A bill to amend the Internal Revenue Code of 1954 to provide a tax credit for expenditures by a taxpayer for solar heating and cooling equipment installed in new or existing buildings, and a tax credit for expenditures by an individual for insulation in such individual's principal residence.

Allows as a credit under the Internal Revenue Code an amount equal to 25 percent of the qualified solar heating and cooling equipment expenditures paid by the taxpayer during the taxable year with respect to any building up to a maximum of $8,000. Adds to such amount 12.5 percent of such expenditures paid during the taxable year as exceeds $8,000.

Allows as a credit against the income tax an amount equal to 25 percent of the qualified insulation expenditures not to exceed $8,000 paid by the taxpayer during the taxable year with respect to any residence.