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<dc:title>116 HR 7330 IH: Growing Renewable Energy and Efficiency Now Act of 2020</dc:title>
<dc:publisher>U.S. House of Representatives</dc:publisher>
<dc:date>2020-06-25</dc:date>
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<dc:language>EN</dc:language>
<dc:rights>Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.</dc:rights>
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<distribution-code display="yes">I</distribution-code><congress display="yes">116th CONGRESS</congress><session display="yes">2d Session</session><legis-num display="yes">H. R. 7330</legis-num><current-chamber>IN THE HOUSE OF REPRESENTATIVES</current-chamber><action display="yes"><action-date date="20200625">June 25, 2020</action-date><action-desc><sponsor name-id="T000460">Mr. Thompson of California</sponsor> (for himself, <cosponsor name-id="N000015">Mr. Neal</cosponsor>, <cosponsor name-id="L000287">Mr. Lewis</cosponsor>, <cosponsor name-id="D000399">Mr. Doggett</cosponsor>, <cosponsor name-id="L000557">Mr. Larson of Connecticut</cosponsor>, <cosponsor name-id="B000574">Mr. Blumenauer</cosponsor>, <cosponsor name-id="K000188">Mr. Kind</cosponsor>, <cosponsor name-id="P000096">Mr. Pascrell</cosponsor>, <cosponsor name-id="D000096">Mr. Danny K. Davis of Illinois</cosponsor>, <cosponsor name-id="S001156">Ms. Sánchez</cosponsor>, <cosponsor name-id="H001038">Mr. Higgins of New York</cosponsor>, <cosponsor name-id="S001185">Ms. Sewell of Alabama</cosponsor>, <cosponsor name-id="D000617">Ms. DelBene</cosponsor>, <cosponsor name-id="C001080">Ms. Judy Chu of California</cosponsor>, <cosponsor name-id="M001160">Ms. Moore</cosponsor>, <cosponsor name-id="K000380">Mr. Kildee</cosponsor>, <cosponsor name-id="B001296">Mr. Brendan F. Boyle of Pennsylvania</cosponsor>, <cosponsor name-id="B001292">Mr. Beyer</cosponsor>, <cosponsor name-id="E000296">Mr. Evans</cosponsor>, <cosponsor name-id="S001190">Mr. Schneider</cosponsor>, <cosponsor name-id="S001201">Mr. Suozzi</cosponsor>, <cosponsor name-id="P000613">Mr. Panetta</cosponsor>, <cosponsor name-id="M001202">Mrs. Murphy of Florida</cosponsor>, <cosponsor name-id="G000585">Mr. Gomez</cosponsor>, <cosponsor name-id="H001066">Mr. Horsford</cosponsor>, <cosponsor name-id="L000593">Mr. Levin of California</cosponsor>, <cosponsor name-id="L000579">Mr. Lowenthal</cosponsor>, <cosponsor name-id="C001111">Mr. Crist</cosponsor>, <cosponsor name-id="T000469">Mr. Tonko</cosponsor>, <cosponsor name-id="C001068">Mr. Cohen</cosponsor>, <cosponsor name-id="K000382">Ms. Kuster of New Hampshire</cosponsor>, <cosponsor name-id="R000616">Mr. Rouda</cosponsor>, <cosponsor name-id="B001278">Ms. Bonamici</cosponsor>, <cosponsor name-id="B001285">Ms. Brownley of California</cosponsor>, <cosponsor name-id="H001080">Ms. Haaland</cosponsor>, <cosponsor name-id="D000482">Mr. Michael F. Doyle of Pennsylvania</cosponsor>, <cosponsor name-id="T000193">Mr. Thompson of Mississippi</cosponsor>, <cosponsor name-id="C001078">Mr. Connolly</cosponsor>, <cosponsor name-id="H000324">Mr. Hastings</cosponsor>, <cosponsor name-id="W000800">Mr. Welch</cosponsor>, <cosponsor name-id="E000215">Ms. Eshoo</cosponsor>, <cosponsor name-id="N000191">Mr. Neguse</cosponsor>, <cosponsor name-id="S000248">Mr. Serrano</cosponsor>, <cosponsor name-id="C001112">Mr. Carbajal</cosponsor>, <cosponsor name-id="M001163">Ms. Matsui</cosponsor>, <cosponsor name-id="T000472">Mr. Takano</cosponsor>, <cosponsor name-id="H001081">Mrs. Hayes</cosponsor>, and <cosponsor name-id="S001200">Mr. Soto</cosponsor>) introduced the following bill; which was referred to the <committee-name committee-id="HWM00">Committee on Ways and Means</committee-name></action-desc></action><legis-type>A BILL</legis-type><official-title display="yes">To amend the Internal Revenue Code of 1986 to provide incentives for renewable energy and energy efficiency, and for other purposes.</official-title></form><legis-body id="HEE4A227BAB6347C697F249E12BD86E17" style="OLC"><section id="H23CF53E81CD54C358043C6D9AD6C3DA6" section-type="section-one"><enum>1.</enum><header>Short title; etc</header><subsection id="HA8039A8972184882B5EC462DCBB659C5"><enum>(a)</enum><header>Short title</header><text display-inline="yes-display-inline">This Act may be cited as the <quote><short-title>Growing Renewable Energy and Efficiency Now Act of 2020</short-title></quote> or the <quote><short-title>GREEN Act of 2020</short-title></quote>.</text></subsection><subsection id="H62140FFC36D64B23943869969375E1B9"><enum>(b)</enum><header>Table of contents</header><text>The table of contents of this Act is as follows:</text><toc container-level="legis-body-container" quoted-block="no-quoted-block" lowest-level="section" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded"><toc-entry idref="H23CF53E81CD54C358043C6D9AD6C3DA6" level="section">Sec. 1. Short title; etc.</toc-entry><toc-entry idref="H088C1C8129A6467485EEDB648CB09BC7" level="title">Title I—Renewable Electricity and Reducing Carbon Emissions</toc-entry><toc-entry idref="H742070A0E1D44978A6A9DFC7D8BC004B" level="section">Sec. 101. Extension of credit for electricity produced from certain renewable resources.</toc-entry><toc-entry idref="HF69F2BA3653B4E468DC3A21B6B001184" level="section">Sec. 102. Extension and modification of energy credit.</toc-entry><toc-entry idref="H7A736FA808394146839AF2D60BF0A9CA" level="section">Sec. 103. Extension of credit for carbon oxide sequestration.</toc-entry><toc-entry idref="H30D6EEC1FE7548CB9314958497F19F96" level="section">Sec. 104. Elective payment for energy property and electricity produced from certain renewable resources, etc.</toc-entry><toc-entry idref="HDD758822FBC14D1799FC4112A432FF14" level="section">Sec. 105. Extension of energy credit for offshore wind facilities.</toc-entry><toc-entry idref="H2E5A982DF3984435B8D355917904DF44" level="section">Sec. 106. Green energy publicly traded partnerships.</toc-entry><toc-entry idref="H716A53EDBFAA4E4E89F85DEFFCFC8DDD" level="title">Title II—Renewable Fuels</toc-entry><toc-entry idref="HE94490AEBAB347FCB5E3889D551CED44" level="section">Sec. 201. Biodiesel and renewable diesel.</toc-entry><toc-entry idref="HE2498E0AA93E4995BA04ADADE23EB757" level="section">Sec. 202. Extension of excise tax credits relating to alternative fuels.</toc-entry><toc-entry idref="HCE81E55846474895B09F72446A336249" level="section">Sec. 203. Extension of second generation biofuel incentives.</toc-entry><toc-entry idref="H91DEF974B29943159918408284CAFB43" level="title">Title III—Green Energy and Efficiency Incentives for Individuals</toc-entry><toc-entry idref="H83DBE4E0C0254E02844DC14DDAFEBB87" level="section">Sec. 301. Extension, increase, and modifications of nonbusiness energy property credit.</toc-entry><toc-entry idref="H95EBF53619D64A9AB3E1F34D1DBABAAC" level="section">Sec. 302. Residential energy efficient property.</toc-entry><toc-entry idref="H05B41AB8E3334BB887FD0260E9786EF6" level="section">Sec. 303. Energy efficient commercial buildings deduction.</toc-entry><toc-entry idref="H0F864BF8D9FD4887842CDE3A2817C575" level="section">Sec. 304. Extension, increase, and modifications of new energy efficient home credit.</toc-entry><toc-entry idref="H3B358FE9F68D4CC8B47E03D687D16233" level="section">Sec. 305. Modifications to income exclusion for conservation subsidies.</toc-entry><toc-entry idref="H2E8DF6B725E04B24A67D447A9CDD36B9" level="title">Title IV—Greening the Fleet and Alternative Vehicles</toc-entry><toc-entry idref="H889D695E75CA4166A3BDECF74F87F367" level="section">Sec. 401. Modification of limitations on new qualified plug-in electric drive motor vehicle credit.</toc-entry><toc-entry idref="H26A20A1A2F92485AA5FEF6F431C23A8B" level="section">Sec. 402. Credit for previously-owned qualified plug-in electric drive motor vehicles.</toc-entry><toc-entry idref="HAD250C1EBC2D4680BD3023BF69C6F2BF" level="section">Sec. 403. Credit for zero-emission heavy vehicles and zero-emission buses.</toc-entry><toc-entry idref="H51DEA4678E7E4AE2BE32A449200DDEC4" level="section">Sec. 404. Qualified fuel cell motor vehicles.</toc-entry><toc-entry idref="HB49479D2CC424064A45EBCEF303BC9AE" level="section">Sec. 405. Alternative fuel refueling property credit.</toc-entry><toc-entry idref="H41F713A9A69745D3AF3A327248BD9A39" level="section">Sec. 406. Modification of employer-provided fringe benefits for bicycle commuting.</toc-entry><toc-entry idref="H6B20B486BFF845C3AC437C9918F8982E" level="title">Title V—Investment in the Green Workforce</toc-entry><toc-entry idref="H3C660AB04234465D93ED4F581DC43A48" level="section">Sec. 501. Extension of the advanced energy project credit.</toc-entry><toc-entry idref="H0A3CF5C2E7A24BF2B3476AC41B80E094" level="section">Sec. 502. Labor costs of installing mechanical insulation property.</toc-entry><toc-entry idref="HE6B0962781084D47985AF0A86A7BB68F" level="section">Sec. 503. Labor standards for certain energy jobs.</toc-entry><toc-entry idref="HC10E91CB9B0F47F19D41D3B8D441C41B" level="title">Title VI—Environmental Justice</toc-entry><toc-entry idref="HFAFA4F5B4083451EA643C466D77A995D" level="section">Sec. 601. Qualified environmental justice program credit.</toc-entry><toc-entry idref="H3F1E25B9EB0E48FFB2998213800642B6" level="title">Title VII—Treasury report on data from the Greenhouse Gas Reporting Program</toc-entry><toc-entry idref="HE2B21ECE18C64A68A7EDE08F0F0CD404" level="section">Sec. 701. Report on Greenhouse Gas Reporting Program.</toc-entry></toc></subsection><subsection id="H9F9BEE667D254C8FB58A36F1C7215A3D"><enum>(c)</enum><header>Amendment of 1986 code</header><text>Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.</text></subsection></section><title id="H088C1C8129A6467485EEDB648CB09BC7"><enum>I</enum><header>Renewable Electricity and Reducing Carbon Emissions</header><section id="H742070A0E1D44978A6A9DFC7D8BC004B"><enum>101.</enum><header>Extension of credit for electricity produced from certain renewable resources</header><subsection id="H144E89144EAC4ACCB71315F160D060BA"><enum>(a)</enum><header>In general</header><text>The following provisions of section 45(d) are each amended by striking <quote>January 1, 2021</quote> each place it appears and inserting <quote>January 1, 2026</quote>:</text><paragraph id="H2D1EE45308FC45A3A53ABD795592A006"><enum>(1)</enum><text>Paragraph (2)(A).</text></paragraph><paragraph id="H4C572A12DA734BA3AECBD0A02F407E8E"><enum>(2)</enum><text>Paragraph (3)(A).</text></paragraph><paragraph id="HB7696AA4562A4AA8AD427633CD3DCFD7"><enum>(3)</enum><text>Paragraph (6).</text></paragraph><paragraph id="HBB5386C0E5BC492ABF2E5F0D95FBD446"><enum>(4)</enum><text>Paragraph (7).</text></paragraph><paragraph id="HC7881E3E7B244612A71DB9E938D66F96"><enum>(5)</enum><text>Paragraph (9).</text></paragraph><paragraph id="H8D23825E1E2B49AEA447F2131766C03E"><enum>(6)</enum><text>Paragraph (11)(B).</text></paragraph></subsection><subsection id="H528A74BED9AC4E5AB3236A9D83778768"><enum>(b)</enum><header>Extension of election To treat qualified facilities as energy property</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(5)(C)(ii)</external-xref> is amended by striking <quote>January 1, 2021</quote> and inserting <quote>January 1, 2026</quote>.</text></subsection><subsection id="H50451D64E9914E28A24CE2571B4987D2" commented="no"><enum>(c)</enum><header>Application of extension to wind facilities</header><paragraph id="H6D063A669FD64C70BDC6307443D85AF7" commented="no"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45">Section 45(d)(1)</external-xref> is amended by striking <quote>January 1, 2021</quote> and inserting <quote>January 1, 2026</quote>.</text></paragraph><paragraph id="H86D7E78EAD884234B3629C82F7419475" commented="no"><enum>(2)</enum><header>Application of phaseout percentage</header><subparagraph id="HE877B34F71774423831C1AFF018F1353"><enum>(A)</enum><header>Renewable electricity production credit</header><text>Sections 45(b)(5)(D) is amended by striking <quote>and before January 1, 2021,</quote>. </text></subparagraph><subparagraph id="H46975B2E29154C6B832676281FEB572B"><enum>(B)</enum><header>Energy credit</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(5)(E)(iv)</external-xref> is amended by striking <quote>and before January 1, 2021,</quote>.</text></subparagraph></paragraph></subsection><subsection id="HDB977F93B36346518CE2371A90EA84E8"><enum>(d)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to facilities the construction of which begins after December 31, 2020.</text></subsection></section><section id="HF69F2BA3653B4E468DC3A21B6B001184" display-inline="no-display-inline" section-type="subsequent-section"><enum>102.</enum><header>Extension and modification of energy credit</header><subsection id="H66308383C7DD41D9A95C99CF9709FB8A"><enum>(a)</enum><header>Extension of credit</header><text display-inline="yes-display-inline">The following provisions of section 48 are each amended by striking <quote>January 1, 2022</quote> each place it appears and inserting <quote>January 1, 2027</quote>:</text><paragraph id="HE2A9620998364CA7B69D53C5B3829B87"><enum>(1)</enum><text>Subsection (a)(3)(A)(ii).</text></paragraph><paragraph id="H318EB0D63CEB413BB7CF2D8C0294FF2E"><enum>(2)</enum><text>Subsection (a)(3)(A)(vii).</text></paragraph><paragraph id="HA6CEF88C85F14887883D22A4FEA30808"><enum>(3)</enum><text>Subsection (c)(1)(D).</text></paragraph><paragraph id="HDC3E84561B68403F9568E95C2F3B7C4E"><enum>(4)</enum><text>Subsection (c)(2)(D).</text></paragraph><paragraph id="H74951B1C6AD242719FDEBEAB6CAC94D9"><enum>(5)</enum><text>Subsection (c)(3)(A)(iv).</text></paragraph><paragraph id="HAA9C9A34FA894F6CBB1638572082A1D8"><enum>(6)</enum><text>Subsection (c)(4)(C).</text></paragraph></subsection><subsection id="H2E367121334E4BA6BB629359D8487639" commented="no"><enum>(b)</enum><header>Phaseout of credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)</external-xref> is amended—</text><paragraph id="HD181906BE0C0480A95F63B0C6C9D0208" commented="no"><enum>(1)</enum><text>by striking <quote>December 31, 2019</quote> in paragraphs (6)(A)(i) and (7)(A)(i) and inserting <quote>December 31, 2025</quote>,</text></paragraph><paragraph id="H3BB6DE427B584172B1C3F4DCF6FC8246" commented="no"><enum>(2)</enum><text>by striking <quote>December 31, 2020</quote> in paragraphs (6)(A)(ii) and (7)(A)(ii) and inserting <quote>December 31, 2026</quote>,</text></paragraph><paragraph id="HF725218B60A8487C8B20FD33DAE9BF2B" commented="no"><enum>(3)</enum><text>by striking <quote>January 1, 2021</quote> in paragraphs (6)(A)(i) and (7)(A)(i) and inserting <quote>January 1, 2027</quote>,</text></paragraph><paragraph id="HA64B1A928E594E328B5DC9BCDE4D6317" commented="no"><enum>(4)</enum><text display-inline="yes-display-inline">by striking <quote>January 1, 2022</quote> each place it appears in paragraphs (6)(A), (6)(B), and (7)(A) and inserting <quote>January 1, 2028</quote>, and</text></paragraph><paragraph id="HEEF1642F3EC2427DBD8B87BA41FDFD3E" commented="no"><enum>(5)</enum><text>by striking <quote>January 1, 2024</quote> in paragraphs (6)(B) and (7)(B) and inserting <quote>January 1, 2030</quote>.</text></paragraph></subsection><subsection id="H3FA364928AA841D5997B615CF9404E59"><enum>(c)</enum><header>30 percent credit for solar and geothermal</header><paragraph id="HB61B3298842E46BA94B5EB17F46D4F4D" commented="no"><enum>(1)</enum><header>Extension for solar</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(2)(A)(i)(II)</external-xref> is amended by striking <quote>January 1, 2022</quote> and inserting <quote>January 1, 2028</quote>.</text></paragraph><paragraph id="H32EB4F2F6DD647B89454B36C91C8490C"><enum>(2)</enum><header>Application to geothermal</header><subparagraph id="H13B3CD743CB94154A02FD4D4281880C8"><enum>(A)</enum><header>In general</header><text>Paragraphs (2)(A)(i)(II), (6)(A), and (6)(B) of section 48(a) are each amended by striking <quote>paragraph (3)(A)(i)</quote> and inserting <quote>clause (i) or (iii) of paragraph (3)(A)</quote>.</text></subparagraph><subparagraph id="H40EDD4D333E3421E95CE288F06BF475B"><enum>(B)</enum><header>Conforming amendment</header><text>The heading of <external-xref legal-doc="usc" parsable-cite="usc/26/48">section 48(a)(6)</external-xref> is amended by inserting <quote><header-in-text level="paragraph" style="OLC">and geothermal</header-in-text></quote> after <quote><header-in-text level="paragraph" style="OLC">solar energy</header-in-text></quote>. </text></subparagraph></paragraph></subsection><subsection id="H43FDEF45E8A145639DA13EF18A46D604"><enum>(d)</enum><header>Energy storage technologies; waste energy recovery property; qualified biogas property</header><paragraph id="H3F466001781240F1896F4D47DA2F8461"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(3)(A)</external-xref> is amended by striking <quote>or</quote> at the end of clause (vi), and by adding at the end the following new clauses:</text><quoted-block act-name="" id="H658E90E508254FCEBC4EC9742BE3BEE5" style="OLC"><clause id="H4A437E135DBA44C69D0E1C9D9A128D08"><enum>(viii)</enum><text display-inline="yes-display-inline">energy storage technology,</text></clause><clause id="H10C87EA2A97E4A3F80954E7777D08C29"><enum>(ix)</enum><text display-inline="yes-display-inline">waste energy recovery property, or</text></clause><clause id="H3D6EBB4508D94754A8293AB8C2A7059B"><enum>(x)</enum><text display-inline="yes-display-inline">qualified biogas property, </text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H7333417C93AD470399D11E8CFC2BF3AC"><enum>(2)</enum><header>Application of 30 percent credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(2)(A)(i)</external-xref> is amended by striking <quote>and</quote> at the end of subclauses (III) and (IV) and adding at the end the following new subclauses:</text><quoted-block style="OLC" id="HD1B898AB525245CEA09129C0554A65A2" display-inline="no-display-inline"><subclause id="H87A28341A9C047978B02DABDE1E1678D"><enum>(V)</enum><text display-inline="yes-display-inline">energy storage technology,</text></subclause><subclause id="HA1013D2379044790A38DF333E36F4A2C"><enum>(VI)</enum><text display-inline="yes-display-inline">waste energy recovery property, and</text></subclause><subclause id="H035552FC2E2C4ED8A21018232A9694A0"><enum>(VII)</enum><text display-inline="yes-display-inline">qualified biogas property, and</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H370007FE114E4F168AE902F91BE085F0"><enum>(3)</enum><header>Application of phaseout</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(7)</external-xref> is amended—</text><subparagraph id="H59B86946ACCA418498DACA497F764056"><enum>(A)</enum><text>by inserting <quote>energy storage technology, waste energy recovery property, qualified biogas property,</quote> after <quote>qualified small wind property,</quote>, and</text></subparagraph><subparagraph id="H22D84684053A4D05841D1EE7D44BA3AF"><enum>(B)</enum><text>by striking <quote><header-in-text level="paragraph" style="OLC">fiber-optic solar, qualified fuel cell, and qualified small wind</header-in-text></quote> in the heading thereof and inserting <quote><header-in-text level="paragraph" style="OLC">certain other</header-in-text></quote>. </text></subparagraph></paragraph><paragraph id="HA6433C7C338F4B188E5F7C160320F796"><enum>(4)</enum><header>Definitions</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(c)</external-xref> is amended by adding at the end the following new paragraphs: </text><quoted-block style="OLC" id="H9C7101701D204510860D65FF7A9B5B48" display-inline="no-display-inline"><paragraph id="H2775FC370E4746B8A96D011ED2DDA551" display-inline="no-display-inline"><enum>(5)</enum><header>Energy storage technology</header><subparagraph id="HD0D95AF8FA5F4AF8A9B54C920FE99EF7"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <quote>energy storage technology</quote> means equipment (other than equipment primarily used in the transportation of goods or individuals and not for the production of electricity) which—</text><clause id="H816128C2A97545C4AC9AC27AE4CF1CD9"><enum>(i)</enum><text>uses batteries, compressed air, pumped hydropower, hydrogen storage (including hydrolysis and electrolysis), thermal energy storage, regenerative fuel cells, flywheels, capacitors, superconducting magnets, or other technologies identified by the Secretary, after consultation with the Secretary of Energy, to store energy for conversion to electricity and has a capacity of not less than 5 kilowatt hours, or</text></clause><clause id="HE28EA7FE2C03407CB12624E3B7BA36B3"><enum>(ii)</enum><text>stores thermal energy to heat or cool (or provide hot water for use in) a structure (other than for use in a swimming pool).</text></clause></subparagraph><subparagraph id="HE933E3C1059C4AE88F35F1CB9BA23392"><enum>(B)</enum><header>Termination</header><text display-inline="yes-display-inline">The term <quote>energy storage technology</quote> shall not include any property the construction of which does not begin before January 1, 2028.</text></subparagraph></paragraph><paragraph id="H66A38B80703743AF8D1DC33D6D2C09E4"><enum>(6)</enum><header>Waste energy recovery property</header><subparagraph id="H40E807E31CDB43529D5D2E3BF55BCDE3"><enum>(A)</enum><header>In general</header><text>The term <quote>waste energy recovery property</quote> means property that generates electricity solely from heat from buildings or equipment if the primary purpose of such building or equipment is not the generation of electricity.</text></subparagraph><subparagraph id="H360C0AC303EE4BD5A08B454B7AC3065A"><enum>(B)</enum><header>Capacity limitation</header><text display-inline="yes-display-inline">The term <quote>waste energy recovery property</quote> shall not include any property which has a capacity in excess of 50 megawatts.</text></subparagraph><subparagraph id="H80C4515A684243A9BB4F4904E72C9BD2"><enum>(C)</enum><header>No double benefit</header><text display-inline="yes-display-inline">Any waste energy recovery property (determined without regard to this subparagraph) which is part of a system which is a combined heat and power system property shall not be treated as waste energy recovery property for purposes of this section unless the taxpayer elects to not treat such system as a combined heat and power system property for purposes of this section. </text></subparagraph><subparagraph id="H7E09CBBEE6734D2B9C10D46EFA8673C7"><enum>(D)</enum><header>Termination</header><text display-inline="yes-display-inline">The term <quote>waste energy recovery property</quote> shall not include any property the construction of which does not begin before January 1, 2028. </text></subparagraph></paragraph><paragraph id="H0EFF54A9C63F4C16A551FA60BF601922"><enum>(7)</enum><header>Qualified biogas property</header><subparagraph id="H37018D9E90B04598A499863C90B88144"><enum>(A)</enum><header>In general</header><text>The term <quote>qualified biogas property</quote> means property comprising a system which—</text><clause id="HD7BB6F6E0CF74CC79AAA64CD08A11A52"><enum>(i)</enum><text>converts biomass (as defined in section 45K(c)(3)) into a gas which—</text><subclause id="HFABEDA6A375B46679674893065C0A6C6"><enum>(I)</enum><text>consists of not less than 52 percent methane, or</text></subclause><subclause id="H3D656288DE224D1883AFF83B69D41C7B"><enum>(II)</enum><text>is concentrated by such system into a gas which consists of not less than 52 percent methane, and</text></subclause></clause><clause id="H61DA4FCF84CC4D5FA6A8640C0A11A385"><enum>(ii)</enum><text>captures such gas for productive use.</text></clause></subparagraph><subparagraph id="H852D9578AFFF43578AC1E833BB526A57"><enum>(B)</enum><header>Inclusion of cleaning and conditioning property</header><text display-inline="yes-display-inline">The term <quote>qualified biogas property</quote> includes any property which is part of such system which cleans or conditions such gas.</text></subparagraph><subparagraph id="HC0F12C67F15E49AB8C2E61C50E3CC870"><enum>(C)</enum><header>Termination</header><text display-inline="yes-display-inline">The term <quote>qualified biogas property</quote> shall not include any property the construction of which does not begin before January 1, 2028.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H529336456E094899B881A4801AFCB7EE"><enum>(5)</enum><header>Denial Of Double Benefit For Qualified Biogas Property</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45">Section 45(e)</external-xref> is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" id="H73A986EC28364D63B98AD5CA014C013C" display-inline="no-display-inline"><paragraph id="HB95B1D498A28431487016700C874DCA8"><enum>(12)</enum><header>Coordination with energy credit for qualified biogas property</header><text display-inline="yes-display-inline">The term <quote>qualified facility</quote> shall not include any facility which produces electricity from gas produced by qualified biogas property (as defined in section 48(c)(7)) if a credit is determined under section 48 with respect to such property for the taxable year or any prior taxable year.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="HBD75652D0F544C95B5BFE703762D6712"><enum>(e)</enum><header>Fuel cells using electromechanical processes</header><paragraph id="H788ABFC5500B4F8EA882CE3E5CBA2D23"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(c)(1)</external-xref> is amended—</text><subparagraph id="HB0FD4F758A114C1185EC2769AB4F5212"><enum>(A)</enum><text>in subparagraph (A)(i)—</text><clause id="H19556844B0EB4F2087D797D7C2977EE4"><enum>(i)</enum><text>by inserting <quote>or electromechanical</quote> after <quote>electrochemical</quote>, and</text></clause><clause id="H8865F5E697C447F0AA145914CE86A411" commented="no"><enum>(ii)</enum><text>by inserting <quote>(1 kilowatt in the case of a fuel cell power plant with a linear generator assembly)</quote> after <quote>0.5 kilowatt</quote>, and</text></clause></subparagraph><subparagraph id="HDCC04AA06CEB41239E3DC34E4AD9FBC8"><enum>(B)</enum><text>in subparagraph (C)—</text><clause id="H490C261913464ECBAABE6E50A8BD82EA"><enum>(i)</enum><text>by inserting <quote>, or linear generator assembly,</quote> after <quote>a fuel cell stack assembly</quote>, and </text></clause><clause id="HA56AEF7EC8DE43FA989BFD56FFF81E8A"><enum>(ii)</enum><text>by inserting <quote>or electromechanical</quote> after <quote>electrochemical</quote>.</text></clause></subparagraph></paragraph><paragraph id="H6B4421CA085A448B8A18AECCDFF6924A"><enum>(2)</enum><header>Linear generator assembly limitation</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(c)(1)</external-xref> is amended by redesignating subparagraph (D) as subparagraph (E) and by inserting after subparagraph (C) the following new subparagraph: </text><quoted-block style="OLC" id="HBFAC54B5618645EEB885883D2BB83DD8" display-inline="no-display-inline"><subparagraph id="HC0803DB822104827AE4241A162808D80" commented="no"><enum>(D)</enum><header>Linear generator assembly</header><text display-inline="yes-display-inline">The term <quote>linear generator assembly</quote> does not include any assembly which contains rotating parts.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H4C891462C5B94B879B815024E0CCCB5C"><enum>(f)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to periods after December 31, 2020, under rules similar to the rules of section 48(m) as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990.</text></subsection></section><section id="H7A736FA808394146839AF2D60BF0A9CA"><enum>103.</enum><header>Extension of credit for carbon oxide sequestration</header><subsection id="HCF50E4BD55494E4098D2349A3C7627A7"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/45Q">Section 45Q(d)(1)</external-xref> is amended by striking <quote>January 1, 2024</quote> and inserting <quote>January 1, 2026</quote>.</text></subsection><subsection id="H2EFAFB99337E4386A07B448A5611F9A9"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section applies to facilities the construction of which begins after December 31, 2023.</text></subsection></section><section id="H30D6EEC1FE7548CB9314958497F19F96" commented="no"><enum>104.</enum><header>Elective payment for energy property and electricity produced from certain renewable resources, etc</header><subsection id="HFA929321AC4A4406AC3A7F02AC587E5E" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/65">chapter 65</external-xref> is amended by adding at the end the following new section:</text><quoted-block display-inline="no-display-inline" id="H62C23E4A13A743A883E6550996247715" style="OLC"><section id="H804AE399FC5C45DF8B425E2AF6DF546A" commented="no"><enum>6431.</enum><header>Elective payment for energy property, electricity produced from certain renewable resources, etc., and carbon oxide sequestration</header><subsection commented="no" id="H5749481C70B746239D0D96F964F07633"><enum>(a)</enum><header>Energy property</header><text display-inline="yes-display-inline">In the case of a taxpayer making an election (at such time and in such manner as the Secretary may provide) under this section with respect to any portion of an applicable credit, such taxpayer shall be treated as making a payment against the tax imposed by subtitle A for the taxable year equal to—</text><paragraph id="H210A6F2C0D674CF788233B32A877038B"><enum>(1)</enum><text display-inline="yes-display-inline">in the case of an Indian tribal government, the amount of such portion, and</text></paragraph><paragraph id="H93C8BD5B1B3E4E5C8148BC63E1AF0F8C"><enum>(2)</enum><text>in the case of any other taxpayer, 85 percent of such amount. </text></paragraph></subsection><subsection id="H00F65F47E3F344F898C2DE6829CA67DC"><enum>(b)</enum><header>Definitions and special rules</header><text>For purposes of this section—</text><paragraph id="HD0E69FEA53B84AB2BA8EBFC6C127D02A"><enum>(1)</enum><header>Governmental entities treated as taxpayers</header><text>In the case of an election under this section—</text><subparagraph id="HD93D81C7118D48969524F26F8A87AB83"><enum>(A)</enum><text>any State or local government, or a political subdivision thereof, or</text></subparagraph><subparagraph id="H456BB21DDAEE4EEA9280632A2B742E0D" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">an Indian tribal government,</text></subparagraph><continuation-text continuation-text-level="paragraph">shall be treated as a taxpayer for purposes of this section and determining any applicable credit. </continuation-text></paragraph><paragraph id="H5B61CAE2A20D4CA190773DCA6ED7535D"><enum>(2)</enum><header>Applicable credit</header><text display-inline="yes-display-inline">The term <quote>applicable credit</quote> means each of the following credits that would (without regard to this section) be determined with respect to the taxpayer:</text><subparagraph id="HA49CC71222554482BACB25177E997AF7"><enum>(A)</enum><text>A energy credit under section 48.</text></subparagraph><subparagraph id="H2457CB0203A04CB8BA02835D4292614A"><enum>(B)</enum><text display-inline="yes-display-inline">A renewable electricity production credit under section 45.</text></subparagraph><subparagraph id="H73A26D7D9D9E4EE0B63B8106F1B91662"><enum>(C)</enum><text display-inline="yes-display-inline">A carbon oxide sequestration credit under section 45Q.</text></subparagraph></paragraph><paragraph id="H9BAA210604F24BF9889F90625B37CC7F"><enum>(3)</enum><header>Indian tribal government</header><text display-inline="yes-display-inline">The term <quote>Indian tribal government</quote> shall have the meaning given such term by section 139E.</text></paragraph><paragraph id="H86B2B4FFFAA74E8ABE74DEFA696E8089" commented="no"><enum>(4)</enum><header>Timing</header><text display-inline="yes-display-inline">The payment described in subparagraph (A) shall be treated as made on—</text><subparagraph id="H57CB1860B0E54C7087F9DAF70B6D6646"><enum>(A)</enum><text>in the case of any government, or political subdivision, to which paragraph (1) applies and for which no return is required under section 6011 or 6033(a), the later of the date that a return would be due under section 6033(a) if such government or subdivision were described in that section or the date on which such government or subdivision submits a claim for credit or refund (at such time and in such manner as the Secretary shall provide), and</text></subparagraph><subparagraph id="H8F672A3F052B4DDC88CD82EC67539CCE"><enum>(B)</enum><text>in any other case, the later of the due date of the return of tax for the taxable year or the date on which such return is filed.</text></subparagraph></paragraph><paragraph id="HA3C8B76B17C04D9C893A77B0E9465DCE"><enum>(5)</enum><header>Waiver of special rules</header><text>In the case of an election under this section, the determination of any applicable credit shall be without regard to paragraphs (3) and (4)(A)(i) of section 50(b).</text></paragraph></subsection><subsection id="HDDE0A4CB05BC43DABD0C2A119F46BEE3" commented="no"><enum>(c)</enum><header>Exclusion from gross income</header><text>Gross income of the taxpayer shall be determined without regard to this section.</text></subsection><subsection id="HF4F7235B34664CE4BA80DB35871D6585" commented="no" display-inline="no-display-inline"><enum>(d)</enum><header>Denial of double benefit</header><text display-inline="yes-display-inline">Solely for purposes of section 38, in the case of a taxpayer making an election under this section, the energy credit determined under section 45 or the renewable electricity production credit determined under section 48 shall be reduced by the amount of the portion of such credit with respect to which the taxpayer makes such election. </text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H8877FE2755B84DC99F818B2AE9E2188B" commented="no"><enum>(b)</enum><header>Clerical amendment</header><text display-inline="yes-display-inline">The table of sections for subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/65">chapter 65</external-xref> is amended by adding at the end the following new item:</text><quoted-block style="OLC" id="H42FE6F7E3B5E4CEC8560A2522499D6A0" display-inline="no-display-inline"><toc container-level="quoted-block-container" quoted-block="no-quoted-block" lowest-level="section" idref="H62C23E4A13A743A883E6550996247715" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded"><toc-entry idref="H804AE399FC5C45DF8B425E2AF6DF546A" level="section">Sec. 6431. Elective payment for energy property, electricity produced from certain renewable resources, etc., and carbon oxide sequestration.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HAC71109E04C545708DB4566BF4B86AFE" commented="no"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to property originally placed in service after the date of the enactment of this Act.</text></subsection></section><section id="HDD758822FBC14D1799FC4112A432FF14"><enum>105.</enum><header>Extension of energy credit for offshore wind facilities</header><subsection id="HAA3E269E6A304A5C9D0D762CE05AB601"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(5)</external-xref> is amended by adding at the end the following new subparagraph: </text><quoted-block style="OLC" id="H86F534FB722B4D1D95547D10CE5657BE" display-inline="no-display-inline"><subparagraph id="H5AF138B61399415F8EEA1FA008A579EE"><enum>(F)</enum><header>Qualified offshore wind facilities</header><clause id="H3B9F25A35E9D4602BF3FBC0416FDA75E"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any qualified offshore wind facility—</text><subclause id="H675286931C59486CBD3B1220F7463691"><enum>(I)</enum><text>subparagraph (C)(ii) shall be applied by substituting <quote>January 1 of the applicable year (as determined under subparagraph (F)(ii))</quote> for <quote>January 1, 2026</quote>, </text></subclause><subclause id="HBB3CEEFBB3FE41079AB1DDEF9B47F5BC"><enum>(II)</enum><text>subparagraph (E) shall not apply, and </text></subclause><subclause id="HF10E915D66F64F928CF37DF90E9ACF3B"><enum>(III)</enum><text>for purposes of this paragraph, section 45(d)(1) shall be applied by substituting <quote>January 1 of the applicable year (as determined under section 48(a)(5)(F)(ii))</quote>’ for <quote>January 1, 2026</quote>.</text></subclause></clause><clause id="H734F886C73484360BD2411D02C4B8998"><enum>(ii)</enum><header>Applicable year</header><text display-inline="yes-display-inline">For purposes of this subparagraph, the term <quote>applicable year</quote> means the later of—</text><subclause id="HFBFCAC1837924E0D9304515822739C74"><enum>(I)</enum><text>calendar year 2025, or </text></subclause><subclause id="HCDBC1B29C30C4C4D9E18EB5A70D2D4A5"><enum>(II)</enum><text>the calendar year subsequent to the first calendar year in which the Secretary, after consultation with the Secretary of Energy, determines that the United States has increased its offshore wind capacity by not less than 3,000 megawatts as compared to such capacity on January 1, 2021. </text></subclause><continuation-text continuation-text-level="clause">For purposes of subclause (II), the Secretary shall not include any increase in offshore wind capacity which is attributable to any facility the construction of which began before January 1, 2021. </continuation-text></clause><clause id="HA6571DC3A7B04D55926BA010C1769288"><enum>(iii)</enum><header>Qualified offshore wind facility</header><text display-inline="yes-display-inline">For purposes of this subparagraph, the term <quote>qualified offshore wind facility</quote> means a qualified facility (within the meaning of section 45) described in paragraph (1) of section 45(d) (determined without regard to any date by which the construction of the facility is required to begin) which is located in the inland navigable waters of the United States or in the coastal waters of the United States.</text></clause><clause id="H085389037DC74F518E9F3841E62ACF41"><enum>(iv)</enum><header>Report on offshore wind capacity</header><text>On January 15, 2024, and annually thereafter until the calendar year described in clause (ii)(II), the Secretary, after consultation with the Secretary of Energy, shall issue a report to be made available to the public which discloses the increase in the offshore wind capacity of the United States, as measured in total megawatts, since January 1, 2020.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H22DAF7953B454CF7B1EEB311E752DFF5" commented="no"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to periods after December 31, 2016, under rules similar to the rules of <external-xref legal-doc="usc" parsable-cite="usc/26/48">section 48(m)</external-xref> of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).</text></subsection></section><section id="H2E5A982DF3984435B8D355917904DF44" commented="no"><enum>106.</enum><header>Green energy publicly traded partnerships</header><subsection id="HB7E4403B43D9472E8879284D34A5C331" commented="no"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/7704">Section 7704(d)(1)(E)</external-xref> is amended—</text><paragraph id="HAC7B6E5DEFDB42B98496444EAB513CBB" commented="no"><enum>(1)</enum><text>by striking <quote>income and gains derived from the exploration</quote> and inserting </text><quoted-block id="H853EB823544D420AB4A970913844DD4E" style="OLC" display-inline="yes-display-inline"><text>income and gains derived from—</text><clause id="HB160C6673EF54F1DBBDCC2EEE47A8262" commented="no"><enum>(i)</enum><text>the exploration</text></clause><after-quoted-block>,</after-quoted-block></quoted-block></paragraph><paragraph id="H23AA8A5E3CFC418DA289C7939C5DBD00" commented="no"><enum>(2)</enum><text>by inserting <quote>or</quote> before <quote>industrial source</quote>, and</text></paragraph><paragraph id="HC70A885F28D24AE7BC457C5F4858D1D9" commented="no"><enum>(3)</enum><text display-inline="yes-display-inline">by striking <quote>, or the transportation or storage</quote> and all that follows and inserting the following:</text><quoted-block style="OLC" id="H96029BC61AC64F038D5BBD7BDBAC4CDF" display-inline="no-display-inline"><clause id="HFB527517BE4F44148304AB8500C75457" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">the generation of electric power or thermal energy exclusively using any qualified energy resource (as defined in section 45(c)(1)),</text></clause><clause id="HAF4C83DC269C42498A922F9DF66B0C87" display-inline="no-display-inline" commented="no"><enum>(iii)</enum><text display-inline="yes-display-inline">the operation of energy property (as defined in section 48(a)(3), determined without regard to any date by which the construction of the facility is required to begin),</text></clause><clause id="H5AFAC273D2D9431583147BD494CA8642"><enum>(iv)</enum><text>in the case of a facility described in paragraph (3) or (7) of section 45(d) (determined without regard to any placed in service date or date by which construction of the facility is required to begin), the accepting or processing of open-loop biomass or municipal solid waste,</text></clause><clause id="H45560616178545278F5FA10FF12DC793" commented="no"><enum>(v)</enum><text display-inline="yes-display-inline">the storage of electric power or thermal energy exclusively using energy property that is energy storage property (as defined in section 48(c)(5)),</text></clause><clause id="H9BAB6944B23543EE93ED202F93A34CA1" commented="no"><enum>(vi)</enum><text display-inline="yes-display-inline">the generation, storage, or distribution of electric power or thermal energy exclusively using energy property that is combined heat and power system property (as defined in section 48(c)(3), determined without regard to subparagraph (B)(iii) thereof and without regard to any date by which the construction of the facility is required to begin),</text></clause><clause id="H1669D5308D7C44C0BFFBA7F9EE610349" commented="no"><enum>(vii)</enum><text>the transportation or storage of any fuel described in subsection (b), (c), (d), or (e) of section 6426,</text></clause><clause id="HA1799391FF9442668C1A9DE587F77375"><enum>(viii)</enum><text display-inline="yes-display-inline">the conversion of renewable biomass (as defined in subparagraph (I) of section 211(o)(1) of the Clean Air Act (as in effect on the date of the enactment of this clause)) into renewable fuel (as defined in subparagraph (J) of such section as so in effect), or the storage or transportation of such fuel, </text></clause><clause id="H7771A05B640B43AD8EA78BC5DAD8E60E" commented="no"><enum>(ix)</enum><text>the production, storage, or transportation of any fuel which—</text><subclause id="H2CACE6E6CC4242FFB528F9647E3E0A09" commented="no"><enum>(I)</enum><text>uses as its primary feedstock carbon oxides captured from an anthropogenic source or the atmosphere,</text></subclause><subclause id="H0F2CFE1744434EB7AA710869E8599EB4"><enum>(II)</enum><text display-inline="yes-display-inline">does not use as its primary feedstock carbon oxide which is deliberately released from naturally occurring subsurface springs, and</text></subclause><subclause id="HF257005AB1384FCCB3AD3CE4F0D68C15" commented="no"><enum>(III)</enum><text>is determined by the Secretary, after consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, to achieve a reduction of not less than a 60 percent in lifecycle greenhouse gas emissions (as defined in section 211(o)(1)(H) of the Clean Air Act, as in effect on the date of the enactment of this clause) compared to baseline lifecycle greenhouse gas emissions (as defined in section 211(o)(1)(C) of such Act, as so in effect),</text></subclause></clause><clause id="H45217D59465B4CF995F63C2612178D05" commented="no"><enum>(x)</enum><text>the generation of electric power from, a qualifying gasification project (as defined in section 48B(c)(1) without regard to subparagraph (C)) that is described in section 48(d)(1)(B), or</text></clause><clause id="H2D0550766AE94F88A38E0D1EFFA9E304" commented="no"><enum>(xi)</enum><text display-inline="yes-display-inline">in the case of a qualified facility (as defined in section 45Q(d), without regard to any date by which construction of the facility is required to begin) not less than 50 percent (30 percent in the case of a facility placed in service before January 1, 2021) of the total carbon oxide production of which is qualified carbon oxide (as defined in section 45Q(c))—</text><subclause id="HD79F1FA37F6F4E65A021B9D1BA8FAC86"><enum>(I)</enum><text>the generation, availability for such generation, or storage of electric power at such facility, or</text></subclause><subclause id="H964896B4816D45B794913C043D863ED6"><enum>(II)</enum><text>the capture of carbon dioxide by such facility,</text></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H3434C2CE78654F25822FDC15A9574F0F" commented="no"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section apply to taxable years beginning after December 31, 2020. </text></subsection></section></title><title id="H716A53EDBFAA4E4E89F85DEFFCFC8DDD"><enum>II</enum><header>Renewable Fuels</header><section id="HE94490AEBAB347FCB5E3889D551CED44"><enum>201.</enum><header>Biodiesel and renewable diesel</header><subsection id="H1C4203F8E8AB415D874F1DF56FDC3A81"><enum>(a)</enum><header>Income tax credit</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/40A">Section 40A(g)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" id="HD5751B61BB704BF3ACDE00517CCED38C" display-inline="no-display-inline"><subsection id="H721BF9096748405CBFBCD38201E25654"><enum>(g)</enum><header>Phase out; termination</header><paragraph id="H907BE455877D4BF1ACB74CD4161A11F5"><enum>(1)</enum><header>Phase out</header><text display-inline="yes-display-inline">In the case of any sale or use after December 31, 2022, subsections (b)(1)(A) and (b)(2)(A) shall be applied by substituting for <quote>$1.00</quote>—</text><subparagraph id="H17FA3D602D374F84A87054542D70BDBB"><enum>(A)</enum><text><quote>$.75</quote>, if such sale or use is before January 1, 2024,</text></subparagraph><subparagraph id="H51B728353154429480FBFF1C200D1962"><enum>(B)</enum><text><quote>$.50</quote>, if such sale or use is after December 31, 2023, and before January 1, 2025, and</text></subparagraph><subparagraph id="H6035F7D2A7FD45219934B2B9B4E781AC"><enum>(C)</enum><text><quote>$.33</quote>, if such sale or use is after December 31, 2024, and before January 1, 2026.</text></subparagraph></paragraph><paragraph id="H5CCF1EDF13254C0199533E8F7414785F"><enum>(2)</enum><header>Termination</header><text>This section shall not apply to any sale or use after December 31, 2025.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H745B756687044775A15FE25DF91CBBD2"><enum>(b)</enum><header>Excise tax incentives</header><paragraph id="H7965F32741394D0F8EC9730CBCF8A3BD"><enum>(1)</enum><header>Phase out</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/6426">Section 6426(c)(2)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" id="H4356FD6BA82845FA97DC0A549284DD91" display-inline="no-display-inline"><paragraph id="HC1DFADD5C2AC45748D0778216F6AD501"><enum>(2)</enum><header>Applicable amount</header><text display-inline="yes-display-inline">For purposes of this subsection, the applicable amount is—</text><subparagraph id="H383388B8A0D24CF4AC257F281BDB53E2"><enum>(A)</enum><text>$1.00 in the case of any sale or use for any period before January 1, 2023,</text></subparagraph><subparagraph id="H8D62D2FFE36A4153AE3A6D16899095C0"><enum>(B)</enum><text>$.75 in the case of any sale or use for any period after December 31, 2022, and before January 1, 2024,</text></subparagraph><subparagraph id="HC23F55E9AD7C47E7A85B8DC3981BBC52"><enum>(C)</enum><text>$.50 in the case of any sale or use for any period after December 31, 2023, and before January 1, 2025, and</text></subparagraph><subparagraph id="H7975351928E4486184F533A5658E2B14"><enum>(D)</enum><text>$.33 in the case of any sale or use for any period after December 31, 2024, and before January 1, 2026.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H14A4850908B143CEB21D4C4AE09C6279"><enum>(2)</enum><header>Termination</header><subparagraph id="H993CF9E9EA9A47508013EF9E47FC1356"><enum>(A)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6426">Section 6426(c)(6)</external-xref> is amended by striking <quote>December 31, 2022</quote> and inserting <quote>December 31, 2025</quote>.</text></subparagraph><subparagraph id="H9A18EEB72BB5465781A457A0B66326DA"><enum>(B)</enum><header>Payments</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6427">Section 6427(e)(6)(B)</external-xref> is amended by striking <quote>December 31, 2022</quote> and inserting <quote>December 31, 2025</quote>. </text></subparagraph></paragraph></subsection><subsection id="H71BF50D127994B11BDB9D711A0ED75A8"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to fuel sold or used after December 31, 2022. </text></subsection></section><section commented="no" display-inline="no-display-inline" id="HE2498E0AA93E4995BA04ADADE23EB757"><enum>202.</enum><header>Extension of excise tax credits relating to alternative fuels</header><subsection id="H432F5924ADD046BCA0E8E91EC54ADE75"><enum>(a)</enum><header>Extension and phaseout of alternative fuel credit</header><paragraph id="H49621609EA1E4451B157EBB6D782FCBA"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6426">Section 6426(d)(1)</external-xref> is amended by striking <quote>50 cents</quote> and inserting <quote>the applicable amount</quote>. </text></paragraph><paragraph id="H02C0371E564C4A05942F4BF27B9AFCA0"><enum>(2)</enum><header>Applicable amount and termination</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6426">Section 6426(d)(5)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" id="H27165BEE80754338AF4BAA4144153A7E" display-inline="no-display-inline"><paragraph id="H8985768606954A57BC4CBB4D7973E186"><enum>(5)</enum><header>Phaseout and termination</header><subparagraph id="H77D50AAA6AEA4288B6E8BCEE5F1D713F"><enum>(A)</enum><header>Phaseout</header><text display-inline="yes-display-inline">For purposes of this subsection, the applicable amount is—</text><clause id="HC8F3603CDA9048E995F6A36D3FC73C70"><enum>(i)</enum><text>50 cents in the case of any sale or use for any period before January 1, 2023,</text></clause><clause id="HD791B34113D547AFB8119A53B23519AC"><enum>(ii)</enum><text>38 cents in the case of any sale or use for any period after December 31, 2022, and before January 1, 2024,</text></clause><clause id="HA4936C1283634390B39CE3CF42054097"><enum>(iii)</enum><text>25 cents in the case of any sale or use for any period after December 31, 2023, and before January 1, 2025, and</text></clause><clause id="H2776B610E1EC472E945BE9378337D3F7"><enum>(iv)</enum><text>17 cents in the case of any sale or use for any period after December 31, 2024, and before January 1, 2026.</text></clause></subparagraph><subparagraph id="H62729F6C8FF84BAEBF8DDFAF5591AEDC"><enum>(B)</enum><header>Termination</header><text>This subsection shall not apply to any sale or use for any period after December 31, 2025.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="HD5B0390E68334306A9EF4C01E939AC4F"><enum>(b)</enum><header>Alternative fuel mixture credit</header><paragraph id="H6C196535341E4349AE2ABCCDFC7FEEAB"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6426">Section 6426(e)(3)</external-xref> is amended by striking <quote>December 31, 2020</quote> and inserting <quote>December 31, 2025</quote>.</text></paragraph><paragraph id="HB6F7A0B5B2184FB180CE650F2AA7BD42"><enum>(2)</enum><header>Phaseout</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6426">Section 6426(e)(1)</external-xref> is amended by striking <quote>50 cents</quote> and inserting <quote>the applicable amount (as defined in subsection (d)(5)(A))</quote>. </text></paragraph></subsection><subsection id="H2CBF752297D6410499085C57D8EEBF38" commented="no" display-inline="no-display-inline"><enum>(c)</enum><header>Payments for alternative fuels</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6427">Section 6427(e)(6)(C)</external-xref> is amended by striking <quote>December 31, 2020</quote> and inserting <quote>December 31, 2025</quote>.</text></subsection><subsection id="H6456E9CB568F4737A4FF90C9395D2AED" commented="no" display-inline="no-display-inline"><enum>(d)</enum><header display-inline="yes-display-inline">Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to fuel sold or used after December 31, 2020.</text></subsection></section><section id="HCE81E55846474895B09F72446A336249"><enum>203.</enum><header>Extension of second generation biofuel incentives</header><subsection id="HE848A1F8B1C14B06851DA386B91F199D"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/40">Section 40(b)(6)(J)(i)</external-xref> is amended by striking <quote>2021</quote> and inserting <quote>2026</quote>. </text></subsection><subsection id="H45F88B8E8F834273A4BEFDF5A86EB587"><enum>(b)</enum><header>Extension of special allowance for depreciation of second generation biofuel plant property</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/168">Section 168(l)(2)(D)</external-xref> is amended by striking <quote>2021</quote> and inserting <quote>2026</quote>.</text></subsection><subsection id="HCFFF1F14FCEC4846AEEB97195088350C"><enum>(c)</enum><header>Effective date</header><paragraph id="H790404A44687469EBEDD01E00409F4A0"><enum>(1)</enum><header>In general</header><text>The amendment made by subsection (a) shall apply to qualified second generation biofuel production after December 31, 2020.</text></paragraph><paragraph id="H41D04E0B98E44AF0ACF8469026AAD0A7"><enum>(2)</enum><header>Second generation biofuel plant property</header><text>The amendment made by subsection (b) shall apply to property placed in service after December 31, 2020.</text></paragraph></subsection></section></title><title id="H91DEF974B29943159918408284CAFB43"><enum>III</enum><header>Green Energy and Efficiency Incentives for Individuals</header><section id="H83DBE4E0C0254E02844DC14DDAFEBB87"><enum>301.</enum><header>Extension, increase, and modifications of nonbusiness energy property credit</header><subsection id="HEF09B2C7124C4EA89B3A3F71F024F41F"><enum>(a)</enum><header>Extension of credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C(g)(2)</external-xref> is amended by striking <quote>December 31, 2020</quote> and inserting <quote>December 31, 2025</quote>.</text></subsection><subsection id="H9C61955C285B46C1AEA7670F063A99A4"><enum>(b)</enum><header>Increase in credit percentage for qualified energy efficiency improvements</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C(a)(1)</external-xref> is amended by striking <quote>10 percent</quote> and inserting <quote>15 percent</quote>.</text></subsection><subsection id="H79BA1686F0EC4E47BFDF1D80AB3DCA47" commented="no"><enum>(c)</enum><header>Increase in lifetime limitation of credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C(b)(1)</external-xref> is amended—</text><paragraph id="HE09344915F7A4C7E8959E364AF7E6F68" commented="no"><enum>(1)</enum><text>by striking <quote>$500</quote> and inserting <quote>$1,200</quote>, and</text></paragraph><paragraph id="HD6A66FCEF677499CB72C01B46357D520" commented="no"><enum>(2)</enum><text>by striking <quote>December 31, 2005</quote> and inserting <quote>December 31, 2020</quote>.</text></paragraph></subsection><subsection id="H113E381BEF27423A8FAEB75049ADC744" commented="no"><enum>(d)</enum><header>Limitations</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C(b)</external-xref> is amended by striking paragraphs (2) and (3) and inserting the following: </text><quoted-block style="OLC" id="H2AC68574BEAE42048CD19CD08F8FC49D" display-inline="no-display-inline"><paragraph commented="no" id="HA2359070B2164474BC0E522B0EFF6BE2"><enum>(2)</enum><header>Limitation on qualified energy efficiency improvements</header><text display-inline="yes-display-inline">The credit allowed under this section by reason of subsection (a)(1), with respect to costs paid or incurred by a taxpayer for a taxable year, shall not exceed—</text><subparagraph id="HB4AB3A11C28445DF982C67829FFD1320" commented="no"><enum>(A)</enum><text>for components described in subsection (c)(3)(A), the excess (if any) of $600 over the aggregate credits allowed under this section with respect to such components for all prior taxable years ending after December 31, 2020,</text></subparagraph><subparagraph id="H4E48E3BF2B28461FA93820DAB8B895ED" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">for components described in subsection (c)(3)(B),</text><clause id="H4BFB7FC1D1AA4A6CB4A1B8FF85A68E69" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of components which are not described in clause (ii), the excess (if any) of $200 over the aggregate credits allowed under this section with respect to such components for all prior taxable years ending after December 31, 2020, and</text></clause><clause id="HAAED70CDF58144618D6A13763A32601D" commented="no"><enum>(ii)</enum><text>in the case of components which meet the standards for most efficient certification under applicable Energy Star program requirements, the excess (if any) of $600 over the aggregate credits allowed under this section with respect to such components for all prior taxable years ending after December 31, 2020, or with respect to components described in clause (i) for such taxable year, and</text></clause></subparagraph><subparagraph id="HCB441ECA83B94E37A6A35DD066A95E69" commented="no"><enum>(C)</enum><text>for components described in subsection (c)(3)(C) by any taxpayer for any taxable year, the credit allowed under this section with respect to such amounts for such year shall not exceed the lesser of—</text><clause id="H155003D924E941B082B5AD9299470E81" commented="no"><enum>(i)</enum><text>the excess (if any) of $500 over the aggregate credits allowed under this section with respect to such amounts for all prior taxable years ending after December 31, 2020, or</text></clause><clause id="HD7D8D9EAA7D547DAAFDE089EA81EEC05" commented="no"><enum>(ii)</enum><text>$250 for each exterior door.</text></clause></subparagraph></paragraph><paragraph commented="no" id="HAE4ACEFD973D407C96FD0EEA4CF0831D"><enum>(3)</enum><header>Limitation on residential energy property expenditures</header><text>The credit allowed under this section by reason of subsection (a)(2) shall not, with respect to an item of property, exceed—</text><subparagraph id="H23E3037515F14108967A492AAC0AA934" commented="no"><enum>(A)</enum><text>in the case of property described in subparagraph (A), (B), or (C) of subsection (d)(3), $600,</text></subparagraph><subparagraph id="HEB2E73B18686444D9D672214C2191D1D" commented="no"><enum>(B)</enum><text>for the case of property described in subparagraph (D) of subsection (d)(3), $400,</text></subparagraph><subparagraph id="H0C11DFB0B683492894E14526FFC14B28" commented="no"><enum>(C)</enum><text>in the case of a hot water boiler, $600, and</text></subparagraph><subparagraph id="H7F35B238979B4C05919923316BC20CF3" commented="no"><enum>(D)</enum><text>in the case of a furnace, an amount equal to the sum of—</text><clause id="H40853B52A3644C8FB21E0B16672E7B14" commented="no"><enum>(i)</enum><text>$300, plus</text></clause><clause id="H1E70630E685846BA96692559C6F6E60D" commented="no"><enum>(ii)</enum><text>if the taxpayer is converting from a non-condensing furnace to a condensing furnace, $300.</text></clause></subparagraph></paragraph><after-quoted-block>. </after-quoted-block></quoted-block></subsection><subsection id="H31953CFBD35843F0981DF574F358F8F6" commented="no"><enum>(e)</enum><header>Standards for energy efficient building envelope components</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C(c)(2)</external-xref> is amended by striking <quote>meets—</quote> and all that follows through the period at the end and inserting the following:</text><quoted-block style="OLC" id="HA78D446E38D14D508F90D44A0351025D" display-inline="yes-display-inline"><text>meets—</text><subparagraph id="H3301D7C89D7745BE8BB03DA9B81408D6"><enum>(A)</enum><text display-inline="yes-display-inline">in the case of an exterior window, a skylight, or an exterior door, applicable Energy Star program requirements, and</text></subparagraph><subparagraph id="H7927315EF1044737BFFA3FB14A34DF20"><enum>(B)</enum><text display-inline="yes-display-inline">in the case of any other component, the prescriptive criteria for such component established by the 2018 IECC (as such term is defined in section 45L(b)(5)). </text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HD9D040AEDDCD4F188FF7E74B1E21E871" commented="no"><enum>(f)</enum><header>Roofs not building envelope components</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C(c)(3)</external-xref> is amended by adding <quote>and</quote> at the end of subparagraph (B), by striking <quote>, and</quote> at the end of subparagraph (C) and inserting a period, and by striking subparagraph (D). </text></subsection><subsection id="H8CB8A28D8BAB4548AAAC62BDB2DF821C" commented="no"><enum>(g)</enum><header>Advanced main air circulating fans not qualified energy property</header><paragraph id="H34D22CA50A914DFAA56E02C1C21B844C"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C(d)(2)(A)</external-xref> is amended by adding <quote>or</quote> at the end of clause (i), by striking <quote>, or</quote> at the end of clause (ii) and inserting a period, and by striking clause (iii).</text></paragraph><paragraph id="H20B45AC0AA1F43C4BCED7BA3F76A6CB5"><enum>(2)</enum><header>Conforming amendment</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C(d)</external-xref> is amended by striking paragraph (5) and redesignating paragraph (6) as paragraph (5).</text></paragraph></subsection><subsection id="H5D632FCBED484D10A2D6D36E4340C96C" commented="no"><enum>(h)</enum><header>Increase in standard for electric heat pump water heater</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C(d)(3)(A)</external-xref> is amended by striking <quote>an energy factor of at least 2.0</quote> and inserting <quote>a uniform energy factor of at least 3.0</quote>.</text></subsection><subsection id="H8CE0925EDD1B48B6ADDD9D4205A1CB6C"><enum>(i)</enum><header>Update of standards for certain energy-Efficient building property</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C(d)(3)</external-xref> is amended—</text><paragraph id="H4F3F34E27FB74F028B23B94A54DF72E0"><enum>(1)</enum><text>by striking <quote>January 1, 2009</quote> each place such term appears and inserting <quote>November 1, 2019</quote>, and</text></paragraph><paragraph id="HA624212E2B28443287E557DABEE04899" commented="no"><enum>(2)</enum><text>by striking subparagraph (D) and inserting the following:</text><quoted-block display-inline="no-display-inline" id="HA4B7F68622B14E7F852798466A3FEEB7" style="OLC"><subparagraph commented="no" id="H8CEC7A9444B64E11A51781560AFC6D0B"><enum>(D)</enum><text>a natural gas, propane, or oil water heater which, in the standard Department of Energy test procedure, yields—</text><clause commented="no" id="HBADD6DA964964C9A957BA99DC4A82092"><enum>(i)</enum><text>in the case of a storage tank water heater—</text><subclause commented="no" id="HC88494CE0EDA459BB3EF9F13E58B834C"><enum>(I)</enum><text>in the case of a medium-draw water heater, a uniform energy factor of not less than 0.78, and</text></subclause><subclause commented="no" id="H71BDAB97113E40CA8E8A18F42D6221DC"><enum>(II)</enum><text>in the case of a high-draw water heater, a uniform energy factor of not less than 0.80, and</text></subclause></clause><clause commented="no" id="H0057BA8F89874841AF1408B78A32C8A5"><enum>(ii)</enum><text>in the case of a tankless water heater—</text><subclause commented="no" id="HB45801A24B834E6988035C242B6D6013"><enum>(I)</enum><text>in the case of a medium-draw water heater, a uniform energy factor of not less than 0.87, and</text></subclause><subclause commented="no" id="H55BEC47350B740D2B9FA0320603B9E24"><enum>(II)</enum><text>in the case of a high-draw water heater, a uniform energy factor of not less than 0.90, and</text></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H708AAB588FA84305AF0A73745ED3D773" commented="no"><enum>(j)</enum><header>Increase in standard for furnaces</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C(d)(4)</external-xref> is amended by striking by striking <quote>not less than 95.</quote> and inserting the following:</text><quoted-block display-inline="yes-display-inline" id="HBF27994E496B40A1A9BBF3FBF3911044" style="OLC"><text>not less than—</text><subparagraph commented="no" id="H169686B70606448D9D58965802F5F6D9"><enum>(A)</enum><text>in the case of a furnace, 97 percent, and</text></subparagraph><subparagraph commented="no" id="H52014161011449EB8199623261836A25"><enum>(B)</enum><text>in the case of a hot water boiler, 95 percent.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H3BF02F01768249AD97CA6B857738828D"><enum>(k)</enum><header>Home energy audits</header><paragraph id="HF19F7F09DD9D4FE5A9B4C888F0A06BED"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C(a)</external-xref> is amended by striking <quote>and</quote> at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph: </text><quoted-block style="OLC" id="H9A63E21FC4DB44489662A355D3D32AC1" display-inline="no-display-inline"><paragraph id="HF437D07298B3483A8B268DA028FBFE6C"><enum>(3)</enum><text display-inline="yes-display-inline">30 percent of the amount paid or incurred by the taxpayer during the taxable year for home energy audits.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="HD046AAE9BE2941278DA7252E2E7142B8"><enum>(2)</enum><header>Limitation</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C(b)</external-xref> is amended adding at the end the following new paragraph:</text><quoted-block style="OLC" id="H9978114500634D5D91B4345AEB9CD7A1" display-inline="no-display-inline"><paragraph id="HA7DB1B37ED38437F84E3DEFAF4025E17"><enum>(4)</enum><header>Home energy audits</header><text display-inline="yes-display-inline">The amount of the credit allowed under this section by reason of subsection (a)(3) shall not exceed $150.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H35BEF4DF77824901BC60BFC5CC9F232F"><enum>(3)</enum><header>Home energy audits</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C</external-xref>, as amended by subsections (a), is amended by redesignating subsections (e), (f), and (g), as subsections (f), (g), and (h), respectively, and by inserting after subsection (d) the following new subsection:</text><quoted-block style="OLC" id="H5F1CAB3C1BFC42338CA980A3E91CAC06" display-inline="no-display-inline"><subsection id="H3FD29B3D7933494983654F8DF9C0C8D2"><enum>(e)</enum><header>Home energy audits</header><text display-inline="yes-display-inline">For purposes of this section, the term <quote>home energy audit</quote> means an inspection and written report with respect to a dwelling unit located in the United States and owned or used by the taxpayer as the taxpayer’s principal residence (within the meaning of section 121) which—</text><paragraph id="HA51EA18349804EECB1A584B7DB699E6D"><enum>(1)</enum><text>identifies the most significant and cost-effective energy efficiency improvements with respect to such dwelling unit, including an estimate of the energy and cost savings with respect to each such improvement, and</text></paragraph><paragraph id="HA7D5B27C05324AA5A365839DC63566A9"><enum>(2)</enum><text>is conducted and prepared by a home energy auditor that meets the certification or other requirements specified by the Secretary (after consultation with the Secretary of Energy, and not later than 180 days after the date of the enactment of this subsection) in regulations or other guidance.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H5F2C449219F449699A891AB37EF21F4B"><enum>(4)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/1016">Section 1016(a)(33)</external-xref> is amended by striking <quote>section 25C(f)</quote> and inserting <quote>section 25C(g)</quote>. </text></paragraph></subsection><subsection id="H912951D7563C4F5394A616908A338A25"><enum>(l)</enum><header>Effective dates</header><paragraph id="H793D0B4297054D3781B6917885C7C72C"><enum>(1)</enum><header>Increase and modernization</header><text>Except as otherwise provided by this subsection, the amendments made by this section shall apply to property placed in service after December 31, 2020.</text></paragraph><paragraph id="H1DEDF5787CC24168BE2CB52E170D078F"><enum>(2)</enum><header>Extension</header><text>The amendments made by subsection (a) shall apply to property placed in service after December 31, 2020.</text></paragraph><paragraph id="HE8E40AC9FBD8415A82113403160A9DAD"><enum>(3)</enum><header>Home energy audits</header><text>The amendments made by subsection (k) shall apply to amounts paid or incurred after December 31, 2020.</text></paragraph></subsection></section><section id="H95EBF53619D64A9AB3E1F34D1DBABAAC"><enum>302.</enum><header>Residential energy efficient property</header><subsection id="H5EA36EEBC74F4FC49E49C6F685144E03"><enum>(a)</enum><header>Extension of credit</header><paragraph id="HF967232A9D194B08BB4D4C5EB1F098E0"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25D">Section 25D(h)</external-xref> is amended by striking <quote>December 31, 2021</quote> and inserting <quote>December 31, 2027</quote>.</text></paragraph><paragraph id="H91F313C485B54A7E84E8EB2040203DC1"><enum>(2)</enum><header>Application of phaseout</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25D">Section 25D(g)</external-xref> is amended—</text><subparagraph id="H5C554540020E43CA88C7C826954C6F47"><enum>(A)</enum><text>in paragraph (1), by striking <quote>January 1, 2020</quote> and inserting <quote>January 1, 2026</quote>,</text></subparagraph><subparagraph id="H3F03752ACA5D461FBA688B30ABB2F208"><enum>(B)</enum><text>in paragraph (2)—</text><clause id="HC89D2775614445F9B87C636B11BF5626"><enum>(i)</enum><text>by striking <quote>December 31, 2019</quote> and inserting <quote>December 31, 2025</quote>, and</text></clause><clause id="H0B7F3DABCEF84A95899BD6C2E6D59B54"><enum>(ii)</enum><text>by striking <quote>January 1, 2021</quote> and inserting <quote>January 1, 2027</quote>, and </text></clause></subparagraph><subparagraph id="HC056E41333334977BFA77D42D94E5BB8"><enum>(C)</enum><text>in paragraph (3)—</text><clause id="H2B685FCB12E44518A5DCC16D81AE5523"><enum>(i)</enum><text>by striking <quote>December 31, 2020</quote> and inserting <quote>December 31, 2026</quote>, and </text></clause><clause id="H4388414B7FA54AFF95FFC1C16489EDAA"><enum>(ii)</enum><text>by striking <quote>January 1, 2022</quote> and inserting <quote>January 1, 2028</quote>.</text></clause></subparagraph></paragraph></subsection><subsection id="H846AEDA7D3234AA3A3A4F92738BFC2D1"><enum>(b)</enum><header>Qualified biomass fuel property expenditures; residential energy efficient property credit for battery storage technology</header><paragraph id="H9A483572B9994833AE6CEF7CB375C51E"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/25D">Section 25D(a)</external-xref> is amended by striking <quote>and</quote> at the end of paragraph (4) and by inserting after paragraph (5) the following new paragraphs:</text><quoted-block style="OLC" id="H5B426EF501F44AD580AE109534F844F4" display-inline="no-display-inline"><paragraph id="HD2088702938D47999D4DC89EC776281D"><enum>(6)</enum><text display-inline="yes-display-inline">the qualified biomass fuel property expenditures, and</text></paragraph><paragraph id="H7BEDB6AF3C0742B4B4FD15FFD6CE6AAF"><enum>(7)</enum><text>the qualified battery storage technology expenditures,</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H4CD8775CEE6F424EB6B1D3EABD0177BA"><enum>(2)</enum><header>Qualified biomass fuel property expenditures; residential energy efficient property credit for battery storage technology</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25D">Section 25D(d)</external-xref> is amended by adding at the end the following new paragraphs:</text><quoted-block act-name="" id="HEE656FD3E82944CBADC0383E47D0B201" style="OLC"><paragraph id="HCCDC9645F1D74D41B36C45BFD971C9E6"><enum>(6)</enum><header>Qualified biomass fuel property expenditure</header><subparagraph id="H08F07ED04CFA419E8EF29F099C99AFD5"><enum>(A)</enum><header>In general</header><text>The term <term>qualified biomass fuel property expenditure</term> means an expenditure for property—</text><clause id="H357F8B8CB72B459398632119CC08E62F"><enum>(i)</enum><text>which uses the burning of biomass fuel to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit, and</text></clause><clause id="HF4F34EF5E24A438487D6A4FB0F7660D5"><enum>(ii)</enum><text>which has a thermal efficiency rating of at least 75 percent (measured by the higher heating value of the fuel).</text></clause></subparagraph><subparagraph id="HE0C1B151843B4C4FA5911917F17EC58F"><enum>(B)</enum><header>Biomass fuel</header><text>For purposes of this section, the term <term>biomass fuel</term> means any plant-derived fuel available on a renewable or recurring basis.</text></subparagraph></paragraph><paragraph id="HF72B0AAD72834C969F69E7F50CED4D8F"><enum>(7)</enum><header>Qualified battery storage technology expenditure</header><text display-inline="yes-display-inline">The term <quote>qualified battery storage technology expenditure</quote> means an expenditure for battery storage technology which—</text><subparagraph id="H65B073D8687A4D57867F3DA21CAF194B"><enum>(A)</enum><text>is installed in connection with a dwelling unit located in the United States and used as a residence by the taxpayer, and </text></subparagraph><subparagraph id="HCA26FC5938E34CAE851588A1C8B2682A"><enum>(B)</enum><text>has a capacity of not less than 3 kilowatt hours.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H2271B9F76CE44CE6B8AAC50AB2799122"><enum>(3)</enum><header>Denial of double benefit for biomass stoves</header><subparagraph id="H7B6904AEA7AD4B69B5A75CAB89743187"><enum>(A)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C(d)(3)</external-xref> is amended by adding <quote>and</quote> at the end of subparagraph (C), by striking <quote>, and</quote> at the end of subparagraph (D) and inserting a period, and by striking subparagraph (E).</text></subparagraph><subparagraph id="H1EFAEB6ACDE74302B492D02A37DEEC9F"><enum>(B)</enum><header>Conforming amendment</header><text>Section 25C(d), as amended by the preceding provisions of this Act, is amended by striking paragraph (5).</text></subparagraph></paragraph></subsection><subsection id="HB18D3C55836B465C83A1C7818CD0431F" commented="no" display-inline="no-display-inline"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to expenditures made after the date of the enactment of this Act. </text></subsection></section><section commented="no" display-inline="no-display-inline" id="H05B41AB8E3334BB887FD0260E9786EF6" section-type="subsequent-section"><enum>303.</enum><header>Energy efficient commercial buildings deduction</header><subsection id="H04BF02E178704FA8AB7209A5209526AF" commented="no"><enum>(a)</enum><header>Extension</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D(h)</external-xref> is amended by striking <quote>December 31, 2020</quote> and inserting <quote>December 31, 2025</quote>.</text></subsection><subsection id="HE69461A3E104499198395DDEFDD19295" commented="no"><enum>(b)</enum><header>Increase in the maximum amount of deduction</header><paragraph id="H05B316D560AC4D85A97A5476C1D0D234" commented="no"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D(b)</external-xref> is amended by striking <quote>$1.80</quote> and inserting <quote>$3</quote>.</text></paragraph><paragraph id="HBAC78C80C6DF439292D5FB8881F1B12A" commented="no"><enum>(2)</enum><header>Inflation adjustment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D</external-xref>, as amended by subsection (a), is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection: </text><quoted-block style="OLC" id="HABD898FC636148EE990449C165076D9E" display-inline="no-display-inline"><subsection id="H0A41540105A54D1BBAA6B3BC2DD6A12B" commented="no"><enum>(h)</enum><header>Inflation adjustment</header><text display-inline="yes-display-inline">In the case of a taxable year beginning after 2020, each dollar amount in subsection (b) or subsection (d)(1)(A) shall be increased by an amount equal to—</text><paragraph id="HC53A29E1B42E4C92B72BC9AA2271C50A" commented="no"><enum>(1)</enum><text>such dollar amount, multiplied by</text></paragraph><paragraph id="H93BEB39396F8439FAB574F6F01CA5FE5" commented="no"><enum>(2)</enum><text display-inline="yes-display-inline">the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting <quote>calendar year 2019</quote> for <quote>calendar year 2016</quote> in subparagraph (A)(ii) thereof.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="HBCCB718BC9424E359D4EE9131F39AA19" commented="no"><enum>(3)</enum><header>Conforming amendment</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D(d)(1)(A)</external-xref> is amended by striking <quote>by substituting <quote>$.60</quote> for <quote>$1.80</quote></quote> and inserting <quote>by substituting <quote>$1</quote> for <quote>$3</quote></quote>.</text></paragraph></subsection><subsection id="H6D3109801C29489D85D06EA44FECBF06" commented="no"><enum>(c)</enum><header>Limit on deduction limited to three-Year period</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D(b)(2)</external-xref> is amended by striking <quote>for all prior taxable years</quote> and inserting <quote>for the 3 years immediately preceding such taxable year</quote>. </text></subsection><subsection id="H5C0FD41EF9D34076B642055E0D2DFA78" commented="no"><enum>(d)</enum><header>Update of standards</header><paragraph id="H0613491F584C486BB4591DD333B54A06" commented="no"><enum>(1)</enum><header>ASHRAE standards</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D(c)</external-xref> is amended—</text><subparagraph id="H4411B3A25C4C4724A0A9046DC8C17418" commented="no"><enum>(A)</enum><text>in paragraphs (1)(B)(ii) and (1)(D), by striking <quote>Standard 90.1–2007</quote> and inserting <quote>Reference Standard 90.1</quote>, and</text></subparagraph><subparagraph id="HBC5593A10E7E43C195E3C8469C02D778" commented="no"><enum>(B)</enum><text>by amending paragraph (2) to read as follows:</text><quoted-block style="OLC" id="H29FBAB178DA14B66945D6C693C47909B" display-inline="no-display-inline"><paragraph id="HD09E369637054DF89ED94919541EC7E4" commented="no"><enum>(2)</enum><header>Reference Standard 90.1</header><text display-inline="yes-display-inline">The term <term>Reference Standard 90.1</term> means, with respect to property, the Standard 90.1 most recently adopted (as of the date that is 2 years before the date that construction of such property begins) by the American Society of Heating, Refrigerating, and Air Conditioning Engineers and the Illuminating Engineering Society of North America.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="H8E42DAC087B545DAA820C43F4DA0F580" commented="no"><enum>(2)</enum><header>California Nonresidential Alternative Calculation Method Approval Manual</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D(d)(2)</external-xref> is amended by striking <quote>2005</quote> and inserting <quote>2019</quote>.</text></paragraph></subsection><subsection id="H65AE9F8C675043C5BD911B7D7B404587" commented="no"><enum>(e)</enum><header>Change in efficiency standards</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D(c)(1)(D)</external-xref> is amended by striking <quote>50</quote> and inserting <quote>30</quote>. </text></subsection><subsection id="HC77407286EA14E67B517A9BE82ED82FE" commented="no"><enum>(f)</enum><header>Deadwood</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D</external-xref>, as amended by subsections (a) and (b), is amended by striking subsection (f) and redesignating subsections (g), (h), and (i) as subsections (f), (g), and (h), respectively. </text></subsection><subsection commented="no" display-inline="no-display-inline" id="HD83B4C365BE5431AA55E721264DA33D5"><enum>(g)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to property placed in service after December 31, 2020.</text></subsection></section><section id="H0F864BF8D9FD4887842CDE3A2817C575" display-inline="no-display-inline" section-type="subsequent-section"><enum>304.</enum><header>Extension, increase, and modifications of new energy efficient home credit</header><subsection id="H223E534CF78C40098FD7F225271D379F"><enum>(a)</enum><header>Extension of credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45L">Section 45L(g)</external-xref> is amended by striking <quote>December 31, 2020</quote> and inserting <quote>December 31, 2025</quote>.</text></subsection><subsection id="HA5AD01562DDF45F191A80A917A295893"><enum>(b)</enum><header>Increase in credit for certain dwelling units</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/45L">Section 45L(a)(2)(A)</external-xref> is amended by striking <quote>$2,000</quote> and inserting <quote>$2,500</quote>.</text></subsection><subsection id="HB33397CC790F4A519678A196FB532BE0" commented="no"><enum>(c)</enum><header>Increase in standard for heating and cooling reduction for certain units</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45L">Section 45L(c)(1)</external-xref> is amended by striking <quote>50 percent</quote> each place such term appears and inserting <quote>60 percent</quote>.</text></subsection><subsection id="HFE0BCAA5541F42D795F186917C37FC51"><enum>(d)</enum><header>Energy saving requirements modifications</header><paragraph id="H36364194B0CD4CCD9F2B7BFBE0B8D410"><enum>(1)</enum><header>All Energy Star Labeled homes eligible; no reduction in standard</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45L">Section 45L(c)</external-xref> is amended by amending paragraph (3) to read as follows:</text><quoted-block style="OLC" id="HAD1716B6B8D94B819DDBBEFD5F12C1F0" display-inline="no-display-inline"><paragraph id="H82269BACB42C42C6978EAE53CDF55816"><enum>(3)</enum><text display-inline="yes-display-inline">a unit which meets the requirements established by the Administrator of the Environmental Protection Agency under the Energy Star Labeled Homes program and, in the case of a manufactured home, which conforms to Federal Manufactured Home Construction and Safety Standards (part 3280 of title 24, Code of Federal Regulations).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="HEA35ECA5815D47689D9D1A5D1A0D33CC"><enum>(2)</enum><header>Units constructed in accordance with 2018 IECC standards</header><text display-inline="yes-display-inline">Section 45L(c), as amended by paragraph (1), is further amended by striking <quote>or</quote> at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting <quote>, or</quote>, and by adding at the end the following new paragraph:</text><quoted-block style="OLC" id="H007AA219A3CC44A395CB5ACC0F752EEE" display-inline="no-display-inline"><paragraph id="H758EEB79D1F342E098B8D377F5CF0CE8" commented="no"><enum>(4)</enum><text>certified—</text><subparagraph id="HB8A5A9653D944FF281B64B9C66F1F5A0" commented="no"><enum>(A)</enum><text>to have a level of annual energy consumption which is at least 15 percent below the annual level of energy consumption of a comparable dwelling unit—</text><clause id="H1E85E40A71D74A00ACC88E17612B8E42" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">which is constructed in accordance with the standards of chapter 4 of the 2018 IECC (without taking into account on-site energy generation), and</text></clause><clause id="H5F4F961A7E044C73B1FFFD1989EAD0F9" commented="no"><enum>(ii)</enum><text>which meets the requirements described in paragraph (1)(A)(ii), and</text></clause></subparagraph><subparagraph id="H80127E8CC3CB44E3874BD051C0F6072A" commented="no"><enum>(B)</enum><text>to have building envelope component improvements account for at least 1/5 of such 15 percent.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H284C21C20AB54A1C9C20B8CC10DA92EE"><enum>(3)</enum><header>Conforming amendments</header><subparagraph id="H06ABDED31E514CE5818EDD2CB67DDB05"><enum>(A)</enum><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/45L">Section 45L(c)(2)</external-xref> is amended by inserting <quote>or (4)</quote> after <quote>paragraph (1)</quote>.</text></subparagraph><subparagraph id="H9178275CC6624FB985A9DA37C684E4E3"><enum>(B)</enum><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/45L">Section 45L(a)(2)(A)</external-xref> is amended by striking <quote>or (2)</quote> and inserting <quote>, (2), or (4)</quote>.</text></subparagraph><subparagraph id="H2D007DD852CD402AB67DFC04F6419398" commented="no"><enum>(C)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/45L">Section 45L(b)</external-xref> is amended by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="HDE7A37B1E3A942E7BA57926FE09A30EE" style="OLC"><paragraph commented="no" id="HA01C0A4CD93A49778B21F3E162D202F3"><enum>(5)</enum><header>2018 IECC</header><text display-inline="yes-display-inline">The term <term>2018 IECC</term> means the 2018 International Energy Conservation Code, as such Code (including supplements) is in effect on November 1, 2018.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="HFDA70ABA88824A15A031D486C306292C"><enum>(e)</enum><header>Effective dates</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to dwelling units acquired after December 31, 2020.</text></subsection></section><section id="H3B358FE9F68D4CC8B47E03D687D16233" section-type="subsequent-section"><enum>305.</enum><header>Modifications to income exclusion for conservation subsidies</header><subsection id="H00F1AA375A8B4C7EAB252F5C3D3A1650"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/136">Section 136(a)</external-xref> is amended—</text><paragraph id="HE5498483B2E8401E9483402022E15D0A"><enum>(1)</enum><text>by striking <quote>any subsidy provided</quote> and inserting</text><quoted-block display-inline="yes-display-inline" id="H7728E767601D400FAC5FE6701E81328C" style="OLC"><text>any subsidy—</text><paragraph id="H7FF4E7968C344D1F99933D218E0F5F6C"><enum>(1)</enum><text>provided</text></paragraph><after-quoted-block>,</after-quoted-block></quoted-block></paragraph><paragraph id="H7AE6BA580C6A4B2491C426C7731A1327"><enum>(2)</enum><text>by striking the period at the end and inserting a comma, and</text></paragraph><paragraph id="H6F19BD394C60463E923973778A9A588B"><enum>(3)</enum><text>by adding at the end the following new paragraphs:</text><quoted-block display-inline="no-display-inline" id="H4B60179B0087408E98451328A13C6A8A" style="OLC"><paragraph id="HC64A7A23F0454E02AB6D5F3B1BCA833F"><enum>(2)</enum><text>provided (directly or indirectly) by a public utility to a customer, or by a State or local government to a resident of such State or locality, for the purchase or installation of any water conservation or efficiency measure, </text></paragraph><paragraph id="HBCF025F99735439BB5C9F2CF2DFBB8C4"><enum>(3)</enum><text>provided (directly or indirectly) by a storm water management provider to a customer, or by a State or local government to a resident of such State or locality, for the purchase or installation of any storm water management measure, or</text></paragraph><paragraph id="H46A8E1898B5C436AAC2F4BB6FEA93279"><enum>(4)</enum><text>provided (directly or indirectly) by a State or local government to a resident of such State or locality for the purchase or installation of any wastewater management measure, but only if such measure is with respect to the taxpayer’s principal residence.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H4C22CBE13EB04A5AB760E9A3FA4AA260"><enum>(b)</enum><header>Conforming amendments</header><paragraph id="HDD4E8F0A5A9441848A7BAFB5000A3D75"><enum>(1)</enum><header>Definition of water conservation or efficiency measure and storm water management measure</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/136">Section 136(c)</external-xref> is amended—</text><subparagraph id="HAA1C1D6B0EE348379977EECEF469A99F"><enum>(A)</enum><text>by striking <quote><header-in-text level="subsection" style="OLC">Energy conservation measure</header-in-text></quote> in the heading thereof and inserting <quote><header-in-text level="subsection" style="OLC">Definitions</header-in-text></quote>,</text></subparagraph><subparagraph id="H8924A310D13F4B62B5BF525D6970E396"><enum>(B)</enum><text>by striking <quote><header-in-text level="paragraph" style="OLC">In general</header-in-text></quote> in the heading of paragraph (1) and inserting <quote><header-in-text level="paragraph" style="OLC">Energy conservation measure</header-in-text></quote>, and</text></subparagraph><subparagraph id="H9782F435172D4C1BB43668E2DFF9BFC6"><enum>(C)</enum><text>by redesignating paragraph (2) as paragraph (5) and by inserting after paragraph (1) the following:</text><quoted-block display-inline="no-display-inline" id="HFF5DBFCD6535417E8A049F4E78661182" style="OLC"><paragraph id="HA139502D59FF42A8A4DAFC3DE07212EB"><enum>(2)</enum><header>Water conservation or efficiency measure</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>water conservation or efficiency measure</term> means any evaluation of water use, or any installation or modification of property, the primary purpose of which is to reduce consumption of water or to improve the management of water demand with respect to one or more dwelling units.</text></paragraph><paragraph id="HC8DCFF84249B48A8BDC7235DA38854D3"><enum>(3)</enum><header>Storm water management measure</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>storm water management measure</term> means any installation or modification of property primarily designed to reduce or manage amounts of storm water with respect to one or more dwelling units.</text></paragraph><paragraph id="H9F2BEE8271BC40A39A1488DF36E4F7DB"><enum>(4)</enum><header>Wastewater management measure</header><text>For purposes of this section, the term <quote>wastewater management measure</quote> means any installation or modification of property primarily designed to manage wastewater (including septic tanks and cesspools) with respect to one or more dwelling units.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="H12ECFE561A844B36B35646BAB9A8440C"><enum>(2)</enum><header>Definition of public utility</header><text>Section 136(c)(5) (as redesignated by paragraph (1)(C)) is amended by striking subparagraph (B) and inserting the following:</text><quoted-block display-inline="no-display-inline" id="H863A8836946E46BD931ADE6A39C0A523" style="OLC"><subparagraph id="H79A94AEED09A4FD588AA33F087CAA4E8"><enum>(B)</enum><header>Public utility</header><text>The term <term>public utility</term> means a person engaged in the sale of electricity, natural gas, or water to residential, commercial, or industrial customers for use by such customers.</text></subparagraph><subparagraph id="H1770386A6CC5461FB04ADC73B927EAF1"><enum>(C)</enum><header>Storm water management provider</header><text>The term <term>storm water management provider</term> means a person engaged in the provision of storm water management measures to the public.</text></subparagraph><subparagraph id="HA3EE77FA75B84F27AADEE101A9A3AA00"><enum>(D)</enum><header>Person</header><text>For purposes of subparagraphs (B) and (C), the term <term>person</term> includes the Federal Government, a State or local government or any political subdivision thereof, or any instrumentality of any of the foregoing.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="HCD95367A638D4FC09A16ACE97114CE16"><enum>(3)</enum><header>Clerical amendments</header><subparagraph id="HB1C229B2C58743FC96669D0DCA9E919C"><enum>(A)</enum><text>The heading for <external-xref legal-doc="usc" parsable-cite="usc/26/136">section 136</external-xref> is amended—</text><clause id="HF6918AD1C7B64DFF830A2B117BBAC7E0"><enum>(i)</enum><text>by inserting <quote><header-in-text level="section" style="OLC">and water</header-in-text></quote> after <quote><header-in-text level="section" style="OLC">energy</header-in-text></quote>, and</text></clause><clause id="H88F5637BE726485CBE62A0FB01446C16"><enum>(ii)</enum><text>by striking <quote><header-in-text level="section" style="OLC">provided by public utilities</header-in-text></quote>.</text></clause></subparagraph><subparagraph id="H32FFD82B727F4C45ACA8D1BB2BB2D1B8"><enum>(B)</enum><text>The item relating to section 136 in the table of sections of part III of subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended—</text><clause id="H928C8C78F068413E945F21E96B79BCB5"><enum>(i)</enum><text>by inserting <quote>and water</quote> after <quote>energy</quote>, and</text></clause><clause id="H8AB3A25FD516483483E7AABBD65A7DAE"><enum>(ii)</enum><text>by striking <quote>provided by public utilities</quote>.</text></clause></subparagraph></paragraph></subsection><subsection id="H0FA9567F85594FBABA88B33022D8B07C"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to amounts received after December 31, 2018.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="H6FB492F643B44E50848B5A76B3A83800"><enum>(d)</enum><header>No inference</header><text>Nothing in this Act or the amendments made by this Act shall be construed to create any inference with respect to the proper tax treatment of any subsidy received directly or indirectly from a public utility, a storm water management provider, or a State or local government for any water conservation measure or storm water management measure before January 1, 2021.</text></subsection></section></title><title id="H2E8DF6B725E04B24A67D447A9CDD36B9"><enum>IV</enum><header>Greening the Fleet and Alternative Vehicles</header><section id="H889D695E75CA4166A3BDECF74F87F367" display-inline="no-display-inline"><enum>401.</enum><header>Modification of limitations on new qualified plug-in electric drive motor vehicle credit</header><subsection id="HEC3A0DF6A08D45B9A8893D946CFAE64E"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30D">Section 30D(e)</external-xref> is amended to read as follows:</text><quoted-block id="H650D7079C69D447D9F4C54C4C33D0AEB" style="OLC"><subsection id="HCC6E574069644F028BD49082F677FC14"><enum>(e)</enum><header>Limitation on number of new qualified plug-In electric drive motor vehicles eligible for credit</header><paragraph id="HE97447828CF54DB581805232A84A98AD"><enum>(1)</enum><header>In general</header><text>In the case of any new qualified plug-in electric drive motor vehicle sold after the date of the enactment of the <short-title>GREEN Act of 2020</short-title>—</text><subparagraph id="H56EC8C990CDF418E9B2667FBA421FFB7"><enum>(A)</enum><text>if such vehicle is sold during the transition period, the amount determined under subsection (b)(2) shall be reduced by $500, and</text></subparagraph><subparagraph id="HDDE34A48F2D44E01A9F352137D3C4111"><enum>(B)</enum><text>if such vehicle is sold during the phaseout period, only the applicable percentage of the credit otherwise allowable under subsection (a) shall be allowed.</text></subparagraph></paragraph><paragraph id="HE7B7794EF41446888A9AE9C5E15F516F"><enum>(2)</enum><header>Transition period</header><text>For purposes of this subsection, the transition period is the period subsequent to the first date on which the number of new qualified plug-in electric drive motor vehicles manufactured by the manufacturer of the vehicle referred to in paragraph (1) sold for use in the United States after December 31, 2009, is at least 200,000.</text></paragraph><paragraph id="H93E7F55528384D599C377E2B08744C5F"><enum>(3)</enum><header>Phaseout period</header><subparagraph id="HB50CD4C0E89C4E0D945AB3BBDEFF7BE4"><enum>(A)</enum><header>In general</header><text>For purposes of this subsection, the phaseout period is the period beginning with the second calendar quarter following the calendar quarter which includes the first date on which the number of new qualified plug-in electric drive motor vehicles manufactured by the manufacturer of the vehicle referred to in paragraph (1) sold for use in the United States after December 31, 2009, is at least 600,000.</text></subparagraph><subparagraph id="H82BE69BECFBE4A6BB2C6D7ACE09CD22E"><enum>(B)</enum><header>Applicable percentage</header><text>For purposes of paragraph (1)(B), the applicable percentage is—</text><clause id="HC8024E3A60294C56960ECC4AD1BA4B8E"><enum>(i)</enum><text>50 percent for the first calendar quarter of the phaseout period, and</text></clause><clause id="H58E8A11D29AA4A8DBAF043E715C0A322"><enum>(ii)</enum><text>0 percent for each calendar quarter thereafter.</text></clause></subparagraph><subparagraph id="H9934FDEC583E40AE86F84A1B6EDCF55A"><enum>(C)</enum><header>Exclusion of sale of certain vehicles</header><clause id="HB2577336AA004F54A9509E21EBB8FF88"><enum>(i)</enum><header>In general</header><text>For purposes of subparagraph (A), any new qualified plug-in electric drive motor vehicle manufactured by the manufacturer of the vehicle referred to in paragraph (1) which was sold during the exclusion period shall not be included for purposes of determining the number of such vehicles sold.</text></clause><clause id="H735BFEC52C614BEF8313C5A2F942B838"><enum>(ii)</enum><header>Exclusion period</header><text>For purposes of this subparagraph, the exclusion period is the period—</text><subclause id="H5403553B68BC4DC2B784E0D450835319"><enum>(I)</enum><text>beginning on the first date on which the number of new qualified plug-in electric drive motor vehicles manufactured by the manufacturer of the vehicle referred to in paragraph (1) sold for use in the United States after December 31, 2009, is at least 200,000, and</text></subclause><subclause id="HFE94C1265EA840B5A448126E15EEF2F6"><enum>(II)</enum><text>ending on the date of the enactment of the <short-title>GREEN Act of 2020</short-title>.</text></subclause></clause></subparagraph></paragraph><paragraph id="HD6394FC46FF14A20A35EAEEEE38F8F8C"><enum>(4)</enum><header>Controlled groups</header><text>Rules similar to the rules of section 30B(f)(4) shall apply for purposes of this subsection.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HABF7DEE87725414292E5C35CEC4E757E"><enum>(b)</enum><header>Extension for 2- and 3-Wheeled plug-In electric vehicles</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30D">Section 30D(g)(3)(E)</external-xref> is amended to read as follows: </text><quoted-block style="OLC" id="HC1B7885DE3B344B1B5B78A87D8F3C5F8" display-inline="no-display-inline"><subparagraph id="HDFF2C44A4FE0445A83F9AFC89CF315B4"><enum>(E)</enum><text display-inline="yes-display-inline">is acquired after December 31, 2020, and before January 1, 2026.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H0E3A5D84447B44FBAB86C7C13ABD2708"><enum>(c)</enum><header>Effective date</header><paragraph id="H8F5416B06B3B45869B52152703CB3231"><enum>(1)</enum><header>Limitation</header><text>The amendment made by subsection (a) shall apply to vehicles sold after the date of the enactment of this Act.</text></paragraph><paragraph id="HAC533F3C85EE47EF9088AAC9441F51CA"><enum>(2)</enum><header>Extension</header><text>The amendment made by subsection (b) shall apply to vehicles sold after December 31, 2020.</text></paragraph></subsection></section><section id="H26A20A1A2F92485AA5FEF6F431C23A8B" section-type="subsequent-section"><enum>402.</enum><header>Credit for previously-owned qualified plug-in electric drive motor vehicles</header><subsection id="H01D74406186E44D684F026CE298CE48F"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subpart A of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after section 25D the following new section:</text><quoted-block style="OLC" id="H7EA7FE80597E4EA2B0348A701FE05067" display-inline="no-display-inline"><section id="HA2B3525DF73F415180ABF5A2321032E1"><enum>25E.</enum><header>Previously-owned qualified plug-in electric drive motor vehicles</header><subsection id="HA1364FE2E4214D0EA70C1E2A29E51082"><enum>(a)</enum><header>Allowance of credit</header><text display-inline="yes-display-inline">In the case of a qualified buyer who during a taxable year places in service a previously-owned qualified plug-in electric drive motor vehicle, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of—</text><paragraph id="H963FF01E20F04A22A544A6E37F296004"><enum>(1)</enum><text>$1,250, plus</text></paragraph><paragraph id="H2BDC6FEA98364C468CE0CBBA9D5B7605"><enum>(2)</enum><text display-inline="yes-display-inline">in the case of a vehicle which draws propulsion energy from a battery which exceeds 4 kilowatt hours of capacity (determined at the time of sale), the lesser of—</text><subparagraph id="HA23BF7C27A1147D3BA0772E89CE119BB"><enum>(A)</enum><text>$1,250, and</text></subparagraph><subparagraph id="H1A6AF6682EA94907BAA7A548DEAA6AA7"><enum>(B)</enum><text display-inline="yes-display-inline">the product of $208.50 and such excess kilowatt hours. </text></subparagraph></paragraph></subsection><subsection id="H2F46D844A4FD421988B11BC03E8329E2"><enum>(b)</enum><header>Limitations</header><paragraph id="H61FD8A8B93374A0484D7604AB8D0B44A" commented="no"><enum>(1)</enum><header>Sale price</header><text>The credit allowed under subsection (a) with respect to sale of a vehicle shall not exceed 30 percent of the sale price.</text></paragraph><paragraph id="H0FDF6111ABD1461B96EEB07C20DFD026"><enum>(2)</enum><header>Adjusted gross income</header><text display-inline="yes-display-inline">The amount which would (but for this paragraph) be allowed as a credit under subsection (a) shall be reduced (but not below zero) by $250 for each $1,000 (or fraction thereof) by which the taxpayer’s adjusted gross income exceeds $30,000 (twice such amount in the case of a joint return). </text></paragraph></subsection><subsection id="H4410F257185B4341A09C59798385DBCE"><enum>(c)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this section—</text><paragraph id="H86C67C5B6F0647B2B950F21C1E60B4D4"><enum>(1)</enum><header>Previously-owned qualified plug-in electric drive motor vehicle</header><text display-inline="yes-display-inline">The term <quote>previously-owned qualified plug-in electric drive motor vehicle</quote> means, with respect to a taxpayer, a motor vehicle—</text><subparagraph id="H46D2768637F540CC8B172D88985210FC"><enum>(A)</enum><text>the model year of which is at least 2 earlier than the calendar year in which the taxpayer acquires such vehicle,</text></subparagraph><subparagraph id="HC898D753C8D14743ACE6DF5F8242F020"><enum>(B)</enum><text>the original use of which commences with a person other than the taxpayer,</text></subparagraph><subparagraph id="HEF09656275A84F1FB003D7948718AE46"><enum>(C)</enum><text display-inline="yes-display-inline">which is acquired by the taxpayer in a qualified sale,</text></subparagraph><subparagraph id="HAC1FEB1CDDCE44A0889CC163A6434A47"><enum>(D)</enum><text>registered by the taxpayer for operation in a State or possession of the United States, and</text></subparagraph><subparagraph id="HA722DEAF06524D21A9AF853E950DAF46"><enum>(E)</enum><text>which meets the requirements of subparagraphs (C), (D), (E), and (F) of section 30D(d)(1).</text></subparagraph></paragraph><paragraph id="H6FB4D705F90942C68FAFA8B1428A0225"><enum>(2)</enum><header>Qualified sale</header><text>The term <quote>qualified sale</quote> means a sale of a motor vehicle—</text><subparagraph id="H0C79A0490DB4445C8B832977403E1F2F"><enum>(A)</enum><text>by a person who holds such vehicle in inventory (within the meaning of section 471) for sale or lease, </text></subparagraph><subparagraph id="H340D0F69493345BDBA74038412D243A9"><enum>(B)</enum><text display-inline="yes-display-inline">for a sale price of less than $25,000, and</text></subparagraph><subparagraph id="H57F9815E869C4DCBA724F305F3696B30"><enum>(C)</enum><text>which is the first transfer since the date of the enactment of this section to a person other than the person with whom the original use of such vehicle commenced. </text></subparagraph></paragraph><paragraph id="HF149543D24724BE4BBB9BE933291C45C"><enum>(3)</enum><header>Qualified buyer</header><text display-inline="yes-display-inline">The term <quote>qualified buyer</quote> means, with respect to a sale of a motor vehicle, a taxpayer—</text><subparagraph id="H17246E2645A44196B7CCBE369FF6EC04"><enum>(A)</enum><text display-inline="yes-display-inline">who is an individual,</text></subparagraph><subparagraph id="HFA978186A82348DDA4115F069AF49BEA"><enum>(B)</enum><text>who purchases such vehicle for use and not for resale,</text></subparagraph><subparagraph id="H541064D0195440FCA634FBBA59A4B427"><enum>(C)</enum><text>with respect to whom no deduction is allowable with respect to another taxpayer under section 151,</text></subparagraph><subparagraph id="H0638F982616C4AD1806DC87273405821"><enum>(D)</enum><text>who has not been allowed a credit under this section for any sale during the 3-year period ending on the date of the sale of such vehicle, and</text></subparagraph><subparagraph id="H2EAD053D8E374528B7055862D195E2D1"><enum>(E)</enum><text display-inline="yes-display-inline">who possesses a certificate issued by the seller that certifies—</text><clause id="H546A37B065F14419B282D0904507A296"><enum>(i)</enum><text>that the vehicle is a previously-owned qualified plug-in electric drive motor vehicle,</text></clause><clause id="H3ABAD6C320234AB2B4BA7E1BD9E6D084"><enum>(ii)</enum><text>the capacity of the battery at time of sale, and</text></clause><clause id="H0E34EDD9EF7D4D6690B77C3933B4C705"><enum>(iii)</enum><text>such other information as the Secretary may require. </text></clause></subparagraph></paragraph><paragraph id="HCD3F89050F7E45739C41B51A0AAB742C"><enum>(4)</enum><header>Motor vehicle; capacity</header><text>The terms <quote>motor vehicle</quote> and <quote>capacity</quote> have the meaning given such terms in paragraphs (2) and (4) of section 30D(d), respectively.</text></paragraph></subsection><subsection id="HE98578C695954F118E2E11017B93658B"><enum>(d)</enum><header>Application of certain rules</header><text>For purposes of this section, rules similar to the rules of paragraphs (1), (2), (4), (5), (6), and (7) of section 30D(f) shall apply for purposes of this section.</text></subsection><subsection id="HC0BD762B47364416B740374F45DC4F53"><enum>(e)</enum><header>Certificate submission requirement</header><text display-inline="yes-display-inline">The Secretary may require that the issuer of the certificate described in subsection (c)(3)(E) submit such certificate to the Secretary at the time and in the manner required by the Secretary. </text></subsection><subsection id="H34F24D122C474D6EA39E248C4C0F4501"><enum>(f)</enum><header>Termination</header><text>No credit shall be allowed under this section with respect to sales after December 31, 2025.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H1E68785B3B164AB7A6F6389B8618F193"><enum>(b)</enum><header>Clerical amendment</header><text>The table of sections for subpart A of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after the item relating to section 25D the following new item:</text><quoted-block style="OLC" id="HEAB2D49DC0CC44268A503A4E0CDAF42C" display-inline="no-display-inline"><toc container-level="quoted-block-container" quoted-block="no-quoted-block" lowest-level="section" idref="H7EA7FE80597E4EA2B0348A701FE05067" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded"><toc-entry idref="HA2B3525DF73F415180ABF5A2321032E1" level="section">Sec. 25E. Previously-owned qualified plug-in electric drive motor vehicles.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H738276EA4AA743FAA96EAF8C8BD7C324"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to sales after the date of the enactment of this Act. </text></subsection></section><section id="HAD250C1EBC2D4680BD3023BF69C6F2BF" section-type="subsequent-section" display-inline="no-display-inline"><enum>403.</enum><header>Credit for zero-emission heavy vehicles and zero-emission buses</header><subsection commented="no" id="H524908B13FBF4AD7A588001F679EF273"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subpart D of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by adding at the end the following new section:</text><quoted-block display-inline="no-display-inline" id="H4FA7B9B564CC4DB789FF636DCF846448" style="OLC"><section commented="no" id="H4B1BDAEA1C8D4A5C898EB29900E58516"><enum>45U.</enum><header>Zero-emission heavy vehicle credit</header><subsection commented="no" id="HCB8E9C52C7664AAA84A29CB4C886A57A"><enum>(a)</enum><header>Allowance of credit</header><text display-inline="yes-display-inline">For purposes of section 38, in the case of a manufacturer of a zero-emission heavy vehicle, the zero-emission heavy vehicle credit determined under this section for a taxable year is an amount equal to 10 percent of the sum of the sale price of each zero-emission heavy vehicle sold by such taxpayer during such taxable year. </text></subsection><subsection id="H9CAD02CAFAE14399B97565445BDC3057"><enum>(b)</enum><header>Limitation</header><text>The sale price of a zero-emission heavy vehicle may not be taken into account under subsection (a) to the extent such price exceeds $1,000,000. </text></subsection><subsection id="HA45D85259ECA4EFE91E10336A5024DE7"><enum>(c)</enum><header>Zero-Emission heavy vehicle</header><text display-inline="yes-display-inline">For purposes of this section—</text><paragraph id="HFD107E4815A54D20B9315CA80C803B95"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The term <quote>zero-emission heavy vehicle</quote> means a motor vehicle which—</text><subparagraph id="H147E309A4FCE465C8C3515BFABC20609"><enum>(A)</enum><text display-inline="yes-display-inline">has a gross vehicle weight rating of not less than 14,000 pounds, </text></subparagraph><subparagraph id="H69FB553DC35F46C7A8D621C31DDFAAAA"><enum>(B)</enum><text>is not powered or charged by an internal combustion engine, and</text></subparagraph><subparagraph id="HB3CC054F485A480DA35C403F7FC761EA"><enum>(C)</enum><text display-inline="yes-display-inline">is propelled solely by an electric motor which draws electricity from a battery or fuel cell.</text></subparagraph></paragraph><paragraph id="HCB7E6CF6721E4B15B7E5D795C686D1CC"><enum>(2)</enum><header>Motor vehicle; manufacturer</header><text>The term <quote>motor vehicle</quote> and <quote>manufacturer</quote> have the meaning given such terms in paragraphs (2) and (3) of section 30D(d), respectively.</text></paragraph></subsection><subsection id="H3FEF6726C6C94981B793F7B8784F60D9"><enum>(d)</enum><header>Special rules</header><paragraph id="HC192EBF3ED3143F08C98555F30A0C663"><enum>(1)</enum><header>Sale price</header><text display-inline="yes-display-inline">For purposes of this section, the sale price of a zero-emission heavy vehicle shall be reduced by any rebate or other incentive given before, on, or after the date of the sale.</text></paragraph><paragraph id="H8585BCCF9D2242C0B82B3CD530835A20"><enum>(2)</enum><header>Domestic use</header><text>No credit shall be allowed under subsection (a) with respect to a zero-emission heavy vehicle to a manufacturer who knows or has reason to know that such vehicle will not be used primarily in the United States or a possession of the United States.</text></paragraph><paragraph id="H1F01BF510ABF4A9C874E2F69693CBC41"><enum>(3)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section.</text></paragraph></subsection><subsection id="HB243EA7FE46C4CFBAB5108A7628AF0C0"><enum>(e)</enum><header>Termination</header><text>This section shall not apply to sales after December 31, 2025. </text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="H6CC3C27218884867A757FD961F1047B8"><enum>(b)</enum><header>Credit made part of general business credit</header><text>Subsection (b) of <external-xref legal-doc="usc" parsable-cite="usc/26/38">section 38</external-xref> is amended by striking <quote>plus</quote> at the end of paragraph (32), by striking the period at the end of paragraph (33) and inserting <quote>, plus</quote>, and by adding at the end the following new paragraph:</text><quoted-block display-inline="no-display-inline" id="H711D74700160440698EA2459F818D77D" style="OLC"><paragraph commented="no" id="HDDE99C4454F64917A6E0CCF181B088F0"><enum>(34)</enum><text display-inline="yes-display-inline">the zero-emission heavy vehicle credit determined under section 45U.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="HF3FE70B1DC1943FDB9666A1CF196D75B"><enum>(c)</enum><header>Clerical amendment</header><text display-inline="yes-display-inline">The table of sections for subpart D of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by adding at the end the following new item:</text><toc regeneration="no-regeneration"><toc-entry level="section"><quote>Sec. 45U. Zero-emission heavy vehicle credit.</quote>.</toc-entry></toc></subsection><subsection commented="no" id="H32ED83231468449CAB9CFD654420E3FF"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to sales after the date of the enactment of this Act.</text></subsection></section><section id="H51DEA4678E7E4AE2BE32A449200DDEC4"><enum>404.</enum><header>Qualified fuel cell motor vehicles</header><subsection id="H29592BA9CF3542BB82570BC61253329A"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/30B">Section 30B(k)(1)</external-xref> is amended by striking <quote>December 31, 2020</quote> and inserting <quote>December 31, 2025</quote>. </text></subsection><subsection id="H5E5B1C2214FA480CBF21BF017D26CF98"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to property placed in service after December 31, 2020.</text></subsection></section><section id="HB49479D2CC424064A45EBCEF303BC9AE" display-inline="no-display-inline" section-type="subsequent-section" commented="no"><enum>405.</enum><header>Alternative fuel refueling property credit</header><subsection id="H9C4B2A62F71A49D080610379A2028B94" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/30C">Section 30C(g)</external-xref> is amended by striking <quote>December 31, 2020</quote> and inserting <quote>December 31, 2025</quote>.</text></subsection><subsection id="H28E3A20CEE4D4758A18703C041A83122" commented="no"><enum>(b)</enum><header>Additional credit for certain electric charging property</header><paragraph id="H3485074AB0E54926A121D78072D64F70"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30C">Section 30C(a)</external-xref> is amended—</text><subparagraph id="H4E70800DD321460998F28E898E61E3BC"><enum>(A)</enum><text>by striking <quote>equal to 30 percent</quote> and inserting the following: </text><quoted-block style="OLC" id="HF31DB2BA43ED481198C577C7EECB82A1" display-inline="yes-display-inline"><text>equal to the sum of—</text><paragraph id="H8297A371EEA0424BAF57B555BF8D5BEC"><enum>(1)</enum><text display-inline="yes-display-inline">30 percent</text></paragraph><after-quoted-block>,</after-quoted-block></quoted-block></subparagraph><subparagraph id="H28543BCE912C4654AC59249589225D04"><enum>(B)</enum><text>by striking the period at the end and inserting <quote>, plus</quote>, and</text></subparagraph><subparagraph id="H5404BC30268347559DD2882AAB1A9C0B"><enum>(C)</enum><text>by adding at the end the following new paragraph: </text><quoted-block style="OLC" id="H9AC46A05F67242CAA0AA00982AD3F11A" display-inline="no-display-inline"><paragraph id="HDD787CAC3835472C952233187D7A8C1F"><enum>(2)</enum><text display-inline="yes-display-inline">20 percent of so much of such cost as exceeds the limitation under subsection (b)(1) that does not exceed the amount of cost attributable to qualified alternative vehicle refueling property (determined without regard to paragraphs (1), (2)(A), and (2)(B) of subsection (c)) which—</text><subparagraph id="H715A1E38728F48C4BF60FD7442DF403C"><enum>(A)</enum><text display-inline="yes-display-inline">is intended for general public use and recharges motor vehicle batteries with no associated fee or payment arrangement,</text></subparagraph><subparagraph id="HD7F6E93798094034A50228C0DB233B82"><enum>(B)</enum><text display-inline="yes-display-inline">is intended for general public use and accepts payment via a credit card reader, or</text></subparagraph><subparagraph id="HA422D9D5A52B4F3BB5C37E6E973EDF37"><enum>(C)</enum><text display-inline="yes-display-inline">is intended for use exclusively by fleets of commercial or governmental vehicles.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="H08CFA32B5F4A492DB4AFBFDD5502B597"><enum>(2)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30C">Section 30C(b)</external-xref> is amended—</text><subparagraph id="H807D76A1BCC7408E8C94CE26B265D7B8"><enum>(A)</enum><text>by striking <quote>The credit allowed under subsection (a)</quote> and inserting <quote>The amount of cost taken into account under subsection (a)(1)</quote>,</text></subparagraph><subparagraph id="H9350568F0D9746BFBE25DE402CC144DE"><enum>(B)</enum><text>by striking <quote>$30,000</quote> and inserting <quote>$100,000</quote>, and</text></subparagraph><subparagraph id="H7FEC46BBA7E849688EBD94CF26F23E63"><enum>(C)</enum><text>by striking <quote>$1,000</quote> and inserting <quote>$3,333.33</quote>.</text></subparagraph></paragraph></subsection><subsection id="H80CAB2506E554C14AD297561093DFDB1" commented="no"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall apply to property placed in service after December 31, 2020.</text></subsection></section><section id="H41F713A9A69745D3AF3A327248BD9A39"><enum>406.</enum><header>Modification of employer-provided fringe benefits for bicycle commuting</header><subsection id="H71B3B6E48E17411296C3BA3A21110CE2"><enum>(a)</enum><header>Repeal of suspension of exclusion for qualified bicycle commuting reimbursement</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/132">Section 132(f)</external-xref> is amended by striking paragraph (8).</text></subsection><subsection id="H64E7471DC50F406292DDA99362316128"><enum>(b)</enum><header>Commuting fringe includes bikeshare</header><paragraph id="H3CBE8109E09147A38BE21C98BE09B038"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Clause (i) of <external-xref legal-doc="usc" parsable-cite="usc/26/132">section 132(f)(5)(F)</external-xref> is amended by striking <quote>a bicycle</quote> and all that follows and inserting <quote>bikeshare, a bicycle, and bicycle improvements, repair, and storage, if the employee regularly uses such bikeshare or bicycle for travel between the employee’s residence and place of employment or mass transit facility that connects an employee to their place of employment.</quote>.</text></paragraph><paragraph commented="no" id="H99BF25AC63B3423E8D2983158AB1B65A"><enum>(2)</enum><header>Bikeshare</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/132">Section 132(f)(5)(F)</external-xref> is amended by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="H2FDA55466F9A43E4B55A442EB2F871B2" style="OLC"><clause commented="no" id="HB8557382E496492F8D6831A616F941D1"><enum>(iv)</enum><header>Bikeshare</header><text display-inline="yes-display-inline">The term <term>bikeshare</term> means a bicycle rental operation at which bicycles are made available to customers to pick up and drop off for point-to-point use within a defined geographic area.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H7B9713B062184B7483CF248132DD117D"><enum>(c)</enum><header>Low-Speed electric bicycles</header><text>Section 132(f)(5)(F), as amended by subsection (b)(2), is amended by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="H7DCB62A972484EA0A826E244085AB3E1" style="OLC"><clause id="HBF25EB0279B54C7C8091A8E47648A592"><enum>(v)</enum><header>Low-speed electric bicycles</header><text display-inline="yes-display-inline">The term <quote>bicycle</quote> includes a two- or three-wheeled vehicle with fully operable pedals and an electric motor of less than 750 watts (1 h.p.), whose maximum speed on a paved level surface, when powered solely by such a motor while ridden by an operator who weighs 170 pounds, is less than 20 mph.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H7F79C5226AE841ABB2F49073AB9619E2"><enum>(d)</enum><header>Modification relating to bicycle commuting month</header><text>Clause (iii) of <external-xref legal-doc="usc" parsable-cite="usc/26/132">section 132(f)(5)(F)</external-xref> is amended to read as follows:</text><quoted-block display-inline="no-display-inline" id="HFD919406343D4F9DAB8C0E420295B501" style="OLC"><clause id="H99B3487C98F8452F9F0D32D6799A673E"><enum>(iii)</enum><header>Qualified bicycle commuting month</header><text display-inline="yes-display-inline">The term <term>qualified bicycle commuting month</term> means, with respect to any employee, any month during which such employee regularly uses a bicycle for a portion of the travel between the employee’s residence and place of employment.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H200C6FFC35AF4BF79349F31B4F9334E0"><enum>(e)</enum><header>Limitation on exclusion</header><paragraph id="H6CA33561A62B4D5EBBEBA84BBD7C74EE"><enum>(1)</enum><header>In general</header><text>Subparagraph (C) of <external-xref legal-doc="usc" parsable-cite="usc/26/132">section 132(f)(2)</external-xref> is amended by striking <quote>applicable annual limitation</quote> and inserting <quote>applicable monthly limitation</quote>.</text></paragraph><paragraph id="HC88817113A2449DFA13699223518FDAE"><enum>(2)</enum><header>Applicable monthly limitation defined</header><text>Clause (ii) of <external-xref legal-doc="usc" parsable-cite="usc/26/132">section 132(f)(5)(F)</external-xref> is amended to read as follows:</text><quoted-block display-inline="no-display-inline" id="H0315FD119F7D478AAF83DCB347CE5CEC" style="OLC"><clause id="HB0DC7F9744C54B9FA6EDBC7CAECDDC79"><enum>(ii)</enum><header>Applicable monthly limitation</header><text display-inline="yes-display-inline">The term <term>applicable monthly limitation</term>, with respect to any employee for any month, means an amount equal to 20 percent of the dollar amount in effect for the month under paragraph (2)(B).</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="HC0968609605E47E1B2D0B051F207E301"><enum>(3)</enum><header>Aggregate limitation</header><text>Subparagraph (B) of <external-xref legal-doc="usc" parsable-cite="usc/26/132">section 132(f)(2)</external-xref> is amended by inserting <quote>and the applicable monthly limitation in the case of any qualified bicycle commuting benefit</quote>.</text></paragraph></subsection><subsection id="H99474F0FA681422FBAAE15C061300EFF"><enum>(f)</enum><header>No constructive receipt</header><text>Paragraph (4) of <external-xref legal-doc="usc" parsable-cite="usc/26/132">section 132(f)</external-xref> is amended by striking <quote>(other than a qualified bicycle commuting reimbursement)</quote>.</text></subsection><subsection id="HD9D2ABF514124147A3B077C55E417FAC"><enum>(g)</enum><header>Conforming amendments</header><text>Paragraphs (1)(D), (2)(C), and (5)(F) of section 132(f) are each amended by striking <quote>reimbursement</quote> each place it appears and inserting <quote>benefit</quote>.</text></subsection><subsection id="H714D0079359F416380AE895CCAA05427"><enum>(h)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2020.</text></subsection></section></title><title id="H6B20B486BFF845C3AC437C9918F8982E"><enum>V</enum><header>Investment in the Green Workforce</header><section id="H3C660AB04234465D93ED4F581DC43A48"><enum>501.</enum><header>Extension of the advanced energy project credit</header><subsection id="H3ACEFE138BA445BC8DE14B7CE7F1BC79"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48C">Section 48C</external-xref> is amended by redesignating subsection (e) as subsection (f) and by inserting after subsection (d) the following new subsection:</text><quoted-block id="H76EBFD4F62694D21BDC704ED2E074084" style="OLC"><subsection id="HB6F261E39DDB4FECAFF78ED752201212" commented="no"><enum>(e)</enum><header>Additional allocations</header><paragraph id="HAF8A352D21B14AE69966C710273C97EB" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 180 days after the date of enactment of this paragraph, the Secretary, after consultation with the Secretary of Energy, shall establish a program to designate amounts of qualifying advanced project credit limitation to qualifying advanced energy projects.</text></paragraph><paragraph id="H94A0A391684547E3A1C72EAB2410B263" commented="no"><enum>(2)</enum><header>Annual limitation</header><subparagraph id="H1247EDD0881B41F3A253BFEF5C0D0358"><enum>(A)</enum><header>In general</header><text>The amount of qualifying advanced project credit limitation that may be designated under this subsection during any calendar year shall not exceed the annual credit limitation with respect to such year.</text></subparagraph><subparagraph id="H71E524E7D5A348A88AB52548EDEDC158" commented="no"><enum>(B)</enum><header>Annual credit limitation</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>annual credit limitation</quote> means $2,500,000,000 for each of calendar years 2021, 2022, 2023, 2024, and 2025, and zero thereafter.</text></subparagraph><subparagraph id="HB969B2C77DA14F4A9D1EC095F60E126A"><enum>(C)</enum><header>Carryover of unused limitation</header><text display-inline="yes-display-inline">If the annual credit limitation for any calendar year exceeds the aggregate amount designated for such year under this subsection, such limitation for the succeeding calendar year shall be increased by the amount of such excess. No amount may be carried under the preceding sentence to any calendar year after 2025.</text></subparagraph></paragraph><paragraph id="HECA9FC33AEEE43A2BF87F8B71C3A1441"><enum>(3)</enum><header>Placed in service deadline</header><text display-inline="yes-display-inline">No credit shall be determined under subsection (a) with respect to any property which is placed in service after the date that is 4 years after the date of the designation under this subsection relating to such property.</text></paragraph><paragraph id="H2B017126D74F4D05BD3655BB50008CE8" commented="no"><enum>(4)</enum><header>Selection criteria</header><text>Selection criteria similar to those in subsection (d)(3) shall apply, except that in determining designations under this subsection, the Secretary, after consultation with the Secretary of Energy, shall—</text><subparagraph id="H0B0F7973EBBC4276AAF2D3CDE2793769"><enum>(A)</enum><text display-inline="yes-display-inline">require that applicants provide written assurances to the Secretary that all laborers and mechanics employed by contractors and subcontractors in the performance of construction, alteration or repair work on a qualifying advanced energy project shall be paid wages at rates not less than those prevailing on projects of a similar character in the locality as determined by the Secretary of Labor in accordance with subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code, and</text></subparagraph><subparagraph id="HAA2C421401F74924B343AAC0FD2D76D7"><enum>(B)</enum><text>give the highest priority to projects which—</text><clause id="H3D08A4DDEA574B90BA5C273A176025B0"><enum>(i)</enum><text>manufacture (other than primarily assembly of components) property described in a subclause of subsection (c)(1)(A)(i) (or components thereof), and</text></clause><clause id="H85E2B0CED9A94B539E4F63EE80E27D5B"><enum>(ii)</enum><text>have the greatest potential for commercial deployment of new applications.</text></clause></subparagraph></paragraph><paragraph id="H72C9179174CC4AE3A582442F02C7272A"><enum>(5)</enum><header>Disclosure of designations</header><text>Rules similar to the rules of subsection (d)(5) shall apply for purposes of this subsection.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HDECC4E75A0FA402AB196D1448E9FBDE4"><enum>(b)</enum><header>Clarification with respect to electrochromatic glass</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48C">Section 48C(c)(1)(A)(i)(V)</external-xref> is amended—</text><paragraph id="HD0DACDF957F54814AFE180C721F4ED94"><enum>(1)</enum><text>by striking <quote>and smart grid</quote> and inserting <quote>, smart grid</quote>, and</text></paragraph><paragraph id="HC54294B66DC14EFB8A3ED51955B060CD"><enum>(2)</enum><text>by inserting <quote>, and electrochromatic glass</quote> before the comma at the end.</text></paragraph></subsection><subsection id="H7D4AA6A974844E48AE3EE4149862466D"><enum>(c)</enum><header>Effective date</header><text>The amendment made by this section shall take effect on the date of the enactment of this Act.</text></subsection><subsection id="H49D13F866E8F4DFEAA47EA6A4FB3DE8B"><enum>(d)</enum><header>Progress report</header><text display-inline="yes-display-inline">During the 30-day period ending on December 31, 2025, the Secretary of the Treasury (or the Secretary’s delegate), after consultation with the Secretary of Labor, shall submit a report to Congress on the domestic job creation, wages associated with such jobs, and the amount of such wages paid as described in <external-xref legal-doc="usc" parsable-cite="usc/26/48C">section 48C(e)(4)(B)</external-xref> of the Internal Revenue Code of 1986, attributable to the amendment made by this section. </text></subsection></section><section id="H0A3CF5C2E7A24BF2B3476AC41B80E094"><enum>502.</enum><header>Labor costs of installing mechanical insulation property</header><subsection id="H105B90FDA86B4B66B9562DE672E18ECD"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is further amended by adding at the end the following new section:</text><quoted-block display-inline="no-display-inline" id="H687622BA56C44911B02DE8B42F0E5147" style="OLC"><section id="H3B7727197EF4413BB6317804F0A03F60"><enum>45V.</enum><header>Labor costs of installing mechanical insulation property</header><subsection id="HF10A792312E34667B840A94D8FCD3B36"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of section 38, the mechanical insulation labor costs credit determined under this section for any taxable year is an amount equal to 10 percent of the mechanical insulation labor costs paid or incurred by the taxpayer during such taxable year.</text></subsection><subsection id="H1BB649F1557B45E7A50E9C2FC80ECA12"><enum>(b)</enum><header>Mechanical insulation labor costs</header><text>For purposes of this section—</text><paragraph id="HF8EEC0CB12FC4F6B85F60D82D4FFB75E"><enum>(1)</enum><header>In general</header><text>The term <quote>mechanical insulation labor costs</quote> means the labor cost of installing mechanical insulation property with respect to a mechanical system referred to in paragraph (2)(A) which was originally placed in service not less than 1 year before the date on which such mechanical insulation property is installed.</text></paragraph><paragraph id="H7AE9F34AD76944C392B1584A37C892DC"><enum>(2)</enum><header>Mechanical insulation property</header><text>The term <quote>mechanical insulation property</quote> means insulation materials, and facings and accessory products installed in connection to such insulation materials—</text><subparagraph id="H2FC064F4761C491FA0CF1AC452FA5587"><enum>(A)</enum><text>placed in service in connection with a mechanical system which—</text><clause id="H6A22CDCEF5684A2392104BC9BAE06164"><enum>(i)</enum><text>is located in the United States, and</text></clause><clause id="H8510679C83044ABE8E9872C67DE75300"><enum>(ii)</enum><text>is of a character subject to an allowance for depreciation, and</text></clause></subparagraph><subparagraph id="HB1946F74A14C463181967247C1323FC8" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">which result in a reduction in energy loss from the mechanical system which is greater than the expected reduction from the installation of insulation materials which meet the minimum requirements of Reference Standard 90.1 (as defined in section 179D(c)(2)). </text></subparagraph></paragraph></subsection><subsection id="H43F1742B5DC74BFD830CD44444528C7E"><enum>(c)</enum><header>Termination</header><text>This section shall not apply to mechanical insulation labor costs paid or incurred after December 31, 2025.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H852B31BE8DAD4534A4EE83284629FD39" commented="no"><enum>(b)</enum><header>Credit allowed as part of general business credit</header><text display-inline="yes-display-inline">Section 38(b), as amended by the preceding provisions of this Act, is further amended by striking <quote>plus</quote> at the end of paragraph (33), by striking the period at the end of paragraph (34) and inserting <quote>, plus</quote>, and by adding at the end the following new paragraph:</text><quoted-block display-inline="no-display-inline" id="HEAA67C7541094B6E9ABD82598BF5F187" style="OLC"><paragraph id="HBC2A49C8F31241DABEF4B2C27E3C021B" commented="no"><enum>(35)</enum><text display-inline="yes-display-inline">the mechanical insulation labor costs credit determined under section 45V(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HC2571704862F4FE99A1384A4F11A3915"><enum>(c)</enum><header>Conforming amendments</header><paragraph id="HA56A924A82C944EFA8DC5C58B76BA561"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/280C">Section 280C</external-xref> is amended by adding at the end the following new subsection:</text><quoted-block style="OLC" id="H0DEDAE349D804F6AADDAE9AF5EC5F409" display-inline="no-display-inline"><subsection id="HAE7B367726A840578649349BFAACB464"><enum>(i)</enum><header>Mechanical insulation labor costs credit</header><paragraph id="H7FF8547210EA4B44A52C00388C294000"><enum>(1)</enum><header>In general</header><text>No deduction shall be allowed for that portion of the mechanical insulation labor costs (as defined in section 45V(b)) otherwise allowable as deduction for the taxable year which is equal to the amount of the credit determined for such taxable year under section 45V(a).</text></paragraph><paragraph id="HDD82E8A62DFA4762BF378C242ABEEE69"><enum>(2)</enum><header>Similar rule where taxpayer capitalizes rather than deducts expenses</header><text>If—</text><subparagraph id="HF0DD41171BAE4081B3389EB8B6FEE4F8"><enum>(A)</enum><text>the amount of the credit determined for the taxable year under section 45V(a), exceeds</text></subparagraph><subparagraph id="H771FA417E3964A679BC32285E29243E0"><enum>(B)</enum><text>the amount allowable as a deduction for such taxable year for mechanical insulation labor costs (determined without regard to paragraph (1)),</text></subparagraph><continuation-text continuation-text-level="paragraph">the amount chargeable to a capital account for the taxable year for such costs shall be reduced by the amount of such excess.</continuation-text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="HDC0069133F844FA4B1629A68BFAE3BDF"><enum>(2)</enum><text>The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is further amended by adding at the end the following new item:</text><quoted-block display-inline="no-display-inline" id="HF086DA71930F46B089E67F1E13EDE673" style="OLC"><toc container-level="quoted-block-container" idref="H687622BA56C44911B02DE8B42F0E5147" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration"><toc-entry idref="H3B7727197EF4413BB6317804F0A03F60" level="section">Sec. 45V. Labor costs of installing mechanical insulation property.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="HB485CFD88E094402A6F098DD4344BB24"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to amounts paid or incurred after December 31, 2020, in taxable years ending after such date.</text></subsection></section><section id="HE6B0962781084D47985AF0A86A7BB68F"><enum>503.</enum><header>Labor standards for certain energy jobs</header><subsection id="H4349B39CE3EB4B91AB6C971B8481D1C6"><enum>(a)</enum><header>Department of labor certification of qualified entities</header><paragraph id="H62B22F84050E4F36BD833F332AA8661C"><enum>(1)</enum><header>Definitions</header><text>In this subsection—</text><subparagraph id="HF9206EABE2124EBF928B20BE591AAFFF"><enum>(A)</enum><header>Applicable construction project</header><text display-inline="yes-display-inline">The term <quote>applicable construction project</quote> means, with respect to any entity—</text><clause id="HA690E03E3067434BAEEDCEFB0653BBFF"><enum>(i)</enum><text>the construction of any dwelling unit referred to in <external-xref legal-doc="usc" parsable-cite="usc/26/45L">section 45L(a)(3)</external-xref> of the Internal Revenue Code of 1986,</text></clause><clause id="H7CF1A2DE2FF54F5BA187273974645DCC"><enum>(ii)</enum><text>the installation of any qualified energy property described in section 48D(a)(1) of such Code,</text></clause><clause id="H39CAAB414D2449579F402DBD31B93E21"><enum>(iii)</enum><text display-inline="yes-display-inline">the installation of any qualified property referred to in paragraph (2) of section 48D(a) of such Code as part of the construction of any qualified investment credit facility described in such paragraph, and</text></clause><clause id="HA58C403B917E41AF8AE2D30E6964A086"><enum>(iv)</enum><text>the installation of any energy efficient commercial building property (as defined in section 179D(c)(1) of such Code).</text></clause></subparagraph><subparagraph id="H7AFF6D34D75E46A9AB971DF6FA7E72D4"><enum>(B)</enum><header>Covered project labor agreement</header><text>The term <quote>covered project labor agreement</quote> means a project labor agreement that—</text><clause id="HC57BC977FEAB4B99B87170AD81ABF96C"><enum>(i)</enum><text>binds all contractors and subcontractors on the construction project through the inclusion of appropriate specifications in all relevant solicitation provisions and contract documents,</text></clause><clause id="H691881AB85AC4D31BCE6082BBF79EC64"><enum>(ii)</enum><text>allows all contractors and subcontractors to compete for contracts and subcontracts without regard to whether they are otherwise a party to a collective bargaining agreement,</text></clause><clause id="H6F155874973448A2A6EC9A413D31BB58"><enum>(iii)</enum><text>contains guarantees against strikes, lockouts, and other similar job disruptions,</text></clause><clause id="H5D308EDA4BA6460EA7728FC32BF198A4"><enum>(iv)</enum><text>sets forth effective, prompt, and mutually binding procedures for resolving labor disputes arising during the covered project labor agreement, and</text></clause><clause id="H7B3809F26D7C48EA8F64C1C0F739BFC2"><enum>(v)</enum><text>provides other mechanisms for labor-management cooperation on matters of mutual interest and concern, including productivity, quality of work, safety, and health.</text></clause></subparagraph><subparagraph id="H1A78980175D14987B316BF9D0C772672"><enum>(C)</enum><header>Project labor agreement</header><text>The term <quote>project labor agreement</quote> means a pre-hire collective bargaining agreement with one or more labor organizations that establishes the terms and conditions of employment for a specific construction project and is described in section 8(f) of the National Labor Relations Act (<external-xref legal-doc="usc" parsable-cite="usc/29/158">29 U.S.C. 158(f)</external-xref>).</text></subparagraph><subparagraph id="HED7C3171F0E74333B88DF1C53BA6B858"><enum>(D)</enum><header>Qualified entity</header><text>The term <quote>qualified entity</quote> means an entity that the Secretary of Labor certifies as a qualified entity in accordance with paragraph (2).</text></subparagraph><subparagraph id="HE4B4E9E496F641D899DA6DD4488D50EE"><enum>(E)</enum><header>Registered apprenticeship program</header><text display-inline="yes-display-inline">The term <quote>registered apprenticeship program</quote> means an apprenticeship program registered and certified with the Secretary of Labor under section 1 of the National Apprenticeship Act (<external-xref legal-doc="usc" parsable-cite="usc/29/50">29 U.S.C. 50</external-xref>).</text></subparagraph></paragraph><paragraph id="H0848C3905F0E4BC798696F63D87B8D81"><enum>(2)</enum><header>Certification of qualified entities</header><subparagraph id="H750B7C2E6C2F43F3A88D278F6EE8AE4A"><enum>(A)</enum><header>In general</header><text>The Secretary of Labor shall establish a process for certifying entities that submit an application under subparagraph (B) as qualified entities with respect to applicable construction projects for purposes of the amendments made by subsections (b), (c), and (d).</text></subparagraph><subparagraph id="H6DA5F56154764C1BA8BC35639D818E1E"><enum>(B)</enum><header>Application process</header><clause id="H55F75274AAAA44CEB31158249ADD4B14"><enum>(i)</enum><header>In general</header><text>An entity seeking certification as a qualified entity under this paragraph shall submit an application to the Secretary of Labor at such time, in such manner, and containing such information as the Secretary may reasonably require, including information to demonstrate compliance with the requirements under subparagraph (C).</text></clause><clause id="HA2C7DE5BD48D48E7A29B523C735521CE"><enum>(ii)</enum><header>Requests for additional information</header><text>Not later than 1 year after receiving an application from an entity under clause (i)—</text><subclause id="H8139869327A145DB84C41AEDF120C587"><enum>(I)</enum><text>the Secretary of Labor may request additional information from the entity in order to determine whether the entity is in compliance with the requirements under subparagraph (C), and</text></subclause><subclause id="HAEE173A9F457418081265B4EBD762491"><enum>(II)</enum><text>the entity shall provide such additional information.</text></subclause></clause><clause id="H9375CF402C104B53A45299A51A2FFB9C"><enum>(iii)</enum><header>Determination deadline</header><text>The Secretary of Labor shall make a determination on whether to certify an entity under this subsection not later than—</text><subclause id="HD248A27F169F48DAA5382602DCDE4FF8"><enum>(I)</enum><text>in a case in which the Secretary requests additional information described in paragraph (2)(B)(ii), 1 year after the Secretary receives such additional information from the entity, or</text></subclause><subclause id="HD8DF92ADC1144977B952EAF039EA6EDB"><enum>(II)</enum><text>in a case that is not described in subclause (I), 1 year after the date on which the entity submits the application under clause (i).</text></subclause></clause><clause id="HB76299A9570644F8AF579BFC8BBB0A0F" commented="no"><enum>(iv)</enum><header>Precertification remedies</header><text>The Secretary shall consider any corrective actions taken by an entity seeking certification under this paragraph to remedy an administrative merits determination, arbitral award or decision, or civil judgment identified under subparagraph (C)(iii) and shall impose as a condition of certification any additional remedies necessary to avoid further or repeated violations.</text></clause></subparagraph><subparagraph id="H63145395011F499886523D17F4BB6694"><enum>(C)</enum><header>Labor standards requirements</header><text>The Secretary of Labor shall require an entity, as a condition of certification under this subsection, to satisfy each of the following requirements—</text><clause id="HA3FA844138034338906ABCC5F58FDB04"><enum>(i)</enum><text>The entity shall ensure that all laborers and mechanics employed by contractors and subcontractors in the performance of any applicable construction project shall be paid wages at rates not less than those prevailing on projects of a similar character in the locality as determined by the Secretary of Labor in accordance with subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code (commonly known as the <quote>Davis-Bacon Act</quote>).</text></clause><clause id="H68977B7BB1FF402E8AA4F60E00261AB0"><enum>(ii)</enum><text>The entity shall be a party to, or require contractors and subcontractors in the performance of any applicable construction project to consent to, a covered project labor agreement.</text></clause><clause id="H87E55CCF1F2B445892BE037954567E3A"><enum>(iii)</enum><text>The entity, and all contractors and subcontractors in performance of any applicable construction project, shall represent in the application submitted under subparagraph (B) whether there has been any administrative merits determination, arbitral award or decision, or civil judgment, as defined in guidance issued by the Secretary of Labor, rendered against the entity in the preceding 3 years for violations of—</text><subclause id="HB287980493AC48E4B2ED4CB9FD4A7103"><enum>(I)</enum><text>the Fair Labor Standards Act of 1938 (<external-xref legal-doc="usc" parsable-cite="usc/29/201">29 U.S.C. 201</external-xref> et seq.),</text></subclause><subclause id="H9F3B55B5B5C24406863E28B6B34E17FB"><enum>(II)</enum><text>the Occupational Safety and Health Act of 1970 (<external-xref legal-doc="usc" parsable-cite="usc/29/651">29 U.S.C. 651</external-xref> et seq.),</text></subclause><subclause id="H9D38BE898159418B88E2376D9A38AA53"><enum>(III)</enum><text>the Migrant and Seasonal Agricultural Worker Protection Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1801">29 U.S.C. 1801</external-xref> et seq.),</text></subclause><subclause id="H112CDDF2436F43F598C4850BB896B7C9"><enum>(IV)</enum><text>the National Labor Relations Act (<external-xref legal-doc="usc" parsable-cite="usc/29/151">29 U.S.C. 151</external-xref> et seq.),</text></subclause><subclause id="H85ECA7FFAA8C4964B02FB101F6A72401"><enum>(V)</enum><text>subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code (commonly known as the <quote>Davis-Bacon Act</quote>),</text></subclause><subclause id="HCB78516838A047D08FC3504FB0F34030"><enum>(VI)</enum><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/41/67">chapter 67</external-xref> of title 41, United States Code (commonly known as the <quote>Service Contract Act</quote>),</text></subclause><subclause id="H5101F6FCDF644500A96A0B230989FCE5"><enum>(VII)</enum><text>Executive Order 11246 (<external-xref legal-doc="usc" parsable-cite="usc/42/2000e">42 U.S.C. 2000e</external-xref> note; relating to equal employment opportunity),</text></subclause><subclause id="HDA2C1069FDD74F9AB4B46C0D6D6F0D65"><enum>(VIII)</enum><text>section 503 of the Rehabilitation Act of 1973 (<external-xref legal-doc="usc" parsable-cite="usc/29/793">29 U.S.C. 793</external-xref>),</text></subclause><subclause id="HECEB91419A0C489D9CC911D141786F5B"><enum>(IX)</enum><text>section 4212 of title 38, United States Code,</text></subclause><subclause id="HE6C4606F280F452180EC2F12606F342F"><enum>(X)</enum><text>the Family and Medical Leave Act of 1993 (<external-xref legal-doc="usc" parsable-cite="usc/29/2601">29 U.S.C. 2601</external-xref> et seq.),</text></subclause><subclause id="H0CBAEFC7EC874750A3BB4F39CB257714"><enum>(XI)</enum><text>title VII of the Civil Rights Act of 1964 (<external-xref legal-doc="usc" parsable-cite="usc/42/2000e">42 U.S.C. 2000e</external-xref> et seq.),</text></subclause><subclause id="H9F82679BE5734D7B8B801DC1A653DE89"><enum>(XII)</enum><text>the Americans with Disabilities Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/42/12101">42 U.S.C. 12101</external-xref> et seq.),</text></subclause><subclause id="HDFC78CA5FF9844A192F2EA6BDB569FED"><enum>(XIII)</enum><text>the Age Discrimination in Employment Act of 1967 (<external-xref legal-doc="usc" parsable-cite="usc/29/621">29 U.S.C. 621</external-xref> et seq.),</text></subclause><subclause id="HEB77F134F49C4A47BFA8E03023714491"><enum>(XIV)</enum><text>Federal Government standards establishing a minimum wage for contractors, or</text></subclause><subclause id="HDF373B94FD2140849C85B28BAD36CFB4"><enum>(XV)</enum><text>equivalent State laws, as defined in guidance issued by the Secretary of Labor.</text></subclause></clause><clause id="H6778886F68DD493A83BA1391F4147741"><enum>(iv)</enum><text>The entity, and all contractors and subcontractors in the performance of any applicable construction project, shall not require mandatory arbitration for any dispute involving a worker engaged in a service for the entity.</text></clause><clause id="HC1C5E48E3D874F1A993B215545FA4326"><enum>(v)</enum><text>The entity, and all contractors and subcontractors in the performance of any applicable construction project, shall consider an individual performing any service in such performance as an employee (and not an independent contractor) of the entity, contractor, or subcontractor, respectively, unless—</text><subclause id="HDB1499CBEA2748D3A331B010D8E7E3EB"><enum>(I)</enum><text>the individual is free from control and direction in connection with the performance of the service, both under the contract for the performance of the service and in fact,</text></subclause><subclause id="HEE7072456C41455F9BDB1E6CA7D1F7A8"><enum>(II)</enum><text>the service is performed outside the usual course of the business of the entity, contractor, or subcontractor, respectively, and</text></subclause><subclause id="HB230654130B4403598DC312417F3DAE7"><enum>(III)</enum><text>the individual is customarily engaged in an independently established trade, occupation, profession, or business of the same nature as that involved in such service.</text></subclause></clause><clause id="H96B55B0DD417462B8CAAC1CD2AC68229"><enum>(vi)</enum><text>The entity shall prohibit all contractors and subcontractors in the performance of any applicable construction project from hiring employees through a temporary staffing agency unless the relevant State workforce agency certifies that temporary employees are necessary to address an acute, short-term labor demand.</text></clause><clause id="H1A815E82DCF54E438EB07964F54FA27E"><enum>(vii)</enum><text>The entity shall require all contractors, subcontractors, successors in interest of the entity, and other entities that may acquire the entity, in the performance or acquisition of any applicable construction project, to have an explicit neutrality policy on any issue involving the organization of employees of the entity, and all contractors and subcontractors in the performance of any applicable construction project, for purposes of collective bargaining.</text></clause><clause id="H6A68BA117D644E5EB5EAC27B3FD1E710"><enum>(viii)</enum><text>The entity shall, for each skilled craft employed on any applicable construction project, demonstrate an ability to use and commit to use individuals enrolled in a registered apprenticeship program, which such individuals shall, to the greatest extent practicable, constitute not less than 20 percent of the individuals working on such project.</text></clause><clause id="H088D7B2CF1B14759B11B77101DCDB606"><enum>(ix)</enum><text>The entity, and all contractors and subcontractors in the performance of any applicable construction project, shall not request or otherwise consider the criminal history of an applicant for employment before extending a conditional offer to the applicant, unless—</text><subclause id="HAB763C3FEA0C4640AC3D7BEF70A63259"><enum>(I)</enum><text>a background check is otherwise required by law,</text></subclause><subclause id="H37ADB70B0AF1467182FBE468F2D705F9"><enum>(II)</enum><text>the position is for a Federal law enforcement officer (as defined in section 115(c)(1) of title 18, United States Code) position, or</text></subclause><subclause id="H1D5B0CBA1DFB45BABD61351341A3FF75"><enum>(III)</enum><text>the Secretary of Labor, after consultation with the Secretary of Energy, certifies that precluding criminal history prior to the conditional offer would pose a threat to national security.</text></subclause></clause></subparagraph><subparagraph id="H9B3E72C43F474FD895E31C81AAE26F78"><enum>(D)</enum><header>Davis-bacon act</header><text>The Secretary of Labor shall have, with respect to the labor standards described in subparagraph (C)(i), the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States Code.</text></subparagraph><subparagraph id="HE9DB2C339F8A4A848314EADBE85F241F"><enum>(E)</enum><header>Period of validity for certifications</header><text>A certification made under this subsection shall be in effect for a period of 5 years. An entity may reapply to the Secretary of Labor for an additional certification under this subsection in accordance with the application process under paragraph (2)(B).</text></subparagraph><subparagraph id="H45E4D231162A4E40A1E4558881C57E69"><enum>(F)</enum><header>Revocation of qualified entity status</header><text>The Secretary of Labor may revoke the certification of an entity under this subsection as a qualified entity at any time in which the Secretary reasonably determines the entity is no longer in compliance with paragraph (2)(C).</text></subparagraph><subparagraph id="HE1A467D9E8E54FDC9CEAFE65777200FC"><enum>(G)</enum><header>Certification may cover more than 1 substantially similar project</header><text display-inline="yes-display-inline">The Secretary of Labor may make certifications under this paragraph which apply with respect to more than 1 project if the projects to which such certification apply are substantially similar projects which meet the requirements of this subsection. Such projects shall be treated as a specific construction project for purposes of paragraph (1)(C).</text></subparagraph></paragraph><paragraph id="H8F3DA0D464D54935BD28C3A8F157FBB3"><enum>(3)</enum><header>Authorization of appropriations</header><text>There is authorized to be appropriated to carry out this section $10,000,000 for fiscal year 2020 and each fiscal year thereafter.</text></paragraph></subsection><subsection id="H085BBDF98FFB43038F6DAD9EC102CFC7"><enum>(b)</enum><header>Jobs in energy credit</header><paragraph id="H0725F8A59C6A415FA1F7EBB2C51D4638"><enum>(1)</enum><header>In general</header><text>Subpart E of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 is amended by inserting after section 48C the following new section:</text><quoted-block style="OLC" id="H0FFD4113D7174538BB6774104FB77CB8" display-inline="no-display-inline"><section id="HE51FBBFAADD94840B4574C9E9F1AEB84"><enum>48D.</enum><header>Jobs in energy credit</header><subsection id="H73B61E85D5674D1D856DFBC9B55D12D9"><enum>(a)</enum><header>Investment credit for qualified property</header><text display-inline="yes-display-inline">For purposes of section 46, the jobs in energy credit for any taxable year is an amount equal to 10 percent of the basis of any qualified energy property placed in service by the taxpayer during such taxable year if the installation of such property is performed by a qualified entity with respect to such property.</text></subsection><subsection id="H1190F4B971DC462B86D470D126D9BD37"><enum>(b)</enum><header>Qualified energy property</header><text>For purposes of this section, the term <quote>qualified energy property</quote> means—</text><paragraph id="HFE8C95F063F242A89F00DB26D9E36D73"><enum>(1)</enum><text>energy property (as defined in section 48(a)(3)), or</text></paragraph><paragraph id="H765BD5D13E3E4311B35718C569DB7489"><enum>(2)</enum><text>qualified property which is part of a qualified investment credit facility (as defined in section 48(a)(5) without regard to clause (a)(5)(C)(iii)) which is originally placed in service after December 31, 2020.</text></paragraph></subsection><subsection id="H62C02216544E4A7988081D468E7892DB"><enum>(c)</enum><header>Qualified entity</header><text display-inline="yes-display-inline">For purposes of this section—</text><paragraph id="H545ED0AE67754CEDB2FF504FA30FB6E6"><enum>(1)</enum><header>In general</header><text>The term <quote>qualified entity</quote> means, with respect to the installation of any qualified energy property, an entity which is certified by the Secretary of Labor as being in compliance with all of the applicable requirements under section 503(a) of the GREEN Act of 2020 with respect to such installation at all times during the period beginning on the date on which the installation of such property begins and ending on the date on which such property is placed in service.</text></paragraph><paragraph id="HBE8323EB0ABB4012BBA64882102E8529"><enum>(2)</enum><header>Certification of facility required</header><text>In the case of any qualified property referred to in subsection (b)(2), an entity shall be treated as a qualified entity with respect to the installation of such property only if the Secretary of Labor has certified that the construction of the qualified investment credit facility of which such qualified property is a part as being in compliance with all of the applicable requirements under section 503(a) of the GREEN Act of 2020 for the period referred to in paragraph (1).</text></paragraph></subsection><subsection id="HFED5256B99394E0BB8D7ABED135A3B7C"><enum>(d)</enum><header>Special Rules</header><paragraph id="HF53E2BEB6F9F4D44A134EB44BFC4B4EE"><enum>(1)</enum><header>Certain progress expenditure rules made applicable</header><text>Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of subsection (a).</text></paragraph><paragraph id="HD25E38DA2028453AAFB6EF6EADA13A46"><enum>(2)</enum><header>Special rule for property financed by subsidized energy financing or industrial development bonds</header><text>For purposes of subsection (a), rules similar to the rules of section 48(a)(4) shall apply for purposes of determining the basis of any qualified energy property.</text></paragraph><paragraph id="H4A752F11312542B38454C0D6F8382859"><enum>(3)</enum><header>Recapture</header><text>If the Secretary of Labor revokes the certification of a qualified entity with respect to the installation of any property, the tax imposed under this chapter on the taxpayer to whom the credit determined under this section is allowed shall be increased for the taxable year which includes the date of such revocation by an amount equal to the aggregate decrease in the credits allowed under section 38 for all prior taxable years which would have resulted solely from reducing to zero any credit determined under this section with respect to such property.</text></paragraph><paragraph id="HBD205215BFFA443DB796B72B5108AA1E"><enum>(4)</enum><header>Election not to have section apply</header><text>This section shall not apply with respect to any taxpayer for any taxable year if such taxpayer elects (at such time and in such manner as the Secretary may prescribe) not to have this section apply.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H58C9BA7DFDF34204A14B41B26B05C31C"><enum>(2)</enum><header>Conforming amendments</header><subparagraph id="H8D318D114C384BDA84971248CE97481E"><enum>(A)</enum><text>Section 46 of such Code is amended by striking <quote>and</quote> at the end of paragraph (5), by striking the period at the end of paragraph (6) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text><quoted-block id="H3488F55CF2D6451388016F1ACB8C8D36" style="OLC"><paragraph id="H797A3C5BBEA9418ABB65827E1C523213"><enum>(7)</enum><text>the jobs in energy credit.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph id="H49328D3E678E448D9BD376DCB211ACF6"><enum>(B)</enum><text>Section 49(a)(1)(C) of such Code is amended by striking <quote>and</quote> at the end of clause (iv), by striking the period at the end of clause (v) and inserting a comma, and by adding at the end the following new clause:</text><quoted-block id="H7B2BAF9D584540C085852062C629B51C" style="OLC"><clause id="HE9DE6DD83B43495C8012FD897DD8147C"><enum>(vi)</enum><text>the basis of any qualified energy property under section 48D.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph id="HBEF23516ABEA4B2A9916405E510E8DCB"><enum>(C)</enum><text>Section 50(a)(2)(E) of such Code is amended by striking <quote>or 48C(b)(2)</quote> and inserting <quote>48C(b)(2), or 48D(d)(1)</quote>.</text></subparagraph><subparagraph id="H4453B02C41DE48489B69C0D191F14390"><enum>(D)</enum><text>The table of sections for subpart E of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 48C the following new item:</text><quoted-block style="OLC" id="H3F5EC76E1EF542138A84E612F5A3A62E" display-inline="no-display-inline"><toc container-level="quoted-block-container" quoted-block="no-quoted-block" lowest-level="section" idref="H0FFD4113D7174538BB6774104FB77CB8" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded"><toc-entry idref="HE51FBBFAADD94840B4574C9E9F1AEB84" level="section">Sec. 48D. Jobs in energy credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="HF8FCA68AC82447E29E566F3B9E6359E3"><enum>(3)</enum><header>Effective date</header><text>The amendments made by this section shall apply to periods after December 31, 2020, under rules similar to the rules of <external-xref legal-doc="usc" parsable-cite="usc/26/48">section 48(m)</external-xref> of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).</text></paragraph></subsection><subsection id="H5AC5DA9973E44CF499FDDDCAC3DD1D36"><enum>(c)</enum><header>Increase in new energy efficient home credit for contracting with qualified entities</header><paragraph id="H812F4971A6BD4E22841255158B14A4C2"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45L">Section 45L(a)</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following:</text><quoted-block id="H0604DFCF49974141BE20830088A825A8" style="OLC"><paragraph id="H9218A1CC62E64BE9BC774750BB41829F"><enum>(3)</enum><header>Adjustment for qualified entities</header><subparagraph id="H7CFBE4F57DA94620BA013D3930AC5A78"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any dwelling unit which was constructed by an eligible contractor which is certified by the Secretary of Labor as being in compliance with all of the applicable requirements under section 503(a) of the GREEN Act of 2020 with respect to the construction of such dwelling unit, paragraph (2)(A) shall be applied by substituting <quote>$2,700</quote> for <quote>$2,500</quote>.</text></subparagraph><subparagraph id="H7709EF4E376D41BFA205D907CAF9D489"><enum>(B)</enum><header>Recapture of adjustment for qualified entities</header><text>If the Secretary of Labor revokes the certification of a qualified entity with respect to the construction of any qualified new energy efficient home, the tax imposed under this chapter on the taxpayer to whom the credit determined under this section is allowed shall be increased for the taxable year which includes the date of such revocation by an amount equal to the aggregate decrease in the credits allowed under section 38 for all prior taxable years which would have resulted solely from applying this section without regard to subparagraph (A).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H7E37053D47514CC28E6F4E145E73E78B"><enum>(2)</enum><header>Effective date</header><text>The amendment made by this section shall apply to dwelling units acquired after December 31, 2020.</text></paragraph></subsection><subsection id="H86D8EE0996184BBBBFCE9DF0274BBD2C"><enum>(d)</enum><header>Increase in energy efficient commercial building deduction for installation by qualified entities</header><paragraph id="H6A46859FFDBB42508D818CCB5E7114FC"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D(d)</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following:</text><quoted-block id="H4FEF16BCE3F54F0285583308032FBBAB" style="OLC"><paragraph id="H4B0D0FE975CB40E28D90E2791543AE89"><enum>(7)</enum><header>Adjustment for qualified entities</header><text display-inline="yes-display-inline">In the case of any energy efficient commercial building property which was installed by an entity which is certified by the Secretary of Labor as being in compliance with all of the applicable requirements under section 503(a) of the GREEN Act of 2020 with respect to such installation, subsection (b)(1)(A) shall be applied by substituting <quote>$3.20</quote> for <quote>$3</quote>.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H723AB7CAD0194ACC9FF4203AFDAD2157"><enum>(2)</enum><header>Conforming amendment</header><text>Section 179D(d)(1)(A) of such Code is amended by inserting <quote>(or, in the case of property to which paragraph (7) applies, by substituting <quote>$1.07</quote> for <quote>$3.20</quote> in such paragraph)</quote> before the period at the end. </text></paragraph><paragraph id="H5BFED54C3B394EDBAED6BA682DB87DBD"><enum>(3)</enum><header>Effective date</header><text>The amendment made by this section shall apply to property placed in service after December 31, 2020.</text></paragraph></subsection></section></title><title id="HC10E91CB9B0F47F19D41D3B8D441C41B"><enum>VI</enum><header>Environmental Justice</header><section id="HFAFA4F5B4083451EA643C466D77A995D" section-type="subsequent-section"><enum>601.</enum><header>Qualified environmental justice program credit</header><subsection id="H3385591D0BFC4D98AA55A95516594007"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subpart C of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by adding at the end the following new section: </text><quoted-block style="OLC" id="H72E95B5911D248D4930C0ED27AC2C433" display-inline="no-display-inline"><section id="H9689D37A85564F1FB7ABB0D7BC5417D1"><enum>36C.</enum><header>Qualified environmental justice programs</header><subsection id="H669812AE42264F76B80EC2889AF4BB55"><enum>(a)</enum><header>Allowance of credit</header><text display-inline="yes-display-inline">In the case of an eligible educational institution, there shall be allowed as a credit against the tax imposed by this subtitle for any taxable year an amount equal to the applicable percentage of the amounts paid or incurred by such taxpayer during such taxable year which are necessary for a qualified environmental justice program.</text></subsection><subsection id="H410A7D863FD941B2A1ED6993FB22D3E3"><enum>(b)</enum><header>Qualified environmental justice program</header><text>For purposes of this section—</text><paragraph id="H4E35B90BE7194FC0B89898FCC81F4D77"><enum>(1)</enum><header>In general</header><text>The term <quote>qualified environmental justice program</quote> means a program conducted by one or more eligible educational institutions that is designed to address, or improve data about, qualified environmental stressors for the primary purpose of improving, or facilitating the improvement of, health and economic outcomes of individuals residing in low-income areas or areas populated disproportionately by racial or ethnic minorities. </text></paragraph><paragraph id="HDA558A1C466E444F9717B38FD99319FF"><enum>(2)</enum><header>Qualified environmental stressor</header><text display-inline="yes-display-inline">The term <quote>qualified environmental stressor</quote> means, with respect to an area, a contamination of the air, water, soil, or food with respect to such area or a change relative to historical norms of the weather conditions of such area. </text></paragraph></subsection><subsection id="HB0FCE01D486F416FBC68AA6129D4CB40"><enum>(c)</enum><header>Eligible educational institution</header><text display-inline="yes-display-inline">For purposes of this section, the term <quote>eligible educational institution</quote> means an institution of higher education (as such term is defined in section 101 or 102(c) of the Higher Education Act of 1965) that is eligible to participate in a program under title IV of such Act.</text></subsection><subsection id="H6B034ED201CE4ADC8CA841ED8422A1F5"><enum>(d)</enum><header>Applicable percentage</header><text>For purposes of this section, the term <quote>applicable percentage</quote> means—</text><paragraph id="HDCE251EDC0E84BE78FBC0CE9F6AADAA9"><enum>(1)</enum><text display-inline="yes-display-inline">in the case of a program involving material participation of faculty and students of an institution described in section 371(a) of the Higher Education Act of 1965, 30 percent, and</text></paragraph><paragraph id="H23E49864943644208758EE9264C2971F"><enum>(2)</enum><text display-inline="yes-display-inline">in all other cases, 20 percent. </text></paragraph></subsection><subsection id="HFE2C0F30F0B14328AB2E73EE19DE7B34"><enum>(e)</enum><header>Credit allocation</header><paragraph id="H8787558A0A104E20AC77098426570488"><enum>(1)</enum><header>Allocation</header><subparagraph id="HCF41DF9EC21C4AF0B85E4BEE9E657954"><enum>(A)</enum><header>In general</header><text>The Secretary shall allocate credit dollar amounts under this section to eligible educational institutions, for qualified environmental justice programs, that—</text><clause id="H7BB5894A8844495DB845F4E5CB862843"><enum>(i)</enum><text>submit applications at such time and in such manner as the Secretary may provide, and</text></clause><clause id="H20D7371FB7FB4ADDAF9716D9BD07AB8C"><enum>(ii)</enum><text>are selected by the Secretary under subparagraph (B).</text></clause></subparagraph><subparagraph id="H4CB103759F2B4B3C94CCC00F832FF928"><enum>(B)</enum><header>Selection criteria</header><text display-inline="yes-display-inline">The Secretary, after consultation with the Secretary of Energy, the Secretary of Education, the Secretary of Health and Human Services, and the Administrator of the Environmental Protection Agency, shall select applications on the basis of the following criteria:</text><clause id="H8AF529B825FF4FC7AEBC00B4217E6DC6" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">The extent of participation of faculty and students of an institution described in section 371(a) of the Higher Education Act of 1965.</text></clause><clause id="H6CB36E4558364087951F95EA08272D98"><enum>(ii)</enum><text display-inline="yes-display-inline">The extent of the expected effect on the health or economic outcomes of individuals residing in areas within the United States that are low-income areas or areas populated disproportionately by racial or ethnic minorities.</text></clause><clause id="H45410F7380DD4D0FB39AF830D4BB7E11"><enum>(iii)</enum><text>The creation or significant expansion of qualified environmental justice programs. </text></clause></subparagraph></paragraph><paragraph id="H0C3131AA1CF448F9BE2352BE7C3C9211"><enum>(2)</enum><header>Limitations</header><subparagraph id="H57FA97EA10624880A81F81188FA933C6"><enum>(A)</enum><header>In general</header><text>The amount of the credit determined under this section for any taxable year to any eligible educational institution for any qualified environmental justice program shall not exceed the excess of—</text><clause id="H89D3C830D06E45AFABCEEFC64164EAF9"><enum>(i)</enum><text>the credit dollar amount allocated to such institution for such program under this subsection, over</text></clause><clause id="H51E972C3B274416A9D7AEEF618FEF36F"><enum>(ii)</enum><text>the credits previously claimed by such institution for such program under this section. </text></clause></subparagraph><subparagraph id="H289ED6B4CD154A528E7779B8DBB96C91"><enum>(B)</enum><header>Five-year limitation</header><text display-inline="yes-display-inline">No amounts paid or incurred after the 5-year period beginning on the date a credit dollar amount is allocated to an eligible educational institution for a qualified environmental justice program shall be taken into account under subsection (a) with respect to such institution for such program. </text></subparagraph><subparagraph id="H6E721326ABF4473091DA74B338EFF3E2"><enum>(C)</enum><header>Allocation limitation</header><text>The total amount of credits that may be allocated under the program shall not exceed—</text><clause id="H455A948E5944453A935B381C0318F2B7"><enum>(i)</enum><text>$1,000,000,000 for each of 2021, 2022, 2023, 2024, and 2025, and</text></clause><clause id="HA555979433514198B2CF32E722A70D11"><enum>(ii)</enum><text>$0 for each subsequent year. </text></clause></subparagraph></paragraph></subsection><subsection id="H973CC5D849E9413CB2DBA9B144F2BCC0"><enum>(f)</enum><header>Requirements</header><paragraph id="H6F0D0ED8CB5542C9917510F28CA71B3C"><enum>(1)</enum><header>In general</header><text>An eligible educational institution that has been allocated credit dollar amounts under this section for a qualified environmental justice project for a taxable year shall—</text><subparagraph id="H2313D16A085046F889248989A05D3E97"><enum>(A)</enum><text>make publicly available the application submitted to the Secretary under subsection (e) with respect to such project, and</text></subparagraph><subparagraph id="H5147B751475E46C0A9D9B4A2A8886300"><enum>(B)</enum><text>submit an annual report to the Secretary that describes the amounts paid or incurred for, and expected impact of, such project.</text></subparagraph></paragraph><paragraph id="H23906F84BA87466DB6F80A107DA665A3"><enum>(2)</enum><header>Failure to comply</header><text display-inline="yes-display-inline">In the case of an eligible educations institution that has failed to comply with the requirements of this subsection, the credit dollar amount allocated to such institution under this section is deemed to be $0. </text></paragraph></subsection><subsection id="HE58C936D9E03416F95119CFEAB94275B"><enum>(g)</enum><header>Public disclosure</header><text display-inline="yes-display-inline">The Secretary, upon making an allocation of credit dollar amounts under this section, shall publicly disclose—</text><paragraph id="H44BC30D4E1114521A729FDDE6ADEC70D"><enum>(1)</enum><text>the identity of the eligible educational institution receiving the allocation, and</text></paragraph><paragraph id="H44B6044FB5AE4BC8953ACF893EBD52AC"><enum>(2)</enum><text>the amount of such allocation.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H818843126F2D4752951C40E183842AF9"><enum>(b)</enum><header>Conforming amendments</header><paragraph id="H27F37F93480744F29E81DC1E02591796"><enum>(1)</enum><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/6211">Section 6211(b)(4)(A)</external-xref> is amended by inserting <quote>36C,</quote> after <quote>36B,</quote>.</text></paragraph><paragraph id="HB44F3EBD3AD640C3AA00FD9CC0901643"><enum>(2)</enum><text>Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting <quote>36C,</quote> after <quote>36B,</quote>.</text></paragraph></subsection><subsection id="HEEC413FBE4554EC6B48B98B59F64095D"><enum>(c)</enum><header>Clerical amendment</header><text>The table of sections for subpart C of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after the item relating to section 36B the following new item:</text><quoted-block style="OLC" id="H0EB2435CE9BE4A98BD606B5027524974" display-inline="no-display-inline"><toc container-level="quoted-block-container" quoted-block="no-quoted-block" lowest-level="section" idref="H72E95B5911D248D4930C0ED27AC2C433" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded"><toc-entry idref="H9689D37A85564F1FB7ABB0D7BC5417D1" level="section">Sec. 36C. Qualified environmental justice programs.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H99FCD2C4543043949E96A6C4E2ADC667"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall take effect on the date of the enactment of this Act. </text></subsection></section></title><title id="H3F1E25B9EB0E48FFB2998213800642B6"><enum>VII</enum><header>Treasury report on data from the Greenhouse Gas Reporting Program</header><section id="HE2B21ECE18C64A68A7EDE08F0F0CD404"><enum>701.</enum><header>Report on Greenhouse Gas Reporting Program</header><subsection id="H578A59FF37504F65BF70DC1C01F3B063"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 180 days after the date of the enactment of this Act, the Secretary of the Treasury (or the Secretary’s delegate) shall submit a report to Congress on the utility of the data from the Greenhouse Gas Reporting Program for determining the amount of greenhouse gases emitted by each taxpayer for the purpose of imposing a fee on such taxpayers with respect to such emissions. Such report shall include a detailed description and analysis of any administrative or other challenges associated with using such data for such purpose.</text></subsection><subsection id="H79EDD03AE9A948D4B8E80B20023D69EF"><enum>(b)</enum><header>Greenhouse Gas Reporting Program</header><text display-inline="yes-display-inline">For purposes of this section, the term <quote>Greenhouse Gas Reporting Program</quote> means the reporting program established by the Administrator of the Environmental Protection Agency under title II of division F of the Consolidated Appropriations Act, 2008.</text></subsection></section></title></legis-body></bill> 

