EXCLUSION FOR ENERGY CONSERVATION SUBSIDIES LIMITED TO SUBSIDIES WITH RESPECT TO DWELLING UNITS.

SEC. 1617. EXCLUSION FOR ENERGY CONSERVATION SUBSIDIES LIMITED TO SUBSIDIES WITH RESPECT TO DWELLING UNITS. (a) In General.— Paragraph (1) of section 136(c) (defining energy conservation measure) is amended by striking “energy demand—” and all that follows and inserting “energy demand with respect to a dwelling unit.”. (b) Conforming Amendments.— (1) Subsection (a) of section 136 is amended to read as follows: “(a) Exclusion.— Gross income shall not include the value of any subsidy provided (directly or indirectly) by a public utility to a customer for the purchase or installation of any energy conservation measure.”. “(2) Paragraph (2) of section 136(c) is amended— (A) by striking subparagraph (A) and by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively, and (B) by striking “AND SPECIAL RULES” in the paragraph heading. (c) Effective Date.— The amendments made by this section shall apply to amounts received after December 31, 1996, unless received pursuant to a written binding contract in effect on September 13, 1995, and at all times thereafter.