A bill to amend the Internal Revenue Code of 1954 to allow the residential energy credit and the investment tax credit for certain property which enables the taxpayer to use hot or cold water or steam provided by a district heating or cooling system.

Amends the Internal Revenue Code to qualify for the residential energy credit expenditures for property which is installed in connection with a principal residence and which uses hot or cold water or steam from a district heating or cooling system to heat, cool, or provide hot water for use within the dwelling unit. Defines "district heating or cooling system" as a system comprised of a thermal or cooling source connected to a piping network which provides hot or cold water or steam to at least two buildings for residential, commercial, or industrial purposes.

Qualifies for the investment tax credit: (1) property which enables the taxpayer to use in his trade or business hot or cold water or steam from a district heating or cooling system or to sell energy to such a system on a proportionate basis; and (2) any amount paid or incurred for connection to a district heating or cooling system.

Excludes from treatment as energy property any district heating or cooling property used as public utility property.