text: 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.
target: 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.
feat_title: A bill to amend the Internal Revenue Code of 1986 to modify the credit for nonbusiness energy property so that the amount of the credit is determined based on the amount of energy savings achieved by the taxpayer.