PETITION OF:

SECTION 1. Section 6 of Chapter 62 of the General Laws, as appearing in the 2002 Official Edition, is hereby amended by adding after line 263 the following:— (k) Any owner of multi-family residential property located in the commonwealth who is not a dependent of another taxpayer shall be allowed a credit equal to fifty percent of the net expenditure for the installation of eligible energy efficiency measures at such property. Such credit shall be taken by the eligible taxpayer in the tax year during which the installation of the eligible energy efficiency measures was completed. Any taxpayer entitled to this credit for any taxable year, the amount of which exceeds his total tax due for the then current taxable year, may carry over the excess amount, as reduced from year to year, and apply it to his tax liability for any one or more of the next succeeding three taxable years; provided, however, that in no taxable year may the amount of the credit allowed exceed the total tax due of the taxpayer for the relevant taxable year. Joint owners of a multi-family residential property shall share any credit available to the property under this subsection in the same proportion as their ownership interest. Energy efficiency measures eligible for the credit shall be determined by the commissioner of energy resources by regulations, and shall include, but not be limited to, the following: energy efficient heating, cooling and air conditioning units; energy efficient hot water heaters; energy efficient heat pumps; fuel cells; energy efficient appliances; and energy efficient lighting and other measures designed to save electricity. Eligible energy efficiency measures must meet performance and quality standards prescribed by the commissioner of energy resources by regulation; and which are in effect at the time of the installation of the measure. As used in this subsection, the following words shall have the following meanings: “Multi-family residential property”, a residential building or residential complex consisting of more than six separate residential units owned by the same party or parties. “Net expenditure”, the total of the purchase price for any eligible energy efficiency measure, plus installation cost.

SECTION 2. Chapter 63 of the General Laws is hereby amended by inserting after section 38Q the following section:— Section 38R. (a) A domestic or foreign corporation subject to tax under this chapter that is the owner of a multi-family residential property located in the Commonwealth shall be allowed a credit equal to fifty percent of the net expenditure for the installation of eligible energy efficiency measures at such property. Such credit shall be taken by the eligible corporation in the tax year during which the installation of the eligible energy efficiency measures was completed. Any corporation entitled to this credit for any taxable year, the amount of which exceeds its total tax due for the then current taxable year, may carry over the excess amount, as reduced from year to year, and apply it to its tax liability for any one or more of the next succeeding three taxable years; provided, however, that in no taxable year may the amount of the credit allowed exceed the total tax due of the corporation for the relevant taxable year. Joint owners of a multi-family residential property shall share any credit available to the property under this subsection in the same proportion as their ownership interest. Energy efficiency measures eligible for the credit shall be determined by the commissioner of energy resources by regulations, and shall include, but not be limited to, the following: energy efficient heating, cooling and air conditioning units; energy efficient hot water heaters; energy efficient heat pumps; fuel cells; energy efficient appliances; and energy efficient lighting and other measures designed to save electricity. Eligible energy efficiency measures must meet performance and quality standards prescribed by the commissioner of energy resources by regulation; and which are in effect at the time of the installation of the measure. As used in this subsection, the following words shall have the following meanings: “Multi-family residential property”, a residential building or residential complex consisting of more than six separate residential units owned by the same entity or entities. “Net expenditure”, the total of the purchase price for any eligible energy efficiency measure, plus installation cost. The credit allowed by this section shall be subject to the provisions of section 32C of this chapter; provided, however, that the time period for carry-over of the tax credit shall be as outlined in this section. The credit allowed under this section shall not reduce the excise payable by said corporation to less than the amount due pursuant to subsection (b) of section 32 or subsection (b) of section 39 or any other applicable section.

SECTION 3. The commissioner of energy resources shall establish a home energy rating system, enabling the owner of existing residential property, and requiring the developer or owner of newly constructed residential property, to obtain a rating of the property based upon its energy consumption characteristics, and an estimate of the cost of home improvements necessary to make the property energy-efficient. The commissioner shall encourage lending institutions to offer more favorable mortgage provisions for prospective buyers of homes whose ratings under this program reflect significant energy efficiency. The commissioner shall also encourage lending institutions to include in their mortgages the costs of home improvements that would increase energy efficiency. The commissioner shall coordinate this program with existing federal and state residential energy conservation programs. The commissioner shall encourage the participation of lending institutions, real estate brokers and developers, and utilities, to promote the home energy rating system program. The commissioner shall also promulgate rules and regulations to implement the provisions of this section