119-s2638

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2638 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 2638

 To amend the Internal Revenue Code of 1986 to increase the low-income 
housing credit for rehabilitation expenditures for buildings achieving 
 enhanced energy performance, and for other purposes.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 July 31, 2025

Ms. Klobuchar (for herself, Ms. Warren, Ms. Smith, and Mr. Van Hollen) 
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 increase the low-income 
housing credit for rehabilitation expenditures for buildings achieving 
 enhanced energy performance, and for other purposes.

 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 ``Energy Efficiency for Affordable 
Housing Act''.

SEC. 2. INCREASE OF CREDIT.

    (a) In General.--Paragraph

    (2) of 

section 42

    (e) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
subparagraph:
 ``
            (C) Increase in credit for buildings achieving 
 enhanced energy performance.--
 ``
            (i) In general.--In the case of any 
 existing building to which subsection

    (b)

    (2) does not apply which achieves enhanced energy 
 performance, the rehabilitation expenditures 
 taken into account under subparagraph
        (A) shall 
 be 130 percent of such expenditures determined 
 without regard to this subparagraph.
 ``
            (ii) Enhanced energy performance.--For 
 purposes of clause
            (i) , a building achieves 
 enhanced energy performance if it meets either 
 of the following:
 ``
            (I) The minimum requirements of 
 an advanced building construction 
 standard which shall be determined by 
 the Secretary of Energy using 
 prescriptive or performance methods of 
 calculation and promulgated by the 
 Secretary of Energy within 180 days of 
 the date of the enactment of this 
 subparagraph.
 ``
            (II) In the case of a taxpayer 
 which elects (at such time and in such 
 manner as the Secretary may provide) 
 the application of this subclause with 
 respect to the building, a qualified 
 retrofit plan.
 ``
            (iii) === Definitions. ===
-For purposes of this 
 subparagraph--
 ``
            (I) Qualified retrofit plan.--The 
 term `qualified retrofit plan' means a 
 written plan prepared and stamped by a 
 qualified professional which specifies 
 modifications to a building which, in 
 the aggregate, are expected to reduce 
 such building's site energy usage 
 intensity by 50 percent or more in 
 comparison to the baseline energy usage 
 intensity of such building. Such plan 
 shall require a qualified professional 
 to certify--
 ``

    (aa) the baseline energy 
 usage intensity of the 
 building,
 ``

    (bb) that the 
 modifications are expected to 
 reduce such building's site 
 energy usage intensity by 50 
 percent or more in comparison 
 to the baseline energy usage 
 intensity of such building, and
 ``
            (cc) as of any date 
 following installation of 
 building modifications, that 
 such modifications have been 
 installed.
 ``
            (II) Baseline energy usage 
 intensity.--The term `baseline energy 
 usage intensity' means the site energy 
 usage intensity as of any date during 
 the 24-month period immediately 
 preceding the building modifications 
 described in the qualified retrofit 
 plan.
 ``
            (III) Site energy usage 
 intensity.--The site energy usage 
 intensity shall be determined for the 
 entire building in accordance with such 
 regulations or other guidance as the 
 Secretary may provide and measured in 
 British thermal units per square foot 
 per year.
 ``
            (IV) Qualified professional.--The 
 term `qualified professional' means an 
 individual who is a licensed architect 
 or a licensed engineer or meets such 
 other requirements as the Secretary of 
 Energy may provide.''.

    (b) Increase for Buildings in High-Cost Areas.--Paragraph

    (2) of 

section 42

    (e) of the Internal Revenue Code of 1986, as amended by 
subsection

    (a) , is further amended by adding at the end the following 
new subparagraph:
 ``
            (D) Special rule for buildings in high-cost areas 
 which achieve enhanced energy performance.--In the case 
 of an existing building to which both subparagraph
            (C) and subsection
            (d) (5)
        (B) apply (but for this 
 subparagraph)--
 ``
            (i) subsection
            (d) (5)
        (B)
            (i) 
            (II) shall not 
 apply, and
 ``
            (ii) the rehabilitation expenditures 
 taken into account under subparagraph
        (A) shall 
 be 160 percent of such expenditures determined 
 without regard to this subparagraph.''.
            (c) Effective Date.--

    (1) In general.--Except as provided in paragraph

    (2) , the 
 amendments made by this section shall apply to buildings with 
 respect to which housing credit dollar amounts are allocated 
 after December 31, 2025.

    (2) Bond-financed projects.--In the case of any building 
 some portion of which, or of the land on which the building is 
 located, is financed by an obligation which is described in 
 

section 42

    (h)

    (4)
        (A) of the Internal Revenue Code of 1986, the 
 amendments made by this section shall apply to any such 
 building financed by such an obligation which is part of an 
 issue the issue date of which is after December 31, 2025.
 <all>