text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Building Energy Tax Credit Act of 
  2009''.
  
  SEC. 2. COMMERCIAL BUILDING ENERGY PROJECT CREDIT.
  
      (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
  of the Internal Revenue Code of 1986 (relating to business related 
  credits) is amended by adding at the end the following new section:
  
  ``SEC. 45R. COMMERCIAL BUILDING ENERGY PROJECT CREDIT.
  
      ``(a) Allowance of Credit.--For purposes of section 38, the 
  commercial building energy project credit is an amount equal to 35 
  percent of the cost of energy conservation commercial building property 
  placed in service by the taxpayer.
      ``(b) Maximum Amount of Credit.--The credit under subsection (a) 
  with respect to any building for any taxable year shall not exceed the 
  excess (if any) of--
              ``(1) the product of--
                      ``(A) $4.00, and
                      ``(B) the square footage of the building, over
              ``(2) the aggregate credit allowed under subsection (a) 
          with respect to the building for all prior taxable years.
      ``(c) Energy Conservation Commercial Building Property.--For 
  purposes of this section, the term `energy conservation commercial 
  building property' means property--
              ``(1) with respect to which depreciation (or amortization 
          in lieu of depreciation) is allowable,
              ``(2) which is installed on or in any building which is 
          located in the United States, and
              ``(3) which is installed as part of a commercial building 
          energy project.
      ``(d) Commercial Building Energy Project.--For purposes of this 
  section, the term `commercial building energy project' means a 
  project--
              ``(1)(A) to install energy efficient commercial building 
          property (as defined in section 179D(c)), or
              ``(B) with respect to a building, to achieve an energy 
          consumption rate which is not more 60 percent of the energy 
          consumption rate under the ASHRAE Standard 90.1-2007 for 
          commercial buildings, and
              ``(2) with respect to which credit amounts have been 
          allocated by an energy credit agency under subsection (e).
      ``(e) Allocations of Credit Amounts.--
              ``(1) Credit limitation with respect to project.--The 
          amount of credit determined under this section for any taxable 
          year with respect to any project shall not exceed the State 
          energy credit dollar amount allocated to such project under 
          this subsection.
              ``(2) Credit dollar amount for agencies.--
                      ``(A) In general.--The aggregate credit dollar 
                  amount which an energy credit agency may allocate for 
                  any calendar year is the limitation allocated under 
                  subparagraph (B) for such calendar year to such agency.
                      ``(B) Credit limitation allocated to state energy 
                  agencies.--
                              ``(i) In general.--The Secretary shall 
                          allocate for each calendar year the national 
                          energy credit limitation among the States in 
                          proportion to the population of the State. Such 
                          limitation shall be allocated to the energy 
                          credit agency of each such State. If there is 
                          more than 1 energy credit agency of a State, 
                          all such agencies shall be treated as a single 
                          agency.
                              ``(ii) National energy credit limitation.--
                          There is a national energy credit limitation 
                          for each calendar year of $100,000,000.
                              ``(iii) Population.--For purposes of this 
                          paragraph, population shall be determined in 
                          accordance with section 146(j).
              ``(3) Special rules.--
                      ``(A) Building must be located within jurisdiction 
                  of credit agency.--An energy credit agency may allocate 
                  its aggregate energy credit dollar amount only to 
                  projects with respect to buildings located in the 
                  jurisdiction of the governmental unit of which such 
                  agency is a part.
                      ``(B) Agency allocations in excess of limit.--If 
                  the aggregate energy credit dollar amounts allocated by 
                  an energy credit agency for any calendar year exceed 
                  the portion of the national energy credit limitation 
                  allocated to such agency for such calendar year, the 
                  energy credit dollar amounts so allocated shall be 
                  reduced (to the extent of such excess) for projects in 
                  the reverse of the order in which the allocations of 
                  such amounts were made.
              ``(4) Energy credit agency.--The term `energy credit 
          agency' means any agency authorized to carry out this 
          subsection.
      ``(f) Responsibilities of Energy Credit Agencies.--
              ``(1) In general.--Notwithstanding any other provision of 
          this section, the energy credit dollar amount with respect to 
          any project shall be zero unless such amount was allocated 
          pursuant to a qualified allocation plan of the energy credit 
          agency which is approved by the governmental unit (in 
          accordance with rules similar to the rules of section 147(f)(2) 
          (other than subparagraph (B)(ii) thereof)) of which such agency 
          is a part.
              ``(2) Qualified allocation plan.--For purposes of this 
          subsection--
                      ``(A) In general.--The term `qualified allocation 
                  plan' means any plan which meets the requirements of 
                  subparagraphs (B) through (E).
                      ``(B) Selection criteria.--The requirements of this 
                  subparagraph are met if such plan sets forth selection 
                  criteria to be used to determine priorities of the 
                  energy credit agency which are appropriate to local 
                  conditions. An energy credit agency may establish 
                  selection criteria which are more stringent than the 
                  requirements under subsection (d)(1)(B).
                      ``(C) Project preference.--The requirements of this 
                  subparagraph are met if such plan gives preference in 
                  allocating energy credit dollar amounts among selected 
                  projects to those projects which achieve the most 
                  energy savings. A plan shall not be treated as failing 
                  to meet the requirements of this subsection solely by 
                  reason of allocating credit dollar amounts ratably 
                  among projects with proportionally more allocated to 
                  those projects which achieve higher energy savings.
                      ``(D) Compliance monitoring.--The requirements of 
                  this subparagraph are met if such plan establishes a 
                  program which--
                              ``(i) is certified by the Secretary as 
                          meeting the requirements of this subparagraph, 
                          and
                              ``(ii) provides for monitoring by the 
                          agency (or an agent or other private contractor 
                          of such agency) for noncompliance with the 
                          provisions of this section and notifying the 
                          Internal Revenue Service of any such 
                          noncompliance of which such agency becomes 
                          aware.
                      ``(E) Certification methods.--
                              ``(i) In general.--The requirements of this 
                          subparagraph are met if such plan has a 
                          certification procedure for inspection and 
                          testing by qualified individuals under which 
                          only projects complying with energy-savings 
                          plans and targets are certified.
                              ``(ii) Qualified individuals.--Individuals 
                          qualified to determine compliance shall be only 
                          those individuals who are recognized by the 
                          energy credit agency for such purposes.
                              ``(iii) Pre-certification.--The 
                          requirements of this subparagraph shall be 
                          treated as met if the plan includes a pre-
                          certification procedure for commercial building 
                          energy projects, unless application fees with 
                          respect to a project under such pre-
                          certification procedure exceeds 1 percent of 
                          the estimated cost of such project.
      ``(g) Transfer of Credit.--
              ``(1) In general.--A person described in paragraph (4) may 
          transfer the credit which would (but for the tax-exempt status 
          of such person) be allowable under subsection (a) with respect 
          to energy conservation commercial building property placed in 
          service by such person. A credit may only be transferred once 
          and may only be transferred to another person not described in 
          such paragraph.
              ``(2) Treatment of transferee.--The person to whom the 
          credit is transferred under this subsection shall be treated 
          for purposes of this title as the taxpayer with respect to whom 
          the credit is allowable under subsection (a).
              ``(3) Treatment of transferor.--
                      ``(A) Transfer proceeds treated as arising from 
                  essential government function.--Any proceeds derived by 
                  a person described in paragraph (4)(B) from the 
                  transfer of any credit under this subsection shall be 
                  treated as arising from the exercise of an essential 
                  government function.
                      ``(B) Credit not income.--Any proceeds derived from 
                  the transfer of a credit under this subsection shall 
                  not treated as income for purposes of this title.
              ``(4) Persons described.--A person is described in this 
          paragraph if the person is--
                      ``(A) an organization exempt from tax under section 
                  501(a), or
                      ``(B) any State or political subdivision thereof, 
                  the District of Columbia, any possession of the United 
                  States, or any agency or instrumentality of any of the 
                  foregoing.
      ``(h) Denial of Double Benefit.--No credit shall be allowed under 
  this section for any expense for which a deduction is allowed under any 
  other provision of this chapter.
      ``(i) Basis Reduction.--For purposes of this subtitle, if a credit 
  is allowed under this section with respect to any energy conservation 
  commercial building property, the basis of such property shall be 
  reduced by the amount of the credit so allowed.
      ``(j) Regulations.--The Secretary may prescribe such regulations as 
  may be necessary or appropriate to carry out this section.''.
      (b) State Guidance.--The Secretary of Energy, in consultation with 
  the Secretary of Treasury, shall develop and provide guidance to States 
  and energy credit agencies (as defined in section 45R(e) of the 
  Internal Revenue Code of 1986) for establishing methods of measuring 
  overall energy savings of commercial building energy projects (as 
  defined in section 45R(e) of such Code), including methods for 
  comparing energy savings ratings under industry energy standards for 
  commercial buildings other than ASHRAE Standard 90.1-2007 with such 
  ASHRAE standard.
      (c) Credit Treated as Part of General Business Credit.--Subsection 
  (b) of section 38 of such Code is amended by striking ``plus'' at the 
  end of paragraph (33), by striking the period at the end of paragraph 
  (34) and inserting ``, plus'', and by adding at the end the following 
  new paragraph:
              ``(35) commercial building energy credit determined under 
          section 45R(a).''.
      (d) Conforming Amendment.--Subsection (a) of section 1016 of such 
  Code is amended by striking ``and'' at the end of paragraph (36), by 
  striking the period at the end of paragraph (37) and inserting ``, 
  and'', and by adding at the end the following new paragraph:
              ``(38) to the extent provided in section 45R(i).''.
      (e) Clerical Amendment.--The table of sections for subpart D of 
  part IV of subchapter A of chapter 1 is amended by adding at the end 
  the following new item:
  
  ``Sec. 45R. Commercial building energy project credit.''.
      (f) Effective Date.--The amendments made by this section shall 
  apply to property placed in service after the date of the enactment of 
  this Act.
target: Building Energy Tax Credit Act of 2009 - Amends the Internal Revenue Code to allow a tax credit for 35% of the cost of energy conservation commercial building property installed as part of a commercial building energy project within the jurisdiction of a state energy credit agency. Requires a building, to be eligible for such credit, to achieve an energy consumption rate of not more than 60% of the rate established by the American Society of Heating, Refrigerating and Air-conditioning Engineers (ASHRAE) Standard 90.11-2207 for commercial buildings.
feat_title: Amend the Internal Revenue Code of 1986 to allow a credit against income tax for amounts paid for energy efficient property placed in service in commercial buildings pursuant to an approved energy efficiency plan.