1.Short
title; amendment of 1986 Code; table of contents
(a)This Act may be cited
as the Advanced Energy Tax Incentives
Act of 2010
.
(b)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.
(c)The table of contents for this Act is as follows:
Sec. 1. Short title; amendment
of 1986 Code; table of contents.
TITLE I—Industrial and building energy efficiency
Subtitle A—Expansion of building efficiency
incentives
Sec. 101. Increase in, and extension of, new energy efficient
home credit.
Sec. 102. Modification of deduction for energy efficient
commercial buildings.
Sec. 103. Energy ratings of non-business property.
Sec. 104. Credit for home performance auditor
certifications.
Sec. 105. Performance based energy improvements for
non-business property.
Subtitle B—Expansion of industrial energy efficiency
incentives
Sec. 111. Qualifying efficient industrial process water use
project credit.
Sec. 112. Motor energy efficiency improvement tax
credit.
Sec. 113. Credit for replacement of CFC refrigerant
chiller.
Sec. 114. Modifications in credit for combined heat and power
system property.
Subtitle C—Thermal energy efficiency
Sec. 121. Bonus depreciation for qualifying energy
property.
Sec. 122. Extension of reduced depreciation period for natural
gas distribution facilities.
TITLE II—Vehicle efficiency
Sec. 201. Idling reduction tax credit.
TITLE III—Promotion of domestic manufacturing
Sec. 301. Expansion and modification of qualifying advanced
energy project credit.
Sec. 302. Qualifying industrial energy efficiency project
credit.
TITLE IV—Grid efficiency and reliability
Sec. 401. Energy investment credit for energy storage property
connected to the grid.
Sec. 402. Energy storage property connected to the grid
eligible for new clean renewable energy bonds.
Sec. 403. Energy investment credit for onsite energy
storage.
Sec. 404. Credit for residential energy storage
equipment.
Sec. 405. Clarification of types of energy conservation
subsidies provided by public utilities eligible for income
exclusion.
Sec. 406. Extension of credits related to the production of
electricity from offshore wind.
TITLE V—Carbon capture and sequestration
Sec. 501. Improved availability of the credit for carbon
dioxide sequestration.
TITLE VI—Promotion of clean domestic fuels
Sec. 601. Algae treated as a qualified feedstock for purposes
of the cellulosic biofuel producer credit, etc.
<enum>I</enum><header>Industrial and
building energy efficiency</header>
<subtitle id="id4BCB0F9EED6D4AAA9A2243EBA7E0E3AD"><enum>A</enum><header>Expansion of
building efficiency incentives</header>
<section id="idD547BE378A2A4AEA913CDBB6F29833B9"><enum>101.</enum><header>Increase in,
and extension of, new energy efficient home credit</header>
<subsection id="id5F13DE1F3D584A1980D665FA8770099F"><enum>(a)</enum><header>New tier;
credit amount for new tier</header>
<paragraph id="idBBDAEC07D79746349131F2F816403D5D"><enum>(1)</enum><header>New
tier</header><text>Subsection (c) of section 45L is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="idBBF67EEA7D784A03A399209602A18236" style="OLC">
<subsection id="id4B96E7F9013948D694E2C366D474F4FF"><enum>(c)</enum><header>Energy savings
requirements</header>
<paragraph id="id6A434113039C46C286B76913E488958D"><enum>(1)</enum><header>In
general</header><text>A dwelling unit meets the energy saving requirements of
this subsection if such unit is—</text>
<subparagraph id="id852C16531CC54687BE0B4F201CE4C418"><enum>(A)</enum><text>described in
paragraph (2),</text>
</subparagraph><subparagraph id="id25F2598035FE4020943743D1B0F1115E"><enum>(B)</enum><text>described in
paragraph (3),</text>
</subparagraph><subparagraph id="id356BFA8362494D3DBC3E28427C0E2CE9"><enum>(C)</enum><text>a manufactured
home described in paragraph (4), or</text>
</subparagraph><subparagraph id="idEFB37C3A13D1402FA9213D3C13D6084C"><enum>(D)</enum><text>a manufactured
home described in paragraph (5).</text>
</subparagraph></paragraph><paragraph id="idCC0444891F004B0EB1251163E9FFDD8F"><enum>(2)</enum><header>Dwelling unit
described in paragraph (2)</header><text>A dwelling unit is described in this
paragraph if such unit is certified—</text>
<subparagraph id="idC236E6CBA5F842148654F746BD0BFD78"><enum>(A)</enum><text>to have a level
of annual heating and cooling energy consumption which is at least 50 percent
below the annual level of heating and cooling energy consumption of a
comparable dwelling unit—</text>
<clause id="idB40C7B9712214880A86FB38025EB6D13"><enum>(i)</enum><text>which is
constructed in accordance with the standards of chapter 4 of the 2003
International Energy Conservation Code, as such Code (including supplements) is
in effect on the date of the enactment of the Energy Tax Incentives Act of
2005, and</text>
</clause><clause id="id8B8DC3F2A1F648218DD6856C216DC603"><enum>(ii)</enum><text>for which the
heating and cooling equipment efficiencies correspond to the minimum allowed
under the regulations established by the Department of Energy pursuant to the
National Appliance Energy Conservation Act of 1987 and in effect at the time of
completion of construction, and</text>
</clause></subparagraph><subparagraph id="idFD7DEA067077482DA699B8012F204C49"><enum>(B)</enum><text>to have building
envelope component improvements account for at least <fraction>1/5</fraction>
of such 50 percent.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">The
Secretary, in consultation with the Secretary of Energy shall provide by
regulation for the application of this paragraph in the case of a dwelling unit
in a multifamily building that is more than 3 stories above grade, or in any
other building that is not within the scope of such chapter 4. If, upon the
acquisition of such unit by any person described in subsection
(a)(1)(A)(ii)(I), the amount of the credit allowed under this section with
respect to such unit shall be disclosed to such person.</continuation-text></paragraph><paragraph id="idD63BCDC08CDE4705A48F1B326B09E74F"><enum>(3)</enum><header>Dwelling unit
described in paragraph (3)</header><text>A dwelling unit is described in this
paragraph if such unit is certified—</text>
<subparagraph id="id25CD8B4731134F579315DFDD2B8E2CC5"><enum>(A)</enum><text>to have a level
of annual total energy consumption (including heating, cooling, water heating,
lighting, and appliance energy use) which is at least 50 percent below the
annual level of total energy consumption of a comparable dwelling unit which is
constructed in accordance with the 2004 Supplement of the 2003 International
Energy Conservation Code, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB65E80C65D4C498EBFB96B26CE0ADEA9"><enum>(B)</enum><text>to have building
envelope component improvements account for at least <fraction>1/5</fraction>
of such 50 percent.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9EFD8BB6695A4292A7B05286674FFD3C"><enum>(4)</enum><header>Manufactured
home described in paragraph (4)</header><text>A manufactured home is described
in this paragraph if such manufactured home conforms to Federal Manufactured
Home Construction and Safety Standards (part 3280 of title 24, Code of Federal
Regulations) and meets the requirements of a dwelling unit described in
paragraph (2).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idEA01187EC31D4A25B27A376D4816FAF1"><enum>(5)</enum><header>Manufactured
home described in paragraph (5)</header><text>A manufactured home is described
in this paragraph if such manufactured home conforms to Federal Manufactured
Home Construction and Safety Standards (part 3280 of title 24, Code of Federal
Regulations) and—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idFD1DE76E9DB743FC8A3BC04EF1685A18"><enum>(A)</enum><text>meets the
requirements of—</text>
<clause commented="no" display-inline="no-display-inline" id="id4993B47EABF54B84A161645741EEB281"><enum>(i)</enum><text>a dwelling unit
described in paragraph (2), applied by substituting <quote>30 percent</quote>
for <quote>50 percent</quote> both places it appears therein and by
substituting <quote><fraction>1/3</fraction></quote> for
<quote><fraction>1/5</fraction></quote> in subparagraph (B) thereof, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id6EE946986268484B9610200E56590095"><enum>(ii)</enum><text>a dwelling unit
described in paragraph (3), or</text>
</clause></subparagraph><subparagraph id="idE0F5765BE9B64FE884E6B4D2351AC8D6"><enum>(B)</enum><text>meets the
requirements established by the Administrator of the Environmental Protection
Agency under the Energy Star Labeled Homes program as in effect on the date of
the enactment of the <short-title>Advanced Energy Tax
Incentives Act of 2010</short-title>, or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3254A64B8250413481561629559B4F96"><enum>(C)</enum><text display-inline="yes-display-inline">meets the requirements under the Energy
Star Labeled Homes program established after the date of the enactment of the
<short-title>Advanced Energy Tax Incentives Act of
2010</short-title>.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id4CDF17738B4C4872966F4C5236BD5BD8"><enum>(2)</enum><header>Credit amount
for new tier</header><text>Paragraph (2) of section 45L(a) is amended to read
as follows:</text>
<quoted-block display-inline="no-display-inline" id="id48AFE81C881F423FB117AFA25179CABE" style="OLC">
<paragraph id="idD4D1BEBC96114F4D94E57E114F1FD235"><enum>(2)</enum><header>Applicable
amount</header><text>For purposes of paragraph (1), the applicable amount is an
amount equal to—</text>
<subparagraph id="idEC68B6E154F947ACA210237378DE82BE"><enum>(A)</enum><text>in the case of a
dwelling unit described in paragraph (2) or (4) of subsection (c),
$2,000,</text>
</subparagraph><subparagraph id="id52984962D3B74974B9B305B01B008D0B"><enum>(B)</enum><text>in the case of a
dwelling unit described in paragraph (3) of subsection (c), $5,000,</text>
</subparagraph><subparagraph id="id1B289D2655BF4F158E4AE2BBBCA1F791"><enum>(C)</enum><text>in the case of a
manufactured home described in paragraph (5)(A)(i) or (5)(B) of subsection (c),
$1,500, and</text>
</subparagraph><subparagraph id="id1EAB6829EAE146F59D3BC3F2A5F879D7"><enum>(D)</enum><text>in the case of a
manufactured home described in paragraph (5)(A)(ii) or (5)(C) of subsection
(c), $2,500.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">Nothing in
this section shall permit the same dwelling unit or manufactured home to
qualify for more than one applicable
amount.</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="idD7410B22966847B393F33DB7483A60FB"><enum>(b)</enum><header>Credit
available for rental units, owner-Builders, and qualified low-Income buildings;
credit amount for qualified low-Income buildings</header>
<paragraph id="idA382D4FB8559480FA9F3961351280E91"><enum>(1)</enum><header>In
general</header><text>Paragraph (1) of section 45L(a) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="id020BF4D2115144DF932E7FEFF67A59E5" style="OLC">
<paragraph id="idBC343FFB2CFD452CA35BF12D8ED02C07"><enum>(1)</enum><header>In
general</header><text>For purposes of section 38—</text>
<subparagraph id="id67E21E7B44BB4B6F8758CDDB1A238A5E"><enum>(A)</enum><text>in the case of an
eligible contractor, the new energy efficient home credit for the taxable year
is the applicable amount for each qualified new energy efficient home which
is—</text>
<clause id="id5B55943968B44D338EAA2C87381FB47A"><enum>(i)</enum><text>constructed by
the eligible contractor, and</text>
</clause><clause id="id120702A85F754D45B93335DAB261A8EF"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="id60E21E1C0C584FE5B5E7ED036A777B48"><enum>(I)</enum><text>acquired by a person
from such eligible contractor and used by any person as a residence during the
taxable year, or</text>
</subclause><subclause id="id5A06C1AAC2504830A875F1BE529E49EF" indent="up1"><enum>(II)</enum><text>used by such eligible contractor as a
residence during the taxable year, and</text>
</subclause></clause></subparagraph><subparagraph id="id8BB28920EA624C558854CA2F31EFFFCD"><enum>(B)</enum><text>in the case of a
taxpayer, the new energy efficient home credit for the taxable year is the
applicable amount for each qualified new energy efficient home which is in a
qualified low-income building (as defined in section 42(c)(2))—</text>
<clause id="id4769A7F961C247458099E8EC5BE0158D"><enum>(i)</enum><text>placed in service
by the taxpayer during the taxable year, and</text>
</clause><clause id="id0EC32303774A4CEA891F308941116BE2"><enum>(ii)</enum><text>for which such
taxpayer is allowed a credit under section 42 or a subaward under section
1602(c) of the American Recovery and Reinvestment Tax Act of
2009.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id4A9555E800634155967CFE247363D650"><enum>(2)</enum><header>Credit
amount</header><text>Paragraph (2) of section 45L(a), as amended by this
section, is amended by adding at the end the following new flush
sentence:</text>
<quoted-block display-inline="no-display-inline" id="idD62C971B553C4E67A9F52F24C6D6BAA7" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="paragraph">In the
case of a dwelling unit in a qualified low-income building (as so defined), the
applicable dollar amount for such a dwelling unit described in 1 of the
preceding subparagraphs shall be equal to 150 percent of the dollar amount
otherwise specified in such preceding subparagraph, except that if the credit
under section 42 with respect to such unit is determined by applying section
42(d)(5)(B), then the applicable dollar amount shall be 115 percent of such
dollar amount so
specified.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id5D19EFF223ED4D21BC6A8E8C344F6BB9"><enum>(3)</enum><header>No basis
adjustment</header><text>Section 45L(e) is amended by inserting <quote>(other
than a qualified low-income building)</quote> after <quote>any
property</quote>.</text>
</paragraph></subsection><subsection id="id21699CB4B9574366ABC5990A77E5BB79"><enum>(c)</enum><header>Certification
method for high rise multifamily and mixed use buildings</header><text>Section
45L(d)(1) is amended by inserting <quote>, and in the case of high rise
multifamily and mixed use buildings, after examining the methods required for
such buildings under section 179D</quote> after <quote>the Secretary of
Energy</quote>.</text>
</subsection><subsection id="idEC665BDB1445493FAE0E5CD03B930AB5"><enum>(d)</enum><header>Credit allowed
against alternative minimum tax</header><text>Subparagraph (B) of section
38(c)(4) is amended—</text>
<paragraph id="idE940D7472FEC44FBB35914FCC67C5EF0"><enum>(1)</enum><text>by redesignating
clauses (vi), (vii), and (viii) as clauses (vii), (viii), and (ix),
respectively, and</text>
</paragraph><paragraph id="id3F6003082276405FA2620C21B01B2518"><enum>(2)</enum><text>by inserting
after clause (v) the following new clause:</text>
<quoted-block act-name="" id="id994A02C9693845B382AE9CB553E8D1BC" style="OLC">
<clause id="id0F9C03BD22AC4CF9877E732AF30F6D04"><enum>(vi)</enum><text>the credit
determined under section
45L,</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="idC84E78DB43E448539ED7A21986D4939E"><enum>(e)</enum><header>Extension</header><text display-inline="yes-display-inline">Subsection (g) of section 45L is amended to
read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id124E17CED9364470BAC0634E4A19C8A1" style="OLC">
<subsection id="id29CC43C97ED5454792B0A18BC9276CFF"><enum>(g)</enum><header>Termination</header><text>This
section shall not apply to the acquisition of any qualified new energy
efficient home—</text>
<paragraph id="id9140A936A13B4A87AC48DDEDA72C2434"><enum>(1)</enum><text>described in
subsection (a)(2)(A) after December 31, 2012,</text>
</paragraph><paragraph id="id63248D024006411FA56C98C29E1A2383"><enum>(2)</enum><text>described in
subsection (a)(2)(B) after December 31, 2013,</text>
</paragraph><paragraph id="id254F6225B3944E9A9C8F7902025DD961"><enum>(3)</enum><text>described in
subsection (a)(2)(C) after December 31, 2010, and</text>
</paragraph><paragraph id="idD0733F5FB884482ABE03AD7A64652968"><enum>(4)</enum><text>described in
subsection (a)(2)(D) after December 31,
2013.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idB207D0C3158940FB8939E33EBE5535EF"><enum>(f)</enum><header>Effective
dates</header>
<paragraph id="idF0E833B764404068BD315666A553BF7F"><enum>(1)</enum><header>In
general</header><text>The amendments made by this section shall apply to homes
constructed and acquired or placed in service after December 31, 2008.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idDC11B979D0C04548A93FBFD79CA21ADE"><enum>(2)</enum><header>AMT</header><text>The
amendments made by subsection (d) shall apply to credits determined under
section 45L of the Internal Revenue Code of 1986 in taxable years beginning
after December 31, 2008, and to carrybacks of such credits.</text>
</paragraph></subsection></section><section id="idB254A0266F3C4543A55E1B83A9BC43C7" section-type="subsequent-section"><enum>102.</enum><header>Modification of
deduction for energy efficient commercial buildings</header>
<subsection id="idE6AFC7A2F3F54796991E9BAA4BBB69BD"><enum>(a)</enum><header>Increase in
maximum amount of deduction</header>
<paragraph id="id521844DAB701453C8C16CAF730E39189"><enum>(1)</enum><header>In
general</header><text>Subparagraph (A) of section 179D(b)(1) is amended by
striking <quote>$1.80</quote> and inserting <quote>$3.00</quote>.</text>
</paragraph><paragraph id="id981E555F4A154469A65369D489DF1579"><enum>(2)</enum><header>Partial
allowance</header><text>Paragraph (1) of section 179D(d) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="id66AE0F2E0EB74907A8F999C1148F1435" style="OLC">
<paragraph id="idC1572063F3124845A6D670C68477953D"><enum>(1)</enum><header>Partial
allowance</header>
<subparagraph id="id0B8391D934AD47279928B60ABC294EA7"><enum>(A)</enum><header>In
general</header><text>Except as provided in subsection (f), if—</text>
<clause id="id433936E512004793849F6004AA0B2CD2"><enum>(i)</enum><text>the requirement
of subsection (c)(1)(D) is not met, but</text>
</clause><clause id="idD83EA2D90A63413DB2155D64581DD3CF"><enum>(ii)</enum><text>there is a
certification in accordance with paragraph (6) that—</text>
<subclause id="id26EE119826634029BAEF9CFF6C7278B3"><enum>(I)</enum><text>any system
referred to in subsection (c)(1)(C) satisfies the energy-savings targets
established by the Secretary under subparagraph (B) with respect to such
system, or</text>
</subclause><subclause id="id5CBA10FF2E764E4FB83F717CDE9CD02A"><enum>(II)</enum><text>the systems
referred to in subsection (c)(1)(C)(ii) and subsection (c)(1)(C)(iii) together
satisfy the energy-savings targets established by the Secretary under
subparagraph (B) with respect to such systems,</text>
</subclause></clause><continuation-text continuation-text-level="subparagraph">then
the requirement of subsection (c)(1)(D) shall be treated as met with respect to
such system or systems, and the deduction under subsection (a) shall be allowed
with respect to energy efficient commercial building property installed as part
of such system and as part of a plan to meet such targets, except that
subsection (b) shall be applied to such property described in clause (ii)(I) by
substituting <quote>$1.00</quote> for <quote>$3.00</quote> and to such property
described in clause (ii)(II) by substituting <quote>$2.20</quote> for
<quote>$3.00</quote>.</continuation-text></subparagraph><subparagraph id="idA81D68AE4F5840C8BE503DD55DC5B03E"><enum>(B)</enum><header>Regulations</header>
<clause id="idD9D9A8B833844785A233279F49EA9451"><enum>(i)</enum><header>In
general</header><text>The Secretary, after consultation with the Secretary of
Energy, shall establish a target for each system described in subsection
(c)(1)(C) which, if such targets were met for all such systems, the building
would meet the requirements of subsection (c)(1)(D).</text>
</clause><clause id="id180BE4BEDD9745DD949BB7B80956F191"><enum>(ii)</enum><header>Combined
systems</header><text>The Secretary, after consultation with the Secretary of
Energy, shall establish not later than 6 months after the date of the enactment
of the <short-title>Advanced Energy Tax Incentives Act of
2010</short-title> a prescriptive partial compliance pathway for combined
envelope and mechanical system performance that details the appropriate
components, efficiency levels, or other relevant information for which the
required level of combined savings in both categories can be deemed to have
been
achieved.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idB8F001F2072546168AE90EDF7F5164A7"><enum>(b)</enum><header>Denial of
double benefit</header><text>Section 179D is amended by redesignating
subsections (g) and (h) as subsections (h) and (i), respectively, and by
inserting after subsection (f) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="id470DB3567D154DA195345C865679E109" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="idC11B138E96E3455AA3B43681C79CA42B"><enum>(g)</enum><header>Coordination
with new energy efficient home credit</header><text>No deduction shall be
allowed under this section with respect to any building or dwelling unit with
respect to which a credit under section 45L was
allowed.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id8BF11FEFFF794D5EA00BCC35AA930675"><enum>(c)</enum><header>Earnings and
profits conformity for real estate investment trusts</header><text>Subparagraph
(B) of section 312(k)(3) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idE56051A9E28F415D88A489A7BD86F39A"><enum>(1)</enum><text>by striking
<quote>.—For purposes of</quote> and inserting “.—</text>
<quoted-block display-inline="no-display-inline" id="id9BBFC0E787D443BBA28A45130A3DA336" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="idE71F3C59593542C2A9E38C81EA6294E2"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), for purposes
of</text>
</paragraph><after-quoted-block>, and
</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id0D923BAAEACA42A988E9EE8AC3B70563"><enum>(2)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idBEDDCD8460A44EACAE265E58F1A9DE35" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id3F2A72CC7BFD4E7DA139353C66F425F6"><enum>(2)</enum><header>Exception</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id93AFB08DE57A4D88988B2A743847C7CD"><enum>(A)</enum><header>In
general</header><text>For purposes of computing the earnings and profits of a
real estate investment trust (other than a captive real estate investment
trust), the entire amount deductible under section 179D shall be allowed as a
deduction in the taxable year for which such amount is deductible under section
179D.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id896427E99B0047DC950EF081F9C252CD"><enum>(B)</enum><header>Captive real
estate investment trust</header>
<clause commented="no" display-inline="no-display-inline" id="idE439EA1B70854C7587C89E5AB13C6D60"><enum>(i)</enum><header>In
general</header><text>For purposes of subparagraph (A), the term <term>captive
real estate investment trust</term> means any real estate investment trust more
than 50 percent of the voting power or value of the beneficial interests or
shares of which are owned or controlled by a single entity that is treated as
an association taxable as a corporation.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id04DF40B5C5D94608B37EBFECD08621B4"><enum>(ii)</enum><header>Association
taxable as a corporation</header><text>For purposes of clause (i), the term
<term>association taxable as a corporation</term> shall not include a real
estate investment trust.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id4E9E2E93F5AE49F785DB384BFABF918B"><enum>(iii)</enum><header>Attribution
rules</header><text>For purposes of clause (i), the attribution rules of
section 856(d)(5) shall apply in determining
ownership.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id2F6740B9A8DD442AB7BF452115F0717C"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to property
placed in service in taxable years beginning after the date of the enactment of
this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idF2F091B79E8444679F5B2FCDEEBA3DAA"><enum>103.</enum><header>Energy ratings
of non-business property</header>
<subsection commented="no" display-inline="no-display-inline" id="id66D81BE55B504DCE9389DB8490DB33CD"><enum>(a)</enum><header>In
general</header><text>Subpart A of part IV of subchapter A of chapter 1, as
amended by section 105, is amended by inserting after section 25E the following
new section:</text>
<quoted-block display-inline="no-display-inline" id="id3294F6147C73400CB49017CDA7BEEA40" style="OLC">
<section commented="no" display-inline="no-display-inline" id="idBFA19B249AD44BA9BBD5481A305229E9"><enum>25F.</enum><header>Energy ratings
of non-business property</header>
<subsection id="HC3A907892058462E8DBDFCCE6259BE3"><enum>(a)</enum><header>In
general</header><text>In the case of an individual, there shall be allowed as a
credit against the tax imposed by this chapter for the taxable year an amount
equal to the amount paid or incurred by the taxpayer for a qualified home
energy rating conducted during such taxable year.</text>
</subsection><subsection id="H022E37524D4E4750B59D179E80E192BA"><enum>(b)</enum><header>Limitation</header><text>The
amount allowed as a credit under subsection (a) with respect to any taxpayer
for any taxable year shall not exceed $200.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id74CEAB7A515847918D6ADB92688081FB"><enum>(c)</enum><header>Qualified home
energy rating</header><text>For purposes of this section, the term
<term>qualified home energy rating</term> means a home energy rating conducted
with respect to any residence of the taxpayer by a home performance auditor
certified by a provider accredited by the Building Performance Institute (BPI),
the Residential Energy Services Network (RESNET), or equivalent rating system
as determined by the Secretary of Energy.</text>
</subsection><subsection id="H3AAA6AA2C36040EDB42F73420711E84C"><enum>(d)</enum><header>Termination</header><text>This
section shall not apply with respect to any rating conducted after December 31,
2011.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="id313F9BFC67A743C79B4EE0C5B2F0A0A7"><enum>(b)</enum><header>Clerical
amendment</header><text>The table of sections for subpart A of part IV of
subchapter A chapter 1, as amended by section 105, is amended by inserting
after the item relating to section 25E the following new item:</text>
<quoted-block id="id9cb19687-aeb2-476b-b517-8ed5afd5dad1" style="OLC">
<toc>
<toc-entry idref="idBFA19B249AD44BA9BBD5481A305229E9" level="section">Sec. 25F. Energy ratings of non-business
property.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H5494EC63C2724F8AA041229DF3394435"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to amounts
paid or incurred in taxable years beginning after the date of the enactment of
this Act.</text>
</subsection></section><section id="id5219426D421B48F3969CD47415B60063"><enum>104.</enum><header>Credit for
home performance auditor certifications</header>
<subsection id="id7AC189AC7EDC461FA4BEB45731A9A849"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subpart D of part IV
of subchapter A of chapter 1 is amended by adding at the end the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="idD1C0D4C1ED9C4442B12FEDDBFC6894A3" style="OLC">
<section id="idA8A5C84BF26E405485A9D7367A9A9CDA"><enum>45S.</enum><header>Home
performance auditor certification credit</header>
<subsection id="id60D541427F384DE2A81A99AB483E9FC6"><enum>(a)</enum><header> In
general</header><text>For purposes of section 38, the home performance auditor
certification credit determined under this section for any taxable year is an
amount equal to the qualified training and certification costs paid or incurred
by the taxpayer which may be taken into account for such taxable year.</text>
</subsection><subsection id="idE31F146A2065475981232967C8305644"><enum>(b)</enum><header>Qualified
training and certification costs</header>
<paragraph id="id6E3EF64EB78E4A1E89A088AFE6CE8D7C"><enum>(1)</enum><header>In
general</header><text>The term <term>qualified training and certification
costs</term> means costs paid or incurred for training which is required for
the taxpayer or employees of the taxpayer to be certified as home performance
auditors for purposes of providing qualified home energy ratings under section
25F(c).</text>
</paragraph><paragraph id="id1BED93EE5CE149F7A1A7C01A4A18CA97"><enum>(2)</enum><header>Limitation</header><text>The
qualified training and certification costs taken into account under subsection
(a)(1) for the taxable year with respect to any individual shall not exceed
$500 reduced by the amount of the credit allowed under subsection (a)(1) to the
taxpayer (or any predecessor) with respect to such individual for all prior
taxable years.</text>
</paragraph><paragraph id="idDB6C878B1E0249619E3855EB22942362"><enum>(3)</enum><header>Year costs
taken into account</header><text>Qualified training and certifications costs
with respect to any individual shall not be taken into account under subsection
(a)(1) before the taxable year in which the individual with respect to whom
such costs are paid or incurred has performed 25 qualified home energy ratings
under section 25F(c).</text>
</paragraph></subsection><subsection id="idD4983CFEABC944BFB2C93CBE8AA71856"><enum>(c)</enum><header>Special
rules</header>
<paragraph id="idFD2DB763C3664F5CAE5AB8360DCE3E98"><enum>(1)</enum><header>Aggregation
rules</header><text>For purposes of this section, all persons treated as a
single employer under subsections (a) and (b) of section 52 shall be treated as
1 person.</text>
</paragraph><paragraph id="id28150B0CF09B44929825C3471B2421D6"><enum>(2)</enum><header>Denial of
double benefit</header>
<subparagraph id="id6ABCA963BEA2460AAF6252D87A8696BA"><enum>(A)</enum><header>In
general</header><text>No deduction shall be allowed for that portion of the
expenses otherwise allowable as a deduction for the taxable year which is equal
to the amount taken into account under subsection (a) for such taxable
year.</text>
</subparagraph><subparagraph id="id07F32C894CF54F339031BB2B02787755"><enum>(B)</enum><header>Amount
previously deducted</header><text>No credit shall be allowed under subsection
(a) with respect to any amount for which a deduction has been allowed in any
preceding taxable
year.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idADCD5A9B43934654B0E7D577C6824A6A"><enum>(b)</enum><header>Credit treated
as part of general business credit</header><text>Section 38(b) is amended by
striking <quote>plus</quote> at the end of paragraph (35), by striking the
period at the end of paragraph (36) and inserting <quote>plus</quote>, and by
adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idCFEAFC01BE4543068552B08352D65872" style="OLC">
<paragraph id="id317E4570CCE244DEABA132F595E48CE2"><enum>(37)</enum><text>the home
performance auditor certification credit determined under section
45S(a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id2E2B365F54B4456F8DFD85DD590FB8F6"><enum>(c)</enum><header>Conforming
amendment</header><text>The table of sections for subpart D of part IV of
subchapter A of chapter 1 is amended by adding at the end the following new
item:</text>
<quoted-block id="id497a42d4-29f1-4ad2-855d-32bcbc077cd5" style="OLC">
<toc>
<toc-entry idref="idA8A5C84BF26E405485A9D7367A9A9CDA" level="section">Sec. 45S. Home performance auditor certification
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idD0775950D75E4107977D0DB4BEFC9B3A"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to amounts
paid or incurred after the date of the enactment of this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id5565D01BD96242E381269AF1461CDAAD"><enum>105.</enum><header>Performance
based energy improvements for non-business property</header>
<subsection id="idD6DCEAD92A40451BA8947C15C0F42906"><enum>(a)</enum><header>In
general</header><text>Subpart A of part IV of subchapter A of chapter 1 is
amended by inserting after section 25D the following new section:</text>
<quoted-block display-inline="no-display-inline" id="idFC012DA3B4074C46843075FD8CA3C182" style="OLC">
<section commented="no" display-inline="no-display-inline" id="idFFE9AB75720D48ADB0074C4BBA46C559"><enum>25E.</enum><header>Performance
based energy improvements</header>
<subsection commented="no" display-inline="no-display-inline" id="id072C6494D5944B9D9BE1F25E5F2C5B2C"><enum>(a)</enum><header>In
general</header><text>In the case of an individual, there shall be allowed as a
credit against the tax imposed by this chapter for the taxable year an amount
equal to 50 percent of the amount of qualified home energy efficiency
expenditures paid or incurred by the taxpayer during the taxable year.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idF11FBFB1EB3E4E36AE6501150EF541F3"><enum>(b)</enum><header>Limitations</header>
<paragraph commented="no" display-inline="no-display-inline" id="id3EC5C386E5174772AEF56FC60A112525"><enum>(1)</enum><header>Dollar
limitation</header>
<subparagraph commented="no" display-inline="no-display-inline" id="idB01AE3D66D8C47FAB43DF4F1176758E1"><enum>(A)</enum><header>In
general</header><text>The amount of the credit allowed under subsection (a)
with respect to any individual for any taxable year shall not exceed the amount
determined under subparagraph (B) with respect to the principal residence of
such individual.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6B5D88653E0D457FA81E89D377E6EC84"><enum>(B)</enum><header>Amount
determined</header>
<clause commented="no" display-inline="no-display-inline" id="idB4E62D7E9E3D4D3E9CA998CA059A9382"><enum>(i)</enum><header>In
general</header><text>Subject to clause (iv), the amount determined under this
subparagraph is the base amount increased by the amount determined under clause
(iii).</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id6E00B1DD7BA44B10B18AD05963A21F2A"><enum>(ii)</enum><header>Base
amount</header><text>For purposes of this subparagraph, the base amount
is—</text>
<subclause commented="no" display-inline="no-display-inline" id="id3FEDA501E6E7426CB78406B34DF0AB76"><enum>(I)</enum><text>$3,000, in the
case of a residence the construction of which is completed before January 1,
1940, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idB871E15141234D0EB6F575749E4E7F82"><enum>(II)</enum><text>$2,000, in the
case of a residence the construction of which is completed after December 31,
1939.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="idF4759390289A4B2A8DD1D4DDCCC53EAA"><enum>(iii)</enum><header>Increase
amount</header><text>The amount determined under this clause is—</text>
<subclause commented="no" display-inline="no-display-inline" id="id656AB8D69D5C481AAD5AAD90ED080838"><enum>(I)</enum><text>in the case of a
residence described in clause (ii)(I) which has a rating system score lower
than or equal to the rating system score which corresponds to the IECC Standard
Reference Design for a home of the size and in the climate zone of such
residence, $1,000, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id9A73EE80B7F24B9592086285F33168B0"><enum>(II)</enum><text>in the case of
any residence with a rating system score which is lower than that which
corresponds to such IECC Standard Reference Design by not less than 5 points,
$500 for each 5 points by which the rating system score which corresponds to
such IECC Standard Reference Design exceeds the rating system score of such
residence (in addition to the amount provided under clause (i), if
applicable).</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="id4B1809985AB84E1CB383B2D1320D93FF"><enum>(iv)</enum><header>Limitation</header><text>In
no event shall the amount determined under this subparagraph exceed $8,000 with
respect to any individual.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id43D779D30E554237A97F43DD08EBB2A9"><enum>(2)</enum><header>Limitation
based on amount of tax</header><text>In the case of taxable years to which
section 26(a)(2) does not apply, the credit allowed under subsection (a) for
any taxable year shall not exceed the excess of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id1A2974DBFAA9443589EB6D3669CB034C"><enum>(A)</enum><text>the sum of the
regular tax liability (as defined in section 26(b)) plus the tax imposed by
section 55, over</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id753CD17A9444424290A133C83C4DCA0D"><enum>(B)</enum><text>the sum of the
credits allowable under this subpart (other than this section and sections 23,
24, and 25B) and section 27 for the taxable year.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idB5DB5D915380420283BE42B270C8AEDD"><enum>(c)</enum><header>Qualified home
energy efficiency expenditures</header><text>For purposes of this
section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id9626682E75794857ABFA338723C54036"><enum>(1)</enum><header>In
general</header><text>The term <term>qualified home energy efficiency
expenditures</term> means any amount paid or incurred for a qualified whole
home energy efficiency retrofit, including the cost of audit diagnostic
procedures, of a principal residence of the taxpayer which is located in the
United States.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id7F33D80E11464042BD243359523AE017"><enum>(2)</enum><header>Qualified whole
home energy efficiency retrofit</header>
<subparagraph commented="no" display-inline="no-display-inline" id="idF296B281074749E085976CA005CFB8B0"><enum>(A)</enum><header>In
general</header><text>The term <term>qualified whole home energy efficiency
retrofit</term> means a retrofit of an existing residence if, after such
retrofit, such residence—</text>
<clause commented="no" display-inline="no-display-inline" id="idCB98A3441AA340D6B445684D2EF9B23B"><enum>(i)</enum><text>has a rating
system score of not greater than—</text>
<subclause commented="no" display-inline="no-display-inline" id="id0C48686AC9604AC39288E7A1E5D032A5"><enum>(I)</enum><text>100, determined
under the HERS Index, in the case of a residence the construction of which is
completed before January 1, 1940, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idBFA844CFA75B4D5C9D2892565DDDF168"><enum>(II)</enum><text>the rating
system score which corresponds to the most current IECC Standard Reference
Design for a home of the size and in the climate zone of such residence, in the
case of a residence the construction of which is completed after December 31,
1939, or</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="idCFD0CC26BC684820ADBB058C8445D036"><enum>(ii)</enum><text>achieves an
energy efficiency level which is equivalent to the standard applicable to such
residence under clause (i), as determined by—</text>
<subclause id="ID2dc6c539bcc44bbdb735a957d70bbddb"><enum>(I)</enum><text>a State-certified
equivalent rating network, as specified by IRS Notice 2008–35, which is also a
HERS rating system required by State law, or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id0919EB56B8504CA6B7FBC6FAF22A9688"><enum>(II)</enum><text>the
Secretary.</text>
</subclause></clause><continuation-text continuation-text-level="subparagraph">For
purposes of the preceding sentence, the HERS Index is the HERS Index
established by the Residential Energy Services Network, as in effect on January
1, 2011.</continuation-text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id5D060AF610854DB4903F54079EDA78C8"><enum>(B)</enum><header>Accreditation
rule</header><text>A retrofit shall not be treated as a qualified whole home
energy efficiency retrofit unless such retrofit is conducted by a company which
is accredited by the Building Performance Institute, or which fulfills an
equivalent standard as determined by the Secretary.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id5CF4320D75A0484D9E5F2C39A8EC6880"><enum>(C)</enum><header>Determination
of rating system score or equivalent</header>
<clause commented="no" display-inline="no-display-inline" id="idDE8440A7ED6146F0B3361A6C5FB09640"><enum>(i)</enum><header>In
general</header><text>Subject to clause (ii), the rating system score of a
residence, or the equivalent described in subparagraph (A)(ii), shall be
determined by an auditor or rater certified by—</text>
<subclause commented="no" display-inline="no-display-inline" id="id78095ACD67ED47889A6A3AFDE069B9AD"><enum>(I)</enum><text>the Residential
Energy Services Network,</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idDC9C6BA4DD7640C8B01AD5604AD803C8"><enum>(II)</enum><text>the Building
Performance Institute, or</text>
</subclause><subclause id="ID5e51ba05eca1424aa62bce6c2160991c"><enum>(III)</enum><text>a
State-certified equivalent rating network, as specified by IRS Notice 2008–35,
which is also a HERS rating system required by State law.</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="id99BA6987CED34A0DB3B1140B554F036B"><enum>(ii)</enum><header>Secretarial
determination</header><text>At the discretion of the Secretary, the Secretary
may, in consultation with the Secretary of Energy, determine an alternative
standard for certification of an auditor or rater for purposes of determining
the rating system score (or equivalent described in subparagraph (A)(ii)) of a
residence. If the Secretary establishes such an alternative standard, clause
(i) shall cease to apply unless the Secretary determines otherwise.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idCFEFD21BD8F34238B044887DB3C89F4B"><enum>(D)</enum><header>Regulations</header>
<clause commented="no" display-inline="no-display-inline" id="id48F4F64BB24E4609B393EA121DEEDE8D"><enum>(i)</enum><header>Costs</header><text>Not
later than December 31, 2011, in consultation with the Secretary, the Secretary
of Energy shall prescribe regulations which specify the costs with respect to
energy improvements which may be taken into account under this paragraph as
part of a qualified whole home energy efficiency retrofit.</text>
</clause><clause id="ID8cca9489b46d40ffab13e3237563962a"><enum>(ii)</enum><header>Documentation</header><text>The
Secretary of the Treasury may prescribe regulations directing what specific
documentation is required for claiming the credit under this section, which may
include a certified form completed by the qualified whole home energy
efficiency retrofit and signed by the individual taxpayer.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id0E2A2031077A46BB99908B171FDC2B63"><enum>(3)</enum><header>Expansion of
building envelope ineligible</header><text>The term <term>qualified home energy
efficiency expenditures</term> shall not include any amount which is paid or
incurred in connection with any expansion of the building envelope of a
principal residence.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id39A4009451C74E5D9AE8A2A8B034A979"><enum>(4)</enum><header>Special rule
for expenditures relating to renewable energy systems</header><text>In the case
of any qualified home energy efficiency expenditures relating to a renewable
energy system, subsection (a) shall be applied with respect to the expenditures
relating to such system by substituting <quote>30 percent</quote> for <quote>50
percent</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6FDAB88ABCC449B2B40755768A57AAD0"><enum>(5)</enum><header>No double
benefit</header>
<subparagraph commented="no" display-inline="no-display-inline" id="idE47F8EEDBD0D406F9A01B03CD6DAC273"><enum>(A)</enum><header>In
general</header><text>No credit shall be allowed under this section for any
taxable year in which the taxpayer elects the credit under section 25C.</text>
</subparagraph><subparagraph id="id3FA5614883984F08A11F8B28D29B96A0"><enum>(B)</enum><header>No double
benefit for certain expenditures</header><text>The term <term>qualified home
energy efficiency expenditures</term> shall not include any expenditure for
which a deduction or credit is otherwise allowed to the taxpayer under this
chapter for the taxable year or with respect to which the taxpayer receives any
Federal rebate.</text>
</subparagraph></paragraph><paragraph id="ID81A4DB1D6F9443B2810C68C91B71F151"><enum>(6)</enum><header>Principal
residence</header><text>The term <term>principal residence</term> has the same
meaning as when used in section 121, except that—</text>
<subparagraph id="IDAD16CBC122614C149386C916A81224BB"><enum>(A)</enum><text>no ownership
requirement shall be imposed, and</text>
</subparagraph><subparagraph id="ID045B109759CC42E5BDBD653160D30237"><enum>(B)</enum><text>the period for
which a building is treated as used as a principal residence shall also include
the 60-day period ending on the 1st day on which it would (but for this
subparagraph) first be treated as used as a principal residence.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id06FB7C4D87BD401480CFF659E2F81C4C"><enum>(d)</enum><header>Rating system
score</header><text>For purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id3939CD409594441197815E5AB99ACB6C"><enum>(1)</enum><header>In
general</header><text>Subject to paragraph (2), the rating system score shall
be the score assigned under—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idCFFEC5CE43D7408D803A27EED2DAB01F"><enum>(A)</enum><text>the HERS Index
established by the Residential Energy Services Network, or</text>
</subparagraph><subparagraph id="ID16b3336b3c12499ca844beca0360de5b"><enum>(B)</enum><text>an equivalent
described in subparagraph (c)(2)(A)(ii) by a State-certified equivalent rating
network, as specified by IRS Notice 2008–35, which is also a HERS rating system
required by State law.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idD4D52185C21C4C8A986E416B96AD4B54"><enum>(2)</enum><header>Secretarial
determination</header><text>At the discretion of the Secretary, the Secretary
may, in consultation with the Secretary of Energy, determine an alternative
rating system (including an alternative system based on the HERS Index
established by the Residential Energy Services Network). If the Secretary
establishes such an alternative rating system, the rating system score with
respect to any residence shall be the score assigned under such alternative
rating system.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idC9850EED326746F49D628B424174181B"><enum>(e)</enum><header>IECC Standard
Reference Design</header>
<paragraph commented="no" display-inline="no-display-inline" id="id5D67CF0A1BC04F67A30BCF1395A48BE0"><enum>(1)</enum><header>In
general</header><text>The term <term>IECC Standard Reference Design</term>
means the Standard Reference Design determined under the International Energy
Conservation Code in effect for the taxable year in which the credit under this
section is determined.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id22D35F7AB23944EAB5F8F94FA439F0C9"><enum>(2)</enum><header>Limitation to
residences constructed after effective date of most recent
code</header><text>No credit shall be allowed under this section with respect
to a principal residence the construction of which is completed after the
effective date of the International Energy Conservation Code in effect for the
taxable year for which such credit would otherwise be determined.</text>
</paragraph></subsection><subsection id="HB6213A40C3F74F8895041412E8F604D9"><enum>(f)</enum><header>Special
rules</header><text>For purposes of this section, rules similar to the rules
under paragraphs (4), (5), (6), (7), and (8) of section 25D(e) and section
25C(e)(2) shall apply.</text>
</subsection><subsection id="HAAE30E8A07CC4C3CAE5C74F4DCB4F264"><enum>(g)</enum><header>Basis
adjustments</header><text>For purposes of this subtitle, if a credit is allowed
under this section with respect to any expenditure with respect to any
property, the increase in the basis of such property which would (but for this
subsection) result from such expenditure shall be reduced by the amount of the
credit so allowed.</text>
</subsection><subsection id="ID3d09301baf8744e39a341a434374c033"><enum>(h)</enum><header>Election not To
claim credit</header><text>This section shall not apply to a taxpayer for any
taxable year if such taxpayer elects to have this section not apply for such
taxable year.</text>
</subsection><subsection id="id09DD2D90EB034407A0CFCA428E57D737"><enum>(i)</enum><header>Termination</header><text>This
section shall not apply with respect to any costs paid or incurred after
December 31,
2013.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="id0EA2A5952FF048D881C849103E16B968"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph commented="no" id="id21B24904D1B94B2599CD8A291021B140"><enum>(1)</enum><text>Section 26(a)(1)
is amended by inserting <quote>25E,</quote> after <quote>25D,</quote>.</text>
</paragraph><paragraph commented="no" id="id15F2C56110E24355A892019323BDEA04"><enum>(2)</enum><text>Section 1016(a)
is amended—</text>
<subparagraph commented="no" id="id48E3F7B1BFFC494A9CD7620C2774962E"><enum>(A)</enum><text>by striking
<quote>and</quote> at the end of paragraph (36),</text>
</subparagraph><subparagraph commented="no" id="id9938102408CC4A32982E878DE1E930AF"><enum>(B)</enum><text>by striking the
period at the end of paragraph (37) and inserting <quote>, and</quote>,
and</text>
</subparagraph><subparagraph commented="no" id="id56DEF8907062418FA5B8CFE52E2C5F3F"><enum>(C)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id4AC1D120F1E24C8D8A37CAD494D61F6A" style="OLC">
<paragraph commented="no" id="id703F2E9DDA9D410E845789144204B069"><enum>(38)</enum><text>to the extent
provided in section 25E(g), in the case of amounts with respect to which a
credit has been allowed under section
25E.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="idC895048D1E5F4AE399138F398C6B42FF"><enum>(3)</enum><text>Section 6501(m)
is amended by inserting <quote>25E(h),</quote> after
<quote>section</quote>.</text>
</paragraph><paragraph commented="no" id="idB8BF590C988F4672A3181812EEFE0C12"><enum>(4)</enum><text>The table of
sections for subpart A of part IV of subchapter A chapter 1 is amended by
inserting after the item relating to section 25D the following new item:</text>
<quoted-block id="idD9501D911E96428280CA719EA96A3E0F" style="OLC">
<toc>
<toc-entry idref="idBFA19B249AD44BA9BBD5481A305229E9" level="section">Sec. 25E. Performance based energy
improvements.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idE94576622FFC43179DEDB54D0CDF4715"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to amounts
paid or incurred in taxable years beginning on or after January 1, 2011.</text>
</subsection></section></subtitle><subtitle id="id67597A4CB74F451EA02559F70F33DFBC"><enum>B</enum><header>Expansion of
industrial energy efficiency incentives</header>
<section id="idB40C20EF18544B5B9F686DCBAFE83210"><enum>111.</enum><header>Qualifying
efficient industrial process water use project credit</header>
<subsection id="H02D706410A51490085D41E997D58E9A8"><enum>(a)</enum><header>In
general</header><text>Section 46 is amended by striking <quote>and</quote> at
the end of paragraph (5), by striking the period at the end of paragraph (6),
and by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HDDB66E35A0434E88882F97039AF737F7" style="OLC">
<paragraph id="H8A372EE12B6948DB898EDC6CE9AA8CD4"><enum>(7)</enum><text>the qualifying
efficient industrial process water use project
credit.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H8CE758AE8E784544ADF4BF97EBE339E5"><enum>(b)</enum><header>Amount of
credit</header><text>Subpart E of part IV of subchapter A of chapter 1 is
amended by inserting after section 48D the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H769B7EEBA7B14471BB9579B13FFCC48E" style="OLC">
<section id="H13598BA99F7C4DE2B2D30BF73ED52C1C"><enum>48E.</enum><header>Qualifying
efficient industrial process water use project credit</header>
<subsection id="H8759DB7CC5634006B3D67931093ADE33"><enum>(a)</enum><header>In
general</header>
<paragraph id="idD468EFA95BB74038B5BFFD838B71D2C3"><enum>(1)</enum><header>Allowance of
credit</header><text>For purposes of section 46, the qualifying efficient
industrial process water use project credit for any taxable year is an amount
equal to the applicable percentage of the qualified investment for such taxable
year with respect to any qualifying efficient industrial process water use
project of the taxpayer.</text>
</paragraph><paragraph id="idF56CAE9393314F0390175E0BDC77EA4B"><enum>(2)</enum><header>Applicable
percentage</header><text>For purposes of subsection (a), the applicable
percentage is—</text>
<subparagraph id="idF71A5DE3A98C486DB074FFE8EFB5E360"><enum>(A)</enum><text>10 percent in the
case of a qualifying efficient industrial process water use project which
achieves a net energy consumption of less than 3,000 kilowatt hours per million
gallons of water, and is placed in service before January 1, 2013,</text>
</subparagraph><subparagraph id="id4723611FDC4B4EE79B61704E73F3ABE1"><enum>(B)</enum><text>20 percent in the
case of a qualifying efficient industrial process water use project which
achieves a net energy consumption of less than 2,000 kilowatt hours per million
gallons of water, and</text>
</subparagraph><subparagraph id="idC8C082C307D5495382040A6AED7C8FD0"><enum>(C)</enum><text>30 percent in the
case of a qualifying efficient industrial process water use project which
achieves a net energy consumption of less than 1,000 kilowatt hours per million
gallons of water.</text>
</subparagraph></paragraph></subsection><subsection id="id2085497D4DD446B8A054909C401A412D"><enum>(b)</enum><header>Qualified
investment</header>
<paragraph id="H4AB83D162CA04D39AAA16C46E530B8BA"><enum>(1)</enum><header>In
general</header><text>For purposes of subsection (a), the qualified investment
for any taxable year is the basis of eligible property placed in service by the
taxpayer during such taxable year which is part of a qualifying efficient
industrial process water use project.</text>
</paragraph><paragraph id="idDACA8A65665A4026B81350A8CAA31847"><enum>(2)</enum><header>Exceptions</header><text>Such
term shall not include any portion of the basis related to—</text>
<subparagraph id="id8F4CAD408D2445DC8D7FAF7274AB8950"><enum>(A)</enum><text>permitting,</text>
</subparagraph><subparagraph id="idF0C059B01AD34B579FDA58E92C674753"><enum>(B)</enum><text>land acquisition,
or</text>
</subparagraph><subparagraph id="idC83B89908B0F4B848E576DEE2EF5AD18"><enum>(C)</enum><text>infrastructure
associated with sourcing or water discharge.</text>
</subparagraph></paragraph><paragraph id="HDB21CBE4660448A3BCB6476CD303D3A6"><enum>(3)</enum><header>Certain
qualified progress expenditures 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 enactment of the Revenue Reconciliation Act of 1990)
shall apply for purposes of this section.</text>
</paragraph><paragraph commented="no" id="id967048A9D92140CBAF8699552BFB9FF8"><enum>(4)</enum><header>Special rule
for subsidized energy financing</header><text>Rules similar to the rules of
section 48(a)(4) (without regard to subparagraph (D) thereof) shall apply for
purposes of this section.</text>
</paragraph><paragraph id="HD33BA662BBC94BFCA827D0DD547C133A"><enum>(5)</enum><header>Limitation</header><text>The
amount which is treated for all taxable years with respect to any qualifying
efficient industrial process water use project with respect to any site shall
not exceed $10,000,000.</text>
</paragraph></subsection><subsection id="HBB3001EAF3BB455884C5FEA658050DC4"><enum>(c)</enum><header>Definitions</header>
<paragraph id="H16747B7E18C84CE39194B6B725B09BB1"><enum>(1)</enum><header>Qualifying
efficient industrial process water use project</header><text>The term
<term>qualifying efficient industrial process water use project</term> means,
with respect to any site, a project—</text>
<subparagraph id="id73F7F02BA8694074A96AF4D7B574BF35"><enum>(A)</enum><text>which replaces or
modifies a system for the use of water or steam in the production of goods in
the trade or business of manufacturing (including any system for the use of
water derived from blow-down from cooling towers and steam systems in the
generation of electric power at a site also used for the production of goods in
the trade or business of manufacturing), and</text>
</subparagraph><subparagraph id="id1844BD0366C14E2EB6A2B5B4D314E0A1"><enum>(B)</enum><text>which is designed
to achieve—</text>
<clause id="id704EB00DFB15440FA2460B7E1F95193C"><enum>(i)</enum><text>a
reduction of not less than 20 percent in water withdrawal and a reduction of
not less than 10 percent of water discharge when compared to the existing water
use at the site, or</text>
</clause><clause id="id3150C466F82F45848691C76E442AF7B7"><enum>(ii)</enum><text>a reduction of
not less than 10 percent in water withdrawal and a reduction of not less than
20 percent of water discharge when compared to the existing water use at the
site.</text>
</clause></subparagraph></paragraph><paragraph id="HC2671FE68FF642449BC785676AF529C0"><enum>(2)</enum><header>Eligible
property</header><text>The term <term>eligible property</term> means any
property—</text>
<subparagraph id="id224A9E78A3B84194A49BA5E458070317"><enum>(A)</enum><text>which is part of
a qualifying efficient industrial process water use project and which is
necessary for the reduction in withdrawals or discharge described in paragraph
(1)(B),</text>
</subparagraph><subparagraph id="id92B6F08EAF754E32B6430F4E8371BB5D"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="id5B5064814E21468680614688E57A155C"><enum>(i)</enum><text>the construction,
reconstruction, or erection of which is completed by the taxpayer, or</text>
</clause><clause id="id55B18AB95B3D4E5C8B960010DC8C9AD7" indent="up1"><enum>(ii)</enum><text>which is acquired by the taxpayer
if the original use of such property commences with the taxpayer, and</text>
</clause></subparagraph><subparagraph id="idCD5770E72401483F9C7C4A6222BCAA28"><enum>(C)</enum><text>with respect to
which depreciation (or amortization in lieu of depreciation) is
allowable.</text>
</subparagraph></paragraph><paragraph commented="no" id="id6BF9AC652C894D7E8787FA2F249D1A11"><enum>(3)</enum><header>Net energy
consumption</header><text>The term <term>net energy consumption</term> means
the energy consumed, both on-site and off-site, with respect to the water
described in paragraph (1)(A). Net energy consumption shall be normalized per
unit of industrial output and measured under rules and procedures established
by the Secretary, in consultation with the Administrator of the Environmental
Protection Agency.</text>
</paragraph><paragraph commented="no" id="id2A57F543C4964025AEAC279198D50AA8"><enum>(4)</enum><header>Water
discharge</header><text>The term <term>water discharge</term> means all water
leaving the site via permitted or unpermitted surface water discharges,
discharges to publicly owned treatment works, and shallow- or deep-injection
(whether on-site or off-site).</text>
</paragraph><paragraph commented="no" id="idDBD426E9AF284A81B6866FF30F7523A2"><enum>(5)</enum><header>Water
withdrawal</header><text>The term <term>water withdrawal</term> means all water
taken for use at the site from on-site ground and surface water sources
together with any water supplied to the site by a public water system.</text>
</paragraph></subsection><subsection id="idC72A3762CF764DE4A2FC73BBAB93C606"><enum>(d)</enum><header>Termination</header><text>This
section shall not apply to periods after December 31, 2014, 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><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H1E6CF1EFB2114D82925750035D565302"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph id="H3EAB63AC478D4D4BB548787D5359B7F3"><enum>(1)</enum><text>Section
49(a)(1)(C) is amended by striking <quote>and</quote> at the end of clause (v),
by striking the period at the end of clause (vi) and inserting <quote>,
and</quote>, and by adding after clause (vi) the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H472A0D757AF04EEAA4FED11FD4BA1531" style="OLC">
<clause id="H057D7C605EDC417887C1A67F96A635F0"><enum>(vii)</enum><text>the basis of any
property which is part of a qualifying efficient industrial use water project
under section
48E.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HD825BA5866F447E0B4E5ACD282318640"><enum>(2)</enum><text>The table of
sections for subpart E of part IV of subchapter A of chapter 1 is amended by
inserting after the item relating to section 48D the following new item:</text>
<quoted-block id="id91b65e1c-b9c0-4871-bd46-67615b234a52" style="OLC">
<toc>
<toc-entry idref="H13598BA99F7C4DE2B2D30BF73ED52C1C" level="section">Sec. 48E. Qualifying efficient industrial process water use
project
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HDDE6DD6D040F47BC9BB25338353E736E"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to periods
after January 1, 2011, under rules similar to the rules of section 48(m) 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="id724711338EFD4DA78DF33975A0535F5F"><enum>112.</enum><header>Motor energy
efficiency improvement tax credit</header>
<subsection id="id4F5A2C9E7A144E479A6A4ABE22DDDC5B"><enum>(a)</enum><header>In
general</header><text>Subpart D of part IV of subchapter A of chapter 1, as
amended by section 104, is amended by adding at the end the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="idF9807E16C4B542DCB22986DCBA7540FF" style="OLC">
<section id="id5BDA2F37819747E2AD14178C1267E037"><enum>45T.</enum><header>Motor energy
efficiency improvement tax credit</header>
<subsection id="idAFDA9B1684E74C26A05395E0448C7AB0"><enum>(a)</enum><header>In
general</header><text>For purposes of section 38, the motor energy efficiency
improvement tax credit determined under this section for the taxable year is an
amount equal to $120 multiplied by the motor horsepower of an appliance,
machine, or equipment—</text>
<paragraph id="idC2A984889E6644F4B705F6F5C9F4E1E0"><enum>(1)</enum><text>manufactured in
such taxable year by a manufacturer which incorporates an advanced motor system
into a newly designed appliance, machine, or equipment or into a redesigned
appliance, machine, or equipment which did not previously make use of the
advanced motor system, or</text>
</paragraph><paragraph id="idFA9B9AC5E3954D04B85FC12F4B45BB1C"><enum>(2)</enum><text>placed back into
service in such taxable year by an end user which upgrades an existing
appliance, machine, or equipment with an advanced motor system.</text>
</paragraph><continuation-text continuation-text-level="subsection">For any
advanced motor system with a total horsepower of less than 10, such motor
energy efficiency improvement tax credit is an amount which bears the same
ratio to $120 as such total horsepower bears to 1 horsepower.</continuation-text></subsection><subsection id="id51623C170FF64A799D69CD47DE611B6E"><enum>(b)</enum><header>Advanced motor
system</header><text>For purposes of this section, the term <term>advanced
motor system</term> means a motor and any required associated electronic
control which—</text>
<paragraph id="id2637758938E14E7183DFD76F566D3372"><enum>(1)</enum><text>offers variable
or multiple speed operation, and</text>
</paragraph><paragraph id="id99F2D09C55434FF7A3FB2C813F41D81D"><enum>(2)</enum><text>uses permanent
magnet technology, electronically commutated motor technology, switched
reluctance motor technology, or such other motor systems technologies as
determined by the Secretary of Energy.</text>
</paragraph></subsection><subsection id="idC07C9ED2D29545828880939EF1018434"><enum>(c)</enum><header>Aggregate per
taxpayer limitation</header>
<paragraph id="id0387642773A549BBA9C8D634B8CC1FFF"><enum>(1)</enum><header>In
general</header><text>The amount of the credit determined under this section
for any taxpayer for any taxable year shall not exceed the excess (if any) of
$2,000,000 over the aggregate credits allowed under this section with respect
to such taxpayer for all prior taxable years.</text>
</paragraph><paragraph id="idF9049CD2D88B476794568C1903A9BDF2"><enum>(2)</enum><header>Aggregation
rules</header><text>For purposes of this section, all persons treated as a
single employer under subsections (a) and (b) of section 52 shall be treated as
1 taxpayer.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HC1297D4794424ACA807E80D25AC586E1"><enum>(d)</enum><header>Special
rules</header>
<paragraph id="H76F5143C17AC430981A0149FF92608C6"><enum>(1)</enum><header>Basis
reduction</header><text>For purposes of this subtitle, the basis of any
property for which a credit is allowable under subsection (a) shall be reduced
by the amount of such credit so allowed.</text>
</paragraph><paragraph id="H1021195E6E0241C8BE0DBF428038145C"><enum>(2)</enum><header>No double
benefit</header><text>No other credit shall be allowable under this chapter for
property with respect to which a credit is allowed under this section.</text>
</paragraph><paragraph id="H8FF3F6460CE14C4AAB74D0881A1D7308"><enum>(3)</enum><header>Property used
outside United States not qualified</header><text>No credit shall be allowable
under subsection (a) with respect to any property referred to in section
50(b)(1).</text>
</paragraph></subsection><subsection id="idAB4F439963304C6791189B37E37A1EA2"><enum>(e)</enum><header>Application</header><text>This
section shall not apply to property manufactured or placed back into service
before the date which is 6 months after the date of the enactment of this
section or after December 31,
2013.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id5F00F12CB32B4ED9A7CD1B9ACE981A9F"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="idFE121E4BCC0A43568A178954FC944C4E"><enum>(1)</enum><text>Section 38(b), as
amended by section 104, is amended by striking <quote>plus</quote> at the end
of paragraph (36), by striking the period at the end of paragraph (37) and
inserting <quote>, plus</quote>, and by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idCDA5AD93AC4E4B7AB5BC7BF42A3C0280" style="OLC">
<paragraph id="id926A56C48EEA4FCBA4B7ADA56A36C510"><enum>(38)</enum><text>the motor energy
efficiency improvement tax credit determined under section
45T.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id02699FDCADF645C981CA4BC4B6E4D039"><enum>(2)</enum><text>Section 1016(a),
as amended by section 105, is amended by striking <quote>and</quote> at the end
of paragraph (37), by striking the period at the end of paragraph (38) and
inserting <quote>, and</quote>, and by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id4BEF2004594941D5945CA3886DAE3B1D" style="OLC">
<paragraph id="idD390AFFDF99644828E801B0B454FD625"><enum>(39)</enum><text>to the extent
provided in section
45T(d)(1).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="idF4925B55C5B74CEE9517C5528A08C37E"><enum>(3)</enum><text>The table of
sections for subpart D of part IV of subchapter A of chapter 1, as amended by
section 104, is amended by adding at the end the following new item:</text>
<quoted-block display-inline="no-display-inline" id="idECCAAD7C8A564C2A8F23EAEC0E33166E" style="OLC">
<toc>
<toc-entry bold="off" level="section">Sec. 45T. Motor energy
efficiency improvement tax
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id340E10807B284EF094AF8137A690A9CB"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to property
manufactured or placed back into service after the date which is 6 months after
the date of the enactment of this Act.</text>
</subsection></section><section id="idF6BB5C64CB8E4A5D828607A99CC3AAD1"><enum>113.</enum><header>Credit for
replacement of CFC refrigerant chiller</header>
<subsection id="IDcb57899529f340a3b5ed0da354f4e339"><enum>(a)</enum><header>In
general</header><text>Subpart D of part IV of subchapter A of chapter 1, as
amended by section 112, is amended by adding at the end the following new
section:</text>
<quoted-block display-inline="no-display-inline" id="id6B1B2A9683F241728BF3CFA16BF490B4" style="OLC">
<section id="id8D30D50992EB401B93908E012B1F9A12"><enum>45U.</enum><header>CFC chiller
replacement credit</header>
<subsection id="IDf0f6a4c20473426da7c32c79f74bb520"><enum>(a)</enum><header>In
general</header><text>For purposes of section 38, the CFC chiller replacement
credit determined under this section for the taxable year is an amount equal
to—</text>
<paragraph id="ID569eebaf4f8e4686b74f4fc8e6bf3677"><enum>(1)</enum><text>$150 multiplied
by the tonnage rating of a CFC chiller replaced with a new efficient chiller
that is placed in service by the taxpayer during the taxable year, plus</text>
</paragraph><paragraph id="IDb037cdb57ebd441aab270a94b64a3883"><enum>(2)</enum><text>if all chilled
water distribution pumps connected to the new efficient chiller include
variable frequency drives, $100 multiplied by any tonnage downsizing.</text>
</paragraph></subsection><subsection id="IDea75cf90576b4b60b36763e562122152"><enum>(b)</enum><header>CFC
chiller</header><text>For purposes of this section, the term <term>CFC
chiller</term> includes property which—</text>
<paragraph id="ID8139198ef845410893e6a17b6d973878"><enum>(1)</enum><text>was installed
after 1980 and before 1993,</text>
</paragraph><paragraph id="ID9df6c69f9235451199083dead71ffbcf"><enum>(2)</enum><text>utilizes
chlorofluorocarbon refrigerant, and</text>
</paragraph><paragraph id="ID6107f479520e4bc2b2f915036299701d"><enum>(3)</enum><text>until replaced by
a new efficient chiller, has remained in operation and utilized for cooling a
commercial building.</text>
</paragraph></subsection><subsection id="ID41f62dd41a56460d84c86d88f43b0650"><enum>(c)</enum><header>New efficient
chiller</header><text>For purposes of this section, the term <term>new
efficient chiller</term> includes a water-cooled chiller which is certified to
meet efficiency standards effective on January 1, 2010, as defined in table
6.8.1c in Addendum M to Standard 90.1–2007 of the American Society of Heating,
Refrigerating, and Air Conditioning Engineers.</text>
</subsection><subsection id="ID4fca5b65c01041e390193f70924a1f24"><enum>(d)</enum><header>Tonnage
downsizing</header><text>For purposes of this section, the term <term>tonnage
downsizing</term> means the amount by which the tonnage rating of the CFC
chiller exceeds the tonnage rating of the new efficient chiller.</text>
</subsection><subsection id="ID83bba7794da9486a90c43b1948df901b"><enum>(e)</enum><header>Energy
audit</header><text>As a condition of receiving a tax credit under this
section, an energy audit shall be performed on the building prior to
installation of the new efficient chiller, identifying cost-effective
energy-saving measures, particularly measures that could contribute to chiller
downsizing. The audit shall satisfy criteria that shall be issued by the
Secretary of Energy.</text>
</subsection><subsection id="ID14bbe80d3ac5460980cf881f8a476d05"><enum>(f)</enum><header>Property used
by tax-Exempt entity</header><text>In the case of a CFC chiller replaced by a
new efficient chiller the use of which is described in paragraph (3) or (4) of
section 50(b), the person who sold such new efficient chiller to the entity
shall be treated as the taxpayer that placed in service the new efficient
chiller that replaced the CFC chiller, but only if such person clearly
discloses to such entity in a document the amount of any credit allowable under
subsection (a) and the person certifies to the Secretary that the person
reduced the price the entity paid for such new efficient chiller by the entire
amount of such credit.</text>
</subsection><subsection id="idFBE2306CF53A4F7F8BE1F09CAFCF5761"><enum>(g)</enum><header>Termination</header><text>This
section shall not apply to replacements made after December 31,
2012.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDde02fd50800841c3b3f36cabdb6cbf23"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="IDc60bf04c15bc4f1d837788a3802a3285"><enum>(1)</enum><text>Section 38(b), as
amended by section 112, is amended by striking <quote>plus</quote> at the end
of paragraph (37), by striking the period at the end of paragraph (38) and
inserting <quote>, plus</quote>, and by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id2DC72BA06D0B40CEB6E0FB68880F689F" style="OLC">
<paragraph id="ID6c2916f109f7488eaff4aa4db1380aea"><enum>(39)</enum><text>the CFC chiller
replacement credit determined under section
45U.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID72d30b38e2f94989b4190e90c4e05561"><enum>(2)</enum><text>The table of
sections for subpart D of part IV of subchapter A of chapter 1, as amended by
section 112, is amended by adding at the end the following new item:</text>
<quoted-block display-inline="no-display-inline" id="idE51E4723BA824D16AD0F4558E65F7D30" style="OLC">
<toc>
<toc-entry bold="off" level="section">Sec. 45U. CFC chiller
replacement
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDca5cf07776134da89c49979c1d6ec970"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
replacements made after the date of the enactment of this Act.</text>
</subsection></section><section id="id94DC78758C5B4063A2AFBF82790EF22C"><enum>114.</enum><header>Modifications
in credit for combined heat and power system property</header>
<subsection id="id078E1F2199764401B4F4E5C7A73CE713"><enum>(a)</enum><header>Modification of
certain capacity limitations</header><text>Section 48(c)(3)(B) is
amended—</text>
<paragraph id="id0C94B2C22BBB4D7E98C1B2668A426DA5"><enum>(1)</enum><text>by striking
<quote>15 megawatts</quote> in clause (ii) and inserting <quote>25
megawatts</quote>,</text>
</paragraph><paragraph id="id8301D60920F744D4B9416E1B0EE4245F"><enum>(2)</enum><text>by striking
<quote>20,000 horsepower</quote> in clause (ii) and inserting <quote>34,000
horsepower</quote>, and</text>
</paragraph><paragraph id="id7E01EDDC842D4EF28FEBE7952D775129"><enum>(3)</enum><text>by striking
clause (iii).</text>
</paragraph></subsection><subsection id="id0208EA2F918D4CB8B5A3145A72E0CABF"><enum>(b)</enum><header>Nonapplication
of certain rules</header><text>Section 48(c)(3)(C) is amended by adding at the
end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="id3CF8C98488CB45058C70A8476F79B9D4" style="OLC">
<clause id="id586A0D9B526644AFADCB8D4E45E7F39B"><enum>(iv)</enum><header>Nonapplication
of certain rules</header><text>For purposes of determining if the term
<term>combined heat and power system property</term> includes technologies
which generate electricity or mechanical power using back-pressure steam
turbines in place of existing pressure-reducing valves or which make use of
waste heat from industrial processes such as by using organic rankine,
stirling, or kalina heat engine systems, subparagraph (A) shall be applied
without regard to clause
(ii).</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idFF6BBC1ACAD54C81A732FDF0C4CB3AF2"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to periods
after the date of the enactment of this Act, under rules similar to the rules
of section 48(m) 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></subtitle><subtitle id="id49A87A4ADE82493A945BCF20697F0817"><enum>C</enum><header>Thermal energy
efficiency</header>
<section id="id2732CB8B6AB5436FAF6D75DDF03A89B1"><enum>121.</enum><header>Bonus
depreciation for qualifying energy property</header>
<subsection id="idBE2C28B11EDD48DD9EF01461400F4A41"><enum>(a)</enum><header>In
general</header><text>Section 168 is amended by adding at the end the following
new subsection:</text>
<quoted-block display-inline="no-display-inline" id="id9207DDD3032848DC90AB71FEB4AC5D5A" style="OLC">
<subsection id="idE5DCB741147945F5B060CDEB5E77BB83"><enum>(o)</enum><header>Special
allowance for qualifying energy property</header>
<paragraph id="id18087A224C61472A9D3DCEA550AED532"><enum>(1)</enum><header>In
general</header><text>In the case of any efficient commercial energy
property—</text>
<subparagraph id="id23A45D1B48204459A3211E106CBF0C52"><enum>(A)</enum><text>the depreciation
deduction provided by section 167(a) for the taxable year in which such
property is placed in service shall include an allowance equal to 50 percent of
the adjusted basis of the efficient commercial energy property, and</text>
</subparagraph><subparagraph id="id3DC7B572094B46D3B46C318892E91C5A"><enum>(B)</enum><text>the adjusted
basis of the efficient commercial energy property shall be reduced by the
amount of such deduction before computing the amount otherwise allowable as a
depreciation deduction under this chapter for such taxable year and any
subsequent taxable year.</text>
</subparagraph></paragraph><paragraph id="id5CD1866FCE6449449E432538B45AF5EA"><enum>(2)</enum><header>Efficient
commercial energy property</header><text>For purposes of this
subsection—</text>
<subparagraph id="idAABC65495E3E4FEDBF41410CF96F822F"><enum>(A)</enum><header>In
general</header><text>The term <term>efficient commercial energy
property</term> means any property placed in service before January 1, 2012,
which is used in a qualifying heating conversion.</text>
</subparagraph><subparagraph id="id2C4765D9913744ECB361F7BB2376824E"><enum>(B)</enum><header>Treatment of
certain expenditures</header><text>Such term shall include fuel service
connection installation costs specifically related to fuel service to the
qualified energy property described in clause (ii) of subparagraph (C) used in
such conversion, but does not include expenditures for soil cleanup.</text>
</subparagraph><subparagraph id="id9B93552E63C14012825AA2813703DB56"><enum>(C)</enum><header>Qualifying
heating conversion</header>
<clause id="id850FDCF5835D44D6A176915E0EED1DC0"><enum>(i)</enum><header>In
general</header><text>The term <term>qualifying heating conversion</term> means
the use of qualified energy property described in clause (ii) to eliminate the
reliance on fuel oil for a heating system and the removal of the fuel oil
equipment (including any storage tank).</text>
</clause><clause id="id6498543CB3F54E7D848210DEFD3DD6CE"><enum>(ii)</enum><header>Qualified
energy property</header><text>Qualified energy property is described in this
clause if such property is—</text>
<subclause id="idE58C2429A86A407BBB234DCD3AE26B85"><enum>(I)</enum><text>a qualified
natural gas hot water boiler as defined in section 25C(d)(4)(B) by substituting
<quote>85 percent</quote> for <quote>90 percent</quote>,</text>
</subclause><subclause id="id45BDEBD7D5704BE0B26C4EA5EEFE87BB"><enum>(II)</enum><text>a qualified
natural gas furnace as defined in section 25C(d)(4)(A) by substituting
<quote>92 percent</quote> for <quote>95 percent</quote>,</text>
</subclause><subclause id="id5AD79A282FED499D9326D702404CC641"><enum>(III)</enum><text>a biomass
heating appliance described in section 25C(d)(3)(E), or</text>
</subclause><subclause id="id3E689E75678F4C7A907EFE83AC6E109F"><enum>(IV)</enum><text>a commercial
natural gas hot water boiler or commercial natural gas furnace the efficiency
of which is not measured based on an annual fuel utilization efficiency rate
but which has a combustion efficiency comparable to the efficiency rate
specified under subclause (I) or (II) as the Secretary shall determine (in
consultation with the Department of
Energy).</text>
</subclause></clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id16009BD3A967495DB2FFFD416BF1AD33"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to property
placed in service after the date of the enactment of this Act.</text>
</subsection></section><section id="id823521A140DC4343AAC967537038C8C2"><enum>122.</enum><header>Extension of
reduced depreciation period for natural gas distribution facilities</header>
<subsection id="id9DB096116BB14DD08CA24BB472604471"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Clause (viii) of
section 168(e)(3)(E) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id6C2937805CA14907B48D0D367ED0EB75" style="OLC">
<clause id="id673C17F639D24F23BD685B56F498F0B7"><enum>(viii)</enum><text display-inline="yes-display-inline">any natural gas distribution facility the
original use of which commences with the taxpayer after April 11, 2005, and
which is placed in service before January 1, 2013,
and</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idBBEC902DDB0347918CF0992373352F53"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall take effect as if
included in the amendments made section 1325(a) of the Energy Tax Incentives
Act of 2005.</text>
</subsection></section></subtitle><enum>II</enum><header>Vehicle
efficiency</header>
<section id="H73C265EA5282423CA331A7C7A86F8BEF"><enum>201.</enum><header>Idling
reduction tax credit</header>
<subsection id="H9E8628A561F9431782269873EABC41AB"><enum>(a)</enum><header>In
general</header><text>Subpart D of part IV of subchapter A of chapter 1, as
amended by section 113, is amended by adding at the end the following new
section:</text>
<quoted-block id="HF2A542BF261546189C6FBB0000E31E00" style="OLC">
<section id="H93075C921BCE48769852B478078FEAF"><enum>45V.</enum><header>Idling reduction
credit</header>
<subsection id="HF1CDF2A0E4164D29844F14B2ADE3D6CD"><enum>(a)</enum><header>General
Rule</header><text>For purposes of section 38, the idling reduction tax credit
determined under this section for the taxable year is an amount equal to the
applicable percentage of the amount paid or incurred for each qualifying idling
reduction device placed in service by the taxpayer during the taxable
year.</text>
</subsection><subsection id="HBC97BF92FE924A0B917083D63ED6D521"><enum>(b)</enum><header>Limitation</header><text>The
maximum amount allowed as a credit under subsection (a) for each qualifying
idling reduction device shall not exceed the applicable credit amount for such
device.</text>
</subsection><subsection id="id3C583857F3CE493F8649ADC758EA6F08"><enum>(c)</enum><header>Applicable
percentage; applicable credit amount</header>
<paragraph id="idBAD9EDFAC9B24CAA9397DC30C56B9691"><enum>(1)</enum><header>Devices with
cooling capability</header><text>In the case of any qualifying idling reduction
device with cooling capability for the vehicle passenger compartment, the
applicable percentage and applicable credit amount shall be determined in
accordance with the following table:</text>
<table align-to-level="section" blank-lines-before="1" colsep="1" frame="topbot" line-rules="hor-ver" rowsep="0" rule-weights="4.4.4.0.0.0" table-template-name="Generic: 1 text, 1 num, 1 text" table-type="">
<tgroup cols="3" grid-typeface="1.1" rowsep="0" thead-tbody-ldg-size="10.10.10"><colspec coldef="txt" colname="column1" colwidth="129pts" min-data-value="120" rowsep="0"></colspec><colspec coldef="fig" colname="column2" colsep="1" colwidth="56pts" min-data-value="10"></colspec><colspec coldef="txt-no-ldr" colname="column3" colsep="0" colwidth="129pts" min-data-value="120" rowsep="0"></colspec>
<thead>
<row><entry align="center" colname="column1" morerows="0" namest="column1" rowsep="1">Device consumption of diesel gallon equivalent per
hour</entry><entry align="center" colname="column2" morerows="0" namest="column2" rowsep="1">Applicable percentage</entry><entry align="center" colname="column3" morerows="0" namest="column3" rowsep="1">Applicable credit
amount</entry>
</row>
</thead>
<tbody>
<row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Not more than 0.10</entry><entry align="right" colname="column2" leader-modify="force-ldr" rowsep="0">50</entry><entry align="left" colname="column3" leader-modify="clr-ldr" rowsep="0">$5,000</entry>
</row>
<row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">More than 0.10 but not more than 0.15</entry><entry align="right" colname="column2" leader-modify="force-ldr" rowsep="0">40</entry><entry align="left" colname="column3" leader-modify="clr-ldr" rowsep="0">$4,000</entry>
</row>
<row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">More than 0.15 but not more than 0.25</entry><entry align="right" colname="column2" leader-modify="force-ldr" rowsep="0">30</entry><entry align="left" colname="column3" leader-modify="clr-ldr" rowsep="0">$3,000</entry>
</row>
<row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">More than 0.25</entry><entry align="right" colname="column2" leader-modify="force-ldr" rowsep="0">0</entry><entry align="left" colname="column3" leader-modify="clr-ldr" rowsep="0">$0.</entry>
</row>
</tbody>
</tgroup>
</table>
</paragraph><paragraph id="idD2A9F7A39A834A48AFCD08C060C0790E"><enum>(2)</enum><header>Devices with no
cooling capability</header><text>In the case of any qualifying idling reduction
device without any cooling capability, the applicable percentage and applicable
credit amount shall be determined in accordance with the following
table:</text>
<table align-to-level="section" blank-lines-before="1" colsep="1" frame="topbot" line-rules="hor-ver" rowsep="0" rule-weights="4.4.4.0.0.0" table-template-name="Generic: 1 text, 1 num, 1 text" table-type="">
<tgroup cols="3" grid-typeface="1.1" rowsep="0" thead-tbody-ldg-size="10.10.10"><colspec coldef="txt" colname="column1" colwidth="129pts" min-data-value="120" rowsep="0"></colspec><colspec coldef="fig" colname="column2" colsep="1" colwidth="56pts" min-data-value="10"></colspec><colspec coldef="txt-no-ldr" colname="column3" colsep="0" colwidth="129pts" min-data-value="120" rowsep="0"></colspec>
<thead>
<row><entry align="center" colname="column1" morerows="0" namest="column1" rowsep="1">Device consumption of diesel gallon equivalent per
hour</entry><entry align="center" colname="column2" morerows="0" namest="column2" rowsep="1">Applicable percentage</entry><entry align="center" colname="column3" morerows="0" namest="column3" rowsep="1">Applicable credit
amount</entry>
</row>
</thead>
<tbody>
<row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">Not more than 0.04</entry><entry align="right" colname="column2" leader-modify="force-ldr" rowsep="0">50</entry><entry align="left" colname="column3" leader-modify="clr-ldr" rowsep="0">$1,000</entry>
</row>
<row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">More than 0.04 but not more than 0.06</entry><entry align="right" colname="column2" leader-modify="force-ldr" rowsep="0">50</entry><entry align="left" colname="column3" leader-modify="clr-ldr" rowsep="0">$800</entry>
</row>
<row><entry align="left" colname="column1" leader-modify="force-ldr" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1">More than 0.06</entry><entry align="right" colname="column2" leader-modify="force-ldr" rowsep="0">0</entry><entry align="left" colname="column3" leader-modify="clr-ldr" rowsep="0">$0.</entry>
</row>
</tbody>
</tgroup>
</table>
</paragraph><paragraph id="id220C27486D664A228B3C03DC9A08ABE7"><enum>(3)</enum><header>Modification
authority</header><text>The Administrator of the Environmental Protection
Agency, in consultation with the Secretary, may modify the consumption
thresholds categories specified in the tables under paragraphs (1) and (2) by
not more than 0.05 diesel gallon equivalent per hour, but only if testing
procedures do not prove accurate enough to discern between such specified
categories.</text>
</paragraph></subsection><subsection id="HCCE20550AE874684AF826807E821F255"><enum>(d)</enum><header>Qualifying
idling reduction device</header><text>For purposes of this section—</text>
<paragraph id="HE8CB72C66D6141B1008870B4FFD8ECD6"><enum>(1)</enum><header>In
general</header><text>The term <term>qualifying idling reduction device</term>
means any on-board device or system of devices which—</text>
<subparagraph id="H76DF04E74C0144B69E10C8317D000000"><enum>(A)</enum><text>is installed on a
heavy-duty diesel-powered on-highway vehicle in conformance with safety
regulations under section 393 of title 49 of the Code of Federal
Regulations,</text>
</subparagraph><subparagraph id="H9B9DD493C8694E9DB860E608E0E1B3C"><enum>(B)</enum><text>is designed to
provide to such vehicle those services (such as heat, air conditioning, or
electricity) that would otherwise require the operation of the main drive
engine while the vehicle is temporarily parked or remains stationary,</text>
</subparagraph><subparagraph id="id6AA45E26053F44AAA0CAC48571895DF7"><enum>(C)</enum><text>is capable of
providing power continuously for such services for at least 8 consecutive
hours,</text>
</subparagraph><subparagraph id="id6F56D34FE02B47DC8502A799B33AFC47"><enum>(D)</enum><text>emits fewer
oxides of nitrogen (NOx) and particulate matter (PM) on a cumulative basis than
would be emitted by a 2010-compliant engine running for the same amount of time
(as determined under Environmental Protection Agency emission standards and
supplemental requirements for 2007 and later model year diesel heavy-duty
engines and vehicles (40 C.F.R. 86.007–11)),</text>
</subparagraph><subparagraph id="HD7F2D473B9064259B0E7CC6ED0F538FF"><enum>(E)</enum><text>the original use
of which commences with the taxpayer,</text>
</subparagraph><subparagraph id="H58C7E4BBE78F465DA0735C97F2ABED39"><enum>(F)</enum><text>is acquired for
use by the taxpayer and not for resale, and</text>
</subparagraph><subparagraph id="HAED9B30BA70549D7860055E1008304DC"><enum>(G)</enum><text>has had its
average hourly fuel consumption in diesel equivalent gallons verified by the
Secretary, in consultation with the Administrator of the Environmental
Protection Agency.</text>
</subparagraph></paragraph><paragraph id="HCA89844382DF43EB8729F6B1D71F7DAA"><enum>(2)</enum><header>Heavy-duty
diesel-powered on-highway vehicle</header><text>The term <term>heavy-duty
diesel-powered on-highway vehicle</term> means any diesel-powered commercial
motor vehicle with a gross vehicle registered weight of at least 26,000 pounds
(as defined by the Secretary of Transportation) which is propelled or drawn by
mechanical power and used upon the highways in the transportation of passengers
or property.</text>
</paragraph><paragraph id="HDEFABA0A087D486097FBA1AC09707F98"><enum>(3)</enum><header>Determination of
verification standards</header><text display-inline="yes-display-inline">The
Secretary, in consultation with the Administrator of the Environmental
Protection Agency, shall establish testing methodology and standards for
verifying qualifying idling reduction devices.</text>
</paragraph></subsection><subsection id="HDD6BD4E6CB614C22AC889C061631D141"><enum>(e)</enum><header>No Double
Benefit</header><text>For purposes of this section—</text>
<paragraph id="HD764454169674EDCB1DA34DF80F95003"><enum>(1)</enum><header>Reduction in
basis</header><text>If a credit is determined under this section with respect
to any property by reason of expenditures described in subsection (a), the
basis of such property shall be reduced by the amount of the credit so
determined.</text>
</paragraph><paragraph id="HF2AB5B1CB5E943E8AC2336E9AD00C412"><enum>(2)</enum><header>Other deductions
and credits</header><text>No deduction or credit shall be allowed under any
other provision of this chapter with respect to the amount of the credit
determined under this section.</text>
</paragraph></subsection><subsection id="H75CD1F1FEF7C48FCA44CF009D250D7EB"><enum>(f)</enum><header>Election Not To
Claim Credit</header><text>This section shall not apply to a taxpayer for any
taxable year if such taxpayer elects to have this section not apply for such
taxable year.</text>
</subsection><subsection id="idAB6C947F82134E888EA4DA2526778642"><enum>(g)</enum><header>Termination</header><text>This
section shall not apply to any device placed in service after December 31,
2014.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H082E98D997ED4F608C80AE00C0411CCA"><enum>(b)</enum><header>Credit To be
part of general business credit</header><text>Subsection (b) of section 38, as
amended by section 201, is amended by striking <quote>plus</quote> at the end
of paragraph (39), by striking the period at the end of paragraph (40) and
inserting <quote>, plus</quote>, and by adding at the end the following new
paragraph:</text>
<quoted-block id="H917A8AB2315649DE8E34066800868B3E" style="OLC">
<paragraph id="H111E4A9B82264E84AABAAE9D88B29B00"><enum>(41)</enum><text>the idling
reduction tax credit determined under section
45V(a).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H6F6568821CB643618395BE352C11C0C1"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph id="H7264CF9D041044AF0080A284E559F0CE"><enum>(1)</enum><text>The table of
sections for subpart D of part IV of subchapter A of chapter 1, as amended by
section 113, is amended by adding at the end the following new item:</text>
<quoted-block id="H90743A398BF642D5A0EF3F6B1FA11391" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 45V. Idling reduction
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H1A183D85F93A49F69341EB659B041B69"><enum>(2)</enum><text>Section 1016(a),
as amended by section 201, is amended by striking <quote>and</quote> at the end
of paragraph (39), by striking the period at the end of paragraph (40) and
inserting <quote>, and</quote>, and by adding at the end the following:</text>
<quoted-block id="HC0A2B8CD6E1543CD86AFED5739CA2C9C" style="OLC">
<paragraph id="HBB37059BABB84329B8088DD9DAB28538"><enum>(41)</enum><text>in the case of a
facility with respect to which a credit was allowed under section 45V, to the
extent provided in section
45V(e)(A).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id190B353E63354F1E9EA9559A3F68C33A"><enum>(3)</enum><text>Section 6501(m),
as amended by section 201, is amended by inserting <quote>45V(f)</quote> after
<quote>45H(g)</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HBB6E60AD720945B6B206032FB56DE07C"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to devices
placed in service after the date of the enactment of this Act.</text>
</subsection></section><enum>III</enum><header>Promotion of
domestic manufacturing</header>
<section id="id3D4C6DD0FBE347E1AD926673ADE1E5C7" section-type="subsequent-section"><enum>301.</enum><header>Expansion and
modification of qualifying advanced energy project credit</header>
<subsection id="id626F875D51AB4F00ABA872353B19AF73"><enum>(a)</enum><header>Credit
rate</header><text>Section 48C(a) is amended by striking <quote>equal to 30
percent</quote> and inserting <quote>the percentage determined by the Secretary
(not to exceed 30 percent)</quote>.</text>
</subsection><subsection id="id76A7F8FFD449418DBCA184CB7F93BDBD"><enum>(b)</enum><header>Dollar
limitation</header><text display-inline="yes-display-inline">Section
48C(d)(1)(B) is amended by striking <quote>$2,300,000,000</quote> and inserting
<quote>$4,800,000,000</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id8252CC74A93A48E39D63AF44E2EA6EC2"><enum>(c)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to
allocations for applications submitted after December 31, 2009.</text>
</subsection></section><section id="idF5D293EA45EA4CC38C47DFAC3B645F9B"><enum>302.</enum><header>Qualifying
industrial energy efficiency project credit</header>
<subsection id="id676F7A57569445CA9AE40A64B245B166"><enum>(a)</enum><header>In
general</header><text>Section 46 of the Internal Revenue Code of 1986, as
amended by section 111, is amended by striking <quote>and</quote> at the end of
paragraph (6), by striking the period at the end of paragraph (7), and by
adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id512D26CF26D747B38BBC04F9DC78AB17" style="OLC">
<paragraph id="idB2CF3E5317F24068B6902D1C5A549F04"><enum>(8)</enum><text>the qualifying
industrial energy efficiency project
credit.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id5A29B26A410E4F5AB6FDE16754429D79"><enum>(b)</enum><header>Amount of
credit</header><text>Subpart E of part IV of subchapter A of chapter 1, as
amended by section 111, is amended by inserting after section 48E the following
new section:</text>
<quoted-block display-inline="no-display-inline" id="id4B2B9435F36F44BABBB981203B22E8C4" style="OLC">
<section id="id48616836F54044F8A6107F5C738B34A5"><enum>48F.</enum><header>Credit for
industrial energy efficiency projects</header>
<subsection id="ID6e1a2c9ce241486ea6cf1b52f2e454e3"><enum>(a)</enum><header>In
general</header><text>For purposes of section 46, the qualifying industrial
energy efficiency project credit for any taxable year is an amount equal to 30
percent of the qualified investment for such taxable year with respect to any
qualifying industrial energy efficiency project of an eligible taxpayer.</text>
</subsection><subsection id="IDfb27ec2255124368830fdda7964abd1a"><enum>(b)</enum><header>Eligible
taxpayer</header><text>For purposes of this section—</text>
<paragraph id="idB01DCBAD1CB54052A7A2B999806086A1"><enum>(1)</enum><header>In
general</header><text>The term <term>eligible taxpayer</term> means, with
respect to any taxable year, any taxpayer which is an industrial source.</text>
</paragraph><paragraph id="ID595acdf361df47c8b507e4e0422ff5c5"><enum>(2)</enum><header>Industrial
source</header><text>The term <term>industrial source</term> means any
stationary source which—</text>
<subparagraph id="ID641ca7de4d544f7491ec98408d7d78bc"><enum>(A)</enum><text>is not primarily
an electricity source, and</text>
</subparagraph><subparagraph id="idC4DF4D0FF0B44D96A3E825C8F2E4B7D5"><enum>(B)</enum><text>is in—</text>
<clause id="ID1b600fa28ffb4130915e306b99813624"><enum>(i)</enum><text>the manufacturing
sector (as defined in North American Industrial Classification System codes 31,
32, and 33), or</text>
</clause><clause id="ID2871d05690f34b289fe93986cd72eb8b"><enum>(ii)</enum><text>the natural gas
processing or natural gas pipeline transportation sector (as defined in North
American Industrial Classification System code 211112 or 486210).</text>
</clause></subparagraph></paragraph></subsection><subsection id="ID405479297f524854aec2f6c15a404313"><enum>(c)</enum><header>Qualified
investment</header>
<paragraph id="ID94aaf8fb98294cfc9e215d5a4b6be8d5"><enum>(1)</enum><header>In
general</header><text>For purposes of subsection (a), the qualified investment
for any taxable year is the basis of eligible property placed in service by the
taxpayer during such taxable year which is part of a qualifying industrial
energy efficiency project.</text>
</paragraph><paragraph id="ID5a1ef34647644af382778e95b0b0e838"><enum>(2)</enum><header>Certain
qualified progress expenditures 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 enactment of the Revenue Reconciliation Act of 1990)
shall apply for purposes of this section.</text>
</paragraph><paragraph id="ID9c0cd7e97d744f4c847f4bd46b37a137"><enum>(3)</enum><header>Limitation</header><text>The
amount which is treated for all taxable years with respect to any qualifying
industrial energy efficiency project shall not exceed the amount designated by
the Secretary as eligible for the credit under this section.</text>
</paragraph></subsection><subsection id="ID87bf73b843974b068881b8e621ef599c"><enum>(d)</enum><header>Definitions</header>
<paragraph id="ID859385503b1c418497b3297d5a65b177"><enum>(1)</enum><header>Qualifying
industrial energy efficiency project</header><text>The term <term>qualifying
industrial energy efficiency project</term> means a project which reduces
energy inputs for a given level of production by capital expenditures.</text>
</paragraph><paragraph id="ID7c33649e58a44aad8a8c54bcd05b4778"><enum>(2)</enum><header>Eligible
property</header><text>The term <term>eligible property</term> means any
property—</text>
<subparagraph id="ID9dc2a7fb26284fdabf4d70a14ce5bfee"><enum>(A)</enum><text>which is
necessary for the energy efficiency improvement described in paragraph
(1),</text>
</subparagraph><subparagraph id="ID012d82f3af2a41ab9df823bd67ab6de5"><enum>(B)</enum><text>which is—</text>
<clause id="IDf1d3f36df4914f80ab0636de0e4a2844"><enum>(i)</enum><text>tangible personal
property, or</text>
</clause><clause id="IDf149cb7a7a714c90a128b0dbb447420c"><enum>(ii)</enum><text>other tangible
property (not including a building or its structural components), but only if
such property is used as an integral part of the qualifying industrial energy
efficiency project, and</text>
</clause></subparagraph><subparagraph id="IDce673b27ed5e48c0a275ba60037e6041"><enum>(C)</enum><text>with respect to
which depreciation (or amortization in lieu of depreciation) is
allowable.</text>
</subparagraph></paragraph></subsection><subsection id="ID1230a1d2adb24c86b97853f4aba435b2"><enum>(e)</enum><header>Qualifying
credit for industrial energy efficiency program</header>
<paragraph id="ID0881604eeed9481bb3cedfd149ad7e0a"><enum>(1)</enum><header>Establishment</header>
<subparagraph id="ID14cfd239296e429b93687c874becc8a2"><enum>(A)</enum><header>In
general</header><text>Not later than 180 days after the date of the enactment
of this section, the Secretary, in consultation with the Secretary of Energy,
shall establish a qualifying credit for industrial energy efficiency program to
consider and award certifications for qualified investments eligible for
credits under this section to qualifying industrial energy efficiency project
sponsors.</text>
</subparagraph><subparagraph id="ID2b5912f68f544cee9a8177854439a6c7"><enum>(B)</enum><header>Limitation</header><text>The
total amount of credits that may be allocated under the program shall not
exceed $1,000,000,000.</text>
</subparagraph></paragraph><paragraph id="ID5b91dab9b4694b8fbc2e68595d9e49aa"><enum>(2)</enum><header>Certification</header>
<subparagraph id="IDb12ca8a00ae24f70ae1da516a0f23103"><enum>(A)</enum><header>Application
period</header><text>Each applicant for certification under this paragraph
shall submit an application containing such information as the Secretary may
require during the 2-year period beginning on the date the Secretary
establishes the program under paragraph (1).</text>
</subparagraph><subparagraph id="IDa18e2b0f47b64d498046fa75614a83ff"><enum>(B)</enum><header>Time to meet
criteria for certification</header><text>Each applicant for certification shall
have 1 year from the date of acceptance by the Secretary of the application
during which to provide to the Secretary evidence that the requirements of the
certification have been met.</text>
</subparagraph><subparagraph id="ID68d17ae056dc40bba0d0f6f06354dfad"><enum>(C)</enum><header>Period of
issuance</header><text>An applicant which receives a certification shall have 3
years from the date of issuance of the certification in order to place the
project in service and if such project is not placed in service by that time
period, then the certification shall no longer be valid.</text>
</subparagraph></paragraph><paragraph id="ID9b2f6245975d48e5b3781d1e5ffebedc"><enum>(3)</enum><header>Selection
criteria</header><text>In determining which qualifying industrial energy
efficiency projects to certify under this section, the Secretary—</text>
<subparagraph id="ID8416678e1f63421ea1be019ffa4df987"><enum>(A)</enum><text>shall take into
consideration which projects—</text>
<clause id="IDe3f3af156cfe479881e9a08605d2edd1"><enum>(i)</enum><text>will provide the
greatest domestic job retention and creation (both direct and indirect) during
the credit period,</text>
</clause><clause id="ID7527f2f8ea564f5caa7014574dd9cfe3"><enum>(ii)</enum><text>will provide the
greatest net impact in avoiding or reducing greenhouse gas emissions,
and</text>
</clause><clause id="ID5171eef9bb0a45cf82820aec0bc7f2bd"><enum>(iii)</enum><text>will provide
the greatest net reduction of pollutants.</text>
</clause></subparagraph></paragraph><paragraph id="ID6c31f2558e6845b98c9bb0d60015ec2e"><enum>(4)</enum><header>Review and
redistribution</header>
<subparagraph id="ID06812596577f463e997e5e65f6a52007"><enum>(A)</enum><header>Review</header><text>Not
later than 4 years after the date of the enactment of this section, the
Secretary shall review the credits allocated under this section as of such
date.</text>
</subparagraph><subparagraph id="ID796c100faca34d019639f76f8838219d"><enum>(B)</enum><header>Redistribution</header><text>The
Secretary may reallocate credits awarded under this section if the Secretary
determines that—</text>
<clause id="IDea8d43fb04e04c3daba679b8ff050837"><enum>(i)</enum><text>there is an
insufficient quantity of qualifying applications for certification pending at
the time of the review, or</text>
</clause><clause id="ID07c0115a9e804143931912eac06ee030"><enum>(ii)</enum><text>any
certification made pursuant to paragraph (2) has been revoked pursuant to
paragraph (2)(B) because the project subject to the certification has been
delayed as a result of third party opposition or litigation to the proposed
project.</text>
</clause></subparagraph><subparagraph id="IDa5aacd7d0e4540808b9f706227c6330e"><enum>(C)</enum><header>Reallocation</header><text>If
the Secretary determines that credits under this section are available for
reallocation pursuant to the requirements set forth in paragraph (2), the
Secretary is authorized to conduct an additional program for applications for
certification.</text>
</subparagraph></paragraph><paragraph id="IDdc94b0e6bd2a43698f7951f7bfd1950b"><enum>(5)</enum><header>Disclosure of
allocations</header><text>The Secretary shall, upon making a certification
under this subsection, publicly disclose the identity of the applicant, the
location of the project which is the subject of the application, and the amount
of the credit with respect to such applicant.</text>
</paragraph></subsection><subsection id="ID2127495292dc4c39b478eca533bcd1b6"><enum>(f)</enum><header>Denial of
double benefit</header><text>A credit shall not be allowed under this section
for any qualified investment for which a credit is allowed under section 48,
48A, 48B, or
48C.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID6184506db3804f8d829a19eb6975aa90"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph id="IDd242478ade8b419c931c74628b8e5398"><enum>(1)</enum><text>Section
49(a)(1)(C), as amended by section 111, is amended—</text>
<subparagraph id="id88C54D5275344A0C9579033C63ABF959"><enum>(A)</enum><text>by striking
<quote>and</quote> at the end of clause (vi),</text>
</subparagraph><subparagraph id="id0AA4BD7E58D346918BA547E8803A0691"><enum>(B)</enum><text>by striking the
period at the end of clause (vii) and inserting <quote>, and</quote>;
and</text>
</subparagraph><subparagraph id="idC1906F6C6FD54B56A1DCDBFA5E160903"><enum>(C)</enum><text>by adding after
clause (vii) the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="idBCDDC6CC0B5D4923AC9B3358C03198E5" style="OLC">
<clause id="ID27901a7d3f7b4025b0988e3b6705f01e"><enum>(viii)</enum><text>the basis of
any property which is part of a qualifying industrial energy efficiency project
under section
48F.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="IDc7f9cf11fe2b412eb2421a8675eeaca6"><enum>(2)</enum><text>The table of
sections for subpart E of part IV of subchapter A of chapter 1, as amended by
section 111, is amended by inserting after the item relating to section 48E the
following new item:</text>
<quoted-block id="id8adfd104-4089-440f-9072-91c033634697" style="OLC">
<toc>
<toc-entry idref="id48616836F54044F8A6107F5C738B34A5" level="section">48F. Credit for industrial energy efficiency
projects.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID646c84e629394880bd8748608203797b"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to periods
after the date of the enactment of this Act, under rules similar to the rules
of section 48(m) 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><enum>IV</enum><header>Grid efficiency
and reliability</header>
<section id="id3FB5562DCED341EC9F8400D09B16DAAE"><enum>401.</enum><header>Energy
investment credit for energy storage property connected to the grid</header>
<subsection id="id5232F9610793445B9B9230E6A47F0DA2"><enum>(a)</enum><header>Up to 20
percent credit allowed</header><text>Subparagraph (A) of section 48(a)(2) is
amended—</text>
<paragraph id="idE5C179BCAAE5465795DC2A96C814BBA1"><enum>(1)</enum><text>by striking
<quote>and</quote> at the end of subclause (IV) of clause (i),</text>
</paragraph><paragraph id="id5AD8F6516A9F43F59DA6B1BFB0E57D8E"><enum>(2)</enum><text>by striking
<quote>clause (i)</quote> in clause (ii) and inserting <quote>clause (i) or
(ii)</quote>,</text>
</paragraph><paragraph id="id535A487520D54633B2A51C7BCF0099C4"><enum>(3)</enum><text>by redesignating
clause (ii) as clause (iii), and</text>
</paragraph><paragraph id="id4CB19D39AF114C07A3F64037940722E4"><enum>(4)</enum><text>by inserting
after clause (i) the following new clause:</text>
<quoted-block act-name="" id="id05F91B746CD74F339D29D9E4B9174B83" style="OLC">
<clause id="id27D473A2722D4A1D87DBEB809047C674"><enum>(ii)</enum><text>as provided in
subsection (c)(5)(D), the percentage determined by the Secretary (not to excced
20 percent) in the case of qualified energy storage property,
and</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id30648B94170B4706ACE8F07A91469C5A"><enum>(b)</enum><header>Qualified
energy storage property</header><text>Subsection (c) of section 48 is amended
by adding at the end the following new paragraph:</text>
<quoted-block act-name="" id="id3D74AD4339D64468A5A9B36EF3B0F813" style="OLC">
<paragraph id="idE0B6073CD6EB446A97D43F241E34DE46"><enum>(5)</enum><header>Qualified
energy storage property</header>
<subparagraph id="id7AAE1561A1954AED9517171C76DB1505"><enum>(A)</enum><header>In
general</header><text>The term <term>qualified energy storage property</term>
means property—</text>
<clause id="idAD192A2337A94B4ABFEABA38C4A8B9DE"><enum>(i)</enum><text>which is directly
connected to the electrical grid, and</text>
</clause><clause id="id6EB2A0F62F7348DA9184614615735790"><enum>(ii)</enum><text>which is
designed to receive electrical energy, to store such energy, and—</text>
<subclause id="idCBC8686DC54146B0886D8818A64D3BFA"><enum>(I)</enum><text>to convert such
energy to electricity and deliver such electricity for sale, or</text>
</subclause><subclause id="idE6AFD3737161416A866B2F0BCE2FADB4"><enum>(II)</enum><text>to use such
energy to provide improved reliability or economic benefits to the grid.</text>
</subclause></clause><continuation-text continuation-text-level="subparagraph">Such
term may include hydroelectric pumped storage and compressed air energy
storage, regenerative fuel cells, batteries, superconducting magnetic energy
storage, flywheels, thermal energy storage systems, and hydrogen storage, or
combination thereof, or any other technologies as the Secretary, in
consultation with the Secretary of Energy, shall determine.</continuation-text></subparagraph><subparagraph id="id94FE03E39E754AEFB85D49B3A7CFB002"><enum>(B)</enum><header>Minimum
capacity</header><text>The term <term>qualified energy storage property</term>
shall not include any property unless such property in aggregate has the
ability to sustain a power rating of at least 1 megawatt for a minimum of 1
hour.</text>
</subparagraph><subparagraph id="idDF80EEF6DCBD415284577E73004D5612"><enum>(C)</enum><header>Electrical
grid</header><text>The term <term>electrical grid</term> means the system of
generators, transmission lines, and distribution facilities which—</text>
<clause id="idA8B0DD63C7F04192948C5E8A5AD846A2"><enum>(i)</enum><text>are under the
jurisdiction of the Federal Energy Regulatory Commission or State public
utility commissions, or</text>
</clause><clause id="idECA9B0C33EE241F7B10733BF3BAB9D2A"><enum>(ii)</enum><text>are owned
by—</text>
<subclause id="idBF287D6DBDD34AA4ACB83831BEEF4967"><enum>(I)</enum><text>the Federal
government,</text>
</subclause><subclause id="id3A2E76DEDE5140D48B280018B36EFD92"><enum>(II)</enum><text>a State or any
political subdivision of a State,</text>
</subclause><subclause id="id7E14E3A85DEE4140BEDEB4E24A5F9C6B"><enum>(III)</enum><text>an electric
cooperative that receives financing under the Rural Electrification Act of 1936
(7 U.S.C. 901 et seq.) or that sells less than 4,000,000 megawatt hours of
electricity per year, or</text>
</subclause><subclause id="id804D15C8F9BF4C5197E07D607AC1A4DC"><enum>(IV)</enum><text>any agency,
authority, or instrumentality of any one or more of the entities described in
subclause (I) or (II), or any corporation which is wholly owned, directly or
indirectly, by any one or more of such entities.</text>
</subclause></clause></subparagraph><subparagraph id="id3ABABA52D33345288DBF4EEBBDACFF3E"><enum>(D)</enum><header>Allocation of
credits</header>
<clause id="idCD2874B2E4C8433A96CF45FF1CB71977"><enum>(i)</enum><header>In
general</header><text>In the case of qualified energy storage property placed
in service during the taxable year, the credit otherwise determined under
subsection (a) for such year with respect to such property shall not exceed the
amount allocated to such project under clause (ii).</text>
</clause><clause id="idE788BB0A703740209A7E895EBA6CAE96"><enum>(ii)</enum><header>National
limitation and allocation</header><text>There is a qualified energy storage
property investment credit limitation of $1,500,000,000. Such limitation shall
be allocated by the Secretary among qualified energy storage property projects
selected by the Secretary, in consultation with the Secretary of Energy, for
taxable years beginning after the date of the enactment of the
<short-title>Advanced Energy Tax Incentives Act of
2010</short-title>, except that not more than $30,000,000 shall be allocated to
any project for all such taxable years.</text>
</clause><clause id="idD985D0F6092F4397A695355AE926EFC7"><enum>(iii)</enum><header>Selection
criteria</header><text>In making allocations under clause (ii), the Secretary,
in consultation with the Secretary of Energy, shall select only those projects
which have a reasonable expectation of commercial viability, select projects
representing a variety of technologies, applications, and project sizes, and
give priority to projects which—</text>
<subclause id="id4BC76031E5C24B628E8F51EF6EA60097"><enum>(I)</enum><text>provide the
greatest increase in reliability or the greatest economic benefit,</text>
</subclause><subclause id="id1DF5846728D84A1781D6444CC342EF5A"><enum>(II)</enum><text>enable the
greatest improvement in integration of renewable resources into the grid,
or</text>
</subclause><subclause id="id34C69AFBACA34F809DACA9262996769B"><enum>(III)</enum><text>enable the
greatest increase in efficiency in operation of the grid.</text>
</subclause></clause><clause id="id5F0DD4AD335E4FD2AE7AC34791EA5FA4"><enum>(iv)</enum><header>Deadlines</header>
<subclause id="id48B3400261F94607ADDEC057E0112C7E"><enum>(I)</enum><header>In
general</header><text>If a project which receives an allocation under clause
(ii) is not placed in service within 2 years after the date of such allocation,
such allocation shall be invalid.</text>
</subclause><subclause id="id0873B5A1B2A64E7CB6663272874D60A0"><enum>(II)</enum><header>Special rule
for hydroelectric pumped storage</header><text>Notwithstanding subclause (I),
in the case of a hydroelectric pumped storage project, if such project has not
received such permits or licenses as are determined necessary by the Secretary,
in consultation with the Secretary of Energy, within 3 years after the date of
such allocation, begun construction within 5 years after the date of such
allocation, and been placed in service within 8 years after the date of such
allocation, such allocation shall be invalid.</text>
</subclause><subclause id="idB7A78421119A411DA4BBEC3F5DAE498A"><enum>(III)</enum><header>Special rule
for compressed air energy storage</header><text>Notwithstanding subclause (I),
in the case of a compressed air energy storage project, if such project has not
begun construction within 3 years after the date of the allocation and been
placed in service within 5 years after the date of such allocation, such
allocation shall be invalid.</text>
</subclause><subclause id="id9D2C0318458F4CFDBF8B4FF3D0F9CDA2"><enum>(IV)</enum><header>Exceptions</header><text>The
Secretary may extend the 2-year period in subclause (I) or the periods
described in subclauses (II) and (III) on a project-by-project basis if the
Secretary, in consultation with the Secretary of Energy, determines that there
has been a good faith effort to begin construction or to place the project in
service, whichever is applicable, and that any delay is caused by factors not
in the taxpayer's control.</text>
</subclause></clause></subparagraph><subparagraph id="idDF6319160C7340398FC22AE41C64E07C"><enum>(E)</enum><header>Review and
redistribution</header>
<clause id="id7D5172352B294DE9B68659F34A709687"><enum>(i)</enum><header>Review</header><text>Not
later than 4 years after the date of the enactment of the
<short-title>Advanced Energy Tax Incentives Act of
2010</short-title>, the Secretary shall review the credits allocated under
subparagraph (D) as of the date of such review.</text>
</clause><clause id="id0F336489807D49D4BD123A0442B4C010"><enum>(ii)</enum><header>Redistribution</header><text>Upon
the review described in clause (i), the Secretary may reallocate credits
allocated under subparagraph (D) if the Secretary determines that—</text>
<subclause id="IDcb7a48a7dd3048dc8fd96a38bc2d6106"><enum>(I)</enum><text>there is an
insufficient quantity of qualifying applications for certification pending at
the time of the review, or</text>
</subclause><subclause id="ID5b24f97190dd4ea1a67987e0ff8ebbc3"><enum>(II)</enum><text>any allocation
made under subparagraph (D)(ii) has been revoked pursuant to subparagraph
(D)(iv) because the project subject to such allocation has been delayed.</text>
</subclause></clause></subparagraph><subparagraph id="ID591f313a1a854d3dbc97a4b6a19d9c22"><enum>(F)</enum><header>Disclosure of
allocations</header><text>The Secretary shall, upon making an allocation under
subparagraph (D)(ii), publicly disclose the identity of the applicant, the
location of the project, and the amount of the credit with respect to such
applicant.</text>
</subparagraph><subparagraph id="id730C2DF5D8C347D08C85A9DD6F6464F3"><enum>(G)</enum><header>Termination</header><text>No
credit shall be allocated under subparagraph (D) for any period ending after
December 31,
2020.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="idC6747D16DA4D4E33AA72D2E5A0896378"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to periods
after the date of the enactment of this Act, under rules similar to the rules
of section 48(m) 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 commented="no" id="idC23ADE0A53834BAA939599D9DE0558EC"><enum>402.</enum><header>Energy storage
property connected to the grid eligible for new clean renewable energy
bonds</header>
<subsection commented="no" id="idBCD5CE8E3F4C44839CF05CD5ECA2A35D"><enum>(a)</enum><header>In
general</header><text>Paragraph (1) of section 54C(d) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="idC3A77F19EC884B39AFDC8B3D0AC532C2" style="OLC">
<paragraph commented="no" id="id19702E366F00454CBEFC5F25A61C24C1"><enum>(1)</enum><header>Qualified
renewable energy facility</header><text>The term <term>qualified renewable
energy facility</term> means a facility which is—</text>
<subparagraph commented="no" id="id5D236DC1F6894007B9438D73FDDDD41F"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="idA391B55B5CD849C1B1AFEEEAE27F9337"><enum>(i)</enum><text>a qualified facility
(as determined under section 45(d) without regard to paragraphs (8) and (10)
thereof and to any placed in service date), or</text>
</clause><clause commented="no" id="id7A9BB60E9BA54CA6BDD1F739483A4A48" indent="up1"><enum>(ii)</enum><text>a qualified energy storage
property (as defined in section 48(c)(5)), and</text>
</clause></subparagraph><subparagraph commented="no" id="id558C7CBBF6004A64BB6D4577BF4C6A24"><enum>(B)</enum><text>owned by a public
power provider, a governmental body, or a cooperative electric
company.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id3645529308254AA4BFFA6B0D38635B77"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to
obligations issued after the date of the enactment of this Act.</text>
</subsection></section><section id="idD94851AAE74F49CC8CD937D16FCF2C26"><enum>403.</enum><header>Energy
investment credit for onsite energy storage</header>
<subsection id="id2965F14FE48D4FBDA8909F0097C7F28E"><enum>(a)</enum><header>Credit
allowed</header><text>Clause (i) of section 48(a)(2)(A), as amended by section
401, is amended—</text>
<paragraph id="idBB46AC71EF864A9EBC9EE6CEC98F359D"><enum>(1)</enum><text>by striking
<quote>and</quote> at the end of subclause (III),</text>
</paragraph><paragraph id="id3AC234A18EE74FBF9B8183FF4F2E11F8"><enum>(2)</enum><text>by inserting
<quote>and</quote> at the end of subclause (IV), and</text>
</paragraph><paragraph id="id9859EE40CC4545ABB89830A460710927"><enum>(3)</enum><text>by adding at the
end the following new subclause:</text>
<quoted-block act-name="" id="id0BD8C41709B6418C957C8052E53FE53F" style="OLC">
<subclause id="id5786007A7FEC4659B8F1B69C9D30682B"><enum>(V)</enum><text>qualified onsite
energy storage
property,</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="idB31CA5CDBE9D466E9728D61D25E0E39A"><enum>(b)</enum><header>Qualified
onsite energy storage property</header><text>Subsection (c) of section 48, as
amended by section 401, is amended by adding at the end the following new
paragraph:</text>
<quoted-block act-name="" id="id629FBE3D2FD541E2996C7C082271DBB0" style="OLC">
<paragraph id="id5CF0C38718F24C3BA0DBDFFD31E1865F"><enum>(6)</enum><header>Qualified
onsite energy storage property</header>
<subparagraph id="id452D3B9475EB496AB4196741C9E1B3FE"><enum>(A)</enum><header>In
general</header><text>The term <term>qualified onsite energy storage
property</term> means property which—</text>
<clause id="id97EDB7B6AF58432FBCDD16660CAC1250"><enum>(i)</enum><text>provides
supplemental energy to reduce peak energy requirements primarily on the same
site where the storage is located, or</text>
</clause><clause id="idE46C8FD6E7804B2BA9E5C3217B80AAE7"><enum>(ii)</enum><text>is designed and
used primarily to receive and store intermittent renewable energy generated
onsite and to deliver such energy primarily for onsite consumption.</text>
</clause><continuation-text continuation-text-level="subparagraph">Such
term may include thermal energy storage systems and property used to charge
plug-in and hybrid electric vehicles if such property or vehicles are equipped
with smart grid services which control time-of-day charging and discharging of
such vehicles. Such term shall not include any property for which any other
credit is allowed under this chapter.</continuation-text></subparagraph><subparagraph id="id3D63E4F1A82E4026A92B262014EC7E61"><enum>(B)</enum><header>Minimum
capacity</header><text>The term <term>qualified onsite energy storage
property</term> shall not include any property unless such property in
aggregate—</text>
<clause id="id64BE8E887471471FB9C2921AA5DDA1F9"><enum>(i)</enum><text>has the ability
to store the energy equivalent of at least 20 kilowatt hours of energy,</text>
</clause><clause id="id6797627B843C4FD8919663B2AF6C7681"><enum>(ii)</enum><text>has the ability
to have an output of the energy equivalent of 5 kilowatts of electricity for a
period of 4 hours, and</text>
</clause><clause id="id36C6F9FF9C44436B816C6579E000E15F"><enum>(iii)</enum><text>has a roundtrip
energy storage efficiency of not less than 70 percent.</text>
</clause></subparagraph><subparagraph id="id4662765EB1254371A43938A756AED899"><enum>(C)</enum><header>Limitation</header><text>In
the case of qualified onsite energy storage property placed in service during
the taxable year, the credit otherwise determined under subsection (a) for such
year with respect to such property shall not exceed
$1,000,000.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="idC488004CA832474AB4F26BD116FD9420"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to periods
after the date of the enactment of this Act, under rules similar to the rules
of section 48(m) 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="id582AE0B2848742F88F7596AFB11A8CA9"><enum>404.</enum><header>Credit for
residential energy storage equipment</header>
<subsection id="id8AEE9D9053DC4C9D803B05EF2E237F6E"><enum>(a)</enum><header>Credit
allowed</header><text>Subsection (a) of section 25C is amended—</text>
<paragraph id="idCC361DE28FAA4ADB82DFB1ADE977558D"><enum>(1)</enum><text>by redesignating
paragraphs (2) and (3) as paragraphs (3) and (4), respectively, and</text>
</paragraph><paragraph id="id6A915F92CA55447CB662679C262A38C1"><enum>(2)</enum><text>by inserting
after paragraph (1) the following new paragraph:</text>
<quoted-block act-name="" id="idA08C767BB00D45D8813FFA45F3130C82" style="OLC">
<paragraph id="id44CCE6C70BA9402B8D5BFF68971C46AC"><enum>(2)</enum><text>30 percent of the
amount paid or incurred by the taxpayer for qualified residential energy
storage equipment installed during such taxable
year,</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id6F429BEA80EB4AC6889DF2C9057CF7B8"><enum>(b)</enum><header>Qualified
residential energy storage equipment</header>
<paragraph id="idCDEA8C846C424280AF9680691530A837"><enum>(1)</enum><header>In
general</header><text>Section 25C is amended—</text>
<subparagraph id="id13044EF7B6F542188E57B62F57A006F8"><enum>(A)</enum><text>by redesignating
subsections (e), (f), and (g) subsections (f), (g), and (h), respectively,
and</text>
</subparagraph><subparagraph id="id3B4741B413184ED3A813805531060974"><enum>(B)</enum><text>by inserting
after subsection (d) the following new subsection:</text>
<quoted-block act-name="" id="id3E0F7B11EE1E4925AEA2866D6EBCF118" style="OLC">
<subsection id="id83E002C33B1D4CC9869A2608141B570B"><enum>(d)</enum><header>Qualified
residential energy storage equipment</header><text>For purposes of this
section, the term <term>qualified residential energy storage equipment</term>
means property—</text>
<paragraph id="id6D3A97F59C714C44BCA632AAFFFF8473"><enum>(1)</enum><text>which is
installed in or on a dwelling unit located in the United States and owned and
used by the taxpayer as the taxpayer's principal residence (within the meaning
of section 121), or on property owned by the taxpayer on which such a dwelling
unit is located,</text>
</paragraph><paragraph id="idF2C313F823174073837C4665EC7ED1BE"><enum>(2)</enum><text>which—</text>
<subparagraph id="id2314402FD8E54852A6A9A503A8947251"><enum>(A)</enum><text>provides
supplemental energy to reduce peak energy requirements primarily on the same
site where the storage is located, or</text>
</subparagraph><subparagraph id="idF021D0CFF49946A689C3E195831B61AB"><enum>(B)</enum><text>is designed and
used primarily to receive and store intermittent renewable energy generated
onsite and to deliver such energy primarily for onsite consumption,</text>
</subparagraph></paragraph><paragraph id="id6B818EFE3CFF439EAD11C6CE72DF996C"><enum>(3)</enum><text>which has a
roundtrip energy storage efficiency of not less than 70 percent, and</text>
</paragraph><paragraph id="id0CBD531222AE496D85BAB1EB1C952BCF"><enum>(4)</enum><text>which—</text>
<subparagraph id="id4914A933761D4D878E7EF4261CAE7241"><enum>(A)</enum><text>has the ability
to store the energy equivalent of at least 2 kilowatt hours of energy,
and</text>
</subparagraph><subparagraph id="id4CBB51E24FB74638BE131F33CC389D5C"><enum>(B)</enum><text>has the ability
to have an output of the energy equivalent of 500 watts of electricity for a
period of 4 hours.</text>
</subparagraph></paragraph><continuation-text continuation-text-level="subsection">Such term
may include thermal energy storage systems and property used to charge plug-in
and hybrid electric vehicles if such property or vehicles are equipped with
smart grid services which control time-of-day charging and discharging of such
vehicles. Such term shall not include any property for which any other credit
is allowed under this
chapter.</continuation-text></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id146317E825964D3F85594C37C958C068"><enum>(2)</enum><header>Conforming
amendment</header><text>Section 1016(a)(33) is amended by striking
<quote>section 25C(f)</quote> and inserting <quote>section
25C(g)</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id476891E5F49D4F8284EEA99FA8CCE25A"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to property
placed in service after the date of the enactment of this Act.</text>
</subsection></section><section id="id9A5B58EB8F7C4600BF192E0927AEB56A" section-type="subsequent-section"><enum>405.</enum><header>Clarification of
types of energy conservation subsidies provided by public utilities eligible
for income exclusion</header>
<subsection id="idE6CC09DF43C64CC8ACF7159F1D86972A"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 136 is
amended by redesignating subsection (d) as subsection (e) and by inserting
after subsection (c) the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="id07AA3D438DFC415D81BDBD44C8802A72" style="OLC">
<subsection id="idF0221575AD6C42FC8C1C7909295EEEE6"><enum>(d)</enum><header>Net metering or
net billing programs; renewable energy credits</header>
<paragraph id="idF16FFD4322334FD1BC981976EEB79507"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">For purposes of this
section, the term <term>subsidy</term> includes amounts received by a customer
from a public utility—</text>
<subparagraph id="id165B625ED62D45C7946BCA21FB4CA055"><enum>(A)</enum><text display-inline="yes-display-inline">to pay for electricity generated from an
energy conservation measure under a net metering or net billing program,
or</text>
</subparagraph><subparagraph id="id389D42AD1F02447D89C0D3682F29378F"><enum>(B)</enum><text display-inline="yes-display-inline">to pay for renewable energy credits
attributable to an energy conservation measure.</text>
</subparagraph></paragraph><paragraph id="idD56EDAB2ACCA42F2A67C5497B08EB779"><enum>(2)</enum><header>Limitation</header><text>The
amount treated as a subsidy for any taxable year by reason of paragraph (1)(B)
shall not exceed an amount equal to—</text>
<subparagraph id="id73FE7B7B43F04E2F918867E800B442EF"><enum>(A)</enum><text>$2,000,
multiplied by</text>
</subparagraph><subparagraph id="id1979A0A6B08945C0A246F936314225AC"><enum>(B)</enum><text>the whole number
of years worth of renewable energy credits that are sold by the
customer.</text>
</subparagraph></paragraph><paragraph id="id69070C70A95E4CA5BD0E1919003B367C"><enum>(3)</enum><header>No basis
reduction</header><text>Subsection (b) shall not apply with respect to property
any portion of the basis of which is attributable to an amount described in
paragraph
(1).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idA8E4413FF7DB4ED0B78B8F6C62F0D5B6"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to amounts
received after the date of the enactment of this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idA2AF4DADB18E4976B28D84CC589D7337" section-type="subsequent-section"><enum>406.</enum><header display-inline="yes-display-inline">Extension of credits related to the
production of electricity from offshore wind</header>
<subsection commented="no" display-inline="no-display-inline" id="idCB1C5F6A42E94A11B8B6EFBB486DAC6D"><enum>(a)</enum><header display-inline="yes-display-inline">Extension for production credit</header>
<paragraph commented="no" display-inline="no-display-inline" id="id27876503AFA849CE876FC22908C87588"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (1) of section 45(d) is amended
by inserting <quote>(January 1, 2016, in the case of any offshore
facility)</quote> after <quote>and before January 1, 2013</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idD5A02A1B475A468A9DED274CB6A5AF1C"><enum>(2)</enum><header display-inline="yes-display-inline">Offshore facility</header><text display-inline="yes-display-inline">Section 45(e) is amended by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id819EA23D43EA4C85B756A13D0F9B952D" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id3F71C041C2DD4231BC3EAC765FF6D780"><enum>(12)</enum><header display-inline="yes-display-inline">Offshore facility</header><text display-inline="yes-display-inline">The term <term>offshore facility</term>
means any facility located in the inland navigable waters of the United States,
including the Great Lakes, or in the coastal waters of the United States,
including the territorial seas of the United States, the exclusive economic
zone of the United States, and the outer Continental Shelf of the United
States.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id46D03D7297D64016AD38731497FAA305"><enum>(b)</enum><header display-inline="yes-display-inline">Extension for investment
credit</header><text display-inline="yes-display-inline">Clause (i) of section
48(a)(5)(C) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idE326C3FCC1444AA0B1ECD028937D475E"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>is placed in service
in</quote> and
inserting</text>
<quoted-block display-inline="yes-display-inline" id="idA1B774E779A349BDB74C6F2B1E3D9BDA" style="OLC">
<text>is—</text><subclause commented="no" display-inline="no-display-inline" id="idFE706A6655A84C288AA451AC10135B41"><enum>(I)</enum><text display-inline="yes-display-inline">except as provided in subclause (II),
placed in service in</text>
</subclause><after-quoted-block>,
</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id14EEDCEFE32E4DE6810E1CBFAA6031E2"><enum>(2)</enum><text display-inline="yes-display-inline">by striking the period at the end and
inserting <quote>, and</quote>, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id24E59DE4189D4EF1AFD0B5F67170693A"><enum>(3)</enum><text display-inline="yes-display-inline">by adding at the end the following new
subclause:</text>
<quoted-block display-inline="no-display-inline" id="id9112B41CCE56489785971921408728E7" style="OLC">
<subclause commented="no" display-inline="no-display-inline" id="id159D327AD49C40D68509769A8DEE8017"><enum>(II)</enum><text display-inline="yes-display-inline">in the case of an offshore facility (as
defined in section 45(e)(12)), such facility is placed in service after 2008
and before
2016.</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id4C4FB8238CC54C36A01D5E3D012AFC64"><enum>(c)</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 property placed in service after the date of the
enactment of this Act.</text>
</subsection></section><enum>V</enum><header>Carbon capture
and sequestration</header>
<section id="idBE4A136051644AE88E8B4C32BC5517BB"><enum>501.</enum><header>Improved
availability of the credit for carbon dioxide sequestration</header>
<subsection id="id4B65050F3CCA4F67835B26F467B598CC"><enum>(a)</enum><header>Increase in
total credit available</header><text>Section 45Q(e) is amended by striking
<quote>75,000,000 metric tons</quote> and inserting <quote>100,000,000 metric
tons</quote>.</text>
</subsection><subsection id="idFD8655220EF04FB7A5E0F845CEDF0863"><enum>(b)</enum><header>Amount of
credit per project</header><text>Section 45Q(a) is amended by adding at the end
the following new flush sentence:</text>
<quoted-block display-inline="no-display-inline" id="id5E0690E2A8F44A5C9876754CF7F9A041" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="section">The amount
which is treated as a carbon dioxide sequestration credit for all taxable years
with respect to any qualified facility shall not exceed the amount designated
by the Secretary, in consultation with the Secretary of Energy, as eligible for
the credit under this section, but in no event shall such designated credit
result in more than 10,000,000 metric tons of qualified carbon dioxide being
taken into account under this
subsection.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idFAAF1C2A64A642F399F55BC1EEB4BC0F"><enum>(c)</enum><header>Increase in
credit amount for permanent sequestration</header><text>Section 45Q(a)(1) is
amended by striking <quote>$20</quote> and inserting <quote>$35</quote>.</text>
</subsection><subsection id="id1ACF4F4F38C9458F85889C9E97845D03"><enum>(d)</enum><header>Modification of
qualified facility eligibility</header><text>Section 45Q(c) is amended by
striking <quote>and</quote> at the end of paragraph (2), by striking the period
at the end of paragraph (3) and inserting <quote>, and</quote>, and by adding
at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="id212E228DF27443DD96CD301E55FDE70E" style="OLC">
<paragraph id="idFC4AD8EE65014B35BDEBD0717E0E4CCF"><enum>(4)</enum><text>with respect to
which such taxpayer shows contractual intent to inject and permanently
sequester the full amount of captured carbon
dioxide.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id61ED061812184C048F7EA56DAE287889"><enum>(e)</enum><header>Credit
allocation program</header><text>Section 45Q is amended by adding at the end
the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="id97E2BF3850CF4FF6872DCD74196E5A8B" style="OLC">
<subsection id="id1E888F7067174226B10453AA4E851A19"><enum>(f)</enum><header>Carbon dioxide
sequestration program</header>
<paragraph id="idB5D380B0CA48421C88CFFA330B1DD89F"><enum>(1)</enum><header>Establishment</header><text>Not
later than 180 days after the date of enactment of this section, the Secretary,
in consultation with the Secretary of Energy, shall establish a carbon dioxide
sequestration program to consider and award certifications for carbon dioxide
sequestration credits under this section to qualified facility sponsors.</text>
</paragraph><paragraph id="id81B035BC6E9C4D80B1093547AF7A8772"><enum>(2)</enum><header>Certification</header>
<subparagraph id="id2B9E6B1985D54F30B057AF149A79C385"><enum>(A)</enum><header>Application
period</header><text>Each applicant for certification under this paragraph
shall submit an application containing such information as the Secretary, in
consultation with the Secretary of Energy, may require during 1 or more
application periods. Each application period shall be announced at least 6
months in advance of the application due dates, along with the evaluation
criteria that will be used to assess applications.</text>
</subparagraph><subparagraph id="id6848679D6D2B42688B1E57D7D310E46F"><enum>(B)</enum><header>Scope and
review of applications</header><text>Applicants may apply to the Secretary for
an allocation of tax credits under this section for a period of 10 years based
on expected carbon dioxide injection rates once the sponsor of the qualified
facility has received air permits necessary to commence construction under the
Clean Air Act. The Secretary, in consultation with the Secretary of Energy,
shall notify each qualified applicant for such credits that the applicant has
met the requirements for an allocation of the anticipated metric tons of carbon
dioxide injected from the qualified facility within 180 days of receipt of an
application.</text>
</subparagraph><subparagraph id="id0D17119FCF7643F2B9164B123EC3858A"><enum>(C)</enum><header>Contents of
application</header><text>Each application shall include the following:</text>
<clause id="id3A3A1D7740654CD993A9805356ECDA57"><enum>(i)</enum><text>Identification of
facility, location, and ownership.</text>
</clause><clause id="idB55076B65FE242AD875EA29785362119"><enum>(ii)</enum><text>Status and
outlook for any State or Federal regulatory approvals required.</text>
</clause><clause id="idD18E6E88393144E5AE6A7260A2C78155"><enum>(iii)</enum><text>The total
amount of metric tons of carbon dioxide requested for a tax credit under this
section.</text>
</clause><clause id="idD7D5363B0DF4465F844D51908F0C0734"><enum>(iv)</enum><text>The total dollar
value of the requested tax credit under this section.</text>
</clause></subparagraph><subparagraph id="id9ED9010D462F42F896461DD9F38F321A"><enum>(D)</enum><header>Period of
issuance; reallocation</header><text>An applicant which receives a
certification shall have 18 months from the date of issuance of the
certification in order to commence construction of the qualified facility
within the meaning of the Clean Air Act. If such construction is not begun
within such time period, or if the sponsor fails as determined by the
Secretary, in consultation with the Secretary of Energy, to commence operation
within the meaning of the Clean Air Act or establish carbon dioxide injection
of at least 50 percent of the annualized pre-certified carbon dioxide injection
metric tons for such facility within 72 months of such issuance, the
certification shall no longer be valid and the credits shall be forfeited and
reallocated by the Secretary, in consultation with the Secretary of
Energy.</text>
</subparagraph></paragraph><paragraph id="id31EAFBF4077F4E8CA0517EFB81BAFFB9"><enum>(3)</enum><header>Selection
criteria</header>
<subparagraph id="idD00D25A6D46C4755A2BA0A48E63B5C5A"><enum>(A)</enum><header>In
general</header><text>In determining which facilities to certify under this
section, the Secretary, in consultation with the Secretary of Energy, shall
take into consideration—</text>
<clause id="id98D58860C32E4759BA71F1C054A32CA2"><enum>(i)</enum><text>which
facilities—</text>
<subclause id="id0CEC3EC5654D4D20867008B95EE98D52"><enum>(I)</enum><text>participate in a
public-private partnership,</text>
</subclause><subclause id="idE6029F002904422183BB88C14FFF3103"><enum>(II)</enum><text>achieve
commercial scale and a reasonable expectation of economic viability, and</text>
</subclause><subclause id="id2A1CABD222C94FD880CB782E5C52240F"><enum>(III)</enum><text>achieve the
highest percentage of carbon dioxide captured and sequestered from the
facility’s nameplate capacity, and</text>
</subclause></clause><clause id="id6B4CEBFBCD5D4DD99B31B3471072815D"><enum>(ii)</enum><text>to the extent
that it does not compromise facility quality or environmental benefits of the
total program, awarding credits to facilities in a variety of geographic
locations and geologic sequestration formations.</text>
</clause></subparagraph><subparagraph id="id527137C2F680423BBFA7E7E4B451F465"><enum>(B)</enum><header>Public-private
partnership</header><text>For purposes of subparagraph (A)(i)(I), the term
<term>public-private partnership</term> means a contract between a public
sector authority and a private party, in which the private party provides a
public service or facility and assumes substantial financial, technical, and
operational risk in the facility. The public sector authority may also bear
financial, technical, or operational risk in the form of grants, loans, or tax
incentives.</text>
</subparagraph></paragraph><paragraph id="id1D2F00A9918447028153BCAC6A4CEB7B"><enum>(4)</enum><header>Disclosure of
allocations</header><text>The Secretary shall, upon making a certification
under this subsection, publicly disclose the identity of the applicant, the
location of the relevant project, and the amount of the credit with respect to
such
applicant.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id1D3B75393C17485EBDF5B5B204C2AD0E"><enum>(f)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
allocations after the date of the enactment of this Act.</text>
</subsection></section><enum>VI</enum><header>Promotion of
clean domestic fuels</header>
<section display-inline="no-display-inline" id="H31D8293AC50A4A41BD689EF30DB55BE8" section-type="subsequent-section"><enum>601.</enum><header>Algae treated as a
qualified feedstock for purposes of the cellulosic biofuel producer credit,
etc</header>
<subsection id="HADD4FF9EB5D748FBB0333543830EC329"><enum>(a)</enum><header>In
general</header><text>Subclause (I) of section 40(b)(6)(E)(i) is amended to
read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H379CDC5C472747D1826283F92BA1E9C6" style="OLC">
<subclause id="HBE1CCFE544B34C60B3A7F3C2786E73FD"><enum>(I)</enum><text display-inline="yes-display-inline">is derived solely from qualified
feedstocks,
and</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HED641AA8F46945D3882F579C86BCE1C8"><enum>(b)</enum><header>Qualified
feedstock; special rules for algae</header><text>Paragraph (6) of section 40(b)
is amended by redesignating subparagraphs (F), (G), and (H) as subparagraphs
(H), (I), and (J), respectively, and by inserting after subparagraph (E) the
following new subparagraphs:</text>
<quoted-block display-inline="no-display-inline" id="HBCC4000BC0A24E35B1B2FF9DE401FC29" style="OLC">
<subparagraph id="HF45C34F1B37E438CB1ED85B6B98383A3"><enum>(F)</enum><header>Qualified
feedstock</header><text display-inline="yes-display-inline">For purposes of
this paragraph, the term <quote>qualified feedstock</quote> means—</text>
<clause id="H033B3F7B4FFA48C09B09529119B67136"><enum>(i)</enum><text>any
lignocellulosic or hemicellulosic matter that is available on a renewable or
recurring basis, and</text>
</clause><clause id="HAF5C6549B50242D8B4A17B30DED48632"><enum>(ii)</enum><text>any cultivated
algae, cyanobacteria, or lemna.</text>
</clause></subparagraph><subparagraph id="HDE9BB6784FE14DF39232E55778A07984"><enum>(G)</enum><header>Special rules
for algae</header><text>In the case of fuel which is derived from feedstock
described in subparagraph (F)(ii) and which is sold by the taxpayer to another
person for refining by such other person into a fuel which meets the
requirements of subparagraph (E)(i)(II)—</text>
<clause id="H22D60701AEBB4C24A05955B3D8539AB6"><enum>(i)</enum><text>such sale shall be
treated as described in subparagraph (C)(i),</text>
</clause><clause id="H2906446281D840599C7861DD165EC620"><enum>(ii)</enum><text>such fuel shall
be treated as meeting the requirements of subparagraph (E)(i)(II) in the hands
of such taxpayer, and</text>
</clause><clause id="HE11478B7608B4765A1A2FBBCBAF38CA4"><enum>(iii)</enum><text>except as
provided in this subparagraph, such fuel (and any fuel derived from such fuel)
shall not be taken into account under subparagraph (C) with respect to the
taxpayer or any other
person.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H129BBC6100A04FC6B62D6049BE5B0E1B"><enum>(c)</enum><header>Algae treated as
a qualified feedstock for purposes of bonus depreciation for biofuel plant
property</header>
<paragraph commented="no" id="HEA1D7E4DFFBF43E69FAA031D75FFCA12"><enum>(1)</enum><header>In
general</header><text>Subparagraph (A) of section 168(l)(2) is amended by
striking <quote>solely to produce cellulosic biofuel</quote> and inserting
<quote>solely to produce second generation biofuel (as defined in section
40(b)(6)(E))</quote>.</text>
</paragraph><paragraph id="HC6831654384341689BE45E77310316E7"><enum>(2)</enum><header>Conforming
amendments</header><text>Subsection (l) of section 168 is amended—</text>
<subparagraph id="HB21555166FD045F48E5735E0989AF26D"><enum>(A)</enum><text>by striking
<quote>cellulosic biofuel</quote> each place it appears in the text thereof and
inserting <quote>second generation biofuel</quote>,</text>
</subparagraph><subparagraph id="H837658E14A854120846C97C582B2DD8E"><enum>(B)</enum><text>by striking
paragraph (3) and redesignating paragraphs (4) through (8) as paragraphs (3)
through (7), respectively,</text>
</subparagraph><subparagraph id="HA41C5894A5804788882EEF50A183AF9A"><enum>(C)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="subsection" style="OLC">Cellulosic</header-in-text></quote> in the
heading of such subsection and inserting <quote><header-in-text level="subsection" style="OLC">Second Generation</header-in-text></quote>,
and</text>
</subparagraph><subparagraph id="HB68F1849EE5D4540AA50A2A7BE6C7165"><enum>(D)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="paragraph" style="OLC">cellulosic</header-in-text></quote> in the
heading of paragraph (2) and inserting <quote><header-in-text level="paragraph" style="OLC">second generation</header-in-text></quote>.</text>
</subparagraph></paragraph></subsection><subsection id="HACFF656926C4474F9A075061C05CF166"><enum>(d)</enum><header>Conforming
amendments</header>
<paragraph id="HE3D7163B3CD84D28AA9F8CDB8BB49222"><enum>(1)</enum><text>Section 40, as
amended by subsection (b), is amended—</text>
<subparagraph id="H4357B33300B44263854F9582ACD93EA9"><enum>(A)</enum><text>by striking
<quote>cellulosic biofuel</quote> each place it appears in the text thereof and
inserting <quote>second generation biofuel</quote>,</text>
</subparagraph><subparagraph id="HD93E9D391913453BAF0BA132CEB88DC2"><enum>(B)</enum><text>by striking
<quote><header-in-text level="paragraph" style="OLC">Cellulosic</header-in-text></quote> in the headings of subsections
(b)(6), (b)(6)(E), and (d)(3)(D) and inserting <quote><header-in-text level="paragraph" style="OLC">Second generation</header-in-text></quote>,
and</text>
</subparagraph><subparagraph id="HF4F5ECA96FA943C6A8D28143218FB13D"><enum>(C)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="paragraph" style="OLC">cellulosic</header-in-text></quote> in the
headings of subsections (b)(6)(C), (b)(6)(D), (b)(6)(H), (d)(6), and (e)(3) and
inserting <quote><header-in-text level="paragraph" style="OLC">second
generation</header-in-text></quote>.</text>
</subparagraph></paragraph><paragraph id="H85FE80F116AD48749C6CAB5537C43DDD"><enum>(2)</enum><text>Clause (ii) of
section 40(b)(6)(E) is amended by striking <quote>Such term shall not</quote>
and inserting <quote>The term <quote>second generation biofuel</quote> shall
not</quote>.</text>
</paragraph><paragraph id="H5C5E52FCB43947D1876986430545B414"><enum>(3)</enum><text>Paragraph (1) of
section 4101(a) is amended by striking <quote>cellulosic biofuel</quote> and
inserting <quote>second generation biofuel</quote>.</text>
</paragraph></subsection><subsection id="H307EF2D00A9C401690766956C30F0137"><enum>(e)</enum><header>Effective
date</header>
<paragraph id="H3EBD48074899494592373B84081B9BFB"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the amendments made
by this section shall apply to fuels sold or used after the date of the
enactment of this Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H950F75FDB9FF492A85AD5DB56E930A58"><enum>(2)</enum><header>Application to
bonus depreciation</header><text>The amendments made by subsection (c) shall
apply to property placed in service after the date of the enactment of this
Act.</text>
</paragraph></subsection></section>