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26 U.S.C. § 45M

Section 45M · Energy efficient appliance credit

Current version, with additions and removals from the August 8, 2005 version.

Current — January 2, 2013
As of August 8, 2005
(a) General rule
(a) General rule

(1) In general

(1) In general

For purposes of section 38, the energy efficient appliance credit determined under this section for any taxable year is an amount equal to the sum of the credit amounts determined under paragraph (2) for each type of qualified energy efficient appliance produced by the taxpayer during the calendar year ending with or within the taxable year.

For purposes of section 38, the energy efficient appliance credit determined under this section for any taxable year is an amount equal to the sum of the credit amounts determined under paragraph (2) for each type of qualified energy efficient appliance produced by the taxpayer during the calendar year ending with or within the taxable year.

(2) Credit amounts

(2) Credit amounts

The credit amount determined for any type of qualified energy efficient appliance is—

The credit amount determined for any type of qualified energy efficient appliance is—

(A) the applicable amount determined under subsection (b) with respect to such type, multiplied by

(A) the applicable amount determined under subsection (b) with respect to such type, multiplied by

(B) the eligible production for such type.

(B) the eligible production for such type.

(b) Applicable amount
(b) Applicable amount

(1) In general

For purposes of subsection (a)—

For purposes of subsection (a)—

(A) Dishwashers
(1) Dishwashers

The applicable amount is the energy savings amount in the case of a dishwasher which—

(i) is manufactured in calendar year 2006 or 2007, and

(ii) meets the requirements of the Energy Star program which are in effect for dishwashers in 2007.

The applicable amount is—

(A) $45 in the case of a dishwasher which is manufactured in calendar year 2008 or 2009 and which uses no more than 324 kilowatt hours per year and 5.8 gallons per cycle,

(B) $75 in the case of a dishwasher which is manufactured in calendar year 2008, 2009, or 2010 and which uses no more than 307 kilowatt hours per year and 5.0 gallons per cycle (5.5 gallons per cycle for dishwashers designed for greater than 12 place settings),

(C) $25 in the case of a dishwasher which is manufactured in calendar year 2011 and which uses no more than 307 kilowatt hours per year and 5.0 gallons per cycle (5.5 gallons per cycle for dishwashers designed for greater than 12 place settings),

(D) $50 in the case of a dishwasher which is manufactured in calendar year 2011, 2012, or 2013 and which uses no more than 295 kilowatt hours per year and 4.25 gallons per cycle (4.75 gallons per cycle for dishwashers designed for greater than 12 place settings), and

(E) $75 in the case of a dishwasher which is manufactured in calendar year 2011, 2012, or 2013 and which uses no more than 280 kilowatt hours per year and 4 gallons per cycle (4.5 gallons per cycle for dishwashers designed for greater than 12 place settings).

(B) Clothes washers
(2) Clothes washers

The applicable amount is—

(A) $75 in the case of a residential top-loading clothes washer manufactured in calendar year 2008 which meets or exceeds a 1.72 modified energy factor and does not exceed a 8.0 water consumption factor,

(B) $125 in the case of a residential top-loading clothes washer manufactured in calendar year 2008 or 2009 which meets or exceeds a 1.8 modified energy factor and does not exceed a 7.5 water consumption factor,

(C) $150 in the case of a residential or commercial clothes washer manufactured in calendar year 2008, 2009, or 2010 which meets or exceeds 1 2.0 modified energy factor and does not exceed a 6.0 water consumption factor,

(D) $250 in the case of a residential or commercial clothes washer manufactured in calendar year 2008, 2009, or 2010 which meets or exceeds 1 2.2 modified energy factor and does not exceed a 4.5 water consumption factor,

(E) $175 in the case of a top-loading clothes washer manufactured in calendar year 2011 which meets or exceeds a 2.2 modified energy factor and does not exceed a 4.5 water consumption factor, and

The applicable amount is $100 in the case of a clothes washer which—
(F) $225 in the case of a clothes washer manufactured in calendar year 2011, 2012, or 2013—

(i) is manufactured in calendar year 2006 or 2007, and

(ii) meets the requirements of the Energy Star program which are in effect for clothes washers in 2007.

(i) which is a top-loading clothes washer and which meets or exceeds a 2.4 modified energy factor and does not exceed a 4.2 water consumption factor, or

(ii) which is a front-loading clothes washer and which meets or exceeds a 2.8 modified energy factor and does not exceed a 3.5 water consumption factor.

(C) Refrigerators
(3) Refrigerators

(i) 15 percent savings

The applicable amount is $75 in the case of a refrigerator which—

(I) is manufactured in calendar year 2006, and

The applicable amount is—

(II) consumes at least 15 percent but not more than 20 percent less kilowatt hours per year than the 2001 energy conservation standards.
(A) $50 in the case of a refrigerator which is manufactured in calendar year 2008, and consumes at least 20 percent but not more than 22.9 percent less kilowatt hours per year than the 2001 energy conservation standards,

(ii) 20 percent savings

The applicable amount is $125 in the case of a refrigerator which—

(I) is manufactured in calendar year 2006 or 2007, and

(II) consumes at least 20 percent but not more than 25 percent less kilowatt hours per year than the 2001 energy conservation standards.
(B) $75 in the case of a refrigerator which is manufactured in calendar year 2008 or 2009, and consumes at least 23 percent but no more than 24.9 percent less kilowatt hours per year than the 2001 energy conservation standards,

(iii) 25 percent savings

The applicable amount is $175 in the case of a refrigerator which—

(I) is manufactured in calendar year 2006 or 2007, and

(II) consumes at least 25 percent less kilowatt hours per year than the 2001 energy conservation standards.
(C) $100 in the case of a refrigerator which is manufactured in calendar year 2008, 2009, or 2010, and consumes at least 25 percent but not more than 29.9 percent less kilowatt hours per year than the 2001 energy conservation standards,

(2) Energy savings amount

For purposes of paragraph (1)(A)—

(A) In general

The energy savings amount is the lesser of—

(i) the product of—

(I) $3, and

(II) 100 multiplied by the energy savings percentage, or

(ii) $100.

(B) Energy savings percentage

For purposes of subparagraph (A), the energy savings percentage is the ratio of—

(i) the EF required by the Energy Star program for dishwashers in 2007 minus the EF required by the Energy Star program for dishwashers in 2005, to

(ii) the EF required by the Energy Star program for dishwashers in 2007.

(D) $200 in the case of a refrigerator manufactured in calendar year 2008, 2009, or 2010 and which consumes at least 30 percent less energy than the 2001 energy conservation standards,

(E) $150 in the case of a refrigerator manufactured in calendar year 2011, 2012, or 2013 which consumes at least 30 percent less energy than the 2001 energy conservation standards, and

(F) $200 in the case of a refrigerator manufactured in calendar year 2011, 2012, or 2013 which consumes at least 35 percent less energy than the 2001 energy conservation standards.

(c) Eligible production
(c) Eligible production

(1) In general

Except as provided in paragraphs 1 (2), the eligible production in a calendar year with respect to each type of energy efficient appliance is the excess of—
The eligible production in a calendar year with respect to each type of energy efficient appliance is the excess of—
(A) the number of appliances of such type which are produced by the taxpayer in the United States during such calendar year, over
(1) the number of appliances of such type which are produced by the taxpayer in the United States during such calendar year, over
(B) the average number of appliances of such type which were produced by the taxpayer (or any predecessor) in the United States during the preceding 3-calendar year period.
(2) the average number of appliances of such type which were produced by the taxpayer (or any predecessor) in the United States during the preceding 2-calendar year period.

(2) Special rule for refrigerators

The eligible production in a calendar year with respect to each type of refrigerator described in subsection (b)(1)(C) is the excess of—

(A) the number of appliances of such type which are produced by the taxpayer in the United States during such calendar year, over

(B) 110 percent of the average number of appliances of such type which were produced by the taxpayer (or any predecessor) in the United States during the preceding 3-calendar year period.

(d) Types of energy efficient appliance
(d) Types of energy efficient appliance

For purposes of this section, the types of energy efficient appliances are—

For purposes of this section, the types of energy efficient appliances are—

(1) dishwashers described in subsection (b)(1)(A),
(1) dishwashers described in subsection (b)(1),
(2) clothes washers described in subsection (b)(1)(B),
(2) clothes washers described in subsection (b)(2), and
(3) refrigerators described in subsection (b)(1)(C)(i),
(3) refrigerators described in subsection (b)(3).

(4) refrigerators described in subsection (b)(1)(C)(ii), and

(5) refrigerators described in subsection (b)(1)(C)(iii).

(e) Limitations
(e) Limitations

(1) Aggregate credit amount allowed

(1) Aggregate credit amount allowed

The aggregate amount of credit allowed under subsection (a) with respect to a taxpayer for any taxable year shall not exceed $75,000,000 reduced by the amount of the credit allowed under subsection (a) to the taxpayer (or any predecessor) for all prior taxable years.
The aggregate amount of credit allowed under subsection (a) with respect to a taxpayer for any taxable year shall not exceed $25,000,000 reduced by the amount of the credit allowed under subsection (a) to the taxpayer (or any predecessor) for all prior taxable years beginning after December 31, 2010.
(2) Amount allowed for 15 percent savings refrigerators
(2) Amount allowed for certain refrigerators and clothes washers

In the case of refrigerators described in subsection (b)(1)(C)(i), the aggregate amount of the credit allowed under subsection (a) with respect to a taxpayer for any taxable year shall not exceed $20,000,000.

Refrigerators described in subsection (b)(3)(F) and clothes washers described in subsection (b)(2)(F) shall not be taken into account under paragraph (1).

(3) Limitation based on gross receipts

(3) Limitation based on gross receipts

The credit allowed under subsection (a) with respect to a taxpayer for the taxable year shall not exceed an amount equal to 2 percent of the average annual gross receipts of the taxpayer for the 3 taxable years preceding the taxable year in which the credit is determined.
The credit allowed under subsection (a) with respect to a taxpayer for the taxable year shall not exceed an amount equal to 4 percent of the average annual gross receipts of the taxpayer for the 3 taxable years preceding the taxable year in which the credit is determined.

(4) Gross receipts

(4) Gross receipts

For purposes of this subsection, the rules of paragraphs (2) and (3) of section 448(c) shall apply.

For purposes of this subsection, the rules of paragraphs (2) and (3) of section 448(c) shall apply.

(f) Definitions
(f) Definitions

For purposes of this section—

For purposes of this section—

(1) Qualified energy efficient appliance

(1) Qualified energy efficient appliance

The term “qualified energy efficient appliance” means—

The term “qualified energy efficient appliance” means—

(A) any dishwasher described in subsection (b)(1)(A),
(A) any dishwasher described in subsection (b)(1),
(B) any clothes washer described in subsection (b)(1)(B), and
(B) any clothes washer described in subsection (b)(2), and
(C) any refrigerator described in subsection (b)(1)(C).
(C) any refrigerator described in subsection (b)(3).

(2) Dishwasher

(2) Dishwasher

The term “dishwasher” means a residential dishwasher subject to the energy conservation standards established by the Department of Energy.

The term “dishwasher” means a residential dishwasher subject to the energy conservation standards established by the Department of Energy.

(3) Clothes washer

(3) Clothes washer

The term “clothes washer” means a residential model clothes washer, including a residential style coin operated washer.
The term “clothes washer” means a residential model clothes washer, including a commercial residential style coin operated washer.

(4) Top-loading clothes washer

The term “top-loading clothes washer” means a clothes washer which has the clothes container compartment access located on the top of the machine and which operates on a vertical axis.

(4) Refrigerator
(5) Refrigerator

The term “refrigerator” means a residential model automatic defrost refrigerator-freezer which has an internal volume of at least 16.5 cubic feet.

The term “refrigerator” means a residential model automatic defrost refrigerator-freezer which has an internal volume of at least 16.5 cubic feet.

(5) EF

(6) Modified energy factor

The term “EF” means the energy factor established by the Department of Energy for compliance with the Federal energy conservation standards.
The term “modified energy factor” means the modified energy factor established by the Department of Energy for compliance with the Federal energy conservation standard.
(6) Produced
(7) Produced

The term “produced” includes manufactured.

The term “produced” includes manufactured.

(7) 2001 energy conservation standard
(8) 2001 energy conservation standard

The term “2001 energy conservation standard” means the energy conservation standards promulgated by the Department of Energy and effective July 1, 2001.

The term “2001 energy conservation standard” means the energy conservation standards promulgated by the Department of Energy and effective July 1, 2001.

(9) Gallons per cycle

The term “gallons per cycle” means, with respect to a dishwasher, the amount of water, expressed in gallons, required to complete a normal cycle of a dishwasher.

(10) Water consumption factor

The term “water consumption factor” means, with respect to a clothes washer, the quotient of the total weighted per-cycle water consumption divided by the cubic foot (or liter) capacity of the clothes washer.

(g) Special rules
(g) Special rules

For purposes of this section—

For purposes of this section—

(1) In general

(1) In general

Rules similar to the rules of subsections (c), (d), and (e) of section 52 shall apply.

Rules similar to the rules of subsections (c), (d), and (e) of section 52 shall apply.

(2) Controlled group

(2) Controlled group

(A) In general

(A) In general

All persons treated as a single employer under subsection (a) or (b) of section 52 or subsection (m) or (o) of section 414 shall be treated as a single producer.

All persons treated as a single employer under subsection (a) or (b) of section 52 or subsection (m) or (o) of section 414 shall be treated as a single producer.

(B) Inclusion of foreign corporations

(B) Inclusion of foreign corporations

For purposes of subparagraph (A), in applying subsections (a) and (b) of section 52 to this section, section 1563 shall be applied without regard to subsection (b)(2)(C) thereof.

For purposes of subparagraph (A), in applying subsections (a) and (b) of section 52 to this section, section 1563 shall be applied without regard to subsection (b)(2)(C) thereof.

(3) Verification

(3) Verification

No amount shall be allowed as a credit under subsection (a) with respect to which the taxpayer has not submitted such information or certification as the Secretary, in consultation with the Secretary of Energy, determines necessary.

No amount shall be allowed as a credit under subsection (a) with respect to which the taxpayer has not submitted such information or certification as the Secretary, in consultation with the Secretary of Energy, determines necessary.

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