article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Home Energy Savings Incentives Act of 2005''. SEC. 2. MODIFICATION OF CREDIT FOR CERTAIN NONBUSINESS ENERGY PROPERTY. (a) In General.--Section 25C of the Internal Revenue Code of 1986 is amended to read as follows: ``SEC. 25C. NONBUSINESS ENERGY PROPERTY. ``(a) Allowance of Credit.--In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of-- ``(1) $10 for each therm of certified natural gas savings attributable to qualified energy efficiency expenditures made during the taxable year, and ``(2) $0.65 for each kilowatt hour of certified electricity savings attributable to qualified energy efficiency expenditures made during the taxable year. ``(b) Lifetime Limitation.--The credit allowed under this section with respect to any taxpayer for any taxable year shall not exceed the excess (if any) of $5,000 over the aggregate credits allowed under this section with respect to such taxpayer for all prior taxable years. ``(c) Qualified Energy Efficiency Expenditures.--For purposes of this section-- ``(1) In general.--The term `qualified energy efficiency expenditures' means expenditures made by the taxpayer, after consultation with a qualified individual described in subsection (d)(2)(C), for the improvement of a dwelling unit of the taxpayer located in the United States and used by the taxpayer as the taxpayer's principal residence. ``(2) No double benefit for certain expenditures.--The term `qualified energy efficiency expenditures' shall not include any expenditure for which a deduction or credit is otherwise allowed under this chapter. ``(3) Principal residence.-- ``(A) In general.--The term `principal residence' has the same meaning as when used in section 121, except that-- ``(i) no ownership requirement shall be imposed, and ``(ii) the period for which a building is treated as used as a principal residence shall also include the 60-day period ending on the 1st day on which it would (but for this subparagraph) first be treated as used as a principal residence. ``(B) Manufactured housing.--The term `residence' shall include a dwelling unit which is a manufactured home conforming to Federal Manufactured Home Construction and Safety Standards (24 C.F.R. 3280). ``(d) Certified Natural Gas Savings; Certified Electricity Savings.-- ``(1) In general.-- ``(A) Certified natural gas savings.--The term `certified natural gas savings' means, with respect to any taxable year, the amount, measured in therms on an average annual basis, which is equal to the excess of-- ``(i) 85 percent of the amount of natural gas which would be consumed with respect to the dwelling unit of the taxpayer if the qualified energy efficiency expenditures with respect to such taxable year were not made, as certified in accordance with paragraph (2), over ``(ii) the amount of such natural gas consumption with respect to such dwelling unit determined by taking into account the qualified energy efficiency expenditures made during such taxable year, as certified in accordance with paragraph (2). ``(B) Certified electricity savings.--The term `certified electricity savings' means, with respect to any taxable year, the amount, measured in kilowatt hours on an annual basis, which is equal to the excess of-- ``(i) 85 percent of the amount of electricity which would be consumed with respect to the dwelling unit of the taxpayer if the qualified energy efficiency expenditures with respect to such taxable year were not made, as certified in accordance with paragraph (2), over ``(ii) the amount of electricity consumption with respect to such dwelling unit determined by taking into account the qualified energy efficiency expenditures made during such taxable year, as certified in accordance with paragraph (2). ``(2) Certification.-- ``(A) In general.--The Secretary shall prescribe the manner and method for the making of certifications under this paragraph. ``(B) Procedures.--The Secretary shall include as part of the certification process procedures for inspection and testing by qualified individuals described in subparagraph (C) to ensure compliance of dwelling units with the requirements of this section. Such procedures shall be similar to the requirements in the Mortgage Industry National Accreditation Procedures for Home Energy Rating Systems. ``(C) Qualified individuals.--Individuals qualified to determine compliance shall be only those individuals who are recognized by an organization certified by the Secretary for such purposes. ``(e) Special Rules.--For purposes of this section, rules similar to the rules under paragraphs (4), (5), (6), (7), (8), and (9) of section 25D(e) shall apply. ``(f) Basis Adjustments.--For purposes of this subtitle, if a credit is allowed under this section with respect to any expenditure with respect to any property, the increase in the basis of such property which would (but for this subsection) result from such expenditure shall be reduced by the amount of the credit so allowed. ``(g) Termination.--This section shall not apply with respect to any property placed in service after December 31, 2007.''. (b) Conforming Amendment.--Section 1016(a)(34) is amended by striking ``25C(e)'' and inserting ``section 25C(f)''. (c) Effective Dates.--The amendments made by this section shall apply to property placed in service after December 31, 2005.
summary: Home Energy Savings Incentives Act of 2005 - Amends the Internal Revenue Code to revise the tax credit for nonbusiness energy property enacted by the Energy Policy Act of 2005 to allow an individual taxpayer a credit equal to $10 for each therm of certified natural gas savings and $0.65 for each kilowatt hour of certified electricity savings attributable to energy efficiency improvements made to the taxpayer's principal residence. Limits the amount of such credit to $5,000, less credits received for all prior taxable years. Requires the Secretary of the Treasury to prescribe the manner and method for making energy savings certifications for purposes of the tax credit. Terminates the credit after December 31, 2007.