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Sec. 45M. Energy Efficient Appliance Credit [Repealed]

Editor's Note: Pub. L. 115-141, Div. U, Sec. 401(d)(2)(A), struck Sec. 45M, effective generally March 23, 2018.
I.R.C. § 45M(a) General Rule
I.R.C. § 45M(a)(1) In General
For purposes of section 38, the energy efficient appliance credit determined under this section for any taxable year is an amount equal to the sum of the credit amounts determined under paragraph (2) for each type of qualified energy efficient appliance produced by the taxpayer during the calendar year ending with or within the taxable year.
I.R.C. § 45M(a)(2) Credit Amounts
The credit amount determined for any type of qualified energy efficient appliance is
I.R.C. § 45M(a)(2)(A)
the applicable amount determined under subsection (b) with respect to such type, multiplied by
I.R.C. § 45M(a)(2)(B)
the eligible production for such type.
I.R.C. § 45M(b) Applicable Amount
For purposes of subsection (a)
I.R.C. § 45M(b)(1) Dishwashers
The applicable amount is—
I.R.C. § 45M(b)(1)(A)
$45 in the case of a dishwasher which is manufactured in calendar year 2008 or 2009 and which uses no more than 324 kilowatt hours per year and 5.8 gallons per cycle,
I.R.C. § 45M(b)(1)(B)
$75 in the case of a dishwasher which is manufactured in calendar year 2008, 2009, or 2010 and which uses no more than 307 kilowatt hours per year and 5.0 gallons per cycle (5.5 gallons per cycle for dishwashers designed for greater than 12 place settings),
I.R.C. § 45M(b)(1)(C)
$25 in the case of a dishwasher which is manufactured in calendar year 2011 and which uses no more than 307 kilowatt hours per year and 5.0 gallons per cycle (5.5 gallons per cycle for dishwashers designed for greater than 12 place settings),
I.R.C. § 45M(b)(1)(D)
$50 in the case of a dishwasher which is manufactured in calendar year 2011, 2012, or 2013 and which uses no more than 295 kilowatt hours per year and 4.25 gallons per cycle (4.75 gallons per cycle for dishwashers designed for greater than 12 place settings), and
I.R.C. § 45M(b)(1)(E)
$75 in the case of a dishwasher which is manufactured in calendar year 2011, 2012, or 2013 and which uses no more than 280 kilowatt hours per year and 4 gallons per cycle (4.5 gallons per cycle for dishwashers designed for greater than 12 place settings).
I.R.C. § 45M(b)(2) Clothes Washers
The applicable amount is—
I.R.C. § 45M(b)(2)(A)
$75 in the case of a residential top-loading clothes washer manufactured in calendar year 2008 which meets or exceeds a 1.72 modified energy factor and does not exceed a 8.0 water consumption factor,
I.R.C. § 45M(b)(2)(B)
$125 in the case of a residential top-loading clothes washer manufactured in calendar year 2008 or 2009 which meets or exceeds a 1.8 modified energy factor and does not exceed a 7.5 water consumption factor,
I.R.C. § 45M(b)(2)(C)
$150 in the case of a residential or commercial clothes washer manufactured in calendar year 2008, 2009, or 2010 which meets or exceeds 2.0 modified energy factor and does not exceed a 6.0 water consumption factor,
I.R.C. § 45M(b)(2)(D)
$250 in the case of a residential or commercial clothes washer manufactured in calendar year 2008, 2009, or 2010 which meets or exceeds 2.2 modified energy factor and does not exceed a 4.5 water consumption factor,
I.R.C. § 45M(b)(2)(E)
$175 in the case of a top-loading clothes washer manufactured in calendar year 2011 which meets or exceeds a 2.2 modified energy factor and does not exceed a 4.5 water consumption factor, and
I.R.C. § 45M(b)(2)(F)
$225 in the case of a clothes washer manufactured in calendar year 2011, 2012, or 2013—
I.R.C. § 45M(b)(2)(F)(i)
which is a top-loading clothes washer and which meets or exceeds a 2.4 modified energy factor and does not exceed a 4.2 water consumption factor, or
I.R.C. § 45M(b)(2)(F)(ii)
which is a front-loading clothes washer and which meets or exceeds a 2.8 modified energy factor and does not exceed a 3.5 water consumption factor.
I.R.C. § 45M(b)(3) Refrigerators
The applicable amount is—
I.R.C. § 45M(b)(3)(A)
$50 in the case of a refrigerator which is manufactured in calendar year 2008, and consumes at least 20 percent but not more than 22.9 percent less kilowatt hours per year than the 2001 energy conservation standards,
I.R.C. § 45M(b)(3)(B)
$75 in the case of a refrigerator which is manufactured in calendar year 2008 or 2009, and consumes at least 23 percent but no more than 24.9 percent less kilowatt hours per year than the 2001 energy conservation standards,
I.R.C. § 45M(b)(3)(C)
$100 in the case of a refrigerator which is manufactured in calendar year 2008, 2009, or 2010, and consumes at least 25 percent but not more than 29.9 percent less kilowatt hours per year than the 2001 energy conservation standards,
I.R.C. § 45M(b)(3)(D)
$200 in the case of a refrigerator manufactured in calendar year 2008, 2009, or 2010 and which consumes at least 30 percent less energy than the 2001 energy conservation standards,
I.R.C. § 45M(b)(3)(E)
$150 in the case of a refrigerator manufactured in calendar year 2011, 2012, or 2013 which consumes at least 30 percent less energy than the 2001 energy conservation standards, and
I.R.C. § 45M(b)(3)(F)
$200 in the case of a refrigerator manufactured in calendar year 2011, 2012, or 2013 which consumes at least 35 percent less energy than the 2001 energy conservation standards.
I.R.C. § 45M(c) Eligible Production
The eligible production in a calendar year with respect to each type of energy efficient appliance is the excess of—
I.R.C. § 45M(c)(1)
the number of appliances of such type which are produced by the taxpayer in the United States during such calendar year, over
I.R.C. § 45M(c)(2)
the average number of appliances of such type which were produced by the taxpayer (or any predecessor) in the United States during the preceding 2-calendar year period.
I.R.C. § 45M(d) Types Of Energy Efficient Appliance
For purposes of this section, the types of energy efficient appliances are—
I.R.C. § 45M(d)(1)
dishwashers described in subsection (b)(1),
I.R.C. § 45M(d)(2)
clothes washers described in subsection (b)(2)
I.R.C. § 45M(d)(3)
refrigerators described in subsection (b)(3).
I.R.C. § 45M(e) Limitations
I.R.C. § 45M(e)(1) Aggregate Credit Amount Allowed
The aggregate amount of credit allowed under subsection (a) with respect to a taxpayer for any taxable year shall not exceed $25,000,000 reduced by the amount of the credit allowed under subsection (a) to the taxpayer (or any predecessor) for all prior taxable years beginning after December 31, 2010.
I.R.C. § 45M(e)(2) Amount Allowed For Certain Refrigerators And Clothes Washers
Refrigerators described in subsection (b)(3)(F) and clothes washers described in subsection (b)(2)(F) shall not be taken into account under paragraph (1).
I.R.C. § 45M(e)(3) Limitation Based On Gross Receipts
The credit allowed under subsection (a) with respect to a taxpayer for the taxable year shall not exceed an amount equal to 4 percent of the average annual gross receipts of the taxpayer for the 3 taxable years preceding the taxable year in which the credit is determined.
I.R.C. § 45M(e)(4) Gross Receipts
For purposes of this subsection, the rules of paragraphs (2) and (3) of section 448(c) shall apply.
I.R.C. § 45M(f) Definitions
For purposes of this section—
I.R.C. § 45M(f)(1) Qualified Energy Efficient Appliance
The term “qualified energy efficient appliance” means—
I.R.C. § 45M(f)(1)(A)
any dishwasher described in subsection (b)(1)(A),
I.R.C. § 45M(f)(1)(B)
any clothes washer described in subsection (b)(1)(B), and
I.R.C. § 45M(f)(1)(C)
any refrigerator described in subsection (b)(1)(C).
I.R.C. § 45M(f)(2) Dishwasher
The term “dishwasher” means a residential dishwasher subject to the energy conservation standards established by the Department of Energy.
I.R.C. § 45M(f)(3) Clothes Washer
The term “clothes washer” means a residential model clothes washer, including a commercial residential style coin operated washer.
I.R.C. § 45M(f)(4) Top-Loading Clothes Washer
The term “top-loading clothes washer” means a clothes washer which has the clothes container compartment access located on the top of the machine and which operates on a vertical axis.
I.R.C. § 45M(f)(5) Refrigerator
The term “refrigerator” means a residential model automatic defrost refrigerator-freezer which has an internal volume of at least 16.5 cubic feet.
I.R.C. § 45M(f)(6) Modified Energy Factor
The term “modified energy factor” means the modified energy factor established by the Department of Energy for compliance with the Federal energy conservation standard.
I.R.C. § 45M(f)(7) Produced
The term “produced” includes manufactured.
I.R.C. § 45M(f)(8) 2001 Energy Conservation Standard
The term “2001 energy conservation standard” means the energy conservation standards promulgated by the Department of Energy and effective July 1, 2001.
I.R.C. § 45M(f)(9) Gallons Per Cycle
The term “gallons per cycle” means, with respect to a dishwasher, the amount of water, expressed in gallons, required to complete a normal cycle of a dishwasher.
I.R.C. § 45M(f)(10) Water Consumption Factor
The term “water consumption factor” means, with respect to a clothes washer, the quotient of the total weighted per-cycle water consumption divided by the cubic foot (or liter) capacity of the clothes washer.
I.R.C. § 45M(g) Special Rules
For purposes of this section—
I.R.C. § 45M(g)(1) In General
Rules similar to the rules of subsections (c), (d), and (e) of section 52 shall apply.
I.R.C. § 45M(g)(2) Controlled Group
I.R.C. § 45M(g)(2)(A) In General
All persons treated as a single employer under subsection (a) or (b) of section 52 or subsection (m) or (o) of section 414 shall be treated as a single producer.
I.R.C. § 45M(g)(2)(B) Inclusion Of Foreign Corporations
For purposes of subparagraph (A), in applying subsections (a) and (b) of section 52 to this section, section 1563 shall be applied without regard to subsection (b)(2)(C) thereof.
I.R.C. § 45M(g)(3) Verification
No amount shall be allowed as a credit under subsection (a) with respect to which the taxpayer has not submitted such information or certification as the Secretary, in consultation with the Secretary of Energy, determines necessary.
(Added by Pub. L. 109-58, title XIII, Sec. 1334(a), Aug. 8, 2005, 119 Stat. 594; and amended by Pub. L. 110-343, div. B, title III, Sec. 305, Oct. 3, 2008, 122 Stat. 3765; Pub. L. 111-312, Sec. 709, Dec. 17, 2010, 124 Stat. 3296; Pub. L. 112-240, title IV, Sec. 409, Jan. 2, 2013, 126 Stat. 2313; repealed by Pub. L. 115-141, Div. U, title IV, Sec. 401(d)(2)(A), Mar. 23, 2018, 132 Stat. 348.)
BACKGROUND NOTES
AMENDMENTS
2018 - Sec. 45M. Pub. L. 115-141, Div. U, Sec. 401(d)(2)(A), struck Sec. 45M.
2013 - Subsec. (b). Pub. L. 112-240, Sec. 409, amended subsec. (b) by substituting “2011, 2012, or 2013” for “2011” each place it appeared except for in par. (1)(C) and (2)(E).
2010 - Subsec. (b)(1)(A)-(E). Pub. L. 111-312, Sec. 709(a), amended par. (1) by striking “and” at the end of subpar. (A); by substituting a comma for the period at the end of subpar. (B); and by adding subpar. (C)-(E).
Subsec. (b)(2)(C)-(F). Pub. L. 111-312, Sec. 709(b), amended par. (2) by striking “and” at the end of subpar. (C); by substituting a comma for the period at the end of subpar. (D); and by adding subpar. (E) and (F).
Subsec. (b)(3)(C)-(F). Pub. L. 111-312, Sec. 709(c), amended par. (3) by striking “and” at the end of subpar. (C); by substituting a comma for the period at the end of subpar. (D); and by adding subpar. (E) and (F).
Subsec. (e)(1). Pub. L. 111-312, Sec. 709(d)(1), amended par. (1) by substituting “$75,000,000” for “$25,000,000” and by substituting “December 31, 2010” for “December 31, 2007”.
Subsec. (e)(2). Pub. L. 111-312, Sec. 709(d)(2), amended par. (2) by substituting “subsection (b)(3)(F)” for “subsection (b)(3)(D)” and by substituting “subsection (b)(2)(F)” for “subsection (b)(2)(D)”.
Subsec. (e)(3). Pub. L. 111-312, Sec. 709(d)(3), amended par. (3) by substituting “4 percent” for “2 percent”.
2008 - Subsec. (b). Pub. L. 110-343, Div. B, Sec. 305(a), amended subsec. (b). Before amendment, it read as follows:
“(b) Applicable Amount
“(1) In General.—For purposes of subsection (a) --
“(A) Dishwashers.—The applicable amount is the energy savings amount in the case of a dishwasher which--
“(i) is manufactured in calendar year 2006 or 2007, and
“(ii) meets the requirements of the Energy Star program which are in effect for dishwashers in 2007.
“(B) Clothes Washers.—The applicable amount is $100 in the case of a clothes washer which--
“(i) is manufactured in calendar year 2006 or 2007, and
“(ii) meets the requirements of the Energy Star program which are in effect for clothes washers in 2007.
“(C) Refrigerators
“(i) 15 Percent Savings.—The applicable amount is $75 in the case of a refrigerator which—
“(I) is manufactured in calendar year 2006, and
“(II) consumes at least 15 percent but not more than 20 percent less kilowatt hours per year than the 2001 energy conservation standards.
“(ii) 20 Percent Savings.—The applicable amount is $125 in the case of a refrigerator which--
“(I) is manufactured in calendar year 2006 or 2007, and
“(II) consumes at least 20 percent but not more than 25 percent less kilowatt hours per year than the 2001 energy conservation standards.
“(iii) 25 Percent Savings.—The applicable amount is $175 in the case of a refrigerator which--
“(I) is manufactured in calendar year 2006 or 2007, and
“(II) consumes at least 25 percent less kilowatt hours per year than the 2001 energy conservation standards.
“(2) Energy Savings Amount.—For purposes of paragraph (1)(A)--
“ (A) In General.—The energy savings amount is the lesser of--
“(i) the product of--
“(I) $3, and
“(II) 100 multiplied by the energy savings percentage, or
“(ii) $100.
“(B) Energy Savings Percentage.—For purposes of subparagraph (A), the energy savings percentage is the ratio of--
“(i) the EF required by the Energy Star program for dishwashers in 2007 minus the EF required by the Energy Star program for dishwashers in 2005, to
“(ii) the EF required by the Energy Star program for dishwashers in 2007.”
Subsec. (c). Pub. L. 110-343, Div. B, Sec. 305(b)(1), amended subsec. (c) by striking par. (2); by substituting “The eligible” for “(1) In General.—Except as provided in paragraph (2), the eligible”; and by redesignating subpar. (A) and (B) as par. (1) and (2), respectively. Before being struck, par. (2) read as follows:
“ (2) Special Rule For Refrigerators.— The eligible production in a calendar year with respect to each type of refrigerator described in subsection (b)(1)(C) is the excess of--
“(A) the number of appliances of such type which are produced by the taxpayer in the United States during such calendar year, over
“(B) 110 percent of the average number of appliances of such type which were produced by the taxpayer (or any predecessor) in the United States during the preceding 3-calendar year period.”
Subsec. (c)(2). Pub. L. 110-343, Div. B, Sec. 305(b)(2), amended par. (2), as amended, by substituting “2-calendar year” for “3-calendar year”.
Subsec. (d). Pub. L. 110-343, Div. B, Sec. 305(c), amended subsec. (d). Before amendment, it read as follows:
“(d) Types Of Energy Efficient Appliance.— For purposes of this section, the types of energy efficient appliances are--
“(1) dishwashers described in subsection (b)(1)(A),
“(2) clothes washers described in subsection (b)(1)(B),
“(3) refrigerators described in subsection (b)(1)(C)(i),
“(4) refrigerators described in subsection (b)(1)(C)(ii), and
“(5) refrigerators described in subsection (b)(1)(C)(iii).”
Subsec. (e)(1). Pub. L. 110-343, Div. B, Sec. 305(d)(1), amended par. (1). Before amendment, par. (1) read as follows:
“(1) Aggregate Credit Amount Allowed.—The aggregate amount of credit allowed under subsection (a) with respect to a taxpayer for any taxable year shall not exceed $75,000,000 reduced by the amount of the credit allowed under subsection (a) to the taxpayer (or any predecessor) for all prior taxable years.”
Subsec. (e)(2). Pub. L. 110-343, Div. B, Sec. 305(d)(2), amended par. (2). Before amendment, par. (2) read as follows:
“Amount Allowed For 15 Percent Savings Refrigerators.— In the case of refrigerators described in subsection (b)(1)(C)(i), the aggregate amount of the credit allowed under subsection (a) with respect to a taxpayer for any taxable year shall not exceed $20,000,000.”
Subsec. (f)(1). Pub. L. 110-343, Div. B, Sec. 305(e)(1), amended par. (1). Before amendment, it read as follows:
“(1) Qualified Energy Efficient Appliance.— The term “qualified energy efficient appliance” means--
“(A) any dishwasher described in subsection (b)(1)(A),
“(B) any clothes washer described in subsection (b)(1)(B), and
“(C) any refrigerator described in subsection (b)(1)(C).”
Subsec. (f)(3). Pub. L. 110-343, Div. B, Sec. 305(e)(2), amended par. (3) by inserting “commercial” before “residential” the second place it appeared.
Subsec. (f)(4)-(8). Pub. L. 110-343, Div. B, Sec. 305(e)(3), amended subsec. (f) by redesignating par. (4)-(7) as par. (5)-(8), respectively and by adding par. (4).
Subsec. (f)(6). Pub. L. 110-343, Div. B, Sec. 305(e)(4), amended par. (6), as redesignated. Before amendment, it read as follows:
“(6) EF.— The term “EF” means the energy factor established by the Department of Energy for compliance with the Federal energy conservation standards.”
Subsec. (f)(9)-(10). Pub. L. 110-343, Div. B, Sec. 305(e)(5), amended subsec. (f) by adding par. (9) and (10).
EFFECTIVE DATE OF REPEAL
Repeal by Pub. L. 115-141, Div. U, Sec. 401(d)(2)(A), effective March 23, 2018. Section 401(e) of Pub. L. 115-141, Div. U, provided the following savings provision:
“(e) GENERAL SAVINGS PROVISION WITH RESPECT TO DEADWOOD PROVISIONS.—If—
“(1) any provision amended or repealed by the amendments made by subsection (b) or (d) applied to—
“(A) any transaction occurring before the date of the enactment of this Act,
“(B) any property acquired before such date of enactment, or
“(C) any item of income, loss, deduction, or credit taken into account before such date of enactment, and
“(2) the treatment of such transaction, property, or item under such provision would (without regard to the amendments or repeals made by such subsection) affect the liability for tax for periods ending after such date of enactment,
“nothing in the amendments or repeals made by this section shall be construed to affect the treatment of such transaction, property, or item for purposes of determining liability for tax for periods ending after such date of enactment.”
EFFECTIVE DATE OF 2013 AMENDMENTS
Amendments by Sec. 409 of Pub. L. 112-240 effective for appliances produced after December 31, 2011.
EFFECTIVE DATE OF 2010 AMENDMENTS
Amendments by Sec. 709(a), (b), and (c) of Pub. L. 111-312 effective for appliances produced after December 31, 2010.
Amendments by Sec. 709(d) of Pub. L. 111-312 effective for taxable years beginning after December 31, 2010.
EFFECTIVE DATE OF 2008 AMENDMENTS
Amendments by Div. B, Sec. 305 of Pub. L. 110-343 effective for appliances produced after December 31, 2007.
EFFECTIVE DATE
Effective for appliances produced after December 31, 2005.