1. Short title
This Act may be cited as the “All-Electric Homes Act of 2019”.
All-Electric Homes Act of 2019
A BILL
To amend the Internal Revenue Code of 1986 to establish a tax credit for construction of new all-electric homes.
2. Credit for new all-electric homes
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:
“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.”
Conforming amendments—
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).”
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).”
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.”
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:
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.