to h ?is subsection be
 s treat$4  7#e7 ,regulations ,!        
,secret>y %all issue su* regulations or 
o!r guidance z may be necess>y or       
appropriate to c>ry out ! purposes ( ?is
 subsection1 includ+-- 7,a7 regulations 
or o!r guidance provid+ rules = det]m9+ 
a p>tn]'s di/ributive %>e ( ! tax exempt
 income describ$ 9 p>agraph             
7#b77;,a77i77,,iii71 &  7,b7 guidance to
 ensure t ! am\nt ( ! paym5t or deem$   
paym5t made "u ?is subsection is        
comm5surate ) ! am\nt ( ! cr$it t w\ld  
be o!rwise all[able 7det]m9$ )\t reg>d  
to section #ch7;c774  7j7 ,t]m9ation    
,?is section %all n apply ) respect to  
any prop]ty produc$ aft] ,decemb] #ca1  

#bjca4  4  7b7 ,con=m+ am5dm5ts  7#a7   
,section #ch7;b7 ( ! ,int]nal ,rev5ue   
,code ( #aihf is am5d$-- 7,a7 by        
r$esignat+ p>agraphs 7#bf7 ?r\gh 7#cc7 z
 p>agraphs 7#bg7 ?r\gh 7#cd71           
respectively1 &  7,b7 by ins]t+ aft]    
p>agraph 7#be7 ! foll[+3  7#bf7 ! en]gy 
effici5t heat pump cr$it det]m9$ "u     
section #de,m1  4  7#b7 ,! table (      
sections = subp>t ,d ( "p ,,iv (        
sub*apt] ,a ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 aft] ! item relat+ to section #de,l !  
foll[+ item3  ,sec4 #de,m4 ,en]gy       
effici5t heat pump cr$it4  4  7c7       
,effective date ,! am5dm5ts made by ?is 
section %all apply to prop]ty produc$   
aft] ! date ( enactm5t ( ?is ,act4