text: SECTION 1. RECOVERY PERIOD FOR DEPRECIATION OF CERTAIN SYSTEMS 
                INSTALLED IN NONRESIDENTIAL AND RESIDENTIAL RENTAL 
                BUILDINGS.
  
      (a) 20-Year Recovery Period for Highly Efficient HVAC&R 
  Equipment.--Subparagraph (F) of section 168(e)(3) of the Internal 
  Revenue Code of 1986 (relating to 20-year property) is amended to read 
  as follows:
                      ``(F) 20-year property.--The term `20-year 
                  property' means--
                              ``(i) initial clearing and grading land 
                          improvements with respect to any electric 
                          utility transmission and distribution plant, 
                          and
                              ``(ii) any property--
                                      ``(I) which is part of a heating, 
                                  ventilation, air conditioning, or 
                                  commercial refrigeration system,
                                      ``(II) which exceeds by at least 10 
                                  percent the applicable minimum 
                                  performance standard for such system or 
                                  component under the National Appliance 
                                  Energy Conservation Act of 1987 or the 
                                  Energy Policy Act of 1992 (as such Acts 
                                  are in effect on the date that such 
                                  property is placed in service and 
                                  taking into account any changes to the 
                                  American Society of Heating, 
                                  Refrigerating and Air-conditioning 
                                  Engineers Standard 90.1 which have been 
                                  adopted by the Department of Energy as 
                                  of such date),
                                      ``(III) which is installed on or in 
                                  a building which is nonresidential real 
                                  property or residential rental 
                                  property,
                                      ``(IV) the original use of which 
                                  commences with the taxpayer (the owner 
                                  or lessor in the case of residential 
                                  rental property), and
                                      ``(V) which is placed in service 
                                  before January 1, 2013.''
      (b) 25-Year Recovery Period.--Section 168(e)(3) of such Code is 
  further amended by inserting after subparagraph (F) the following new 
  subparagraph:
                      ``(G) 25-year property.--The term `25-year 
                  property' means any property--
                              ``(i) which is part of a heating, 
                          ventilation, air conditioning, or commercial 
                          refrigeration system,
                              ``(ii) which is not described in 
                          subparagraph (F),
                              ``(iii) which is installed on or in a 
                          building which is nonresidential real property 
                          or residential rental property,
                              ``(iv) the original use of which commences 
                          with the taxpayer (the owner or lessor in the 
                          case of residential rental property), and
                              ``(v) which is placed in service before 
                          January 1, 2013.''.
      (c) Conforming Amendments.--
              (1) The table contained in section 168(c) of such Code is 
          amended by inserting after the item relating to 20-year 
          property the following new item:
  
          ``25-year property................................. 25 years''.
              (2) The table contained in section 467(e)(3)(A) of such 
          Code is amended by inserting after the item relating to 
          residential rental property and nonresidential real property 
          the following new item:
  
          ``25-year property................................. 25 years''.
      (d) Requirement To Use Straight Line Method.--Paragraph (3) of 
  section 168(b) of such Code (relating to property to which straight 
  line method applies) is amended by redesignating subparagraphs (F), 
  (G), (H), and (I) as subparagraphs (G), (H), (I), and (J), 
  respectively, and by inserting after subparagraph (E) the following new 
  subparagraph:
              ``(F) Property described in subsection (e)(3)(F)(ii) and 
          subsection (e)(3)(G).''.
      (e) Alternative System.--The table contained in section 
  168(g)(3)(B) of such Code is amended by striking the items relating to 
  subparagraph (F) and inserting the following new items:
  
          ``(F)(i)...............................................     20 
           (F)(ii)...............................................     20 
           (G)...................................................   25''.
      (f) Effective Date.--The amendments made by this section shall 
  apply to property placed in service after December 31, 2008.
target: Amends the Internal Revenue Code to provide for accelerated depreciation of certain energy-efficient heating, ventilation, air conditioning, or commercial refrigeration property installed in nonresidential real property or residential rental property and placed in service before January 1, 2013.
feat_title: To amend the Internal Revenue Code of 1986 to provide a shorter recovery period for the depreciation of certain systems installed in nonresidential real property or residential rental property.