To amend the Internal Revenue Code of 1986 to exclude from gross income payments made by public utilities to customers to subsidize the cost of energy and water conservation services and measures.

Amends the Internal Revenue Code to exclude from gross income the value of any subsidy provided by a public utility to a customer for the purchase or installation of energy or water conservation measures.

 
HR 4249 IH
101st CONGRESS
2d Session
 H. R. 4249
To amend the Internal Revenue Code of 1986 to exclude from gross income
payments made by public utilities to customers to subsidize the cost of
energy and water conservation services and measures.
IN THE HOUSE OF REPRESENTATIVES
March 13, 1990
Mrs. KENNELLY (for herself, Mr. CHANDLER, Mr. MATSUI, Mr. THOMAS of California,
Mr. SHARP, and Mr. SWIFT) introduced the following bill; which was referred
to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to exclude from gross income
payments made by public utilities to customers to subsidize the cost of
energy and water conservation services and measures.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled, That (a) part III of subchapter
  B of chapter 1 of the Internal Revenue Code of 1986 (relating to amounts
  specifically excluded from gross income) is amended by redesignating
  section 136 as section 137 and by inserting after section 135 the following
  new section:
`SEC. 136. ENERGY AND WATER CONSERVATION SUBSIDIES.
  `(a) GENERAL RULE- Gross income shall not include the value of any subsidy
  provided by a public utility to a customer for the purchase or installation
  of any energy or water conservation measure.
  `(b) DENIAL OF DOUBLE BENEFIT- Notwithstanding any other provision of this
  subtitle, no deduction or credit shall be allowed for, or by reason of,
  any expenditure to the extent of any subsidy excluded under subsection (a)
  which was provided with respect to such expenditure. The adjusted basis
  of any property shall be reduced by the amount of any subsidy excluded
  under subsection (a) which was provided with respect to such property.
  `(c) ENERGY OR WATER CONSERVATION MEASURE- For purposes of this section,
  the term `energy or water conservation measure' means--
  `(1) any residential energy conservation measure described in section
  210(11) of the National Energy Conservation Policy Act (42 U.S.C. 8211(11)),
  `(2) any commercial energy conservation measure described in section
  710(b)(5) of the National Energy Conservation Policy Act (as in effect
  on the day before the date of the enactment of the Conservation Service
  Reform Act of 1986),
  `(3) any specially defined energy property (as defined in section 48(l)(5)
  of this title), and
  `(4) any device designed to reduce water consumption.
  `(d) PUBLIC UTILITY- For purposes of this section, the term `public utility'
  means any person, corporation, State agency or local unit of government,
  or Federal agency engaged in the sale of electrical energy, gas, or water.'
  (b) The table of sections for part III of subchapter B of chapter 1 of such
  Code is amended by striking the item relating to section 136 and inserting:
`Sec. 136. Energy and water conservation subsidies.
`Sec. 137. Cross reference to other Acts.'
  (c) The amendments made by this section shall apply to amounts received
  after the date of the enactment of this Act.