A bill to amend the Internal Revenue Code of 1954 to allow a credit for amounts paid for insulation and solar energy equipment.

Allows, as a credit against the income tax, 25 percent of the expenditures paid for the installation of solar heating or cooling equipment in any building owned by the taxpayer and used as his residence. Limits the expenditures claimed by any taxpayer, for any building, to $8,000. Prorates the allowable credit among joint owners and tenant stockholders. Prohibits any increase in the structure's basis to the extent that this credit is claimed. Defines "solar heating and cooling equipment" as equipment meeting the criteria of the Solar Heating and Cooling Demonstration Act, with a useful life of at least three years, and which is originally used by the taxpayer.

Allows, as a credit against the income tax, 30 percent of the expenditures paid for insulating the taxpayer's residence. Limits the expenditures claimed during this period to $750 for any individual or building. Prorates the allowable credit among joint owners and tenant stockholders. Prohibits any increase in the basis of such residence to the extent that this credit is taken.

Allows an investment tax credit for expenditures paid or incurred for insulation and solar energy equipment installed in structures used for a trade or business or held for the production of income. Extends this investment credit to structures used as lodging facilities. Directs the Secretary of the Treasury to draft additional criteria defining solar energy equipment for the purposes of the investment tax credit.

Allows the amortization, over 60 months, of depreciable shale oil conversion, solar geothermal, and waste energy equipment.