A bill to amend the Internal Revenue Code of 1954 to allow an income tax credit or an income tax deduction for certain expenditures of a taxpayer relating to the thermal design of the residence of such taxpayer.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code to allow the taxpayer to take either a tax credit or deduction for expenditures for the improvement of the thermal design of his principal residence. Applies this credit and deduction to the cost of any storm door, storm window, or solar heating and cooling equipment included in the taxpayer's principal residence when purchased. Limits the allowable credit under this Act for each taxable year to: (a) 25 percent of the expenditures paid for the purchase of solar heating equipment or conventional equipment (storm windows, etc.); and (b) $1,000, of which no more than $250 may be taken for conventional materials. Limits the credit taken in any one year to the difference between the taxpayer's income tax liability and specified credits, with a carryback and carryover provision for any unused amount. Allows the taxpayer to take a deduction in lieu of this credit for up to $4,000 in expenditures, of which no more than $1,000 may be claimed for the purchase of conventional materials. Directs the Secretary of the Treasury and the Administrator of the Federal Energy Administration to make a report to Congress by September 15, 1978 analyzing the amount, type, …