expenditure for any property (other than a qualified low-income building, as described in section 42(c)(2)), 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 determined. (f) Coordination with investment credits For purposes of this section, expenditures taken into account under section 25D or 47 shall not be taken into account under this section. . (b) Effective date The amendment made by this section shall apply to any qualified residence acquired after December 31, 2018. 302. Heating and air conditioning replacement credit (a) In general Subpart A of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section: 25E. Heating and air conditioning replacement credit (a) In general 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 lesser of— (1) the sum of the applicable qualified property amounts for any qualified property placed in service by the individual during such taxable year, or (2) $1,500. (b) Applicable qualified property amount For any qualified property, the applicable qualified property amount shall be equal to the lesser of— (1) 50 percent of the amount paid or incurred by the individual for such qualified property, or (2) $500. (c) Qualified property The term qualified property means a furnace, boiler, condensing water heater, central air conditioning unit, heat pump, or biomass property which— (1) meets the requirements of the Energy Star program which are in effect at the time that the property was placed in service, (2) is installed according to applicable ACCA–QI standards which are in effect at the time that the property was placed in service, (3) is for use in a dwelling unit which is located in the United States and used as a residence by the individual, and (4) is reasonably expected to remain in service in such dwelling unit for not less than 5 years.