S 2576
110th CONGRESS
2d Session
S. 2576
To amend the Internal Revenue Code of 1986 to allow a credit
for qualified expenditures paid or incurred to replace certain wood
stoves.
IN THE SENATE OF THE UNITED STATES
January 30, 2008
Mr. CRAPO (for himself, Ms. COLLINS, Mr. ALLARD, and Mr. TESTER) introduced
the following bill; which was read twice and referred to the Committee
on Finance
A BILL
To amend the Internal Revenue Code of 1986 to allow a credit
for qualified expenditures paid or incurred to replace certain wood
stoves.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Clean Stove Act of 2008'.
SEC. 2. CREDIT FOR REPLACEMENT OF WOOD-BURNING STOVES MEETING ENVIRONMENTAL
STANDARDS.
(a) In General- Subpart A of part IV of subchapter A of chapter 1 of
the Internal Revenue Code of 1986 (relating to nonrefundable personal
credits) is amended by inserting after section 25D the following new
section:
`SEC. 25E. REPLACEMENT OF WOOD-BURNING STOVES.
`(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 the qualified stove replacement expenditures
paid or incurred by the taxpayer for the taxable year.
`(b) Limitation- The amount of the credit under subsection (a) with
respect to the replacement of each non-compliant wood stove shall not
exceed $500.
`(c) Qualified Stove Replacement Expenditures- For purposes of this
section--
`(1) IN GENERAL- The term `qualified stove replacement expenditures'
means expenditures made by the taxpayer for the purchase and installation
of a compliant stove which--
`(A) is installed in a dwelling unit located in the United States,
and
`(B) replaces a noncompliant wood stove used in such dwelling unit.
Such term includes expenditures for labor costs properly allocable
to the onsite preparation, assembly, or original installation of the
compliant stove.
`(2) COMPLIANT STOVE- The term `compliant stove' means--
`(A) a wood-burning stove which meets the requirements set forth
in the `Standards of Performance for New Residential Wood Heaters'
issued by the Environmental Protection Agency, and
`(B) a pellet or corn-burning stove.
`(3) NONCOMPLIANT WOOD STOVE- The term `noncompliant wood stove' means
any wood-burning stove that is not a compliant stove.
`(d) Joint Occupancy, Cooperative Housing Corporations, and When Expenditure
Made- Rules similar to the rules of paragraphs (4), (5), and (8) of
section 25D(e) shall apply for purposes of this section.
`(e) Basis Adjustment- For purposes of this subtitle, if a credit is
allowed under this section for any expenditure with respect to any property,
the increase in the basis of such property which would (but for this
subsection) result from such expenditure shall be reduced by the amount
of the credit so allowed.
`(f) Termination- This section shall not apply to expenditures made
after December 31, 2010.'.
(b) Conforming Amendments-
(1) Subsection (a) of section 1016 of the Internal Revenue Code of
1986 is amended--
(A) by striking `and' at the end of paragraph (36),
(B) by striking the period at the end of paragraph (37) and inserting
`, and', and
(C) by adding at the end the following new paragraph:
`(38) to the extent provided in section 25E(e), in the case of amounts
with respect to which a credit has been allowed under section 25E.'.
(2) The table of sections for subpart A of part IV of subchapter A
of chapter 1 of such Code is amended by inserting after the item relating
to section 25D the following new item:
`Sec. 25E. Replacement of wood-burning stoves.'.
(c) Effective Date- The amendments made by this section shall apply
to expenditures for stoves purchased after the date of the enactment
of this Act.
END
