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136 STAT. 1942 PUBLIC LAW 117–169—AUG. 16, 2022 (b) ALLOWANCE OF CREDIT.—Section 25C(a) is amended to read as follows: ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 30 percent of the sum of— ‘‘(1) the amount paid or incurred by the taxpayer for quali- fied energy efficiency improvements installed during such tax- able year, and ‘‘(2) the amount of the residential energy property expendi- tures paid or incurred by the taxpayer during such taxable year.’’. (c) APPLICATION OF ANNUAL LIMITATION IN LIEU OF LIFETIME LIMITATION.—Section 25C(b) is amended to read as follows: ‘‘(b) LIMITATIONS.— ‘‘(1) IN GENERAL.—The credit allowed under this section with respect to any taxpayer for any taxable year shall not exceed $1,200. ‘‘(2) ENERGY PROPERTY.—The credit allowed under this sec- tion by reason of subsection (a)(2) with respect to any taxpayer for any taxable year shall not exceed, with respect to any item of qualified energy property, $600. ‘‘(3) WINDOWS.—The credit allowed under this section by reason of subsection (a)(1) with respect to any taxpayer for any taxable year shall not exceed, in the aggregate with respect to all exterior windows and skylights, $600. ‘‘(4) DOORS.—The credit allowed under this section by rea- son of subsection (a)(1) with respect to any taxpayer for any taxable year shall not exceed— ‘‘(A) $250 in the case of any exterior door, and ‘‘(B) $500 in the aggregate with respect to all exterior doors. ‘‘(5) HEAT PUMP AND HEAT PUMP WATER HEATERS; BIOMASS STOVES AND BOILERS.—Notwithstanding paragraphs (1) and (2), the credit allowed under this section by reason of subsection (a)(2) with respect to any taxpayer for any taxable year shall not, in the aggregate, exceed $2,000 with respect to amounts paid or incurred for property described in clauses (i) and (ii) of subsection (d)(2)(A) and in subsection (d)(2)(B).’’. (d) MODIFICATIONS RELATED TO QUALIFIED ENERGY EFFICIENCY IMPROVEMENTS.— (1) STANDARDS FOR ENERGY EFFICIENT BUILDING ENVELOPE COMPONENTS.—Section 25C(c)(2) is amended by striking ‘‘meets—’’ and all that follows through the period at the end and inserting the following: ‘‘meets— ‘‘(A) in the case of an exterior window or skylight, Energy Star most efficient certification requirements, ‘‘(B) in the case of an exterior door, applicable Energy Star requirements, and ‘‘(C) in the case of any other component, the prescrip- tive criteria for such component established by the most recent International Energy Conservation Code standard in effect as of the beginning of the calendar year which is 2 years prior to the calendar year in which such compo- nent is placed in service.’’. (2) ROOFS NOT TREATED AS BUILDING ENVELOPE COMPO- NENTS.—Section 25C(c)(3) is amended by adding ‘‘and’’ at the Effective date. 26 USC 25C. VerDate Sep 11 2014 13:57 Oct 25, 2022 Jkt 029139 PO 00169 Frm 00126 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL169.117 PUBL169 jmbennett on LAP3P8D0R2PROD with Publaw