A bill to provide for the conservation of energy by amending the Internal Revenue Code of 1954 to allow a refundable tax credit for certain building insulation and heating improvements.

Amends the Internal Revenue Code to allow a credit against the individual income tax up to $1,000, for expenses paid or incurred for qualified heating and insulation improvements in any building owned by the taxpayer in the United States. Defines qualified improvements as storm windows, insulation, heat exchangers, ducting or other items certified by the Administrator of the Federal Energy Administration as achieving a significant reduction in a building's heating or cooling loss, or which is designed and capable of improving a heating plant's efficiency.

Limits the credit to expenses paid or incurred between enactment and January 1, 1979. Provides that the maximum credit allowed for expenses incurred by a subchapter S corporation, controlled groups, and trusts or estates shall be proportionately divided between entity, the owners, or the members or the beneficiaries as the case may be.

Provides for a reduction in a building's basis in the same amounted as the credit taken.