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136 STAT. 1943 PUBLIC LAW 117–169—AUG. 16, 2022 end of subparagraph (B), by striking ‘‘, and’’ at the end of subparagraph (C) and inserting a period, and by striking subparagraph (D). (3) AIR SEALING INSULATION ADDED TO DEFINITION OF BUILDING ENVELOPE COMPONENT.—Section 25C(c)(3)(A) is amended by inserting ‘‘, including air sealing material or system,’’ after ‘‘material or system’’. (e) MODIFICATION OF RESIDENTIAL ENERGY PROPERTY EXPENDI- TURES.—Section 25C(d) is amended to read as follows: ‘‘(d) RESIDENTIAL ENERGY PROPERTY EXPENDITURES.—For pur- poses of this section— ‘‘(1) IN GENERAL.—The term ‘residential energy property expenditures’ means expenditures made by the taxpayer for qualified energy property which is— ‘‘(A) installed on or in connection with a dwelling unit located in the United States and used as a residence by the taxpayer, and ‘‘(B) originally placed in service by the taxpayer. Such term includes expenditures for labor costs properly allo- cable to the onsite preparation, assembly, or original installa- tion of the property. ‘‘(2) QUALIFIED ENERGY PROPERTY.—The term ‘qualified energy property’ means any of the following: ‘‘(A) Any of the following which meet or exceed the highest efficiency tier (not including any advanced tier) established by the Consortium for Energy Efficiency which is in effect as of the beginning of the calendar year in which the property is placed in service: ‘‘(i) An electric or natural gas heat pump water heater. ‘‘(ii) An electric or natural gas heat pump. ‘‘(iii) A central air conditioner. ‘‘(iv) A natural gas, propane, or oil water heater. ‘‘(v) A natural gas, propane, or oil furnace or hot water boiler. ‘‘(B) A biomass stove or boiler which— ‘‘(i) uses the burning of biomass fuel to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit, and ‘‘(ii) has a thermal efficiency rating of at least 75 percent (measured by the higher heating value of the fuel). ‘‘(C) Any oil furnace or hot water boiler which— ‘‘(i) is placed in service after December 31, 2022, and before January 1, 2027, and— ‘‘(I) meets or exceeds 2021 Energy Star effi- ciency criteria, and ‘‘(II) is rated by the manufacturer for use with fuel blends at least 20 percent of the volume of which consists of an eligible fuel, or ‘‘(ii) is placed in service after December 31, 2026, and— ‘‘(I) achieves an annual fuel utilization effi- ciency rate of not less than 90, and Effective dates. Definitions. 26 USC 25C. VerDate Sep 11 2014 13:57 Oct 25, 2022 Jkt 029139 PO 00169 Frm 00127 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL169.117 PUBL169 jmbennett on LAP3P8D0R2PROD with Publaw