Bill Summary
The "All-Electric Homes Act of 2019" is a proposed bill that aims to amend the Internal Revenue Code of 1986 in order to provide a tax credit for the construction of new all-electric homes. This means that eligible contractors who construct and sell all-electric homes will receive a tax credit for each home sold. The amount of the credit varies based on the type of home (single-family or multi-family) and the total number of residential units. The bill defines a qualified new all-electric home as a dwelling unit located in the United States, constructed after the date of enactment, powered solely by electricity, without a gas line or service, and meeting the highest energy efficiency standards. The credit will also adjust the basis of the property for tax purposes and will not overlap with other investment credits. The bill is set to take effect for homes acquired after December 31, 2019.
Possible Impacts
1. Home builders may be encouraged to focus on constructing all-electric homes in order to take advantage of the tax credit, leading to an increase in the availability of these types of homes for potential buyers.
2. Homeowners may be incentivized to purchase all-electric homes in order to receive the tax credit, potentially leading to a shift towards more energy-efficient and environmentally-friendly homes.
3. The highest energy efficiency standards, as determined by the Secretary, may become the new standard for all new homes in the United States, potentially resulting in higher construction costs and prices for new homes.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 1197 Introduced in Senate (IS)]
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116th CONGRESS
1st Session
S. 1197
To amend the Internal Revenue Code of 1986 to establish a tax credit
for construction of new all-electric homes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 11, 2019
Mr. Markey introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to establish a tax credit
for construction of new all-electric homes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``All-Electric Homes Act of 2019''.
SEC. 2. CREDIT FOR NEW ALL-ELECTRIC HOMES.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45T. NEW ALL-ELECTRIC HOME CREDIT.
``(a) Allowance of Credit.--
``(1) In general.--For purposes of section 38, in the case
of an eligible contractor, the new all-electric home credit for
the taxable year is the applicable amount for each qualified
new all-electric home which is--
``(A) constructed by the eligible contractor, and
``(B) acquired by a person from such eligible
contractor for use as a residence during the taxable
year.
``(2) Applicable amount.--For purposes of paragraph (1),
the applicable amount is an amount equal to--
``(A) in the case of a qualified new all-electric
home which is a single-family residence, $5,000, and
``(B) in the case of a qualified new all-electric
home which is a multi-family residence, an amount equal
to the product of--
``(i) $1750, multiplied by
``(ii) the total number of residential
units.
``(b) Definitions.--For purposes of this section--
``(1) Eligible contractor.--The term `eligible contractor'
means the person who constructed the qualified new all-electric
home.
``(2) Qualified new all-electric home.--The term `qualified
new all-electric home' means a dwelling unit--
``(A) located in the United States,
``(B) the construction of which is substantially
completed after the date of the enactment of this
section,
``(C) for which all appliances and mechanical
systems are powered solely by electricity,
``(D) which does not have any gas line or gas
service to such dwelling unit, and
``(E) which meets the highest energy efficiency
standards for the United States (as determined by the
Secretary, in consultation with the Secretary of Energy
and the Administrator of the Environmental Protection
Agency) for purposes of the building envelope and any
appliances and mechanical systems within the dwelling
unit.
``(3) Construction.--The term `construction' includes
substantial reconstruction and rehabilitation.
``(4) Acquire.--The term `acquire' includes purchase.
``(c) Basis Adjustment.--For purposes of this subtitle, if a credit
is allowed under this section in connection with any expenditure for
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 determined.
``(d) Coordination With Investment Credit.--For purposes of this
section, expenditures taken into account under section 47 or 48(a)
shall not be taken into account under this section.''.
(b) Conforming Amendments.--
(1) Section 38(b) of the Internal Revenue Code of 1986 is
amended by striking ``plus'' at the end of paragraph (31), by
striking the period at the end of paragraph (32) and inserting
``, plus'', and by adding at the end the following new
paragraph:
``(33) the new all-electric home credit determined under
section 45T(a).''.
(2) Section 196(c) of such Code is amended by striking
``and'' at the end of paragraph (13), by striking the period at
the end of paragraph (14) and inserting ``, and'', and by
adding at the end the following new paragraph:
``(15) the new all-electric home credit determined under
section 45T(a).''.
(3) Section 1016(a) of such Code is amended by striking
``and'' at the end of paragraph (37), by striking the period at
the end of paragraph (38) and inserting ``, and'', and by
inserting after paragraph (38) the following new paragraph:
``(39) to the extent provided in section 45T(c), in the
case of amounts with respect to which a credit has been allowed
under section 45T.''.
(4) The table of sections for subpart D of part IV of
subchapter A of chapter 1 of such Code is amended by inserting
after the item relating to section 45S the following new item:
``45T. New All-Electric Home Credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to qualified new all-electric homes acquired after December 31,
2019, in taxable years ending after such date.
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