<enum>I</enum><header>Committee on Finance</header><subtitle id="H8444456D7CD34662B6FF8895C76F41D4"><enum>A</enum><header>Deficit reduction</header><section id="H5F9A61EAAEEE426ABB4BC7074CA788EA"><enum>10001.</enum><header>Amendment of 1986 Code</header><text display-inline="no-display-inline">Except as otherwise expressly provided, whenever in this subtitle an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.</text></section><part id="HF9C0FC49838541389D3588DC0152E177"><enum>1<?LEXA-Enum 1?></enum><header>Corporate tax reform</header><section id="H1104E652E9C94FB3A867A19BDFD460DF"><enum>10101.</enum><header>Corporate alternative minimum tax</header><subsection id="H4A646D1291E440A88A1B1CFFE63C3C69"><enum>(a)</enum><header>Imposition of tax</header><paragraph id="HEC3D6432FB584892B837985D58097827"><enum>(1)</enum><header>In general</header><text>Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/55">section 55(b)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HFB484D8A3DDE4A4FB47412D447F96ACC" changed="added" reported-display-style="italic"><paragraph id="H01E6B1CCD3214C80B170815F99B8B71F"><enum>(2)</enum><header>Corporations</header><subparagraph id="HFB0D86E7BA6B46B7AF848E15B1D30C74"><enum>(A)</enum><header>Applicable corporations</header><text>In the case of an applicable corporation, the tentative minimum tax for the taxable year shall be the excess of—</text><clause id="H8C5F6BC50C024137B5E7F64918BE4939"><enum>(i)</enum><text>15 percent of the adjusted financial statement income for the taxable year (as determined under section 56A), over</text></clause><clause id="HAD0B85E16AE9435BAB54014889986354" commented="no"><enum>(ii)</enum><text>the corporate AMT foreign tax credit for the taxable year. </text></clause></subparagraph><subparagraph id="H428DA6A9E35F4781A692E66DE04FD1B4"><enum>(B)</enum><header>Other corporations</header><text>In the case of any corporation which is not an applicable corporation, the tentative minimum tax for the taxable year shall be zero.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H52948B6BA4CC432EB8F90EA09987128A"><enum>(2)</enum><header>Applicable corporation</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/59">Section 59</external-xref> is amended by adding at the end the following new subsection:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H9190EF27138B4084819C94A55E050D77" changed="added" reported-display-style="italic"><subsection id="H84E2E51B5DAA40F2BC1D4C1A8E79BE78"><enum>(k)</enum><header>Applicable corporation</header><text>For purposes of this part—</text><paragraph id="H4F51668EC7354D42B759714949626CC8"><enum>(1)</enum><header>Applicable corporation defined</header><subparagraph id="HCC7245A66BCD440DB8E47E873721B09F"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>applicable corporation</term> means, with respect to any taxable year, any corporation (other than an S corporation, a regulated investment company, or a real estate investment trust) which meets the average annual adjusted financial statement income test of subparagraph (B) for one or more taxable years which—</text><clause id="H5740A911A04B4790833945E504E4068E"><enum>(i)</enum><text>are prior to such taxable year, and</text></clause><clause id="HCCF3E03004334105B5EE2A230EEEA9D8"><enum>(ii)</enum><text>end after December 31, 2021.</text></clause></subparagraph><subparagraph id="H3F3AF6D1C3D145699E9A6CAEF4E1332B"><enum>(B)</enum><header>Average annual adjusted financial statement income test</header><text display-inline="yes-display-inline">For purposes of this subsection—</text><clause id="H84A17AFA3ECC42BBB94D03BC65CA363C"><enum>(i)</enum><text>a corporation meets the average annual adjusted financial statement income test for a taxable year if the average annual adjusted financial statement income of such corporation (determined without regard to section 56A(d)) for the 3-taxable-year period ending with such taxable year exceeds $1,000,000,000, and</text></clause><clause id="HDDAB0D262D3F4E5BA9C8C769D353AD15"><enum>(ii)</enum><text>in the case of a corporation described in paragraph (2), such corporation meets the average annual adjusted financial statement income test for a taxable year if—</text><subclause id="HCA018D6882874F6A9420DA824BDDA56C"><enum>(I)</enum><text>the corporation meets the requirements of clause (i) for such taxable year (determined after the application of paragraph (2)), and</text></subclause><subclause id="H7FACBB3CAE1D4654A429C16B9F1E7D21"><enum>(II)</enum><text>the average annual adjusted financial statement income of such corporation (determined without regard to the application of paragraph (2) and without regard to section 56A(d)) for the 3-taxable-year-period ending with such taxable year is $100,000,000 or more.</text></subclause></clause></subparagraph><subparagraph id="H27FFE4E95F53417FBFF29AF71CC34E10"><enum>(C)</enum><header>Exception</header><text>Notwithstanding subparagraph (A), the term <term>applicable corporation</term> shall not include any corporation which otherwise meets the requirements of subparagraph (A) if—</text><clause id="H5023BFF69CC245EAAF846EC70B50AB35"><enum>(i)</enum><text>such corporation—</text><subclause id="HC3197B5FC3084D4A8603EC0422939CE2"><enum>(I)</enum><text>has a change in ownership, or</text></subclause><subclause id="H55CEDB1F204F4A8E885A3DACC9BEE157"><enum>(II)</enum><text>has a specified number (to be determined by the Secretary and which shall, as appropriate, take into account the facts and circumstances of the taxpayer) of consecutive taxable years, including the most recent taxable year, in which the corporation does not meet the average annual adjusted financial statement income test of subparagraph (B), and</text></subclause></clause><clause id="H36C8126E2BB1466D8A01CB387AD0BC57"><enum>(ii)</enum><text>the Secretary determines that it would not be appropriate to continue to treat such corporation as an applicable corporation.</text></clause><continuation-text continuation-text-level="subparagraph">The preceding sentence shall not apply to any corporation if, after the Secretary makes the determination described in clause (ii), such corporation meets the average annual adjusted financial statement income test of subparagraph (B) for any taxable year beginning after the first taxable year for which such determination applies.</continuation-text></subparagraph><subparagraph id="HACA4CF96633241BAB0569DFF7C17B77D" commented="no"><enum>(D)</enum><header>Special rules for determining applicable corporation status</header><clause commented="no" id="id2F284F785FB64E96A716ED0B7E8E2D3B"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">Solely for purposes of determining whether a corporation is an applicable corporation under this paragraph, all adjusted financial statement income of persons treated as a single employer with such corporation under subsection (a) or (b) of section 52 (determined with the modifications described in clause (ii)) shall be treated as adjusted financial statement income of such corporation, and adjusted financial statement income of such corporation shall be determined without regard to paragraphs (2)(D)(i) and (11) of section 56A(c).</text></clause><clause commented="no" id="idCE542EBED243424D8691A499985534FC"><enum>(ii)</enum><header>Modifications</header><text>For purposes of this subparagraph—</text><subclause commented="no" id="id73509130C4CE4EEB9133F84E811DC139"><enum>(I)</enum><text>section 52(a) shall be applied by substituting <quote>component members</quote> for <quote>members</quote>, and</text></subclause><subclause commented="no" id="id334E4C046F2F4FADACDE71F05D039C34"><enum>(II)</enum><text>for purposes of applying section 52(b), the term <quote>trade or business</quote> shall include any activity treated as a trade or business under paragraph (5) or (6) of section 469(c) (determined without regard to the phrase <quote>To the extent provided in regulations</quote> in such paragraph (6)).</text></subclause></clause><clause id="H1B4B86105B2449879D7176A236160256"><enum>(iii)</enum><header>Component member</header><text>For purposes of this subparagraph, the term <quote>component member</quote> has the meaning given such term by section 1563(b), except that the determination shall be made without regard to section 1563(b)(2). </text></clause></subparagraph><subparagraph commented="no" id="H1CB2DCB262D74DF292B05563E74F2979"><enum>(E)</enum><header>Other special rules</header><clause commented="no" id="HBCC06503623B42E2BCE5A02CABF59527"><enum>(i)</enum><header>Corporations in existence for less than 3 years</header><text display-inline="yes-display-inline">If the corporation was in existence for less than 3-taxable years, subparagraph (B) shall be applied on the basis of the period during which such corporation was in existence.</text></clause><clause id="H571C515ACBB645DFA5E76D04B03ECFFF"><enum>(ii)</enum><header>Short taxable years</header><text>Adjusted financial statement income for any taxable year of less than 12 months shall be annualized by multiplying the adjusted financial statement income for the short period by 12 and dividing the result by the number of months in the short period. </text></clause><clause id="H4A7DB5A5F50F4406AE4BD75B9F4F13CC"><enum>(iii)</enum><header>Treatment of predecessors</header><text>Any reference in this subparagraph to a corporation shall include a reference to any predecessor of such corporation. </text></clause></subparagraph></paragraph><paragraph id="idb3c3e231fd4f4f718ee1d04d182dc0ff"><enum>(2)</enum><header>Special rule for foreign-parented multinational groups</header><subparagraph id="idd8949b280bb244988f26f5899025ffb0"><enum>(A)</enum><header>In general</header><text>If a corporation is a member of a foreign-parented multinational group for any taxable year, then, solely for purposes of determining whether such corporation meets the average annual adjusted financial statement income test under paragraph (1)(B)(ii)(I) for such taxable year, the adjusted financial statement income of such corporation for such taxable year shall include the adjusted financial statement income of all members of such group. Solely for purposes of this subparagraph, adjusted financial statement income shall be determined without regard to paragraphs (2)(D)(i), (3), (4), and (11) of section 56A(c). </text></subparagraph><subparagraph id="id141500F8ECBF450D8466784D629A6D99"><enum>(B)</enum><header>Foreign-parented multinational group</header><text>For purposes of subparagraph (A), the term <term>foreign-parented multinational group</term> means, with respect to any taxable year, two or more entities if—</text><clause id="id6054766636404d9287fb4e5a0b874bdd"><enum>(i)</enum><text>at least one entity is a domestic corporation and another entity is a foreign corporation,</text></clause><clause id="idbdef259aa5bb478494c7049722e330ae"><enum>(ii)</enum><text>such entities are included in the same applicable financial statement with respect to such year, and</text></clause><clause id="idafca419e192d4ed887b68b5f2de97135"><enum>(iii)</enum><text>either—</text><subclause id="id27E901211D634B70B0329779565277C1"><enum>(I)</enum><text>the common parent of such entities is a foreign corporation, or</text></subclause><subclause id="id6F698AA3EA55418CB6C71BE6862D5E48"><enum>(II)</enum><text>if there is no common parent, the entities are treated as having a common parent which is a foreign corporation under subparagraph (D).</text></subclause></clause></subparagraph><subparagraph id="id4B5B2A9FBDE2468FAF0EBE1FD2E372A7" commented="no" display-inline="no-display-inline"><enum>(C)</enum><header display-inline="yes-display-inline">Foreign corporations engaged in a trade or business within the United States</header><text display-inline="yes-display-inline">For purposes of this paragraph, if a foreign corporation is engaged in a trade or business within the United States, such trade or business shall be treated as a separate domestic corporation that is wholly owned by the foreign corporation. </text></subparagraph><subparagraph id="idDB5A42E796384021ADA6757C473DB43E"><enum>(D)</enum><header>Other rules</header><text>The Secretary shall, applying the principles of this section, prescribe rules for the application of this paragraph, including rules for the determination of—</text><clause id="id6f03201adb3241d2ab4cc65f690b8fc7"><enum>(i)</enum><text>the entities (if any) which are to be to be treated under subparagraph (B)(iii)(II) as having a common parent which is a foreign corporation, </text></clause><clause id="idd1d75827f59e4648b0840194a32c231a"><enum>(ii)</enum><text>the entities to be included in a foreign-parented multinational group, and</text></clause><clause id="id41130B0D8B9E4A0B94B6B32AB8254CBF"><enum>(iii)</enum><text>the common parent of a foreign-parented multinational group.</text></clause></subparagraph></paragraph><paragraph commented="no" id="H9BAB4CBE58D740F6841302EF84F71F9E"><enum>(3)</enum><header>Regulations or other guidance</header><text>The Secretary shall provide regulations or other guidance for the purposes of carrying out this subsection, including regulations or other guidance—</text><subparagraph commented="no" id="HAE60AD8645294C70A7BE4EFECA1C1035"><enum>(A)</enum><text>providing a simplified method for determining whether a corporation meets the requirements of paragraph (1), and</text></subparagraph><subparagraph commented="no" id="H2D29523E602447DA9843812232735D3D"><enum>'(B)</enum><text>addressing the application of this subsection to a corporation that experiences a change in ownership.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H77A609F211A64B01AC5383B6790073C2"><enum>(3)</enum><header>Reduction for base erosion and anti-abuse tax</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/55">Section 55(a)(2)</external-xref> is amended by inserting <quote>plus, in the case of an applicable corporation, the tax imposed by section 59A</quote> before the period at the end.</text></paragraph><paragraph id="H371852958F3E44A79BBAC2305DEB494E"><enum>(4)</enum><header>Conforming amendments</header><subparagraph id="H27E2A47BD14D41F48D013E141C210D4F"><enum>(A)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/55">Section 55(a)</external-xref> is amended by striking <quote>In the case of a taxpayer other than a corporation, there</quote> and inserting <quote>There</quote>.</text></subparagraph><subparagraph id="H8E9B2E1DA7754CC29206A21DF690D381"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="HD30073ACEBC74B7F995673D607082A32"><enum>(i)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/55">Section 55(b)(1)</external-xref> is amended—</text><subclause id="HC09EB27C0C6749A09FEEEB1B24E1B12D" indent="up1"><enum>(I)</enum><text display-inline="yes-display-inline">by striking so much as precedes subparagraph (A) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H391FFA587FB249698CA3933DFDC83064" changed="added" reported-display-style="italic"><paragraph id="H86F396ABE023477C80895E4178723564"><enum>(1)</enum><header>Noncorporate taxpayers</header><text>In the case of a taxpayer other than a corporation—</text></paragraph><after-quoted-block>, and</after-quoted-block></quoted-block></subclause><subclause id="H2B0CBD05361B42C98F82D7B618C7F0FC" indent="up1"><enum>(II)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HF464ABCC72CF4090BB8CD95EB6E7D249" changed="added" reported-display-style="italic"><subparagraph id="HE58DFC25EEB5481D80834B4D4D4977BF"><enum>(D)</enum><header>Alternative minimum taxable income</header><text>The term <term>alternative minimum taxable income</term> means the taxable income of the taxpayer for the taxable year—</text><clause id="HA0BADA80E99245BB8A62F0AC5E666DB1"><enum>(i)</enum><text>determined with the adjustments provided in section 56 and section 58, and</text></clause><clause id="H7020052968284AD4BD6986DADDF47127"><enum>(ii)</enum><text>increased by the amount of the items of tax preference described in section 57.</text></clause><continuation-text continuation-text-level="subparagraph">If a taxpayer is subject to the regular tax, such taxpayer shall be subject to the tax imposed by this section (and, if the regular tax is determined by reference to an amount other than taxable income, such amount shall be treated as the taxable income of such taxpayer for purposes of the preceding sentence).</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subclause></clause><clause id="HC728075A79BE431587AD4C3CFD461576" indent="up1"><enum>(ii)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/860E">Section 860E(a)(4)</external-xref> is amended by striking <quote>55(b)(2)</quote> and inserting <quote>55(b)(1)(D)</quote>.</text></clause><clause indent="up1" id="H75809CAA509542E1949D1D34198D279E"><enum>(iii)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/897">Section 897(a)(2)(A)(i)</external-xref> is amended by striking <quote>55(b)(2)</quote> and inserting <quote>55(b)(1)(D)</quote>.</text></clause></subparagraph><subparagraph commented="no" id="H4C22C7EF4BFD4CC1B71E1E78508FEC44"><enum>(C)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/11">Section 11(d)</external-xref> is amended by striking <quote>the tax imposed by subsection (a)</quote> and inserting <quote>the taxes imposed by subsection (a) and section 55</quote>.</text></subparagraph><subparagraph commented="no" id="HD4F072877D614757925ACF7B84266B81"><enum>(D)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/12">Section 12</external-xref> is amended by adding at the end the following new paragraph:</text><quoted-block display-inline="no-display-inline" id="H794B17CF2B4A4BDEA541342587481D29" style="OLC" changed="added" reported-display-style="italic"><paragraph id="H6AAC5F9634854D84AB31D61C3F4D1249"><enum>(5)</enum><text>For alternative minimum tax, see section 55.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph commented="no" id="H1D97F200627C4D4A863670B1A6977A97"><enum>(E)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/882">Section 882(a)(1)</external-xref> is amended by inserting <quote>, 55,</quote> after <quote>section 11</quote>.</text></subparagraph><subparagraph commented="no" id="H7BD7F52E5F634BD4A53E0494925B7ADE"><enum>(F)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/6425">Section 6425(c)(1)(A)</external-xref> is amended to read as follows:</text><quoted-block display-inline="no-display-inline" id="H394CC753E5D94F40BAC15E065C8C1639" style="OLC" changed="added" reported-display-style="italic"><subparagraph id="H671FBF0F04354E04B970B1EF87907F0C"><enum>(A)</enum><text>the sum of—</text><clause id="HD0977F377D664FF4A99382D415CF1CEB"><enum>(i)</enum><text>the tax imposed by section 11 or subchapter L of chapter 1, whichever is applicable, plus</text></clause><clause id="H0CB0DFF9AEA84C3FAB9785A397AA2274"><enum>(ii)</enum><text>the tax imposed by section 55, plus</text></clause><clause id="H710FA31723B54F1DBCFB69DA1CB83184"><enum>(iii)</enum><text>the tax imposed by section 59A, over</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph commented="no" id="H21E72702CE3549AEBAF6C90FAB9F6499"><enum>(G)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/6655">Section 6655(e)(2)</external-xref> is amended by inserting <quote>, adjusted financial statement income (as defined in section 56A),</quote> before <quote>and modified taxable income</quote> each place it appears in subparagraphs (A)(i) and (B)(i).</text></subparagraph><subparagraph commented="no" id="HAE2A0DCE8A894B50A22F8B8D257DA2A7"><enum>(H)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/6655">Section 6655(g)(1)(A)</external-xref> is amended by redesignating clauses (ii) and (iii) as clauses (iii) and (iv), respectively, and by inserting after clause (i) the following new clause:</text><quoted-block display-inline="no-display-inline" id="HFC108B106B3244718C6750F866C2B8C8" style="OLC" changed="added" reported-display-style="italic"><clause commented="no" id="HA55D1F845AC14FD59F70A568A1B362B2"><enum>(ii)</enum><text>the tax imposed by section 55,</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="H891076BFF2854F9CBFA0392076BC571F"><enum>(b)</enum><header>Adjusted financial statement income</header><paragraph id="HCF7C8E4065B34D8CBB9FE6FA68C28CD3"><enum>(1)</enum><header>In general</header><text>Part VI of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after section 56 the following new section:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H41EE66D2C11A4A3383A78149E75049C0" changed="added" reported-display-style="italic"><section id="HBBBCF0AB3F2543059B28134ECDAE85C5"><enum>56A.</enum><header>Adjusted financial statement income</header><subsection id="H014E6F15C5444C7F8838D4BD3F89A8F3"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this part, the term <term>adjusted financial statement income</term> means, with respect to any corporation for any taxable year, the net income or loss of the taxpayer set forth on the taxpayer’s applicable financial statement for such taxable year, adjusted as provided in this section. </text></subsection><subsection id="HB4CA63A37969482E9A047760A1D1BC5B"><enum>(b)</enum><header>Applicable financial statement</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>applicable financial statement</term> means, with respect to any taxable year, an applicable financial statement (as defined in section 451(b)(3) or as specified by the Secretary in regulations or other guidance) which covers such taxable year.</text></subsection><subsection id="H5AD8F151075F47559BABED60B42549ED" commented="no"><enum>(c)</enum><header>General adjustments</header><paragraph commented="no" id="HFE83CD824F0E4F8E86FBD4B909C5E612"><enum>(1)</enum><header>Statements covering different taxable years</header><text>Appropriate adjustments shall be made in adjusted financial statement income in any case in which an applicable financial statement covers a period other than the taxable year. </text></paragraph><paragraph id="HFBE84E6AF5D64AEFB19F7621D3073F60" commented="no"><enum>(2)</enum><header>Special rules for related entities</header><subparagraph commented="no" id="HBD66E5B6DB8C4EE3BD38B2E009B191F3"><enum>(A)</enum><header>Consolidated financial statements</header><text display-inline="yes-display-inline">If the financial results of a taxpayer are reported on the applicable financial statement for a group of entities, rules similar to the rules of section 451(b)(5) shall apply.</text></subparagraph><subparagraph id="HA8CD2C0A1A8A4B8BA8A8F13DE19BE5FF" commented="no"><enum>(B)</enum><header>Consolidated returns</header><text>Except as provided in regulations prescribed by the Secretary, if the taxpayer is part of an affiliated group of corporations filing a consolidated return for any taxable year, adjusted financial statement income for such group for such taxable year shall take into account items on the group’s applicable financial statement which are properly allocable to members of such group. </text></subparagraph><subparagraph id="idCB0728472F654C96A6D672B7B3DBE67A" commented="no"><enum>(C)</enum><header>Treatment of dividends and other amounts</header><text>In the case of any corporation which is not included on a consolidated return with the taxpayer, adjusted financial statement income of the taxpayer with respect to such other corporation shall be determined by only taking into account the dividends received from such other corporation (reduced to the extent provided by the Secretary in regulations or other guidance) and other amounts which are includible in gross income or deductible as a loss under this chapter (other than amounts required to be included under sections 951 and 951A or such other amounts as provided by the Secretary) with respect to such other corporation.</text></subparagraph><subparagraph id="HDCE4CAF36299423784C268083277C7FE"><enum>(D)</enum><header>Treatment of partnerships</header><clause id="idD02C236B4A93490492019DABF623F499"><enum>(i)</enum><header>In general</header><text>Except as provided by the Secretary, if the taxpayer is a partner in a partnership, adjusted financial statement income of the taxpayer with respect to such partnership shall be adjusted to only take into account the taxpayer’s distributive share of adjusted financial statement income of such partnership. </text></clause><clause id="id58DC2C1CB0884213A513A97EDEF3768B"><enum>(ii)</enum><header>Adjusted financial statement income of partnerships</header><text>For the purposes of this part, the adjusted financial statement income of a partnership shall be the partnership’s net income or loss set forth on such partnership’s applicable financial statement (adjusted under rules similar to the rules of this section).</text></clause></subparagraph></paragraph><paragraph id="H7E19424D86EF449A8369A3B3527CDA64" commented="no"><enum>(3)</enum><header>Adjustments to take into account certain items of foreign income</header><subparagraph id="H9E1FF31F2698434FBB950702CF983932" commented="no"><enum>(A)</enum><header>In general</header><text>If, for any taxable year, a taxpayer is a United States shareholder of one or more controlled foreign corporations, the adjusted financial statement income of such taxpayer with respect to such controlled foreign corporation (as determined under paragraph (2)(C)) shall be adjusted to also take into account such taxpayer’s pro rata share (determined under rules similar to the rules under section 951(a)(2)) of items taken into account in computing the net income or loss set forth on the applicable financial statement (as adjusted under rules similar to those that apply in determining adjusted financial statement income) of each such controlled foreign corporation with respect to which such taxpayer is a United States shareholder. </text></subparagraph><subparagraph id="HA9864950B93948788BECC26F3BA99768" commented="no"><enum>(B)</enum><header>Negative adjustments</header><text>In any case in which the adjustment determined under subparagraph (A) would result in a negative adjustment for such taxable year—</text><clause id="HAFC03B511E714925914C4F52FB7332D6" commented="no"><enum>(i)</enum><text>no adjustment shall be made under this paragraph for such taxable year, and</text></clause><clause id="H3B08915AE6494F2BA6B07B83D4478FD8" commented="no"><enum>(ii)</enum><text>the amount of the adjustment determined under this paragraph for the succeeding taxable year (determined without regard to this paragraph) shall be reduced by an amount equal to the negative adjustment for such taxable year. </text></clause></subparagraph></paragraph><paragraph id="HEC7D6D352A374BA69A0F9A015510D9D9"><enum>(4)</enum><header>Effectively connected income</header><text display-inline="yes-display-inline">In the case of a foreign corporation, to determine adjusted financial statement income, the principles of section 882 shall apply.</text></paragraph><paragraph id="HABA29634CEAE477DA4DE1604A2D6D46A" commented="no"><enum>(5)</enum><header>Adjustments for certain taxes</header><text display-inline="yes-display-inline">Adjusted financial statement income shall be appropriately adjusted to disregard any Federal income taxes, or income, war profits, or excess profits taxes (within the meaning of section 901) with respect to a foreign country or possession of the United States, which are taken into account on the taxpayer’s applicable financial statement. To the extent provided by the Secretary, the preceding sentence shall not apply to income, war profits, or excess profits taxes (within the meaning of section 901) that are imposed by a foreign country or possession of the United States and taken into account on the taxpayer’s applicable financial statement if the taxpayer does not choose to have the benefits of subpart A of part III of subchapter N for the taxable year. The Secretary shall prescribe such regulations or other guidance as may be necessary and appropriate to provide for the proper treatment of current and deferred taxes for purposes of this paragraph, including the time at which such taxes are properly taken into account. </text></paragraph><paragraph id="HC15DD7E2A8E34E549F2C126AEF1871E7" commented="no"><enum>(6)</enum><header>Adjustment with respect to disregarded entities</header><text>Adjusted financial statement income shall be adjusted to take into account any adjusted financial statement income of a disregarded entity owned by the taxpayer.</text></paragraph><paragraph id="HE6BBDB86C08A465D9C58134608CB9AD7"><enum>(7)</enum><header>Special rule for cooperatives</header><text>In the case of a cooperative to which section 1381 applies, the adjusted financial statement income (determined without regard to this paragraph) shall be reduced by the amounts referred to in section 1382(b) (relating to patronage dividends and per-unit retain allocations) to the extent such amounts were not otherwise taken into account in determining adjusted financial statement income.</text></paragraph><paragraph id="H722E8D8DC0434A8E8D58DA3E533423F9"><enum>(8)</enum><header>Rules for Alaska Native Corporations</header><text>Adjusted financial statement income shall be appropriately adjusted to allow—</text><subparagraph id="HF401A64FF3534815BA052C107AB33E30"><enum>(A)</enum><text>cost recovery and depletion attributable to property the basis of which is determined under section 21(c) of the Alaska Native Claims Settlement Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1620">43 U.S.C. 1620(c)</external-xref>), and</text></subparagraph><subparagraph id="H57100E03D0944BC2B91C9207FC2AB422"><enum>(B)</enum><text>deductions for amounts payable made pursuant to section 7(i) or section 7(j) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1606">43 U.S.C. 1606(i)</external-xref> and 1606(j)) only at such time as the deductions are allowed for tax purposes. </text></subparagraph></paragraph><paragraph id="id5F5BCDE29C494DF1A61E55CB293E5E0C" commented="no"><enum>(9)</enum><header>Amounts attributable to elections for direct payment of certain credits</header><text>Adjusted financial statement income shall be appropriately adjusted to disregard any amount treated as a payment against the tax imposed by subtitle A pursuant to an election under section 48D(d) or 6417, to the extent such amount was not otherwise taken into account under paragraph (5). </text></paragraph><paragraph id="H4D83C90742FE472DB76339EDF699F0D5" commented="no"><enum>(10)</enum><header>Consistent treatment of mortgage servicing income of taxpayer other than a regulated investment company</header><subparagraph id="H528EAD2364EC4FC3B78D820FAE06FB1F"><enum>(A)</enum><header>In general</header><text>Adjusted financial statement income shall be adjusted so as not to include any item of income in connection with a mortgage servicing contract any earlier than when such income is included in gross income under any other provision of this chapter. </text></subparagraph><subparagraph id="H48CE39E84AFA40DB82C2516314311CD4"><enum>(B)</enum><header>Rules for amounts not representing reasonable compensation</header><text>The Secretary shall provide regulations to prevent the avoidance of taxes imposed by this chapter with respect to amounts not representing reasonable compensation (as determined by the Secretary) with respect to a mortgage servicing contract.</text></subparagraph></paragraph><paragraph id="id7c600cd7bfef4fa5982afb80c36da3b1"><enum>(11)</enum><header>Adjustment with respect to defined benefit pensions</header><subparagraph id="id0A17E48562DD468ABA08BAD1B8B6F36F"><enum>(A)</enum><header>In general</header><text>Except as otherwise provided in rules prescribed by the Secretary in regulations or other guidance, adjusted financial statement income shall be—</text><clause id="ide5811f9784254576b25b4bfb7ed30155"><enum>(i)</enum><text>adjusted to disregard any amount of income, cost, or expense that would otherwise be included on the applicable financial statement in connection with any covered benefit plan,</text></clause><clause id="idf3e49261f59e412d962e2fb0acfae05b"><enum>(ii)</enum><text>increased by any amount of income in connection with any such covered benefit plan that is included in the gross income of the corporation under any other provision of this chapter, and</text></clause><clause id="idb0f4e54a96594450aa65b2201a43cd74"><enum>(iii)</enum><text>reduced by deductions allowed under any other provision of this chapter with respect to any such covered benefit plan. </text></clause></subparagraph><subparagraph id="id65c31901c1c84e36ac8a35bade59dba4" commented="no"><enum>(B)</enum><header>Covered benefit plan</header><text>For purposes of this paragraph, the term <term>covered benefit plan</term> means—</text><clause id="id8ac160c4c64e406385e41d3d397a924a" commented="no"><enum>(i)</enum><text>a defined benefit plan (other than a multiemployer plan described in section 414(f)) if the trust which is part of such plan is an employees’ trust described in section 401(a) which is exempt from tax under section 501(a), </text></clause><clause id="id272bb66acfa8413cbf33a2f2586de559" commented="no"><enum>(ii)</enum><text>any qualified foreign plan (as defined in section 404A(e)), or</text></clause><clause id="id9c772782b86f4766bb5a7d97232cae91" commented="no"><enum>(iii)</enum><text>any other defined benefit plan which provides post-employment benefits other than pension benefits.</text></clause></subparagraph></paragraph><paragraph id="id9E8A0F0388224E4C98A6CB5805FB7E3B" commented="no"><enum>(12)</enum><header>Tax-exempt entities</header><text>In the case of an organization subject to tax under section 511, adjusted financial statement income shall be appropriately adjusted to only take into account any adjusted financial statement income—</text><subparagraph id="idFFD0BBB4E317428BB1FE4D9BA40EECFA" commented="no"><enum>(A)</enum><text>of an unrelated trade or business (as defined in section 513) of such organization, or</text></subparagraph><subparagraph id="id56243433D9664D4D90D9A8201A837357" commented="no"><enum>(B)</enum><text>derived from debt-financed property (as defined in section 514) to the extent that income from such property is treated as unrelated business taxable income. </text></subparagraph></paragraph><paragraph id="id6b900b77c482481ba573344268f88517"><enum>(13)</enum><header>Depreciation</header><text>Adjusted financial statement income shall be—</text><subparagraph id="id5b391678cf9c48eeaa7393ff673839b8"><enum>(A)</enum><text>reduced by depreciation deductions allowed under section 167 with respect to property to which section 168 applies to the extent of the amount allowed as deductions in computing taxable income for the taxable year, and</text></subparagraph><subparagraph id="id645F1786B9A94E9E976BD19A1CBF39F2"><enum>(B)</enum><text>appropriately adjusted—</text><clause id="id8C469184E5A948BC8081799413E88E5E"><enum>(i)</enum><text>to disregard any amount of depreciation expense that is taken into account on the taxpayer's applicable financial statement with respect to such property, and </text></clause><clause id="id58f14caa957a42a4be610befee188c06"><enum>(ii)</enum><text>to take into account any other item specified by the Secretary in order to provide that such property is accounted for in the same manner as it is accounted for under this chapter. </text></clause></subparagraph></paragraph><paragraph id="idD92A04D7A9554883963E800666171A82"><enum>(14)</enum><header>Qualified wireless spectrum</header><subparagraph id="idA664C492914449B1A8417ACEC0FD4405"><enum>(A)</enum><header>In general</header><text>Adjusted financial statement income shall be—</text><clause id="idF5F906EBB6ED4CBB8E628B481F65CFEF"><enum>(i)</enum><text>reduced by amortization deductions allowed under section 197 with respect to qualified wireless spectrum to the extent of the amount allowed as deductions in computing taxable income for the taxable year, and</text></clause><clause id="idA527C118657749C8ACE6EED26615B2D9"><enum>(ii)</enum><text>appropriately adjusted—</text><subclause id="idC4E042BC6AC0438A94DFD1865139A8F2"><enum>(I)</enum><text>to disregard any amount of amortization expense that is taken into account on the taxpayer's applicable financial statement with respect to such qualified wireless spectrum, and </text></subclause><subclause id="id0CCAFED3797C404EA3E44FFD49EFAC12"><enum>(II)</enum><text>to take into account any other item specified by the Secretary in order to provide that such qualified wireless spectrum is accounted for in the same manner as it is accounted for under this chapter. </text></subclause></clause></subparagraph><subparagraph id="id92A8DCA33518460CBD512BBE954820EB"><enum>(B)</enum><header>Qualified wireless spectrum</header><text>For purposes of this paragraph, the term <term>qualified wireless spectrum</term> means wireless spectrum which—</text><clause id="id9ECC6A039F654455954A1143D4ED1329"><enum>(i)</enum><text>is used in the trade or business of a wireless telecommunications carrier, and</text></clause><clause id="id54956A844AD94E6FB934E79B3A088B68"><enum>(ii)</enum><text>was acquired after December 31, 2007, and before the date of enactment of this section. </text></clause></subparagraph></paragraph><paragraph id="H564AFE74884B4F9F8C685E78D7B69E82"><enum>(15)</enum><header>Secretarial authority to adjust items</header><text>The Secretary shall issue regulations or other guidance to provide for such adjustments to adjusted financial statement income as the Secretary determines necessary to carry out the purposes of this section, including adjustments—</text><subparagraph id="H840B32A536C949F7AEC2B4F87A716A01"><enum>(A)</enum><text>to prevent the omission or duplication of any item, and</text></subparagraph><subparagraph id="H2100B3B402C848478AD440DD2C6DA639" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">to carry out the principles of part II of subchapter C of this chapter (relating to corporate liquidations), part III of subchapter C of this chapter (relating to corporate organizations and reorganizations), and part II of subchapter K of this chapter (relating to partnership contributions and distributions).</text></subparagraph></paragraph></subsection><subsection id="H365F7EE188E64F3A892B31BB771A8DF2"><enum>(d)</enum><header>Deduction for financial statement net operating loss</header><paragraph id="H638A1BA1E271495F8074AFAFB4D0EA74"><enum>(1)</enum><header>In general</header><text>Adjusted financial statement income (determined after application of subsection (c) and without regard to this subsection) shall be reduced by an amount equal to the lesser of—</text><subparagraph id="H51255B0B3E804329B565747E0CEF284E"><enum>(A)</enum><text>the aggregate amount of financial statement net operating loss carryovers to the taxable year, or</text></subparagraph><subparagraph id="HD8D9527F12304657A3954F1936DE4727"><enum>(B)</enum><text>80 percent of adjusted financial statement income computed without regard to the deduction allowable under this subsection.</text></subparagraph></paragraph><paragraph id="H2E37307F765E4E638C27736936DF4D1B"><enum>(2)</enum><header>Financial statement net operating loss carryover</header><text>A financial statement net operating loss for any taxable year shall be a financial statement net operating loss carryover to each taxable year following the taxable year of the loss. The portion of such loss which shall be carried to subsequent taxable years shall be the amount of such loss remaining (if any) after the application of paragraph (1).</text></paragraph><paragraph id="H421AEDFE4DD840D3BDF95E4AD233D717"><enum>(3)</enum><header>Financial statement net operating loss defined</header><text>For purposes of this subsection, the term <term>financial statement net operating loss</term> means the amount of the net loss (if any) set forth on the corporation’s applicable financial statement (determined after application of subsection (c) and without regard to this subsection) for taxable years ending after December 31, 2019. </text></paragraph></subsection><subsection id="HAE77239E513446D9BA14E1AEC7D32A58"><enum>(e)</enum><header>Regulations and other guidance</header><text>The Secretary shall provide for such regulations and other guidance as necessary to carry out the purposes of this section, including regulations and other guidance relating to the effect of the rules of this section on partnerships with income taken into account by an applicable corporation.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H02501CF5585944E49DDBD8C1BAD9AA76"><enum>(2)</enum><header>Clerical amendment</header><text>The table of sections for part VI of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after the item relating to section 56 the following new item:</text><quoted-block style="OLC" id="H0FAC89CAF2D445A4A185AA1B7A7C0E02" changed="added" reported-display-style="italic"><toc changed="added" reported-display-style="italic"><toc-entry level="section" idref="HBBBCF0AB3F2543059B28134ECDAE85C5">Sec. 56A. Adjusted financial statement income.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H366B98ECE3914072B5103FE198344917"><enum>(c)</enum><header>Corporate AMT foreign tax credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/59">Section 59</external-xref>, as amended by this section, is amended by adding at the end the following new subsection:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H52AD05747CC74AF1BEB30E248FADCA92" changed="added" reported-display-style="italic"><subsection id="H17EFA4294B5D4E7CA0D590ECFE1FF1C1"><enum>(l)</enum><header>Corporate AMT foreign tax credit</header><paragraph id="HD400451BD74D4D21BFF006D7F2BEA725"><enum>(1)</enum><header>In general</header><text>For purposes of this part, if an applicable corporation chooses to have the benefits of subpart A of part III of subchapter N for any taxable year, the corporate AMT foreign tax credit for the taxable year of the applicable corporation is an amount equal to sum of—</text><subparagraph id="H9A590589AA7F49BE95AB07930CE4BE91"><enum>(A)</enum><text>the lesser of—</text><clause id="HDEBD5C1E1AFA4487B509396EAC284539"><enum>(i)</enum><text>the aggregate of the applicable corporation’s pro rata share (as determined under section 56A(c)(3)) of the amount of income, war profits, and excess profits taxes (within the meaning of section 901) imposed by any foreign country or possession of the United States which are—</text><subclause id="HFCD78A31DFC8411FA3E60F76CB14F8DD"><enum>(I)</enum><text display-inline="yes-display-inline">taken into account on the applicable financial statement of each controlled foreign corporation with respect to which the applicable corporation is a United States shareholder, and</text></subclause><subclause id="H8C19F2437846450A904ACD6771B72DB0"><enum>(II)</enum><text>paid or accrued (for Federal income tax purposes) by each such controlled foreign corporation, or</text></subclause></clause><clause id="H8895D769AE274B9BB42A08681FC050B9"><enum>(ii)</enum><text>the product of the amount of the adjustment under section 56A(c)(3) and the percentage specified in section 55(b)(2)(A)(i), and</text></clause></subparagraph><subparagraph id="HFA666C7B8FF04F34A8D669E49C3C3772"><enum>(B)</enum><text>in the case of an applicable corporation that is a domestic corporation, the amount of income, war profits, and excess profits taxes (within the meaning of section 901) imposed by any foreign country or possession of the United States to the extent such taxes are— </text><clause id="H26F137DC63144176B07A519ECF9105B3"><enum>(i)</enum><text>taken into account on the applicable corporation’s applicable financial statement, and</text></clause><clause id="H7FFA578B0E61479B818A1B24F479E79B"><enum>(ii)</enum><text>paid or accrued (for Federal income tax purposes) by the applicable corporation.</text></clause></subparagraph></paragraph><paragraph id="H7C3546832A7940219F82407884740652"><enum>(2)</enum><header>Carryover of excess tax paid</header><text>For any taxable year for which an applicable corporation chooses to have the benefits of subpart A of part III of subchapter N, the excess of the amount described in paragraph (1)(A)(i) over the amount described in paragraph (1)(A)(ii) shall increase the amount described in paragraph (1)(A)(i) in any of the first 5 succeeding taxable years to the extent not taken into account in a prior taxable year.</text></paragraph><paragraph id="HCFAE3F5EBD004BEAB6674ED76FAEBF1B"><enum>(3)</enum><header>Regulations or other guidance</header><text>The Secretary shall provide for such regulations or other guidance as is necessary to carry out the purposes of this subsection.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H535A791C120946458A7936723B3F96AC"><enum>(d)</enum><header>Treatment of general business credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/38">Section 38(c)(6)(E)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H18EF19CAF6414660885A8FC1ADB1B8D7" changed="added" reported-display-style="italic"><subparagraph id="HD76A0B92FD8F4437A26E946132A93507"><enum>(E)</enum><header>Corporations</header><text>In the case of a corporation—</text><clause id="H01DE05A056AE4AAD9A6FD06AC41600D2"><enum>(i)</enum><text>the first sentence of paragraph (1) shall be applied by substituting <quote>25 percent of the taxpayer's net income tax as exceeds $25,000</quote> for <quote>the greater of</quote> and all that follows,</text></clause><clause id="HC9F8A54A9AE14F10A9E7E8CC0EB1159B"><enum>(ii)</enum><text>paragraph (2)(A) shall be applied without regard to clause (ii)(I) thereof, and</text></clause><clause id="HCABB8C9371CE43C1A8024327F4C64F2F"><enum>(iii)</enum><text>paragraph (4)(A) shall be applied without regard to clause (ii)(I) thereof.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="HDB346F4C44FF4401BEB73CC0C0E3AD48"><enum>(e)</enum><header>Credit for prior year minimum tax liability</header><paragraph commented="no" id="H050AC6AA11374E19B8D0DA69B25504A7"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/53">Section 53(e)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HC1F339BD7BD14E9CB8DE2C1BB49F630C" changed="added" reported-display-style="italic"><subsection commented="no" id="H5A66CD01C1B94B579659A5E192D5B6C9"><enum>(e)</enum><header>Application to applicable corporations</header><text>In the case of a corporation—</text><paragraph commented="no" id="H17FC8E3758F24CDDB3EDC1DB36CA2840"><enum>(1)</enum><text>subsection (b)(1) shall be applied by substituting <quote>the net minimum tax for all prior taxable years beginning after 2022</quote> for <quote>the adjusted net minimum tax imposed for all prior taxable years beginning after 1986</quote>, and</text></paragraph><paragraph commented="no" id="H2E1F24122AA847BBA213FCB4F71B3CB1"><enum>(2)</enum><text>the amount determined under subsection (c)(1) shall be increased by the amount of tax imposed under section 59A for the taxable year.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph commented="no" id="HDB3A82D729A54FDF92D8F55CAF5257BA"><enum>(2)</enum><header>Conforming amendments</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/53">Section 53(d)</external-xref> is amended—</text><subparagraph commented="no" id="HA6FEF73B6FB44EF0BA6644DB02C3947B"><enum>(A)</enum><text>in paragraph (2), by striking <quote>, except that in the case</quote> and all that follows through <quote>treated as zero</quote>, and</text></subparagraph><subparagraph commented="no" id="H2ED2E625F80B47C6BA89A41BF8BB625C"><enum>(B)</enum><text>by striking paragraph (3).</text></subparagraph></paragraph></subsection><subsection id="HB7610734AE5F46C7B9457A645D332B89" commented="no" display-inline="no-display-inline"><enum>(f)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2022.</text></subsection></section></part><part id="HF145E307AB994E22AE533F4843E14A46"><enum>2<?LEXA-Enum 2?></enum><header>Excise tax on repurchase of corporate stock</header><section id="H518226433FA14FD194F51FD46D4AA28C"><enum>10201.</enum><header>Excise tax on repurchase of corporate stock</header><subsection id="H6D45C6BB5706495F90695239942DE13C"><enum>(a)</enum><header>In general</header><text>Subtitle D is amended by inserting after chapter 36 the following new chapter:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H6D88AABE60D1478FA00641F636D312E2" changed="added" reported-display-style="italic"><chapter id="H39259B8B5FF4483FB2519001589033F7" style="OLC"><enum>37</enum><header>Repurchase of corporate stock</header><toc><toc-entry level="section" idref="H9B1188D45BA84F108B970E3E624BB95A">Sec. 4501. Repurchase of corporate stock. </toc-entry></toc><section id="H9B1188D45BA84F108B970E3E624BB95A" section-type="subsequent-section"><enum>4501.</enum><header>Repurchase of corporate stock</header><subsection id="HBDF4E7AFEC924CB2A9CD3A9562BEA954"><enum>(a)</enum><header>General rule</header><text>There is hereby imposed on each covered corporation a tax equal to 1 percent of the fair market value of any stock of the corporation which is repurchased by such corporation during the taxable year.</text></subsection><subsection id="H329A51D4810F464E80990C8E9185F71E"><enum>(b)</enum><header>Covered corporation</header><text>For purposes of this section, the term <term>covered corporation</term> means any domestic corporation the stock of which is traded on an established securities market (within the meaning of section 7704(b)(1)).</text></subsection><subsection id="HC074737F222444818425BEBB9306E038" commented="no"><enum>(c)</enum><header>Repurchase</header><text>For purposes of this section—</text><paragraph commented="no" id="HE01725FC71F14DAD983197A256E0559F"><enum>(1)</enum><header>In general</header><text>The term <term>repurchase</term> means—</text><subparagraph commented="no" id="HDE286044204045308519FDE06D7B8AF4"><enum>(A)</enum><text>a redemption within the meaning of section 317(b) with regard to the stock of a covered corporation, and</text></subparagraph><subparagraph commented="no" id="H3E2EFE2B363745A6B0EFF124A965760F"><enum>(B)</enum><text>any transaction determined by the Secretary to be economically similar to a transaction described in subparagraph (A).</text></subparagraph></paragraph><paragraph id="H2BECD27BFF1C46FDB0F3095F24673F32" commented="no"><enum>(2)</enum><header>Treatment of purchases by specified affiliates</header><subparagraph id="HCEA3EAAF2AB249719FE55B4F2946195D" commented="no"><enum>(A)</enum><header>In general</header><text>The acquisition of stock of a covered corporation by a specified affiliate of such covered corporation, from a person who is not the covered corporation or a specified affiliate of such covered corporation, shall be treated as a repurchase of the stock of the covered corporation by such covered corporation.</text></subparagraph><subparagraph id="HAC96BCAB0DF74FDFB49B0FF47BB523F7" commented="no"><enum>(B)</enum><header>Specified affiliate</header><text>For purposes of this section, the term <term>specified affiliate</term> means, with respect to any corporation—</text><clause commented="no" id="H81CAAAE1806943799EAAA47FAA662261"><enum>(i)</enum><text>any corporation more than 50 percent of the stock of which is owned (by vote or by value), directly or indirectly, by such corporation, and</text></clause><clause commented="no" id="H8E914FF9F9AA4DF88AFAAC73FC71D8A2"><enum>(ii)</enum><text>any partnership more than 50 percent of the capital interests or profits interests of which is held, directly or indirectly, by such corporation.</text></clause></subparagraph></paragraph><paragraph commented="no" id="H0285111CD9814CC08750FBC9D4561E96"><enum>(3)</enum><header>Adjustment</header><text>The amount taken into account under subsection (a) with respect to any stock repurchased by a covered corporation shall be reduced by the fair market value of any stock issued by the covered corporation during the taxable year, including the fair market value of any stock issued or provided to employees of such covered corporation or employees of a specified affiliate of such covered corporation during the taxable year, whether or not such stock is issued or provided in response to the exercise of an option to purchase such stock. </text></paragraph></subsection><subsection commented="no" id="HEE23DD944E2B4C599B788E0653838D37"><enum>(d)</enum><header>Special rules for acquisition of stock of certain foreign corporations</header><paragraph commented="no" id="H7FF9D3CF971943B39CF8979090B330DB"><enum>(1)</enum><header>In general</header><text>In the case of an acquisition of stock of an applicable foreign corporation by a specified affiliate of such corporation (other than a foreign corporation or a foreign partnership (unless such partnership has a domestic entity as a direct or indirect partner)) from a person who is not the applicable foreign corporation or a specified affiliate of such applicable foreign corporation, for purposes of this section—</text><subparagraph commented="no" id="HD97944AE0D6E491B84E06D668541524B"><enum>(A)</enum><text>such specified affiliate shall be treated as a covered corporation with respect to such acquisition,</text></subparagraph><subparagraph commented="no" id="HEBFA58D709C44C19B19BF72E0B597FF6"><enum>(B)</enum><text>such acquisition shall be treated as a repurchase of stock of a covered corporation by such covered corporation, and</text></subparagraph><subparagraph commented="no" id="HD88058442DEE41D7A0FB6EA6E4D0997A"><enum>(C)</enum><text>the adjustment under subsection (c)(3) shall be determined only with respect to stock issued or provided by such specified affiliate to employees of the specified affiliate.</text></subparagraph></paragraph><paragraph commented="no" id="H2603E8CAE6834236B104721A8FD4605D"><enum>(2)</enum><header>Surrogate foreign corporations</header><text>In the case of a repurchase of stock of a covered surrogate foreign corporation by such covered surrogate foreign corporation, or an acquisition of stock of a covered surrogate foreign corporation by a specified affiliate of such corporation, for purposes of this section—</text><subparagraph commented="no" id="HB04F528C8D194868B0CBE32F4AD5A42F"><enum>(A)</enum><text>the expatriated entity with respect to such covered surrogate foreign corporation shall be treated as a covered corporation with respect to such repurchase or acquisition,</text></subparagraph><subparagraph commented="no" id="H38FE42B86FD54EBD8A3A52938C218DB3"><enum>(B)</enum><text>such repurchase or acquisition shall be treated as a repurchase of stock of a covered corporation by such covered corporation, and</text></subparagraph><subparagraph commented="no" id="H253F3D92A9364A759EE9C28D69AAFBAF"><enum>(C)</enum><text>the adjustment under subsection (c)(3) shall be determined only with respect to stock issued or provided by such expatriated entity to employees of the expatriated entity.</text></subparagraph></paragraph><paragraph commented="no" id="HEA0B43E047D84899BB8636436A7D3186"><enum>(3)</enum><header>Definitions</header><text>For purposes of this subsection—</text><subparagraph commented="no" id="HB2D8D67F27484ECC97F24787EFC860E5"><enum>(A)</enum><header>Applicable foreign corporation</header><text>The term <term>applicable foreign corporation</term> means any foreign corporation the stock of which is traded on an established securities market (within the meaning of section 7704(b)(1)). </text></subparagraph><subparagraph id="H1681E45FF7DA4A7492D036C3F51EF1E3"><enum>(B)</enum><header>Covered surrogate foreign corporation</header><text>The term <term>covered surrogate foreign corporation</term> means any surrogate foreign corporation (as determined under section 7874(a)(2)(B) by substituting <quote>September 20, 2021</quote> for <quote>March 4, 2003</quote> each place it appears) the stock of which is traded on an established securities market (within the meaning of section 7704(b)(1)), but only with respect to taxable years which include any portion of the applicable period with respect to such corporation under section 7874(d)(1).</text></subparagraph><subparagraph id="H2E8E12F1C2524919826251741D93FA1A"><enum>(C)</enum><header>Expatriated entity</header><text>The term <term>expatriated entity</term> has the meaning given such term by section 7874(a)(2)(A). </text></subparagraph></paragraph></subsection><subsection id="HABA00BAC105C4EC8BA26A276B90E5119"><enum>(e)</enum><header>Exceptions</header><text>Subsection (a) shall not apply—</text><paragraph id="H57AD572F4FEC40528FFF435A08EED372"><enum>(1)</enum><text>to the extent that the repurchase is part of a reorganization (within the meaning of section 368(a)) and no gain or loss is recognized on such repurchase by the shareholder under chapter 1 by reason of such reorganization,</text></paragraph><paragraph id="H11B15640A9694DF78E2B46843BA07AB9"><enum>(2)</enum><text>in any case in which the stock repurchased is, or an amount of stock equal to the value of the stock repurchased is, contributed to an employer-sponsored retirement plan, employee stock ownership plan, or similar plan,</text></paragraph><paragraph id="HB80C364B2DB84822B7ECC85B2CAE05A8"><enum>(3)</enum><text>in any case in which the total value of the stock repurchased during the taxable year does not exceed $1,000,000, </text></paragraph><paragraph id="H3501C7E1E1E44F6AA291362B44EE1961"><enum>(4)</enum><text>under regulations prescribed by the Secretary, in cases in which the repurchase is by a dealer in securities in the ordinary course of business,</text></paragraph><paragraph id="H720AB1CF1B184E6389BEDB8DE94A551D"><enum>(5)</enum><text>to repurchases by a regulated investment company (as defined in section 851) or a real estate investment trust, or</text></paragraph><paragraph id="H64FE4C562D154900BE74B1BE284A3EA2"><enum>(6)</enum><text>to the extent that the repurchase is treated as a dividend for purposes of this title. </text></paragraph></subsection><subsection id="H86085F06320B4342BA08A1C0142F5F0C"><enum>(f)</enum><header>Regulations and guidance</header><text>The Secretary shall prescribe such regulations and other guidance as are necessary or appropriate to carry out, and to prevent the avoidance of, the purposes of this section, including regulations and other guidance—</text><paragraph id="HA5E51C3F64D6417AB172D8DE802C00C1"><enum>(1)</enum><text>to prevent the abuse of the exceptions provided by subsection (e),</text></paragraph><paragraph id="HB154A0AAFB4946B3A2CDF6369A56BDED"><enum>(2)</enum><text>to address special classes of stock and preferred stock, and</text></paragraph><paragraph id="H5E3CA972602C4D62BE3C7710936C1C5F"><enum>(3)</enum><text>for the application of the rules under subsection (d).</text></paragraph></subsection></section></chapter><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H93F7131E0B0846FC9EDCD3720B821907"><enum>(b)</enum><header>Tax not deductible</header><text>Paragraph (6) of <external-xref legal-doc="usc" parsable-cite="usc/26/275">section 275(a)</external-xref> is amended by inserting <quote>37,</quote> before <quote>41</quote>.</text></subsection><subsection id="H8CFC0EFA359F4BE993966A784F8E1E45"><enum>(c)</enum><header>Clerical amendment</header><text>The table of chapters for subtitle D is amended by inserting after the item relating to chapter 36 the following new item:</text><quoted-block style="OLC" id="HE05AD13709674D7EBC84DAA6CA863D5A" changed="added" reported-display-style="italic"><toc changed="added" reported-display-style="italic"><toc-entry level="chapter" idref="H39259B8B5FF4483FB2519001589033F7">Chapter 37—Repurchase of corporate stock</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H4DB6DDB364D9463CA6E59213147A921F"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to repurchases (within the meaning of <external-xref legal-doc="usc" parsable-cite="usc/26/4501">section 4501(c)</external-xref> of the Internal Revenue Code of 1986, as added by this section) of stock after December 31, 2022.</text></subsection></section></part><part id="HB2A140B14D214D3FBF49FD870784B7CD"><enum>3<?LEXA-Enum 4?></enum><header>Funding the Internal Revenue Service and Improving Taxpayer Compliance</header><section id="H4318BCC93AC34B6E9F7E5BAFDBB6FFD7"><enum>10301.</enum><header>Enhancement of Internal Revenue Service resources</header><subsection id="H2F9F223187F34B4FB0093D1F6F3BABA6"><enum/><header>In general</header><text>The following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 2022: </text><paragraph id="H74254327C0E548C0895D7EAD63D93099"><enum>(1)</enum><header>Internal Revenue Service</header><subparagraph id="H7E97503ABBC645FB885FEF1D0B969DDC"><enum>(A)</enum><header>In general</header><clause id="HF51108BAA2004390A81CB1495D9D7C09"><enum>(i)</enum><header>Taxpayer services</header><text display-inline="yes-display-inline">For necessary expenses of the Internal Revenue Service to provide taxpayer services, including pre-filing assistance and education, filing and account services, taxpayer advocacy services, and other services as authorized by <external-xref legal-doc="usc" parsable-cite="usc/5/3109">5 U.S.C. 3109</external-xref>, at such rates as may be determined by the Commissioner, $3,181,500,000, to remain available until September 30, 2031: <italic>Provided,</italic> That these amounts shall be in addition to amounts otherwise available for such purposes.</text></clause><clause id="HB015A63E04FD4E599C56DEF5C1DFA97B"><enum>(ii)</enum><header>Enforcement</header><text display-inline="yes-display-inline">For necessary expenses for tax enforcement activities of the Internal Revenue Service to determine and collect owed taxes, to provide legal and litigation support, to conduct criminal investigations (including investigative technology), to provide digital asset monitoring and compliance activities, to enforce criminal statutes related to violations of internal revenue laws and other financial crimes, to purchase and hire passenger motor vehicles (<external-xref legal-doc="usc" parsable-cite="usc/31/1343">31 U.S.C. 1343(b)</external-xref>), and to provide other services as authorized by <external-xref legal-doc="usc" parsable-cite="usc/5/3109">5 U.S.C. 3109</external-xref>, at such rates as may be determined by the Commissioner, $45,637,400,000, to remain available until September 30, 2031: <italic>Provided,</italic> That these amounts shall be in addition to amounts otherwise available for such purposes. </text></clause><clause id="H1373BE3B9BE34027929CA5E78CA84F65"><enum>(iii)</enum><header>Operations support</header><text display-inline="yes-display-inline">For necessary expenses of the Internal Revenue Service to support taxpayer services and enforcement programs, including rent payments; facilities services; printing; postage; physical security; headquarters and other IRS-wide administration activities; research and statistics of income; telecommunications; information technology development, enhancement, operations, maintenance, and security; the hire of passenger motor vehicles (<external-xref legal-doc="usc" parsable-cite="usc/31/1343">31 U.S.C. 1343(b)</external-xref>); the operations of the Internal Revenue Service Oversight Board; and other services as authorized by <external-xref legal-doc="usc" parsable-cite="usc/5/3109">5 U.S.C. 3109</external-xref>, at such rates as may be determined by the Commissioner, $25,326,400,000, to remain available until September 30, 2031: <italic>Provided,</italic> That these amounts shall be in addition to amounts otherwise available for such purposes.</text></clause><clause id="H433C1404D7304305A874AC77495415DC"><enum>(iv)</enum><header>Business systems modernization</header><text display-inline="yes-display-inline">For necessary expenses of the Internal Revenue Service's business systems modernization program, including development of callback technology and other technology to provide a more personalized customer service but not including the operation and maintenance of legacy systems, $4,750,700,000, to remain available until September 30, 2031: <italic>Provided,</italic> That these amounts shall be in addition to amounts otherwise available for such purposes. </text></clause></subparagraph><subparagraph id="H0CD9B4D5193348D2B46E4891BB0EADCE" commented="no"><enum>(B)</enum><header>Task Force to design an IRS-run free <quote>Direct eFile</quote> tax return system</header><text display-inline="yes-display-inline">For necessary expenses of the Internal Revenue Service to deliver to Congress, within nine months following the date of the enactment of this Act, a report on (I) the cost (including options for differential coverage based on taxpayer adjusted gross income and return complexity) of developing and running a free direct efile tax return system, including costs to build and administer each release, with a focus on multi-lingual and mobile-friendly features and safeguards for taxpayer data; (II) taxpayer opinions, expectations, and level of trust, based on surveys, for such a free direct efile system; and (III) the opinions of an independent third-party on the overall feasibility, approach, schedule, cost, organizational design, and Internal Revenue Service capacity to deliver such a direct efile tax return system, $15,000,000, to remain available until September 30, 2023: <italic>Provided,</italic> That these amounts shall be in addition to amounts otherwise available for such purposes. </text></subparagraph></paragraph><paragraph id="H9CBE1DA4FC854B348CF3A46F85EC2E72"><enum>(2)</enum><header>Treasury Inspector General for Tax Administration</header><text display-inline="yes-display-inline">For necessary expenses of the Treasury Inspector General for Tax Administration in carrying out the Inspector General Act of 1978, as amended, including purchase and hire of passenger motor vehicles (<external-xref legal-doc="usc" parsable-cite="usc/31/1343">31 U.S.C. 1343(b)</external-xref>); and services authorized by <external-xref legal-doc="usc" parsable-cite="usc/5/3109">5 U.S.C. 3109</external-xref>, at such rates as may be determined by the Inspector General for Tax Administration, $403,000,000, to remain available until September 30, 2031: <italic>Provided,</italic> That these amounts shall be in addition to amounts otherwise available for such purposes.</text></paragraph><paragraph id="H51D93D316F224C67B8BA5EF12286504F"><enum>(3)</enum><header>Office of Tax Policy</header><text display-inline="yes-display-inline">For necessary expenses of the Office of Tax Policy of the Department of the Treasury to carry out functions related to promulgating regulations under the Internal Revenue Code of 1986, $104,533,803, to remain available until September 30, 2031: <italic>Provided,</italic> That these amounts shall be in addition to amounts otherwise available for such purposes.</text></paragraph><paragraph id="H8E87A7ED66434978AFD6C56C582CB214"><enum>(4)</enum><header>United States Tax Court</header><text display-inline="yes-display-inline">For necessary expenses of the United States Tax Court, including contract reporting and other services as authorized by <external-xref legal-doc="usc" parsable-cite="usc/5/3109">5 U.S.C. 3109</external-xref>; $153,000,000, to remain available until September 30, 2031: <italic>Provided,</italic> That these amounts shall be in addition to amounts otherwise available for such purposes.</text></paragraph><paragraph id="idc94f5443ad8c4fe096358ceb36d80666"><enum>(5)</enum><header>Treasury departmental offices</header><text>For necessary expenses of the Departmental Offices of the Department of the Treasury to provide for oversight and implementation support for actions by the Internal Revenue Service to implement this Act and the amendments made by this Act, $50,000,000, to remain available until September 30, 2031: <italic>Provided</italic>, That these amounts shall be in addition to amounts otherwise available for such purposes.</text></paragraph></subsection></section></part></subtitle><subtitle id="HB1A69B42AA6E4CBDA2955A933EB864E0"><enum>B</enum><header>Prescription Drug Pricing Reform </header><part id="H7078F9359A214D7DBCAEDB495DEBA627"><enum>1</enum><header>Lowering Prices Through Drug Price Negotiation </header><section id="HBE037AC4E8774B75A4A03E18DF641DDF"><enum>11001.</enum><header>Providing for lower prices for certain high-priced single source drugs</header><subsection id="H97959D99F203424E9C4DB157FC71D8C3"><enum>(a)</enum><header>Program To lower prices for certain high-Priced single source drugs</header><text display-inline="yes-display-inline">Title XI of the Social Security Act is amended by adding after section 1184 (<external-xref legal-doc="usc" parsable-cite="usc/42/1320e-3">42 U.S.C. 1320e–3</external-xref>) the following new part:</text><quoted-block display-inline="no-display-inline" id="H57132D17F95D4017A48163711C435E7C" style="OLC" changed="added" reported-display-style="italic"><part id="idF490163533B3490BA0688F6A4AC9B29D"><enum>E</enum><header>Price Negotiation Program to Lower Prices for Certain High-Priced Single Source Drugs</header><section id="HEB43D1539CF84CBBB37DCC511DF9A755"><enum>1191.</enum><header>Establishment of program</header><subsection id="HB11A662E98424F16B776B89384461F35"><enum>(a)</enum><header>In general</header><text>The Secretary shall establish a Drug Price Negotiation Program (in this part referred to as the <quote>program</quote>). Under the program, with respect to each price applicability period, the Secretary shall—</text><paragraph id="H54AD28E176444ED798C62ADF672C7E80"><enum>(1)</enum><text>publish a list of selected drugs in accordance with section 1192;</text></paragraph><paragraph id="HE263CB3AB9AF4318BADA334A137649ED"><enum>(2)</enum><text display-inline="yes-display-inline">enter into agreements with manufacturers of selected drugs with respect to such period, in accordance with section 1193;</text></paragraph><paragraph id="HE8509A0AB28640E593FB3313EEF78646"><enum>(3)</enum><text>negotiate and, if applicable, renegotiate maximum fair prices for such selected drugs, in accordance with section 1194; </text></paragraph><paragraph id="H1D6335E0090A469E9647FE4F54702219"><enum>(4)</enum><text display-inline="yes-display-inline">carry out the publication and administrative duties and compliance monitoring in accordance with sections 1195 and 1196.</text></paragraph></subsection><subsection id="H80A43DCBBEF6480E9C2C0095B73AEF7B"><enum>(b)</enum><header>Definitions relating to timing</header><text>For purposes of this part:</text><paragraph id="HFB4761B42A5D476A90F87DC61C71411C"><enum>(1)</enum><header>Initial price applicability year</header><text display-inline="yes-display-inline">The term <term>initial price applicability year</term> means a year (beginning with 2026).</text></paragraph><paragraph id="HB0208F8397EE45D99ABB8825FA334DB9"><enum>(2)</enum><header>Price applicability period</header><text display-inline="yes-display-inline">The term <term>price applicability period</term> means, with respect to a qualifying single source drug, the period beginning with the first initial price applicability year with respect to which such drug is a selected drug and ending with the last year during which the drug is a selected drug.</text></paragraph><paragraph id="H04D3AA58EB8B4408A787C82189759472"><enum>(3)</enum><header>Selected drug publication date</header><text>The term <term>selected drug publication date</term> means, with respect to each initial price applicability year, February 1 of the year that begins 2 years prior to such year.</text></paragraph><paragraph id="HA1169FAA5A614B8084D7130003763AFC"><enum>(4)</enum><header>Negotiation period</header><text display-inline="yes-display-inline">The term <term>negotiation period</term> means, with respect to an initial price applicability year with respect to a selected drug, the period—</text><subparagraph id="H9D8B2466DD514A09A5A60CEAB2A3F9F0"><enum>(A)</enum><text>beginning on the sooner of—</text><clause id="HD03CB3093A184DB4BF6D025C83BCFC20"><enum>(i)</enum><text>the date on which the manufacturer of the drug and the Secretary enter into an agreement under section 1193 with respect to such drug; or</text></clause><clause id="H667FDD3E79C64161B8B1A0A46480A4B7"><enum>(ii)</enum><text>February 28 following the selected drug publication date with respect to such selected drug; and</text></clause></subparagraph><subparagraph id="HD2308540BABD40588D3A4DBD4EB610A9"><enum>(B)</enum><text>ending on November 1 of the year that begins 2 years prior to the initial price applicability year.</text></subparagraph></paragraph></subsection><subsection id="HF034F2CE24D14DC8922051D7CAAFBD1A"><enum>(c)</enum><header>Other definitions</header><text display-inline="yes-display-inline">For purposes of this part:</text><paragraph id="id196C1E49E6E84BDA9A667527B7567E32"><enum>(1)</enum><header>Manufacturer</header><text>The term <quote>manufacturer</quote> has the meaning given that term in section 1847A(c)(6)(A).</text></paragraph><paragraph id="HC258318C4D6C42A8A6429B7AD266710D"><enum>(2)</enum><header>Maximum fair price eligible individual</header><text display-inline="yes-display-inline">The term <term>maximum fair price eligible individual</term> means, with respect to a selected drug—</text><subparagraph id="H8FD10C9424FD4EA18756B35678B46B39"><enum>(A)</enum><text display-inline="yes-display-inline">in the case such drug is dispensed to the individual at a pharmacy, by a mail order service, or by another dispenser, an individual who is enrolled in a prescription drug plan under part D of title XVIII or an MA–PD plan under part C of such title if coverage is provided under such plan for such selected drug; and</text></subparagraph><subparagraph id="HFF19BEB2B57C457B973DAEC432C67F5A"><enum>(B)</enum><text>in the case such drug is furnished or administered to the individual by a hospital, physician, or other provider of services or supplier, an individual who is enrolled under part B of title XVIII, including an individual who is enrolled in an MA plan under part C of such title, if payment may be made under part B for such selected drug.</text></subparagraph></paragraph><paragraph id="HAA429FCD53744CF1B055DDE07834ABCB"><enum>(3)</enum><header>Maximum fair price</header><text display-inline="yes-display-inline">The term <term>maximum fair price</term> means, with respect to a year during a price applicability period and with respect to a selected drug (as defined in section 1192(c)) with respect to such period, the price negotiated pursuant to section 1194, and updated pursuant to section 1195(b), as applicable, for such drug and year. </text></paragraph><paragraph id="id227FC54B76244F8CBDBE1F85F0696031"><enum>(4)</enum><header>Reference product</header><text>The term <quote>reference product</quote> has the meaning given such term in section 351(i) of the Public Health Service Act. </text></paragraph><paragraph id="id3896A61EB5914238AE6816C2F8E6E527"><enum>(5)</enum><header>Total expenditures</header><text display-inline="yes-display-inline">The term <quote>total expenditures</quote> includes, in the case of expenditures with respect to part D of title XVIII, the total gross covered prescription drug costs (as defined in section 1860D–15(b)(3)). The term <quote>total expenditures</quote> excludes, in the case of expenditures with respect to part B of such title, expenditures for a drug or biological product that are bundled or packaged into the payment for another service. </text></paragraph><paragraph id="H0B02195EFE71473F865E7C9D06F15654"><enum>(6)</enum><header>Unit</header><text display-inline="yes-display-inline">The term <term>unit</term> means, with respect to a drug or biological product, the lowest identifiable amount (such as a capsule or tablet, milligram of molecules, or grams) of the drug or biological product that is dispensed or furnished. </text></paragraph></subsection><subsection id="idCDD562A77E2D40889186D64F1286D0D1"><enum>(d)</enum><header>Timing for initial price applicability year 2026</header><text>Notwithstanding the provisions of this part, in the case of initial price applicability year 2026, the following rules shall apply for purposes of implementing the program:</text><paragraph id="id51300EB1A2D14E9BB5E64137A3D0C053"><enum>(1)</enum><text>Subsection (b)(3) shall be applied by substituting <quote>September 1, 2023</quote> for <quote>, with respect to each initial price applicability year, February 1 of the year that begins 2 years prior to such year</quote>.</text></paragraph><paragraph id="id809C7B702B654CE2B4B55404DB671CB5"><enum>(2)</enum><text>Subsection (b)(4) shall be applied—</text><subparagraph id="id46179BB3EEC147CE8ABD1222091A3FDD"><enum>(A)</enum><text>in subparagraph (A)(ii), by substituting <quote>October 1, 2023</quote> for <quote>February 28 following the selected drug publication date with respect to such selected drug</quote>; and</text></subparagraph><subparagraph id="idEBFE7EA5E455490B85D51B0B8EA51CCA"><enum>(B)</enum><text>in subparagraph (B), by substituting <quote>August 1, 2024</quote> for <quote>November 1 of the year that begins 2 years prior to the initial price applicability year</quote>.</text></subparagraph></paragraph><paragraph id="idD031ECDFF22346D681D348778BB587C4"><enum>(3)</enum><text>Section 1192 shall be applied—</text><subparagraph id="id278657568DF74F898A2B4CD423AD0A4E"><enum>(A)</enum><text>in subsection (b)(1)(A), by substituting <quote>during the period beginning on June 1, 2022, and ending on May 31, 2023</quote> for <quote>during the most recent period of 12 months prior to the selected drug publication date (but ending not later than October 31 of the year prior to the year of such drug publication date), with respect to such year, for which data are available</quote>; and</text></subparagraph><subparagraph id="id0CC16D10C59146C78FED1E6B0CE4AA80"><enum>(B)</enum><text>in subsection (d)(1)(A), by substituting <quote>during the period beginning on June 1, 2022, and ending on May 31, 2023</quote> for <quote>during the most recent period for which data are available of at least 12 months prior to the selected drug publication date (but ending no later than October 31 of the year prior to the year of such drug publication date), with respect to such year</quote>.</text></subparagraph></paragraph><paragraph id="idB5F092C83CF44AEEAC94831F55F625E8"><enum>(4)</enum><text>Section 1193(a) shall be applied by substituting <quote>October 1, 2023</quote> for <quote>February 28 following the selected drug publication date with respect to such selected drug</quote>.</text></paragraph><paragraph id="id7E3455C8DCF143D6AA854CF02BA085F4"><enum>(5)</enum><text>Section 1194(b)(2) shall be applied—</text><subparagraph id="id266152217BC94C7B9BF830FCE8F657B6"><enum>(A)</enum><text>in subparagraph (A), by substituting <quote>October 2, 2023</quote> for <quote>March 1 of the year of the selected drug publication date, with respect to the selected drug</quote>;</text></subparagraph><subparagraph id="id782D91C668024153B4AAECFB68252CB9"><enum>(B)</enum><text>in subparagraph (B), by substituting <quote>February 1, 2024</quote> for <quote>the June 1 following the selected drug publication date</quote>; and</text></subparagraph><subparagraph id="id65B24BBACB4C4C29A8D9AF6A2D247378"><enum>(C)</enum><text>in subparagraph (E), by substituting <quote>August 1, 2024</quote> for <quote>the first day of November following the selected drug publication date, with respect to the initial price applicability year </quote>.</text></subparagraph></paragraph><paragraph id="idC925D7A9614349B586EEBFE3A7D1FA80"><enum>(6)</enum><text>Section 1195(a)(1) shall be applied by substituting <quote>September 1, 2024</quote> for <quote>November 30 of the year that is 2 years prior to such initial price applicability year</quote>.</text></paragraph></subsection></section><section id="H3A1FEECF53E3473FB73F42D04F1C7F63" commented="no"><enum>1192.</enum><header>Selection of negotiation-eligible drugs as selected drugs</header><subsection id="H8BE61B4439CE41558A3911020A4F8CDF" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than the selected drug publication date with respect to an initial price applicability year, in accordance with subsection (b), the Secretary shall select and publish a list of—</text><paragraph commented="no" id="H512646FAACED4B4EB0C38553D7649F17"><enum>(1)</enum><text display-inline="yes-display-inline">with respect to the initial price applicability year 2026, 10 negotiation-eligible drugs described in subparagraph (A) of subsection (d)(1), but not subparagraph (B) of such subsection, with respect to such year (or, all (if such number is less than 10) such negotiation-eligible drugs with respect to such year);</text></paragraph><paragraph commented="no" id="idF408F984F06245F782F079F84BD03FFD"><enum>(2)</enum><text>with respect to the initial price applicability year 2027, 15 negotiation-eligible drugs described in subparagraph (A) of subsection (d)(1), but not subparagraph (B) of such subsection, with respect to such year (or, all (if such number is less than 15) such negotiation-eligible drugs with respect to such year); </text></paragraph><paragraph commented="no" id="id4CFB8171BAB34E838C21224EFBE78242"><enum>(3)</enum><text display-inline="yes-display-inline">with respect to the initial price applicability year 2028, 15 negotiation-eligible drugs described in subparagraph (A) or (B) of subsection (d)(1) with respect to such year (or, all (if such number is less than 15) such negotiation-eligible drugs with respect to such year); and </text></paragraph><paragraph commented="no" id="id4773C777A4A14DBCA8510D2D0D0E57FE"><enum>(4)</enum><text display-inline="yes-display-inline">with respect to the initial price applicability year 2029 or a subsequent year, 20 negotiation-eligible drugs described in subparagraph (A) or (B) of subsection (d)(1), with respect to such year (or, all (if such number is less than 20) such negotiation-eligible drugs with respect to such year).</text></paragraph><continuation-text continuation-text-level="subsection" commented="no">Subject to subsection (c)(2) and section 1194(f)(5), each drug published on the list pursuant to the previous sentence shall be subject to the negotiation process under section 1194 for the negotiation period with respect to such initial price applicability year (and the renegotiation process under such section as applicable for any subsequent year during the applicable price applicability period). </continuation-text></subsection><subsection id="H8D186D40C3F94D0FB1E80184D4038C34" commented="no"><enum>(b)</enum><header>Selection of drugs</header><paragraph id="H0E106C2E7391447CBA9D2D8E21825858" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In carrying out subsection (a), subject to paragraph (2), the Secretary shall, with respect to an initial price applicability year, do the following:</text><subparagraph id="H6E450FC6DF4B4753B143C7C5279D2672" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">Rank negotiation-eligible drugs described in subsection (d)(1) according to the total expenditures for such drugs under parts B and D of title XVIII, as determined by the Secretary, during the most recent period of 12 months prior to the selected drug publication date (but ending not later than October 31 of the year prior to the year of such drug publication date), with respect to such year, for which data are available, with the negotiation-eligible drugs with the highest total expenditures being ranked the highest.</text></subparagraph><subparagraph id="HA8B5C191B6B14223801CACA6D075C5C5" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">Select from such ranked drugs with respect to such year the negotiation-eligible drugs with the highest such rankings.</text></subparagraph></paragraph><paragraph id="HEFFAE0075A6A43EB870B2AC6727699AE" commented="no"><enum>(2)</enum><header>High spend part D drugs for 2026 and 2027</header><text display-inline="yes-display-inline">With respect to the initial price applicability year 2026 and with respect to the initial price applicability year 2027, the Secretary shall apply paragraph (1) as if the reference to <quote>negotiation-eligible drugs described in subsection (d)(1)</quote> were a reference to <quote>negotiation-eligible drugs described in subsection (d)(1)(A)</quote> and as if the reference to <quote>total expenditures for such drugs under parts B and D of title XVIII</quote> were a reference to <quote>total expenditures for such drugs under part D of title XVIII</quote>.</text></paragraph></subsection><subsection id="H7FECD8C6C23E4CA1B1704B9EDC35BB2D"><enum>(c)</enum><header>Selected drug</header><paragraph id="H3E3A90330E2F43F09EE7A7DD30848400"><enum>(1)</enum><header>In general</header><text>For purposes of this part, in accordance with subsection (e)(2) and subject to paragraph (2), each negotiation-eligible drug included on the list published under subsection (a) with respect to an initial price applicability year shall be referred to as a <quote>selected drug</quote> with respect to such year and each subsequent year beginning before the first year that begins at least 9 months after the date on which the Secretary determines at least one drug or biological product—</text><subparagraph id="HDE750916893B4E1C8AE75F8FCB83E4B2" commented="no"><enum>(A)</enum><text>is approved or licensed (as applicable)—</text><clause id="HA82809043B2F44CCB081FBB1A31E87D9" commented="no"><enum>(i)</enum><text>under section 505(j) of the Federal Food, Drug, and Cosmetic Act using such drug as the listed drug; or</text></clause><clause id="H51EA7A0067ED4C1A9A1DC2888F1396E8" commented="no"><enum>(ii)</enum><text>under section 351(k) of the Public Health Service Act using such drug as the reference product; and</text></clause></subparagraph><subparagraph id="H375AD99D60744929910AAD6B88273055" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">is marketed pursuant to such approval or licensure.</text></subparagraph></paragraph><paragraph id="H575D08D2774C4470A487EFDEC17E1985"><enum>(2)</enum><header>Clarification</header><text display-inline="yes-display-inline">A negotiation-eligible drug—</text><subparagraph id="H444352914C424E28BE9ECD346EEC7FD0"><enum>(A)</enum><text>that is included on the list published under subsection (a) with respect to an initial price applicability year; and</text></subparagraph><subparagraph id="HB1BCA18357F24998B1C8ABC0BC898050"><enum>(B)</enum><text>for which the Secretary makes a determination described in paragraph (1) before or during the negotiation period with respect to such initial price applicability year;</text></subparagraph><continuation-text continuation-text-level="paragraph">shall not be subject to the negotiation process under section 1194 with respect to such negotiation period and shall continue to be considered a selected drug under this part with respect to the number of negotiation-eligible drugs published on the list under subsection (a) with respect to such initial price applicability year. </continuation-text></paragraph></subsection><subsection id="H7D95458D944D4050B3BCF2CC1E1C6D57" commented="no"><enum>(d)</enum><header>Negotiation-Eligible drug</header><paragraph id="H59550B20AA7E43F7BA34DDBE1498C110" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this part, subject to paragraph (2), the term <term>negotiation-eligible drug</term> means, with respect to the selected drug publication date with respect to an initial price applicability year, a qualifying single source drug, as defined in subsection (e), that is described in either of the following subparagraphs (or, with respect to the initial price applicability year 2026 or 2027, that is described in subparagraph (A)): </text><subparagraph id="HDC40E8611BE44E068E5B19862B4CB10E" commented="no"><enum>(A)</enum><header>Part D high spend drugs</header><text display-inline="yes-display-inline">The qualifying single source drug is, determined in accordance with subsection (e)(2), among the 50 qualifying single source drugs with the highest total expenditures under part D of title XVIII, as determined by the Secretary in accordance with paragraph (3), during the most recent 12-month period for which data are available prior to such selected drug publication date (but ending no later than October 31 of the year prior to the year of such drug publication date).</text></subparagraph><subparagraph id="H5BCD5DF94D034CC5B28CA25942585C80" commented="no"><enum>(B)</enum><header>Part B high spend drugs</header><text display-inline="yes-display-inline">The qualifying single source drug is, determined in accordance with subsection (e)(2), among the 50 qualifying single source drugs with the highest total expenditures under part B of title XVIII, as determined by the Secretary in accordance with paragraph (3), during such most recent 12-month period, as described in subparagraph (A).</text></subparagraph></paragraph><paragraph commented="no" id="H894E6AF2D23E4C59AD4C43A294F56B80" display-inline="no-display-inline"><enum>(2)</enum><header>Exception for small biotech drugs</header><subparagraph id="HCCE48DB231D143A29E9E77A6A1A4F764" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Subject to subparagraph (C), the term <term>negotiation-eligible drug</term> shall not include, with respect to the initial price applicability years 2026, 2027, and 2028, a qualifying single source drug that meets either of the following:</text><clause id="H03D1CE31CA9D4A30B268C0B0228CED36" commented="no"><enum>(i)</enum><header>Part D drugs</header><text>The total expenditures for the qualifying single source drug under part D of title XVIII, as determined by the Secretary in accordance with paragraph (3)(B), during 2021—</text><subclause id="H50B902DE4B2F43E4A037CB9E25100FD6" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">are equal to or less than 1 percent of the total expenditures under such part D, as so determined, for all covered part D drugs (as defined in section 1860D–2(e)) during such year; and</text></subclause><subclause id="H99F59DF50E11403F81F4D5ABF010E00C" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">are equal to at least 80 percent of the total expenditures under such part D, as so determined, for all covered part D drugs for which the manufacturer of the drug has an agreement in effect under section 1860D–14A during such year.</text></subclause></clause><clause id="H9B35C48779DC4CAD9AB14C973F2DFD37" commented="no"><enum>(ii)</enum><header>Part B drugs</header><text display-inline="yes-display-inline">The total expenditures for the qualifying single source drug under part B of title XVIII, as determined by the Secretary in accordance with paragraph (3)(B), during 2021—</text><subclause id="H13A3415D737C412391EA6E548A14B5FA" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">are equal to or less than 1 percent of the total expenditures under such part B, as so determined, for all qualifying single source drugs for which payment may be made under such part B during such year; and</text></subclause><subclause id="H905A7A1A1F7243F2827AD198DAF6B748" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">are equal to at least 80 percent of the total expenditures under such part B, as so determined, for all qualifying single source drugs of the manufacturer for which payment may be made under such part B during such year. </text></subclause></clause></subparagraph><subparagraph id="HE88DD844E86D4DCF9DE53FB3CFF8086E" commented="no"><enum>(B)</enum><header>Clarifications relating to manufacturers</header><clause id="H40D4CE9BCB754BD88FC50FC65E4CC8D3"><enum>(i)</enum><header>Aggregation rule</header><text display-inline="yes-display-inline">All persons treated as a single employer under subsection (a) or (b) of <external-xref legal-doc="usc" parsable-cite="usc/26/52">section 52</external-xref> of the Internal Revenue Code of 1986 shall be treated as one manufacturer for purposes of this paragraph. </text></clause><clause id="H136F2D48E4484253B2C3A27B124EA18F"><enum>(ii)</enum><header>Limitation</header><text display-inline="yes-display-inline">A drug shall not be considered to be a qualifying single source drug described in clause (i) or (ii) of subparagraph (A) if the manufacturer of such drug is acquired after 2021 by another manufacturer that does not meet the definition of a specified manufacturer under section 1860D–14C(g)(4)(B)(ii), effective at the beginning of the plan year immediately following such acquisition or, in the case of an acquisition before 2025, effective January 1, 2025.</text></clause></subparagraph><subparagraph id="H7021E602A34B41F78D967CAF6E24682D" commented="no"><enum>(C)</enum><header>Drugs not included as small biotech drugs</header><text>A new formulation, such as an extended release formulation, of a qualifying single source drug shall not be considered a qualifying single source drug described in subparagraph (A).</text></subparagraph></paragraph><paragraph id="HB48F7311D1A84BAD90E1732CFB1C0A2A" commented="no"><enum>(3)</enum><header>Clarifications and determinations</header><subparagraph id="HEC0A205729B64256B855CFC8EFDC97E0" commented="no"><enum>(A)</enum><header>Previously selected drugs and small biotech drugs excluded</header><text>In applying subparagraphs (A) and (B) of paragraph (1), the Secretary shall not consider or count—</text><clause id="H52E5AFEEAD1F4F0680585659E4270C4F"><enum>(i)</enum><text>drugs that are already selected drugs; and</text></clause><clause id="HED1E7C2AD90643BEAB185E5DFC4C68D3"><enum>(ii)</enum><text>for initial price applicability years 2026, 2027, and 2028, qualifying single source drugs described in paragraph (2)(A).</text></clause></subparagraph><subparagraph id="HEC929693015545D88E0CBE3F9D779344" commented="no"><enum>(B)</enum><header>Use of data</header><text display-inline="yes-display-inline">In determining whether a qualifying single source drug satisfies any of the criteria described in paragraph (1) or (2), the Secretary shall use data that is aggregated across dosage forms and strengths of the drug, including new formulations of the drug, such as an extended release formulation, and not based on the specific formulation or package size or package type of the drug.</text></subparagraph></paragraph></subsection><subsection commented="no" id="HA266D22F6C5F4F44B87576916FFE6BAE"><enum>(e)</enum><header>Qualifying single source drug</header><paragraph id="HE3174FB54329460887446DF4991C6ABD" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this part, the term <term>qualifying single source drug</term> means, with respect to an initial price applicability year, subject to paragraphs (2) and (3), a covered part D drug (as defined in section 1860D–2(e)) that is described in any of the following or a drug or biological product for which payment may be made under part B of title XVIII that is described in any of the following:</text><subparagraph id="H7C3C637D62C2467B96546C0DF5539DBB" commented="no"><enum>(A)</enum><header>Drug products</header><text>A drug—</text><clause id="HF8D3CC2163204D6E95B243E36A326893"><enum>(i)</enum><text>that is approved under section 505(c) of the Federal Food, Drug, and Cosmetic Act and is marketed pursuant to such approval; </text></clause><clause id="H38F431D8A9E54109A6E33136E6CF3CCF"><enum>(ii)</enum><text display-inline="yes-display-inline">for which, as of the selected drug publication date with respect to such initial price applicability year, at least 7 years will have elapsed since the date of such approval; and</text></clause><clause id="HD15690CDF3794DC99A3BB9479F8E3BE5" commented="no"><enum>(iii)</enum><text>that is not the listed drug for any drug that is approved and marketed under section 505(j) of such Act.</text></clause></subparagraph><subparagraph id="H29A65909973943DEBC9FCAD9DBFB0821" commented="no"><enum>(B)</enum><header>Biological products</header><text>A biological product—</text><clause id="HB1DE51648C0846A4907E01C5E15F0832" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">that is licensed under section 351(a) of the Public Health Service Act and is marketed under section 351 of such Act;</text></clause><clause id="H37022FC2BA994CF487A985938784427A"><enum>(ii)</enum><text display-inline="yes-display-inline">for which, as of the selected drug publication date with respect to such initial price applicability year, at least 11 years will have elapsed since the date of such licensure; and</text></clause><clause id="HF9CC1F4412554555B3F30793BFA92442" commented="no"><enum>(iii)</enum><text display-inline="yes-display-inline">that is not the reference product for any biological product that is licensed and marketed under section 351(k) of such Act.</text></clause></subparagraph></paragraph><paragraph id="HE78313E6D1B64FA582BC84499117B8E9" commented="no"><enum>(2)</enum><header>Treatment of authorized generic drugs</header><subparagraph id="H66E138B3CA7A493C94408F6ECE279280" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of a qualifying single source drug described in subparagraph (A) or (B) of paragraph (1) that is the listed drug (as such term is used in section 505(j) of the Federal Food, Drug, and Cosmetic Act) or a product described in clause (ii) of subparagraph (B), with respect to an authorized generic drug, in applying the provisions of this part, such authorized generic drug and such listed drug or such product shall be treated as the same qualifying single source drug. </text></subparagraph><subparagraph id="HA87C9935F3214C7D8607E080A2F6B90D"><enum>(B)</enum><header>Authorized generic drug defined</header><text>For purposes of this paragraph, the term <quote>authorized generic drug</quote> means—</text><clause id="H071A686B76BB40E2821E42BEE4232C14"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of a drug, an authorized generic drug (as such term is defined in section 505(t)(3) of the Federal Food, Drug, and Cosmetic Act); and</text></clause><clause id="H258190CD68BA4330AA4018734E370C03"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of a biological product, a product that—</text><subclause id="H3449D6A09C904C8884FB4D06D051D55E"><enum>(I)</enum><text>has been licensed under section 351(a) of such Act; and</text></subclause><subclause id="H16E855369A80417EB8F4B787A1D05C3C"><enum>(II)</enum><text>is marketed, sold, or distributed directly or indirectly to retail class of trade under a different labeling, packaging (other than repackaging as the reference product in blister packs, unit doses, or similar packaging for use in institutions), product code, labeler code, trade name, or trade mark than the reference product.</text></subclause></clause></subparagraph></paragraph><paragraph id="HA3F97628891644E8846A620BCE42DD27" commented="no"><enum>(3)</enum><header>Exclusions</header><text>In this part, the term <term>qualifying single source drug</term> does not include any of the following:</text><subparagraph id="H4397DDD12CBF454F8773F7595CC0795D" commented="no"><enum>(A)</enum><header>Certain orphan drugs</header><text display-inline="yes-display-inline">A drug that is designated as a drug for only one rare disease or condition under section 526 of the Federal Food, Drug, and Cosmetic Act and for which the only approved indication (or indications) is for such disease or condition.</text></subparagraph><subparagraph id="H2244D1EAD586417893032B7AC2CEE03D"><enum>(B)</enum><header>Low spend Medicare drugs</header><text display-inline="yes-display-inline">A drug or biological product with respect to which the total expenditures under parts B and D of title XVIII, as determined by the Secretary in accordance with subsection (d)(3)(B)—</text><clause id="HCE4CF3545CEA44A98E3A2FFDA4A3BF49"><enum>(i)</enum><text display-inline="yes-display-inline">with respect to initial price applicability year 2026, is less than, during the period beginning on June 1, 2022, and ending on May 31, 2023, $200,000,000; </text></clause><clause id="id4B1C723021EB4784A3C5C07F7BF0AF80"><enum>(ii)</enum><text display-inline="yes-display-inline">with respect to initial price applicability year 2027, is less than, during the most recent 12-month period applicable under subparagraphs (A) and (B) of subsection (d)(1) for such year, the dollar amount specified in clause (i) increased by the annual percentage increase in the consumer price index for all urban consumers (all items; United States city average) for the period beginning on June 1, 2023, and ending on September 30, 2024; or</text></clause><clause id="H8B196CAE1E024050BC45E09C22B4CCF5"><enum>(iii)</enum><text display-inline="yes-display-inline">with respect to a subsequent initial price applicability year, is less than, during the most recent 12-month period applicable under subparagraphs (A) and (B) of subsection (d)(1) for such year, the dollar amount specified in this subparagraph for the previous initial price applicability year increased by the annual percentage increase in such consumer price index for the 12-month period ending on September 30 of the year prior to the year of the selected drug publication date with respect to such subsequent initial price applicability year. </text></clause></subparagraph><subparagraph id="id1fe03df969904be8b9a8e7b5b3ea3e14"><enum>(C)</enum><header>Plasma-derived products</header><text>A biological product that is derived from human whole blood or plasma. </text></subparagraph></paragraph></subsection></section><section id="HA24AC1CB0E77471D9BD996BE811318AF"><enum>1193.</enum><header>Manufacturer agreements</header><subsection id="H359C57E3FACE4D3E9BE8297D83269950"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of section 1191(a)(2), the Secretary shall enter into agreements with manufacturers of selected drugs with respect to a price applicability period, by not later than February 28 following the selected drug publication date with respect to such selected drug, under which—</text><paragraph id="H3D0E04F3A3774AE4A84E5E79D01EE538"><enum>(1)</enum><text>during the negotiation period for the initial price applicability year for the selected drug, the Secretary and the manufacturer, in accordance with section 1194, negotiate to determine (and, by not later than the last date of such period, agree to) a maximum fair price for such selected drug of the manufacturer in order for the manufacturer to provide access to such price—</text><subparagraph id="H877E3A4E4F2A438BAB3BEFDF984EB649"><enum>(A)</enum><text>to maximum fair price eligible individuals who with respect to such drug are described in subparagraph (A) of section 1191(c)(2) and are dispensed such drug (and to pharmacies, mail order services, and other dispensers, with respect to such maximum fair price eligible individuals who are dispensed such drugs) during, subject to paragraph (2), the price applicability period; and</text></subparagraph><subparagraph id="H77FAAB0A6EE84F56B48920F9B1E4C22E"><enum>(B)</enum><text display-inline="yes-display-inline">to hospitals, physicians, and other providers of services and suppliers with respect to maximum fair price eligible individuals who with respect to such drug are described in subparagraph (B) of such section and are furnished or administered such drug during, subject to paragraph (2), the price applicability period;</text></subparagraph></paragraph><paragraph id="H88BAF74F5C0642038AC1ECE1D3F123E1"><enum>(2)</enum><text display-inline="yes-display-inline">the Secretary and the manufacturer shall, in accordance with section 1194, renegotiate (and, by not later than the last date of the period of renegotiation, agree to) the maximum fair price for such drug, in order for the manufacturer to provide access to such maximum fair price (as so renegotiated)—</text><subparagraph id="H1F957C76534C4405B741AA491B09D5A4"><enum>(A)</enum><text display-inline="yes-display-inline">to maximum fair price eligible individuals who with respect to such drug are described in subparagraph (A) of section 1191(c)(2) and are dispensed such drug (and to pharmacies, mail order services, and other dispensers, with respect to such maximum fair price eligible individuals who are dispensed such drugs) during any year during the price applicability period (beginning after such renegotiation) with respect to such selected drug; and</text></subparagraph><subparagraph id="HB86E8229949A4A93ADA8B5824E2DCECA"><enum>(B)</enum><text display-inline="yes-display-inline">to hospitals, physicians, and other providers of services and suppliers with respect to maximum fair price eligible individuals who with respect to such drug are described in subparagraph (B) of such section and are furnished or administered such drug during any year described in subparagraph (A);</text></subparagraph></paragraph><paragraph id="H89DAFD98174C44BABBC6DE18DA5DD2AF"><enum>(3)</enum><text display-inline="yes-display-inline">subject to subsection (d), access to the maximum fair price (including as renegotiated pursuant to paragraph (2)), with respect to such a selected drug, shall be provided by the manufacturer to—</text><subparagraph id="HE0F8CABBF76C48EDBC0D6C56D14ABF83"><enum>(A)</enum><text>maximum fair price eligible individuals, who with respect to such drug are described in subparagraph (A) of section 1191(c)(2), at the pharmacy, mail order service, or other dispenser at the point-of-sale of such drug (and shall be provided by the manufacturer to the pharmacy, mail order service, or other dispenser, with respect to such maximum fair price eligible individuals who are dispensed such drugs), as described in paragraph (1)(A) or (2)(A), as applicable; and</text></subparagraph><subparagraph id="HAE1AD081BF434C4C8A7C3DBAB0610DBE"><enum>(B)</enum><text display-inline="yes-display-inline">hospitals, physicians, and other providers of services and suppliers with respect to maximum fair price eligible individuals who with respect to such drug are described in subparagraph (B) of such section and are furnished or administered such drug, as described in paragraph (1)(B) or (2)(B), as applicable;</text></subparagraph></paragraph><paragraph id="H383B1EDC3C9E4340B170AA87046CD63A"><enum>(4)</enum><text display-inline="yes-display-inline">the manufacturer submits to the Secretary, in a form and manner specified by the Secretary, for the negotiation period for the price applicability period (and, if applicable, before any period of renegotiation pursuant to section 1194(f)) with respect to such drug—</text><subparagraph id="H83D82DFE42A44B1B9A9630714CED7C4F" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">information on the non-Federal average manufacturer price (as defined in section 8126(h)(5) of title 38, United States Code) for the drug for the applicable year or period; and</text></subparagraph><subparagraph id="H91C59660B8F34D99B93C0E628EC538E1"><enum>(B)</enum><text>information that the Secretary requires to carry out the negotiation (or renegotiation process) under this part; and</text></subparagraph></paragraph><paragraph id="H24221FED472141F4A7DCA8A3F04EF6C0"><enum>(5)</enum><text display-inline="yes-display-inline">the manufacturer complies with requirements determined by the Secretary to be necessary for purposes of administering the program and monitoring compliance with the program.</text></paragraph></subsection><subsection id="H4B36CDFBCDB34198964229D65D2DF3CF"><enum>(b)</enum><header>Agreement in effect until drug is no longer a selected drug</header><text display-inline="yes-display-inline">An agreement entered into under this section shall be effective, with respect to a selected drug, until such drug is no longer considered a selected drug under section 1192(c).</text></subsection><subsection id="HF6F1DF89D1744DE8B8C6BB37BCBE4CEC"><enum>(c)</enum><header>Confidentiality of information</header><text>Information submitted to the Secretary under this part by a manufacturer of a selected drug that is proprietary information of such manufacturer (as determined by the Secretary) shall be used only by the Secretary or disclosed to and used by the Comptroller General of the United States for purposes of carrying out this part.</text></subsection><subsection id="id01A110A590694A8A9F7C9AAAA691FBB7"><enum>(d)</enum><header>Nonduplication with 340B ceiling price</header><text>Under an agreement entered into under this section, the manufacturer of a selected drug—</text><paragraph id="idF3D7474BD92F4233B73FC620D2F33FB4"><enum>(1)</enum><text>shall not be required to provide access to the maximum fair price under subsection (a)(3), with respect to such selected drug and maximum fair price eligible individuals who are eligible to be furnished, administered, or dispensed such selected drug at a covered entity described in section 340B(a)(4) of the Public Health Service Act, to such covered entity if such selected drug is subject to an agreement described in section 340B(a)(1) of such Act and the ceiling price (defined in section 340B(a)(1) of such Act) is lower than the maximum fair price for such selected drug; and</text></paragraph><paragraph id="idCE17EA7648BE41C6BDB8951548F7594E"><enum>(2)</enum><text>shall be required to provide access to the maximum fair price to such covered entity with respect to maximum fair price eligible individuals who are eligible to be furnished, administered, or dispensed such selected drug at such entity at such ceiling price in a nonduplicated amount to the ceiling price if such maximum fair price is below the ceiling price for such selected drug. </text></paragraph></subsection></section><section id="HB0128C254FE240D4B141EECF4B860EFF"><enum>1194.</enum><header>Negotiation and renegotiation process</header><subsection id="HBBE7465D1DCA49648CDD4FC6FA0164F3"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this part, under an agreement under section 1193 between the Secretary and a manufacturer of a selected drug (or selected drugs), with respect to the period for which such agreement is in effect and in accordance with subsections (b), (c), and (d), the Secretary and the manufacturer—</text><paragraph id="HB856A294BB9144A0A8EF3129F7400AEC"><enum>(1)</enum><text>shall during the negotiation period with respect to such drug, in accordance with this section, negotiate a maximum fair price for such drug for the purpose described in section 1193(a)(1); and</text></paragraph><paragraph id="HC0E4D701FF864FA2916A590C30987C20"><enum>(2)</enum><text display-inline="yes-display-inline">renegotiate, in accordance with the process specified pursuant to subsection (f), such maximum fair price for such drug for the purpose described in section 1193(a)(2) if such drug is a renegotiation-eligible drug under such subsection. </text></paragraph></subsection><subsection id="H3674301DB4204EBA9C9B79559D3B9AA3"><enum>(b)</enum><header>Negotiation process requirements</header><paragraph id="H1338A0E6DBF74EFA9939B12C5111066A"><enum>(1)</enum><header>Methodology and process</header><text display-inline="yes-display-inline">The Secretary shall develop and use a consistent methodology and process, in accordance with paragraph (2), for negotiations under subsection (a) that aims to achieve the lowest maximum fair price for each selected drug.</text></paragraph><paragraph id="HD7FB9FDA1108494CBA999AF000EB4BD9"><enum>(2)</enum><header>Specific elements of negotiation process</header><text>As part of the negotiation process under this section, with respect to a selected drug and the negotiation period with respect to the initial price applicability year with respect to such drug, the following shall apply: </text><subparagraph id="HA41C175FB76F4E5F88DEE9A108C2C28B"><enum>(A)</enum><header>Submission of information</header><text display-inline="yes-display-inline">Not later than March 1 of the year of the selected drug publication date, with respect to the selected drug, the manufacturer of the drug shall submit to the Secretary, in accordance with section 1193(a)(4), the information described in such section. </text></subparagraph><subparagraph id="HDD4EADF61E4746EAB096E4A83C72A980"><enum>(B)</enum><header>Initial offer by Secretary</header><text>Not later than the June 1 following the selected drug publication date, the Secretary shall provide the manufacturer of the selected drug with a written initial offer that contains the Secretary’s proposal for the maximum fair price of the drug and a concise justification based on the factors described in section 1194(e) that were used in developing such offer.</text></subparagraph><subparagraph id="HAE5D623795964498BEC4A8A38275B607"><enum>(C)</enum><header>Response to initial offer</header><clause id="H7F884ED5862E4FFAB73AA4C00F4ECA16"><enum>(i)</enum><header>In general</header><text>Not later than 30 days after the date of receipt of an initial offer under subparagraph (B), the manufacturer shall either accept such offer or propose a counteroffer to such offer.</text></clause><clause id="HC82BDF5BC0294F4BB4CA4AE2A7DE0FAB" commented="no"><enum>(ii)</enum><header>Counteroffer requirements</header><text>If a manufacturer proposes a counteroffer, such counteroffer—</text><subclause id="HFE0B52F7A544458E9A032E7D07ABD6E0" commented="no"><enum>(I)</enum><text>shall be in writing; and</text></subclause><subclause id="H03EDE21244B04D7CA7FA0F9F0F739877" commented="no"><enum>(II)</enum><text>shall be justified based on the factors described in subsection (e).</text></subclause></clause></subparagraph><subparagraph id="H6CF26A6820AC4B6BB83551D96EDA0EFC"><enum>(D)</enum><header>Response to counteroffer</header><text>After receiving a counteroffer under subparagraph (C), the Secretary shall respond in writing to such counteroffer.</text></subparagraph><subparagraph id="H26F8A97F9F6C471AB95117B126110DCF"><enum>(E)</enum><header>Deadline</header><text display-inline="yes-display-inline">All negotiations between the Secretary and the manufacturer of the selected drug shall end prior to the first day of November following the selected drug publication date, with respect to the initial price applicability year.</text></subparagraph><subparagraph id="HA972DEC111E947AC8DC17C8D87844231"><enum>(F)</enum><header>Limitations on offer amount</header><text display-inline="yes-display-inline">In negotiating the maximum fair price of a selected drug, with respect to the initial price applicability year for the selected drug, and, as applicable, in renegotiating the maximum fair price for such drug, with respect to a subsequent year during the price applicability period for such drug, the Secretary shall not offer (or agree to a counteroffer for) a maximum fair price for the selected drug that—</text><clause id="H381FB981D8704F3FA864F7A331423AFB"><enum>(i)</enum><text>exceeds the ceiling determined under subsection (c) for the selected drug and year; or</text></clause><clause id="H22E9A2A56D6C4B66A87B2C19B1BA9FD7"><enum>(ii)</enum><text display-inline="yes-display-inline">as applicable, is less than the floor determined under subsection (d) for the selected drug and year.</text></clause></subparagraph></paragraph></subsection><subsection id="HB9E08E6E65E94F0B96A5A7A6755E37A8"><enum>(c)</enum><header>Ceiling for maximum fair price</header><paragraph id="idFBF804AA69B34D8EA5E55559A22F53F1"><enum>(1)</enum><header>General ceiling</header><subparagraph id="idA41196BB66454AD6BBA50BDA40FD5EA3"><enum>(A)</enum><header>In general</header><text>The maximum fair price negotiated under this section for a selected drug, with respect to the first initial price applicability year of the price applicability period with respect to such drug, shall not exceed the lower of the amount under subparagraph (B) or the amount under subparagraph (C).</text></subparagraph><subparagraph id="id7CD11F30943943DC8B1E00431B5B2533"><enum>(B)</enum><header>Subparagraph <enum-in-header>(B)</enum-in-header> amount</header><text>An amount equal to the following:</text><clause id="idC304ED7DF65D492F83837D04F70D56F5"><enum>(i)</enum><header>Covered part D drug</header><text>In the case of a covered part D drug (as defined in section 1860D–2(e)), the sum of the plan specific enrollment weighted amounts for each prescription drug plan or MA–PD plan (as determined under paragraph (2)).</text></clause><clause id="id0D4DAD01EB0B4968AF7EB3BD0FCD996B"><enum>(ii)</enum><header>Part B drug or biological</header><text>In the case of a drug or biological product for which payment may be made under part B of title XVIII, the payment amount under section 1847A(b)(4) for the drug or biological product for the year prior to the year of the selected drug publication date with respect to the initial price applicability year for the drug or biological product.</text></clause></subparagraph><subparagraph id="idE2D0D67A806A4F5AA8AD1975F632E547"><enum>(C)</enum><header>Subparagraph <enum-in-header>(C)</enum-in-header> amount</header><text>An amount equal to the applicable percent described in paragraph (3), with respect to such drug, of the following:</text><clause id="idBC380ED60096449E9E87F08C376DF252"><enum>(i)</enum><header>Initial price applicability year 2026</header><text>In the case of a selected drug with respect to which such initial price applicability year is 2026, the average non-Federal average manufacturer price for such drug for 2021 (or, in the case that there is not an average non-Federal average manufacturer price available for such drug for 2021, for the first full year following the market entry for such drug), increased by the percentage increase in the consumer price index for all urban consumers (all items; United States city average) from September 2021 (or December of such first full year following the market entry), as applicable, to September of the year prior to the year of the selected drug publication date with respect to such initial price applicability year. </text></clause><clause id="idA294206F803840158707DC7864653C79"><enum>(ii)</enum><header>Initial price applicability year 2027 and subsequent years</header><text>In the case of a selected drug with respect to which such initial price applicability year is 2027 or a subsequent year, the lower of—</text><subclause id="id9437D17115EE417B80CD6C55CEF80B19"><enum>(I)</enum><text>the average non-Federal average manufacturer price for such drug for 2021 (or, in the case that there is not an average non-Federal average manufacturer price available for such drug for 2021, for the first full year following the market entry for such drug), increased by the percentage increase in the consumer price index for all urban consumers (all items; United States city average) from September 2021 (or December of such first full year following the market entry), as applicable, to September of the year prior to the year of the selected drug publication date with respect to such initial price applicability year; or</text></subclause><subclause id="idD39AEF4CDBA0439AA982CD67D23C8B83"><enum>(II)</enum><text>the average non-Federal average manufacturer price for such drug for the year prior to the selected drug publication date with respect to such initial price applicability year. </text></subclause></clause></subparagraph></paragraph><paragraph id="id23D7A7AA8E5F4E3BA0CAB6D69B9A5D25"><enum>(2)</enum><header>Plan specific enrollment weighted amount</header><text>For purposes of paragraph (1)(B)(i), the plan specific enrollment weighted amount for a prescription drug plan or an MA–PD plan with respect to a covered Part D drug is an amount equal to the product of— </text><subparagraph id="idF80A76C4B5E244C0A4880BDF822511A3" commented="no"><enum>(A)</enum><text>the negotiated price of the drug under such plan under part D of title XVIII, net of all price concessions received by such plan or pharmacy benefit managers on behalf of such plan, for the most recent year for which data is available; and </text></subparagraph><subparagraph id="idD6F448FE460E44DCAF160B9945DDDFCE"><enum>(B)</enum><text>a fraction—</text><clause id="id756EB8A04CCD4D7382F7F7738619F3C1"><enum>(i)</enum><text>the numerator of which is the total number of individuals enrolled in such plan in such year; and</text></clause><clause id="idCB1C758A49D5468D87520FAD9A033646"><enum>(ii)</enum><text> the denominator of which is the total number of individuals enrolled in a prescription drug plan or an MA–PD plan in such year. </text></clause></subparagraph></paragraph><paragraph id="H2DE73F0FCA3C48AEA317C9DBBBE6E0E1"><enum>(3)</enum><header>Applicable percent described</header><text>For purposes of this subsection, the applicable percent described in this paragraph is the following:</text><subparagraph id="HEB027F339430405186661CA45BE6C9F9"><enum>(A)</enum><header>Short-monopoly drugs and vaccines</header><text>With respect to a selected drug (other than an extended-monopoly drug and a long-monopoly drug), 75 percent.</text></subparagraph><subparagraph id="H35D2EE9E02374326ABB8BAC68ECE98EC"><enum>(B)</enum><header>Extended-monopoly drugs</header><text>With respect to an extended-monopoly drug, 65 percent.</text></subparagraph><subparagraph id="HBB289B835C6145DB9136ABF5940EF944"><enum>(C)</enum><header>Long-monopoly drugs</header><text>With respect to a long-monopoly drug, 40 percent.</text></subparagraph></paragraph><paragraph id="H0CD8D750632E4B27AD60EB44D2C8767F" commented="no"><enum>(4)</enum><header>Extended-monopoly drug defined</header><subparagraph commented="no" id="H4A68C5D1B82347E2808470C2BE8F1670"><enum>(A)</enum><header>In general</header><text>In this part, subject to subparagraph (B), the term <term>extended-monopoly drug</term> means, with respect to an initial price applicability year, a selected drug for which at least 12 years, but fewer than 16 years, have elapsed since the date of approval of such drug under section 505(c) of the Federal Food, Drug, and Cosmetic Act or since the date of licensure of such drug under section 351(a) of the Public Health Service Act, as applicable. </text></subparagraph><subparagraph commented="no" id="HABBFDC3DC7864B8D8FBF11D4E18A1575"><enum>(B)</enum><header>Exclusions</header><text>The term <term>extended-monopoly drug</term> shall not include any of the following:</text><clause commented="no" id="H0E86915D708B45EF917BB479DD44C2A1"><enum>(i)</enum><text>A vaccine that is licensed under section 351 of the Public Health Service Act and marketed pursuant to such section.</text></clause><clause commented="no" id="H77563050BAA542E8B26E3F9765C58A8B"><enum>(ii)</enum><text>A selected drug for which a manufacturer had an agreement under this part with the Secretary with respect to an initial price applicability year that is before 2030.</text></clause></subparagraph><subparagraph commented="no" id="H13C39EBC23134B4C83651943CD1F60B4"><enum>(C)</enum><header>Clarification</header><text>Nothing in subparagraph (B)(ii) shall limit the transition of a selected drug described in paragraph (3)(A) to a long-monopoly drug if the selected drug meets the definition of a long-monopoly drug.</text></subparagraph></paragraph><paragraph id="H3EB0364E4928427BA5EA073A920CE6DF" commented="no"><enum>(5)</enum><header>Long-monopoly drug defined</header><subparagraph commented="no" id="HE43F1BE562B54288B1312E3BC83A339B"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In this part, subject to subparagraph (B), the term <term>long-monopoly drug</term> means, with respect to an initial price applicability year, a selected drug for which at least 16 years have elapsed since the date of approval of such drug under section 505(c) of the Federal Food, Drug, and Cosmetic Act or since the date of licensure of such drug under section 351(a) of the Public Health Service Act, as applicable.</text></subparagraph><subparagraph commented="no" id="HA6209C375C6548B094F437B7F988C1B3"><enum>(B)</enum><header>Exclusion</header><text>The term <term>long-monopoly drug</term> shall not include a vaccine that is licensed under section 351 of the Public Health Service Act and marketed pursuant to such section. </text></subparagraph></paragraph><paragraph id="H45A07C9B678C4DBFB6EFAA8CCC7E0CF6"><enum>(6)</enum><header>Average non-Federal average manufacturer price</header><text display-inline="yes-display-inline">In this part, the term <term>average non-Federal average manufacturer price</term> means the average of the non-Federal average manufacturer price (as defined in section 8126(h)(5) of title 38, United States Code) for the 4 calendar quarters of the year involved.</text></paragraph></subsection><subsection id="HAFE0B5DC927742479DFF0D860CAF2B29" commented="no"><enum>(d)</enum><header>Temporary floor for small biotech drugs</header><text display-inline="yes-display-inline">In the case of a selected drug that is a qualifying single source drug described in section 1192(d)(2) and with respect to which the first initial price applicability year of the price applicability period with respect to such drug is 2029 or 2030, the maximum fair price negotiated under this section for such drug for such initial price applicability year may not be less than 66 percent of the average non-Federal average manufacturer price for such drug (as defined in subsection (c)(6)) for 2021 (or, in the case that there is not an average non-Federal average manufacturer price available for such drug for 2021, for the first full year following the market entry for such drug), increased by the percentage increase in the consumer price index for all urban consumers (all items; United States city average) from September 2021 (or December of such first full year following the market entry), as applicable, to September of the year prior to the selected drug publication date with respect to the initial price applicability year. </text></subsection><subsection id="H24B5CDE7750C486DA7EC8EE550FC013C"><enum>(e)</enum><header>Factors</header><text>For purposes of negotiating the maximum fair price of a selected drug under this part with the manufacturer of the drug, the Secretary shall consider the following factors, as applicable to the drug, as the basis for determining the offers and counteroffers under subsection (b) for the drug:</text><paragraph id="H34620A85484E4A988418BF257AAE821D"><enum>(1)</enum><header>Manufacturer-specific data</header><text display-inline="yes-display-inline">The following data, with respect to such selected drug, as submitted by the manufacturer:</text><subparagraph id="H8C625804D68A436DA2FF156D193EEA14"><enum>(A)</enum><text display-inline="yes-display-inline">Research and development costs of the manufacturer for the drug and the extent to which the manufacturer has recouped research and development costs.</text></subparagraph><subparagraph id="H87938E538510457F9EE03A9FBB9E804A"><enum>(B)</enum><text>Current unit costs of production and distribution of the drug.</text></subparagraph><subparagraph id="H1D500A5652BF456EB93FA4B0831E2938"><enum>(C)</enum><text>Prior Federal financial support for novel therapeutic discovery and development with respect to the drug.</text></subparagraph><subparagraph id="H214BC1E6C1C44F52A56A3CD9E4F3FB7B"><enum>(D)</enum><text>Data on pending and approved patent applications, exclusivities recognized by the Food and Drug Administration, and applications and approvals under section 505(c) of the Federal Food, Drug, and Cosmetic Act or section 351(a) of the Public Health Service Act for the drug. </text></subparagraph><subparagraph id="HA1DF915A9B6D4C14AD0C6D6E7CD289FD" commented="no"><enum>(E)</enum><text>Market data and revenue and sales volume data for the drug in the United States.</text></subparagraph></paragraph><paragraph id="H44C9880462F843E8AE63566C815E607F"><enum>(2)</enum><header>Evidence about alternative treatments</header><text>The following evidence, as available, with respect to such selected drug and therapeutic alternatives to such drug:</text><subparagraph id="H4BBB892DE3AA424FA70279FC002ED99A" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">The extent to which such drug represents a therapeutic advance as compared to existing therapeutic alternatives and the costs of such existing therapeutic alternatives.</text></subparagraph><subparagraph id="HA827FF2D676E411AA2F007A0DCBBE610" commented="no"><enum>(B)</enum><text>Prescribing information approved by the Food and Drug Administration for such drug and therapeutic alternatives to such drug. </text></subparagraph><subparagraph id="H3811EDCC6ECB4FD0AC2A000E02A90C4E"><enum>(C)</enum><text display-inline="yes-display-inline">Comparative effectiveness of such drug and therapeutic alternatives to such drug, taking into consideration the effects of such drug and therapeutic alternatives to such drug on specific populations, such as individuals with disabilities, the elderly, the terminally ill, children, and other patient populations.</text></subparagraph><subparagraph id="H6E3F6B18E6034AC3A9A3A4EB51554913" commented="no"><enum>(D)</enum><text display-inline="yes-display-inline">The extent to which such drug and therapeutic alternatives to such drug address unmet medical needs for a condition for which treatment or diagnosis is not addressed adequately by available therapy. </text></subparagraph><continuation-text continuation-text-level="paragraph">In using evidence described in subparagraph (C), the Secretary shall not use evidence from comparative clinical effectiveness research in a manner that treats extending the life of an elderly, disabled, or terminally ill individual as of lower value than extending the life of an individual who is younger, nondisabled, or not terminally ill. </continuation-text></paragraph></subsection><subsection id="H82993064DB22428C85C9A506A0D922AD" commented="no"><enum>(f)</enum><header>Renegotiation process</header><paragraph id="HD41A59FD47DC47CAB3FD9C05DBAA54B1" commented="no"><enum>(1)</enum><header>In general</header><text>In the case of a renegotiation-eligible drug (as defined in paragraph (2)) that is selected under paragraph (3), the Secretary shall provide for a process of renegotiation (for years (beginning with 2028) during the price applicability period, with respect to such drug) of the maximum fair price for such drug consistent with paragraph (4).</text></paragraph><paragraph id="HA4E9B7FD856B4CA0AD21885BA21C48E2" commented="no"><enum>(2)</enum><header>Renegotiation-eligible drug defined</header><text>In this section, the term <term>renegotiation-eligible drug</term> means a selected drug that is any of the following: </text><subparagraph id="H299D6987378C43ABA139FCAB45ECAE03" commented="no"><enum>(A)</enum><header>Addition of new indication</header><text>A selected drug for which a new indication is added to the drug.</text></subparagraph><subparagraph id="H27E00C5FE30744558F950EDC11584F83" commented="no"><enum>(B)</enum><header>Change of status to an extended-monopoly drug</header><text>A selected drug that—</text><clause commented="no" id="H76244A9054EE4FA8AF29284B0A7EF8EF"><enum>(i)</enum><text>is not an extended-monopoly or a long-monopoly drug; and</text></clause><clause commented="no" id="H41E4F19C6D584634A57F773C5D79358F"><enum>(ii)</enum><text>for which there is a change in status to that of an extended-monopoly drug. </text></clause></subparagraph><subparagraph id="H88EC1570794A47B082AB7E156B844943" commented="no"><enum>(C)</enum><header>Change of status to a long-monopoly drug</header><text>A selected drug that—</text><clause id="HCBDDB86DF38149DAA9726BEB81DD4843"><enum>(i)</enum><text>is not a long-monopoly drug; and</text></clause><clause id="H876B5FCA8CD2434DB3411BCA5C63CB69"><enum>(ii)</enum><text>for which there is a change in status to that of a long-monopoly drug.</text></clause></subparagraph><subparagraph id="H98691B3B75104C20AE2A700F3395736D"><enum>(D)</enum><header>Material changes</header><text display-inline="yes-display-inline">A selected drug for which the Secretary determines there has been a material change of any of the factors described in paragraph (1) or (2) of subsection (e).</text></subparagraph></paragraph><paragraph id="HE5733B2A639C459DB83B9D382C170106" commented="no"><enum>(3)</enum><header>Selection of drugs for renegotiation</header><text>For each year (beginning with 2028), the Secretary shall select among renegotiation-eligible drugs for renegotiation as follows: </text><subparagraph id="H6B19C292CA46432F916A041CC4C2E3A8"><enum>(A)</enum><header>All extended-monopoly negotiation-eligible drugs</header><text display-inline="yes-display-inline">The Secretary shall select all renegotiation-eligible drugs described in paragraph (2)(B).</text></subparagraph><subparagraph id="HF496628A156C441284493916C29B2425" commented="no"><enum>(B)</enum><header>All long-monopoly negotiation-eligible drugs</header><text>The Secretary shall select all renegotiation-eligible drugs described in paragraph (2)(C).</text></subparagraph><subparagraph id="H9CB94167D70A4301AAEF7734C0A08707" commented="no"><enum>(C)</enum><header>Remaining drugs</header><text display-inline="yes-display-inline">Among the remaining renegotiation-eligible drugs described in subparagraphs (A) and (D) of paragraph (2), the Secretary shall select renegotiation-eligible drugs for which the Secretary expects renegotiation is likely to result in a significant change in the maximum fair price otherwise negotiated. </text></subparagraph></paragraph><paragraph id="H186E94A65BE9426A9C9382D34560A43C" commented="no"><enum>(4)</enum><header>Renegotiation process</header><subparagraph commented="no" id="idADCB29D7B6884FEDBE85B5DEEF09BA00"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary shall specify the process for renegotiation of maximum fair prices with the manufacturer of a renegotiation-eligible drug selected for renegotiation under this subsection.</text></subparagraph><subparagraph commented="no" id="idD28B25B8B8214807A314196E42D7A71F"><enum>(B)</enum><header>Consistent with negotiation process</header><text display-inline="yes-display-inline">The process specified under subparagraph (A) shall, to the extent practicable, be consistent with the methodology and process established under subsection (b) and in accordance with subsections (c), (d), and (e), and for purposes of applying subsections (c)(1)(A) and (d), the reference to the first initial price applicability year of the price applicability period with respect to such drug shall be treated as the first initial price applicability year of such period for which the maximum fair price established pursuant to such renegotiation applies, including for applying subsection (c)(3)(B) in the case of renegotiation-eligible drugs described in paragraph (3)(A) of this subsection and subsection (c)(3)(C) in the case of renegotiation-eligible drugs described in paragraph (3)(B) of this subsection.</text></subparagraph></paragraph><paragraph id="H91AC5636ACB04F4F8724DCEFFCD3D244"><enum>(5)</enum><header>Clarification</header><text display-inline="yes-display-inline">A renegotiation-eligible drug for which the Secretary makes a determination described in section 1192(c)(1) before or during the period of renegotiation shall not be subject to the renegotiation process under this section. </text></paragraph></subsection><subsection id="id3D61EDFDAA854524A54C9C45009E6512"><enum>(g)</enum><header>Clarification</header><text>The maximum fair price for a selected drug described in subparagraph (A) or (B) of paragraph (1) shall take effect no later than the first day of the first calendar quarter that begins after the date described in subparagraph (A) or (B), as applicable. </text></subsection></section><section id="HA60BB1A4DC3F4877AB122AD4F8EB77E9"><enum>1195.</enum><header>Publication of maximum fair prices</header><subsection id="H7DB9D52943F24C339AD5EB5509E8F2EF"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">With respect to an initial price applicability year and a selected drug with respect to such year—</text><paragraph id="H38052607E91D4AFEB49BBB6C4AB618FA"><enum>(1)</enum><text display-inline="yes-display-inline">not later than November 30 of the year that is 2 years prior to such initial price applicability year, the Secretary shall publish the maximum fair price for such drug negotiated with the manufacturer of such drug under this part; and </text></paragraph><paragraph id="idF5006633EBD5495FA5C6FB2114E7777E" commented="no"><enum>(2)</enum><text display-inline="yes-display-inline">not later than March 1 of the year prior to such initial price applicability year, the Secretary shall publish, subject to section 1193(c), the explanation for the maximum fair price with respect to the factors as applied under section 1194(e) for such drug described in paragraph (1).</text></paragraph></subsection><subsection id="HAB525CFB823B402AA46B5E511E0852C1"><enum>(b)</enum><header>Updates</header><paragraph id="H1466AACF4D8D422AA37622F3D7E6B6B5"><enum>(1)</enum><header>Subsequent year maximum fair prices</header><text display-inline="yes-display-inline">For a selected drug, for each year subsequent to the first initial price applicability year of the price applicability period with respect to such drug, with respect to which an agreement for such drug is in effect under section 1193, not later than November 30 of the year that is 2 years prior to such subsequent year, the Secretary shall publish the maximum fair price applicable to such drug and year, which shall be—</text><subparagraph id="H3C5DF41B7E6E4C03B0E7FAB1F3FE1927"><enum>(A)</enum><text>subject to subparagraph (B), the amount equal to the maximum fair price published for such drug for the previous year, increased by the annual percentage increase in the consumer price index for all urban consumers (all items; United States city average) for the 12-month period ending with the July immediately preceding such November 30; or </text></subparagraph><subparagraph id="HC5B58CDEAEC34BB4AA8CBA29FDAB7EE5"><enum>(B)</enum><text>in the case the maximum fair price for such drug was renegotiated, for the first year for which such price as so renegotiated applies, such renegotiated maximum fair price.</text></subparagraph></paragraph><paragraph id="H28AADC7581CB48C29FC1ADD34B6094C8"><enum>(2)</enum><header>Prices negotiated after deadline</header><text>In the case of a selected drug with respect to an initial price applicability year for which the maximum fair price is determined under this part after the date of publication under this section, the Secretary shall publish such maximum fair price by not later than 30 days after the date such maximum price is so determined.</text></paragraph></subsection></section><section id="H8966564B91CE4569AAAAE6A6ABFD66A8"><enum>1196.</enum><header>Administrative duties and compliance monitoring</header><subsection id="HEF11BFB787674E2D99C7139321746B55"><enum>(a)</enum><header>Administrative duties</header><text display-inline="yes-display-inline">For purposes of section 1191(a)(4), the administrative duties described in this section are the following:</text><paragraph commented="no" id="H779232C49C644481A5B06AE5213D326F"><enum>(1)</enum><text>The establishment of procedures to ensure that the maximum fair price for a selected drug is applied before—</text><subparagraph id="H03FFD7C2DEBD4FADA994196423433082"><enum>(A)</enum><text>any coverage or financial assistance under other health benefit plans or programs that provide coverage or financial assistance for the purchase or provision of prescription drug coverage on behalf of maximum fair price eligible individuals; and</text></subparagraph><subparagraph id="HCCA5CE722171468F8B015F328F9ECCBF"><enum>(B)</enum><text>any other discounts.</text></subparagraph></paragraph><paragraph id="HE4AC8A81747748DCA7B65188C14410D8"><enum>(2)</enum><text display-inline="yes-display-inline">The establishment of procedures to compute and apply the maximum fair price across different strengths and dosage forms of a selected drug and not based on the specific formulation or package size or package type of such drug. </text></paragraph><paragraph id="H10FA1A4AAC994332B0EE64F5F2111A18"><enum>(3)</enum><text>The establishment of procedures to carry out the provisions of this part, as applicable, with respect to—</text><subparagraph id="H59068F0CB9614C0FB40684B6877D8ABF"><enum>(A)</enum><text>maximum fair price eligible individuals who are enrolled in a prescription drug plan under part D of title XVIII or an MA–PD plan under part C of such title; and</text></subparagraph><subparagraph id="H11449C888A9143ADBD6E12D31DE95B0C"><enum>(B)</enum><text>maximum fair price eligible individuals who are enrolled under part B of such title, including who are enrolled in an MA plan under part C of such title.</text></subparagraph></paragraph><paragraph id="H915BD19F65AB4141AABE60EAF8D4239A"><enum>(4)</enum><text>The establishment of a negotiation process and renegotiation process in accordance with section 1194.</text></paragraph><paragraph id="H5213767C121B44B692EA64D9F76ADCC4"><enum>(5)</enum><text display-inline="yes-display-inline">The establishment of a process for manufacturers to submit information described in section 1194(b)(2)(A).</text></paragraph><paragraph id="id40c2564fe7554fdbbc332222328ca514"><enum>(6)</enum><text>The sharing with the Secretary of the Treasury of such information as is necessary to determine the tax imposed by <external-xref legal-doc="usc" parsable-cite="usc/26/5000D">section 5000D</external-xref> of the Internal Revenue Code of 1986, including the application of such tax to a manufacturer, producer, or importer or the determination of any date described in section 5000D(c)(1) of such Code. For purposes of the preceding sentence, such information shall include—</text><subparagraph id="id0969cdffb94e4af9bbe68a43cdce8cf0"><enum>(A)</enum><text>the date on which the Secretary receives notification of any termination of an agreement under the Medicare coverage gap discount program under section 1860D-14A and the date on which any subsequent agreement under such program is entered into;</text></subparagraph><subparagraph id="idb06a23afc1b844979c5f073bb98ea961"><enum>(B)</enum><text>the date on which the Secretary receives notification of any termination of an agreement under the manufacturer discount program under section 1860D-14C and the date on which any subsequent agreement under such program is entered into; and</text></subparagraph><subparagraph id="id9ef686fa9c1942b3863d8892a59db300"><enum>(C)</enum><text>the date on which the Secretary receives notification of any termination of a rebate agreement described in section 1927(b) and the date on which any subsequent rebate agreement described in such section is entered into. </text></subparagraph></paragraph><paragraph id="HB1BD481144BE4D6092B91911594FF9C1"><enum>(7)</enum><text display-inline="yes-display-inline">The establishment of procedures for purposes of applying section 1192(d)(2)(B). </text></paragraph></subsection><subsection id="H3D7157D87D9D4BFD8B00F432ED0795B7"><enum>(b)</enum><header>Compliance monitoring</header><text display-inline="yes-display-inline">The Secretary shall monitor compliance by a manufacturer with the terms of an agreement under section 1193 and establish a mechanism through which violations of such terms shall be reported.</text></subsection></section><section id="HA77304729FE04FC7B00A27C0F4323410"><enum>1197.</enum><header>Civil monetary penalties</header><subsection id="H8CE54F8942CF41D7BF8CA0CE8A6D6E42"><enum>(a)</enum><header>Violations relating to offering of maximum fair price</header><text display-inline="yes-display-inline">Any manufacturer of a selected drug that has entered into an agreement under section 1193, with respect to a year during the price applicability period with respect to such drug, that does not provide access to a price that is equal to or less than the maximum fair price for such drug for such year—</text><paragraph id="H80B2FFC8AF034045A3E646DF6621D607"><enum>(1)</enum><text display-inline="yes-display-inline">to a maximum fair price eligible individual who with respect to such drug is described in subparagraph (A) of section 1191(c)(2) and who is dispensed such drug during such year (and to pharmacies, mail order services, and other dispensers, with respect to such maximum fair price eligible individuals who are dispensed such drugs); or</text></paragraph><paragraph id="H6427A24BB0644ACAABCACF56E6074B4E"><enum>(2)</enum><text>to a hospital, physician, or other provider of services or supplier with respect to maximum fair price eligible individuals who with respect to such drug is described in subparagraph (B) of such section and is furnished or administered such drug by such hospital, physician, or provider or supplier during such year;</text></paragraph><continuation-text continuation-text-level="subsection">shall be subject to a civil monetary penalty equal to ten times the amount equal to the product of the number of units of such drug so furnished, dispensed, or administered during such year and the difference between the price for such drug made available for such year by such manufacturer with respect to such individual or hospital, physician, provider of services, or supplier and the maximum fair price for such drug for such year. </continuation-text></subsection><subsection commented="no" id="HB7B3DD98AA78443EA6C4C52E67B56983"><enum>(b)</enum><header>Violations of certain terms of agreement</header><text display-inline="yes-display-inline">Any manufacturer of a selected drug that has entered into an agreement under section 1193, with respect to a year during the price applicability period with respect to such drug, that is in violation of a requirement imposed pursuant to section 1193(a)(5), including the requirement to submit information pursuant to section 1193(a)(4), shall be subject to a civil monetary penalty equal to $1,000,000 for each day of such violation. </text></subsection><subsection id="HC43D1CE918FD4C899638BBA65054FB8B"><enum>(c)</enum><header>False information</header><text>Any manufacturer that knowingly provides false information pursuant to section 1196(a)(7) shall be subject to a civil monetary penalty equal to $100,000,000 for each item of such false information. </text></subsection><subsection id="HA2FDD1D0F2414FC081F6A12E65F14DBA"><enum>(d)</enum><header>Application</header><text>The provisions of section 1128A (other than subsections (a) and (b)) shall apply to a civil monetary penalty under this section in the same manner as such provisions apply to a penalty or proceeding under section 1128A(a).</text></subsection></section><section id="idf8d34cd667ea42bb959ab9edf2ef2ce2"><enum>1198.</enum><header>Limitation on administrative and judicial review</header><text display-inline="no-display-inline">There shall be no administrative or judicial review of any of the following:</text><paragraph id="idE73F869AD2914204A78BEB81000DE6AD"><enum>(1)</enum><text>The determination of a unit, with respect to a drug or biological product, pursuant to section 1191(c)(6).</text></paragraph><paragraph id="id0D476577A50F437F9519FEF1630E15B6"><enum>(2)</enum><text>The selection of drugs under section 1192(b), the determination of negotiation-eligible drugs under section 1192(d), and the determination of qualifying single source drugs under section 1192(e). </text></paragraph><paragraph id="id68DAA4D3F2BA4082BFA17970E308C290"><enum>(3)</enum><text>The determination of a maximum fair price under subsection (b) or (f) of section 1194.</text></paragraph><paragraph id="id9D985770CEEB4C93BC20A35BBEE8E858"><enum>(4)</enum><text>The determination of renegotiation-eligible drugs under section 1194(f)(2) and the selection of renegotiation-eligible drugs under section 1194(f)(3).</text></paragraph></section></part><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H173E6DDE70B44518A651F1FB82FB5F1D"><enum>(b)</enum><header>Application of maximum fair prices and conforming amendments</header><paragraph id="H412D2F6FAC984C0DAEAEACD576316768"><enum>(1)</enum><header>Under Medicare</header><subparagraph id="H6F77C2313D3A48CD9A6258E1FA5F124D"><enum>(A)</enum><header>Application to payments under part B</header><text display-inline="yes-display-inline">Section 1847A(b)(1)(B) of the Social Security Act (42 U.S.C. 1395w–3a(b)(1)(B)) is amended by inserting <quote>or in the case of such a drug or biological product that is a selected drug (as referred to in section 1192(c)), with respect to a price applicability period (as defined in section 1191(b)(2)), 106 percent of the maximum fair price (as defined in section 1191(c)(3)) applicable for such drug and a year during such period</quote> after <quote>paragraph (4)</quote>.</text></subparagraph><subparagraph id="H2D4A9769E491411694D532A16B230263"><enum>(B)</enum><header>Application under MA of cost-sharing for part B drugs based off of negotiated price</header><text>Section 1852(a)(1)(B)(iv) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-22">42 U.S.C. 1395w–22(a)(1)(B)(iv)</external-xref>) is amended—</text><clause id="H4EC2DB02E5AE4F34BFD978A0DD688225"><enum>(i)</enum><text>by redesignating subclause (VII) as subclause (VIII); and</text></clause><clause id="HFF2B9B9AF0F1466ABCFD568551091626"><enum>(ii)</enum><text>by inserting after subclause (VI) the following subclause:</text><quoted-block style="OLC" id="H40F2F60805B7483695F12C26D0D7FDB5" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subclause id="H67274793BCC44C339D8E9F0B88BB5E82"><enum>(VII)</enum><text display-inline="yes-display-inline">A drug or biological product that is a selected drug (as referred to in section 1192(c)).</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="idF456804E9C934500A936D8E05513B4BA"><enum>(C)</enum><header>Exception to part <enum-in-header>D</enum-in-header> non-interference</header><text>Section 1860D–11(i) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-111">42 U.S.C. 1395w–111(i)</external-xref>) is amended—</text><clause id="id9599D33FF7DB4862B43A2F32685E52DC"><enum>(i)</enum><text>in paragraph (1), by striking <quote>and</quote> at the end; </text></clause><clause id="id3F8ECF2F872E4548875277A67A8B222D"><enum>(ii)</enum><text>in paragraph (2), by striking <quote>or institute a price structure for the reimbursement of covered part D drugs.</quote> and inserting <quote>, except as provided under section 1860D–4(b)(3)(l); and</quote>; and </text></clause><clause id="id06D009C1ECEA4FED98220316F73B1AB6"><enum>(iii)</enum><text>by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id8B4CF4B6AF18493E819A9975105C3D7C" changed="added" reported-display-style="italic"><paragraph id="id51EDFF7A123749F78E6B6483762F1E22"><enum>(3)</enum><text>may not institute a price structure for the reimbursement of covered part D drugs, except as provided under part E of title XI.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="H86353593EA194C9BA17FE48933D9730E"><enum>(D)</enum><header>Application as negotiated price under part D</header><text display-inline="yes-display-inline">Section 1860D–2(d)(1) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-102">42 U.S.C. 1395w–102(d)(1)</external-xref>) is amended—</text><clause id="H64711E51FCD74EE8A9389B675AA56598"><enum>(i)</enum><text>in subparagraph (B), by inserting <quote>, subject to subparagraph (D),</quote> after <quote>negotiated prices</quote>; and</text></clause><clause id="HE2B746F99D8C4CB596EF411A2DDC8916"><enum>(ii)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block display-inline="no-display-inline" id="HF37C1AC5B2F4474F96439CCD75EFFDD5" style="OLC" changed="added" reported-display-style="italic"><subparagraph id="HD78C1D9520D84ED89DE37823B7C4C31F"><enum>(D)</enum><header>Application of maximum fair price for selected drugs</header><text display-inline="yes-display-inline">In applying this section, in the case of a covered part D drug that is a selected drug (as referred to in section 1192(c)), with respect to a price applicability period (as defined in section 1191(b)(2)), the negotiated prices used for payment (as described in this subsection) shall be no greater than the maximum fair price (as defined in section 1191(c)(3)) for such drug and for each year during such period plus any dispensing fees for such drug.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="H707674DD0C524FF39CE613AAFC51D891"><enum>(E)</enum><header>Coverage of selected drugs</header><text display-inline="yes-display-inline">Section 1860D–4(b)(3) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-104">42 U.S.C. 1395w–104(b)(3)</external-xref>) is amended by adding at the end the following new subparagraph:</text><quoted-block style="OLC" id="HCEB8C5C478874E9DAC18D50B3A73BBEA" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subparagraph id="HF9238BB591514AEC9476201E6EC79D37"><enum>(I)</enum><header>Required inclusion of selected drugs</header><clause id="idF39EBD44B0274B08A78EF0653A4EA226"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">For 2026 and each subsequent year, the PDP sponsor offering a prescription drug plan shall include each covered part D drug that is a selected drug under section 1192 for which a maximum fair price (as defined in section 1191(c)(3)) is in effect with respect to the year.</text></clause><clause id="idDE71118180364AB5A2B82B61A61208D6"><enum>(ii)</enum><header>Clarification</header><text display-inline="yes-display-inline">Nothing in clause (i) shall be construed as prohibiting a PDP sponsor from removing such a selected drug from a formulary if such removal would be permitted under section 423.120(b)(5)(iv) of title 42, Code of Federal Regulations (or any successor regulation).</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph id="H5B836D3CB2CE4310BDA41E3DF26BF22E"><enum>(F)</enum><header>Information from prescription drug plans and MA–PD plans required</header><clause id="H519C580DE59143409EFC01C74AC7DD73"><enum>(i)</enum><header>Prescription drug plans</header><text display-inline="yes-display-inline">Section 1860D–12(b) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-112">42 U.S.C. 1395w–112(b)</external-xref>) is amended by adding at the end the following new paragraph:</text><quoted-block display-inline="no-display-inline" id="H9459B0D3AE884719B0039FC4D01B7ED4" style="OLC" changed="added" reported-display-style="italic"><paragraph id="H94B8262CE4FD4AA8A2C950FFCC0FD307"><enum>(8)</enum><header>Provision of information related to maximum fair prices</header><text display-inline="yes-display-inline">Each contract entered into with a PDP sponsor under this part with respect to a prescription drug plan offered by such sponsor shall require the sponsor to provide information to the Secretary as requested by the Secretary for purposes of carrying out section 1194.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></clause><clause id="HBBE5BDB0769C49ACB20EB5C2F03F91EC"><enum>(ii)</enum><header>MA–PD plans</header><text display-inline="yes-display-inline">Section 1857(f)(3) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-27">42 U.S.C. 1395w–27(f)(3)</external-xref>) is amended by adding at the end the following new subparagraph:</text><quoted-block display-inline="no-display-inline" id="H0429D776F8434B37A4B090F30093FA44" style="OLC" changed="added" reported-display-style="italic"><subparagraph id="H8C29483FA1A246C18DF2DA23DE8E3A3B"><enum>(E)</enum><header>Provision of information related to maximum fair prices</header><text display-inline="yes-display-inline">Section 1860D–12(b)(8).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="idE7AFF2AD13B74E3F914C7A5429414365"><enum>(G)</enum><header>Conditions for coverage</header><clause id="id44C7A916BAD0489C9D955C0D913719A6"><enum>(i)</enum><header>Medicare part D</header><text>Section 1860D–43(c) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-153">42 U.S.C. 1395w–153(c)</external-xref>) is amended—</text><subclause id="idCED00535672F4C4B8966A9ACCF30D786"><enum>(I)</enum><text>by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively;</text></subclause><subclause id="id413F3A948AA845A4842D081DFF31FFBB"><enum>(II)</enum><text>by striking <quote><header-in-text style="OLC" level="subsection">agreements</header-in-text>.—Subsection</quote> and inserting the following: “<header-in-text level="subsection" style="OLC">agreements</header-in-text>.—</text><quoted-block style="OLC" display-inline="no-display-inline" id="id49B2606124A341FCB363D32BDE66F9DB" changed="added" reported-display-style="italic"><paragraph id="id5E5FBFFC1DAD4C699981964F83328E4F"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (2), subsection</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subclause><subclause id="id184FC50260374146B2D936AA8064C00D"><enum>(III)</enum><text>by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id3D4EADE791DB459E857C14620BB89FE6" changed="added" reported-display-style="italic"><paragraph id="idD6E0ACFF29BF4DE2BF8EC1367863D876"><enum>(2)</enum><header>Exception</header><text>Paragraph (1)(A) shall not apply to a covered part D drug of a manufacturer for any period described in <external-xref legal-doc="usc" parsable-cite="usc/26/5000D">section 5000D(c)(1)</external-xref> of the Internal Revenue Code of 1986 with respect to the manufacturer.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subclause></clause><clause id="id89675A02FD334837B769ACA3C5E4B5A7"><enum>(ii)</enum><header>Medicaid and Medicare part B</header><text>Section 1927(a)(3) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-8">42 U.S.C. 1396r–8(a)(3)</external-xref>) is amended by adding at the end the following new sentence: <quote>The preceding sentence shall not apply to a single source drug or innovator multiple source drug of a manufacturer for any period described in <external-xref legal-doc="usc" parsable-cite="usc/26/5000D">section 5000D(c)(1)</external-xref> of the Internal Revenue Code of 1986 with respect to the manufacturer.</quote>.</text></clause></subparagraph><subparagraph id="id05A200BA857B494BBD3FB6010EB78225"><enum>(H)</enum><header>Disclosure of information under Medicare part D</header><clause id="id4bbf89d93c7e40f3ac6007dfa6d37d49"><enum>(i)</enum><header>Contract requirements</header><text>Section 1860D–12(b)(3)(D)(i) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-112">42 U.S.C. 1395w–112(b)(3)(D)(i)</external-xref>) is amended by inserting <quote>, or carrying out part E of title XI</quote> after <quote>appropriate)</quote>. </text></clause><clause id="id9270c808f8024b14b5aaa583f0b0c237"><enum>(ii)</enum><header>Subsidies</header><text>Section 1860D–15(f)(2)(A)(i) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-115">42 U.S.C. 1395w–115(f)(2)(A)(i)</external-xref>) is amended by inserting <quote>or part E of title XI</quote> after <quote>this section</quote>. </text></clause></subparagraph></paragraph><paragraph id="H6293AB6126684EF9A4ECA0AF74A80EF2" commented="no"><enum>(2)</enum><header>Drug price negotiation program prices included in best price</header><text display-inline="yes-display-inline">Section 1927(c)(1)(C) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-8">42 U.S.C. 1396r–8(c)(1)(C)</external-xref>) is amended—</text><subparagraph id="H8049401C55B148BCAEE19659E3A4C890" commented="no" display-inline="no-display-inline"><enum>(A)</enum><text>in clause (i)(VI), by striking <quote>any prices charged</quote> and inserting <quote>subject to clause (ii)(V), any prices charged</quote>; and </text></subparagraph><subparagraph id="H58E6724390514230B7868D9671E8A324" commented="no"><enum>(B)</enum><text>in clause (ii)—</text><clause id="H7AC013F5B96242A8A62D5EB809F32FC6" commented="no"><enum>(i)</enum><text>in subclause (III), by striking <quote>; and</quote> at the end;</text></clause><clause id="HF7C584B4BED84AB791A125BC9644B3E7" commented="no"><enum>(ii)</enum><text>in subclause (IV), by striking the period at the end and inserting <quote>; and</quote>; and</text></clause><clause id="HC5FF25A4FB79419D82702A99E6DAFC52" commented="no"><enum>(iii)</enum><text>by adding at the end the following new subclause:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H8F3752314D6E4F34876C53E6656404F8" changed="added" reported-display-style="italic"><subclause id="H3E9781DD401D4B0090220D67E48E92A0" commented="no"><enum>(V)</enum><text display-inline="yes-display-inline">in the case of a rebate period and a covered outpatient drug that is a selected drug (as referred to in section 1192(c)) during such rebate period, shall be inclusive of the maximum fair price (as defined in section 1191(c)(3)) for such drug with respect to such period.</text></subclause><after-quoted-block>. </after-quoted-block></quoted-block></clause></subparagraph></paragraph><paragraph id="ideb9ff0f278d443bfa05ebd9fdfc92315"><enum>(3)</enum><header>Maximum fair prices excluded from average manufacturer price</header><text>Section 1927(k)(1)(B)(i) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-8">42 U.S.C. 1396r–8(k)(1)(B)(i)</external-xref>) is amended—</text><subparagraph id="id5cbbf944faff497680c1ba30592781ea"><enum>(A)</enum><text>in subclause (IV) by striking <quote>; and</quote> at the end;</text></subparagraph><subparagraph id="id728ca816d1ed43ac9ef14c0d7c9ae060"><enum>(B)</enum><text>in subclause (V) by striking the period at the end and inserting <quote>; and</quote>; and</text></subparagraph><subparagraph id="id3ad8c920d98e4e94b01b57510ce823b5"><enum>(C)</enum><text>by adding at the end the following new subclause:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id5A35F7E03AFE4806B6AAEFA34D79E1AF" changed="added" reported-display-style="italic"><subclause id="id4F2654A105D94C54A7EDCA97281F974B"><enum>(VI)</enum><text>any reduction in price paid during the rebate period to the manufacturer for a drug by reason of application of part E of title XI.</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="id80ACA44B989E476DB7690D8490EC0AED" commented="no"><enum>(c)</enum><header>Implementation for 2026 through 2028</header><text display-inline="yes-display-inline">The Secretary of Health and Human Services shall implement this section, including the amendments made by this section, for 2026, 2027, and 2028 by program instruction or other forms of program guidance.</text></subsection></section><section id="id00A8E2E0B62046CDB19B98E72DEAE762"><enum>11002.</enum><header>Special rule to delay selection and negotiation of biologics for biosimilar market entry</header><subsection id="id19AF21F3F2AF461891FBCAC4DE581656"><enum>(a)</enum><header>In general</header><text>Part E of title XI of the Social Security Act, as added by <external-xref legal-doc="usc" parsable-cite="usc/26/11001">section 11001,</external-xref> is amended—</text><paragraph id="idF3B9D27E35C24D95B56F6852BD4BC95D"><enum>(1)</enum><text>in section 1192—</text><subparagraph id="id0A74AE8D21C44030A4C20234B0AFC575"><enum>(A)</enum><text>in subsection (a), in the flush matter following paragraph (4), by inserting <quote>and subsection (b)(3)</quote> after <quote>the previous sentence</quote>; </text></subparagraph><subparagraph id="idA89192276AEE4BCA86588BF99B9AB9E1"><enum>(B)</enum><text>in subsection (b)—</text><clause id="idD0507E9B01E140BE87C7E003AEF6564D"><enum>(i)</enum><text>in paragraph (1), by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idDE4C777FBCD14191B809798EF05AB240" changed="added" reported-display-style="italic"><subparagraph id="id92ba8b2a584344beb855afdb037e9b45"><enum>(C)</enum><text>In the case of a biological product for which the inclusion of the biological product as a selected drug on a list published under subsection (a) has been delayed under subsection (f)(2), remove such biological product from the rankings under subparagraph (A) before making the selections under subparagraph (B).</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause><clause id="idF747D4A09DC84AB687D06743EC054ADF"><enum>(ii)</enum><text>by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idE011825A7D6445A59F6BEEC2F8E455FA" changed="added" reported-display-style="italic"><paragraph commented="no" id="id804A77AEBB45480F81548D47C3897FA1"><enum>(3)</enum><header>Inclusion of delayed biological products</header><text>Pursuant to subparagraphs (B)(ii)(I) and (C)(i) of subsection (f)(2), the Secretary shall select and include on the list published under subsection (a) the biological products described in such subparagraphs. Such biological products shall count towards the required number of drugs to be selected under subsection (a)(1). </text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="idDA536B4267B14E3CAA86424829805693"><enum>(C)</enum><text>by adding at the end the following new subsection:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id0748775BC9B8456EB9D709FB4D0D78FF" changed="added" reported-display-style="italic"><subsection id="id1DED9BE58AB842A8B95B40ADEDEEA43C"><enum>(f)</enum><header>Special rule To delay selection and negotiation of biologics for biosimilar market entry</header><paragraph id="idF5C8664FC317472AA0C2EBBA8F682581"><enum>(1)</enum><header>Application</header><subparagraph id="idA473D4419A114C9E91E13231EB614E75"><enum>(A)</enum><header>In general</header><text>Subject to subparagraph (B), in the case of a biological product that would (but for this subsection) be an extended-monopoly drug (as defined in section 1194(c)(4)) included as a selected drug on the list published under subsection (a) with respect to an initial price applicability year, the rules described in paragraph (2) shall apply if the Secretary determines that there is a high likelihood (as described in paragraph (3)) that a biosimilar biological product (for which such biological product will be the reference product) will be licensed and marketed under section 351(k) of the Public Health Service Act before the date that is 2 years after the selected drug publication date with respect to such initial price applicability year. </text></subparagraph><subparagraph id="idBBC4AFD76201493A9C541C26D4FFF1C5"><enum>(B)</enum><header>Request required</header><clause id="id342A4952C95C4AEE8B212352AE9E3E83"><enum>(i)</enum><header>In general</header><text>The Secretary shall not provide for a delay under—</text><subclause id="id386BA8BDA3934672891EA1C96969760A"><enum>(I)</enum><text>paragraph (2)(A) unless a request is made for such a delay by a manufacturer of a biosimilar biological product prior to the selected drug publication date for the list published under subsection (a) with respect to the initial price applicability year for which the biological product may have been included as a selected drug on such list but for subparagraph (2)(A); or </text></subclause><subclause id="id68420880F3344625B0E56161C11A1599"><enum>(II)</enum><text>paragraph (2)(B)(iii) unless a request is made for such a delay by such a manufacturer prior to the selected drug publication date for the list published under subsection (a) with respect to the initial price applicability year that is 1 year after the initial price applicability year for which the biological product described in subsection (a) would have been included as a selected drug on such list but for paragraph (2)(A). </text></subclause></clause><clause id="id669A06CA529B43D98583F8B5A949248A"><enum>(ii)</enum><header>Information and documents</header><subclause id="idBC9823D88BE24038AEB1293EBB64E2C6"><enum>(I)</enum><header>In general</header><text>A request made under clause (i) shall be submitted to the Secretary by such manufacturer at a time and in a form and manner specified by the Secretary, and contain—</text><item id="idD1050DC09C984A68B3780BC9FD00DF1D"><enum>(aa)</enum><text>information and documents necessary for the Secretary to make determinations under this subsection, as specified by the Secretary and including, to the extent available, items described in subclause (III); and</text></item><item id="idBE877D0C831E4926B33E6DF1BB2DF62F"><enum>(bb)</enum><text>all agreements related to the biosimilar biological product filed with the Federal Trade Commission or the Assistant Attorney General pursuant to subsections (a) and (c) of section 1112 of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003.</text></item></subclause><subclause id="id7D5F294D1EA34FDC8672CDAF8026E99E"><enum>(II)</enum><header>Additional information and documents</header><text>After the Secretary has reviewed the request and materials submitted under subclause (I), the manufacturer shall submit any additional information and documents requested by the Secretary necessary to make determinations under this subsection. </text></subclause><subclause id="idF2BCADD1BBA94F6B90DA8545CF3B13C8"><enum>(III)</enum><header>Items described</header><text>The items described in this clause are the following:</text><item id="id86154CCECEBE4AE790015960C1E74295"><enum>(aa)</enum><text>The manufacturing schedule for such biosimilar biological product submitted to the Food and Drug Administration during its review of the application under such section 351(k). </text></item><item id="id17EF98B65AC8403A932CC838D3D92836"><enum>(bb)</enum><text>Disclosures (in filings by the manufacturer of such biosimilar biological product with the Securities and Exchange Commission required under section 12(b), 12(g), 13(a), or 15(d) of the Securities Exchange Act of 1934 about capital investment, revenue expectations, and actions taken by the manufacturer that are typical of the normal course of business in the year (or the 2 years, as applicable) before marketing of a biosimilar biological product) that pertain to the marketing of such biosimilar biological product, or comparable documentation that is distributed to the shareholders of privately held companies. </text></item></subclause></clause></subparagraph><subparagraph id="id1CCEA5627BE04D6599859038FE0EB00D"><enum>(C)</enum><header>Aggregation rule</header><clause id="idE5D226D6EB614165903D487DF75D6E73"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">All persons treated as a single employer under subsection (a) or (b) of <external-xref legal-doc="usc" parsable-cite="usc/26/52">section 52</external-xref> of the Internal Revenue Code of 1986, or in a partnership, shall be treated as one manufacturer for purposes of paragraph (2)(D)(iv). </text></clause><clause id="idE46E1F6155DD4F9997DB83F15B1D37CF"><enum>(ii)</enum><header>Partnership defined</header><text>In clause (i), the term <quote>partnership</quote> means a syndicate, group, pool, joint venture, or other organization through or by means of which any business, financial operation, or venture is carried on by the manufacturer of the biological product and the manufacturer of the biosimilar biological product.</text></clause></subparagraph></paragraph><paragraph id="id1C2D97F1132C4E7480A245D2B0746FF5"><enum>(2)</enum><header>Rules described</header><text>The rules described in this paragraph are the following:</text><subparagraph id="id5350001E1E90438DB6FFAB90B12F4C8C"><enum>(A)</enum><header>Delayed selection and negotiation for 1 year</header><text>If a determination of high likelihood is made under paragraph (3), the Secretary shall delay the inclusion of the biological product as a selected drug on the list published under subsection (a) until such list is published with respect to the initial price applicability year that is 1 year after the initial price applicability year for which the biological product would have been included as a selected drug on such list. </text></subparagraph><subparagraph id="id25427BC346AD4CE99CE73CA605D7E940"><enum>(B)</enum><header>If not licensed and marketed during the initial delay</header><clause id="idB19AC2A3E8DD42F681259C2B3224D18F"><enum>(i)</enum><header>In general</header><text>If, during the time period between the selected drug publication date on which the biological product would have been included on the list as a selected drug pursuant to subsection (a) but for subparagraph (A) and the selected drug publication date with respect to the initial price applicability year that is 1 year after the initial price applicability year for which such biological product would have been included as a selected drug on such list, the Secretary determines that the biosimilar biological product for which the manufacturer submitted the request under paragraph (1)(B)(i)(II) (and for which the Secretary previously made a high likelihood determination under paragraph (3)) has not been licensed and marketed under section 351(k) of the Public Health Service Act, the Secretary shall, at the request of such manufacturer— </text><subclause id="idD86FEA7460C6418DB5611BB7DA5F11C6"><enum>(I)</enum><text>reevaluate whether there is a high likelihood (as described in paragraph (3)) that such biosimilar biological product will be licensed and marketed under such section 351(k) before the date that is 2 years after the selected drug publication date for which such biological product would have been included as a selected drug on such list published but for subparagraph (A); and </text></subclause><subclause id="id99a64f34ec054401a52672bedee86622"><enum>(II)</enum><text>evaluate whether, on the basis of clear and convincing evidence, the manufacturer of such biosimilar biological product has made a significant amount of progress (as determined by the Secretary) towards both such licensure and the marketing of such biosimilar biological product (based on information from items described in subclauses (I)(bb) and (II) of paragraph (1)(B)(ii)) since the receipt by the Secretary of the request made by such manufacturer under paragraph (1)(B)(i)(I).</text></subclause></clause><clause id="id54CA985CF5864AC282534664E4BFAA7C"><enum>(ii)</enum><header>Selection and negotiation</header><text>If the Secretary determines that there is not a high likelihood that such biosimilar biological product will be licensed and marketed as described in clause (i)(I) or there has not been a significant amount of progress as described in clause (i)(II)— </text><subclause id="idEEB518E1C98E4A0E8485A95B040ECF28"><enum>(I)</enum><text>the Secretary shall include the biological product as a selected drug on the list published under subsection (a) with respect to the initial price applicability year that is 1 year after the initial price applicability year for which such biological product would have been included as a selected drug on such list but for subparagraph (A); and </text></subclause><subclause id="idE7A8E33F3F534B6CBAF25D684F38753D"><enum>(II)</enum><text>the manufacturer of such biological product shall pay a rebate under paragraph (4) with respect to the year for which such manufacturer would have provided access to a maximum fair price for such biological product but for subparagraph (A). </text></subclause></clause><clause id="idE93BA1C8CAA145B58B6277DA9D1770F2"><enum>(iii)</enum><header>Second 1-year delay</header><text>If the Secretary determines that there is a high likelihood that such biosimilar biological product will be licensed and marketed (as described in clause (i)(I)) and a significant amount of progress has been made by the manufacturer of such biosimilar biological product towards such licensure and marketing (as described in clause (i)(II)), the Secretary shall delay the inclusion of the biological product as a selected drug on the list published under subsection (a) until the selected drug publication date of such list with respect to the initial price applicability year that is 2 years after the initial price applicability year for which such biological product would have been included as a selected drug on such list but for this subsection. </text></clause></subparagraph><subparagraph id="id2BC2C1BF23A64A7EAC813ADD3077A663"><enum>(C)</enum><header>If not licensed and marketed during the year two delay</header><text>If, during the time period between the selected drug publication date of the list for which the biological product would have been included as a selected drug but for subparagraph (B)(iii) and the selected drug publication date with respect to the initial price applicability year that is 2 years after the initial price applicability year for which such biological product would have been included as a selected drug on such list but for this subsection, the Secretary determines that such biosimilar biological product has not been licensed and marketed— </text><clause id="idBBF3DE741DB540659E5A74BB2900F87B"><enum>(i)</enum><text>the Secretary shall include such biological product as a selected drug on such list with respect to the initial price applicability year that is 2 years after the initial price applicability year for which such biological product would have been included as a selected drug on such list; and </text></clause><clause id="id6E25C2BE571D4466B8F8E803A0CEAEFE"><enum>(ii)</enum><text>the manufacturer of such biological product shall pay a rebate under paragraph (4) with respect to the years for which such manufacturer would have provided access to a maximum fair price for such biological product but for this subsection. </text></clause></subparagraph><subparagraph id="idDC885D2B7AB2464EA9CEA0C658A318C2"><enum>(D)</enum><header>Limitations on delays</header><clause id="id2F73F0F292DF43F5857163C9E7AEEF78"><enum>(i)</enum><header>Limited to 2 years</header><text>In no case shall the Secretary delay the inclusion of a biological product on the list published under subsection (a) for more than 2 years. </text></clause><clause id="id7E35FA0F262A41DC8158DFB8FF9DFD62"><enum>(ii)</enum><header>Exclusion of biological products that transitioned to a long-monopoly drug during the delay</header><text>In the case of a biological product for which the inclusion on the list published pursuant to subsection (a) was delayed by 1 year under subparagraph (A) and for which there would have been a change in status to a long-monopoly drug (as defined in section 1194(c)(5)) if such biological product had been a selected drug, in no case may the Secretary provide for a second 1-year delay under subparagraph (B)(iii).</text></clause><clause id="id1d11d855913e42e7aa7893b7bde8f1a3"><enum>(iii)</enum><header>Exclusion of biological products if more than 1 year since licensure</header><text>In no case shall the Secretary delay the inclusion of a biological product on the list published under subsection (a) if more than 1 year has elapsed since the biosimilar biological product has been licensed under section 351(k) of the Public Health Service Act and marketing has not commenced for such biosimilar biological product. </text></clause><clause id="idA58E08097ECB4FCD994957FF59E9C47D"><enum>(iv)</enum><header>Certain manufacturers of biosimilar biological products excluded</header><text>In no case shall the Secretary delay the inclusion of a biological product as a selected drug on the list published under subsection (a) if Secretary determined that the manufacturer of the biosimilar biological product described in paragraph (1)(A)— </text><subclause id="id2A29F9295A0F4C34852021608AB58A8A"><enum>(I)</enum><text>is the same as the manufacturer of the reference product described in such paragraph or is treated as being the same pursuant to paragraph (1)(C); or</text></subclause><subclause id="idfeae0d049fc84858a43af8f0e2bd49c4" commented="no"><enum>(II)</enum><text>has, based on information from items described in paragraph (1)(B)(ii)(I)(bb), entered into any agreement described in such paragraph with the manufacturer of the reference product described in paragraph (1)(A) that—</text><item commented="no" id="id42E95562CB604E9783F26EFCE53AAF46"><enum>(aa)</enum><text>requires or incentivizes the manufacturer of the biosimilar biological product to submit a request described in paragraph (1)(B); or </text></item><item commented="no" id="idC1E6572AE5F443029CF328D9521ECFAA"><enum>(bb)</enum><text>restricts the quantity (either directly or indirectly) of the biosimilar biological product that may be sold in the United States over a specified period of time. </text></item></subclause></clause></subparagraph></paragraph><paragraph id="idF0498EFF0A6D461896803899483C61A0"><enum>(3)</enum><header>High likelihood</header><text>For purposes of this subsection, there is a high likelihood described in paragraph (1) or paragraph (2), as applicable, if the Secretary finds that—</text><subparagraph id="id88DBDB5B2C0948DAA3C019147ACED3B5"><enum>(A)</enum><text>an application for licensure under section 351(k) of the Public Health Service Act for the biosimilar biological product has been accepted for review or approved by the Food and Drug Administration; and </text></subparagraph><subparagraph id="id328e695b0bc64cb6830bce63eb8fa14f"><enum>(B)</enum><text>information from items described in sub clauses (I)(bb) and (III) of paragraph (1)(B)(ii) submitted to the Secretary by the manufacturer requesting a delay under such paragraph provides clear and convincing evidence that such biosimilar biological product will, within the time period specified under paragraph (1)(A) or (2)(B)(i)(I), be marketed.</text></subparagraph></paragraph><paragraph id="id93EA677C8DB44C398B655AF0113FB74C"><enum>(4)</enum><header>Rebate</header><subparagraph id="id7F41CD961F754A32A1115B0D47DDFC4D"><enum>(A)</enum><header>In general</header><text>For purposes of subparagraphs (B)(ii)(II) and (C)(ii) of paragraph (2), in the case of a biological product for which the inclusion on the list under subsection (a) was delayed under this subsection and for which the Secretary has negotiated and entered into an agreement under section 1193 with respect to such biological product, the manufacturer shall be required to pay a rebate to the Secretary at such time and in such manner as determined by the Secretary.</text></subparagraph><subparagraph id="idBCE29AE07F7541F08829311B68C16FA4"><enum>(B)</enum><header>Amount</header><text>Subject to subparagraph (C), the amount of the rebate under subparagraph (A) with respect to a biological product shall be equal to the estimated amount—</text><clause id="id95B6B6413FE9406FB907700DE27F03B5"><enum>(i)</enum><text>in the case of a biological product that is a covered part D drug (as defined in section 1860D–2(e)), that is the sum of the products of—</text><subclause id="id8328A9A5E7C24B8E9D33EA14659BB6B8"><enum>(I)</enum><text>75 percent of the amount by which—</text><item id="idDE748A5B5E8D4137AC11272715F5EB2A"><enum>(aa)</enum><text>the average manufacturer price, as reported by the manufacturer of such covered part D drug under section 1927 (or, if not reported by such manufacturer under section 1927, as reported by such manufacturer to the Secretary pursuant to the agreement under section 1193(a)) for such biological product, with respect to each of the calendar quarters of the price applicability period that would have applied but for this subsection; exceeds </text></item><item id="id5B2A5E87466D44CCA64742A3AAE1AA96"><enum>(bb)</enum><text>in the initial price applicability year that would have applied but for a delay under—</text><subitem id="id2D1973C7DB7C471F977C9EBC4A68F47C"><enum>(AA)</enum><text>paragraph (2)(A), the maximum fair price negotiated under section 1194 for such biological product under such agreement; or</text></subitem><subitem id="id5D61BFB7A9F345A4B1DB2A7DB85E7A80"><enum>(BB)</enum><text>paragraph (2)(B)(iii), such maximum fair price, increased as described in section 1195(b)(1)(A); and </text></subitem></item></subclause><subclause id="id138186D486684691812508D05B939BCB"><enum>(II)</enum><text>the number of units dispensed under part D of title XVIII for such covered part D drug during each such calendar quarter of such price applicability period; and </text></subclause></clause><clause id="idB1CC4ABF3CC54881B7FBA01DD214E017"><enum>(ii)</enum><text>in the case of a biological product for which payment may be made under part B of title XVIII, that is the sum of the products of—</text><subclause id="id514F0B98BB1546C1A4F95AFB78EA3A1D"><enum>(I)</enum><text>80 percent of the amount by which—</text><item id="id35AAB40D6DA04BD2A5578020536778DE"><enum>(aa)</enum><text>the payment amount for such biological product under section 1847A(b), with respect to each of the calendar quarters of the price applicability period that would have applied but for this subsection; exceeds </text></item><item id="id580A4B2ED71044D0B1AFA97D56325C29"><enum>(bb)</enum><text>in the initial price applicability year that would have applied but for a delay under—</text><subitem id="id443C93AAAE454040AD30F2F0684894FD"><enum>(AA)</enum><text>paragraph (2)(A), the maximum fair price negotiated under section 1194 for such biological product under such agreement; or</text></subitem><subitem id="idA8C9ABB6E1804315A84C47456DF93C27"><enum>(BB)</enum><text>paragraph (2)(B)(iii), such maximum fair price, increased as described in section 1195(b)(1)(A); and </text></subitem></item></subclause><subclause id="id3D91BCC7F2F34A8EABFD5F1D1B72EA97"><enum>(II)</enum><text>the number of units (excluding units that are packaged into the payment amount for an item or service and are not separately payable under such part B) of the billing and payment code of such biological product administered or furnished under such part B during each such calendar quarter of such price applicability period. </text></subclause></clause></subparagraph><subparagraph id="idACA41E53964940A8A6A46C13D1790618" commented="no"><enum>(C)</enum><header>Special rule for delayed biological products that are long-monopoly drugs</header><clause commented="no" id="id6105114CF78E41749F8AE3A19B8DF4C1"><enum>(i)</enum><header>In general</header><text>In the case of a biological product with respect to which a rebate is required to be paid under this paragraph, if such biological product qualifies as a long-monopoly drug (as defined in section 1194(c)(5)) at the time of its inclusion on the list published under subsection (a), in determining the amount of the rebate for such biological product under subparagraph (B), the amount described in clause (ii) shall be substituted for the maximum fair price described in clause (i)(I) or (ii)(I) of such subparagraph (B), as applicable.</text></clause><clause commented="no" id="idD38F9A63296D47A9931438BFE6464788"><enum>(ii)</enum><header>Amount described</header><text>The amount described in this clause is an amount equal to 65 percent of the average non-Federal average manufacturer price for the biological product for 2021 (or, in the case that there is not an average non-Federal average manufacturer price available for such biological product for 2021, for the first full year following the market entry for such biological product), increased by the percentage increase in the consumer price index for all urban consumers (all items; United States city average) from September 2021 (or December of such first full year following the market entry), as applicable, to September of the year prior to the selected drug publication date with respect to the initial price applicability year that would have applied but for this subsection. </text></clause></subparagraph><subparagraph id="id02AD22A1220D41C9A2E8579533AE2872"><enum>(D)</enum><header>Rebate deposits</header><text>Amounts paid as rebates under this paragraph shall be deposited into—</text><clause id="idBB3281B862A24C6CAA78FF5479A3D76E"><enum>(i)</enum><text>in the case payment is made for such biological product under part B of title XVIII, the Federal Supplementary Medical Insurance Trust Fund established under section 1841; and</text></clause><clause id="id6367B663546F49DBBE696469D40F6F82"><enum>(ii)</enum><text>in the case such biological product is a covered part D drug (as defined in section 1860D–2(e)), the Medicare Prescription Drug Account under section 1860D–16 in such Trust Fund.</text></clause></subparagraph></paragraph><paragraph id="id09B2695DC40443F98A4C2179254DFD07"><enum>(5)</enum><header>Definitions of biosimilar biological product</header><text>In this subsection, the term <quote>biosimilar biological product</quote> has the meaning given such term in section 1847A(c)(6).</text></paragraph></subsection><after-quoted-block>; </after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="idC1F490871576405DAA9F1129A10F7D30" commented="no"><enum>(2)</enum><text>in section 1193(a)(4)—</text><subparagraph commented="no" id="id8E1AD1F6BE0D4E90832556C9CFF2EB5F"><enum>(A)</enum><text>in the matter preceding subparagraph (A), by inserting <quote>, and for section 1192(f),</quote> after <quote>section 1194(f))</quote>;</text></subparagraph><subparagraph id="idE05DE0E7BFED4265809E8006C4B069FF" commented="no"><enum>(B)</enum><text>in subparagraph (A), by striking <quote>and</quote> at the end;</text></subparagraph><subparagraph id="idB5392B7F4A4540E1AE029D6EA2678547" commented="no"><enum>(C)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id1AED75A5AA0241059065A7A4EC0CF894" changed="added" reported-display-style="italic"><subparagraph id="id32DE029DC8434073B22AC6E209AE0531" commented="no"><enum>(C)</enum><text>information that the Secretary requires to carry out section 1192(f), including rebates under paragraph (4) of such section; and</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="idD40F304B7BB94A418F3B7EDCE42566DB"><enum>(3)</enum><text>in section 1196(a)(7), by striking <quote>section 1192(d)(2)(B)</quote> and inserting <quote>subsections (d)(2)(B) and (f)(1)(C) of section 1192</quote>; </text></paragraph><paragraph id="id259527384DFC4D9890FC51B98DF8C984"><enum>(4)</enum><text>in section 1197—</text><subparagraph id="id9D8A0B46918744B78A61D9D7ED6C80DF"><enum>(A)</enum><text>by redesignating subsections (b), (c), and (d) as subsections (c), (d), and (e), respectively; and</text></subparagraph><subparagraph id="id24B33A23B61F404D808DEA62B9A1834E"><enum>(B)</enum><text>by inserting after subsection (a) the following new subsection:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id6A159C29DA814C75AAFADAC1407054E6" changed="added" reported-display-style="italic"><subsection id="idB25BCB8FDB5D49ECBE3356307215D710"><enum>(b)</enum><header>Violations relating to providing rebates</header><text>Any manufacturer that fails to comply with the rebate requirements under section 1192(f)(4) shall be subject to a civil monetary penalty equal to 10 times the amount of the rebate the manufacturer failed to pay under such section. </text></subsection><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="id59B3192B0FAE4962B1DB76DC3729DCE2"><enum>(5)</enum><text>in section 1198(b)(2), by inserting <quote>the application of section 1192(f),</quote> after <quote>section 1192(e)</quote>. </text></paragraph></subsection><subsection id="id515129e39c094ae9921c46f5573de13c" commented="no"><enum>(b)</enum><header>Conforming amendments for disclosure of certain information</header><text>Section 1927(b)(3)(D)(i) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-8">42 U.S.C. 1396r–8(b)(3)(D)(i)</external-xref>) is amended by striking <quote>or to carry out section 1847B</quote> and inserting <quote>or to carry out section 1847B or section 1192(f), including rebates under paragraph (4) of such section</quote>.</text></subsection><subsection id="id382EF8E1AEC74F7991A5E023A348C291" commented="no"><enum>(c)</enum><header>Implementation for 2026 through 2028</header><text display-inline="yes-display-inline">The Secretary of Health and Human Services shall implement this section, including the amendments made by this section, for 2026, 2027, and 2028 by program instruction or other forms of program guidance.</text></subsection></section><section id="id5687AACEC5CC4BD298F116BD794FA6E2" section-type="subsequent-section"><enum>11003.</enum><header>Excise tax imposed on drug manufacturers during noncompliance periods</header><subsection id="H45C01A6127444DFFA3571A7B6CD07C78"><enum>(a)</enum><header>In general</header><text>Subtitle D of the Internal Revenue Code of 1986 is amended by adding at the end the following new chapter:</text><quoted-block style="OLC" id="HEC49423D608547EDA9A2591071D59851" display-inline="no-display-inline" changed="added" reported-display-style="italic"><chapter id="H65B10F73279D42C6AE8C5FCE4D540985"><enum>50A<?LEXA-Enum 50A?></enum><header>Designated Drugs</header><toc container-level="subchapter-container" quoted-block="no-quoted-block" lowest-level="section" idref="H65B10F73279D42C6AE8C5FCE4D540985" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded"><toc-entry idref="H08B04214DFE54C058DE651908B8C1429" level="section">Sec. 5000D. Designated drugs during noncompliance periods.</toc-entry></toc><section id="H08B04214DFE54C058DE651908B8C1429"><enum>5000D.<?LEXA-Enum 5000D.?></enum><header>Designated drugs during noncompliance periods</header><subsection display-inline="no-display-inline" id="H120DBD4E8EE747AB883933215719AD4E"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">There is hereby imposed on the sale by the manufacturer, producer, or importer of any designated drug during a day described in subsection (b) a tax in an amount such that the applicable percentage is equal to the ratio of—</text><paragraph id="HE39BB84CEF04457CAA7645513D2A1A75"><enum>(1)</enum><text>such tax, divided by</text></paragraph><paragraph id="H1F753EEDD0D14063963897CE2086DDE1"><enum>(2)</enum><text>the sum of such tax and the price for which so sold.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H9ACC33F496834B6AB88BE34242915378"><enum>(b)</enum><header>Noncompliance periods</header><text display-inline="yes-display-inline">A day is described in this subsection with respect to a designated drug if it is a day during one of the following periods:</text><paragraph id="H08427FCD5E46465B9AF730BDB03C2099"><enum>(1)</enum><text>The period beginning on the March 1st (or, in the case of initial price applicability year 2026, the October 2nd) immediately following the date on which such drug is included on the list published under section 1192(a) of the Social Security Act and ending on the earlier of—</text><subparagraph id="id2DEA7386109F489CA2DCCAC05896A827"><enum>(A)</enum><text>the first date on which the manufacturer of such designated drug has in place an agreement described in section 1193(a) of such Act with respect to such drug, or</text></subparagraph><subparagraph id="id42BEE50788C64769A29DD44209409CFC"><enum>(B)</enum><text>the date that the Secretary of Health and Human Services has made a determination described in section 1192(c)(1) of such Act with respect to such designated drug.</text></subparagraph></paragraph><paragraph id="H86693FFC927A4049A573AFF9B6FC27AF"><enum>(2)</enum><text>The period beginning on the November 2nd immediately following the March 1st described in paragraph (1) (or, in the case of initial price applicability year 2026, the August 2nd immediately following the October 2nd described in such paragraph) and ending on the earlier of—</text><subparagraph id="idD04AF94FAA2F44F88AD047C61B1BBE82"><enum>(A)</enum><text>the first date on which the manufacturer of such designated drug and the Secretary of Health and Human Services have agreed to a maximum fair price under an agreement described in section 1193(a) of the Social Security Act, or</text></subparagraph><subparagraph id="id74284E65E3B240F18122815D0DC3A75B"><enum>(B)</enum><text>the date that the Secretary of Health and Human Services has made a determination described in section 1192(c)(1) of such Act with respect to such designated drug.</text></subparagraph></paragraph><paragraph id="HE331B0689A0D4794994DC9D5B467ABB7"><enum>(3)</enum><text display-inline="yes-display-inline">In the case of any designated drug which is a selected drug (as defined in section 1192(c) of the Social Security Act) that the Secretary of Health and Human Services has selected for renegotiation under section 1194(f) of such Act, the period beginning on the November 2nd of the year that begins 2 years prior to the first initial price applicability year of the price applicability period for which the maximum fair price established pursuant to such renegotiation applies and ending on the earlier of— </text><subparagraph id="id19FB2AA6F1C34C61A69882FBB708362C"><enum>(A)</enum><text display-inline="yes-display-inline">the first date on which the manufacturer of such designated drug has agreed to a renegotiated maximum fair price under such agreement, or</text></subparagraph><subparagraph id="id4856041BE53940ED9A27E9D258CA2D47"><enum>(B)</enum><text>the date that the Secretary of Health and Human Services has made a determination described in section 1192(c)(1) of such Act with respect to such designated drug.</text></subparagraph></paragraph><paragraph id="HA22D386D03D64457B0B4851DB2F32F0A"><enum>(4)</enum><text display-inline="yes-display-inline">With respect to information that is required to be submitted to the Secretary of Health and Human Services under an agreement described in section 1193(a) of the Social Security Act, the period beginning on the date on which such Secretary certifies that such information is overdue and ending on the date that such information is so submitted. </text></paragraph></subsection><subsection id="idEA82E4B39B054BB296A615A78659DDD9"><enum>(c)</enum><header>Suspension of tax</header><paragraph id="id9D81003C94564F5099965AD1B040AD03"><enum>(1)</enum><header>In general</header><text>A day shall not be taken into account as a day during a period described in subsection (b) if such day is also a day during the period—</text><subparagraph id="idF5A6978E1E99432293A2DBD3139E96CA"><enum>(A)</enum><text>beginning on the first date on which—</text><clause id="idAB2C5D6354004EABBBF1DF2BAB1DF9A9"><enum>(i)</enum><text>the notice of terminations of all applicable agreements of the manufacturer have been received by the Secretary of Health and Human Services, and</text></clause><clause id="idBC018C8DDC7445FFBC20BD095DF41A1E"><enum>(ii)</enum><text>none of the drugs of the manufacturer of the designated drug are covered by an agreement under section 1860D-14A or 1860D-14C of the Social Security Act, and </text></clause></subparagraph><subparagraph id="idDC190424D9CF4273B7266E9A5DD2B6D6" commented="no"><enum>(B)</enum><text>ending on the last day of February following the earlier of—</text><clause commented="no" id="idAD830B62941E4274847DEF3DF92994FB"><enum>(i)</enum><text>the first day after the date described in subparagraph (A) on which the manufacturer enters into any subsequent applicable agreement, or </text></clause><clause commented="no" id="id736DB08D2148427D9B559961C0612436"><enum>(ii)</enum><text>the first date any drug of the manufacturer of the designated drug is covered by an agreement under section 1860D-14A or 1860D-14C of the Social Security Act.</text></clause></subparagraph></paragraph><paragraph id="id1FA0CB6CF275482491E24D724EC346EA"><enum>(2)</enum><header>Applicable agreement</header><text>For purposes of this subsection, the term <term>applicable agreement</term> means the following:</text><subparagraph id="idDF008979B51C43E285609EF003CE245A"><enum>(A)</enum><text>An agreement under—</text><clause id="id590D954AD4DB49F5A49EDCF14430C873"><enum>(i)</enum><text>the Medicare coverage gap discount program under section 1860D-14A of the Social Security Act, or </text></clause><clause id="idE013D9EDB6904EADA82CF4B0639A361F"><enum>(ii)</enum><text>the manufacturer discount program under section 1860D-14C of such Act.</text></clause></subparagraph><subparagraph id="id25B79C1AB48E4ECEB6AB58D11619F1AF"><enum>(B)</enum><text>A rebate agreement described in section 1927(b) of such Act. </text></subparagraph></paragraph></subsection><subsection commented="no" id="H643D321FD52244EAB7F9C65970FD40AF"><enum>(d)</enum><header>Applicable percentage</header><text>For purposes of this section, the term <term>applicable percentage</term> means—</text><paragraph commented="no" id="H83A401FB2F834BE89A879614095B5151"><enum>(1)</enum><text>in the case of sales of a designated drug during the first 90 days described in subsection (b) with respect to such drug, 65 percent,</text></paragraph><paragraph commented="no" id="HBB30C2454FB2405B855029C92942AC36"><enum>(2)</enum><text>in the case of sales of such drug during the 91st day through the 180th day described in subsection (b) with respect to such drug, 75 percent,</text></paragraph><paragraph id="HD2EFF973B1EF4C95AA0AD73511585B83"><enum>(3)</enum><text>in the case of sales of such drug during the 181st day through the 270th day described in subsection (b) with respect to such drug, 85 percent, and</text></paragraph><paragraph id="H1C3FE5EF48CA49D5B05ED2A89E1E5782"><enum>(4)</enum><text>in the case of sales of such drug during any subsequent day, 95 percent.</text></paragraph></subsection><subsection id="H5205B397DF0541589CAB6DA3459A38EE"><enum>(e)</enum><header>Definitions</header><text>For purposes of this section—</text><paragraph id="idBE9ADF4E49AC41BB8EBE4F37B7117719"><enum>(1)</enum><header>Designated drug</header><text>The term <term>designated drug</term> means any negotiation-eligible drug (as defined in section 1192(d) of the Social Security Act) included on the list published under section 1192(a) of such Act which is manufactured or produced in the United States or entered into the United States for consumption, use, or warehousing.</text></paragraph><paragraph id="HB6FBE42B8D6141D5BA483EDFC4D499A8"><enum>(2)</enum><header>United States</header><text>The term <term>United States</term> has the meaning given such term by section 4612(a)(4).</text></paragraph><paragraph id="HA3B4D577CD7C4C7B89BBBCA0956CA48C"><enum>(3)</enum><header>Other terms</header><text display-inline="yes-display-inline">The terms <term>initial price applicability year</term>, <term>price applicability period</term>, and <term>maximum fair price</term> have the meaning given such terms in section 1191 of the Social Security Act.</text></paragraph></subsection><subsection commented="no" id="H8115E282E96847CAAA48DA42E38E7C1D"><enum>(f)</enum><header>Special rules</header><paragraph id="H7FA404936ACB423C92CF7ECF8283B3EF"><enum>(1)</enum><header>Coordination with rules for possessions of the United States</header><text>Rules similar to the rules of paragraphs (2) and (4) of section 4132(c) shall apply for purposes of this section.</text></paragraph><paragraph commented="no" id="idBEA1C608089D4D03B95E19AA7F826116"><enum>(2)</enum><header>Anti-Abuse rule</header><text display-inline="yes-display-inline">In the case of a sale which was timed for the purpose of avoiding the tax imposed by this section, the Secretary may treat such sale as occurring during a day described in subsection (b).</text></paragraph></subsection><subsection commented="no" id="idABEDCFC0E9F94835B6BD958078C5363A"><enum>(g)</enum><header>Exports</header><text>Rules similar to the rules of section 4662(e) (other than section 4662(e)(2)(A)(ii)(II)) shall apply for purposes of this chapter. </text></subsection><subsection commented="no" id="id8461E9263DBB44FF97BD75D52DDCCFBB"><enum>(h)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Secretary shall prescribe such regulations and other guidance as may be necessary to carry out this section.</text></subsection></section></chapter><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H578EFB5453914FD7A3A265CE342B2C3D"><enum>(b)</enum><header>No deduction for excise tax payments</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/275">Section 275(a)(6)</external-xref> of the Internal Revenue Code of 1986 is amended by inserting <quote>50A,</quote> after <quote>46,</quote>.</text></subsection><subsection id="HDC82734E2771452584DEA55710D67035"><enum>(c)</enum><header>Clerical amendment</header><text>The table of chapters for subtitle D of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id5593275F1DEA48DFA46D3D63F3D23F13" changed="added" reported-display-style="italic"><toc changed="added" reported-display-style="italic"><toc-entry level="chapter" bold="off">Chapter 50A—Designated Drugs</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HF87EF6DFB98D4D1992F5C5C843DAC038"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to sales after the date of the enactment of this Act. </text></subsection></section><section id="HEB04D8DF07B449BF99A8C16B46F848C5" commented="no"><enum>11004.</enum><header>Funding</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated to the Centers for Medicare & Medicaid Services, out of any money in the Treasury not otherwise appropriated, $3,000,000,000 for fiscal year 2022, to remain available until expended, to carry out the provisions of, including the amendments made by, this part. </text></section></part><part id="H7E1533DCE14E41889A3BF2818551F520"><enum>2</enum><header>Prescription Drug Inflation Rebates</header><section id="HEFB41F08557840FD8800F92215EAAB0B" commented="no"><enum>11101.</enum><header>Medicare part B rebate by manufacturers</header><subsection id="H5AD4959E2FAA44F7A4B2C3BD9BEF2877"><enum>(a)</enum><header>In general</header><text>Section 1847A of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-3a">42 U.S.C. 1395w–3a</external-xref>) is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) the following subsection:</text><quoted-block display-inline="no-display-inline" id="H6D56903524AF491DBA530D4AB5B5AAD3" style="OLC" changed="added" reported-display-style="italic"><subsection id="H5C13B22A4E4E4A618752E2882BF5E1C6"><enum>(i)</enum><header>Rebate by manufacturers for single source drugs and biologicals with prices increasing faster than inflation</header><paragraph id="HE0D74AF1C72A46FFA36744017F373096"><enum>(1)</enum><header>Requirements</header><subparagraph display-inline="no-display-inline" id="HA3BF4C58207E4EF3BD1ACB00180F3919"><enum>(A)</enum><header>Secretarial provision of information</header><text display-inline="yes-display-inline">Not later than 6 months after the end of each calendar quarter beginning on or after January 1, 2023, the Secretary shall, for each part B rebatable drug, report to each manufacturer of such part B rebatable drug the following for such calendar quarter:</text><clause id="H6CBEC45CFF5443A0AB2B317BBCF968B2"><enum>(i)</enum><text display-inline="yes-display-inline">Information on the total number of units of the billing and payment code described in subparagraph (A)(i) of paragraph (3) with respect to such drug and calendar quarter.</text></clause><clause id="H33E7C16054F0455EB92BFDC2E1F154BA"><enum>(ii)</enum><text>Information on the amount (if any) of the excess average sales price increase described in subparagraph (A)(ii) of such paragraph for such drug and calendar quarter.</text></clause><clause id="H4049B7B8AF3A47F4A2F4C4A7C8D46820"><enum>(iii)</enum><text>The rebate amount specified under such paragraph for such part B rebatable drug and calendar quarter.</text></clause></subparagraph><subparagraph id="H9FC4505DC9194739930965898D4CB505"><enum>(B)</enum><header>Manufacturer requirement</header><text display-inline="yes-display-inline">For each calendar quarter beginning on or after January 1, 2023, the manufacturer of a part B rebatable drug shall, for such drug, not later than 30 days after the date of receipt from the Secretary of the information described in subparagraph (A) for such calendar quarter, provide to the Secretary a rebate that is equal to the amount specified in paragraph (3) for such drug for such calendar quarter. </text></subparagraph><subparagraph id="id73d0d0c9e20c4f439a191c6e07df4f0c"><enum>(C)</enum><header>Transition rule for reporting</header><text>The Secretary may, for each part B rebatable drug, delay the timeframe for reporting the information described in subparagraph (A) for calendar quarters beginning in 2023 and 2024 until not later than September 30, 2025. </text></subparagraph></paragraph><paragraph commented="no" id="H2FCD0AF1597A4CA7B684CCD1C40F86C3"><enum>(2)</enum><header>Part B rebatable drug defined</header><subparagraph id="H516EAF81A71847188EDDA8FCE1DCCC99"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In this subsection, the term <term>part B rebatable drug</term> means a single source drug or biological (as defined in subparagraph (D) of subsection (c)(6)), including a biosimilar biological product (as defined in subparagraph (H) of such subsection) but excluding a qualifying biosimilar biological product (as defined in subsection (b)(8)(B)(iii)), for which payment is made under this part, except such term shall not include such a drug or biological—</text><clause commented="no" id="HB8445FA2AE924FED955D0CDAD5C4C79A"><enum>(i)</enum><text display-inline="yes-display-inline">if, as determined by the Secretary, the average total allowed charges for such drug or biological under this part for a year per individual that uses such a drug or biological are less than, subject to subparagraph (B), $100; or</text></clause><clause id="H749B9D511970476AA27E176D2FEBF9E0" commented="no"><enum>(ii)</enum><text>that is a vaccine described in subparagraph (A) or (B) of section 1861(s)(10).</text></clause></subparagraph><subparagraph commented="no" id="H80EAAF738A1F4443B25123039E6CE49F"><enum>(B)</enum><header>Increase</header><text>The dollar amount applied under subparagraph (A)(i)—</text><clause commented="no" id="H6E4815F8408642D3A373BC371F9284C6"><enum>(i)</enum><text display-inline="yes-display-inline">for 2024, shall be the dollar amount specified under such subparagraph for 2023, increased by the percentage increase in the consumer price index for all urban consumers (United States city average) for the 12-month period ending with June of the previous year; and</text></clause><clause commented="no" id="H3AD96E38382B490694D88126E8E73664"><enum>(ii)</enum><text display-inline="yes-display-inline">for a subsequent year, shall be the dollar amount specified in this clause (or clause (i)) for the previous year (without application of subparagraph (C)), increased by the percentage increase in the consumer price index for all urban consumers (United States city average) for the 12-month period ending with June of the previous year.</text></clause></subparagraph><subparagraph id="HDE3A85E5A63B4C2BAC3387F0A7315495"><enum>(C)</enum><header>Rounding</header><text>Any dollar amount determined under subparagraph (B) that is not a multiple of $10 shall be rounded to the nearest multiple of $10.</text></subparagraph></paragraph><paragraph commented="no" id="HC46EC212C44543189D68DBC9EF36B954"><enum>(3)</enum><header>Rebate amount</header><subparagraph commented="no" id="H657DB987CE4F4647A6487F947DB6FFBD"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of paragraph (1), the amount specified in this paragraph for a part B rebatable drug assigned to a billing and payment code for a calendar quarter is, subject to subparagraphs (B) and (G) and paragraph (4), the estimated amount equal to the product of—</text><clause commented="no" id="H5A441C88B2C74A6D85ABBD88B2D27160"><enum>(i)</enum><text display-inline="yes-display-inline">the total number of units determined under subparagraph (B) for the billing and payment code of such drug; and</text></clause><clause commented="no" id="H334566E4201845A1966049A638CA7A9B"><enum>(ii)</enum><text>the amount (if any) by which—</text><subclause commented="no" id="H151C037BC43641A49DC4AA8A0803050E"><enum>(I)</enum><text display-inline="yes-display-inline">the amount equal to—</text><item id="H00E30257F6E9499EB412CE03374E3432"><enum>(aa)</enum><text>in the case of a part B rebatable drug described in paragraph (1)(B) of subsection (b), 106 percent of the amount determined under paragraph (4) of such section for such drug during the calendar quarter; or</text></item><item id="H9579AF9D4014424BA12847E457D2B502"><enum>(bb)</enum><text>in the case of a part B rebatable drug described in paragraph (1)(C) of such subsection, the payment amount under such paragraph for such drug during the calendar quarter; exceeds </text></item></subclause><subclause commented="no" id="HF2DEB488D56B47099970B357D2B74117"><enum>(II)</enum><text display-inline="yes-display-inline">the inflation-adjusted payment amount determined under subparagraph (C) for such part B rebatable drug during the calendar quarter.</text></subclause></clause></subparagraph><subparagraph id="H298E5C0FB3C546A495B13D827D586651"><enum>(B)</enum><header>Total number of units</header><text>For purposes of subparagraph (A)(i), the total number of units for the billing and payment code with respect to a part B rebatable drug furnished during a calendar quarter described in subparagraph (A) is equal to—</text><clause id="HD148C46ECB05453DBAB3C2E70EE7CCEF"><enum>(i)</enum><text display-inline="yes-display-inline">the number of units for the billing and payment code of such drug furnished during such calendar quarter, minus</text></clause><clause id="idC334D04035CB4C89A6F3DB3640D42E4E" commented="no"><enum>(ii)</enum><text>the number of units for such billing and payment code of such drug furnished during such calendar quarter—</text><subclause commented="no" id="id3EC5DCD9E70A4F119765242EE19C632E"><enum>(I)</enum><text>with respect to which the manufacturer provides a discount under the program under section 340B of the Public Health Service Act or a rebate under section 1927; or</text></subclause><subclause commented="no" id="idCAE2FBAFF72A4B2BBA8B05F0E4BC5F33"><enum>(II)</enum><text>that are packaged into the payment amount for an item or service and are not separately payable.</text></subclause></clause></subparagraph><subparagraph id="HD566AF9173E44A24AC6316A7F384F5BB"><enum>(C)</enum><header>Determination of inflation-adjusted payment amount</header><text display-inline="yes-display-inline">The inflation-adjusted payment amount determined under this subparagraph for a part B rebatable drug for a calendar quarter is—</text><clause id="HF15F1D1E051D43A9B2BC38EB2101044E"><enum>(i)</enum><text display-inline="yes-display-inline">the payment amount for the billing and payment code for such drug in the payment amount benchmark quarter (as defined in subparagraph (D)); increased by</text></clause><clause id="H93F87DE106844515A9F2A05ABDF38505"><enum>(ii)</enum><text>the percentage by which the rebate period CPI–U (as defined in subparagraph (F)) for the calendar quarter exceeds the benchmark period CPI–U (as defined in subparagraph (E)).</text></clause></subparagraph><subparagraph id="H86A2CEB801214041BA3C294D676E7D69"><enum>(D)</enum><header>Payment amount benchmark quarter</header><text display-inline="yes-display-inline">The term <term>payment amount benchmark quarter</term> means the calendar quarter beginning July 1, 2021.</text></subparagraph><subparagraph id="HDAD19F8E5E0048FB9DFB159F529C5A10"><enum>(E)</enum><header>Benchmark period CPI–U</header><text display-inline="yes-display-inline">The term <term>benchmark period CPI–U</term> means the consumer price index for all urban consumers (United States city average) for January 2021.</text></subparagraph><subparagraph id="H3FCAFF1E4E0C4ADCA544F7CF91457566"><enum>(F)</enum><header>Rebate period CPI–U</header><text display-inline="yes-display-inline">The term <term>rebate period CPI–U</term> means, with respect to a calendar quarter described in subparagraph (C), the greater of the benchmark period CPI–U and the consumer price index for all urban consumers (United States city average) for the first month of the calendar quarter that is two calendar quarters prior to such described calendar quarter.</text></subparagraph><subparagraph id="H59D6E99DEE3C49B78242209FC47448F5"><enum>(G)</enum><header>Reduction or waiver for shortages and severe supply chain disruptions</header><text display-inline="yes-display-inline">The Secretary shall reduce or waive the amount under subparagraph (A) with respect to a part B rebatable drug and a calendar quarter—</text><clause id="id96148CF98CE5480FA3A8DAD82C270B58"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of a part B rebatable drug that is described as currently in shortage on the shortage list in effect under section 506E of the Federal Food, Drug, and Cosmetic Act at any point during the calendar quarter; or</text></clause><clause id="id90D76E1EFF5E447387DA76B58C3C79D0"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of a biosimilar biological product, when the Secretary determines there is a severe supply chain disruption during the calendar quarter, such as that caused by a natural disaster or other unique or unexpected event.</text></clause></subparagraph></paragraph><paragraph id="H7C319C9F6D9D4EF88E1CE7CDA330B339"><enum>(4)</enum><header>Special treatment of certain drugs and exemption</header><subparagraph id="H6EFCD73D63914A45B5F96A2FE96A3F48"><enum>(A)</enum><header>Subsequently approved drugs</header><text display-inline="yes-display-inline">In the case of a part B rebatable drug first approved or licensed by the Food and Drug Administration after December 1, 2020, clause (i) of paragraph (3)(C) shall be applied as if the term <term>payment amount benchmark quarter</term> were defined under paragraph (3)(D) as the third full calendar quarter after the day on which the drug was first marketed and clause (ii) of paragraph (3)(C) shall be applied as if the term <term>benchmark period CPI–U</term> were defined under paragraph (3)(E) as if the reference to <quote>January 2021</quote> under such paragraph were a reference to <quote>the first month of the first full calendar quarter after the day on which the drug was first marketed</quote>.</text></subparagraph><subparagraph commented="no" id="H4CC021C69D654B21A48F122E94939EDB"><enum>(B)</enum><header>Timeline for provision of rebates for subsequently approved drugs</header><text display-inline="yes-display-inline">In the case of a part B rebatable drug first approved or licensed by the Food and Drug Administration after December 1, 2020, paragraph (1)(B) shall be applied as if the reference to <quote>January 1, 2023</quote> under such paragraph were a reference to <quote>the later of the 6th full calendar quarter after the day on which the drug was first marketed or January 1, 2023</quote>.</text></subparagraph><subparagraph id="HC024CEDF043E4D0A8EFB9F45CF336165"><enum>(C)</enum><header>Selected drugs</header><text display-inline="yes-display-inline">In the case of a part B rebatable drug that is a selected drug (as defined in section 1192(c)) with respect to a price applicability period (as defined in section 1191(b)(2)), in the case such drug is no longer considered to be a selected drug under section 1192(c), for each applicable period (as defined under subsection (g)(7)) beginning after the price applicability period with respect to such drug, clause (i) of paragraph (3)(C) shall be applied as if the term <term>payment amount benchmark quarter</term> were defined under paragraph (3)(D) as the calendar quarter beginning January 1 of the last year during such price applicability period with respect to such selected drug and clause (ii) of paragraph (3)(C) shall be applied as if the term <term>benchmark period CPI–U</term> were defined under paragraph (3)(E) as if the reference to <quote>January 2021</quote> under such paragraph were a reference to <quote>the July of the year preceding such last year</quote>.</text></subparagraph></paragraph><paragraph commented="no" id="H54CC519F642A41D190713ADA041C27EA"><enum>(5)</enum><header>Application to beneficiary coinsurance</header><text display-inline="yes-display-inline">In the case of a part B rebatable drug furnished on or after April 1, 2023, if the payment amount described in paragraph (3)(A)(ii)(I) (or, in the case of a part B rebatable drug that is a selected drug (as defined in section 1192(c)), the payment amount described in subsection (b)(1)(B) for such drug) for a calendar quarter exceeds the inflation adjusted payment for such quarter—</text><subparagraph id="HB2BCA309571C49AFACA0D86D6C314A61"><enum>(A)</enum><text>in computing the amount of any coinsurance applicable under this part to an individual to whom such drug is furnished, the computation of such coinsurance shall be equal to 20 percent of the inflation-adjusted payment amount determined under paragraph (3)(C) for such part B rebatable drug; and</text></subparagraph><subparagraph id="H119AF59BC50C4CDA81C19F496A9A264C"><enum>(B)</enum><text display-inline="yes-display-inline">the amount of such coinsurance for such calendar quarter, as computed under subparagraph (A), shall be applied as a percent, as determined by the Secretary, to the payment amount that would otherwise apply under subparagraphs (B) or (C) of subsection (b)(1).</text></subparagraph></paragraph><paragraph id="HD57C24E6602D4CF49083FC5666ACB170"><enum>(6)</enum><header>Rebate deposits</header><text>Amounts paid as rebates under paragraph (1)(B) shall be deposited into the Federal Supplementary Medical Insurance Trust Fund established under section 1841.</text></paragraph><paragraph id="HA3DC4CBA031E4C7884DB9B8FFA4261C5"><enum>(7)</enum><header>Civil money penalty</header><text display-inline="yes-display-inline">If a manufacturer of a part B rebatable drug has failed to comply with the requirements under paragraph (1)(B) for such drug for a calendar quarter, the manufacturer shall be subject to, in accordance with a process established by the Secretary pursuant to regulations, a civil money penalty in an amount equal to at least 125 percent of the amount specified in paragraph (3) for such drug for such calendar quarter. The provisions of section 1128A (other than subsections (a) (with respect to amounts of penalties or additional assessments) and (b)) shall apply to a civil money penalty under this paragraph in the same manner as such provisions apply to a penalty or proceeding under section 1128A(a).</text></paragraph><paragraph id="id6320A5BA126F458AB97A77BC4017B217"><enum>(8)</enum><header>Limitation on administrative or judicial review</header><text display-inline="yes-display-inline">There shall be no administrative or judicial review of any of the following:</text><subparagraph id="idAB93D61B593543928860A621DA0A486C"><enum>(A)</enum><text>The determination of units under this subsection.</text></subparagraph><subparagraph id="id6BE63931C6464A67AC56F82658816C06"><enum>(B)</enum><text>The determination of whether a drug is a part B rebatable drug under this subsection.</text></subparagraph><subparagraph id="id1E98BFC497A94081B097D3D3DC8DBD29"><enum>(C)</enum><text>The calculation of the rebate amount under this subsection.</text></subparagraph><subparagraph id="id21716E41DA8D425B9F2577DD7709EAA9"><enum>(D)</enum><text>The computation of coinsurance under paragraph (5) of this subsection.</text></subparagraph><subparagraph id="idE4E1645A488443F0A99BF883B5016290"><enum>(E)</enum><text>The computation of amounts paid under section 1833(a)(1)(EE).</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HBEAB3656FBB7456289013B43B1AB4BBD"><enum>(b)</enum><header>Amounts payable; cost-Sharing</header><text display-inline="yes-display-inline">Section 1833 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395l">42 U.S.C. 1395l</external-xref>) is amended—</text><paragraph id="H27D2A4BDA1E9471592FF135514ED4269"><enum>(1)</enum><text>in subsection (a)(1)—</text><subparagraph id="H45A6CA7B24F7461296F9431A7543A139" display-inline="no-display-inline"><enum>(A)</enum><text>in subparagraph (G), by inserting <quote>, subject to subsection (i)(9),</quote> after <quote>the amounts paid</quote>; </text></subparagraph><subparagraph id="H3D9144A46910411BAF44C10D1C950157"><enum>(B)</enum><text>in subparagraph (S), by striking <quote>with respect to</quote> and inserting <quote>subject to subparagraph (EE), with respect to</quote>;</text></subparagraph><subparagraph id="HCD62C1733ED346A6B4C3D5F67A275E73"><enum>(C)</enum><text>by striking <quote>and (DD)</quote> and inserting <quote>(DD)</quote>; and</text></subparagraph><subparagraph id="H348869C55FAE482F8059506806935695"><enum>(D)</enum><text>by inserting before the semicolon at the end the following: <quote>, and (EE) with respect to a part B rebatable drug (as defined in paragraph (2) of section 1847A(i)) furnished on or after April 1, 2023, for which the payment amount for a calendar quarter under paragraph (3)(A)(ii)(I) of such section (or, in the case of a part B rebatable drug that is a selected drug (as defined in section 1192(c) for which, the payment amount described in section 1847A(b)(1)(B)) for such drug for such quarter exceeds the inflation-adjusted payment under paragraph (3)(A)(ii)(II) of such section for such quarter, the amounts paid shall be equal to the percent of the payment amount under paragraph (3)(A)(ii)(I) of such section or section 1847A(b)(1)(B), as applicable, that equals the difference between (i) 100 percent, and (ii) the percent applied under section 1847A(i)(5)(B)</quote>; </text></subparagraph></paragraph><paragraph id="H4B5619A509BB40B4B20020B23BD69AF2"><enum>(2)</enum><text>in subsection (i), by adding at the end the following new paragraph:</text><quoted-block style="OLC" id="H8F51BC5CD29B4F88920C5FAC748BEBE3" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="HED1144B42A964B8BB2C15DD64C639A84" indent="up1"><enum>(9)</enum><text display-inline="yes-display-inline">In the case of a part B rebatable drug (as defined in paragraph (2) of section 1847A(i)) for which payment under this subsection is not packaged into a payment for a service furnished on or after April 1, 2023, under the revised payment system under this subsection, in lieu of calculation of coinsurance and the amount of payment otherwise applicable under this subsection, the provisions of section 1847A(i)(5) and paragraph (1)(EE) of subsection (a), shall, as determined appropriate by the Secretary, apply under this subsection in the same manner as such provisions of section 1847A(i)(5) and subsection (a) apply under such section and subsection.</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph id="HDEC09A5DE0B44137BB3E281175B45B23"><enum>(3)</enum><text>in subsection (t)(8), by adding at the end the following new subparagraph:</text><quoted-block style="OLC" id="HEB5C229F429842C88402143628BAABB6" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subparagraph id="H235B1663A3CC45E49D33599FB01A6524"><enum>(F)</enum><header>Part B rebatable drugs</header><text display-inline="yes-display-inline">In the case of a part B rebatable drug (as defined in paragraph (2) of section 1847A(i), except if such drug does not have a copayment amount as a result of application of subparagraph (E)) for which payment under this part is not packaged into a payment for a covered OPD service (or group of services) furnished on or after April 1, 2023, and the payment for such drug under this subsection is the same as the amount for a calendar quarter under paragraph (3)(A)(ii)(I) of section 1847A(i), under the system under this subsection, in lieu of calculation of the copayment amount and the amount of payment otherwise applicable under this subsection (other than the application of the limitation described in subparagraph (C)), the provisions of section 1847A(i)(5) and paragraph (1)(EE) of subsection (a), shall, as determined appropriate by the Secretary, apply under this subsection in the same manner as such provisions of section 1847A(i)(5) and subsection (a) apply under such section and subsection.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H9E84B3A42D71462AAD0836102BEE36C3"><enum>(c)</enum><header>Conforming amendments</header><paragraph id="H23FCA8E5633E41B1832D5B10516A7A52"><enum>(1)</enum><header>To part B ASP calculation</header><text display-inline="yes-display-inline">Section 1847A(c)(3) of the Social Security Act (42 U.S.C. 1395w–3a(c)(3)) is amended by inserting <quote>subsection (i) or</quote> before <quote>section 1927</quote>.</text></paragraph><paragraph id="HDFF7F5EA98924385A4C4DA6296681BE8" commented="no"><enum>(2)</enum><header>Excluding part B drug inflation rebate from best price</header><text display-inline="yes-display-inline">Section 1927(c)(1)(C)(ii)(I) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-8">42 U.S.C. 1396r–8(c)(1)(C)(ii)(I)</external-xref>) is amended by inserting <quote>or section 1847A(i)</quote> after <quote>this section</quote>.</text></paragraph><paragraph id="H9BE442E6C8B2428D86E63E50A59B3C11"><enum>(3)</enum><header>Coordination with Medicaid rebate information disclosure</header><text display-inline="yes-display-inline">Section 1927(b)(3)(D)(i) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-8">42 U.S.C. 1396r–8(b)(3)(D)(i)</external-xref>) is amended by inserting <quote>and the rebate</quote> after <quote>the payment amount</quote>.</text></paragraph><paragraph id="HC647C580E3BD45E0A9D582B35F109A64"><enum>(4)</enum><header>Excluding part B drug inflation rebates from average manufacturer price</header><text display-inline="yes-display-inline">Section 1927(k)(1)(B)(i) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-8">42 U.S.C. 1396r–8(k)(1)(B)(i)</external-xref>), as amended by <external-xref legal-doc="usc" parsable-cite="usc/26/11001">section 11001(b)(3),</external-xref> is amended—</text><subparagraph id="H43AEE351C703485A920EE169C994FA2D"><enum>(A)</enum><text display-inline="yes-display-inline">in subclause (V), by striking <quote>and</quote> at the end;</text></subparagraph><subparagraph id="H4CE54B22A6E641A49E37CDE925B34B5C"><enum>(B)</enum><text>in subclause (VI), by striking the period at the end and inserting a semicolon; and</text></subparagraph><subparagraph id="H89B353D14CEC48F1A1FB129E9AE74E13"><enum>(C)</enum><text display-inline="yes-display-inline">by adding at the end the following new subclause:</text><quoted-block style="OLC" id="HEEB9E3734C5646A18A68B92127D0AEDD" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subclause id="H220C091B34AD43799F2D8481673892BD"><enum>(VII)</enum><text display-inline="yes-display-inline">rebates paid by manufacturers under section 1847A(i); and</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="H40A537F618B9402C9E65CCAB9ADD1B4F"><enum>(d)</enum><header>Funding</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there are appropriated to the Centers for Medicare & Medicaid Services, out of any money in the Treasury not otherwise appropriated, $80,000,000 for fiscal year 2022, including $12,500,000 to carry out the provisions of, including the amendments made by, this section in fiscal year 2022, and $7,500,000 to carry out the provisions of, including the amendments made by, this section in each of fiscal years 2023 through 2031, to remain available until expended.</text></subsection></section><section id="HA1BD882F868D4EE8ADDE7B3A62FA2E8D" section-type="subsequent-section" commented="no"><enum>11102.</enum><header>Medicare part D rebate by manufacturers</header><subsection id="H201AC2F32C584DB4BB01926CAE1AA8C7"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Part D of title XVIII of the Social Security Act is amended by inserting after section 1860D–14A (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-114a">42 U.S.C. 1395w–114a</external-xref>) the following new section:</text><quoted-block display-inline="no-display-inline" id="HD383C4C9EEE341AFB3A2496B4B6F7A9E" style="OLC" changed="added" reported-display-style="italic"><section id="H55742788CEE344DAB153FFBED09EBDE9"><enum>1860D–14B.</enum><header>Manufacturer rebate for certain drugs with prices increasing faster than inflation</header><subsection id="HF3055117007042739A116DC422B11F45"><enum>(a)</enum><header>Requirements</header><paragraph id="H2C67591F2A5A4B83A637EBF83E95EDF9" display-inline="no-display-inline"><enum>(1)</enum><header>Secretarial provision of information</header><text display-inline="yes-display-inline">Not later than 9 months after the end of each applicable period (as defined in subsection (g)(7)), subject to paragraph (3), the Secretary shall, for each part D rebatable drug, report to each manufacturer of such part D rebatable drug the following for such period:</text><subparagraph id="H85B2D57C666B4CA8802C2A50B173A373"><enum>(A)</enum><text>The amount (if any) of the excess annual manufacturer price increase described in subsection (b)(1)(A)(ii) for each dosage form and strength with respect to such drug and period.</text></subparagraph><subparagraph id="H8737DE2A1871465A92056545F5C02FC0"><enum>(B)</enum><text display-inline="yes-display-inline">The rebate amount specified under subsection (b) for each dosage form and strength with respect to such drug and period.</text></subparagraph></paragraph><paragraph id="H073ECB4052A746A493D9681BC4382ABC"><enum>(2)</enum><header>Manufacturer requirements</header><text display-inline="yes-display-inline">For each applicable period, the manufacturer of a part D rebatable drug, for each dosage form and strength with respect to such drug, not later than 30 days after the date of receipt from the Secretary of the information described in paragraph (1) for such period, shall provide to the Secretary a rebate that is equal to the amount specified in subsection (b) for such dosage form and strength with respect to such drug for such period.</text></paragraph><paragraph id="H9D20D4A6A63540398FEF0CC7994F9AC0"><enum>(3)</enum><header>Transition rule for reporting</header><text display-inline="yes-display-inline">The Secretary may, for each rebatable covered part D drug, delay the timeframe for reporting the information and rebate amount described in subparagraphs (A) and (B) of such paragraph for the applicable periods beginning October 1, 2022, and October 1, 2023, until not later than December 31, 2025.</text></paragraph></subsection><subsection commented="no" id="H37336598B792448581BFE85218A5388D"><enum>(b)</enum><header>Rebate amount</header><paragraph commented="no" id="HA8E10A26D54B401FAE6065DF5B9F244E"><enum>(1)</enum><header>In general</header><subparagraph id="H32D3A143D958439BBFE52109C5250A07"><enum>(A)</enum><header>Calculation</header><text display-inline="yes-display-inline">For purposes of this section, the amount specified in this subsection for a dosage form and strength with respect to a part D rebatable drug and applicable period is, subject to subparagraph (C), paragraph (5)(B), and paragraph (6), the estimated amount equal to the product of—</text><clause id="HFB7B01D938C942258F248B29C2871410" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">subject to subparagraph (B) of this paragraph, the total number of units of such dosage form and strength for each rebatable covered part D drug dispensed under this part during the applicable period; and</text></clause><clause id="H8FB7392B3B95465AAC965B65118D064B" commented="no"><enum>(ii)</enum><text>the amount (if any) by which—</text><subclause id="H65CB29DC8BA6400B9701FF7D8624C87D" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">the annual manufacturer price (as determined in paragraph (2)) paid for such dosage form and strength with respect to such part D rebatable drug for the period; exceeds</text></subclause><subclause id="HDBE22E622DBD41D4A7163F4A1F406194" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">the inflation-adjusted payment amount determined under paragraph (3) for such dosage form and strength with respect to such part D rebatable drug for the period.</text></subclause></clause></subparagraph><subparagraph commented="no" id="HF3D01F471F4D4E668218EF7F5BA0288D"><enum>(B)</enum><header>Excluded units</header><text display-inline="yes-display-inline">For purposes of subparagraph (A)(i), beginning with plan year 2026, the Secretary shall exclude from the total number of units for a dosage form and strength with respect to a part D rebatable drug, with respect to an applicable period, units of each dosage form and strength of such part D rebatable drug for which the manufacturer provides a discount under the program under section 340B of the Public Health Service Act.</text></subparagraph><subparagraph id="iddd527ae1a76847ad8ce7f620182af33e"><enum>(C)</enum><header>Reduction or waiver for shortages and severe supply chain disruptions</header><text>The Secretary shall reduce or waive the amount under subparagraph (A) with respect to a part D rebatable drug and an applicable period—</text><clause id="ida1f0c18efeee444cb45f696452fb2fea"><enum>(i)</enum><text>in the case of a part D rebatable drug that is described as currently in shortage on the shortage list in effect under section 506E of the Federal Food, Drug, and Cosmetic Act at any point during the applicable period;</text></clause><clause id="idfcf3396deb0d449abefbbf23246f2e5b"><enum>(ii)</enum><text>in the case of a generic part D rebatable drug (described in subsection (g)(1)(C)(ii)) or a biosimilar (defined as a biological product licensed under section 351(k) of the Public Health Service Act), when the Secretary determines there is a severe supply chain disruption during the applicable period, such as that caused by a natural disaster or other unique or unexpected event; and</text></clause><clause id="id336e2f3e24444a12a4681e224f26eb5f"><enum>(iii)</enum><text>in the case of a generic Part D rebatable drug (as so described), if the Secretary determines that without such reduction or waiver, the drug is likely to be described as in shortage on such shortage list during a subsequent applicable period.</text></clause></subparagraph></paragraph><paragraph id="HB5BF27A0ECC345D3825D5BDB1045A71B"><enum>(2)</enum><header>Determination of annual manufacturer price</header><text display-inline="yes-display-inline">The annual manufacturer price determined under this paragraph for a dosage form and strength, with respect to a part D rebatable drug and an applicable period, is the sum of the products of—</text><subparagraph id="H40B2F1639984402FA3709E32351B4D5C"><enum>(A)</enum><text>the average manufacturer price (as defined in subsection (g)(6)) of such dosage form and strength, as calculated for a unit of such drug, with respect to each of the calendar quarters of such period; and</text></subparagraph><subparagraph id="HB6FDCEDAABC94A78B3A70C0822D948CE"><enum>(B)</enum><text>the ratio of—</text><clause id="H1BBC943268424EB9930BF5D4B7AA2D1C"><enum>(i)</enum><text>the total number of units of such dosage form and strength reported under section 1927 with respect to each such calendar quarter of such period; to</text></clause><clause id="HDD55B5F767FB48D8B9CD36F7CC804612"><enum>(ii)</enum><text display-inline="yes-display-inline">the total number of units of such dosage form and strength reported under section 1927 with respect to such period, as determined by the Secretary.</text></clause></subparagraph></paragraph><paragraph id="H871BBAC66EBE4C8785796B8A1DFEB926"><enum>(3)</enum><header>Determination of inflation-adjusted payment amount</header><text display-inline="yes-display-inline">The inflation-adjusted payment amount determined under this paragraph for a dosage form and strength with respect to a part D rebatable drug for an applicable period, subject to paragraph (5), is—</text><subparagraph id="H3F54C3397C594CBBAA751BED9B7778D6"><enum>(A)</enum><text display-inline="yes-display-inline">the benchmark period manufacturer price determined under paragraph (4) for such dosage form and strength with respect to such drug and period; increased by</text></subparagraph><subparagraph id="H3D02D0CB454F461D8974A0EE53D33C7E"><enum>(B)</enum><text>the percentage by which the applicable period CPI–U (as defined in subsection (g)(5)) for the period exceeds the benchmark period CPI–U (as defined in subsection (g)(4)).</text></subparagraph></paragraph><paragraph id="HB1E535C4B92C4992A75774BC1E56648C"><enum>(4)</enum><header>Determination of benchmark period manufacturer price</header><text display-inline="yes-display-inline">The benchmark period manufacturer price determined under this paragraph for a dosage form and strength, with respect to a part D rebatable drug and an applicable period, is the sum of the products of—</text><subparagraph id="H676F7FC2A3E545F1A107D339E7E1BB32"><enum>(A)</enum><text display-inline="yes-display-inline">the average manufacturer price (as defined in subsection (g)(6)) of such dosage form and strength, as calculated for a unit of such drug, with respect to each of the calendar quarters of the payment amount benchmark period (as defined in subsection (g)(3)); and</text></subparagraph><subparagraph id="H41176EA79ACE4BB4BF387AE0E2FF96C6"><enum>(B)</enum><text>the ratio of—</text><clause id="H2B4FA8CC95194DC0A02887C94B9A6E8C"><enum>(i)</enum><text display-inline="yes-display-inline">the total number of units reported under section 1927 of such dosage form and strength with respect to each such calendar quarter of such payment amount benchmark period; to</text></clause><clause id="HDBA6E6442E744E64803A620C462937E9"><enum>(ii)</enum><text display-inline="yes-display-inline">the total number of units reported under section 1927 of such dosage form and strength with respect to such payment amount benchmark period.</text></clause></subparagraph></paragraph><paragraph id="HC0150059E8864A04BC146D19904EC9DF"><enum>(5)</enum><header>Special treatment of certain drugs and exemption</header><subparagraph commented="no" id="HB20D353E8355406295A7FB31F800C71C"><enum>(A)</enum><header>Subsequently approved drugs</header><text display-inline="yes-display-inline">In the case of a part D rebatable drug first approved or licensed by the Food and Drug Administration after October 1, 2021, subparagraphs (A) and (B) of paragraph (4) shall be applied as if the term <term>payment amount benchmark period</term> were defined under subsection (g)(3) as the first calendar year beginning after the day on which the drug was first marketed and subparagraph (B) of paragraph (3) shall be applied as if the term <term>benchmark period CPI–U</term> were defined under subsection (g)(4) as if the reference to <quote>January 2021</quote> under such subsection were a reference to <quote>January of the first year beginning after the date on which the drug was first marketed</quote>.</text></subparagraph><subparagraph commented="no" id="HBD6052520CBF4B659682277D4F8233DA"><enum>(B)</enum><header>Treatment of new formulations</header><clause commented="no" id="HA04712749A4544B48E33113BC992077A"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of a part D rebatable drug that is a line extension of a part D rebatable drug that is an oral solid dosage form, the Secretary shall establish a formula for determining the rebate amount under paragraph (1) and the inflation adjusted payment amount under paragraph (3) with respect to such part D rebatable drug and an applicable period, consistent with the formula applied under subsection (c)(2)(C) of section 1927 for determining a rebate obligation for a rebate period under such section.</text></clause><clause commented="no" id="H4EDBE95AA10F4648937B93F36A07AEA5"><enum>(ii)</enum><header>Line extension defined</header><text>In this subparagraph, the term <term>line extension</term> means, with respect to a part D rebatable drug, a new formulation of the drug, such as an extended release formulation, but does not include an abuse-deterrent formulation of the drug (as determined by the Secretary), regardless of whether such abuse-deterrent formulation is an extended release formulation.</text></clause></subparagraph><subparagraph id="HB7117A3169B448E28F0DF8396C229625"><enum>(C)</enum><header>Selected drugs</header><text display-inline="yes-display-inline">In the case of a part D rebatable drug that is a selected drug (as defined in section 1192(c)) with respect to a price applicability period (as defined in section 1191(b)(2)), in the case such drug is no longer considered to be a selected drug under section 1192(c), for each applicable period (as defined under subsection (g)(7)) beginning after the price applicability period with respect to such drug, subparagraphs (A) and (B) of paragraph (4) shall be applied as if the term <term>payment amount benchmark period</term> were defined under subsection (g)(3) as the last year beginning during such price applicability period with respect to such selected drug and subparagraph (B) of paragraph (3) shall be applied as if the term <term>benchmark period CPI–U</term> were defined under subsection (g)(4) as if the reference to <quote>January 2021</quote> under such subsection were a reference to <quote>January of the last year beginning during such price applicability period with respect to such drug</quote>.</text></subparagraph></paragraph><paragraph id="id0503B8AD4EFA4F08862F4978556A084C"><enum>(6)</enum><header>Reconciliation in case of revised information</header><text>The Secretary shall provide for a method and process under which, in the case where a PDP sponsor of a prescription drug plan or an MA organization offering an MA–PD plan submits revisions to the number of units of a rebatable covered part D drug dispensed, the Secretary determines, pursuant to such revisions, adjustments, if any, to the calculation of the amount specified in this subsection for a dosage form and strength with respect to such part D rebatable drug and an applicable period and reconciles any overpayments or underpayments in amounts paid as rebates under this subsection. Any identified underpayment shall be rectified by the manufacturer not later than 30 days after the date of receipt from the Secretary of information on such underpayment.</text></paragraph></subsection><subsection id="H569672053B494EABA2EB5F45EBB5E0B7"><enum>(c)</enum><header>Rebate deposits</header><text display-inline="yes-display-inline">Amounts paid as rebates under subsection (b) shall be deposited into the Medicare Prescription Drug Account in the Federal Supplementary Medical Insurance Trust Fund established under section 1841.</text></subsection><subsection id="H0DD1EF3B19CD4DF4AE4E2C0DEC959FA4"><enum>(d)</enum><header>Information</header><text display-inline="yes-display-inline">For purposes of carrying out this section, the Secretary shall use information submitted by—</text><paragraph id="id9E5C13FC7533431EA4539AAD6E216468"><enum>(1)</enum><text display-inline="yes-display-inline">manufacturers under section 1927(b)(3);</text></paragraph><paragraph id="idA15E2454838F4F51A2E7C55DF5C2E264"><enum>(2)</enum><text display-inline="yes-display-inline">States under section 1927(b)(2)(A); and</text></paragraph><paragraph id="id7525FEBDC8CC46FA81A2F02BAB08A3B5"><enum>(3)</enum><text>PDP sponsors of prescription drug plans and MA organization offering MA–PD plans under this part.</text></paragraph></subsection><subsection id="H7B28847FE30A4123AA4749DF323D5387"><enum>(e)</enum><header>Civil money penalty</header><text display-inline="yes-display-inline">If a manufacturer of a part D rebatable drug has failed to comply with the requirement under subsection (a)(2) with respect to such drug for an applicable period, the manufacturer shall be subject to a civil money penalty in an amount equal to 125 percent of the amount specified in subsection (b) for such drug for such period. The provisions of section 1128A (other than subsections (a) (with respect to amounts of penalties or additional assessments) and (b)) shall apply to a civil money penalty under this subsection in the same manner as such provisions apply to a penalty or proceeding under section 1128A(a). </text></subsection><subsection id="H973509FAB23041B3A97A6C69F08877E4"><enum>(f)</enum><header>Limitation on administrative or judicial review</header><text>There shall be no administrative or judicial review of any of the following:</text><paragraph id="id97aaae622a454ec1baef05b7c943919b"><enum>(1)</enum><text>The determination of units under this section.</text></paragraph><paragraph id="idd5d3d9a7ef52453081b86b1d6c4d8d35"><enum>(2)</enum><text>The determination of whether a drug is a part D rebatable drug under this section.</text></paragraph><paragraph id="idb968a8a65f194dd6a5f7d9be55a8a33e"><enum>(3)</enum><text>The calculation of the rebate amount under this section. </text></paragraph></subsection><subsection id="HEBFDAE142E474F4CA3620792004E717C"><enum>(g)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section:</text><paragraph id="id262880392c6e4e3eb5951949a1ee05c7"><enum>(1)</enum><header>Part d rebatable drug</header><subparagraph id="id852fb2754b904390974bd227ee210379"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), the term <term>part D rebatable drug</term> means, with respect to an applicable period, a drug or biological described in subparagraph (C) that is a covered part D drug (as such term is defined under section 1860D–2(e)).</text></subparagraph><subparagraph id="idbf61fad7eff14e81b7fc0e0a1fe16e63"><enum>(B)</enum><header>Exclusion</header><clause id="id1df10d399f6540b48753ea5ca346ed3d"><enum>(i)</enum><header>In general</header><text>Such term shall, with respect to an applicable period, not include a drug or biological if the average annual total cost under this part for such period per individual who uses such a drug or biological, as determined by the Secretary, is less than, subject to clause (ii), $100, as determined by the Secretary using the most recent data available or, if data is not available, as estimated by the Secretary.</text></clause><clause id="idc05a791f6da743ab95f883659c62e317"><enum>(ii)</enum><header>Increase</header><text>The dollar amount applied under clause (i)—</text><subclause id="id663707122eff4fe58501ceaf83967473"><enum>(I)</enum><text>for the applicable period beginning October 1, 2023, shall be the dollar amount specified under such clause for the applicable period beginning October 1, 2022, increased by the percentage increase in the consumer price index for all urban consumers (United States city average) for the 12-month period beginning with October of 2023; and</text></subclause><subclause id="idfb9f0c3962c54c1d8e18571366e2a09f"><enum>(II)</enum><text>for a subsequent applicable period, shall be the dollar amount specified in this clause for the previous applicable period, increased by the percentage increase in the consumer price index for all urban consumers (United States city average) for the 12-month period beginning with October of the previous period.</text></subclause><continuation-text continuation-text-level="clause">Any dollar amount specified under this clause that is not a multiple of $10 shall be rounded to the nearest multiple of $10.</continuation-text></clause></subparagraph><subparagraph id="ida3dfeb1e9c9941f38c58cb4a1c0b0721"><enum>(C)</enum><header>Drug or biological described</header><text>A drug or biological described in this subparagraph is a drug or biological that, as of the first day of the applicable period involved, is—</text><clause id="id6d43a89c975e400b9b9875fa41f1457f"><enum>(i)</enum><text>a drug approved under a new drug application under section 505(c) of the Federal Food, Drug, and Cosmetic Act;</text></clause><clause id="idac34b0a585de491cb1e4b3cf8b0a8f7f"><enum>(ii)</enum><text>a drug approved under an abbreviated new drug application under section 505(j) of the Federal Food, Drug, and Cosmetic Act, in the case where—</text><subclause id="id99ac3d2955b84d888fe24b7db8423c74"><enum>(I)</enum><text>the reference listed drug approved under section 505(c) of the Federal Food, Drug, and Cosmetic Act, including any <quote>authorized generic drug</quote> (as that term is defined in section 505(t)(3) of the Federal Food, Drug, and Cosmetic Act), is not being marketed, as identified in the Food and Drug Administration’s National Drug Code Directory;</text></subclause><subclause id="ided544a06b3184360a19b56bab78008dc"><enum>(II)</enum><text>there is no other drug approved under section 505(j) of the Federal Food, Drug, and Cosmetic Act that is rated as therapeutically equivalent (under the Food and Drug Administration’s most recent publication of <quote>Approved Drug Products with Therapeutic Equivalence Evaluations</quote>) and that is being marketed, as identified in the Food and Drug Administration’s National Drug Code Directory;</text></subclause><subclause id="id95e745b68ee64e138298fdab04c4cf25"><enum>(III)</enum><text>the manufacturer is not a <quote>first applicant</quote> during the <quote>180-day exclusivity period</quote>, as those terms are defined in section 505(j)(5)(B)(iv) of the Federal Food, Drug, and Cosmetic Act; and</text></subclause><subclause id="ida04be8a052bc4493ab8c583f3d550449"><enum>(IV)</enum><text>the manufacturer is not a <quote>first approved applicant</quote> for a competitive generic therapy, as that term is defined in section 505(j)(5)(B)(v) of the Federal Food, Drug, and Cosmetic Act; or</text></subclause></clause><clause id="idd476f1cd883a41d5af6a92001e2128c3"><enum>(iii)</enum><text>a biological licensed under section 351 of the Public Health Service Act.</text></clause></subparagraph></paragraph><paragraph id="H45CA53EEE5ED4C75A650D574C9613D6D"><enum>(2)</enum><header>Unit</header><text display-inline="yes-display-inline">The term <term>unit</term> means, with respect to a part D rebatable drug, the lowest dispensable amount (such as a capsule or tablet, milligram of molecules, or grams) of the part D rebatable drug, as reported under section 1927.</text></paragraph><paragraph id="HF98EA9784B8645FCA1CA0E109266EF78"><enum>(3)</enum><header>Payment amount benchmark period</header><text display-inline="yes-display-inline">The term <term>payment amount benchmark period</term> means the period beginning January 1, 2021, and ending in the month immediately prior to October 1, 2021.</text></paragraph><paragraph id="H065D8E5675384B4FBF302FAAF530D2DA"><enum>(4)</enum><header>Benchmark period CPI–U</header><text display-inline="yes-display-inline">The term <term>benchmark period CPI–U</term> means the consumer price index for all urban consumers (United States city average) for January 2021.</text></paragraph><paragraph id="H151A023EDDD9406FAC329915DE24DE81"><enum>(5)</enum><header>Applicable period CPI–U</header><text display-inline="yes-display-inline">The term <term>applicable period CPI–U</term> means, with respect to an applicable period, the consumer price index for all urban consumers (United States city average) for the first month of such applicable period.</text></paragraph><paragraph id="H6269AE456D2A49BB98FD8C3DF1CD6D8E"><enum>(6)</enum><header>Average manufacturer price</header><text display-inline="yes-display-inline">The term <term>average manufacturer price</term> has the meaning, with respect to a part D rebatable drug of a manufacturer, given such term in section 1927(k)(1), with respect to a covered outpatient drug of a manufacturer for a rebate period under section 1927.</text></paragraph><paragraph id="H1FEFCED74B58438E91A7E6B0B7EB1DC8"><enum>(7)</enum><header>Applicable period</header><text>The term <term>applicable period</term> means a 12-month period beginning with October 1 of a year (beginning with October 1, 2022).</text></paragraph></subsection><subsection id="H38EC4EA759ED47A4B4CCC8E6CB78A91C" commented="no"><enum>(h)</enum><header>Implementation for 2022, 2023, and 2024</header><text>The Secretary shall implement this section for 2022, 2023, and 2024 by program instruction or other forms of program guidance.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H6DB473CC989D4E29A9CAE077F6CBBEE5"><enum>(b)</enum><header>Conforming amendments</header><paragraph id="H2F5679BDD370489D9A642ACABF273448"><enum>(1)</enum><header>To part B ASP calculation</header><text display-inline="yes-display-inline">Section 1847A(c)(3) of the Social Security Act (42 U.S.C. 1395w–3a(c)(3)), as amended by <external-xref legal-doc="usc" parsable-cite="usc/26/11101">section 11101(c)(1),</external-xref> is amended by striking <quote>subsection (i) or section 1927</quote> and inserting <quote>subsection (i), section 1927, or section 1860D–14B</quote>.</text></paragraph><paragraph id="HCD8973903DAC4F8BA1409FE0EE7D35D1" commented="no"><enum>(2)</enum><header>Excluding part D drug inflation rebate from best price</header><text display-inline="yes-display-inline">Section 1927(c)(1)(C)(ii)(I) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-8">42 U.S.C. 1396r–8(c)(1)(C)(ii)(I)</external-xref>), as amended by <external-xref legal-doc="usc" parsable-cite="usc/26/11101">section 11101(c)(2),</external-xref> is amended by striking <quote>or section 1847A(i)</quote> and inserting <quote>, section 1847A(i), or section 1860D–14B</quote>.</text></paragraph><paragraph id="H107649CF590F4CF891FB9339F0E8F468"><enum>(3)</enum><header>Coordination with Medicaid rebate information disclosure</header><text display-inline="yes-display-inline">Section 1927(b)(3)(D)(i) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-8">42 U.S.C. 1396r–8(b)(3)(D)(i)</external-xref>), as amended by sections 11002(b) and 11101(c)(3), is amended by striking <quote>or section 1192(f), including rebates under paragraph (4) of such section</quote> and inserting <quote>, section 1192(f), including rebates under paragraph (4) of such section, or section 1860D–14B</quote>.</text></paragraph><paragraph id="HD111B6AFDAAD449EBED2E123C31071C9"><enum>(4)</enum><header>Excluding part D drug inflation rebates from average manufacturer price</header><text display-inline="yes-display-inline">Section 1927(k)(1)(B)(i) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-8">42 U.S.C. 1396r–8(k)(1)(B)(i)</external-xref>), as amended by section 11001(b)(3) and <external-xref legal-doc="usc" parsable-cite="usc/26/11101">section 11101(c)(4),</external-xref> is amended by adding at the end the following new subclause:</text><subparagraph id="idC90DA619743B48148136BC0426C5D239"><enum>(A)</enum><text display-inline="yes-display-inline">in subclause (VI), by striking <quote>and</quote> at the end;</text></subparagraph><subparagraph id="id626918058CF24694A02624D4DBBEAFBB"><enum>(B)</enum><text>in subclause (VII), by striking the period at the end and inserting a semicolon; and</text></subparagraph><subparagraph id="id36798E99C24344CE9C38BFF5B71BCCBB"><enum>(C)</enum><text display-inline="yes-display-inline">by adding at the end the following new subclause: </text><quoted-block style="OLC" id="HD30FA27991284A7998D59DCEC6537E0A" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subclause id="HB975801CF8664D2987AB619D1ACEE4E2"><enum>(VIII)</enum><text display-inline="yes-display-inline">rebates paid by manufacturers under section 1860D–14B.</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="H88E160D7CB8D438E9693D2ADF5ED270F"><enum>(c)</enum><header>Funding</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there are appropriated to the Centers for Medicare & Medicaid Services, out of any money in the Treasury not otherwise appropriated, $80,000,000 for fiscal year 2022, including $12,500,000 to carry out the provisions of, including the amendments made by, this section in fiscal year 2022, and $7,500,000 to carry out the provisions of, including the amendments made by, this section in each of fiscal years 2023 through 2031, to remain available until expended.</text></subsection></section></part><part id="H80E15F09E1BD4FEDB1C3347361785325"><enum>3</enum><header>Part D Improvements and Maximum Out-of-Pocket Cap for Medicare Beneficiaries</header><section id="H58359647DE214A6F8F690FA8C96B50E4"><enum>11201.</enum><header>Medicare part D benefit redesign</header><subsection id="H1F95554A32F348C78A3A3106BB0315B7"><enum>(a)</enum><header>Benefit structure redesign</header><text>Section 1860D–2(b) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-102">42 U.S.C. 1395w–102(b)</external-xref>) is amended—</text><paragraph id="HD0CF21A504E94806B36D4243EAC1A504"><enum>(1)</enum><text>in paragraph (2)—</text><subparagraph id="H834569BF1EBB41DAAAF7B966F2A380B0"><enum>(A)</enum><text>in subparagraph (A), in the matter preceding clause (i), by inserting <quote>for a year preceding 2025 and for costs above the annual deductible specified in paragraph (1) and up to the annual out-of-pocket threshold specified in paragraph (4)(B) for 2025 and each subsequent year</quote> after <quote>paragraph (3)</quote>;</text></subparagraph><subparagraph id="HC8801D1721BE4848B076E4B7370C7BA2"><enum>(B)</enum><text>in subparagraph (C)—</text><clause id="H19D4BEBCF8D74B02977DC5C1D75A3A4A"><enum>(i)</enum><text>in clause (i), in the matter preceding subclause (I), by inserting <quote>for a year preceding 2025, </quote> after <quote>paragraph (4),</quote>; and</text></clause><clause id="H2AA99945590B430A87C3C3AE968D40E0"><enum>(ii)</enum><text>in clause (ii)(III), by striking <quote>and each subsequent year</quote> and inserting <quote>through 2024</quote>; and</text></clause></subparagraph><subparagraph id="HCC1118C369F244F9B9CD63A40A7A9329"><enum>(C)</enum><text>in subparagraph (D)—</text><clause id="HADC89C9114144E50A669F3B40A2A25C3"><enum>(i)</enum><text>in clause (i)—</text><subclause id="HAEF8474E53D344F09AA30ED8E8D7AEDB"><enum>(I)</enum><text>in the matter preceding subclause (I), by inserting <quote>for a year preceding 2025, </quote> after <quote>paragraph (4),</quote>; and</text></subclause><subclause id="HF69A2E6173E74A83B2D6D3B9B9694047"><enum>(II)</enum><text>in subclause (I)(bb), by striking <quote>a year after 2018</quote> and inserting <quote>each of years 2019 through 2024</quote>; and</text></subclause></clause><clause id="HC21D5545E29C42D1BF28F659940B51E6"><enum>(ii)</enum><text>in clause (ii)(V), by striking <quote>2019 and each subsequent year</quote> and inserting <quote>each of years 2019 through 2024</quote>;</text></clause></subparagraph></paragraph><paragraph id="HA2CFCF3CAEA5451D95597C6AC8E4AA09"><enum>(2)</enum><text>in paragraph (3)(A)—</text><subparagraph id="HF3ECC9528C304EF48944C11717F6829E"><enum>(A)</enum><text>in the matter preceding clause (i), by inserting <quote>for a year preceding 2025,</quote> after <quote>and (4),</quote>; and</text></subparagraph><subparagraph id="H6D63C6D2C7A54DBDB0C91DAEC794A7F2"><enum>(B)</enum><text>in clause (ii), by striking <quote>for a subsequent year</quote> and inserting <quote>for each of years 2007 through 2024</quote>; and</text></subparagraph></paragraph><paragraph id="H82808B5D1DDC42D8BE0478E3962A8128"><enum>(3)</enum><text>in paragraph (4)—</text><subparagraph id="HD8570015179B4FC6B56F82449193EF0F"><enum>(A)</enum><text>in subparagraph (A)—</text><clause id="HCD730114BBE841F496B0B367C9522B4D"><enum>(i)</enum><text>in clause (i)—</text><subclause id="H7013AF4AC10D43FABA3D1048B3C667EC"><enum>(I)</enum><text>by redesignating subclauses (I) and (II) as items (aa) and (bb), respectively, and moving the margin of each such redesignated item 2 ems to the right;</text></subclause><subclause id="HA67FF8617D6E4D5A8E142657D93606F6"><enum>(II)</enum><text>in the matter preceding item (aa), as redesignated by subclause (I), by striking <quote>is equal to the greater of—</quote> and inserting “is equal to—</text><quoted-block display-inline="no-display-inline" id="H875FE341323D4E75843AD2144AADCB47" style="OLC" changed="added" reported-display-style="italic"><subclause id="HDA09DCEC3EEA45DBA0AF4B122A341163"><enum>(I)</enum><text>for a year preceding 2024, the greater of—</text></subclause><after-quoted-block>;</after-quoted-block></quoted-block></subclause><subclause id="HB38A84AD003F4FC1826F911939D85970"><enum>(III)</enum><text>by striking the period at the end of item (bb), as redesignated by subclause (I), and inserting <quote>; and</quote>; and</text></subclause><subclause id="HFF8E8267F4BC45B491DBA2328B701547"><enum>(IV)</enum><text>by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="HCC9B97C8C5A64021AB5AE6B87B4578EF" style="OLC" changed="added" reported-display-style="italic"><subclause id="HA5B21EE1D20A4BAB842555B53E46B950"><enum>(II)</enum><text>for 2024 and each succeeding year, $0.</text></subclause><after-quoted-block>; and</after-quoted-block></quoted-block></subclause></clause><clause id="HA5256AF3CF7544F1B038673B67FE5EEF"><enum>(ii)</enum><text display-inline="yes-display-inline">in clause (ii)—</text><subclause id="HBCC7E5ADB0CC477C8645BCA7F050506B"><enum>(I)</enum><text>by striking <quote>clause (i)(I)</quote> and inserting <quote>clause (i)(I)(aa)</quote>; and</text></subclause><subclause id="HBD227062FC044ECAB9DD43D32E1EEE6E"><enum>(II)</enum><text>by adding at the end the following new sentence: <quote>The Secretary shall continue to calculate the dollar amounts specified in clause (i)(I)(aa), including with the adjustment under this clause, after 2023 for purposes of section 1860D–14(a)(1)(D)(iii).</quote>;</text></subclause></clause></subparagraph><subparagraph id="HF221B9A6105D4C9C9D5FA0EA8922D21F"><enum>(B)</enum><text>in subparagraph (B)—</text><clause id="H4A02F13FF82D4AD6B4623D65C20F3DB4"><enum>(i)</enum><text>in clause (i)—</text><subclause id="HA3473543301A40DDB0F9AE208C2014BA"><enum>(I)</enum><text>in subclause (V), by striking <quote>or</quote> at the end;</text></subclause><subclause id="H8404771B8F824F8EA40DE06E17D5AA4D"><enum>(II)</enum><text>in subclause (VI)—</text><item id="H18B016F29FAF44C3B379D99176F6D497"><enum>(aa)</enum><text>by striking <quote>for a subsequent year</quote> and inserting <quote>for each of years 2021 through 2024</quote>; and</text></item><item id="HFE4089EE401D4C35BF0FE9FBD81C1774"><enum>(bb)</enum><text>by striking the period at the end and inserting a semicolon; and</text></item></subclause><subclause id="H38F0953D358D4D379547A2FE146A3951"><enum>(III)</enum><text>by adding at the end the following new subclauses:</text><quoted-block display-inline="no-display-inline" id="H54054BBCC87E4AD5B5CA4E6C7BB5A98C" style="OLC" changed="added" reported-display-style="italic"><subclause id="HEB7646F4D087475AA85CCDE0B62A51C5"><enum>(VII)</enum><text>for 2025, is equal to $2,000; or</text></subclause><subclause id="HD227E4484223438B9B6A7DCC532768F7"><enum>(VIII)</enum><text>for a subsequent year, is equal to the amount specified in this subparagraph for the previous year, increased by the annual percentage increase described in paragraph (6) for the year involved.</text></subclause><after-quoted-block>; and</after-quoted-block></quoted-block></subclause></clause><clause id="HAE25CA9E11C24DEB9532627D78BF15FA"><enum>(ii)</enum><text>in clause (ii), by striking <quote>clause (i)(II)</quote> and inserting <quote>clause (i)</quote>;</text></clause></subparagraph><subparagraph id="H897C655D94944C138C103863C72B0073"><enum>(C)</enum><text>in subparagraph (C)—</text><clause id="idE62207171D0048A0B398C1862808EBB8"><enum>(i)</enum><text>in clause (i), by striking <quote>and for amounts</quote> and inserting <quote>and, for a year preceding 2025, for amounts</quote>; and</text></clause><clause id="idDEF28A3A829D496EA9DA4473EC985E8A"><enum>(ii)</enum><text>in clause (iii)—</text><subclause id="id6C606AC1553740FAB2D6C0452C704D85"><enum>(I)</enum><text>by redesignating subclauses (I) through (IV) as items (aa) through (dd) and indenting appropriately;</text></subclause><subclause id="idE3019507BE5C4701A4378F56EE32B6C9"><enum>(II)</enum><text>by striking <quote>if such costs are borne or paid</quote> and inserting “if such costs—</text><quoted-block style="OLC" display-inline="no-display-inline" id="id014924DE00E74DE2874663563DB1F823" changed="added" reported-display-style="italic"><subclause id="id5FDCC80472934D7EA5BE2AD4DEC75D19"><enum>(I)</enum><text>are borne or paid—</text></subclause><after-quoted-block>; and</after-quoted-block></quoted-block></subclause><subclause id="idF99010F7262E4F54A2E9EA8B16513F65"><enum>(III)</enum><text>in item (dd), by striking the period at the end and inserting <quote>; or</quote>; and</text></subclause><subclause id="id8EE44C80D0864C7386D3C4B7A6247DB3"><enum>(IV)</enum><text>by adding at the end the following new subclause:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id76590802D8F34723B5161343CFF0D571" changed="added" reported-display-style="italic"><subclause commented="no" id="id3E026C1575144C19B282A07B37896BCE"><enum>(II)</enum><text>for 2025 and subsequent years, are reimbursed through insurance, a group health plan, or certain other third party payment arrangements, but not including the coverage provided by a prescription drug plan or an MA–PD plan that is basic prescription drug coverage (as defined in subsection (a)(3)) or any payments by a manufacturer under the manufacturer discount program under section 1860D–14C.</text></subclause><after-quoted-block>; and</after-quoted-block></quoted-block></subclause></clause></subparagraph><subparagraph commented="no" id="HCBE30F8C58654A22B83C52F0DE9F2546"><enum>(D)</enum><text>in subparagraph (E), by striking <quote>In applying</quote> and inserting <quote>For each of years 2011 through 2024, in applying</quote>.</text></subparagraph></paragraph></subsection><subsection id="H0AFB26F0B1B343F790F58581D7E7AD0F"><enum>(b)</enum><header>Reinsurance payment amount</header><text display-inline="yes-display-inline">Section 1860D–15(b) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-115">42 U.S.C. 1395w–115(b)</external-xref>) is amended—</text><paragraph id="HB0C295E684194305AFBBFCF746978189"><enum>(1)</enum><text>in paragraph (1)—</text><subparagraph id="HEE52010C317F4512ADA2AD876D996EEC"><enum>(A)</enum><text>by striking <quote>equal to 80 percent</quote> and inserting “equal to—</text><quoted-block style="OLC" display-inline="no-display-inline" id="HB19648F7C5C041F1A5714225DBAFC75F" changed="added" reported-display-style="italic"><subparagraph id="H7F363BCB0D144AFF8C4A5CC2A2EB28F2"><enum>(A)</enum><text>for a year preceding 2025, 80 percent</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph><subparagraph id="H4A4B431D48A74B6E96AA1F4AB6E3CC19"><enum>(B)</enum><text>in subparagraph (A), as added by subparagraph (A), by striking the period at the end and inserting <quote>; and</quote>; and</text></subparagraph><subparagraph id="H9C4395DB5F9C43D995A35732CE7387B7"><enum>(C)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H7C9FF5B8743F4C12AA66A58B7FA5C6D8" changed="added" reported-display-style="italic"><subparagraph id="H4E6BC657DF56487BB2105A86CB11DFCF"><enum>(B)</enum><text>for 2025 and each subsequent year, the sum of—</text><clause id="HEE68629233F040D4AC4504B3C883ABE0"><enum>(i)</enum><text>with respect to applicable drugs (as defined in section 1860D–14C(g)(2)), an amount equal to 20 percent of such allowable reinsurance costs attributable to that portion of gross covered prescription drug costs as specified in paragraph (3) incurred in the coverage year after such individual has incurred costs that exceed the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B); and</text></clause><clause id="H28B221FB8FC247EC8B53077C7A9178FD"><enum>(ii)</enum><text>with respect to covered part D drugs that are not applicable drugs (as so defined), an amount equal to 40 percent of such allowable reinsurance costs attributable to that portion of gross covered prescription drug costs as specified in paragraph (3) incurred in the coverage year after such individual has incurred costs that exceed the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B). </text></clause></subparagraph><after-quoted-block>; </after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="H6C1FE43703644E9AA3938A627237D8C3"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (2)—</text><subparagraph id="HBBA96FC4FF624608B7EA2E3A2D968DCD"><enum>(A)</enum><text>by striking <quote><header-in-text level="paragraph" style="OLC">COSTS</header-in-text>.—For purposes</quote> and inserting </text><quoted-block style="OLC" id="HDC5349877B974E64BB91C14C44D3A2C4" display-inline="yes-display-inline" changed="added" reported-display-style="italic"><text><header-in-text level="paragraph" style="OLC">Costs.—</header-in-text></text><subparagraph id="H92EF4152C8BA4F6CBD031E5B9A8899DA"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Subject to subparagraph (B), for purposes</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph><subparagraph id="HECFA520FE0F8486592AFBF3E0667D9D5"><enum>(B)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block style="OLC" id="HBADED92F3F5F4AB0B1DC29100A3E1D2E" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subparagraph id="H86B21047BA4C4528A12BD56597EF0F3F"><enum>(B)</enum><header>Inclusion of manufacturer discounts on applicable drugs</header><text display-inline="yes-display-inline">For purposes of applying subparagraph (A), the term ‘allowable reinsurance costs’ shall include the portion of the negotiated price (as defined in section 1860D–14C(g)(6)) of an applicable drug (as defined in section 1860D–14C(g)(2)) that was paid by a manufacturer under the manufacturer discount program under section 1860D–14C.</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="H87C959BDB3824A8DA7DF94ED75E91882"><enum>(3)</enum><text>in paragraph (3)—</text><subparagraph id="H08B0B8721B9F4FB59B7AF9C638F9EDE8"><enum>(A)</enum><text display-inline="yes-display-inline">in the first sentence, by striking <quote>For purposes</quote> and inserting <quote>Subject to paragraph (2)(B), for purposes</quote>; and</text></subparagraph><subparagraph id="H61765576AE4649A3AB307BFD577B9EA7"><enum>(B)</enum><text display-inline="yes-display-inline">in the second sentence, by inserting <quote>(or, with respect to 2025 and subsequent years, in the case of an applicable drug, as defined in section 1860D–14C(g)(2), by a manufacturer)</quote> after <quote>by the individual or under the plan</quote>.</text></subparagraph></paragraph></subsection><subsection id="H074F1D5F5FA943218C2A099D4C8FE14C"><enum>(c)</enum><header>Manufacturer discount program</header><paragraph id="H1529BB9B50814DD1BD043FE73A0662F0"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Part D of title XVIII of the Social Security Act (42 U.S.C. 1395w–101 through <external-xref legal-doc="usc" parsable-cite="usc/42/1395w-153">42 U.S.C. 1395w–153</external-xref>), as amended by <external-xref legal-doc="usc" parsable-cite="usc/26/11102">section 11102,</external-xref> is amended by inserting after section 1860D–14B the following new sections:</text><quoted-block display-inline="no-display-inline" id="HBF4E7A7BD1824561B292102F3125DDD9" style="OLC" changed="added" reported-display-style="italic"><section id="H1CE4778B4E2C413A8463749CAC6FACCE"><enum>1860D–14C.</enum><header>Manufacturer discount program</header><subsection id="H8E4F33FEC60547CCB8C2CDB91D94FBC8"><enum>(a)</enum><header>Establishment</header><text>The Secretary shall establish a manufacturer discount program (in this section referred to as the <quote>program</quote>). Under the program, the Secretary shall enter into agreements described in subsection (b) with manufacturers and provide for the performance of the duties described in subsection (c).</text></subsection><subsection id="HDC431A69D1E74AC0A74C5E2250F56EBB"><enum>(b)</enum><header>Terms of agreement</header><paragraph commented="no" id="HEDE90C7835F94D6CAD78A91D4F86EE91"><enum>(1)</enum><header>In general</header><subparagraph commented="no" id="HFAF5425C62F642F394322FA501F270EF"><enum>(A)</enum><header>Agreement</header><text>An agreement under this section shall require the manufacturer to provide, in accordance with this section, discounted prices for applicable drugs of the manufacturer that are dispensed to applicable beneficiaries on or after January 1, 2025. </text></subparagraph><subparagraph id="HF131E66EB555494F8E9B791CF8C6F7E7"><enum>(B)</enum><header>Clarification</header><text display-inline="yes-display-inline">Nothing in this section shall be construed as affecting—</text><clause id="HD6DD1C25182B4DD391B93C2A694B9639"><enum>(i)</enum><text>the application of a coinsurance of 25 percent of the negotiated price, as applied under paragraph (2)(A) of section 1860D–2(b), for costs described in such paragraph; or</text></clause><clause id="HA77318CCA1F44E7EA93243D6A3A98250"><enum>(ii)</enum><text>the application of the copayment amount described in paragraph (4)(A) of such section, with respect to costs described in such paragraph.</text></clause></subparagraph><subparagraph commented="no" id="HE8F660487E724705A8EEA0427CCA7BBA"><enum>(C)</enum><header>Timing of agreement</header><clause commented="no" id="H7737AB42177446F3BE580589718DCBD4"><enum>(i)</enum><header>Special rule for 2025</header><text display-inline="yes-display-inline">In order for an agreement with a manufacturer to be in effect under this section with respect to the period beginning on January 1, 2025, and ending on December 31, 2025, the manufacturer shall enter into such agreement not later than March 1, 2024.</text></clause><clause commented="no" id="H80FDBBB883DA44848793F83427FA662F"><enum>(ii)</enum><header>2026 and subsequent years</header><text display-inline="yes-display-inline">In order for an agreement with a manufacturer to be in effect under this section with respect to plan year 2026 or a subsequent plan year, the manufacturer shall enter into such agreement not later than a calendar quarter or semi-annual deadline established by the Secretary.</text></clause></subparagraph></paragraph><paragraph commented="no" id="H7D4AC747441843E2B5F9C41584999D4D"><enum>(2)</enum><header>Provision of appropriate data</header><text>Each manufacturer with an agreement in effect under this section shall collect and have available appropriate data, as determined by the Secretary, to ensure that it can demonstrate to the Secretary compliance with the requirements under the program.</text></paragraph><paragraph commented="no" id="H43B34FDDD77444A484EBCF0673282439"><enum>(3)</enum><header>Compliance with requirements for administration of program</header><text>Each manufacturer with an agreement in effect under this section shall comply with requirements imposed by the Secretary, as applicable, for purposes of administering the program, including any determination under subparagraph (A) of subsection (c)(1) or procedures established under such subsection (c)(1).</text></paragraph><paragraph id="H0F7C5CF944BA44DA86E1B1CC56435471"><enum>(4)</enum><header>Length of agreement</header><subparagraph commented="no" id="H71A3910569EE41FEA602B34FE5D988FD"><enum>(A)</enum><header>In general</header><text>An agreement under this section shall be effective for an initial period of not less than 12 months and shall be automatically renewed for a period of not less than 1 year unless terminated under subparagraph (B).</text></subparagraph><subparagraph id="H55882202D98D48B1B1851B19BA275340"><enum>(B)</enum><header>Termination</header><clause id="H082CA283008F4B29944320AB1C528884"><enum>(i)</enum><header>By the Secretary</header><text>The Secretary shall provide for termination of an agreement under this section for a knowing and willful violation of the requirements of the agreement or other good cause shown. Such termination shall not be effective earlier than 30 days after the date of notice to the manufacturer of such termination. The Secretary shall provide, upon request, a manufacturer with a hearing concerning such a termination, and such hearing shall take place prior to the effective date of the termination with sufficient time for such effective date to be repealed if the Secretary determines appropriate.</text></clause><clause id="HD0FD09C807AF4F618245D565CFF3D5C0"><enum>(ii)</enum><header>By a manufacturer</header><text>A manufacturer may terminate an agreement under this section for any reason. Any such termination shall be effective, with respect to a plan year—</text><subclause commented="no" id="H6B5A5E8BCDFB47D88D32E773507E9FA9"><enum>(I)</enum><text>if the termination occurs before January 31 of a plan year, as of the day after the end of the plan year; and</text></subclause><subclause commented="no" id="HF1F5BC76CD684AA38AA124E5F32ED5D8"><enum>(II)</enum><text>if the termination occurs on or after January 31 of a plan year, as of the day after the end of the succeeding plan year.</text></subclause></clause><clause commented="no" id="H2AECFB57E75241348F0604FD24EC1F15"><enum>(iii)</enum><header>Effectiveness of termination</header><text>Any termination under this subparagraph shall not affect discounts for applicable drugs of the manufacturer that are due under the agreement before the effective date of its termination.</text></clause></subparagraph></paragraph><paragraph id="id1c15ad865dc742cfa4ae921131e62112"><enum>(5)</enum><header>Effective date of agreement</header><text>An agreement under this section shall take effect at the start of a calendar quarter or another date specified by the Secretary. </text></paragraph></subsection><subsection id="HC3EFC1F19D6947FEB794E4EBF0AD226C"><enum>(c)</enum><header>Duties described</header><text>The duties described in this subsection are the following:</text><paragraph commented="no" id="H4E8F8A34061C4153B9E2CD41386A149E"><enum>(1)</enum><header>Administration of program</header><text>Administering the program, including—</text><subparagraph commented="no" id="H4DF089B90FEB4176ABDBFDC60DEBFDBD"><enum>(A)</enum><text>the determination of the amount of the discounted price of an applicable drug of a manufacturer;</text></subparagraph><subparagraph commented="no" id="HD9D18A1B8E5A4C3B86EE502B540A1C86"><enum>(B)</enum><text>the establishment of procedures to ensure that, not later than the applicable number of calendar days after the dispensing of an applicable drug by a pharmacy or mail order service, the pharmacy or mail order service is reimbursed for an amount equal to the difference between—</text><clause commented="no" id="HA2345A5CD9AD40D2895F40E11636DDF6"><enum>(i)</enum><text>the negotiated price of the applicable drug; and</text></clause><clause commented="no" id="HDD75C401136047CFA31BCCF9961AC833"><enum>(ii)</enum><text>the discounted price of the applicable drug;</text></clause></subparagraph><subparagraph commented="no" id="HF4DCF71D90A54A10A0332FF478554128"><enum>(C)</enum><text>the establishment of procedures to ensure that the discounted price for an applicable drug under this section is applied before any coverage or financial assistance under other health benefit plans or programs that provide coverage or financial assistance for the purchase or provision of prescription drug coverage on behalf of applicable beneficiaries as specified by the Secretary; and</text></subparagraph><subparagraph commented="no" id="HC34E6D66149F4C03B130118D19650ACA"><enum>(D)</enum><text>providing a reasonable dispute resolution mechanism to resolve disagreements between manufacturers, prescription drug plans and MA–PD plans, and the Secretary.</text></subparagraph></paragraph><paragraph id="H0F357A3271F14EC39B6F9FDCF4C06976"><enum>(2)</enum><header>Monitoring compliance</header><text>The Secretary shall monitor compliance by a manufacturer with the terms of an agreement under this section.</text></paragraph><paragraph id="HD715A7D8144240CA881E89F4854AF973"><enum>(3)</enum><header>Collection of data from prescription drug plans and MA–PD plans</header><text>The Secretary may collect appropriate data from prescription drug plans and MA–PD plans in a timeframe that allows for discounted prices to be provided for applicable drugs under this section.</text></paragraph></subsection><subsection id="H96E387E379534EBABE50C46FF5BC9926"><enum>(d)</enum><header>Administration</header><paragraph id="HD85E1912716D47A684A0585425EC7968"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (2), the Secretary shall provide for the implementation of this section, including the performance of the duties described in subsection (c).</text></paragraph><paragraph commented="no" id="H603B396C95EC4C89B4BAA3759C53EB91"><enum>(2)</enum><header>Limitation</header><text display-inline="yes-display-inline">In providing for the implementation of this section, the Secretary shall not receive or distribute any funds of a manufacturer under the program.</text></paragraph></subsection><subsection id="H842B5B47F26B4C57B907095D4D0C35D6"><enum>(e)</enum><header>Civil money penalty</header><paragraph id="idC37F3B92616146329483E7B015079AE4"><enum>(1)</enum><header>In general</header><text>A manufacturer that fails to provide discounted prices for applicable drugs of the manufacturer dispensed to applicable beneficiaries in accordance with an agreement in effect under this section shall be subject to a civil money penalty for each such failure in an amount the Secretary determines is equal to the sum of—</text><subparagraph id="HD403496261294265A36E4DF71B391923"><enum>(A)</enum><text>the amount that the manufacturer would have paid with respect to such discounts under the agreement, which will then be used to pay the discounts which the manufacturer had failed to provide; and</text></subparagraph><subparagraph id="HB3E15DABF7494ACAA39AB84B2331C5DC"><enum>(B)</enum><text>25 percent of such amount.</text></subparagraph></paragraph><paragraph commented="no" id="H0259B50835B946B28461E0790EBEF5E0"><enum>(2)</enum><header>Application</header><text>The provisions of section 1128A (other than subsections (a) and (b)) shall apply to a civil money penalty under this subsection in the same manner as such provisions apply to a penalty or proceeding under section 1128A(a).</text></paragraph></subsection><subsection commented="no" id="HBB1D4887BA0F4534B07D54AEE3DEDB3B"><enum>(f)</enum><header>Clarification regarding availability of other covered part D drugs</header><text>Nothing in this section shall prevent an applicable beneficiary from purchasing a covered part D drug that is not an applicable drug (including a generic drug or a drug that is not on the formulary of the prescription drug plan or MA–PD plan that the applicable beneficiary is enrolled in).</text></subsection><subsection id="H41F8E6DFB0BE435BB9D976950C3E1C17"><enum>(g)</enum><header>Definitions</header><text>In this section:</text><paragraph id="H1889FFE15BC043C9A957A9A14CA96960"><enum>(1)</enum><header>Applicable beneficiary</header><text>The term <term>applicable beneficiary</term> means an individual who, on the date of dispensing a covered part D drug—</text><subparagraph id="H67C0022FB52C408587634C4E532CF744"><enum>(A)</enum><text>is enrolled in a prescription drug plan or an MA–PD plan;</text></subparagraph><subparagraph id="H05BF05B056A84DBABBE7969176C7D550"><enum>(B)</enum><text>is not enrolled in a qualified retiree prescription drug plan; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6001EA77C544414E9422C6BA40A6D4DB"><enum>(C)</enum><text display-inline="yes-display-inline">has incurred costs, as determined in accordance with section 1860D–2(b)(4)(C), for covered part D drugs in the year that exceed the annual deductible specified in section 1860D–2(b)(1).</text></subparagraph></paragraph><paragraph id="H2FAD2A0601494F28B1D742E6491B27AD"><enum>(2)</enum><header>Applicable drug</header><text>The term <term>applicable drug</term>, with respect to an applicable beneficiary—</text><subparagraph id="H26531138B12B4415893619D51D7914C0"><enum>(A)</enum><text>means a covered part D drug—</text><clause id="HB24ABC6236A446B2B349DA60F99C3024"><enum>(i)</enum><text>approved under a new drug application under section 505(c) of the Federal Food, Drug, and Cosmetic Act or, in the case of a biologic product, licensed under section 351 of the Public Health Service Act; and</text></clause><clause id="HD6EF02952B71446FA426AA8597DA21E9"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="HB276E44EE1484E62B138D74F408C732D"><enum>(I)</enum><text>if the PDP sponsor of the prescription drug plan or the MA organization offering the MA–PD plan uses a formulary, which is on the formulary of the prescription drug plan or MA–PD plan that the applicable beneficiary is enrolled in;</text></subclause><subclause id="H45A230059B3F4C23BF785D3296A3F82D" indent="up1"><enum>(II)</enum><text>if the PDP sponsor of the prescription drug plan or the MA organization offering the MA–PD plan does not use a formulary, for which benefits are available under the prescription drug plan or MA–PD plan that the applicable beneficiary is enrolled in; or</text></subclause><subclause id="H650694BF031A4D4FA5A72B42B1B9E0F9" indent="up1"><enum>(III)</enum><text>is provided through an exception or appeal; and</text></subclause></clause></subparagraph><subparagraph id="H72CCCE90C5A443DAAD9368D85BA6296E" commented="no"><enum>(B)</enum><text>does not include a selected drug (as referred to under section 1192(c)) during a price applicability period (as defined in section 1191(b)(2)) with respect to such drug.</text></subparagraph></paragraph><paragraph commented="no" id="H2DFC9FC9CE18468387780B5A959B798F"><enum>(3)</enum><header>Applicable number of calendar days</header><text>The term <term>applicable number of calendar days</term> means—</text><subparagraph commented="no" id="H90BCB0F8011A424ABE122249742FF3CF"><enum>(A)</enum><text>with respect to claims for reimbursement submitted electronically, 14 days; and</text></subparagraph><subparagraph commented="no" id="HF46A8C4731084F428FBC6550617AE3B0"><enum>(B)</enum><text>with respect to claims for reimbursement submitted otherwise, 30 days.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE83DC38A477A4493B0DAA978DBCE1F60"><enum>(4)</enum><header display-inline="yes-display-inline">Discounted price</header><subparagraph commented="no" display-inline="no-display-inline" id="HFDFFC93AE16B4A30BD17D9C1423A2294"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>discounted price</term> means, subject to subparagraphs (B) and (C), with respect to an applicable drug of a manufacturer dispensed during a year to an applicable beneficiary—</text><clause commented="no" id="H941262B97C764005AB76134878D78D3F"><enum>(i)</enum><text display-inline="yes-display-inline">who has not incurred costs, as determined in accordance with section 1860D–2(b)(4)(C), for covered part D drugs in the year that are equal to or exceed the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B)(i) for the year, 90 percent of the negotiated price of such drug; and </text></clause><clause commented="no" id="HFFA17EDED1494981901FA6696D4C6319"><enum>(ii)</enum><text>who has incurred such costs, as so determined, in the year that are equal to or exceed such threshold for the year, 80 percent of the negotiated price of such drug.</text></clause></subparagraph><subparagraph id="H2BEA329978524D0E96CB5C3525CCCC5B" commented="no"><enum>(B)</enum><header>Phase-in for certain drugs dispensed to LIS beneficiaries</header><clause id="HBA5558C58101426EA90722B2B9A10AC9" commented="no"><enum>(i)</enum><header>In general</header><text>In the case of an applicable drug of a specified manufacturer (as defined in clause (ii)) that is marketed as of the date of enactment of this subparagraph and dispensed for an applicable beneficiary who is a subsidy eligible individual (as defined in section 1860D–14(a)(3)), the term <quote>discounted price</quote> means the specified LIS percent (as defined in clause (iii)) of the negotiated price of the applicable drug of the manufacturer.</text></clause><clause id="HF46EF8487DA94845BA1D3FD777637EA1" commented="no"><enum>(ii)</enum><header>Specified manufacturer</header><subclause id="H2DCE2BE3BF82412AB3034961F8E90BF9"><enum>(I)</enum><header>In general</header><text display-inline="yes-display-inline">In this subparagraph, subject to subclause (II), the term <quote>specified manufacturer</quote> means a manufacturer of an applicable drug for which, in 2021—</text><item id="H1C8455F493294D7CBAC976E0D2000ED7" commented="no"><enum>(aa)</enum><text>the manufacturer had a coverage gap discount agreement under section 1860D–14A;</text></item><item id="HD30991E715B240DDAB5521DE457CD6B8" commented="no"><enum>(bb)</enum><text display-inline="yes-display-inline">the total expenditures for all of the specified drugs of the manufacturer covered by such agreement or agreements for such year and covered under this part during such year represented less than 1.0 percent of the total expenditures under this part for all covered Part D drugs during such year; and</text></item><item id="HFC98D925C52A4C0AA50824E4C77CF58F" commented="no"><enum>(cc)</enum><text display-inline="yes-display-inline">the total expenditures for all of the specified drugs of the manufacturer that are single source drugs and biological products for which payment may be made under part B during such year represented less than 1.0 percent of the total expenditures under part B for all drugs or biological products for which payment may be made under such part during such year.</text></item></subclause><subclause id="H3A0EE41A2386406B92D58B1645CB2061"><enum>(II)</enum><header>Specified drugs</header><item id="H0B741D9519884285BAF4676E051BFBD6"><enum>(aa)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this clause, the term <quote>specified drug</quote> means, with respect to a specified manufacturer, for 2021, an applicable drug that is produced, prepared, propagated, compounded, converted, or processed by the manufacturer.</text></item><item id="H45EAF374A35948329417437CC5A7AF82"><enum>(bb)</enum><header>Aggregation rule</header><text display-inline="yes-display-inline">All persons treated as a single employer under subsection (a) or (b) of <external-xref legal-doc="usc" parsable-cite="usc/26/52">section 52</external-xref> of the Internal Revenue Code of 1986 shall be treated as one manufacturer for purposes of this subparagraph. For purposes of making a determination pursuant to the previous sentence, an agreement under this section shall require that a manufacturer provide and attest to such information as specified by the Secretary as necessary.</text></item></subclause><subclause id="HD239ECD9C4F540B091543DEA018159A4"><enum>(III)</enum><header>Limitation</header><text display-inline="yes-display-inline">The term <quote>specified manufacturer</quote> shall not include a manufacturer described in subclause (I) if such manufacturer is acquired after 2021 by another manufacturer that is not a specified manufacturer, effective at the beginning of the plan year immediately following such acquisition or, in the case of an acquisition before 2025, effective January 1, 2025.</text></subclause></clause><clause id="H8831FC2F2CF34A8B9E7BF6BA99976120" commented="no"><enum>(iii)</enum><header>Specified LIS percent</header><text display-inline="yes-display-inline">In this subparagraph, the <quote>specified LIS percent</quote> means, with respect to a year—</text><subclause id="H8BC5EA6B51134F278B430BA65B285CA3" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">for an applicable drug dispensed for an applicable beneficiary described in clause (i) who has not incurred costs, as determined in accordance with section 1860D–2(b)(4)(C), for covered part D drugs in the year that are equal to or exceed the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B)(i) for the year—</text><item id="H806A1D4ADA554BF6825D886242843C1A"><enum>(aa)</enum><text>for 2025, 99 percent;</text></item><item id="HAAB835FEBAAC4528BE61095C04667E10" commented="no"><enum>(bb)</enum><text>for 2026, 98 percent;</text></item><item id="HE0AA519022934ACD88E5A78524225D75" commented="no"><enum>(cc)</enum><text>for 2027, 95 percent;</text></item><item id="H2E1F3C8D14DB402EAF6B752CBCCC6FD0" commented="no"><enum>(dd)</enum><text>for 2028, 92 percent; and</text></item><item id="HC33C3396714044EFA671BF154D62E479" commented="no"><enum>(ee)</enum><text>for 2029 and each subsequent year, 90 percent; and</text></item></subclause><subclause id="HD7AAE8AC89BF46EE916A2640BF79FCE3"><enum>(II)</enum><text display-inline="yes-display-inline">for an applicable drug dispensed for an applicable beneficiary described in clause (i) who has incurred costs, as determined in accordance with section 1860D–2(b)(4)(C), for covered part D drugs in the year that are equal to or exceed the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B)(i) for the year—</text><item id="H9239F59D9FB4466B982211EEB94546EA"><enum>(aa)</enum><text display-inline="yes-display-inline">for 2025, 99 percent;</text></item><item id="H0AD4DFA25C9A4999A841E1B8E05002C6"><enum>(bb)</enum><text>for 2026, 98 percent;</text></item><item id="H8EE66AA6BA1F4FACA008365D5A7C8447"><enum>(cc)</enum><text>for 2027, 95 percent;</text></item><item id="HE78D15491FFB426FACE444BA0BD0C296"><enum>(dd)</enum><text>for 2028, 92 percent;</text></item><item id="H4D10E72A87844E288EA006BE4D054467"><enum>(ee)</enum><text>for 2029, 90 percent;</text></item><item id="H64FA4CA146A545DD8F46F20819F7D358"><enum>(ff)</enum><text>for 2030, 85 percent; and</text></item><item id="H413857DBCC5A4E6885B04B9C6FE5E8A2"><enum>(gg)</enum><text>for 2031 and each subsequent year, 80 percent.</text></item></subclause></clause></subparagraph><subparagraph id="H4752B97A0EF044B6BC000063DC18A8C0"><enum>(C)</enum><header>Phase-in for specified small manufacturers</header><clause id="H1B7FB18999544AD39E487B898D6C29E0"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of an applicable drug of a specified small manufacturer (as defined in clause (ii)) that is marketed as of the date of enactment of this subparagraph and dispensed for an applicable beneficiary, the term <quote>discounted price</quote> means the specified small manufacturer percent (as defined in clause (iii)) of the negotiated price of the applicable drug of the manufacturer.</text></clause><clause id="H204CB7D2408D4480B9E533F32D4EFAC5"><enum>(ii)</enum><header>Specified small manufacturer</header><subclause id="HB26383D0B554400898D6C420F037F2C9"><enum>(I)</enum><header>In general</header><text display-inline="yes-display-inline">In this subparagraph, subject to subclause (III), the term ‘specified small manufacturer’ means a manufacturer of an applicable drug for which, in 2021—</text><item id="H0B476DA65B354921AAA0007CAFEC2407"><enum>(aa)</enum><text display-inline="yes-display-inline">the manufacturer is a specified manufacturer (as defined in subparagraph (B)(ii)); and </text></item><item id="H653E3E673CE34207B95E8EED157321E2"><enum>(bb)</enum><text display-inline="yes-display-inline">the total expenditures under part D for any one of the specified small manufacturer drugs of the manufacturer that are covered by the agreement or agreements under section 1860D–14A of such manufacturer for such year and covered under this part during such year are equal to or more than 80 percent of the total expenditures under this part for all specified small manufacturer drugs of the manufacturer that are covered by such agreement or agreements for such year and covered under this part during such year.</text></item></subclause><subclause id="H410BC3EC13AA45168B9E2AE939C2F3DA"><enum>(II)</enum><header>Specified small manufacturer drugs</header><item id="H5E19AAA222644103986BF9C4237552A1"><enum>(aa)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this clause, the term <quote>specified small manufacturer drugs</quote> means, with respect to a specified small manufacturer, for 2021, an applicable drug that is produced, prepared, propagated, compounded, converted, or processed by the manufacturer.</text></item><item id="H89DBEFF8550A4FFE99FBEB3843D33EB5"><enum>(bb)</enum><header>Aggregation rule</header><text display-inline="yes-display-inline">All persons treated as a single employer under subsection (a) or (b) of <external-xref legal-doc="usc" parsable-cite="usc/26/52">section 52</external-xref> of the Internal Revenue Code of 1986 shall be treated as one manufacturer for purposes of this subparagraph. For purposes of making a determination pursuant to the previous sentence, an agreement under this section shall require that a manufacturer provide and attest to such information as specified by the Secretary as necessary.</text></item></subclause><subclause id="H3EFCBFA8D70A4673AE600B012D075922"><enum>(III)</enum><header>Limitation</header><text display-inline="yes-display-inline">The term <quote>specified small manufacturer</quote> shall not include a manufacturer described in subclause (I) if such manufacturer is acquired after 2021 by another manufacturer that is not a specified small manufacturer, effective at the beginning of the plan year immediately following such acquisition or, in the case of an acquisition before 2025, effective January 1, 2025.</text></subclause></clause><clause id="H4E5217E05F5F4B5E860A9C7D58DA450D"><enum>(iii)</enum><header>Specified small manufacturer percent</header><text display-inline="yes-display-inline">In this subparagraph, the term <quote>specified small manufacturer percent</quote> means, with respect to a year—</text><subclause id="H724C92C5EA804ADFA5D44EA921E88E5A"><enum>(I)</enum><text display-inline="yes-display-inline">for an applicable drug dispensed for an applicable beneficiary who has not incurred costs, as determined in accordance with section 1860D–2(b)(4)(C), for covered part D drugs in the year that are equal to or exceed the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B)(i) for the year—</text><item id="HEFB643CCE6114012A83B02E114B21A46"><enum>(aa)</enum><text display-inline="yes-display-inline">for 2025, 99 percent;</text></item><item id="H9BA8362D4CED4975B1906CE098C82A45"><enum>(bb)</enum><text>for 2026, 98 percent;</text></item><item id="HDD030A31CF064FEDB12AE472745AEB7B"><enum>(cc)</enum><text>for 2027, 95 percent;</text></item><item id="HC48DA40C97A34A34A611C97DE5C794C8"><enum>(dd)</enum><text>for 2028, 92 percent; and</text></item><item id="H769EAA741A0D4CC499A639DECBAC9980"><enum>(ee)</enum><text>for 2029 and each subsequent year, 90 percent; and</text></item></subclause><subclause id="H95640ACBC84047DBB574CBC786DECB40"><enum>(II)</enum><text display-inline="yes-display-inline">for an applicable drug dispensed for an applicable beneficiary who has incurred costs, as determined in accordance with section 1860D–2(b)(4)(C), for covered part D drugs in the year that are equal to or exceed the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B)(i) for the year—</text><item id="H413D019B7632431B8C7EF64286D850C3"><enum>(aa)</enum><text display-inline="yes-display-inline">for 2025, 99 percent;</text></item><item id="H25B9704A2C3948208BAF58A5A134EED5"><enum>(bb)</enum><text>for 2026, 98 percent;</text></item><item id="H2E1646FDD08748D48DCB6A73447972B6"><enum>(cc)</enum><text>for 2027, 95 percent;</text></item><item id="H5A50EA5F2C2E4C4C8BE7A9983F9B836F"><enum>(dd)</enum><text>for 2028, 92 percent;</text></item><item id="HFDFA1BB1EF784B2CBED5D40362559E87"><enum>(ee)</enum><text>for 2029, 90 percent;</text></item><item id="H7FDB584DD9EC42F99036C9F54647F1B3"><enum>(ff)</enum><text>for 2030, 85 percent; and</text></item><item id="H07805AEE08534454B0E8E7CB0C4F2B72"><enum>(gg)</enum><text>for 2031 and each subsequent year, 80 percent.</text></item></subclause></clause></subparagraph><subparagraph id="H4B9950F7024B4FB28614F0A301F0AB4B"><enum>(D)</enum><header>Total expenditures</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term <quote>total expenditures</quote> includes, in the case of expenditures with respect to part D, the total gross covered prescription drug costs as defined in section 1860D–15(b)(3). The term <quote>total expenditures</quote> excludes, in the case of expenditures with respect to part B, expenditures for a drug or biological that are bundled or packaged into the payment for another service.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4D031C33CD6C4AF6886F594D5A029EA9"><enum>(E)</enum><header>Special case for certain claims</header><clause commented="no" id="H7086B4B2FA5649E5914F64E3F5DE6A6C"><enum>(i)</enum><header>Claims spanning deductible</header><text>In the case where the entire amount of the negotiated price of an individual claim for an applicable drug with respect to an applicable beneficiary does not fall above the annual deductible specified in section 1860D–2(b)(1) for the year, the manufacturer of the applicable drug shall provide the discounted price under this section on only the portion of the negotiated price of the applicable drug that falls above such annual deductible.</text></clause><clause commented="no" id="H760FC684FD1C43C3ACD095DAC66A3BD4"><enum>(ii)</enum><header>Claims spanning out-of-pocket threshold</header><text display-inline="yes-display-inline">In the case where the entire amount of the negotiated price of an individual claim for an applicable drug with respect to an applicable beneficiary does not fall entirely below or entirely above the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B)(i) for the year, the manufacturer of the applicable drug shall provide the discounted price—</text><subclause commented="no" id="H4D8DB967F1FB425AAE92E4EFA595BF20"><enum>(I)</enum><text>in accordance with subparagraph (A)(i) on the portion of the negotiated price of the applicable drug that falls below such threshold; and</text></subclause><subclause commented="no" id="HABD0143D933F49C88B873BC6CEF2106E"><enum>(II)</enum><text>in accordance with subparagraph (A)(ii) on the portion of such price of such drug that falls at or above such threshold.</text></subclause></clause></subparagraph></paragraph><paragraph commented="no" id="H46A0E7F7949347B7A4D454B8CDE61835"><enum>(5)</enum><header>Manufacturer</header><text>The term <term>manufacturer</term> means any entity which is engaged in the production, preparation, propagation, compounding, conversion, or processing of prescription drug products, either directly or indirectly by extraction from substances of natural origin, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis. Such term does not include a wholesale distributor of drugs or a retail pharmacy licensed under State law.</text></paragraph><paragraph commented="no" id="HDEF9504095B54A14A5061F96F08BA3E7"><enum>(6)</enum><header>Negotiated price</header><text display-inline="yes-display-inline">The term <term>negotiated price</term> has the meaning given such term for purposes of section 1860D–2(d)(1)(B), and, with respect to an applicable drug, such negotiated price shall include any dispensing fee and, if applicable, any vaccine administration fee for the applicable drug.</text></paragraph><paragraph commented="no" id="H7937087E2A764CCB927ECE498D83C44D"><enum>(7)</enum><header>Qualified retiree prescription drug plan</header><text>The term <term>qualified retiree prescription drug plan</term> has the meaning given such term in section 1860D–22(a)(2).</text></paragraph></subsection></section><section id="HF722A4DCB3604500AA3DC710D55B7914"><enum>1860D–14D.</enum><header>Selected drug subsidy program</header><text display-inline="no-display-inline">With respect to covered part D drugs that would be applicable drugs (as defined in section 1860D–14C(g)(2)) but for the application of subparagraph (B) of such section, the Secretary shall provide a process whereby, in the case of an applicable beneficiary (as defined in section 1860D–14C(g)(1)) who, with respect to a year, is enrolled in a prescription drug plan or is enrolled in an MA–PD plan, has not incurred costs that are equal to or exceed the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B)(i), and is dispensed such a drug, the Secretary (periodically and on a timely basis) provides the PDP sponsor or the MA organization offering the plan, a subsidy with respect to such drug that is equal to 10 percent of the negotiated price (as defined in section 1860D–14C(g)(6)) of such drug.</text></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H15F614D10D7643C3AAF0EDA57FB9313C"><enum>(2)</enum><header>Sunset of Medicare coverage gap discount program</header><text>Section 1860D–14A of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-114a">42 U.S.C. 1395w–114a</external-xref>) is amended—</text><subparagraph id="H89355D2E2DFC4855B81B6C6FAA0A0B3E"><enum>(A)</enum><text>in subsection (a), in the first sentence, by striking <quote>The Secretary</quote> and inserting <quote>Subject to subsection (h), the Secretary</quote>; and</text></subparagraph><subparagraph id="HE3F85C253699457EB765DC1C031CE196"><enum>(B)</enum><text>by adding at the end the following new subsection:</text><quoted-block display-inline="no-display-inline" id="H94E751BA0F954A3BA6783574B2323FCE" style="OLC" changed="added" reported-display-style="italic"><subsection id="HBE61848916964CE5B4BFF6B9D54A26E9"><enum>(h)</enum><header>Sunset of program</header><paragraph id="H97BEBF57DF6243C6A6E744FC441DD4BA"><enum>(1)</enum><header>In general</header><text>The program shall not apply with respect to applicable drugs dispensed on or after January 1, 2025, and, subject to paragraph (2), agreements under this section shall be terminated as of such date.</text></paragraph><paragraph id="H31EC78936B104FE5829DA2E262A33970"><enum>(2)</enum><header>Continued application for applicable drugs dispensed prior to sunset</header><text>The provisions of this section (including all responsibilities and duties) shall continue to apply on and after January 1, 2025, with respect to applicable drugs dispensed prior to such date.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="id597E617458A6423F8472D74006B25DC6"><enum>(3)</enum><header>Selected drug subsidy payments from Medicare prescription drug account</header><text>Section 1860D–16(b)(1) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-116">42 U.S.C. 1395w–116(b)(1)</external-xref>) is amended—</text><subparagraph id="id1ADEA2E1720F4D83ABC6C91AAD86978D"><enum>(A)</enum><text>in subparagraph (C), by striking <quote>and</quote> at the end;</text></subparagraph><subparagraph id="idF39D8BD1AF5C4E8EBA29E27924BD1BA0"><enum>(B)</enum><text>in subparagraph (D), by striking the period at the end and inserting <quote>; and</quote>; and</text></subparagraph><subparagraph id="id57CB43B1DF124414B03100EF4C2B6D3F"><enum>(C)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id2D7297C1D7FB485A8F4A48FEE0A150F3" changed="added" reported-display-style="italic"><subparagraph id="id313B3A43CCBF461DB93ED2488BB2C011"><enum>(E)</enum><text>payments under section 1860D–14D (relating to selected drug subsidy payments).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="id7252F0953939496AA963FB190536A02E"><enum>(d)</enum><header>Medicare part D premium stabilization</header><paragraph id="idB7FEF7E3EDE245C984B2B7D7150FC4A5"><enum>(1)</enum><header>2024 through 2029</header><text display-inline="yes-display-inline">Section 1860D–13 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-113">42 U.S.C. 1395w–113</external-xref>) is amended—</text><subparagraph id="id6488E2F5D458418997BE2386F13F3556"><enum>(A)</enum><text>in subsection (a)—</text><clause id="id7B51D9EC85564C7EB9D8D64DEDEA7694"><enum>(i)</enum><text>in paragraph (1)(A), by inserting <quote>or (8) (as applicable)</quote> after <quote>paragraph (2)</quote>;</text></clause><clause id="id11926ADC76C34949968C082FFBE479BC"><enum>(ii)</enum><text>in paragraph (2), in the matter preceding subparagraph (A), by striking <quote>The base</quote> and inserting <quote>Subject to paragraph (8), the base</quote>; </text></clause><clause id="idD49C4CDDFF5F4587908B4BF3C3E9E573"><enum>(iii)</enum><text>in paragraph (7)—</text><subclause id="id09B9F7E22BDC42B7964D7A7E397A7942"><enum>(I)</enum><text>in subparagraph (B)(ii), by inserting <quote>or (8) (as applicable)</quote> after <quote>paragraph (2)</quote>; and</text></subclause><subclause id="id5386345345B14DBF86A90BC74B9E6431"><enum>(II)</enum><text>in subparagraph (E)(i), by inserting <quote>or (8) (as applicable)</quote> after <quote>paragraph (2)</quote>; and</text></subclause></clause><clause id="id66FB35BBB0E646DF96F9BBAEB81F4E39"><enum>(iv)</enum><text>by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idD120AB8237E9409094405F5442F7C9BE" changed="added" reported-display-style="italic"><paragraph id="idBC7BEE1468DA4329A98EF4FFBC3CCFF7"><enum>(8)</enum><header>Premium stabilization</header><subparagraph id="id7488062E5075488BA6D58F887A347E06"><enum>(A)</enum><header>In general</header><text>The base beneficiary premium under this paragraph for a prescription drug plan for a month in 2024 through 2029 shall be computed as follows:</text><clause id="id38FF78CAAD0C4A20B031EB14CE6A5634"><enum>(i)</enum><header>2024</header><text>The base beneficiary premium for a month in 2024 shall be equal to the lesser of—</text><subclause id="id6B3C1EA67D9644B29BB725A8D10D4060"><enum>(I)</enum><text>the base beneficiary premium computed under paragraph (2) for a month in 2023 increased by 6 percent; or</text></subclause><subclause id="id7CAB11693F0044F8916C6C989E537ADE"><enum>(II)</enum><text>the base beneficiary premium computed under paragraph (2) for a month in 2024 that would have applied if this paragraph had not been enacted.</text></subclause></clause><clause id="idE97E01E9612C4B18B75D70EF1D99F032"><enum>(ii)</enum><header>2025</header><text>The base beneficiary premium for a month in 2025 shall be equal to the lesser of—</text><subclause id="idA634AC8024754440924E37EE5DB605C5"><enum>(I)</enum><text>the base beneficiary premium computed under clause (i) for a month in 2024 increased by 6 percent; or</text></subclause><subclause id="idF3E18B787D47464B83B0D794B44F09F2"><enum>(II)</enum><text>the base beneficiary premium computed under paragraph (2) for a month in 2025 that would have applied if this paragraph had not been enacted.</text></subclause></clause><clause id="id00E249B9A8534BFCBD6C9D75CFCBAF87"><enum>(iii)</enum><header>2026</header><text>The base beneficiary premium for a month in 2026 shall be equal to the lesser of—</text><subclause id="id4c438e63d2b94827be0370612f48beda"><enum>(I)</enum><text>the base beneficiary premium computed under clause (ii) for a month in 2025 increased by 6 percent; or</text></subclause><subclause id="id14c2808ebaef4834846c7d3977efe9b1"><enum>(II)</enum><text>the base beneficiary premium computed under paragraph (2) for a month in 2026 that would have applied if this paragraph had not been enacted.</text></subclause></clause><clause id="id0C9D2882560348618C675205F4A79F94"><enum>(iv)</enum><header>2027</header><text>The base beneficiary premium for a month in 2027 shall be equal to the lesser of—</text><subclause id="id3b256f5b961d49f3bf569487c352d122"><enum>(I)</enum><text>the base beneficiary premium computed under clause (iii) for a month in 2026 increased by 6 percent; or</text></subclause><subclause id="ide642acf0d9fd4ad7ba0a376044862cf7"><enum>(II)</enum><text>the base beneficiary premium computed under paragraph (2) for a month in 2027 that would have applied if this paragraph had not been enacted.</text></subclause></clause><clause id="id12DEF7F5CDFD4CBE977945448431D961"><enum>(v)</enum><header>2028</header><text>The base beneficiary premium for a month in 2028 shall be equal to the lesser of—</text><subclause id="id3bea1faf69fa4bce9dd4fa7e0fa6afb8"><enum>(I)</enum><text>the base beneficiary premium computed under clause (iv) for a month in 2027 increased by 6 percent; or</text></subclause><subclause id="id7bfb0b8d29ce4bde8281c31a9955661c"><enum>(II)</enum><text>the base beneficiary premium computed under paragraph (2) for a month in 2028 that would have applied if this paragraph had not been enacted.</text></subclause></clause><clause id="id4FFCABA783364DDB93EC751202F7908B"><enum>(vi)</enum><header>2029</header><text>The base beneficiary premium for a month in 2029 shall be equal to the lesser of—</text><subclause id="idC04837688B7E45319DF2138815726A9B"><enum>(I)</enum><text>the base beneficiary premium computed under clause (v) for a month in 2028 increased by 6 percent; or</text></subclause><subclause id="id76ED58F44A90445D9922ABBAB72797F9"><enum>(II)</enum><text>the base beneficiary premium computed under paragraph (2) for a month in 2029 that would have applied if this paragraph had not been enacted.</text></subclause></clause></subparagraph><subparagraph id="id715810B419E146F7A18C87AB05AD66D8"><enum>(B)</enum><header>Clarification regarding 2030 and subsequent years</header><text>The base beneficiary premium for a month in 2030 or a subsequent year shall be computed under paragraph (2) without regard to this paragraph.</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="id2EC9B00566124DB1BF2B3662B764E01D"><enum>(B)</enum><text>in subsection (b)(3)(A)(ii), by striking <quote>subsection (a)(2)</quote> and inserting <quote>paragraph (2) or (8) of subsection (a) (as applicable)</quote>.</text></subparagraph></paragraph><paragraph id="H912ED6E3A7C7408E8D08065C8471C659" commented="no"><enum>(2)</enum><header>Adjustment to beneficiary premium percentage for 2030 and subsequent years</header><text display-inline="yes-display-inline">Section 1860D–13(a) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-113">42 U.S.C. 1395w–113(a)</external-xref>), as amended by paragraph (1), is amended—</text><subparagraph id="id4362FE1C43F94651B25E2BEA28EC3F29"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (3)(A), by inserting <quote>(or, for 2030 and each subsequent year, the percent specified under paragraph (9))</quote> after <quote>25.5 percent</quote>; and</text></subparagraph><subparagraph id="id27696520E0904302B2348516438F3826"><enum>(B)</enum><text>by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id8EC36AFA2CB04B7C866767EB1F5D56D1" changed="added" reported-display-style="italic"><paragraph id="idF215AEEEFBC74B519F2008D80DC9165F"><enum>(9)</enum><header>Percent specified</header><subparagraph id="id19C6EC4EE95846ECB7A3337E79B6D381"><enum>(A)</enum><header>In general</header><text>Subject to subparagraph (B), for purposes of paragraph (3)(A), the percent specified under this paragraph for 2030 and each subsequent year is the percent that the Secretary determines is necessary to ensure that the base beneficiary premium computed under paragraph (2) for a month in 2030 is equal to the lesser of—</text><clause id="idA9111028C8F44F6198F29F4AB9D34219"><enum>(i)</enum><text>the base beneficiary premium computed under paragraph (8)(A)(vi) for a month in 2029 increased by 6 percent; or</text></clause><clause id="idCA1D75E5119A44C5A10EF2F626E4F01F"><enum>(ii)</enum><text>the base beneficiary premium computed under paragraph (2) for a month in 2030 that would have applied if this paragraph had not been enacted.</text></clause></subparagraph><subparagraph id="idFF3941C4562D4A9AB3AECC9A0F90FDAF"><enum>(B)</enum><header>Floor</header><text>The percent specified under subparagraph (A) may not be less than 20 percent.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="HC5364359137845A3A28BEC7A6FCFC653"><enum>(3)</enum><header>Conforming amendments</header><subparagraph id="id3A5EBDF2BD634EC987DFB44D1F57DB71"><enum>(A)</enum><text>Section 1854(b)(2)(B) of the Social Security Act <external-xref legal-doc="usc" parsable-cite="usc/42/1395w-24">42 U.S.C. 1395w–24(b)(2)(B)</external-xref>) is amended by striking <quote>section 1860D–13(a)(2)</quote> and inserting <quote>paragraph (2) or (8) (as applicable) of section 1860D–13(a)</quote>.</text></subparagraph><subparagraph id="HEE0D3F6EE5284EC39126AC2D6B8292F8"><enum>(B)</enum><text display-inline="yes-display-inline">Section 1860D–11(g)(6) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-111">42 U.S.C. 1395w–111(g)(6)</external-xref>) is amended by inserting <quote>(or, for 2030 and each subsequent year, the percent specified under section 1860D–13(a)(9))</quote> after <quote>25.5 percent</quote>.</text></subparagraph><subparagraph id="HAFD63BF976484CC195A7AAEC8F734755"><enum>(C)</enum><text display-inline="yes-display-inline">Section 1860D–13(a)(7)(B)(i) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-113">42 U.S.C. 1395w–113(a)(7)(B)(i)</external-xref>) is amended—</text><clause id="H68DAF2644E2D476A991ABA174201B8D4"><enum>(i)</enum><text display-inline="yes-display-inline">in subclause (I), by inserting <quote>(or, for 2030 and each subsequent year, the percent specified under paragraph (9))</quote> after <quote>25.5 percent</quote>; and</text></clause><clause id="HF60E62B2731F428290F0BD21A9BCFE0B"><enum>(ii)</enum><text display-inline="yes-display-inline">in subclause (II), by inserting <quote>(or, for 2030 and each subsequent year, the percent specified under paragraph (9))</quote> after <quote>25.5 percent</quote>.</text></clause></subparagraph><subparagraph id="HEBCF634554554550BDD00636142830E3"><enum>(D)</enum><text display-inline="yes-display-inline">Section 1860D–15(a) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-115">42 U.S.C. 1395w–115(a)</external-xref>) is amended—</text><clause id="id75FF41EDCEFC4FB68C80D70351B9D744"><enum>(i)</enum><text display-inline="yes-display-inline">in the matter preceding paragraph (1), by inserting <quote>(or, for each of 2024 through 2029, the percent applicable as a result of the application of section 1860D–13(a)(8), or, for 2030 and each subsequent year, 100 percent minus the percent specified under section 1860D–13(a)(9))</quote> after <quote>74.5 percent</quote>; and</text></clause><clause id="id22239D38EB9646618EAF3AD3AB6932B1"><enum>(ii)</enum><text>in paragraph (1)(B), by striking <quote>paragraph (2) of section 1860D–13(a)</quote> and inserting <quote>paragraph (2) or (8) of section 1860D–13(a) (as applicable)</quote>.</text></clause></subparagraph></paragraph></subsection><subsection id="H8AB99ABB0FF84C6988BABAC61F83B1CA"><enum>(e)</enum><header>Conforming amendments</header><paragraph id="HA14060E82E324FBB9C1F9B1A8FEC71D0"><enum>(1)</enum><text>Section 1860D–2 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-102">42 U.S.C. 1395w–102</external-xref>) is amended—</text><subparagraph id="HCE9EF7C6AAB848C0B81F56BA47F89FCE"><enum>(A)</enum><text>in subsection (a)(2)(A)(i)(I), by striking <quote>, or an increase in the initial</quote> and inserting <quote>or, for a year preceding 2025, an increase in the initial</quote>;</text></subparagraph><subparagraph id="H9E0B40CD0A2C4D4983CE0FC3BD9CD9FD"><enum>(B)</enum><text>in subsection (c)(1)(C)—</text><clause id="HF461D432AE6E4A53844B2C0F83EA2B4F"><enum>(i)</enum><text>in the subparagraph heading, by striking <quote><header-in-text level="subparagraph" style="OLC">at initial coverage limit</header-in-text></quote>; and</text></clause><clause id="HC11CE3257C384D82B6E3476D1322F06A"><enum>(ii)</enum><text>by inserting <quote>for a year preceding 2025 or the annual out-of-pocket threshold specified in subsection (b)(4)(B) for the year for 2025 and each subsequent year</quote> after <quote>subsection (b)(3) for the year</quote> each place it appears; and</text></clause></subparagraph><subparagraph id="HC7C906C9D05C4FA0BAAAF1B5612FBB2B"><enum>(C)</enum><text>in subsection (d)(1)(A), by striking <quote>or an initial</quote> and inserting <quote>or, for a year preceding 2025, an initial</quote>.</text></subparagraph></paragraph><paragraph id="H11024B5716484830B38ECA55818DC6CF"><enum>(2)</enum><text>Section 1860D–4(a)(4)(B)(i) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-104">42 U.S.C. 1395w–104(a)(4)(B)(i)</external-xref>) is amended by striking <quote>the initial</quote> and inserting <quote>for a year preceding 2025, the initial</quote>.</text></paragraph><paragraph id="H9917448E6D584AEA967CAAFCC0534240"><enum>(3)</enum><text>Section 1860D–14(a) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-114">42 U.S.C. 1395w–114(a)</external-xref>) is amended—</text><subparagraph id="H0BC74DE9837A4E8498960AC5030CBAAD"><enum>(A)</enum><text>in paragraph (1)—</text><clause id="H5EF6A07DE2704979B519C1A71CD4BC12"><enum>(i)</enum><text>in subparagraph (C), by striking <quote>The continuation</quote> and inserting <quote>For a year preceding 2025, the continuation</quote>;</text></clause><clause id="HD40477BB5CF34756A1E3CEC37EACEA60"><enum>(ii)</enum><text>in subparagraph (D)(iii), by striking <quote>1860D–2(b)(4)(A)(i)(I)</quote> and inserting <quote>1860D–2(b)(4)(A)(i)(I)(aa)</quote>; and</text></clause><clause id="H6C3DEDE346504AD784873E717E84AE41"><enum>(iii)</enum><text>in subparagraph (E), by striking <quote>The elimination</quote> and inserting <quote>For a year preceding 2024, the elimination</quote>; and</text></clause></subparagraph><subparagraph id="H3D404AEF209C4F6A976C20FDF8105E11"><enum>(B)</enum><text>in paragraph (2)(E), by striking <quote>1860D–2(b)(4)(A)(i)(I)</quote> and inserting <quote>1860D–2(b)(4)(A)(i)(I)(aa)</quote>.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2C63E5D15DAA4FA4BC99182D9AA8A539"><enum>(4)</enum><text display-inline="yes-display-inline">Section 1860D–21(d)(7) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-131">42 U.S.C. 1395w–131(d)(7)</external-xref>) is amended by striking <quote>section 1860D–2(b)(4)(B)(i)</quote> and inserting <quote>section 1860D–2(b)(4)(C)(i)</quote>.</text></paragraph><paragraph id="H5A2771A72C1D4285A5FDAC3DFE64AAB7"><enum>(5)</enum><text display-inline="yes-display-inline">Section 1860D–22(a)(2)(A) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-132">42 U.S.C. 1395w–132(a)(2)(A)</external-xref>) is amended—</text><subparagraph id="H4EE51B4EDC2E43979B9D1E4E4F91D538"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>the value of any discount</quote> and inserting the following:</text><quoted-block display-inline="yes-display-inline" id="H612E4052A82C4F6D81FD012C0D23C964" style="OLC" changed="added" reported-display-style="italic"><text>the value of—</text><clause id="H1B8F3BA3DB2C46B1A04A1424B56CE097"><enum>(i)</enum><text display-inline="yes-display-inline">for years prior to 2025, any discount</text></clause><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph><subparagraph id="HC3C10A5D75C04A4B957AED39FA7409F2"><enum>(B)</enum><text>in clause (i), as inserted by subparagraph (A) of this paragraph, by striking the period at the end and inserting <quote>; and</quote>; and</text></subparagraph><subparagraph id="HEFD01C15CB144E8AB564D2349EF79D8A"><enum>(C)</enum><text>by adding at the end the following new clause:</text><quoted-block display-inline="no-display-inline" id="H3C480BE199AB4D28A4F89925DAB3D4B2" style="OLC" changed="added" reported-display-style="italic"><clause commented="no" id="HC6E78007D4E7414F9188BBCEA176DBA7"><enum>(ii)</enum><text>for 2025 and each subsequent year, any discount provided pursuant to section 1860D–14C.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="HF33CDE5DAC8B49919D46A44011D61B1C"><enum>(6)</enum><text>Section 1860D–41(a)(6) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-151">42 U.S.C. 1395w–151(a)(6)</external-xref>) is amended—</text><subparagraph id="HA2B4C74D53C149E787BD5CF523FA070E"><enum>(A)</enum><text>by inserting <quote>for a year before 2025</quote> after <quote>1860D–2(b)(3)</quote>; and</text></subparagraph><subparagraph id="H095BD20849E74E07AC60FB1B858FC204"><enum>(B)</enum><text>by inserting <quote>for such year</quote> before the period.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H00DA70CCBE6D4455AA46F2399424E19E"><enum>(7)</enum><text display-inline="yes-display-inline">Section 1860D–43 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-153">42 U.S.C. 1395w–153</external-xref>) is amended—</text><subparagraph id="H3CE6E34DAE96437094800C4ABC79ECF5"><enum>(A)</enum><text>in subsection (a)—</text><clause id="H7010EA5D34E74483A3B7AB49A3B6ABFF"><enum>(i)</enum><text>by striking paragraph (1) and inserting the following:</text><quoted-block display-inline="no-display-inline" id="HEBC263D267DB4217A8C2E756655626F0" style="OLC" changed="added" reported-display-style="italic"><paragraph commented="no" display-inline="no-display-inline" id="HD4FD935B8A704FB59BD749EE8F761A4A"><enum>(1)</enum><text>participate in—</text><subparagraph commented="no" display-inline="no-display-inline" id="HE2A13F1B15A442008AE22A107A827A41"><enum>(A)</enum><text>for 2011 through 2024, the Medicare coverage gap discount program under section 1860D–14A; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H31C655DE1C5440809B778ACAFA923856"><enum>(B)</enum><text>for 2025 and each subsequent year, the manufacturer discount program under section 1860D–14C;</text></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></clause><clause id="H0FADA248C84F461FBEF7F10314F4BA43"><enum>(ii)</enum><text>by striking paragraph (2) and inserting the following:</text><quoted-block style="OLC" id="H1D2CFD3BF5364074ACD1149E95CA977A" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="H8E79D9357DED46DAAA6B2F2219D041D8"><enum>(2)</enum><text display-inline="yes-display-inline">have entered into and have in effect—</text><subparagraph id="H542F9ACE2484488DA1F5CC9B2D6F04B3"><enum>(A)</enum><text>for 2011 through 2024, an agreement described in subsection (b) of section 1860D–14A with the Secretary; and</text></subparagraph><subparagraph id="HE57A791387EE486EA97D466655FE9BB2"><enum>(B)</enum><text>for 2025 and each subsequent year, an agreement described in subsection (b) of section 1860D–14C with the Secretary; and</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause><clause id="id641F0CA64C1541269C0D45E323948592"><enum>(iii)</enum><text>in paragraph (3), by striking <quote>such section</quote> and inserting <quote>section 1860D–14A</quote>; and</text></clause></subparagraph><subparagraph id="H5107BC862D4245189D24909457D4BE21"><enum>(B)</enum><text>by striking subsection (b) and inserting the following:</text><quoted-block style="OLC" id="HA4BC5FFD8F3E444BB98613189B60F486" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subsection id="H76CA8A94CEBB42AEAFBBAE450485BD04"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">Paragraphs (1)(A), (2)(A), and (3) of subsection (a) shall apply to covered part D drugs dispensed under this part on or after January 1, 2011, and before January 1, 2025, and paragraphs (1)(B) and (2)(B) of such subsection shall apply to covered part D drugs dispensed under this part on or after January 1, 2025.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="HECF8D1CEF86F4B0A9B61E438749929D2"><enum>(8)</enum><text display-inline="yes-display-inline">Section 1927 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-8">42 U.S.C. 1396r–8</external-xref>) is amended—</text><subparagraph id="H1B1277191D4B4055A2A5472292BDF74D"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (c)(1)(C)(i)(VI), by inserting before the period at the end the following: <quote>or under the manufacturer discount program under section 1860D–14C</quote>; and</text></subparagraph><subparagraph id="H4AB25B309C4A4BC999EC87FD2042F485"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (k)(1)(B)(i)(V), by inserting before the period at the end the following: <quote>or under section 1860D–14C</quote>.</text></subparagraph></paragraph></subsection><subsection id="H270A0906F32B4C10888156824BE8B65D" commented="no"><enum>(f)</enum><header>Implementation for 2024 through 2026</header><text>The Secretary shall implement this section, including the amendments made by this section, for 2024, 2025, and 2026 by program instruction or other forms of program guidance.</text></subsection><subsection id="H68067898380D4084A205E0570BD9DA11"><enum>(g)</enum><header>Funding</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there are appropriated to the Centers for Medicare & Medicaid Services, out of any money in the Treasury not otherwise appropriated, $341,000,000 for fiscal year 2022, including $20,000,000 and $65,000,000 to carry out the provisions of, including the amendments made by, this section in fiscal years 2022 and 2023, respectively, and $32,000,000 to carry out the provisions of, including the amendments made by, this section in each of fiscal years 2024 through 2031, to remain available until expended.</text></subsection></section><section id="HC9270D56FCA34936ACA51D9871901287"><enum>11202.</enum><header>Maximum monthly cap on cost-sharing payments under prescription drug plans and MA–PD plans</header><subsection id="HFDDCACC54B5A486189431AB689DF1124"><enum>(a)</enum><header>In general</header><text>Section 1860D–2(b) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-102">42 U.S.C. 1395w–102(b)</external-xref>) is amended—</text><paragraph id="H4A739F803B134E2B93AC0A4C1364E3E0"><enum>(1)</enum><text>in paragraph (2)—</text><subparagraph id="H46B164D235784E4EABEC061D5F88E161"><enum>(A)</enum><text>in subparagraph (A), by striking <quote>and (D)</quote> and inserting <quote>, (D), and (E)</quote>; and</text></subparagraph><subparagraph id="HCFF5B6708DF940A0A3B300765837A6D2"><enum>(B)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block id="H64CB05014652443ABCEE934F64295F49" style="OLC" changed="added" reported-display-style="italic"><subparagraph id="HFF41975E8E0445A0B925553340B10C37"><enum>(E)</enum><header>Maximum monthly cap on cost-sharing payments</header><clause id="H45D10E5C26EC4A109E0BB045BA654EEF"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">For plan years beginning on or after January 1, 2025, each PDP sponsor offering a prescription drug plan and each MA organization offering an MA–PD plan shall provide to any enrollee of such plan, including an enrollee who is a subsidy eligible individual (as defined in paragraph (3) of section 1860D–14(a)), the option to elect with respect to a plan year to pay cost-sharing under the plan in monthly amounts that are capped in accordance with this subparagraph.</text></clause><clause id="H561C6903B85E4637B6253142299857AF"><enum>(ii)</enum><header>Determination of maximum monthly cap</header><text>For each month in the plan year for which an enrollee in a prescription drug plan or an MA–PD plan has made an election pursuant to clause (i), the PDP sponsor or MA organization shall determine a maximum monthly cap (as defined in clause (iv)) for such enrollee.</text></clause><clause id="HCCFBD4A796AF4087A73312CBEFEDD3F6"><enum>(iii)</enum><header>Beneficiary monthly payments</header><text>With respect to an enrollee who has made an election pursuant to clause (i), for each month described in clause (ii), the PDP sponsor or MA organization shall bill such enrollee an amount (not to exceed the maximum monthly cap) for the out-of-pocket costs of such enrollee in such month.</text></clause><clause id="HE1258AB3ACF7476280EBC737696B3564"><enum>(iv)</enum><header>Maximum monthly cap defined</header><text>In this subparagraph, the term <quote>maximum monthly cap</quote> means, with respect to an enrollee—</text><subclause id="HF2122A28627A4EB29A83A858FB54E7D7"><enum>(I)</enum><text display-inline="yes-display-inline">for the first month for which the enrollee has made an election pursuant to clause (i), an amount determined by calculating—</text><item id="H0F86C7FDEB3840F6A2924928647DA811"><enum>(aa)</enum><text>the annual out-of-pocket threshold specified in paragraph (4)(B) minus the incurred costs of the enrollee as described in paragraph (4)(C); divided by</text></item><item id="H2390755D2D744A2C883EF30F31E6784F"><enum>(bb)</enum><text>the number of months remaining in the plan year; and</text></item></subclause><subclause id="H55FD4EF0C7294FCA9AB7A49B0AA7F313"><enum>(II)</enum><text>for a subsequent month, an amount determined by calculating—</text><item id="H092F743B0C3448F8AB7DD13BEC2DB8D1"><enum>(aa)</enum><text>the sum of any remaining out-of-pocket costs owed by the enrollee from a previous month that have not yet been billed to the enrollee and any additional out-of-pocket costs incurred by the enrollee; divided by</text></item><item id="HE055BE113FBF4C89812258336A530F41"><enum>(bb)</enum><text>the number of months remaining in the plan year.</text></item></subclause></clause><clause id="H99C8F616AA9842AF8214DBD2FC0DBD43"><enum>(v)</enum><header>Additional requirements</header><text>The following requirements shall apply with respect to the option to make an election pursuant to clause (i) under this subparagraph:</text><subclause id="H42ACCD18A801408182F437ACC8194087"><enum>(I)</enum><header>Secretarial responsibilities</header><text>The Secretary shall provide information to part D eligible individuals on the option to make such election through educational materials, including through the notices provided under section 1804(a).</text></subclause><subclause id="HDFF84001D05F49ED8066251B1FEFA15A"><enum>(II)</enum><header>Timing of election</header><text>An enrollee in a prescription drug plan or an MA–PD plan may make such an election—</text><item id="H09438F677A374D7A8AB20F4ECC6D254E"><enum>(aa)</enum><text>prior to the beginning of the plan year; or</text></item><item id="H4EBA2B2B413C4359BB21A38ABA93E3E1"><enum>(bb)</enum><text>in any month during the plan year.</text></item></subclause><subclause id="HED8DE5F305B340A19CE3F8105201697F"><enum>(III)</enum><header>Pdp sponsor and ma organization responsibilities</header><text>Each PDP sponsor offering a prescription drug plan or MA organization offering an MA–PD plan—</text><item id="H3E8F87BADDB0422CBC9E447BA17EA065"><enum>(aa)</enum><text>may not limit the option for an enrollee to make such an election to certain covered part D drugs;</text></item><item id="H6EBCECFD45AF4863A661D9A8F6B88033"><enum>(bb)</enum><text>shall, prior to the plan year, notify prospective enrollees of the option to make such an election in promotional materials;</text></item><item id="H635D5E0CFFB34353B7BFDED2939A121E"><enum>(cc)</enum><text>shall include information on such option in enrollee educational materials;</text></item><item id="H0DD1CD64B5BB47059D71FF634962AAD2"><enum>(dd)</enum><text>shall have in place a mechanism to notify a pharmacy during the plan year when an enrollee incurs out-of-pocket costs with respect to covered part D drugs that make it likely the enrollee may benefit from making such an election;</text></item><item id="H5265B299517A45DD8B311637F0240A82"><enum>(ee)</enum><text>shall provide that a pharmacy, after receiving a notification described in item (dd) with respect to an enrollee, informs the enrollee of such notification;</text></item><item id="HA58DDA5EF633457EBC721B2CB2707CDD"><enum>(ff)</enum><text>shall ensure that such an election by an enrollee has no effect on the amount paid to pharmacies (or the timing of such payments) with respect to covered part D drugs dispensed to the enrollee; and</text></item><item id="HB129D66D848C4C2E8CB27DCB269913AC"><enum>(gg)</enum><text>shall have in place a financial reconciliation process to correct inaccuracies in payments made by an enrollee under this subparagraph with respect to covered part D drugs during the plan year.</text></item></subclause><subclause id="HDB20FDA2A04D400EBC50E0AC11C6B39A"><enum>(IV)</enum><header>Failure to pay amount billed</header><text>If an enrollee fails to pay the amount billed for a month as required under this subparagraph—</text><item id="id6734F9AF96D94B0DA55775A6342FF7FF"><enum>(aa)</enum><text>the election of the enrollee pursuant to clause (i) shall be terminated and the enrollee shall pay the cost-sharing otherwise applicable for any covered part D drugs subsequently dispensed to the enrollee up to the annual out-of-pocket threshold specified in paragraph (4)(B); and</text></item><item id="id5C070F62113A4A40A693831FDEE6FFC2"><enum>(bb)</enum><text>the PDP sponsor or MA organization may preclude the enrollee from making an election pursuant to clause (i) in a subsequent plan year.</text></item></subclause><subclause id="H2795826FF4AD4E50977F7581F0FA0974" commented="no"><enum>(V)</enum><header>Clarification regarding past due amounts</header><text>Nothing in this subparagraph shall be construed as prohibiting a PDP sponsor or an MA organization from billing an enrollee for an amount owed under this subparagraph.</text></subclause><subclause id="H28382BC5AC974488991A6865C8945758"><enum>(VI)</enum><header>Treatment of unsettled balances</header><text>Any unsettled balances with respect to amounts owed under this subparagraph shall be treated as plan losses and the Secretary shall not be liable for any such balances outside of those assumed as losses estimated in plan bids.</text></subclause></clause></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="H2571B78325D245AE9260C1C859E98FFB"><enum>(2)</enum><text>in paragraph (4)—</text><subparagraph id="H40C4DE6F57F542DE8D01FF6DCA0FBE82"><enum>(A)</enum><text>in subparagraph (C), by striking <quote>subparagraph (E)</quote> and inserting <quote>subparagraph (E) or subparagraph (F)</quote>; and</text></subparagraph><subparagraph id="H87888B690E074B6D921239DCF824E8FB"><enum>(B)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block id="HE14A89AC453A4DD181C0349B0C25F131" style="OLC" changed="added" reported-display-style="italic"><subparagraph id="HEACE987023D74227B896F0C83AA0370E"><enum>(F)</enum><header>Inclusion of costs paid under maximum monthly cap option</header><text>In applying subparagraph (A), with respect to an enrollee who has made an election pursuant to clause (i) of paragraph (2)(E), costs shall be treated as incurred if such costs are paid by a PDP sponsor or an MA organization under the option provided under such paragraph.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="H8932B65FD01A494F8F860CD4D624996E"><enum>(b)</enum><header>Application to alternative prescription drug coverage</header><text>Section 1860D–2(c) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-102">42 U.S.C. 1395w–102(c)</external-xref>) is amended by adding at the end the following new paragraph:</text><quoted-block id="H64F91CB0186D460AB73234AEC4D65D2E" style="OLC" changed="added" reported-display-style="italic"><paragraph id="H82B8FC160CFF4C84B51564FC15592AF0"><enum>(4)</enum><header>Same maximum monthly cap on cost-sharing</header><text>The maximum monthly cap on cost-sharing payments shall apply to coverage with respect to an enrollee who has made an election pursuant to clause (i) of subsection (b)(2)(E) under the option provided under such subsection.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H78AE175A021048F9B4FA11D54B8C1918"><enum>(c)</enum><header>Implementation for 2025</header><text display-inline="yes-display-inline">The Secretary shall implement this section, including the amendments made by this section, for 2025 by program instruction or other forms of program guidance.</text></subsection><subsection id="H9BA7B43D7F644704B8DEB65727B04AB5"><enum>(d)</enum><header>Funding</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there are appropriated to the Centers for Medicare & Medicaid Services, out of any money in the Treasury not otherwise appropriated, $10,000,000 for fiscal year 2023, to remain available until expended, to carry out the provisions of, including the amendments made by, this section. </text></subsection></section></part><part id="HB61AF823499E41208D965232138D7627"><enum>4</enum><header>Continued Delay of Implementation of Prescription Drug Rebate Rule</header><section id="id443A89CF8741490E81440DBC46DA7357"><enum>11301.</enum><header>Extension of moratorium on implementation of rule relating to eliminating the anti-kickback statute safe harbor protection for prescription drug rebates</header><text display-inline="no-display-inline">The Secretary of Health and Human Services shall not, prior to January 1, 2032, implement, administer, or enforce the provisions of the final rule published by the Office of the Inspector General of the Department of Health and Human Services on November 30, 2020, and titled <quote>Fraud and Abuse; Removal of Safe Harbor Protection for Rebates Involving Prescription Pharmaceuticals and Creation of New Safe Harbor Protection for Certain Point-of-Sale Reductions in Price on Prescription Pharmaceuticals and Certain Pharmacy Benefit Manager Service Fees </quote> (85 Fed. Reg. 76666). </text></section></part><part id="H64F9049B2BB043D394E52EF488A19C79" commented="no"><enum>5</enum><header>Miscellaneous</header><section id="id61E1D6AA04E94369BEA3202BCFAF4189" commented="no"><enum>11401.</enum><header>Coverage of adult vaccines recommended by the Advisory Committee on Immunization Practices under Medicare part D</header><subsection id="id9069DF3CA84D4400B2153DD7E29AAE82" commented="no"><enum>(a)</enum><header>Ensuring treatment of cost-sharing and deductible is consistent with treatment of vaccines under medicare part b</header><text>Section 1860D–2 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-102">42 U.S.C. 1395w–102</external-xref>), as amended by sections 11201 and 11202, is amended—</text><paragraph id="id8B05E0F296D247B9A0E7E06E80EBF250" commented="no"><enum>(1)</enum><text>in subsection (b)—</text><subparagraph id="id6FDF9771DD804EE5ABDFF1E548F888EB" commented="no"><enum>(A)</enum><text>in paragraph (1)(A), by striking <quote>The coverage</quote> and inserting <quote>Subject to paragraph (8), the coverage</quote>;</text></subparagraph><subparagraph id="idC60036320731482B9A40DBA4A78FD8CF" commented="no"><enum>(B)</enum><text>in paragraph (2)—</text><clause commented="no" id="id86AB259BB6C54CFD8A229BAF36B59973"><enum>(i)</enum><text>in subparagraph (A), by inserting <quote>and paragraph (8)</quote> after <quote>and (E)</quote>;</text></clause><clause commented="no" id="id5B425836932F4B719EE423469F2FA966"><enum>(ii)</enum><text>in subparagraph (C)(i), in the matter preceding subclause (I), by striking <quote>paragraph (4)</quote> and inserting <quote>paragraphs (4) and (8)</quote>; and</text></clause><clause commented="no" id="id1F31F23072384502AF3AD8C1900A559B"><enum>(iii)</enum><text>in subparagraph (D)(i), in the matter preceding subclause (I), by striking <quote>paragraph (4)</quote> and inserting <quote>paragraphs (4) and (8)</quote>;</text></clause></subparagraph><subparagraph id="idcde5b41041dc4893b118bc646b8424cc"><enum>(C)</enum><text>in paragraph (3)(A), in the matter preceding clause (i), by striking <quote>and (4)</quote> and inserting <quote>(4), and (8)</quote>; </text></subparagraph><subparagraph id="idE73397F0E62D41C9888223A7AE858108" commented="no"><enum>(D)</enum><text>in paragraph (4)(A)(i), by striking <quote>The coverage</quote> and inserting <quote>Subject to paragraph (8), the coverage</quote>; and</text></subparagraph><subparagraph id="id413BDE11F6EF49BCA76CDF0EACA3076B" commented="no"><enum>(E)</enum><text>by adding at the end the following new paragraph:</text><quoted-block id="idCC29555908154C198AC223998E253676" style="OLC" changed="added" reported-display-style="italic"><paragraph id="id5A41EFC17EBD4CC2A9076098CBF9DD28" commented="no"><enum>(8)</enum><header>Treatment of cost-sharing for adult vaccines recommended by the advisory committee on immunization practices consistent with treatment of vaccines under part b</header><subparagraph id="id3CFA06D3181A47FCA7DF3F535D673BE6" commented="no"><enum>(A)</enum><header>In general</header><text>For plan years beginning on or after January 1, 2023, with respect to an adult vaccine recommended by the Advisory Committee on Immunization Practices (as defined in subparagraph (B))—</text><clause commented="no" id="id9451F26F678B40648A76ECF55B8B1DBA"><enum>(i)</enum><text>the deductible under paragraph (1) shall not apply; and</text></clause><clause commented="no" id="idBF0C79E2E21A4A01B0E222831A0B04D3"><enum>(ii)</enum><text>there shall be no coinsurance or other cost-sharing under this part with respect to such vaccine.</text></clause></subparagraph><subparagraph id="id443ACBF62D5C48F5BFEA5F671FBEEEA2" commented="no"><enum>(B)</enum><header>Adult vaccines recommended by the advisory committee on immunization practices</header><text>For purposes of this paragraph, the term <quote>adult vaccine recommended by the Advisory Committee on Immunization Practices</quote> means a covered part D drug that is a vaccine licensed under section 351 of the Public Health Service Act for use by adult populations and administered in accordance with recommendations of the Advisory Committee on Immunization Practices of the Centers for Disease Control and Prevention.</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="id2CD425B04876484A9336573AC0E96FCD" commented="no"><enum>(2)</enum><text>in subsection (c), by adding at the end the following new paragraph: </text><quoted-block style="OLC" id="id832D49544E8F4D42A5E1F9B506BBA627" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="id3FB5878199E24988BBB1CC1851135992" commented="no"><enum>(5)</enum><header>Treatment of cost-sharing for adult vaccines recommended by the advisory committee on immunization practices</header><text display-inline="yes-display-inline">The coverage is in accordance with subsection (b)(8).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="id4BF5917B6F804AEEB2AF0D5A09A14965" commented="no"><enum>(b)</enum><header>Conforming amendments to cost-sharing for low-income individuals</header><text>Section 1860D–14(a) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-114">42 U.S.C. 1395w–114(a)</external-xref>), as amended by <external-xref legal-doc="usc" parsable-cite="usc/26/11201">section 11201,</external-xref> is amended—</text><paragraph id="id5BACAD9E270B41C0B5F357F9B40961E7" commented="no"><enum>(1)</enum><text>in paragraph (1)(D), in each of clauses (ii) and (iii), by striking <quote>In the case</quote> and inserting <quote>Subject to paragraph (6), in the case</quote>;</text></paragraph><paragraph id="idB83CDC060DEE4DCDB834DB21FEF964AA" commented="no"><enum>(2)</enum><text>in paragraph (2)—</text><subparagraph id="idA2AF46057B794C75940297A13B882580" commented="no"><enum>(A)</enum><text>in subparagraph (B), by striking <quote>A reduction</quote> and inserting <quote>Subject to section 1860D–2(b)(8), a reduction</quote>;</text></subparagraph><subparagraph id="id0272992BF19A4F5C8010F6B81E1F037D" commented="no"><enum>(B)</enum><text>in subparagraph (D), by striking <quote>The substitution</quote> and inserting <quote>Subject to paragraph (6), the substitution</quote>; and</text></subparagraph><subparagraph id="id2F0B14E9EBA94CB599D03C7B74244D58"><enum>(C)</enum><text>in subparagraph (E), by striking <quote>subsection (c)</quote> and inserting <quote>paragraph (6) of this subsection and subsection (c)</quote>; and </text></subparagraph></paragraph><paragraph id="idE07DC304EAA2488E8DFCB3C5210D6E20" commented="no"><enum>(3)</enum><text>by adding at the end the following new paragraph:</text><quoted-block id="id0E802E44289949D2B9E4BADDEF0A19E2" style="OLC" changed="added" reported-display-style="italic"><paragraph id="id3E922BA48DD944D180CF89313A1C741A" commented="no"><enum>(6)</enum><header>No application of cost-sharing or deductible for adult vaccines recommended by the advisory committee on immunization practices</header><text>For plan years beginning on or after January 1, 2023, with respect to an adult vaccine recommended by the Advisory Committee on Immunization Practices (as defined in section 1860D–2(b)(8)(B))—</text><subparagraph commented="no" id="idB80CD2AAC1474AE99A1DCEC6C6DCF9EE"><enum>(A)</enum><text>the deductible under section 1860D–2(b)(1) shall not apply; and</text></subparagraph><subparagraph commented="no" id="idE31B0B846CFC4EE281BFC972F4696832"><enum>(B)</enum><text>there shall be no cost-sharing under this section with respect to such vaccine.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="id74ad11cbf0f84eedaa0cf77881f19faa"><enum>(c)</enum><header>Temporary retrospective subsidy</header><paragraph id="idC6790D11D54442948C872AEA3617CDE5"><enum>(1)</enum><header>In general</header><text>Section 1860D–15 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-115">42 U.S.C. 1395w–115</external-xref>) is amended by adding at the end the following new subsection:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id0a51dbe26d5d46adaf75b143912bec96" changed="added" reported-display-style="italic"><subsection id="id16792e9b5c7440e4b28940fa83dfefdd"><enum>(h)</enum><header>Temporary retrospective subsidy for reduction in cost-sharing and deductible for adult vaccines recommended by the advisory committee on immunization practices during 2023</header><paragraph id="id8afb86ffc481411ba94de96e32d65b88"><enum>(1)</enum><header>In general</header><text>In addition to amounts otherwise payable under this section to a PDP sponsor of a prescription drug plan or an MA organization offering an MA–PD plan, for plan year 2023, the Secretary shall provide the PDP sponsor or MA organization offering the plan subsidies in an amount equal to the aggregate reduction in cost-sharing and deductible by reason of the application of section 1860D–2(b)(8) for individuals under the plan during the year.</text></paragraph><paragraph id="id80e59ef3a29b4bc283605310f5f45bf9"><enum>(2)</enum><header>Timing</header><text>The Secretary shall provide a subsidy under paragraph (1), as applicable, not later than 18 months following the end of the applicable plan year.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id21C1AD2534074604BDC78BC3FFC86A60"><enum>(2)</enum><header>Treatment as incurred costs</header><text>Section 1860D–2(b)(4)(C)(iii)(I) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-102">42 U.S.C. 1395w–102(b)(4)(C)(iii)(I)</external-xref>), as amended by <external-xref legal-doc="usc" parsable-cite="usc/26/11201">section 11201(a)(3)(C),</external-xref> is amended—</text><subparagraph id="id84AB4DEBF0024D10BB0B02CF3CF6BDBB"><enum>(A)</enum><text>in item (cc), by striking <quote>or</quote> at the end; and</text></subparagraph><subparagraph id="idC55553F7431E444EB77CB72B7AD7AC0C"><enum>(B)</enum><text>by adding at the end the following new item:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idFC0F5C4D0E5A4A6CACC583D8428194C2" changed="added" reported-display-style="italic"><item id="idF4C1D9FB02B54928A7A0D5965BED417A"><enum>(dd)</enum><text>under section 1860D–15(h); or</text></item><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="id330DAD6F0FE143D2A6B1042ED6091B02" commented="no"><enum>(d)</enum><header>Rule of construction</header><text display-inline="yes-display-inline">Nothing in this section shall be construed as limiting coverage under part D of title XVIII of the Social Security Act for vaccines that are not recommended by the Advisory Committee on Immunization Practices.</text></subsection><subsection id="id740AC48BE1454B969AB7A595699B4DFC" commented="no"><enum>(e)</enum><header>Implementation for 2023 through 2025</header><text display-inline="yes-display-inline">The Secretary shall implement this section, including the amendments made by this section, for 2023, 2024, and 2025, by program instruction or other forms of program guidance.</text></subsection></section><section id="H639ECFDCBFC84C47B6B427533DECEDC0"><enum>11402.</enum><header>Payment for biosimilar biological products during initial period</header><text display-inline="no-display-inline">Section 1847A(c)(4) of the Social Security Act (42 U.S.C. 1395w–3a(c)(4)) is amended—</text><paragraph id="H3F42F374B8F34200AB66015D977FA034"><enum>(1)</enum><text>in each of subparagraphs (A) and (B), by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and moving such subclauses 2 ems to the right;</text></paragraph><paragraph id="H96F4EACE34E14D9ABA05B7F8874F27A1"><enum>(2)</enum><text>by redesignating subparagraphs (A) and (B) as clauses (i) and (ii) and moving such clauses 2 ems to the right;</text></paragraph><paragraph id="H1BA0DF34B4CF40F8A15306EFFE8FBCAC"><enum>(3)</enum><text>by striking <quote><header-in-text level="paragraph" style="OLC">unavailable</header-in-text>.—In the case</quote> and inserting “<header-in-text level="paragraph" style="OLC">unavailable</header-in-text>.—</text><quoted-block display-inline="no-display-inline" id="H17E7C7C1526941B481039893FA9DF7B1" style="OLC" changed="added" reported-display-style="italic"><subparagraph id="HB34704A30ED04E38A9941F05FFCF1BE9"><enum>(A)</enum><header>In general</header><text>Subject to subparagraph (B), in the case</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph id="H582C83D212EB4E7597C4EBC52C0D3811"><enum>(4)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block display-inline="no-display-inline" id="H84F1EAF7675B4CBBADB5DA512256A8B0" style="OLC" changed="added" reported-display-style="italic"><subparagraph id="HEADF3519B7F8489CB327841E62D83D51"><enum>(B)</enum><header>Limitation on payment amount for biosimilar biological products during initial period</header><text>In the case of a biosimilar biological product furnished on or after July 1, 2024, during the initial period described in subparagraph (A) with respect to the biosimilar biological product, the amount payable under this section for the biosimilar biological product is the lesser of the following:</text><clause commented="no" id="H43BB243ADEF84E6997FE99217E44ADE2"><enum>(i)</enum><text>The amount determined under clause (ii) of such subparagraph for the biosimilar biological product.</text></clause><clause commented="no" id="H49E482DBA9AA4BB18865EA4B7E26A558"><enum>(ii)</enum><text>The amount determined under subsection (b)(1)(B) for the reference biological product.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section><section id="H1AE8CB40403D423BA0949FE0C34AC105"><enum>11403.</enum><header>Temporary increase in Medicare part B payment for certain biosimilar biological products</header><text display-inline="no-display-inline">Section 1847A(b)(8) of the Social Security Act (42 U.S.C. 1395w–3a(b)(8)) is amended—</text><paragraph commented="no" display-inline="no-display-inline" id="H3A3CC607F4E348CBAEE058DC768CE46D"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and moving the margin of each such redesignated clause 2 ems to the right;</text></paragraph><paragraph id="H245BEF9FD5664AE0A0B767786C6867D3"><enum>(2)</enum><text>by striking <quote><header-in-text level="paragraph" style="OLC">product</header-in-text>.—The amount</quote> and inserting the following: “<header-in-text level="paragraph" style="OLC">product</header-in-text>.—</text><quoted-block display-inline="no-display-inline" id="H8A01C7CB545643CB81E85D533F063D22" style="OLC" changed="added" reported-display-style="italic"><subparagraph id="HB44F6700C0414583AFD2A6206B047AA5"><enum>(A)</enum><header>In general</header><text>Subject to subparagraph (B), the amount</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph id="H0071E586D2F74FA38F894DCBCB3D510F"><enum>(3)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block display-inline="no-display-inline" id="H343110122F0E4F1AAFF615710C321D76" style="OLC" changed="added" reported-display-style="italic"><subparagraph id="H7C63C9C520B14D3194AD67FA76E244EA"><enum>(B)</enum><header>Temporary payment increase</header><clause id="HC4F9399D454B4DD2B33AB7AE814EC79F"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of a qualifying biosimilar biological product that is furnished during the applicable 5-year period for such product, the amount specified in this paragraph for such product with respect to such period is the sum determined under subparagraph (A), except that clause (ii) of such subparagraph shall be applied by substituting <quote>8 percent</quote> for <quote>6 percent</quote>.</text></clause><clause id="H862AD6B973FE4CE78CAC060DC70B437B"><enum>(ii)</enum><header>Applicable 5-year period</header><text>For purposes of clause (i), the applicable 5-year period for a qualifying biosimilar biological product is—</text><subclause id="HC88DC83EC04347589D43CC5E799BA09E"><enum>(I)</enum><text>in the case of such a product for which payment was made under this paragraph as of September 30, 2022, the 5-year period beginning on October 1, 2022; and</text></subclause><subclause commented="no" display-inline="no-display-inline" id="H0F0D2472F50D4448BF087A0033774148"><enum>(II)</enum><text display-inline="yes-display-inline">in the case of such a product for which payment is first made under this paragraph during a calendar quarter during the period beginning October 1, 2022, and ending December 31, 2027, the 5-year period beginning on the first day of such calendar quarter during which such payment is first made.</text></subclause></clause><clause id="HF0B9700CB00D4A07B018B76DE0ED5D27"><enum>(iii)</enum><header>Qualifying biosimilar biological product defined</header><text display-inline="yes-display-inline">For purposes of this subparagraph, the term <term>qualifying biosimilar biological product</term> means a biosimilar biological product described in paragraph (1)(C) with respect to which—</text><subclause id="HC6D14942C9074698B8BBA6C964E1FF7B"><enum>(I)</enum><text>in the case of a product described in clause (ii)(I), the average sales price under paragraph (8)(A)(i) for a calendar quarter during the 5-year period described in such clause is not more than the average sales price under paragraph (4)(A) for such quarter for the reference biological product; and</text></subclause><subclause id="H042EEEF306BC471DB00DA94035EBBD64"><enum>(II)</enum><text display-inline="yes-display-inline">in the case of a product described in clause (ii)(II), the average sales price under paragraph (8)(A)(i) for a calendar quarter during the 5-year period described in such clause is not more than the average sales price under paragraph (4)(A) for such quarter for the reference biological product.</text></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section><section id="id828E9DF0F3A843159DB1DEC07B1E6B72"><enum>11404.</enum><header>Expanding eligibility for low-income subsidies under part D of the Medicare program</header><text display-inline="no-display-inline">Section 1860D–14(a) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-114">42 U.S.C. 1395w–114(a)</external-xref>), as amended by sections 11201 and 11401, is amended—</text><paragraph id="idcdc464fb0c4c4f2a976f8f995ea84361"><enum>(1)</enum><text>in the subsection heading, by striking <quote><header-in-text style="OLC" level="subsection">individuals</header-in-text></quote> and all that follows through <quote><header-in-text style="OLC" level="subsection">line</header-in-text></quote> and inserting <quote><header-in-text style="OLC" level="subsection">certain individuals</header-in-text></quote>;</text></paragraph><paragraph id="id6405ce3920e24ff78a13286314ff18bd"><enum>(2)</enum><text>in paragraph (1)—</text><subparagraph id="id27f76292be5445d1b91b6cb4e78f1ac1"><enum>(A)</enum><text>by striking the paragraph heading and inserting <quote><header-in-text style="OLC" level="paragraph">Individuals with certain low incomes</header-in-text></quote>; and</text></subparagraph><subparagraph id="id3d93040bee4a435eb59dbad63860a1b5"><enum>(B)</enum><text>in the matter preceding subparagraph (A)—</text><clause id="idAC0BD75D6EBA473EAFC86F810652B877"><enum>(i)</enum><text>by inserting <quote>(or, with respect to a plan year beginning on or after January 1, 2024, 150 percent)</quote> after <quote>135 percent</quote>; and</text></clause><clause id="id004e79f6dcd74638b01d1cd5c60dbc77"><enum>(ii)</enum><text>by inserting <quote>(or, with respect to a plan year beginning on or after January 1, 2024, paragraph (3)(E))</quote> after <quote>the resources requirement described in paragraph (3)(D)</quote>; and </text></clause></subparagraph></paragraph><paragraph id="id1e269ff847a043949cacb137ea4198a9"><enum>(3)</enum><text>in paragraph (2)—</text><subparagraph id="id15e10e47af134250bb7e9faae7b2dcfc"><enum>(A)</enum><text>by striking the paragraph heading and inserting <quote><header-in-text style="OLC" level="paragraph">Other low-income individuals</header-in-text></quote>; and</text></subparagraph><subparagraph id="id4004f3cc565e4aa6bcc2002f80c8cf8a"><enum>(B)</enum><text>in the matter preceding subparagraph (A), by striking <quote>In the case of a subsidy</quote> and inserting <quote>With respect to a plan year beginning before January 1, 2024, in the case of a subsidy</quote>.</text></subparagraph></paragraph></section><section id="id42C2B85BEF02415DBD65212A18F4B7FE"><enum>11405.</enum><header>Improving access to adult vaccines under Medicaid and CHIP</header><subsection id="HC3395D4C61124D349CA7E16AA21B5D84"><enum>(a)</enum><header>Medicaid</header><paragraph id="HA77C8D18C833450B8A8ED425950C9506"><enum>(1)</enum><header>Requiring coverage of adult vaccinations</header><subparagraph id="HBA2775342F144368A78902F0AD5D809E"><enum>(A)</enum><header>In general</header><text>Section 1902(a)(10)(A) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396a">42 U.S.C. 1396a(a)(10)(A)</external-xref>) is amended in the matter preceding clause (i) by inserting <quote>(13)(B),</quote> after <quote>(5),</quote>.</text></subparagraph><subparagraph id="HFA3ADEA867C04334BB11E607545180BC" commented="no"><enum>(B)</enum><header>Medically needy</header><text>Section 1902(a)(10)(C)(iv) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396a">42 U.S.C. 1396a(a)(10)(C)(iv)</external-xref>) is amended by inserting <quote>, (13)(B),</quote> after <quote>(5)</quote>. </text></subparagraph></paragraph><paragraph id="H5745D8C6CA4A456F8F6B3D28002713BC"><enum>(2)</enum><header>No cost sharing for vaccinations</header><subparagraph id="HF19BB1707D3C433DB8BE97A7EE8E66D1"><enum>(A)</enum><header>General cost-sharing limitations</header><text>Section 1916 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396o">42 U.S.C. 1396o</external-xref>) is amended—</text><clause id="HDCAFC7058D5441ADAF535CF4CA7B7968"><enum>(i)</enum><text>in subsection (a)(2)—</text><subclause id="H82CDFA9C9BBE471FBD7FE05BBF42EB94"><enum>(I)</enum><text>in subparagraph (G), by inserting a comma after <quote>State plan</quote>;</text></subclause><subclause id="H287F7045D23A4F95A45DB737BCA0F8DE"><enum>(II)</enum><text>in subparagraph (H), by striking <quote>; or</quote> and inserting a comma;</text></subclause><subclause id="H8008772AC56642EFA23629AB43551172"><enum>(III)</enum><text>in subparagraph (I), by striking <quote>; and</quote> and inserting <quote>, or</quote>; and</text></subclause><subclause id="H22A14967A9534A27B10E7126A3EBC636"><enum>(IV)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HACD372B2E5C34EDAB1EC194CA30436E3" changed="added" reported-display-style="italic"><subparagraph id="HF6722E8CFEA34CABAFB9FF5AFFFBF4D7"><enum>(J)</enum><text>vaccines described in section 1905(a)(13)(B) and the administration of such vaccines; and</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></subclause></clause><clause id="H9C976448B80E470CAF62C889134F2CE9"><enum>(ii)</enum><text>in subsection (b)(2)—</text><subclause id="H837AAABA5E104A2E8516BBBD4125E670"><enum>(I)</enum><text>in subparagraph (G), by inserting a comma after <quote>State plan</quote>;</text></subclause><subclause id="H674756CD9FC84DE8BB87AF911D4B06F7"><enum>(II)</enum><text>in subparagraph (H), by striking <quote>; or</quote> and inserting a comma;</text></subclause><subclause id="HC37CCA824C2C4086AE44EDB9A62DC3BD"><enum>(III)</enum><text>in subparagraph (I), by striking <quote>; and</quote> and inserting <quote>, or</quote>; and</text></subclause><subclause id="H33AAE1CF819F424F8EF5498A3F9CEDDF"><enum>(IV)</enum><text>by adding at the end the following new subparagraph: </text><quoted-block style="OLC" display-inline="no-display-inline" id="HDBA8C3512C1E4F5997A17CAD47A2EB6B" changed="added" reported-display-style="italic"><subparagraph id="HD44C194FF7444F369224F38F32D86CF8"><enum>(J)</enum><text>vaccines described in section 1905(a)(13)(B) and the administration of such vaccines; and</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subclause></clause></subparagraph><subparagraph id="HBB81113E0A6042568E3199D4C4A847C6"><enum>(B)</enum><header>Application to alternative cost sharing</header><text>Section 1916A(b)(3)(B) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396o-1">42 U.S.C. 1396o–1(b)(3)(B)</external-xref>) is amended by adding at the end the following new clause:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H0B03F242FDE146FB84A8037E5ED1749F" changed="added" reported-display-style="italic"><clause id="H3AC9595864FE4E02BD43B22477618837"><enum>(xiv)</enum><text>Vaccines described in section 1905(a)(13)(B) and the administration of such vaccines.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="HED8708E589F04C2A883A9CCBC4A6D3C9"><enum>(3)</enum><header>Increased FMAP for adult vaccines and their administration</header><text>Section 1905(b) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396d">42 U.S.C. 1396d(b)</external-xref>) is amended—</text><subparagraph id="HF8EE07FDC49843139421E071440AD6AE"><enum>(A)</enum><text>by striking <quote>and (5)</quote> and inserting <quote>(5)</quote>;</text></subparagraph><subparagraph id="H3BE2579612DB433BB9AA1CE1B9AB6150"><enum>(B)</enum><text>by striking <quote>services and vaccines described in subparagraphs (A) and (B) of subsection (a)(13), and prohibits cost-sharing for such services and vaccines</quote> and inserting <quote>services described in subsection (a)(13)(A), and prohibits cost-sharing for such services</quote>;</text></subparagraph><subparagraph id="H0C0FE0F1186449208E225B668270D626"><enum>(C)</enum><text>by striking <quote>medical assistance for such services and vaccines</quote> and inserting <quote>medical assistance for such services</quote>; and</text></subparagraph><subparagraph id="H2BFD18C3B8F14C3D95655BFF23EB61C5" commented="no" display-inline="no-display-inline"><enum>(D)</enum><text>by inserting <quote>, and (6) during the first 8 fiscal quarters beginning on or after the effective date of this clause, in the case of a State which, as of the date of enactment of the Act titled <quote>An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14</quote>, provides medical assistance for vaccines described in subsection (a)(13)(B) and their administration and prohibits cost-sharing for such vaccines, the Federal medical assistance percentage, as determined under this subsection and subsection (y), shall be increased by 1 percentage point with respect to medical assistance for such vaccines and their administration</quote> before the first period.</text></subparagraph></paragraph></subsection><subsection id="H5C4099ED882143E6BB825C84C8FDF820"><enum>(b)</enum><header>CHIP</header><paragraph id="H010929C9EC8940818FFAD856A15B6F37"><enum>(1)</enum><header>Requiring coverage of adult vaccinations</header><text>Section 2103(c) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1397cc">42 U.S.C. 1397cc(c)</external-xref>) is amended by adding at the end the following paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HBD4A6FBD492441B0A9955B186894D1BA" changed="added" reported-display-style="italic"><paragraph id="HCE614E7863CD47C5A1BE1078BF2D8225"><enum>(12)</enum><header>Required coverage of approved, recommended adult vaccines and their administration</header><text>Regardless of the type of coverage elected by a State under subsection (a), if the State child health plan or a waiver of such plan provides child health assistance or pregnancy-related assistance (as defined in section 2112) to an individual who is 19 years of age or older, such assistance shall include coverage of vaccines described in section 1905(a)(13)(B) and their administration.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H71A5578FE51A4EAF8BAEC46AF407158C"><enum>(2)</enum><header>No cost-sharing for vaccinations</header><text>Section 2103(e)(2) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1397cc">42 U.S.C. 1397cc(e)(2)</external-xref>) is amended by inserting <quote>vaccines described in subsection (c)(12) (and the administration of such vaccines),</quote> after <quote>in vitro diagnostic products described in subsection (c)(10) (and administration of such products),</quote>.</text></paragraph></subsection><subsection display-inline="no-display-inline" commented="no" id="HFDBA04CDC1344F7D88E958E65BC03990"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section take effect on the 1st day of the 1st fiscal quarter that begins on or after the date that is 1 year after the date of enactment of this Act and shall apply to expenditures made under a State plan or waiver of such plan under title XIX of the Social Security Act (42 U.S.C. 1396 through 1396w–6) or under a State child health plan or waiver of such plan under title XXI of such Act (42 U.S.C. 1397aa through 1397mm) on or after such effective date. </text></subsection></section><section id="HB498748A51EA4060B7E2A5B27676A5E3" commented="no"><enum>11406.</enum><header>Appropriate cost-sharing for covered insulin products under Medicare part D</header><subsection id="H165EBB891F4942D4ABC20A60200195E5" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 1860D–2 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-102">42 U.S.C. 1395w–102</external-xref>), as amended by sections 11201, 11202, and 11401, is amended—</text><paragraph id="id451F85C97C1D422D9D935A5B4B320036" commented="no"><enum>(1)</enum><text>in subsection (b)—</text><subparagraph id="H1648D1F028E74B64BA2E0D5E47D92541" commented="no"><enum>(A)</enum><text>in paragraph (1)(A), by striking <quote>paragraph (8)</quote> and inserting <quote>paragraphs (8) and (9)</quote>;</text></subparagraph><subparagraph commented="no" id="id7d516b1795dc4f1b944c8eec72b8f786"><enum>(B)</enum><text>in paragraph (2)—</text><clause commented="no" id="id0d9540f7bb6e40e6b79163ec0a821314"><enum>(i)</enum><text>in subparagraph (A), by striking <quote>paragraph (8)</quote> and inserting <quote>paragraphs (8) and (9)</quote>;</text></clause><clause commented="no" id="id3267a4e30a5d4dad8e8553582f5f47d7"><enum>(ii)</enum><text>in subparagraph (C)(i), in the matter preceding subclause (I), by striking <quote>and (8)</quote> and inserting <quote>, (8), and (9)</quote>; and</text></clause><clause commented="no" id="id88ad5139b2dd4dc4b7e01e4540cfc1b5"><enum>(iii)</enum><text>in subparagraph (D)(i), in the matter preceding subclause (I), by striking <quote>and (8)</quote> and inserting <quote>, (8), and (9)</quote>;</text></clause></subparagraph><subparagraph commented="no" id="id612E7BA3DF8543949596E3EC4466A0D1"><enum>(C)</enum><text>in paragraph (3)(A), in the matter preceding clause (i), by striking <quote>and (8)</quote> and inserting <quote>(8), and (9)</quote>;</text></subparagraph><subparagraph id="H6BA982FC2B644791A85F7E6A5B5B9BB1" commented="no"><enum>(D)</enum><text>in paragraph (4)(A)(i), by striking <quote>paragraph (8)</quote> and inserting <quote>paragraphs (8) and (9)</quote>; and</text></subparagraph><subparagraph id="id90193F6528944ED5AD278EE10C939988" commented="no"><enum>(E)</enum><text>by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HEAC2C99CD5D943128256659721577D63" changed="added" reported-display-style="italic"><paragraph id="HE3583D599F6948CEB2CE179D312FC6C9" commented="no"><enum>(9)</enum><header>Treatment of cost-sharing for covered insulin products</header><subparagraph commented="no" id="id4E2F4D701EEC4D7ABD880EC950F560DC"><enum>(A)</enum><header>No application of deductible</header><text>For plan year 2023 and subsequent plan years, the deductible under paragraph (1) shall not apply with respect to any covered insulin product.</text></subparagraph><subparagraph commented="no" id="id2BADE1390581444BB9D6378498031DBF"><enum>(B)</enum><header>Application of cost-sharing</header><clause commented="no" id="id8866F80DA8E44E29A5ADE2522663F23D"><enum>(i)</enum><header>Plan years 2023 and 2024</header><text>For plan years 2023 and 2024, the coverage provides benefits for any covered insulin product, regardless of whether an individual has reached the initial coverage limit under paragraph (3) or the out-of-pocket threshold under paragraph (4), with cost-sharing for a month’s supply that does not exceed the applicable copayment amount.</text></clause><clause id="H95382B296A3A431FADAE26B8BB157E6F" commented="no"><enum>(ii)</enum><header>Plan year 2025 and subsequent plan years</header><text>For a plan year beginning on or after January 1, 2025, the coverage provides benefits for any covered insulin product, prior to an individual reaching the out-of-pocket threshold under paragraph (4), with cost-sharing for a month’s supply that does not exceed the applicable copayment amount.</text></clause></subparagraph><subparagraph id="H73D702B84B63498DAF62CC0B732F2063" commented="no"><enum>(C)</enum><header>Covered insulin product</header><text display-inline="yes-display-inline">In this paragraph, the term <quote>covered insulin product</quote> means an insulin product that is a covered part D drug covered under the prescription drug plan or MA–PD plan that is approved under section 505 of the Federal Food, Drug, and Cosmetic Act or licensed under section 351 of the Public Health Service Act and marketed pursuant to such approval or licensure, including any covered insulin product that has been deemed to be licensed under section 351 of the Public Health Service Act pursuant to section 7002(e)(4) of the Biologics Price Competition and Innovation Act of 2009 and marketed pursuant to such section.</text></subparagraph><subparagraph id="H1885F3DA9A8040AB9A5CFF09C406128B" commented="no"><enum>(D)</enum><header>Applicable copayment amount</header><text>In this paragraph, the term <quote>applicable copayment amount</quote> means, with respect to a covered insulin product under a prescription drug plan or an MA–PD plan dispensed—</text><clause commented="no" id="id50EB39F41BDA4DDD83A3397373DAF188"><enum>(i)</enum><text>during plan years 2023, 2024, and 2025, $35; and</text></clause><clause commented="no" id="id2B47FDBD2D7141BBBB87F00ACD49702D"><enum>(ii)</enum><text>during plan year 2026 and each subsequent plan year, the lesser of—</text><subclause commented="no" id="id50789BDEC47D4369AB98518C65E9B590"><enum>(I)</enum><text>$35;</text></subclause><subclause commented="no" id="idB32B433563C84B248CF52FC01EC98D32"><enum>(II)</enum><text>an amount equal to 25 percent of the maximum fair price established for the covered insulin product in accordance with part E of title XI; or</text></subclause><subclause commented="no" id="idF0CE322980014C67BA8C0092668BF7D1"><enum>(III)</enum><text>an amount equal to 25 percent of the negotiated price of the covered insulin product under the prescription drug plan or MA–PD plan.</text></subclause></clause></subparagraph><subparagraph commented="no" id="id2F8934094F87466C90A166A3A34AA2D8"><enum>(E)</enum><header>Special rule for first 3 months of 2023</header><text>With respect to a month’s supply of a covered insulin product dispensed during the period beginning on January 1, 2023, and ending on March 31, 2023, a PDP sponsor offering a prescription drug plan or an MA organization offering an MA–PD plan shall reimburse an enrollee within 30 days for any cost-sharing paid by such enrollee that exceeds the cost-sharing applied by the prescription drug plan or MA–PD plan under subparagraph (B)(i) at the point-of-sale for such month’s supply.</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="id0527C62E60E34DD99364069A63912133" commented="no"><enum>(2)</enum><text>in subsection (c), by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id2E2B0065794848AD8E33CCAC1F6A6FAA" changed="added" reported-display-style="italic"><paragraph id="idE8A91988919747059CFE4D7E50C56866" commented="no"><enum>(6)</enum><header>Treatment of cost-sharing for covered insulin products</header><text>The coverage is provided in accordance with subsection (b)(9).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="HA9AA02EDA91042B98E8A9FE5C41A3631" commented="no"><enum>(b)</enum><header>Conforming amendments to cost-sharing for low-income individuals</header><text>Section 1860D–14(a) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-114">42 U.S.C. 1395w–114(a)</external-xref>), as amended by sections 11201, 11401, and 11404, is amended—</text><paragraph id="H1126C1D2B6884CFF9DA74E50F94B8312" commented="no"><enum>(1)</enum><text>in paragraph (1)—</text><subparagraph id="H31BE6F4ECED74F0EA4F581ACDF72B3B2" commented="no"><enum>(A)</enum><text>in subparagraph (D)(iii), by adding at the end the following new sentence: <quote>For plan year 2023 and subsequent plan years, the copayment amount applicable under the preceding sentence to a month’s supply of a covered insulin product (as defined in section 1860D–2(b)(9)(C)) dispensed to the individual may not exceed the applicable copayment amount for the product under the prescription drug plan or MA–PD plan in which the individual is enrolled.</quote>; and</text></subparagraph><subparagraph id="HCE5CDD63A0864E34BF4CDE949220E9F6" commented="no"><enum>(B)</enum><text>in subparagraph (E), by inserting the following before the period at the end: <quote>or under section 1860D–2(b)(9) in the case of a covered insulin product (as defined in subparagraph (C) of such section)</quote>; and</text></subparagraph></paragraph><paragraph id="HF59BD460C3844EB9A57132CDCEABEF4F" commented="no"><enum>(2)</enum><text>in paragraph (2)—</text><subparagraph commented="no" id="id483D7FF7DC294CE5A870022DC63628D9"><enum>(A)</enum><text>in subparagraph (B), by striking <quote>section 1860D–2(b)(8)</quote> and inserting <quote>paragraphs (8) and (9) of section 1860D–2(b)</quote>;</text></subparagraph><subparagraph id="H994A6632A275477881BF4BD535DBFEBC" commented="no"><enum>(B)</enum><text>in subparagraph (D), by adding at the end the following new sentence: <quote>For plan year 2023, the amount of the coinsurance applicable under the preceding sentence to a month’s supply of a covered insulin product (as defined in section 1860D–2(b)(9)(C)) dispensed to the individual may not exceed the applicable copayment amount for the product under the prescription drug plan or MA–PD plan in which the individual is enrolled.</quote>; and</text></subparagraph><subparagraph id="HBBC215E60C324F15A30817CACB3D6D27" commented="no"><enum>(C)</enum><text>in subparagraph (E), by adding at the end the following new sentence: <quote>For plan year 2023, the amount of the copayment or coinsurance applicable under the preceding sentence to a month’s supply of a covered insulin product (as defined in section 1860D–2(b)(9)(C)) dispensed to the individual may not exceed the applicable copayment amount for the product under the prescription drug plan or MA–PD plan in which the individual is enrolled.</quote>.</text></subparagraph></paragraph></subsection><subsection id="id81CB3910F29D445392FBC8841079C907"><enum>(c)</enum><header>Temporary retrospective subsidy</header><text>Section 1860D–15(h) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-115">42 U.S.C. 1395w–115(h)</external-xref>), as added by <external-xref legal-doc="usc" parsable-cite="usc/26/11401">section 11401(c),</external-xref> is amended—</text><paragraph id="id727ECC2F4667405199B7A23D1C33A95C"><enum>(1)</enum><text>in the subsection heading, by inserting <quote><header-in-text style="OLC" level="subsection">and insulin</header-in-text></quote> after <quote><header-in-text style="OLC" level="subsection">practices</header-in-text></quote>; and</text></paragraph><paragraph id="id1987DB04B717447FA68D6B827D0D2082"><enum>(2)</enum><text>in paragraph (1), by striking <quote>section 1860D–2(b)(8)</quote> and inserting <quote>paragraph (8) or (9) of section 1860D–2(b)</quote>.</text></paragraph></subsection><subsection id="id237B4842214D4541B78FDDE1DB8D39DF"><enum>(d)</enum><header>Implementation for 2023 through 2025</header><text>The Secretary shall implement this section for plan years 2023, 2024, and 2025 by program instruction or other forms of program guidance.</text></subsection><subsection commented="no" id="idB9B9D220F2734B1C9C24E4B067B69641"><enum>(e)</enum><header>Funding</header><text>In addition to amounts otherwise available, there is appropriated to the Centers for Medicare & Medicaid Services, out of any money in the Treasury not otherwise appropriated, $1,500,000 for fiscal year 2022, to remain available until expended, to carry out the provisions of, including the amendments made by, this section. </text></subsection></section><section id="id4b83c735133e489493390f397f56f35a"><enum>11407.</enum><header>Limitation on monthly coinsurance and adjustments to supplier payment under Medicare Part B for insulin furnished through durable medical equipment</header><subsection id="id358a913e6043450294db28c6e3d659e8"><enum>(a)</enum><header>Waiver of deductible</header><text>The first sentence of section 1833(b) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395l">42 U.S.C. 1395l(b)</external-xref>) is amended—</text><paragraph id="idd16922114a2e4f36ac362037d85a6dc7"><enum>(1)</enum><text>by striking <quote>and (12)</quote> and inserting <quote>(12)</quote>; and</text></paragraph><paragraph id="id2b94279b2bf54d8a85ad95aa689115bd"><enum>(2)</enum><text>by inserting before the period the following: <quote>, and (13) such deductible shall not apply with respect to insulin furnished on or after July 1, 2023, through an item of durable medical equipment covered under section 1861(n).</quote>.</text></paragraph></subsection><subsection id="ida55fd9dff8bc4f89a7916a8e26a6490b"><enum>(b)</enum><header>Coinsurance</header><paragraph id="id8d3c6b55ef5b4478849a8bf955a3a343"><enum>(1)</enum><header>In general</header><text>Section 1833(a)(1)(S) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395l">42 U.S.C. 1395l(a)(1)(S)</external-xref>) is amended—</text><subparagraph id="id6766386ab38143e9b3dbb798455c1776"><enum>(A)</enum><text>by inserting <quote>(i) except as provided in clause (ii),</quote> after <quote>(S)</quote>; and</text></subparagraph><subparagraph id="idd11a2f49fd0144daa74e95de9ad2b4fa"><enum>(B)</enum><text>by inserting after <quote>or 1847B),</quote> the following: <quote>and (ii) with respect to insulin furnished on or after July 1, 2023, through an item of durable medical equipment covered under section 1861(n), the amounts paid shall be, subject to the fourth sentence of this subsection, 80 percent of the payment amount established under section 1847A (or section 1847B, if applicable) for such insulin,</quote>.</text></subparagraph></paragraph><paragraph id="id07eecf2868554090a7a422d226ee8e23"><enum>(2)</enum><header>Adjustment to supplier payments; limitation on monthly coinsurance</header><text>Section 1833(a) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395l">42 U.S.C. 1395l(a)</external-xref>) is amended, in the flush matter at the end, by adding at the end the following new sentence: <quote>The Secretary shall make such adjustments as may be necessary to the amounts paid as specified under paragraph (1)(S)(ii) for insulin furnished on or after July 1, 2023, through an item of durable medical equipment covered under section 1861(n), such that the amount of coinsurance payable by an individual enrolled under this part for a month’s supply of such insulin does not exceed $35.</quote>.</text></paragraph></subsection><subsection id="id5c19f97e1eaf46afaaa567090f58a51c"><enum>(c)</enum><header>Implementation</header><text>The Secretary of Health and Human Services shall implement this section for 2023 by program instruction or other forms of program guidance. </text></subsection></section><section id="id4DEEE19451B94A16B7EE9A39E0A5C3C3"><enum>11408.</enum><header>Safe harbor for absence of deductible for insulin</header><subsection id="id2743DBF219514B29B4F39E0FD0C6F6D0"><enum>(a)</enum><header>In general</header><text>Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/223">section 223(c)</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id97546A85609B4E2C9A64DCD92C2687CA" changed="added" reported-display-style="italic"><subparagraph id="id8ba34f34e5f3452aa0acb78c78449fce" commented="no" display-inline="no-display-inline"><enum>(G)</enum><header display-inline="yes-display-inline">Safe harbor for absence of deductible for certain insulin products</header><clause commented="no" display-inline="no-display-inline" id="idC6655B1471174261AE47AEDFA38F20D4"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">A plan shall not fail to be treated as a high deductible health plan by reason of failing to have a deductible for selected insulin products.</text></clause><clause id="id8CF890E837B74000B47AD710FBBCB350"><enum>(ii)</enum><header>Selected insulin products</header><text>For purposes of this subparagraph—</text><subclause id="id73F82B7094E24437BCF6BDEB491F892C"><enum>(I)</enum><header>In general</header><text>The term <term>selected insulin products</term> means any dosage form (such as vial, pump, or inhaler dosage forms) of any different type (such as rapid-acting, short-acting, intermediate-acting, long-acting, ultra long-acting, and premixed) of insulin.</text></subclause><subclause id="idAB7B58E9F7FE4F909B9874C47A6E1D81"><enum>(II)</enum><header>Insulin</header><text>The term <term>insulin</term> means insulin that is licensed under subsection (a) or (k) of section 351 of the Public Health Service Act (<external-xref legal-doc="usc" parsable-cite="usc/42/262">42 U.S.C. 262</external-xref>) and continues to be marketed under such section, including any insulin product that has been deemed to be licensed under section 351(a) of such Act pursuant to section 7002(e)(4) of the Biologics Price Competition and Innovation Act of 2009 (<external-xref legal-doc="public-law" parsable-cite="pl/111/148">Public Law 111–148</external-xref>) and continues to be marketed pursuant to such licensure. </text></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id0B2DA5CE069C40C08DCFBAF7981E0726"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to plan years beginning after December 31, 2022. </text></subsection></section></part></subtitle><subtitle id="idF5E02095B77C49BA93CEE15B0C7693F8" style="OLC"><enum>C</enum><header>Affordable Care Act Subsidies</header><section id="H56D26C1F712343E0A5823716CCE5DD98"><enum>12001.</enum><header>Improve affordability and reduce premium costs of health insurance for consumers</header><subsection id="H736A6060A18E4E1F81CA22692C35820A" display-inline="no-display-inline"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Clause (iii) of <external-xref legal-doc="usc" parsable-cite="usc/26/36B">section 36B(b)(3)(A)</external-xref> of the Internal Revenue Code of 1986 is amended—</text><paragraph display-inline="no-display-inline" id="idBDCAFA95DF4F4EDF8E05B8CC5D66D96B"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>in 2021 or 2022</quote> and inserting <quote>after December 31, 2020, and before January 1, 2026</quote>, and</text></paragraph><paragraph display-inline="no-display-inline" id="idF70BAF6AC80340CC98A496CE1A8C1E3A"><enum>(2)</enum><text>by striking <quote><header-in-text style="OLC" level="clause">2021 and 2022</header-in-text></quote> in the heading and inserting <quote><header-in-text style="OLC" level="clause">2021 through 2025</header-in-text></quote>.</text></paragraph></subsection><subsection id="HDEDBEF4FFC0E4DFC8335A558A47965FD"><enum>(b)</enum><header>Extension through 2025 of rule to allow credit to taxpayers whose household income exceeds 400 percent of the poverty line</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/36B">Section 36B(c)(1)(E)</external-xref> of the Internal Revenue Code of 1986 is amended—</text><paragraph id="H60303D4CE1274551B0110F10B2D59233" display-inline="no-display-inline"><enum>(1)</enum><text>by striking <quote>in 2021 or 2022</quote> and inserting <quote>after December 31, 2020, and before January 1, 2026</quote>, and</text></paragraph><paragraph id="H9BA3192E187443C795881C470C79EFFF"><enum>(2)</enum><text>by striking <quote><header-in-text level="subparagraph" style="OLC">2021 and 2022</header-in-text></quote> in the heading and inserting <quote><header-in-text level="subparagraph" style="OLC">2021 through 2025</header-in-text></quote>.</text></paragraph></subsection><subsection id="HE6ED1DD6F77E451783C565918C52590C"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2022.</text></subsection></section></subtitle><subtitle id="HD08A9A034C5E4DD9B3F967D65DE60DA9"><enum>D</enum><header>Energy Security</header><section id="HC5965FBD5256493599B649EC7BDD4526" display-inline="no-display-inline"><enum>13001.</enum><header>Amendment of 1986 Code</header><text display-inline="no-display-inline">Except as otherwise expressly provided, whenever in this subtitle an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. </text></section><part id="H86942D8DEE714F228FC5DAF06C6D19F3"><enum>1<?LEXA-Enum 1?></enum><header>Clean Electricity and Reducing Carbon Emissions</header><section id="H181953C321DC4410B47E9744D3CE5300"><enum>13101.</enum><header>Extension and modification of credit for electricity produced from certain renewable resources</header><subsection id="HCCBBEB8C537345FE8ED8F4D63C8F75AD"><enum>(a)</enum><header>In general</header><text>The following provisions of section 45(d) are each amended by striking <quote>January 1, 2022</quote> each place it appears and inserting <quote>January 1, 2025</quote>:</text><paragraph id="H5CCDF0FD488B43699FF8477D78364A8B"><enum>(1)</enum><text>Paragraph (2)(A).</text></paragraph><paragraph id="HC08E7DB6D35A4C8A84C1AB1FF19D71BB"><enum>(2)</enum><text>Paragraph (3)(A).</text></paragraph><paragraph id="H0273D6D791AC4135BD4FF2DDBCF3A59B"><enum>(3)</enum><text>Paragraph (6).</text></paragraph><paragraph id="H895B16CB712E4107A5086977820E4D6D"><enum>(4)</enum><text>Paragraph (7).</text></paragraph><paragraph id="HCA5927C14C724163A4F3B19F9840A2F3"><enum>(5)</enum><text>Paragraph (9).</text></paragraph><paragraph id="H5D1705923EA54F798DCFF6E8812FACA3"><enum>(6)</enum><text>Paragraph (11)(B).</text></paragraph></subsection><subsection id="HFAB485E86A4542CAA0869741B0AE3878"><enum>(b)</enum><header>Base credit amount</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/45">Section 45</external-xref> is amended—</text><paragraph id="idF9F3DD9643084E8EA171273FD6345136"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a)(1), by striking <quote>1.5 cents</quote> and inserting <quote>0.3 cents</quote>, and</text></paragraph><paragraph id="id4AD78BF0138A4322989068C7833EC5AC"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (b)(2), by striking <quote>1.5 cent</quote> and inserting <quote>0.3 cent</quote>.</text></paragraph></subsection><subsection id="H5951D94F9F2246C2A304CD9C104B5B76"><enum>(c)</enum><header>Application of extension to geothermal and solar</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/45">Section 45(d)(4)</external-xref> is amended by striking <quote>and which</quote> and all that follows through <quote>January 1, 2022</quote> and inserting <quote>and the construction of which begins before January 1, 2025</quote>. </text></subsection><subsection id="H2558F0F15ED34074ACDF57D52C624EE8"><enum>(d)</enum><header>Extension of election to treat qualified facilities as energy property</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(5)(C)(ii)</external-xref> is amended by striking <quote>January 1, 2022</quote> and inserting <quote>January 1, 2025</quote>.</text></subsection><subsection id="HA0E585006BB9495EA3B4AAFA4B14E650" commented="no"><enum>(e)</enum><header>Application of extension to wind facilities</header><paragraph id="H8C410A44E5C24E9B86A4881638885206" commented="no"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45">Section 45(d)(1)</external-xref> is amended by striking <quote>January 1, 2022</quote> and inserting <quote>January 1, 2025</quote>.</text></paragraph><paragraph id="H189A3F4A2E6E4504BC524AB075D452E0" commented="no"><enum>(2)</enum><header>Application of phaseout percentage</header><subparagraph id="H8474EB645BDB4D008FFB73F5EDC81ED2"><enum>(A)</enum><header>Renewable electricity production credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45">Section 45(b)(5)</external-xref> is amended by inserting <quote>which is placed in service before January 1, 2022</quote> after <quote>using wind to produce electricity</quote>.</text></subparagraph><subparagraph id="HA068ABCD876643BF8A682E173FBB5AC3"><enum>(B)</enum><header>Energy credit</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(5)(E)</external-xref> is amended by inserting <quote>placed in service before January 1, 2022, and</quote> before <quote>treated as energy property</quote>.</text></subparagraph></paragraph><paragraph id="HF3C4234818134BA7ADA82A0AF6B7F677" commented="no"><enum>(3)</enum><header>Qualified offshore wind facilities under energy credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(5)(F)(i)</external-xref> is amended by striking <quote>offshore wind facility</quote> and all that follows and inserting the following: <quote>offshore wind facility, subparagraph (E) shall not apply.</quote>.</text></paragraph></subsection><subsection id="H4786F12B94FB495EA403664FCE92E0AE" commented="no"><enum>(f)</enum><header>Wage and apprenticeship requirements</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45">Section 45(b)</external-xref> is amended by adding at the end the following new paragraphs: </text><quoted-block style="OLC" id="HFEFE32BB4D9F4357BC5B5943897CD663" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="H2059661707F148B4B4274DE646EC1103" commented="no"><enum>(6)</enum><header>Increased credit amount for qualified facilities</header><subparagraph id="HBE96D4419760455A9A823E267D8B683C" commented="no"><enum>(A)</enum><header>In general</header><text>In the case of any qualified facility which satisfies the requirements of subparagraph (B), the amount of the credit determined under subsection (a) (determined after the application of paragraphs (1) through (5) and without regard to this paragraph) shall be equal to such amount multiplied by 5.</text></subparagraph><subparagraph id="H2255780628DE49B3B80FF70F6F656432" commented="no"><enum>(B)</enum><header>Qualified facility requirements</header><text display-inline="yes-display-inline">A qualified facility meets the requirements of this subparagraph if it is one of the following: </text><clause id="H00648092F21145E58E6B7AB1D850883B" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">A facility with a maximum net output of less than 1 megawatt (as measured in alternating current).</text></clause><clause id="HF522469C66024892871E08160B2A59C8" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">A facility the construction of which begins prior to the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (7)(A) and (8).</text></clause><clause id="H59D03D32841C4CC08B5928FC53EB2E32" commented="no"><enum>(iii)</enum><text>A facility which satisfies the requirements of paragraphs (7)(A) and (8).</text></clause></subparagraph></paragraph><paragraph id="H5CA8CAA858544376842A00BDF036605D" commented="no"><enum>(7)</enum><header>Prevailing wage requirements</header><subparagraph id="H5CA4B174AC944156A3189128E839E460" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The requirements described in this subparagraph with respect to any qualified facility are that the taxpayer shall ensure that any laborers and mechanics employed by the taxpayer or any contractor or subcontractor in—</text><clause id="H4BE67702A8E849AFA1C1737507315780" commented="no"><enum>(i)</enum><text>the construction of such facility, and</text></clause><clause id="H46F3D6D6CB9849C2B60F7FF0C9AFAD85" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">with respect to any taxable year, for any portion of such taxable year which is within the period described in subsection (a)(2)(A)(ii), the alteration or repair of such facility, </text></clause><continuation-text continuation-text-level="subparagraph" commented="no">shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality in which such facility is located as most recently determined by the Secretary of Labor, in accordance with subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code. For purposes of determining an increased credit amount under paragraph (6)(A) for a taxable year, the requirement under clause (ii) is applied to such taxable year in which the alteration or repair of the qualified facility occurs.”</continuation-text></subparagraph><subparagraph id="H5B0D23ED7B804C98ADFC288153131B1E" commented="no"><enum>(B)</enum><header>Correction and penalty related to failure to satisfy wage requirements</header><clause id="H81360C1040674209B181E1B185287FC6" commented="no"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any taxpayer which fails to satisfy the requirement under subparagraph (A) with respect to the construction of any qualified facility or with respect to the alteration or repair of a facility in any year during the period described in subparagraph (A)(ii), such taxpayer shall be deemed to have satisfied such requirement under such subparagraph with respect to such facility for any year if, with respect to any laborer or mechanic who was paid wages at a rate below the rate described in such subparagraph for any period during such year, such taxpayer—</text><subclause id="H6AB17B1C3836412680AF3B4690716F1B" commented="no"><enum>(I)</enum><text>makes payment to such laborer or mechanic in an amount equal to the sum of—</text><item id="H9B193C830DAC4C18A09221AF7E4EC2F2" commented="no"><enum>(aa)</enum><text>an amount equal to the difference between—</text><subitem id="H4F014559637F4D1A9B1EFDEE9ACA13A5"><enum>(AA)</enum><text>the amount of wages paid to such laborer or mechanic during such period, and</text></subitem><subitem id="HD5D090899D4142628A6B4328475B4492" commented="no"><enum>(BB)</enum><text>the amount of wages required to be paid to such laborer or mechanic pursuant to such subparagraph during such period, plus</text></subitem></item><item id="H0E5FBD9537984A52BE11AC3776C04386" commented="no"><enum>(bb)</enum><text>interest on the amount determined under item (aa) at the underpayment rate established under section 6621 (determined by substituting <quote>6 percentage points</quote> for <quote>3 percentage points</quote> in subsection (a)(2) of such section) for the period described in such item, and</text></item></subclause><subclause id="H450A4C202EF64E5FB8ABBD02D9A943D1" commented="no"><enum>(II)</enum><text>makes payment to the Secretary of a penalty in an amount equal to the product of—</text><item id="HDFBC1705BFB44CBBAE855BB3E0C6C081" commented="no"><enum>(aa)</enum><text>$5,000, multiplied by</text></item><item id="H99FC5E2324624018B30FE8098C0A3837" commented="no"><enum>(bb)</enum><text>the total number of laborers and mechanics who were paid wages at a rate below the rate described in subparagraph (A) for any period during such year.</text></item></subclause></clause><clause id="H3CF343A7F63749F7875CE2FBBF56AACC" commented="no"><enum>(ii)</enum><header>Deficiency procedures not to apply</header><text display-inline="yes-display-inline">Subchapter B of chapter 63 (relating to deficiency procedures for income, estate, gift, and certain excise taxes) shall not apply with respect to the assessment or collection of any penalty imposed by this paragraph.</text></clause><clause id="H0D29CC4E98CF4EF7ADE34D12926B8ED1"><enum>(iii)</enum><header>Intentional disregard</header><text display-inline="yes-display-inline">If the Secretary determines that any failure described in clause (i) is due to intentional disregard of the requirements under subparagraph (A), such clause shall be applied— </text><subclause id="id0EFBB47EB57D4E3CB075F98DEDBBC807"><enum>(I)</enum><text display-inline="yes-display-inline">in subclause (I), by substituting <quote>three times the sum</quote> for <quote>the sum</quote>, and </text></subclause><subclause id="idB7A5DC78C5844A26AAD7B58EB9F8010F"><enum>(II)</enum><text display-inline="yes-display-inline">in subclause (II), by substituting <quote>$10,000</quote> for <quote>5,000</quote> in item (aa) thereof.</text></subclause></clause><clause id="H87E62AF56D9D497EA28C6F8DE531E2CC"><enum>(iv)</enum><header>Limitation on period for payment</header><text display-inline="yes-display-inline">Pursuant to rules issued by the Secretary, in the case of a final determination by the Secretary with respect to any failure by the taxpayer to satisfy the requirement under subparagraph (A), subparagraph (B)(i) shall not apply unless the payments described in subclauses (I) and (II) of such subparagraph are made by the taxpayer on or before the date which is 180 days after the date of such determination.</text></clause></subparagraph></paragraph><paragraph id="H7B17755948BE4A82B307045C763B43DB" commented="no"><enum>(8)</enum><header>Apprenticeship requirements</header><text display-inline="yes-display-inline">The requirements described in this paragraph with respect to the construction of any qualified facility are as follows:</text><subparagraph id="HEF1FA8ADF92D49CE8F353E08163848EA" commented="no"><enum>(A)</enum><header>Labor hours</header><clause id="H33918D6629324BA0B2284DAE877F88F7" commented="no"><enum>(i)</enum><header>Percentage of total labor hours</header><text display-inline="yes-display-inline">Taxpayers shall ensure that, with respect to the construction of any qualified facility, not less than the applicable percentage of the total labor hours of the construction, alteration, or repair work (including such work performed by any contractor or subcontractor) with respect to such facility shall, subject to subparagraph (B), be performed by qualified apprentices.</text></clause><clause id="HC7A503759C0940F3950F9CB4B1EB170A" commented="no"><enum>(ii)</enum><header>Applicable percentage</header><text display-inline="yes-display-inline">For purposes of clause (i), the applicable percentage shall be—</text><subclause id="HB8DF56F6E4884752B82120854AC21FEB" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">in the case of a qualified facility the construction of which begins before January 1, 2023, 10 percent,</text></subclause><subclause id="HA43BBAB6583740EB8D7DC84BE35FCC17" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">in the case of a qualified facility the construction of which begins after December 31, 2022, and before January 1, 2024, 12.5 percent, and</text></subclause><subclause id="HFECAE47C1B0949288998AD3F8F3D9D1C" commented="no"><enum>(III)</enum><text display-inline="yes-display-inline">in the case of a qualified facility the construction of which begins after December 31, 2023, 15 percent.</text></subclause></clause></subparagraph><subparagraph id="HBA9DF47DAB2E4B3A92693471FD10EDCF" commented="no"><enum>(B)</enum><header>Apprentice to journeyworker ratio</header><text display-inline="yes-display-inline">The requirement under subparagraph (A)(i) shall be subject to any applicable requirements for apprentice-to-journeyworker ratios of the Department of Labor or the applicable State apprenticeship agency.</text></subparagraph><subparagraph id="H917DC9E97F8B40E1A018AF8634DAEFAC" commented="no"><enum>(C)</enum><header>Participation</header><text display-inline="yes-display-inline">Each taxpayer, contractor, or subcontractor who employs 4 or more individuals to perform construction, alteration, or repair work with respect to the construction of a qualified facility shall employ 1 or more qualified apprentices to perform such work.</text></subparagraph><subparagraph id="H7A3F875B821C4B25B1D169F9C80AEC89" commented="no"><enum>(D)</enum><header>Exception</header><clause id="H7711AEE24C0F4D1BB1D4CFF0A37C59A0" commented="no"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">A taxpayer shall not be treated as failing to satisfy the requirements of this paragraph if such taxpayer—</text><subclause id="HAEE33ABC388043AFB190C24056313FD6" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">satisfies the requirements described in clause (ii), or</text></subclause><subclause id="HF0497D3CF9074444AED5BA142165D081"><enum>(II)</enum><text display-inline="yes-display-inline">subject to clause (iii), in the case of any failure by the taxpayer to satisfy the requirement under subparagraphs (A) and (C) with respect to the construction, alteration, or repair work on any qualified facility to which subclause (I) does not apply, makes payment to the Secretary of a penalty in an amount equal to the product of—</text><item id="HCF2BF01AABF1459A87E7E98F33DDFA61"><enum>(aa)</enum><text display-inline="yes-display-inline">$50, multiplied by</text></item><item id="HE9ACDEF906B841478B6815D107D15CB6"><enum>(bb)</enum><text display-inline="yes-display-inline">the total labor hours for which the requirement described in such subparagraph was not satisfied with respect to the construction, alteration, or repair work on such qualified facility.</text></item></subclause></clause><clause id="H94683E0881C44F58B07D60A4371CF72D" commented="no"><enum>(ii)</enum><header>Good faith effort</header><text display-inline="yes-display-inline">For purposes of clause (i), a taxpayer shall be deemed to have satisfied the requirements under this paragraph with respect to a qualified facility if such taxpayer has requested qualified apprentices from a registered apprenticeship program, as defined in section 3131(e)(3)(B), and—</text><subclause id="H5C52D61015674CCA8CF54DE9D1A056D9"><enum>(I)</enum><text display-inline="yes-display-inline">such request has been denied, provided that such denial is not the result of a refusal by the taxpayer or any contractors or subcontractors engaged in the performance of construction, alteration, or repair work with respect to such qualified facility to comply with the established standards and requirements of the registered apprenticeship program, or</text></subclause><subclause id="H48BB0D9D22784DCA867D71A4FDDAE75D"><enum>(II)</enum><text display-inline="yes-display-inline">the registered apprenticeship program fails to respond to such request within 5 business days after the date on which such registered apprenticeship program received such request.</text></subclause></clause><clause id="HFAB06BFD0B0643BAB9B902D451BA1E4F"><enum>(iii)</enum><header>Intentional disregard</header><text display-inline="yes-display-inline">If the Secretary determines that any failure described in subclause (i)(II) is due to intentional disregard of the requirements under subparagraphs (A) and (C), subclause (i)(II) shall be applied by substituting <quote>$500</quote> for <quote>$50</quote> in item (aa) thereof.</text></clause></subparagraph><subparagraph id="H6A7BD59E15D64063948A37FD7A6B8094" commented="no"><enum>(E)</enum><header>Definitions</header><text>For purposes of this paragraph—</text><clause id="HB9BFF3EE688F4096B3F0EC4CBCA2FF3B" commented="no"><enum>(i)</enum><header>Labor hours</header><text display-inline="yes-display-inline">The term <quote>labor hours</quote>—</text><subclause id="H017A04C9624D46CFA974268077114F25" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">means the total number of hours devoted to the performance of construction, alteration, or repair work by any individual employed by the taxpayer or by any contractor or subcontractor, and</text></subclause><subclause id="H09892726B9E74EEABD6F6992C1A45C65" commented="no"><enum>(II)</enum><text>excludes any hours worked by—</text><item id="HC13ABB8A022B4BD7B984502830B3F9B1" commented="no"><enum>(aa)</enum><text>foremen,</text></item><item id="H8F496E11568C4BA49B6C57505BA952A9" commented="no"><enum>(bb)</enum><text>superintendents,</text></item><item id="HE115B7DF5F42483DB83EAC0C8C616421" commented="no"><enum>(cc)</enum><text>owners, or</text></item><item id="H40F6DE2781A34631846EC6705E2C372C" commented="no"><enum>(dd)</enum><text display-inline="yes-display-inline">persons employed in a bona fide executive, administrative, or professional capacity (within the meaning of those terms in part 541 of title 29, Code of Federal Regulations).</text></item></subclause></clause><clause id="HD1BD1C7874F6447E8B487E629E63BF97" commented="no"><enum>(ii)</enum><header>Qualified apprentice</header><text display-inline="yes-display-inline">The term <quote>qualified apprentice</quote> means an individual who is employed by the taxpayer or by any contractor or subcontractor and who is participating in a registered apprenticeship program, as defined in section 3131(e)(3)(B).</text></clause></subparagraph></paragraph><paragraph id="H999CC937736D40CD9134F14394922761" commented="no"><enum>(9)</enum><header>Regulations and guidance</header><text display-inline="yes-display-inline">The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of administering the requirements of this subsection.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HE1F0246E257C4EC2B41E6F2186A68DD2"><enum>(g)</enum><header>Domestic content, phaseout, and energy communities</header><text>Section 45(b), as amended by subsection (f), is amended—</text><paragraph id="id00D37D8C39124DC8812C5473DE434C52"><enum>(1)</enum><text>by redesignating paragraph (9) as paragraph (12), and</text></paragraph><paragraph id="id2FD7E238045D4029886B97DF4255231D"><enum>(2)</enum><text>by inserting after paragraph (8) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idC37B894F3E2543E38ECF7CE7B2736B32" changed="added" reported-display-style="italic"><paragraph id="H2B9175CBC4784603B40BDBC0820AAF5D" commented="no"><enum>(9)</enum><header>Domestic content bonus credit amount</header><subparagraph id="HA224A216630A4E8884EE8122296385E0" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any qualified facility which satisfies the requirement under subparagraph (B)(i), the amount of the credit determined under subsection (a) (determined after the application of paragraphs (1) through (8)) shall be increased by an amount equal to 10 percent of the amount so determined.</text></subparagraph><subparagraph id="H473A98CED8E749B9947F29B27AA29BFB" commented="no"><enum>(B)</enum><header>Requirement</header><clause id="H7C3C13AD200A44A39EF1A5F9216131B3" commented="no"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">The requirement described in this clause is satisfied with respect to any qualified facility if the taxpayer certifies to the Secretary (at such time, and in such form and manner, as the Secretary may prescribe) that any steel, iron, or manufactured product which is a component of such facility (upon completion of construction) was produced in the United States (as determined under section 661 of title 49, Code of Federal Regulations).</text></clause><clause id="H86AE2BF20B904518B2A4B68DFE8DBC27" commented="no"><enum>(ii)</enum><header>Steel and iron</header><text>In the case of steel or iron, clause (i) shall be applied in a manner consistent with section 661.5 of title 49, Code of Federal Regulations.</text></clause><clause id="H4496B779FD584897846EF81CBC54B6B5" commented="no"><enum>(iii)</enum><header>Manufactured product</header><text display-inline="yes-display-inline">For purposes of clause (i), the manufactured products which are components of a qualified facility upon completion of construction shall be deemed to have been produced in the United States if not less than the adjusted percentage (as determined under subparagraph (C)) of the total costs of all such manufactured products of such facility are attributable to manufactured products (including components) which are mined, produced, or manufactured in the United States.</text></clause></subparagraph><subparagraph id="H3F6C513806754A1AB0E1F0964951174D"><enum>(C)</enum><header>Adjusted percentage</header><clause id="HBC9C37EEE9114ACFBF2D69D5F9680049"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">Subject to subclause (ii), for purposes of subparagraph (B)(iii), the adjusted percentage shall be 40 percent.</text></clause><clause id="H1F632F9157FE4BDAB8D8761359CA8129" commented="no"><enum>(ii)</enum><header>Offshore wind facility</header><text display-inline="yes-display-inline">For purposes of subparagraph (B)(iii), in the case of a qualified facility which is an offshore wind facility, the adjusted percentage shall be 20 percent.</text></clause></subparagraph></paragraph><paragraph id="H6665338BDA9E42429EED439964C2AA0D" commented="no"><enum>(10)</enum><header>Phaseout for elective payment</header><subparagraph id="H36D75CBAE3A3404B94AAC04E51E05894" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of a taxpayer making an election under section 6417 with respect to a credit under this section, the amount of such credit shall be replaced with—</text><clause id="HA423F5088F1F497CBA1614BC6F475A1A" commented="no"><enum>(i)</enum><text>the value of such credit (determined without regard to this paragraph), multiplied by</text></clause><clause id="HB59D644657424704B3B99CCA7EDB9643" commented="no"><enum>(ii)</enum><text>the applicable percentage. </text></clause></subparagraph><subparagraph id="H31987D61437E405CBCB612323D8D6984" commented="no"><enum>(B)</enum><header>100 percent applicable percentage for certain qualified facilities</header><text display-inline="yes-display-inline">In the case of any qualified facility—</text><clause id="H0B4D6BB424E44F01BDD2AF1C02A26D22" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">which satisfies the requirements under paragraph (9)(B), or</text></clause><clause id="HB879928A4F8E4E8D9152434CB39B29BD" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">with a maximum net output of less than 1 megawatt (as measured in alternating current),</text></clause><continuation-text continuation-text-level="subparagraph" commented="no">the applicable percentage shall be 100 percent. </continuation-text></subparagraph><subparagraph id="H34FA42434A3D42CBA9734ABAD11D7198" commented="no"><enum>(C)</enum><header>Phased domestic content requirement</header><text display-inline="yes-display-inline">Subject to subparagraph (D), in the case of any qualified facility which is not described in subparagraph (B), the applicable percentage shall be—</text><clause id="H8A30C79F414E4569B2B47E27D9476DD1" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">if construction of such facility began before January 1, 2024, 100 percent, and</text></clause><clause id="H267C1D18C1EE4ABA91262CDD49BFC849" commented="no"><enum>(ii)</enum><text>if construction of such facility began in calendar year 2024, 90 percent.</text></clause></subparagraph><subparagraph id="HC59871FADAB5402793FF3FF39BE09C20" commented="no"><enum>(D)</enum><header>Exception</header><clause id="H5191ABBC39AD4226A506D814F4DDBD5D"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this paragraph, the Secretary shall provide exceptions to the requirements under this paragraph if—</text><subclause id="HC2F8AF71014B4320BD0514B1A73B76E2"><enum>(I)</enum><text>the inclusion of steel, iron, or manufactured products which are produced in the United States increases the overall costs of construction of qualified facilities by more than 25 percent, or</text></subclause><subclause id="HE948CD9236704500A6884773911E2E5A"><enum>(II)</enum><text display-inline="yes-display-inline">relevant steel, iron, or manufactured products are not produced in the United States in sufficient and reasonably available quantities or of a satisfactory quality.</text></subclause></clause><clause id="HCC81C66B147D46A286A2C9FA44FEB6BC"><enum>(ii)</enum><header>Applicable percentage</header><text display-inline="yes-display-inline">In any case in which the Secretary provides an exception pursuant to clause (i), the applicable percentage shall be 100 percent.</text></clause></subparagraph></paragraph><paragraph id="H2678B72EAE4D41588EF21193329EC7C6"><enum>(11)</enum><header>Special rule for qualified facility located in energy community</header><subparagraph id="H15BB79F4B6B34CD9A561078DF8C4A7D9"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of a qualified facility which is located in an energy community, the credit determined under subsection (a) (determined after the application of paragraphs (1) through (10), without the application of paragraph (9)) shall be increased by an amount equal to 10 percent of the amount so determined.</text></subparagraph><subparagraph id="id38F07DC83291427D8A1AD48FFE6FBB66"><enum>(B)</enum><header>Energy community</header><text>For purposes of this paragraph, the term <term>energy community</term> means—</text><clause id="idF77A98B972774A2DB7F6A2CB4E8E39D0"><enum>(i)</enum><text>a brownfield site (as defined in subparagraphs (A), (B), and (D)(ii)(III) of section 101(39) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (<external-xref legal-doc="usc" parsable-cite="usc/42/9601">42 U.S.C. 9601(39)</external-xref>)), </text></clause><clause id="id93651354D45F456BA9DFA91A1A0F8631"><enum>(ii)</enum><text>a metropolitan statistical area or non-metropolitan statistical area which—</text><subclause id="id6D3F2C93970C486F92314123B85FD6AE"><enum>(I)</enum><text>has (or, at any time during the period beginning after December 31, 2009, had) 0.17 percent or greater direct employment or 25 percent or greater local tax revenues related to the extraction, processing, transport, or storage of coal, oil, or natural gas (as determined by the Secretary), and</text></subclause><subclause id="id24FE87866B3A4D338193AE08B15CD1CE"><enum>(II)</enum><text>has an unemployment rate at or above the national average unemployment rate for the previous year (as determined by the Secretary), or</text></subclause></clause><clause id="idDEA530A437B54AF79109402AD2BD1CDD"><enum>(iii)</enum><text>a census tract—</text><subclause id="id7EB5413608AD41818982DC0BBE9B4B9D"><enum>(I)</enum><text>in which—</text><item id="idAF56849CDA094EA39F2DCBA8D2794222"><enum>(aa)</enum><text>after December 31, 1999, a coal mine has closed, or</text></item><item id="idE5CC7EA2C6844AC981A77A7B35593F42"><enum>(bb)</enum><text>after December 31, 2009, a coal-fired electric generating unit has been retired, or</text></item></subclause><subclause id="idD840BD1C14D34491AA7601714A6A8074"><enum>(II)</enum><text>which is directly adjoining to any census tract described in subclause (I).</text></subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="idB11727C95EF14DF984BE82C6383F57E7"><enum>(h)</enum><header>Credit reduced for tax-exempt bonds</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45">Section 45(b)(3)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" id="HF1C7E29465684A7898055E83F9786F59" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="H0B0E1DC809E549B5BDE5EC3D5CF28711"><enum>(3)</enum><header>Credit reduced for tax-exempt bonds</header><text display-inline="yes-display-inline">The amount of the credit determined under subsection (a) with respect to any facility for any taxable year (determined after the application of paragraphs (1) and (2)) shall be reduced by the amount which is the product of the amount so determined for such year and the lesser of 15 percent or a fraction—</text><subparagraph id="H5D76E9466B3E4F16A65AB93991DD1383"><enum>(A)</enum><text display-inline="yes-display-inline">the numerator of which is the sum, for the taxable year and all prior taxable years, of proceeds of an issue of any obligations the interest on which is exempt from tax under section 103 and which is used to provide financing for the qualified facility, and</text></subparagraph><subparagraph id="H0E8C8C1E1BF3472996641ADCD4B6798D"><enum>(B)</enum><text display-inline="yes-display-inline">the denominator of which is the aggregate amount of additions to the capital account for the qualified facility for the taxable year and all prior taxable years.</text></subparagraph><continuation-text continuation-text-level="paragraph">The amounts under the preceding sentence for any taxable year shall be determined as of the close of the taxable year.</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id2731438C037E41199F5BCE4B0ADB7863"><enum>(i)</enum><header>Rounding adjustment</header><paragraph id="id03FD057DFE7D4169B0726EEA7B294607"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45">Section 45(b)(2)</external-xref> is amended by striking the second sentence and inserting the following: <quote>If the 0.3 cent amount as increased under the preceding sentence is not a multiple of 0.05 cent, such amount shall be rounded to the nearest multiple of 0.05 cent. In any other case, if an amount as increased under this paragraph is not a multiple of 0.1 cent, such amount shall be rounded to the nearest multiple of 0.1 cent.</quote>.</text></paragraph><paragraph id="H224D63046EF34376AE06F8E408C7B345"><enum>(2)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45">Section 45(b)(4)(A)</external-xref> is amended by striking <quote>last sentence</quote> and inserting <quote>last two sentences</quote>.</text></paragraph></subsection><subsection id="id1A7D8302046D45239E3A7CDA71D8FD06"><enum>(j)</enum><header>Hydropower</header><paragraph id="id7ED0A1B1E2C543BEA5425E844437CD70"><enum>(1)</enum><header>Elimination of credit rate reduction for qualified hydroelectric production and marine and hydrokinetic renewable energy</header><text>Section 45(b)(4)(A), as amended by the preceding provisions of this section, is amended by striking <quote>(7), (9), or (11)</quote> and inserting <quote>or (7)</quote>.</text></paragraph><paragraph id="id42E065A878164B76B6845A6DC5609FBD"><enum>(2)</enum><header>Marine and hydrokinetic renewable energy</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45">Section 45</external-xref> is amended—</text><subparagraph id="id30CB2E5E99554C7284B0246BE2AA23C1"><enum>(A)</enum><text>in subsection (c)(10)(A)—</text><clause id="idD96E6BE0E0B94B1994F51E2684A976FE"><enum>(i)</enum><text>in clause (iii), by striking <quote>or</quote>,</text></clause><clause id="id488BAB74DBE74FA0B851DE8B918FB920"><enum>(ii)</enum><text>in clause (iv), by striking the period at the end and inserting <quote>, or</quote> and</text></clause><clause id="id815B0385748344EE97302B0F179DCFB6"><enum>(iii)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idB18D166615A548319D424BF8D19FBE45" changed="added" reported-display-style="italic"><clause id="id35227A87B7C44A07876474FA46CF475B"><enum>(v)</enum><text>pressurized water used in a pipeline (or similar man-made water conveyance) which is operated—</text><subclause id="id37AE106EA4044E96B6E36DC019537AB2"><enum>(I)</enum><text>for the distribution of water for agricultural, municipal, or industrial consumption, and </text></subclause><subclause id="idC598E11AF2C44C69B0E1F811938013F6"><enum>(II)</enum><text>not primarily for the generation of electricity.</text></subclause></clause><after-quoted-block>, and</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="id828C469A953B45699C5A866FF3DE0EB1" commented="no"><enum>(B)</enum><text>in subsection (d)(11)(A), by striking <quote>150</quote> and inserting <quote>25</quote>.</text></subparagraph></paragraph></subsection><subsection id="H98516075C0B442E3AACAB0DF2A3F5AB2" commented="no"><enum>(k)</enum><header>Effective dates</header><paragraph id="HCF10E9C5B70C42888BD60D1C25899155" commented="no"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraphs (2) and (3), the amendments made by this section shall apply to facilities placed in service after December 31, 2021.</text></paragraph><paragraph id="HA4B441C2CC484665894389F6C26919CE" commented="no"><enum>(2)</enum><header>Credit reduced for tax-exempt bonds</header><text>The amendment made by subsection (h) shall apply to facilities the construction of which begins after the date of enactment of this Act.</text></paragraph><paragraph commented="no" id="id67F5C1D3C0A34CBA86F9AD661BEB071C"><enum>(3)</enum><header>Domestic content, phaseout, energy communities, and hydropower</header><text>The amendments made by subsections (g) and (j) shall apply to facilities placed in service after December 31, 2022.</text></paragraph></subsection></section><section id="H6B6B4E609C904B6FA3D6D5006C1905EF" display-inline="no-display-inline" section-type="subsequent-section"><enum>13102.</enum><header>Extension and modification of energy credit</header><subsection id="H15D3BF286652493EA0C39326E3A40E51"><enum>(a)</enum><header>Extension of credit</header><text display-inline="yes-display-inline">The following provisions of section 48 are each amended by striking <quote>January 1, 2024</quote> each place it appears and inserting <quote>January 1, 2025</quote>:</text><paragraph id="H350D49568C6F41AEA4DE138E382D8EA0"><enum>(1)</enum><text>Subsection (a)(2)(A)(i)(II).</text></paragraph><paragraph id="H9C6691004953464E9D5712F27ACD93EF"><enum>(2)</enum><text>Subsection (a)(3)(A)(ii).</text></paragraph><paragraph id="HE7A95A2A34C0434DA6FCADC7C5325C39"><enum>(3)</enum><text>Subsection (c)(1)(D).</text></paragraph><paragraph id="H9EA1027274F5414D8588905CA67748B2"><enum>(4)</enum><text>Subsection (c)(2)(D).</text></paragraph><paragraph id="id108FCBBFB50F4DD4B56F1D7FEEBD247F"><enum>(5)</enum><text>Subsection (c)(3)(A)(iv).</text></paragraph><paragraph id="H9E47D6CB29244398BA4FAEBE236A1B17"><enum>(6)</enum><text>Subsection (c)(4)(C).</text></paragraph><paragraph id="id713FD6672A574C0D86D7C83901DA545E"><enum>(7)</enum><text>Subsection (c)(5)(D).</text></paragraph></subsection><subsection id="H6BE66A8B9ECE4B62A525E2DF23026AA5"><enum>(b)</enum><header>Further extension for certain energy property</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(3)(A)(vii)</external-xref> is amended by striking <quote>January 1, 2024</quote> and inserting <quote>January 1, 2035</quote>.</text></subsection><subsection id="H26693B494168474A9450C4B508EC1909" commented="no"><enum>(c)</enum><header>Phaseout of credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)</external-xref> is amended by striking paragraphs (6) and (7) and inserting the following new paragraph:</text><quoted-block style="OLC" id="H704BB7E28AC54F35853BCF75EABCB548" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="HA750CBCD646A4D2BA7F4E4D575EDDAD7"><enum>(6)</enum><header>Phaseout for certain energy property</header><text display-inline="yes-display-inline">In the case of any qualified fuel cell property, qualified small wind property, or energy property described in clause (i) or clause (ii) of paragraph (3)(A) the construction of which begins after December 31, 2019, and which is placed in service before January 1, 2022, the energy percentage determined under paragraph (2) shall be equal to 26 percent.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HABA8B99075774EE4BACE5F2BF9F6EE62"><enum>(d)</enum><header>Base energy percentage amount; phaseout of certain energy property</header><paragraph id="id65B08EA15B864EE5913B9963BD1B9EF9"><enum>(1)</enum><header>Base energy percentage amount</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)</external-xref> is amended—</text><subparagraph id="H50838F8FD6884954ADB40CB441985373"><enum>(A)</enum><text>in paragraph (2)(A)—</text><clause id="H9A408B6A154D4C7689C53EDBC3C16037"><enum>(i)</enum><text>in clause (i), by striking <quote>30 percent</quote> and inserting <quote>6 percent</quote>, and</text></clause><clause id="HA612AD7FB4F742D7BCE15F5ED50B8809"><enum>(ii)</enum><text>in clause (ii), by striking <quote>10 percent</quote> and inserting <quote>2 percent</quote>, and</text></clause></subparagraph><subparagraph id="HE557E18A6EBF4BA6ADC48000080878C0"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (5)(A)(ii), by striking <quote>30 percent</quote> and inserting <quote>6 percent</quote>. </text></subparagraph></paragraph><paragraph id="H6EF8197E02D542FDA8A6BF6AA584FBAA" commented="no" display-inline="no-display-inline"><enum>(2)</enum><header>Phaseout of certain energy property</header><text>Section 48(a), as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HEA54CF2348494DAD87EB834F6CEA5380" changed="added" reported-display-style="italic"><paragraph id="HC40231F7AE7F4C679F42B83CB3546276" commented="no"><enum>(7)</enum><header>Phaseout for certain energy property</header><text display-inline="yes-display-inline">In the case of any energy property described in clause (vii) of paragraph (3)(A), the energy percentage determined under paragraph (2) shall be equal to—</text><subparagraph id="HF25CDA2DBF8A4A308ECF811036EC554F" commented="no"><enum>(A)</enum><text>in the case of any property the construction of which begins before January 1, 2033, and which is placed in service after December 31, 2021, 6 percent,</text></subparagraph><subparagraph id="HFE38E61F1B2C4CC3A952A16C380A19E3" commented="no"><enum>(B)</enum><text>in the case of any property the construction of which begins after December 31, 2032, and before January 1, 2034, 5.2 percent, and</text></subparagraph><subparagraph id="H92171182582F4C63930DD881B8CCDA3A" commented="no"><enum>(C)</enum><text>in the case of any property the construction of which begins after December 31, 2033, and before January 1, 2035, 4.4 percent.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H9D81B9BF410F473B979FFFA3FCC6D695"><enum>(e)</enum><header>6 percent credit for geothermal</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(2)(A)(i)(II)</external-xref> is amended by striking <quote>paragraph (3)(A)(i)</quote> and inserting <quote>clause (i) or (iii) of paragraph (3)(A)</quote>.</text></subsection><subsection id="H6652B5020FFC43D8B284E61B21F2BE2E"><enum>(f)</enum><header>Energy storage technologies; qualified biogas property; microgrid controllers; extension of other property</header><paragraph id="H7820803028744C09A3E43A5ED7ADC3E9"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(3)(A)</external-xref> is amended by striking <quote>or</quote> at the end of clause (vii), and by adding at the end the following new clauses:</text><quoted-block act-name="" id="H879DF65DC7494AA897C700CDC43AC559" style="OLC" changed="added" reported-display-style="italic"><clause id="HB3062028CDD344E1881B2D4E84483C52"><enum>(ix)</enum><text display-inline="yes-display-inline">energy storage technology, </text></clause><clause id="HB7E309534358481AAF5B8DF8E745662B"><enum>(x)</enum><text display-inline="yes-display-inline">qualified biogas property, or</text></clause><clause id="H7547CAAA14CA46838F4C23ACCD6A42AB"><enum>(xi)</enum><text>microgrid controllers,</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="HA44ADFA791C04DB5AD8FAE07D6837B7D"><enum>(2)</enum><header>Application of 6 percent credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(2)(A)(i)</external-xref> is amended by striking <quote>and</quote> at the end of subclauses (IV) and (V) and adding at the end the following new subclauses:</text><quoted-block style="OLC" id="HD5D86BCF50A84F8F97ACF88814F7F46D" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subclause id="HA13DD31316C346C392D8FDBC775D6EE3"><enum>(VI)</enum><text display-inline="yes-display-inline">energy storage technology,</text></subclause><subclause id="HBF3FA0260AC543C382C294F8A97634AB"><enum>(VII)</enum><text display-inline="yes-display-inline">qualified biogas property, </text></subclause><subclause id="H5E82DD1651654C548C589C55CAF584A0"><enum>(VIII)</enum><text>microgrid controllers, and</text></subclause><subclause id="H6F66CA2C33C04D18BEB911DEA572D2E9" commented="no"><enum>(IX)</enum><text display-inline="yes-display-inline">energy property described in clauses (v) and (vii) of paragraph (3)(A), and</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="HDD555C3C6E464755933BDB12DFAB5EC4"><enum>(3)</enum><header>Definitions</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(c)</external-xref> is amended by adding at the end the following new paragraphs: </text><quoted-block style="OLC" id="HDAA85F2233E0435BB0B6A08903160D58" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="H36DB7628EF994ABC98C5290C4526DD60" display-inline="no-display-inline"><enum>(6)</enum><header>Energy storage technology</header><subparagraph id="HB7FDCEBD19E7424EB4B16E875791A2BD"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>energy storage technology</term> means—</text><clause id="id5A2F9AE9434449BC96241BCDA63C0F60"><enum>(i)</enum><text display-inline="yes-display-inline">property (other than property primarily used in the transportation of goods or individuals and not for the production of electricity) which receives, stores, and delivers energy for conversion to electricity (or, in the case of hydrogen, which stores energy), and has a nameplate capacity of not less than 5 kilowatt hours, and</text></clause><clause id="idFB3C0E377431492695F96AE0DC3465F6"><enum>(ii)</enum><text>thermal energy storage property.</text></clause></subparagraph><subparagraph id="HFCE415180A1144EAAEB5ECC4B475F969"><enum>(B)</enum><header>Modifications of certain property</header><text display-inline="yes-display-inline">In the case of any property which either—</text><clause id="HD65155D84FEE453ABAF516F2CE60A743"><enum>(i)</enum><text>was placed in service before the date of enactment of this section and would be described in subparagraph (A)(i), except that such property has a capacity of less than 5 kilowatt hours and is modified in a manner that such property (after such modification) has a nameplate capacity of not less than 5 kilowatt hours, or </text></clause><clause id="HF4ABB1CCA3904C339C0524DE402F4510"><enum>(ii)</enum><text display-inline="yes-display-inline">is described in subparagraph (A)(i) and is modified in a manner that such property (after such modification) has an increase in nameplate capacity of not less than 5 kilowatt hours, </text></clause><continuation-text continuation-text-level="subparagraph">such property shall be treated as described in subparagraph (A)(i) except that the basis of any existing property prior to such modification shall not be taken into account for purposes of this section. In the case of any property to which this subparagraph applies, subparagraph (D) shall be applied by substituting <quote>modification</quote> for <quote>construction</quote>.</continuation-text></subparagraph><subparagraph id="H4F312F5DEE4E4CCEAFA643E350419F3C"><enum>(C)</enum><header>Thermal energy storage property</header><clause id="id9C43E06A3DED4C22803C9800E9D71FF0"><enum>(i)</enum><header>In general</header><text>Subject to clause (ii), for purposes of this paragraph, the term <term>thermal energy storage property</term> means property comprising a system which—</text><subclause id="id514F8ACB3EF24A9684C582F46DD17EDD"><enum>(I)</enum><text>is directly connected to a heating, ventilation, or air conditioning system, </text></subclause><subclause id="id40361E6C7FEA464EB2D81AD52A5ABC7B"><enum>(II)</enum><text>removes heat from, or adds heat to, a storage medium for subsequent use, and</text></subclause><subclause id="idE7AEE3B6EEAF4E61A2BBAEC1D77DCA46"><enum>(III)</enum><text>provides energy for the heating or cooling of the interior of a residential or commercial building.</text></subclause></clause><clause id="id492CE74A031B49349C39F523338CC717"><enum>(ii)</enum><header>Exclusion</header><text>The term <term>thermal energy storage property</term> shall not include—</text><subclause id="idE9C7E91E60F64A329D9FF005CB1B7F63"><enum>(I)</enum><text>a swimming pool,</text></subclause><subclause id="idB400D78809F54395AAE93BDE90B12150"><enum>(II)</enum><text>combined heat and power system property, or</text></subclause><subclause id="idC5224A6558904935A67419DBA937C778"><enum>(III)</enum><text>a building or its structural components.</text></subclause></clause></subparagraph><subparagraph id="id5E07D37BCCD44E529779BAC383364532"><enum>(D)</enum><header>Termination</header><text display-inline="yes-display-inline">The term <term>energy storage technology</term> shall not include any property the construction of which begins after December 31, 2024.</text></subparagraph></paragraph><paragraph id="H51EEAC191472464DA871A71017A2E560"><enum>(7)</enum><header>Qualified biogas property</header><subparagraph id="HB3D96958B8BD471CBC4C2A083948633E"><enum>(A)</enum><header>In general</header><text>The term <term>qualified biogas property</term> means property comprising a system which—</text><clause id="H5041073C98444AF88E195ADF6A257FCC"><enum>(i)</enum><text>converts biomass (as defined in section 45K(c)(3), as in effect on the date of enactment of this paragraph) into a gas which—</text><subclause id="H69AFFDFE26684722991DC954AB234549"><enum>(I)</enum><text>consists of not less than 52 percent methane by volume, or</text></subclause><subclause id="H327A0EC566C8469BA4CFC256FBDD4E74"><enum>(II)</enum><text>is concentrated by such system into a gas which consists of not less than 52 percent methane, and</text></subclause></clause><clause id="HA39CAD8E95474FC593C0CA823514D901"><enum>(ii)</enum><text display-inline="yes-display-inline">captures such gas for sale or productive use, and not for disposal via combustion.</text></clause></subparagraph><subparagraph id="H000A6DB9ABD34DCEBB43A473EE9E523C"><enum>(B)</enum><header>Inclusion of cleaning and conditioning property</header><text display-inline="yes-display-inline">The term <term>qualified biogas property</term> includes any property which is part of such system which cleans or conditions such gas.</text></subparagraph><subparagraph id="HBA8E57F328F5491AA8F1BC269C18663B"><enum>(C)</enum><header>Termination</header><text display-inline="yes-display-inline">The term <term>qualified biogas property</term> shall not include any property the construction of which begins after December 31, 2024.</text></subparagraph></paragraph><paragraph id="HB8F20A2C977946058F4BD87A3E965238"><enum>(8)</enum><header>Microgrid controller</header><subparagraph id="HEF6543DD5974433B966A83C1B4133E6D"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <quote>microgrid controller</quote> means equipment which is—</text><clause id="HE1143A826E5C47CD9562FF9D53E14ACE"><enum>(i)</enum><text>part of a qualified microgrid, and</text></clause><clause id="H85961726DF754E9ABDBE279C49888F4A"><enum>(ii)</enum><text>designed and used to monitor and control the energy resources and loads on such microgrid.</text></clause></subparagraph><subparagraph id="H91F24322EBCE44E9A56085ECABD59163"><enum>(B)</enum><header>Qualified microgrid</header><text>The term <quote>qualified microgrid</quote> means an electrical system which—</text><clause id="H1BA0FF1AF04C40BDA21CA16A695A543F"><enum>(i)</enum><text>includes equipment which is capable of generating not less than 4 kilowatts and not greater than 20 megawatts of electricity,</text></clause><clause id="HE0E689C58EA64DE8B2C0F44F1898A1AC"><enum>(ii)</enum><text>is capable of operating—</text><subclause id="H2F7F5DA1D1834B7397FDBBF31AA5FA8C"><enum>(I)</enum><text>in connection with the electrical grid and as a single controllable entity with respect to such grid, and</text></subclause><subclause id="HFD495FFC2B8740CEB06DB2E8BC03D8D5"><enum>(II)</enum><text>independently (and disconnected) from such grid, and</text></subclause></clause><clause id="H86616959B57642BAB234FC6641DF2E93"><enum>(iii)</enum><text>is not part of a bulk-power system (as defined in section 215 of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/824o">16 U.S.C. 824o</external-xref>)).</text></clause></subparagraph><subparagraph id="H1BB8AD88098E4079AD61CAE4685EBE53"><enum>(C)</enum><header>Termination</header><text>The term <quote>microgrid controller</quote> shall not include any property the construction of which begins after December 31, 2024.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H70A453ADEEEC444D978F4C8A5CEACAB2"><enum>(4)</enum><header>Denial Of Double Benefit For Qualified Biogas Property</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45">Section 45(e)</external-xref> is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" id="H79B31E06C333459BAD9AA35BF69D7F1F" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="H68C64EC82A224761A697785D1E63C651"><enum>(12)</enum><header>Coordination with energy credit for qualified biogas property</header><text display-inline="yes-display-inline">The term <term>qualified facility</term> shall not include any facility which produces electricity from gas produced by qualified biogas property (as defined in section 48(c)(7)) if a credit is allowed under section 48 with respect to such property for the taxable year or any prior taxable year.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph display-inline="no-display-inline" commented="no" id="idF86878FCE32C4DA0B190C432183090BA"><enum>(5)</enum><header>Public utility property</header><text>Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/50">section 50(d)</external-xref> is amended—</text><subparagraph display-inline="no-display-inline" commented="no" id="id349F22A3A875455AB1F27F04BD870FF1"><enum>(A)</enum><text>by adding after the first sentence the following new sentence: <quote>At the election of a taxpayer, this paragraph shall not apply to any energy storage technology (as defined in section 48(c)(6)), provided—</quote>, and</text></subparagraph><subparagraph display-inline="no-display-inline" commented="no" id="id184FA8EE4EA04DED9232F11E367C03F9"><enum>(B)</enum><text>by adding the following new subparagraphs:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id096375404C60495A83F9A792A726ED72" changed="added" reported-display-style="italic"><subparagraph display-inline="no-display-inline" commented="no" id="id07445FB519954635A59D44B00F7DB81C"><enum>(A)</enum><text>no election under this paragraph shall be permitted if the making of such election is prohibited by a State or political subdivision thereof, by any agency or instrumentality of the United States, or by a public service or public utility commission or other similar body of any State or political subdivision that regulates public utilities as described in section 7701(a)(33)(A),</text></subparagraph><subparagraph display-inline="no-display-inline" commented="no" id="idBFE282CB651342AAB5E4A7894627C555"><enum>(B)</enum><text>an election under this paragraph shall be made separately with respect to each energy storage technology by the due date (including extensions) of the Federal tax return for the taxable year in which the energy storage technology is placed in service by the taxpayer, and once made, may be revoked only with the consent of the Secretary, and</text></subparagraph><subparagraph display-inline="no-display-inline" commented="no" id="id1073B1EBA2EB4743A30C3307CEE3CA94"><enum>(C)</enum><text>an election shall not apply with respect to any energy storage technology if such energy storage technology has a maximum capacity equal to or less than 500 kilowatt hours.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="HDC62A4391BF144F097037B6D962DFE68"><enum>(g)</enum><header>Fuel cells using electromechanical processes</header><paragraph id="H9A1C26CBD02B4B4792B676BF7EDB8B26"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(c)(1)</external-xref> is amended—</text><subparagraph id="H23D8CFB5F30F489AA21DC3A47B5887A7"><enum>(A)</enum><text>in subparagraph (A)(i)—</text><clause id="HFC6A70A620644F829EB9E78FF9D4287C"><enum>(i)</enum><text>by inserting <quote>or electromechanical</quote> after <quote>electrochemical</quote>, and</text></clause><clause id="HA6A4F50BBF144B448B809117464200BE" commented="no"><enum>(ii)</enum><text>by inserting <quote>(1 kilowatt in the case of a fuel cell power plant with a linear generator assembly)</quote> after <quote>0.5 kilowatt</quote>, and</text></clause></subparagraph><subparagraph id="H6E6819E0A7674BCEB48BE19901DD3D42"><enum>(B)</enum><text>in subparagraph (C)—</text><clause id="HC98174FC969643938D76B5271DEF1DE2"><enum>(i)</enum><text>by inserting <quote>, or linear generator assembly,</quote> after <quote>a fuel cell stack assembly</quote>, and </text></clause><clause id="H37722229EF6740BAACEB07A210D50294"><enum>(ii)</enum><text>by inserting <quote>or electromechanical</quote> after <quote>electrochemical</quote>.</text></clause></subparagraph></paragraph><paragraph id="H7319D18181F24299A09A13A598430B7C"><enum>(2)</enum><header>Linear generator assembly limitation</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(c)(1)</external-xref> is amended by redesignating subparagraph (D) as subparagraph (E) and by inserting after subparagraph (C) the following new subparagraph: </text><quoted-block style="OLC" id="H1ADA3143A3EB4E7FA9C82C758B795A67" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subparagraph id="H433DB8F409504CC9873912F13CB20581" commented="no"><enum>(D)</enum><header>Linear generator assembly</header><text display-inline="yes-display-inline">The term <term>linear generator assembly</term> does not include any assembly which contains rotating parts.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H432CE77341DA423085C8ADFD64ABB3C2" commented="no"><enum>(h)</enum><header>Dynamic glass</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(3)(A)(ii)</external-xref> is amended by inserting <quote>, or electrochromic glass which uses electricity to change its light transmittance properties in order to heat or cool a structure,</quote> after <quote>sunlight</quote>.</text></subsection><subsection id="H7908DF2ECB2540A2A1B3B36595B08A24" commented="no"><enum>(i)</enum><header>Coordination with low income housing tax credit</header><text display-inline="yes-display-inline">Paragraph (3) of <external-xref legal-doc="usc" parsable-cite="usc/26/50">section 50(c)</external-xref> is amended—</text><paragraph id="H5F13D363E03243AA83DCF81CC4022E47" commented="no"><enum>(1)</enum><text>by striking <quote>and</quote> at the end of subparagraph (A),</text></paragraph><paragraph id="H73ED1D336FCD4DD19DE5F2A1DD4683DC" commented="no"><enum>(2)</enum><text>by striking the period at the end of subparagraph (B) and inserting <quote>, and</quote>, and</text></paragraph><paragraph id="HF5E34FFD1E5F411FB9FD83BF67C06DCC" commented="no"><enum>(3)</enum><text>by adding at the end the following new subparagraph: </text><quoted-block style="OLC" id="H63440D5612E049CD8AAAD0C563DC6A9D" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subparagraph id="H16EFD21484CE44E7B874722E1D6A32DE" commented="no"><enum>(C)</enum><text display-inline="yes-display-inline">paragraph (1) shall not apply for purposes of determining eligible basis under section 42.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H8AFA78DEBCE24C1788DE2F1113CC5B0E"><enum>(j)</enum><header>Interconnection property</header><text>Section 48(a), as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph: </text><quoted-block style="OLC" display-inline="no-display-inline" id="idD9A8F7D2A5E844F8A41CB3E1599BF321" changed="added" reported-display-style="italic"><paragraph id="HCD13AF5FBE7F4A7886095457E6912CC6"><enum>(8)</enum><header>Interconnection property</header><subparagraph id="HFB67BADDF8E9491FBDDF7A37B3E2DC61"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of determining the credit under subsection (a), energy property shall include amounts paid or incurred by the taxpayer for qualified interconnection property in connection with the installation of energy property (as defined in paragraph (3)) which has a maximum net output of not greater than 5 megawatts (as measured in alternating current), to provide for the transmission or distribution of the electricity produced or stored by such property, and which are properly chargeable to the capital account of the taxpayer.</text></subparagraph><subparagraph id="H69E9F0F0A62549F28A4B2367F399C604"><enum>(B)</enum><header>Qualified interconnection property</header><text display-inline="yes-display-inline">The term <quote>qualified interconnection property</quote> means, with respect to an energy project which is not a microgrid controller, any tangible property—</text><clause id="HD3A4E65675B84A8CAE8E209EAE884F8F"><enum>(i)</enum><text>which is part of an addition, modification, or upgrade to a transmission or distribution system which is required at or beyond the point at which the energy project interconnects to such transmission or distribution system in order to accommodate such interconnection,</text></clause><clause id="H5564A3D86866466FB1AADA8D0EEDFDF8"><enum>(ii)</enum><text display-inline="yes-display-inline">either—</text><subclause id="H3AC3160C4E4F4BAD850B8CB9A87712A6"><enum>(I)</enum><text>which is constructed, reconstructed, or erected by the taxpayer, or </text></subclause><subclause id="HF7BF221F5C95447ABA0AE6B00AAC12F6"><enum>(II)</enum><text>for which the cost with respect to the construction, reconstruction, or erection of such property is paid or incurred by such taxpayer, and</text></subclause></clause><clause id="H740F3FD4752643C3AC4B1675D1880FA5"><enum>(iii)</enum><text display-inline="yes-display-inline">the original use of which, pursuant to an interconnection agreement, commences with a utility.</text></clause></subparagraph><subparagraph id="H7353C37963214711906A1CB6DB88161A"><enum>(C)</enum><header>Interconnection agreement</header><text display-inline="yes-display-inline">The term <quote>interconnection agreement</quote> means an agreement with a utility for the purposes of interconnecting the energy property owned by such taxpayer to the transmission or distribution system of such utility.</text></subparagraph><subparagraph id="HCE10D3EA65BD44B5B39AC2DAB10083E4"><enum>(D)</enum><header>Utility</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term <quote>utility</quote> means the owner or operator of an electrical transmission or distribution system which is subject to the regulatory authority of a State or political subdivision thereof, any agency or instrumentality of the United States, a public service or public utility commission or other similar body of any State or political subdivision thereof, or the governing or ratemaking body of an electric cooperative.</text></subparagraph><subparagraph id="HEC82E63CA00B44F9829B1337D75EAB45" commented="no"><enum>(E)</enum><header>Special rule for interconnection property</header><text>In the case of expenses paid or incurred for interconnection property, amounts otherwise chargeable to capital account with respect to such expenses shall be reduced under rules similar to the rules of section 50(c).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id37B480B91AF045A0BD5B9A3E96521FFE"><enum>(k)</enum><header>Energy projects, wage requirements, and apprenticeship requirements</header><text>Section 48(a), as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraphs:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id1E2D3C79BC9A4AD491189A22FD6A379F" changed="added" reported-display-style="italic"><paragraph id="H00908FC9F1564C20A300E2B72290E240" commented="no"><enum>(9)</enum><header>Increased credit amount for energy projects</header><subparagraph id="H0531FC2AC4BD4057AAFA60873F633096" commented="no"><enum>(A)</enum><header>In general</header><clause id="H057FCC82F38D47498E1DDE07D8BE10E3" commented="no"><enum>(i)</enum><header>Rule</header><text>In the case of any energy project which satisfies the requirements of subparagraph (B), the amount of the credit determined under this subsection (determined after the application of paragraphs (1) through (8) and without regard to this clause) shall be equal to such amount multiplied by 5.</text></clause><clause id="HDE0253CFC46F45BDBD1D8EF392DD90CD" commented="no"><enum>(ii)</enum><header>Energy project defined</header><text>For purposes of this subsection, the term <quote>energy project</quote> means a project consisting of one or more energy properties that are part of a single project.</text></clause></subparagraph><subparagraph id="H41F9F2AAB8E841ED808DFABC916D7C6F" commented="no"><enum>(B)</enum><header>Project requirements</header><text display-inline="yes-display-inline">A project meets the requirements of this subparagraph if it is one of the following: </text><clause id="HA2F7EDF6E9D94C758F190B8031CA1E8B" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">A project with a maximum net output of less than 1 megawatt of electrical (as measured in alternating current) or thermal energy.</text></clause><clause id="HCC51DB28465844E68F5F1812ACD257BF" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">A project the construction of which begins before the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (10)(A) and (11).</text></clause><clause id="H3400E2F97CDC4C2BBB7DFDCFBDCFE3C6"><enum>(iii)</enum><text>A project which satisfies the requirements of paragraphs (10)(A) and (11).</text></clause></subparagraph></paragraph><paragraph id="H6F90A08D6CB84C3396736F455AE203E1" commented="no"><enum>(10)</enum><header>Prevailing wage requirements</header><subparagraph id="HC701A2D46A574860B8387CA7135BBF0F" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The requirements described in this subparagraph with respect to any energy project are that the taxpayer shall ensure that any laborers and mechanics employed by the taxpayer or any contractor or subcontractor in—</text><clause id="HE236F45FD9F546C69DE5D206244C9E0E" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">the construction of such energy project, and</text></clause><clause id="HE7331E280CB547B789B87D5406931910" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">for the 5-year period beginning on the date such project is originally placed in service, the alteration or repair of such project,</text></clause><continuation-text continuation-text-level="subparagraph" commented="no">shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality in which such project is located as most recently determined by the Secretary of Labor, in accordance with subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code. Subject to subparagraph (C), for purposes of any determination under paragraph (9)(A)(i) for the taxable year in which the energy project is placed in service, the taxpayer shall be deemed to satisfy the requirement under clause (ii) at the time such project is placed in service.</continuation-text></subparagraph><subparagraph id="H2FA6EC2A29344F378A18F669E02BE405" commented="no"><enum>(B)</enum><header>Correction and penalty related to failure to satisfy wage requirements</header><text display-inline="yes-display-inline">Rules similar to the rules of section 45(b)(7)(B) shall apply.</text></subparagraph><subparagraph id="H4AF5CCBA82034BCF835D60CCFCA0D121"><enum>(C)</enum><header>Recapture</header><text display-inline="yes-display-inline">The Secretary shall, by regulations or other guidance, provide for recapturing the benefit of any increase in the credit allowed under this subsection by reason of this paragraph with respect to any project which does not satisfy the requirements under subparagraph (A) (after application of subparagraph (B)) for the period described in clause (ii) of subparagraph (A) (but which does not cease to be investment credit property within the meaning of section 50(a)). The period and percentage of such recapture shall be determined under rules similar to the rules of section 50(a).</text></subparagraph></paragraph><paragraph id="HEFCCB6304B714F45BBECCF03253C8DD2" commented="no"><enum>(11)</enum><header>Apprenticeship requirements</header><text display-inline="yes-display-inline">Rules similar to the rules of section 45(b)(8) shall apply.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="idB53CCBB6418B441596736D89DDCF7F44"><enum>(l)</enum><header>Domestic content; phaseout for elective payment</header><text>Section 48(a), as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraphs:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idDBBD89B63C0449198F17423C0EECF7D5" changed="added" reported-display-style="italic"><paragraph id="HA976A8BE543045568626DA2C7C113E14" commented="no"><enum>(12)</enum><header>Domestic content bonus credit amount</header><subparagraph id="H87C90ABF95D94EEB9CD8FE594D09EC11"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any energy project which satisfies the requirement under subparagraph (B), for purposes of applying paragraph (2) with respect to such property, the energy percentage shall be increased by the applicable credit rate increase.</text></subparagraph><subparagraph id="H6C28C2A459044E129D66569F9BDC6D85"><enum>(B)</enum><header>Requirement</header><text>Rules similar to the rules of section 45(b)(9)(B) shall apply.</text></subparagraph><subparagraph id="HAE702A3D6BB846A7B8B36AA7D19B5979"><enum>(C)</enum><header>Applicable credit rate increase</header><text>For purposes of subparagraph (A), the applicable credit rate increase shall be—</text><clause id="HF841F7A4B7454BDC8E55B87E888E9EC9"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of an energy project which does not satisfy the requirements of paragraph (9)(B), 2 percentage points, and</text></clause><clause id="H8CAB5EE803DA4D0FBB023C226BBF7417"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of an energy project which satisfies the requirements of paragraph (9)(B), 10 percentage points.</text></clause></subparagraph></paragraph><paragraph id="idF1AE42531A4A45F0BD62ED47AD9A833E"><enum>(13)</enum><header>Phaseout for elective payment</header><text>In the case of a taxpayer making an election under section 6417 with respect to a credit under this section, rules similar to the rules of section 45(b)(10) shall apply.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H6CAF29BA03454D2DB2AB335F14E71E07"><enum>(m)</enum><header>Special rule for property financed by tax-exempt bonds</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(4)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" id="H00B2B2259F994C9FB31FF00F916D9A5A" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="H3047DE81D22E4D74A2B2EFA7B617CC11"><enum>(4)</enum><header>Special rule for property financed by tax-exempt bonds</header><text display-inline="yes-display-inline">Rules similar to the rule under section 45(b)(3) shall apply for purposes of this section.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H06B22D961D924841BD99ACCEECB0970E"><enum>(n)</enum><header>Treatment of certain contracts involving energy storage</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/7701">Section 7701(e)</external-xref> is amended—</text><paragraph id="H4DD2E467741241CDBAFECA2F02F4F9C1"><enum>(1)</enum><text>in paragraph (3)—</text><subparagraph id="HC35C40C2C7AF46A3AAA068835B85BF32"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (A)(i), by striking <quote>or</quote> at the end of subclause (II), by striking <quote>and</quote> at the end of subclause (III) and inserting <quote>or</quote>, and by adding at the end the following new subclause: </text><quoted-block style="OLC" id="HB30B6A29A69249DF979915001433F0DC" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subclause id="H7252B501BBF04454A947987662E4F635"><enum>(IV)</enum><text display-inline="yes-display-inline">the operation of a storage facility, and</text></subclause><after-quoted-block>, and</after-quoted-block></quoted-block></subparagraph><subparagraph id="HED03413A892E44DB9B67500207347783"><enum>(B)</enum><text>by adding at the end the following new subparagraph: </text><quoted-block style="OLC" id="HC54480B8F1084D5FB3156215A532C4B1" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subparagraph id="HA13AFE7644DA4CE69DDCD25B7AA0B508"><enum>(F)</enum><header>Storage facility</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), the term <quote>storage facility</quote> means a facility which uses energy storage technology within the meaning of section 48(c)(6).</text></subparagraph><after-quoted-block>, and </after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="HC119C378CE2346078E3961B6C1E96531"><enum>(2)</enum><text>in paragraph (4), by striking <quote>or water treatment works facility</quote> and inserting <quote>water treatment works facility, or storage facility</quote>. </text></paragraph></subsection><subsection id="H8575E8EB2E864C15B9D1DB66E930BCB4"><enum>(o)</enum><header>Increase in credit rate for energy communities</header><text display-inline="yes-display-inline">Section 48(a), as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" id="H5F630B6575764242B1C49B852A4006FD" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="H6BE7F0AC506D49838CAFCE54E2C92535"><enum>(14)</enum><header>Increase in credit rate for energy communities</header><subparagraph id="H225B946790504E12B33A693524265D3C"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any energy project that is placed in service within an energy community (as defined in section 45(b)(11)(B), as applied by substituting <quote>energy project</quote> for <quote>qualified facility</quote> each place it appears), for purposes of applying paragraph (2) with respect to energy property which is part of such project, the energy percentage shall be increased by the applicable credit rate increase.</text></subparagraph><subparagraph id="HE0951A7F5072427DAC1B37A0951193FE"><enum>(B)</enum><header>Applicable credit rate increase</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), the applicable credit rate increase shall be equal to—</text><clause id="H91EDEDB7D1F14B8FBEAD423A8F00ECE7"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of any energy project which does not satisfy the requirements of paragraph (9)(B), 2 percentage points, and</text></clause><clause id="HBD962735A4D24512BEF7EA5EA3F88C6D"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of any energy project which satisfies the requirements of paragraph (9)(B), 10 percentage points.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id89116DA2C13E45E581787D861483927E"><enum>(p)</enum><header>Regulations</header><text>Section 48(a), as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id63A37E5CC088407BBAFC00C378BFC8DE" changed="added" reported-display-style="italic"><paragraph id="H34682DE7B2254BB7A17D0520D2B8C0A5" commented="no"><enum>(15)</enum><header>Regulations and guidance</header><text display-inline="yes-display-inline">The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of administering the requirements of this subsection.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H7BC9D33A7700400F8CE07AF467762D12"><enum>(q)</enum><header>Effective dates</header><paragraph id="H4126CA7F53E64E7D842BFD6409753959"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraphs (2) and (3), the amendments made by this section shall apply to property placed in service after December 31, 2021.</text></paragraph><paragraph id="H9576F557C9D143399C550116D2F1C3BD" display-inline="no-display-inline"><enum>(2)</enum><header>Other property</header><text display-inline="yes-display-inline">The amendments made by subsections (f), (g), (h), (i), (j), (l), (n), and (o) shall apply to property placed in service after December 31, 2022.</text></paragraph><paragraph id="HE5FE3FAEC49D4184B774EB42EA1265CE"><enum>(3)</enum><header>Special rule for property financed by tax-exempt bonds</header><text display-inline="yes-display-inline">The amendments made by subsection (m) shall apply to property the construction of which begins after the date of enactment of this Act.</text></paragraph></subsection></section><section id="HAA2E60B848CB443691F9EFAB668CDFE7" display-inline="no-display-inline"><enum>13103.</enum><header>Increase in energy credit for solar and wind facilities placed in service in connection with low-income communities</header><subsection id="HC34CC5657FE64DD780E5FCB2F1C5EEEE"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48</external-xref> is amended by adding at the end the following new subsection:</text><quoted-block style="OLC" id="H29701899F38C49468C276174DAEB63D1" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subsection id="H5F0C4C9AD1424C43812DAAF1CB4E0FDC"><enum>(e)</enum><header>Special rules for certain solar and wind facilities placed in service in connection with low-income communities</header><paragraph id="HB091FA9494AA44DAB5E7E760308A4C37"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any qualified solar and wind facility with respect to which the Secretary makes an allocation of environmental justice solar and wind capacity limitation under paragraph (4)—</text><subparagraph id="H531C0B9BDD1F461AAD353D046759CC99"><enum>(A)</enum><text>the energy percentage otherwise determined under paragraph (2) or (5) of subsection (a) with respect to any eligible property which is part of such facility shall be increased by—</text><clause id="H436B92A2A7444671BFDC83D46245EF4B"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of a facility described in subclause (I) of paragraph (2)(A)(iii) and not described in subclause (II) of such paragraph, 10 percentage points, and </text></clause><clause id="H2929ECFB6C7E4F929598EA2341B69E94"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of a facility described in subclause (II) of paragraph (2)(A)(iii), 20 percentage points, and</text></clause></subparagraph><subparagraph id="H9FE0F1CDDACB4FDDAD815BA4A616B92A"><enum>(B)</enum><text>the increase in the credit determined under subsection (a) by reason of this subsection for any taxable year with respect to all property which is part of such facility shall not exceed the amount which bears the same ratio to the amount of such increase (determined without regard to this subparagraph) as—</text><clause id="HAE636BA13ADF47CA9E030395CE373888"><enum>(i)</enum><text>the environmental justice solar and wind capacity limitation allocated to such facility, bears to</text></clause><clause id="H9E7D02E8671941A39E0605F875696F9D"><enum>(ii)</enum><text>the total megawatt nameplate capacity of such facility, as measured in direct current.</text></clause></subparagraph></paragraph><paragraph id="H3C6F154A33B64B38983DC6238E6EF05D"><enum>(2)</enum><header>Qualified solar and wind facility</header><text>For purposes of this subsection—</text><subparagraph id="HE411835777AB4F95BD1A34455583DC21"><enum>(A)</enum><header>In general</header><text>The term <quote>qualified solar and wind facility</quote> means any facility—</text><clause id="H29BB83C335D14B5DB3E3210B79DBCD91"><enum>(i)</enum><text>which generates electricity solely from property described in section 45(d)(1) or in clause (i) or (vi) of subsection (a)(3)(A),</text></clause><clause id="H4EF9207C4A5945DD957F0E9222F8D9F1"><enum>(ii)</enum><text>which has a maximum net output of less than 5 megawatts (as measured in alternating current), and</text></clause><clause id="HF5180C681EAC4CD69DCFCDB224477D46"><enum>(iii)</enum><text>which—</text><subclause id="H8BD42D1ADB184625A27AD2295E2C3DA8"><enum>(I)</enum><text>is located in a low-income community (as defined in section 45D(e)) or on Indian land (as defined in section 2601(2) of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/25/3501">25 U.S.C. 3501(2)</external-xref>)), or</text></subclause><subclause id="H0541E2C65C2644AD9DEC1DA6CB592B28"><enum>(II)</enum><text>is part of a qualified low-income residential building project or a qualified low-income economic benefit project.</text></subclause></clause></subparagraph><subparagraph id="H532FDF85CE3841D5B4F11B8C83293518"><enum>(B)</enum><header>Qualified low-income residential building project</header><text>A facility shall be treated as part of a qualified low-income residential building project if—</text><clause id="HA1553ED789E247CF99110B59A7404DA0"><enum>(i)</enum><text display-inline="yes-display-inline">such facility is installed on a residential rental building which participates in a covered housing program (as defined in section 41411(a) of the Violence Against Women Act of 1994 (<external-xref legal-doc="usc" parsable-cite="usc/34/12491">34 U.S.C. 12491(a)(3)</external-xref>), a housing assistance program administered by the Department of Agriculture under title V of the Housing Act of 1949, a housing program administered by a tribally designated housing entity (as defined in section 4(22) of the Native American Housing Assistance and Self-Determination Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/25/4103">25 U.S.C. 4103(22)</external-xref>)) or such other affordable housing programs as the Secretary may provide, and</text></clause><clause id="HFD029B106A054334819057F77A87F3B3"><enum>(ii)</enum><text>the financial benefits of the electricity produced by such facility are allocated equitably among the occupants of the dwelling units of such building.</text></clause></subparagraph><subparagraph id="HD059FAB0E28D497E8B48F85D6B5103B7"><enum>(C)</enum><header>Qualified low-income economic benefit project</header><text display-inline="yes-display-inline">A facility shall be treated as part of a qualified low-income economic benefit project if at least 50 percent of the financial benefits of the electricity produced by such facility are provided to households with income of—</text><clause id="H431D3C65135B4882937D0BEBE955AC76"><enum>(i)</enum><text>less than 200 percent of the poverty line (as defined in section 36B(d)(3)(A)) applicable to a family of the size involved, or</text></clause><clause id="H74DE37B1073E46BB910A92E9213FCF60"><enum>(ii)</enum><text>less than 80 percent of area median gross income (as determined under section 142(d)(2)(B)). </text></clause></subparagraph><subparagraph id="HB43705D1ABBE4D11AB29F8F26E08ECE1"><enum>(D)</enum><header>Financial benefit</header><text>For purposes of subparagraphs (B) and (C), electricity acquired at a below-market rate shall not fail to be taken into account as a financial benefit.</text></subparagraph></paragraph><paragraph id="H8CC5CD13BA7043F38F18A12B93DC5CD2" commented="no"><enum>(3)</enum><header>Eligible property</header><text display-inline="yes-display-inline">For purposes of this section, the term <quote>eligible property</quote> means energy property which—</text><subparagraph commented="no" id="id7AD9DC158CE340108084782C3F0C3923"><enum>(A)</enum><text display-inline="yes-display-inline">is part of a facility described in section 45(d)(1) for which an election was made under subsection (a)(5), or </text></subparagraph><subparagraph commented="no" id="id7DFB79C5A00F43DCAF52B1E1183F7CC5"><enum>(B)</enum><text display-inline="yes-display-inline">is described in clause (i) or (vi) of subsection (a)(3)(A),</text></subparagraph><continuation-text continuation-text-level="paragraph">including energy storage technology (as described in subsection (a)(3)(A)(ix)) installed in connection with such energy property.</continuation-text></paragraph><paragraph id="HD7AB6EDA15F643C88CFC5B5F9D3F2517" commented="no"><enum>(4)</enum><header>Allocations</header><subparagraph id="H6D6FE77F8A33460C929CBE681C25676C" commented="no" display-inline="no-display-inline"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 180 days after the date of enactment of this subsection, the Secretary shall establish a program to allocate amounts of environmental justice solar and wind capacity limitation to qualified solar and wind facilities. In establishing such program and to carry out the purposes of this subsection, the Secretary shall provide procedures to allow for an efficient allocation process, including, when determined appropriate, consideration of multiple projects in a single application if such projects will be placed in service by a single taxpayer.</text></subparagraph><subparagraph id="H272C4E349CE5476292D2670EF063827B" commented="no"><enum>(B)</enum><header>Limitation</header><text display-inline="yes-display-inline">The amount of environmental justice solar and wind capacity limitation allocated by the Secretary under subparagraph (A) during any calendar year shall not exceed the annual capacity limitation with respect to such year. </text></subparagraph><subparagraph id="H71A3BD31ED05478CB08F47E085B9522A" commented="no"><enum>(C)</enum><header>Annual capacity limitation</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term <term>annual capacity limitation</term> means 1.8 gigawatts of direct current capacity for each of calendar years 2023 and 2024, and zero thereafter.</text></subparagraph><subparagraph id="H1E7CBF0A3EF14CABAA27C4BEB331C5EC"><enum>(D)</enum><header>Carryover of unused limitation</header><text>If the annual capacity limitation for any calendar year exceeds the aggregate amount allocated for such year under this paragraph, such limitation for the succeeding calendar year shall be increased by the amount of such excess. No amount may be carried under the preceding sentence to any calendar year after 2024 except as provided in section 48E(h)(4)(D)(ii). </text></subparagraph><subparagraph id="HE2BB4C2711F24423AB5C23B586EA5D4B"><enum>(E)</enum><header>Placed in service deadline</header><clause id="H2820426ED4DA466C908A5CEE55B781DF"><enum>(i)</enum><header>In general</header><text>Paragraph (1) shall not apply with respect to any property which is placed in service after the date that is 4 years after the date of the allocation with respect to the facility of which such property is a part.</text></clause><clause id="H2699CD89CB2B40D885EDC349EEBAB01B"><enum>(ii)</enum><header>Application of carryover</header><text display-inline="yes-display-inline">Any amount of environmental justice solar and wind capacity limitation which expires under clause (i) during any calendar year shall be taken into account as an excess described in subparagraph (D) (or as an increase in such excess) for such calendar year, subject to the limitation imposed by the last sentence of such subparagraph.</text></clause></subparagraph></paragraph><paragraph id="HDBBF8837F6664839AAE7CF0A15A48CFF"><enum>(5)</enum><header>Recapture</header><text display-inline="yes-display-inline">The Secretary shall, by regulations or other guidance, provide for recapturing the benefit of any increase in the credit allowed under subsection (a) by reason of this subsection with respect to any property which ceases to be property eligible for such increase (but which does not cease to be investment credit property within the meaning of section 50(a)). The period and percentage of such recapture shall be determined under rules similar to the rules of section 50(a). To the extent provided by the Secretary, such recapture may not apply with respect to any property if, within 12 months after the date the taxpayer becomes aware (or reasonably should have become aware) of such property ceasing to be property eligible for such increase, the eligibility of such property for such increase is restored. The preceding sentence shall not apply more than once with respect to any facility.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H7696764DA1004B4790808D19B0CCAD61"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall take effect on January 1, 2023.</text></subsection></section><section id="H41E6B241B5584A68A6F678BAB6740040" commented="no"><enum>13104.</enum><header>Extension and modification of credit for carbon oxide sequestration</header><subsection id="H1B1D6B83AF5C4F63A717DFBBCC7F9F6C"><enum>(a)</enum><header>Modification of carbon oxide capture requirements</header><paragraph id="id3647A151C74E489ABBAD7B57039B5EC2"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45Q">Section 45Q(d)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" id="HB1D1F723BD574BDBAA87F00364BF9B74" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subsection id="HB811D87A50484F759F5265DAE80DD55E"><enum>(d)</enum><header>Qualified facility</header><text display-inline="yes-display-inline">For purposes of this section, the term <quote>qualified facility</quote> means any industrial facility or direct air capture facility—</text><paragraph id="id62C28343F9434503839149C14A1413FC"><enum>(1)</enum><text>the construction of which begins before January 1, 2033, and either—</text><subparagraph id="id5D97FFF172CE4E3CBEC19378D41A590C"><enum>(A)</enum><text>construction of carbon capture equipment begins before such date, or</text></subparagraph><subparagraph id="idB97A0A71DF9A49A3A50D986F8F2B7005"><enum>(B)</enum><text>the original planning and design for such facility includes installation of carbon capture equipment, and</text></subparagraph></paragraph><paragraph id="idAAD6ADDA10094F429FEE544AD2917B3F"><enum>(2)</enum><text display-inline="yes-display-inline">which— </text><subparagraph id="H1DC1E25048324B1B93B6C2B50D95E275"><enum>(A)</enum><text>in the case of a direct air capture facility, captures not less than 1,000 metric tons of qualified carbon oxide during the taxable year,</text></subparagraph><subparagraph id="H71A27C5DB7C349349BD1ADE238C0581A"><enum>(B)</enum><text>in the case of an electricity generating facility—</text><clause id="id66F9EE9FA02645BE98EEA3C9DB1FDABD"><enum>(i)</enum><text>captures not less than 18,750 metric tons of qualified carbon oxide during the taxable year, and</text></clause><clause id="id0C94640275E94526B2C813ED389CD834"><enum>(ii)</enum><text>with respect to any carbon capture equipment for the applicable electric generating unit at such facility, has a capture design capacity of not less than 75 percent of the baseline carbon oxide production of such unit, or</text></clause></subparagraph><subparagraph id="H74CC4A25B9524C209D3E9DB73E8C2EF6"><enum>(C)</enum><text>in the case of any other facility, captures not less than 12,500 metric tons of qualified carbon oxide during the taxable year.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id830858A18B764D4F8D22FA649251727D"><enum>(2)</enum><header>Definitions</header><subparagraph id="id16F524BEC71843FFB2D05F4656697087"><enum>(A)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45Q">Section 45Q(e)</external-xref> is amended—</text><clause id="id72E68201306F404F8B04C150D6FC95FF"><enum>(i)</enum><text>by redesignating paragraphs (1) through (3) as paragraphs (3) through (5), respectively, and</text></clause><clause id="id15A180C10ACC4415B7731E47E749C6D3"><enum>(ii)</enum><text>by inserting after <quote>For purposes of this section—</quote> the following new paragraphs:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idFF84D8FE29C540AA83A0764D6BBD18B5" changed="added" reported-display-style="italic"><paragraph id="idF36A8AE031F2425E9EB57CE061FBDD31"><enum>(1)</enum><header>Applicable electric generating unit</header><text>The term <term>applicable electric generating unit</term> means the principal electric generating unit for which the carbon capture equipment is originally planned and designed.</text></paragraph><paragraph id="id56FA851951474716AC380BFF640E0337"><enum>(2)</enum><header>Baseline carbon oxide production</header><subparagraph id="id01A781A509E24F99A424F945B9576777"><enum>(A)</enum><header>In general</header><text>The term <term>baseline carbon oxide production</term> means either of the following:</text><clause id="idC4961BC1509E4339BA5A95D5BFBFC479"><enum>(i)</enum><text>In the case of an applicable electric generating unit which was originally placed in service more than 1 year prior to the date on which construction of the carbon capture equipment begins, the average annual carbon oxide production, by mass, from such unit during—</text><subclause id="id18B1B3D2AC78446F96001BAAEF2340AB" commented="no"><enum>(I)</enum><text>in the case of an applicable electric generating unit which was originally placed in service more than 1 year prior to the date on which construction of the carbon capture equipment begins and on or after the date which is 3 years prior to the date on which construction of such equipment begins, the period beginning on the date such unit was placed in service and ending on the date on which construction of such equipment began, and</text></subclause><subclause id="id101293C533D14264A422CB4E0B1781EF" commented="no"><enum>(II)</enum><text>in the case of an applicable electric generating unit which was originally placed in service more than 3 years prior to the date on which construction of the carbon capture equipment begins, the 3 years with the highest annual carbon oxide production during the 12-year period preceding the date on which construction of such equipment began.</text></subclause></clause><clause id="id51D8D25E76DF4865825992D48BBAA584"><enum>(ii)</enum><text>In the case of an applicable electric generating unit which—</text><subclause id="id395FD268D5A140B29C02D096AA479E01"><enum>(I)</enum><text>as of the date on which construction of the carbon capture equipment begins, is not yet placed in service, or </text></subclause><subclause id="id5BAA09313E1B419E882BED904EC9B320"><enum>(II)</enum><text>was placed in service during the 1-year period prior to the date on which construction of the carbon capture equipment begins,</text></subclause><continuation-text continuation-text-level="clause">the designed annual carbon oxide production, by mass, as determined based on an assumed capacity factor of 60 percent.</continuation-text></clause></subparagraph><subparagraph id="idDE43CC11C7E94A33ADDF620B2C08A643"><enum>(B)</enum><header>Capacity factor</header><text>The term <term>capacity factor</term> means the ratio (expressed as a percentage) of the actual electric output from the applicable electric generating unit to the potential electric output from such unit.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="idFB3E2F7B6AB64C8DABD42905A630C7CE"><enum>(B)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/142">Section 142(o)(1)(B)</external-xref> is amended by striking <quote>section 45Q(e)(1)</quote> and inserting <quote>section 45Q(e)(3)</quote>.</text></subparagraph></paragraph></subsection><subsection id="idE0E841F4AD3E43BFB9658EF3F81B6552"><enum>(b)</enum><header>Modified applicable dollar amount</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/45Q">Section 45Q(b)(1)(A)</external-xref> is amended—</text><paragraph id="id652543B5BE504DF5AA55DD0D13223929"><enum>(1)</enum><text display-inline="yes-display-inline">in clause (i)—</text><subparagraph id="id6A214694C97F41ABAD227B487236D523"><enum>(A)</enum><text display-inline="yes-display-inline">in subclause (I), by striking <quote>the dollar amount</quote> and all that follows through <quote>such period</quote> and inserting <quote>$17</quote>, and</text></subparagraph><subparagraph id="id69A34437F7CD4E49A863F294708FED54"><enum>(B)</enum><text>in subclause (II), by striking <quote>the dollar amount</quote> and all that follows through <quote>such period</quote> and inserting <quote>$12</quote>, and</text></subparagraph></paragraph><paragraph id="id41BFB2E9F06B445EA7A952EA9FCB0144"><enum>(2)</enum><text>in clause (ii)—</text><subparagraph id="id3E14FF3E4FB94F2D88F68CD23F83D8B0"><enum>(A)</enum><text>in subclause (I), by striking <quote>$50</quote> and inserting <quote>$17</quote>, and</text></subparagraph><subparagraph id="id13EB6BEE427C4556927084B72EA00922"><enum>(B)</enum><text display-inline="yes-display-inline">in subclause (II), by striking <quote>$35</quote> and inserting <quote>$12</quote>.</text></subparagraph></paragraph></subsection><subsection id="H7DE99A32B3FB4DDEBAC048D037B151AB"><enum>(c)</enum><header>Determination of applicable dollar amount</header><paragraph id="H47EFBF9830444DC9BE574C1756883BA5"><enum>(1)</enum><header>In general</header><text>Section 45Q(b)(1), as amended by the preceding provisions of this Act, is amended—</text><subparagraph id="idA7C921B1FA624415B2A02C802042F3DB"><enum>(A)</enum><text>by redesignating subparagraph (B) as subparagraph (D), and </text></subparagraph><subparagraph id="id74E497935BA6470E848759B6FFAE2BA8"><enum>(B)</enum><text>by inserting after subparagraph (A) the following new subparagraphs:</text><quoted-block style="OLC" id="HF9F1EE8390F445DD87912F16D048ECDF" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subparagraph id="H8B8EF029D1EB4EB4A6AA4E4997EF11B7"><enum>(B)</enum><header>Special rule for direct air capture facilities</header><text display-inline="yes-display-inline">In the case of any qualified facility described in subsection (d)(2)(A) which is placed in service after December 31, 2022, the applicable dollar amount shall be an amount equal to the applicable dollar amount otherwise determined with respect to such qualified facility under subparagraph (A), except that such subparagraph shall be applied—</text><clause id="H5C4C472F77DF467CA7163E927DF54B2B" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">by substituting <quote>$36</quote> for <quote>$17</quote> each place it appears, and</text></clause><clause id="HFC0B7272F4F441F999EAF38190871F8F" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">by substituting <quote>$26</quote> for <quote>$12</quote> each place it appears.</text></clause></subparagraph><subparagraph id="H6ED87408EEBC42728A23E44B01C28DD3"><enum>(C)</enum><header>Applicable dollar amount for additional carbon capture equipment</header><text display-inline="yes-display-inline">In the case of any qualified facility which is placed in service before January 1, 2023, if any additional carbon capture equipment is installed at such facility and such equipment is placed in service after December 31, 2022, the applicable dollar amount shall be an amount equal to the applicable dollar amount otherwise determined under this paragraph, except that subparagraph (B) shall be applied—</text><clause id="idF4AB2D6F64094B06876D5D742550FBC2"><enum>(i)</enum><text display-inline="yes-display-inline">by substituting <quote>before January 1, 2023</quote> for <quote>after December 31, 2022</quote>, and</text></clause><clause id="id46DF6B636F5043D5A8211D79C5F4ABA6"><enum>(ii)</enum><text display-inline="yes-display-inline">by substituting <quote>the additional carbon capture equipment installed at such qualified facility</quote> for <quote>such qualified facility</quote>.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="H5714B762691047B6AB5E5FD77E793FB6"><enum>(2)</enum><header>Conforming amendments</header><subparagraph id="H4A16B1C34D5944D9AD2BD4CF489A4D6A"><enum>(A)</enum><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/45Q">Section 45Q(b)(1)(A)</external-xref> is amended by striking <quote>The applicable dollar amount</quote> and inserting <quote>Except as provided in subparagraph (B) or (C), the applicable dollar amount</quote>.</text></subparagraph><subparagraph id="H7A390F1198714DDB82D3A822E53335B7" commented="no"><enum>(B)</enum><text>Section 45Q(b)(1)(D), as redesignated by paragraph (1)(A), is amended by striking <quote>subparagraph (A)</quote> and inserting <quote>subparagraph (A), (B), or (C)</quote>.</text></subparagraph></paragraph></subsection><subsection id="HCC7947D4FDAA4B65A1965B66D6909DF1" commented="no" display-inline="no-display-inline"><enum>(d)</enum><header>Wage and apprenticeship requirements</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45Q">Section 45Q</external-xref> is amended by redesignating subsection (h) as subsection (i) and inserting after subsection (g) following new subsection: </text><quoted-block style="OLC" id="H81AE687277A149D4823010F54CCEB7C7" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subsection id="H052AFD1552424E8FB1AC826CD9D5F5F6" commented="no"><enum>(h)</enum><header>Increased credit amount for qualified facilities and carbon capture equipment</header><paragraph id="H031353762D364CA9981626AEDBE0247E" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any qualified facility or any carbon capture equipment which satisfy the requirements of paragraph (2), the amount of the credit determined under subsection (a) shall be equal to such amount (determined without regard to this sentence) multiplied by 5.</text></paragraph><paragraph id="H7DA27EE792AA41C387FACB28CD29AD58" commented="no"><enum>(2)</enum><header>Requirements</header><text display-inline="yes-display-inline">The requirements described in this paragraph are that—</text><subparagraph id="HBF6BFCE99ED145E2880FE2BEE3FF99A1"><enum>(A)</enum><text display-inline="yes-display-inline">with respect to any qualified facility the construction of which begins on or after the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (3)(A) and (4), as well as any carbon capture equipment placed in service at such facility—</text><clause id="HF0CEF8E0AE914BA080EBF4E0FD627E51"><enum>(i)</enum><text display-inline="yes-display-inline">subject to subparagraph (B) of paragraph (3), the taxpayer satisfies the requirements under subparagraph (A) of such paragraph with respect to such facility and equipment, and</text></clause><clause id="H808D5125361E42D3BF426F19C5189222"><enum>(ii)</enum><text display-inline="yes-display-inline">the taxpayer satisfies the requirements under paragraph (4) with respect to the construction of such facility and equipment, </text></clause></subparagraph><subparagraph id="H0B83FA012BC84483AE5A5AE3DE7B9AEB"><enum>(B)</enum><text display-inline="yes-display-inline">with respect to any carbon capture equipment the construction of which begins on or after the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (3)(A) and (4), and which is installed at a qualified facility the construction of which began prior to such date—</text><clause id="idC0CB78A048BF4C2B999BE14629ED6310"><enum>(i)</enum><text display-inline="yes-display-inline">subject to subparagraph (B) of paragraph (3), the taxpayer satisfies the requirements under subparagraph (A) of such paragraph with respect to such equipment, and</text></clause><clause id="idCF9B0B007AE1489AABD3AD467446D6B6"><enum>(ii)</enum><text display-inline="yes-display-inline">the taxpayer satisfies the requirements under paragraph (4) with respect to the construction of such equipment, or</text></clause></subparagraph><subparagraph id="H30DAB71CF5EF4A7F905AA50BBD2514EF"><enum>(C)</enum><text display-inline="yes-display-inline">the construction of carbon capture equipment begins prior to the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (3)(A) and (4), and such equipment is installed at a qualified facility the construction of which begins prior to such date.</text></subparagraph></paragraph><paragraph id="H19AA9629CB7A4352AD6E843513649619" commented="no"><enum>(3)</enum><header>Prevailing wage requirements</header><subparagraph id="HAC001A5E83BD4A399D13367FDA831203" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The requirements described in this subparagraph with respect to any qualified facility and any carbon capture equipment placed in service at such facility are that the taxpayer shall ensure that any laborers and mechanics employed by the taxpayer or any contractor or subcontractor in—</text><clause commented="no" id="id3383EB3F485D4F3D9E95E7E96A761C2B"><enum>(i)</enum><text>the construction of such facility or equipment, and</text></clause><clause commented="no" id="id0D77251D5461452593294759DF776CFF"><enum>(ii)</enum><text>with respect to any taxable year, for any portion of such taxable year which is within the period described in paragraph (3)(A) or (4)(A) of subsection (a), the alteration or repair of such facility or such equipment,</text></clause><continuation-text continuation-text-level="subparagraph" commented="no">shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality in which such facility and equipment are located as most recently determined by the Secretary of Labor, in accordance with subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code. For purposes of determining an increased credit amount under paragraph (1) for a taxable year, the requirement under clause (ii) of this subparagraph is applied to such taxable year in which the alteration or repair of qualified facility occurs. </continuation-text></subparagraph><subparagraph id="H9502FF92098245F59A9CAE8BB918FEE8" commented="no"><enum>(B)</enum><header>Correction and penalty related to failure to satisfy wage requirements</header><text display-inline="yes-display-inline">Rules similar to the rules of section 45(b)(7)(B) shall apply.</text></subparagraph></paragraph><paragraph id="H73DE23BBC736409DAB965CC1394BEBD3" commented="no"><enum>(4)</enum><header>Apprenticeship requirements</header><text display-inline="yes-display-inline">Rules similar to the rules of section 45(b)(8) shall apply. </text></paragraph><paragraph id="H1AAC7410BD474372BB8A33B1A888F7E3" commented="no"><enum>(5)</enum><header>Regulations and guidance</header><text display-inline="yes-display-inline">The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of administering the requirements of this subsection.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H6DEED7B5EB3D45AD9CB07264D30645FB" commented="no"><enum>(e)</enum><header>Credit reduced for tax-exempt bonds</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45Q">Section 45Q(f)</external-xref> is amended—</text><paragraph commented="no" id="id5CD8E640C9E74D23B675E600B301E3FE"><enum>(1)</enum><text>by striking the second paragraph (3), as added at the end of such section by section 80402(e) of the Infrastructure Investment and Jobs Act (<external-xref legal-doc="public-law" parsable-cite="pl/117/58">Public Law 117–58</external-xref>), and</text></paragraph><paragraph commented="no" id="id5813F29591804DE495FA14774817EBDE"><enum>(2)</enum><text>by adding at the end the following new paragraph: </text><quoted-block style="OLC" display-inline="no-display-inline" id="HC74BE6C6177C43E4989990C98A1AC4CD" changed="added" reported-display-style="italic"><paragraph id="HA9A04270152F4124BAA7531DDF80205A" commented="no"><enum>(8)</enum><header>Credit reduced for tax-exempt bonds</header><text display-inline="yes-display-inline">Rules similar to the rule under section 45(b)(3) shall apply for purposes of this section.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H013B8533BAD64DFEBC84990AD99B9781"><enum>(f)</enum><header>Application of section for certain carbon capture equipment</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/45Q">Section 45Q(g)</external-xref> is amended by inserting <quote>the earlier of January 1, 2023, and</quote> before <quote>the end of the calendar year</quote>. </text></subsection><subsection id="H120801E37F034ADE998BA23CCAF0AAA4"><enum>(g)</enum><header>Election</header><text>Section 45Q(f), as amended by subsection (e), is amended by adding at the end the following new paragraph: </text><quoted-block style="OLC" id="H0F64919AB5F74EEEB88E03A91EC48BC4" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="H4CE3F9664240452BA26EA5937BAF7A97"><enum>(9)</enum><header>Election</header><text display-inline="yes-display-inline">For purposes of paragraphs (3) and (4) of subsection (a), a person described in paragraph (3)(A)(ii) may elect, at such time and in such manner as the Secretary may prescribe, to have the 12–year period begin on the first day of the first taxable year in which a credit under this section is claimed with respect to carbon capture equipment which is originally placed in service at a qualified facility on or after the date of the enactment of the Bipartisan Budget Act of 2018 (after application of paragraph (6), where applicable) if—</text><subparagraph id="H6F3185277CC64CE7A085DC48848A3163"><enum>(A)</enum><text display-inline="yes-display-inline">no taxpayer claimed a credit under this section with respect to such carbon capture equipment for any prior taxable year,</text></subparagraph><subparagraph id="H2A167C4A635F4B71AEC63767873815B4"><enum>(B)</enum><text>the qualified facility at which such carbon capture equipment is placed in service is located in an area affected by a federally-declared disaster (as defined by section 165(i)(5)(A)) after the carbon capture equipment is originally placed in service, and</text></subparagraph><subparagraph id="H9265B632F5D94B898B90E8DFB2342F8B"><enum>(C)</enum><text>such federally-declared disaster results in a cessation of the operation of the qualified facility or the carbon capture equipment after such equipment is originally placed in service.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H17FDF5B9627942C4879D47D0EB34D916"><enum>(h)</enum><header>Regulations for baseline carbon oxide production</header><text>Subsection (i) of <external-xref legal-doc="usc" parsable-cite="usc/26/45Q">section 45Q</external-xref>, as redesignated by subsection (d), is amended—</text><paragraph id="id9549EBCB15014E15AD48CA5A8CFFE77A"><enum>(1)</enum><text>in paragraph (1), by striking <quote>and</quote>, </text></paragraph><paragraph id="id6F44FEACD0FA496BBDB657F13CB088D9"><enum>(2)</enum><text>in paragraph (2), by striking the period at the end and inserting <quote>, and</quote>, and</text></paragraph><paragraph id="idF1BF392A968F4846A9AAC3014DF3B549"><enum>(3)</enum><text>by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id834C8C03AA3A4F5E958BD977D4C18E92" changed="added" reported-display-style="italic"><paragraph id="id17AEA8B192154EA08F2835FBAEB260A6"><enum>(3)</enum><text>for purposes of subsection (d)(2)(B)(ii), adjust the baseline carbon oxide production with respect to any applicable electric generating unit at any electricity generating facility if, after the date on which the carbon capture equipment is placed in service, modifications which are chargeable to capital account are made to such unit which result in a significant increase or decrease in carbon oxide production.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="id9B86D403B3394943AC5923DECD9481DE"><enum>(i)</enum><header>Effective dates</header><paragraph id="HCF67ABDEBB7C4727A0126B3A1E155763"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraphs (2), (3), and (4), the amendments made by this section shall apply to facilities or equipment placed in service after December 31, 2022.</text></paragraph><paragraph id="HDD360DC2FE8D4F51931C454D3146FA86"><enum>(2)</enum><header>Modification of carbon oxide capture requirements</header><text>The amendments made by subsection (a) shall apply to facilities or equipment the construction of which begins after the date of enactment of this Act.</text></paragraph><paragraph id="id6F844F4E819C43FCA2E9CD66E9E0A441"><enum>(3)</enum><header>Application of section for certain carbon capture equipment</header><text>The amendments made by subsection (f) shall take effect on the date of enactment of this Act.</text></paragraph><paragraph id="idC0CE6EFC630D43E5B420E554EFA0A26D"><enum>(4)</enum><header>Election</header><text>The amendments made by subsection (g) shall apply to carbon oxide captured and disposed of after December 31, 2021. </text></paragraph></subsection></section><section id="H6DD854AFA1F7472AB36AD024AEC992DB"><enum>13105.</enum><header>Zero-emission nuclear power production credit</header><subsection id="H84776079FCA841F1A33A8AB824B8D3E7"><enum>(a)</enum><header>In general</header><text>Subpart D of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by adding at the end the following new section:</text><quoted-block display-inline="no-display-inline" id="H078E334CA7264466BA186769FD90287A" style="OLC" changed="added" reported-display-style="italic"><section id="H5CA2034B84B6429E964BB4A7A0FBA287"><enum>45U.</enum><header>Zero-emission nuclear power production credit</header><subsection id="HDFE614048B89473195A4255EF145C5DE"><enum>(a)</enum><header>Amount of credit</header><text>For purposes of section 38, the zero-emission nuclear power production credit for any taxable year is an amount equal to the amount by which—</text><paragraph id="HAC0F73CC4F544251864EC96535C4FDEE"><enum>(1)</enum><text>the product of—</text><subparagraph id="H1E70BF45FD7945E990DC441919028399"><enum>(A)</enum><text>0.3 cents, multiplied by</text></subparagraph><subparagraph id="H64D08AE9239345349623A1BBFD22ED52"><enum>(B)</enum><text>the kilowatt hours of electricity—</text><clause id="HDEA4E5035EAC44789165E7FDA653095C"><enum>(i)</enum><text>produced by the taxpayer at a qualified nuclear power facility, and</text></clause><clause id="H79376EC9694E49F789E0B2A35A5037B2"><enum>(ii)</enum><text>sold by the taxpayer to an unrelated person during the taxable year, exceeds</text></clause></subparagraph></paragraph><paragraph id="H94D5EF537B414C7C88FAD967D8CF7B56"><enum>(2)</enum><text>the reduction amount for such taxable year.</text></paragraph></subsection><subsection id="HC6D3E4A7B1BA49C4B8914E9AB794C05C"><enum>(b)</enum><header>Definitions</header><paragraph id="H1AB2B1EA2A3248B9907D17E74A9935C4"><enum>(1)</enum><header>Qualified nuclear power facility</header><text>For purposes of this section, the term <term>qualified nuclear power facility</term> means any nuclear facility—</text><subparagraph id="HD377C51AE758498AB0AFB084C9B23AEB"><enum>(A)</enum><text>which is owned by the taxpayer and which uses nuclear energy to produce electricity, </text></subparagraph><subparagraph id="H5675D8756755446EB33A926213430FFC"><enum>(B)</enum><text display-inline="yes-display-inline"> which is not an advanced nuclear power facility as defined in subsection (d)(1) of section 45J, and</text></subparagraph><subparagraph id="H2BB5A663EA6A426CB4A4A7470C82CEE6"><enum>(C)</enum><text>which is placed in service before the date of the enactment of this section. </text></subparagraph></paragraph><paragraph id="H3A2CB7CC22C541568EB8BB2C969FB918"><enum>(2)</enum><header>Reduction amount</header><subparagraph id="HF927B3EEBF6B4AC5A50EEB3726425512"><enum>(A)</enum><header>In general</header><text>For purposes of this section, the term <term>reduction amount</term> means, with respect to any qualified nuclear power facility for any taxable year, the amount equal to the lesser of—</text><clause id="H7DBD379AC21F406D875818D2569D9D12"><enum>(i)</enum><text>the amount determined under subsection (a)(1), or</text></clause><clause id="HEEB00EA416A64FC28CDC00A9725DC5C0"><enum>(ii)</enum><text>the amount equal to 16 percent of the excess of—</text><subclause id="H000029AF96C6437CB6673B722734B338"><enum>(I)</enum><text display-inline="yes-display-inline">subject to subparagraph (B), the gross receipts from any electricity produced by such facility (including any electricity services or products provided in conjunction with the electricity produced by such facility) and sold to an unrelated person during such taxable year, over</text></subclause><subclause id="HB3B29E74F4B9415E9295EB18B82BECA4"><enum>(II)</enum><text>the amount equal to the product of—</text><item id="H9B96089D39114B6BA11ABF2490A3FD49"><enum>(aa)</enum><text display-inline="yes-display-inline">2.5 cents, multiplied by</text></item><item id="H6110B82DE0214D0AA82A1EBC1052F61C"><enum>(bb)</enum><text>the amount determined under subsection (a)(1)(B).</text></item></subclause></clause></subparagraph><subparagraph id="HBC6F4E1A730E42D687BB13257185534B"><enum>(B)</enum><header>Treatment of certain receipts</header><clause id="H458A761D34C04BCE8FF0365922A8ABDB"><enum>(i)</enum><header>In general</header><text>Subject to clause (iii), the amount determined under subparagraph (A)(ii)(I) shall include any amount received by the taxpayer during the taxable year with respect to the qualified nuclear power facility from a zero-emission credit program. For purposes of determining the amount received during such taxable year, the taxpayer shall take into account any reductions required under such program.</text></clause><clause id="HC380D121646641039585430E5A943CDE"><enum>(ii)</enum><header>Zero-emission credit program</header><text display-inline="yes-display-inline">For purposes of this subparagraph, the term <term>zero-emission credit program</term> means any payments with respect to a qualified nuclear power facility as a result of any Federal, State or local government program for, in whole or in part, the zero-emission, zero-carbon, or air quality attributes of any portion of the electricity produced by such facility.</text></clause><clause id="idC118BFE4DB9B47A3947E2263F30339FC"><enum>(iii)</enum><header>Exclusion</header><text>For purposes of clause (i), any amount received by the taxpayer from a zero-emission credit program shall be excluded from the amount determined under subparagraph (A)(ii)(I) if the full amount of the credit calculated pursuant to subsection (a) (determined without regard to this subparagraph) is used to reduce payments from such zero-emission credit program.</text></clause></subparagraph></paragraph><paragraph id="H9E713B758D5B482BAB157EBEDF2CB2A5"><enum>(3)</enum><header>Electricity</header><text>For purposes of this section, the term <term>electricity</term> means the energy produced by a qualified nuclear power facility from the conversion of nuclear fuel into electric power.</text></paragraph></subsection><subsection display-inline="no-display-inline" commented="no" id="H678E5A938099402F89FA48072E07DB65"><enum>(c)</enum><header>Other rules</header><paragraph display-inline="no-display-inline" commented="no" id="HBF0A61D97EC14C9BA0F2C0F96D295A64"><enum>(1)</enum><header>Inflation adjustment</header><text display-inline="yes-display-inline">The 0.3 cent amount in subsection (a)(1)(A) and the 2.5 cent amount in subsection (b)(2)(A)(ii)(II)(aa) shall each be adjusted by multiplying such amount by the inflation adjustment factor (as determined under section 45(e)(2), as applied by substituting <quote>calendar year 2023</quote> for <quote>calendar year 1992</quote> in subparagraph (B) thereof) for the calendar year in which the sale occurs. If the 0.3 cent amount as increased under this paragraph is not a multiple of 0.05 cent, such amount shall be rounded to the nearest multiple of 0.05 cent. If the 2.5 cent amount as increased under this paragraph is not a multiple of 0.1 cent, such amount shall be rounded to the nearest multiple of 0.1 cent.</text></paragraph><paragraph display-inline="no-display-inline" commented="no" id="H1E00BE160A554BC4956350D205BB81EC"><enum>(2)</enum><header>Special rules</header><text>Rules similar to the rules of paragraphs (1), (3), (4), and (5) of section 45(e) shall apply for purposes of this section.</text></paragraph></subsection><subsection id="HD3DFC1B0953A47CFAFAAE06253B0D254"><enum>(d)</enum><header>Wage requirements</header><paragraph id="HB836CE91EB064EC8A139D9C4F2E491A4"><enum>(1)</enum><header>Increased credit amount for qualified nuclear power facilities</header><text>In the case of any qualified nuclear power facility which satisfies the requirements of paragraph (2)(A), the amount of the credit determined under subsection (a) shall be equal to such amount (as determined without regard to this sentence) multiplied by 5.</text></paragraph><paragraph id="HD35BD17FD12C480DBAAED55AB3B0FDA9"><enum>(2)</enum><header>Prevailing wage requirements</header><subparagraph id="H263058E7BE1E46CAA1A4531D36EF72C0"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The requirements described in this subparagraph with respect to any qualified nuclear power facility are that the taxpayer shall ensure that any laborers and mechanics employed by the taxpayer or any contractor or subcontractor in the alteration or repair of such facility shall be paid wages at rates not less than the prevailing rates for alteration or repair of a similar character in the locality in which such facility is located as most recently determined by the Secretary of Labor, in accordance with subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code.</text></subparagraph><subparagraph id="H48BAC4E37DD1476F970805E3822C5A4F"><enum>(B)</enum><header>Correction and penalty related to failure to satisfy wage requirements</header><text display-inline="yes-display-inline">Rules similar to the rules of section 45(b)(7)(B) shall apply. </text></subparagraph></paragraph><paragraph id="H18BE86F24E064F769CF89C17B3589810"><enum>(3)</enum><header>Regulations and guidance</header><text display-inline="yes-display-inline">The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of administering the requirements of this subsection.</text></paragraph></subsection><subsection display-inline="no-display-inline" commented="no" id="H6C80193B8AA9451F887506BE816473C5"><enum>(e)</enum><header>Termination</header><text>This section shall not apply to taxable years beginning after December 31, 2032.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HB37624AFFDD848B997ECE80CB7DDC19D"><enum>(b)</enum><header>Conforming amendments</header><paragraph id="H291EE0EF37E14745B2AC858BE7DAA7DB"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/38">Section 38(b)</external-xref> is amended—</text><subparagraph id="HDA892A5A599A41A3B269B3098A5C565D"><enum>(A)</enum><text>in paragraph (32), by striking <quote>plus</quote> at the end,</text></subparagraph><subparagraph id="HB93AC117E5984C1C874BF2D7A07E1D2F"><enum>(B)</enum><text>in paragraph (33), by striking the period at the end and inserting <quote>, plus</quote>, and</text></subparagraph><subparagraph id="H18F42F17308E4238B106C5A6F2A6673C"><enum>(C)</enum><text>by adding at the end the following new paragraph:</text><quoted-block display-inline="no-display-inline" id="H36089CD5F092498BBB80EB9A72685B7F" style="OLC" changed="added" reported-display-style="italic"><paragraph id="HE1A3A8499DA1408D975770EF70D08DB1"><enum>(34)</enum><text>the zero-emission nuclear power production credit determined under section 45U(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="HF42384BFB6B144DF86D9D6A02829C502"><enum>(2)</enum><text>The table of sections for subpart D of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by adding at the end the following new item:</text><quoted-block display-inline="no-display-inline" id="H369A242675074589B4159196A96621C5" style="OLC" changed="added" reported-display-style="italic"><toc changed="added" reported-display-style="italic"><toc-entry bold="off" level="section">Sec. 45U. Zero-emission nuclear power production credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="HA2F23CDE7EC14379A2C83B9FF88962FA"><enum>(c)</enum><header>Effective date</header><text>This section shall apply to electricity produced and sold after December 31, 2023, in taxable years beginning after such date.</text></subsection></section></part><part id="HAD79E1CFD7554C0583445E4A5FFE75A0"><enum>2<?LEXA-Enum 2?></enum><header>Clean Fuels</header><section commented="no" display-inline="no-display-inline" id="H3C64BCA2A3D947ACAB5240684FA069F9"><enum>13201.</enum><header>Extension of incentives for biodiesel, renewable diesel and alternative fuels</header><subsection id="HDC7908F622FB40CCBB68CE7F646AE7D5"><enum>(a)</enum><header>Biodiesel and renewable diesel credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/40A">Section 40A(g)</external-xref> is amended by striking <quote>December 31, 2022</quote> and inserting <quote>December 31, 2024</quote>. </text></subsection><subsection id="HF2ACEE7A97754914A3A35101A9BFF50E" commented="no"><enum>(b)</enum><header>Biodiesel mixture credit</header><paragraph id="H3401FC78E96E4270B93CAFC1B004E089" commented="no"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6426">Section 6426(c)(6)</external-xref> is amended by striking <quote>December 31, 2022</quote> and inserting <quote>December 31, 2024</quote>.</text></paragraph><paragraph id="HFF8C2676F2C949EDA69B2FBF53BDC75C" commented="no"><enum>(2)</enum><header>Fuels not used for taxable purposes</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/6427">Section 6427(e)(6)(B)</external-xref> is amended by striking <quote>December 31, 2022</quote> and inserting <quote>December 31, 2024</quote>.</text></paragraph></subsection><subsection id="HDF87482EA95F4FC29059D14FDE3EB001"><enum>(c)</enum><header>Alternative fuel credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6426">Section 6426(d)(5)</external-xref> is amended by striking <quote>December 31, 2021</quote> and inserting <quote>December 31, 2024</quote>. </text></subsection><subsection id="HB494A70477AF4A44ACC6CA3E2F3EAE5A"><enum>(d)</enum><header>Alternative fuel mixture credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6426">Section 6426(e)(3)</external-xref> is amended by striking <quote>December 31, 2021</quote> and inserting <quote>December 31, 2024</quote>.</text></subsection><subsection id="HCB6DAEBA5CD24F2B955F2BA20B5BD936" commented="no" display-inline="no-display-inline"><enum>(e)</enum><header>Payments for alternative fuels</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6427">Section 6427(e)(6)(C)</external-xref> is amended by striking <quote>December 31, 2021</quote> and inserting <quote>December 31, 2024</quote>.</text></subsection><subsection id="H0575C46C2EFB4893A6E41051BD21B028" commented="no" display-inline="no-display-inline"><enum>(f)</enum><header display-inline="yes-display-inline">Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to fuel sold or used after December 31, 2021.</text></subsection><subsection display-inline="no-display-inline" commented="no" id="idCC89CFF19B57412488E3B5E98DC356B0"><enum>(g)</enum><header>Special rule</header><text>In the case of any alternative fuel credit properly determined under <external-xref legal-doc="usc" parsable-cite="usc/26/6426">section 6426(d)</external-xref> of the Internal Revenue Code of 1986 for the period beginning on January 1, 2022, and ending with the close of the last calendar quarter beginning before the date of the enactment of this Act, such credit shall be allowed, and any refund or payment attributable to such credit (including any payment under section 6427(e) of such Code) shall be made, only in such manner as the Secretary of the Treasury (or the Secretary’s delegate) shall provide. Such Secretary shall issue guidance within 30 days after the date of the enactment of this Act providing for a one-time submission of claims covering periods described in the preceding sentence. Such guidance shall provide for a 180-day period for the submission of such claims (in such manner as prescribed by such Secretary) to begin not later than 30 days after such guidance is issued. Such claims shall be paid by such Secretary not later than 60 days after receipt. If such Secretary has not paid pursuant to a claim filed under this subsection within 60 days after the date of the filing of such claim, the claim shall be paid with interest from such date determined by using the overpayment rate and method under section 6621 of such Code.</text></subsection></section><section id="H9347DABCE2F24F66B5067BD8C28DCA7F"><enum>13202.</enum><header>Extension of second generation biofuel incentives</header><subsection id="HAE6F212628C04F88B51F5C170A3148D5"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/40">Section 40(b)(6)(J)(i)</external-xref> is amended by striking <quote>2022</quote> and inserting <quote>2025</quote>. </text></subsection><subsection id="H7084DBC01E3343139E670E7D94DE6BCB"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by subsection (a) shall apply to qualified second generation biofuel production after December 31, 2021.</text></subsection></section><section id="H0BAF88CAADB143EA8F61E6197189530C" commented="no"><enum>13203.</enum><header>Sustainable aviation fuel credit</header><subsection id="H9F22BF8C6D514D4D882C9753901B143C" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subpart D of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after section 40A the following new section: </text><quoted-block style="OLC" id="H7B9A69BA3FCA42DD9DFCAFAB34E2DBBD" display-inline="no-display-inline" changed="added" reported-display-style="italic"><section id="H51B6C871194B460DA73229AFDDCE7CE4" commented="no"><enum>40B.</enum><header>Sustainable aviation fuel credit</header><subsection id="HDDE58D2DC947485BAF6FFEEF17322CE4" commented="no"><enum>(a)</enum><header>In general</header><text>For purposes of section 38, the sustainable aviation fuel credit determined under this section for the taxable year is, with respect to any sale or use of a qualified mixture which occurs during such taxable year, an amount equal to the product of—</text><paragraph id="HD4E3BFA7F38F477BA902028A48E68A59" commented="no"><enum>(1)</enum><text>the number of gallons of sustainable aviation fuel in such mixture, multiplied by</text></paragraph><paragraph id="HA6723B1DF78743ACA97F2E4674CF0B2E" commented="no"><enum>(2)</enum><text>the sum of—</text><subparagraph id="H7938A7F182B54339BD1261F44CCE939A" commented="no"><enum>(A)</enum><text>$1.25, plus</text></subparagraph><subparagraph id="H6B7EFCB92FE54C8AADF6361E771379CC" commented="no"><enum>(B)</enum><text>the applicable supplementary amount with respect to such sustainable aviation fuel.</text></subparagraph></paragraph></subsection><subsection id="HCA88C46CDC4E463191180049474003F8" commented="no"><enum>(b)</enum><header>Applicable supplementary amount</header><text display-inline="yes-display-inline">For purposes of this section, the term <quote>applicable supplementary amount</quote> means, with respect to any sustainable aviation fuel, an amount equal to $0.01 for each percentage point by which the lifecycle greenhouse gas emissions reduction percentage with respect to such fuel exceeds 50 percent. In no event shall the applicable supplementary amount determined under this subsection exceed $0.50.</text></subsection><subsection id="HB032098EA1444B77B0979CE830636DB9" commented="no"><enum>(c)</enum><header>Qualified mixture</header><text display-inline="yes-display-inline">For purposes of this section, the term <quote>qualified mixture</quote> means a mixture of sustainable aviation fuel and kerosene if—</text><paragraph id="H26762431589844CABE3BBF401197019B" commented="no"><enum>(1)</enum><text>such mixture is produced by the taxpayer in the United States, </text></paragraph><paragraph id="HE25F33AC64114A8D9DAE074D5724AEB4" commented="no"><enum>(2)</enum><text>such mixture is used by the taxpayer (or sold by the taxpayer for use) in an aircraft,</text></paragraph><paragraph id="H6BFA8E471EC642E1AB592C7A0E2F47F4" commented="no"><enum>(3)</enum><text>such sale or use is in the ordinary course of a trade or business of the taxpayer, and</text></paragraph><paragraph id="H93E74CCD72A94A5DBE3E73872BF70610" commented="no"><enum>(4)</enum><text>the transfer of such mixture to the fuel tank of such aircraft occurs in the United States. </text></paragraph></subsection><subsection id="H377D60BAEE204482AEA17001F1BAA790" commented="no"><enum>(d)</enum><header>Sustainable aviation fuel</header><paragraph commented="no" id="id7BC47B317FA6461188A38B1E8CD07048"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this section, the term <quote>sustainable aviation fuel</quote> means liquid fuel, the portion of which is not kerosene, which—</text><subparagraph id="H538AA4EACA44453EB3096907EDB0AD90" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">meets the requirements of—</text><clause id="HF31F8DEA77A9411FBDC2C5F852EE24BF" commented="no"><enum>(i)</enum><text>ASTM International Standard D7566, or</text></clause><clause id="H9BFF2D0D385A4CF292D51A39E67870DB" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">the Fischer Tropsch provisions of ASTM International Standard D1655, Annex A1,</text></clause></subparagraph><subparagraph id="H6152765C4A7B4ECDB26FBDBD64C69839" commented="no"><enum>(B)</enum><text>is not derived from coprocessing an applicable material (or materials derived from an applicable material) with a feedstock which is not biomass,</text></subparagraph><subparagraph commented="no" id="idC1CA2143FAA64B0284F175FA8914B217"><enum>(C)</enum><text>is not derived from palm fatty acid distillates or petroleum, and</text></subparagraph><subparagraph id="H6F4A200E8BB44FDD839417EA35981F68" commented="no"><enum>(D)</enum><text>has been certified in accordance with subsection (e) as having a lifecycle greenhouse gas emissions reduction percentage of at least 50 percent.</text></subparagraph></paragraph><paragraph commented="no" id="id434C68F11A2247D09BF9161FDCDFC6BF"><enum>(2)</enum><header>Definitions</header><text>In this subsection—</text><subparagraph commented="no" id="idB7CB3CCEF74249B0B9C6FD0793794132"><enum>(A)</enum><header>Applicable material</header><text>The term <term>applicable material</term> means—</text><clause commented="no" id="idAD23C5E36B274F4DA3A317A9E5ABD616"><enum>(i)</enum><text>monoglycerides, diglycerides, and triglycerides,</text></clause><clause commented="no" id="idE0AE8B2FFE0E41ADB16AE59C7588EF6D"><enum>(ii)</enum><text>free fatty acids, and</text></clause><clause commented="no" id="idEC8ACC0D9C5547A7BF8C6289E1A2746C"><enum>(iii)</enum><text>fatty acid esters.</text></clause></subparagraph><subparagraph commented="no" id="idA03778C8613045BD8EC7FE99DBA6AF12"><enum>(B)</enum><header>Biomass</header><text>The term <term>biomass</term> has the same meaning given such term in section 45K(c)(3).</text></subparagraph></paragraph></subsection><subsection id="H2169D58BF28B4ED6B1CF848F23401FA0" commented="no"><enum>(e)</enum><header>Lifecycle greenhouse gas emissions reduction percentage</header><text display-inline="yes-display-inline">For purposes of this section, the term <quote>lifecycle greenhouse gas emissions reduction percentage</quote> means, with respect to any sustainable aviation fuel, the percentage reduction in lifecycle greenhouse gas emissions achieved by such fuel as compared with petroleum-based jet fuel, as defined in accordance with—</text><paragraph id="HE54DF806E6FE4F07B9AC3777083ED854"><enum>(1)</enum><text>the most recent Carbon Offsetting and Reduction Scheme for International Aviation which has been adopted by the International Civil Aviation Organization with the agreement of the United States, or</text></paragraph><paragraph id="H0EEC9841A28E4DE58C51127EE09F05E7"><enum>(2)</enum><text>any similar methodology which satisfies the criteria under section 211(o)(1)(H) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(1)(H)</external-xref>), as in effect on the date of enactment of this section.</text></paragraph></subsection><subsection id="HBA82087662184BC989C507EA77751CA2" commented="no"><enum>(f)</enum><header>Registration of sustainable aviation fuel producers</header><text display-inline="yes-display-inline">No credit shall be allowed under this section with respect to any sustainable aviation fuel unless the producer or importer of such fuel—</text><paragraph commented="no" id="id59D4E9245F2D4E63B7046CDE713989B2"><enum>(1)</enum><text display-inline="yes-display-inline">is registered with the Secretary under section 4101, and </text></paragraph><paragraph commented="no" id="idA747B93D0B4949CD9F40A32B5010B873"><enum>(2)</enum><text display-inline="yes-display-inline">provides—</text><subparagraph commented="no" id="id540342D61B854CADB5DF072B61788AC3"><enum>(A)</enum><text display-inline="yes-display-inline">certification (in such form and manner as the Secretary shall prescribe) from an unrelated party demonstrating compliance with—</text><clause commented="no" id="id7F8787C385274AF4AE82FFDB5B92EAAB"><enum>(i)</enum><text display-inline="yes-display-inline">any general requirements, supply chain traceability requirements, and information transmission requirements established under the Carbon Offsetting and Reduction Scheme for International Aviation described in paragraph (1) of subsection (e), or</text></clause><clause commented="no" id="idCB8993460DD84F859F2ACBE13FF991C1"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of any methodology established under paragraph (2) of such subsection, requirements similar to the requirements described in clause (i), and</text></clause></subparagraph><subparagraph commented="no" id="id06A55F1798DE414BB26DE34BF7927EEB"><enum>(B)</enum><text display-inline="yes-display-inline">such other information with respect to such fuel as the Secretary may require for purposes of carrying out this section.</text></subparagraph></paragraph></subsection><subsection id="H879F77DC0061443ABEB08FF0F4A577A0" commented="no"><enum>(g)</enum><header>Coordination with credit against excise tax</header><text display-inline="yes-display-inline">The amount of the credit determined under this section with respect to any sustainable aviation fuel shall, under rules prescribed by the Secretary, be properly reduced to take into account any benefit provided with respect to such sustainable aviation fuel solely by reason of the application of section 6426 or 6427(e).</text></subsection><subsection id="H85656C67813D46A4BBF383DF7377C348" commented="no"><enum>(h)</enum><header>Termination</header><text>This section shall not apply to any sale or use after December 31, 2024.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HCB27D3D52C3644FA86B7B97FD40837DC" commented="no"><enum>(b)</enum><header>Credit made part of general business credit</header><text display-inline="yes-display-inline"> Section 38(b), as amended by the preceding provisions of this Act, is amended by striking <quote>plus</quote> at the end of paragraph (33), by striking the period at the end of paragraph (34) and inserting <quote>, plus</quote>, and by inserting after paragraph (34) the following new paragraph:</text><quoted-block style="OLC" id="H8C13EBBB96454EB5B4C09DDFEA208ED5" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="H80D259A4DDFE4FB88D8D2E703BBE69B2" commented="no"><enum>(35)</enum><text display-inline="yes-display-inline">the sustainable aviation fuel credit determined under section 40B.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H0FDB48847BF94642ADB44731B2981AAA" commented="no"><enum>(c)</enum><header>Coordination with biodiesel incentives</header><paragraph id="H7ACFA9E8507A4B9BBBA0DD3A6D32D069" commented="no"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/40A">Section 40A(d)(1)</external-xref> is amended by inserting <quote>or 40B</quote> after <quote>determined under section 40</quote>. </text></paragraph><paragraph id="H3D974738E924488A955757396EC9455B" commented="no"><enum>(2)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/40A">Section 40A(f)</external-xref> is amended by striking paragraph (4).</text></paragraph></subsection><subsection id="H15FD654590F34B90B49462C4D0900DAF" commented="no"><enum>(d)</enum><header>Sustainable aviation fuel added to credit for alcohol fuel, biodiesel, and alternative fuel mixtures</header><paragraph id="H17A2F90B8966471BA735762CC8963754" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/6426">Section 6426</external-xref> is amended by adding at the end the following new subsection: </text><quoted-block style="OLC" id="H3EBE0C3BEA5A45F1806FE6F355B3C622" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subsection id="H74ECF84C608D49E989F69ACEBFFB104B" commented="no"><enum>(k)</enum><header>Sustainable aviation fuel credit</header><paragraph id="H40475D4E4F4D4E4F95066DFDA07F9ACD" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this section, the sustainable aviation fuel credit for the taxable year is, with respect to any sale or use of a qualified mixture, an amount equal to the product of—</text><subparagraph id="H14353F02C14D44F5B1E2DBE18B5CB64E" commented="no"><enum>(A)</enum><text>the number of gallons of sustainable aviation fuel in such mixture, multiplied by</text></subparagraph><subparagraph id="H1C9F6925A99B47AFA8C440088DD0258B" commented="no"><enum>(B)</enum><text>the sum of—</text><clause id="HC7F65F36F5C94E81A1DC58A15B7BDAF0" commented="no"><enum>(i)</enum><text>$1.25, plus</text></clause><clause id="HDDF594CEB8E84259A8707E3DD5AD5AE6" commented="no"><enum>(ii)</enum><text>the applicable supplementary amount with respect to such sustainable aviation fuel. </text></clause></subparagraph></paragraph><paragraph id="H8F824F09993948F8BC5E80EC49C8A762" commented="no"><enum>(2)</enum><header>Definitions</header><text display-inline="yes-display-inline">Any term used in this subsection which is also used in section 40B shall have the meaning given such term by section 40B.</text></paragraph><paragraph id="HC58CD23D1B5F4C5BA9EBE7D3FA264717" commented="no"><enum>(3)</enum><header>Registration requirement</header><text>For purposes of this subsection, rules similar to the rules of section 40B(f) shall apply.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H7D74AA1741FA417FBC2E6B243A21ACC0" commented="no"><enum>(2)</enum><header>Conforming amendments</header><subparagraph id="H8B3527480E184C03BD5D209418E0B1B7" commented="no"><enum>(A)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/6426">Section 6426</external-xref> is amended—</text><clause id="H9707B389DA094B5B80247F5F98A4A051" commented="no"><enum>(i)</enum><text>in subsection (a)(1), by striking <quote>and (e)</quote> and inserting <quote>(e), and (k)</quote>, and </text></clause><clause id="HB543B7742A2B416FA51F27C3AB2A782B" commented="no"><enum>(ii)</enum><text>in subsection (h), by striking <quote>under section 40 or 40A</quote> and inserting <quote>under section 40, 40A, or 40B</quote>.</text></clause></subparagraph><subparagraph id="H7B0C3BF277774CEE97B18137B2FDB75E"><enum>(B)</enum><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/6427">Section 6427(e)</external-xref> is amended—</text><clause id="idA2CD8672DFF44064A3D9531716FEF778"><enum>(i)</enum><text display-inline="yes-display-inline">in the heading, by striking <quote><header-in-text level="subsection" style="OLC">or alternative fuel</header-in-text></quote> and inserting, <quote><header-in-text level="subsection" style="OLC">alternative fuel, or sustainable aviation fuel</header-in-text></quote>,</text></clause><clause id="HA30BA552E4794BAE898A28F39D059206"><enum>(ii)</enum><text>in paragraph (1), by inserting <quote>or the sustainable aviation fuel mixture credit</quote> after <quote>alternative fuel mixture credit</quote>, and</text></clause><clause id="id18DF64E4AB5642F499A1D8E154D09A35"><enum>(iii)</enum><text>in paragraph (6)—</text><subclause id="idD722DE7398B241BDB295F644D7BB6939"><enum>(I)</enum><text>in subparagraph (C), by striking <quote>and</quote> at the end, </text></subclause><subclause id="id4599C7250DEC43CC9A4C2EF101674EED"><enum>(II)</enum><text>in subparagraph (D), by striking the period at the end and inserting <quote>, and</quote>, and </text></subclause><subclause id="id54BB35C6C7F94DAA8BCBED2B9475BE43"><enum>(III)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idBF173EF9CCBB40DD85FC88C427AC0663" changed="added" reported-display-style="italic"><subparagraph id="idF2EC525743454FB3AFDABD4876EA2B54"><enum>(E)</enum><text>any qualified mixture of sustainable aviation fuel (as defined in section 6426(k)(3)) sold or used after December 31, 2024.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subclause></clause></subparagraph><subparagraph id="H4DFA4408019E48F699B8762F2719E67F"><enum>(C)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/4101">Section 4101(a)(1)</external-xref> is amended by inserting <quote>every person producing or importing sustainable aviation fuel (as defined in section 40B),</quote> before <quote>and every person producing second generation biofuel</quote>.</text></subparagraph><subparagraph id="id2E42FC3B5B6548B88C4CB3489C3FE93D"><enum>(D)</enum><text>The table of sections for subpart D of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after the item relating to section 40A the following new item:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id378B8E49F3594E37B37152DCE695FFA1" changed="added" reported-display-style="italic"><toc changed="added" reported-display-style="italic"><toc-entry level="section" bold="off">Sec. 40B. Sustainable aviation fuel credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="HB434A2338B594D61825EE304C66AD429"><enum>(e)</enum><header>Amount of credit included in gross income</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/87">Section 87</external-xref> is amended by striking <quote>and</quote> in paragraph (1), by striking the period at the end of paragraph (2) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph: </text><quoted-block style="OLC" id="HFCA7F17993B645E7B70B89B450E64D07" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="H42703D9BEDB84E92AF5A61708517FC27"><enum>(3)</enum><text display-inline="yes-display-inline">the sustainable aviation fuel credit determined with respect to the taxpayer for the taxable year under section 40B(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H7492B76499154BE1AC6DBA75D6178F03" commented="no"><enum>(f)</enum><header>Effective date</header><text>The amendments made by this section shall apply to fuel sold or used after December 31, 2022. </text></subsection></section><section id="H41F1160B2DFA4CF0873E1EAB6CDA2D86"><enum>13204.</enum><header>Clean hydrogen</header><subsection id="H2C430F5F10F441E086713C49B70EF9A1"><enum>(a)</enum><header>Credit for production of clean hydrogen</header><paragraph id="HFAB16CF4F79A4597B7249A8EF1430AF1"><enum>(1)</enum><header>In general</header><text>Subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by adding at the end the following new section:</text><quoted-block display-inline="no-display-inline" id="H419CCD400D334D51A5236A3F26F6CD5A" style="OLC" changed="added" reported-display-style="italic"><section id="H6C701D5EE4494D129920E1B1AD705AD2"><enum>45V.</enum><header>Credit for production of clean hydrogen</header><subsection id="id2BD91A4456A1421291872BF5942AFAA1"><enum>(a)</enum><header>Amount of credit</header><text>For purposes of section 38, the clean hydrogen production credit for any taxable year is an amount equal to the product of—</text><paragraph id="idDED2484FFF7B4DE1ADF83A1463247F2E"><enum>(1)</enum><text>the kilograms of qualified clean hydrogen produced by the taxpayer during such taxable year at a qualified clean hydrogen production facility during the 10-year period beginning on the date such facility was originally placed in service, multiplied by</text></paragraph><paragraph id="id96E530B3239C4EB3A7AE619503AA18F2"><enum>(2)</enum><text>the applicable amount (as determined under subsection (b)) with respect to such hydrogen.</text></paragraph></subsection><subsection id="H2073B285C82441D791AB392BCF27E318"><enum>(b)</enum><header>Applicable amount</header><paragraph id="HADDB003BCBF54942910418A0EFDA0230"><enum>(1)</enum><header>In general</header><text>For purposes of subsection (a)(2), the applicable amount shall be an amount equal to the applicable percentage of $0.60. If any amount as determined under the preceding sentence is not a multiple of 0.1 cent, such amount shall be rounded to the nearest multiple of 0.1 cent.</text></paragraph><paragraph id="HB652A081A2BA4B8AB51C622C1BAB2342"><enum>(2)</enum><header>Applicable percentage</header><text>For purposes of paragraph (1), the applicable percentage shall be determined as follows:</text><subparagraph id="H1CB109DAEE394519B59E2F542DEC13B2" display-inline="no-display-inline"><enum>(A)</enum><text display-inline="yes-display-inline">In the case of any qualified clean hydrogen which is produced through a process that results in a lifecycle greenhouse gas emissions rate of—</text><clause id="HB31B4BDADBCD493EBD6D1B518E5BAC76"><enum>(i)</enum><text display-inline="yes-display-inline">not greater than 4 kilograms of CO2e per kilogram of hydrogen, and</text></clause><clause id="H39120FF7823D410E8F7F0B055C368737"><enum>(ii)</enum><text display-inline="yes-display-inline">not less than 2.5 kilograms of CO2e per kilogram of hydrogen,</text></clause><continuation-text continuation-text-level="subparagraph">the applicable percentage shall be 20 percent. </continuation-text></subparagraph><subparagraph id="HB088657EBC2146D1BE7B06CCE7F982D3"><enum>(B)</enum><text display-inline="yes-display-inline">In the case of any qualified clean hydrogen which is produced through a process that results in a lifecycle greenhouse gas emissions rate of—</text><clause id="HBBC512322BFC46558CEF027451866A96"><enum>(i)</enum><text display-inline="yes-display-inline">less than 2.5 kilograms of CO2e per kilogram of hydrogen, and</text></clause><clause id="HEB19BACE1834400EBBCF35B2F93F8CE0"><enum>(ii)</enum><text display-inline="yes-display-inline">not less than 1.5 kilograms of CO2e per kilogram of hydrogen,</text></clause><continuation-text continuation-text-level="subparagraph">the applicable percentage shall be 25 percent. </continuation-text></subparagraph><subparagraph id="H3361E32938E644E3A90021BBA3A415B2"><enum>(C)</enum><text>In the case of any qualified clean hydrogen which is produced through a process that results in a lifecycle greenhouse gas emissions rate of—</text><clause id="H8913938592B8484DBC1EC321812AE247"><enum>(i)</enum><text display-inline="yes-display-inline">less than 1.5 kilograms of CO2e per kilogram of hydrogen, and</text></clause><clause id="H0007F536515E4831B262826889CB02A4"><enum>(ii)</enum><text display-inline="yes-display-inline">not less than 0.45 kilograms of CO2e per kilogram of hydrogen,</text></clause><continuation-text continuation-text-level="subparagraph">the applicable percentage shall be 33.4 percent. </continuation-text></subparagraph><subparagraph id="HCB9DD44538AF407080B434A39005127D"><enum>(D)</enum><text display-inline="yes-display-inline">In the case of any qualified clean hydrogen which is produced through a process that results in a lifecycle greenhouse gas emissions rate of less than 0.45 kilograms of CO2e per kilogram of hydrogen, the applicable percentage shall be 100 percent.</text></subparagraph></paragraph><paragraph id="H29F3B71D8364437E9980ED85E0D60743"><enum>(3)</enum><header>Inflation adjustment</header><text>The $0.60 amount in paragraph (1) shall be adjusted by multiplying such amount by the inflation adjustment factor (as determined under section 45(e)(2), determined by substituting <quote>2022</quote> for <quote>1992</quote> in subparagraph (B) thereof) for the calendar year in which the qualified clean hydrogen is produced. If any amount as increased under the preceding sentence is not a multiple of 0.1 cent, such amount shall be rounded to the nearest multiple of 0.1 cent.</text></paragraph></subsection><subsection id="HA959A9A2B8554911BD9A5713B57FA253"><enum>(c)</enum><header>Definitions</header><text>For purposes of this section—</text><paragraph id="HC0430D4B6EED46C6B31CC854FECC9870"><enum>(1)</enum><header>Lifecycle greenhouse gas emissions</header><subparagraph id="H469F14607A9D4A6792C9D67E173BC9E5"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Subject to subparagraph (B), the term ‘lifecycle greenhouse gas emissions’ has the same meaning given such term under subparagraph (H) of section 211(o)(1) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(1)</external-xref>), as in effect on the date of enactment of this section.</text></subparagraph><subparagraph id="H89C37350492448BC84733667834EAEFF"><enum>(B)</enum><header>GREET Model</header><text display-inline="yes-display-inline">The term <quote>lifecycle greenhouse gas emissions</quote> shall only include emissions through the point of production (well-to-gate), as determined under the most recent Greenhouse gases, Regulated Emissions, and Energy use in Transportation model (commonly referred to as the <quote>GREET model</quote>) developed by Argonne National Laboratory, or a successor model (as determined by the Secretary).</text></subparagraph></paragraph><paragraph id="HC246CBB1163B49A2AA82B43DDCA9635A"><enum>(2)</enum><header>Qualified clean hydrogen</header><subparagraph id="HCF346431943F4313A5251B5908C5D8D7"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>qualified clean hydrogen</term> means hydrogen which is produced through a process that results in a lifecycle greenhouse gas emissions rate of not greater than 4 kilograms of CO2e per kilogram of hydrogen.</text></subparagraph><subparagraph id="H7C92C05151234F5B8E8A1669C37D9340"><enum>(B)</enum><header>Additional requirements</header><text>Such term shall not include any hydrogen unless—</text><clause id="id23BCFC6B26314F91BA24465D3862FCAE"><enum>(i)</enum><text>such hydrogen is produced—</text><subclause id="HF884EDA3E65843AAB01E802338B62C8B"><enum>(I)</enum><text display-inline="yes-display-inline">in the United States (as defined in section 638(1)) or a possession of the United States (as defined in section 638(2)),</text></subclause><subclause id="HBB19BC737BA04B2DBE56CD78E853B45F"><enum>(II)</enum><text>in the ordinary course of a trade or business of the taxpayer, and</text></subclause><subclause id="id0025CE0C0C00437FB435AC06F1182DED"><enum>(III)</enum><text>for sale or use, and</text></subclause></clause><clause id="H3B4B4441CF7B4D28AA4838A01CFA54C3"><enum>(ii)</enum><text>the production and sale or use of such hydrogen is verified by an unrelated party.</text></clause></subparagraph><subparagraph id="idF77E9EC6B84A43BC982FF4FFE06C2BE7"><enum>(C)</enum><header>Provisional emissions rate</header><text>In the case of any hydrogen for which a lifecycle greenhouse gas emissions rate has not been determined for purposes of this section, a taxpayer producing such hydrogen may file a petition with the Secretary for determination of the lifecycle greenhouse gas emissions rate with respect to such hydrogen.</text></subparagraph></paragraph><paragraph id="H6A13A0415B054A74B5E38099BCBBB3BA"><enum>(3)</enum><header>Qualified clean hydrogen production facility</header><text>The term <term>qualified clean hydrogen production facility</term> means a facility—</text><subparagraph commented="no" id="id36D7466E8FD54D759684B0E2F6BBF45D"><enum>(A)</enum><text>owned by the taxpayer,</text></subparagraph><subparagraph commented="no" id="id97F821EAEFF6460E8EC20BC15F16F51F"><enum>(B)</enum><text>which produces qualified clean hydrogen, and</text></subparagraph><subparagraph commented="no" id="id34B128EFA8434CA0922863BDD91A5947"><enum>(C)</enum><text>the construction of which begins before January 1, 2033.</text></subparagraph></paragraph></subsection><subsection id="HA64A30357DE04EE399B3BAAE5102CDD0"><enum>(d)</enum><header>Special rules</header><paragraph id="H079A2137C9EC428396767AC8388F826D"><enum>(1)</enum><header>Treatment of facilities owned by more than 1 taxpayer</header><text>Rules similar to the rules section 45(e)(3) shall apply for purposes of this section.</text></paragraph><paragraph id="H3ED9B565AEAC42068D91A8AAF592E02D"><enum>(2)</enum><header>Coordination with credit for carbon oxide sequestration</header><text display-inline="yes-display-inline">No credit shall be allowed under this section with respect to any qualified clean hydrogen produced at a facility which includes carbon capture equipment for which a credit is allowed to any taxpayer under section 45Q for the taxable year or any prior taxable year.</text></paragraph></subsection><subsection id="H4F661E0EBDF3445299E642E90F7530A9"><enum>(e)</enum><header>Increased credit amount for qualified clean hydrogen production facilities</header><paragraph id="H17DCA63BAB004B2B8DFC105924CD9D42"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any qualified clean hydrogen production facility which satisfies the requirements of paragraph (2), the amount of the credit determined under subsection (a) with respect to qualified clean hydrogen described in subsection (b)(2) shall be equal to such amount (determined without regard to this sentence) multiplied by 5.</text></paragraph><paragraph id="H0A178BCC7787463D8109225090D3B7B2"><enum>(2)</enum><header>Requirements</header><text display-inline="yes-display-inline">A facility meets the requirements of this paragraph if it is one of the following:</text><subparagraph id="HE574C173114F4244B51A24D0FAB49D80" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">A facility—</text><clause id="H047CF2B60F4B420D8CAF7AC8EFBC4513" commented="no"><enum>(i)</enum><text>the construction of which begins prior to the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (3)(A) and (4), and</text></clause><clause id="H704991893540450CAD349AFF6B693713" commented="no"><enum>(ii)</enum><text>which meets the requirements of paragraph (3)(A) with respect to alteration or repair of such facility which occurs after such date.</text></clause></subparagraph><subparagraph id="H352E6FF5C3904F959CD0A3310FA69799"><enum>(B)</enum><text>A facility which satisfies the requirements of paragraphs (3)(A) and (4).</text></subparagraph></paragraph><paragraph id="H0283A86AAF75459FACFF3E66F1787B8E"><enum>(3)</enum><header>Prevailing wage requirements</header><subparagraph id="H190F107403164AD8861A2F628D7755FF"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The requirements described in this subparagraph with respect to any qualified clean hydrogen production facility are that the taxpayer shall ensure that any laborers and mechanics employed by the taxpayer or any contractor or subcontractor in—</text><clause id="H1C2436AA03A94CC9A01053AC9ABE04E0"><enum>(i)</enum><text>the construction of such facility, and</text></clause><clause id="id3352A7C256D24590A247CF5FEBC39C6C"><enum>(ii)</enum><text>with respect to any taxable year, for any portion of such taxable year which is within the period described in subsection (a)(2), the alteration or repair of such facility, </text></clause><continuation-text continuation-text-level="subparagraph">shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality in which such facility is located as most recently determined by the Secretary of Labor, in accordance with subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code. For purposes of determining an increased credit amount under paragraph (1) for a taxable year, the requirement under clause (ii) of this subparagraph is applied to such taxable year in which the alteration or repair of qualified facility occurs. </continuation-text></subparagraph><subparagraph id="H5F386C5DA1944632B2A6CAC4316D2B2A"><enum>(B)</enum><header>Correction and penalty related to failure to satisfy wage requirements</header><text display-inline="yes-display-inline">Rules similar to the rules of section 45(b)(7)(B) shall apply.</text></subparagraph></paragraph><paragraph id="HA29BEE66CC7E46F78A2634C39D6057CC" commented="no" display-inline="no-display-inline"><enum>(4)</enum><header>Apprenticeship requirements</header><text display-inline="yes-display-inline">Rules similar to the rules of section 45(b)(8) shall apply. </text></paragraph><paragraph id="H80C33041BF124787B6642021F1E0155C"><enum>(5)</enum><header>Regulations and guidance</header><text display-inline="yes-display-inline">The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of administering the requirements of this subsection.</text></paragraph></subsection><subsection id="HCB1A3B5898714BDBB2BC6B939F4C27CB"><enum>(f)</enum><header>Regulations</header><text>Not later than 1 year after the date of enactment of this section, the Secretary shall issue regulations or other guidance to carry out the purposes of this section, including regulations or other guidance for determining lifecycle greenhouse gas emissions.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="HD08732D1BF2746FC829D105BA554DA72"><enum>(2)</enum><header>Credit reduced for tax-exempt bonds</header><text display-inline="yes-display-inline">Section 45V(d), as added by this section, is amended by adding at the end the following new paragraph: </text><quoted-block style="OLC" id="HD6C97984BA3C483C9D04981260F838F6" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="H49A2C81B69414A9CA9CE7E4063542E5B"><enum>(3)</enum><header>Credit reduced for tax-exempt bonds</header><text display-inline="yes-display-inline">Rules similar to the rule under section 45(b)(3) shall apply for purposes of this section.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id757590B5EF2D45DFBFFBB1531D145569"><enum>(3)</enum><header>Modification of existing facilities</header><text>Section 45V(d), as added and amended by the preceding provisions of this section, is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id800A6497C85E4FDE9B5F78802CF33E17" changed="added" reported-display-style="italic"><paragraph id="id5D19AA21EE4B46CCA3B51B669684A9F9"><enum>(4)</enum><header>Modification of existing facilities</header><text>For purposes of subsection (a)(1), in the case of any facility which—</text><subparagraph id="idDF1BD504E43841C1BCA4701275E563EC"><enum>(A)</enum><text>was originally placed in service before January 1, 2023, and, prior to the modification described in subparagraph (B), did not produce qualified clean hydrogen, and</text></subparagraph><subparagraph id="id8FA880FBD5F5427DA5398561555842A9"><enum>(B)</enum><text>after the date such facility was originally placed in service—</text><clause id="idA1B8A7BD466A4C7EBD35BB3D332C2789"><enum>(i)</enum><text>is modified to produce qualified clean hydrogen, and</text></clause><clause id="id9CD004F971204B4DA70FD2F24DE86FF3"><enum>(ii)</enum><text>amounts paid or incurred with respect to such modification are properly chargeable to capital account of the taxpayer,</text></clause></subparagraph><continuation-text continuation-text-level="paragraph">such facility shall be deemed to have been originally placed in service as of the date that the property required to complete the modification described in subparagraph (B) is placed in service.</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id31965ABDCD1D44248DE644789E3F66E7"><enum>(4)</enum><header>Conforming amendments</header><subparagraph id="H823EA86ABFAE4326A64986EC833E1AE3"><enum>(A)</enum><text>Section 38(b), as amended by the preceding provisions of this Act, is amended—</text><clause id="HDAD6D18EA750460392F506345A5FC6ED"><enum>(i)</enum><text>in paragraph (34), by striking <quote>plus</quote> at the end,</text></clause><clause id="HEAEAC604286B4ADF94ED62C603B24007"><enum>(ii)</enum><text>in paragraph (35), by striking the period at the end and inserting <quote>, plus</quote>, and</text></clause><clause id="H17C8BF1EFE8B43309E0B6F76BAD61913"><enum>(iii)</enum><text>by adding at the end the following new paragraph:</text><quoted-block display-inline="no-display-inline" id="HDE776F8AB37846B285EC8681BCD42BA5" style="OLC" changed="added" reported-display-style="italic"><paragraph id="H8C6A9942723F4299829854BD618BB388"><enum>(36)</enum><text>the clean hydrogen production credit determined under section 45V(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="H53C3F4AB19F04590B4392C418B168E69"><enum>(B)</enum><text>The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by adding at the end the following new item:</text><quoted-block display-inline="no-display-inline" id="H235E9386C08543618C998D32B22761BD" style="OLC" changed="added" reported-display-style="italic"><toc changed="added" reported-display-style="italic"><toc-entry bold="off" level="section">Sec. 45V. Credit for production of clean hydrogen.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="HC62E795550C8446FBEC9F42C66FFC25F"><enum>(5)</enum><header>Effective dates</header><subparagraph id="H16C2FC13AE5244F68C14F858455E4786"><enum>(A)</enum><header>In general</header><text>The amendments made by paragraphs (1) and (4) of this subsection shall apply to hydrogen produced after December 31, 2022.</text></subparagraph><subparagraph id="H1256083E92264ACFB643C5445A8D8DED"><enum>(B)</enum><header>Credit reduced for tax-exempt bonds</header><text>The amendment made by paragraph (2) shall apply to facilities the construction of which begins after the date of enactment of this Act.</text></subparagraph><subparagraph id="id869D5185DC0C426E85104EA58A20E17C"><enum>(C)</enum><header>Modification of existing facilities</header><text>The amendment made by paragraph (3) shall apply to modifications made after December 31, 2022.</text></subparagraph></paragraph></subsection><subsection id="H65F4E1C97D794B5980630155FD1E38A1"><enum>(b)</enum><header>Credit for electricity produced from renewable resources allowed if electricity is used to produce clean hydrogen</header><paragraph id="HDC1DB046604B4F66A6A7BB88FA55816C"><enum>(1)</enum><header>In general</header><text>Section 45(e), as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" id="HA29A1DFA2A0D42778E2A4937BC450702" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="H00189E862B3345ECB76DA5D902072A1F"><enum>(13)</enum><header>Special rule for electricity used at a qualified clean hydrogen production facility</header><text display-inline="yes-display-inline">Electricity produced by the taxpayer shall be treated as sold by such taxpayer to an unrelated person during the taxable year if—</text><subparagraph id="id137D7F262C8840408B61CD24632E418F"><enum>(A)</enum><text display-inline="yes-display-inline">such electricity is used during such taxable year by the taxpayer or a person related to the taxpayer at a qualified clean hydrogen production facility (as defined in section 45V(c)(3)) to produce qualified clean hydrogen (as defined in section 45V(c)(2)), and</text></subparagraph><subparagraph id="idC3B4FCF02A7640CD86343EFBF8658860"><enum>(B)</enum><text>such use and production is verified (in such form or manner as the Secretary may prescribe) by an unrelated third party.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H2213CB909EA646239B30C86DBD4E984E"><enum>(2)</enum><header>Similar rule for zero-emission nuclear power production credit</header><text>Subsection (c)(2) of <external-xref legal-doc="usc" parsable-cite="usc/26/45U">section 45U</external-xref>, as added by section 13105 of this Act, is amended by striking <quote>and (5)</quote> and inserting <quote>(5), and (13)</quote>.</text></paragraph><paragraph id="id2D3F670EEDAA47B0BAC0A3C4BA3EF699"><enum>(3)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to electricity produced after December 31, 2022.</text></paragraph></subsection><subsection id="HBBC60AE73B5F458D95B87CDF91CAD608"><enum>(c)</enum><header>Election to treat clean hydrogen production facilities as energy property</header><paragraph id="id564981607D604CFBB4844DDEE9800AA0"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Section 48(a), as amended by the preceding provisions of this Act, is amended—</text><subparagraph id="id721EA5DB010F4FC2ACAD7687D77F787A"><enum>(A)</enum><text display-inline="yes-display-inline">by redesignating paragraph (15) as paragraph (16), and</text></subparagraph><subparagraph id="id84E55357E50D4FBCB36CA92F422FF8DA"><enum>(B)</enum><text>by inserting after paragraph (14) the following new paragraph: </text><quoted-block style="OLC" id="H18B8BD83F7144635B89046A109AE503D" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="H64FEF77C7AC34ED9814A242C1A3675DE"><enum>(15)</enum><header>Election to treat clean hydrogen production facilities as energy property</header><subparagraph id="H66ACCD2A212349B298D014312D2DF2E3"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any qualified property (as defined in paragraph (5)(D)) which is part of a specified clean hydrogen production facility—</text><clause id="H8C8C37ECF0A54C59B8776868CFB6BC7C"><enum>(i)</enum><text>such property shall be treated as energy property for purposes of this section, and</text></clause><clause id="H0E09447491EC476EA987AD901B5BAF9B"><enum>(ii)</enum><text>the energy percentage with respect to such property is—</text><subclause id="H9C9D0EAC591F48DBB054D39E69E14174"><enum>(I)</enum><text display-inline="yes-display-inline">in the case of a facility which is designed and reasonably expected to produce qualified clean hydrogen which is described in a subparagraph (A) of section 45V(b)(2), 1.2 percent,</text></subclause><subclause id="H71577984896946D7B8634F6ACEE79E85"><enum>(II)</enum><text>in the case of a facility which is designed and reasonably expected to produce qualified clean hydrogen which is described in a subparagraph (B) of such section, 1.5 percent, </text></subclause><subclause id="H9CEE50A27F5B4BDC984B3E309F118B5F"><enum>(III)</enum><text>in the case of a facility which is designed and reasonably expected to produce qualified clean hydrogen which is described in a subparagraph (C) of such section, 2 percent, and </text></subclause><subclause id="HB91BE632DF764C1AA460C74FE0069B70"><enum>(IV)</enum><text display-inline="yes-display-inline">in the case of a facility which is designed and reasonably expected to produce qualified clean hydrogen which is described in subparagraph (D) of such section, 6 percent.</text></subclause></clause></subparagraph><subparagraph id="HA7C5F5F495034540B69E1CB04A6A81E8"><enum>(B)</enum><header>Denial of production credit</header><text display-inline="yes-display-inline">No credit shall be allowed under section 45V or section 45Q for any taxable year with respect to any specified clean hydrogen production facility or any carbon capture equipment included at such facility.</text></subparagraph><subparagraph id="H6CED9BE97DF3470686A3DDD23CD04586"><enum>(C)</enum><header>Specified clean hydrogen production facility</header><text>For purposes of this paragraph, the term <quote>specified clean hydrogen production facility</quote> means any qualified clean hydrogen production facility (as defined in section 45V(c)(3))—</text><clause id="HD37099D0A92A4B27B40972BAC900C8E2"><enum>(i)</enum><text>which is placed in service after December 31, 2022,</text></clause><clause id="H68E09F8831C24355B3370F37B9650A7C"><enum>(ii)</enum><text>with respect to which—</text><subclause id="H647C046AB0994FEFA60CBA97DA642C12"><enum>(I)</enum><text>no credit has been allowed under section 45V or 45Q, and</text></subclause><subclause id="H8EB9CBB44F1F4E3AAC8AD187A613953E"><enum>(II)</enum><text>the taxpayer makes an irrevocable election to have this paragraph apply, and</text></subclause></clause><clause id="idD4E1B07126F74E7ABEC77A6B83497FD0"><enum>(iii)</enum><text>for which an unrelated third party has verified (in such form or manner as the Secretary may prescribe) that such facility produces hydrogen through a process which results in lifecycle greenhouse gas emissions which are consistent with the hydrogen that such facility was designed and expected to produce under subparagraph (A)(ii).</text></clause></subparagraph><subparagraph id="HB43D63A310064D1795B0E2CAF0FCE764"><enum>(D)</enum><header>Qualified clean hydrogen</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term <quote>qualified clean hydrogen</quote> has the meaning given such term by section 45V(c)(2).</text></subparagraph><subparagraph id="HD691A01F1A99475398A8B382C45A14AF"><enum>(E)</enum><header>Regulations</header><text>The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this section, including regulations or other guidance which recaptures so much of any credit allowed under this section as exceeds the amount of the credit which would have been allowed if the expected production were consistent with the actual verified production (or all of the credit so allowed in the absence of such verification).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="HB89D6710C6164B269F9F9617F0E89627"><enum>(2)</enum><header>Conforming amendment</header><text>Paragraph (9)(A)(i) of section 48(a), as added by <external-xref legal-doc="usc" parsable-cite="usc/26/13102">section 13102,</external-xref> is amended by inserting <quote>and paragraph (15)</quote> after <quote>paragraphs (1) through (8)</quote>.</text></paragraph><paragraph id="id6113A7EA979B4BFC80A23E904223DF07"><enum>(3)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this subsection shall apply to property placed in service after December 31, 2022, and, for any property the construction of which begins prior to January 1, 2023, only to the extent of the basis thereof attributable to the construction, reconstruction, or erection after December 31, 2022.</text></paragraph></subsection><subsection id="H3E9AF9DED14D48C0B258B2C7EBE31D8A"><enum>(d)</enum><header>Termination of excise tax credit for hydrogen</header><paragraph id="H75CAAF8BCA1546DAB24F69F303248739"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6426">Section 6426(d)(2)</external-xref> is amended by striking subparagraph (D) and by redesignating subparagraphs (E), (F), and (G) as subparagraphs (D), (E), and (F), respectively.</text></paragraph><paragraph id="H9B975B83EBAD494986ED05954337077D"><enum>(2)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6426">Section 6426(e)(2)</external-xref> is amended by striking <quote>(F)</quote> and inserting <quote>(E)</quote>.</text></paragraph><paragraph id="H64446645527144019485AD244579A2A2"><enum>(3)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to fuel sold or used after December 31, 2022. </text></paragraph></subsection></section></part><part id="HA5B515A982964F7A9348648A8B855AB2"><enum>3<?LEXA-Enum 3?></enum><header>Clean energy and efficiency incentives for individuals</header><section id="H464AEC039006468FA8E301BAE955859B"><enum>13301.</enum><header>Extension, increase, and modifications of nonbusiness energy property credit</header><subsection id="HE3C6477B1EF7475FBFEB5D46EFFB1F00"><enum>(a)</enum><header>Extension of credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C(g)(2)</external-xref> is amended by striking <quote>December 31, 2021</quote> and inserting <quote>December 31, 2032</quote>.</text></subsection><subsection id="H0B4892770CEB449FBBAB8FABFED6AD3F"><enum>(b)</enum><header>Allowance of credit</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C(a)</external-xref> is amended to read as follows: </text><quoted-block style="OLC" id="H995D26AE301F4F59BAFF7ACB5C467466" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subsection id="HAEAA19E1308C451787F1983977FA530F"><enum>(a)</enum><header>Allowance of credit</header><text display-inline="yes-display-inline">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 30 percent of the sum of—</text><paragraph id="H2783E046C24048F88014327A0B3444DE"><enum>(1)</enum><text display-inline="yes-display-inline">the amount paid or incurred by the taxpayer for qualified energy efficiency improvements installed during such taxable year, and</text></paragraph><paragraph id="H34CB444E787D4E02834E4AD47C8EE0C0"><enum>(2)</enum><text display-inline="yes-display-inline">the amount of the residential energy property expenditures paid or incurred by the taxpayer during such taxable year.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H19FA5A87DEE54F0BA39B4C138F4C4C4A"><enum>(c)</enum><header>Application of annual limitation in lieu of lifetime limitation</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C(b)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" id="H9993E436A21D4038A4D514B9041805CC" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subsection id="H111D9BB0E2F34FB6AED37AE9A623C276"><enum>(b)</enum><header>Limitations</header><paragraph id="HCA543DFD61644689ADCD47DFC93C20E4"><enum>(1)</enum><header>In general</header><text>The credit allowed under this section with respect to any taxpayer for any taxable year shall not exceed $1,200.</text></paragraph><paragraph id="H630BE0EAA0ED4F058861B7B0E661B80D"><enum>(2)</enum><header>Energy property</header><text display-inline="yes-display-inline">The credit allowed under this section by reason of subsection (a)(2) with respect to any taxpayer for any taxable year shall not exceed, with respect to any item of qualified energy property, $600.</text></paragraph><paragraph commented="no" id="H638E2E351AB244F5AB0207987F13ED49" display-inline="no-display-inline"><enum>(3)</enum><header>Windows</header><text display-inline="yes-display-inline">The credit allowed under this section by reason of subsection (a)(1) with respect to any taxpayer for any taxable year shall not exceed, in the aggregate with respect to all exterior windows and skylights, $600.</text></paragraph><paragraph id="H345359E2ECCE42309BA4F6B9F7E5E012"><enum>(4)</enum><header>Doors</header><text>The credit allowed under this section by reason of subsection (a)(1) with respect to any taxpayer for any taxable year shall not exceed—</text><subparagraph id="H7A16348B815D4D5BAB93204B922ECA3F"><enum>(A)</enum><text>$250 in the case of any exterior door, and</text></subparagraph><subparagraph id="HE0815CA255AD498B91AD92B3E062DB1B"><enum>(B)</enum><text>$500 in the aggregate with respect to all exterior doors.</text></subparagraph></paragraph><paragraph id="H6C66007C35524AF29828B6D0C4249044"><enum>(5)</enum><header>Heat pump and heat pump water heaters; biomass stoves and boilers</header><text>Notwithstanding paragraphs (1) and (2), the credit allowed under this section by reason of subsection (a)(2) with respect to any taxpayer for any taxable year shall not, in the aggregate, exceed $2,000 with respect to amounts paid or incurred for property described in clauses (i) and (ii) of subsection (d)(2)(A) and in subsection (d)(2)(B). </text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H3C2519C4E7A3454EB9216964127A7940"><enum>(d)</enum><header>Modifications related to qualified energy efficiency improvements</header><paragraph commented="no" id="idB6FDAFCE710A4E0688424AA903FADF1C"><enum>(1)</enum><header>Standards for energy efficient building envelope components</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C(c)(2)</external-xref> is amended by striking <quote>meets—</quote> and all that follows through the period at the end and inserting the following:</text><quoted-block style="OLC" id="H1005CA90443244B2B2D5D3BAC521CC58" display-inline="yes-display-inline" changed="added" reported-display-style="italic"><text>meets—</text><subparagraph id="HB2B270475B0148E195146B384ABA8C87"><enum>(A)</enum><text display-inline="yes-display-inline">in the case of an exterior window or skylight, Energy Star most efficient certification requirements,</text></subparagraph><subparagraph id="id2C245419692446C1815CAC1EB8D9F138"><enum>(B)</enum><text display-inline="yes-display-inline">in the case of an exterior door, applicable Energy Star requirements, and</text></subparagraph><subparagraph id="H0AF1114879684B2BA74E9FF8F2A0136A"><enum>(C)</enum><text display-inline="yes-display-inline">in the case of any other component, the prescriptive criteria for such component established by the most recent International Energy Conservation Code standard in effect as of the beginning of the calendar year which is 2 years prior to the calendar year in which such component is placed in service.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H05C5C0B0B9F9454B8AC2D024044CEB30" commented="no" display-inline="no-display-inline"><enum>(2)</enum><header>Roofs not treated as building envelope components</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C(c)(3)</external-xref> is amended by adding <quote>and</quote> at the end of subparagraph (B), by striking <quote>, and</quote> at the end of subparagraph (C) and inserting a period, and by striking subparagraph (D).</text></paragraph><paragraph id="H89653757949746B187E112EF888954A0"><enum>(3)</enum><header>Air sealing insulation added to definition of building envelope component</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C(c)(3)(A)</external-xref> is amended by inserting <quote>, including air sealing material or system,</quote> after <quote>material or system</quote>.</text></paragraph></subsection><subsection id="H7B82EE79E65C4FEBB88E56047CCCA304"><enum>(e)</enum><header>Modification of residential energy property expenditures</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C(d)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" id="H845116C487904950ACE90B05E1FE0E78" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subsection id="H40C1D9CD0CB1424BA6B7A40049864C51"><enum>(d)</enum><header>Residential energy property expenditures</header><text display-inline="yes-display-inline">For purposes of this section—</text><paragraph id="H2427E9D3F42B4CA6BF1E4D00D9BB188C"><enum>(1)</enum><header>In general</header><text>The term <quote>residential energy property expenditures</quote> means expenditures made by the taxpayer for qualified energy property which is—</text><subparagraph id="HDA0A701427824CEA94AF29B87C4912FB"><enum>(A)</enum><text>installed on or in connection with a dwelling unit located in the United States and used as a residence by the taxpayer, and</text></subparagraph><subparagraph id="H9DB2D45EC5EF42B8800E2426FB9089CF"><enum>(B)</enum><text>originally placed in service by the taxpayer.</text></subparagraph><continuation-text continuation-text-level="paragraph">Such term includes expenditures for labor costs properly allocable to the onsite preparation, assembly, or original installation of the property. </continuation-text></paragraph><paragraph id="H7072E07BD3814ABDB8AAC8F2B2EF1025"><enum>(2)</enum><header>Qualified energy property</header><text>The term <quote>qualified energy property</quote> means any of the following:</text><subparagraph id="H2592DD1FA35647C3AD44B30750812E27"><enum>(A)</enum><text>Any of the following which meet or exceed the highest efficiency tier (not including any advanced tier) established by the Consortium for Energy Efficiency which is in effect as of the beginning of the calendar year in which the property is placed in service:</text><clause id="H3355050101B548BD8610E858A6084430"><enum>(i)</enum><text>An electric or natural gas heat pump water heater.</text></clause><clause id="H2E1BEB6796794A67B1AC0622C84863C2"><enum>(ii)</enum><text>An electric or natural gas heat pump.</text></clause><clause id="HC0DAB87682C9449C80C0F7D0FB106470"><enum>(iii)</enum><text>A central air conditioner.</text></clause><clause id="H4621C03FD26C419A8746C818A6525CDC"><enum>(iv)</enum><text>A natural gas, propane, or oil water heater.</text></clause><clause id="HD93C83C86CEC4FE384FA7B4B35BDFEDC"><enum>(v)</enum><text>A natural gas, propane, or oil furnace or hot water boiler.</text></clause></subparagraph><subparagraph id="H94E1017D972048B1A14A3D089D55E6CF"><enum>(B)</enum><text>A biomass stove or boiler which—</text><clause id="HC43B4BDB807246A48E74F3361BD8D498"><enum>(i)</enum><text display-inline="yes-display-inline">uses the burning of biomass fuel to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit, and</text></clause><clause id="H622AFDE673DF40EB9246211F4FA2804A"><enum>(ii)</enum><text>has a thermal efficiency rating of at least 75 percent (measured by the higher heating value of the fuel).</text></clause></subparagraph><subparagraph id="H732A8163245D465C86D0B75E4B172AF1"><enum>(C)</enum><text>Any oil furnace or hot water boiler which—</text><clause id="HAE242349E5DF46D0A3496F0CDD11B262"><enum>(i)</enum><text display-inline="yes-display-inline">is placed in service after December 31, 2022, and before January 1, 2027, and—</text><subclause id="id9808805A66104534A774B09823CF179C"><enum>(I)</enum><text display-inline="yes-display-inline">meets or exceeds 2021 Energy Star efficiency criteria, and </text></subclause><subclause id="id3E8C53D598B74B8DAB9D301291B28D6E"><enum>(II)</enum><text display-inline="yes-display-inline">is rated by the manufacturer for use with fuel blends at least 20 percent of the volume of which consists of an eligible fuel, or</text></subclause></clause><clause id="H36A7A4083AC144DDB3B1633ED1E91574"><enum>(ii)</enum><text display-inline="yes-display-inline">is placed in service after December 31, 2026, and—</text><subclause id="id50458BFECA444DE7B59222DF0F4D2435"><enum>(I)</enum><text display-inline="yes-display-inline">achieves an annual fuel utilization efficiency rate of not less than 90, and </text></subclause><subclause id="id381BBE808EE944E989673CD6F2615ED4"><enum>(II)</enum><text display-inline="yes-display-inline">is rated by the manufacturer for use with fuel blends at least 50 percent of the volume of which consists of an eligible fuel.</text></subclause></clause></subparagraph><subparagraph commented="no" id="id72B5F3B967FE475F9DC111B461228078"><enum>(D)</enum><text>Any improvement to, or replacement of, a panelboard, sub-panelboard, branch circuits, or feeders which—</text><clause commented="no" id="id12CADDFD6DA24A19B8CC5E195A76D48C"><enum>(i)</enum><text>is installed in a manner consistent with the National Electric Code,</text></clause><clause commented="no" id="idC748AABDA5384F3091154B405F062CB8"><enum>(ii)</enum><text>has a load capacity of not less than 200 amps,</text></clause><clause commented="no" id="idE29340556E67490F8D656D7EEBC504E9"><enum>(iii)</enum><text>is installed in conjunction with—</text><subclause commented="no" id="id54FA4BA87F444C33808E870BD5B15D08"><enum>(I)</enum><text>any qualified energy efficiency improvements, or</text></subclause><subclause commented="no" id="id4393562DCAE04C46AA7BE35E7BC6484C"><enum>(II)</enum><text>any qualified energy property described in subparagraphs (A) through (C) for which a credit is allowed under this section for expenditures with respect to such property, and</text></subclause></clause><clause commented="no" id="id6152DCD734F747189F5985FEC7484D94"><enum>(iv)</enum><text>enables the installation and use of any property described in subclause (I) or (II) of clause (iii).</text></clause></subparagraph></paragraph><paragraph id="H4ACFD19D2238460397E4C55FB9970B1C"><enum>(3)</enum><header>Eligible fuel</header><text display-inline="yes-display-inline">For purposes of paragraph (2), the term <quote>eligible fuel</quote> means—</text><subparagraph id="id1C4AE6CAEFBE4527874F54CBB3DBB06E"><enum>(A)</enum><text display-inline="yes-display-inline">biodiesel and renewable diesel (within the meaning of section 40A), and </text></subparagraph><subparagraph id="id722D867010FA47E4868B33E49ACD959D"><enum>(B)</enum><text display-inline="yes-display-inline">second generation biofuel (within the meaning of section 40).</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HB6A934CA786640E5B5BE42FDA343E861"><enum>(f)</enum><header>Home energy audits</header><paragraph id="H0319ECBCACE84DEF9FA4A7F17C449FE7"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Section 25C(a), as amended by subsection (b), is amended by striking <quote>and</quote> at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph: </text><quoted-block style="OLC" id="HABD465D6762841B4AD5EB94AF0BBB0E5" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="HDDC830439ACE46ACB415BF64EAF1DF44"><enum>(3)</enum><text display-inline="yes-display-inline">the amount paid or incurred by the taxpayer during the taxable year for home energy audits.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H7679812BF3564B7288D4E5C997D9AE1D"><enum>(2)</enum><header>Limitation</header><text>Section 25C(b), as amended by subsection (c), is amended adding at the end the following new paragraph:</text><quoted-block style="OLC" id="HEBBDFFE940C941F6987916D47ACDC37A" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="HAB8CDE1D1FB145ECAEF704006E56EDA0"><enum>(6)</enum><header>Home energy audits</header><subparagraph id="HC2C6683B5CD64842BF1EE9E6C6D83981"><enum>(A)</enum><header>Dollar limitation</header><text>The amount of the credit allowed under this section by reason of subsection (a)(3) shall not exceed $150.</text></subparagraph><subparagraph id="H287C532468114269BA5C9453CB4F5FCD"><enum>(B)</enum><header>Substantiation requirement</header><text>No credit shall be allowed under this section by reason of subsection (a)(3) unless the taxpayer includes with the taxpayer’s return of tax such information or documentation as the Secretary may require.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H5C604E8A9AA345AB91D2A0A69E260B72"><enum>(3)</enum><header>Home energy audits</header><subparagraph id="HDD8B1B30A5EB4536BAF862E3A31BF005"><enum>(A)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C</external-xref> is amended by redesignating subsections (e), (f), and (g), as subsections (f), (g), and (h), respectively, and by inserting after subsection (d) the following new subsection:</text><quoted-block style="OLC" id="HA4B0DC588F344F1CAD03B4E610C2A611" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subsection id="H78139167EDE14D9EBA80304C088EF965"><enum>(e)</enum><header>Home energy audits</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>home energy audit</term> means an inspection and written report with respect to a dwelling unit located in the United States and owned or used by the taxpayer as the taxpayer’s principal residence (within the meaning of section 121) which—</text><paragraph id="HEC0DC359F03440C7AAC56D50BE59AF1F"><enum>(1)</enum><text>identifies the most significant and cost-effective energy efficiency improvements with respect to such dwelling unit, including an estimate of the energy and cost savings with respect to each such improvement, and</text></paragraph><paragraph id="HE136E0FD05AF457BB2D8AA788C4E2365"><enum>(2)</enum><text>is conducted and prepared by a home energy auditor that meets the certification or other requirements specified by the Secretary in regulations or other guidance (as prescribed by the Secretary not later than 365 days after the date of the enactment of this subsection).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph id="HE33F0330FC854926B1B0A5145CFE3A62"><enum>(B)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/1016">Section 1016(a)(33)</external-xref> is amended by striking <quote>section 25C(f)</quote> and inserting <quote>section 25C(g)</quote>.</text></subparagraph></paragraph><paragraph id="HE6AFD27E244E40D98BBAC3DE4873A532"><enum>(4)</enum><header>Lack of substantiation treated as mathematical or clerical error</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6213">Section 6213(g)(2)</external-xref> is amended—</text><subparagraph id="H35ADEA5D74854E29A60DD7F18195A9FA"><enum>(A)</enum><text>in subparagraph (P), by striking <quote>and</quote> at the end,</text></subparagraph><subparagraph id="HECC3AECB670141068CC8591F19EA6CE2"><enum>(B)</enum><text>in subparagraph (Q), by striking the period at the end and inserting <quote>, and</quote>, and</text></subparagraph><subparagraph id="H7D4C7094D5364FACB94FCEB09B8F83EE"><enum>(C)</enum><text>by inserting after subparagraph (Q) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H5494854D5EC24A5BB65A82AE88AE43E6" changed="added" reported-display-style="italic"><subparagraph id="H1E1A31BB39224E37A32669192334114F"><enum>(R)</enum><text>an omission of information or documentation required under section 25C(b)(6)(B) (relating to home energy audits) to be included on a return.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="H27863CFC13A742BE972C2F818CFAF678"><enum>(g)</enum><header>Identification number requirement</header><paragraph id="H4B8D3D05EAC642518AD850D3CFF18407"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C</external-xref>, as amended by this section, is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection:</text><quoted-block style="OLC" id="HA2499DA066694B1DB669036EFA06EE41" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subsection id="HE78B365891374E27A71DF2478B5538B4"><enum>(h)</enum><header>Product identification number requirement</header><paragraph id="H059995FCC53D4B28808D5953882749EE"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">No credit shall be allowed under subsection (a) with respect to any item of specified property placed in service after December 31, 2024, unless—</text><subparagraph id="H44E0DBA06E814B1CB73608E0579D6756"><enum>(A)</enum><text>such item is produced by a qualified manufacturer, and</text></subparagraph><subparagraph id="H91AFCD4738BA4FD49D752FA43B096FFB"><enum>(B)</enum><text>the taxpayer includes the qualified product identification number of such item on the return of tax for the taxable year.</text></subparagraph></paragraph><paragraph id="HCF7A2D17CFA14F139F00A03EE2015A17"><enum>(2)</enum><header>Qualified product identification number</header><text>For purposes of this section, the term <quote>qualified product identification number</quote> means, with respect to any item of specified property, the product identification number assigned to such item by the qualified manufacturer pursuant to the methodology referred to in paragraph (3).</text></paragraph><paragraph id="H82CC80DC3F784CD080704D28911ADC6F"><enum>(3)</enum><header>Qualified manufacturer</header><text>For purposes of this section, the term <quote>qualified manufacturer</quote> means any manufacturer of specified property which enters into an agreement with the Secretary which provides that such manufacturer will—</text><subparagraph id="H607A44D8759B488284B9254C48C230AF"><enum>(A)</enum><text>assign a product identification number to each item of specified property produced by such manufacturer utilizing a methodology that will ensure that such number (including any alphanumeric) is unique to each such item (by utilizing numbers or letters which are unique to such manufacturer or by such other method as the Secretary may provide), </text></subparagraph><subparagraph id="HD1C3DC8567BD4C1893DB035FD9CDCABE"><enum>(B)</enum><text>label such item with such number in such manner as the Secretary may provide, and</text></subparagraph><subparagraph id="H4DC62D6C37B14FB69092013955CCE3B9"><enum>(C)</enum><text>make periodic written reports to the Secretary (at such times and in such manner as the Secretary may provide) of the product identification numbers so assigned and including such information as the Secretary may require with respect to the item of specified property to which such number was so assigned.</text></subparagraph></paragraph><paragraph id="H57A21EDE256D4EF3A53CE004C8C5ECBC"><enum>(4)</enum><header>Specified property</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>specified property</quote> means any qualified energy property and any property described in subparagraph (B) or (C) of subsection (c)(3). </text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="HFD29E75E3E09421EB66B5092339CE24F"><enum>(2)</enum><header>Omission of correct product identification number treated as mathematical or clerical error</header><text>Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended—</text><subparagraph id="HBBBB39E4AA7E42CDA120E3F93629BE01"><enum>(A)</enum><text>in subparagraph (Q), by striking <quote>and</quote> at the end,</text></subparagraph><subparagraph id="H469884EFE1784052A2849B2529989128"><enum>(B)</enum><text>in subparagraph (R), by striking the period at the end and inserting <quote>, and</quote>, and</text></subparagraph><subparagraph id="H3143AEEC8641422ABFBEB7745EFB7EE7"><enum>(C)</enum><text>by inserting after subparagraph (R) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HE8531F8EF74D4DBEA6D61F052865B480" changed="added" reported-display-style="italic"><subparagraph id="H73F9EAA6932D43C788C9DB2D5A46FCBC"><enum>(S)</enum><text>an omission of a correct product identification number required under section 25C(h) (relating to credit for nonbusiness energy property) to be included on a return.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="H4D575EB5B7004EB48260924FD4A64F55"><enum>(h)</enum><header>Energy Efficient Home Improvement Credit</header><paragraph id="id11F1931787874C28A74D94D321A7EFAD"><enum>(1)</enum><header>In general</header><text>The heading for <external-xref legal-doc="usc" parsable-cite="usc/26/25C">section 25C</external-xref> is amended by striking <quote><header-in-text style="tax" level="section">Nonbusiness energy property</header-in-text></quote> and inserting <quote><header-in-text style="tax" level="section">Energy efficient home improvement credit</header-in-text></quote>.</text></paragraph><paragraph id="id5EA8DC78950B45B1A2BCB8B3A073BE11"><enum>(2)</enum><header>Clerical amendment</header><text>The table of sections for subpart A of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by striking the item relating to section 25C and inserting after the item relating to section 25B the following item:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id0320B4C89DDF41DD8396AA184A16E8BC" changed="added" reported-display-style="italic"><toc changed="added" reported-display-style="italic"><toc-entry level="section" bold="off">Sec. 25C. Energy efficient home improvement credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="idCD7655C588734E5CBE9E56C0090686D0"><enum>(i)</enum><header>Effective dates</header><paragraph id="H558B7F5234264DE0AE301F886A02C3F1"><enum>(1)</enum><header>In general</header><text>Except as otherwise provided by this subsection, the amendments made by this section shall apply to property placed in service after December 31, 2022.</text></paragraph><paragraph id="HBB37F74A966649F58158752F3464181D"><enum>(2)</enum><header>Extension of credit</header><text>The amendments made by subsection (a) shall apply to property placed in service after December 31, 2021.</text></paragraph><paragraph id="H1405BBD1AF204EA186D59C07DFD6DD80"><enum>(3)</enum><header>Identification number requirement</header><text>The amendments made by subsection (g) shall apply to property placed in service after December 31, 2024.</text></paragraph></subsection></section><section id="HB91DD6B3B6C0482E93A44655CB87E436"><enum>13302.</enum><header>Residential clean energy credit</header><subsection id="H00602440A9234BC496EC165F2681AA05"><enum>(a)</enum><header>Extension of credit</header><paragraph id="H3C5BB54112B84A9294C6514327E548A3"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25D">Section 25D(h)</external-xref> is amended by striking <quote>December 31, 2023</quote> and inserting <quote>December 31, 2034</quote>.</text></paragraph><paragraph id="HF6E7CDAA86F34AC486996A5B2F06AA22"><enum>(2)</enum><header>Application of phaseout</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25D">Section 25D(g)</external-xref> is amended—</text><subparagraph id="H98E264BC6AB846BA96C0BF0EF4286EAC"><enum>(A)</enum><text>in paragraph (2), by striking <quote>before January 1, 2023, 26 percent, and</quote> and inserting <quote>before January 1, 2022, 26 percent,</quote>, and</text></subparagraph><subparagraph id="HF99C742F7C3E4B23932C2A67C3850447"><enum>(B)</enum><text>by striking paragraph (3) and by inserting after paragraph (2) the following new paragraphs:</text><quoted-block style="OLC" id="H4681092EAE934FE7AEB843306178BA70" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="HD9C6A30C5A93499188D97469693764F8"><enum>(3)</enum><text display-inline="yes-display-inline">in the case of property placed in service after December 31, 2021, and before January 1, 2033, 30 percent,</text></paragraph><paragraph id="HBAE9CF97BF9846D482345472BB00A8C7"><enum>(4)</enum><text display-inline="yes-display-inline">in the case of property placed in service after December 31, 2032, and before January 1, 2034, 26 percent, and</text></paragraph><paragraph id="id43D9F8E3BCAC48099A9C82C4743483D4"><enum>(5)</enum><text display-inline="yes-display-inline">in the case of property placed in service after December 31, 2033, and before January 1, 2035, 22 percent.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="HA1227AB66DC04A9A904D126FAB2E10F5"><enum>(b)</enum><header>Residential clean energy credit for battery storage technology; certain expenditures disallowed</header><paragraph id="HAEC85FE290A44C79BD19CFE9B92E9EA2"><enum>(1)</enum><header>Allowance of credit</header><text display-inline="yes-display-inline">Paragraph (6) of <external-xref legal-doc="usc" parsable-cite="usc/26/25D">section 25D(a)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" id="H0533CDB555E54A1BAECC5C26D73EFB9A" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="H26DCE4747FFC41148F907AF271239E9B"><enum>(6)</enum><text>the qualified battery storage technology expenditures,</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H5B2F24E5D7154911BDC3EFC2405737C9" commented="no"><enum>(2)</enum><header>Definition of qualified battery storage technology expenditure</header><text>Paragraph (6) of <external-xref legal-doc="usc" parsable-cite="usc/26/25D">section 25D(d)</external-xref> is amended to read as follows:</text><quoted-block act-name="" id="H38730B15950A4112A0F36A52FC28D1EE" style="OLC" changed="added" reported-display-style="italic"><paragraph id="HB9BDC842F25147EF926E4CC8B9D6C2EF" commented="no"><enum>(6)</enum><header>Qualified battery storage technology expenditure</header><text display-inline="yes-display-inline">The term <term>qualified battery storage technology expenditure</term> means an expenditure for battery storage technology which—</text><subparagraph id="H46536EC57D5E4B5B9976D923BC127536" commented="no"><enum>(A)</enum><text>is installed in connection with a dwelling unit located in the United States and used as a residence by the taxpayer, and </text></subparagraph><subparagraph id="H2453479DA1AC44389916F92B2045E2F3" commented="no"><enum>(B)</enum><text>has a capacity of not less than 3 kilowatt hours.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="HE417A0C4727548FCADE7E700BE2F13B2"><enum>(c)</enum><header>Conforming amendments</header><paragraph id="idC7F5D6F1F331400F8965316D0B8708F0"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/25D">Section 25D(d)(3)</external-xref> is amended by inserting <quote>, without regard to subparagraph (D) thereof</quote> after <quote>section 48(c)(1)</quote>.</text></paragraph><paragraph id="id98A1DA5D66CD454D8F68EE2526D720CC"><enum>(2)</enum><text>The heading for <external-xref legal-doc="usc" parsable-cite="usc/26/25D">section 25D</external-xref> is amended by striking <quote><header-in-text style="tax" level="section">energy efficient property</header-in-text></quote> and inserting <quote><header-in-text style="tax" level="section">clean energy credit</header-in-text></quote>.</text></paragraph><paragraph id="idF7596703D9B24C46956227ABF644019E"><enum>(3)</enum><text>The table of sections for subpart A of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by striking the item relating to section 25D and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id9EE30727CDBC47C9A0A98ED4B8FE273F" changed="added" reported-display-style="italic"><toc changed="added" reported-display-style="italic"><toc-entry level="section" bold="off">Sec. 25D. Residential clean energy credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H710ACF76EFFA43A49A9C068B84ED1E6F" commented="no" display-inline="no-display-inline"><enum>(d)</enum><header>Effective dates</header><paragraph id="HF4313A5AB7F349B280D6F082156C53CA"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), the amendments made by this section shall apply to expenditures made after December 31, 2021.</text></paragraph><paragraph id="id48A2C71F33844445AC07DECE6F57250F"><enum>(2)</enum><header>Residential clean energy credit for battery storage technology; certain expenditures disallowed</header><text>The amendments made by subsection (b) shall apply to expenditures made after December 31, 2022.</text></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HA321D917154F4A438CFF94FB8838709C" section-type="subsequent-section"><enum>13303.</enum><header>Energy efficient commercial buildings deduction</header><subsection id="H5F0ED30916794F49AEFE0AF7660A76BA"><enum>(a)</enum><header>In general</header><paragraph commented="no" id="id9F4B8305265D4C0BAE368E1D2FF7BF35"><enum>(1)</enum><header>Maximum amount of deduction</header><text>Subsection (b) of <external-xref legal-doc="usc" parsable-cite="usc/26/179D">section 179D</external-xref> is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id2C76B20472794EFDBD4130BB3ABA37AA" changed="added" reported-display-style="italic"><subsection commented="no" id="id70EF5B2CECD14A29913FB4FB30A34E88"><enum>(b)</enum><header>Maximum amount of deduction</header><paragraph id="idE3BEBAED8A1E4FE1A4724AA368431B8E" commented="no"><enum>(1)</enum><header>In general</header><text>The deduction under subsection (a) with respect to any building for any taxable year shall not exceed the excess (if any) of—</text><subparagraph id="id94FFB9978E604696B53C5D779B2145D8" commented="no"><enum>(A)</enum><text>the product of—</text><clause id="idE122E7BC2D8343BB849E22DDAB5680B5" commented="no"><enum>(i)</enum><text>the applicable dollar value, and</text></clause><clause id="idCD1DE333425A45A68D9DA349358EBB5A" commented="no"><enum>(ii)</enum><text>the square footage of the building, over</text></clause></subparagraph><subparagraph id="id57434DFA76E44A3DADDFA1E36522D641" commented="no"><enum>(B)</enum><text>the aggregate amount of the deductions under subsections (a) and (f) with respect to the building for the 3 taxable years immediately preceding such taxable year (or, in the case of any such deduction allowable to a person other than the taxpayer, for any taxable year ending during the 4-taxable-year period ending with such taxable year).</text></subparagraph></paragraph><paragraph id="idF8176DD729EE4A408AE1EA977C665FF7" commented="no"><enum>(2)</enum><header>Applicable dollar value</header><text>For purposes of paragraph (1)(A)(i), the applicable dollar value shall be an amount equal to $0.50 increased (but not above $1.00) by $0.02 for each percentage point by which the total annual energy and power costs for the building are certified to be reduced by a percentage greater than 25 percent.</text></paragraph><paragraph id="idD97128F4A143449E89BBE550D632434E" display-inline="no-display-inline" commented="no"><enum>(3)</enum><header>Increased deduction amount for certain property</header><subparagraph id="id0CAD8010CD78432ABFBF7401C4F7AD51" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any property which satisfies the requirements of subparagraph (B), paragraph (2) shall be applied by substituting <quote>$2.50</quote> for <quote>$0.50</quote>, <quote>$.10</quote> for <quote>$.02</quote>, and <quote>$5.00</quote> for <quote>$1.00</quote>.</text></subparagraph><subparagraph id="id5BC8ECF70A774289B170D21EF693058B" commented="no"><enum>(B)</enum><header>Property requirements</header><text display-inline="yes-display-inline">In the case of any energy efficient commercial building property, energy efficient building retrofit property, or property installed pursuant to a qualified retrofit plan, such property shall meet the requirements of this subparagraph if — </text><clause id="idB6153C07E2D44C90A795DAC1CE5F83FF" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">installation of such property begins prior to the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (4)(A) and (5), or</text></clause><clause id="id97E347D0937A4DE28263F86CBEA5E5EE" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">installation of such property satisfies the requirements of paragraphs (4)(A) and (5).</text></clause></subparagraph></paragraph><paragraph id="idB73200C6519C4EA1B0160ED27BE3354F" commented="no"><enum>(4)</enum><header>Prevailing wage requirements</header><subparagraph id="idF2B2FE0DF0624C3B9741F1F83BE39263" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The requirements described in this subparagraph with respect to any property are that the taxpayer shall ensure that any laborers and mechanics employed by the taxpayer or any contractor or subcontractor in the installation of any property shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality in which such property is located as most recently determined by the Secretary of Labor, in accordance with subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code.</text></subparagraph><subparagraph id="idE2A900B293654010A7223E173F8C3061" commented="no"><enum>(B)</enum><header>Correction and penalty related to failure to satisfy wage requirements</header><text display-inline="yes-display-inline">Rules similar to the rules of section 45(b)(7)(B) shall apply.</text></subparagraph></paragraph><paragraph id="id308E99CFB69F4DDCBA3930DEA2C32F72" commented="no"><enum>(5)</enum><header>Apprenticeship requirements</header><text display-inline="yes-display-inline">Rules similar to the rules of section 45(b)(8) shall apply.</text></paragraph><paragraph commented="no" id="id577EC8B56409402CAFF52CD181673266"><enum>(6)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of administering the requirements of this subsection.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph commented="no" id="id976531944F66435BAF05231FF5CA007C"><enum>(2)</enum><header>Modification of efficiency standard</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D(c)(1)(D)</external-xref> is amended by striking <quote>50 percent</quote> and inserting <quote>25 percent</quote>.</text></paragraph><paragraph id="idD887BDFC7EB648F6AD3C93D7C84C2D19"><enum>(3)</enum><header>Reference Standard</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D(c)(2)</external-xref> is amended by striking <quote>the most recent</quote> and inserting the following:</text><quoted-block style="OLC" display-inline="yes-display-inline" id="idCD5E635D9B8344928268495CA516E7C9" changed="added" reported-display-style="italic"><text>the more recent of—</text><subparagraph id="idC8CDFE0A8C254887943E8371B9AA6F60"><enum>(A)</enum><text>Standard 90.1-2007 published by the American Society of Heating, Refrigerating, and Air Conditioning Engineers and the Illuminating Engineering Society of North America, or</text></subparagraph><subparagraph id="idA6DE8C8FCFE64E08B09B307EE524FD1F"><enum>(B)</enum><text>the most recent</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id55246E7677494512A6C89B1AD378BC71" commented="no"><enum>(4)</enum><header>Final determination; extension of period; placed in service deadline</header><text>Subparagraph (B) of section 179D(c)(2), as amended by paragraph (3), is amended—</text><subparagraph id="idFB74D82D9BDC428792AC311EC2216610" commented="no"><enum>(A)</enum><text>by inserting <quote>for which the Department of Energy has issued a final determination and</quote> before <quote>which has been affirmed</quote>,</text></subparagraph><subparagraph commented="no" id="id28FA1645771D47CB9451298DCFEBC628"><enum>(B)</enum><text>by striking <quote>2 years</quote> and inserting <quote>4 years</quote>, and</text></subparagraph><subparagraph id="idC083904887EB444280EEC8B5FA1ECA44" commented="no"><enum>(C)</enum><text>by striking <quote>that construction of such property begins</quote> and inserting <quote>such property is placed in service</quote>.</text></subparagraph></paragraph><paragraph commented="no" id="idC89000063D31470AAFD947BB4FABD4CE"><enum>(5)</enum><header>Elimination of partial allowance</header><subparagraph commented="no" id="idE7B81F97622C409D94ABBFB4F6CECB0B"><enum>(A)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D(d)</external-xref> is amended—</text><clause commented="no" id="idE9ED9366F4D84DA28E9DB49134B295DB"><enum>(i)</enum><text>by striking paragraph (1), and</text></clause><clause commented="no" id="id7CB2AD57406C4557A74BFAAC38E3ACA6"><enum>(ii)</enum><text>by redesignating paragraphs (2) through (6) as paragraphs (1) through (5), respectively.</text></clause></subparagraph><subparagraph commented="no" id="id0503CBE82C82468CA86CC5853299BBE7"><enum>(B)</enum><header>Conforming amendments</header><clause commented="no" id="idA2746793EA83447EAE58C89B261E8749"><enum>(i)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D(c)(1)(D)</external-xref> is amended—</text><subclause commented="no" id="id3380468D481D486781D57A24232D5504"><enum>(I)</enum><text>by striking <quote>subsection (d)(6)</quote> and inserting <quote>subsection (d)(5)</quote>, and</text></subclause><subclause commented="no" id="id357BF408CEBF425AA0C3E28AB13DA418"><enum>(II)</enum><text>by striking <quote>subsection (d)(2)</quote> and inserting <quote>subsection (d)(1)</quote>.</text></subclause></clause><clause commented="no" id="id161FB90D4700470FB6B831DF0F94929B"><enum>(ii)</enum><text>Paragraph (2)(A) of section 179D(d), as redesignated by subparagraph (A), is amended by striking <quote>paragraph (2)</quote> and inserting <quote>paragraph (1)</quote>.</text></clause><clause commented="no" id="id884ADF2BE01847059963E461A43F3AD7"><enum>(iii)</enum><text>Paragraph (4) of section 179D(d), as redesignated by subparagraph (A), is amended by striking <quote>paragraph (3)(B)(iii)</quote> and inserting <quote>paragraph (2)(B)(iii)</quote>.</text></clause><clause commented="no" id="idC1EE5B8B53104F7CB4743DFD5897AABC"><enum>(iv)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D</external-xref> is amended by striking subsection (f).</text></clause><clause commented="no" id="id7E954FCB17634CC4919A2410CF0DC42B"><enum>(v)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D(h)</external-xref> is amended by striking <quote>or (d)(1)(A)</quote>.</text></clause></subparagraph></paragraph><paragraph id="id341030853EF341D7BD324D1625AF7E05" commented="no"><enum>(6)</enum><header>Allocation of deduction by certain tax-exempt entities</header><text>Paragraph (3) of section 179D(d), as redesignated by paragraph (5)(A), is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idEEA55721C92E4DD0B22A129A51930F5E" changed="added" reported-display-style="italic"><paragraph commented="no" id="id05625C3820F14193AFE9C985829F61DA"><enum>(3)</enum><header>Allocation of deduction by certain tax-exempt entities</header><subparagraph commented="no" id="id0CCC235F27044B53994E0BE3F6664D4A"><enum>(A)</enum><header>In general</header><text>In the case of energy efficient commercial building property installed on or in property owned by a specified tax-exempt entity, the Secretary shall promulgate regulations or guidance to allow the allocation of the deduction to the person primarily responsible for designing the property in lieu of the owner of such property. Such person shall be treated as the taxpayer for purposes of this section.</text></subparagraph><subparagraph id="id046420B9C9B2457F870C4D21246915C6" commented="no"><enum>(B)</enum><header>Specified tax-exempt entity</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term <term>specified tax-exempt entity</term> means—</text><clause id="id081496CDA5A64A6AA521C61A9F85FFD7" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">the United States, any State or political subdivision thereof, any possession of the United States, or any agency or instrumentality of any of the foregoing, </text></clause><clause id="id6A1886B0D4AD4EE7B5E94D23F4725EDD" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">an Indian tribal government (as defined in section 30D(g)(9)) or Alaska Native Corporation (as defined in section 3 of the Alaska Native Claims Settlement Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1602">43 U.S.C. 1602(m)</external-xref>), and</text></clause><clause id="idA83F4AD9525B474C88E1ED52FFE4C7CD" commented="no"><enum>(iii)</enum><text>any organization exempt from tax imposed by this chapter.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph commented="no" id="idEFD56C54F0054D99839436BA348C092C"><enum>(7)</enum><header>Alternative deduction for energy efficient building retrofit property</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D</external-xref>, as amended by the preceding provisions of this section, is amended by inserting after subsection (e) the following new subsection:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idA02D8EF31891481285E2649F4B979618" changed="added" reported-display-style="italic"><subsection id="id435B9275281840D18293018CDCF55D73" commented="no"><enum>(f)</enum><header>Alternative deduction for energy efficient building retrofit property</header><paragraph id="id31C340E621F8459480D1D87259A18161" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of a taxpayer which elects (at such time and in such manner as the Secretary may provide) the application of this subsection with respect to any qualified building, there shall be allowed as a deduction for the taxable year which includes the date of the qualifying final certification with respect to the qualified retrofit plan of such building, an amount equal to the lesser of—</text><subparagraph id="id415272F518BF4C609468C544F7A5C289" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">the excess described in subsection (b) (determined by substituting <quote>energy use intensity</quote> for <quote>total annual energy and power costs</quote> in paragraph (2) thereof), or</text></subparagraph><subparagraph id="id1864B53BAF9B4C3897FBBA39F71A60D4" commented="no"><enum>(B)</enum><text>the aggregate adjusted basis (determined after taking into account all adjustments with respect to such taxable year other than the reduction under subsection (e)) of energy efficient building retrofit property placed in service by the taxpayer pursuant to such qualified retrofit plan.</text></subparagraph></paragraph><paragraph id="id105E36594F5C4FA3863CF6C0C855A2D1" commented="no"><enum>(2)</enum><header>Qualified retrofit plan</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>qualified retrofit plan</quote> means a written plan prepared by a qualified professional which specifies modifications to a building which, in the aggregate, are expected to reduce such building’s energy use intensity by 25 percent or more in comparison to the baseline energy use intensity of such building. Such plan shall provide for a qualified professional to—</text><subparagraph id="idF2FFA46B71DC4FD0885284546A899D69" commented="no"><enum>(A)</enum><text>as of any date during the 1-year period ending on the date on which the property installed pursuant to such plan is placed in service, certify the energy use intensity of such building as of such date,</text></subparagraph><subparagraph id="id7CFBF9EF733445F68A98AC59DE0321AB" commented="no"><enum>(B)</enum><text>certify the status of property installed pursuant to such plan as meeting the requirements of subparagraphs (B) and (C) of paragraph (3), and</text></subparagraph><subparagraph id="id74F835B220D9412ABDCE8447E6772F5D" commented="no"><enum>(C)</enum><text display-inline="yes-display-inline">as of any date that is more than 1 year after the date on which the property installed pursuant to such plan is placed in service, certify the energy use intensity of such building as of such date.</text></subparagraph></paragraph><paragraph id="id9F76EA37885B470E926B3987AFC69E86" commented="no"><enum>(3)</enum><header>Energy efficient building retrofit property</header><text>For purposes of this subsection, the term <quote>energy efficient building retrofit property</quote> means property—</text><subparagraph id="id20CC6A2038EC467F851CA484B62D02C6" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">with respect to which depreciation (or amortization in lieu of depreciation) is allowable,</text></subparagraph><subparagraph id="id2973BACB42CE42BD89538354853392A6" commented="no"><enum>(B)</enum><text>which is installed on or in any qualified building,</text></subparagraph><subparagraph id="id188515E3473F444783CCF4726CA38F71" commented="no"><enum>(C)</enum><text>which is installed as part of—</text><clause id="idA1A8800B98624A6FB7A69AF4ECD85FF2" commented="no"><enum>(i)</enum><text>the interior lighting systems,</text></clause><clause id="idB92845A214CD41599E65D214C13E793E" commented="no"><enum>(ii)</enum><text>the heating, cooling, ventilation, and hot water systems, or</text></clause><clause id="id806747F80C9947F99BA0EAA2D3EB0C6A" commented="no"><enum>(iii)</enum><text>the building envelope, and</text></clause></subparagraph><subparagraph id="id2AE55D5EB2184B2489F8D4BD3979429C" commented="no"><enum>(D)</enum><text>which is certified in accordance with paragraph (2)(B) as meeting the requirements of subparagraphs (B) and (C). </text></subparagraph></paragraph><paragraph id="idDE2BABDEB2DD484FB02F02F38225F2F8" commented="no"><enum>(4)</enum><header>Qualified building</header><text>For purposes of this subsection, the term <quote>qualified building</quote> means any building which—</text><subparagraph id="idC6AA070332A44D2294E50BD3C4A93BF1" commented="no"><enum>(A)</enum><text>is located in the United States, and</text></subparagraph><subparagraph id="idD57843297E7A474C882EDE4E6D0E3CB7" commented="no"><enum>(B)</enum><text>was originally placed in service not less than 5 years before the establishment of the qualified retrofit plan with respect to such building.</text></subparagraph></paragraph><paragraph id="id487B006E5E974CD7A1E02062CDD303EB" commented="no"><enum>(5)</enum><header>Qualifying final certification</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>qualifying final certification</quote> means, with respect to any qualified retrofit plan, the certification described in paragraph (2)(C) if the energy use intensity certified in such certification is not more than 75 percent of the baseline energy use intensity of the building.</text></paragraph><paragraph id="id9D5F0C0B0F3F490EBDFC9F87A735E950" commented="no"><enum>(6)</enum><header>Baseline energy use intensity</header><subparagraph id="idADD99FF64AF14619A42E928D8CB1B463" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>baseline energy use intensity</quote> means the energy use intensity certified under paragraph (2)(A), as adjusted to take into account weather.</text></subparagraph><subparagraph id="id36D27E1FA08545FF8196055B94321F63" commented="no"><enum>(B)</enum><header>Determination of adjustment</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), the adjustments described in such subparagraph shall be determined in such manner as the Secretary may provide.</text></subparagraph></paragraph><paragraph id="idE478C0F9F43848B081616A8D998F7B32" commented="no"><enum>(7)</enum><header>Other definitions</header><text display-inline="yes-display-inline">For purposes of this subsection—</text><subparagraph id="id247E0D90149140E79014FCFAF59B5A31" commented="no"><enum>(A)</enum><header>Energy use intensity</header><text>The term <quote>energy use intensity</quote> means the annualized, measured site energy use intensity determined in accordance with such regulations or other guidance as the Secretary may provide and measured in British thermal units.</text></subparagraph><subparagraph id="id01D529508317411B9560383BF9FC882B" commented="no"><enum>(B)</enum><header>Qualified professional</header><text>The term <quote>qualified professional</quote> means an individual who is a licensed architect or a licensed engineer and meets such other requirements as the Secretary may provide.</text></subparagraph></paragraph><paragraph id="id244EB88728F04CF697A03D472BCAEC82" commented="no"><enum>(8)</enum><header>Coordination with deduction otherwise allowed under subsection <enum-in-header>(a)</enum-in-header></header><subparagraph id="idA7B8D21425224B5E853E22E658817EBF" commented="no"><enum>(A)</enum><header>In general</header><text>In the case of any building with respect to which an election is made under paragraph (1), the term <quote>energy efficient commercial building property</quote> shall not include any energy efficient building retrofit property with respect to which a deduction is allowable under this subsection.</text></subparagraph><subparagraph id="id3D488F3DBF6C486887717300DFC00886" commented="no"><enum>(B)</enum><header>Certain rules not applicable</header><clause id="id9F487B62F0A74A03B373765AF50BD698" commented="no"><enum>(i)</enum><header>In general</header><text>Except as provided in clause (ii), subsection (d) shall not apply for purposes of this subsection.</text></clause><clause id="id62CF49A9E5FA4FF39341541C22278540" commented="no"><enum>(ii)</enum><header>Allocation of deduction by certain tax-exempt entities</header><text>Rules similar to subsection (d)(3) shall apply for purposes of this subsection.</text></clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph commented="no" id="id81B42FF420AE43BA9961A84D0973028F"><enum>(8)</enum><header>Inflation adjustment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D(g)</external-xref> is amended—</text><subparagraph commented="no" id="id57908B8869EF45588C46C4864B6BD72A"><enum>(A)</enum><text>by striking <quote>2020</quote> and inserting <quote>2022</quote>,</text></subparagraph><subparagraph commented="no" id="id5B4EC1630AE74720A58857F2BF918917"><enum>(B)</enum><text>by striking <quote>or subsection (d)(1)(A)</quote>, and</text></subparagraph><subparagraph commented="no" id="id8154EB76660E4B09B64CE4D6A0DC2A2F"><enum>(C)</enum><text>by striking <quote>2019</quote> and inserting <quote>2021</quote>.</text></subparagraph></paragraph></subsection><subsection id="H56A4190EED3E41EAAC2FD36B11D99890"><enum>(b)</enum><header>Application to real estate investment trust earnings and profits</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/312">Section 312(k)(3)(B)</external-xref> is amended—</text><paragraph id="H8BF1D251BD6B4542A985126A7FE96556"><enum>(1)</enum><text>by striking <quote>For purposes of computing the earnings and profits of a corporation</quote> and inserting the following: </text><quoted-block style="OLC" id="HE1CC0CA48F204775BA6D518FF1B94E0C" display-inline="no-display-inline" changed="added" reported-display-style="italic"><clause id="HFD84FCA1C6224E8C906211363AC05DF1"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of computing the earnings and profits of a corporation, except as provided in clause (ii)</text></clause><after-quoted-block>, and</after-quoted-block></quoted-block></paragraph><paragraph id="H8E4C99F830C243AF87AA94A6B8C59D46"><enum>(2)</enum><text>by adding at the end the following new clause: </text><quoted-block style="OLC" id="HB26887D099F849248AF9B0956AF1F90E" display-inline="no-display-inline" changed="added" reported-display-style="italic"><clause id="H2758515D53C943968CA3873579577F53"><enum>(ii)</enum><header>Special rule</header><text display-inline="yes-display-inline">In the case of a corporation that is a real estate investment trust, any amount deductible under section 179D shall be allowed in the year in which the property giving rise to such deduction is placed in service (or, in the case of energy efficient building retrofit property, the year in which the qualifying final certification is made).</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="HC3EBD1E050B2440EA9F94B3AFDDF007F"><enum>(c)</enum><header>Conforming amendment</header><text display-inline="yes-display-inline">Paragraph (1) of section 179D(d), as redesignated by subsection (a)(5)(A), is amended by striking <quote>not later than the date that is 2 years before the date that construction of such property begins</quote> and inserting <quote>not later than the date that is 4 years before the date such property is placed in service</quote>. </text></subsection><subsection commented="no" display-inline="no-display-inline" id="H8371051E1CB64310862450AE6D19C803"><enum>(d)</enum><header>Effective date</header><paragraph id="HDC7DAA698FD24DF180F662FF2300B43D"><enum>(1)</enum><header>In general</header><text>Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years beginning after December 31, 2022.</text></paragraph><paragraph id="H4694C0577AD04887AA24A589E90D35E1"><enum>(2)</enum><header>Alternative deduction for energy efficient building retrofit property</header><text>Subsection (f) of <external-xref legal-doc="usc" parsable-cite="usc/26/179D">section 179D</external-xref> of the Internal Revenue Code of 1986 (as amended by this section), and any other provision of such section solely for purposes of applying such subsection, shall apply to property placed in service after December 31, 2022 (in taxable years ending after such date) if such property is placed in service pursuant to qualified retrofit plan (within the meaning of such section) established after such date. </text></paragraph></subsection></section><section id="H6C720E320E1A4D40AAAFF64AC9A46FA4" display-inline="no-display-inline" section-type="subsequent-section"><enum>13304.</enum><header>Extension, increase, and modifications of new energy efficient home credit</header><subsection id="HA516469A1EC342CEB6D9CF1B60110E9E"><enum>(a)</enum><header>Extension of credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45L">Section 45L(g)</external-xref> is amended by striking <quote>December 31, 2021</quote> and inserting <quote>December 31, 2032</quote>.</text></subsection><subsection id="H0026AFA8D3234BA5A311CBA511C9621B"><enum>(b)</enum><header>Increase in credit amounts</header><text display-inline="yes-display-inline">Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/45L">section 45L(a)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" id="H6F386D9E41FC403CBA9ECDEF929717C5" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="HC938B9B90E5E4B19B683137B7B0805F9"><enum>(2)</enum><header>Applicable amount</header><text display-inline="yes-display-inline">For purposes of paragraph (1), the applicable amount is an amount equal to—</text><subparagraph id="H617A014C44A043EA97FBA6A454383BDC"><enum>(A)</enum><text display-inline="yes-display-inline">in the case of a dwelling unit which is eligible to participate in the Energy Star Residential New Construction Program or the Energy Star Manufactured New Homes program—</text><clause id="H8719C48B825C4335AAD3B164BD582B2F"><enum>(i)</enum><text>which meets the requirements of subsection (c)(1)(A) (and which does not meet the requirements of subsection (c)(1)(B)), $2,500, and</text></clause><clause id="HB143D29CD33E4DA1AD9F46AEF79E87F2"><enum>(ii)</enum><text>which meets the requirements of subsection (c)(1)(B), $5,000, and</text></clause></subparagraph><subparagraph id="H7747E66232C64B868668E704333D25BA"><enum>(B)</enum><text display-inline="yes-display-inline">in the case of a dwelling unit which is part of a building eligible to participate in the Energy Star Multifamily New Construction Program—</text><clause id="HC059F65BB105431AB002F053451B6EC0"><enum>(i)</enum><text>which meets the requirements of subsection (c)(1)(A) (and which does not meet the requirements of subsection (c)(1)(B)), $500, and</text></clause><clause id="H72691B9A95CA4E5CAC5DB021E027528A"><enum>(ii)</enum><text>which meets the requirements of subsection (c)(1)(B), $1,000.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H6F3805BE3EA945D28906E76119E392D4"><enum>(c)</enum><header>Modification of energy saving requirements</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45L">Section 45L(c)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" id="H4B6CE58838294BEEBF29B617C267F8DD" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subsection id="H27391FFB18DD4B2CB1FC674C12D40C3A"><enum>(c)</enum><header>Energy saving requirements</header><paragraph id="H4159159EDF0048B280A005E09D1821E4"><enum>(1)</enum><header>In general</header><subparagraph id="idCDC323B9F596473BA561FAC8AC1EB0B0"><enum>(A)</enum><header>In general</header><text>A dwelling unit meets the requirements of this subparagraph if such dwelling unit meets the requirements of paragraph (2) or (3) (whichever is applicable).</text></subparagraph><subparagraph id="H2EA59A9374234B27A1A8386D666A493B"><enum>(B)</enum><header>Zero energy ready home program</header><text>A dwelling unit meets the requirements of this subparagraph if such dwelling unit is certified as a zero energy ready home under the zero energy ready home program of the Department of Energy as in effect on January 1, 2023 (or any successor program determined by the Secretary).</text></subparagraph></paragraph><paragraph id="H18A2307ABF1446518C75AD40CAD13C60"><enum>(2)</enum><header>Single-family home requirements</header><text>A dwelling unit meets the requirements of this paragraph if—</text><subparagraph id="HC4D7A5EB97684D91916F1F58A2E5A193"><enum>(A)</enum><text display-inline="yes-display-inline">such dwelling unit meets—</text><clause id="HCBF89DAF385C4FD8A6C9ADE7C780369E"><enum>(i)</enum><subclause commented="no" display-inline="yes-display-inline" id="id5AF538CB0FAF4EFA8A63DB24208CBE3B"><enum>(I)</enum><text>in the case of a dwelling unit acquired before January 1, 2025, the Energy Star Single-Family New Homes National Program Requirements 3.1, or</text></subclause><subclause id="idEB0A2CDC550C40F7A11C9E0AECA6254F" indent="up1"><enum>(II)</enum><text>in the case of a dwelling unit acquired after December 31, 2024, the Energy Star Single-Family New Homes National Program Requirements 3.2, and</text></subclause></clause><clause id="HCFBC3732D9A1490F902716A5AC7C2E91"><enum>(ii)</enum><text>the most recent Energy Star Single-Family New Homes Program Requirements applicable to the location of such dwelling unit (as in effect on the latter of January 1, 2023, or January 1 of two calendar years prior to the date the dwelling unit was acquired), or</text></clause></subparagraph><subparagraph id="HF1BA7EB61AAE4D43B2F3BFAD9DDB8441"><enum>(B)</enum><text display-inline="yes-display-inline">such dwelling unit meets the most recent Energy Star Manufactured Home National program requirements as in effect on the latter of January 1, 2023, or January 1 of two calendar years prior to the date such dwelling unit is acquired.</text></subparagraph></paragraph><paragraph id="HCD3DCC35DFB3487994EA29BF4380D288"><enum>(3)</enum><header>Multi-family home requirements</header><text>A dwelling unit meets the requirements of this paragraph if—</text><subparagraph id="HF82842191F42441F9C6D978C4732B618"><enum>(A)</enum><text display-inline="yes-display-inline">such dwelling unit meets the most recent Energy Star Multifamily New Construction National Program Requirements (as in effect on either January 1, 2023, or January 1 of three calendar years prior to the date the dwelling was acquired, whichever is later), and</text></subparagraph><subparagraph id="H81283EAA55CA4B7EA1BF1A5581C465EB"><enum>(B)</enum><text display-inline="yes-display-inline">such dwelling unit meets the most recent Energy Star Multifamily New Construction Regional Program Requirements applicable to the location of such dwelling unit (as in effect on either January 1, 2023, or January 1 of three calendar years prior to the date the dwelling was acquired, whichever is later).</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H867FB1AF84214753BBB626492BAA1471"><enum>(d)</enum><header>Prevailing wage requirement</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/45L">Section 45L</external-xref> is amended by redesignating subsection (g) as subsection (h) and by inserting after subsection (f) the following new subsection:</text><quoted-block style="OLC" id="H3882A2A39F0841678BE4F0BF2CD6ED86" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subsection id="H6A16801DC1904748A3DC496585D7D25C"><enum>(g)</enum><header>Prevailing wage requirement</header><paragraph id="H902737598F804AADB590FCAAB488E9C0"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of a qualifying residence described in subsection (a)(2)(B) meeting the prevailing wage requirements of paragraph (2)(A), the credit amount allowed with respect to such residence shall be—</text><subparagraph id="H6D907C8208B542EDB82FCF3C5207A419"><enum>(A)</enum><text>$2,500 in the case of a residence which meets the requirements of subparagraph (A) of subsection (c)(1) (and which does not meet the requirements of subparagraph (B) of such subsection), and</text></subparagraph><subparagraph id="HDECF6EA08E3E4234B5B230D0395D059E"><enum>(B)</enum><text>$5,000 in the case of a residence which meets the requirements of subsection (c)(1)(B).</text></subparagraph></paragraph><paragraph id="H00ABC95CDFDE4A848CC652463921A6CA"><enum>(2)</enum><header>Prevailing wage requirements</header><subparagraph id="H28FA2CAA273B436195245C4325AC5FBF"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The requirements described in this subparagraph with respect to any qualified residence are that the taxpayer shall ensure that any laborers and mechanics employed by the taxpayer or any contractor or subcontractor in the construction of such residence shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality in which such residence is located as most recently determined by the Secretary of Labor, in accordance with subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code.</text></subparagraph><subparagraph id="H79B32FAD443443F799AABCAECF2B12D1"><enum>(B)</enum><header>Correction and penalty related to failure to satisfy wage requirements</header><text display-inline="yes-display-inline">Rules similar to the rules of section 45(b)(7)(B) shall apply.</text></subparagraph></paragraph><paragraph id="HDA1720D36D6C4E81BA7CB6B3791A820F" commented="no"><enum>(3)</enum><header>Regulations and guidance</header><text display-inline="yes-display-inline">The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of administering the requirements of this subsection.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HDE63EA451CA54BDD95D36396DD7A7D9F"><enum>(e)</enum><header>Basis adjustment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45L">Section 45L(e)</external-xref> is amended by inserting after the first sentence the following: <quote>This subsection shall not apply for purposes of determining the adjusted basis of any building under section 42.</quote>.</text></subsection><subsection id="id924236E0600647ECA9F4EC8E3DB7F4A8"><enum>(f)</enum><header>Effective dates</header><paragraph id="idE5DAC412935843859D6217E5BF163109"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided in paragraph (2), the amendments made by this section shall apply to dwelling units acquired after December 31, 2022.</text></paragraph><paragraph id="idE063EC518E7A441EB6DD78E3EBBFAC73"><enum>(2)</enum><header>Extension of credit</header><text display-inline="yes-display-inline">The amendments made by subsection (a) shall apply to dwelling units acquired after December 31, 2021. </text></paragraph></subsection></section></part><part id="H7EEA280204BC498FAA21B0A953838930"><enum>4<?LEXA-Enum 4?></enum><header>Clean Vehicles</header><section id="id4640CE8DF2144D94B35DEC22F00FA7E9"><enum>13401.</enum><header>Clean vehicle credit</header><subsection id="idC6295DD4E0A245118C26E7A62D203C8E"><enum>(a)</enum><header>Per vehicle dollar limitation</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30D">Section 30D(b)</external-xref> is amended by striking paragraphs (2) and (3) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id0AF1A07366864290B8F08B1066BED230" changed="added" reported-display-style="italic"><paragraph id="idC44901E75AE743219181EA599CE92EAF"><enum>(2)</enum><header>Critical minerals</header><text>In the case of a vehicle with respect to which the requirement described in subsection (e)(1)(A) is satisfied, the amount determined under this paragraph is $3,750.</text></paragraph><paragraph id="id83CFDCD625E84E5F9C841B2038EBB6B8"><enum>(3)</enum><header>Battery components</header><text>In the case of a vehicle with respect to which the requirement described in subsection (e)(2)(A) is satisfied, the amount determined under this paragraph is $3,750.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id519475A5B19A4DDEA6EBC66D10B2D760"><enum>(b)</enum><header>Final assembly</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30D">Section 30D(d)</external-xref> is amended—</text><paragraph id="idDFC431F8E8F2460B811883A1C32F7DA0"><enum>(1)</enum><text>in paragraph (1)—</text><subparagraph id="idEAC977476B1B49518E6083B65F17CBEA"><enum>(A)</enum><text>in subparagraph (E), by striking <quote>and</quote> at the end,</text></subparagraph><subparagraph id="idAAD6401482DD4387928CA530A3608823"><enum>(B)</enum><text>in subparagraph (F)(ii), by striking the period at the end and inserting <quote>, and</quote>, and</text></subparagraph><subparagraph id="id105332A501EB4658A213D53E3EA6F58D"><enum>(C)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idBFE0561DD3E1465D84B132F62DD6F070" changed="added" reported-display-style="italic"><subparagraph id="idF3D6E9C4DFF045D0AA457D3B625AE715" commented="no"><enum>(G)</enum><text>the final assembly of which occurs within North America.</text></subparagraph><after-quoted-block>,</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="idC46B5FFB304B499C81AB0E87333D9BE3"><enum>(2)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id8CF22BD583664042A2478D49FDE40AF0" changed="added" reported-display-style="italic"><paragraph id="idEB3800D528764F7F9F3C464C3DD7CF24"><enum>(5)</enum><header>Final assembly</header><text>For purposes of paragraph (1)(G), the term <quote>final assembly</quote> means the process by which a manufacturer produces a new clean vehicle at, or through the use of, a plant, factory, or other place from which the vehicle is delivered to a dealer or importer with all component parts necessary for the mechanical operation of the vehicle included with the vehicle, whether or not the component parts are permanently installed in or on the vehicle.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="id7A1F8195A3BA4BDCB125657C9FD8AF9C"><enum>(c)</enum><header>Definition of new clean vehicle</header><paragraph id="id09DE99793A7946D881C656AFD3E914D2"><enum>(1)</enum><header>In general</header><text>Section 30D(d), as amended by the preceding provisions of this section, is amended—</text><subparagraph id="id359F9EBDB7A347DF97805D327C042E0F"><enum>(A)</enum><text>in the heading, by striking <quote><header-in-text style="tax" level="subsection">qualified plug-in electric drive motor</header-in-text></quote> and inserting <quote><header-in-text style="tax" level="subsection">clean</header-in-text></quote>, </text></subparagraph><subparagraph id="id962E7DCED89F4DA78C1EADCDB8C4CC03"><enum>(B)</enum><text>in paragraph (1)—</text><clause id="idBD72BF6CEF9C4773A1DA40AD41D60B60"><enum>(i)</enum><text>in the matter preceding subparagraph (A), by striking <quote>qualified plug-in electric drive motor</quote> and inserting <quote>clean</quote>,</text></clause><clause id="id7CC4B3D9BBF9422A8B8865B0AE200D80" commented="no"><enum>(ii)</enum><text>in subparagraph (C), by inserting <quote>qualified</quote> before <quote>manufacturer</quote>,</text></clause><clause id="id9D8DB5F1CC66420591855015A644FA07"><enum>(iii)</enum><text>in subparagraph (F)—</text><subclause id="id60AAB63AF7FD404A91CC57E8BE727F4F"><enum>(I)</enum><text>in clause (i), by striking <quote>4</quote> and inserting <quote>7</quote>, and</text></subclause><subclause id="id8C358746CFAE48D1839958D78F1DF5DB"><enum>(II)</enum><text>in clause (ii), by striking <quote>and</quote> at the end,</text></subclause></clause><clause id="idAF4EEA6DF3F2415C92505B0B381C3F74"><enum>(iv)</enum><text>in subparagraph (G), by striking the period at the end and inserting <quote>, and</quote>, and</text></clause><clause id="id03862E1AC3114104B66DFB0871B3EF09"><enum>(v)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id2071FF6DB61F4F20BB8549A635B12658" changed="added" reported-display-style="italic"><subparagraph id="idA45507DD1D8A4A06869C7C410BE63559"><enum>(H)</enum><text display-inline="yes-display-inline">for which the person who sells any vehicle to the taxpayer furnishes a report to the taxpayer and to the Secretary, at such time and in such manner as the Secretary shall provide, containing—</text><clause id="id327F88D34691474DAEE50016D64895F1"><enum>(i)</enum><text display-inline="yes-display-inline">the name and taxpayer identification number of the taxpayer,</text></clause><clause id="idEA771B9B405C45DABFD9F24D054731AB"><enum>(ii)</enum><text display-inline="yes-display-inline">the vehicle identification number of the vehicle, unless, in accordance with any applicable rules promulgated by the Secretary of Transportation, the vehicle is not assigned such a number,</text></clause><clause id="id75CFE5B00B1F4586907A3DB1B1F0A882"><enum>(iii)</enum><text display-inline="yes-display-inline">the battery capacity of the vehicle,</text></clause><clause id="id5BB04EA60B454B02B81E9505E712BBBB"><enum>(iv)</enum><text display-inline="yes-display-inline">verification that original use of the vehicle commences with the taxpayer, and</text></clause><clause id="id3A864D41125146218EBFBB0B4866DAE3"><enum>(v)</enum><text>the maximum credit under this section allowable to the taxpayer with respect to the vehicle.</text></clause></subparagraph><after-quoted-block>,</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="id868A82262DA6465194DEB2B7E02542C5"><enum>(C)</enum><text>in paragraph (3)—</text><clause id="id1FA7391171AF4E7DB49A3D15DC447FA2"><enum>(i)</enum><text>in the heading, by striking <quote><header-in-text style="tax" level="paragraph">Manufacturer</header-in-text></quote> and inserting <quote><header-in-text style="OLC" level="paragraph">Qualified manufacturer</header-in-text></quote>,</text></clause><clause id="id269C3E264CE44711B6101501CF2520A3"><enum>(ii)</enum><text>by striking <quote>The term <term>manufacturer</term> has the meaning given such term in</quote> and inserting <quote>The term <term>qualified manufacturer</term> means any manufacturer (within the meaning of the</quote>, and</text></clause><clause id="id89BE5B1E813F45DAB5D3D3307C92EB9B"><enum>(iii)</enum><text>by inserting <quote>) which enters into a written agreement with the Secretary under which such manufacturer agrees to make periodic written reports to the Secretary (at such times and in such manner as the Secretary may provide) providing vehicle identification numbers and such other information related to each vehicle manufactured by such manufacturer as the Secretary may require</quote> before the period at the end, and </text></clause></subparagraph><subparagraph id="id5405DF8EC689457B89A77B562BF3DFF9"><enum>(D)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id882CBC9A5A484BC7A56BB59D2C543DB8" changed="added" reported-display-style="italic"><paragraph id="idB5788C68F5C4408B9222F3FB1CAF5773"><enum>(6)</enum><header>New qualified fuel cell motor vehicle</header><text>For purposes of this section, the term <term>new clean vehicle</term> shall include any new qualified fuel cell motor vehicle (as defined in section 30B(b)(3)) which meets the requirements under subparagraphs (G) and (H) of paragraph (1).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="id95515E96CB7B4A349B6C7CB85038B400"><enum>(2)</enum><header>Conforming amendments</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30D">Section 30D</external-xref> is amended—</text><subparagraph id="id27EBF027CE2F494690B1294A1566D36E"><enum>(A)</enum><text>in subsection (a), by striking <quote>new qualified plug-in electric drive motor vehicle</quote> and inserting <quote>new clean vehicle</quote>, and</text></subparagraph><subparagraph id="id4EB493083B5548B2B28F410959DEA6D7"><enum>(B)</enum><text>in subsection (b)(1), by striking <quote>new qualified plug-in electric drive motor vehicle</quote> and inserting <quote>new clean vehicle</quote>.</text></subparagraph></paragraph></subsection><subsection id="id2BFEE17730E6416081554ED2E2F3A733"><enum>(d)</enum><header>Elimination of limitation on number of vehicles eligible for credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30D">Section 30D</external-xref> is amended by striking subsection (e).</text></subsection><subsection id="id9D72B281E81542AA893954F5C3FAF357"><enum>(e)</enum><header>Critical mineral and battery component requirements</header><paragraph id="id4BD4A34F195E4D0EB446AE8F28A3CE04"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30D">Section 30D</external-xref>, as amended by the preceding provisions of this section, is amended by inserting after subsection (d) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idF276C87202F4491095B61ADC19AE8D43" changed="added" reported-display-style="italic"><subsection id="id1EAF668C319245759F35A237EBF96A0C"><enum>(e)</enum><header>Critical mineral and battery component requirements</header><paragraph id="idCA3FF46AC99141A0937AC640807E1923" commented="no"><enum>(1)</enum><header>Critical minerals requirement</header><subparagraph id="id27C26E2210174B8EA14DBF8C637261BC" commented="no"><enum>(A)</enum><header>In general</header><text>The requirement described in this subparagraph with respect to a vehicle is that, with respect to the battery from which the electric motor of such vehicle draws electricity, the percentage of the value of the applicable critical minerals (as defined in section 45X(c)(6)) contained in such battery that were—</text><clause commented="no" id="idD3E80ADC478F4FE5B54DC9BA2175A285"><enum>(i)</enum><text>extracted or processed—</text><subclause commented="no" id="id8E61B69EAB944665A29E54D78B1E743F"><enum>(I)</enum><text>in the United States, or </text></subclause><subclause commented="no" id="idB4C99C22155E4877B993EEAE710FA5E2"><enum>(II)</enum><text>in any country with which the United States has a free trade agreement in effect, or </text></subclause></clause><clause commented="no" id="idB83B8F3E45F342C586392E124C0E5784"><enum>(ii)</enum><text>recycled in North America,</text></clause><continuation-text continuation-text-level="subparagraph">is equal to or greater than the applicable percentage (as certified by the qualified manufacturer, in such form or manner as prescribed by the Secretary).</continuation-text></subparagraph><subparagraph id="id9358FB1864DA472182DB239DCF579418"><enum>(B)</enum><header>Applicable percentage</header><text>For purposes of subparagraph (A), the applicable percentage shall be—</text><clause id="id8C269F022A4246EB8A643677B2BAFCE5"><enum>(i)</enum><text>in the case of a vehicle placed in service after the date on which the proposed guidance described in paragraph (3)(B) is issued by the Secretary and before January 1, 2024, 40 percent,</text></clause><clause id="id6343452C15EE423E9D9880CFFB5A499C"><enum>(ii)</enum><text>in the case of a vehicle placed in service during calendar year 2024, 50 percent,</text></clause><clause id="idB114AC97AF9F4536A2AD476DE1A2E3B3"><enum>(iii)</enum><text>in the case of a vehicle placed in service during calendar year 2025, 60 percent,</text></clause><clause id="id2CB8807D891545F09E7F1F6D9DB41202"><enum>(iv)</enum><text>in the case of a vehicle placed in service during calendar year 2026, 70 percent, and</text></clause><clause id="id7E7B0635E3F4425588CE9D23BF16875C"><enum>(v)</enum><text>in the case of a vehicle placed in service after December 31, 2026, 80 percent.</text></clause></subparagraph></paragraph><paragraph id="id0CCED49034F74F72B70B5E05FCCD1C8D" commented="no"><enum>(2)</enum><header>Battery components</header><subparagraph id="id49A7CD314E8644C989FC1362924C741A" commented="no"><enum>(A)</enum><header>In general</header><text>The requirement described in this subparagraph with respect to a vehicle is that, with respect to the battery from which the electric motor of such vehicle draws electricity, the percentage of the value of the components contained in such battery that were manufactured or assembled in North America is equal to or greater than the applicable percentage (as certified by the qualified manufacturer, in such form or manner as prescribed by the Secretary).</text></subparagraph><subparagraph id="idA7D94D82D0A4404DA21144C8BE097333"><enum>(B)</enum><header>Applicable percentage</header><text>For purposes of subparagraph (A), the applicable percentage shall be—</text><clause id="id2DA457E71D5C48C69AEDAC3CE502C6A8"><enum>(i)</enum><text>in the case of a vehicle placed in service after the date on which the proposed guidance described in paragraph (3)(B) is issued by the Secretary and before January 1, 2024, 50 percent,</text></clause><clause id="id1C5D93452304438B9B3136ED96DE83DF"><enum>(ii)</enum><text>in the case of a vehicle placed in service during calendar year 2024 or 2025, 60 percent,</text></clause><clause id="id156BBAE1DD8A4D4D86B18E20C85C0C5F"><enum>(iii)</enum><text>in the case of a vehicle placed in service during calendar year 2026, 70 percent,</text></clause><clause id="id979CD79BA60B4276A03C6C2AAFFB3BA0"><enum>(iv)</enum><text>in the case of a vehicle placed in service during calendar year 2027, 80 percent,</text></clause><clause id="id2BE3B056E8AD4C68A89031E38223705E"><enum>(v)</enum><text>in the case of a vehicle placed in service during calendar year 2028, 90 percent,</text></clause><clause id="id33E0589D9DAE4A47962027D6DB46155A"><enum>(vi)</enum><text>in the case of a vehicle placed in service after December 31, 2028, 100 percent.</text></clause></subparagraph></paragraph><paragraph commented="no" id="idDE52F683597A4708A3E88C9BDED2A5F8"><enum>(3)</enum><header>Regulations and guidance</header><subparagraph commented="no" id="idD3CA9C310E1846B6B6C62B9827D718C7"><enum>(A)</enum><header>In general</header><text>The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of administering the requirements of this subsection.</text></subparagraph><subparagraph commented="no" id="idD5FFAC88BF13475D9FEBBD2E18FEE0CB"><enum>(B)</enum><header>Deadline for proposed guidance</header><text>Not later than December 31, 2022, the Secretary shall issue proposed guidance with respect to the requirements under this subsection.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id3B23B5C5D2FB4B2AACA943AEEC5BEA38"><enum>(2)</enum><header>Excluded entities</header><text>Section 30D(d), as amended by the preceding provisions of this section, is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id61D107AB6A79447183922C1DEE4BDA4B" changed="added" reported-display-style="italic"><paragraph id="id9BC159BC80BF44C3BB7CA4D40068ED54"><enum>(7)</enum><header>Excluded entities</header><text>For purposes of this section, the term <term>new clean vehicle</term> shall not include—</text><subparagraph id="id613FA2D863524623AD6AED826B1E4CE0"><enum>(A)</enum><text>any vehicle placed in service after December 31, 2024, with respect to which any of the applicable critical minerals contained in the battery of such vehicle (as described in subsection (e)(1)(A)) were extracted, processed, or recycled by a foreign entity of concern (as defined in section 40207(a)(5) of the Infrastructure Investment and Jobs Act (<external-xref legal-doc="usc" parsable-cite="usc/42/18741">42 U.S.C. 18741(a)(5)</external-xref>)), or</text></subparagraph><subparagraph id="id616F3DC4016C4B0087CDEA6B9C0E0D59"><enum>(B)</enum><text>any vehicle placed in service after December 31, 2023, with respect to which any of the components contained in the battery of such vehicle (as described in subsection (e)(2)(A)) were manufactured or assembled by a foreign entity of concern (as so defined).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="id0FC270B6170746E59BF331D7626480F1"><enum>(f)</enum><header>Special rules</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30D">Section 30D(f)</external-xref> is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id5B1F7610F1A84CC3819FE36AE1BF0E5B" changed="added" reported-display-style="italic"><paragraph id="idFDBD4E0CEF84496BA928363A186A68F3"><enum>(8)</enum><header>One credit per vehicle</header><text>In the case of any vehicle, the credit described in subsection (a) shall only be allowed once with respect to such vehicle, as determined based upon the vehicle identification number of such vehicle.</text></paragraph><paragraph id="id541D3953BD4F47F482D5CE42666A31BB"><enum>(9)</enum><header>VIN requirement</header><text>No credit shall be allowed under this section with respect to any vehicle unless the taxpayer includes the vehicle identification number of such vehicle on the return of tax for the taxable year.</text></paragraph><paragraph id="id5C46335DD98444EE868DFA163383AAA2" commented="no"><enum>(10)</enum><header>Limitation based on modified adjusted gross income</header><subparagraph commented="no" id="id31AB396CF8654D9082B8A7E93DF3EA08"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">No credit shall be allowed under subsection (a) for any taxable year if—</text><clause commented="no" id="idDDB1074F09E94E9D90FAD8782E4B9F2B"><enum>(i)</enum><text display-inline="yes-display-inline">the lesser of—</text><subclause commented="no" id="id422A1F480AFF4C9AB9FF63E1878CAA2B"><enum>(I)</enum><text display-inline="yes-display-inline">the modified adjusted gross income of the taxpayer for such taxable year, or</text></subclause><subclause commented="no" id="id9AB74B5F3EF740199B5090E4147BE521"><enum>(II)</enum><text>the modified adjusted gross income of the taxpayer for the preceding taxable year, exceeds</text></subclause></clause><clause commented="no" id="id4D40240ECAB34A8FAB3BEDF03CDA0A46"><enum>(ii)</enum><text>the threshold amount.</text></clause></subparagraph><subparagraph commented="no" id="idCF338609F2994C0F8B05B61E5CC400AB"><enum>(B)</enum><header>Threshold amount</header><text>For purposes of subparagraph (A)(ii), the threshold amount shall be—</text><clause id="id0E88770078C84485ADDB9D9EA5DF22B8" commented="no"><enum>(i)</enum><text>in the case of a joint return or a surviving spouse (as defined in section 2(a)), $300,000,</text></clause><clause id="idE865C604A8E84DA9B3538196CACC1ADF" commented="no"><enum>(ii)</enum><text>in the case of a head of household (as defined in section 2(b)), $225,000, and</text></clause><clause id="id5C3AFCB366654BE395C04040388BA8DB" commented="no"><enum>(iii)</enum><text>in the case of a taxpayer not described in clause (i) or (ii), $150,000.</text></clause></subparagraph><subparagraph commented="no" id="id5276502200534B1B9683E87AF5748DB2"><enum>(C)</enum><header>Modified adjusted gross income</header><text>For purposes of this paragraph, the term ‘modified adjusted gross income’ means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933. </text></subparagraph></paragraph><paragraph id="id23EDE8115FC540608758422489AD6BBD" commented="no"><enum>(11)</enum><header>Manufacturer’s suggested retail price limitation</header><subparagraph id="id66BFF24BA0C04F9C97347528193452E3" commented="no"><enum>(A)</enum><header>In general</header><text>No credit shall be allowed under subsection (a) for a vehicle with a manufacturer’s suggested retail price in excess of the applicable limitation.</text></subparagraph><subparagraph id="id68C000EBA3104E32B88F701456BD6697" commented="no"><enum>(B)</enum><header>Applicable limitation</header><text>For purposes of subparagraph (A), the applicable limitation for each vehicle classification is as follows:</text><clause id="id0F21F69DBA3C471F817713879750D7E1" commented="no"><enum>(i)</enum><header>Vans</header><text display-inline="yes-display-inline">In the case of a van, $80,000. </text></clause><clause id="idD17997C53EA0429B8AC104F1A830B54B" commented="no"><enum>(ii)</enum><header>Sport Utility Vehicles</header><text display-inline="yes-display-inline">In the case of a sport utility vehicle, $80,000.</text></clause><clause id="id54EC6815894C4C64AE9DDA7FCF069469" commented="no"><enum>(iii)</enum><header>Pickup Trucks</header><text display-inline="yes-display-inline">In the case of a pickup truck, $80,000.</text></clause><clause id="id2BD67F68130B4397A7AEA7FF746BE039"><enum>(iv)</enum><header>Other</header><text>In the case of any other vehicle, $55,000.</text></clause></subparagraph><subparagraph id="id634F246318524AC2A0A3ECF7B609A210" commented="no"><enum>(C)</enum><header>Regulations and guidance</header><text display-inline="yes-display-inline">For purposes of this paragraph, the Secretary shall prescribe such regulations or other guidance as the Secretary determines necessary for determining vehicle classifications using criteria similar to that employed by the Environmental Protection Agency and the Department of the Energy to determine size and class of vehicles.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H4CD264852EC3478EAA0914EF06A7D669"><enum>(g)</enum><header>Transfer of credit</header><paragraph id="H99537A2A58B94DA9BCDF55151C5577AB"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30D">Section 30D</external-xref> is amended by striking subsection (g) and inserting the following: </text><quoted-block style="OLC" id="HF3D08191218142B9A66376AE8184D036" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subsection id="HD1C4ECB7ED234FCE8DEADEE8BE94B8F7"><enum>(g)</enum><header>Transfer of credit</header><paragraph id="HED9900E4060544B48BB02A76130BA71A"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Subject to such regulations or other guidance as the Secretary determines necessary, if the taxpayer who acquires a new clean vehicle elects the application of this subsection with respect to such vehicle, the credit which would (but for this subsection) be allowed to such taxpayer with respect to such vehicle shall be allowed to the eligible entity specified in such election (and not to such taxpayer).</text></paragraph><paragraph id="H23C3C79B6D3649FD804710F8833F26BD"><enum>(2)</enum><header>Eligible entity</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>eligible entity</quote> means, with respect to the vehicle for which the credit is allowed under subsection (a), the dealer which sold such vehicle to the taxpayer and has—</text><subparagraph id="H66CA929CBDD84142B9453BEBB4003C2E"><enum>(A)</enum><text>subject to paragraph (4), registered with the Secretary for purposes of this paragraph, at such time, and in such form and manner, as the Secretary may prescribe, </text></subparagraph><subparagraph id="H293D81C402C5463795E33D8C7B03CE57"><enum>(B)</enum><text>prior to the election described in paragraph (1) and not later than at the time of such sale, disclosed to the taxpayer purchasing such vehicle—</text><clause id="HF3A7AEBEB7F64B8EA77A8683F4B31EDC"><enum>(i)</enum><text>the manufacturer’s suggested retail price, </text></clause><clause id="H74BC941B2E614E7C82725B05035325A6"><enum>(ii)</enum><text>the value of the credit allowed and any other incentive available for the purchase of such vehicle, and</text></clause><clause id="H3720D63A505A47EC9C46B41560571EF7"><enum>(iii)</enum><text>the amount provided by the dealer to such taxpayer as a condition of the election described in paragraph (1), </text></clause></subparagraph><subparagraph id="H1544105935994E9A8EEC95F8D99C83CC"><enum>(C)</enum><text>not later than at the time of such sale, made payment to such taxpayer (whether in cash or in the form of a partial payment or down payment for the purchase of such vehicle) in an amount equal to the credit otherwise allowable to such taxpayer, and </text></subparagraph><subparagraph id="H31E52D54143049FD99033F614EBFAFA7"><enum>(D)</enum><text>with respect to any incentive otherwise available for the purchase of a vehicle for which a credit is allowed under this section, including any incentive in the form of a rebate or discount provided by the dealer or manufacturer, ensured that—</text><clause id="HBA3226C864BE47E7AA1479633237D23A"><enum>(i)</enum><text>the availability or use of such incentive shall not limit the ability of a taxpayer to make an election described in paragraph (1), and</text></clause><clause id="HC8DA0296B2D84BC3A9E5FA8D200F409F"><enum>(ii)</enum><text>such election shall not limit the value or use of such incentive.</text></clause></subparagraph></paragraph><paragraph id="H557141CA5493411FA902EB6CE4A6A921"><enum>(3)</enum><header>Timing</header><text display-inline="yes-display-inline">An election described in paragraph (1) shall be made by the taxpayer not later than the date on which the vehicle for which the credit is allowed under subsection (a) is purchased. </text></paragraph><paragraph id="HE178E71439C149C3BCD06F7D39310E39"><enum>(4)</enum><header>Revocation of registration</header><text display-inline="yes-display-inline">Upon determination by the Secretary that a dealer has failed to comply with the requirements described in paragraph (2), the Secretary may revoke the registration (as described in subparagraph (A) of such paragraph) of such dealer. </text></paragraph><paragraph id="H37DBCB8752BE437D90B61A1EEC0717FE"><enum>(5)</enum><header>Tax treatment of payments</header><text display-inline="yes-display-inline">With respect to any payment described in paragraph (2)(C), such payment—</text><subparagraph id="HE2563C3D8FD847B584C5B4843430150C"><enum>(A)</enum><text>shall not be includible in the gross income of the taxpayer, and</text></subparagraph><subparagraph id="H396BC14420704C3E9F146D20EF77244E"><enum>(B)</enum><text>with respect to the dealer, shall not be deductible under this title.</text></subparagraph></paragraph><paragraph id="HC448C3E5C5BD4997BF5EE50674D7A2AA"><enum>(6)</enum><header>Application of certain other requirements</header><text>In the case of any election under paragraph (1) with respect to any vehicle—</text><subparagraph id="H34AA6239A8174B8280FAE3772123443D"><enum>(A)</enum><text>the requirements of paragraphs (1) and (2) of subsection (f) shall apply to the taxpayer who acquired the vehicle in the same manner as if the credit determined under this section with respect to such vehicle were allowed to such taxpayer,</text></subparagraph><subparagraph id="H2AC66C8B861D48EFA91902342D141FE6"><enum>(B)</enum><text>paragraph (6) of such subsection shall not apply, and</text></subparagraph><subparagraph id="H0D05197518664DF8AD68DC50A734D427"><enum>(C)</enum><text>the requirement of paragraph (9) of such subsection (f) shall be treated as satisfied if the eligible entity provides the vehicle identification number of such vehicle to the Secretary in such manner as the Secretary may provide.</text></subparagraph></paragraph><paragraph id="H436FC86599334A248898DF35BC4B97BE"><enum>(7)</enum><header>Advance payment to registered dealers</header><subparagraph id="HC247BEFB709B4F9E97670846FFE1493D"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary shall establish a program to make advance payments to any eligible entity in an amount equal to the cumulative amount of the credits allowed under subsection (a) with respect to any vehicles sold by such entity for which an election described in paragraph (1) has been made. </text></subparagraph><subparagraph id="H276D409431DB475CAB693133423C4A5D"><enum>(B)</enum><header>Excessive payments</header><text display-inline="yes-display-inline">Rules similar to the rules of section 6417(d)(6) shall apply for purposes of this paragraph. </text></subparagraph><subparagraph id="id364D3CE5F419450EAF516F51705DFA4F"><enum>(C)</enum><header>Treatment of advance payments</header><text>For purposes of section 1324 of title 31, United States Code, the payments under subparagraph (A) shall be treated in the same manner as a refund due from a credit provision referred to in subsection (b)(2) of such section.</text></subparagraph></paragraph><paragraph id="HD74C75A91B53480DB260B8487FA3E72E"><enum>(8)</enum><header>Dealer</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>dealer</quote> means a person licensed by a State, the District of Columbia, the Commonwealth of Puerto Rico, any other territory or possession of the United States, an Indian tribal government, or any Alaska Native Corporation (as defined in section 3 of the Alaska Native Claims Settlement Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1602">43 U.S.C. 1602(m)</external-xref>) to engage in the sale of vehicles.</text></paragraph><paragraph id="id1A34FA0F42D640F39CA7C84E987E3511"><enum>(9)</enum><header>Indian tribal government</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <term>Indian tribal government</term> means the recognized governing body of any Indian or Alaska Native tribe, band, nation, pueblo, village, community, component band, or component reservation, individually identified (including parenthetically) in the list published most recently as of the date of enactment of this subsection pursuant to section 104 of the Federally Recognized Indian Tribe List Act of 1994 (<external-xref legal-doc="usc" parsable-cite="usc/25/5131">25 U.S.C. 5131</external-xref>).</text></paragraph><paragraph id="id5D600A30E910451E94FCC1455FE29BD2"><enum>(10)</enum><header>Recapture</header><text display-inline="yes-display-inline">In the case of any taxpayer who has made an election described in paragraph (1) with respect to a new clean vehicle and received a payment described in paragraph (2)(C) from an eligible entity, if the credit under subsection (a) would otherwise (but for this subsection) not be allowable to such taxpayer pursuant to the application of subsection (f)(10), the tax imposed on such taxpayer under this chapter for the taxable year in which such vehicle was placed in service shall be increased by the amount of the payment received by such taxpayer.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H526E35B0FB474D449B2A1CD73328C902"><enum>(2)</enum><header>Conforming amendments</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30D">Section 30D</external-xref>, as amended by the preceding provisions of this section, is amended—</text><subparagraph id="id6365E98B97E249619709C0369B14478E" commented="no"><enum>(A)</enum><text>in subsection (d)(1)(H) of such section—</text><clause id="idCA3D4F2023EF4C44B3124D1115D61705" commented="no"><enum>(i)</enum><text>in clause (iv), by striking <quote>and</quote> at the end,</text></clause><clause commented="no" id="id1B51E7F36F304BC3A293AD6750611452"><enum>(ii)</enum><text>in clause (v), by striking the period at the end and inserting <quote>, and</quote>, and</text></clause><clause id="id5B44D51FAC9A45E7AC8B01787538C934" commented="no"><enum>(iii)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idB93533CB507444D680205AFF55D6926D" changed="added" reported-display-style="italic"><clause id="idB877ADFCB42E48AC9228A0B99B107ACA" commented="no"><enum>(vi)</enum><text display-inline="yes-display-inline">in the case of a taxpayer who makes an election under subsection (g)(1), any amount described in subsection (g)(2)(C) which has been provided to such taxpayer.</text></clause><after-quoted-block>, and</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="idC4CA8279A21446DCA48C629BA54B8917" commented="no"><enum>(B)</enum><text>in subsection (f)—</text><clause commented="no" id="id6D4FBC8C0B9A42A3AA226D34C3DE76AC"><enum>(i)</enum><text>by striking paragraph (3), and</text></clause><clause commented="no" id="idAA61A59EEC7448308A012FBB66E73A0B"><enum>(ii)</enum><text>in paragraph (8), by inserting <quote>, including any vehicle with respect to which the taxpayer elects the application of subsection (g)</quote> before the period at the end.</text></clause></subparagraph></paragraph></subsection><subsection id="id36219AF0C72D4AF19450A7B0914F180D"><enum>(h)</enum><header>Termination</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30D">Section 30D</external-xref> is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idE1576171A0864B51ABEE41ADE41113F6" changed="added" reported-display-style="italic"><subsection id="idDD60E8C606EE4FADBD602B64A6C3A73E"><enum>(h)</enum><header>Termination</header><text>No credit shall be allowed under this section with respect to any vehicle placed in service after December 31, 2032.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="idA08D5658D46E4611A831A71BEDC3B2B5"><enum>(i)</enum><header>Additional conforming amendments</header><paragraph id="id34FFE5F6B2F2464A84B09D838F6DF703"><enum>(1)</enum><text>The heading of <external-xref legal-doc="usc" parsable-cite="usc/26/30D">section 30D</external-xref> is amended by striking <quote><header-in-text style="tax" level="section">New qualified plug-in electric drive motor vehicles</header-in-text></quote> and inserting <quote><header-in-text style="tax" level="section">Clean vehicle credit</header-in-text></quote>.</text></paragraph><paragraph commented="no" id="idF2865232175249BBB5E3815BACF648CA"><enum>(2)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/30B">Section 30B</external-xref> is amended—</text><subparagraph commented="no" id="idF039C3602A24473BACC2BAFDBAD84CFC"><enum>(A)</enum><text>in subsection (h)(8), by striking <quote>, except that no benefit shall be recaptured if such property ceases to be eligible for such credit by reason of conversion to a qualified plug-in electric drive motor vehicle</quote>, and</text></subparagraph><subparagraph commented="no" id="idB4E68DE6944C45B1A14EB5FDE4FDE936"><enum>(B)</enum><text>by striking subsection (i).</text></subparagraph></paragraph><paragraph id="idCA7478F62A7240EA9CB1E5171A667EC0"><enum>(3)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/38">Section 38(b)(30)</external-xref> is amended by striking <quote>qualified plug-in electric drive motor</quote> and inserting <quote>clean</quote>.</text></paragraph><paragraph id="id1AFE820AAAE74AD0AE6BD8A2419EEDB5"><enum>(4)</enum><text>Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended—</text><subparagraph id="idB9FC85F5183A462EB22969BB9D7DC4B5"><enum>(A)</enum><text>in subparagraph (R), by striking <quote>and</quote> at the end,</text></subparagraph><subparagraph id="id2C4A98B6218C492F8997C7D5CCE320E7"><enum>(B)</enum><text>in subparagraph (S), by striking the period at the end and inserting <quote>, and</quote>, and</text></subparagraph><subparagraph id="id56B9DA9A313E4A5395EBD9D7B3534B8F"><enum>(C)</enum><text>by inserting after subparagraph (S) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id8A5701D8331B4A6590659C6D5E0D66B1" changed="added" reported-display-style="italic"><subparagraph id="idFA43E72EFA8743EEA6021609F7F78F9D"><enum>(T)</enum><text>an omission of a correct vehicle identification number required under section 30D(f)(9) (relating to credit for new clean vehicles) to be included on a return.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="id9AC3DDE0BC424E83BF39C600EE6DAAFF"><enum>(5)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/6501">Section 6501(m)</external-xref> is amended by striking <quote>30D(e)(4)</quote> and inserting <quote>30D(f)(6)</quote>.</text></paragraph><paragraph id="id810FFE3481DB4EC8B94D65FEA99E52F3"><enum>(6)</enum><text>The table of sections for subpart B of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by striking the item relating to section 30D and inserting after the item relating to section 30C the following item:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idDA84FB8B193147C0B896ADDFB780C971" changed="added" reported-display-style="italic"><toc changed="added" reported-display-style="italic"><toc-entry level="section" bold="off">Sec. 30D. Clean vehicle credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="idCBF7A6A237D24325B659877ADF32CA56" commented="no"><enum>(j)</enum><header>Gross-up of direct spending</header><text>Beginning in fiscal year 2023 and each fiscal year thereafter, the portion of any credit allowed to an eligible entity (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/30D">section 30D(g)(2)</external-xref> of the Internal Revenue Code of 1986) pursuant to an election made under <external-xref legal-doc="usc" parsable-cite="usc/26/30D">section 30D(g)</external-xref> of the Internal Revenue Code of 1986 that is direct spending shall be increased by 6.0445 percent.</text></subsection><subsection id="H43ABC69A9A8B48CFA46BB9A6D68A40E7" commented="no"><enum>(k)</enum><header>Effective dates</header><paragraph id="H19DD393A4B894919808F0DEB961B3473"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraphs (2), (3), (4), and (5), the amendments made by this section shall apply to vehicles placed in service after December 31, 2022.</text></paragraph><paragraph id="H400EBEFB2388498B8744FEAA511BC321"><enum>(2)</enum><header>Final assembly</header><text>The amendments made by subsection (b) shall apply to vehicles sold after the date of enactment of this Act.</text></paragraph><paragraph id="id9982B57187384389AA425D2A16F68791"><enum>(3)</enum><header>Per vehicle dollar limitation and related requirements</header><text>The amendments made by subsections (a) and (e) shall apply to vehicles placed in service after the date on which the proposed guidance described in paragraph (3)(B) of <external-xref legal-doc="usc" parsable-cite="usc/26/30D">section 30D(e)</external-xref> of the Internal Revenue Code of 1986 (as added by subsection (e)) is issued by the Secretary of the Treasury (or the Secretary's delegate).</text></paragraph><paragraph id="id547B6E6073374F348FCC3A0F9E892DA6"><enum>(4)</enum><header>Transfer of credit</header><text>The amendments made by subsection (g) shall apply to vehicles placed in service after December 31, 2023.</text></paragraph><paragraph id="id99D714D473544336B11C1E3E0AE8A99C"><enum>(5)</enum><header>Elimination of manufacturer limitation</header><text>The amendment made by subsection (d) shall apply to vehicles sold after December 31, 2022.</text></paragraph></subsection><subsection id="id6C44DF9278014793A2D61A7CA486C3AD"><enum>(l)</enum><header>Transition rule</header><text>Solely for purposes of the application of <external-xref legal-doc="usc" parsable-cite="usc/26/30D">section 30D</external-xref> of the Internal Revenue Code of 1986, in the case of a taxpayer that—</text><paragraph id="id5B38D075C90B4B1680637D7BE96E84AD"><enum>(1)</enum><text>after December 31, 2021, and before the date of enactment of this Act, purchased, or entered into a written binding contract to purchase, a new qualified plug-in electric drive motor vehicle (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/30D">section 30D(d)(1)</external-xref> of the Internal Revenue Code of 1986, as in effect on the day before the date of enactment of this Act), and</text></paragraph><paragraph id="id39A41F5C976147319F25A83916D917F6"><enum>(2)</enum><text>placed such vehicle in service on or after the date of enactment of this Act,</text></paragraph><continuation-text continuation-text-level="subsection">such taxpayer may elect (at such time, and in such form and manner, as the Secretary of the Treasury, or the Secretary's delegate, may prescribe) to treat such vehicle as having been placed in service on the day before the date of enactment of this Act.</continuation-text></subsection></section><section id="H6755A898F3AA4DFC9180F9CDB423FD96" section-type="subsequent-section" commented="no"><enum>13402.</enum><header>Credit for previously-owned clean vehicles</header><subsection id="HEBF1FCEFED6B421E8240C9DE86AAC501" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subpart A of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after section 25D the following new section:</text><quoted-block style="OLC" id="H22D6923D45784632B63044781091AD94" display-inline="no-display-inline" changed="added" reported-display-style="italic"><section id="H95670471428F474696365815753AC2FF" commented="no"><enum>25E.</enum><header>Previously-owned clean vehicles</header><subsection id="H12C6E62E8A9A443D8DA5D42ADD464DF1" commented="no"><enum>(a)</enum><header>Allowance of credit</header><text display-inline="yes-display-inline">In the case of a qualified buyer who during a taxable year places in service a previously-owned clean vehicle, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the lesser of—</text><paragraph commented="no" id="idB571DCFED16A4DC8A1FB8FCF84CF0216"><enum>(1)</enum><text display-inline="yes-display-inline">$4,000, or</text></paragraph><paragraph commented="no" id="id8E898E4D70BD400190F182BE2D6779F5"><enum>(2)</enum><text>the amount equal to 30 percent of the sale price with respect to such vehicle.</text></paragraph></subsection><subsection id="H0DF6D00133B04E3CA8F1934189E96D9D" commented="no"><enum>(b)</enum><header>Limitation based on modified adjusted gross income</header><paragraph commented="no" id="id6B8548754B8C4B83A41F6CF47B6EBC39"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">No credit shall be allowed under subsection (a) for any taxable year if—</text><subparagraph commented="no" id="id0A1442484E6349F39264F086D7302450"><enum>(A)</enum><text display-inline="yes-display-inline">the lesser of—</text><clause commented="no" id="id0C0EAE29303845E791E662FD2FF35C61"><enum>(i)</enum><text display-inline="yes-display-inline">the modified adjusted gross income of the taxpayer for such taxable year, or</text></clause><clause commented="no" id="id72906ED4CF07421086BD819CF99EE9D9"><enum>(ii)</enum><text>the modified adjusted gross income of the taxpayer for the preceding taxable year, exceeds</text></clause></subparagraph><subparagraph commented="no" id="id7585706A607942B19AE144114A04897B"><enum>(B)</enum><text>the threshold amount.</text></subparagraph></paragraph><paragraph commented="no" id="idBF836F45BF834665BF6BE1EC751726D5"><enum>(2)</enum><header>Threshold amount</header><text>For purposes of paragraph (1)(B), the threshold amount shall be—</text><subparagraph id="HD64DC5C585814F1F8790DC6796EFDBEF" commented="no"><enum>(A)</enum><text>in the case of a joint return or a surviving spouse (as defined in section 2(a)), $150,000,</text></subparagraph><subparagraph id="H69143F2B9E5B4A8CA364068C41E7A44B" commented="no"><enum>(B)</enum><text>in the case of a head of household (as defined in section 2(b)), $112,500, and</text></subparagraph><subparagraph id="HCA336545A96B47C18AD1818B0E96668A" commented="no"><enum>(C)</enum><text>in the case of a taxpayer not described in subparagraph (A) or (B), $75,000.</text></subparagraph></paragraph><paragraph commented="no" id="id53E5A669504F4F55A228CD0FE3C3469F"><enum>(3)</enum><header>Modified adjusted gross income</header><text>For purposes of this subsection, the term ‘modified adjusted gross income’ means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933.</text></paragraph></subsection><subsection id="H7613A6CE6B5E4F4EBE9DCF3B9E4399FF" commented="no"><enum>(c)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this section—</text><paragraph id="HBE2D4856623E4B0F90E9C5B140C31EDC" commented="no"><enum>(1)</enum><header>Previously-owned clean vehicle</header><text display-inline="yes-display-inline">The term <term>previously-owned clean vehicle</term> means, with respect to a taxpayer, a motor vehicle—</text><subparagraph id="H5AD2361E893F4B4791F010CAB949A72B" commented="no"><enum>(A)</enum><text>the model year of which is at least 2 years earlier than the calendar year in which the taxpayer acquires such vehicle,</text></subparagraph><subparagraph id="H4FBE534C31934DB4AB4B4AE47C15FE29" commented="no"><enum>(B)</enum><text>the original use of which commences with a person other than the taxpayer,</text></subparagraph><subparagraph id="H490A893B591A4CF28CB7FF04992B58D3" commented="no"><enum>(C)</enum><text display-inline="yes-display-inline">which is acquired by the taxpayer in a qualified sale, and</text></subparagraph><subparagraph id="H67CE2237481D411EBB7ED0EDABB29605" commented="no"><enum>(D)</enum><text display-inline="yes-display-inline">which—</text><clause id="idA242F6BD34E246A0AD91A8F57B9EB4BB" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">meets the requirements of subparagraphs (C), (D), (E), (F), and (H) (except for clause (iv) thereof) of section 30D(d)(1), or </text></clause><clause id="idF850048C656D42039E74550D9CFFFFF1" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">is a motor vehicle which—</text><subclause id="id1D4FB7476F154E86A65763B40511A88C" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">satisfies the requirements under subparagraphs (A) and (B) of section 30B(b)(3), and</text></subclause><subclause id="id5363E42165D843D99B68062BE7BB2EC0" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">has a gross vehicle weight rating of less than 14,000 pounds.</text></subclause></clause></subparagraph></paragraph><paragraph id="HB4BE7EB080B5466893D5DCC57F552724" commented="no"><enum>(2)</enum><header>Qualified sale</header><text>The term <term>qualified sale</term> means a sale of a motor vehicle—</text><subparagraph id="H79DCA069FC374CE3BA00962FB3B3F808" commented="no"><enum>(A)</enum><text>by a dealer (as defined in section 30D(g)(8)),</text></subparagraph><subparagraph id="H5B0226CEE36C41D1BC625BF9FF353326" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">for a sale price which does not exceed $25,000, and</text></subparagraph><subparagraph id="H5CCF79CE538C497BA1B82C63EC0E5F3C" commented="no"><enum>(C)</enum><text>which is the first transfer since the date of the enactment of this section to a qualified buyer other than the person with whom the original use of such vehicle commenced.</text></subparagraph></paragraph><paragraph id="H6AF0E1342A5D48989AE1BC4FCE4E6FF4" commented="no"><enum>(3)</enum><header>Qualified buyer</header><text display-inline="yes-display-inline">The term <term>qualified buyer</term> means, with respect to a sale of a motor vehicle, a taxpayer—</text><subparagraph id="H3F779C5503304FD9AA3BCC1F307DCB04" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">who is an individual,</text></subparagraph><subparagraph id="HCCFF179AF98F4674ACA0AB48F2E863F9" commented="no"><enum>(B)</enum><text>who purchases such vehicle for use and not for resale,</text></subparagraph><subparagraph id="HC8FF8E317FFD46D488F3E701649C8691" commented="no"><enum>(C)</enum><text>with respect to whom no deduction is allowable with respect to another taxpayer under section 151, and</text></subparagraph><subparagraph id="HD8E078BECEA341FE93CABFE2179B934C" commented="no"><enum>(D)</enum><text>who has not been allowed a credit under this section for any sale during the 3-year period ending on the date of the sale of such vehicle.</text></subparagraph></paragraph><paragraph id="H60625B4D4D834BC7BA3F4618A192A661" commented="no"><enum>(4)</enum><header>Motor vehicle; capacity</header><text>The terms <term>motor vehicle</term> and <term>capacity</term> have the meaning given such terms in paragraphs (2) and (4) of section 30D(d), respectively.</text></paragraph></subsection><subsection id="HA9235194F6994254A67F946A0295A442" display-inline="no-display-inline" commented="no"><enum>(d)</enum><header>VIN number requirement</header><text display-inline="yes-display-inline">No credit shall be allowed under subsection (a) with respect to any vehicle unless the taxpayer includes the vehicle identification number of such vehicle on the return of tax for the taxable year.</text></subsection><subsection id="H1BB384C8F41B41E4895046215E782EC0" commented="no"><enum>(e)</enum><header>Application of certain rules</header><text>For purposes of this section, rules similar to the rules of section 30D(f) (without regard to paragraph (10) or (11) thereof) shall apply for purposes of this section. </text></subsection><subsection id="H1A78B5396EDE42D689F3FAB2556C77FF" commented="no"><enum>(f)</enum><header>Termination</header><text>No credit shall be allowed under this section with respect to any vehicle acquired after December 31, 2032.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H27029A3B42404AC4AE1203E5044B3F22" commented="no"><enum>(b)</enum><header>Transfer of credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25E">Section 25E</external-xref>, as added by subsection (a), is amended—</text><paragraph id="idAD540062A5874B578945C4E8E272C787" commented="no"><enum>(1)</enum><text>by redesignating subsection (f) as subsection (g), and</text></paragraph><paragraph id="id1920CD7D649E445091713F831A27D43B" commented="no"><enum>(2)</enum><text>by inserting after subsection (e) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id60EF1BD1C0214A25AFEC038334C69EF0" changed="added" reported-display-style="italic"><subsection id="id3C99A892711547EB873621FFAABED9BD" commented="no"><enum>(f)</enum><header>Transfer of credit</header><text>Rules similar to the rules of section 30D(g) shall apply.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="id4828FAB0ACD84F64A6DD4BECF25984A3" commented="no"><enum>(c)</enum><header>Conforming amendments</header><text>Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended—</text><paragraph id="H5CCE92FB203242C29E01402D33736A26" commented="no"><enum>(1)</enum><text>in subparagraph (S), by striking <quote>and</quote> at the end,</text></paragraph><paragraph id="H23F88DB5FF024AA6895F525DC064DE53" commented="no"><enum>(2)</enum><text>in subparagraph (T), by striking the period at the end and inserting <quote>, and</quote>, and</text></paragraph><paragraph id="H9EBC7C05CA004AF6ADD81B9E4EB63768" commented="no"><enum>(3)</enum><text>by inserting after subparagraph (T) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HE045F4D1417B4D06A4A4297F0329E5F1" changed="added" reported-display-style="italic"><subparagraph id="H93D7F7A1E14A468CB9BF30E83F5B8F1C" commented="no"><enum>(U)</enum><text display-inline="yes-display-inline">an omission of a correct vehicle identification number required under section 25E(d) (relating to credit for previously-owned clean vehicles) to be included on a return.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="HC17C1AA88406438683170E728B259B72" commented="no"><enum>(d)</enum><header>Clerical amendment</header><text>The table of sections for subpart A of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after the item relating to section 25D the following new item:</text><quoted-block style="OLC" id="H936C84F47B6440A4B4E463B057A2C2DE" display-inline="no-display-inline" changed="added" reported-display-style="italic"><toc container-level="quoted-block-container" quoted-block="no-quoted-block" lowest-level="section" idref="H22D6923D45784632B63044781091AD94" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded" changed="added" reported-display-style="italic"><toc-entry idref="H95670471428F474696365815753AC2FF" level="section">Sec. 25E. Previously-owned clean vehicles.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H17A496F3FA7A4CDA89DFFA11497D867C" commented="no"><enum>(e)</enum><header>Effective date</header><paragraph id="idD08118E746074DBEA68F560AAD6BFA03" commented="no"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), the amendments made by this section shall apply to vehicles acquired after December 31, 2022.</text></paragraph><paragraph id="idE9F3C434F5B84411ACB216C5D483B397" commented="no"><enum>(2)</enum><header>Transfer of credit</header><text>The amendments made by subsection (b) shall apply to vehicles acquired after December 31, 2023.</text></paragraph></subsection></section><section id="HF4992129E0FA446A8639CCC15F9F51AF" commented="no"><enum>13403.</enum><header>Qualified commercial clean vehicles</header><subsection id="H041DFADC61B04C0DA5B1BB16D334769D" commented="no"><enum>(a)</enum><header>In general</header><text>Subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by adding at the end the following new section:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HF9034A7B1D9146B8B5D0607F9CBD26F8" changed="added" reported-display-style="italic"><section id="HE7525AEF67774F3CB6BFADCD3548A2D2" commented="no"><enum>45W.</enum><header>Credit for qualified commercial clean vehicles</header><subsection id="H8FF72E10244344D4B5016C4D414BE2CA" commented="no"><enum>(a)</enum><header>In general</header><text>For purposes of section 38, the qualified commercial clean vehicle credit for any taxable year is an amount equal to the sum of the credit amounts determined under subsection (b) with respect to each qualified commercial clean vehicle placed in service by the taxpayer during the taxable year.</text></subsection><subsection id="HCC191E4033A34F48B9A90F8AB06A2DE3" commented="no"><enum>(b)</enum><header>Per vehicle amount</header><paragraph id="HBA66BA675CCA4DFD9D6D7ED98DC20B8B" commented="no"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (4), the amount determined under this subsection with respect to any qualified commercial clean vehicle shall be equal to the lesser of—</text><subparagraph id="HFD4D97DB06F743D19732FCE15E20E2F0" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">15 percent of the basis of such vehicle (30 percent in the case of a vehicle not powered by a gasoline or diesel internal combustion engine), or</text></subparagraph><subparagraph id="H56FE2A573B7B46F48C91BDAB99636A8B" commented="no"><enum>(B)</enum><text>the incremental cost of such vehicle.</text></subparagraph></paragraph><paragraph id="H31F196A5D32E49D78C12DD80B492EDC9" commented="no"><enum>(2)</enum><header>Incremental cost</header><text display-inline="yes-display-inline">For purposes of paragraph (1)(B), the incremental cost of any qualified commercial clean vehicle is an amount equal to the excess of the purchase price for such vehicle over such price of a comparable vehicle.</text></paragraph><paragraph id="H36763A143E53400D88EFDA9A8FCF2D34" commented="no"><enum>(3)</enum><header>Comparable vehicle</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>comparable vehicle</quote> means, with respect to any qualified commercial clean vehicle, any vehicle which is powered solely by a gasoline or diesel internal combustion engine and which is comparable in size and use to such vehicle.</text></paragraph><paragraph commented="no" id="id369651B42D804144A2DD7418C82CE1BF"><enum>(4)</enum><header>Limitation</header><text>The amount determined under this subsection with respect to any qualified commercial clean vehicle shall not exceed—</text><subparagraph commented="no" id="id55B312BD0EFF4D3093876B82118D69A4"><enum>(A)</enum><text>in the case of a vehicle which has a gross vehicle weight rating of less than 14,000 pounds, $7,500, and</text></subparagraph><subparagraph commented="no" id="id048E6B2BD9D94D479B3A98DE589E9EEF"><enum>(B)</enum><text>in the case of a vehicle not described in subparagraph (A), $40,000.</text></subparagraph></paragraph></subsection><subsection id="HA3C4F5A6A009478B835144A83858742E" commented="no"><enum>(c)</enum><header>Qualified commercial clean vehicle</header><text>For purposes of this section, the term <term>qualified commercial clean vehicle</term> means any vehicle which—</text><paragraph id="HFA88EE5442584B2EB10C6F38C2707E23" commented="no"><enum>(1)</enum><text display-inline="yes-display-inline">meets the requirements of section 30D(d)(1)(C) and is acquired for use or lease by the taxpayer and not for resale, </text></paragraph><paragraph id="H1EED6C5C04984977B978E0E17D810971" commented="no"><enum>(2)</enum><text display-inline="yes-display-inline">either—</text><subparagraph id="H24A84213F98A4DC887390BE51328F0E6" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">meets the requirements of subparagraph (D) of section 30D(d)(1) and is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails), or</text></subparagraph><subparagraph id="H42DCCB1CE6044597BCFFD8E831E95E6A" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">is mobile machinery, as defined in section 4053(8) (including vehicles that are not designed to perform a function of transporting a load over the public highways),</text></subparagraph></paragraph><paragraph id="H8065A1430FA6442A896BC3897D2D79C6" commented="no"><enum>(3)</enum><text>either—</text><subparagraph id="H67D569E5891E4B4FBD278532BFB272FF" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">is propelled to a significant extent by an electric motor which draws electricity from a battery which has a capacity of not less than 15 kilowatt hours (or, in the case of a vehicle which has a gross vehicle weight rating of less than 14,000 pounds, 7 kilowatt hours) and is capable of being recharged from an external source of electricity, or</text></subparagraph><subparagraph id="H5E0D897BE6EB484CB3E2F311A453F9FE" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">is a motor vehicle which satisfies the requirements under subparagraphs (A) and (B) of section 30B(b)(3), and</text></subparagraph></paragraph><paragraph id="H9A4099F257F148B4B463862ACCE9AC2B" commented="no"><enum>(4)</enum><text>is of a character subject to the allowance for depreciation.</text></paragraph></subsection><subsection id="H476EDB0412C04D46981D1CA60DF5003E" commented="no"><enum>(d)</enum><header>Special rules</header><paragraph id="H9FB32CC64CBA4AAD92FB9461929BE374" commented="no"><enum>(1)</enum><header>In general</header><text>Rules similar to the rules under subsection (f) of section 30D (without regard to paragraph (10) or (11) thereof) shall apply for purposes of this section.</text></paragraph><paragraph id="H2955AC15600C4AD4913C5208A7BCAFC4" commented="no"><enum>(2)</enum><header>Vehicles placed in service by tax-exempt entities</header><text>Subsection (c)(4) shall not apply to any vehicle which is not subject to a lease and which is placed in service by a tax-exempt entity described in clause (i), (ii), or (iv) of section 168(h)(2)(A).</text></paragraph><paragraph commented="no" id="id0E1B3704FB2947DF82540AD59CCAEE9E"><enum>(3)</enum><header>No double benefit</header><text>No credit shall be allowed under this section with respect to any vehicle for which a credit was allowed under section 30D. </text></paragraph></subsection><subsection id="H2700F8E7036446529F8FCD2EB0B2CE2A" display-inline="no-display-inline" commented="no"><enum>(e)</enum><header>VIN number requirement</header><text display-inline="yes-display-inline">No credit shall be determined under subsection (a) with respect to any vehicle unless the taxpayer includes the vehicle identification number of such vehicle on the return of tax for the taxable year.</text></subsection><subsection id="HCA34C3ACB28E4BA885B2F281ECD1CFA9" commented="no"><enum>(f)</enum><header>Regulations and guidance</header><text>The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this section, including regulations or other guidance relating to determination of the incremental cost of any qualified commercial clean vehicle.</text></subsection><subsection commented="no" id="id8E047D0D2C0F498EA63F49E14C008618"><enum>(g)</enum><header>Termination</header><text>No credit shall be determined under this section with respect to any vehicle acquired after December 31, 2032.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HDA49A5DD7E114B1F86D4D0DA9AAA36D7" commented="no"><enum>(b)</enum><header>Conforming amendments</header><paragraph id="idC5F18FAAC8FD4808B87FE85EC75EB500" commented="no"><enum>(1)</enum><text>Section 38(b), as amended by the preceding provisions of this Act, is amended—</text><subparagraph id="id4D25C236B4A3411F999E328816EFB61F" commented="no"><enum>(A)</enum><text>in paragraph (35), by striking <quote>plus</quote> at the end,</text></subparagraph><subparagraph id="id10734865E1B64CE9BD298528E64D2C54" commented="no"><enum>(B)</enum><text>in paragraph (36), by striking the period at the end and inserting <quote>, plus</quote>, and</text></subparagraph><subparagraph id="id1CA76B69EE904A0992A30D6DBB70B974" commented="no"><enum>(C)</enum><text>by adding at the end the following new paragraph:</text><quoted-block display-inline="no-display-inline" id="idE65F050707344F049F4F808ACE3D1494" style="OLC" changed="added" reported-display-style="italic"><paragraph id="idB7D532F7CEB743F2B83557242285D0DF" commented="no"><enum>(37)</enum><text>the qualified commercial clean vehicle credit determined under section 45W.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="H5A3004604BAC40C0B7B2EBD7EFE0FF95" commented="no"><enum>(2)</enum><text>Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended—</text><subparagraph id="HF30C49AD54144FFF9FAE6AE72D99BB01" commented="no"><enum>(A)</enum><text>in subparagraph (T), by striking <quote>and</quote> at the end,</text></subparagraph><subparagraph id="H524D862AD1BE4D6C972916ABF2DFF440" commented="no"><enum>(B)</enum><text>in subparagraph (U), by striking the period at the end and inserting <quote>, and</quote>, and</text></subparagraph><subparagraph id="HA1973047F4AE4049AAB9BDCE1899F5FB" commented="no"><enum>(C)</enum><text>by inserting after subparagraph (U) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H5A851C137DC54477BB7443FEA4BA6174" changed="added" reported-display-style="italic"><subparagraph id="H2D21C1E6668843AAB241A6B6C93E6503" commented="no"><enum>(V)</enum><text display-inline="yes-display-inline">an omission of a correct vehicle identification number required under section 45W(e) (relating to commercial clean vehicle credit) to be included on a return.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="H6BE2807F10DA4F85A6DED45EC2B8E9F1" commented="no"><enum>(3)</enum><text>The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by adding at the end the following new item:</text><quoted-block display-inline="no-display-inline" id="H560B1C0C282F456D91D8D6B95B021CA9" style="OLC" changed="added" reported-display-style="italic"><toc changed="added" reported-display-style="italic"><toc-entry bold="off" level="section">Sec. 45W. Qualified commercial clean vehicle credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H9E81A0CB03474C84A80DAA7F4360CAF5" commented="no"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to vehicles acquired after December 31, 2022.</text></subsection></section><section id="HBFF77DCFDEF2422A920F3B23E7605D94" display-inline="no-display-inline" section-type="subsequent-section" commented="no"><enum>13404.</enum><header>Alternative fuel refueling property credit</header><subsection id="HF2ECD2219ECE4A9EBCEB48AF053F78EA" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/30C">Section 30C(g)</external-xref> is amended by striking <quote>December 31, 2021</quote> and inserting <quote>December 31, 2032</quote>.</text></subsection><subsection id="H8CBE69A720134E77ABEDF57C622D26BE" commented="no"><enum>(b)</enum><header>Credit for property of a character subject to depreciation</header><paragraph id="H33D2174D8A614A87A59CDDD333A65423" commented="no"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30C">Section 30C(a)</external-xref> is amended by inserting <quote>(6 percent in the case of property of a character subject to depreciation)</quote> after <quote>30 percent</quote>.</text></paragraph><paragraph id="id0E27D3F844F34F67A2F03F1D455D811A" commented="no"><enum>(2)</enum><header>Modification of credit limitation</header><text>Subsection (b) of <external-xref legal-doc="usc" parsable-cite="usc/26/30C">section 30C</external-xref> is amended—</text><subparagraph id="id14BB922EDC134CD9A672862330D55E4A" commented="no"><enum>(A)</enum><text>in the matter preceding paragraph (1)—</text><clause commented="no" id="idF089112EF404424DA13FAF83B8454A2A"><enum>(i)</enum><text>by striking <quote>with respect to all</quote> and inserting <quote>with respect to any single item of</quote>, and</text></clause><clause id="id72709946FA3D4C0BA18803D94985E9BF" commented="no"><enum>(ii)</enum><text>by striking <quote>at a location</quote>, and</text></clause></subparagraph><subparagraph id="id8181B9536D16474CBCF0EA53E0941E13" commented="no"><enum>(B)</enum><text>in paragraph (1), by striking <quote>$30,000 in the case of a property</quote> and inserting <quote>$100,000 in the case of any such item of property</quote>.</text></subparagraph></paragraph><paragraph id="HC0F9FC22CA564FEEA064BA6E909A3002" commented="no"><enum>(3)</enum><header>Bidirectional charging equipment included as qualified alternative fuel vehicle refueling property</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30C">Section 30C(c)</external-xref> is amended to read as follows: </text><quoted-block style="OLC" id="H60C2D19980FF461F947B378C54B265FE" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subsection id="H850A5511293F4309B73B235931F2539E" commented="no"><enum>(c)</enum><header>Qualified alternative fuel vehicle refueling property</header><text display-inline="yes-display-inline">For purposes of this section—</text><paragraph id="HAE77106A99804FFA9EFEF01F57CB4ED1" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The term <quote>qualified alternative fuel vehicle refueling property</quote> has the same meaning as the term <quote>qualified clean-fuel vehicle refueling property</quote> would have under section 179A if—</text><subparagraph id="HD3B8F7E5AC1742F6BD9C4A1C0E6662E6" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">paragraph (1) of section 179A(d) did not apply to property installed on property which is used as the principal residence (within the meaning of section 121) of the taxpayer, and</text></subparagraph><subparagraph id="HD539DDC885A84E309D4060D9BB1C1812" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">only the following were treated as clean-burning fuels for purposes of section 179A(d):</text><clause id="H1F4FE59404944A599A4A2567FD79745A" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">Any fuel at least 85 percent of the volume of which consists of one or more of the following: ethanol, natural gas, compressed natural gas, liquified natural gas, liquefied petroleum gas, or hydrogen.</text></clause><clause id="H1971AEBDAC1B4240AD02360EF0CAA175" commented="no"><enum>(ii)</enum><text>Any mixture—</text><subclause id="H6C205AD47D52423EB7CC3262A1314457" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">which consists of two or more of the following: biodiesel (as defined in section 40A(d)(1)), diesel fuel (as defined in section 4083(a)(3)), or kerosene, and</text></subclause><subclause id="HF804E7642D98477781AFDD3B49CD930E" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">at least 20 percent of the volume of which consists of biodiesel (as so defined) determined without regard to any kerosene in such mixture.</text></subclause></clause><clause id="HFC9CD3DB0BE446A2A056EAAB7B75D297" commented="no"><enum>(iii)</enum><text>Electricity.</text></clause></subparagraph></paragraph><paragraph id="H3089A289DC21411F9B7DABFFD44052C3" commented="no"><enum>(2)</enum><header>Bidirectional charging equipment</header><text display-inline="yes-display-inline">Property shall not fail to be treated as qualified alternative fuel vehicle refueling property solely because such property—</text><subparagraph id="H1A6963AC2FA4411CA061C66E03A3CA2B" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">is capable of charging the battery of a motor vehicle propelled by electricity, and</text></subparagraph><subparagraph id="H6C58F396FDE54F9FA675DC598C16736B" commented="no"><enum>(B)</enum><text>allows discharging electricity from such battery to an electric load external to such motor vehicle.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="HC66F5DF8E45841D6A362B569C568651E" display-inline="no-display-inline" commented="no"><enum>(c)</enum><header>Certain electric charging stations included as qualified alternative fuel vehicle refueling property</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/30C">Section 30C</external-xref> is amended by redesignating subsections (f) and (g) as subsections (g) and (h), respectively, and by inserting after subsection (e) the following:</text><quoted-block style="OLC" id="HA739A3045E244BE7B5AEB9F7592C7FCD" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subsection id="HF7C32A219B3349EB8174AEAD1B6A44DD" commented="no"><enum>(f)</enum><header>Special rule for electric charging stations for certain vehicles with 2 or 3 wheels</header><text display-inline="yes-display-inline">For purposes of this section—</text><paragraph id="H871FCDAB64AC4172B03FC3A898BE0B5F" commented="no"><enum>(1)</enum><header>In general</header><text>The term <term>qualified alternative fuel vehicle refueling property</term> includes any property described in subsection (c) for the recharging of a motor vehicle described in paragraph (2), but only if such property—</text><subparagraph id="H421B5B57AE3B43A3A06868ADCDD2C7C8" commented="no"><enum>(A)</enum><text>meets the requirements of subsection (a)(2), and</text></subparagraph><subparagraph id="HE81577B8B9D04729A88A535CB5759FD9" commented="no"><enum>(B)</enum><text>is of a character subject to depreciation. </text></subparagraph></paragraph><paragraph id="H03CA20496FF34221BA6F61FC7FB8DADC" commented="no"><enum>(2)</enum><header>Motor vehicle</header><text display-inline="yes-display-inline">A motor vehicle is described in this paragraph if the motor vehicle—</text><subparagraph id="H7843421BAA7B4EEDBFF29E1D8AD0E742" commented="no"><enum>(A)</enum><text>is manufactured primarily for use on public streets, roads, or highways (not including a vehicle operated exclusively on a rail or rails),</text></subparagraph><subparagraph id="H37CCE772575A4141811E34F2BB3C7900" commented="no"><enum>(B)</enum><text>has 2 or 3 wheels, and</text></subparagraph><subparagraph id="id78880C75337A4B8CABA43AB5F6B5D18D" commented="no"><enum>(C)</enum><text>is propelled by electricity.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HF98E30AFFD70479D8B14BB55AFD0F504" commented="no" display-inline="no-display-inline"><enum>(d)</enum><header>Wage and apprenticeship requirements</header><text display-inline="yes-display-inline">Section 30C, as amended by this section, is further amended by redesignating subsections (g) and (h) as subsections (h) and (i) and by inserting after subsection (f) the following new subsection: </text><quoted-block style="OLC" id="H84ADCD43355F474882F08988F6CCB5E3" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subsection id="H3EED354A0EB4462AA99060E7F837F418" commented="no"><enum>(g)</enum><header>Wage and apprenticeship requirements</header><paragraph id="HA3DAEEAE2F44432AAAF269C937C10AF2" commented="no"><enum>(1)</enum><header>Increased credit amount</header><subparagraph id="H4B9F578AFD344DE8988C115011C22BF5" commented="no"><enum>(A)</enum><header>In general</header><text>In the case of any qualified alternative fuel vehicle refueling project which satisfies the requirements of subparagraph (C), the amount of the credit determined under subsection (a) for any qualified alternative fuel vehicle refueling property of a character subject to an allowance for depreciation which is part of such project shall be equal to such amount (determined without regard to this sentence) multiplied by 5.</text></subparagraph><subparagraph id="H04328A625AB040AF89BE73912F9055C6" commented="no"><enum>(B)</enum><header>Qualified alternative fuel vehicle refueling project</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>qualified alternative fuel vehicle refueling project</quote> means a project consisting of one or more properties that are part of a single project.</text></subparagraph><subparagraph id="H065A23CBC5FA4835BAF3AC8676755DF7" commented="no"><enum>(C)</enum><header>Project requirements</header><text display-inline="yes-display-inline">A project meets the requirements of this subparagraph if it is one of the following: </text><clause id="H5A1693F62F34474CB9E71CDCDCC7E135" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">A project the construction of which begins prior to the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (2)(A) and (3).</text></clause><clause id="HDE9B4C3C7F7F44E697AC824689D85B52" commented="no"><enum>(ii)</enum><text>A project which satisfies the requirements of paragraphs (2)(A) and (3).</text></clause></subparagraph></paragraph><paragraph id="H2A59F6A4D23343CF98FCF9C5334AFF80" commented="no"><enum>(2)</enum><header>Prevailing wage requirements</header><subparagraph id="HB3FF7887A16C47D0ACC1107F5A058B5F" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The requirements described in this subparagraph with respect to any qualified alternative fuel vehicle refueling project are that the taxpayer shall ensure that any laborers and mechanics employed by the taxpayer or any contractor or subcontractor in the construction of any qualified alternative fuel vehicle refueling property which is part of such project shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality in which such project is located as most recently determined by the Secretary of Labor, in accordance with subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code.</text></subparagraph><subparagraph id="HBB91C3F465014DC39C35347CAFF41054" commented="no"><enum>(B)</enum><header>Correction and penalty related to failure to satisfy wage requirements</header><text display-inline="yes-display-inline">Rules similar to the rules of section 45(b)(7)(B) shall apply.</text></subparagraph></paragraph><paragraph id="H36EC08A4C7994E52B2653F4B75BAB76E" commented="no"><enum>(3)</enum><header>Apprenticeship requirements</header><text display-inline="yes-display-inline">Rules similar to the rules of section 45(b)(8) shall apply.</text></paragraph><paragraph id="H1E2E52A9D5C24965BFA8D6749150CF25" commented="no"><enum>(4)</enum><header>Regulations and guidance</header><text display-inline="yes-display-inline">The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of administering the requirements of this subsection.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H854F36E8D8D6474F8A22E65E01E350C7" commented="no"><enum>(e)</enum><header>Eligible census tracts</header><text>Subsection (c) of <external-xref legal-doc="usc" parsable-cite="usc/26/30C">section 30C</external-xref>, as amended by subsection (b)(3), is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id23285D64C209448FB0E18F04CF5755D0" changed="added" reported-display-style="italic"><paragraph commented="no" id="id6D81C358CF5541779EC3BB8DE35CF9DD"><enum>(3)</enum><header>Property required to be located in eligible census tracts</header><subparagraph commented="no" id="idE46B54B0393F49E99FE92F87A4A82AF2"><enum>(A)</enum><header>In general</header><text>Property shall not be treated as qualified alternative fuel vehicle refueling property unless such property is placed in service in an eligible census tract.</text></subparagraph><subparagraph commented="no" id="idABED025C205F4747B68B24B305E460D2"><enum>(B)</enum><header>Eligible census tract</header><clause commented="no" id="id65707BDD71814CFE822C6595ACD003D9"><enum>(i)</enum><header>In general</header><text>For purposes of this paragraph, the term <term>eligible census tract</term> means any population census tract which—</text><subclause commented="no" id="id7284625049F849DE92834E664656F2D2"><enum>(I)</enum><text>is described in section 45D(e), or</text></subclause><subclause commented="no" id="id221A7213B07D4AC086269AD218591556"><enum>(II)</enum><text>is not an urban area.</text></subclause></clause><clause commented="no" id="id487ADE4A2C47409A90AD03A243FC0ABB"><enum>(ii)</enum><header>Urban area</header><text>For purposes of clause (i)(II), the term <term>urban area</term> means a census tract (as defined by the Bureau of the Census) which, according to the most recent decennial census, has been designated as an urban area by the Secretary of Commerce.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="id2A99EC84DBE74D8EB9E0A667460205D1"><enum>(f)</enum><header>Effective date</header><paragraph commented="no" id="id3507F0B4672645E498599615ADA6503B"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided in paragraph (2), the amendments made by this section shall apply to property placed in service after December 31, 2022.</text></paragraph><paragraph commented="no" id="id8550CA0A50484ED284D81C791FBC191D"><enum>(2)</enum><header>Extension</header><text>The amendments made by subsection (a) shall apply to property placed in service after December 31, 2021. </text></paragraph></subsection></section></part><part id="HCBDCF91511A648EE81D637902E889C3F"><enum>5<?LEXA-Enum 5?></enum><header>Investment in Clean Energy Manufacturing and Energy Security</header><section id="HF3E71E495D0646B88F07E3CD9FC3E9DC"><enum>13501.</enum><header>Extension of the advanced energy project credit</header><subsection id="H7C4D7E69FF0D4EDFB60F9DC85F58FDEB"><enum>(a)</enum><header>Extension of credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48C">Section 48C</external-xref> is amended by redesignating subsection (e) as subsection (f) and by inserting after subsection (d) the following new subsection:</text><quoted-block id="HD89401A5C77240739CF28393AD81422D" style="OLC" changed="added" reported-display-style="italic"><subsection id="HCD94FF84FA864D4B92993AB36F3A9686" commented="no"><enum>(e)</enum><header>Additional allocations</header><paragraph id="H6E4C9F519A8345A88EC65F0BB817FC88" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 180 days after the date of enactment of this subsection, the Secretary shall establish a program to consider and award certifications for qualified investments eligible for credits under this section to qualifying advanced energy project sponsors.</text></paragraph><paragraph id="H6AA8326567E343B7AE83808520E54DDE" commented="no"><enum>(2)</enum><header>Limitation</header><text>The total amount of credits which may be allocated under the program established under paragraph (1) shall not exceed $10,000,000,000, of which not greater than $6,000,000,000 may be allocated to qualified investments which are not located within a census tract which—</text><subparagraph commented="no" id="idFFD91A40BA7D444993F4BFFD53E30867"><enum>(A)</enum><text>is described in clause (iii) of section 45(b)(11)(B), and</text></subparagraph><subparagraph commented="no" id="id0628811DE28342BBB1F8D26996004B21"><enum>(B)</enum><text>prior to the date of enactment of this subsection, had no project which received a certification and allocation of credits under subsection (d).</text></subparagraph></paragraph><paragraph id="H529DEC1F7FEF437C992D162085E428AF"><enum>(3)</enum><header>Certifications</header><subparagraph id="H8BFEF9ABB1A54713855D94B6E3BBED7A"><enum>(A)</enum><header>Application requirement</header><text>Each applicant for certification under this subsection shall submit an application at such time and containing such information as the Secretary may require.</text></subparagraph><subparagraph id="H408BC49A28DA4C57A311880C99BA9007"><enum>(B)</enum><header>Time to meet criteria for certification</header><text>Each applicant for certification shall have 2 years 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="H6CDB0CA0B2E94404AD02E2D8883C0D51"><enum>(C)</enum><header>Period of issuance</header><text>An applicant which receives a certification shall have 2 years from the date of issuance of the certification in order to place the project in service and to notify the Secretary that such project has been so placed in service, and if such project is not placed in service by that time period, then the certification shall no longer be valid. If any certification is revoked under this subparagraph, the amount of the limitation under paragraph (2) shall be increased by the amount of the credit with respect to such revoked certification.</text></subparagraph><subparagraph id="idDBF4A1DCAE2E42588605995DF0374BDB"><enum>(D)</enum><header>Location of project</header><text>In the case of an applicant which receives a certification, if the Secretary determines that the project has been placed in service at a location which is materially different than the location specified in the application for such project, the certification shall no longer be valid.</text></subparagraph></paragraph><paragraph id="H5B466014E59840B98D96A42FDEE635C9"><enum>(4)</enum><header>Credit rate conditioned upon wage and apprenticeship requirements</header><subparagraph id="HEBE976E347A44C919A6C9EFEB715E35C"><enum>(A)</enum><header>Base rate</header><text display-inline="yes-display-inline">For purposes of allocations under this subsection, the amount of the credit determined under subsection (a) shall be determined by substituting <quote>6 percent</quote> for <quote>30 percent</quote>. </text></subparagraph><subparagraph id="H6DB62A00ED1E44B099C47CCDF3B60626"><enum>(B)</enum><header>Alternative rate</header><text display-inline="yes-display-inline">In the case of any project which satisfies the requirements of paragraphs (5)(A) and (6), subparagraph (A) shall not apply. </text></subparagraph></paragraph><paragraph id="HD9518125FD9849DBA78CA94B1CAD5E7C"><enum>(5)</enum><header>Prevailing wage requirements</header><subparagraph id="H286D4C46BC62447DA6179DBAD55D93D3"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The requirements described in this subparagraph with respect to a project are that the taxpayer shall ensure that any laborers and mechanics employed by the taxpayer or any contractor or subcontractor in the re-equipping, expansion, or establishment of a manufacturing facility shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality in which such project is located as most recently determined by the Secretary of Labor, in accordance with subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code.</text></subparagraph><subparagraph id="HD4401D62154940A68BC49207E7D4F0E3"><enum>(B)</enum><header>Correction and penalty related to failure to satisfy wage requirements</header><text>Rules similar to the rules of section 45(b)(7)(B) shall apply.</text></subparagraph></paragraph><paragraph id="HE1543A24D3754F63AD5796C27C688CDE"><enum>(6)</enum><header>Apprenticeship requirements</header><text display-inline="yes-display-inline">Rules similar to the rules of section 45(b)(8) shall apply.</text></paragraph><paragraph id="idEB2B0B0C0E604090ADFFBF77C709DDAA"><enum>(7)</enum><header>Disclosure of allocations</header><text display-inline="yes-display-inline">The Secretary shall, upon making a certification under this subsection, publicly disclose the identity of the applicant and the amount of the credit with respect to such applicant.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H0EBB0E93B6E74DDC8C666AF012EC7FBE"><enum>(b)</enum><header>Modification of qualifying advanced energy projects</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48C">Section 48C(c)(1)(A)</external-xref> is amended—</text><paragraph commented="no" id="id5C2F645B1A664B32AF144272B1294680"><enum>(1)</enum><text>by inserting <quote>, any portion of the qualified investment of which is certified by the Secretary under subsection (e) as eligible for a credit under this section</quote> after <quote>means a project</quote>,</text></paragraph><paragraph commented="no" id="id88351213FE874800AEA383459D2CD101"><enum>(2)</enum><text>in clause (i)—</text><subparagraph commented="no" id="id799F782C894E48C9B6DF924CFAA81243"><enum>(A)</enum><text>by striking <quote>a manufacturing facility for the production of</quote> and inserting <quote>an industrial or manufacturing facility for the production or recycling of</quote>,</text></subparagraph><subparagraph commented="no" id="id1CFC1B438D1D4AB2B248FA34D2D40833"><enum>(B)</enum><text>in clause (I), by inserting <quote>water,</quote> after <quote>sun,</quote>,</text></subparagraph><subparagraph commented="no" id="idFC2A8F2A43AB42B18BAD2114FC6EB92A"><enum>(C)</enum><text>in clause (II), by striking <quote>an energy storage system for use with electric or hybrid-electric motor vehicles</quote> and inserting <quote>energy storage systems and components</quote>,</text></subparagraph><subparagraph commented="no" id="id08D1772FDE35401FB5A0CD7C5E821FC6"><enum>(D)</enum><text>in clause (III), by striking <quote>grids to support the transmission of intermittent sources of renewable energy, including storage of such energy</quote> and inserting <quote>grid modernization equipment or components</quote>,</text></subparagraph><subparagraph commented="no" id="idF6D90D44C4914309A7BD082D8E938C1F"><enum>(E)</enum><text>in subclause (IV), by striking <quote>and sequester carbon dioxide emissions</quote> and inserting <quote>, remove, use, or sequester carbon oxide emissions</quote>,</text></subparagraph><subparagraph commented="no" id="id2DCC49B992034E22990827511D41BBC9"><enum>(F)</enum><text>by striking subclause (V) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id5774521C61C54979BF4C1EFE4B4E95C9" changed="added" reported-display-style="italic"><subclause commented="no" id="id432FC812C42F4897AE3867E3FD87E64A"><enum>(V)</enum><text>equipment designed to refine, electrolyze, or blend any fuel, chemical, or product which is—</text><item commented="no" id="id6A443FD12BFB4A1CA8639EB24C842D6B"><enum>(aa)</enum><text>renewable, or</text></item><item commented="no" id="id87938C771EDC45D99B17029AA89C4566"><enum>(bb)</enum><text>low-carbon and low-emission,</text></item></subclause><after-quoted-block>,</after-quoted-block></quoted-block></subparagraph><subparagraph commented="no" id="idD35307901ED24563A43B68BA5D9DDC88"><enum>(G)</enum><text>by striking subclause (VI),</text></subparagraph><subparagraph commented="no" id="idEAEDDCC1C2D443A5AF91C4FC6F1FA0C8"><enum>(H)</enum><text>by redesignating subclause (VII) as subclause (IX),</text></subparagraph><subparagraph commented="no" id="id34754A7D772F4B2CBED0D1BE7AF132F3"><enum>(I)</enum><text>by inserting after subclause (V) the following new subclauses:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id2B735509B7CE4FF1B627E5854D2D05AE" changed="added" reported-display-style="italic"><subclause commented="no" id="id879171FCB41D46668C39EFBE6A4F2091"><enum>(VI)</enum><text>property designed to produce energy conservation technologies (including residential, commercial, and industrial applications),</text></subclause><subclause commented="no" id="idCB77419D439F48058037D9DE15D7C779"><enum>(VII)</enum><text>light-, medium-, or heavy-duty electric or fuel cell vehicles, as well as—</text><item commented="no" id="idF371491750F8477E8FCA40CABF5FC210"><enum>(aa)</enum><text>technologies, components, or materials for such vehicles, and</text></item><item commented="no" id="idF2B5553613894C51ADB945B6604BCC62"><enum>(bb)</enum><text>associated charging or refueling infrastructure,</text></item></subclause><subclause commented="no" id="id40D6300996724F07918F952994EAD93B"><enum>(VIII)</enum><text>hybrid vehicles with a gross vehicle weight rating of not less than 14,000 pounds, as well as technologies, components, or materials for such vehicles, or</text></subclause><after-quoted-block>, and</after-quoted-block></quoted-block></subparagraph><subparagraph commented="no" id="idA31577F54FBC458FB07D4F23DC4360C1"><enum>(J)</enum><text>in subclause (IX), as so redesignated, by striking <quote>and</quote> at the end, and</text></subparagraph></paragraph><paragraph commented="no" id="id8D2547AA1E6040619522DFB689F5DEC6"><enum>(3)</enum><text>by striking clause (ii) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idB146240BCD7D49E4A9C0F44D4C09CDC2" changed="added" reported-display-style="italic"><clause commented="no" id="id41ABDC9A97A24DDD876D9F6D776536F8"><enum>(ii)</enum><text>which re-equips an industrial or manufacturing facility with equipment designed to reduce greenhouse gas emissions by at least 20 percent through the installation of—</text><subclause commented="no" id="id9A13ADFF50DD4652A2B0EF9CE3653734"><enum>(I)</enum><text>low- or zero-carbon process heat systems,</text></subclause><subclause commented="no" id="id6ED68678D2814DDC99482B6FB3ACB10A"><enum>(II)</enum><text>carbon capture, transport, utilization and storage systems,</text></subclause><subclause commented="no" id="id05E8964F015E4C9AB8F730D8A82789F2"><enum>(III)</enum><text>energy efficiency and reduction in waste from industrial processes, or</text></subclause><subclause commented="no" id="idC4CBD460D9D24C35A154853218221FD7"><enum>(IV)</enum><text>any other industrial technology designed to reduce greenhouse gas emissions, as determined by the Secretary, or</text></subclause></clause><clause commented="no" id="id0BD4DA25651A44C4A5B1EF4AEC452B29"><enum>(iii)</enum><text>which re-equips, expands, or establishes an industrial facility for the processing, refining, or recycling of critical materials (as defined in section 7002(a) of the Energy Act of 2020 (<external-xref legal-doc="usc" parsable-cite="usc/30/1606">30 U.S.C. 1606(a)</external-xref>).</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="HC3743CDA671C41E0AEC684416765A8BC"><enum>(c)</enum><header>Conforming amendment</header><text>Subparagraph (A) of <external-xref legal-doc="usc" parsable-cite="usc/26/48C">section 48C(c)(2)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id0CE9FA4A0BF54C53B4DFE411B042F79C" changed="added" reported-display-style="italic"><subparagraph id="id7A2350D8C99A43C99534FB0E6A74A0DD"><enum>(A)</enum><text>which is necessary for—</text><clause id="idD71321EB4FD1415E9738A4AA8689B5A8"><enum>(i)</enum><text>the production or recycling of property described in clause (i) of paragraph (1)(A),</text></clause><clause id="idC0F06EABB84C41528993ACCF40084F6F"><enum>(ii)</enum><text>re-equipping an industrial or manufacturing facility described in clause (ii) of such paragraph, or</text></clause><clause id="id83901452425A49C0AD005E05BA712949" commented="no"><enum>(iii)</enum><text>re-equipping, expanding, or establishing an industrial facility described in clause (iii) of such paragraph,</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id3B4761667131488B9334F0FC64B872CE"><enum>(d)</enum><header>Denial of double benefit</header><text>48C(f), as redesignated by this section, is amended by striking <quote>or 48B</quote> and inserting <quote>48B, 48E, 45Q, or 45V</quote>.</text></subsection><subsection id="HB4F18D0FF2694217B92AEA36020805A7"><enum>(e)</enum><header>Effective date</header><text>The amendments made by this section shall take effect on January 1, 2023.</text></subsection></section><section section-type="subsequent-section" id="H71B434EE56C74913A3FC96E7D9612A2D" commented="no"><enum>13502.</enum><header>Advanced manufacturing production credit</header><subsection id="H459C54F2381A425882B1A716F4234C13" commented="no"><enum>(a)</enum><header>In general</header><text>Subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by adding at the end the following new section:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HB16FC2B2512A4707A9DBB7601BDF58DD" changed="added" reported-display-style="italic"><section id="HB774CBD50EB94D498EE0C11FAC97E88D" commented="no"><enum>45X.</enum><header>Advanced manufacturing production credit</header><subsection id="H673CF7C9834C443BB3BBF8AFC5F7928E" commented="no"><enum>(a)</enum><header>In general</header><paragraph id="H693407D233C3416FBB81F8E766E5DB3C" commented="no"><enum>(1)</enum><header>Allowance of credit</header><text>For purposes of section 38, the advanced manufacturing production credit for any taxable year is an amount equal to the sum of the credit amounts determined under subsection (b) with respect to each eligible component which is—</text><subparagraph id="H0FB6C0BC79A744559E79F390C0A249E6" commented="no"><enum>(A)</enum><text>produced by the taxpayer, and</text></subparagraph><subparagraph id="H3607638313AD4C4BA19D66415ABAB93E" commented="no"><enum>(B)</enum><text>during the taxable year, sold by such taxpayer to an unrelated person.</text></subparagraph></paragraph><paragraph id="HB7EB366095944A47AC2D68011DC9D1D7" commented="no"><enum>(2)</enum><header>Production and sale must be in trade or business</header><text>Any eligible component produced and sold by the taxpayer shall be taken into account only if the production and sale described in paragraph (1) is in a trade or business of the taxpayer.</text></paragraph><paragraph id="HCFB319B58AED41478C887B7E76E71488"><enum>(3)</enum><header>Unrelated person</header><subparagraph id="idF53C7A961A2144719C5E88AD44B14DD3"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this subsection, a taxpayer shall be treated as selling components to an unrelated person if such component is sold to such person by a person related to the taxpayer. </text></subparagraph><subparagraph id="id15B8079A7254419F85B4B5CC4C737659"><enum>(B)</enum><header>Election</header><clause id="id1C56AC8C90974BB49332013611B7B4E6"><enum>(i)</enum><header>In general</header><text>At the election of the taxpayer (in such form and manner as the Secretary may prescribe), a sale of components by such taxpayer to a related person shall be deemed to have been made to an unrelated person.</text></clause><clause id="id5353A3471ABF4E6E81ED812CF097E66B"><enum>(ii)</enum><header>Requirement</header><text>As a condition of, and prior to, any election described in clause (i), the Secretary may require such information or registration as the Secretary deems necessary for purposes of preventing duplication, fraud, or any improper or excessive amount determined under paragraph (1).</text></clause></subparagraph></paragraph></subsection><subsection id="HF32938C41A664265A1BDBE88EEE48401" commented="no"><enum>(b)</enum><header>Credit amount</header><paragraph id="H97C3F8D07A4349FEAA97502CB805C9CF" commented="no"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (3), the amount determined under this subsection with respect to any eligible component, including any eligible component it incorporates, shall be equal to—</text><subparagraph id="H41E107175BCD418EB564027FC8B90CCB" commented="no"><enum>(A)</enum><text>in the case of a thin film photovoltaic cell or a crystalline photovoltaic cell, an amount equal to the product of—</text><clause id="HFC5A8F72A44E48AA81140A2A764A6E66" commented="no"><enum>(i)</enum><text>4 cents, multiplied by</text></clause><clause id="H092D1FD35C514B659FBB99EEAE0F7166" commented="no"><enum>(ii)</enum><text>the capacity of such cell (expressed on a per direct current watt basis),</text></clause></subparagraph><subparagraph id="H505E354888034388955356F2B3AAC9DC" commented="no"><enum>(B)</enum><text>in the case of a photovoltaic wafer, $12 per square meter,</text></subparagraph><subparagraph id="HCC57FB039E554E20B3B2060B92F0D86D" commented="no"><enum>(C)</enum><text>in the case of solar grade polysilicon, $3 per kilogram,</text></subparagraph><subparagraph commented="no" id="idC0152B4DFAF54D3495E48FA552B8306B"><enum>(D)</enum><text>in the case of a polymeric backsheet, 40 cents per square meter,</text></subparagraph><subparagraph id="H88F85B8892324636AB16E54C58A43619" commented="no"><enum>(E)</enum><text>in the case of a solar module, an amount equal to the product of—</text><clause id="HD303DCFB75F243E0BE24D1B82EA3A2D2" commented="no"><enum>(i)</enum><text>7 cents, multiplied by</text></clause><clause id="H5945481DA299443AB9903FED4F413AEE" commented="no"><enum>(ii)</enum><text>the capacity of such module (expressed on a per direct current watt basis),</text></clause></subparagraph><subparagraph id="H7E251F1DBDCF472E849D168F57EA20CC" commented="no"><enum>(F)</enum><text>in the case of a wind energy component—</text><clause commented="no" id="idAC2EAE3801D24617AE0FF2DC1F19927D"><enum>(i)</enum><text>if such component is a related offshore wind vessel, an amount equal to 10 percent of the sales price of such vessel, and</text></clause><clause commented="no" id="id6FF1062A4D21484BAEDCCC1FA77E32E1"><enum>(ii)</enum><text>if such component is not described in clause (i), an amount equal to the product of—</text><subclause id="H5F8F796255B849CA901EAC4C741F04FE" commented="no"><enum>(I)</enum><text>the applicable amount with respect to such component (as determined under paragraph (2)(A)), multiplied by</text></subclause><subclause id="H3183D46F823F444D8449EDB29D5B3114" commented="no"><enum>(II)</enum><text>the total rated capacity (expressed on a per watt basis) of the completed wind turbine for which such component is designed,</text></subclause></clause></subparagraph><subparagraph id="id50FA4CD3A9E7441EAFEF238132FB53FB"><enum>(G)</enum><text>in the case of a torque tube, 87 cents per kilogram,</text></subparagraph><subparagraph id="id0A3788B5AF4C4D6DA13C1BA6799F8C37"><enum>(H)</enum><text>in the case of a structural fastener, $2.28 per kilogram,</text></subparagraph><subparagraph id="id3C66BF89AB0C4460801D3AB9B6888E0C"><enum>(I)</enum><text>in the case of an inverter, an amount equal to the product of—</text><clause id="idE7EB70B45C064FE18BC6B34184AD0A0E"><enum>(i)</enum><text>the applicable amount with respect to such inverter (as determined under paragraph (2)(B)), multiplied by</text></clause><clause id="id8887B5DA0DC2438F92B4FBE22AD55E47"><enum>(ii)</enum><text>the capacity of such inverter (expressed on a per alternating current watt basis),</text></clause></subparagraph><subparagraph id="id1A97CC5CE7404E0FA910D6E0E621896F"><enum>(J)</enum><text>in the case of electrode active materials, an amount equal to 10 percent of the costs incurred by the taxpayer with respect to production of such materials,</text></subparagraph><subparagraph id="id4CD11817471D485387E2C4C983B53E04"><enum>(K)</enum><text>in the case of a battery cell, an amount equal to the product of—</text><clause id="idBB2C0EBC088641D3864B27502EADE1FA"><enum>(i)</enum><text>$35, multiplied by</text></clause><clause id="idB4A65F6B0DA44296987C2DE6A56C5560"><enum>(ii)</enum><text>subject to paragraph (4), the capacity of such battery cell (expressed on a kilowatt-hour basis),</text></clause></subparagraph><subparagraph id="id0ABF56D4CCA3439BA966DD68293CEE60"><enum>(L)</enum><text>in the case of a battery module, an amount equal to the product of—</text><clause id="idCE369C5712AE489FA5BD0FA5A17708CB"><enum>(i)</enum><text>$10 (or, in the case of a battery module which does not use battery cells, $45), multiplied by</text></clause><clause id="id1BF6F8627C844D2797852DD12CECC2E4"><enum>(ii)</enum><text>subject to paragraph (4), the capacity of such battery module (expressed on a kilowatt-hour basis), and</text></clause></subparagraph><subparagraph id="id695D518254A142CDBAB4A66C73AF1D22"><enum>(M)</enum><text>in the case of any applicable critical mineral, an amount equal to 10 percent of the costs incurred by the taxpayer with respect to production of such mineral.</text></subparagraph></paragraph><paragraph id="idC4E022FA9BD341E6A2CD9A9DEDC0B5E0"><enum>(2)</enum><header>Applicable amounts</header><subparagraph id="H5C7B92A514EA4F87B21DAD4B5E4ADCBC" commented="no"><enum>(A)</enum><header>Wind energy components</header><text>For purposes of paragraph (1)(F)(ii), the applicable amount with respect to any wind energy component shall be—</text><clause id="H02A88A126DD848F68FDACEA53C90EDDA" commented="no"><enum>(i)</enum><text>in the case of a blade, 2 cents,</text></clause><clause id="H8683ECDF15CB46E1B84D8B2856A2E2D5" commented="no"><enum>(ii)</enum><text>in the case of a nacelle, 5 cents,</text></clause><clause id="H26DBE871DB3C4EEBB4C735B5C50CDFCF" commented="no"><enum>(iii)</enum><text>in the case of a tower, 3 cents, and</text></clause><clause id="H184B09E0DED640CEBCDA17D56A0C92FF" commented="no"><enum>(iv)</enum><text>in the case of an offshore wind foundation—</text><subclause id="H803A20B5688D44AD97ADABD98155CF1A" commented="no"><enum>(I)</enum><text>which uses a fixed platform, 2 cents, or</text></subclause><subclause id="H44D54F7AB08A495CB24E34782C79A131" commented="no"><enum>(II)</enum><text>which uses a floating platform, 4 cents. </text></subclause></clause></subparagraph><subparagraph id="id5DF384C1EFD344329A33506E01BE85B1"><enum>(B)</enum><header>Inverters</header><text>For purposes of paragraph (1)(I), the applicable amount with respect to any inverter shall be—</text><clause id="id984EC5F145384F31A04BB043823CADCC"><enum>(i)</enum><text>in the case of a central inverter, 0.25 cents,</text></clause><clause id="id7434C1A736F64C52A6243839F0D0ACE4"><enum>(ii)</enum><text>in the case of a utility inverter, 1.5 cents,</text></clause><clause id="idAC2FDE9A544A403ABE78D129DDD937EB"><enum>(iii)</enum><text>in the case of a commercial inverter, 2 cents,</text></clause><clause id="idE5BD507C2CEC448F9C598C7AA4DEA6AC"><enum>(iv)</enum><text>in the case of a residential inverter, 6.5 cents, and</text></clause><clause id="id653595AC21334D8F83BD6CA011A85273"><enum>(v)</enum><text>in the case of a microinverter or a distributed wind inverter, 11 cents. </text></clause></subparagraph></paragraph><paragraph id="HB930B77DE5EA4241B1BAB8EBCA572632" commented="no"><enum>(3)</enum><header>Phase out</header><subparagraph id="H4F133C03D8E24641BCFAE56A3CC91ADD" commented="no"><enum>(A)</enum><header>In general</header><text>Subject to subparagraph (C), in the case of any eligible component sold after December 31, 2029, the amount determined under this subsection with respect to such component shall be equal to the product of—</text><clause id="HAEE83A233E4E42E7899AAD35BCFF03B4" commented="no"><enum>(i)</enum><text>the amount determined under paragraph (1) with respect to such component, as determined without regard to this paragraph, multiplied by</text></clause><clause id="HBC3489CB943B40298479488B9F5AF156" commented="no"><enum>(ii)</enum><text>the phase out percentage under subparagraph (B).</text></clause></subparagraph><subparagraph id="H0087FCD8C851413B92078785111B3B7E" commented="no"><enum>(B)</enum><header>Phase out percentage</header><text>The phase out percentage under this subparagraph is equal to—</text><clause id="H3EAE5137D12D496DA7B584A67DC7D995" commented="no"><enum>(i)</enum><text>in the case of an eligible component sold during calendar year 2030, 75 percent,</text></clause><clause id="H4FCDBF651B3647768231777E6B6B1289" commented="no"><enum>(ii)</enum><text>in the case of an eligible component sold during calendar year 2031, 50 percent,</text></clause><clause id="H8511435D545E4D51B29E7BF8BBCC5F09" commented="no"><enum>(iii)</enum><text>in the case of an eligible component sold during calendar year 2032, 25 percent,</text></clause><clause id="HA0CEC337451247CBBF5ACB36C088DBF1" commented="no"><enum>(iv)</enum><text>in the case of an eligible component sold after December 31, 2032, 0 percent.</text></clause></subparagraph><subparagraph commented="no" id="idB9ECFF66C10E4641A83998BA0474F795"><enum>(C)</enum><header>Exception</header><text>For purposes of determining the amount under this subsection with respect to any applicable critical mineral, this paragraph shall not apply.</text></subparagraph></paragraph><paragraph commented="no" id="id1CBD2A88A6BF4CFE9FE7E51F590EBEBC"><enum>(4)</enum><header>Limitation on capacity of battery cells and battery modules</header><subparagraph commented="no" id="id594D12D010E94A549F9D281BCBB647F7"><enum>(A)</enum><header>In general</header><text>For purposes of subparagraph (K)(ii) or (L)(ii) of paragraph (1), the capacity determined under either subparagraph with respect to a battery cell or battery module shall not exceed a capacity-to-power ratio of 100:1.</text></subparagraph><subparagraph commented="no" id="id2DFA60FE248C4C41ADCB536D42780B47"><enum>(B)</enum><header>Capacity-to-power ratio</header><text>For purposes of this paragraph, the term <term>capacity-to-power ratio</term> means, with respect to a battery cell or battery module, the ratio of the capacity of such cell or module to the maximum discharge amount of such cell or module.</text></subparagraph></paragraph></subsection><subsection commented="no" id="HDBE4F0C98E044C5886E5123A06238CD7"><enum>(c)</enum><header>Definitions</header><text>For purposes of this section—</text><paragraph id="HB4B8E7D246364A359A82FACFAB40B499" commented="no"><enum>(1)</enum><header>Eligible component</header><subparagraph id="H787942EA0157469EB7F6FC7F4B050FCC" commented="no"><enum>(A)</enum><header>In general</header><text>The term <term>eligible component</term> means—</text><clause id="H2F22574DEB0F4663A90E96E5ED133454" commented="no"><enum>(i)</enum><text>any solar energy component, </text></clause><clause id="H24ED8F09E1A94421B8EAEEB3C6757EC3" commented="no"><enum>(ii)</enum><text>any wind energy component,</text></clause><clause commented="no" id="id99036EBD6DD44B9585933D54B0680ACB"><enum>(iii)</enum><text>any inverter described in subparagraphs (B) through (G) of paragraph (2),</text></clause><clause commented="no" id="id7F0F0962271B4019A54792F519079C0A"><enum>(iv)</enum><text>any qualifying battery component, and</text></clause><clause commented="no" id="id3880CDFE9DEC46C7826BBADE9458C6CD"><enum>(v)</enum><text>any applicable critical mineral.</text></clause></subparagraph><subparagraph id="H71A6005180C24BB1A6CEB64922921001" commented="no"><enum>(B)</enum><header>Application with other credits</header><text>The term <term>eligible component</term> shall not include any property which is produced at a facility if the basis of any property which is part of such facility is taken into account for purposes of the credit allowed under section 48C after the date of the enactment of this section. </text></subparagraph></paragraph><paragraph id="HECBD46FFB31447A897E283614E51795F" commented="no"><enum>(2)</enum><header>Inverters</header><subparagraph id="idE21EDC518DBF4382B9A4CF11B57A3D25"><enum>(A)</enum><header>In general</header><text>The term <term>inverter</term> means an end product which is suitable to convert direct current electricity from 1 or more solar modules or certified distributed wind energy systems into alternating current electricity.</text></subparagraph><subparagraph id="id4B405D09AF3349E8BC39F927133BF63C"><enum>(B)</enum><header>Central inverter</header><text>The term <term>central inverter</term> means an inverter which is suitable for large utility-scale systems and has a capacity which is greater than 1,000 kilowatts (expressed on a per alternating current watt basis).</text></subparagraph><subparagraph id="id48F35064B3E1476E9694665E9F5C7A35"><enum>(C)</enum><header>Commercial inverter</header><text>The term <term>commercial inverter</term> means an inverter which—</text><clause id="idCC60364D0A6F4F8F81E50EEAACF7CC33"><enum>(i)</enum><text>is suitable for commercial or utility-scale applications,</text></clause><clause id="idFE13F74A19C4462C864F23B6E1F794AC"><enum>(ii)</enum><text>has a rated output of 208, 480, 600, or 800 volt three-phase power, and</text></clause><clause id="id12B7CFA9B1424EE99378E5AD2F1FC0F0"><enum>(iii)</enum><text>has a capacity which is not less than 20 kilowatts and not greater than 125 kilowatts (expressed on a per alternating current watt basis).</text></clause></subparagraph><subparagraph id="id288F03A632C04FCFB57455B578ABA71A"><enum>(D)</enum><header>Distributed wind inverter</header><clause id="id4D3F5BFC6A5E42EC8193E20A063B588A"><enum>(i)</enum><header>In general</header><text>The term <term>distributed wind inverter</term> means an inverter which—</text><subclause id="id64B2882B19A2442C93069482482AA1AF"><enum>(I)</enum><text>is used in a residential or non-residential system which utilizes 1 or more certified distributed wind energy systems, and</text></subclause><subclause id="idCCF279E83B3C462494B852428F92ACF3"><enum>(II)</enum><text>has a rated output of not greater than 150 kilowatts.</text></subclause></clause><clause id="id0422AB11FF514EB7AD7B3C6EDEA1AA46"><enum>(ii)</enum><header>Certified distributed wind energy system</header><text>The term <term>certified distributed wind energy system</term> means a wind energy system which is certified by an accredited certification agency to meet Standard 9.1-2009 of the American Wind Energy Association (including any subsequent revisions to or modifications of such Standard which have been approved by the American National Standards Institute).</text></clause></subparagraph><subparagraph id="idF1DE679A0BBE41B2AA720BC6571B9633"><enum>(E)</enum><header>Microinverter</header><text>The term <term>microinverter</term> means an inverter which—</text><clause id="idA4E5C4504F15465A99421577E824D4F5"><enum>(i)</enum><text>is suitable to connect with one solar module,</text></clause><clause id="idA5C54852DB65449F9C53257DD9221D53"><enum>(ii)</enum><text>has a rated output of—</text><subclause id="idB495829D730E4920AB34685CDC7D4999"><enum>(I)</enum><text>120 or 240 volt single-phase power, or </text></subclause><subclause id="id3E26A78DB7BC4065A833E4E99D4ED79C"><enum>(II)</enum><text>208 or 480 volt three-phase power, and</text></subclause></clause><clause id="id0CCBAA05783C49A6B37CA732757C9459"><enum>(iii)</enum><text>has a capacity which is not greater than 650 watts (expressed on a per alternating current watt basis).</text></clause></subparagraph><subparagraph id="id7F60D28020AC40478221133B8E43B945"><enum>(F)</enum><header>Residential inverter</header><text>The term <term>residential inverter</term> means an inverter which—</text><clause id="idD835C59A1EE844C49B615B26ACDC434C"><enum>(i)</enum><text>is suitable for a residence,</text></clause><clause id="id59B3677D89E44FA1979853EE95A77A69"><enum>(ii)</enum><text>has a rated output of 120 or 240 volt single-phase power, and</text></clause><clause id="id7133D25137944111965B980C692C6C6A"><enum>(iii)</enum><text>has a capacity which is not greater than 20 kilowatts (expressed on a per alternating current watt basis).</text></clause></subparagraph><subparagraph id="id82C3BA62AF5D48F189828507AABB5705"><enum>(G)</enum><header>Utility inverter</header><text>The term <term>utility inverter</term> means an inverter which—</text><clause id="id2C279D9B216F4F208AF3BA53D4770552"><enum>(i)</enum><text>is suitable for commercial or utility-scale systems,</text></clause><clause id="id70FEB382AE224E0AA0F63590DA1583C2"><enum>(ii)</enum><text>has a rated output of not less than 600 volt three-phase power, and</text></clause><clause id="idF47588844AD54D498A82102FE7165AB4"><enum>(iii)</enum><text>has a capacity which is greater than 125 kilowatts and not greater than 1000 kilowatts (expressed on a per alternating current watt basis) </text></clause></subparagraph></paragraph><paragraph commented="no" id="idD8ECF2C2F6884081B47DA1858367F70B"><enum>(3)</enum><header>Solar energy component</header><subparagraph id="H2E4B3B266ABE45EBBBA20283D7CC1DF0" commented="no"><enum>(A)</enum><header>In general</header><text>The term <term>solar energy component</term> means any of the following:</text><clause id="HED7479B0A3994E6DB1AB1179DEBFC059" commented="no"><enum>(i)</enum><text>Solar modules.</text></clause><clause id="H50AC97E904CA41E08A4AAD4B0D55A4BF" commented="no"><enum>(ii)</enum><text>Photovoltaic cells.</text></clause><clause id="H17E3E1CAAED54BA5B1CE138CDCE4F9EF" commented="no"><enum>(iii)</enum><text>Photovoltaic wafers.</text></clause><clause id="HB7135B9E73A94052B1D32E6D45CA4BD4" commented="no"><enum>(iv)</enum><text>Solar grade polysilicon.</text></clause><clause id="idC18450FF9D1D4646B12C466EEF1E2991"><enum>(v)</enum><text>Torque tubes or structural fasteners.</text></clause><clause id="idC75664824422434DA6AE7475100218A3"><enum>(vi)</enum><text>Polymeric backsheets.</text></clause></subparagraph><subparagraph id="H26BC38A6A61A4F4592D3BAA8197063D4" commented="no"><enum>(B)</enum><header>Associated definitions</header><clause id="H5E5AEEAA792E47C18E29BC1A786C7D1F" commented="no"><enum>(i)</enum><header>Photovoltaic cell</header><text>The term <term>photovoltaic cell</term> means the smallest semiconductor element of a solar module which performs the immediate conversion of light into electricity.</text></clause><clause id="HA7F37A4F59144A54ACFBB2153EA97772" commented="no"><enum>(ii)</enum><header>Photovoltaic wafer</header><text>The term <term>photovoltaic wafer</term> means a thin slice, sheet, or layer of semiconductor material of at least 240 square centimeters—</text><subclause commented="no" id="idFF50EA7ED604428A9FC4BC8B5691AC33"><enum>(I)</enum><text>produced by a single manufacturer either—</text><item id="H860C2AD5E78D486DAC3AA20B9B8220D4" commented="no"><enum>(aa)</enum><text>directly from molten or evaporated solar grade polysilicon or deposition of solar grade thin film semiconductor photon absorber layer, or </text></item><item id="H694230E007254B22B06CAD20F46736A9" commented="no"><enum>(bb)</enum><text>through formation of an ingot from molten polysilicon and subsequent slicing, and</text></item></subclause><subclause id="H13B489F8C6C8485BBCB4AA7139AF9EAB" commented="no"><enum>(II)</enum><text>which comprises the substrate or absorber layer of one or more photovoltaic cells.</text></subclause></clause><clause id="HEAD4E3ED1E7E48D9B78D3D2568348402" commented="no"><enum>(iii)</enum><header>Polymeric backsheet</header><text>The term <term>polymeric backsheet</term> means a sheet on the back of a solar module which acts as an electric insulator and protects the inner components of such module from the surrounding environment.</text></clause><clause commented="no" id="id38CCF3255FE24A8EA475FFFC3E98EF8F"><enum>(iv)</enum><header>Solar grade polysilicon</header><text>The term <term>solar grade polysilicon</term> means silicon which is—</text><subclause id="HFD7C24D944534672B24CDA62A7D28793" commented="no"><enum>(I)</enum><text>suitable for use in photovoltaic manufacturing, and </text></subclause><subclause id="H771A0CFA52504EDEB3F6CC4DE876BC62" commented="no"><enum>(II)</enum><text>purified to a minimum purity of 99.999999 percent silicon by mass. </text></subclause></clause><clause id="H340903111E60430FAED03B9F95D080F0" commented="no"><enum>(v)</enum><header>Solar module</header><text>The term <term>solar module</term> means the connection and lamination of photovoltaic cells into an environmentally protected final assembly which is—</text><subclause id="H750177D5BF6C44B5B31E308D07AC4384" commented="no"><enum>(I)</enum><text>suitable to generate electricity when exposed to sunlight, and </text></subclause><subclause id="HABA6DDEC2DDF49F7ACA5ADB75795EA5D" commented="no"><enum>(II)</enum><text>ready for installation without an additional manufacturing process. </text></subclause></clause><clause id="idBC3CB9FB05024B429877E74E4F82B40D"><enum>(vi)</enum><header>Solar tracker</header><text>The term <term>solar tracker</term> means a mechanical system that moves solar modules according to the position of the sun and to increase energy output.</text></clause><clause id="idF71C95120546430794323A8648077607"><enum>(vii)</enum><header>Solar tracker components</header><subclause id="id622EC2E7B49243DBAE04DD2A1EA55329"><enum>(I)</enum><header>Torque tube</header><text>The term <term>torque tube</term> means a structural steel support element (including longitudinal purlins) which— </text><item id="id4F5C321719D14FCFA4AB7663675974A6"><enum>(aa)</enum><text>is part of a solar tracker,</text></item><item id="id264B56D96FD04A04BB5E0C9E7B06DEE7"><enum>(bb)</enum><text>is of any cross-sectional shape,</text></item><item id="idCF11D439AE85428A9076854FBB5F0A55"><enum>(cc)</enum><text>may be assembled from individually manufactured segments,</text></item><item id="id1C93FC53F4A54C4C9C7903B13EDCDABF"><enum>(dd)</enum><text>spans longitudinally between foundation posts,</text></item><item id="id80B602A368C549229B536B89F9A02F5A"><enum>(ee)</enum><text>supports solar panels and is connected to a mounting attachment for solar panels (with or without separate module interface rails), and</text></item><item id="idF02CB028B4794605A3D8495E04CFCEA6"><enum>(ff)</enum><text>is rotated by means of a drive system.</text></item></subclause><subclause id="idE4AF20B4C4AC4F24B8298D7B431390D1"><enum>(II)</enum><header>Structural fastener</header><text>The term <term>structural fastener</term> means a component which is used—</text><item id="id072DF05DAFC14661BA2DB69F70767D4C"><enum>(aa)</enum><text>to connect the mechanical and drive system components of a solar tracker to the foundation of such solar tracker, </text></item><item id="idE73BF7342FEA456D813347E9EC6B570D"><enum>(bb)</enum><text>to connect torque tubes to drive assemblies, or</text></item><item id="id84139620952C4FA28B900FCDD52002C4"><enum>(cc)</enum><text>to connect segments of torque tubes to one another.</text></item></subclause></clause></subparagraph></paragraph><paragraph id="H6EF8D4DCE7AC448D9908AB57F754B004" commented="no"><enum>(4)</enum><header>Wind energy component</header><subparagraph id="H48006DC9ECF94CF984506A514F0C35E9" commented="no"><enum>(A)</enum><header>In general</header><text>The term <term>wind energy component</term> means any of the following:</text><clause id="HE92AEDB7201648D4924411F8B224960B" commented="no"><enum>(i)</enum><text>Blades.</text></clause><clause id="H2C264D8B19D545289BC6A514F0F60623" commented="no"><enum>(ii)</enum><text>Nacelles.</text></clause><clause id="H252F3891E4ED41E3B540A8AEBE8ECDE9" commented="no"><enum>(iii)</enum><text>Towers.</text></clause><clause id="H0C7FBA58D1D244608BB9EEF3E394E3D2" commented="no"><enum>(iv)</enum><text>Offshore wind foundations.</text></clause><clause commented="no" id="idF359F65474134FCEB19EFB7431934EA7"><enum>(v)</enum><text>Related offshore wind vessels.</text></clause></subparagraph><subparagraph id="H956AAB8B82454C05AE4B4E637AB8B46F" commented="no"><enum>(B)</enum><header>Associated definitions</header><clause id="HC5EE27EF7C7F4C34AFA89710822F9B4C" commented="no"><enum>(i)</enum><header>Blade</header><text>The term <term>blade</term> means an airfoil-shaped blade which is responsible for converting wind energy to low-speed rotational energy.</text></clause><clause id="H3CA3DDE64AAB4725A654314EB1738670" commented="no"><enum>(ii)</enum><header>Offshore wind foundation</header><text>The term <term>offshore wind foundation</term> means the component (including transition piece) which secures an offshore wind tower and any above-water turbine components to the seafloor using—</text><subclause id="HDD84625CA1804FECA2FF18288A7F8084" commented="no"><enum>(I)</enum><text>fixed platforms, such as offshore wind monopiles, jackets, or gravity-based foundations, or</text></subclause><subclause id="HEC28529CC47F49DE83EFAD9734E4F264" commented="no"><enum>(II)</enum><text>floating platforms and associated mooring systems.</text></subclause></clause><clause id="HB0F9D9B95E484C59B113C2A05D7455DD" commented="no"><enum>(iii)</enum><header>Nacelle</header><text>The term <term>nacelle</term> means the assembly of the drivetrain and other tower-top components of a wind turbine (with the exception of the blades and the hub) within their cover housing.</text></clause><clause id="id055433bc0269400a9c54483eecd6a839" commented="no" display-inline="no-display-inline"><enum>(iv)</enum><header>Related offshore wind vessel</header><text>The term <term>related offshore wind vessel</term> means any vessel which is purpose-built or retrofitted for purposes of the development, transport, installation, operation, or maintenance of offshore wind energy components.</text></clause><clause id="H8CFE72E853744F40B1B815BBFC38A98E" commented="no"><enum>(v)</enum><header>Tower</header><text>The term <term>tower</term> means a tubular or lattice structure which supports the nacelle and rotor of a wind turbine.</text></clause></subparagraph></paragraph><paragraph commented="no" id="id706F8BC9C31949E8B63821ABDCDB7FEF"><enum>(5)</enum><header>Qualifying battery component</header><subparagraph commented="no" id="id5D7BBB67E49047E391947BC467266F84"><enum>(A)</enum><header>In general</header><text>The term <term>qualifying battery component</term> means any of the following:</text><clause commented="no" id="id3D66F41CF12B4E00849EB9AB39A1D083"><enum>(i)</enum><text>Electrode active materials.</text></clause><clause commented="no" id="id29FF988AC3F740B6856A1D61A0182BA3"><enum>(ii)</enum><text>Battery cells.</text></clause><clause commented="no" id="id2740BC2DA181459894EBDBA4B565253E"><enum>(iii)</enum><text>Battery modules.</text></clause></subparagraph><subparagraph commented="no" id="id2BE7D821A292489B83CF195AD018C0F8"><enum>(B)</enum><header>Associated definitions</header><clause commented="no" id="id6435C5CBEBB24538A936813166008A5C"><enum>(i)</enum><header>Electrode active material</header><text>The term <term>electrode active material</term> means cathode materials, anode materials, anode foils, and electrochemically active materials, including solvents, additives, and electrolyte salts that contribute to the electrochemical processes necessary for energy storage . </text></clause><clause commented="no" id="id69E626FA6FCF4CACAE83B314FB64E576"><enum>(ii)</enum><header>Battery cell</header><text>The term <term>battery cell</term> means an electrochemical cell—</text><subclause commented="no" id="id112D6A4AB7EA42138387F6BD9C305570"><enum>(I)</enum><text>comprised of 1 or more positive electrodes and 1 or more negative electrodes, </text></subclause><subclause commented="no" id="id9321905E43FC4E8DB6D095EE892E7DDE"><enum>(II)</enum><text>with an energy density of not less than 100 watt-hours per liter, and </text></subclause><subclause commented="no" id="id556AF4FD7BC1417B9FB25096ABFE987C"><enum>(III)</enum><text>capable of storing at least 12 watt-hours of energy. </text></subclause></clause><clause commented="no" id="idB9A1BF84BBB3442887A023DEFE0A6D20"><enum>(iii)</enum><header>Battery module</header><text>The term <term>battery module</term> means a module—</text><subclause commented="no" id="id8498AE14AFF143A19E5535D31DC171AE"><enum>(I)</enum><item commented="no" display-inline="yes-display-inline" id="id5FECD4B29C684E3DBF8178AABC48F4B8"><enum>(aa)</enum><text>in the case of a module using battery cells, with 2 or more battery cells which are configured electrically, in series or parallel, to create voltage or current, as appropriate, to a specified end use, or</text></item><item commented="no" indent="up1" id="id114677B0D10E41EB9D7216734B1BEC2F"><enum>(bb)</enum><text>with no battery cells, and</text></item></subclause><subclause commented="no" id="id7EAECEBFC297408E92E284C3304A5098"><enum>(II)</enum><text>with an aggregate capacity of not less than 7 kilowatt-hours (or, in the case of a module for a hydrogen fuel cell vehicle, not less than 1 kilowatt-hour). </text></subclause></clause></subparagraph></paragraph><paragraph commented="no" id="id499131D253A24507BAE4B44D95AC523C"><enum>(6)</enum><header>Applicable critical minerals</header><text>The term <term>applicable critical mineral</term> means any of the following:</text><subparagraph commented="no" id="id09B04D955C89466A824126A57BF779B5"><enum>(A)</enum><header>Aluminum</header><text>Aluminum which is—</text><clause commented="no" id="id591D08AF0F9F4AA195610DA60536138E"><enum>(i)</enum><text>converted from bauxite to a minimum purity of 99 percent alumina by mass, or</text></clause><clause id="id58ce8d1a098840ee8f8e73bf6b575a9c"><enum>(ii)</enum><text>purified to a minimum purity of 99.9 percent aluminum by mass.</text></clause></subparagraph><subparagraph id="id815A197646864C1793244AA58D1F5E6D"><enum>(B)</enum><header>Antimony</header><text>Antimony which is—</text><clause id="id365E9AAA8988406A8F5ADC4189AA1980"><enum>(i)</enum><text>converted to antimony trisulfide concentrate with a minimum purity of 90 percent antimony trisulfide by mass, or</text></clause><clause id="idAB508B65A5BB444591AE79E992E52EB1"><enum>(ii)</enum><text>purified to a minimum purity of 99.65 percent antimony by mass.</text></clause></subparagraph><subparagraph id="id1E23873976D746499C0D5517FF16E62B"><enum>(C)</enum><header>Barite</header><text>Barite which is barium sulfate purified to a minimum purity of 80 percent barite by mass.</text></subparagraph><subparagraph id="idED23D9DE8F054BC88E010FD839540E14"><enum>(D)</enum><header>Beryllium</header><text>Beryllium which is—</text><clause id="idDF2AAE80DC7B4246B2C81B5CDCD3D132"><enum>(i)</enum><text>converted to copper-beryllium master alloy, or</text></clause><clause id="idFBF8F19422DB4A808AD7FB55219AD9FA"><enum>(ii)</enum><text>purified to a minimum purity of 99 percent beryllium by mass.</text></clause></subparagraph><subparagraph id="idEF80C467F9D14FB68912787239BC77EE"><enum>(E)</enum><header>Cerium</header><text>Cerium which is—</text><clause id="id3BD3762097794EFD881C7C1BB2C61132"><enum>(i)</enum><text>converted to cerium oxide which is purified to a minimum purity of 99.9 percent cerium oxide by mass, or</text></clause><clause id="idBBB4F196A323434E8678DFF6C835D8F1"><enum>(ii)</enum><text>purified to a minimum purity of 99 percent cerium by mass.</text></clause></subparagraph><subparagraph id="idA8164736EF8845B2B148F1770531B895"><enum>(F)</enum><header>Cesium</header><text>Cesium which is—</text><clause id="id79B859C614FF4725BF4617BB14CA8B01"><enum>(i)</enum><text>converted to cesium formate or cesium carbonate, or</text></clause><clause id="id49F85FA63BF949E3873284CE6710116E"><enum>(ii)</enum><text>purified to a minimum purity of 99 percent cesium by mass.</text></clause></subparagraph><subparagraph id="id448C5DE956ED4DEAB9A96573B13EDF10"><enum>(G)</enum><header>Chromium</header><text>Chromium which is—</text><clause id="id22A131F100104865A8B68E0DFBE54FD8"><enum>(i)</enum><text>converted to ferrochromium consisting of not less than 60 percent chromium by mass, or</text></clause><clause id="id21BDAFD544D540989AC69A893AB02166"><enum>(ii)</enum><text>purified to a minimum purity of 99 percent chromium by mass.</text></clause></subparagraph><subparagraph id="idEE52403D5549441A96C06374433FAF0F"><enum>(H)</enum><header>Cobalt</header><text>Cobalt which is—</text><clause id="id3F26E8F03CB7448285EB2273E69C673A"><enum>(i)</enum><text>converted to cobalt sulfate, or</text></clause><clause id="idA26B8C58FC364249B204D3E5485181A8"><enum>(ii)</enum><text>purified to a minimum purity of 99.6 percent cobalt by mass.</text></clause></subparagraph><subparagraph id="id234AC90DD8894846ADD85342B1F50367"><enum>(I)</enum><header>Dysprosium</header><text>Dysprosium which is—</text><clause id="id1906204BEF37445C99DEA81D6C71BE6E"><enum>(i)</enum><text>converted to not less than 99 percent pure dysprosium iron alloy by mass, or</text></clause><clause id="id5C8222B212C64FF395F1581E929B6A67"><enum>(ii)</enum><text>purified to a minimum purity of 99 percent dysprosium by mass.</text></clause></subparagraph><subparagraph id="id99B51CAFD4A24534B3B5D837F0C21C80"><enum>(J)</enum><header>Europium</header><text>Europium which is—</text><clause id="id03098C6EB5F441EDB6EEE1F2E50A7CCD"><enum>(i)</enum><text>converted to europium oxide which is purified to a minimum purity of 99.9 percent europium oxide by mass, or</text></clause><clause id="id354A62A8BA134307B2E05C5CD4A40C77"><enum>(ii)</enum><text>purified to a minimum purity of 99 percent by mass.</text></clause></subparagraph><subparagraph id="id79309F97111B456CAF8A694DEC6B3F34"><enum>(K)</enum><header>Fluorspar</header><text>Fluorspar which is—</text><clause id="idBE93AE9F611B4CD695EB7AA9B14B8406"><enum>(i)</enum><text>converted to fluorspar which is purified to a minimum purity of 97 percent calcium fluoride by mass, or</text></clause><clause id="idC6CB8730AC0E4AF48908F88AFB5B4FC9"><enum>(ii)</enum><text>purified to a minimum purity of 99 percent fluorspar by mass.</text></clause></subparagraph><subparagraph id="id5EF5BB8497014325B7C5209A51E569F2"><enum>(L)</enum><header>Gadolinium</header><text>Gadolinium which is—</text><clause id="idC5CE9867591747E297DFD57FF411551F"><enum>(i)</enum><text>converted to gadolinium oxide which is purified to a minimum purity of 99.9 percent gadolinium oxide by mass, or</text></clause><clause id="id59699316169C400B8D29E499AD9D730B"><enum>(ii)</enum><text>purified to a minimum purity of 99 percent gadolinium by mass.</text></clause></subparagraph><subparagraph id="idF74D551EA4AC40C2BFFE7CE3EC237302"><enum>(M)</enum><header>Germanium</header><text>Germanium which is—</text><clause id="idC6B7B9016E3E4AB0AB977316DA30EAF6"><enum>(i)</enum><text>converted to germanium tetrachloride, or</text></clause><clause id="id4987B9E121D54C8F8A04C0863C052AF0"><enum>(ii)</enum><text>purified to a minimum purity of 99.99 percent germanium by mass.</text></clause></subparagraph><subparagraph id="idB935BD40577C4D5A9F4A1E1841D3A6A5"><enum>(N)</enum><header>Graphite</header><text>Graphite which is purified to a minimum purity of 99.9 percent graphitic carbon by mass.</text></subparagraph><subparagraph id="idA3811FBC82AC4E62BA10AE50AFD48AFA"><enum>(O)</enum><header>Indium</header><text>Indium which is—</text><clause id="id250B6B6615F9419EAD00D5A332BB0E1D"><enum>(i)</enum><text>converted to—</text><subclause id="idBFC5E0EB9E114E86A16668BCD711F136"><enum>(I)</enum><text>indium tin oxide, or</text></subclause><subclause id="id14A74FE410EC44D19A44EE268DE12420"><enum>(II)</enum><text>indium oxide which is purified to a minimum purity of 99.9 percent indium oxide by mass, or</text></subclause></clause><clause id="idC89BAA9DAE6A4ADD9763612062B19D6D"><enum>(ii)</enum><text>purified to a minimum purity of 99 percent indium by mass.</text></clause></subparagraph><subparagraph id="id86F6F2106EE5427B91C4CA2485A03317"><enum>(P)</enum><header>Lithium</header><text>Lithium which is—</text><clause id="id5F008F33F2A94A94A83B38D3340B3CDE"><enum>(i)</enum><text>converted to lithium carbonate or lithium hydroxide, or </text></clause><clause id="idCD63E0F94DE044F998E314B317E9DE8B"><enum>(ii)</enum><text>purified to a minimum purity of 99.9 percent lithium by mass.</text></clause></subparagraph><subparagraph id="id3F63DF5D8F824DC393AA91213E29525F"><enum>(Q)</enum><header>Manganese</header><text>Manganese which is—</text><clause id="idBC876923769F4E728CFA230F35087DC1"><enum>(i)</enum><text>converted to manganese sulphate, or</text></clause><clause id="id25E8AA891E2C41C0AA28AA2BC0739EFB"><enum>(ii)</enum><text>purified to a minimum purity of 99.7 percent manganese by mass.</text></clause></subparagraph><subparagraph id="id1619BDC738274FBDA1BD862925887964"><enum>(R)</enum><header>Neodymium</header><text>Neodymium which is—</text><clause id="id482B1DD453F5486A945CD32131DEE2B9"><enum>(i)</enum><text>converted to neodymium-praseodymium oxide which is purified to a minimum purity of 99 percent neodymium-praseodymium oxide by mass,</text></clause><clause id="idB0BB027CF24F438BA33D3ED93E8070A3"><enum>(ii)</enum><text>converted to neodymium oxide which is purified to a minimum purity of 99.5 percent neodymium oxide by mass</text></clause><clause id="idF486C6379BFE4EACB59846031CDD3A9C"><enum>(iii)</enum><text>purified to a minimum purity of 99.9 percent neodymium by mass.</text></clause></subparagraph><subparagraph id="idF3D4FBCF7027438599C3B9DA7175696B"><enum>(S)</enum><header>Nickel</header><text>Nickel which is—</text><clause id="idE03D5A9E54F448E8A948B10BD7DBEA83"><enum>(i)</enum><text>converted to nickel sulphate, or</text></clause><clause id="id9FFB000503BA42FCAF946A8219A10455"><enum>(ii)</enum><text>purified to a minimum purity of 99 percent nickel by mass.</text></clause></subparagraph><subparagraph id="id599C0EBA75DB459CA472BB2747DEA872"><enum>(T)</enum><header>Niobium</header><text>Niobium which is—</text><clause id="idA1727B2DAFBC4E638DEC1092695A9D83"><enum>(i)</enum><text>converted to ferronibium, or </text></clause><clause id="id0057B93225534A4C99971ADE2FD661C5"><enum>(ii)</enum><text>purified to a minimum purity of 99 percent niobium by mass.</text></clause></subparagraph><subparagraph id="id4B2346357EE740CF9FD4313DB185C07F"><enum>(U)</enum><header>Tellurium</header><text>Tellurium which is—</text><clause id="id2DC5A1A2C8954659A7BCFC1E2C4CA4D1"><enum>(i)</enum><text>converted to cadmium telluride, or</text></clause><clause id="idDB02059E2E064B8FBBC3C29B968290EB"><enum>(ii)</enum><text>purified to a minimum purity of 99 percent tellurium by mass.</text></clause></subparagraph><subparagraph id="idD52DE6F83A1C497589D562820FE6A28B"><enum>(V)</enum><header>Tin</header><text>Tin which is purified to low alpha emitting tin which—</text><clause id="id0ECBC153F5CC47489BB57CEA7BC32B77"><enum>(i)</enum><text>has a purity of greater than 99.99 percent by mass, and</text></clause><clause id="id79BCCC84E03044909D74FC607DAD285B"><enum>(ii)</enum><text>possesses an alpha emission rate of not greater than 0.01 counts per hour per centimeter square.</text></clause></subparagraph><subparagraph id="idB998FA329F4B4C76AE0290CED4B1C6D8"><enum>(W)</enum><header>Tungsten</header><text>Tungsten which is converted to ammonium paratungstate or ferrotungsten.</text></subparagraph><subparagraph id="idE9D76320B59743EF9B6219211C25A06F"><enum>(X)</enum><header>Vanadium</header><text>Vanadium which is converted to ferrovanadium or vanadium pentoxide.</text></subparagraph><subparagraph id="id69EB873E8A354769A15213F964B180DA"><enum>(Y)</enum><header>Yttrium</header><text>Yttrium which is—</text><clause id="id29C4A57CB4194E6BA0B6369C73435262"><enum>(i)</enum><text>converted to yttrium oxide which is purified to a minimum purity of 99.999 percent yttrium oxide by mass, or</text></clause><clause id="idC8035F05C0134B31B91D72CA4290033C"><enum>(ii)</enum><text>purified to a minimum purity of 99.9 percent yttrium by mass.</text></clause></subparagraph><subparagraph commented="no" id="id9E63A4DFDDE04104BF4616D111EDCEA4"><enum>(Z)</enum><header>Other minerals</header><text>Any of the following minerals, provided that such mineral is purified to a minimum purity of 99 percent by mass:</text><clause commented="no" id="id4220312C1F054A46B8CC5826B2E281B0"><enum>(i)</enum><text>Arsenic.</text></clause><clause commented="no" id="idE00D4C0DA276490296DB41D7B9582A99"><enum>(ii)</enum><text>Bismuth.</text></clause><clause commented="no" id="id76AEACAEAA6847628A08862F48DFFE89"><enum>(iii)</enum><text>Erbium.</text></clause><clause commented="no" id="id01C0CD3826E94399BB4E4B71224BF53D"><enum>(iv)</enum><text>Gallium.</text></clause><clause commented="no" id="id6802E4E4B86A49808A36FF82902BB3B2"><enum>(v)</enum><text>Hafnium.</text></clause><clause commented="no" id="id64EC7FC6C6314D2489CE9CF9B512E490"><enum>(vi)</enum><text>Holmium.</text></clause><clause commented="no" id="id738D09D014734AEF82B324BF6B661106"><enum>(vii)</enum><text>Iridium.</text></clause><clause commented="no" id="id257ACA00C3C7442C8B4F49473B6C26FA"><enum>(viii)</enum><text>Lanthanum.</text></clause><clause commented="no" id="idE733E8B39C84406EB360F377A30509A6"><enum>(ix)</enum><text>Lutetium.</text></clause><clause commented="no" id="id0361C163B24542C990A107D258F97972"><enum>(x)</enum><text>Magnesium.</text></clause><clause commented="no" id="idAAA18276FC884F1A9F3D4C184EAFA0F1"><enum>(xi)</enum><text>Palladium.</text></clause><clause commented="no" id="idAE789099837847D9A015B27C59899CB3"><enum>(xii)</enum><text>Platinum.</text></clause><clause id="id3580ef7d36074c46bda44902ba94786f"><enum>(xiii)</enum><text>Praseodymium.</text></clause><clause id="ida791b3b022a842e5a3b47c29db53d36b"><enum>(xiv)</enum><text>Rhodium.</text></clause><clause id="id0073a0f18c86466b82f20ae899cab85c"><enum>(xv)</enum><text>Rubidium.</text></clause><clause id="id567702e573804975a474136bfbbb0eb3"><enum>(xvi)</enum><text>Ruthenium.</text></clause><clause id="id2591fba1753a4d9a9f9ad71672e84199"><enum>(xvii)</enum><text>Samarium.</text></clause><clause id="ide634ad503cb64014aa3fae49309353e2"><enum>(xviii)</enum><text>Scandium.</text></clause><clause id="ida78f0a1a930e4b84bc4b6ad66d6625b8"><enum>(xix)</enum><text>Tantalum.</text></clause><clause id="idC834A218EF9149E8ACD89B59FDAFC17B"><enum>(xx)</enum><text>Terbium.</text></clause><clause id="idFC8F73BE8DDD43E5B3581AA62460FE58"><enum>(xxi)</enum><text>Thulium.</text></clause><clause id="id1FA1934D4BA9402987A46A11BAF3456D"><enum>(xxii)</enum><text>Titanium.</text></clause><clause id="id4B31EE51F14946F59B3EEA5765402731"><enum>(xxiii)</enum><text>Ytterbium.</text></clause><clause id="id02E7DEFC2FB847EC9725E2CC76869FE9"><enum>(xxiv)</enum><text>Zinc.</text></clause><clause id="idDB5A83C2C1F84A8A9DEEE9DA4DA3D06E"><enum>(xxv)</enum><text>Zirconium.</text></clause></subparagraph></paragraph></subsection><subsection id="H0B0D617FFB884E8F940CEC85028957DC" commented="no"><enum>(d)</enum><header>Special rules</header><text>In this section—</text><paragraph commented="no" id="H18A9CAFCEDD647CF86F09873A0613F31"><enum>(1)</enum><header>Related persons</header><text>Persons shall be treated as related to each other if such persons would be treated as a single employer under the regulations prescribed under section 52(b). </text></paragraph><paragraph id="HF5626786E7014052BECB2D4633EEFBF3" commented="no"><enum>(2)</enum><header>Only production in the United States taken into account</header><text>Sales shall be taken into account under this section only with respect to eligible components the production of which is within—</text><subparagraph id="HE0F00E1EABC243848718CFB679174159" commented="no"><enum>(A)</enum><text>the United States (within the meaning of section 638(1)), or</text></subparagraph><subparagraph id="H93CC47948FFB4702895A2E4A7CEC1464" commented="no"><enum>(B)</enum><text>a possession of the United States (within the meaning of section 638(2)).</text></subparagraph></paragraph><paragraph commented="no" id="H99700551EF9941FEB19627AC3EC04E63"><enum>(3)</enum><header>Pass-thru in the case of estates and trusts</header><text>Under regulations prescribed by the Secretary, rules similar to the rules of subsection (d) of section 52 shall apply.</text></paragraph><paragraph id="HDE73003DE1B44A9EB4E0E46A4E76F76C"><enum>(4)</enum><header>Sale of integrated components</header><text display-inline="yes-display-inline">For purposes of this section, a person shall be treated as having sold an eligible component to an unrelated person if such component is integrated, incorporated, or assembled into another eligible component which is sold to an unrelated person.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H7C100DFC652944BAB2E1E6120D8538BF" commented="no"><enum>(b)</enum><header>Conforming amendments</header><paragraph id="H12D27E4A7BA64B91A95AB504BB2A6777" commented="no"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/38">Section 38(b)</external-xref> of the Internal Revenue Code of 1986, as amended by the preceding provisions of this Act, is amended—</text><subparagraph id="H8A767334CC3A4496A6BDCB172F305AB1" commented="no"><enum>(A)</enum><text>in paragraph (36), by striking <quote>plus</quote> at the end,</text></subparagraph><subparagraph id="H66152AFC9A0D464BBDE645712D3EBD4B" commented="no"><enum>(B)</enum><text>in paragraph (37), by striking the period at the end and inserting <quote>, plus</quote>, and</text></subparagraph><subparagraph id="HE77CA0811DF744EBB261FDC4C863EBCA" commented="no"><enum>(C)</enum><text>by adding at the end the following new paragraph:</text><quoted-block display-inline="no-display-inline" id="H3A9470BEF1A7404DA4A6AB96304E4400" style="OLC" changed="added" reported-display-style="italic"><paragraph id="H12EAE7666C4F4A98906EB35274881682" commented="no"><enum>(38)</enum><text>the advanced manufacturing production credit determined under section 45X(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="HD75C1F1466FA41BC930B6472A2165953" commented="no"><enum>(2)</enum><text>The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by adding at the end the following new item:</text><quoted-block display-inline="no-display-inline" id="H135E120CCECA482B9F0D6A79DAABB927" style="OLC" changed="added" reported-display-style="italic"><toc changed="added" reported-display-style="italic"><toc-entry bold="off" level="section">Sec. 45X. Advanced manufacturing production credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H4D69AB56B26849FCA737CA816F2170A3" commented="no"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to components produced and sold after December 31, 2022. </text></subsection></section></part><part id="H3CE89BF47EC4466791A686D76F685EA2" commented="no"><enum>6<?LEXA-Enum 7?></enum><header>Superfund</header><section id="H8CE6AEF0C80341BB91E2DD1BBBC08604" commented="no"><enum>13601.</enum><header>Reinstatement of Superfund</header><subsection id="H643B4DBD34C94B4BAC94EA65B1199F81" commented="no"><enum>(a)</enum><header> Hazardous Substance Superfund financing rate</header><paragraph id="HEFE3DFB15C804D4191B84138DE6C2F37" commented="no"><enum>(1)</enum><header>Extension</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/4611">Section 4611</external-xref> is amended by striking subsection (e).</text></paragraph><paragraph id="H50E356A185DE4D32A4312ABBFAC74FF5" commented="no"><enum>(2)</enum><header>Adjustment for inflation</header><subparagraph id="HE90552AE96E44CBC92C9EF6CC0C0F0E6" commented="no"><enum>(A)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/4611">Section 4611(c)(2)(A)</external-xref> is amended by striking <quote>9.7 cents</quote> and inserting <quote>16.4 cents</quote>.</text></subparagraph><subparagraph id="HDE5887B66E1543029E89E011F7614034" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/4611">Section 4611(c)</external-xref> is amended by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="H2C8B1364A9AC4BB780D528E10451AA3D" style="OLC" changed="added" reported-display-style="italic"><paragraph id="H032165F3905A49FFB5EFC0A44B152DB8" commented="no"><enum>(3)</enum><header>Adjustment for inflation</header><subparagraph id="H3F9C0A7F82554178A2748344442E07DD" commented="no"><enum>(A)</enum><header>In general</header><text>In the case of a year beginning after 2023, the amount in paragraph (2)(A) shall be increased by an amount equal to—</text><clause id="H209DE7331C8B43C28E12821EB7C9B08A" commented="no"><enum>(i)</enum><text>such amount, multiplied by</text></clause><clause id="H7C686551269D42A0A5EF78E707DB33F5" commented="no"><enum>(ii)</enum><text>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting <quote>calendar year 2022</quote> for <quote>calendar year 2016</quote> in subparagraph (A)(ii) thereof.</text></clause></subparagraph><subparagraph id="H03AE49B23571445F930EEE8715554799" commented="no"><enum>(B)</enum><header>Rounding</header><text>If any amount as adjusted under subparagraph (A) is not a multiple of $0.01, such amount shall be rounded to the next lowest multiple of $0.01.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="H061070B002424975850F1A67FCE5032C" commented="no"><enum>(b)</enum><header>Authority for advances</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/9507">Section 9507(d)(3)(B)</external-xref> is amended by striking <quote>December 31, 1995</quote> and inserting <quote>December 31, 2032</quote>.</text></subsection><subsection commented="no" id="HE12B73E4856F4165AD4612A55A8AF360"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall take effect on January 1, 2023.</text></subsection></section></part><part id="H5A1CD623CA12448F81B576BE81F658B5"><enum>7<?LEXA-Enum 8?></enum><header>Incentives for Clean Electricity and Clean Transportation</header><section id="H863A8D5D4BEC4F75A480174C19A78B0B" commented="no"><enum>13701.</enum><header>Clean electricity production credit</header><subsection id="H20155CC5F5F3472EB5D0E1C44A370204" commented="no"><enum>(a)</enum><header>In general</header><text>Subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by adding at the end the following new section:</text><quoted-block display-inline="no-display-inline" id="H6375AC31A9ED422DAEA91C62BF0F651E" style="OLC" changed="added" reported-display-style="italic"><section id="H8F4639C594E341D19CF9D966325A2B86" commented="no"><enum>45Y.<?LEXA-Enum 45AA.?></enum><header>Clean electricity production credit</header><subsection id="H00C5A4FCC3054B1CB434CF565281B3DA" commented="no"><enum>(a)</enum><header>Amount of credit</header><paragraph id="HAD2E1D30E11249FE840FBD55372DB40B" commented="no"><enum>(1)</enum><header>In general</header><text>For purposes of section 38, the clean electricity production credit for any taxable year is an amount equal to the product of—</text><subparagraph id="HA13D2E452ACB4D0C9D0B2765FEBBA92B" commented="no"><enum>(A)</enum><text>the kilowatt hours of electricity—</text><clause id="HDCDEADB38AE64EE5A344B75E12F342D9" commented="no"><enum>(i)</enum><text>produced by the taxpayer at a qualified facility, and</text></clause><clause id="H4DB42D9CB79B4015AE008EECDBB89D42" commented="no"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="H1884BDAABAB644E6A50DC19FA6571C92"><enum>(I)</enum><text>sold by the taxpayer to an unrelated person during the taxable year, or</text></subclause><subclause id="H065324C7DF3A471CA5BBDC4DC91AF429" indent="up1" commented="no"><enum>(II)</enum><text>in the case of a qualified facility which is equipped with a metering device which is owned and operated by an unrelated person, sold, consumed, or stored by the taxpayer during the taxable year, multiplied by</text></subclause></clause></subparagraph><subparagraph id="HDEEA2DAE79204AECA93CAD62D50E25B8" commented="no"><enum>(B)</enum><text>the applicable amount with respect to such qualified facility.</text></subparagraph></paragraph><paragraph id="H27600BC8695D42D6B694C6C3881A184E" commented="no"><enum>(2)</enum><header>Applicable amount</header><subparagraph id="H1076157678F84CE48808EA5E24335FE1" commented="no"><enum>(A)</enum><header>Base amount</header><text>Subject to subsection (g)(7), in the case of any qualified facility which is not described in clause (i) or (ii) of subparagraph (B) and does not satisfy the requirements described in clause (iii) of such subparagraph, the applicable amount shall be 0.3 cents.</text></subparagraph><subparagraph id="H50EADAAACBA141EC88C498D99A6336D4" commented="no"><enum>(B)</enum><header>Alternative amount</header><text>Subject to subsection (g)(7), in the case of any qualified facility—</text><clause id="H8F44AD3E0F404428A3EC99FCA6485781" commented="no"><enum>(i)</enum><text>with a maximum net output of less than 1 megawatt (as measured in alternating current), </text></clause><clause id="H13054A0D28B6456396229A932B17340D" commented="no"><enum>(ii)</enum><text>the construction of which begins prior to the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (9) and (10) of subsection (g), or</text></clause><clause commented="no" id="id911C385A89194E0D8FA386E104DACB66"><enum>(iii)</enum><text>which—</text><subclause id="HD2CD515550E449F99199A693C3B02235" commented="no"><enum>(I)</enum><text>satisfies the requirements under paragraph (9) of subsection (g), and</text></subclause><subclause id="H4480B635C2B043C5AD3F6F8595322E2F" commented="no"><enum>(II)</enum><text>with respect to the construction of such facility, satisfies the requirements under paragraph (10) of subsection (g), </text></subclause></clause><continuation-text continuation-text-level="subparagraph" commented="no">the applicable amount shall be 1.5 cents. </continuation-text></subparagraph></paragraph></subsection><subsection id="H682A060A85FB4FAAACAC5BCA543DA9E5" commented="no"><enum>(b)</enum><header>Qualified facility</header><paragraph id="H235B0946CE6049048B7474E1F5201168" commented="no"><enum>(1)</enum><header>In general</header><subparagraph id="HC5AD6C79B12841CFA913BE3F66D26B09" commented="no"><enum>(A)</enum><header>Definition</header><text>Subject to subparagraphs (B), (C), and (D), the term <term>qualified facility</term> means a facility owned by the taxpayer—</text><clause id="H72DD8F8364704A70A3B6C03CAC8332CD" commented="no"><enum>(i)</enum><text>which is used for the generation of electricity,</text></clause><clause id="H6667F835885443629E57E72D505E4F6B" commented="no"><enum>(ii)</enum><text>which is placed in service after December 31, 2024, and</text></clause><clause id="HDB886BED395D4882BBACE00B192384BA" commented="no"><enum>(iii)</enum><text>for which the greenhouse gas emissions rate (as determined under paragraph (2)) is not greater than zero.</text></clause></subparagraph><subparagraph id="H52DE1A37B21048A6A405FEF4231D9283" commented="no"><enum>(B)</enum><header>10-year production credit</header><text>For purposes of this section, a facility shall only be treated as a qualified facility during the 10-year period beginning on the date the facility was originally placed in service.</text></subparagraph><subparagraph commented="no" id="H3131F1BC076D405F9CAED5578971E711"><enum>(C)</enum><header>Expansion of facility; incremental production</header><text>The term <term>qualified facility</term> shall include either of the following in connection with a facility described in subparagraph (A) (without regard to clause (ii) of such subparagraph) which was placed in service before January 1, 2025, but only to the extent of the increased amount of electricity produced at the facility by reason of the following:</text><clause commented="no" id="HEA49396C6D4F42F9A5C95917E42C63CC"><enum>(i)</enum><text display-inline="yes-display-inline">A new unit which is placed in service after December 31, 2024.</text></clause><clause commented="no" id="H72F547E2EC384F2582C0D3F6447BEFF4"><enum>(ii)</enum><text display-inline="yes-display-inline">Any additions of capacity which are placed in service after December 31, 2024.</text></clause></subparagraph><subparagraph id="HAC2EAFD9C16E4A9B992BBBD0152195AB" commented="no"><enum>(D)</enum><header>Coordination with other credits</header><text>The term <term>qualified facility</term> shall not include any facility for which a credit determined under section 45, 45J, 45Q, 45U, 48, 48A, or 48E is allowed under section 38 for the taxable year or any prior taxable year.</text></subparagraph></paragraph><paragraph id="HB3BDFAA5719F43C7ABE6397DE53CE915" commented="no"><enum>(2)</enum><header>Greenhouse gas emissions rate</header><subparagraph id="HF3ABF7CCA0564DCE97A6C2A2066CA4E2" commented="no"><enum>(A)</enum><header>In general</header><text>For purposes of this section, the term <term>greenhouse gas emissions rate</term> means the amount of greenhouse gases emitted into the atmosphere by a facility in the production of electricity, expressed as grams of CO<subscript>2</subscript>e per KWh.</text></subparagraph><subparagraph id="H942CCE6FC17C4CC78DA9CD7EA3B15EE6" commented="no"><enum>(B)</enum><header>Fuel combustion and gasification</header><text>In the case of a facility which produces electricity through combustion or gasification, the greenhouse gas emissions rate for such facility shall be equal to the net rate of greenhouse gases emitted into the atmosphere by such facility (taking into account lifecycle greenhouse gas emissions, as described in section 211(o)(1)(H) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(1)(H)</external-xref>)) in the production of electricity, expressed as grams of CO<subscript>2</subscript>e per KWh.</text></subparagraph><subparagraph commented="no" id="HB46F1A54FB0D4575A68F146B753986B1"><enum>(C)</enum><header>Establishment of emissions rates for facilities</header><clause commented="no" id="HB2A670F5398C4BD1A7EB8BFAD3F401C3"><enum>(i)</enum><header>Publishing emissions rates</header><text>The Secretary shall annually publish a table that sets forth the greenhouse gas emissions rates for types or categories of facilities, which a taxpayer shall use for purposes of this section.</text></clause><clause id="H4893E480C21F4D8D9BAF9F88C32DC3ED" commented="no"><enum>(ii)</enum><header>Provisional emissions rate</header><text>In the case of any facility for which an emissions rate has not been established by the Secretary, a taxpayer which owns such facility may file a petition with the Secretary for determination of the emissions rate with respect to such facility.</text></clause></subparagraph><subparagraph commented="no" id="H0D0B23F726EB4CDDBF32EADF1D90B256"><enum>(D)</enum><header>Carbon capture and sequestration equipment</header><text>For purposes of this subsection, the amount of greenhouse gases emitted into the atmosphere by a facility in the production of electricity shall not include any qualified carbon dioxide that is captured by the taxpayer and—</text><clause commented="no" id="H85BC40B96B634FDEB256D0689F4DC33C"><enum>(i)</enum><text>pursuant to any regulations established under paragraph (2) of section 45Q(f), disposed of by the taxpayer in secure geological storage, or</text></clause><clause commented="no" id="H1D7B5E3E0A4947F186EF8A8DE923109F"><enum>(ii)</enum><text>utilized by the taxpayer in a manner described in paragraph (5) of such section.</text></clause></subparagraph></paragraph></subsection><subsection id="HD8B61981D01B45B293334A057B930D8A" commented="no"><enum>(c)</enum><header>Inflation adjustment</header><paragraph id="HF546C382F606496C8C23E01CC3CFF78D" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of a calendar year beginning after 2024, the 0.3 cent amount in paragraph (2)(A) of subsection (a) and the 1.5 cent amount in paragraph (2)(B) of such subsection shall each be adjusted by multiplying such amount by the inflation adjustment factor for the calendar year in which the sale, consumption, or storage of the electricity occurs. If the 0.3 cent amount as increased under this paragraph is not a multiple of 0.05 cent, such amount shall be rounded to the nearest multiple of 0.05 cent. If the 1.5 cent amount as increased under this paragraph is not a multiple of 0.1 cent, such amount shall be rounded to the nearest multiple of 0.1 cent.</text></paragraph><paragraph id="H848A7F32C55B49D58A1AA05C098E79DD" commented="no"><enum>(2)</enum><header>Annual computation</header><text>The Secretary shall, not later than April 1 of each calendar year, determine and publish in the Federal Register the inflation adjustment factor for such calendar year in accordance with this subsection.</text></paragraph><paragraph id="H0BBC44A7A3DA4165B1AAEFBBADFB8ECA" commented="no"><enum>(3)</enum><header>Inflation adjustment factor</header><text>The term <quote>inflation adjustment factor</quote> means, with respect to a calendar year, a fraction the numerator of which is the GDP implicit price deflator for the preceding calendar year and the denominator of which is the GDP implicit price deflator for the calendar year 1992. The term <term>GDP implicit price deflator</term> means the most recent revision of the implicit price deflator for the gross domestic product as computed and published by the Department of Commerce before March 15 of the calendar year.</text></paragraph></subsection><subsection id="H065E6B89DAE944EC8926784C79811781" commented="no"><enum>(d)</enum><header>Credit phase-out</header><paragraph id="H2FAB64EC8815451EB04BE55C45492366" commented="no"><enum>(1)</enum><header>In general</header><text>The amount of the clean electricity production credit under subsection (a) for any qualified facility the construction of which begins during a calendar year described in paragraph (2) shall be equal to the product of—</text><subparagraph id="HC3ECC746709F419AB8050A6243530188" commented="no"><enum>(A)</enum><text>the amount of the credit determined under subsection (a) without regard to this subsection, multiplied by</text></subparagraph><subparagraph id="HC7BC50C2ED494D8890331A67E490759B" commented="no"><enum>(B)</enum><text>the phase-out percentage under paragraph (2).</text></subparagraph></paragraph><paragraph id="HEE76DE8167BF4516BA37EFCE9C076059" commented="no"><enum>(2)</enum><header>Phase-out percentage</header><text>The phase-out percentage under this paragraph is equal to—</text><subparagraph id="H769FE62DA206417EA8E965B4AC51140D" commented="no"><enum>(A)</enum><text>for a facility the construction of which begins during the first calendar year following the applicable year, 100 percent,</text></subparagraph><subparagraph id="HFF97E8755C254EC6ABAC4014A413FB4A" commented="no"><enum>(B)</enum><text>for a facility the construction of which begins during the second calendar year following the applicable year, 75 percent,</text></subparagraph><subparagraph id="H04C44030022845978C90775363DEE6C3" commented="no"><enum>(C)</enum><text>for a facility the construction of which begins during the third calendar year following the applicable year, 50 percent, and</text></subparagraph><subparagraph commented="no" id="HACE5A2F86CB5416D8B9F1DC0156B0C8E"><enum>(D)</enum><text>for a facility the construction of which begins during any calendar year subsequent to the calendar year described in subparagraph (C), 0 percent.</text></subparagraph></paragraph><paragraph commented="no" id="H2D661FFB1BF448139DB96F537974AB48"><enum>(3)</enum><header>Applicable year</header><text>For purposes of this subsection, the term <term>applicable year</term> means the later of—</text><subparagraph commented="no" id="H435620329BF645B4A349818E163DDDA2"><enum>(A)</enum><text>the calendar year in which the Secretary determines that the annual greenhouse gas emissions from the production of electricity in the United States are equal to or less than 25 percent of the annual greenhouse gas emissions from the production of electricity in the United States for calendar year 2022, or</text></subparagraph><subparagraph commented="no" id="HF0AAF205B7794D1DBB1FD2A89ADB0947"><enum>(B)</enum><text>2032.</text></subparagraph></paragraph></subsection><subsection id="H70832F150379442395540B1A3F154FBF" commented="no"><enum>(e)</enum><header>Definitions</header><text>For purposes of this section:</text><paragraph id="H5DC8BEF84EF949AA9BD04D28C45E378B" commented="no"><enum>(1)</enum><header>CO<subscript>2</subscript><enum-in-header>e</enum-in-header> per <enum-in-header>KWh</enum-in-header></header><text>The term <term>CO<subscript>2</subscript>e per KWh</term> means, with respect to any greenhouse gas, the equivalent carbon dioxide (as determined based on global warming potential) per kilowatt hour of electricity produced.</text></paragraph><paragraph id="HF1814A36DFE242B19EBBCF82084D6FFD" commented="no"><enum>(2)</enum><header>Greenhouse gas</header><text>The term <term>greenhouse gas</term> has the same meaning given such term under section 211(o)(1)(G) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(1)(G)</external-xref>), as in effect on the date of the enactment of this section.</text></paragraph><paragraph commented="no" id="HF7AA865F2FAA4836AE439A43DFE50C7D"><enum>(3)</enum><header>Qualified carbon dioxide</header><text>The term <term>qualified carbon dioxide</term> means carbon dioxide captured from an industrial source which—</text><subparagraph commented="no" id="HC624DCBC29D147B9B875538E4EF313D5"><enum>(A)</enum><text>would otherwise be released into the atmosphere as industrial emission of greenhouse gas,</text></subparagraph><subparagraph commented="no" id="HD996BF2FE7E64B0D92DFC0CF85ECEDB4"><enum>(B)</enum><text>is measured at the source of capture and verified at the point of disposal or utilization, and</text></subparagraph><subparagraph commented="no" id="HFBF48DE8D06746C396BDA6B2B02B9B22"><enum>(C)</enum><text>is captured and disposed or utilized within the United States (within the meaning of section 638(1)) or a possession of the United States (within the meaning of section 638(2)).</text></subparagraph></paragraph></subsection><subsection id="HFFDEC851B4F74171AC65AA2EC3B03F05" commented="no"><enum>(f)</enum><header>Guidance</header><text>Not later than January 1, 2025, the Secretary shall issue guidance regarding implementation of this section, including calculation of greenhouse gas emission rates for qualified facilities and determination of clean electricity production credits under this section.</text></subsection><subsection id="H9D4A639E5A824A1F91469A45243F32A5" commented="no"><enum>(g)</enum><header>Special rules</header><paragraph id="H6B4D4867C39A48009EBBD9E1BC232390" commented="no"><enum>(1)</enum><header>Only production in the United States taken into account</header><text>Consumption, sales, or storage shall be taken into account under this section only with respect to electricity the production of which is within—</text><subparagraph id="H88D642B3ECBC41C2AD6BFF0F45ECF1C8" commented="no"><enum>(A)</enum><text>the United States (within the meaning of section 638(1)), or</text></subparagraph><subparagraph id="HEFFFBF7F52D448959A6DE9E198DC0B6D" commented="no"><enum>(B)</enum><text>a possession of the United States (within the meaning of section 638(2)).</text></subparagraph></paragraph><paragraph id="HEB6E69435C3B4E4083B49F355291CA53" commented="no"><enum>(2)</enum><header>Combined heat and power system property</header><subparagraph id="HC44AC02FE7E0476BB452196CD5AA0DB3" commented="no"><enum>(A)</enum><header>In general</header><text>For purposes of subsection (a)—</text><clause id="H694ED85381E142BD86D3109607774CD3" commented="no"><enum>(i)</enum><text>the kilowatt hours of electricity produced by a taxpayer at a qualified facility shall include any production in the form of useful thermal energy by any combined heat and power system property within such facility, and</text></clause><clause id="HBD4DA643F5554415B06DA390E18BF132" commented="no"><enum>(ii)</enum><text>the amount of greenhouse gases emitted into the atmosphere by such facility in the production of such useful thermal energy shall be included for purposes of determining the greenhouse gas emissions rate for such facility.</text></clause></subparagraph><subparagraph id="HA4DD25B76E0F46719AF144BA00270BF5" commented="no"><enum>(B)</enum><header>Combined heat and power system property</header><text>For purposes of this paragraph, the term <term>combined heat and power system property</term> has the same meaning given such term by section 48(c)(3) (without regard to subparagraphs (A)(iv), (B), and (D) thereof).</text></subparagraph><subparagraph id="H44013E6DBC754C469F7040A51468FACF" commented="no"><enum>(C)</enum><header>Conversion from BTU to KWh</header><clause id="H3E65DDC01AD04E4F85B32328F9B31505" commented="no"><enum>(i)</enum><header>In general</header><text>For purposes of subparagraph (A)(i), the amount of kilowatt hours of electricity produced in the form of useful thermal energy shall be equal to the quotient of—</text><subclause id="H4439330904694851A6A23393C8B17E77" commented="no"><enum>(I)</enum><text>the total useful thermal energy produced by the combined heat and power system property within the qualified facility, divided by</text></subclause><subclause id="H92AC21DE425D4B1991888F3440CA664A" commented="no"><enum>(II)</enum><text>the heat rate for such facility.</text></subclause></clause><clause id="HFABD2F81B84F4E77B17B37FC9F841B86" commented="no"><enum>(ii)</enum><header>Heat rate</header><text>For purposes of this subparagraph, the term <term>heat rate</term> means the amount of energy used by the qualified facility to generate 1 kilowatt hour of electricity, expressed as British thermal units per net kilowatt hour generated.</text></clause></subparagraph></paragraph><paragraph id="H441D9C87EEBD4AE2839855A4EEA08F0D" commented="no"><enum>(3)</enum><header>Production attributable to the taxpayer</header><text>In the case of a qualified facility in which more than 1 person has an ownership interest, except to the extent provided in regulations prescribed by the Secretary, production from the facility shall be allocated among such persons in proportion to their respective ownership interests in the gross sales from such facility.</text></paragraph><paragraph id="HD39CAE5EA8784075B48CF7A9C59BE0AD" commented="no"><enum>(4)</enum><header>Related persons</header><text>Persons shall be treated as related to each other if such persons would be treated as a single employer under the regulations prescribed under section 52(b). In the case of a corporation which is a member of an affiliated group of corporations filing a consolidated return, such corporation shall be treated as selling electricity to an unrelated person if such electricity is sold to such a person by another member of such group.</text></paragraph><paragraph id="HD4CFFA0162E2416AACE35668E8295AB6" commented="no"><enum>(5)</enum><header>Pass-thru in the case of estates and trusts</header><text>Under regulations prescribed by the Secretary, rules similar to the rules of subsection (d) of section 52 shall apply.</text></paragraph><paragraph id="H9CD9220FC6994BD7A3AD8621DED0F275" commented="no"><enum>(6)</enum><header>Allocation of credit to patrons of agricultural cooperative</header><subparagraph id="H896656863F5248A4A30EAF6F02E20959" commented="no"><enum>(A)</enum><header>Election to allocate</header><clause id="HB2A0166414F4411ABEF7DC4866FB40E6" commented="no"><enum>(i)</enum><header>In general</header><text>In the case of an eligible cooperative organization, any portion of the credit determined under subsection (a) for the taxable year may, at the election of the organization, be apportioned among patrons of the organization on the basis of the amount of business done by the patrons during the taxable year.</text></clause><clause id="HADACE647C94C4647829A99608C55C3D6" commented="no"><enum>(ii)</enum><header>Form and effect of election</header><text>An election under clause (i) for any taxable year shall be made on a timely filed return for such year. Such election, once made, shall be irrevocable for such taxable year. Such election shall not take effect unless the organization designates the apportionment as such in a written notice mailed to its patrons during the payment period described in section 1382(d).</text></clause></subparagraph><subparagraph id="HED8DEEFE23F045248F3A574CA3AC259F" commented="no"><enum>(B)</enum><header>Treatment of organizations and patrons</header><text>The amount of the credit apportioned to any patrons under subparagraph (A)—</text><clause id="H8A91EBEDA50F45529C43A7FC77F949D6" commented="no"><enum>(i)</enum><text>shall not be included in the amount determined under subsection (a) with respect to the organization for the taxable year, and</text></clause><clause id="HECFBCDB83928443D9AD5D5A6396B0399" commented="no"><enum>(ii)</enum><text>shall be included in the amount determined under subsection (a) for the first taxable year of each patron ending on or after the last day of the payment period (as defined in section 1382(d)) for the taxable year of the organization or, if earlier, for the taxable year of each patron ending on or after the date on which the patron receives notice from the cooperative of the apportionment.</text></clause></subparagraph><subparagraph id="H216B8D4EBE634C0C89907BC01CFAA9A6" commented="no"><enum>(C)</enum><header>Special rules for decrease in credits for taxable year</header><text>If the amount of the credit of a cooperative organization determined under subsection (a) for a taxable year is less than the amount of such credit shown on the return of the cooperative organization for such year, an amount equal to the excess of—</text><clause id="H1EC48E5C031A4A519E335D237E8317AB" commented="no"><enum>(i)</enum><text>such reduction, over</text></clause><clause id="H2B76A595443D46C6890120E5B7359F33" commented="no"><enum>(ii)</enum><text>the amount not apportioned to such patrons under subparagraph (A) for the taxable year,</text></clause><continuation-text continuation-text-level="subparagraph" commented="no">shall be treated as an increase in tax imposed by this chapter on the organization. Such increase shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit under this chapter. </continuation-text></subparagraph><subparagraph id="HE12CB456C8A2492C9C967048ACC635BF" commented="no"><enum>(D)</enum><header>Eligible cooperative defined</header><text>For purposes of this section, the term <term>eligible cooperative</term> means a cooperative organization described in section 1381(a) which is owned more than 50 percent by agricultural producers or by entities owned by agricultural producers. For this purpose an entity owned by an agricultural producer is one that is more than 50 percent owned by agricultural producers.</text></subparagraph></paragraph><paragraph id="HACD19C275ECF40A480A0E6D3DB45504E" commented="no"><enum>(7)</enum><header>Increase in credit in energy communities</header><text>In the case of any qualified facility which is located in an energy community (as defined in section 45(b)(11)(B)), for purposes of determining the amount of the credit under subsection (a) with respect to any electricity produced by the taxpayer at such facility during the taxable year, the applicable amount under paragraph (2) of such subsection shall be increased by an amount equal to 10 percent of the amount otherwise in effect under such paragraph.</text></paragraph><paragraph id="H0B547E0CA9954276B725CE60D7A53B33" commented="no"><enum>(8)</enum><header>Credit reduced for tax-exempt bonds</header><text>Rules similar to the rules of section 45(b)(3) shall apply.</text></paragraph><paragraph commented="no" id="H2794FDE563254A34ACCDC256F5E87B21"><enum>(9)</enum><header>Wage requirements</header><text display-inline="yes-display-inline">Rules similar to the rules of section 45(b)(7) shall apply.</text></paragraph><paragraph id="HE847F54633E74766885CFC11A1870FB8" commented="no"><enum>(10)</enum><header>Apprenticeship requirements</header><text display-inline="yes-display-inline">Rules similar to the rules of section 45(b)(8) shall apply. </text></paragraph><paragraph id="idCDE8C1ADD3944E7B80E9B57FCABD4710" commented="no"><enum>(11)</enum><header>Domestic content bonus credit amount</header><subparagraph id="id4963C4DBEC584F62AF7BFD19B998D7C6" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any qualified facility which satisfies the requirement under subparagraph (B)(i), the amount of the credit determined under subsection (a) shall be increased by an amount equal to 10 percent of the amount so determined (as determined without application of paragraph (7)).</text></subparagraph><subparagraph id="idE8AECF5D84674C2ABF8B72215510EAD0" commented="no"><enum>(B)</enum><header>Requirement</header><clause id="id4B9A4187483E48CCAE136AA50C0E74A4" commented="no"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">The requirement described in this subclause is satisfied with respect to any qualified facility if the taxpayer certifies to the Secretary (at such time, and in such form and manner, as the Secretary may prescribe) that any steel, iron, or manufactured product which is a component of such facility (upon completion of construction) was produced in the United States (as determined under section 661 of title 49, Code of Federal Regulations).</text></clause><clause id="idE678246D467A4459A8B5CB59A075F9DA" commented="no"><enum>(ii)</enum><header>Steel and iron</header><text>In the case of steel or iron, clause (i) shall be applied in a manner consistent with section 661.5 of title 49, Code of Federal Regulations.</text></clause><clause id="idC491662180814145A6FED05D2C3CAACA" commented="no"><enum>(iii)</enum><header>Manufactured product</header><text display-inline="yes-display-inline">For purposes of clause (i), the manufactured products which are components of a qualified facility upon completion of construction shall be deemed to have been produced in the United States if not less than the adjusted percentage (as determined under subparagraph (C)) of the total costs of all such manufactured products of such facility are attributable to manufactured products (including components) which are mined, produced, or manufactured in the United States.</text></clause></subparagraph><subparagraph id="id8D3AD84A896E47B0A3C1C08198E377DD"><enum>(C)</enum><header>Adjusted percentage</header><clause id="idCFA69243AB6F4B60A2878F6654AD90B8"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">Subject to subclause (ii), for purposes of subparagraph (B)(iii), the adjusted percentage shall be—</text><subclause id="idFB7BCDC98F254048B4CF161BB8D68127" commented="no"><enum>(I)</enum><text>in the case of a facility the construction of which begins before January 1, 2025, 40 percent,</text></subclause><subclause commented="no" id="idD163FE4FD1AB448F80652EA616E97A39"><enum>(II)</enum><text>in the case of a facility the construction of which begins after December 31, 2024, and before January 1, 2026, 45 percent,</text></subclause><subclause id="id7D0AD2620FA845D5A9C6DF50DD9C8EDC" commented="no"><enum>(III)</enum><text>in the case of a facility the construction of which begins after December 31, 2025, and before January 1, 2027, 50 percent, and </text></subclause><subclause id="id27BA458658AC42EE9316CEA751FA08CC" commented="no"><enum>(IV)</enum><text>in the case of a facility the construction of which begins after December 31, 2026, 55 percent.</text></subclause></clause><clause id="id4AEBDF683C8E442AAD7CD5736EDA440E" commented="no"><enum>(ii)</enum><header>Offshore wind facility</header><text display-inline="yes-display-inline">For purposes of subparagraph (B)(iii), in the case of a qualified facility which is an offshore wind facility, the adjusted percentage shall be—</text><subclause id="id5EB673BC4B3A4F7EA5ABA971A2DECFAF" commented="no"><enum>(I)</enum><text>in the case of a facility the construction of which begins before January 1, 2025, 20 percent,</text></subclause><subclause commented="no" id="id6ED029727ACE4F9795C34EFD512C15F0"><enum>(II)</enum><text>in the case of a facility the construction of which begins after December 31, 2024, and before January 1, 2026, 27.5 percent,</text></subclause><subclause id="idF31F4CBA0F6745478CC8878F0C0E538E" commented="no"><enum>(III)</enum><text>in the case of a facility the construction of which begins after December 31, 2025, and before January 1, 2027, 35 percent,</text></subclause><subclause id="idED4B6E39F1654548879E69F04440F915" commented="no"><enum>(IV)</enum><text>in the case of a facility the construction of which begins after December 31, 2026, and before January 1, 2028, 45 percent, and</text></subclause><subclause id="idB679335AFA5B44029ECE798460DFBC7D" commented="no"><enum>(V)</enum><text>in the case of a facility the construction of which begins after December 31, 2027, 55 percent.</text></subclause></clause></subparagraph></paragraph><paragraph id="id4629FE2503BE4290BD8CF3332A9DC81E" commented="no"><enum>(12)</enum><header>Phaseout for elective payment</header><subparagraph id="idB0A6DF115FCC4350A9539B6D5DA2B797" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of a taxpayer making an election under section 6417 with respect to a credit under this section, the amount of such credit shall be replaced with—</text><clause id="id55260840EE32424EB6CFE88772419D5B" commented="no"><enum>(i)</enum><text>the value of such credit (determined without regard to this paragraph), multiplied by</text></clause><clause id="id30310E54BE2547D19B4540684455E993" commented="no"><enum>(ii)</enum><text>the applicable percentage. </text></clause></subparagraph><subparagraph id="id94ABB420EDEF413698BC8A3B2062E13B" commented="no"><enum>(B)</enum><header>100 percent applicable percentage for certain qualified facilities</header><text display-inline="yes-display-inline">In the case of any qualified facility—</text><clause id="id1938084CD7C947E6BCFF48F9F04BA393" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">which satisfies the requirements under paragraph (11)(B), or</text></clause><clause id="idFC21D41346694A879710744BA16008C8" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">with a maximum net output of less than 1 megawatt (as measured in alternating current),</text></clause><continuation-text continuation-text-level="subparagraph" commented="no">the applicable percentage shall be 100 percent. </continuation-text></subparagraph><subparagraph id="id485FA1ABD1A5496CB662508CEA508443" commented="no"><enum>(C)</enum><header>Phased domestic content requirement</header><text display-inline="yes-display-inline">Subject to subparagraph (D), in the case of any qualified facility which is not described in subparagraph (B), the applicable percentage shall be—</text><clause id="HC35A39F4144E4E7A967E6063219B12D1" commented="no"><enum>(i)</enum><text>if construction of such facility began before January 1, 2024, 100 percent,</text></clause><clause commented="no" id="idFA2D205F02A146D58A54D8EC0F7FC2AA"><enum>(ii)</enum><text>if construction of such facility began in calendar year 2024, 90 percent,</text></clause><clause commented="no" id="idF0DD2D9B1FE34FB5BB00478C4DF082F1"><enum>(iii)</enum><text>if construction of such facility began in calendar year 2025, 85 percent, and </text></clause><clause id="H16D78CC4795E459696FFBB5D4DF8927E" commented="no"><enum>(iv)</enum><text>if construction of such facility began after December 31, 2025, 0 percent.</text></clause></subparagraph><subparagraph id="id90288B5642A345FAB5B8F15C660D255C" commented="no"><enum>(D)</enum><header>Exception</header><clause id="id67F6151E27154FC89F82CD0F3B3ABDFF"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this paragraph, the Secretary shall provide exceptions to the requirements under this paragraph if—</text><subclause id="idD0A01D6960F64399937EA6244498DBFD"><enum>(I)</enum><text>the inclusion of steel, iron, or manufactured products which are produced in the United States increases the overall costs of construction of qualified facilities by more than 25 percent, or</text></subclause><subclause id="id253FDFEA4FB94358A4DA1FF7324EE8D2"><enum>(II)</enum><text display-inline="yes-display-inline">relevant steel, iron, or manufactured products are not produced in the United States in sufficient and reasonably available quantities or of a satisfactory quality.</text></subclause></clause><clause id="id0D468A8EDF3849C6940D2E59DE90D959"><enum>(ii)</enum><header>Applicable percentage</header><text display-inline="yes-display-inline">In any case in which the Secretary provides an exception pursuant to clause (i), the applicable percentage shall be 100 percent.</text></clause></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HD1F39457DA46465DA51ED5A2337B0B1C" commented="no"><enum>(b)</enum><header>Conforming amendments</header><paragraph id="H048F879C243448BBA6D0284D7360E4AB" commented="no"><enum>(1)</enum><text>Section 38(b), as amended by the preceding provisions of this Act, is amended—</text><subparagraph id="HCDD4746E3002434FB5A89F74F6BD50DE" commented="no"><enum>(A)</enum><text>in paragraph (37), by striking <quote>plus</quote> at the end,</text></subparagraph><subparagraph id="HC72CA49DCD454084B98AEEB295C62EE9" commented="no"><enum>(B)</enum><text>in paragraph (38), by striking the period at the end and inserting <quote>, plus</quote>, and</text></subparagraph><subparagraph id="HBD741B3BE471434890212A62ED4BB9D5" commented="no"><enum>(C)</enum><text>by adding at the end the following new paragraph:</text><quoted-block display-inline="no-display-inline" id="H5AA651055BAA41CE86348770210C9293" style="OLC" changed="added" reported-display-style="italic"><paragraph id="H863ECDBC3BDD4C3E9E6057ACA3203109" commented="no"><enum>(39)</enum><text>the clean electricity production credit determined under section 45Y(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="HD8AA38E1043D44758480E96A076C921B" commented="no"><enum>(2)</enum><text>The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by adding at the end the following new item:</text><quoted-block display-inline="no-display-inline" id="HCA8CE42E8EFF47FA94393D83356DE2BB" style="OLC" changed="added" reported-display-style="italic"><toc changed="added" reported-display-style="italic"><toc-entry bold="off" level="section">Sec. 45Y. Clean electricity production credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H5ACBB839866048D9B64DDE8124978267" commented="no"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to facilities placed in service after December 31, 2024.</text></subsection></section><section id="HE5FDAF1570EF4A2987792313AE3BCACF" commented="no"><enum>13702.</enum><header>Clean electricity investment credit</header><subsection id="H0EAAB040834F429F9B5CB16FAE4D4A1D" commented="no"><enum>(a)</enum><header>In general</header><text>Subpart E of part IV of subchapter A of chapter 1, as amended by section 107(a) of the CHIPS Act of 2022, is amended by inserting after section 48D the following new section:</text><quoted-block display-inline="no-display-inline" id="HA3FC5BC9096C4978A5D9A588D27ED847" style="OLC" changed="added" reported-display-style="italic"><section id="H6E3263A4DB774C92A96AD36EB2CC0204" commented="no"><enum>48E.</enum><header>Clean electricity investment credit</header><subsection id="HC625045073B14C27ABFB865209476C53" commented="no"><enum>(a)</enum><header>Investment credit for qualified property</header><paragraph id="H435D2E875EA14CE9A5C2C7EB47919369" commented="no"><enum>(1)</enum><header>In general</header><text>For purposes of section 46, the clean electricity investment credit for any taxable year is an amount equal to the applicable percentage of the qualified investment for such taxable year with respect to—</text><subparagraph id="H783DEB9DFECF4166B671CA29E2E519EF" commented="no"><enum>(A)</enum><text>any qualified facility, and </text></subparagraph><subparagraph id="H9B460530658F49538744458B959C3152" commented="no"><enum>(B)</enum><text>any energy storage technology.</text></subparagraph></paragraph><paragraph id="HE0DBBF21E00A419AA7B8B4E9944D3F58" commented="no"><enum>(2)</enum><header>Applicable percentage</header><subparagraph id="H936529FB5C514880A36C6244290A1FDC" commented="no"><enum>(A)</enum><header>Qualified facilities</header><text>Subject to paragraph (3)—</text><clause id="H1805BB09D56F4289A6F2CDCC3D51B898" commented="no"><enum>(i)</enum><header>Base rate</header><text>In the case of any qualified facility which is not described in subclause (I) or (II) of clause (ii) and does not satisfy the requirements described in subclause (III) of such clause, the applicable percentage shall be 6 percent.</text></clause><clause id="H9CE451C244BA46B1A52C7A989DB56CC8" commented="no"><enum>(ii)</enum><header>Alternative rate</header><text>In the case of any qualified facility—</text><subclause id="H335AB44A021E489886EDFCC111463CFD" commented="no"><enum>(I)</enum><text>with a maximum net output of less than 1 megawatt (as measured in alternating current), </text></subclause><subclause id="HD6F982ED53E2441BB56C8CC7BC2A1D04" commented="no"><enum>(II)</enum><text>the construction of which begins prior to the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (3) and (4) of subsection (d), or</text></subclause><subclause commented="no" id="id4FB0C6C1596848DDA110CCD1FC22D686"><enum>(III)</enum><text>which—</text><item commented="no" id="H30682E090BF540EBB04833C341EE0689"><enum>(aa)</enum><text>satisfies the requirements of subsection (d)(3), and</text></item><item commented="no" id="HA0D922ACB7C84F0DBCDD89D83A05B8BA"><enum>(bb)</enum><text>with respect to the construction of such facility, satisfies the requirements of subsection (d)(4), </text></item></subclause><continuation-text continuation-text-level="clause" commented="no">the applicable percentage shall be 30 percent. </continuation-text></clause></subparagraph><subparagraph id="H3CAE8F7D01B34971BD774F56266B0296" commented="no"><enum>(B)</enum><header>Energy storage technology</header><text>Subject to paragraph (3)—</text><clause id="H0C392EC009564A808CD5F3B52D2C21B1" commented="no"><enum>(i)</enum><header>Base rate</header><text>In the case of any energy storage technology which is not described in subclause (I) or (II) of clause (ii) and does not satisfy the requirements described in subclause (III) of such clause, the applicable percentage shall be 6 percent.</text></clause><clause id="H9390C7CC91FD4C689F5E7669A7330298" commented="no"><enum>(ii)</enum><header>Alternative rate</header><text>In the case of any energy storage technology—</text><subclause id="H02DD412EE87F4BFF8C91DF7C70389578" commented="no"><enum>(I)</enum><text>with a capacity of less than 1 megawatt,</text></subclause><subclause id="H6B19F2E556BC4E7DB5BF4D41F681253E" commented="no"><enum>(II)</enum><text>the construction of which begins prior to the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (3) and (4) of subsection (d), or</text></subclause><subclause commented="no" id="idAC0396EF734D4E648FCECBC7EFF12B77"><enum>(III)</enum><text>which—</text><item commented="no" id="H14A6D4D33F694FECBE7FE3FB4587D580"><enum>(aa)</enum><text>satisfies the requirements of subsection (d)(3), and</text></item><item commented="no" id="H4FEBD235816344A7981E4837F1CEC59B"><enum>(bb)</enum><text display-inline="yes-display-inline">with respect to the construction of such property, satisfies the requirements of subsection (d)(4), </text></item></subclause><continuation-text continuation-text-level="clause" commented="no">the applicable percentage shall be 30 percent. </continuation-text></clause></subparagraph></paragraph><paragraph id="HA9389AB3D5C84898969697152CE701A7" commented="no"><enum>(3)</enum><header>Increase in credit rate in certain cases</header><subparagraph id="H8C8A333FD6904B74983E489E8A3D07E7" commented="no"><enum>(A)</enum><header>Energy communities</header><clause id="HF9949DA4FED243BE823D0FC341C2E6CF" commented="no"><enum>(i)</enum><header>In general</header><text>In the case of any qualified investment with respect to a qualified facility or with respect to energy storage technology which is placed in service within an energy community (as defined in section 45(b)(11)(B)), for purposes of applying paragraph (2) with respect to such property or investment, the applicable percentage shall be increased by the applicable credit rate increase.</text></clause><clause id="H91F7184540144AC8A88F7043C7B8EE5B" commented="no"><enum>(ii)</enum><header>Applicable credit rate increase</header><text>For purposes of clause (i), the applicable credit rate increase shall be an amount equal to—</text><subclause id="H3EAF2FB13CE54A6287F5C599BA63589F" commented="no"><enum>(I)</enum><text>in the case of any qualified investment with respect to a qualified facility described in paragraph (2)(A)(i) or with respect to energy storage technology described in paragraph (2)(B)(i), 2 percentage points, and</text></subclause><subclause id="H8002AF9214F949F587821616E1FBC473" commented="no"><enum>(II)</enum><text>in the case of any qualified investment with respect to a qualified facility described in paragraph (2)(A)(ii) or with respect to energy storage technology described in paragraph (2)(B)(ii), 10 percentage points.</text></subclause></clause></subparagraph><subparagraph id="H505E4ECFE7334B79B4DA75B555BF2604" commented="no"><enum>(B)</enum><header>Domestic content</header><text display-inline="yes-display-inline">Rules similar to the rules of section 48(a)(12) shall apply. </text></subparagraph></paragraph></subsection><subsection id="H9D2E822089EB4C5DB418EA47B5846C9A" commented="no"><enum>(b)</enum><header>Qualified investment with respect to a qualified facility</header><paragraph id="H04C8736AD2594653B322B7DA223CDEBC" commented="no"><enum>(1)</enum><header>In general</header><text>For purposes of subsection (a), the qualified investment with respect to any qualified facility for any taxable year is the sum of—</text><subparagraph id="H48E7E15460A94A648DA3D5B0B5DFCD98" commented="no"><enum>(A)</enum><text>the basis of any qualified property placed in service by the taxpayer during such taxable year which is part of a qualified facility, plus</text></subparagraph><subparagraph id="HFBED85F5993547AEB9F0110A35035E08" commented="no"><enum>(B)</enum><text>the amount of any expenditures which are—</text><clause id="H2B99DF5190A94D35B3C940E6419B949B" commented="no"><enum>(i)</enum><text>paid or incurred by the taxpayer for qualified interconnection property—</text><subclause id="HB859EBEF568A48E88DA635BB0DA79344" commented="no"><enum>(I)</enum><text>in connection with a qualified facility which has a maximum net output of not greater than 5 megawatts (as measured in alternating current), and</text></subclause><subclause id="HD8BA9CA90CA74B3FBCCC054D751920C7" commented="no"><enum>(II)</enum><text>placed in service during the taxable year of the taxpayer, and</text></subclause></clause><clause id="HAEA3847D00EF428496147A28FBC5D20A" commented="no"><enum>(ii)</enum><text>properly chargeable to capital account of the taxpayer.</text></clause></subparagraph></paragraph><paragraph id="H5DE8CBB982134D46A6129B5283513B01" commented="no"><enum>(2)</enum><header>Qualified property</header><text>For purposes of this section, the term <term>qualified property</term> means property—</text><subparagraph id="H48541A162EFA4678B80BD8255BE57CA9" commented="no"><enum>(A)</enum><text>which is—</text><clause id="HF23F8D3B9578415B9B82916B9F716888" commented="no"><enum>(i)</enum><text>tangible personal property, or</text></clause><clause id="HF3B16EA9FA534D6F87BF230422AEE356" commented="no"><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 qualified facility,</text></clause></subparagraph><subparagraph id="HD4BBB2229ED24F00B5457B9A8062888B" commented="no"><enum>(B)</enum><text>with respect to which depreciation (or amortization in lieu of depreciation) is allowable, and</text></subparagraph><subparagraph id="HC19CE70E120F4433A2D4828616C5E9FE" commented="no"><enum>(C)</enum><clause commented="no" display-inline="yes-display-inline" id="H61C710CEAC25403AAFDBEC572D56990C"><enum>(i)</enum><text>the construction, reconstruction, or erection of which is completed by the taxpayer, or</text></clause><clause indent="up1" id="HA8CB0EE669B34867A8C5ABE9D39B005C" commented="no"><enum>(ii)</enum><text>which is acquired by the taxpayer if the original use of such property commences with the taxpayer.</text></clause></subparagraph></paragraph><paragraph commented="no" id="H2794B9CE0A7642958BDE58C229DBC385"><enum>(3)</enum><header>Qualified facility</header><subparagraph commented="no" id="H7C5F9C18FCA34CF4A1CDC0B3EA944515"><enum>(A)</enum><header>In general</header><text>For purposes of this section, the term <term>qualified facility</term> means a facility—</text><clause commented="no" id="H1FBF5590AC844C1D99978FDD119680DE"><enum>(i)</enum><text>which is used for the generation of electricity,</text></clause><clause commented="no" id="HFF8343F6F6674A54A7F5755B5B5F89A2"><enum>(ii)</enum><text>which is placed in service after December 31, 2024, and</text></clause><clause commented="no" id="H69EC18C11B16470A857498FBBB800F57"><enum>(iii)</enum><text>for which the anticipated greenhouse gas emissions rate (as determined under subparagraph (B)(ii)) is not greater than zero.</text></clause></subparagraph><subparagraph commented="no" id="H50B8315547CD403F9D30433B8EE137B7"><enum>(B)</enum><header>Additional rules</header><clause commented="no" id="H6B04D4C7C0A8447E98DC771CD8C9E882"><enum>(i)</enum><header>Expansion of facility; incremental production</header><text>Rules similar to the rules of section 45Y(b)(1)(C) shall apply for purposes of this paragraph.</text></clause><clause commented="no" id="H7DC8C7B3BE934D918D801DE5FCFB18D4"><enum>(ii)</enum><header>Greenhouse gas emissions rate</header><text>Rules similar to the rules of section 45Y(b)(2) shall apply for purposes of this paragraph.</text></clause></subparagraph><subparagraph commented="no" id="H327B9DA7BE14446B9E0033BD5FD9A29D"><enum>(C)</enum><header>Exclusion</header><text>The term <term>qualified facility</term> shall not include any facility for which—</text><clause commented="no" id="HE5E030A4F88C42D690CAFD9734621A1D"><enum>(i)</enum><text>a renewable electricity production credit determined under section 45, </text></clause><clause commented="no" id="H92084EFD34714A4C864222F302027073"><enum>(ii)</enum><text>an advanced nuclear power facility production credit determined under section 45J, </text></clause><clause commented="no" id="H4BD2171D46E046F290A0C19575D95F6C"><enum>(iii)</enum><text>a carbon oxide sequestration credit determined under section 45Q,</text></clause><clause commented="no" id="H9ACD006CCB4F45F3B90F766CC57F2BE5"><enum>(iv)</enum><text>a zero-emission nuclear power production credit determined under section 45U,</text></clause><clause commented="no" id="id9EF2A51AF4324BF8BDD923CB0D0D2508"><enum>(v)</enum><text>a clean electricity production credit determined under section 45Y,</text></clause><clause commented="no" id="H481D161C10B941A7B912FCCE9BCDFC41"><enum>(vi)</enum><text>an energy credit determined under section 48, or</text></clause><clause commented="no" id="H1B77891EA0EC4C0CB0D123ED706657BC"><enum>(vii)</enum><text>a qualifying advanced coal project credit under section 48A,</text></clause><continuation-text continuation-text-level="subparagraph" commented="no">is allowed under section 38 for the taxable year or any prior taxable year. </continuation-text></subparagraph></paragraph><paragraph commented="no" id="H1654642891A54A50953FA623557709CA"><enum>(4)</enum><header>Qualified interconnection property</header><text>For purposes of this paragraph, the term <quote>qualified interconnection property</quote> has the meaning given such term in section 48(a)(8)(B). </text></paragraph><paragraph id="HA328601041904B479BB9ADBB66A44220" commented="no"><enum>(5)</enum><header>Coordination with rehabilitation credit</header><text>The qualified investment with respect to any qualified facility for any taxable year shall not include that portion of the basis of any property which is attributable to qualified rehabilitation expenditures (as defined in section 47(c)(2)).</text></paragraph><paragraph id="HB844D0351F7C4C5EB10BC91A9840F162" commented="no"><enum>(6)</enum><header>Definitions</header><text>For purposes of this subsection, the terms <term>CO2e per KWh</term> and <term>greenhouse gas emissions rate</term> have the same meaning given such terms under section 45Y. </text></paragraph></subsection><subsection id="HC1E5D870CCAA4494BF420F27AC2F754E" commented="no"><enum>(c)</enum><header>Qualified investment with respect to energy storage technology</header><paragraph id="H4547705647F0417D8948BD91DA8D1D43" commented="no"><enum>(1)</enum><header>Qualified investment</header><text>For purposes of subsection (a), the qualified investment with respect to energy storage technology for any taxable year is the basis of any energy storage technology placed in service by the taxpayer during such taxable year.</text></paragraph><paragraph id="HA2EFCA033E564FB0A91E4B1D8114D986" commented="no"><enum>(2)</enum><header>Energy storage technology</header><text>For purposes of this section, the term <term>energy storage technology</term> has the meaning given such term in section 48(c)(6) (except that subparagraph (D) of such section shall not apply).</text></paragraph></subsection><subsection id="H7BBF485F0BDC41B6BCE0B0F87AD60177" commented="no"><enum>(d)</enum><header>Special rules</header><paragraph id="HBB5D4184A5504BCF8051C8E82CAB5BBA" commented="no"><enum>(1)</enum><header>Certain progress expenditure rules made applicable</header><text>Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of subsection (a).</text></paragraph><paragraph id="H195EECCD664F472DBAA45D0BFE2B8EBB" commented="no"><enum>(2)</enum><header>Special rule for property financed by subsidized energy financing or private activity bonds</header><text>Rules similar to the rules of section 45(b)(3) shall apply.</text></paragraph><paragraph commented="no" id="HA24922E5D5834200B3E1D22E93896679"><enum>(3)</enum><header>Prevailing wage requirements</header><text display-inline="yes-display-inline">Rules similar to the rules of section 48(a)(10) shall apply.</text></paragraph><paragraph id="H4B4591B584BE48DEB0C93E39531DBE88" commented="no"><enum>(4)</enum><header>Apprenticeship requirements</header><text>Rules similar to the rules of section 45(b)(8) shall apply.</text></paragraph><paragraph id="HAB4E28F0FBBA4050B8B891BD9EB4F18A" commented="no"><enum>(5)</enum><header>Domestic content requirement for elective payment</header><text>In the case of a taxpayer making an election under section 6417 with respect to a credit under this section, rules similar to the rules of section 45Y(g)(12) shall apply. </text></paragraph></subsection><subsection id="H3499EFC2D24D46998511914F1B3C1655" commented="no"><enum>(e)</enum><header>Credit phase-Out</header><paragraph id="H403C656ABC724DE5BE606808444EC0D6" commented="no"><enum>(1)</enum><header>In general</header><text>The amount of the clean electricity investment credit under subsection (a) for any qualified investment with respect to any qualified facility or energy storage technology the construction of which begins during a calendar year described in paragraph (2) shall be equal to the product of—</text><subparagraph id="HBE120BD5097A419D9C29FF7445E89DA9" commented="no"><enum>(A)</enum><text>the amount of the credit determined under subsection (a) without regard to this subsection, multiplied by</text></subparagraph><subparagraph id="H6F0D085D8EA44C7C922D473B265D25E2" commented="no"><enum>(B)</enum><text>the phase-out percentage under paragraph (2).</text></subparagraph></paragraph><paragraph id="H5A296D170512450CBEF5B8281435DCAF" commented="no"><enum>(2)</enum><header>Phase-out percentage</header><text>The phase-out percentage under this paragraph is equal to—</text><subparagraph id="H61994F45DE0E46B8B2DA7AF1965FB361" commented="no"><enum>(A)</enum><text>for any qualified investment with respect to any qualified facility or energy storage technology the construction of which begins during the first calendar year following the applicable year, 100 percent,</text></subparagraph><subparagraph id="H73F21A3BC5094432B96B6AEA1DD29C81" commented="no"><enum>(B)</enum><text>for any qualified investment with respect to any qualified facility or energy storage technology the construction of which begins during the second calendar year following the applicable year, 75 percent,</text></subparagraph><subparagraph id="H8C0E95A6E060434C855E1661E42E9CA9" commented="no"><enum>(C)</enum><text>for any qualified investment with respect to any qualified facility or energy storage technology the construction of which begins during the third calendar year following the applicable year, 50 percent, and</text></subparagraph><subparagraph commented="no" id="HB016A09DCC33481B82F667F3941C86E8"><enum>(D)</enum><text>for any qualified investment with respect to any qualified facility or energy storage technology the construction of which begins during any calendar year subsequent to the calendar year described in subparagraph (C), 0 percent.</text></subparagraph></paragraph><paragraph commented="no" id="HF9E53813F6114D118E17812A5D95895C"><enum>(3)</enum><header>Applicable year</header><text>For purposes of this subsection, the term <term>applicable year</term> has the same meaning given such term in section 45Y(d)(3).</text></paragraph></subsection><subsection id="H1E75F892E1FA4D5C97FA17A8EB093E3A" commented="no"><enum>(f)</enum><header>Greenhouse gas</header><text>In this section, the term <term>greenhouse gas</term> has the same meaning given such term under section 45Y(e)(2).</text></subsection><subsection commented="no" id="H8DFF7D91A2B34639874DCC8C22403F55"><enum>(g)</enum><header>Recapture of credit</header><text>For purposes of section 50, if the Secretary determines that the greenhouse gas emissions rate for a qualified facility is greater than 10 grams of CO<subscript>2</subscript>e per KWh, any property for which a credit was allowed under this section with respect to such facility shall cease to be investment credit property in the taxable year in which the determination is made.</text></subsection><subsection id="idD33FC964EDC14C18AC844A7DA4BEFCB1"><enum>(h)</enum><header>Special rules for certain facilities placed in service in connection with low-income communities</header><paragraph id="id3691D48BB47E42FD94154F39037C4731"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any applicable facility with respect to which the Secretary makes an allocation of environmental justice capacity limitation under paragraph (4)—</text><subparagraph id="id4D1BACCBF218430886220E33B7F51D74"><enum>(A)</enum><text>the applicable percentage otherwise determined under subsection (a)(2) with respect to any eligible property which is part of such facility shall be increased by—</text><clause id="id312D6605DF4A4C379FB37543B1EB2990"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of a facility described in subclause (I) of paragraph (2)(A)(iii) and not described in subclause (II) of such paragraph, 10 percentage points, and </text></clause><clause id="idA69F4542BCFA426688DCFD47C77087FF"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of a facility described in subclause (II) of paragraph (2)(A)(iii), 20 percentage points, and</text></clause></subparagraph><subparagraph id="idE716EB36CED84400A899579DB7A4F928"><enum>(B)</enum><text>the increase in the credit determined under subsection (a) by reason of this subsection for any taxable year with respect to all property which is part of such facility shall not exceed the amount which bears the same ratio to the amount of such increase (determined without regard to this subparagraph) as—</text><clause id="id90806CF8661A40DDB4B2396906A2854F"><enum>(i)</enum><text>the environmental justice capacity limitation allocated to such facility, bears to</text></clause><clause id="id11A04B097DE1450ABAE0C9C42414FB6D"><enum>(ii)</enum><text>the total megawatt nameplate capacity of such facility, as measured in direct current.</text></clause></subparagraph></paragraph><paragraph id="idC137F5C9C0334C5896ABCB9009E551D5"><enum>(2)</enum><header>Applicable facility</header><text>For purposes of this subsection—</text><subparagraph id="id6D92A8573F38402D987592FF26A5C0B5"><enum>(A)</enum><header>In general</header><text>The term <quote>applicable facility</quote> means any qualified facility—</text><clause id="id8434FE6253534DB4B42826023B9B4904"><enum>(i)</enum><text display-inline="yes-display-inline">which is not described in section 45Y(b)(2)(B), </text></clause><clause id="id7A98DDC329A1447794239A04E2DA7AE1"><enum>(ii)</enum><text>which has a maximum net output of less than 5 megawatts (as measured in alternating current), and</text></clause><clause id="id57A804746CBC49FD9F6A8A903C874B45"><enum>(iii)</enum><text>which—</text><subclause id="idD085536F290440F29450FF52B63B6728"><enum>(I)</enum><text>is located in a low-income community (as defined in section 45D(e)) or on Indian land (as defined in section 2601(2) of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/25/3501">25 U.S.C. 3501(2)</external-xref>)), or</text></subclause><subclause id="id30A8E1ED03484384B27714DFB90913F0"><enum>(II)</enum><text>is part of a qualified low-income residential building project or a qualified low-income economic benefit project.</text></subclause></clause></subparagraph><subparagraph id="id9AAAB1C9465843A6A7CC5D68A6C7CFAB"><enum>(B)</enum><header>Qualified low-income residential building project</header><text>A facility shall be treated as part of a qualified low-income residential building project if—</text><clause id="idB24BF32BF8594D068B887790F6EC7580"><enum>(i)</enum><text display-inline="yes-display-inline">such facility is installed on a residential rental building which participates in a covered housing program (as defined in section 41411(a) of the Violence Against Women Act of 1994 (<external-xref legal-doc="usc" parsable-cite="usc/34/12491">34 U.S.C. 12491(a)(3)</external-xref>), a housing assistance program administered by the Department of Agriculture under title V of the Housing Act of 1949, a housing program administered by a tribally designated housing entity (as defined in section 4(22) of the Native American Housing Assistance and Self-Determination Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/25/4103">25 U.S.C. 4103(22)</external-xref>)) or such other affordable housing programs as the Secretary may provide, and</text></clause><clause id="id28AAA9CFAA294205B2E0BAB64BB9930C"><enum>(ii)</enum><text>the financial benefits of the electricity produced by such facility are allocated equitably among the occupants of the dwelling units of such building.</text></clause></subparagraph><subparagraph id="id85D76429BB6B4AFDAF1F47DD9CFA5069"><enum>(C)</enum><header>Qualified low-income economic benefit project</header><text display-inline="yes-display-inline">A facility shall be treated as part of a qualified low-income economic benefit project if at least 50 percent of the financial benefits of the electricity produced by such facility are provided to households with income of—</text><clause id="idBE2D5210ADBC4435A9A9F7A3FE42D58B"><enum>(i)</enum><text>less than 200 percent of the poverty line (as defined in section 36B(d)(3)(A)) applicable to a family of the size involved, or</text></clause><clause id="id5C1BBD10639145CF852934B19371A65B"><enum>(ii)</enum><text>less than 80 percent of area median gross income (as determined under section 142(d)(2)(B)). </text></clause></subparagraph><subparagraph id="id9A5C278B49AE40D8A70B1F5B2E4942FE"><enum>(D)</enum><header>Financial benefit</header><text>For purposes of subparagraphs (B) and (C), electricity acquired at a below-market rate shall not fail to be taken into account as a financial benefit.</text></subparagraph></paragraph><paragraph id="idF5A2F63918804FBCB19410E173CED893" commented="no"><enum>(3)</enum><header>Eligible property</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>eligible property</quote> means a qualified investment with respect to any applicable facility.</text></paragraph><paragraph id="idE3BCD089D13D4F90A0402FEB85DE2C14" commented="no"><enum>(4)</enum><header>Allocations</header><subparagraph id="idA86183F6A94745B8A2D8B56A4372B6C5" commented="no" display-inline="no-display-inline"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than January 1, 2025, the Secretary shall establish a program to allocate amounts of environmental justice capacity limitation to applicable facilities. In establishing such program and to carry out the purposes of this subsection, the Secretary shall provide procedures to allow for an efficient allocation process, including, when determined appropriate, consideration of multiple projects in a single application if such projects will be placed in service by a single taxpayer. </text></subparagraph><subparagraph id="id012A04FCAB884DC280D6E1076FB83D9C" commented="no"><enum>(B)</enum><header>Limitation</header><text display-inline="yes-display-inline">The amount of environmental justice capacity limitation allocated by the Secretary under subparagraph (A) during any calendar year shall not exceed the annual capacity limitation with respect to such year. </text></subparagraph><subparagraph id="id88A0D132AC444085836E6E00485F3F40" commented="no"><enum>(C)</enum><header>Annual capacity limitation</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term <term>annual capacity limitation</term> means 1.8 gigawatts of direct current capacity for each calendar year during the period beginning on January 1, 2025, and ending on December 31 of the applicable year (as defined in section 45Y(d)(3)), and zero thereafter.</text></subparagraph><subparagraph id="id62F5521812AD4A1991A663E46117AFB6" display-inline="no-display-inline"><enum>(D)</enum><header>Carryover of unused limitation</header><clause id="id9EF6DACE739846F18EB41F3D6503519E"><enum>(i)</enum><header>In general</header><text>If the annual capacity limitation for any calendar year exceeds the aggregate amount allocated for such year under this paragraph, such limitation for the succeeding calendar year shall be increased by the amount of such excess. No amount may be carried under the preceding sentence to any calendar year after the third calendar year following the applicable year (as defined in section 45Y(d)(3)).</text></clause><clause id="id4780E5186504476FA5EBA298A45B070A"><enum>(ii)</enum><header>Carryover from section 48 for calendar year 2025</header><text display-inline="yes-display-inline">If the annual capacity limitation for calendar year 2024 under section 48(e)(4)(D) exceeds the aggregate amount allocated for such year under such section, such excess amount may be carried over and applied to the annual capacity limitation under this subsection for calendar year 2025. The annual capacity limitation for calendar year 2025 shall be increased by the amount of such excess.</text></clause></subparagraph><subparagraph id="idC8ED6B8180854824AD803503B61D5491"><enum>(E)</enum><header>Placed in service deadline</header><clause id="id9DB4E34B042F4FE3A80B1DE521B19E1D"><enum>(i)</enum><header>In general</header><text>Paragraph (1) shall not apply with respect to any property which is placed in service after the date that is 4 years after the date of the allocation with respect to the facility of which such property is a part.</text></clause><clause id="id657FA7AC3E82418688C5AFB30D6D3D4A"><enum>(ii)</enum><header>Application of carryover</header><text display-inline="yes-display-inline">Any amount of environmental justice capacity limitation which expires under clause (i) during any calendar year shall be taken into account as an excess described in subparagraph (D)(i) (or as an increase in such excess) for such calendar year, subject to the limitation imposed by the last sentence of such subparagraph.</text></clause></subparagraph></paragraph><paragraph id="id578EDFAED21943988133E8E3BA0BE06F"><enum>(5)</enum><header>Recapture</header><text display-inline="yes-display-inline">The Secretary shall, by regulations or other guidance, provide for recapturing the benefit of any increase in the credit allowed under subsection (a) by reason of this subsection with respect to any property which ceases to be property eligible for such increase (but which does not cease to be investment credit property within the meaning of section 50(a)). The period and percentage of such recapture shall be determined under rules similar to the rules of section 50(a). To the extent provided by the Secretary, such recapture may not apply with respect to any property if, within 12 months after the date the taxpayer becomes aware (or reasonably should have become aware) of such property ceasing to be property eligible for such increase, the eligibility of such property for such increase is restored. The preceding sentence shall not apply more than once with respect to any facility. </text></paragraph></subsection><subsection id="HB694F4C5953E4C38B1B2493278CF105D" commented="no"><enum>(i)</enum><header>Guidance</header><text>Not later than January 1, 2025, the Secretary shall issue guidance regarding implementation of this section.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H6E4A259E4D5F4F3AB3F2022DFF6CEB8E" commented="no"><enum>(b)</enum><header>Conforming amendments</header><paragraph id="HC2B75A803CA74F70B214CDE244EDB66D" commented="no"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/46">Section 46</external-xref>, as amended by section 107(d) of the CHIPS Act of 2022, is amended—</text><subparagraph commented="no" id="idE191C4FF247F4537B112D0BA91CBED9B"><enum>(A)</enum><text>in paragraph (5), by striking <quote>and</quote> at the end,</text></subparagraph><subparagraph commented="no" id="id4C657AB62A69419BB31EE9AABA802756"><enum>(B)</enum><text>in paragraph (6), by striking the period at the end and inserting <quote>, and</quote>, and</text></subparagraph><subparagraph commented="no" id="id392B6CC160D948319EF84776AE828B35"><enum>(C)</enum><text>by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="H0E0433D047D54BBE8173DE947CF35609" style="OLC" changed="added" reported-display-style="italic"><paragraph id="HA658E89C7BB44BAC83A71877A0DEB722" commented="no"><enum>(7)</enum><text>the clean electricity investment credit.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="H326BBE220DDD48C1ACB1E0BE1C382C44" commented="no"><enum>(2)</enum><text>Section 49(a)(1)(C), as amended by section 107(d) of the CHIPS Act of 2022, is amended—</text><subparagraph id="H552DC9BA95144245849B629F60AC6D09" commented="no"><enum>(A)</enum><text>by striking <quote>and</quote> at the end of clause (v),</text></subparagraph><subparagraph id="H66AE6C9A866741709AF30399289E84F8" commented="no"><enum>(B)</enum><text>by striking the period at the end of clause (vi) and inserting a comma, and</text></subparagraph><subparagraph id="HD9DFDB875307462CA6BE6DD4ADB97C72" commented="no"><enum>(C)</enum><text>by adding at the end the following new clauses:</text><quoted-block display-inline="no-display-inline" id="H7A603A4B69CA4766A8C436DF0FBD7B2B" style="OLC" changed="added" reported-display-style="italic"><clause id="HF92222CF43C94DA7B8F5F272AE239E64" commented="no"><enum>(vii)</enum><text>the basis of any qualified property which is part of a qualified facility under section 48E, and</text></clause><clause id="H8835EDB669834A898A322911261E05FB" commented="no"><enum>(viii)</enum><text>the basis of any energy storage technology under section 48E.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="HD483A0A2DD144044950A7AB41780283C" commented="no"><enum>(3)</enum><text>Section 50(a)(2)(E), as amended by section 107(d) of the CHIPS Act of 2022, is amended by striking <quote>or 48D(b)(5)</quote> and inserting <quote>48D(b)(5), or 48E(e)</quote>.</text></paragraph><paragraph id="HB562F292DBC34AD5A98CA5482C176A7C" commented="no"><enum>(4)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/50">Section 50(c)(3)</external-xref> is amended by inserting <quote>or clean electricity investment credit</quote> after <quote>In the case of any energy credit</quote>.</text></paragraph><paragraph id="HC0EFA0C779AC423BBE5243C9438F7243" commented="no"><enum>(5)</enum><text>The table of sections for subpart E of part IV of subchapter A of chapter 1, as amended by section 107(d) of the CHIPS Act of 2022, is amended by inserting after the item relating to section 48D the following new item:</text><quoted-block display-inline="no-display-inline" id="HDA23346FD9C14D5FB8FFB61FB5DC29EE" style="OLC" changed="added" reported-display-style="italic"><toc changed="added" reported-display-style="italic"><toc-entry bold="off" level="section">48E. Clean electricity investment credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H04656395DE614EBE980CB973342CBE56" commented="no"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after December 31, 2024.</text></subsection></section><section commented="no" id="HC0FECA73F4BA41B68BA16C47D450187B"><enum>13703.</enum><header>Cost recovery for qualified facilities, qualified property, and energy storage technology</header><subsection commented="no" id="H2E0C1FE726B5438CB7BF1D5682CE5C9B"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/168">Section 168(e)(3)(B)</external-xref> is amended—</text><paragraph commented="no" id="HE68FE5B12EF64873A543D26E9A304967"><enum>(1)</enum><text>in clause (vi)(III), by striking <quote>and</quote> at the end,</text></paragraph><paragraph commented="no" id="H0AEBFBA65C5545B383EE282F0ADBA6FC"><enum>(2)</enum><text>in clause (vii), by striking the period at the end and inserting <quote>, and</quote>, and</text></paragraph><paragraph commented="no" id="H783BFED138B4409194DB7D5E6366D533"><enum>(3)</enum><text>by inserting after clause (vii) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HC145382B39F54BAFA04E9E705A8DB7CC" changed="added" reported-display-style="italic"><clause commented="no" id="H8C8F770D690143F1927DF2FF1C449A57"><enum>(viii)</enum><text>any qualified facility (as defined in section 45Y(b)(1)(A)), any qualified property (as defined in subsection (b)(2) of section 48E) which is a qualified investment (as defined in subsection (b)(1) of such section), or any energy storage technology (as defined in subsection (c)(2) of such section).</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection commented="no" id="H13C87FE511674B528F8EFCBE0029E970"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to facilities and property placed in service after December 31, 2024.</text></subsection></section><section id="HB2C548BA403445ECA84F9F61C7023CA1" commented="no"><enum>13704.</enum><header>Clean fuel production credit</header><subsection id="H5E05AC1614ED4323BBBC5CEA3E89D996" commented="no"><enum>(a)</enum><header>In general</header><text>Subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by adding at the end the following new section:</text><quoted-block display-inline="no-display-inline" id="H2C284E2690514706807D03820AD1AE51" style="OLC" changed="added" reported-display-style="italic"><section id="H656B060B86EC473C85BCDCC593AE8CCC" commented="no"><enum>45Z.<?LEXA-Enum 45BB.?></enum><header>Clean fuel production credit</header><subsection id="HAEB33710A8C44DA58519026C4878B8DC" commented="no"><enum>(a)</enum><header>Amount of credit</header><paragraph id="HF66AF75DE0BD4D6EB59C1CF53123F8C2" commented="no"><enum>(1)</enum><header>In general</header><text>For purposes of section 38, the clean fuel production credit for any taxable year is an amount equal to the product of—</text><subparagraph id="HB7EBF49BFA4C4640B1CFA8C2A295124E" commented="no"><enum>(A)</enum><text>the applicable amount per gallon (or gallon equivalent) with respect to any transportation fuel which is—</text><clause id="HF9963D2F889B48A1BA65D9F8E212D6AD" commented="no"><enum>(i)</enum><text>produced by the taxpayer at a qualified facility, and</text></clause><clause id="HE88EAA1B47334B1DB170084F5008E90F" commented="no"><enum>(ii)</enum><text>sold by the taxpayer in a manner described in paragraph (4) during the taxable year, and</text></clause></subparagraph><subparagraph id="HDE408395791F437AAD39E49CF8E6B239" commented="no"><enum>(B)</enum><text>the emissions factor for such fuel (as determined under subsection (b)).</text></subparagraph></paragraph><paragraph id="H9E24F96FB1224F378101507B29C876EE" commented="no"><enum>(2)</enum><header>Applicable amount</header><subparagraph id="H4218D54BFCBA4D168935B4682CF2AAD7" commented="no"><enum>(A)</enum><header>Base amount</header><text>In the case of any transportation fuel produced at a qualified facility which does not satisfy the requirements described in subparagraph (B), the applicable amount shall be 20 cents.</text></subparagraph><subparagraph id="H6461F47333294AD5BDB8A8FBB23462B8" commented="no"><enum>(B)</enum><header>Alternative amount</header><text display-inline="yes-display-inline">In the case of any transportation fuel produced at a qualified facility which satisfies the requirements under paragraphs (6) and (7) of subsection (f), the applicable amount shall be $1.00. </text></subparagraph></paragraph><paragraph id="H72F4225AF7A84B9792B1332D744A952F" commented="no"><enum>(3)</enum><header>Special rate for sustainable aviation fuel</header><subparagraph id="H6891F6E71CD74E5DA926A45A64822C51" commented="no"><enum>(A)</enum><header>In general</header><text>In the case of a transportation fuel which is sustainable aviation fuel, paragraph (2) shall be applied—</text><clause commented="no" id="HBFAB478C689A4D658AD14681A0E74248"><enum>(i)</enum><text>in the case of fuel produced at a qualified facility described in paragraph (2)(A), by substituting <quote>35 cents</quote> for <quote>20 cents</quote>, and</text></clause><clause commented="no" id="HC01A8284771F4315AD0679890B75FAA6"><enum>(ii)</enum><text>in the case of fuel produced at a qualified facility described in paragraph (2)(B), by substituting <quote>$1.75</quote> for <quote>$1.00</quote>.</text></clause></subparagraph><subparagraph id="H91D133FFF490469BAEDCA029A4C10D59" commented="no"><enum>(B)</enum><header>Sustainable aviation fuel</header><text display-inline="yes-display-inline">For purposes of this subparagraph (A), the term <term>sustainable aviation fuel</term> means liquid fuel, the portion of which is not kerosene, which is sold for use in an aircraft and which—</text><clause id="H27CA8395BE624E19A8A5E2417D6F3E9E" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">meets the requirements of—</text><subclause id="H6A46F36AF7E5425DA60396DD10DCDF28" commented="no"><enum>(I)</enum><text>ASTM International Standard D7566, or</text></subclause><subclause id="HD6C843D4F9B94533984FA8CBC3E8723C" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">the Fischer Tropsch provisions of ASTM International Standard D1655, Annex A1, and</text></subclause></clause><clause id="H9079D4A9CF884C019116499721F2FFA5" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">is not derived from palm fatty acid distillates or petroleum.</text></clause></subparagraph></paragraph><paragraph id="HD29AEECF454C4D5F94F62CFB71DAEFC3" commented="no"><enum>(4)</enum><header>Sale</header><text>For purposes of paragraph (1), the transportation fuel is sold in a manner described in this paragraph if such fuel is sold by the taxpayer to an unrelated person—</text><subparagraph id="H89633902E830405197E1169329F1F182" commented="no"><enum>(A)</enum><text>for use by such person in the production of a fuel mixture,</text></subparagraph><subparagraph id="H3FFAD5D16BE2429BBD8150A42698246F" commented="no"><enum>(B)</enum><text>for use by such person in a trade or business, or</text></subparagraph><subparagraph id="H668DB2949647435094B2E58A02CF23C7" commented="no"><enum>(C)</enum><text>who sells such fuel at retail to another person and places such fuel in the fuel tank of such other person.</text></subparagraph></paragraph><paragraph id="H181DF5E863CC4177AD62DF9807AB6A66" commented="no"><enum>(5)</enum><header>Rounding</header><text>If any amount determined under paragraph (1) is not a multiple of 1 cent, such amount shall be rounded to the nearest cent.</text></paragraph></subsection><subsection id="H560D3D9F652D4915A5A98D4FF37CA70B" commented="no"><enum>(b)</enum><header>Emissions factors</header><paragraph id="HD4D6E9FD4D6341409F1A7F91E523436A" commented="no"><enum>(1)</enum><header>Emissions factor</header><subparagraph id="H51E9FCB8972E45E2941C25EECC142E75" commented="no"><enum>(A)</enum><header>Calculation</header><clause id="H751F1B21006A4ECAB84B6F68AAF26611" commented="no"><enum>(i)</enum><header>In general</header><text>The emissions factor of a transportation fuel shall be an amount equal to the quotient of—</text><subclause id="H80A0BD265305438B93FB30C02717F5B4" commented="no"><enum>(I)</enum><text>an amount equal to—</text><item id="H4E9B9C0157684BC09974802F79005A84" commented="no"><enum>(aa)</enum><text>50 kilograms of CO<subscript>2</subscript>e per mmBTU, minus</text></item><item id="H65CFEF4FDC2C446FABF926C4583C59D6" commented="no"><enum>(bb)</enum><text>the emissions rate for such fuel, divided by</text></item></subclause><subclause id="H257CEBC745F545C0B348B9F0C04D3838" commented="no"><enum>(II)</enum><text>50 kilograms of CO<subscript>2</subscript>e per mmBTU.</text></subclause></clause></subparagraph><subparagraph id="H3767C34A6C214991BE9B182C61D2BC7D" commented="no"><enum>(B)</enum><header>Establishment of emissions rate</header><clause id="H14AF8BFEE67A48A19112744C28C99563" commented="no"><enum>(i)</enum><header>In general</header><text>Subject to clauses (ii) and (iii), the Secretary shall annually publish a table which sets forth the emissions rate for similar types and categories of transportation fuels based on the amount of lifecycle greenhouse gas emissions (as described in section 211(o)(1)(H) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(1)(H)</external-xref>), as in effect on the date of the enactment of this section) for such fuels, expressed as kilograms of CO<subscript>2</subscript>e per mmBTU, which a taxpayer shall use for purposes of this section.</text></clause><clause id="H7AD4FE2F125640878E432C3A5DC6C40D" commented="no"><enum>(ii)</enum><header>Non-aviation fuel</header><text>In the case of any transportation fuel which is not a sustainable aviation fuel, the lifecycle greenhouse gas emissions of such fuel shall be based on the most recent determinations under the Greenhouse gases, Regulated Emissions, and Energy use in Transportation model developed by Argonne National Laboratory, or a successor model (as determined by the Secretary).</text></clause><clause id="HC4E591A0507E469FB9765DFC95A7216D" commented="no"><enum>(iii)</enum><header>Aviation fuel</header><text>In the case of any transportation fuel which is a sustainable aviation fuel, the lifecycle greenhouse gas emissions of such fuel shall be determined in accordance with—</text><subclause id="idF4C2DB779F4648D089505480C4393CF0"><enum>(I)</enum><text>the most recent Carbon Offsetting and Reduction Scheme for International Aviation which has been adopted by the International Civil Aviation Organization with the agreement of the United States, or</text></subclause><subclause id="idB48674C68AF94BDC99AD0920AB128428"><enum>(II)</enum><text>any similar methodology which satisfies the criteria under section 211(o)(1)(H) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(1)(H)</external-xref>), as in effect on the date of enactment of this section.</text></subclause></clause></subparagraph><subparagraph id="H805C84E9CE8242B7A41DA81E09E4ADA2" commented="no"><enum>(C)</enum><header>Rounding of emissions rate</header><clause commented="no" id="id59C6CA8E63F24DB4A5ABD130C25D1CE9"><enum>(i)</enum><header>In general</header><text>Subject to clause (ii), the Secretary may round the emissions rates under subparagraph (B) to the nearest multiple of 5 kilograms of CO<subscript>2</subscript>e per mmBTU.</text></clause><clause commented="no" id="id72781648DF35406485F4028A6AF031A0"><enum>(ii)</enum><header>Exception</header><text>In the case of an emissions rate that is between 2.5 kilograms of CO<subscript>2</subscript>e per mmBTU and -2.5 kilograms of CO<subscript>2</subscript>e per mmBTU, the Secretary may round such rate to zero.</text></clause></subparagraph><subparagraph id="HEEB6857C7B0745B793B4EA1AF5F029CF" commented="no"><enum>(D)</enum><header>Provisional emissions rate</header><text>In the case of any transportation fuel for which an emissions rate has not been established under subparagraph (B), a taxpayer producing such fuel may file a petition with the Secretary for determination of the emissions rate with respect to such fuel.</text></subparagraph></paragraph><paragraph id="H38CE9C165A7644C4A6FAA12E5F6301C3" commented="no"><enum>(2)</enum><header>Rounding</header><text>If any amount determined under paragraph (1)(A) is not a multiple of 0.1, such amount shall be rounded to the nearest multiple of 0.1.</text></paragraph></subsection><subsection id="HD5F34BB2D3F741209CFAB0795698E978" commented="no"><enum>(c)</enum><header>Inflation adjustment</header><paragraph id="HF4220C0E8BD7401EADA07DD8951E8B55" commented="no"><enum>(1)</enum><header>In general</header><text>In the case of calendar years beginning after 2024, the 20 cent amount in subsection (a)(2)(A), the $1.00 amount in subsection (a)(2)(B), the 35 cent amount in subsection (a)(3)(A)(i), and the $1.75 amount in subsection (a)(3)(A)(ii) shall each be adjusted by multiplying such amount by the inflation adjustment factor for the calendar year in which the sale of the transportation fuel occurs. If any amount as increased under the preceding sentence is not a multiple of 1 cent, such amount shall be rounded to the nearest multiple of 1 cent.</text></paragraph><paragraph id="H4C1D0BCC8D77488CA4EE06D337929D76" commented="no"><enum>(2)</enum><header>Inflation adjustment factor</header><text>For purposes of paragraph (1), the inflation adjustment factor shall be the inflation adjustment factor determined and published by the Secretary pursuant to section 45Y(c), determined by substituting <quote>calendar year 2022</quote> for <quote>calendar year 1992</quote> in paragraph (3) thereof.</text></paragraph></subsection><subsection id="HDE8CF0DA10614FD7BC2E6EA0FA0F4686" commented="no"><enum>(d)</enum><header>Definitions</header><text>In this section:</text><paragraph id="HDAAEFB2F94F6422690320FB70E4BF795" commented="no"><enum>(1)</enum><header><enum-in-header>mm</enum-in-header>BTU</header><text>The term <term>mmBTU</term> means 1,000,000 British thermal units.</text></paragraph><paragraph id="H738E56E912A9445F967972DDAE55CE07" commented="no"><enum>(2)</enum><header>CO<subscript>2</subscript><enum-in-header>e</enum-in-header></header><text>The term <term>CO<subscript>2</subscript>e</term> means, with respect to any greenhouse gas, the equivalent carbon dioxide (as determined based on relative global warming potential).</text></paragraph><paragraph id="HF4A09AD1E6364B0A94B5ED91BED8725E" commented="no"><enum>(3)</enum><header>Greenhouse gas</header><text>The term <term>greenhouse gas</term> has the same meaning given that term under section 211(o)(1)(G) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(1)(G)</external-xref>), as in effect on the date of the enactment of this section.</text></paragraph><paragraph id="H4B3B2E5157F540E5BE20924E1BDDAB77" commented="no"><enum>(4)</enum><header>Qualified facility</header><text>The term <term>qualified facility</term>—</text><subparagraph id="H2458DDCD199F408BB9596343B62E8072"><enum>(A)</enum><text>means a facility used for the production of transportation fuels, and</text></subparagraph><subparagraph id="H3344C50DD4AF49B1A5C49E0C1CDF6233"><enum>(B)</enum><text>does not include any facility for which one of the following credits is allowed under section 38 for the taxable year: </text><clause id="H9D9AFBEC74AC4361B82025FC91E01DDA"><enum>(i)</enum><text>The credit for production of clean hydrogen under section 45V.</text></clause><clause id="H6ED57C8ECC974B83B900EB2C98712923"><enum>(ii)</enum><text>The credit determined under section 46 to the extent that such credit is attributable to the energy credit determined under section 48 with respect to any specified clean hydrogen production facility for which an election is made under subsection (a)(15) of such section.</text></clause><clause id="HA1A4DBBFA9F042F685F4ECBE6F078D17"><enum>(iii)</enum><text>The credit for carbon oxide sequestration under section 45Q. </text></clause></subparagraph></paragraph><paragraph commented="no" id="H7F29F7FB4BC64024B7A4B61CC9A1EB36"><enum>(5)</enum><header>Transportation fuel</header><subparagraph commented="no" id="id301728A090C64B0D99E772B51F68955C"><enum>(A)</enum><header>In general</header><text>The term <term>transportation fuel</term> means a fuel which—</text><clause commented="no" id="H57A0A9EA250D477BAD2CD10A642DE48F"><enum>(i)</enum><text>is suitable for use as a fuel in a highway vehicle or aircraft, </text></clause><clause commented="no" id="H65D63D7B76894FB9A7711A9FBCC5D9DF"><enum>(ii)</enum><text>has an emissions rate which is not greater than 50 kilograms of CO<subscript>2</subscript>e per mmBTU, and</text></clause><clause id="H337DE6B9225947D0B1D8412E4B32D582"><enum>(iii)</enum><text display-inline="yes-display-inline">is not derived from coprocessing an applicable material (or materials derived from an applicable material) with a feedstock which is not biomass.</text></clause></subparagraph><subparagraph commented="no" id="idAA2FEF830E8B49D4B87B753EDF2C3D2F"><enum>(B)</enum><header>Definitions</header><text>In this paragraph—</text><clause commented="no" id="id6D6C445CFD4C45A499F80B45A270F469"><enum>(i)</enum><header>Applicable material</header><text>The term <term>applicable material</term> means—</text><subclause commented="no" id="idD406B13F5EED4B0583BDDE2AD64FEF24"><enum>(I)</enum><text>monoglycerides, diglycerides, and triglycerides,</text></subclause><subclause commented="no" id="idA383B6C954AD427B8B4560F137ED9092"><enum>(II)</enum><text>free fatty acids, and</text></subclause><subclause commented="no" id="id2886E6AE49224B538D793C8AE306E127"><enum>(III)</enum><text>fatty acid esters.</text></subclause></clause><clause commented="no" id="id639C75D7B2374DB9A6D3F8AF6E44EED4"><enum>(ii)</enum><header>Biomass</header><text>The term <term>biomass</term> has the same meaning given such term in section 45K(c)(3).</text></clause></subparagraph></paragraph></subsection><subsection id="H438E327956E84444A02B240C2D55EFF7" commented="no"><enum>(e)</enum><header>Guidance</header><text>Not later than January 1, 2025, the Secretary shall issue guidance regarding implementation of this section, including calculation of emissions factors for transportation fuel, the table described in subsection (b)(1)(B)(i), and the determination of clean fuel production credits under this section.</text></subsection><subsection id="H67FC5B8DD256427697047DEB2F86E81B" commented="no"><enum>(f)</enum><header>Special rules</header><paragraph id="H6CDD73022F684FF29D1E1DD90F5DD175" commented="no"><enum>(1)</enum><header>Only registered production in the United States taken into account</header><subparagraph id="HD784BA85106C4C3AA2C33DB0A8B7FD3E" commented="no"><enum>(A)</enum><header>In general</header><text>No clean fuel production credit shall be determined under subsection (a) with respect to any transportation fuel unless—</text><clause commented="no" id="HB0E1FE1465464E2F9F2066FE4E6CDD1A"><enum>(i)</enum><text>the taxpayer—</text><subclause commented="no" id="id746FC720F21642CB99321E5D5F65943C"><enum>(I)</enum><text>is registered as a producer of clean fuel under section 4101 at the time of production, and</text></subclause><subclause commented="no" id="id2FF4B82A28534E5983899223AB575750"><enum>(II)</enum><text display-inline="yes-display-inline">in the case of any transportation fuel which is a sustainable aviation fuel, provides—</text><item commented="no" id="id6C653055417B4E15AA250716D12129BE"><enum>(aa)</enum><text display-inline="yes-display-inline">certification (in such form and manner as the Secretary shall prescribe) from an unrelated party demonstrating compliance with—</text><subitem commented="no" id="id105A322721B64FA09C7CC3DDE4D69AE9"><enum>(AA)</enum><text display-inline="yes-display-inline">any general requirements, supply chain traceability requirements, and information transmission requirements established under the Carbon Offsetting and Reduction Scheme for International Aviation described in subclause (I) of subsection (b)(1)(B)(iii), or </text></subitem><subitem commented="no" id="id18CB3B2730A545C8B1549DD16C2A5C61"><enum>(BB)</enum><text display-inline="yes-display-inline">in the case of any methodology described in subclause (II) of such subsection, requirements similar to the requirements described in subitem (AA), and</text></subitem></item><item commented="no" id="id5E5F0D5E71B643D1A747F3C8826EACC0"><enum>(bb)</enum><text display-inline="yes-display-inline">such other information with respect to such fuel as the Secretary may require for purposes of carrying out this section, and</text></item></subclause></clause><clause id="HC2D1BE065C0F4B7BA43E5B125DC3961C" commented="no"><enum>(ii)</enum><text>such fuel is produced in the United States.</text></clause></subparagraph><subparagraph id="H41EADFB6BC114366BA2F73691DD4A37B" commented="no"><enum>(B)</enum><header>United States</header><text>For purposes of this paragraph, the term <quote>United States</quote> includes any possession of the United States.</text></subparagraph></paragraph><paragraph id="H315E160B51F0481D9374E33FBFF60887" commented="no"><enum>(2)</enum><header>Production attributable to the taxpayer</header><text>In the case of a facility in which more than 1 person has an ownership interest, except to the extent provided in regulations prescribed by the Secretary, production from the facility shall be allocated among such persons in proportion to their respective ownership interests in the gross sales from such facility.</text></paragraph><paragraph id="H7CFF9ADBBA0A4480B56B8F2867CE315F" commented="no"><enum>(3)</enum><header>Related persons</header><text>Persons shall be treated as related to each other if such persons would be treated as a single employer under the regulations prescribed under section 52(b). In the case of a corporation which is a member of an affiliated group of corporations filing a consolidated return, such corporation shall be treated as selling fuel to an unrelated person if such fuel is sold to such a person by another member of such group.</text></paragraph><paragraph id="H1CB8E8F472D04741A9989BD67FBE9294" commented="no"><enum>(4)</enum><header>Pass-thru in the case of estates and trusts</header><text>Under regulations prescribed by the Secretary, rules similar to the rules of subsection (d) of section 52 shall apply.</text></paragraph><paragraph id="H30110E0A391D49EA88C5F2C392354F51" commented="no"><enum>(5)</enum><header>Allocation of credit to patrons of agricultural cooperative</header><text>Rules similar to the rules of section 45Y(g)(6) shall apply.</text></paragraph><paragraph commented="no" id="H79F462AFFE634BE792C317629C179D34"><enum>(6)</enum><header>Prevailing wage requirements</header><subparagraph id="HEEC18F8BF7924D9EB9BD3C9F15822124" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Subject to subparagraph (B), rules similar to the rules of section 45(b)(7) shall apply.</text></subparagraph><subparagraph id="H053679E0C4F84C0FAB767597069BC365" commented="no"><enum>(B)</enum><header>Special rule for facilities placed in service before January 1, 2025</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), in the case of any qualified facility placed in service before January 1, 2025—</text><clause id="H59C93AE3A45442599E56B61ABA2DFBB9" commented="no"><enum>(i)</enum><text>clause (i) of section 45(b)(7)(A) shall not apply, and</text></clause><clause id="H2C3437D2012B41B68E2EB32454969F9B" commented="no"><enum>(ii)</enum><text>clause (ii) of such section shall be applied by substituting <quote>with respect to any taxable year beginning after December 31, 2024, for which the credit is allowed under this section</quote> for <quote>with respect to any taxable year, for any portion of such taxable year which is within the period described in subsection (a)(2)(A)(ii)</quote>.</text></clause></subparagraph></paragraph><paragraph id="H7648A9459F8B48A3851E77E92487820A" commented="no"><enum>(7)</enum><header>Apprenticeship requirements</header><text>Rules similar to the rules of section 45(b)(8) shall apply.</text></paragraph></subsection><subsection commented="no" id="idE35899F0E60C4A96B7B05A79CF384B59"><enum>(g)</enum><header>Termination</header><text>This section shall not apply to transportation fuel sold after December 31, 2027.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H022080B0173840EEAAE9EE2C32A86E3D" commented="no"><enum>(b)</enum><header>Conforming amendments</header><paragraph id="H8E9EA31A76CE41DFA4304C0C8E9FAED9" commented="no"><enum>(1)</enum><text>Section 25C(d)(3), as amended by the preceding provisions of this Act, is amended—</text><subparagraph commented="no" id="id624F7CF351434B1BAF9B0860F675873D"><enum>(A)</enum><text>in subparagraph (A), by striking <quote>and</quote> at the end,</text></subparagraph><subparagraph commented="no" id="idA53BD13FEDCC4FC9BEE6AC566EBBC8C3"><enum>(B)</enum><text>in subparagraph (B), by striking the period at the end and inserting <quote>, and</quote>, and</text></subparagraph><subparagraph commented="no" id="id096889B039C34436BC63B71F4165A1D9"><enum>(C)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id08A8AC3065F24CDBA94A17FD724B3131" changed="added" reported-display-style="italic"><subparagraph commented="no" id="id2AE0AD82C87B46EA8EC603356F0CC2DC"><enum>(C)</enum><text>transportation fuel (as defined in section 45Z(d)(5)).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph commented="no" id="id73A90B8184074327BE0BE578CA5720DC"><enum>(2)</enum><text>Section 30C(c)(1)(B), as amended by the preceding provisions of this Act, is amended by adding at the end the following new clause:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id1CAFC84EC86344C6BF678698D17C0C54" changed="added" reported-display-style="italic"><clause commented="no" id="idF7AB4FDAACF34B95A75A5C0229447B8D"><enum>(iv)</enum><text>Any transportation fuel (as defined in section 45Z(d)(5)).</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph commented="no" id="idFD68BA3F14164B48A1CD24B0059687C3"><enum>(3)</enum><text>Section 38(b), as amended by the preceding provisions of this Act, is amended— </text><subparagraph id="H731ED4F57AEA4F40B5D4969746FC2F4E" commented="no"><enum>(A)</enum><text>in paragraph (38), by striking <quote>plus</quote> at the end,</text></subparagraph><subparagraph id="H85ACA4BA0853476989E2627CFFAF9F4D" commented="no"><enum>(B)</enum><text>in paragraph (39), by striking the period at the end and inserting <quote>, plus</quote>, and</text></subparagraph><subparagraph id="H0456E95A188B4985AE353CA5EB3294BE" commented="no"><enum>(C)</enum><text>by adding at the end the following new paragraph:</text><quoted-block display-inline="no-display-inline" id="H391E1530F6824A858D5C0E749AB6029F" style="OLC" changed="added" reported-display-style="italic"><paragraph id="HE376EEBBDDBB4391B225426FA8648EC7" commented="no"><enum>(40)</enum><text>the clean fuel production credit determined under section 45Z(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="H3935E6233075402C863CE25CAEB97E8C" commented="no"><enum>(4)</enum><text>The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by adding at the end the following new item:</text><quoted-block display-inline="no-display-inline" id="H5B65C2B02B624015A8A09D89CAC7B87E" style="OLC" changed="added" reported-display-style="italic"><toc changed="added" reported-display-style="italic"><toc-entry bold="off" level="section">Sec. 45Z. Clean fuel production credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph commented="no" id="HE5B26F52C85F4F6EA50528D587B09717"><enum>(5)</enum><text>Section 4101(a)(1), as amended by the preceding provisions of this Act, is amended by inserting <quote>every person producing a fuel eligible for the clean fuel production credit (pursuant to section 45Z),</quote> after <quote>section 6426(k)(3)),</quote>.</text></paragraph></subsection><subsection id="H05183519E7AA4722ACCA1FEDB8F0BE04" commented="no" display-inline="no-display-inline"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to transportation fuel produced after December 31, 2024. </text></subsection></section></part><part id="H3B732FCE56C841C0B5B17FB1144EC41A"><enum>8<?LEXA-Enum 9?></enum><header>Credit Monetization and Appropriations</header><section id="H0306789407924D6494A949572A458F93" commented="no"><enum>13801.</enum><header>Elective payment for energy property and electricity produced from certain renewable resources, etc</header><subsection id="H405F3B1799814478940A2A95F0A9FF96" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/65">chapter 65</external-xref> is amended by inserting after section 6416 the following new section:</text><quoted-block display-inline="no-display-inline" id="H41BA4ED881E94E92BC3B8548B38FE98E" style="OLC" changed="added" reported-display-style="italic"><section id="H3EECFD3172884F41967D333FF234EDB9" commented="no"><enum>6417.</enum><header>Elective payment of applicable credits</header><subsection commented="no" id="HA1B1F0669AFF41C19ADD3B725A38306E"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of an applicable entity making an election (at such time and in such manner as the Secretary may provide) under this section with respect to any applicable credit determined with respect to such entity, such entity shall be treated as making a payment against the tax imposed by subtitle A (for the taxable year with respect to which such credit was determined) equal to the amount of such credit.</text></subsection><subsection id="H0288C537CC374354A943979BF0B176F0" commented="no"><enum>(b)</enum><header>Applicable credit</header><text display-inline="yes-display-inline">The term <term>applicable credit</term> means each of the following:</text><paragraph id="H5FBE427C9F4B4534A6129597E8550848" commented="no"><enum>(1)</enum><text display-inline="yes-display-inline">So much of the credit for alternative fuel vehicle refueling property allowed under section 30C which, pursuant to subsection (d)(1) of such section, is treated as a credit listed in section 38(b).</text></paragraph><paragraph commented="no" id="id67B0680E6BE242089963E6A819DFE614"><enum>(2)</enum><text display-inline="yes-display-inline">So much of the renewable electricity production credit determined under section 45(a) as is attributable to qualified facilities which are originally placed in service after December 31, 2022.</text></paragraph><paragraph id="H4AE809B028E94DD18FCB1D45945B288B" commented="no"><enum>(3)</enum><text>So much of the credit for carbon oxide sequestration determined under section 45Q(a) as is attributable to carbon capture equipment which is originally placed in service after December 31, 2022.</text></paragraph><paragraph commented="no" id="idE1E7B024C30149EAB9487BD5597D8364"><enum>(4)</enum><text>The zero-emission nuclear power production credit determined under section 45U(a).</text></paragraph><paragraph commented="no" id="id1D14CE11EDE04CDFA6BE2523D8EEAAC3"><enum>(5)</enum><text>So much of the credit for production of clean hydrogen determined under section 45V(a) as is attributable to qualified clean hydrogen production facilities which are originally placed in service after December 31, 2012.</text></paragraph><paragraph commented="no" id="id268F99AD769041E6B9E043F000C29BBC"><enum>(6)</enum><text>In the case of a tax-exempt entity described in clause (i), (ii), or (iv) of section 168(h)(2)(A), the credit for qualified commercial vehicles determined under section 45W by reason of subsection (d)(3) thereof.</text></paragraph><paragraph commented="no" id="idDEA7A46C45F1408E8535EC1C0334286F"><enum>(7)</enum><text>The credit for advanced manufacturing production under section 45X(a).</text></paragraph><paragraph commented="no" id="idD8F07BEA625B49EB88755A03CAF34B38"><enum>(8)</enum><text>The clean electricity production credit determined under section 45Y(a).</text></paragraph><paragraph commented="no" id="id880F2C57F46343D094AE2A699789A207"><enum>(9)</enum><text>The clean fuel production credit determined under section 45Z(a).</text></paragraph><paragraph commented="no" id="id97727CDC16484CDE9AD7DBB8E120C3FF"><enum>(10)</enum><text>The energy credit determined under section 48.</text></paragraph><paragraph commented="no" id="id7CAE6DDD91A24FECB87E64BAA07F5C66"><enum>(11)</enum><text>The qualifying advanced energy project credit determined under section 48C.</text></paragraph><paragraph commented="no" id="id82D990F061174D8E9433DC3C978A48EA"><enum>(12)</enum><text>The clean electricity investment credit determined under section 48E.</text></paragraph></subsection><subsection id="id6F9538D41A084580A82A353F19A99138" display-inline="no-display-inline" commented="no"><enum>(c)</enum><header>Application to partnerships and S corporations</header><paragraph display-inline="no-display-inline" commented="no" id="idED31C60F5588498DA9B2C5C709D4980C"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any applicable credit determined with respect to any facility or property held directly by a partnership or S corporation, any election under subsection (a) shall be made by such partnership or S corporation. If such partnership or S corporation makes an election under such subsection (in such manner as the Secretary may provide) with respect to such credit—</text><subparagraph display-inline="no-display-inline" commented="no" id="id925B063D3AA94E5D90E2268E7F7065ED"><enum>(A)</enum><text display-inline="yes-display-inline">the Secretary shall make a payment to such partnership or S corporation equal to the amount of such credit,</text></subparagraph><subparagraph display-inline="no-display-inline" commented="no" id="idB07502A6EFA048CDBE839BA1F1AB9EE5"><enum>(B)</enum><text display-inline="yes-display-inline">subsection (e) shall be applied with respect to such credit before determining any partner’s distributive share, or shareholder’s pro rata share, of such credit,</text></subparagraph><subparagraph display-inline="no-display-inline" commented="no" id="id97CF074A71FC4DCDAD2088CC58AEBF6B"><enum>(C)</enum><text display-inline="yes-display-inline">any amount with respect to which the election in subsection (a) is made shall be treated as tax exempt income for purposes of sections 705 and 1366, and</text></subparagraph><subparagraph display-inline="no-display-inline" commented="no" id="id3752C1650816437FBAEA0925668B7603"><enum>(D)</enum><text display-inline="yes-display-inline">a partner’s distributive share of such tax exempt income shall be based on such partner’s distributive share of the otherwise applicable credit for each taxable year.</text></subparagraph></paragraph><paragraph commented="no" id="id817084029D1A41F6AABB688D1443CB86"><enum>(2)</enum><header>Coordination with application at partner or shareholder level</header><text>In the case of any facility or property held directly by a partnership or S corporation, no election by any partner or shareholder shall be allowed under subsection (a) with respect to any applicable credit determined with respect to such facility or property.</text></paragraph><paragraph commented="no" id="id703B184B54F24F439F55D89541B67B67"><enum>(3)</enum><header>Treatment of payments to partnerships and S corporations</header><text>For purposes of section 1324 of title 31, United States Code, the payments under paragraph (1)(A) shall be treated in the same manner as a refund due from a credit provision referred to in subsection (b)(2) of such section.</text></paragraph></subsection><subsection id="H82E8712D70914A9AAB4E9BA41FB3318E" commented="no"><enum>(d)</enum><header>Special rules</header><text>For purposes of this section—</text><paragraph id="HF2DAD1BC15FB41D99886954FE74A93A1" commented="no"><enum>(1)</enum><header>Applicable entity</header><subparagraph commented="no" id="idC80D86AE41414157B1169D30FC32D793"><enum>(A)</enum><header>In general</header><text>The term <term>applicable entity</term> means—</text><clause commented="no" id="idA06DF290A9674773A6655BACFC96249F"><enum>(i)</enum><text>any organization exempt from the tax imposed by subtitle A, </text></clause><clause commented="no" id="idC048B0E5F0274425BA2CB4D023E47897"><enum>(ii)</enum><text>any State or political subdivision thereof, </text></clause><clause commented="no" id="idC318FA36ACE94FC886109D6810262C4C"><enum>(iii)</enum><text>the Tennessee Valley Authority, </text></clause><clause commented="no" id="idF369FAC561FA46F39C7BD5F4B11FB424"><enum>(iv)</enum><text>an Indian tribal government (as defined in section 30D(g)(9)), </text></clause><clause commented="no" id="id321C4210C631465A9271DC2F7127AD89"><enum>(v)</enum><text>any Alaska Native Corporation (as defined in section 3 of the Alaska Native Claims Settlement Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1602">43 U.S.C. 1602(m)</external-xref>), or</text></clause><clause commented="no" id="idC230477B8AE940F59756FF1738FFED4A"><enum>(vi)</enum><text>any corporation operating on a cooperative basis which is engaged in furnishing electric energy to persons in rural areas.</text></clause></subparagraph><subparagraph commented="no" id="id002C423A0B1A4C448E72DF34C77D3B48"><enum>(B)</enum><header>Election with respect to credit for production of clean hydrogen</header><text>If a taxpayer other than an entity described in subparagraph (A) makes an election under this subparagraph with respect to any taxable year in which such taxpayer has placed in service a qualified clean hydrogen production facility (as defined in section 45V(c)(3)), such taxpayer shall be treated as an applicable entity for purposes of this section for such taxable year, but only with respect to the credit described in subsection (b)(5).</text></subparagraph><subparagraph commented="no" id="id4CF62B7155E74E11B047E85E6B240EF5"><enum>(C)</enum><header>Election with respect to credit for carbon oxide sequestration</header><text>If a taxpayer other than an entity described in subparagraph (A) makes an election under this subparagraph with respect to any taxable year in which such taxpayer has, after December 31, 2022, placed in service carbon capture equipment at a qualified facility (as defined in section 45Q(d)), such taxpayer shall be treated as an applicable entity for purposes of this section for such taxable year, but only with respect to the credit described in subsection (b)(3).</text></subparagraph><subparagraph commented="no" id="idFCDCFD96917F4DC1A5FE111EA77C48DF"><enum>(D)</enum><header>Election with respect to advanced manufacturing production credit</header><clause commented="no" id="idE8DD5F3D495546B28F8B37ACD57172C0"><enum>(i)</enum><header>In general</header><text>If a taxpayer other than an entity described in subparagraph (A) makes an election under this subparagraph with respect to any taxable year in which such taxpayer has, after December 31, 2022, produced eligible components (as defined in section 45X(c)(1)), such taxpayer shall be treated as an applicable entity for purposes of this section for such taxable year, but only with respect to the credit described in subsection (b)(7).</text></clause><clause commented="no" id="id8D4154BFDA14426B9155814F45730266"><enum>(ii)</enum><header>Limitation</header><subclause commented="no" id="id89E9D9937AB84B9F9084DC66179563EB"><enum>(I)</enum><header>In general</header><text>Except as provided in subclause (II), if a taxpayer makes an election under this subparagraph with respect to any taxable year, such taxpayer shall be treated as having made such election for each of the 4 succeeding taxable years ending before January 1, 2033.</text></subclause><subclause commented="no" id="id172441BD724F4633BC5F24A8D6C508E3"><enum>(II)</enum><header>Exception</header><text>A taxpayer may elect to revoke the application of the election made under this subparagraph to any taxable year described in subclause (I). Any such election, if made, shall apply to the applicable year specified in such election and each subsequent taxable year within the period described in subclause (I). Any election under this subclause may not be subsequently revoked. </text></subclause></clause><clause commented="no" id="idCE22F3C47BCD46D9B31328D0C7EBF3AF"><enum>(iii)</enum><header>Prohibition on transfer</header><text>For any taxable year described in clause (ii)(I), no election may be made by the taxpayer under section 6418(a) for such taxable year with respect to eligible components for purposes of the credit described in subsection (b)(7).</text></clause></subparagraph><subparagraph commented="no" id="idF821906805B24A40B53E98413F056F62"><enum>(E)</enum><header>Other rules</header><clause commented="no" id="id0C6F9FA0D0C34DAAAEC7D684EED5FB5D"><enum>(i)</enum><header>In general</header><text>An election made under subparagraph (B), (C), or (D) shall be made at such time and in such manner as the Secretary may provide.</text></clause><clause commented="no" id="id1685458B66FF40DEA85A3E63B441CA6A"><enum>(ii)</enum><header>Limitation</header><text>No election may be made under subparagraph (B), (C), or (D) with respect to any taxable year beginning after December 31, 2032.</text></clause></subparagraph></paragraph><paragraph commented="no" id="id465754A5190E44A4A949D9F224A8689D"><enum>(2)</enum><header>Application</header><text display-inline="yes-display-inline">In the case of any applicable entity which makes the election described in subsection (a), any applicable credit shall be determined—</text><subparagraph id="HC7F4BB1056B946D59DAC2F84AC7EFC5D" commented="no"><enum>(A)</enum><text>without regard to paragraphs (3) and (4)(A)(i) of section 50(b), and</text></subparagraph><subparagraph id="HE8C90BA06B3648F68895F2DBD9DB65A5" commented="no"><enum>(B)</enum><text>by treating any property with respect to which such credit is determined as used in a trade or business of the applicable entity.</text></subparagraph></paragraph><paragraph id="H99AE3E9FC74C4B03B884416835D1CCE3" commented="no"><enum>(3)</enum><header>Elections</header><subparagraph id="H2B894FF384A24211A3E33E6D1911E58D" commented="no"><enum>(A)</enum><header>In general</header><clause commented="no" id="id78B41A2C213C4460A90ED40ABF6902DE"><enum>(i)</enum><header>Due date</header><text>Any election under subsection (a) shall be made not later than—</text><subclause commented="no" id="id2ACE12B8F48544599C99E105774FF146"><enum>(I)</enum><text>in the case of any government, or political subdivision, described in paragraph (1) and for which no return is required under section 6011 or 6033(a), such date as is determined appropriate by the Secretary, or</text></subclause><subclause commented="no" id="idCC14B6A60E2E49ABA606D9833FE8E3D8"><enum>(II)</enum><text>in any other case, the due date (including extensions of time) for the return of tax for the taxable year for which the election is made, but in no event earlier than 180 days after the date of the enactment of this section.</text></subclause></clause><clause commented="no" id="id95FE88420EC442C0A7DB7210A1ED584A"><enum>(ii)</enum><header>Additional rules</header><text>Any election under subsection (a), once made, shall be irrevocable and shall apply (except as otherwise provided in this paragraph) with respect to any credit for the taxable year for which the election is made.</text></clause></subparagraph><subparagraph id="H139883DCD2954938B0DF01731A335E7E" commented="no"><enum>(B)</enum><header>Renewable electricity production credit</header><text>In the case of the credit described in subsection (b)(2), any election under subsection (a) shall—</text><clause id="H8F8E5E3B94A841C9A3E8D4D3F513ED97" commented="no"><enum>(i)</enum><text>apply separately with respect to each qualified facility,</text></clause><clause id="HD0FCC692C18E4EABABBFDABD9C6BECC7" commented="no"><enum>(ii)</enum><text>be made for the taxable year in which such qualified facility is originally placed in service, and</text></clause><clause id="H211D2FB98DB4447D85240632DA7D7704" commented="no"><enum>(iii)</enum><text>shall apply to such taxable year and to any subsequent taxable year which is within the period described in subsection (a)(2)(A)(ii) of section 45 with respect to such qualified facility.</text></clause></subparagraph><subparagraph id="HA84443E25795482C89207EA65DEE297C" commented="no"><enum>(C)</enum><header>Credit for carbon oxide sequestration</header><clause commented="no" id="id3324699971F240F5BCD7504FB6390701"><enum>(i)</enum><header>In general</header><text>In the case of the credit described in subsection (b)(3), any election under subsection (a) shall—</text><subclause id="H25D05127855342D89A9A6363CC5CCDE5" commented="no"><enum>(I)</enum><text>apply separately with respect to the carbon capture equipment originally placed in service by the applicable entity during a taxable year, and</text></subclause><subclause id="id63829F7660B64E52BABA586B7A42A1AE"><enum>(II)</enum><item commented="no" display-inline="yes-display-inline" id="idEB187579D50F48A2893EF150EDFFC255"><enum>(aa)</enum><text>in the case of a taxpayer who makes an election described in paragraph (1)(C), apply to the taxable year in which such equipment is placed in service and the 4 subsequent taxable years with respect to such equipment which end before January 1, 2033, and</text></item><item id="idA4F8A2CDA50E44FFADFC5004BBC04EAA" indent="up1"><enum>(bb)</enum><text>in any other case, apply to such taxable year and to any subsequent taxable year which is within the period described in paragraph (3)(A) or (4)(A) of section 45Q(a) with respect to such equipment. </text></item></subclause></clause><clause id="id50E5FD838CAF443E86C224A444D9AA83"><enum>(ii)</enum><header>Prohibition on transfer</header><text>For any taxable year described in clause (i)(II)(aa) with respect to carbon capture equipment, no election may be made by the taxpayer under section 6418(a) for such taxable year with respect to such equipment for purposes of the credit described in subsection (b)(3).</text></clause><clause id="id8A838111C311485A89EDD530988E3B79"><enum>(iii)</enum><header>Revocation of election</header><text>In the case of a taxpayer who makes an election described in paragraph (1)(C) with respect to carbon capture equipment, such taxpayer may, at any time during the period described in clause (i)(II)(aa), revoke the application of such election with respect to such equipment for any subsequent taxable years during such period. Any such election, if made, shall apply to the applicable year specified in such election and each subsequent taxable year within the period described in clause (i)(II)(aa). Any election under this subclause may not be subsequently revoked.</text></clause></subparagraph><subparagraph id="id865DCFE2A7764F3497BA658A24B3D140"><enum>(D)</enum><header>Credit for production of clean hydrogen</header><clause id="idB644679F2166440BBB77D9E321090A81"><enum>(i)</enum><header>In general</header><text>In the case of the credit described in subsection (b)(5), any election under subsection (a) shall—</text><subclause id="idF97F86155FB945AABCB283537D81E3BF"><enum>(I)</enum><text>apply separately with respect to each qualified clean hydrogen production facility,</text></subclause><subclause id="id876D8D1641BA4A56A161ED7AB6342969"><enum>(II)</enum><text display-inline="yes-display-inline">be made for the taxable year in which such facility is placed in service (or within the 1-year period subsequent to the date of enactment of this section in the case of facilities placed in service before December 31, 2022), and</text></subclause><subclause id="id628194F635474A5F82DF4E75ADD7E164"><enum>(III)</enum><item commented="no" display-inline="yes-display-inline" id="id6985FA111F434591A0D6FED9DDC62E16"><enum>(aa)</enum><text>in the case of a taxpayer who makes an election described in paragraph (1)(B), apply to such taxable year and the 4 subsequent taxable years with respect to such facility which end before January 1, 2033, and</text></item><item id="id6AF896EC719B4360AE46873D0EF774C0" indent="up1"><enum>(bb)</enum><text>in any other case, apply to such taxable year and all subsequent taxable years with respect to such facility.</text></item></subclause></clause><clause id="idB1E3161C476741CABC130EECBBAA3A45"><enum>(ii)</enum><header>Prohibition on transfer</header><text>For any taxable year described in clause (i)(III)(aa) with respect to a qualified clean hydrogen production facility, no election may be made by the taxpayer under section 6418(a) for such taxable year with respect to such facility for purposes of the credit described in subsection (b)(5).</text></clause><clause id="id7BEA0253B6474405AA79CAD1D2D42DBF"><enum>(iii)</enum><header>Revocation of election</header><text>In the case of a taxpayer who makes an election described in paragraph (1)(B) with respect to a qualified clean hydrogen production facility, such taxpayer may, at any time during the period described in clause (i)(III)(aa), revoke the application of such election with respect to such facility for any subsequent taxable years during such period. Any such election, if made, shall apply to the applicable year specified in such election and each subsequent taxable year within the period described in clause (i)(II)(aa). Any election under this subclause may not be subsequently revoked.</text></clause></subparagraph><subparagraph commented="no" id="id78B636B87B974B7C9A95C3CB6162E549"><enum>(E)</enum><header>Clean electricity production credit</header><text display-inline="yes-display-inline">In the case of the credit described in subsection (b)(8), any election under subsection (a) shall—</text><clause id="idB0225681390B40F2A39C655BA323CEAF" commented="no"><enum>(i)</enum><text>apply separately with respect to each qualified facility,</text></clause><clause id="id18A3B3F39CC947D7807C1FCD44D73904" commented="no"><enum>(ii)</enum><text>be made for the taxable year in which such facility is placed in service, and</text></clause><clause commented="no" id="idE1978E9316204E41A02E8944519A0101"><enum>(iii)</enum><text>shall apply to such taxable year and to any subsequent taxable year which is within the period described in subsection (b)(1)(B) of section 45Y with respect to such facility. </text></clause></subparagraph></paragraph><paragraph id="H44A7F155738047F08F6CE79719C777BB" commented="no"><enum>(4)</enum><header>Timing</header><text display-inline="yes-display-inline">The payment described in subsection (a) shall be treated as made on—</text><subparagraph id="H20E7AFD93D8046DEA2BE2135BA3B834D" commented="no"><enum>(A)</enum><text>in the case of any government, or political subdivision, described in paragraph (1) and for which no return is required under section 6011 or 6033(a), the later of the date that a return would be due under section 6033(a) if such government or subdivision were described in that section or the date on which such government or subdivision submits a claim for credit or refund (at such time and in such manner as the Secretary shall provide), and</text></subparagraph><subparagraph id="H98410BC508964569A5EBDD0D3DD7D58A" commented="no"><enum>(B)</enum><text>in any other case, the later of the due date (determined without regard to extensions) of the return of tax for the taxable year or the date on which such return is filed.</text></subparagraph></paragraph><paragraph id="H6FD4509604D6403E8EBCC5A5DC192791" commented="no"><enum>(5)</enum><header>Additional information</header><text display-inline="yes-display-inline">As a condition of, and prior to, any amount being treated as a payment which is made by an applicable entity under subsection (a), the Secretary may require such information or registration as the Secretary deems necessary for purposes of preventing duplication, fraud, improper payments, or excessive payments under this section.</text></paragraph><paragraph id="HF02254E6A39F4A189D0D5D4E34FE283B" commented="no"><enum>(6)</enum><header>Excessive payment</header><subparagraph id="H2375B597395A4E50A0874285EE89CEF6" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any amount treated as a payment which is made by the applicable entity under subsection (a), or the amount of the payment made pursuant to subsection (c), which the Secretary determines constitutes an excessive payment, the tax imposed on such entity by chapter 1 (regardless of whether such entity would otherwise be subject to tax under such chapter) for the taxable year in which such determination is made shall be increased by an amount equal to the sum of—</text><clause id="H0B527909CD7D41C9BF5C0B0340FBA471" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">the amount of such excessive payment, plus</text></clause><clause id="HA52E50A7A65347E99CBCFA92D4FE7E5C" commented="no"><enum>(ii)</enum><text>an amount equal to 20 percent of such excessive payment. </text></clause></subparagraph><subparagraph id="H2A4D89A34B8142E19A1D519C1F07ABD0" commented="no"><enum>(B)</enum><header>Reasonable cause</header><text display-inline="yes-display-inline">Subparagraph (A)(ii) shall not apply if the applicable entity demonstrates to the satisfaction of the Secretary that the excessive payment resulted from reasonable cause.</text></subparagraph><subparagraph id="H2BAAC54511444FADA2185385D8813DBE" commented="no"><enum>(C)</enum><header>Excessive payment defined</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term <term>excessive payment</term> means, with respect to a facility or property for which an election is made under this section for any taxable year, an amount equal to the excess of—</text><clause id="HB37C6ACD77534A30AED076AFE2BEE244" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">the amount treated as a payment which is made by the applicable entity under subsection (a), or the amount of the payment made pursuant to subsection (c), with respect to such facility or property for such taxable year, over</text></clause><clause id="H17DB60E0008F41C688838C0511A52A00" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">the amount of the credit which, without application of this section, would be otherwise allowable (as determined pursuant to paragraph (2) and without regard to section 38(c)) under this title with respect to such facility or property for such taxable year.</text></clause></subparagraph></paragraph></subsection><subsection id="H7925458C44324E708F02D565739733F5" commented="no"><enum>(e)</enum><header>Denial of double benefit</header><text display-inline="yes-display-inline">In the case of an applicable entity making an election under this section with respect to an applicable credit, such credit shall be reduced to zero and shall, for any other purposes under this title, be deemed to have been allowed to such entity for such taxable year.</text></subsection><subsection id="H4C9DCE1C80254D859F9044F69FE45FFB" commented="no"><enum>(f)</enum><header>Mirror code possessions</header><text>In the case of any possession of the United States with a mirror code tax system (as defined in section 24(k)), this section shall not be treated as part of the income tax laws of the United States for purposes of determining the income tax law of such possession unless such possession elects to have this section be so treated. </text></subsection><subsection id="HD566728E9EF74858986A52FE87CD2FBD" commented="no"><enum>(g)</enum><header>Basis reduction and recapture</header><text display-inline="yes-display-inline">Except as otherwise provided in subsection (c)(2)(A), rules similar to the rules of section 50 shall apply for purposes of this section.</text></subsection><subsection id="H9E0F4C6343DE4BD3968770A172F64CB6" commented="no"><enum>(h)</enum><header>Regulations</header><text>The Secretary shall issue such regulations or other guidance as may be necessary to carry out the purposes of this section, including guidance to ensure that the amount of the payment or deemed payment made under this section is commensurate with the amount of the credit that would be otherwise allowable (determined without regard to section 38(c)).</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H0407F17C178E4E0084B17F7AC62D7232" commented="no"><enum>(b)</enum><header>Transfer of certain credits</header><text>Subchapter B of chapter 65, as amended by subsection (a), is amended by inserting after section 6417 the following new section:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id8FF179141EC949FCAB8745B39F098140" changed="added" reported-display-style="italic"><section commented="no" id="idFCD9679983F84F589A8835B8A16F70D3"><enum>6418.</enum><header>Transfer of certain credits</header><subsection id="HD62599EDBDCE4078917332F587C8C57A"><enum>(a)</enum><header>In general</header><text>In the case of an eligible taxpayer which elects to transfer all (or any portion specified in the election) of an eligible credit determined with respect to such taxpayer for any taxable year to a taxpayer (referred to in this section as the <term>transferee taxpayer</term>) which is not related (within the meaning of section 267(b) or 707(b)(1)) to the eligible taxpayer, the transferee taxpayer specified in such election (and not the eligible taxpayer) shall be treated as the taxpayer for purposes of this title with respect to such credit (or such portion thereof).</text></subsection><subsection id="H3AFE7CEED8CC4730875C2B2D6B0C56D5"><enum>(b)</enum><header>Treatment of payments made in connection with transfer</header><text>With respect to any amount paid by a transferee taxpayer to an eligible taxpayer as consideration for a transfer described in subsection (a), such consideration—</text><paragraph id="idE3B62690AE96445B85317AB1B45D8132"><enum>(1)</enum><text>shall be required to be paid in cash,</text></paragraph><paragraph id="id2C3D457BFEA8484284946966DDDC5343"><enum>(2)</enum><text>shall not be includible in gross income of the eligible taxpayer, and</text></paragraph><paragraph id="id8AD4DCC5DF0040068C2CEA1C795C6CB5"><enum>(3)</enum><text>with respect to the transferee taxpayer, shall not be deductible under this title.</text></paragraph></subsection><subsection id="H4B18187C6869453E92F07451B5632EEA" display-inline="no-display-inline" commented="no"><enum>(c)</enum><header>Application to partnerships and S corporations</header><paragraph display-inline="no-display-inline" commented="no" id="id1848578909FC44A9897C53A0CE4ECA62"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any eligible credit determined with respect to any facility or property held directly by a partnership or S corporation, if such partnership or S corporation makes an election under subsection (a) (in such manner as the Secretary may provide) with respect to such credit—</text><subparagraph id="HF9EAF8E65BA9464686D497491759D80E" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">any amount received as consideration for a transfer described in such subsection shall be treated as tax exempt income for purposes of sections 705 and 1366, and</text></subparagraph><subparagraph id="H7B78C63E3D054B4F937E8B3984EDD0FA" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">a partner’s distributive share of such tax exempt income shall be based on such partner’s distributive share of the otherwise eligible credit for each taxable year.</text></subparagraph></paragraph><paragraph commented="no" id="idA201B6AD717A4AF3BA39A65AD96430BB"><enum>(2)</enum><header>Coordination with application at partner or shareholder level</header><text>In the case of any facility or property held directly by a partnership or S corporation, no election by any partner or shareholder shall be allowed under subsection (a) with respect to any eligible credit determined with respect to such facility or property.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HEF68E5AAAAF04F0891E7FA65ED8D2686"><enum>(d)</enum><header display-inline="yes-display-inline">Taxable year in which credit taken into account</header><text display-inline="yes-display-inline">In the case of any credit (or portion thereof) with respect to which an election is made under subsection (a), such credit shall be taken into account in the first taxable year of the transferee taxpayer ending with, or after, the taxable year of the eligible taxpayer with respect to which the credit was determined.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="H2BA45DDB25E64343A1DD792C9CA79114"><enum>(e)</enum><header>Limitations on election</header><paragraph commented="no" display-inline="no-display-inline" id="H930BE0889272441E80039CD321C79E2F"><enum>(1)</enum><header>Time for election</header><text display-inline="yes-display-inline">An election under subsection (a) to transfer any portion of an eligible credit shall be made not later than the due date (including extensions of time) for the return of tax for the taxable year for which the credit is determined, but in no event earlier than 180 days after the date of the enactment of this section. Any such election, once made, shall be irrevocable.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8368B4D4472A4CA3951C6D67603BAE82"><enum>(2)</enum><header>No additional transfers</header><text display-inline="yes-display-inline">No election may be made under subsection (a) by a transferee taxpayer with respect to any portion of an eligible credit which has been previously transferred to such taxpayer pursuant to this section.</text></paragraph></subsection><subsection id="HADEAB6A562494EB1AC6E36F2A7CF0AEB"><enum>(f)</enum><header>Definitions</header><text>For purposes of this section—</text><paragraph id="idA36128A8B5334F2782A41E911A143EFC"><enum>(1)</enum><header>Eligible credit</header><subparagraph id="idFC9E74D408984281AF441BDD0A09E899"><enum>(A)</enum><header>In general</header><text>The term <term>eligible credit</term> means each of the following:</text><clause id="idF25F4B4D0414400EBC1FED9DA6773C28" commented="no"><enum>(i)</enum><text>So much of the credit for alternative fuel vehicle refueling property allowed under section 30C which, pursuant to subsection (d)(1) of such section, is treated as a credit listed in section 38(b).</text></clause><clause id="id882A9C368A1C4956BF574D8E79E3CF20" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">The renewable electricity production credit determined under section 45(a).</text></clause><clause commented="no" id="idFD80C47985E54D8DABB246F3C4FF49A7"><enum>(iii)</enum><text>The credit for carbon oxide sequestration determined under section 45Q(a).</text></clause><clause commented="no" id="idC6C21062098B42BBBC64606AAD336CCB"><enum>(iv)</enum><text>The zero-emission nuclear power production credit determined under section 45U(a).</text></clause><clause commented="no" id="id85BB9E42EBC44783ABF2237A37FB4790"><enum>(v)</enum><text>The clean hydrogen production credit determined under section 45V(a).</text></clause><clause commented="no" id="id927D7B57EEB84DCCB0FE8E45E1D9A012"><enum>(vi)</enum><text>The advanced manufacturing production credit determined under section 45X(a).</text></clause><clause commented="no" id="id820292E09EF54FA0A6064097D6C1D2E1"><enum>(vii)</enum><text>The clean electricity production credit determined under section 45Y(a).</text></clause><clause commented="no" id="id7CD0D57FE7CA4CE2A3550E736579F12B"><enum>(viii)</enum><text>The clean fuel production credit determined under section 45Z(a).</text></clause><clause id="id4E20436B16954C6E820B4F3918B09097" commented="no"><enum>(ix)</enum><text>The energy credit determined under section 48.</text></clause><clause id="id98E397319D32496B8551441FEC438304" commented="no"><enum>(x)</enum><text>The qualifying advanced energy project credit determined under section 48C.</text></clause><clause commented="no" id="idFB0EAD8F65F34276BEF7D36A59DA42CD"><enum>(xi)</enum><text>The clean electricity investment credit determined under section 48E.</text></clause></subparagraph><subparagraph commented="no" id="id57C5C9EAC47F40629E3A7248662B0B3A"><enum>(B)</enum><header>Election for certain credits</header><text>In the case of any eligible credit described in clause (ii), (iii), (v), or (vii) of subparagraph (A), an election under subsection (a) shall be made—</text><clause commented="no" id="idE201495ED23143A6A39833A427A03062"><enum>(i)</enum><text>separately with respect to each facility for which such credit is determined, and</text></clause><clause commented="no" id="id14812300233D40049E494F7EFFBC4885"><enum>(ii)</enum><text>for each taxable year during the 10-year period beginning on the date such facility was originally placed in service (or, in the case of the credit described in clause (iii), for each year during the 12-year period beginning on the date the carbon capture equipment was originally placed in service at such facility).</text></clause></subparagraph><subparagraph commented="no" id="idEF45D1AC0478477C9A4CF3C467519A52"><enum>(C)</enum><header>Exception for business credit carryforwards or carrybacks</header><text>The term <term>eligible credit</term> shall not include any business credit carryforward or business credit carryback determined under section 39.</text></subparagraph></paragraph><paragraph id="idF3B590178A954E6EA8340EF35C16DC54"><enum>(2)</enum><header>Eligible taxpayer</header><text>The term <term>eligible taxpayer</term> means any taxpayer which is not described in section 6417(d)(1)(A).</text></paragraph></subsection><subsection id="id70119197F56F4985A01B9FF4BCF8A25D"><enum>(g)</enum><header>Special rules</header><text>For purposes of this section—</text><paragraph id="id504EED7A201D45BD8FB386F46105744D"><enum>(1)</enum><header>Additional information</header><text>As a condition of, and prior to, any transfer of any portion of an eligible credit pursuant to subsection (a), the Secretary may require such information (including, in such form or manner as is determined appropriate by the Secretary, such information returns) or registration as the Secretary deems necessary for purposes of preventing duplication, fraud, improper payments, or excessive payments under this section.</text></paragraph><paragraph id="id52C6DABF47714053ACA50D269B4D7DD7" commented="no"><enum>(2)</enum><header>Excessive credit transfer</header><subparagraph id="id7F77A66B263B43569D9941D90F7FB437" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any portion of an eligible credit which is transferred to a transferee taxpayer pursuant to subsection (a) which the Secretary determines constitutes an excessive credit transfer, the tax imposed on the transferee taxpayer by chapter 1 (regardless of whether such entity would otherwise be subject to tax under such chapter) for the taxable year in which such determination is made shall be increased by an amount equal to the sum of—</text><clause id="id2D095A2966E441ABA103B96A0CA7C7B0" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">the amount of such excessive credit transfer, plus</text></clause><clause id="id6A7AD0E475C34AC3802C580B28548470" commented="no"><enum>(ii)</enum><text>an amount equal to 20 percent of such excessive credit transfer. </text></clause></subparagraph><subparagraph id="id522C542C710345B7BB5CAAE86BCB4EA1" commented="no"><enum>(B)</enum><header>Reasonable cause</header><text display-inline="yes-display-inline">Subparagraph (A)(ii) shall not apply if the transferee taxpayer demonstrates to the satisfaction of the Secretary that the excessive credit transfer resulted from reasonable cause.</text></subparagraph><subparagraph id="id367F5B2A55A14492B06B15A4C2025A20" commented="no"><enum>(C)</enum><header>Excessive credit transfer defined</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term <term>excessive credit transfer</term> means, with respect to a facility or property for which an election is made under subsection (a) for any taxable year, an amount equal to the excess of—</text><clause id="id60D8BDD10EFC4AE9AC22B403FB30985D" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">the amount of the eligible credit claimed by the transferee taxpayer with respect to such facility or property for such taxable year, over</text></clause><clause id="idA9684A37AADE454BABBA84A6335CF2FA" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">the amount of such credit which, without application of this section, would be otherwise allowable under this title with respect to such facility or property for such taxable year.</text></clause></subparagraph></paragraph><paragraph commented="no" id="id79A125CC6EC94229802109AE85D3BA56"><enum>(3)</enum><header>Basis reduction; notification of recapture</header><text display-inline="yes-display-inline">In the case of any election under subsection (a) with respect to any portion of an eligible credit described in clauses (ix) through (xi) of subsection (f)(1)(A)—</text><subparagraph commented="no" id="id42733555383547648FC8440FCF98B233"><enum>(A)</enum><text display-inline="yes-display-inline">subsection (c) of section 50 shall apply to the applicable investment credit property (as defined in subsection (a)(5) of such section) as if such eligible credit was allowed to the eligible taxpayer, and</text></subparagraph><subparagraph commented="no" id="id84A543723B2545EABFD8D15E69E774F3"><enum>(B)</enum><text>if, during any taxable year, the applicable investment credit property (as defined in subsection (a)(5) of section 50) is disposed of, or otherwise ceases to be investment credit property with respect to the eligible taxpayer, before the close of the recapture period (as described in subsection (a)(1) of such section)—</text><clause commented="no" id="id40E7150E37D94D389F216574857C72BA"><enum>(i)</enum><text>such eligible taxpayer shall provide notice of such occurrence to the transferee taxpayer (in such form and manner as the Secretary shall prescribe), and </text></clause><clause commented="no" id="idF2EDA433A1D044D18A0AF919A8662EBC"><enum>(ii)</enum><text>the transferee taxpayer shall provide notice of the recapture amount (as defined in subsection (c)(2) of such section), if any, to the eligible taxpayer (in such form and manner as the Secretary shall prescribe).</text></clause></subparagraph></paragraph><paragraph commented="no" id="idFC100536F685429087A8FFD9DC2EB24B"><enum>(4)</enum><header>Prohibition on election or transfer with respect to progress expenditures</header><text>This section shall not apply with respect to any amount of an eligible credit which is allowed pursuant to rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).</text></paragraph></subsection><subsection id="id17259D86E4D54971861774A6489C76A2"><enum>(h)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Secretary shall issue such regulations or other guidance as may be necessary to carry out the purposes of this section, including regulations or other guidance providing rules for determining a partner’s distributive share of the tax exempt income described in subsection (c)(1).</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="idBC817731EB76472EA739457603E7F23A"><enum>(c)</enum><header>Real estate investment trusts</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/50">Section 50(d)</external-xref> is amended by adding at the end the following: <quote>In the case of a real estate investment trust making an election under section 6418, paragraphs (1)(B) and (2)(B) of the section 46(e) referred to in paragraph (1) of this subsection shall not apply to any investment credit property of such real estate investment trust to which such election applies.</quote>.</text></subsection><subsection commented="no" id="id79B62F13F72048A1AC1AF45588476154"><enum>(d)</enum><header>3-year carryback for applicable credits</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/39">Section 39(a)</external-xref> is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id2FDEB645465D4A2884718478B879EA65" changed="added" reported-display-style="italic"><paragraph commented="no" id="idD09458A781254602A5BA1BBD5FE35DAF"><enum>(4)</enum><header>3-year carryback for applicable credits</header><text>Notwithstanding subsection (d), in the case of any applicable credit (as defined in section 6417(b))—</text><subparagraph commented="no" id="id5F12213A037943DC898169D4C3040A8B"><enum>(A)</enum><text>this section shall be applied separately from the business credit (other than the applicable credit),</text></subparagraph><subparagraph commented="no" id="id240C495ED29F4E24885D754876098C53"><enum>(B)</enum><text>paragraph (1) shall be applied by substituting <quote>each of the 3 taxable years</quote> for <quote>the taxable year</quote> in subparagraph (A) thereof, and</text></subparagraph><subparagraph commented="no" id="id150168C378514E73AF1F22258C2C4161"><enum>(C)</enum><text>paragraph (2) shall be applied—</text><clause commented="no" id="idD30B40364B3D4032B00032CA84EFBAB1"><enum>(i)</enum><text>by substituting <quote>23 taxable years</quote> for <quote>21 taxable years</quote> in subparagraph (A) thereof, and</text></clause><clause commented="no" id="id1CA7A1F08C10495BB997D8584FD39B61"><enum>(ii)</enum><text>by substituting <quote>22 taxable years</quote> for <quote>20 taxable years</quote> in subparagraph (B) thereof.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="id97FE6DCBA07B44E6B9CEB9653BA7D5C9"><enum>(e)</enum><header>Clerical amendment</header><text display-inline="yes-display-inline">The table of sections for subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/65">chapter 65</external-xref> is amended by inserting after the item relating to section 6416 the following new items:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idBE79F1EB2AF94AB8932F69711781433B" changed="added" reported-display-style="italic"><toc container-level="quoted-block-container" quoted-block="no-quoted-block" lowest-level="section" idref="H41BA4ED881E94E92BC3B8548B38FE98E" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded" changed="added" reported-display-style="italic"><toc-entry idref="H3EECFD3172884F41967D333FF234EDB9" level="section">Sec. 6417. Elective payment of applicable credits.</toc-entry><toc-entry level="section" bold="off">Sec. 6418. Transfer of certain credits.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H15B81C5BFE8C4842860FBDA17FC3BF03" commented="no"><enum>(f)</enum><header>Gross-up of direct spending</header><text>Beginning in fiscal year 2023 and each fiscal year thereafter, the portion of any payment made to a taxpayer pursuant to an election under <external-xref legal-doc="usc" parsable-cite="usc/26/6417">section 6417</external-xref> of the Internal Revenue Code of 1986, or any amount treated as a payment which is made by the taxpayer under subsection (a) of such section, that is direct spending shall be increased by 6.0445 percent.</text></subsection><subsection commented="no" id="id6B59BF9CEC2B46A4BD44E930702545C9"><enum>(g)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2022.</text></subsection></section><section id="HF7B6C4DBA3BB4CA682248B3C5AD838C4"><enum>13802.</enum><header>Appropriations</header><text display-inline="no-display-inline">Immediately upon the enactment of this Act, in addition to amounts otherwise available, there are appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $500,000,000 to remain available until September 30, 2031, for necessary expenses for the Internal Revenue Service to carry out this subtitle (and the amendments made by this subtitle), which shall supplement and not supplant any other appropriations that may be available for this purpose.</text></section></part><part id="id7876028876EF4E80B36D48D238A32720" style="OLC"><enum>9<?LEXA-Enum 9?></enum><header>Other provisions</header><section id="HDAE1DA845C9A48E8BFEB5B96DEDF2C73" commented="no"><enum>13901.</enum><header>Permanent extension of tax rate to fund Black Lung Disability Trust Fund</header><subsection id="H7A09747B3CD0436D8E98B9DC44969DF7" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/4121">Section 4121</external-xref> is amended by striking subsection (e).</text></subsection><subsection id="id685039CA976A40CDB78743536C1D058A"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to sales in calendar quarters beginning after the date which is 1 day after the date of enactment of this Act.</text></subsection></section><section id="H0FDE72B772E04EA3AF6529D41E822BAF"><enum>13902.</enum><header>Increase in research credit against payroll tax for small businesses</header><subsection id="H042A0867A83A43C4941B8079E6F1912B"><enum>(a)</enum><header>In general</header><text>Clause (i) of <external-xref legal-doc="usc" parsable-cite="usc/26/41">section 41(h)(4)(B)</external-xref> is amended—</text><paragraph id="HB7E8B2C445084135AB2CC39F888BD370"><enum>(1)</enum><text>by striking <quote><header-in-text style="OLC" level="clause">Amount</header-in-text>.—The amount</quote> and inserting “<header-in-text level="clause" style="OLC">Amount</header-in-text>.—</text><quoted-block style="OLC" display-inline="no-display-inline" id="H749EB1C4C977474183E31972E694EE62" changed="added" reported-display-style="italic"><subclause id="H766908BC31D9463D96325F8FA8A355E7"><enum>(I)</enum><header>In general</header><text>The amount</text></subclause><after-quoted-block>, and</after-quoted-block></quoted-block></paragraph><paragraph id="H196D500A54A74084928134629D4B46F0"><enum>(2)</enum><text>by adding at the end the following new subclause:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HB11ED580761B40E89C38D91D4A9D9065" changed="added" reported-display-style="italic"><subclause id="H09F5B18D73114C6C900A4CD557A5C6E3"><enum>(II)</enum><header>Increase</header><text>In the case of taxable years beginning after December 31, 2022, the amount in subclause (I) shall be increased by $250,000.</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="HAB7B13B85BB045BEBBCB7CD8C98ECFE3"><enum>(b)</enum><header>Allowance of credit</header><paragraph id="H6CC1FAA8CC4D4246BD6C8C3B04B2E7F5"><enum>(1)</enum><header>In general</header><text>Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/26/3111">section 3111(f)</external-xref> is amended—</text><subparagraph id="HAF9C6C6E3ACE4C979AA2D7FA6882D1EF"><enum>(A)</enum><text>by striking <quote>for a taxable year, there shall be allowed</quote> and inserting “for a taxable year—</text><quoted-block style="OLC" display-inline="no-display-inline" id="H98FC1B6D42F9450B9E99C446B741388E" changed="added" reported-display-style="italic"><subparagraph id="HE9351925A1264686BBCD8DD117254646"><enum>(A)</enum><text>there shall be allowed</text></subparagraph><after-quoted-block>,</after-quoted-block></quoted-block></subparagraph><subparagraph id="HDEF2490D4F674208A525F4CAD0F70489"><enum>(B)</enum><text>by striking <quote>equal to the</quote> and inserting <quote>equal to so much of the</quote>,</text></subparagraph><subparagraph id="H2FE8C51D8F764D42932D812546B9C98A"><enum>(C)</enum><text>by striking the period at the end and inserting <quote>as does not exceed the limitation of subclause (I) of section 41(h)(4)(B)(i) (applied without regard to subclause (II) thereof), and</quote>, and</text></subparagraph><subparagraph id="H408F6E6C4194444C949D575EBD9D7359"><enum>(D)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H23F102CF50C34F569DF91512AD48D344" changed="added" reported-display-style="italic"><subparagraph id="H29F96304945841B5B6B5E47CB0530E65"><enum>(B)</enum><text>there shall be allowed as a credit against the tax imposed by subsection (b) for the first calendar quarter which begins after the date on which the taxpayer files the return specified in section 41(h)(4)(A)(ii) an amount equal to so much of the payroll tax credit portion determined under section 41(h)(2) as is not allowed as a credit under subparagraph (A).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="H2076A01CD51E42C8A29998EFB6C79614"><enum>(2)</enum><header>Limitation</header><text>Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/3111">section 3111(f)</external-xref> is amended—</text><subparagraph id="H5465F42CC232444DBB07C4D9B49F40AA"><enum>(A)</enum><text>by striking <quote>paragraph (1)</quote> and inserting <quote>paragraph (1)(A)</quote>, and</text></subparagraph><subparagraph id="H4F0DD0887E394FE785FE8FD2CE5E14E3"><enum>(B)</enum><text>by inserting <quote>, and the credit allowed by paragraph (1)(B) shall not exceed the tax imposed by subsection (b) for any calendar quarter,</quote> after <quote>calendar quarter</quote>.</text></subparagraph></paragraph><paragraph id="H5AD5CD7CC6054F3781E0E27948733353"><enum>(3)</enum><header>Carryover</header><text>Paragraph (3) of <external-xref legal-doc="usc" parsable-cite="usc/26/3111">section 3111(f)</external-xref> is amended by striking <quote>the credit</quote> and inserting <quote>any credit</quote>.</text></paragraph><paragraph id="HC6DE7F61C79F416CB8CD39BE8B4A5867"><enum>(4)</enum><header>Deduction allowed</header><text>Paragraph (4) of <external-xref legal-doc="usc" parsable-cite="usc/26/3111">section 3111(f)</external-xref> is amended—</text><subparagraph id="HC8C1222B7EE349AFA7723238320FB315"><enum>(A)</enum><text>by striking <quote>credit</quote> and inserting <quote>credits</quote>, and</text></subparagraph><subparagraph id="H430A4ED3642F40DDAD3FF7A8E5616179"><enum>(B)</enum><text>by striking <quote>subsection (a)</quote> and inserting <quote>subsection (a) or (b)</quote>.</text></subparagraph></paragraph></subsection><subsection id="HB3AB738A950642FC953605180DB7B700"><enum>(c)</enum><header>Aggregation rules</header><text>Clause (ii) of <external-xref legal-doc="usc" parsable-cite="usc/26/41">section 41(h)(5)(B)</external-xref> is amended by striking <quote>the $250,000 amount</quote> and inserting <quote>each of the $250,000 amounts</quote>.</text></subsection><subsection id="H69C19C5DB69740DCA5ED4B52F27A1DC3"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2022.</text></subsection></section><section id="id3507000b6a6849fd8609827ed03f21a3"><enum>13903.</enum><header>Reinstatement of limitation rules for deduction for State and local, etc., taxes; extension of limitation on excess business losses of noncorporate taxpayers</header><subsection id="id7fddccc402bb4412b0106e5750593a50"><enum>(a)</enum><header>Reinstatement of limitation rules for deduction for State and local, etc., taxes</header><paragraph id="id90D6637ED0E7486389DF77E2BA75E726"><enum>(1)</enum><header>In general</header><text>Section 164(b)(6), as amended by section 13904, is further amended—</text><subparagraph id="idd7e67bba5fda465db9c1e874e532f035"><enum>(A)</enum><text>in the heading, by striking <quote><header-in-text style="OLC" level="paragraph">2026</header-in-text></quote> and inserting <quote><header-in-text style="OLC" level="paragraph">2025</header-in-text></quote>, and</text></subparagraph><subparagraph id="id168bdf2716a94259b4e3669138ef7ce8"><enum>(B)</enum><text>by striking <quote>2027</quote> and inserting <quote>2026</quote>.</text></subparagraph></paragraph><paragraph id="id79446961789f4e3b9afa113dfc2feff5"><enum>(2)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to taxable years beginning after December 31, 2022.</text></paragraph></subsection><subsection id="id1da669e083914575a681cc5875ec49a5"><enum>(b)</enum><header>Extension of limitation on excess business losses of noncorporate taxpayers</header><paragraph id="ida1306a24a45649efb364ec55578257d4"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/461">Section 461(l)(1)</external-xref> is amended by striking <quote>January 1, 2027</quote> each place it appears and inserting <quote>January 1, 2029</quote>.</text></paragraph><paragraph id="id745ea450e9004465a66d1430b7581b8c"><enum>(2)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to taxable years beginning after December 31, 2026.</text></paragraph></subsection></section><section id="idc5f990dfd3a3447ca904d4e65c13620a"><enum>13904.</enum><header>Removal of harmful small business taxes; extension of limitation on deduction for State and local, etc., taxes</header><subsection id="id41A4E77AB98E483ABED8FD709DAB20BA"><enum>(a)</enum><header>Removal of harmful small business taxes</header><text>Subparagraph (D) of section 59(k)(1), as added by <external-xref legal-doc="usc" parsable-cite="usc/26/10101">section 10101,</external-xref> is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id0C79D67CCAB24D7699B4A5B2AE709CA1" changed="added" reported-display-style="italic"><subparagraph id="idC5A3D9A1BC184A018BE723E537E002CB" commented="no"><enum>(D)</enum><header>Special rules for determining applicable corporation status</header><text>Solely for purposes of determining whether a corporation is an applicable corporation under this paragraph, all adjusted financial statement income of persons treated as a single employer with such corporation under subsection (a) or (b) of section 52 shall be treated as adjusted financial statement income of such corporation, and adjusted financial statement income of such corporation shall be determined without regard to paragraphs (2)(D)(i) and (11) of section 56A(c).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id6498342EA2D743848462F6BAFE3531C4"><enum>(b)</enum><header>Extension of limitation on deduction for State and local, etc., taxes</header><paragraph id="idc0921f542aef4ca98775457fa44da08b"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/164">Section 164(b)(6)</external-xref> is amended—</text><subparagraph id="id84072C1113F440148395A28A3F43BC93"><enum>(A)</enum><text>in the heading, by striking <quote><header-in-text style="OLC" level="paragraph">2025</header-in-text></quote> and inserting <quote><header-in-text style="OLC" level="paragraph">2026</header-in-text></quote>, and</text></subparagraph><subparagraph id="idED9FB4D3561F40899CBFE85C9BAF306D"><enum>(B)</enum><text>by striking <quote>2026</quote> and inserting <quote>2027</quote>.</text></subparagraph></paragraph><paragraph id="idaceba9b892394ef5b6a5d9be57071374"><enum>(2)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to taxable years beginning after December 31, 2022.</text></paragraph></subsection></section></part></subtitle>

116 HR 5376 EAS: U.S. House of Representatives 2022-08-07 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

117th CONGRESS2d Session

H.R. 5376

In the Senate of the United States,

August 7 (legislative day, August 6), 2022.

Amendment:

That the bill from the House of Representatives (H.R. 5376) entitled An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14., do pass with the following

Strike all after the enacting clause and insert the following:

<enum>I</enum><header>Committee on Finance</header><subtitle id="H8444456D7CD34662B6FF8895C76F41D4"><enum>A</enum><header>Deficit reduction</header><section id="H5F9A61EAAEEE426ABB4BC7074CA788EA"><enum>10001.</enum><header>Amendment of 1986 Code</header><text display-inline="no-display-inline">Except as otherwise expressly provided, whenever in this subtitle an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.</text></section><part id="HF9C0FC49838541389D3588DC0152E177"><enum>1<?LEXA-Enum 1?></enum><header>Corporate tax reform</header><section id="H1104E652E9C94FB3A867A19BDFD460DF"><enum>10101.</enum><header>Corporate alternative minimum tax</header><subsection id="H4A646D1291E440A88A1B1CFFE63C3C69"><enum>(a)</enum><header>Imposition of tax</header><paragraph id="HEC3D6432FB584892B837985D58097827"><enum>(1)</enum><header>In general</header><text>Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/55">section 55(b)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HFB484D8A3DDE4A4FB47412D447F96ACC" changed="added" reported-display-style="italic"><paragraph id="H01E6B1CCD3214C80B170815F99B8B71F"><enum>(2)</enum><header>Corporations</header><subparagraph id="HFB0D86E7BA6B46B7AF848E15B1D30C74"><enum>(A)</enum><header>Applicable corporations</header><text>In the case of an applicable corporation, the tentative minimum tax for the taxable year shall be the excess of—</text><clause id="H8C5F6BC50C024137B5E7F64918BE4939"><enum>(i)</enum><text>15 percent of the adjusted financial statement income for the taxable year (as determined under section 56A), over</text></clause><clause id="HAD0B85E16AE9435BAB54014889986354" commented="no"><enum>(ii)</enum><text>the corporate AMT foreign tax credit for the taxable year. </text></clause></subparagraph><subparagraph id="H428DA6A9E35F4781A692E66DE04FD1B4"><enum>(B)</enum><header>Other corporations</header><text>In the case of any corporation which is not an applicable corporation, the tentative minimum tax for the taxable year shall be zero.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H52948B6BA4CC432EB8F90EA09987128A"><enum>(2)</enum><header>Applicable corporation</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/59">Section 59</external-xref> is amended by adding at the end the following new subsection:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H9190EF27138B4084819C94A55E050D77" changed="added" reported-display-style="italic"><subsection id="H84E2E51B5DAA40F2BC1D4C1A8E79BE78"><enum>(k)</enum><header>Applicable corporation</header><text>For purposes of this part—</text><paragraph id="H4F51668EC7354D42B759714949626CC8"><enum>(1)</enum><header>Applicable corporation defined</header><subparagraph id="HCC7245A66BCD440DB8E47E873721B09F"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>applicable corporation</term> means, with respect to any taxable year, any corporation (other than an S corporation, a regulated investment company, or a real estate investment trust) which meets the average annual adjusted financial statement income test of subparagraph (B) for one or more taxable years which—</text><clause id="H5740A911A04B4790833945E504E4068E"><enum>(i)</enum><text>are prior to such taxable year, and</text></clause><clause id="HCCF3E03004334105B5EE2A230EEEA9D8"><enum>(ii)</enum><text>end after December 31, 2021.</text></clause></subparagraph><subparagraph id="H3F3AF6D1C3D145699E9A6CAEF4E1332B"><enum>(B)</enum><header>Average annual adjusted financial statement income test</header><text display-inline="yes-display-inline">For purposes of this subsection—</text><clause id="H84A17AFA3ECC42BBB94D03BC65CA363C"><enum>(i)</enum><text>a corporation meets the average annual adjusted financial statement income test for a taxable year if the average annual adjusted financial statement income of such corporation (determined without regard to section 56A(d)) for the 3-taxable-year period ending with such taxable year exceeds $1,000,000,000, and</text></clause><clause id="HDDAB0D262D3F4E5BA9C8C769D353AD15"><enum>(ii)</enum><text>in the case of a corporation described in paragraph (2), such corporation meets the average annual adjusted financial statement income test for a taxable year if—</text><subclause id="HCA018D6882874F6A9420DA824BDDA56C"><enum>(I)</enum><text>the corporation meets the requirements of clause (i) for such taxable year (determined after the application of paragraph (2)), and</text></subclause><subclause id="H7FACBB3CAE1D4654A429C16B9F1E7D21"><enum>(II)</enum><text>the average annual adjusted financial statement income of such corporation (determined without regard to the application of paragraph (2) and without regard to section 56A(d)) for the 3-taxable-year-period ending with such taxable year is $100,000,000 or more.</text></subclause></clause></subparagraph><subparagraph id="H27FFE4E95F53417FBFF29AF71CC34E10"><enum>(C)</enum><header>Exception</header><text>Notwithstanding subparagraph (A), the term <term>applicable corporation</term> shall not include any corporation which otherwise meets the requirements of subparagraph (A) if—</text><clause id="H5023BFF69CC245EAAF846EC70B50AB35"><enum>(i)</enum><text>such corporation—</text><subclause id="HC3197B5FC3084D4A8603EC0422939CE2"><enum>(I)</enum><text>has a change in ownership, or</text></subclause><subclause id="H55CEDB1F204F4A8E885A3DACC9BEE157"><enum>(II)</enum><text>has a specified number (to be determined by the Secretary and which shall, as appropriate, take into account the facts and circumstances of the taxpayer) of consecutive taxable years, including the most recent taxable year, in which the corporation does not meet the average annual adjusted financial statement income test of subparagraph (B), and</text></subclause></clause><clause id="H36C8126E2BB1466D8A01CB387AD0BC57"><enum>(ii)</enum><text>the Secretary determines that it would not be appropriate to continue to treat such corporation as an applicable corporation.</text></clause><continuation-text continuation-text-level="subparagraph">The preceding sentence shall not apply to any corporation if, after the Secretary makes the determination described in clause (ii), such corporation meets the average annual adjusted financial statement income test of subparagraph (B) for any taxable year beginning after the first taxable year for which such determination applies.</continuation-text></subparagraph><subparagraph id="HACA4CF96633241BAB0569DFF7C17B77D" commented="no"><enum>(D)</enum><header>Special rules for determining applicable corporation status</header><clause commented="no" id="id2F284F785FB64E96A716ED0B7E8E2D3B"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">Solely for purposes of determining whether a corporation is an applicable corporation under this paragraph, all adjusted financial statement income of persons treated as a single employer with such corporation under subsection (a) or (b) of section 52 (determined with the modifications described in clause (ii)) shall be treated as adjusted financial statement income of such corporation, and adjusted financial statement income of such corporation shall be determined without regard to paragraphs (2)(D)(i) and (11) of section 56A(c).</text></clause><clause commented="no" id="idCE542EBED243424D8691A499985534FC"><enum>(ii)</enum><header>Modifications</header><text>For purposes of this subparagraph—</text><subclause commented="no" id="id73509130C4CE4EEB9133F84E811DC139"><enum>(I)</enum><text>section 52(a) shall be applied by substituting <quote>component members</quote> for <quote>members</quote>, and</text></subclause><subclause commented="no" id="id334E4C046F2F4FADACDE71F05D039C34"><enum>(II)</enum><text>for purposes of applying section 52(b), the term <quote>trade or business</quote> shall include any activity treated as a trade or business under paragraph (5) or (6) of section 469(c) (determined without regard to the phrase <quote>To the extent provided in regulations</quote> in such paragraph (6)).</text></subclause></clause><clause id="H1B4B86105B2449879D7176A236160256"><enum>(iii)</enum><header>Component member</header><text>For purposes of this subparagraph, the term <quote>component member</quote> has the meaning given such term by section 1563(b), except that the determination shall be made without regard to section 1563(b)(2). </text></clause></subparagraph><subparagraph commented="no" id="H1CB2DCB262D74DF292B05563E74F2979"><enum>(E)</enum><header>Other special rules</header><clause commented="no" id="HBCC06503623B42E2BCE5A02CABF59527"><enum>(i)</enum><header>Corporations in existence for less than 3 years</header><text display-inline="yes-display-inline">If the corporation was in existence for less than 3-taxable years, subparagraph (B) shall be applied on the basis of the period during which such corporation was in existence.</text></clause><clause id="H571C515ACBB645DFA5E76D04B03ECFFF"><enum>(ii)</enum><header>Short taxable years</header><text>Adjusted financial statement income for any taxable year of less than 12 months shall be annualized by multiplying the adjusted financial statement income for the short period by 12 and dividing the result by the number of months in the short period. </text></clause><clause id="H4A7DB5A5F50F4406AE4BD75B9F4F13CC"><enum>(iii)</enum><header>Treatment of predecessors</header><text>Any reference in this subparagraph to a corporation shall include a reference to any predecessor of such corporation. </text></clause></subparagraph></paragraph><paragraph id="idb3c3e231fd4f4f718ee1d04d182dc0ff"><enum>(2)</enum><header>Special rule for foreign-parented multinational groups</header><subparagraph id="idd8949b280bb244988f26f5899025ffb0"><enum>(A)</enum><header>In general</header><text>If a corporation is a member of a foreign-parented multinational group for any taxable year, then, solely for purposes of determining whether such corporation meets the average annual adjusted financial statement income test under paragraph (1)(B)(ii)(I) for such taxable year, the adjusted financial statement income of such corporation for such taxable year shall include the adjusted financial statement income of all members of such group. Solely for purposes of this subparagraph, adjusted financial statement income shall be determined without regard to paragraphs (2)(D)(i), (3), (4), and (11) of section 56A(c). </text></subparagraph><subparagraph id="id141500F8ECBF450D8466784D629A6D99"><enum>(B)</enum><header>Foreign-parented multinational group</header><text>For purposes of subparagraph (A), the term <term>foreign-parented multinational group</term> means, with respect to any taxable year, two or more entities if—</text><clause id="id6054766636404d9287fb4e5a0b874bdd"><enum>(i)</enum><text>at least one entity is a domestic corporation and another entity is a foreign corporation,</text></clause><clause id="idbdef259aa5bb478494c7049722e330ae"><enum>(ii)</enum><text>such entities are included in the same applicable financial statement with respect to such year, and</text></clause><clause id="idafca419e192d4ed887b68b5f2de97135"><enum>(iii)</enum><text>either—</text><subclause id="id27E901211D634B70B0329779565277C1"><enum>(I)</enum><text>the common parent of such entities is a foreign corporation, or</text></subclause><subclause id="id6F698AA3EA55418CB6C71BE6862D5E48"><enum>(II)</enum><text>if there is no common parent, the entities are treated as having a common parent which is a foreign corporation under subparagraph (D).</text></subclause></clause></subparagraph><subparagraph id="id4B5B2A9FBDE2468FAF0EBE1FD2E372A7" commented="no" display-inline="no-display-inline"><enum>(C)</enum><header display-inline="yes-display-inline">Foreign corporations engaged in a trade or business within the United States</header><text display-inline="yes-display-inline">For purposes of this paragraph, if a foreign corporation is engaged in a trade or business within the United States, such trade or business shall be treated as a separate domestic corporation that is wholly owned by the foreign corporation. </text></subparagraph><subparagraph id="idDB5A42E796384021ADA6757C473DB43E"><enum>(D)</enum><header>Other rules</header><text>The Secretary shall, applying the principles of this section, prescribe rules for the application of this paragraph, including rules for the determination of—</text><clause id="id6f03201adb3241d2ab4cc65f690b8fc7"><enum>(i)</enum><text>the entities (if any) which are to be to be treated under subparagraph (B)(iii)(II) as having a common parent which is a foreign corporation, </text></clause><clause id="idd1d75827f59e4648b0840194a32c231a"><enum>(ii)</enum><text>the entities to be included in a foreign-parented multinational group, and</text></clause><clause id="id41130B0D8B9E4A0B94B6B32AB8254CBF"><enum>(iii)</enum><text>the common parent of a foreign-parented multinational group.</text></clause></subparagraph></paragraph><paragraph commented="no" id="H9BAB4CBE58D740F6841302EF84F71F9E"><enum>(3)</enum><header>Regulations or other guidance</header><text>The Secretary shall provide regulations or other guidance for the purposes of carrying out this subsection, including regulations or other guidance—</text><subparagraph commented="no" id="HAE60AD8645294C70A7BE4EFECA1C1035"><enum>(A)</enum><text>providing a simplified method for determining whether a corporation meets the requirements of paragraph (1), and</text></subparagraph><subparagraph commented="no" id="H2D29523E602447DA9843812232735D3D"><enum>'(B)</enum><text>addressing the application of this subsection to a corporation that experiences a change in ownership.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H77A609F211A64B01AC5383B6790073C2"><enum>(3)</enum><header>Reduction for base erosion and anti-abuse tax</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/55">Section 55(a)(2)</external-xref> is amended by inserting <quote>plus, in the case of an applicable corporation, the tax imposed by section 59A</quote> before the period at the end.</text></paragraph><paragraph id="H371852958F3E44A79BBAC2305DEB494E"><enum>(4)</enum><header>Conforming amendments</header><subparagraph id="H27E2A47BD14D41F48D013E141C210D4F"><enum>(A)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/55">Section 55(a)</external-xref> is amended by striking <quote>In the case of a taxpayer other than a corporation, there</quote> and inserting <quote>There</quote>.</text></subparagraph><subparagraph id="H8E9B2E1DA7754CC29206A21DF690D381"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="HD30073ACEBC74B7F995673D607082A32"><enum>(i)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/55">Section 55(b)(1)</external-xref> is amended—</text><subclause id="HC09EB27C0C6749A09FEEEB1B24E1B12D" indent="up1"><enum>(I)</enum><text display-inline="yes-display-inline">by striking so much as precedes subparagraph (A) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H391FFA587FB249698CA3933DFDC83064" changed="added" reported-display-style="italic"><paragraph id="H86F396ABE023477C80895E4178723564"><enum>(1)</enum><header>Noncorporate taxpayers</header><text>In the case of a taxpayer other than a corporation—</text></paragraph><after-quoted-block>, and</after-quoted-block></quoted-block></subclause><subclause id="H2B0CBD05361B42C98F82D7B618C7F0FC" indent="up1"><enum>(II)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HF464ABCC72CF4090BB8CD95EB6E7D249" changed="added" reported-display-style="italic"><subparagraph id="HE58DFC25EEB5481D80834B4D4D4977BF"><enum>(D)</enum><header>Alternative minimum taxable income</header><text>The term <term>alternative minimum taxable income</term> means the taxable income of the taxpayer for the taxable year—</text><clause id="HA0BADA80E99245BB8A62F0AC5E666DB1"><enum>(i)</enum><text>determined with the adjustments provided in section 56 and section 58, and</text></clause><clause id="H7020052968284AD4BD6986DADDF47127"><enum>(ii)</enum><text>increased by the amount of the items of tax preference described in section 57.</text></clause><continuation-text continuation-text-level="subparagraph">If a taxpayer is subject to the regular tax, such taxpayer shall be subject to the tax imposed by this section (and, if the regular tax is determined by reference to an amount other than taxable income, such amount shall be treated as the taxable income of such taxpayer for purposes of the preceding sentence).</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subclause></clause><clause id="HC728075A79BE431587AD4C3CFD461576" indent="up1"><enum>(ii)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/860E">Section 860E(a)(4)</external-xref> is amended by striking <quote>55(b)(2)</quote> and inserting <quote>55(b)(1)(D)</quote>.</text></clause><clause indent="up1" id="H75809CAA509542E1949D1D34198D279E"><enum>(iii)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/897">Section 897(a)(2)(A)(i)</external-xref> is amended by striking <quote>55(b)(2)</quote> and inserting <quote>55(b)(1)(D)</quote>.</text></clause></subparagraph><subparagraph commented="no" id="H4C22C7EF4BFD4CC1B71E1E78508FEC44"><enum>(C)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/11">Section 11(d)</external-xref> is amended by striking <quote>the tax imposed by subsection (a)</quote> and inserting <quote>the taxes imposed by subsection (a) and section 55</quote>.</text></subparagraph><subparagraph commented="no" id="HD4F072877D614757925ACF7B84266B81"><enum>(D)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/12">Section 12</external-xref> is amended by adding at the end the following new paragraph:</text><quoted-block display-inline="no-display-inline" id="H794B17CF2B4A4BDEA541342587481D29" style="OLC" changed="added" reported-display-style="italic"><paragraph id="H6AAC5F9634854D84AB31D61C3F4D1249"><enum>(5)</enum><text>For alternative minimum tax, see section 55.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph commented="no" id="H1D97F200627C4D4A863670B1A6977A97"><enum>(E)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/882">Section 882(a)(1)</external-xref> is amended by inserting <quote>, 55,</quote> after <quote>section 11</quote>.</text></subparagraph><subparagraph commented="no" id="H7BD7F52E5F634BD4A53E0494925B7ADE"><enum>(F)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/6425">Section 6425(c)(1)(A)</external-xref> is amended to read as follows:</text><quoted-block display-inline="no-display-inline" id="H394CC753E5D94F40BAC15E065C8C1639" style="OLC" changed="added" reported-display-style="italic"><subparagraph id="H671FBF0F04354E04B970B1EF87907F0C"><enum>(A)</enum><text>the sum of—</text><clause id="HD0977F377D664FF4A99382D415CF1CEB"><enum>(i)</enum><text>the tax imposed by section 11 or subchapter L of chapter 1, whichever is applicable, plus</text></clause><clause id="H0CB0DFF9AEA84C3FAB9785A397AA2274"><enum>(ii)</enum><text>the tax imposed by section 55, plus</text></clause><clause id="H710FA31723B54F1DBCFB69DA1CB83184"><enum>(iii)</enum><text>the tax imposed by section 59A, over</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph commented="no" id="H21E72702CE3549AEBAF6C90FAB9F6499"><enum>(G)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/6655">Section 6655(e)(2)</external-xref> is amended by inserting <quote>, adjusted financial statement income (as defined in section 56A),</quote> before <quote>and modified taxable income</quote> each place it appears in subparagraphs (A)(i) and (B)(i).</text></subparagraph><subparagraph commented="no" id="HAE2A0DCE8A894B50A22F8B8D257DA2A7"><enum>(H)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/6655">Section 6655(g)(1)(A)</external-xref> is amended by redesignating clauses (ii) and (iii) as clauses (iii) and (iv), respectively, and by inserting after clause (i) the following new clause:</text><quoted-block display-inline="no-display-inline" id="HFC108B106B3244718C6750F866C2B8C8" style="OLC" changed="added" reported-display-style="italic"><clause commented="no" id="HA55D1F845AC14FD59F70A568A1B362B2"><enum>(ii)</enum><text>the tax imposed by section 55,</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="H891076BFF2854F9CBFA0392076BC571F"><enum>(b)</enum><header>Adjusted financial statement income</header><paragraph id="HCF7C8E4065B34D8CBB9FE6FA68C28CD3"><enum>(1)</enum><header>In general</header><text>Part VI of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after section 56 the following new section:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H41EE66D2C11A4A3383A78149E75049C0" changed="added" reported-display-style="italic"><section id="HBBBCF0AB3F2543059B28134ECDAE85C5"><enum>56A.</enum><header>Adjusted financial statement income</header><subsection id="H014E6F15C5444C7F8838D4BD3F89A8F3"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this part, the term <term>adjusted financial statement income</term> means, with respect to any corporation for any taxable year, the net income or loss of the taxpayer set forth on the taxpayer’s applicable financial statement for such taxable year, adjusted as provided in this section. </text></subsection><subsection id="HB4CA63A37969482E9A047760A1D1BC5B"><enum>(b)</enum><header>Applicable financial statement</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>applicable financial statement</term> means, with respect to any taxable year, an applicable financial statement (as defined in section 451(b)(3) or as specified by the Secretary in regulations or other guidance) which covers such taxable year.</text></subsection><subsection id="H5AD8F151075F47559BABED60B42549ED" commented="no"><enum>(c)</enum><header>General adjustments</header><paragraph commented="no" id="HFE83CD824F0E4F8E86FBD4B909C5E612"><enum>(1)</enum><header>Statements covering different taxable years</header><text>Appropriate adjustments shall be made in adjusted financial statement income in any case in which an applicable financial statement covers a period other than the taxable year. </text></paragraph><paragraph id="HFBE84E6AF5D64AEFB19F7621D3073F60" commented="no"><enum>(2)</enum><header>Special rules for related entities</header><subparagraph commented="no" id="HBD66E5B6DB8C4EE3BD38B2E009B191F3"><enum>(A)</enum><header>Consolidated financial statements</header><text display-inline="yes-display-inline">If the financial results of a taxpayer are reported on the applicable financial statement for a group of entities, rules similar to the rules of section 451(b)(5) shall apply.</text></subparagraph><subparagraph id="HA8CD2C0A1A8A4B8BA8A8F13DE19BE5FF" commented="no"><enum>(B)</enum><header>Consolidated returns</header><text>Except as provided in regulations prescribed by the Secretary, if the taxpayer is part of an affiliated group of corporations filing a consolidated return for any taxable year, adjusted financial statement income for such group for such taxable year shall take into account items on the group’s applicable financial statement which are properly allocable to members of such group. </text></subparagraph><subparagraph id="idCB0728472F654C96A6D672B7B3DBE67A" commented="no"><enum>(C)</enum><header>Treatment of dividends and other amounts</header><text>In the case of any corporation which is not included on a consolidated return with the taxpayer, adjusted financial statement income of the taxpayer with respect to such other corporation shall be determined by only taking into account the dividends received from such other corporation (reduced to the extent provided by the Secretary in regulations or other guidance) and other amounts which are includible in gross income or deductible as a loss under this chapter (other than amounts required to be included under sections 951 and 951A or such other amounts as provided by the Secretary) with respect to such other corporation.</text></subparagraph><subparagraph id="HDCE4CAF36299423784C268083277C7FE"><enum>(D)</enum><header>Treatment of partnerships</header><clause id="idD02C236B4A93490492019DABF623F499"><enum>(i)</enum><header>In general</header><text>Except as provided by the Secretary, if the taxpayer is a partner in a partnership, adjusted financial statement income of the taxpayer with respect to such partnership shall be adjusted to only take into account the taxpayer’s distributive share of adjusted financial statement income of such partnership. </text></clause><clause id="id58DC2C1CB0884213A513A97EDEF3768B"><enum>(ii)</enum><header>Adjusted financial statement income of partnerships</header><text>For the purposes of this part, the adjusted financial statement income of a partnership shall be the partnership’s net income or loss set forth on such partnership’s applicable financial statement (adjusted under rules similar to the rules of this section).</text></clause></subparagraph></paragraph><paragraph id="H7E19424D86EF449A8369A3B3527CDA64" commented="no"><enum>(3)</enum><header>Adjustments to take into account certain items of foreign income</header><subparagraph id="H9E1FF31F2698434FBB950702CF983932" commented="no"><enum>(A)</enum><header>In general</header><text>If, for any taxable year, a taxpayer is a United States shareholder of one or more controlled foreign corporations, the adjusted financial statement income of such taxpayer with respect to such controlled foreign corporation (as determined under paragraph (2)(C)) shall be adjusted to also take into account such taxpayer’s pro rata share (determined under rules similar to the rules under section 951(a)(2)) of items taken into account in computing the net income or loss set forth on the applicable financial statement (as adjusted under rules similar to those that apply in determining adjusted financial statement income) of each such controlled foreign corporation with respect to which such taxpayer is a United States shareholder. </text></subparagraph><subparagraph id="HA9864950B93948788BECC26F3BA99768" commented="no"><enum>(B)</enum><header>Negative adjustments</header><text>In any case in which the adjustment determined under subparagraph (A) would result in a negative adjustment for such taxable year—</text><clause id="HAFC03B511E714925914C4F52FB7332D6" commented="no"><enum>(i)</enum><text>no adjustment shall be made under this paragraph for such taxable year, and</text></clause><clause id="H3B08915AE6494F2BA6B07B83D4478FD8" commented="no"><enum>(ii)</enum><text>the amount of the adjustment determined under this paragraph for the succeeding taxable year (determined without regard to this paragraph) shall be reduced by an amount equal to the negative adjustment for such taxable year. </text></clause></subparagraph></paragraph><paragraph id="HEC7D6D352A374BA69A0F9A015510D9D9"><enum>(4)</enum><header>Effectively connected income</header><text display-inline="yes-display-inline">In the case of a foreign corporation, to determine adjusted financial statement income, the principles of section 882 shall apply.</text></paragraph><paragraph id="HABA29634CEAE477DA4DE1604A2D6D46A" commented="no"><enum>(5)</enum><header>Adjustments for certain taxes</header><text display-inline="yes-display-inline">Adjusted financial statement income shall be appropriately adjusted to disregard any Federal income taxes, or income, war profits, or excess profits taxes (within the meaning of section 901) with respect to a foreign country or possession of the United States, which are taken into account on the taxpayer’s applicable financial statement. To the extent provided by the Secretary, the preceding sentence shall not apply to income, war profits, or excess profits taxes (within the meaning of section 901) that are imposed by a foreign country or possession of the United States and taken into account on the taxpayer’s applicable financial statement if the taxpayer does not choose to have the benefits of subpart A of part III of subchapter N for the taxable year. The Secretary shall prescribe such regulations or other guidance as may be necessary and appropriate to provide for the proper treatment of current and deferred taxes for purposes of this paragraph, including the time at which such taxes are properly taken into account. </text></paragraph><paragraph id="HC15DD7E2A8E34E549F2C126AEF1871E7" commented="no"><enum>(6)</enum><header>Adjustment with respect to disregarded entities</header><text>Adjusted financial statement income shall be adjusted to take into account any adjusted financial statement income of a disregarded entity owned by the taxpayer.</text></paragraph><paragraph id="HE6BBDB86C08A465D9C58134608CB9AD7"><enum>(7)</enum><header>Special rule for cooperatives</header><text>In the case of a cooperative to which section 1381 applies, the adjusted financial statement income (determined without regard to this paragraph) shall be reduced by the amounts referred to in section 1382(b) (relating to patronage dividends and per-unit retain allocations) to the extent such amounts were not otherwise taken into account in determining adjusted financial statement income.</text></paragraph><paragraph id="H722E8D8DC0434A8E8D58DA3E533423F9"><enum>(8)</enum><header>Rules for Alaska Native Corporations</header><text>Adjusted financial statement income shall be appropriately adjusted to allow—</text><subparagraph id="HF401A64FF3534815BA052C107AB33E30"><enum>(A)</enum><text>cost recovery and depletion attributable to property the basis of which is determined under section 21(c) of the Alaska Native Claims Settlement Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1620">43 U.S.C. 1620(c)</external-xref>), and</text></subparagraph><subparagraph id="H57100E03D0944BC2B91C9207FC2AB422"><enum>(B)</enum><text>deductions for amounts payable made pursuant to section 7(i) or section 7(j) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1606">43 U.S.C. 1606(i)</external-xref> and 1606(j)) only at such time as the deductions are allowed for tax purposes. </text></subparagraph></paragraph><paragraph id="id5F5BCDE29C494DF1A61E55CB293E5E0C" commented="no"><enum>(9)</enum><header>Amounts attributable to elections for direct payment of certain credits</header><text>Adjusted financial statement income shall be appropriately adjusted to disregard any amount treated as a payment against the tax imposed by subtitle A pursuant to an election under section 48D(d) or 6417, to the extent such amount was not otherwise taken into account under paragraph (5). </text></paragraph><paragraph id="H4D83C90742FE472DB76339EDF699F0D5" commented="no"><enum>(10)</enum><header>Consistent treatment of mortgage servicing income of taxpayer other than a regulated investment company</header><subparagraph id="H528EAD2364EC4FC3B78D820FAE06FB1F"><enum>(A)</enum><header>In general</header><text>Adjusted financial statement income shall be adjusted so as not to include any item of income in connection with a mortgage servicing contract any earlier than when such income is included in gross income under any other provision of this chapter. </text></subparagraph><subparagraph id="H48CE39E84AFA40DB82C2516314311CD4"><enum>(B)</enum><header>Rules for amounts not representing reasonable compensation</header><text>The Secretary shall provide regulations to prevent the avoidance of taxes imposed by this chapter with respect to amounts not representing reasonable compensation (as determined by the Secretary) with respect to a mortgage servicing contract.</text></subparagraph></paragraph><paragraph id="id7c600cd7bfef4fa5982afb80c36da3b1"><enum>(11)</enum><header>Adjustment with respect to defined benefit pensions</header><subparagraph id="id0A17E48562DD468ABA08BAD1B8B6F36F"><enum>(A)</enum><header>In general</header><text>Except as otherwise provided in rules prescribed by the Secretary in regulations or other guidance, adjusted financial statement income shall be—</text><clause id="ide5811f9784254576b25b4bfb7ed30155"><enum>(i)</enum><text>adjusted to disregard any amount of income, cost, or expense that would otherwise be included on the applicable financial statement in connection with any covered benefit plan,</text></clause><clause id="idf3e49261f59e412d962e2fb0acfae05b"><enum>(ii)</enum><text>increased by any amount of income in connection with any such covered benefit plan that is included in the gross income of the corporation under any other provision of this chapter, and</text></clause><clause id="idb0f4e54a96594450aa65b2201a43cd74"><enum>(iii)</enum><text>reduced by deductions allowed under any other provision of this chapter with respect to any such covered benefit plan. </text></clause></subparagraph><subparagraph id="id65c31901c1c84e36ac8a35bade59dba4" commented="no"><enum>(B)</enum><header>Covered benefit plan</header><text>For purposes of this paragraph, the term <term>covered benefit plan</term> means—</text><clause id="id8ac160c4c64e406385e41d3d397a924a" commented="no"><enum>(i)</enum><text>a defined benefit plan (other than a multiemployer plan described in section 414(f)) if the trust which is part of such plan is an employees’ trust described in section 401(a) which is exempt from tax under section 501(a), </text></clause><clause id="id272bb66acfa8413cbf33a2f2586de559" commented="no"><enum>(ii)</enum><text>any qualified foreign plan (as defined in section 404A(e)), or</text></clause><clause id="id9c772782b86f4766bb5a7d97232cae91" commented="no"><enum>(iii)</enum><text>any other defined benefit plan which provides post-employment benefits other than pension benefits.</text></clause></subparagraph></paragraph><paragraph id="id9E8A0F0388224E4C98A6CB5805FB7E3B" commented="no"><enum>(12)</enum><header>Tax-exempt entities</header><text>In the case of an organization subject to tax under section 511, adjusted financial statement income shall be appropriately adjusted to only take into account any adjusted financial statement income—</text><subparagraph id="idFFD0BBB4E317428BB1FE4D9BA40EECFA" commented="no"><enum>(A)</enum><text>of an unrelated trade or business (as defined in section 513) of such organization, or</text></subparagraph><subparagraph id="id56243433D9664D4D90D9A8201A837357" commented="no"><enum>(B)</enum><text>derived from debt-financed property (as defined in section 514) to the extent that income from such property is treated as unrelated business taxable income. </text></subparagraph></paragraph><paragraph id="id6b900b77c482481ba573344268f88517"><enum>(13)</enum><header>Depreciation</header><text>Adjusted financial statement income shall be—</text><subparagraph id="id5b391678cf9c48eeaa7393ff673839b8"><enum>(A)</enum><text>reduced by depreciation deductions allowed under section 167 with respect to property to which section 168 applies to the extent of the amount allowed as deductions in computing taxable income for the taxable year, and</text></subparagraph><subparagraph id="id645F1786B9A94E9E976BD19A1CBF39F2"><enum>(B)</enum><text>appropriately adjusted—</text><clause id="id8C469184E5A948BC8081799413E88E5E"><enum>(i)</enum><text>to disregard any amount of depreciation expense that is taken into account on the taxpayer's applicable financial statement with respect to such property, and </text></clause><clause id="id58f14caa957a42a4be610befee188c06"><enum>(ii)</enum><text>to take into account any other item specified by the Secretary in order to provide that such property is accounted for in the same manner as it is accounted for under this chapter. </text></clause></subparagraph></paragraph><paragraph id="idD92A04D7A9554883963E800666171A82"><enum>(14)</enum><header>Qualified wireless spectrum</header><subparagraph id="idA664C492914449B1A8417ACEC0FD4405"><enum>(A)</enum><header>In general</header><text>Adjusted financial statement income shall be—</text><clause id="idF5F906EBB6ED4CBB8E628B481F65CFEF"><enum>(i)</enum><text>reduced by amortization deductions allowed under section 197 with respect to qualified wireless spectrum to the extent of the amount allowed as deductions in computing taxable income for the taxable year, and</text></clause><clause id="idA527C118657749C8ACE6EED26615B2D9"><enum>(ii)</enum><text>appropriately adjusted—</text><subclause id="idC4E042BC6AC0438A94DFD1865139A8F2"><enum>(I)</enum><text>to disregard any amount of amortization expense that is taken into account on the taxpayer's applicable financial statement with respect to such qualified wireless spectrum, and </text></subclause><subclause id="id0CCAFED3797C404EA3E44FFD49EFAC12"><enum>(II)</enum><text>to take into account any other item specified by the Secretary in order to provide that such qualified wireless spectrum is accounted for in the same manner as it is accounted for under this chapter. </text></subclause></clause></subparagraph><subparagraph id="id92A8DCA33518460CBD512BBE954820EB"><enum>(B)</enum><header>Qualified wireless spectrum</header><text>For purposes of this paragraph, the term <term>qualified wireless spectrum</term> means wireless spectrum which—</text><clause id="id9ECC6A039F654455954A1143D4ED1329"><enum>(i)</enum><text>is used in the trade or business of a wireless telecommunications carrier, and</text></clause><clause id="id54956A844AD94E6FB934E79B3A088B68"><enum>(ii)</enum><text>was acquired after December 31, 2007, and before the date of enactment of this section. </text></clause></subparagraph></paragraph><paragraph id="H564AFE74884B4F9F8C685E78D7B69E82"><enum>(15)</enum><header>Secretarial authority to adjust items</header><text>The Secretary shall issue regulations or other guidance to provide for such adjustments to adjusted financial statement income as the Secretary determines necessary to carry out the purposes of this section, including adjustments—</text><subparagraph id="H840B32A536C949F7AEC2B4F87A716A01"><enum>(A)</enum><text>to prevent the omission or duplication of any item, and</text></subparagraph><subparagraph id="H2100B3B402C848478AD440DD2C6DA639" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">to carry out the principles of part II of subchapter C of this chapter (relating to corporate liquidations), part III of subchapter C of this chapter (relating to corporate organizations and reorganizations), and part II of subchapter K of this chapter (relating to partnership contributions and distributions).</text></subparagraph></paragraph></subsection><subsection id="H365F7EE188E64F3A892B31BB771A8DF2"><enum>(d)</enum><header>Deduction for financial statement net operating loss</header><paragraph id="H638A1BA1E271495F8074AFAFB4D0EA74"><enum>(1)</enum><header>In general</header><text>Adjusted financial statement income (determined after application of subsection (c) and without regard to this subsection) shall be reduced by an amount equal to the lesser of—</text><subparagraph id="H51255B0B3E804329B565747E0CEF284E"><enum>(A)</enum><text>the aggregate amount of financial statement net operating loss carryovers to the taxable year, or</text></subparagraph><subparagraph id="HD8D9527F12304657A3954F1936DE4727"><enum>(B)</enum><text>80 percent of adjusted financial statement income computed without regard to the deduction allowable under this subsection.</text></subparagraph></paragraph><paragraph id="H2E37307F765E4E638C27736936DF4D1B"><enum>(2)</enum><header>Financial statement net operating loss carryover</header><text>A financial statement net operating loss for any taxable year shall be a financial statement net operating loss carryover to each taxable year following the taxable year of the loss. The portion of such loss which shall be carried to subsequent taxable years shall be the amount of such loss remaining (if any) after the application of paragraph (1).</text></paragraph><paragraph id="H421AEDFE4DD840D3BDF95E4AD233D717"><enum>(3)</enum><header>Financial statement net operating loss defined</header><text>For purposes of this subsection, the term <term>financial statement net operating loss</term> means the amount of the net loss (if any) set forth on the corporation’s applicable financial statement (determined after application of subsection (c) and without regard to this subsection) for taxable years ending after December 31, 2019. </text></paragraph></subsection><subsection id="HAE77239E513446D9BA14E1AEC7D32A58"><enum>(e)</enum><header>Regulations and other guidance</header><text>The Secretary shall provide for such regulations and other guidance as necessary to carry out the purposes of this section, including regulations and other guidance relating to the effect of the rules of this section on partnerships with income taken into account by an applicable corporation.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H02501CF5585944E49DDBD8C1BAD9AA76"><enum>(2)</enum><header>Clerical amendment</header><text>The table of sections for part VI of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after the item relating to section 56 the following new item:</text><quoted-block style="OLC" id="H0FAC89CAF2D445A4A185AA1B7A7C0E02" changed="added" reported-display-style="italic"><toc changed="added" reported-display-style="italic"><toc-entry level="section" idref="HBBBCF0AB3F2543059B28134ECDAE85C5">Sec. 56A. Adjusted financial statement income.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H366B98ECE3914072B5103FE198344917"><enum>(c)</enum><header>Corporate AMT foreign tax credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/59">Section 59</external-xref>, as amended by this section, is amended by adding at the end the following new subsection:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H52AD05747CC74AF1BEB30E248FADCA92" changed="added" reported-display-style="italic"><subsection id="H17EFA4294B5D4E7CA0D590ECFE1FF1C1"><enum>(l)</enum><header>Corporate AMT foreign tax credit</header><paragraph id="HD400451BD74D4D21BFF006D7F2BEA725"><enum>(1)</enum><header>In general</header><text>For purposes of this part, if an applicable corporation chooses to have the benefits of subpart A of part III of subchapter N for any taxable year, the corporate AMT foreign tax credit for the taxable year of the applicable corporation is an amount equal to sum of—</text><subparagraph id="H9A590589AA7F49BE95AB07930CE4BE91"><enum>(A)</enum><text>the lesser of—</text><clause id="HDEBD5C1E1AFA4487B509396EAC284539"><enum>(i)</enum><text>the aggregate of the applicable corporation’s pro rata share (as determined under section 56A(c)(3)) of the amount of income, war profits, and excess profits taxes (within the meaning of section 901) imposed by any foreign country or possession of the United States which are—</text><subclause id="HFCD78A31DFC8411FA3E60F76CB14F8DD"><enum>(I)</enum><text display-inline="yes-display-inline">taken into account on the applicable financial statement of each controlled foreign corporation with respect to which the applicable corporation is a United States shareholder, and</text></subclause><subclause id="H8C19F2437846450A904ACD6771B72DB0"><enum>(II)</enum><text>paid or accrued (for Federal income tax purposes) by each such controlled foreign corporation, or</text></subclause></clause><clause id="H8895D769AE274B9BB42A08681FC050B9"><enum>(ii)</enum><text>the product of the amount of the adjustment under section 56A(c)(3) and the percentage specified in section 55(b)(2)(A)(i), and</text></clause></subparagraph><subparagraph id="HFA666C7B8FF04F34A8D669E49C3C3772"><enum>(B)</enum><text>in the case of an applicable corporation that is a domestic corporation, the amount of income, war profits, and excess profits taxes (within the meaning of section 901) imposed by any foreign country or possession of the United States to the extent such taxes are— </text><clause id="H26F137DC63144176B07A519ECF9105B3"><enum>(i)</enum><text>taken into account on the applicable corporation’s applicable financial statement, and</text></clause><clause id="H7FFA578B0E61479B818A1B24F479E79B"><enum>(ii)</enum><text>paid or accrued (for Federal income tax purposes) by the applicable corporation.</text></clause></subparagraph></paragraph><paragraph id="H7C3546832A7940219F82407884740652"><enum>(2)</enum><header>Carryover of excess tax paid</header><text>For any taxable year for which an applicable corporation chooses to have the benefits of subpart A of part III of subchapter N, the excess of the amount described in paragraph (1)(A)(i) over the amount described in paragraph (1)(A)(ii) shall increase the amount described in paragraph (1)(A)(i) in any of the first 5 succeeding taxable years to the extent not taken into account in a prior taxable year.</text></paragraph><paragraph id="HCFAE3F5EBD004BEAB6674ED76FAEBF1B"><enum>(3)</enum><header>Regulations or other guidance</header><text>The Secretary shall provide for such regulations or other guidance as is necessary to carry out the purposes of this subsection.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H535A791C120946458A7936723B3F96AC"><enum>(d)</enum><header>Treatment of general business credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/38">Section 38(c)(6)(E)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H18EF19CAF6414660885A8FC1ADB1B8D7" changed="added" reported-display-style="italic"><subparagraph id="HD76A0B92FD8F4437A26E946132A93507"><enum>(E)</enum><header>Corporations</header><text>In the case of a corporation—</text><clause id="H01DE05A056AE4AAD9A6FD06AC41600D2"><enum>(i)</enum><text>the first sentence of paragraph (1) shall be applied by substituting <quote>25 percent of the taxpayer's net income tax as exceeds $25,000</quote> for <quote>the greater of</quote> and all that follows,</text></clause><clause id="HC9F8A54A9AE14F10A9E7E8CC0EB1159B"><enum>(ii)</enum><text>paragraph (2)(A) shall be applied without regard to clause (ii)(I) thereof, and</text></clause><clause id="HCABB8C9371CE43C1A8024327F4C64F2F"><enum>(iii)</enum><text>paragraph (4)(A) shall be applied without regard to clause (ii)(I) thereof.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="HDB346F4C44FF4401BEB73CC0C0E3AD48"><enum>(e)</enum><header>Credit for prior year minimum tax liability</header><paragraph commented="no" id="H050AC6AA11374E19B8D0DA69B25504A7"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/53">Section 53(e)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HC1F339BD7BD14E9CB8DE2C1BB49F630C" changed="added" reported-display-style="italic"><subsection commented="no" id="H5A66CD01C1B94B579659A5E192D5B6C9"><enum>(e)</enum><header>Application to applicable corporations</header><text>In the case of a corporation—</text><paragraph commented="no" id="H17FC8E3758F24CDDB3EDC1DB36CA2840"><enum>(1)</enum><text>subsection (b)(1) shall be applied by substituting <quote>the net minimum tax for all prior taxable years beginning after 2022</quote> for <quote>the adjusted net minimum tax imposed for all prior taxable years beginning after 1986</quote>, and</text></paragraph><paragraph commented="no" id="H2E1F24122AA847BBA213FCB4F71B3CB1"><enum>(2)</enum><text>the amount determined under subsection (c)(1) shall be increased by the amount of tax imposed under section 59A for the taxable year.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph commented="no" id="HDB3A82D729A54FDF92D8F55CAF5257BA"><enum>(2)</enum><header>Conforming amendments</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/53">Section 53(d)</external-xref> is amended—</text><subparagraph commented="no" id="HA6FEF73B6FB44EF0BA6644DB02C3947B"><enum>(A)</enum><text>in paragraph (2), by striking <quote>, except that in the case</quote> and all that follows through <quote>treated as zero</quote>, and</text></subparagraph><subparagraph commented="no" id="H2ED2E625F80B47C6BA89A41BF8BB625C"><enum>(B)</enum><text>by striking paragraph (3).</text></subparagraph></paragraph></subsection><subsection id="HB7610734AE5F46C7B9457A645D332B89" commented="no" display-inline="no-display-inline"><enum>(f)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2022.</text></subsection></section></part><part id="HF145E307AB994E22AE533F4843E14A46"><enum>2<?LEXA-Enum 2?></enum><header>Excise tax on repurchase of corporate stock</header><section id="H518226433FA14FD194F51FD46D4AA28C"><enum>10201.</enum><header>Excise tax on repurchase of corporate stock</header><subsection id="H6D45C6BB5706495F90695239942DE13C"><enum>(a)</enum><header>In general</header><text>Subtitle D is amended by inserting after chapter 36 the following new chapter:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H6D88AABE60D1478FA00641F636D312E2" changed="added" reported-display-style="italic"><chapter id="H39259B8B5FF4483FB2519001589033F7" style="OLC"><enum>37</enum><header>Repurchase of corporate stock</header><toc><toc-entry level="section" idref="H9B1188D45BA84F108B970E3E624BB95A">Sec. 4501. Repurchase of corporate stock. </toc-entry></toc><section id="H9B1188D45BA84F108B970E3E624BB95A" section-type="subsequent-section"><enum>4501.</enum><header>Repurchase of corporate stock</header><subsection id="HBDF4E7AFEC924CB2A9CD3A9562BEA954"><enum>(a)</enum><header>General rule</header><text>There is hereby imposed on each covered corporation a tax equal to 1 percent of the fair market value of any stock of the corporation which is repurchased by such corporation during the taxable year.</text></subsection><subsection id="H329A51D4810F464E80990C8E9185F71E"><enum>(b)</enum><header>Covered corporation</header><text>For purposes of this section, the term <term>covered corporation</term> means any domestic corporation the stock of which is traded on an established securities market (within the meaning of section 7704(b)(1)).</text></subsection><subsection id="HC074737F222444818425BEBB9306E038" commented="no"><enum>(c)</enum><header>Repurchase</header><text>For purposes of this section—</text><paragraph commented="no" id="HE01725FC71F14DAD983197A256E0559F"><enum>(1)</enum><header>In general</header><text>The term <term>repurchase</term> means—</text><subparagraph commented="no" id="HDE286044204045308519FDE06D7B8AF4"><enum>(A)</enum><text>a redemption within the meaning of section 317(b) with regard to the stock of a covered corporation, and</text></subparagraph><subparagraph commented="no" id="H3E2EFE2B363745A6B0EFF124A965760F"><enum>(B)</enum><text>any transaction determined by the Secretary to be economically similar to a transaction described in subparagraph (A).</text></subparagraph></paragraph><paragraph id="H2BECD27BFF1C46FDB0F3095F24673F32" commented="no"><enum>(2)</enum><header>Treatment of purchases by specified affiliates</header><subparagraph id="HCEA3EAAF2AB249719FE55B4F2946195D" commented="no"><enum>(A)</enum><header>In general</header><text>The acquisition of stock of a covered corporation by a specified affiliate of such covered corporation, from a person who is not the covered corporation or a specified affiliate of such covered corporation, shall be treated as a repurchase of the stock of the covered corporation by such covered corporation.</text></subparagraph><subparagraph id="HAC96BCAB0DF74FDFB49B0FF47BB523F7" commented="no"><enum>(B)</enum><header>Specified affiliate</header><text>For purposes of this section, the term <term>specified affiliate</term> means, with respect to any corporation—</text><clause commented="no" id="H81CAAAE1806943799EAAA47FAA662261"><enum>(i)</enum><text>any corporation more than 50 percent of the stock of which is owned (by vote or by value), directly or indirectly, by such corporation, and</text></clause><clause commented="no" id="H8E914FF9F9AA4DF88AFAAC73FC71D8A2"><enum>(ii)</enum><text>any partnership more than 50 percent of the capital interests or profits interests of which is held, directly or indirectly, by such corporation.</text></clause></subparagraph></paragraph><paragraph commented="no" id="H0285111CD9814CC08750FBC9D4561E96"><enum>(3)</enum><header>Adjustment</header><text>The amount taken into account under subsection (a) with respect to any stock repurchased by a covered corporation shall be reduced by the fair market value of any stock issued by the covered corporation during the taxable year, including the fair market value of any stock issued or provided to employees of such covered corporation or employees of a specified affiliate of such covered corporation during the taxable year, whether or not such stock is issued or provided in response to the exercise of an option to purchase such stock. </text></paragraph></subsection><subsection commented="no" id="HEE23DD944E2B4C599B788E0653838D37"><enum>(d)</enum><header>Special rules for acquisition of stock of certain foreign corporations</header><paragraph commented="no" id="H7FF9D3CF971943B39CF8979090B330DB"><enum>(1)</enum><header>In general</header><text>In the case of an acquisition of stock of an applicable foreign corporation by a specified affiliate of such corporation (other than a foreign corporation or a foreign partnership (unless such partnership has a domestic entity as a direct or indirect partner)) from a person who is not the applicable foreign corporation or a specified affiliate of such applicable foreign corporation, for purposes of this section—</text><subparagraph commented="no" id="HD97944AE0D6E491B84E06D668541524B"><enum>(A)</enum><text>such specified affiliate shall be treated as a covered corporation with respect to such acquisition,</text></subparagraph><subparagraph commented="no" id="HEBFA58D709C44C19B19BF72E0B597FF6"><enum>(B)</enum><text>such acquisition shall be treated as a repurchase of stock of a covered corporation by such covered corporation, and</text></subparagraph><subparagraph commented="no" id="HD88058442DEE41D7A0FB6EA6E4D0997A"><enum>(C)</enum><text>the adjustment under subsection (c)(3) shall be determined only with respect to stock issued or provided by such specified affiliate to employees of the specified affiliate.</text></subparagraph></paragraph><paragraph commented="no" id="H2603E8CAE6834236B104721A8FD4605D"><enum>(2)</enum><header>Surrogate foreign corporations</header><text>In the case of a repurchase of stock of a covered surrogate foreign corporation by such covered surrogate foreign corporation, or an acquisition of stock of a covered surrogate foreign corporation by a specified affiliate of such corporation, for purposes of this section—</text><subparagraph commented="no" id="HB04F528C8D194868B0CBE32F4AD5A42F"><enum>(A)</enum><text>the expatriated entity with respect to such covered surrogate foreign corporation shall be treated as a covered corporation with respect to such repurchase or acquisition,</text></subparagraph><subparagraph commented="no" id="H38FE42B86FD54EBD8A3A52938C218DB3"><enum>(B)</enum><text>such repurchase or acquisition shall be treated as a repurchase of stock of a covered corporation by such covered corporation, and</text></subparagraph><subparagraph commented="no" id="H253F3D92A9364A759EE9C28D69AAFBAF"><enum>(C)</enum><text>the adjustment under subsection (c)(3) shall be determined only with respect to stock issued or provided by such expatriated entity to employees of the expatriated entity.</text></subparagraph></paragraph><paragraph commented="no" id="HEA0B43E047D84899BB8636436A7D3186"><enum>(3)</enum><header>Definitions</header><text>For purposes of this subsection—</text><subparagraph commented="no" id="HB2D8D67F27484ECC97F24787EFC860E5"><enum>(A)</enum><header>Applicable foreign corporation</header><text>The term <term>applicable foreign corporation</term> means any foreign corporation the stock of which is traded on an established securities market (within the meaning of section 7704(b)(1)). </text></subparagraph><subparagraph id="H1681E45FF7DA4A7492D036C3F51EF1E3"><enum>(B)</enum><header>Covered surrogate foreign corporation</header><text>The term <term>covered surrogate foreign corporation</term> means any surrogate foreign corporation (as determined under section 7874(a)(2)(B) by substituting <quote>September 20, 2021</quote> for <quote>March 4, 2003</quote> each place it appears) the stock of which is traded on an established securities market (within the meaning of section 7704(b)(1)), but only with respect to taxable years which include any portion of the applicable period with respect to such corporation under section 7874(d)(1).</text></subparagraph><subparagraph id="H2E8E12F1C2524919826251741D93FA1A"><enum>(C)</enum><header>Expatriated entity</header><text>The term <term>expatriated entity</term> has the meaning given such term by section 7874(a)(2)(A). </text></subparagraph></paragraph></subsection><subsection id="HABA00BAC105C4EC8BA26A276B90E5119"><enum>(e)</enum><header>Exceptions</header><text>Subsection (a) shall not apply—</text><paragraph id="H57AD572F4FEC40528FFF435A08EED372"><enum>(1)</enum><text>to the extent that the repurchase is part of a reorganization (within the meaning of section 368(a)) and no gain or loss is recognized on such repurchase by the shareholder under chapter 1 by reason of such reorganization,</text></paragraph><paragraph id="H11B15640A9694DF78E2B46843BA07AB9"><enum>(2)</enum><text>in any case in which the stock repurchased is, or an amount of stock equal to the value of the stock repurchased is, contributed to an employer-sponsored retirement plan, employee stock ownership plan, or similar plan,</text></paragraph><paragraph id="HB80C364B2DB84822B7ECC85B2CAE05A8"><enum>(3)</enum><text>in any case in which the total value of the stock repurchased during the taxable year does not exceed $1,000,000, </text></paragraph><paragraph id="H3501C7E1E1E44F6AA291362B44EE1961"><enum>(4)</enum><text>under regulations prescribed by the Secretary, in cases in which the repurchase is by a dealer in securities in the ordinary course of business,</text></paragraph><paragraph id="H720AB1CF1B184E6389BEDB8DE94A551D"><enum>(5)</enum><text>to repurchases by a regulated investment company (as defined in section 851) or a real estate investment trust, or</text></paragraph><paragraph id="H64FE4C562D154900BE74B1BE284A3EA2"><enum>(6)</enum><text>to the extent that the repurchase is treated as a dividend for purposes of this title. </text></paragraph></subsection><subsection id="H86085F06320B4342BA08A1C0142F5F0C"><enum>(f)</enum><header>Regulations and guidance</header><text>The Secretary shall prescribe such regulations and other guidance as are necessary or appropriate to carry out, and to prevent the avoidance of, the purposes of this section, including regulations and other guidance—</text><paragraph id="HA5E51C3F64D6417AB172D8DE802C00C1"><enum>(1)</enum><text>to prevent the abuse of the exceptions provided by subsection (e),</text></paragraph><paragraph id="HB154A0AAFB4946B3A2CDF6369A56BDED"><enum>(2)</enum><text>to address special classes of stock and preferred stock, and</text></paragraph><paragraph id="H5E3CA972602C4D62BE3C7710936C1C5F"><enum>(3)</enum><text>for the application of the rules under subsection (d).</text></paragraph></subsection></section></chapter><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H93F7131E0B0846FC9EDCD3720B821907"><enum>(b)</enum><header>Tax not deductible</header><text>Paragraph (6) of <external-xref legal-doc="usc" parsable-cite="usc/26/275">section 275(a)</external-xref> is amended by inserting <quote>37,</quote> before <quote>41</quote>.</text></subsection><subsection id="H8CFC0EFA359F4BE993966A784F8E1E45"><enum>(c)</enum><header>Clerical amendment</header><text>The table of chapters for subtitle D is amended by inserting after the item relating to chapter 36 the following new item:</text><quoted-block style="OLC" id="HE05AD13709674D7EBC84DAA6CA863D5A" changed="added" reported-display-style="italic"><toc changed="added" reported-display-style="italic"><toc-entry level="chapter" idref="H39259B8B5FF4483FB2519001589033F7">Chapter 37—Repurchase of corporate stock</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H4DB6DDB364D9463CA6E59213147A921F"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to repurchases (within the meaning of <external-xref legal-doc="usc" parsable-cite="usc/26/4501">section 4501(c)</external-xref> of the Internal Revenue Code of 1986, as added by this section) of stock after December 31, 2022.</text></subsection></section></part><part id="HB2A140B14D214D3FBF49FD870784B7CD"><enum>3<?LEXA-Enum 4?></enum><header>Funding the Internal Revenue Service and Improving Taxpayer Compliance</header><section id="H4318BCC93AC34B6E9F7E5BAFDBB6FFD7"><enum>10301.</enum><header>Enhancement of Internal Revenue Service resources</header><subsection id="H2F9F223187F34B4FB0093D1F6F3BABA6"><enum/><header>In general</header><text>The following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 2022: </text><paragraph id="H74254327C0E548C0895D7EAD63D93099"><enum>(1)</enum><header>Internal Revenue Service</header><subparagraph id="H7E97503ABBC645FB885FEF1D0B969DDC"><enum>(A)</enum><header>In general</header><clause id="HF51108BAA2004390A81CB1495D9D7C09"><enum>(i)</enum><header>Taxpayer services</header><text display-inline="yes-display-inline">For necessary expenses of the Internal Revenue Service to provide taxpayer services, including pre-filing assistance and education, filing and account services, taxpayer advocacy services, and other services as authorized by <external-xref legal-doc="usc" parsable-cite="usc/5/3109">5 U.S.C. 3109</external-xref>, at such rates as may be determined by the Commissioner, $3,181,500,000, to remain available until September 30, 2031: <italic>Provided,</italic> That these amounts shall be in addition to amounts otherwise available for such purposes.</text></clause><clause id="HB015A63E04FD4E599C56DEF5C1DFA97B"><enum>(ii)</enum><header>Enforcement</header><text display-inline="yes-display-inline">For necessary expenses for tax enforcement activities of the Internal Revenue Service to determine and collect owed taxes, to provide legal and litigation support, to conduct criminal investigations (including investigative technology), to provide digital asset monitoring and compliance activities, to enforce criminal statutes related to violations of internal revenue laws and other financial crimes, to purchase and hire passenger motor vehicles (<external-xref legal-doc="usc" parsable-cite="usc/31/1343">31 U.S.C. 1343(b)</external-xref>), and to provide other services as authorized by <external-xref legal-doc="usc" parsable-cite="usc/5/3109">5 U.S.C. 3109</external-xref>, at such rates as may be determined by the Commissioner, $45,637,400,000, to remain available until September 30, 2031: <italic>Provided,</italic> That these amounts shall be in addition to amounts otherwise available for such purposes. </text></clause><clause id="H1373BE3B9BE34027929CA5E78CA84F65"><enum>(iii)</enum><header>Operations support</header><text display-inline="yes-display-inline">For necessary expenses of the Internal Revenue Service to support taxpayer services and enforcement programs, including rent payments; facilities services; printing; postage; physical security; headquarters and other IRS-wide administration activities; research and statistics of income; telecommunications; information technology development, enhancement, operations, maintenance, and security; the hire of passenger motor vehicles (<external-xref legal-doc="usc" parsable-cite="usc/31/1343">31 U.S.C. 1343(b)</external-xref>); the operations of the Internal Revenue Service Oversight Board; and other services as authorized by <external-xref legal-doc="usc" parsable-cite="usc/5/3109">5 U.S.C. 3109</external-xref>, at such rates as may be determined by the Commissioner, $25,326,400,000, to remain available until September 30, 2031: <italic>Provided,</italic> That these amounts shall be in addition to amounts otherwise available for such purposes.</text></clause><clause id="H433C1404D7304305A874AC77495415DC"><enum>(iv)</enum><header>Business systems modernization</header><text display-inline="yes-display-inline">For necessary expenses of the Internal Revenue Service's business systems modernization program, including development of callback technology and other technology to provide a more personalized customer service but not including the operation and maintenance of legacy systems, $4,750,700,000, to remain available until September 30, 2031: <italic>Provided,</italic> That these amounts shall be in addition to amounts otherwise available for such purposes. </text></clause></subparagraph><subparagraph id="H0CD9B4D5193348D2B46E4891BB0EADCE" commented="no"><enum>(B)</enum><header>Task Force to design an IRS-run free <quote>Direct eFile</quote> tax return system</header><text display-inline="yes-display-inline">For necessary expenses of the Internal Revenue Service to deliver to Congress, within nine months following the date of the enactment of this Act, a report on (I) the cost (including options for differential coverage based on taxpayer adjusted gross income and return complexity) of developing and running a free direct efile tax return system, including costs to build and administer each release, with a focus on multi-lingual and mobile-friendly features and safeguards for taxpayer data; (II) taxpayer opinions, expectations, and level of trust, based on surveys, for such a free direct efile system; and (III) the opinions of an independent third-party on the overall feasibility, approach, schedule, cost, organizational design, and Internal Revenue Service capacity to deliver such a direct efile tax return system, $15,000,000, to remain available until September 30, 2023: <italic>Provided,</italic> That these amounts shall be in addition to amounts otherwise available for such purposes. </text></subparagraph></paragraph><paragraph id="H9CBE1DA4FC854B348CF3A46F85EC2E72"><enum>(2)</enum><header>Treasury Inspector General for Tax Administration</header><text display-inline="yes-display-inline">For necessary expenses of the Treasury Inspector General for Tax Administration in carrying out the Inspector General Act of 1978, as amended, including purchase and hire of passenger motor vehicles (<external-xref legal-doc="usc" parsable-cite="usc/31/1343">31 U.S.C. 1343(b)</external-xref>); and services authorized by <external-xref legal-doc="usc" parsable-cite="usc/5/3109">5 U.S.C. 3109</external-xref>, at such rates as may be determined by the Inspector General for Tax Administration, $403,000,000, to remain available until September 30, 2031: <italic>Provided,</italic> That these amounts shall be in addition to amounts otherwise available for such purposes.</text></paragraph><paragraph id="H51D93D316F224C67B8BA5EF12286504F"><enum>(3)</enum><header>Office of Tax Policy</header><text display-inline="yes-display-inline">For necessary expenses of the Office of Tax Policy of the Department of the Treasury to carry out functions related to promulgating regulations under the Internal Revenue Code of 1986, $104,533,803, to remain available until September 30, 2031: <italic>Provided,</italic> That these amounts shall be in addition to amounts otherwise available for such purposes.</text></paragraph><paragraph id="H8E87A7ED66434978AFD6C56C582CB214"><enum>(4)</enum><header>United States Tax Court</header><text display-inline="yes-display-inline">For necessary expenses of the United States Tax Court, including contract reporting and other services as authorized by <external-xref legal-doc="usc" parsable-cite="usc/5/3109">5 U.S.C. 3109</external-xref>; $153,000,000, to remain available until September 30, 2031: <italic>Provided,</italic> That these amounts shall be in addition to amounts otherwise available for such purposes.</text></paragraph><paragraph id="idc94f5443ad8c4fe096358ceb36d80666"><enum>(5)</enum><header>Treasury departmental offices</header><text>For necessary expenses of the Departmental Offices of the Department of the Treasury to provide for oversight and implementation support for actions by the Internal Revenue Service to implement this Act and the amendments made by this Act, $50,000,000, to remain available until September 30, 2031: <italic>Provided</italic>, That these amounts shall be in addition to amounts otherwise available for such purposes.</text></paragraph></subsection></section></part></subtitle><subtitle id="HB1A69B42AA6E4CBDA2955A933EB864E0"><enum>B</enum><header>Prescription Drug Pricing Reform </header><part id="H7078F9359A214D7DBCAEDB495DEBA627"><enum>1</enum><header>Lowering Prices Through Drug Price Negotiation </header><section id="HBE037AC4E8774B75A4A03E18DF641DDF"><enum>11001.</enum><header>Providing for lower prices for certain high-priced single source drugs</header><subsection id="H97959D99F203424E9C4DB157FC71D8C3"><enum>(a)</enum><header>Program To lower prices for certain high-Priced single source drugs</header><text display-inline="yes-display-inline">Title XI of the Social Security Act is amended by adding after section 1184 (<external-xref legal-doc="usc" parsable-cite="usc/42/1320e-3">42 U.S.C. 1320e–3</external-xref>) the following new part:</text><quoted-block display-inline="no-display-inline" id="H57132D17F95D4017A48163711C435E7C" style="OLC" changed="added" reported-display-style="italic"><part id="idF490163533B3490BA0688F6A4AC9B29D"><enum>E</enum><header>Price Negotiation Program to Lower Prices for Certain High-Priced Single Source Drugs</header><section id="HEB43D1539CF84CBBB37DCC511DF9A755"><enum>1191.</enum><header>Establishment of program</header><subsection id="HB11A662E98424F16B776B89384461F35"><enum>(a)</enum><header>In general</header><text>The Secretary shall establish a Drug Price Negotiation Program (in this part referred to as the <quote>program</quote>). Under the program, with respect to each price applicability period, the Secretary shall—</text><paragraph id="H54AD28E176444ED798C62ADF672C7E80"><enum>(1)</enum><text>publish a list of selected drugs in accordance with section 1192;</text></paragraph><paragraph id="HE263CB3AB9AF4318BADA334A137649ED"><enum>(2)</enum><text display-inline="yes-display-inline">enter into agreements with manufacturers of selected drugs with respect to such period, in accordance with section 1193;</text></paragraph><paragraph id="HE8509A0AB28640E593FB3313EEF78646"><enum>(3)</enum><text>negotiate and, if applicable, renegotiate maximum fair prices for such selected drugs, in accordance with section 1194; </text></paragraph><paragraph id="H1D6335E0090A469E9647FE4F54702219"><enum>(4)</enum><text display-inline="yes-display-inline">carry out the publication and administrative duties and compliance monitoring in accordance with sections 1195 and 1196.</text></paragraph></subsection><subsection id="H80A43DCBBEF6480E9C2C0095B73AEF7B"><enum>(b)</enum><header>Definitions relating to timing</header><text>For purposes of this part:</text><paragraph id="HFB4761B42A5D476A90F87DC61C71411C"><enum>(1)</enum><header>Initial price applicability year</header><text display-inline="yes-display-inline">The term <term>initial price applicability year</term> means a year (beginning with 2026).</text></paragraph><paragraph id="HB0208F8397EE45D99ABB8825FA334DB9"><enum>(2)</enum><header>Price applicability period</header><text display-inline="yes-display-inline">The term <term>price applicability period</term> means, with respect to a qualifying single source drug, the period beginning with the first initial price applicability year with respect to which such drug is a selected drug and ending with the last year during which the drug is a selected drug.</text></paragraph><paragraph id="H04D3AA58EB8B4408A787C82189759472"><enum>(3)</enum><header>Selected drug publication date</header><text>The term <term>selected drug publication date</term> means, with respect to each initial price applicability year, February 1 of the year that begins 2 years prior to such year.</text></paragraph><paragraph id="HA1169FAA5A614B8084D7130003763AFC"><enum>(4)</enum><header>Negotiation period</header><text display-inline="yes-display-inline">The term <term>negotiation period</term> means, with respect to an initial price applicability year with respect to a selected drug, the period—</text><subparagraph id="H9D8B2466DD514A09A5A60CEAB2A3F9F0"><enum>(A)</enum><text>beginning on the sooner of—</text><clause id="HD03CB3093A184DB4BF6D025C83BCFC20"><enum>(i)</enum><text>the date on which the manufacturer of the drug and the Secretary enter into an agreement under section 1193 with respect to such drug; or</text></clause><clause id="H667FDD3E79C64161B8B1A0A46480A4B7"><enum>(ii)</enum><text>February 28 following the selected drug publication date with respect to such selected drug; and</text></clause></subparagraph><subparagraph id="HD2308540BABD40588D3A4DBD4EB610A9"><enum>(B)</enum><text>ending on November 1 of the year that begins 2 years prior to the initial price applicability year.</text></subparagraph></paragraph></subsection><subsection id="HF034F2CE24D14DC8922051D7CAAFBD1A"><enum>(c)</enum><header>Other definitions</header><text display-inline="yes-display-inline">For purposes of this part:</text><paragraph id="id196C1E49E6E84BDA9A667527B7567E32"><enum>(1)</enum><header>Manufacturer</header><text>The term <quote>manufacturer</quote> has the meaning given that term in section 1847A(c)(6)(A).</text></paragraph><paragraph id="HC258318C4D6C42A8A6429B7AD266710D"><enum>(2)</enum><header>Maximum fair price eligible individual</header><text display-inline="yes-display-inline">The term <term>maximum fair price eligible individual</term> means, with respect to a selected drug—</text><subparagraph id="H8FD10C9424FD4EA18756B35678B46B39"><enum>(A)</enum><text display-inline="yes-display-inline">in the case such drug is dispensed to the individual at a pharmacy, by a mail order service, or by another dispenser, an individual who is enrolled in a prescription drug plan under part D of title XVIII or an MA–PD plan under part C of such title if coverage is provided under such plan for such selected drug; and</text></subparagraph><subparagraph id="HFF19BEB2B57C457B973DAEC432C67F5A"><enum>(B)</enum><text>in the case such drug is furnished or administered to the individual by a hospital, physician, or other provider of services or supplier, an individual who is enrolled under part B of title XVIII, including an individual who is enrolled in an MA plan under part C of such title, if payment may be made under part B for such selected drug.</text></subparagraph></paragraph><paragraph id="HAA429FCD53744CF1B055DDE07834ABCB"><enum>(3)</enum><header>Maximum fair price</header><text display-inline="yes-display-inline">The term <term>maximum fair price</term> means, with respect to a year during a price applicability period and with respect to a selected drug (as defined in section 1192(c)) with respect to such period, the price negotiated pursuant to section 1194, and updated pursuant to section 1195(b), as applicable, for such drug and year. </text></paragraph><paragraph id="id227FC54B76244F8CBDBE1F85F0696031"><enum>(4)</enum><header>Reference product</header><text>The term <quote>reference product</quote> has the meaning given such term in section 351(i) of the Public Health Service Act. </text></paragraph><paragraph id="id3896A61EB5914238AE6816C2F8E6E527"><enum>(5)</enum><header>Total expenditures</header><text display-inline="yes-display-inline">The term <quote>total expenditures</quote> includes, in the case of expenditures with respect to part D of title XVIII, the total gross covered prescription drug costs (as defined in section 1860D–15(b)(3)). The term <quote>total expenditures</quote> excludes, in the case of expenditures with respect to part B of such title, expenditures for a drug or biological product that are bundled or packaged into the payment for another service. </text></paragraph><paragraph id="H0B02195EFE71473F865E7C9D06F15654"><enum>(6)</enum><header>Unit</header><text display-inline="yes-display-inline">The term <term>unit</term> means, with respect to a drug or biological product, the lowest identifiable amount (such as a capsule or tablet, milligram of molecules, or grams) of the drug or biological product that is dispensed or furnished. </text></paragraph></subsection><subsection id="idCDD562A77E2D40889186D64F1286D0D1"><enum>(d)</enum><header>Timing for initial price applicability year 2026</header><text>Notwithstanding the provisions of this part, in the case of initial price applicability year 2026, the following rules shall apply for purposes of implementing the program:</text><paragraph id="id51300EB1A2D14E9BB5E64137A3D0C053"><enum>(1)</enum><text>Subsection (b)(3) shall be applied by substituting <quote>September 1, 2023</quote> for <quote>, with respect to each initial price applicability year, February 1 of the year that begins 2 years prior to such year</quote>.</text></paragraph><paragraph id="id809C7B702B654CE2B4B55404DB671CB5"><enum>(2)</enum><text>Subsection (b)(4) shall be applied—</text><subparagraph id="id46179BB3EEC147CE8ABD1222091A3FDD"><enum>(A)</enum><text>in subparagraph (A)(ii), by substituting <quote>October 1, 2023</quote> for <quote>February 28 following the selected drug publication date with respect to such selected drug</quote>; and</text></subparagraph><subparagraph id="idEBFE7EA5E455490B85D51B0B8EA51CCA"><enum>(B)</enum><text>in subparagraph (B), by substituting <quote>August 1, 2024</quote> for <quote>November 1 of the year that begins 2 years prior to the initial price applicability year</quote>.</text></subparagraph></paragraph><paragraph id="idD031ECDFF22346D681D348778BB587C4"><enum>(3)</enum><text>Section 1192 shall be applied—</text><subparagraph id="id278657568DF74F898A2B4CD423AD0A4E"><enum>(A)</enum><text>in subsection (b)(1)(A), by substituting <quote>during the period beginning on June 1, 2022, and ending on May 31, 2023</quote> for <quote>during the most recent period of 12 months prior to the selected drug publication date (but ending not later than October 31 of the year prior to the year of such drug publication date), with respect to such year, for which data are available</quote>; and</text></subparagraph><subparagraph id="id0CC16D10C59146C78FED1E6B0CE4AA80"><enum>(B)</enum><text>in subsection (d)(1)(A), by substituting <quote>during the period beginning on June 1, 2022, and ending on May 31, 2023</quote> for <quote>during the most recent period for which data are available of at least 12 months prior to the selected drug publication date (but ending no later than October 31 of the year prior to the year of such drug publication date), with respect to such year</quote>.</text></subparagraph></paragraph><paragraph id="idB5F092C83CF44AEEAC94831F55F625E8"><enum>(4)</enum><text>Section 1193(a) shall be applied by substituting <quote>October 1, 2023</quote> for <quote>February 28 following the selected drug publication date with respect to such selected drug</quote>.</text></paragraph><paragraph id="id7E3455C8DCF143D6AA854CF02BA085F4"><enum>(5)</enum><text>Section 1194(b)(2) shall be applied—</text><subparagraph id="id266152217BC94C7B9BF830FCE8F657B6"><enum>(A)</enum><text>in subparagraph (A), by substituting <quote>October 2, 2023</quote> for <quote>March 1 of the year of the selected drug publication date, with respect to the selected drug</quote>;</text></subparagraph><subparagraph id="id782D91C668024153B4AAECFB68252CB9"><enum>(B)</enum><text>in subparagraph (B), by substituting <quote>February 1, 2024</quote> for <quote>the June 1 following the selected drug publication date</quote>; and</text></subparagraph><subparagraph id="id65B24BBACB4C4C29A8D9AF6A2D247378"><enum>(C)</enum><text>in subparagraph (E), by substituting <quote>August 1, 2024</quote> for <quote>the first day of November following the selected drug publication date, with respect to the initial price applicability year </quote>.</text></subparagraph></paragraph><paragraph id="idC925D7A9614349B586EEBFE3A7D1FA80"><enum>(6)</enum><text>Section 1195(a)(1) shall be applied by substituting <quote>September 1, 2024</quote> for <quote>November 30 of the year that is 2 years prior to such initial price applicability year</quote>.</text></paragraph></subsection></section><section id="H3A1FEECF53E3473FB73F42D04F1C7F63" commented="no"><enum>1192.</enum><header>Selection of negotiation-eligible drugs as selected drugs</header><subsection id="H8BE61B4439CE41558A3911020A4F8CDF" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than the selected drug publication date with respect to an initial price applicability year, in accordance with subsection (b), the Secretary shall select and publish a list of—</text><paragraph commented="no" id="H512646FAACED4B4EB0C38553D7649F17"><enum>(1)</enum><text display-inline="yes-display-inline">with respect to the initial price applicability year 2026, 10 negotiation-eligible drugs described in subparagraph (A) of subsection (d)(1), but not subparagraph (B) of such subsection, with respect to such year (or, all (if such number is less than 10) such negotiation-eligible drugs with respect to such year);</text></paragraph><paragraph commented="no" id="idF408F984F06245F782F079F84BD03FFD"><enum>(2)</enum><text>with respect to the initial price applicability year 2027, 15 negotiation-eligible drugs described in subparagraph (A) of subsection (d)(1), but not subparagraph (B) of such subsection, with respect to such year (or, all (if such number is less than 15) such negotiation-eligible drugs with respect to such year); </text></paragraph><paragraph commented="no" id="id4CFB8171BAB34E838C21224EFBE78242"><enum>(3)</enum><text display-inline="yes-display-inline">with respect to the initial price applicability year 2028, 15 negotiation-eligible drugs described in subparagraph (A) or (B) of subsection (d)(1) with respect to such year (or, all (if such number is less than 15) such negotiation-eligible drugs with respect to such year); and </text></paragraph><paragraph commented="no" id="id4773C777A4A14DBCA8510D2D0D0E57FE"><enum>(4)</enum><text display-inline="yes-display-inline">with respect to the initial price applicability year 2029 or a subsequent year, 20 negotiation-eligible drugs described in subparagraph (A) or (B) of subsection (d)(1), with respect to such year (or, all (if such number is less than 20) such negotiation-eligible drugs with respect to such year).</text></paragraph><continuation-text continuation-text-level="subsection" commented="no">Subject to subsection (c)(2) and section 1194(f)(5), each drug published on the list pursuant to the previous sentence shall be subject to the negotiation process under section 1194 for the negotiation period with respect to such initial price applicability year (and the renegotiation process under such section as applicable for any subsequent year during the applicable price applicability period). </continuation-text></subsection><subsection id="H8D186D40C3F94D0FB1E80184D4038C34" commented="no"><enum>(b)</enum><header>Selection of drugs</header><paragraph id="H0E106C2E7391447CBA9D2D8E21825858" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In carrying out subsection (a), subject to paragraph (2), the Secretary shall, with respect to an initial price applicability year, do the following:</text><subparagraph id="H6E450FC6DF4B4753B143C7C5279D2672" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">Rank negotiation-eligible drugs described in subsection (d)(1) according to the total expenditures for such drugs under parts B and D of title XVIII, as determined by the Secretary, during the most recent period of 12 months prior to the selected drug publication date (but ending not later than October 31 of the year prior to the year of such drug publication date), with respect to such year, for which data are available, with the negotiation-eligible drugs with the highest total expenditures being ranked the highest.</text></subparagraph><subparagraph id="HA8B5C191B6B14223801CACA6D075C5C5" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">Select from such ranked drugs with respect to such year the negotiation-eligible drugs with the highest such rankings.</text></subparagraph></paragraph><paragraph id="HEFFAE0075A6A43EB870B2AC6727699AE" commented="no"><enum>(2)</enum><header>High spend part D drugs for 2026 and 2027</header><text display-inline="yes-display-inline">With respect to the initial price applicability year 2026 and with respect to the initial price applicability year 2027, the Secretary shall apply paragraph (1) as if the reference to <quote>negotiation-eligible drugs described in subsection (d)(1)</quote> were a reference to <quote>negotiation-eligible drugs described in subsection (d)(1)(A)</quote> and as if the reference to <quote>total expenditures for such drugs under parts B and D of title XVIII</quote> were a reference to <quote>total expenditures for such drugs under part D of title XVIII</quote>.</text></paragraph></subsection><subsection id="H7FECD8C6C23E4CA1B1704B9EDC35BB2D"><enum>(c)</enum><header>Selected drug</header><paragraph id="H3E3A90330E2F43F09EE7A7DD30848400"><enum>(1)</enum><header>In general</header><text>For purposes of this part, in accordance with subsection (e)(2) and subject to paragraph (2), each negotiation-eligible drug included on the list published under subsection (a) with respect to an initial price applicability year shall be referred to as a <quote>selected drug</quote> with respect to such year and each subsequent year beginning before the first year that begins at least 9 months after the date on which the Secretary determines at least one drug or biological product—</text><subparagraph id="HDE750916893B4E1C8AE75F8FCB83E4B2" commented="no"><enum>(A)</enum><text>is approved or licensed (as applicable)—</text><clause id="HA82809043B2F44CCB081FBB1A31E87D9" commented="no"><enum>(i)</enum><text>under section 505(j) of the Federal Food, Drug, and Cosmetic Act using such drug as the listed drug; or</text></clause><clause id="H51EA7A0067ED4C1A9A1DC2888F1396E8" commented="no"><enum>(ii)</enum><text>under section 351(k) of the Public Health Service Act using such drug as the reference product; and</text></clause></subparagraph><subparagraph id="H375AD99D60744929910AAD6B88273055" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">is marketed pursuant to such approval or licensure.</text></subparagraph></paragraph><paragraph id="H575D08D2774C4470A487EFDEC17E1985"><enum>(2)</enum><header>Clarification</header><text display-inline="yes-display-inline">A negotiation-eligible drug—</text><subparagraph id="H444352914C424E28BE9ECD346EEC7FD0"><enum>(A)</enum><text>that is included on the list published under subsection (a) with respect to an initial price applicability year; and</text></subparagraph><subparagraph id="HB1BCA18357F24998B1C8ABC0BC898050"><enum>(B)</enum><text>for which the Secretary makes a determination described in paragraph (1) before or during the negotiation period with respect to such initial price applicability year;</text></subparagraph><continuation-text continuation-text-level="paragraph">shall not be subject to the negotiation process under section 1194 with respect to such negotiation period and shall continue to be considered a selected drug under this part with respect to the number of negotiation-eligible drugs published on the list under subsection (a) with respect to such initial price applicability year. </continuation-text></paragraph></subsection><subsection id="H7D95458D944D4050B3BCF2CC1E1C6D57" commented="no"><enum>(d)</enum><header>Negotiation-Eligible drug</header><paragraph id="H59550B20AA7E43F7BA34DDBE1498C110" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this part, subject to paragraph (2), the term <term>negotiation-eligible drug</term> means, with respect to the selected drug publication date with respect to an initial price applicability year, a qualifying single source drug, as defined in subsection (e), that is described in either of the following subparagraphs (or, with respect to the initial price applicability year 2026 or 2027, that is described in subparagraph (A)): </text><subparagraph id="HDC40E8611BE44E068E5B19862B4CB10E" commented="no"><enum>(A)</enum><header>Part D high spend drugs</header><text display-inline="yes-display-inline">The qualifying single source drug is, determined in accordance with subsection (e)(2), among the 50 qualifying single source drugs with the highest total expenditures under part D of title XVIII, as determined by the Secretary in accordance with paragraph (3), during the most recent 12-month period for which data are available prior to such selected drug publication date (but ending no later than October 31 of the year prior to the year of such drug publication date).</text></subparagraph><subparagraph id="H5BCD5DF94D034CC5B28CA25942585C80" commented="no"><enum>(B)</enum><header>Part B high spend drugs</header><text display-inline="yes-display-inline">The qualifying single source drug is, determined in accordance with subsection (e)(2), among the 50 qualifying single source drugs with the highest total expenditures under part B of title XVIII, as determined by the Secretary in accordance with paragraph (3), during such most recent 12-month period, as described in subparagraph (A).</text></subparagraph></paragraph><paragraph commented="no" id="H894E6AF2D23E4C59AD4C43A294F56B80" display-inline="no-display-inline"><enum>(2)</enum><header>Exception for small biotech drugs</header><subparagraph id="HCCE48DB231D143A29E9E77A6A1A4F764" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Subject to subparagraph (C), the term <term>negotiation-eligible drug</term> shall not include, with respect to the initial price applicability years 2026, 2027, and 2028, a qualifying single source drug that meets either of the following:</text><clause id="H03D1CE31CA9D4A30B268C0B0228CED36" commented="no"><enum>(i)</enum><header>Part D drugs</header><text>The total expenditures for the qualifying single source drug under part D of title XVIII, as determined by the Secretary in accordance with paragraph (3)(B), during 2021—</text><subclause id="H50B902DE4B2F43E4A037CB9E25100FD6" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">are equal to or less than 1 percent of the total expenditures under such part D, as so determined, for all covered part D drugs (as defined in section 1860D–2(e)) during such year; and</text></subclause><subclause id="H99F59DF50E11403F81F4D5ABF010E00C" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">are equal to at least 80 percent of the total expenditures under such part D, as so determined, for all covered part D drugs for which the manufacturer of the drug has an agreement in effect under section 1860D–14A during such year.</text></subclause></clause><clause id="H9B35C48779DC4CAD9AB14C973F2DFD37" commented="no"><enum>(ii)</enum><header>Part B drugs</header><text display-inline="yes-display-inline">The total expenditures for the qualifying single source drug under part B of title XVIII, as determined by the Secretary in accordance with paragraph (3)(B), during 2021—</text><subclause id="H13A3415D737C412391EA6E548A14B5FA" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">are equal to or less than 1 percent of the total expenditures under such part B, as so determined, for all qualifying single source drugs for which payment may be made under such part B during such year; and</text></subclause><subclause id="H905A7A1A1F7243F2827AD198DAF6B748" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">are equal to at least 80 percent of the total expenditures under such part B, as so determined, for all qualifying single source drugs of the manufacturer for which payment may be made under such part B during such year. </text></subclause></clause></subparagraph><subparagraph id="HE88DD844E86D4DCF9DE53FB3CFF8086E" commented="no"><enum>(B)</enum><header>Clarifications relating to manufacturers</header><clause id="H40D4CE9BCB754BD88FC50FC65E4CC8D3"><enum>(i)</enum><header>Aggregation rule</header><text display-inline="yes-display-inline">All persons treated as a single employer under subsection (a) or (b) of <external-xref legal-doc="usc" parsable-cite="usc/26/52">section 52</external-xref> of the Internal Revenue Code of 1986 shall be treated as one manufacturer for purposes of this paragraph. </text></clause><clause id="H136F2D48E4484253B2C3A27B124EA18F"><enum>(ii)</enum><header>Limitation</header><text display-inline="yes-display-inline">A drug shall not be considered to be a qualifying single source drug described in clause (i) or (ii) of subparagraph (A) if the manufacturer of such drug is acquired after 2021 by another manufacturer that does not meet the definition of a specified manufacturer under section 1860D–14C(g)(4)(B)(ii), effective at the beginning of the plan year immediately following such acquisition or, in the case of an acquisition before 2025, effective January 1, 2025.</text></clause></subparagraph><subparagraph id="H7021E602A34B41F78D967CAF6E24682D" commented="no"><enum>(C)</enum><header>Drugs not included as small biotech drugs</header><text>A new formulation, such as an extended release formulation, of a qualifying single source drug shall not be considered a qualifying single source drug described in subparagraph (A).</text></subparagraph></paragraph><paragraph id="HB48F7311D1A84BAD90E1732CFB1C0A2A" commented="no"><enum>(3)</enum><header>Clarifications and determinations</header><subparagraph id="HEC0A205729B64256B855CFC8EFDC97E0" commented="no"><enum>(A)</enum><header>Previously selected drugs and small biotech drugs excluded</header><text>In applying subparagraphs (A) and (B) of paragraph (1), the Secretary shall not consider or count—</text><clause id="H52E5AFEEAD1F4F0680585659E4270C4F"><enum>(i)</enum><text>drugs that are already selected drugs; and</text></clause><clause id="HED1E7C2AD90643BEAB185E5DFC4C68D3"><enum>(ii)</enum><text>for initial price applicability years 2026, 2027, and 2028, qualifying single source drugs described in paragraph (2)(A).</text></clause></subparagraph><subparagraph id="HEC929693015545D88E0CBE3F9D779344" commented="no"><enum>(B)</enum><header>Use of data</header><text display-inline="yes-display-inline">In determining whether a qualifying single source drug satisfies any of the criteria described in paragraph (1) or (2), the Secretary shall use data that is aggregated across dosage forms and strengths of the drug, including new formulations of the drug, such as an extended release formulation, and not based on the specific formulation or package size or package type of the drug.</text></subparagraph></paragraph></subsection><subsection commented="no" id="HA266D22F6C5F4F44B87576916FFE6BAE"><enum>(e)</enum><header>Qualifying single source drug</header><paragraph id="HE3174FB54329460887446DF4991C6ABD" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this part, the term <term>qualifying single source drug</term> means, with respect to an initial price applicability year, subject to paragraphs (2) and (3), a covered part D drug (as defined in section 1860D–2(e)) that is described in any of the following or a drug or biological product for which payment may be made under part B of title XVIII that is described in any of the following:</text><subparagraph id="H7C3C637D62C2467B96546C0DF5539DBB" commented="no"><enum>(A)</enum><header>Drug products</header><text>A drug—</text><clause id="HF8D3CC2163204D6E95B243E36A326893"><enum>(i)</enum><text>that is approved under section 505(c) of the Federal Food, Drug, and Cosmetic Act and is marketed pursuant to such approval; </text></clause><clause id="H38F431D8A9E54109A6E33136E6CF3CCF"><enum>(ii)</enum><text display-inline="yes-display-inline">for which, as of the selected drug publication date with respect to such initial price applicability year, at least 7 years will have elapsed since the date of such approval; and</text></clause><clause id="HD15690CDF3794DC99A3BB9479F8E3BE5" commented="no"><enum>(iii)</enum><text>that is not the listed drug for any drug that is approved and marketed under section 505(j) of such Act.</text></clause></subparagraph><subparagraph id="H29A65909973943DEBC9FCAD9DBFB0821" commented="no"><enum>(B)</enum><header>Biological products</header><text>A biological product—</text><clause id="HB1DE51648C0846A4907E01C5E15F0832" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">that is licensed under section 351(a) of the Public Health Service Act and is marketed under section 351 of such Act;</text></clause><clause id="H37022FC2BA994CF487A985938784427A"><enum>(ii)</enum><text display-inline="yes-display-inline">for which, as of the selected drug publication date with respect to such initial price applicability year, at least 11 years will have elapsed since the date of such licensure; and</text></clause><clause id="HF9CC1F4412554555B3F30793BFA92442" commented="no"><enum>(iii)</enum><text display-inline="yes-display-inline">that is not the reference product for any biological product that is licensed and marketed under section 351(k) of such Act.</text></clause></subparagraph></paragraph><paragraph id="HE78313E6D1B64FA582BC84499117B8E9" commented="no"><enum>(2)</enum><header>Treatment of authorized generic drugs</header><subparagraph id="H66E138B3CA7A493C94408F6ECE279280" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of a qualifying single source drug described in subparagraph (A) or (B) of paragraph (1) that is the listed drug (as such term is used in section 505(j) of the Federal Food, Drug, and Cosmetic Act) or a product described in clause (ii) of subparagraph (B), with respect to an authorized generic drug, in applying the provisions of this part, such authorized generic drug and such listed drug or such product shall be treated as the same qualifying single source drug. </text></subparagraph><subparagraph id="HA87C9935F3214C7D8607E080A2F6B90D"><enum>(B)</enum><header>Authorized generic drug defined</header><text>For purposes of this paragraph, the term <quote>authorized generic drug</quote> means—</text><clause id="H071A686B76BB40E2821E42BEE4232C14"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of a drug, an authorized generic drug (as such term is defined in section 505(t)(3) of the Federal Food, Drug, and Cosmetic Act); and</text></clause><clause id="H258190CD68BA4330AA4018734E370C03"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of a biological product, a product that—</text><subclause id="H3449D6A09C904C8884FB4D06D051D55E"><enum>(I)</enum><text>has been licensed under section 351(a) of such Act; and</text></subclause><subclause id="H16E855369A80417EB8F4B787A1D05C3C"><enum>(II)</enum><text>is marketed, sold, or distributed directly or indirectly to retail class of trade under a different labeling, packaging (other than repackaging as the reference product in blister packs, unit doses, or similar packaging for use in institutions), product code, labeler code, trade name, or trade mark than the reference product.</text></subclause></clause></subparagraph></paragraph><paragraph id="HA3F97628891644E8846A620BCE42DD27" commented="no"><enum>(3)</enum><header>Exclusions</header><text>In this part, the term <term>qualifying single source drug</term> does not include any of the following:</text><subparagraph id="H4397DDD12CBF454F8773F7595CC0795D" commented="no"><enum>(A)</enum><header>Certain orphan drugs</header><text display-inline="yes-display-inline">A drug that is designated as a drug for only one rare disease or condition under section 526 of the Federal Food, Drug, and Cosmetic Act and for which the only approved indication (or indications) is for such disease or condition.</text></subparagraph><subparagraph id="H2244D1EAD586417893032B7AC2CEE03D"><enum>(B)</enum><header>Low spend Medicare drugs</header><text display-inline="yes-display-inline">A drug or biological product with respect to which the total expenditures under parts B and D of title XVIII, as determined by the Secretary in accordance with subsection (d)(3)(B)—</text><clause id="HCE4CF3545CEA44A98E3A2FFDA4A3BF49"><enum>(i)</enum><text display-inline="yes-display-inline">with respect to initial price applicability year 2026, is less than, during the period beginning on June 1, 2022, and ending on May 31, 2023, $200,000,000; </text></clause><clause id="id4B1C723021EB4784A3C5C07F7BF0AF80"><enum>(ii)</enum><text display-inline="yes-display-inline">with respect to initial price applicability year 2027, is less than, during the most recent 12-month period applicable under subparagraphs (A) and (B) of subsection (d)(1) for such year, the dollar amount specified in clause (i) increased by the annual percentage increase in the consumer price index for all urban consumers (all items; United States city average) for the period beginning on June 1, 2023, and ending on September 30, 2024; or</text></clause><clause id="H8B196CAE1E024050BC45E09C22B4CCF5"><enum>(iii)</enum><text display-inline="yes-display-inline">with respect to a subsequent initial price applicability year, is less than, during the most recent 12-month period applicable under subparagraphs (A) and (B) of subsection (d)(1) for such year, the dollar amount specified in this subparagraph for the previous initial price applicability year increased by the annual percentage increase in such consumer price index for the 12-month period ending on September 30 of the year prior to the year of the selected drug publication date with respect to such subsequent initial price applicability year. </text></clause></subparagraph><subparagraph id="id1fe03df969904be8b9a8e7b5b3ea3e14"><enum>(C)</enum><header>Plasma-derived products</header><text>A biological product that is derived from human whole blood or plasma. </text></subparagraph></paragraph></subsection></section><section id="HA24AC1CB0E77471D9BD996BE811318AF"><enum>1193.</enum><header>Manufacturer agreements</header><subsection id="H359C57E3FACE4D3E9BE8297D83269950"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of section 1191(a)(2), the Secretary shall enter into agreements with manufacturers of selected drugs with respect to a price applicability period, by not later than February 28 following the selected drug publication date with respect to such selected drug, under which—</text><paragraph id="H3D0E04F3A3774AE4A84E5E79D01EE538"><enum>(1)</enum><text>during the negotiation period for the initial price applicability year for the selected drug, the Secretary and the manufacturer, in accordance with section 1194, negotiate to determine (and, by not later than the last date of such period, agree to) a maximum fair price for such selected drug of the manufacturer in order for the manufacturer to provide access to such price—</text><subparagraph id="H877E3A4E4F2A438BAB3BEFDF984EB649"><enum>(A)</enum><text>to maximum fair price eligible individuals who with respect to such drug are described in subparagraph (A) of section 1191(c)(2) and are dispensed such drug (and to pharmacies, mail order services, and other dispensers, with respect to such maximum fair price eligible individuals who are dispensed such drugs) during, subject to paragraph (2), the price applicability period; and</text></subparagraph><subparagraph id="H77FAAB0A6EE84F56B48920F9B1E4C22E"><enum>(B)</enum><text display-inline="yes-display-inline">to hospitals, physicians, and other providers of services and suppliers with respect to maximum fair price eligible individuals who with respect to such drug are described in subparagraph (B) of such section and are furnished or administered such drug during, subject to paragraph (2), the price applicability period;</text></subparagraph></paragraph><paragraph id="H88BAF74F5C0642038AC1ECE1D3F123E1"><enum>(2)</enum><text display-inline="yes-display-inline">the Secretary and the manufacturer shall, in accordance with section 1194, renegotiate (and, by not later than the last date of the period of renegotiation, agree to) the maximum fair price for such drug, in order for the manufacturer to provide access to such maximum fair price (as so renegotiated)—</text><subparagraph id="H1F957C76534C4405B741AA491B09D5A4"><enum>(A)</enum><text display-inline="yes-display-inline">to maximum fair price eligible individuals who with respect to such drug are described in subparagraph (A) of section 1191(c)(2) and are dispensed such drug (and to pharmacies, mail order services, and other dispensers, with respect to such maximum fair price eligible individuals who are dispensed such drugs) during any year during the price applicability period (beginning after such renegotiation) with respect to such selected drug; and</text></subparagraph><subparagraph id="HB86E8229949A4A93ADA8B5824E2DCECA"><enum>(B)</enum><text display-inline="yes-display-inline">to hospitals, physicians, and other providers of services and suppliers with respect to maximum fair price eligible individuals who with respect to such drug are described in subparagraph (B) of such section and are furnished or administered such drug during any year described in subparagraph (A);</text></subparagraph></paragraph><paragraph id="H89DAFD98174C44BABBC6DE18DA5DD2AF"><enum>(3)</enum><text display-inline="yes-display-inline">subject to subsection (d), access to the maximum fair price (including as renegotiated pursuant to paragraph (2)), with respect to such a selected drug, shall be provided by the manufacturer to—</text><subparagraph id="HE0F8CABBF76C48EDBC0D6C56D14ABF83"><enum>(A)</enum><text>maximum fair price eligible individuals, who with respect to such drug are described in subparagraph (A) of section 1191(c)(2), at the pharmacy, mail order service, or other dispenser at the point-of-sale of such drug (and shall be provided by the manufacturer to the pharmacy, mail order service, or other dispenser, with respect to such maximum fair price eligible individuals who are dispensed such drugs), as described in paragraph (1)(A) or (2)(A), as applicable; and</text></subparagraph><subparagraph id="HAE1AD081BF434C4C8A7C3DBAB0610DBE"><enum>(B)</enum><text display-inline="yes-display-inline">hospitals, physicians, and other providers of services and suppliers with respect to maximum fair price eligible individuals who with respect to such drug are described in subparagraph (B) of such section and are furnished or administered such drug, as described in paragraph (1)(B) or (2)(B), as applicable;</text></subparagraph></paragraph><paragraph id="H383B1EDC3C9E4340B170AA87046CD63A"><enum>(4)</enum><text display-inline="yes-display-inline">the manufacturer submits to the Secretary, in a form and manner specified by the Secretary, for the negotiation period for the price applicability period (and, if applicable, before any period of renegotiation pursuant to section 1194(f)) with respect to such drug—</text><subparagraph id="H83D82DFE42A44B1B9A9630714CED7C4F" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">information on the non-Federal average manufacturer price (as defined in section 8126(h)(5) of title 38, United States Code) for the drug for the applicable year or period; and</text></subparagraph><subparagraph id="H91C59660B8F34D99B93C0E628EC538E1"><enum>(B)</enum><text>information that the Secretary requires to carry out the negotiation (or renegotiation process) under this part; and</text></subparagraph></paragraph><paragraph id="H24221FED472141F4A7DCA8A3F04EF6C0"><enum>(5)</enum><text display-inline="yes-display-inline">the manufacturer complies with requirements determined by the Secretary to be necessary for purposes of administering the program and monitoring compliance with the program.</text></paragraph></subsection><subsection id="H4B36CDFBCDB34198964229D65D2DF3CF"><enum>(b)</enum><header>Agreement in effect until drug is no longer a selected drug</header><text display-inline="yes-display-inline">An agreement entered into under this section shall be effective, with respect to a selected drug, until such drug is no longer considered a selected drug under section 1192(c).</text></subsection><subsection id="HF6F1DF89D1744DE8B8C6BB37BCBE4CEC"><enum>(c)</enum><header>Confidentiality of information</header><text>Information submitted to the Secretary under this part by a manufacturer of a selected drug that is proprietary information of such manufacturer (as determined by the Secretary) shall be used only by the Secretary or disclosed to and used by the Comptroller General of the United States for purposes of carrying out this part.</text></subsection><subsection id="id01A110A590694A8A9F7C9AAAA691FBB7"><enum>(d)</enum><header>Nonduplication with 340B ceiling price</header><text>Under an agreement entered into under this section, the manufacturer of a selected drug—</text><paragraph id="idF3D7474BD92F4233B73FC620D2F33FB4"><enum>(1)</enum><text>shall not be required to provide access to the maximum fair price under subsection (a)(3), with respect to such selected drug and maximum fair price eligible individuals who are eligible to be furnished, administered, or dispensed such selected drug at a covered entity described in section 340B(a)(4) of the Public Health Service Act, to such covered entity if such selected drug is subject to an agreement described in section 340B(a)(1) of such Act and the ceiling price (defined in section 340B(a)(1) of such Act) is lower than the maximum fair price for such selected drug; and</text></paragraph><paragraph id="idCE17EA7648BE41C6BDB8951548F7594E"><enum>(2)</enum><text>shall be required to provide access to the maximum fair price to such covered entity with respect to maximum fair price eligible individuals who are eligible to be furnished, administered, or dispensed such selected drug at such entity at such ceiling price in a nonduplicated amount to the ceiling price if such maximum fair price is below the ceiling price for such selected drug. </text></paragraph></subsection></section><section id="HB0128C254FE240D4B141EECF4B860EFF"><enum>1194.</enum><header>Negotiation and renegotiation process</header><subsection id="HBBE7465D1DCA49648CDD4FC6FA0164F3"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this part, under an agreement under section 1193 between the Secretary and a manufacturer of a selected drug (or selected drugs), with respect to the period for which such agreement is in effect and in accordance with subsections (b), (c), and (d), the Secretary and the manufacturer—</text><paragraph id="HB856A294BB9144A0A8EF3129F7400AEC"><enum>(1)</enum><text>shall during the negotiation period with respect to such drug, in accordance with this section, negotiate a maximum fair price for such drug for the purpose described in section 1193(a)(1); and</text></paragraph><paragraph id="HC0E4D701FF864FA2916A590C30987C20"><enum>(2)</enum><text display-inline="yes-display-inline">renegotiate, in accordance with the process specified pursuant to subsection (f), such maximum fair price for such drug for the purpose described in section 1193(a)(2) if such drug is a renegotiation-eligible drug under such subsection. </text></paragraph></subsection><subsection id="H3674301DB4204EBA9C9B79559D3B9AA3"><enum>(b)</enum><header>Negotiation process requirements</header><paragraph id="H1338A0E6DBF74EFA9939B12C5111066A"><enum>(1)</enum><header>Methodology and process</header><text display-inline="yes-display-inline">The Secretary shall develop and use a consistent methodology and process, in accordance with paragraph (2), for negotiations under subsection (a) that aims to achieve the lowest maximum fair price for each selected drug.</text></paragraph><paragraph id="HD7FB9FDA1108494CBA999AF000EB4BD9"><enum>(2)</enum><header>Specific elements of negotiation process</header><text>As part of the negotiation process under this section, with respect to a selected drug and the negotiation period with respect to the initial price applicability year with respect to such drug, the following shall apply: </text><subparagraph id="HA41C175FB76F4E5F88DEE9A108C2C28B"><enum>(A)</enum><header>Submission of information</header><text display-inline="yes-display-inline">Not later than March 1 of the year of the selected drug publication date, with respect to the selected drug, the manufacturer of the drug shall submit to the Secretary, in accordance with section 1193(a)(4), the information described in such section. </text></subparagraph><subparagraph id="HDD4EADF61E4746EAB096E4A83C72A980"><enum>(B)</enum><header>Initial offer by Secretary</header><text>Not later than the June 1 following the selected drug publication date, the Secretary shall provide the manufacturer of the selected drug with a written initial offer that contains the Secretary’s proposal for the maximum fair price of the drug and a concise justification based on the factors described in section 1194(e) that were used in developing such offer.</text></subparagraph><subparagraph id="HAE5D623795964498BEC4A8A38275B607"><enum>(C)</enum><header>Response to initial offer</header><clause id="H7F884ED5862E4FFAB73AA4C00F4ECA16"><enum>(i)</enum><header>In general</header><text>Not later than 30 days after the date of receipt of an initial offer under subparagraph (B), the manufacturer shall either accept such offer or propose a counteroffer to such offer.</text></clause><clause id="HC82BDF5BC0294F4BB4CA4AE2A7DE0FAB" commented="no"><enum>(ii)</enum><header>Counteroffer requirements</header><text>If a manufacturer proposes a counteroffer, such counteroffer—</text><subclause id="HFE0B52F7A544458E9A032E7D07ABD6E0" commented="no"><enum>(I)</enum><text>shall be in writing; and</text></subclause><subclause id="H03EDE21244B04D7CA7FA0F9F0F739877" commented="no"><enum>(II)</enum><text>shall be justified based on the factors described in subsection (e).</text></subclause></clause></subparagraph><subparagraph id="H6CF26A6820AC4B6BB83551D96EDA0EFC"><enum>(D)</enum><header>Response to counteroffer</header><text>After receiving a counteroffer under subparagraph (C), the Secretary shall respond in writing to such counteroffer.</text></subparagraph><subparagraph id="H26F8A97F9F6C471AB95117B126110DCF"><enum>(E)</enum><header>Deadline</header><text display-inline="yes-display-inline">All negotiations between the Secretary and the manufacturer of the selected drug shall end prior to the first day of November following the selected drug publication date, with respect to the initial price applicability year.</text></subparagraph><subparagraph id="HA972DEC111E947AC8DC17C8D87844231"><enum>(F)</enum><header>Limitations on offer amount</header><text display-inline="yes-display-inline">In negotiating the maximum fair price of a selected drug, with respect to the initial price applicability year for the selected drug, and, as applicable, in renegotiating the maximum fair price for such drug, with respect to a subsequent year during the price applicability period for such drug, the Secretary shall not offer (or agree to a counteroffer for) a maximum fair price for the selected drug that—</text><clause id="H381FB981D8704F3FA864F7A331423AFB"><enum>(i)</enum><text>exceeds the ceiling determined under subsection (c) for the selected drug and year; or</text></clause><clause id="H22E9A2A56D6C4B66A87B2C19B1BA9FD7"><enum>(ii)</enum><text display-inline="yes-display-inline">as applicable, is less than the floor determined under subsection (d) for the selected drug and year.</text></clause></subparagraph></paragraph></subsection><subsection id="HB9E08E6E65E94F0B96A5A7A6755E37A8"><enum>(c)</enum><header>Ceiling for maximum fair price</header><paragraph id="idFBF804AA69B34D8EA5E55559A22F53F1"><enum>(1)</enum><header>General ceiling</header><subparagraph id="idA41196BB66454AD6BBA50BDA40FD5EA3"><enum>(A)</enum><header>In general</header><text>The maximum fair price negotiated under this section for a selected drug, with respect to the first initial price applicability year of the price applicability period with respect to such drug, shall not exceed the lower of the amount under subparagraph (B) or the amount under subparagraph (C).</text></subparagraph><subparagraph id="id7CD11F30943943DC8B1E00431B5B2533"><enum>(B)</enum><header>Subparagraph <enum-in-header>(B)</enum-in-header> amount</header><text>An amount equal to the following:</text><clause id="idC304ED7DF65D492F83837D04F70D56F5"><enum>(i)</enum><header>Covered part D drug</header><text>In the case of a covered part D drug (as defined in section 1860D–2(e)), the sum of the plan specific enrollment weighted amounts for each prescription drug plan or MA–PD plan (as determined under paragraph (2)).</text></clause><clause id="id0D4DAD01EB0B4968AF7EB3BD0FCD996B"><enum>(ii)</enum><header>Part B drug or biological</header><text>In the case of a drug or biological product for which payment may be made under part B of title XVIII, the payment amount under section 1847A(b)(4) for the drug or biological product for the year prior to the year of the selected drug publication date with respect to the initial price applicability year for the drug or biological product.</text></clause></subparagraph><subparagraph id="idE2D0D67A806A4F5AA8AD1975F632E547"><enum>(C)</enum><header>Subparagraph <enum-in-header>(C)</enum-in-header> amount</header><text>An amount equal to the applicable percent described in paragraph (3), with respect to such drug, of the following:</text><clause id="idBC380ED60096449E9E87F08C376DF252"><enum>(i)</enum><header>Initial price applicability year 2026</header><text>In the case of a selected drug with respect to which such initial price applicability year is 2026, the average non-Federal average manufacturer price for such drug for 2021 (or, in the case that there is not an average non-Federal average manufacturer price available for such drug for 2021, for the first full year following the market entry for such drug), increased by the percentage increase in the consumer price index for all urban consumers (all items; United States city average) from September 2021 (or December of such first full year following the market entry), as applicable, to September of the year prior to the year of the selected drug publication date with respect to such initial price applicability year. </text></clause><clause id="idA294206F803840158707DC7864653C79"><enum>(ii)</enum><header>Initial price applicability year 2027 and subsequent years</header><text>In the case of a selected drug with respect to which such initial price applicability year is 2027 or a subsequent year, the lower of—</text><subclause id="id9437D17115EE417B80CD6C55CEF80B19"><enum>(I)</enum><text>the average non-Federal average manufacturer price for such drug for 2021 (or, in the case that there is not an average non-Federal average manufacturer price available for such drug for 2021, for the first full year following the market entry for such drug), increased by the percentage increase in the consumer price index for all urban consumers (all items; United States city average) from September 2021 (or December of such first full year following the market entry), as applicable, to September of the year prior to the year of the selected drug publication date with respect to such initial price applicability year; or</text></subclause><subclause id="idD39AEF4CDBA0439AA982CD67D23C8B83"><enum>(II)</enum><text>the average non-Federal average manufacturer price for such drug for the year prior to the selected drug publication date with respect to such initial price applicability year. </text></subclause></clause></subparagraph></paragraph><paragraph id="id23D7A7AA8E5F4E3BA0CAB6D69B9A5D25"><enum>(2)</enum><header>Plan specific enrollment weighted amount</header><text>For purposes of paragraph (1)(B)(i), the plan specific enrollment weighted amount for a prescription drug plan or an MA–PD plan with respect to a covered Part D drug is an amount equal to the product of— </text><subparagraph id="idF80A76C4B5E244C0A4880BDF822511A3" commented="no"><enum>(A)</enum><text>the negotiated price of the drug under such plan under part D of title XVIII, net of all price concessions received by such plan or pharmacy benefit managers on behalf of such plan, for the most recent year for which data is available; and </text></subparagraph><subparagraph id="idD6F448FE460E44DCAF160B9945DDDFCE"><enum>(B)</enum><text>a fraction—</text><clause id="id756EB8A04CCD4D7382F7F7738619F3C1"><enum>(i)</enum><text>the numerator of which is the total number of individuals enrolled in such plan in such year; and</text></clause><clause id="idCB1C758A49D5468D87520FAD9A033646"><enum>(ii)</enum><text> the denominator of which is the total number of individuals enrolled in a prescription drug plan or an MA–PD plan in such year. </text></clause></subparagraph></paragraph><paragraph id="H2DE73F0FCA3C48AEA317C9DBBBE6E0E1"><enum>(3)</enum><header>Applicable percent described</header><text>For purposes of this subsection, the applicable percent described in this paragraph is the following:</text><subparagraph id="HEB027F339430405186661CA45BE6C9F9"><enum>(A)</enum><header>Short-monopoly drugs and vaccines</header><text>With respect to a selected drug (other than an extended-monopoly drug and a long-monopoly drug), 75 percent.</text></subparagraph><subparagraph id="H35D2EE9E02374326ABB8BAC68ECE98EC"><enum>(B)</enum><header>Extended-monopoly drugs</header><text>With respect to an extended-monopoly drug, 65 percent.</text></subparagraph><subparagraph id="HBB289B835C6145DB9136ABF5940EF944"><enum>(C)</enum><header>Long-monopoly drugs</header><text>With respect to a long-monopoly drug, 40 percent.</text></subparagraph></paragraph><paragraph id="H0CD8D750632E4B27AD60EB44D2C8767F" commented="no"><enum>(4)</enum><header>Extended-monopoly drug defined</header><subparagraph commented="no" id="H4A68C5D1B82347E2808470C2BE8F1670"><enum>(A)</enum><header>In general</header><text>In this part, subject to subparagraph (B), the term <term>extended-monopoly drug</term> means, with respect to an initial price applicability year, a selected drug for which at least 12 years, but fewer than 16 years, have elapsed since the date of approval of such drug under section 505(c) of the Federal Food, Drug, and Cosmetic Act or since the date of licensure of such drug under section 351(a) of the Public Health Service Act, as applicable. </text></subparagraph><subparagraph commented="no" id="HABBFDC3DC7864B8D8FBF11D4E18A1575"><enum>(B)</enum><header>Exclusions</header><text>The term <term>extended-monopoly drug</term> shall not include any of the following:</text><clause commented="no" id="H0E86915D708B45EF917BB479DD44C2A1"><enum>(i)</enum><text>A vaccine that is licensed under section 351 of the Public Health Service Act and marketed pursuant to such section.</text></clause><clause commented="no" id="H77563050BAA542E8B26E3F9765C58A8B"><enum>(ii)</enum><text>A selected drug for which a manufacturer had an agreement under this part with the Secretary with respect to an initial price applicability year that is before 2030.</text></clause></subparagraph><subparagraph commented="no" id="H13C39EBC23134B4C83651943CD1F60B4"><enum>(C)</enum><header>Clarification</header><text>Nothing in subparagraph (B)(ii) shall limit the transition of a selected drug described in paragraph (3)(A) to a long-monopoly drug if the selected drug meets the definition of a long-monopoly drug.</text></subparagraph></paragraph><paragraph id="H3EB0364E4928427BA5EA073A920CE6DF" commented="no"><enum>(5)</enum><header>Long-monopoly drug defined</header><subparagraph commented="no" id="HE43F1BE562B54288B1312E3BC83A339B"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In this part, subject to subparagraph (B), the term <term>long-monopoly drug</term> means, with respect to an initial price applicability year, a selected drug for which at least 16 years have elapsed since the date of approval of such drug under section 505(c) of the Federal Food, Drug, and Cosmetic Act or since the date of licensure of such drug under section 351(a) of the Public Health Service Act, as applicable.</text></subparagraph><subparagraph commented="no" id="HA6209C375C6548B094F437B7F988C1B3"><enum>(B)</enum><header>Exclusion</header><text>The term <term>long-monopoly drug</term> shall not include a vaccine that is licensed under section 351 of the Public Health Service Act and marketed pursuant to such section. </text></subparagraph></paragraph><paragraph id="H45A07C9B678C4DBFB6EFAA8CCC7E0CF6"><enum>(6)</enum><header>Average non-Federal average manufacturer price</header><text display-inline="yes-display-inline">In this part, the term <term>average non-Federal average manufacturer price</term> means the average of the non-Federal average manufacturer price (as defined in section 8126(h)(5) of title 38, United States Code) for the 4 calendar quarters of the year involved.</text></paragraph></subsection><subsection id="HAFE0B5DC927742479DFF0D860CAF2B29" commented="no"><enum>(d)</enum><header>Temporary floor for small biotech drugs</header><text display-inline="yes-display-inline">In the case of a selected drug that is a qualifying single source drug described in section 1192(d)(2) and with respect to which the first initial price applicability year of the price applicability period with respect to such drug is 2029 or 2030, the maximum fair price negotiated under this section for such drug for such initial price applicability year may not be less than 66 percent of the average non-Federal average manufacturer price for such drug (as defined in subsection (c)(6)) for 2021 (or, in the case that there is not an average non-Federal average manufacturer price available for such drug for 2021, for the first full year following the market entry for such drug), increased by the percentage increase in the consumer price index for all urban consumers (all items; United States city average) from September 2021 (or December of such first full year following the market entry), as applicable, to September of the year prior to the selected drug publication date with respect to the initial price applicability year. </text></subsection><subsection id="H24B5CDE7750C486DA7EC8EE550FC013C"><enum>(e)</enum><header>Factors</header><text>For purposes of negotiating the maximum fair price of a selected drug under this part with the manufacturer of the drug, the Secretary shall consider the following factors, as applicable to the drug, as the basis for determining the offers and counteroffers under subsection (b) for the drug:</text><paragraph id="H34620A85484E4A988418BF257AAE821D"><enum>(1)</enum><header>Manufacturer-specific data</header><text display-inline="yes-display-inline">The following data, with respect to such selected drug, as submitted by the manufacturer:</text><subparagraph id="H8C625804D68A436DA2FF156D193EEA14"><enum>(A)</enum><text display-inline="yes-display-inline">Research and development costs of the manufacturer for the drug and the extent to which the manufacturer has recouped research and development costs.</text></subparagraph><subparagraph id="H87938E538510457F9EE03A9FBB9E804A"><enum>(B)</enum><text>Current unit costs of production and distribution of the drug.</text></subparagraph><subparagraph id="H1D500A5652BF456EB93FA4B0831E2938"><enum>(C)</enum><text>Prior Federal financial support for novel therapeutic discovery and development with respect to the drug.</text></subparagraph><subparagraph id="H214BC1E6C1C44F52A56A3CD9E4F3FB7B"><enum>(D)</enum><text>Data on pending and approved patent applications, exclusivities recognized by the Food and Drug Administration, and applications and approvals under section 505(c) of the Federal Food, Drug, and Cosmetic Act or section 351(a) of the Public Health Service Act for the drug. </text></subparagraph><subparagraph id="HA1DF915A9B6D4C14AD0C6D6E7CD289FD" commented="no"><enum>(E)</enum><text>Market data and revenue and sales volume data for the drug in the United States.</text></subparagraph></paragraph><paragraph id="H44C9880462F843E8AE63566C815E607F"><enum>(2)</enum><header>Evidence about alternative treatments</header><text>The following evidence, as available, with respect to such selected drug and therapeutic alternatives to such drug:</text><subparagraph id="H4BBB892DE3AA424FA70279FC002ED99A" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">The extent to which such drug represents a therapeutic advance as compared to existing therapeutic alternatives and the costs of such existing therapeutic alternatives.</text></subparagraph><subparagraph id="HA827FF2D676E411AA2F007A0DCBBE610" commented="no"><enum>(B)</enum><text>Prescribing information approved by the Food and Drug Administration for such drug and therapeutic alternatives to such drug. </text></subparagraph><subparagraph id="H3811EDCC6ECB4FD0AC2A000E02A90C4E"><enum>(C)</enum><text display-inline="yes-display-inline">Comparative effectiveness of such drug and therapeutic alternatives to such drug, taking into consideration the effects of such drug and therapeutic alternatives to such drug on specific populations, such as individuals with disabilities, the elderly, the terminally ill, children, and other patient populations.</text></subparagraph><subparagraph id="H6E3F6B18E6034AC3A9A3A4EB51554913" commented="no"><enum>(D)</enum><text display-inline="yes-display-inline">The extent to which such drug and therapeutic alternatives to such drug address unmet medical needs for a condition for which treatment or diagnosis is not addressed adequately by available therapy. </text></subparagraph><continuation-text continuation-text-level="paragraph">In using evidence described in subparagraph (C), the Secretary shall not use evidence from comparative clinical effectiveness research in a manner that treats extending the life of an elderly, disabled, or terminally ill individual as of lower value than extending the life of an individual who is younger, nondisabled, or not terminally ill. </continuation-text></paragraph></subsection><subsection id="H82993064DB22428C85C9A506A0D922AD" commented="no"><enum>(f)</enum><header>Renegotiation process</header><paragraph id="HD41A59FD47DC47CAB3FD9C05DBAA54B1" commented="no"><enum>(1)</enum><header>In general</header><text>In the case of a renegotiation-eligible drug (as defined in paragraph (2)) that is selected under paragraph (3), the Secretary shall provide for a process of renegotiation (for years (beginning with 2028) during the price applicability period, with respect to such drug) of the maximum fair price for such drug consistent with paragraph (4).</text></paragraph><paragraph id="HA4E9B7FD856B4CA0AD21885BA21C48E2" commented="no"><enum>(2)</enum><header>Renegotiation-eligible drug defined</header><text>In this section, the term <term>renegotiation-eligible drug</term> means a selected drug that is any of the following: </text><subparagraph id="H299D6987378C43ABA139FCAB45ECAE03" commented="no"><enum>(A)</enum><header>Addition of new indication</header><text>A selected drug for which a new indication is added to the drug.</text></subparagraph><subparagraph id="H27E00C5FE30744558F950EDC11584F83" commented="no"><enum>(B)</enum><header>Change of status to an extended-monopoly drug</header><text>A selected drug that—</text><clause commented="no" id="H76244A9054EE4FA8AF29284B0A7EF8EF"><enum>(i)</enum><text>is not an extended-monopoly or a long-monopoly drug; and</text></clause><clause commented="no" id="H41E4F19C6D584634A57F773C5D79358F"><enum>(ii)</enum><text>for which there is a change in status to that of an extended-monopoly drug. </text></clause></subparagraph><subparagraph id="H88EC1570794A47B082AB7E156B844943" commented="no"><enum>(C)</enum><header>Change of status to a long-monopoly drug</header><text>A selected drug that—</text><clause id="HCBDDB86DF38149DAA9726BEB81DD4843"><enum>(i)</enum><text>is not a long-monopoly drug; and</text></clause><clause id="H876B5FCA8CD2434DB3411BCA5C63CB69"><enum>(ii)</enum><text>for which there is a change in status to that of a long-monopoly drug.</text></clause></subparagraph><subparagraph id="H98691B3B75104C20AE2A700F3395736D"><enum>(D)</enum><header>Material changes</header><text display-inline="yes-display-inline">A selected drug for which the Secretary determines there has been a material change of any of the factors described in paragraph (1) or (2) of subsection (e).</text></subparagraph></paragraph><paragraph id="HE5733B2A639C459DB83B9D382C170106" commented="no"><enum>(3)</enum><header>Selection of drugs for renegotiation</header><text>For each year (beginning with 2028), the Secretary shall select among renegotiation-eligible drugs for renegotiation as follows: </text><subparagraph id="H6B19C292CA46432F916A041CC4C2E3A8"><enum>(A)</enum><header>All extended-monopoly negotiation-eligible drugs</header><text display-inline="yes-display-inline">The Secretary shall select all renegotiation-eligible drugs described in paragraph (2)(B).</text></subparagraph><subparagraph id="HF496628A156C441284493916C29B2425" commented="no"><enum>(B)</enum><header>All long-monopoly negotiation-eligible drugs</header><text>The Secretary shall select all renegotiation-eligible drugs described in paragraph (2)(C).</text></subparagraph><subparagraph id="H9CB94167D70A4301AAEF7734C0A08707" commented="no"><enum>(C)</enum><header>Remaining drugs</header><text display-inline="yes-display-inline">Among the remaining renegotiation-eligible drugs described in subparagraphs (A) and (D) of paragraph (2), the Secretary shall select renegotiation-eligible drugs for which the Secretary expects renegotiation is likely to result in a significant change in the maximum fair price otherwise negotiated. </text></subparagraph></paragraph><paragraph id="H186E94A65BE9426A9C9382D34560A43C" commented="no"><enum>(4)</enum><header>Renegotiation process</header><subparagraph commented="no" id="idADCB29D7B6884FEDBE85B5DEEF09BA00"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary shall specify the process for renegotiation of maximum fair prices with the manufacturer of a renegotiation-eligible drug selected for renegotiation under this subsection.</text></subparagraph><subparagraph commented="no" id="idD28B25B8B8214807A314196E42D7A71F"><enum>(B)</enum><header>Consistent with negotiation process</header><text display-inline="yes-display-inline">The process specified under subparagraph (A) shall, to the extent practicable, be consistent with the methodology and process established under subsection (b) and in accordance with subsections (c), (d), and (e), and for purposes of applying subsections (c)(1)(A) and (d), the reference to the first initial price applicability year of the price applicability period with respect to such drug shall be treated as the first initial price applicability year of such period for which the maximum fair price established pursuant to such renegotiation applies, including for applying subsection (c)(3)(B) in the case of renegotiation-eligible drugs described in paragraph (3)(A) of this subsection and subsection (c)(3)(C) in the case of renegotiation-eligible drugs described in paragraph (3)(B) of this subsection.</text></subparagraph></paragraph><paragraph id="H91AC5636ACB04F4F8724DCEFFCD3D244"><enum>(5)</enum><header>Clarification</header><text display-inline="yes-display-inline">A renegotiation-eligible drug for which the Secretary makes a determination described in section 1192(c)(1) before or during the period of renegotiation shall not be subject to the renegotiation process under this section. </text></paragraph></subsection><subsection id="id3D61EDFDAA854524A54C9C45009E6512"><enum>(g)</enum><header>Clarification</header><text>The maximum fair price for a selected drug described in subparagraph (A) or (B) of paragraph (1) shall take effect no later than the first day of the first calendar quarter that begins after the date described in subparagraph (A) or (B), as applicable. </text></subsection></section><section id="HA60BB1A4DC3F4877AB122AD4F8EB77E9"><enum>1195.</enum><header>Publication of maximum fair prices</header><subsection id="H7DB9D52943F24C339AD5EB5509E8F2EF"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">With respect to an initial price applicability year and a selected drug with respect to such year—</text><paragraph id="H38052607E91D4AFEB49BBB6C4AB618FA"><enum>(1)</enum><text display-inline="yes-display-inline">not later than November 30 of the year that is 2 years prior to such initial price applicability year, the Secretary shall publish the maximum fair price for such drug negotiated with the manufacturer of such drug under this part; and </text></paragraph><paragraph id="idF5006633EBD5495FA5C6FB2114E7777E" commented="no"><enum>(2)</enum><text display-inline="yes-display-inline">not later than March 1 of the year prior to such initial price applicability year, the Secretary shall publish, subject to section 1193(c), the explanation for the maximum fair price with respect to the factors as applied under section 1194(e) for such drug described in paragraph (1).</text></paragraph></subsection><subsection id="HAB525CFB823B402AA46B5E511E0852C1"><enum>(b)</enum><header>Updates</header><paragraph id="H1466AACF4D8D422AA37622F3D7E6B6B5"><enum>(1)</enum><header>Subsequent year maximum fair prices</header><text display-inline="yes-display-inline">For a selected drug, for each year subsequent to the first initial price applicability year of the price applicability period with respect to such drug, with respect to which an agreement for such drug is in effect under section 1193, not later than November 30 of the year that is 2 years prior to such subsequent year, the Secretary shall publish the maximum fair price applicable to such drug and year, which shall be—</text><subparagraph id="H3C5DF41B7E6E4C03B0E7FAB1F3FE1927"><enum>(A)</enum><text>subject to subparagraph (B), the amount equal to the maximum fair price published for such drug for the previous year, increased by the annual percentage increase in the consumer price index for all urban consumers (all items; United States city average) for the 12-month period ending with the July immediately preceding such November 30; or </text></subparagraph><subparagraph id="HC5B58CDEAEC34BB4AA8CBA29FDAB7EE5"><enum>(B)</enum><text>in the case the maximum fair price for such drug was renegotiated, for the first year for which such price as so renegotiated applies, such renegotiated maximum fair price.</text></subparagraph></paragraph><paragraph id="H28AADC7581CB48C29FC1ADD34B6094C8"><enum>(2)</enum><header>Prices negotiated after deadline</header><text>In the case of a selected drug with respect to an initial price applicability year for which the maximum fair price is determined under this part after the date of publication under this section, the Secretary shall publish such maximum fair price by not later than 30 days after the date such maximum price is so determined.</text></paragraph></subsection></section><section id="H8966564B91CE4569AAAAE6A6ABFD66A8"><enum>1196.</enum><header>Administrative duties and compliance monitoring</header><subsection id="HEF11BFB787674E2D99C7139321746B55"><enum>(a)</enum><header>Administrative duties</header><text display-inline="yes-display-inline">For purposes of section 1191(a)(4), the administrative duties described in this section are the following:</text><paragraph commented="no" id="H779232C49C644481A5B06AE5213D326F"><enum>(1)</enum><text>The establishment of procedures to ensure that the maximum fair price for a selected drug is applied before—</text><subparagraph id="H03FFD7C2DEBD4FADA994196423433082"><enum>(A)</enum><text>any coverage or financial assistance under other health benefit plans or programs that provide coverage or financial assistance for the purchase or provision of prescription drug coverage on behalf of maximum fair price eligible individuals; and</text></subparagraph><subparagraph id="HCCA5CE722171468F8B015F328F9ECCBF"><enum>(B)</enum><text>any other discounts.</text></subparagraph></paragraph><paragraph id="HE4AC8A81747748DCA7B65188C14410D8"><enum>(2)</enum><text display-inline="yes-display-inline">The establishment of procedures to compute and apply the maximum fair price across different strengths and dosage forms of a selected drug and not based on the specific formulation or package size or package type of such drug. </text></paragraph><paragraph id="H10FA1A4AAC994332B0EE64F5F2111A18"><enum>(3)</enum><text>The establishment of procedures to carry out the provisions of this part, as applicable, with respect to—</text><subparagraph id="H59068F0CB9614C0FB40684B6877D8ABF"><enum>(A)</enum><text>maximum fair price eligible individuals who are enrolled in a prescription drug plan under part D of title XVIII or an MA–PD plan under part C of such title; and</text></subparagraph><subparagraph id="H11449C888A9143ADBD6E12D31DE95B0C"><enum>(B)</enum><text>maximum fair price eligible individuals who are enrolled under part B of such title, including who are enrolled in an MA plan under part C of such title.</text></subparagraph></paragraph><paragraph id="H915BD19F65AB4141AABE60EAF8D4239A"><enum>(4)</enum><text>The establishment of a negotiation process and renegotiation process in accordance with section 1194.</text></paragraph><paragraph id="H5213767C121B44B692EA64D9F76ADCC4"><enum>(5)</enum><text display-inline="yes-display-inline">The establishment of a process for manufacturers to submit information described in section 1194(b)(2)(A).</text></paragraph><paragraph id="id40c2564fe7554fdbbc332222328ca514"><enum>(6)</enum><text>The sharing with the Secretary of the Treasury of such information as is necessary to determine the tax imposed by <external-xref legal-doc="usc" parsable-cite="usc/26/5000D">section 5000D</external-xref> of the Internal Revenue Code of 1986, including the application of such tax to a manufacturer, producer, or importer or the determination of any date described in section 5000D(c)(1) of such Code. For purposes of the preceding sentence, such information shall include—</text><subparagraph id="id0969cdffb94e4af9bbe68a43cdce8cf0"><enum>(A)</enum><text>the date on which the Secretary receives notification of any termination of an agreement under the Medicare coverage gap discount program under section 1860D-14A and the date on which any subsequent agreement under such program is entered into;</text></subparagraph><subparagraph id="idb06a23afc1b844979c5f073bb98ea961"><enum>(B)</enum><text>the date on which the Secretary receives notification of any termination of an agreement under the manufacturer discount program under section 1860D-14C and the date on which any subsequent agreement under such program is entered into; and</text></subparagraph><subparagraph id="id9ef686fa9c1942b3863d8892a59db300"><enum>(C)</enum><text>the date on which the Secretary receives notification of any termination of a rebate agreement described in section 1927(b) and the date on which any subsequent rebate agreement described in such section is entered into. </text></subparagraph></paragraph><paragraph id="HB1BD481144BE4D6092B91911594FF9C1"><enum>(7)</enum><text display-inline="yes-display-inline">The establishment of procedures for purposes of applying section 1192(d)(2)(B). </text></paragraph></subsection><subsection id="H3D7157D87D9D4BFD8B00F432ED0795B7"><enum>(b)</enum><header>Compliance monitoring</header><text display-inline="yes-display-inline">The Secretary shall monitor compliance by a manufacturer with the terms of an agreement under section 1193 and establish a mechanism through which violations of such terms shall be reported.</text></subsection></section><section id="HA77304729FE04FC7B00A27C0F4323410"><enum>1197.</enum><header>Civil monetary penalties</header><subsection id="H8CE54F8942CF41D7BF8CA0CE8A6D6E42"><enum>(a)</enum><header>Violations relating to offering of maximum fair price</header><text display-inline="yes-display-inline">Any manufacturer of a selected drug that has entered into an agreement under section 1193, with respect to a year during the price applicability period with respect to such drug, that does not provide access to a price that is equal to or less than the maximum fair price for such drug for such year—</text><paragraph id="H80B2FFC8AF034045A3E646DF6621D607"><enum>(1)</enum><text display-inline="yes-display-inline">to a maximum fair price eligible individual who with respect to such drug is described in subparagraph (A) of section 1191(c)(2) and who is dispensed such drug during such year (and to pharmacies, mail order services, and other dispensers, with respect to such maximum fair price eligible individuals who are dispensed such drugs); or</text></paragraph><paragraph id="H6427A24BB0644ACAABCACF56E6074B4E"><enum>(2)</enum><text>to a hospital, physician, or other provider of services or supplier with respect to maximum fair price eligible individuals who with respect to such drug is described in subparagraph (B) of such section and is furnished or administered such drug by such hospital, physician, or provider or supplier during such year;</text></paragraph><continuation-text continuation-text-level="subsection">shall be subject to a civil monetary penalty equal to ten times the amount equal to the product of the number of units of such drug so furnished, dispensed, or administered during such year and the difference between the price for such drug made available for such year by such manufacturer with respect to such individual or hospital, physician, provider of services, or supplier and the maximum fair price for such drug for such year. </continuation-text></subsection><subsection commented="no" id="HB7B3DD98AA78443EA6C4C52E67B56983"><enum>(b)</enum><header>Violations of certain terms of agreement</header><text display-inline="yes-display-inline">Any manufacturer of a selected drug that has entered into an agreement under section 1193, with respect to a year during the price applicability period with respect to such drug, that is in violation of a requirement imposed pursuant to section 1193(a)(5), including the requirement to submit information pursuant to section 1193(a)(4), shall be subject to a civil monetary penalty equal to $1,000,000 for each day of such violation. </text></subsection><subsection id="HC43D1CE918FD4C899638BBA65054FB8B"><enum>(c)</enum><header>False information</header><text>Any manufacturer that knowingly provides false information pursuant to section 1196(a)(7) shall be subject to a civil monetary penalty equal to $100,000,000 for each item of such false information. </text></subsection><subsection id="HA2FDD1D0F2414FC081F6A12E65F14DBA"><enum>(d)</enum><header>Application</header><text>The provisions of section 1128A (other than subsections (a) and (b)) shall apply to a civil monetary penalty under this section in the same manner as such provisions apply to a penalty or proceeding under section 1128A(a).</text></subsection></section><section id="idf8d34cd667ea42bb959ab9edf2ef2ce2"><enum>1198.</enum><header>Limitation on administrative and judicial review</header><text display-inline="no-display-inline">There shall be no administrative or judicial review of any of the following:</text><paragraph id="idE73F869AD2914204A78BEB81000DE6AD"><enum>(1)</enum><text>The determination of a unit, with respect to a drug or biological product, pursuant to section 1191(c)(6).</text></paragraph><paragraph id="id0D476577A50F437F9519FEF1630E15B6"><enum>(2)</enum><text>The selection of drugs under section 1192(b), the determination of negotiation-eligible drugs under section 1192(d), and the determination of qualifying single source drugs under section 1192(e). </text></paragraph><paragraph id="id68DAA4D3F2BA4082BFA17970E308C290"><enum>(3)</enum><text>The determination of a maximum fair price under subsection (b) or (f) of section 1194.</text></paragraph><paragraph id="id9D985770CEEB4C93BC20A35BBEE8E858"><enum>(4)</enum><text>The determination of renegotiation-eligible drugs under section 1194(f)(2) and the selection of renegotiation-eligible drugs under section 1194(f)(3).</text></paragraph></section></part><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H173E6DDE70B44518A651F1FB82FB5F1D"><enum>(b)</enum><header>Application of maximum fair prices and conforming amendments</header><paragraph id="H412D2F6FAC984C0DAEAEACD576316768"><enum>(1)</enum><header>Under Medicare</header><subparagraph id="H6F77C2313D3A48CD9A6258E1FA5F124D"><enum>(A)</enum><header>Application to payments under part B</header><text display-inline="yes-display-inline">Section 1847A(b)(1)(B) of the Social Security Act (42 U.S.C. 1395w–3a(b)(1)(B)) is amended by inserting <quote>or in the case of such a drug or biological product that is a selected drug (as referred to in section 1192(c)), with respect to a price applicability period (as defined in section 1191(b)(2)), 106 percent of the maximum fair price (as defined in section 1191(c)(3)) applicable for such drug and a year during such period</quote> after <quote>paragraph (4)</quote>.</text></subparagraph><subparagraph id="H2D4A9769E491411694D532A16B230263"><enum>(B)</enum><header>Application under MA of cost-sharing for part B drugs based off of negotiated price</header><text>Section 1852(a)(1)(B)(iv) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-22">42 U.S.C. 1395w–22(a)(1)(B)(iv)</external-xref>) is amended—</text><clause id="H4EC2DB02E5AE4F34BFD978A0DD688225"><enum>(i)</enum><text>by redesignating subclause (VII) as subclause (VIII); and</text></clause><clause id="HFF2B9B9AF0F1466ABCFD568551091626"><enum>(ii)</enum><text>by inserting after subclause (VI) the following subclause:</text><quoted-block style="OLC" id="H40F2F60805B7483695F12C26D0D7FDB5" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subclause id="H67274793BCC44C339D8E9F0B88BB5E82"><enum>(VII)</enum><text display-inline="yes-display-inline">A drug or biological product that is a selected drug (as referred to in section 1192(c)).</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="idF456804E9C934500A936D8E05513B4BA"><enum>(C)</enum><header>Exception to part <enum-in-header>D</enum-in-header> non-interference</header><text>Section 1860D–11(i) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-111">42 U.S.C. 1395w–111(i)</external-xref>) is amended—</text><clause id="id9599D33FF7DB4862B43A2F32685E52DC"><enum>(i)</enum><text>in paragraph (1), by striking <quote>and</quote> at the end; </text></clause><clause id="id3F8ECF2F872E4548875277A67A8B222D"><enum>(ii)</enum><text>in paragraph (2), by striking <quote>or institute a price structure for the reimbursement of covered part D drugs.</quote> and inserting <quote>, except as provided under section 1860D–4(b)(3)(l); and</quote>; and </text></clause><clause id="id06D009C1ECEA4FED98220316F73B1AB6"><enum>(iii)</enum><text>by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id8B4CF4B6AF18493E819A9975105C3D7C" changed="added" reported-display-style="italic"><paragraph id="id51EDFF7A123749F78E6B6483762F1E22"><enum>(3)</enum><text>may not institute a price structure for the reimbursement of covered part D drugs, except as provided under part E of title XI.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="H86353593EA194C9BA17FE48933D9730E"><enum>(D)</enum><header>Application as negotiated price under part D</header><text display-inline="yes-display-inline">Section 1860D–2(d)(1) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-102">42 U.S.C. 1395w–102(d)(1)</external-xref>) is amended—</text><clause id="H64711E51FCD74EE8A9389B675AA56598"><enum>(i)</enum><text>in subparagraph (B), by inserting <quote>, subject to subparagraph (D),</quote> after <quote>negotiated prices</quote>; and</text></clause><clause id="HE2B746F99D8C4CB596EF411A2DDC8916"><enum>(ii)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block display-inline="no-display-inline" id="HF37C1AC5B2F4474F96439CCD75EFFDD5" style="OLC" changed="added" reported-display-style="italic"><subparagraph id="HD78C1D9520D84ED89DE37823B7C4C31F"><enum>(D)</enum><header>Application of maximum fair price for selected drugs</header><text display-inline="yes-display-inline">In applying this section, in the case of a covered part D drug that is a selected drug (as referred to in section 1192(c)), with respect to a price applicability period (as defined in section 1191(b)(2)), the negotiated prices used for payment (as described in this subsection) shall be no greater than the maximum fair price (as defined in section 1191(c)(3)) for such drug and for each year during such period plus any dispensing fees for such drug.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="H707674DD0C524FF39CE613AAFC51D891"><enum>(E)</enum><header>Coverage of selected drugs</header><text display-inline="yes-display-inline">Section 1860D–4(b)(3) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-104">42 U.S.C. 1395w–104(b)(3)</external-xref>) is amended by adding at the end the following new subparagraph:</text><quoted-block style="OLC" id="HCEB8C5C478874E9DAC18D50B3A73BBEA" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subparagraph id="HF9238BB591514AEC9476201E6EC79D37"><enum>(I)</enum><header>Required inclusion of selected drugs</header><clause id="idF39EBD44B0274B08A78EF0653A4EA226"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">For 2026 and each subsequent year, the PDP sponsor offering a prescription drug plan shall include each covered part D drug that is a selected drug under section 1192 for which a maximum fair price (as defined in section 1191(c)(3)) is in effect with respect to the year.</text></clause><clause id="idDE71118180364AB5A2B82B61A61208D6"><enum>(ii)</enum><header>Clarification</header><text display-inline="yes-display-inline">Nothing in clause (i) shall be construed as prohibiting a PDP sponsor from removing such a selected drug from a formulary if such removal would be permitted under section 423.120(b)(5)(iv) of title 42, Code of Federal Regulations (or any successor regulation).</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph id="H5B836D3CB2CE4310BDA41E3DF26BF22E"><enum>(F)</enum><header>Information from prescription drug plans and MA–PD plans required</header><clause id="H519C580DE59143409EFC01C74AC7DD73"><enum>(i)</enum><header>Prescription drug plans</header><text display-inline="yes-display-inline">Section 1860D–12(b) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-112">42 U.S.C. 1395w–112(b)</external-xref>) is amended by adding at the end the following new paragraph:</text><quoted-block display-inline="no-display-inline" id="H9459B0D3AE884719B0039FC4D01B7ED4" style="OLC" changed="added" reported-display-style="italic"><paragraph id="H94B8262CE4FD4AA8A2C950FFCC0FD307"><enum>(8)</enum><header>Provision of information related to maximum fair prices</header><text display-inline="yes-display-inline">Each contract entered into with a PDP sponsor under this part with respect to a prescription drug plan offered by such sponsor shall require the sponsor to provide information to the Secretary as requested by the Secretary for purposes of carrying out section 1194.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></clause><clause id="HBBE5BDB0769C49ACB20EB5C2F03F91EC"><enum>(ii)</enum><header>MA–PD plans</header><text display-inline="yes-display-inline">Section 1857(f)(3) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-27">42 U.S.C. 1395w–27(f)(3)</external-xref>) is amended by adding at the end the following new subparagraph:</text><quoted-block display-inline="no-display-inline" id="H0429D776F8434B37A4B090F30093FA44" style="OLC" changed="added" reported-display-style="italic"><subparagraph id="H8C29483FA1A246C18DF2DA23DE8E3A3B"><enum>(E)</enum><header>Provision of information related to maximum fair prices</header><text display-inline="yes-display-inline">Section 1860D–12(b)(8).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="idE7AFF2AD13B74E3F914C7A5429414365"><enum>(G)</enum><header>Conditions for coverage</header><clause id="id44C7A916BAD0489C9D955C0D913719A6"><enum>(i)</enum><header>Medicare part D</header><text>Section 1860D–43(c) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-153">42 U.S.C. 1395w–153(c)</external-xref>) is amended—</text><subclause id="idCED00535672F4C4B8966A9ACCF30D786"><enum>(I)</enum><text>by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively;</text></subclause><subclause id="id413F3A948AA845A4842D081DFF31FFBB"><enum>(II)</enum><text>by striking <quote><header-in-text style="OLC" level="subsection">agreements</header-in-text>.—Subsection</quote> and inserting the following: “<header-in-text level="subsection" style="OLC">agreements</header-in-text>.—</text><quoted-block style="OLC" display-inline="no-display-inline" id="id49B2606124A341FCB363D32BDE66F9DB" changed="added" reported-display-style="italic"><paragraph id="id5E5FBFFC1DAD4C699981964F83328E4F"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (2), subsection</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subclause><subclause id="id184FC50260374146B2D936AA8064C00D"><enum>(III)</enum><text>by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id3D4EADE791DB459E857C14620BB89FE6" changed="added" reported-display-style="italic"><paragraph id="idD6E0ACFF29BF4DE2BF8EC1367863D876"><enum>(2)</enum><header>Exception</header><text>Paragraph (1)(A) shall not apply to a covered part D drug of a manufacturer for any period described in <external-xref legal-doc="usc" parsable-cite="usc/26/5000D">section 5000D(c)(1)</external-xref> of the Internal Revenue Code of 1986 with respect to the manufacturer.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subclause></clause><clause id="id89675A02FD334837B769ACA3C5E4B5A7"><enum>(ii)</enum><header>Medicaid and Medicare part B</header><text>Section 1927(a)(3) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-8">42 U.S.C. 1396r–8(a)(3)</external-xref>) is amended by adding at the end the following new sentence: <quote>The preceding sentence shall not apply to a single source drug or innovator multiple source drug of a manufacturer for any period described in <external-xref legal-doc="usc" parsable-cite="usc/26/5000D">section 5000D(c)(1)</external-xref> of the Internal Revenue Code of 1986 with respect to the manufacturer.</quote>.</text></clause></subparagraph><subparagraph id="id05A200BA857B494BBD3FB6010EB78225"><enum>(H)</enum><header>Disclosure of information under Medicare part D</header><clause id="id4bbf89d93c7e40f3ac6007dfa6d37d49"><enum>(i)</enum><header>Contract requirements</header><text>Section 1860D–12(b)(3)(D)(i) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-112">42 U.S.C. 1395w–112(b)(3)(D)(i)</external-xref>) is amended by inserting <quote>, or carrying out part E of title XI</quote> after <quote>appropriate)</quote>. </text></clause><clause id="id9270c808f8024b14b5aaa583f0b0c237"><enum>(ii)</enum><header>Subsidies</header><text>Section 1860D–15(f)(2)(A)(i) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-115">42 U.S.C. 1395w–115(f)(2)(A)(i)</external-xref>) is amended by inserting <quote>or part E of title XI</quote> after <quote>this section</quote>. </text></clause></subparagraph></paragraph><paragraph id="H6293AB6126684EF9A4ECA0AF74A80EF2" commented="no"><enum>(2)</enum><header>Drug price negotiation program prices included in best price</header><text display-inline="yes-display-inline">Section 1927(c)(1)(C) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-8">42 U.S.C. 1396r–8(c)(1)(C)</external-xref>) is amended—</text><subparagraph id="H8049401C55B148BCAEE19659E3A4C890" commented="no" display-inline="no-display-inline"><enum>(A)</enum><text>in clause (i)(VI), by striking <quote>any prices charged</quote> and inserting <quote>subject to clause (ii)(V), any prices charged</quote>; and </text></subparagraph><subparagraph id="H58E6724390514230B7868D9671E8A324" commented="no"><enum>(B)</enum><text>in clause (ii)—</text><clause id="H7AC013F5B96242A8A62D5EB809F32FC6" commented="no"><enum>(i)</enum><text>in subclause (III), by striking <quote>; and</quote> at the end;</text></clause><clause id="HF7C584B4BED84AB791A125BC9644B3E7" commented="no"><enum>(ii)</enum><text>in subclause (IV), by striking the period at the end and inserting <quote>; and</quote>; and</text></clause><clause id="HC5FF25A4FB79419D82702A99E6DAFC52" commented="no"><enum>(iii)</enum><text>by adding at the end the following new subclause:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H8F3752314D6E4F34876C53E6656404F8" changed="added" reported-display-style="italic"><subclause id="H3E9781DD401D4B0090220D67E48E92A0" commented="no"><enum>(V)</enum><text display-inline="yes-display-inline">in the case of a rebate period and a covered outpatient drug that is a selected drug (as referred to in section 1192(c)) during such rebate period, shall be inclusive of the maximum fair price (as defined in section 1191(c)(3)) for such drug with respect to such period.</text></subclause><after-quoted-block>. </after-quoted-block></quoted-block></clause></subparagraph></paragraph><paragraph id="ideb9ff0f278d443bfa05ebd9fdfc92315"><enum>(3)</enum><header>Maximum fair prices excluded from average manufacturer price</header><text>Section 1927(k)(1)(B)(i) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-8">42 U.S.C. 1396r–8(k)(1)(B)(i)</external-xref>) is amended—</text><subparagraph id="id5cbbf944faff497680c1ba30592781ea"><enum>(A)</enum><text>in subclause (IV) by striking <quote>; and</quote> at the end;</text></subparagraph><subparagraph id="id728ca816d1ed43ac9ef14c0d7c9ae060"><enum>(B)</enum><text>in subclause (V) by striking the period at the end and inserting <quote>; and</quote>; and</text></subparagraph><subparagraph id="id3ad8c920d98e4e94b01b57510ce823b5"><enum>(C)</enum><text>by adding at the end the following new subclause:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id5A35F7E03AFE4806B6AAEFA34D79E1AF" changed="added" reported-display-style="italic"><subclause id="id4F2654A105D94C54A7EDCA97281F974B"><enum>(VI)</enum><text>any reduction in price paid during the rebate period to the manufacturer for a drug by reason of application of part E of title XI.</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="id80ACA44B989E476DB7690D8490EC0AED" commented="no"><enum>(c)</enum><header>Implementation for 2026 through 2028</header><text display-inline="yes-display-inline">The Secretary of Health and Human Services shall implement this section, including the amendments made by this section, for 2026, 2027, and 2028 by program instruction or other forms of program guidance.</text></subsection></section><section id="id00A8E2E0B62046CDB19B98E72DEAE762"><enum>11002.</enum><header>Special rule to delay selection and negotiation of biologics for biosimilar market entry</header><subsection id="id19AF21F3F2AF461891FBCAC4DE581656"><enum>(a)</enum><header>In general</header><text>Part E of title XI of the Social Security Act, as added by <external-xref legal-doc="usc" parsable-cite="usc/26/11001">section 11001,</external-xref> is amended—</text><paragraph id="idF3B9D27E35C24D95B56F6852BD4BC95D"><enum>(1)</enum><text>in section 1192—</text><subparagraph id="id0A74AE8D21C44030A4C20234B0AFC575"><enum>(A)</enum><text>in subsection (a), in the flush matter following paragraph (4), by inserting <quote>and subsection (b)(3)</quote> after <quote>the previous sentence</quote>; </text></subparagraph><subparagraph id="idA89192276AEE4BCA86588BF99B9AB9E1"><enum>(B)</enum><text>in subsection (b)—</text><clause id="idD0507E9B01E140BE87C7E003AEF6564D"><enum>(i)</enum><text>in paragraph (1), by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idDE4C777FBCD14191B809798EF05AB240" changed="added" reported-display-style="italic"><subparagraph id="id92ba8b2a584344beb855afdb037e9b45"><enum>(C)</enum><text>In the case of a biological product for which the inclusion of the biological product as a selected drug on a list published under subsection (a) has been delayed under subsection (f)(2), remove such biological product from the rankings under subparagraph (A) before making the selections under subparagraph (B).</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause><clause id="idF747D4A09DC84AB687D06743EC054ADF"><enum>(ii)</enum><text>by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idE011825A7D6445A59F6BEEC2F8E455FA" changed="added" reported-display-style="italic"><paragraph commented="no" id="id804A77AEBB45480F81548D47C3897FA1"><enum>(3)</enum><header>Inclusion of delayed biological products</header><text>Pursuant to subparagraphs (B)(ii)(I) and (C)(i) of subsection (f)(2), the Secretary shall select and include on the list published under subsection (a) the biological products described in such subparagraphs. Such biological products shall count towards the required number of drugs to be selected under subsection (a)(1). </text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="idDA536B4267B14E3CAA86424829805693"><enum>(C)</enum><text>by adding at the end the following new subsection:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id0748775BC9B8456EB9D709FB4D0D78FF" changed="added" reported-display-style="italic"><subsection id="id1DED9BE58AB842A8B95B40ADEDEEA43C"><enum>(f)</enum><header>Special rule To delay selection and negotiation of biologics for biosimilar market entry</header><paragraph id="idF5C8664FC317472AA0C2EBBA8F682581"><enum>(1)</enum><header>Application</header><subparagraph id="idA473D4419A114C9E91E13231EB614E75"><enum>(A)</enum><header>In general</header><text>Subject to subparagraph (B), in the case of a biological product that would (but for this subsection) be an extended-monopoly drug (as defined in section 1194(c)(4)) included as a selected drug on the list published under subsection (a) with respect to an initial price applicability year, the rules described in paragraph (2) shall apply if the Secretary determines that there is a high likelihood (as described in paragraph (3)) that a biosimilar biological product (for which such biological product will be the reference product) will be licensed and marketed under section 351(k) of the Public Health Service Act before the date that is 2 years after the selected drug publication date with respect to such initial price applicability year. </text></subparagraph><subparagraph id="idBBC4AFD76201493A9C541C26D4FFF1C5"><enum>(B)</enum><header>Request required</header><clause id="id342A4952C95C4AEE8B212352AE9E3E83"><enum>(i)</enum><header>In general</header><text>The Secretary shall not provide for a delay under—</text><subclause id="id386BA8BDA3934672891EA1C96969760A"><enum>(I)</enum><text>paragraph (2)(A) unless a request is made for such a delay by a manufacturer of a biosimilar biological product prior to the selected drug publication date for the list published under subsection (a) with respect to the initial price applicability year for which the biological product may have been included as a selected drug on such list but for subparagraph (2)(A); or </text></subclause><subclause id="id68420880F3344625B0E56161C11A1599"><enum>(II)</enum><text>paragraph (2)(B)(iii) unless a request is made for such a delay by such a manufacturer prior to the selected drug publication date for the list published under subsection (a) with respect to the initial price applicability year that is 1 year after the initial price applicability year for which the biological product described in subsection (a) would have been included as a selected drug on such list but for paragraph (2)(A). </text></subclause></clause><clause id="id669A06CA529B43D98583F8B5A949248A"><enum>(ii)</enum><header>Information and documents</header><subclause id="idBC9823D88BE24038AEB1293EBB64E2C6"><enum>(I)</enum><header>In general</header><text>A request made under clause (i) shall be submitted to the Secretary by such manufacturer at a time and in a form and manner specified by the Secretary, and contain—</text><item id="idD1050DC09C984A68B3780BC9FD00DF1D"><enum>(aa)</enum><text>information and documents necessary for the Secretary to make determinations under this subsection, as specified by the Secretary and including, to the extent available, items described in subclause (III); and</text></item><item id="idBE877D0C831E4926B33E6DF1BB2DF62F"><enum>(bb)</enum><text>all agreements related to the biosimilar biological product filed with the Federal Trade Commission or the Assistant Attorney General pursuant to subsections (a) and (c) of section 1112 of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003.</text></item></subclause><subclause id="id7D5F294D1EA34FDC8672CDAF8026E99E"><enum>(II)</enum><header>Additional information and documents</header><text>After the Secretary has reviewed the request and materials submitted under subclause (I), the manufacturer shall submit any additional information and documents requested by the Secretary necessary to make determinations under this subsection. </text></subclause><subclause id="idF2BCADD1BBA94F6B90DA8545CF3B13C8"><enum>(III)</enum><header>Items described</header><text>The items described in this clause are the following:</text><item id="id86154CCECEBE4AE790015960C1E74295"><enum>(aa)</enum><text>The manufacturing schedule for such biosimilar biological product submitted to the Food and Drug Administration during its review of the application under such section 351(k). </text></item><item id="id17EF98B65AC8403A932CC838D3D92836"><enum>(bb)</enum><text>Disclosures (in filings by the manufacturer of such biosimilar biological product with the Securities and Exchange Commission required under section 12(b), 12(g), 13(a), or 15(d) of the Securities Exchange Act of 1934 about capital investment, revenue expectations, and actions taken by the manufacturer that are typical of the normal course of business in the year (or the 2 years, as applicable) before marketing of a biosimilar biological product) that pertain to the marketing of such biosimilar biological product, or comparable documentation that is distributed to the shareholders of privately held companies. </text></item></subclause></clause></subparagraph><subparagraph id="id1CCEA5627BE04D6599859038FE0EB00D"><enum>(C)</enum><header>Aggregation rule</header><clause id="idE5D226D6EB614165903D487DF75D6E73"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">All persons treated as a single employer under subsection (a) or (b) of <external-xref legal-doc="usc" parsable-cite="usc/26/52">section 52</external-xref> of the Internal Revenue Code of 1986, or in a partnership, shall be treated as one manufacturer for purposes of paragraph (2)(D)(iv). </text></clause><clause id="idE46E1F6155DD4F9997DB83F15B1D37CF"><enum>(ii)</enum><header>Partnership defined</header><text>In clause (i), the term <quote>partnership</quote> means a syndicate, group, pool, joint venture, or other organization through or by means of which any business, financial operation, or venture is carried on by the manufacturer of the biological product and the manufacturer of the biosimilar biological product.</text></clause></subparagraph></paragraph><paragraph id="id1C2D97F1132C4E7480A245D2B0746FF5"><enum>(2)</enum><header>Rules described</header><text>The rules described in this paragraph are the following:</text><subparagraph id="id5350001E1E90438DB6FFAB90B12F4C8C"><enum>(A)</enum><header>Delayed selection and negotiation for 1 year</header><text>If a determination of high likelihood is made under paragraph (3), the Secretary shall delay the inclusion of the biological product as a selected drug on the list published under subsection (a) until such list is published with respect to the initial price applicability year that is 1 year after the initial price applicability year for which the biological product would have been included as a selected drug on such list. </text></subparagraph><subparagraph id="id25427BC346AD4CE99CE73CA605D7E940"><enum>(B)</enum><header>If not licensed and marketed during the initial delay</header><clause id="idB19AC2A3E8DD42F681259C2B3224D18F"><enum>(i)</enum><header>In general</header><text>If, during the time period between the selected drug publication date on which the biological product would have been included on the list as a selected drug pursuant to subsection (a) but for subparagraph (A) and the selected drug publication date with respect to the initial price applicability year that is 1 year after the initial price applicability year for which such biological product would have been included as a selected drug on such list, the Secretary determines that the biosimilar biological product for which the manufacturer submitted the request under paragraph (1)(B)(i)(II) (and for which the Secretary previously made a high likelihood determination under paragraph (3)) has not been licensed and marketed under section 351(k) of the Public Health Service Act, the Secretary shall, at the request of such manufacturer— </text><subclause id="idD86FEA7460C6418DB5611BB7DA5F11C6"><enum>(I)</enum><text>reevaluate whether there is a high likelihood (as described in paragraph (3)) that such biosimilar biological product will be licensed and marketed under such section 351(k) before the date that is 2 years after the selected drug publication date for which such biological product would have been included as a selected drug on such list published but for subparagraph (A); and </text></subclause><subclause id="id99a64f34ec054401a52672bedee86622"><enum>(II)</enum><text>evaluate whether, on the basis of clear and convincing evidence, the manufacturer of such biosimilar biological product has made a significant amount of progress (as determined by the Secretary) towards both such licensure and the marketing of such biosimilar biological product (based on information from items described in subclauses (I)(bb) and (II) of paragraph (1)(B)(ii)) since the receipt by the Secretary of the request made by such manufacturer under paragraph (1)(B)(i)(I).</text></subclause></clause><clause id="id54CA985CF5864AC282534664E4BFAA7C"><enum>(ii)</enum><header>Selection and negotiation</header><text>If the Secretary determines that there is not a high likelihood that such biosimilar biological product will be licensed and marketed as described in clause (i)(I) or there has not been a significant amount of progress as described in clause (i)(II)— </text><subclause id="idEEB518E1C98E4A0E8485A95B040ECF28"><enum>(I)</enum><text>the Secretary shall include the biological product as a selected drug on the list published under subsection (a) with respect to the initial price applicability year that is 1 year after the initial price applicability year for which such biological product would have been included as a selected drug on such list but for subparagraph (A); and </text></subclause><subclause id="idE7A8E33F3F534B6CBAF25D684F38753D"><enum>(II)</enum><text>the manufacturer of such biological product shall pay a rebate under paragraph (4) with respect to the year for which such manufacturer would have provided access to a maximum fair price for such biological product but for subparagraph (A). </text></subclause></clause><clause id="idE93BA1C8CAA145B58B6277DA9D1770F2"><enum>(iii)</enum><header>Second 1-year delay</header><text>If the Secretary determines that there is a high likelihood that such biosimilar biological product will be licensed and marketed (as described in clause (i)(I)) and a significant amount of progress has been made by the manufacturer of such biosimilar biological product towards such licensure and marketing (as described in clause (i)(II)), the Secretary shall delay the inclusion of the biological product as a selected drug on the list published under subsection (a) until the selected drug publication date of such list with respect to the initial price applicability year that is 2 years after the initial price applicability year for which such biological product would have been included as a selected drug on such list but for this subsection. </text></clause></subparagraph><subparagraph id="id2BC2C1BF23A64A7EAC813ADD3077A663"><enum>(C)</enum><header>If not licensed and marketed during the year two delay</header><text>If, during the time period between the selected drug publication date of the list for which the biological product would have been included as a selected drug but for subparagraph (B)(iii) and the selected drug publication date with respect to the initial price applicability year that is 2 years after the initial price applicability year for which such biological product would have been included as a selected drug on such list but for this subsection, the Secretary determines that such biosimilar biological product has not been licensed and marketed— </text><clause id="idBBF3DE741DB540659E5A74BB2900F87B"><enum>(i)</enum><text>the Secretary shall include such biological product as a selected drug on such list with respect to the initial price applicability year that is 2 years after the initial price applicability year for which such biological product would have been included as a selected drug on such list; and </text></clause><clause id="id6E25C2BE571D4466B8F8E803A0CEAEFE"><enum>(ii)</enum><text>the manufacturer of such biological product shall pay a rebate under paragraph (4) with respect to the years for which such manufacturer would have provided access to a maximum fair price for such biological product but for this subsection. </text></clause></subparagraph><subparagraph id="idDC885D2B7AB2464EA9CEA0C658A318C2"><enum>(D)</enum><header>Limitations on delays</header><clause id="id2F73F0F292DF43F5857163C9E7AEEF78"><enum>(i)</enum><header>Limited to 2 years</header><text>In no case shall the Secretary delay the inclusion of a biological product on the list published under subsection (a) for more than 2 years. </text></clause><clause id="id7E35FA0F262A41DC8158DFB8FF9DFD62"><enum>(ii)</enum><header>Exclusion of biological products that transitioned to a long-monopoly drug during the delay</header><text>In the case of a biological product for which the inclusion on the list published pursuant to subsection (a) was delayed by 1 year under subparagraph (A) and for which there would have been a change in status to a long-monopoly drug (as defined in section 1194(c)(5)) if such biological product had been a selected drug, in no case may the Secretary provide for a second 1-year delay under subparagraph (B)(iii).</text></clause><clause id="id1d11d855913e42e7aa7893b7bde8f1a3"><enum>(iii)</enum><header>Exclusion of biological products if more than 1 year since licensure</header><text>In no case shall the Secretary delay the inclusion of a biological product on the list published under subsection (a) if more than 1 year has elapsed since the biosimilar biological product has been licensed under section 351(k) of the Public Health Service Act and marketing has not commenced for such biosimilar biological product. </text></clause><clause id="idA58E08097ECB4FCD994957FF59E9C47D"><enum>(iv)</enum><header>Certain manufacturers of biosimilar biological products excluded</header><text>In no case shall the Secretary delay the inclusion of a biological product as a selected drug on the list published under subsection (a) if Secretary determined that the manufacturer of the biosimilar biological product described in paragraph (1)(A)— </text><subclause id="id2A29F9295A0F4C34852021608AB58A8A"><enum>(I)</enum><text>is the same as the manufacturer of the reference product described in such paragraph or is treated as being the same pursuant to paragraph (1)(C); or</text></subclause><subclause id="idfeae0d049fc84858a43af8f0e2bd49c4" commented="no"><enum>(II)</enum><text>has, based on information from items described in paragraph (1)(B)(ii)(I)(bb), entered into any agreement described in such paragraph with the manufacturer of the reference product described in paragraph (1)(A) that—</text><item commented="no" id="id42E95562CB604E9783F26EFCE53AAF46"><enum>(aa)</enum><text>requires or incentivizes the manufacturer of the biosimilar biological product to submit a request described in paragraph (1)(B); or </text></item><item commented="no" id="idC1E6572AE5F443029CF328D9521ECFAA"><enum>(bb)</enum><text>restricts the quantity (either directly or indirectly) of the biosimilar biological product that may be sold in the United States over a specified period of time. </text></item></subclause></clause></subparagraph></paragraph><paragraph id="idF0498EFF0A6D461896803899483C61A0"><enum>(3)</enum><header>High likelihood</header><text>For purposes of this subsection, there is a high likelihood described in paragraph (1) or paragraph (2), as applicable, if the Secretary finds that—</text><subparagraph id="id88DBDB5B2C0948DAA3C019147ACED3B5"><enum>(A)</enum><text>an application for licensure under section 351(k) of the Public Health Service Act for the biosimilar biological product has been accepted for review or approved by the Food and Drug Administration; and </text></subparagraph><subparagraph id="id328e695b0bc64cb6830bce63eb8fa14f"><enum>(B)</enum><text>information from items described in sub clauses (I)(bb) and (III) of paragraph (1)(B)(ii) submitted to the Secretary by the manufacturer requesting a delay under such paragraph provides clear and convincing evidence that such biosimilar biological product will, within the time period specified under paragraph (1)(A) or (2)(B)(i)(I), be marketed.</text></subparagraph></paragraph><paragraph id="id93EA677C8DB44C398B655AF0113FB74C"><enum>(4)</enum><header>Rebate</header><subparagraph id="id7F41CD961F754A32A1115B0D47DDFC4D"><enum>(A)</enum><header>In general</header><text>For purposes of subparagraphs (B)(ii)(II) and (C)(ii) of paragraph (2), in the case of a biological product for which the inclusion on the list under subsection (a) was delayed under this subsection and for which the Secretary has negotiated and entered into an agreement under section 1193 with respect to such biological product, the manufacturer shall be required to pay a rebate to the Secretary at such time and in such manner as determined by the Secretary.</text></subparagraph><subparagraph id="idBCE29AE07F7541F08829311B68C16FA4"><enum>(B)</enum><header>Amount</header><text>Subject to subparagraph (C), the amount of the rebate under subparagraph (A) with respect to a biological product shall be equal to the estimated amount—</text><clause id="id95B6B6413FE9406FB907700DE27F03B5"><enum>(i)</enum><text>in the case of a biological product that is a covered part D drug (as defined in section 1860D–2(e)), that is the sum of the products of—</text><subclause id="id8328A9A5E7C24B8E9D33EA14659BB6B8"><enum>(I)</enum><text>75 percent of the amount by which—</text><item id="idDE748A5B5E8D4137AC11272715F5EB2A"><enum>(aa)</enum><text>the average manufacturer price, as reported by the manufacturer of such covered part D drug under section 1927 (or, if not reported by such manufacturer under section 1927, as reported by such manufacturer to the Secretary pursuant to the agreement under section 1193(a)) for such biological product, with respect to each of the calendar quarters of the price applicability period that would have applied but for this subsection; exceeds </text></item><item id="id5B2A5E87466D44CCA64742A3AAE1AA96"><enum>(bb)</enum><text>in the initial price applicability year that would have applied but for a delay under—</text><subitem id="id2D1973C7DB7C471F977C9EBC4A68F47C"><enum>(AA)</enum><text>paragraph (2)(A), the maximum fair price negotiated under section 1194 for such biological product under such agreement; or</text></subitem><subitem id="id5D61BFB7A9F345A4B1DB2A7DB85E7A80"><enum>(BB)</enum><text>paragraph (2)(B)(iii), such maximum fair price, increased as described in section 1195(b)(1)(A); and </text></subitem></item></subclause><subclause id="id138186D486684691812508D05B939BCB"><enum>(II)</enum><text>the number of units dispensed under part D of title XVIII for such covered part D drug during each such calendar quarter of such price applicability period; and </text></subclause></clause><clause id="idB1CC4ABF3CC54881B7FBA01DD214E017"><enum>(ii)</enum><text>in the case of a biological product for which payment may be made under part B of title XVIII, that is the sum of the products of—</text><subclause id="id514F0B98BB1546C1A4F95AFB78EA3A1D"><enum>(I)</enum><text>80 percent of the amount by which—</text><item id="id35AAB40D6DA04BD2A5578020536778DE"><enum>(aa)</enum><text>the payment amount for such biological product under section 1847A(b), with respect to each of the calendar quarters of the price applicability period that would have applied but for this subsection; exceeds </text></item><item id="id580A4B2ED71044D0B1AFA97D56325C29"><enum>(bb)</enum><text>in the initial price applicability year that would have applied but for a delay under—</text><subitem id="id443C93AAAE454040AD30F2F0684894FD"><enum>(AA)</enum><text>paragraph (2)(A), the maximum fair price negotiated under section 1194 for such biological product under such agreement; or</text></subitem><subitem id="idA8C9ABB6E1804315A84C47456DF93C27"><enum>(BB)</enum><text>paragraph (2)(B)(iii), such maximum fair price, increased as described in section 1195(b)(1)(A); and </text></subitem></item></subclause><subclause id="id3D91BCC7F2F34A8EABFD5F1D1B72EA97"><enum>(II)</enum><text>the number of units (excluding units that are packaged into the payment amount for an item or service and are not separately payable under such part B) of the billing and payment code of such biological product administered or furnished under such part B during each such calendar quarter of such price applicability period. </text></subclause></clause></subparagraph><subparagraph id="idACA41E53964940A8A6A46C13D1790618" commented="no"><enum>(C)</enum><header>Special rule for delayed biological products that are long-monopoly drugs</header><clause commented="no" id="id6105114CF78E41749F8AE3A19B8DF4C1"><enum>(i)</enum><header>In general</header><text>In the case of a biological product with respect to which a rebate is required to be paid under this paragraph, if such biological product qualifies as a long-monopoly drug (as defined in section 1194(c)(5)) at the time of its inclusion on the list published under subsection (a), in determining the amount of the rebate for such biological product under subparagraph (B), the amount described in clause (ii) shall be substituted for the maximum fair price described in clause (i)(I) or (ii)(I) of such subparagraph (B), as applicable.</text></clause><clause commented="no" id="idD38F9A63296D47A9931438BFE6464788"><enum>(ii)</enum><header>Amount described</header><text>The amount described in this clause is an amount equal to 65 percent of the average non-Federal average manufacturer price for the biological product for 2021 (or, in the case that there is not an average non-Federal average manufacturer price available for such biological product for 2021, for the first full year following the market entry for such biological product), increased by the percentage increase in the consumer price index for all urban consumers (all items; United States city average) from September 2021 (or December of such first full year following the market entry), as applicable, to September of the year prior to the selected drug publication date with respect to the initial price applicability year that would have applied but for this subsection. </text></clause></subparagraph><subparagraph id="id02AD22A1220D41C9A2E8579533AE2872"><enum>(D)</enum><header>Rebate deposits</header><text>Amounts paid as rebates under this paragraph shall be deposited into—</text><clause id="idBB3281B862A24C6CAA78FF5479A3D76E"><enum>(i)</enum><text>in the case payment is made for such biological product under part B of title XVIII, the Federal Supplementary Medical Insurance Trust Fund established under section 1841; and</text></clause><clause id="id6367B663546F49DBBE696469D40F6F82"><enum>(ii)</enum><text>in the case such biological product is a covered part D drug (as defined in section 1860D–2(e)), the Medicare Prescription Drug Account under section 1860D–16 in such Trust Fund.</text></clause></subparagraph></paragraph><paragraph id="id09B2695DC40443F98A4C2179254DFD07"><enum>(5)</enum><header>Definitions of biosimilar biological product</header><text>In this subsection, the term <quote>biosimilar biological product</quote> has the meaning given such term in section 1847A(c)(6).</text></paragraph></subsection><after-quoted-block>; </after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="idC1F490871576405DAA9F1129A10F7D30" commented="no"><enum>(2)</enum><text>in section 1193(a)(4)—</text><subparagraph commented="no" id="id8E1AD1F6BE0D4E90832556C9CFF2EB5F"><enum>(A)</enum><text>in the matter preceding subparagraph (A), by inserting <quote>, and for section 1192(f),</quote> after <quote>section 1194(f))</quote>;</text></subparagraph><subparagraph id="idE05DE0E7BFED4265809E8006C4B069FF" commented="no"><enum>(B)</enum><text>in subparagraph (A), by striking <quote>and</quote> at the end;</text></subparagraph><subparagraph id="idB5392B7F4A4540E1AE029D6EA2678547" commented="no"><enum>(C)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id1AED75A5AA0241059065A7A4EC0CF894" changed="added" reported-display-style="italic"><subparagraph id="id32DE029DC8434073B22AC6E209AE0531" commented="no"><enum>(C)</enum><text>information that the Secretary requires to carry out section 1192(f), including rebates under paragraph (4) of such section; and</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="idD40F304B7BB94A418F3B7EDCE42566DB"><enum>(3)</enum><text>in section 1196(a)(7), by striking <quote>section 1192(d)(2)(B)</quote> and inserting <quote>subsections (d)(2)(B) and (f)(1)(C) of section 1192</quote>; </text></paragraph><paragraph id="id259527384DFC4D9890FC51B98DF8C984"><enum>(4)</enum><text>in section 1197—</text><subparagraph id="id9D8A0B46918744B78A61D9D7ED6C80DF"><enum>(A)</enum><text>by redesignating subsections (b), (c), and (d) as subsections (c), (d), and (e), respectively; and</text></subparagraph><subparagraph id="id24B33A23B61F404D808DEA62B9A1834E"><enum>(B)</enum><text>by inserting after subsection (a) the following new subsection:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id6A159C29DA814C75AAFADAC1407054E6" changed="added" reported-display-style="italic"><subsection id="idB25BCB8FDB5D49ECBE3356307215D710"><enum>(b)</enum><header>Violations relating to providing rebates</header><text>Any manufacturer that fails to comply with the rebate requirements under section 1192(f)(4) shall be subject to a civil monetary penalty equal to 10 times the amount of the rebate the manufacturer failed to pay under such section. </text></subsection><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="id59B3192B0FAE4962B1DB76DC3729DCE2"><enum>(5)</enum><text>in section 1198(b)(2), by inserting <quote>the application of section 1192(f),</quote> after <quote>section 1192(e)</quote>. </text></paragraph></subsection><subsection id="id515129e39c094ae9921c46f5573de13c" commented="no"><enum>(b)</enum><header>Conforming amendments for disclosure of certain information</header><text>Section 1927(b)(3)(D)(i) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-8">42 U.S.C. 1396r–8(b)(3)(D)(i)</external-xref>) is amended by striking <quote>or to carry out section 1847B</quote> and inserting <quote>or to carry out section 1847B or section 1192(f), including rebates under paragraph (4) of such section</quote>.</text></subsection><subsection id="id382EF8E1AEC74F7991A5E023A348C291" commented="no"><enum>(c)</enum><header>Implementation for 2026 through 2028</header><text display-inline="yes-display-inline">The Secretary of Health and Human Services shall implement this section, including the amendments made by this section, for 2026, 2027, and 2028 by program instruction or other forms of program guidance.</text></subsection></section><section id="id5687AACEC5CC4BD298F116BD794FA6E2" section-type="subsequent-section"><enum>11003.</enum><header>Excise tax imposed on drug manufacturers during noncompliance periods</header><subsection id="H45C01A6127444DFFA3571A7B6CD07C78"><enum>(a)</enum><header>In general</header><text>Subtitle D of the Internal Revenue Code of 1986 is amended by adding at the end the following new chapter:</text><quoted-block style="OLC" id="HEC49423D608547EDA9A2591071D59851" display-inline="no-display-inline" changed="added" reported-display-style="italic"><chapter id="H65B10F73279D42C6AE8C5FCE4D540985"><enum>50A<?LEXA-Enum 50A?></enum><header>Designated Drugs</header><toc container-level="subchapter-container" quoted-block="no-quoted-block" lowest-level="section" idref="H65B10F73279D42C6AE8C5FCE4D540985" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded"><toc-entry idref="H08B04214DFE54C058DE651908B8C1429" level="section">Sec. 5000D. Designated drugs during noncompliance periods.</toc-entry></toc><section id="H08B04214DFE54C058DE651908B8C1429"><enum>5000D.<?LEXA-Enum 5000D.?></enum><header>Designated drugs during noncompliance periods</header><subsection display-inline="no-display-inline" id="H120DBD4E8EE747AB883933215719AD4E"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">There is hereby imposed on the sale by the manufacturer, producer, or importer of any designated drug during a day described in subsection (b) a tax in an amount such that the applicable percentage is equal to the ratio of—</text><paragraph id="HE39BB84CEF04457CAA7645513D2A1A75"><enum>(1)</enum><text>such tax, divided by</text></paragraph><paragraph id="H1F753EEDD0D14063963897CE2086DDE1"><enum>(2)</enum><text>the sum of such tax and the price for which so sold.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H9ACC33F496834B6AB88BE34242915378"><enum>(b)</enum><header>Noncompliance periods</header><text display-inline="yes-display-inline">A day is described in this subsection with respect to a designated drug if it is a day during one of the following periods:</text><paragraph id="H08427FCD5E46465B9AF730BDB03C2099"><enum>(1)</enum><text>The period beginning on the March 1st (or, in the case of initial price applicability year 2026, the October 2nd) immediately following the date on which such drug is included on the list published under section 1192(a) of the Social Security Act and ending on the earlier of—</text><subparagraph id="id2DEA7386109F489CA2DCCAC05896A827"><enum>(A)</enum><text>the first date on which the manufacturer of such designated drug has in place an agreement described in section 1193(a) of such Act with respect to such drug, or</text></subparagraph><subparagraph id="id42BEE50788C64769A29DD44209409CFC"><enum>(B)</enum><text>the date that the Secretary of Health and Human Services has made a determination described in section 1192(c)(1) of such Act with respect to such designated drug.</text></subparagraph></paragraph><paragraph id="H86693FFC927A4049A573AFF9B6FC27AF"><enum>(2)</enum><text>The period beginning on the November 2nd immediately following the March 1st described in paragraph (1) (or, in the case of initial price applicability year 2026, the August 2nd immediately following the October 2nd described in such paragraph) and ending on the earlier of—</text><subparagraph id="idD04AF94FAA2F44F88AD047C61B1BBE82"><enum>(A)</enum><text>the first date on which the manufacturer of such designated drug and the Secretary of Health and Human Services have agreed to a maximum fair price under an agreement described in section 1193(a) of the Social Security Act, or</text></subparagraph><subparagraph id="id74284E65E3B240F18122815D0DC3A75B"><enum>(B)</enum><text>the date that the Secretary of Health and Human Services has made a determination described in section 1192(c)(1) of such Act with respect to such designated drug.</text></subparagraph></paragraph><paragraph id="HE331B0689A0D4794994DC9D5B467ABB7"><enum>(3)</enum><text display-inline="yes-display-inline">In the case of any designated drug which is a selected drug (as defined in section 1192(c) of the Social Security Act) that the Secretary of Health and Human Services has selected for renegotiation under section 1194(f) of such Act, the period beginning on the November 2nd of the year that begins 2 years prior to the first initial price applicability year of the price applicability period for which the maximum fair price established pursuant to such renegotiation applies and ending on the earlier of— </text><subparagraph id="id19FB2AA6F1C34C61A69882FBB708362C"><enum>(A)</enum><text display-inline="yes-display-inline">the first date on which the manufacturer of such designated drug has agreed to a renegotiated maximum fair price under such agreement, or</text></subparagraph><subparagraph id="id4856041BE53940ED9A27E9D258CA2D47"><enum>(B)</enum><text>the date that the Secretary of Health and Human Services has made a determination described in section 1192(c)(1) of such Act with respect to such designated drug.</text></subparagraph></paragraph><paragraph id="HA22D386D03D64457B0B4851DB2F32F0A"><enum>(4)</enum><text display-inline="yes-display-inline">With respect to information that is required to be submitted to the Secretary of Health and Human Services under an agreement described in section 1193(a) of the Social Security Act, the period beginning on the date on which such Secretary certifies that such information is overdue and ending on the date that such information is so submitted. </text></paragraph></subsection><subsection id="idEA82E4B39B054BB296A615A78659DDD9"><enum>(c)</enum><header>Suspension of tax</header><paragraph id="id9D81003C94564F5099965AD1B040AD03"><enum>(1)</enum><header>In general</header><text>A day shall not be taken into account as a day during a period described in subsection (b) if such day is also a day during the period—</text><subparagraph id="idF5A6978E1E99432293A2DBD3139E96CA"><enum>(A)</enum><text>beginning on the first date on which—</text><clause id="idAB2C5D6354004EABBBF1DF2BAB1DF9A9"><enum>(i)</enum><text>the notice of terminations of all applicable agreements of the manufacturer have been received by the Secretary of Health and Human Services, and</text></clause><clause id="idBC018C8DDC7445FFBC20BD095DF41A1E"><enum>(ii)</enum><text>none of the drugs of the manufacturer of the designated drug are covered by an agreement under section 1860D-14A or 1860D-14C of the Social Security Act, and </text></clause></subparagraph><subparagraph id="idDC190424D9CF4273B7266E9A5DD2B6D6" commented="no"><enum>(B)</enum><text>ending on the last day of February following the earlier of—</text><clause commented="no" id="idAD830B62941E4274847DEF3DF92994FB"><enum>(i)</enum><text>the first day after the date described in subparagraph (A) on which the manufacturer enters into any subsequent applicable agreement, or </text></clause><clause commented="no" id="id736DB08D2148427D9B559961C0612436"><enum>(ii)</enum><text>the first date any drug of the manufacturer of the designated drug is covered by an agreement under section 1860D-14A or 1860D-14C of the Social Security Act.</text></clause></subparagraph></paragraph><paragraph id="id1FA0CB6CF275482491E24D724EC346EA"><enum>(2)</enum><header>Applicable agreement</header><text>For purposes of this subsection, the term <term>applicable agreement</term> means the following:</text><subparagraph id="idDF008979B51C43E285609EF003CE245A"><enum>(A)</enum><text>An agreement under—</text><clause id="id590D954AD4DB49F5A49EDCF14430C873"><enum>(i)</enum><text>the Medicare coverage gap discount program under section 1860D-14A of the Social Security Act, or </text></clause><clause id="idE013D9EDB6904EADA82CF4B0639A361F"><enum>(ii)</enum><text>the manufacturer discount program under section 1860D-14C of such Act.</text></clause></subparagraph><subparagraph id="id25B79C1AB48E4ECEB6AB58D11619F1AF"><enum>(B)</enum><text>A rebate agreement described in section 1927(b) of such Act. </text></subparagraph></paragraph></subsection><subsection commented="no" id="H643D321FD52244EAB7F9C65970FD40AF"><enum>(d)</enum><header>Applicable percentage</header><text>For purposes of this section, the term <term>applicable percentage</term> means—</text><paragraph commented="no" id="H83A401FB2F834BE89A879614095B5151"><enum>(1)</enum><text>in the case of sales of a designated drug during the first 90 days described in subsection (b) with respect to such drug, 65 percent,</text></paragraph><paragraph commented="no" id="HBB30C2454FB2405B855029C92942AC36"><enum>(2)</enum><text>in the case of sales of such drug during the 91st day through the 180th day described in subsection (b) with respect to such drug, 75 percent,</text></paragraph><paragraph id="HD2EFF973B1EF4C95AA0AD73511585B83"><enum>(3)</enum><text>in the case of sales of such drug during the 181st day through the 270th day described in subsection (b) with respect to such drug, 85 percent, and</text></paragraph><paragraph id="H1C3FE5EF48CA49D5B05ED2A89E1E5782"><enum>(4)</enum><text>in the case of sales of such drug during any subsequent day, 95 percent.</text></paragraph></subsection><subsection id="H5205B397DF0541589CAB6DA3459A38EE"><enum>(e)</enum><header>Definitions</header><text>For purposes of this section—</text><paragraph id="idBE9ADF4E49AC41BB8EBE4F37B7117719"><enum>(1)</enum><header>Designated drug</header><text>The term <term>designated drug</term> means any negotiation-eligible drug (as defined in section 1192(d) of the Social Security Act) included on the list published under section 1192(a) of such Act which is manufactured or produced in the United States or entered into the United States for consumption, use, or warehousing.</text></paragraph><paragraph id="HB6FBE42B8D6141D5BA483EDFC4D499A8"><enum>(2)</enum><header>United States</header><text>The term <term>United States</term> has the meaning given such term by section 4612(a)(4).</text></paragraph><paragraph id="HA3B4D577CD7C4C7B89BBBCA0956CA48C"><enum>(3)</enum><header>Other terms</header><text display-inline="yes-display-inline">The terms <term>initial price applicability year</term>, <term>price applicability period</term>, and <term>maximum fair price</term> have the meaning given such terms in section 1191 of the Social Security Act.</text></paragraph></subsection><subsection commented="no" id="H8115E282E96847CAAA48DA42E38E7C1D"><enum>(f)</enum><header>Special rules</header><paragraph id="H7FA404936ACB423C92CF7ECF8283B3EF"><enum>(1)</enum><header>Coordination with rules for possessions of the United States</header><text>Rules similar to the rules of paragraphs (2) and (4) of section 4132(c) shall apply for purposes of this section.</text></paragraph><paragraph commented="no" id="idBEA1C608089D4D03B95E19AA7F826116"><enum>(2)</enum><header>Anti-Abuse rule</header><text display-inline="yes-display-inline">In the case of a sale which was timed for the purpose of avoiding the tax imposed by this section, the Secretary may treat such sale as occurring during a day described in subsection (b).</text></paragraph></subsection><subsection commented="no" id="idABEDCFC0E9F94835B6BD958078C5363A"><enum>(g)</enum><header>Exports</header><text>Rules similar to the rules of section 4662(e) (other than section 4662(e)(2)(A)(ii)(II)) shall apply for purposes of this chapter. </text></subsection><subsection commented="no" id="id8461E9263DBB44FF97BD75D52DDCCFBB"><enum>(h)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Secretary shall prescribe such regulations and other guidance as may be necessary to carry out this section.</text></subsection></section></chapter><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H578EFB5453914FD7A3A265CE342B2C3D"><enum>(b)</enum><header>No deduction for excise tax payments</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/275">Section 275(a)(6)</external-xref> of the Internal Revenue Code of 1986 is amended by inserting <quote>50A,</quote> after <quote>46,</quote>.</text></subsection><subsection id="HDC82734E2771452584DEA55710D67035"><enum>(c)</enum><header>Clerical amendment</header><text>The table of chapters for subtitle D of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id5593275F1DEA48DFA46D3D63F3D23F13" changed="added" reported-display-style="italic"><toc changed="added" reported-display-style="italic"><toc-entry level="chapter" bold="off">Chapter 50A—Designated Drugs</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HF87EF6DFB98D4D1992F5C5C843DAC038"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to sales after the date of the enactment of this Act. </text></subsection></section><section id="HEB04D8DF07B449BF99A8C16B46F848C5" commented="no"><enum>11004.</enum><header>Funding</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated to the Centers for Medicare & Medicaid Services, out of any money in the Treasury not otherwise appropriated, $3,000,000,000 for fiscal year 2022, to remain available until expended, to carry out the provisions of, including the amendments made by, this part. </text></section></part><part id="H7E1533DCE14E41889A3BF2818551F520"><enum>2</enum><header>Prescription Drug Inflation Rebates</header><section id="HEFB41F08557840FD8800F92215EAAB0B" commented="no"><enum>11101.</enum><header>Medicare part B rebate by manufacturers</header><subsection id="H5AD4959E2FAA44F7A4B2C3BD9BEF2877"><enum>(a)</enum><header>In general</header><text>Section 1847A of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-3a">42 U.S.C. 1395w–3a</external-xref>) is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) the following subsection:</text><quoted-block display-inline="no-display-inline" id="H6D56903524AF491DBA530D4AB5B5AAD3" style="OLC" changed="added" reported-display-style="italic"><subsection id="H5C13B22A4E4E4A618752E2882BF5E1C6"><enum>(i)</enum><header>Rebate by manufacturers for single source drugs and biologicals with prices increasing faster than inflation</header><paragraph id="HE0D74AF1C72A46FFA36744017F373096"><enum>(1)</enum><header>Requirements</header><subparagraph display-inline="no-display-inline" id="HA3BF4C58207E4EF3BD1ACB00180F3919"><enum>(A)</enum><header>Secretarial provision of information</header><text display-inline="yes-display-inline">Not later than 6 months after the end of each calendar quarter beginning on or after January 1, 2023, the Secretary shall, for each part B rebatable drug, report to each manufacturer of such part B rebatable drug the following for such calendar quarter:</text><clause id="H6CBEC45CFF5443A0AB2B317BBCF968B2"><enum>(i)</enum><text display-inline="yes-display-inline">Information on the total number of units of the billing and payment code described in subparagraph (A)(i) of paragraph (3) with respect to such drug and calendar quarter.</text></clause><clause id="H33E7C16054F0455EB92BFDC2E1F154BA"><enum>(ii)</enum><text>Information on the amount (if any) of the excess average sales price increase described in subparagraph (A)(ii) of such paragraph for such drug and calendar quarter.</text></clause><clause id="H4049B7B8AF3A47F4A2F4C4A7C8D46820"><enum>(iii)</enum><text>The rebate amount specified under such paragraph for such part B rebatable drug and calendar quarter.</text></clause></subparagraph><subparagraph id="H9FC4505DC9194739930965898D4CB505"><enum>(B)</enum><header>Manufacturer requirement</header><text display-inline="yes-display-inline">For each calendar quarter beginning on or after January 1, 2023, the manufacturer of a part B rebatable drug shall, for such drug, not later than 30 days after the date of receipt from the Secretary of the information described in subparagraph (A) for such calendar quarter, provide to the Secretary a rebate that is equal to the amount specified in paragraph (3) for such drug for such calendar quarter. </text></subparagraph><subparagraph id="id73d0d0c9e20c4f439a191c6e07df4f0c"><enum>(C)</enum><header>Transition rule for reporting</header><text>The Secretary may, for each part B rebatable drug, delay the timeframe for reporting the information described in subparagraph (A) for calendar quarters beginning in 2023 and 2024 until not later than September 30, 2025. </text></subparagraph></paragraph><paragraph commented="no" id="H2FCD0AF1597A4CA7B684CCD1C40F86C3"><enum>(2)</enum><header>Part B rebatable drug defined</header><subparagraph id="H516EAF81A71847188EDDA8FCE1DCCC99"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In this subsection, the term <term>part B rebatable drug</term> means a single source drug or biological (as defined in subparagraph (D) of subsection (c)(6)), including a biosimilar biological product (as defined in subparagraph (H) of such subsection) but excluding a qualifying biosimilar biological product (as defined in subsection (b)(8)(B)(iii)), for which payment is made under this part, except such term shall not include such a drug or biological—</text><clause commented="no" id="HB8445FA2AE924FED955D0CDAD5C4C79A"><enum>(i)</enum><text display-inline="yes-display-inline">if, as determined by the Secretary, the average total allowed charges for such drug or biological under this part for a year per individual that uses such a drug or biological are less than, subject to subparagraph (B), $100; or</text></clause><clause id="H749B9D511970476AA27E176D2FEBF9E0" commented="no"><enum>(ii)</enum><text>that is a vaccine described in subparagraph (A) or (B) of section 1861(s)(10).</text></clause></subparagraph><subparagraph commented="no" id="H80EAAF738A1F4443B25123039E6CE49F"><enum>(B)</enum><header>Increase</header><text>The dollar amount applied under subparagraph (A)(i)—</text><clause commented="no" id="H6E4815F8408642D3A373BC371F9284C6"><enum>(i)</enum><text display-inline="yes-display-inline">for 2024, shall be the dollar amount specified under such subparagraph for 2023, increased by the percentage increase in the consumer price index for all urban consumers (United States city average) for the 12-month period ending with June of the previous year; and</text></clause><clause commented="no" id="H3AD96E38382B490694D88126E8E73664"><enum>(ii)</enum><text display-inline="yes-display-inline">for a subsequent year, shall be the dollar amount specified in this clause (or clause (i)) for the previous year (without application of subparagraph (C)), increased by the percentage increase in the consumer price index for all urban consumers (United States city average) for the 12-month period ending with June of the previous year.</text></clause></subparagraph><subparagraph id="HDE3A85E5A63B4C2BAC3387F0A7315495"><enum>(C)</enum><header>Rounding</header><text>Any dollar amount determined under subparagraph (B) that is not a multiple of $10 shall be rounded to the nearest multiple of $10.</text></subparagraph></paragraph><paragraph commented="no" id="HC46EC212C44543189D68DBC9EF36B954"><enum>(3)</enum><header>Rebate amount</header><subparagraph commented="no" id="H657DB987CE4F4647A6487F947DB6FFBD"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of paragraph (1), the amount specified in this paragraph for a part B rebatable drug assigned to a billing and payment code for a calendar quarter is, subject to subparagraphs (B) and (G) and paragraph (4), the estimated amount equal to the product of—</text><clause commented="no" id="H5A441C88B2C74A6D85ABBD88B2D27160"><enum>(i)</enum><text display-inline="yes-display-inline">the total number of units determined under subparagraph (B) for the billing and payment code of such drug; and</text></clause><clause commented="no" id="H334566E4201845A1966049A638CA7A9B"><enum>(ii)</enum><text>the amount (if any) by which—</text><subclause commented="no" id="H151C037BC43641A49DC4AA8A0803050E"><enum>(I)</enum><text display-inline="yes-display-inline">the amount equal to—</text><item id="H00E30257F6E9499EB412CE03374E3432"><enum>(aa)</enum><text>in the case of a part B rebatable drug described in paragraph (1)(B) of subsection (b), 106 percent of the amount determined under paragraph (4) of such section for such drug during the calendar quarter; or</text></item><item id="H9579AF9D4014424BA12847E457D2B502"><enum>(bb)</enum><text>in the case of a part B rebatable drug described in paragraph (1)(C) of such subsection, the payment amount under such paragraph for such drug during the calendar quarter; exceeds </text></item></subclause><subclause commented="no" id="HF2DEB488D56B47099970B357D2B74117"><enum>(II)</enum><text display-inline="yes-display-inline">the inflation-adjusted payment amount determined under subparagraph (C) for such part B rebatable drug during the calendar quarter.</text></subclause></clause></subparagraph><subparagraph id="H298E5C0FB3C546A495B13D827D586651"><enum>(B)</enum><header>Total number of units</header><text>For purposes of subparagraph (A)(i), the total number of units for the billing and payment code with respect to a part B rebatable drug furnished during a calendar quarter described in subparagraph (A) is equal to—</text><clause id="HD148C46ECB05453DBAB3C2E70EE7CCEF"><enum>(i)</enum><text display-inline="yes-display-inline">the number of units for the billing and payment code of such drug furnished during such calendar quarter, minus</text></clause><clause id="idC334D04035CB4C89A6F3DB3640D42E4E" commented="no"><enum>(ii)</enum><text>the number of units for such billing and payment code of such drug furnished during such calendar quarter—</text><subclause commented="no" id="id3EC5DCD9E70A4F119765242EE19C632E"><enum>(I)</enum><text>with respect to which the manufacturer provides a discount under the program under section 340B of the Public Health Service Act or a rebate under section 1927; or</text></subclause><subclause commented="no" id="idCAE2FBAFF72A4B2BBA8B05F0E4BC5F33"><enum>(II)</enum><text>that are packaged into the payment amount for an item or service and are not separately payable.</text></subclause></clause></subparagraph><subparagraph id="HD566AF9173E44A24AC6316A7F384F5BB"><enum>(C)</enum><header>Determination of inflation-adjusted payment amount</header><text display-inline="yes-display-inline">The inflation-adjusted payment amount determined under this subparagraph for a part B rebatable drug for a calendar quarter is—</text><clause id="HF15F1D1E051D43A9B2BC38EB2101044E"><enum>(i)</enum><text display-inline="yes-display-inline">the payment amount for the billing and payment code for such drug in the payment amount benchmark quarter (as defined in subparagraph (D)); increased by</text></clause><clause id="H93F87DE106844515A9F2A05ABDF38505"><enum>(ii)</enum><text>the percentage by which the rebate period CPI–U (as defined in subparagraph (F)) for the calendar quarter exceeds the benchmark period CPI–U (as defined in subparagraph (E)).</text></clause></subparagraph><subparagraph id="H86A2CEB801214041BA3C294D676E7D69"><enum>(D)</enum><header>Payment amount benchmark quarter</header><text display-inline="yes-display-inline">The term <term>payment amount benchmark quarter</term> means the calendar quarter beginning July 1, 2021.</text></subparagraph><subparagraph id="HDAD19F8E5E0048FB9DFB159F529C5A10"><enum>(E)</enum><header>Benchmark period CPI–U</header><text display-inline="yes-display-inline">The term <term>benchmark period CPI–U</term> means the consumer price index for all urban consumers (United States city average) for January 2021.</text></subparagraph><subparagraph id="H3FCAFF1E4E0C4ADCA544F7CF91457566"><enum>(F)</enum><header>Rebate period CPI–U</header><text display-inline="yes-display-inline">The term <term>rebate period CPI–U</term> means, with respect to a calendar quarter described in subparagraph (C), the greater of the benchmark period CPI–U and the consumer price index for all urban consumers (United States city average) for the first month of the calendar quarter that is two calendar quarters prior to such described calendar quarter.</text></subparagraph><subparagraph id="H59D6E99DEE3C49B78242209FC47448F5"><enum>(G)</enum><header>Reduction or waiver for shortages and severe supply chain disruptions</header><text display-inline="yes-display-inline">The Secretary shall reduce or waive the amount under subparagraph (A) with respect to a part B rebatable drug and a calendar quarter—</text><clause id="id96148CF98CE5480FA3A8DAD82C270B58"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of a part B rebatable drug that is described as currently in shortage on the shortage list in effect under section 506E of the Federal Food, Drug, and Cosmetic Act at any point during the calendar quarter; or</text></clause><clause id="id90D76E1EFF5E447387DA76B58C3C79D0"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of a biosimilar biological product, when the Secretary determines there is a severe supply chain disruption during the calendar quarter, such as that caused by a natural disaster or other unique or unexpected event.</text></clause></subparagraph></paragraph><paragraph id="H7C319C9F6D9D4EF88E1CE7CDA330B339"><enum>(4)</enum><header>Special treatment of certain drugs and exemption</header><subparagraph id="H6EFCD73D63914A45B5F96A2FE96A3F48"><enum>(A)</enum><header>Subsequently approved drugs</header><text display-inline="yes-display-inline">In the case of a part B rebatable drug first approved or licensed by the Food and Drug Administration after December 1, 2020, clause (i) of paragraph (3)(C) shall be applied as if the term <term>payment amount benchmark quarter</term> were defined under paragraph (3)(D) as the third full calendar quarter after the day on which the drug was first marketed and clause (ii) of paragraph (3)(C) shall be applied as if the term <term>benchmark period CPI–U</term> were defined under paragraph (3)(E) as if the reference to <quote>January 2021</quote> under such paragraph were a reference to <quote>the first month of the first full calendar quarter after the day on which the drug was first marketed</quote>.</text></subparagraph><subparagraph commented="no" id="H4CC021C69D654B21A48F122E94939EDB"><enum>(B)</enum><header>Timeline for provision of rebates for subsequently approved drugs</header><text display-inline="yes-display-inline">In the case of a part B rebatable drug first approved or licensed by the Food and Drug Administration after December 1, 2020, paragraph (1)(B) shall be applied as if the reference to <quote>January 1, 2023</quote> under such paragraph were a reference to <quote>the later of the 6th full calendar quarter after the day on which the drug was first marketed or January 1, 2023</quote>.</text></subparagraph><subparagraph id="HC024CEDF043E4D0A8EFB9F45CF336165"><enum>(C)</enum><header>Selected drugs</header><text display-inline="yes-display-inline">In the case of a part B rebatable drug that is a selected drug (as defined in section 1192(c)) with respect to a price applicability period (as defined in section 1191(b)(2)), in the case such drug is no longer considered to be a selected drug under section 1192(c), for each applicable period (as defined under subsection (g)(7)) beginning after the price applicability period with respect to such drug, clause (i) of paragraph (3)(C) shall be applied as if the term <term>payment amount benchmark quarter</term> were defined under paragraph (3)(D) as the calendar quarter beginning January 1 of the last year during such price applicability period with respect to such selected drug and clause (ii) of paragraph (3)(C) shall be applied as if the term <term>benchmark period CPI–U</term> were defined under paragraph (3)(E) as if the reference to <quote>January 2021</quote> under such paragraph were a reference to <quote>the July of the year preceding such last year</quote>.</text></subparagraph></paragraph><paragraph commented="no" id="H54CC519F642A41D190713ADA041C27EA"><enum>(5)</enum><header>Application to beneficiary coinsurance</header><text display-inline="yes-display-inline">In the case of a part B rebatable drug furnished on or after April 1, 2023, if the payment amount described in paragraph (3)(A)(ii)(I) (or, in the case of a part B rebatable drug that is a selected drug (as defined in section 1192(c)), the payment amount described in subsection (b)(1)(B) for such drug) for a calendar quarter exceeds the inflation adjusted payment for such quarter—</text><subparagraph id="HB2BCA309571C49AFACA0D86D6C314A61"><enum>(A)</enum><text>in computing the amount of any coinsurance applicable under this part to an individual to whom such drug is furnished, the computation of such coinsurance shall be equal to 20 percent of the inflation-adjusted payment amount determined under paragraph (3)(C) for such part B rebatable drug; and</text></subparagraph><subparagraph id="H119AF59BC50C4CDA81C19F496A9A264C"><enum>(B)</enum><text display-inline="yes-display-inline">the amount of such coinsurance for such calendar quarter, as computed under subparagraph (A), shall be applied as a percent, as determined by the Secretary, to the payment amount that would otherwise apply under subparagraphs (B) or (C) of subsection (b)(1).</text></subparagraph></paragraph><paragraph id="HD57C24E6602D4CF49083FC5666ACB170"><enum>(6)</enum><header>Rebate deposits</header><text>Amounts paid as rebates under paragraph (1)(B) shall be deposited into the Federal Supplementary Medical Insurance Trust Fund established under section 1841.</text></paragraph><paragraph id="HA3DC4CBA031E4C7884DB9B8FFA4261C5"><enum>(7)</enum><header>Civil money penalty</header><text display-inline="yes-display-inline">If a manufacturer of a part B rebatable drug has failed to comply with the requirements under paragraph (1)(B) for such drug for a calendar quarter, the manufacturer shall be subject to, in accordance with a process established by the Secretary pursuant to regulations, a civil money penalty in an amount equal to at least 125 percent of the amount specified in paragraph (3) for such drug for such calendar quarter. The provisions of section 1128A (other than subsections (a) (with respect to amounts of penalties or additional assessments) and (b)) shall apply to a civil money penalty under this paragraph in the same manner as such provisions apply to a penalty or proceeding under section 1128A(a).</text></paragraph><paragraph id="id6320A5BA126F458AB97A77BC4017B217"><enum>(8)</enum><header>Limitation on administrative or judicial review</header><text display-inline="yes-display-inline">There shall be no administrative or judicial review of any of the following:</text><subparagraph id="idAB93D61B593543928860A621DA0A486C"><enum>(A)</enum><text>The determination of units under this subsection.</text></subparagraph><subparagraph id="id6BE63931C6464A67AC56F82658816C06"><enum>(B)</enum><text>The determination of whether a drug is a part B rebatable drug under this subsection.</text></subparagraph><subparagraph id="id1E98BFC497A94081B097D3D3DC8DBD29"><enum>(C)</enum><text>The calculation of the rebate amount under this subsection.</text></subparagraph><subparagraph id="id21716E41DA8D425B9F2577DD7709EAA9"><enum>(D)</enum><text>The computation of coinsurance under paragraph (5) of this subsection.</text></subparagraph><subparagraph id="idE4E1645A488443F0A99BF883B5016290"><enum>(E)</enum><text>The computation of amounts paid under section 1833(a)(1)(EE).</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HBEAB3656FBB7456289013B43B1AB4BBD"><enum>(b)</enum><header>Amounts payable; cost-Sharing</header><text display-inline="yes-display-inline">Section 1833 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395l">42 U.S.C. 1395l</external-xref>) is amended—</text><paragraph id="H27D2A4BDA1E9471592FF135514ED4269"><enum>(1)</enum><text>in subsection (a)(1)—</text><subparagraph id="H45A6CA7B24F7461296F9431A7543A139" display-inline="no-display-inline"><enum>(A)</enum><text>in subparagraph (G), by inserting <quote>, subject to subsection (i)(9),</quote> after <quote>the amounts paid</quote>; </text></subparagraph><subparagraph id="H3D9144A46910411BAF44C10D1C950157"><enum>(B)</enum><text>in subparagraph (S), by striking <quote>with respect to</quote> and inserting <quote>subject to subparagraph (EE), with respect to</quote>;</text></subparagraph><subparagraph id="HCD62C1733ED346A6B4C3D5F67A275E73"><enum>(C)</enum><text>by striking <quote>and (DD)</quote> and inserting <quote>(DD)</quote>; and</text></subparagraph><subparagraph id="H348869C55FAE482F8059506806935695"><enum>(D)</enum><text>by inserting before the semicolon at the end the following: <quote>, and (EE) with respect to a part B rebatable drug (as defined in paragraph (2) of section 1847A(i)) furnished on or after April 1, 2023, for which the payment amount for a calendar quarter under paragraph (3)(A)(ii)(I) of such section (or, in the case of a part B rebatable drug that is a selected drug (as defined in section 1192(c) for which, the payment amount described in section 1847A(b)(1)(B)) for such drug for such quarter exceeds the inflation-adjusted payment under paragraph (3)(A)(ii)(II) of such section for such quarter, the amounts paid shall be equal to the percent of the payment amount under paragraph (3)(A)(ii)(I) of such section or section 1847A(b)(1)(B), as applicable, that equals the difference between (i) 100 percent, and (ii) the percent applied under section 1847A(i)(5)(B)</quote>; </text></subparagraph></paragraph><paragraph id="H4B5619A509BB40B4B20020B23BD69AF2"><enum>(2)</enum><text>in subsection (i), by adding at the end the following new paragraph:</text><quoted-block style="OLC" id="H8F51BC5CD29B4F88920C5FAC748BEBE3" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="HED1144B42A964B8BB2C15DD64C639A84" indent="up1"><enum>(9)</enum><text display-inline="yes-display-inline">In the case of a part B rebatable drug (as defined in paragraph (2) of section 1847A(i)) for which payment under this subsection is not packaged into a payment for a service furnished on or after April 1, 2023, under the revised payment system under this subsection, in lieu of calculation of coinsurance and the amount of payment otherwise applicable under this subsection, the provisions of section 1847A(i)(5) and paragraph (1)(EE) of subsection (a), shall, as determined appropriate by the Secretary, apply under this subsection in the same manner as such provisions of section 1847A(i)(5) and subsection (a) apply under such section and subsection.</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph id="HDEC09A5DE0B44137BB3E281175B45B23"><enum>(3)</enum><text>in subsection (t)(8), by adding at the end the following new subparagraph:</text><quoted-block style="OLC" id="HEB5C229F429842C88402143628BAABB6" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subparagraph id="H235B1663A3CC45E49D33599FB01A6524"><enum>(F)</enum><header>Part B rebatable drugs</header><text display-inline="yes-display-inline">In the case of a part B rebatable drug (as defined in paragraph (2) of section 1847A(i), except if such drug does not have a copayment amount as a result of application of subparagraph (E)) for which payment under this part is not packaged into a payment for a covered OPD service (or group of services) furnished on or after April 1, 2023, and the payment for such drug under this subsection is the same as the amount for a calendar quarter under paragraph (3)(A)(ii)(I) of section 1847A(i), under the system under this subsection, in lieu of calculation of the copayment amount and the amount of payment otherwise applicable under this subsection (other than the application of the limitation described in subparagraph (C)), the provisions of section 1847A(i)(5) and paragraph (1)(EE) of subsection (a), shall, as determined appropriate by the Secretary, apply under this subsection in the same manner as such provisions of section 1847A(i)(5) and subsection (a) apply under such section and subsection.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H9E84B3A42D71462AAD0836102BEE36C3"><enum>(c)</enum><header>Conforming amendments</header><paragraph id="H23FCA8E5633E41B1832D5B10516A7A52"><enum>(1)</enum><header>To part B ASP calculation</header><text display-inline="yes-display-inline">Section 1847A(c)(3) of the Social Security Act (42 U.S.C. 1395w–3a(c)(3)) is amended by inserting <quote>subsection (i) or</quote> before <quote>section 1927</quote>.</text></paragraph><paragraph id="HDFF7F5EA98924385A4C4DA6296681BE8" commented="no"><enum>(2)</enum><header>Excluding part B drug inflation rebate from best price</header><text display-inline="yes-display-inline">Section 1927(c)(1)(C)(ii)(I) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-8">42 U.S.C. 1396r–8(c)(1)(C)(ii)(I)</external-xref>) is amended by inserting <quote>or section 1847A(i)</quote> after <quote>this section</quote>.</text></paragraph><paragraph id="H9BE442E6C8B2428D86E63E50A59B3C11"><enum>(3)</enum><header>Coordination with Medicaid rebate information disclosure</header><text display-inline="yes-display-inline">Section 1927(b)(3)(D)(i) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-8">42 U.S.C. 1396r–8(b)(3)(D)(i)</external-xref>) is amended by inserting <quote>and the rebate</quote> after <quote>the payment amount</quote>.</text></paragraph><paragraph id="HC647C580E3BD45E0A9D582B35F109A64"><enum>(4)</enum><header>Excluding part B drug inflation rebates from average manufacturer price</header><text display-inline="yes-display-inline">Section 1927(k)(1)(B)(i) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-8">42 U.S.C. 1396r–8(k)(1)(B)(i)</external-xref>), as amended by <external-xref legal-doc="usc" parsable-cite="usc/26/11001">section 11001(b)(3),</external-xref> is amended—</text><subparagraph id="H43AEE351C703485A920EE169C994FA2D"><enum>(A)</enum><text display-inline="yes-display-inline">in subclause (V), by striking <quote>and</quote> at the end;</text></subparagraph><subparagraph id="H4CE54B22A6E641A49E37CDE925B34B5C"><enum>(B)</enum><text>in subclause (VI), by striking the period at the end and inserting a semicolon; and</text></subparagraph><subparagraph id="H89B353D14CEC48F1A1FB129E9AE74E13"><enum>(C)</enum><text display-inline="yes-display-inline">by adding at the end the following new subclause:</text><quoted-block style="OLC" id="HEEB9E3734C5646A18A68B92127D0AEDD" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subclause id="H220C091B34AD43799F2D8481673892BD"><enum>(VII)</enum><text display-inline="yes-display-inline">rebates paid by manufacturers under section 1847A(i); and</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="H40A537F618B9402C9E65CCAB9ADD1B4F"><enum>(d)</enum><header>Funding</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there are appropriated to the Centers for Medicare & Medicaid Services, out of any money in the Treasury not otherwise appropriated, $80,000,000 for fiscal year 2022, including $12,500,000 to carry out the provisions of, including the amendments made by, this section in fiscal year 2022, and $7,500,000 to carry out the provisions of, including the amendments made by, this section in each of fiscal years 2023 through 2031, to remain available until expended.</text></subsection></section><section id="HA1BD882F868D4EE8ADDE7B3A62FA2E8D" section-type="subsequent-section" commented="no"><enum>11102.</enum><header>Medicare part D rebate by manufacturers</header><subsection id="H201AC2F32C584DB4BB01926CAE1AA8C7"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Part D of title XVIII of the Social Security Act is amended by inserting after section 1860D–14A (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-114a">42 U.S.C. 1395w–114a</external-xref>) the following new section:</text><quoted-block display-inline="no-display-inline" id="HD383C4C9EEE341AFB3A2496B4B6F7A9E" style="OLC" changed="added" reported-display-style="italic"><section id="H55742788CEE344DAB153FFBED09EBDE9"><enum>1860D–14B.</enum><header>Manufacturer rebate for certain drugs with prices increasing faster than inflation</header><subsection id="HF3055117007042739A116DC422B11F45"><enum>(a)</enum><header>Requirements</header><paragraph id="H2C67591F2A5A4B83A637EBF83E95EDF9" display-inline="no-display-inline"><enum>(1)</enum><header>Secretarial provision of information</header><text display-inline="yes-display-inline">Not later than 9 months after the end of each applicable period (as defined in subsection (g)(7)), subject to paragraph (3), the Secretary shall, for each part D rebatable drug, report to each manufacturer of such part D rebatable drug the following for such period:</text><subparagraph id="H85B2D57C666B4CA8802C2A50B173A373"><enum>(A)</enum><text>The amount (if any) of the excess annual manufacturer price increase described in subsection (b)(1)(A)(ii) for each dosage form and strength with respect to such drug and period.</text></subparagraph><subparagraph id="H8737DE2A1871465A92056545F5C02FC0"><enum>(B)</enum><text display-inline="yes-display-inline">The rebate amount specified under subsection (b) for each dosage form and strength with respect to such drug and period.</text></subparagraph></paragraph><paragraph id="H073ECB4052A746A493D9681BC4382ABC"><enum>(2)</enum><header>Manufacturer requirements</header><text display-inline="yes-display-inline">For each applicable period, the manufacturer of a part D rebatable drug, for each dosage form and strength with respect to such drug, not later than 30 days after the date of receipt from the Secretary of the information described in paragraph (1) for such period, shall provide to the Secretary a rebate that is equal to the amount specified in subsection (b) for such dosage form and strength with respect to such drug for such period.</text></paragraph><paragraph id="H9D20D4A6A63540398FEF0CC7994F9AC0"><enum>(3)</enum><header>Transition rule for reporting</header><text display-inline="yes-display-inline">The Secretary may, for each rebatable covered part D drug, delay the timeframe for reporting the information and rebate amount described in subparagraphs (A) and (B) of such paragraph for the applicable periods beginning October 1, 2022, and October 1, 2023, until not later than December 31, 2025.</text></paragraph></subsection><subsection commented="no" id="H37336598B792448581BFE85218A5388D"><enum>(b)</enum><header>Rebate amount</header><paragraph commented="no" id="HA8E10A26D54B401FAE6065DF5B9F244E"><enum>(1)</enum><header>In general</header><subparagraph id="H32D3A143D958439BBFE52109C5250A07"><enum>(A)</enum><header>Calculation</header><text display-inline="yes-display-inline">For purposes of this section, the amount specified in this subsection for a dosage form and strength with respect to a part D rebatable drug and applicable period is, subject to subparagraph (C), paragraph (5)(B), and paragraph (6), the estimated amount equal to the product of—</text><clause id="HFB7B01D938C942258F248B29C2871410" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">subject to subparagraph (B) of this paragraph, the total number of units of such dosage form and strength for each rebatable covered part D drug dispensed under this part during the applicable period; and</text></clause><clause id="H8FB7392B3B95465AAC965B65118D064B" commented="no"><enum>(ii)</enum><text>the amount (if any) by which—</text><subclause id="H65CB29DC8BA6400B9701FF7D8624C87D" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">the annual manufacturer price (as determined in paragraph (2)) paid for such dosage form and strength with respect to such part D rebatable drug for the period; exceeds</text></subclause><subclause id="HDBE22E622DBD41D4A7163F4A1F406194" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">the inflation-adjusted payment amount determined under paragraph (3) for such dosage form and strength with respect to such part D rebatable drug for the period.</text></subclause></clause></subparagraph><subparagraph commented="no" id="HF3D01F471F4D4E668218EF7F5BA0288D"><enum>(B)</enum><header>Excluded units</header><text display-inline="yes-display-inline">For purposes of subparagraph (A)(i), beginning with plan year 2026, the Secretary shall exclude from the total number of units for a dosage form and strength with respect to a part D rebatable drug, with respect to an applicable period, units of each dosage form and strength of such part D rebatable drug for which the manufacturer provides a discount under the program under section 340B of the Public Health Service Act.</text></subparagraph><subparagraph id="iddd527ae1a76847ad8ce7f620182af33e"><enum>(C)</enum><header>Reduction or waiver for shortages and severe supply chain disruptions</header><text>The Secretary shall reduce or waive the amount under subparagraph (A) with respect to a part D rebatable drug and an applicable period—</text><clause id="ida1f0c18efeee444cb45f696452fb2fea"><enum>(i)</enum><text>in the case of a part D rebatable drug that is described as currently in shortage on the shortage list in effect under section 506E of the Federal Food, Drug, and Cosmetic Act at any point during the applicable period;</text></clause><clause id="idfcf3396deb0d449abefbbf23246f2e5b"><enum>(ii)</enum><text>in the case of a generic part D rebatable drug (described in subsection (g)(1)(C)(ii)) or a biosimilar (defined as a biological product licensed under section 351(k) of the Public Health Service Act), when the Secretary determines there is a severe supply chain disruption during the applicable period, such as that caused by a natural disaster or other unique or unexpected event; and</text></clause><clause id="id336e2f3e24444a12a4681e224f26eb5f"><enum>(iii)</enum><text>in the case of a generic Part D rebatable drug (as so described), if the Secretary determines that without such reduction or waiver, the drug is likely to be described as in shortage on such shortage list during a subsequent applicable period.</text></clause></subparagraph></paragraph><paragraph id="HB5BF27A0ECC345D3825D5BDB1045A71B"><enum>(2)</enum><header>Determination of annual manufacturer price</header><text display-inline="yes-display-inline">The annual manufacturer price determined under this paragraph for a dosage form and strength, with respect to a part D rebatable drug and an applicable period, is the sum of the products of—</text><subparagraph id="H40B2F1639984402FA3709E32351B4D5C"><enum>(A)</enum><text>the average manufacturer price (as defined in subsection (g)(6)) of such dosage form and strength, as calculated for a unit of such drug, with respect to each of the calendar quarters of such period; and</text></subparagraph><subparagraph id="HB6FDCEDAABC94A78B3A70C0822D948CE"><enum>(B)</enum><text>the ratio of—</text><clause id="H1BBC943268424EB9930BF5D4B7AA2D1C"><enum>(i)</enum><text>the total number of units of such dosage form and strength reported under section 1927 with respect to each such calendar quarter of such period; to</text></clause><clause id="HDD55B5F767FB48D8B9CD36F7CC804612"><enum>(ii)</enum><text display-inline="yes-display-inline">the total number of units of such dosage form and strength reported under section 1927 with respect to such period, as determined by the Secretary.</text></clause></subparagraph></paragraph><paragraph id="H871BBAC66EBE4C8785796B8A1DFEB926"><enum>(3)</enum><header>Determination of inflation-adjusted payment amount</header><text display-inline="yes-display-inline">The inflation-adjusted payment amount determined under this paragraph for a dosage form and strength with respect to a part D rebatable drug for an applicable period, subject to paragraph (5), is—</text><subparagraph id="H3F54C3397C594CBBAA751BED9B7778D6"><enum>(A)</enum><text display-inline="yes-display-inline">the benchmark period manufacturer price determined under paragraph (4) for such dosage form and strength with respect to such drug and period; increased by</text></subparagraph><subparagraph id="H3D02D0CB454F461D8974A0EE53D33C7E"><enum>(B)</enum><text>the percentage by which the applicable period CPI–U (as defined in subsection (g)(5)) for the period exceeds the benchmark period CPI–U (as defined in subsection (g)(4)).</text></subparagraph></paragraph><paragraph id="HB1E535C4B92C4992A75774BC1E56648C"><enum>(4)</enum><header>Determination of benchmark period manufacturer price</header><text display-inline="yes-display-inline">The benchmark period manufacturer price determined under this paragraph for a dosage form and strength, with respect to a part D rebatable drug and an applicable period, is the sum of the products of—</text><subparagraph id="H676F7FC2A3E545F1A107D339E7E1BB32"><enum>(A)</enum><text display-inline="yes-display-inline">the average manufacturer price (as defined in subsection (g)(6)) of such dosage form and strength, as calculated for a unit of such drug, with respect to each of the calendar quarters of the payment amount benchmark period (as defined in subsection (g)(3)); and</text></subparagraph><subparagraph id="H41176EA79ACE4BB4BF387AE0E2FF96C6"><enum>(B)</enum><text>the ratio of—</text><clause id="H2B4FA8CC95194DC0A02887C94B9A6E8C"><enum>(i)</enum><text display-inline="yes-display-inline">the total number of units reported under section 1927 of such dosage form and strength with respect to each such calendar quarter of such payment amount benchmark period; to</text></clause><clause id="HDBA6E6442E744E64803A620C462937E9"><enum>(ii)</enum><text display-inline="yes-display-inline">the total number of units reported under section 1927 of such dosage form and strength with respect to such payment amount benchmark period.</text></clause></subparagraph></paragraph><paragraph id="HC0150059E8864A04BC146D19904EC9DF"><enum>(5)</enum><header>Special treatment of certain drugs and exemption</header><subparagraph commented="no" id="HB20D353E8355406295A7FB31F800C71C"><enum>(A)</enum><header>Subsequently approved drugs</header><text display-inline="yes-display-inline">In the case of a part D rebatable drug first approved or licensed by the Food and Drug Administration after October 1, 2021, subparagraphs (A) and (B) of paragraph (4) shall be applied as if the term <term>payment amount benchmark period</term> were defined under subsection (g)(3) as the first calendar year beginning after the day on which the drug was first marketed and subparagraph (B) of paragraph (3) shall be applied as if the term <term>benchmark period CPI–U</term> were defined under subsection (g)(4) as if the reference to <quote>January 2021</quote> under such subsection were a reference to <quote>January of the first year beginning after the date on which the drug was first marketed</quote>.</text></subparagraph><subparagraph commented="no" id="HBD6052520CBF4B659682277D4F8233DA"><enum>(B)</enum><header>Treatment of new formulations</header><clause commented="no" id="HA04712749A4544B48E33113BC992077A"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of a part D rebatable drug that is a line extension of a part D rebatable drug that is an oral solid dosage form, the Secretary shall establish a formula for determining the rebate amount under paragraph (1) and the inflation adjusted payment amount under paragraph (3) with respect to such part D rebatable drug and an applicable period, consistent with the formula applied under subsection (c)(2)(C) of section 1927 for determining a rebate obligation for a rebate period under such section.</text></clause><clause commented="no" id="H4EDBE95AA10F4648937B93F36A07AEA5"><enum>(ii)</enum><header>Line extension defined</header><text>In this subparagraph, the term <term>line extension</term> means, with respect to a part D rebatable drug, a new formulation of the drug, such as an extended release formulation, but does not include an abuse-deterrent formulation of the drug (as determined by the Secretary), regardless of whether such abuse-deterrent formulation is an extended release formulation.</text></clause></subparagraph><subparagraph id="HB7117A3169B448E28F0DF8396C229625"><enum>(C)</enum><header>Selected drugs</header><text display-inline="yes-display-inline">In the case of a part D rebatable drug that is a selected drug (as defined in section 1192(c)) with respect to a price applicability period (as defined in section 1191(b)(2)), in the case such drug is no longer considered to be a selected drug under section 1192(c), for each applicable period (as defined under subsection (g)(7)) beginning after the price applicability period with respect to such drug, subparagraphs (A) and (B) of paragraph (4) shall be applied as if the term <term>payment amount benchmark period</term> were defined under subsection (g)(3) as the last year beginning during such price applicability period with respect to such selected drug and subparagraph (B) of paragraph (3) shall be applied as if the term <term>benchmark period CPI–U</term> were defined under subsection (g)(4) as if the reference to <quote>January 2021</quote> under such subsection were a reference to <quote>January of the last year beginning during such price applicability period with respect to such drug</quote>.</text></subparagraph></paragraph><paragraph id="id0503B8AD4EFA4F08862F4978556A084C"><enum>(6)</enum><header>Reconciliation in case of revised information</header><text>The Secretary shall provide for a method and process under which, in the case where a PDP sponsor of a prescription drug plan or an MA organization offering an MA–PD plan submits revisions to the number of units of a rebatable covered part D drug dispensed, the Secretary determines, pursuant to such revisions, adjustments, if any, to the calculation of the amount specified in this subsection for a dosage form and strength with respect to such part D rebatable drug and an applicable period and reconciles any overpayments or underpayments in amounts paid as rebates under this subsection. Any identified underpayment shall be rectified by the manufacturer not later than 30 days after the date of receipt from the Secretary of information on such underpayment.</text></paragraph></subsection><subsection id="H569672053B494EABA2EB5F45EBB5E0B7"><enum>(c)</enum><header>Rebate deposits</header><text display-inline="yes-display-inline">Amounts paid as rebates under subsection (b) shall be deposited into the Medicare Prescription Drug Account in the Federal Supplementary Medical Insurance Trust Fund established under section 1841.</text></subsection><subsection id="H0DD1EF3B19CD4DF4AE4E2C0DEC959FA4"><enum>(d)</enum><header>Information</header><text display-inline="yes-display-inline">For purposes of carrying out this section, the Secretary shall use information submitted by—</text><paragraph id="id9E5C13FC7533431EA4539AAD6E216468"><enum>(1)</enum><text display-inline="yes-display-inline">manufacturers under section 1927(b)(3);</text></paragraph><paragraph id="idA15E2454838F4F51A2E7C55DF5C2E264"><enum>(2)</enum><text display-inline="yes-display-inline">States under section 1927(b)(2)(A); and</text></paragraph><paragraph id="id7525FEBDC8CC46FA81A2F02BAB08A3B5"><enum>(3)</enum><text>PDP sponsors of prescription drug plans and MA organization offering MA–PD plans under this part.</text></paragraph></subsection><subsection id="H7B28847FE30A4123AA4749DF323D5387"><enum>(e)</enum><header>Civil money penalty</header><text display-inline="yes-display-inline">If a manufacturer of a part D rebatable drug has failed to comply with the requirement under subsection (a)(2) with respect to such drug for an applicable period, the manufacturer shall be subject to a civil money penalty in an amount equal to 125 percent of the amount specified in subsection (b) for such drug for such period. The provisions of section 1128A (other than subsections (a) (with respect to amounts of penalties or additional assessments) and (b)) shall apply to a civil money penalty under this subsection in the same manner as such provisions apply to a penalty or proceeding under section 1128A(a). </text></subsection><subsection id="H973509FAB23041B3A97A6C69F08877E4"><enum>(f)</enum><header>Limitation on administrative or judicial review</header><text>There shall be no administrative or judicial review of any of the following:</text><paragraph id="id97aaae622a454ec1baef05b7c943919b"><enum>(1)</enum><text>The determination of units under this section.</text></paragraph><paragraph id="idd5d3d9a7ef52453081b86b1d6c4d8d35"><enum>(2)</enum><text>The determination of whether a drug is a part D rebatable drug under this section.</text></paragraph><paragraph id="idb968a8a65f194dd6a5f7d9be55a8a33e"><enum>(3)</enum><text>The calculation of the rebate amount under this section. </text></paragraph></subsection><subsection id="HEBFDAE142E474F4CA3620792004E717C"><enum>(g)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section:</text><paragraph id="id262880392c6e4e3eb5951949a1ee05c7"><enum>(1)</enum><header>Part d rebatable drug</header><subparagraph id="id852fb2754b904390974bd227ee210379"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), the term <term>part D rebatable drug</term> means, with respect to an applicable period, a drug or biological described in subparagraph (C) that is a covered part D drug (as such term is defined under section 1860D–2(e)).</text></subparagraph><subparagraph id="idbf61fad7eff14e81b7fc0e0a1fe16e63"><enum>(B)</enum><header>Exclusion</header><clause id="id1df10d399f6540b48753ea5ca346ed3d"><enum>(i)</enum><header>In general</header><text>Such term shall, with respect to an applicable period, not include a drug or biological if the average annual total cost under this part for such period per individual who uses such a drug or biological, as determined by the Secretary, is less than, subject to clause (ii), $100, as determined by the Secretary using the most recent data available or, if data is not available, as estimated by the Secretary.</text></clause><clause id="idc05a791f6da743ab95f883659c62e317"><enum>(ii)</enum><header>Increase</header><text>The dollar amount applied under clause (i)—</text><subclause id="id663707122eff4fe58501ceaf83967473"><enum>(I)</enum><text>for the applicable period beginning October 1, 2023, shall be the dollar amount specified under such clause for the applicable period beginning October 1, 2022, increased by the percentage increase in the consumer price index for all urban consumers (United States city average) for the 12-month period beginning with October of 2023; and</text></subclause><subclause id="idfb9f0c3962c54c1d8e18571366e2a09f"><enum>(II)</enum><text>for a subsequent applicable period, shall be the dollar amount specified in this clause for the previous applicable period, increased by the percentage increase in the consumer price index for all urban consumers (United States city average) for the 12-month period beginning with October of the previous period.</text></subclause><continuation-text continuation-text-level="clause">Any dollar amount specified under this clause that is not a multiple of $10 shall be rounded to the nearest multiple of $10.</continuation-text></clause></subparagraph><subparagraph id="ida3dfeb1e9c9941f38c58cb4a1c0b0721"><enum>(C)</enum><header>Drug or biological described</header><text>A drug or biological described in this subparagraph is a drug or biological that, as of the first day of the applicable period involved, is—</text><clause id="id6d43a89c975e400b9b9875fa41f1457f"><enum>(i)</enum><text>a drug approved under a new drug application under section 505(c) of the Federal Food, Drug, and Cosmetic Act;</text></clause><clause id="idac34b0a585de491cb1e4b3cf8b0a8f7f"><enum>(ii)</enum><text>a drug approved under an abbreviated new drug application under section 505(j) of the Federal Food, Drug, and Cosmetic Act, in the case where—</text><subclause id="id99ac3d2955b84d888fe24b7db8423c74"><enum>(I)</enum><text>the reference listed drug approved under section 505(c) of the Federal Food, Drug, and Cosmetic Act, including any <quote>authorized generic drug</quote> (as that term is defined in section 505(t)(3) of the Federal Food, Drug, and Cosmetic Act), is not being marketed, as identified in the Food and Drug Administration’s National Drug Code Directory;</text></subclause><subclause id="ided544a06b3184360a19b56bab78008dc"><enum>(II)</enum><text>there is no other drug approved under section 505(j) of the Federal Food, Drug, and Cosmetic Act that is rated as therapeutically equivalent (under the Food and Drug Administration’s most recent publication of <quote>Approved Drug Products with Therapeutic Equivalence Evaluations</quote>) and that is being marketed, as identified in the Food and Drug Administration’s National Drug Code Directory;</text></subclause><subclause id="id95e745b68ee64e138298fdab04c4cf25"><enum>(III)</enum><text>the manufacturer is not a <quote>first applicant</quote> during the <quote>180-day exclusivity period</quote>, as those terms are defined in section 505(j)(5)(B)(iv) of the Federal Food, Drug, and Cosmetic Act; and</text></subclause><subclause id="ida04be8a052bc4493ab8c583f3d550449"><enum>(IV)</enum><text>the manufacturer is not a <quote>first approved applicant</quote> for a competitive generic therapy, as that term is defined in section 505(j)(5)(B)(v) of the Federal Food, Drug, and Cosmetic Act; or</text></subclause></clause><clause id="idd476f1cd883a41d5af6a92001e2128c3"><enum>(iii)</enum><text>a biological licensed under section 351 of the Public Health Service Act.</text></clause></subparagraph></paragraph><paragraph id="H45CA53EEE5ED4C75A650D574C9613D6D"><enum>(2)</enum><header>Unit</header><text display-inline="yes-display-inline">The term <term>unit</term> means, with respect to a part D rebatable drug, the lowest dispensable amount (such as a capsule or tablet, milligram of molecules, or grams) of the part D rebatable drug, as reported under section 1927.</text></paragraph><paragraph id="HF98EA9784B8645FCA1CA0E109266EF78"><enum>(3)</enum><header>Payment amount benchmark period</header><text display-inline="yes-display-inline">The term <term>payment amount benchmark period</term> means the period beginning January 1, 2021, and ending in the month immediately prior to October 1, 2021.</text></paragraph><paragraph id="H065D8E5675384B4FBF302FAAF530D2DA"><enum>(4)</enum><header>Benchmark period CPI–U</header><text display-inline="yes-display-inline">The term <term>benchmark period CPI–U</term> means the consumer price index for all urban consumers (United States city average) for January 2021.</text></paragraph><paragraph id="H151A023EDDD9406FAC329915DE24DE81"><enum>(5)</enum><header>Applicable period CPI–U</header><text display-inline="yes-display-inline">The term <term>applicable period CPI–U</term> means, with respect to an applicable period, the consumer price index for all urban consumers (United States city average) for the first month of such applicable period.</text></paragraph><paragraph id="H6269AE456D2A49BB98FD8C3DF1CD6D8E"><enum>(6)</enum><header>Average manufacturer price</header><text display-inline="yes-display-inline">The term <term>average manufacturer price</term> has the meaning, with respect to a part D rebatable drug of a manufacturer, given such term in section 1927(k)(1), with respect to a covered outpatient drug of a manufacturer for a rebate period under section 1927.</text></paragraph><paragraph id="H1FEFCED74B58438E91A7E6B0B7EB1DC8"><enum>(7)</enum><header>Applicable period</header><text>The term <term>applicable period</term> means a 12-month period beginning with October 1 of a year (beginning with October 1, 2022).</text></paragraph></subsection><subsection id="H38EC4EA759ED47A4B4CCC8E6CB78A91C" commented="no"><enum>(h)</enum><header>Implementation for 2022, 2023, and 2024</header><text>The Secretary shall implement this section for 2022, 2023, and 2024 by program instruction or other forms of program guidance.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H6DB473CC989D4E29A9CAE077F6CBBEE5"><enum>(b)</enum><header>Conforming amendments</header><paragraph id="H2F5679BDD370489D9A642ACABF273448"><enum>(1)</enum><header>To part B ASP calculation</header><text display-inline="yes-display-inline">Section 1847A(c)(3) of the Social Security Act (42 U.S.C. 1395w–3a(c)(3)), as amended by <external-xref legal-doc="usc" parsable-cite="usc/26/11101">section 11101(c)(1),</external-xref> is amended by striking <quote>subsection (i) or section 1927</quote> and inserting <quote>subsection (i), section 1927, or section 1860D–14B</quote>.</text></paragraph><paragraph id="HCD8973903DAC4F8BA1409FE0EE7D35D1" commented="no"><enum>(2)</enum><header>Excluding part D drug inflation rebate from best price</header><text display-inline="yes-display-inline">Section 1927(c)(1)(C)(ii)(I) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-8">42 U.S.C. 1396r–8(c)(1)(C)(ii)(I)</external-xref>), as amended by <external-xref legal-doc="usc" parsable-cite="usc/26/11101">section 11101(c)(2),</external-xref> is amended by striking <quote>or section 1847A(i)</quote> and inserting <quote>, section 1847A(i), or section 1860D–14B</quote>.</text></paragraph><paragraph id="H107649CF590F4CF891FB9339F0E8F468"><enum>(3)</enum><header>Coordination with Medicaid rebate information disclosure</header><text display-inline="yes-display-inline">Section 1927(b)(3)(D)(i) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-8">42 U.S.C. 1396r–8(b)(3)(D)(i)</external-xref>), as amended by sections 11002(b) and 11101(c)(3), is amended by striking <quote>or section 1192(f), including rebates under paragraph (4) of such section</quote> and inserting <quote>, section 1192(f), including rebates under paragraph (4) of such section, or section 1860D–14B</quote>.</text></paragraph><paragraph id="HD111B6AFDAAD449EBED2E123C31071C9"><enum>(4)</enum><header>Excluding part D drug inflation rebates from average manufacturer price</header><text display-inline="yes-display-inline">Section 1927(k)(1)(B)(i) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-8">42 U.S.C. 1396r–8(k)(1)(B)(i)</external-xref>), as amended by section 11001(b)(3) and <external-xref legal-doc="usc" parsable-cite="usc/26/11101">section 11101(c)(4),</external-xref> is amended by adding at the end the following new subclause:</text><subparagraph id="idC90DA619743B48148136BC0426C5D239"><enum>(A)</enum><text display-inline="yes-display-inline">in subclause (VI), by striking <quote>and</quote> at the end;</text></subparagraph><subparagraph id="id626918058CF24694A02624D4DBBEAFBB"><enum>(B)</enum><text>in subclause (VII), by striking the period at the end and inserting a semicolon; and</text></subparagraph><subparagraph id="id36798E99C24344CE9C38BFF5B71BCCBB"><enum>(C)</enum><text display-inline="yes-display-inline">by adding at the end the following new subclause: </text><quoted-block style="OLC" id="HD30FA27991284A7998D59DCEC6537E0A" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subclause id="HB975801CF8664D2987AB619D1ACEE4E2"><enum>(VIII)</enum><text display-inline="yes-display-inline">rebates paid by manufacturers under section 1860D–14B.</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="H88E160D7CB8D438E9693D2ADF5ED270F"><enum>(c)</enum><header>Funding</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there are appropriated to the Centers for Medicare & Medicaid Services, out of any money in the Treasury not otherwise appropriated, $80,000,000 for fiscal year 2022, including $12,500,000 to carry out the provisions of, including the amendments made by, this section in fiscal year 2022, and $7,500,000 to carry out the provisions of, including the amendments made by, this section in each of fiscal years 2023 through 2031, to remain available until expended.</text></subsection></section></part><part id="H80E15F09E1BD4FEDB1C3347361785325"><enum>3</enum><header>Part D Improvements and Maximum Out-of-Pocket Cap for Medicare Beneficiaries</header><section id="H58359647DE214A6F8F690FA8C96B50E4"><enum>11201.</enum><header>Medicare part D benefit redesign</header><subsection id="H1F95554A32F348C78A3A3106BB0315B7"><enum>(a)</enum><header>Benefit structure redesign</header><text>Section 1860D–2(b) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-102">42 U.S.C. 1395w–102(b)</external-xref>) is amended—</text><paragraph id="HD0CF21A504E94806B36D4243EAC1A504"><enum>(1)</enum><text>in paragraph (2)—</text><subparagraph id="H834569BF1EBB41DAAAF7B966F2A380B0"><enum>(A)</enum><text>in subparagraph (A), in the matter preceding clause (i), by inserting <quote>for a year preceding 2025 and for costs above the annual deductible specified in paragraph (1) and up to the annual out-of-pocket threshold specified in paragraph (4)(B) for 2025 and each subsequent year</quote> after <quote>paragraph (3)</quote>;</text></subparagraph><subparagraph id="HC8801D1721BE4848B076E4B7370C7BA2"><enum>(B)</enum><text>in subparagraph (C)—</text><clause id="H19D4BEBCF8D74B02977DC5C1D75A3A4A"><enum>(i)</enum><text>in clause (i), in the matter preceding subclause (I), by inserting <quote>for a year preceding 2025, </quote> after <quote>paragraph (4),</quote>; and</text></clause><clause id="H2AA99945590B430A87C3C3AE968D40E0"><enum>(ii)</enum><text>in clause (ii)(III), by striking <quote>and each subsequent year</quote> and inserting <quote>through 2024</quote>; and</text></clause></subparagraph><subparagraph id="HCC1118C369F244F9B9CD63A40A7A9329"><enum>(C)</enum><text>in subparagraph (D)—</text><clause id="HADC89C9114144E50A669F3B40A2A25C3"><enum>(i)</enum><text>in clause (i)—</text><subclause id="HAEF8474E53D344F09AA30ED8E8D7AEDB"><enum>(I)</enum><text>in the matter preceding subclause (I), by inserting <quote>for a year preceding 2025, </quote> after <quote>paragraph (4),</quote>; and</text></subclause><subclause id="HF69A2E6173E74A83B2D6D3B9B9694047"><enum>(II)</enum><text>in subclause (I)(bb), by striking <quote>a year after 2018</quote> and inserting <quote>each of years 2019 through 2024</quote>; and</text></subclause></clause><clause id="HC21D5545E29C42D1BF28F659940B51E6"><enum>(ii)</enum><text>in clause (ii)(V), by striking <quote>2019 and each subsequent year</quote> and inserting <quote>each of years 2019 through 2024</quote>;</text></clause></subparagraph></paragraph><paragraph id="HA2CFCF3CAEA5451D95597C6AC8E4AA09"><enum>(2)</enum><text>in paragraph (3)(A)—</text><subparagraph id="HF3ECC9528C304EF48944C11717F6829E"><enum>(A)</enum><text>in the matter preceding clause (i), by inserting <quote>for a year preceding 2025,</quote> after <quote>and (4),</quote>; and</text></subparagraph><subparagraph id="H6D63C6D2C7A54DBDB0C91DAEC794A7F2"><enum>(B)</enum><text>in clause (ii), by striking <quote>for a subsequent year</quote> and inserting <quote>for each of years 2007 through 2024</quote>; and</text></subparagraph></paragraph><paragraph id="H82808B5D1DDC42D8BE0478E3962A8128"><enum>(3)</enum><text>in paragraph (4)—</text><subparagraph id="HD8570015179B4FC6B56F82449193EF0F"><enum>(A)</enum><text>in subparagraph (A)—</text><clause id="HCD730114BBE841F496B0B367C9522B4D"><enum>(i)</enum><text>in clause (i)—</text><subclause id="H7013AF4AC10D43FABA3D1048B3C667EC"><enum>(I)</enum><text>by redesignating subclauses (I) and (II) as items (aa) and (bb), respectively, and moving the margin of each such redesignated item 2 ems to the right;</text></subclause><subclause id="HA67FF8617D6E4D5A8E142657D93606F6"><enum>(II)</enum><text>in the matter preceding item (aa), as redesignated by subclause (I), by striking <quote>is equal to the greater of—</quote> and inserting “is equal to—</text><quoted-block display-inline="no-display-inline" id="H875FE341323D4E75843AD2144AADCB47" style="OLC" changed="added" reported-display-style="italic"><subclause id="HDA09DCEC3EEA45DBA0AF4B122A341163"><enum>(I)</enum><text>for a year preceding 2024, the greater of—</text></subclause><after-quoted-block>;</after-quoted-block></quoted-block></subclause><subclause id="HB38A84AD003F4FC1826F911939D85970"><enum>(III)</enum><text>by striking the period at the end of item (bb), as redesignated by subclause (I), and inserting <quote>; and</quote>; and</text></subclause><subclause id="HFF8E8267F4BC45B491DBA2328B701547"><enum>(IV)</enum><text>by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="HCC9B97C8C5A64021AB5AE6B87B4578EF" style="OLC" changed="added" reported-display-style="italic"><subclause id="HA5B21EE1D20A4BAB842555B53E46B950"><enum>(II)</enum><text>for 2024 and each succeeding year, $0.</text></subclause><after-quoted-block>; and</after-quoted-block></quoted-block></subclause></clause><clause id="HA5256AF3CF7544F1B038673B67FE5EEF"><enum>(ii)</enum><text display-inline="yes-display-inline">in clause (ii)—</text><subclause id="HBCC7E5ADB0CC477C8645BCA7F050506B"><enum>(I)</enum><text>by striking <quote>clause (i)(I)</quote> and inserting <quote>clause (i)(I)(aa)</quote>; and</text></subclause><subclause id="HBD227062FC044ECAB9DD43D32E1EEE6E"><enum>(II)</enum><text>by adding at the end the following new sentence: <quote>The Secretary shall continue to calculate the dollar amounts specified in clause (i)(I)(aa), including with the adjustment under this clause, after 2023 for purposes of section 1860D–14(a)(1)(D)(iii).</quote>;</text></subclause></clause></subparagraph><subparagraph id="HF221B9A6105D4C9C9D5FA0EA8922D21F"><enum>(B)</enum><text>in subparagraph (B)—</text><clause id="H4A02F13FF82D4AD6B4623D65C20F3DB4"><enum>(i)</enum><text>in clause (i)—</text><subclause id="HA3473543301A40DDB0F9AE208C2014BA"><enum>(I)</enum><text>in subclause (V), by striking <quote>or</quote> at the end;</text></subclause><subclause id="H8404771B8F824F8EA40DE06E17D5AA4D"><enum>(II)</enum><text>in subclause (VI)—</text><item id="H18B016F29FAF44C3B379D99176F6D497"><enum>(aa)</enum><text>by striking <quote>for a subsequent year</quote> and inserting <quote>for each of years 2021 through 2024</quote>; and</text></item><item id="HFE4089EE401D4C35BF0FE9FBD81C1774"><enum>(bb)</enum><text>by striking the period at the end and inserting a semicolon; and</text></item></subclause><subclause id="H38F0953D358D4D379547A2FE146A3951"><enum>(III)</enum><text>by adding at the end the following new subclauses:</text><quoted-block display-inline="no-display-inline" id="H54054BBCC87E4AD5B5CA4E6C7BB5A98C" style="OLC" changed="added" reported-display-style="italic"><subclause id="HEB7646F4D087475AA85CCDE0B62A51C5"><enum>(VII)</enum><text>for 2025, is equal to $2,000; or</text></subclause><subclause id="HD227E4484223438B9B6A7DCC532768F7"><enum>(VIII)</enum><text>for a subsequent year, is equal to the amount specified in this subparagraph for the previous year, increased by the annual percentage increase described in paragraph (6) for the year involved.</text></subclause><after-quoted-block>; and</after-quoted-block></quoted-block></subclause></clause><clause id="HAE25CA9E11C24DEB9532627D78BF15FA"><enum>(ii)</enum><text>in clause (ii), by striking <quote>clause (i)(II)</quote> and inserting <quote>clause (i)</quote>;</text></clause></subparagraph><subparagraph id="H897C655D94944C138C103863C72B0073"><enum>(C)</enum><text>in subparagraph (C)—</text><clause id="idE62207171D0048A0B398C1862808EBB8"><enum>(i)</enum><text>in clause (i), by striking <quote>and for amounts</quote> and inserting <quote>and, for a year preceding 2025, for amounts</quote>; and</text></clause><clause id="idDEF28A3A829D496EA9DA4473EC985E8A"><enum>(ii)</enum><text>in clause (iii)—</text><subclause id="id6C606AC1553740FAB2D6C0452C704D85"><enum>(I)</enum><text>by redesignating subclauses (I) through (IV) as items (aa) through (dd) and indenting appropriately;</text></subclause><subclause id="idE3019507BE5C4701A4378F56EE32B6C9"><enum>(II)</enum><text>by striking <quote>if such costs are borne or paid</quote> and inserting “if such costs—</text><quoted-block style="OLC" display-inline="no-display-inline" id="id014924DE00E74DE2874663563DB1F823" changed="added" reported-display-style="italic"><subclause id="id5FDCC80472934D7EA5BE2AD4DEC75D19"><enum>(I)</enum><text>are borne or paid—</text></subclause><after-quoted-block>; and</after-quoted-block></quoted-block></subclause><subclause id="idF99010F7262E4F54A2E9EA8B16513F65"><enum>(III)</enum><text>in item (dd), by striking the period at the end and inserting <quote>; or</quote>; and</text></subclause><subclause id="id8EE44C80D0864C7386D3C4B7A6247DB3"><enum>(IV)</enum><text>by adding at the end the following new subclause:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id76590802D8F34723B5161343CFF0D571" changed="added" reported-display-style="italic"><subclause commented="no" id="id3E026C1575144C19B282A07B37896BCE"><enum>(II)</enum><text>for 2025 and subsequent years, are reimbursed through insurance, a group health plan, or certain other third party payment arrangements, but not including the coverage provided by a prescription drug plan or an MA–PD plan that is basic prescription drug coverage (as defined in subsection (a)(3)) or any payments by a manufacturer under the manufacturer discount program under section 1860D–14C.</text></subclause><after-quoted-block>; and</after-quoted-block></quoted-block></subclause></clause></subparagraph><subparagraph commented="no" id="HCBE30F8C58654A22B83C52F0DE9F2546"><enum>(D)</enum><text>in subparagraph (E), by striking <quote>In applying</quote> and inserting <quote>For each of years 2011 through 2024, in applying</quote>.</text></subparagraph></paragraph></subsection><subsection id="H0AFB26F0B1B343F790F58581D7E7AD0F"><enum>(b)</enum><header>Reinsurance payment amount</header><text display-inline="yes-display-inline">Section 1860D–15(b) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-115">42 U.S.C. 1395w–115(b)</external-xref>) is amended—</text><paragraph id="HB0C295E684194305AFBBFCF746978189"><enum>(1)</enum><text>in paragraph (1)—</text><subparagraph id="HEE52010C317F4512ADA2AD876D996EEC"><enum>(A)</enum><text>by striking <quote>equal to 80 percent</quote> and inserting “equal to—</text><quoted-block style="OLC" display-inline="no-display-inline" id="HB19648F7C5C041F1A5714225DBAFC75F" changed="added" reported-display-style="italic"><subparagraph id="H7F363BCB0D144AFF8C4A5CC2A2EB28F2"><enum>(A)</enum><text>for a year preceding 2025, 80 percent</text></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph><subparagraph id="H4A4B431D48A74B6E96AA1F4AB6E3CC19"><enum>(B)</enum><text>in subparagraph (A), as added by subparagraph (A), by striking the period at the end and inserting <quote>; and</quote>; and</text></subparagraph><subparagraph id="H9C4395DB5F9C43D995A35732CE7387B7"><enum>(C)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H7C9FF5B8743F4C12AA66A58B7FA5C6D8" changed="added" reported-display-style="italic"><subparagraph id="H4E6BC657DF56487BB2105A86CB11DFCF"><enum>(B)</enum><text>for 2025 and each subsequent year, the sum of—</text><clause id="HEE68629233F040D4AC4504B3C883ABE0"><enum>(i)</enum><text>with respect to applicable drugs (as defined in section 1860D–14C(g)(2)), an amount equal to 20 percent of such allowable reinsurance costs attributable to that portion of gross covered prescription drug costs as specified in paragraph (3) incurred in the coverage year after such individual has incurred costs that exceed the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B); and</text></clause><clause id="H28B221FB8FC247EC8B53077C7A9178FD"><enum>(ii)</enum><text>with respect to covered part D drugs that are not applicable drugs (as so defined), an amount equal to 40 percent of such allowable reinsurance costs attributable to that portion of gross covered prescription drug costs as specified in paragraph (3) incurred in the coverage year after such individual has incurred costs that exceed the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B). </text></clause></subparagraph><after-quoted-block>; </after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="H6C1FE43703644E9AA3938A627237D8C3"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (2)—</text><subparagraph id="HBBA96FC4FF624608B7EA2E3A2D968DCD"><enum>(A)</enum><text>by striking <quote><header-in-text level="paragraph" style="OLC">COSTS</header-in-text>.—For purposes</quote> and inserting </text><quoted-block style="OLC" id="HDC5349877B974E64BB91C14C44D3A2C4" display-inline="yes-display-inline" changed="added" reported-display-style="italic"><text><header-in-text level="paragraph" style="OLC">Costs.—</header-in-text></text><subparagraph id="H92EF4152C8BA4F6CBD031E5B9A8899DA"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Subject to subparagraph (B), for purposes</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph><subparagraph id="HECFA520FE0F8486592AFBF3E0667D9D5"><enum>(B)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block style="OLC" id="HBADED92F3F5F4AB0B1DC29100A3E1D2E" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subparagraph id="H86B21047BA4C4528A12BD56597EF0F3F"><enum>(B)</enum><header>Inclusion of manufacturer discounts on applicable drugs</header><text display-inline="yes-display-inline">For purposes of applying subparagraph (A), the term ‘allowable reinsurance costs’ shall include the portion of the negotiated price (as defined in section 1860D–14C(g)(6)) of an applicable drug (as defined in section 1860D–14C(g)(2)) that was paid by a manufacturer under the manufacturer discount program under section 1860D–14C.</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="H87C959BDB3824A8DA7DF94ED75E91882"><enum>(3)</enum><text>in paragraph (3)—</text><subparagraph id="H08B0B8721B9F4FB59B7AF9C638F9EDE8"><enum>(A)</enum><text display-inline="yes-display-inline">in the first sentence, by striking <quote>For purposes</quote> and inserting <quote>Subject to paragraph (2)(B), for purposes</quote>; and</text></subparagraph><subparagraph id="H61765576AE4649A3AB307BFD577B9EA7"><enum>(B)</enum><text display-inline="yes-display-inline">in the second sentence, by inserting <quote>(or, with respect to 2025 and subsequent years, in the case of an applicable drug, as defined in section 1860D–14C(g)(2), by a manufacturer)</quote> after <quote>by the individual or under the plan</quote>.</text></subparagraph></paragraph></subsection><subsection id="H074F1D5F5FA943218C2A099D4C8FE14C"><enum>(c)</enum><header>Manufacturer discount program</header><paragraph id="H1529BB9B50814DD1BD043FE73A0662F0"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Part D of title XVIII of the Social Security Act (42 U.S.C. 1395w–101 through <external-xref legal-doc="usc" parsable-cite="usc/42/1395w-153">42 U.S.C. 1395w–153</external-xref>), as amended by <external-xref legal-doc="usc" parsable-cite="usc/26/11102">section 11102,</external-xref> is amended by inserting after section 1860D–14B the following new sections:</text><quoted-block display-inline="no-display-inline" id="HBF4E7A7BD1824561B292102F3125DDD9" style="OLC" changed="added" reported-display-style="italic"><section id="H1CE4778B4E2C413A8463749CAC6FACCE"><enum>1860D–14C.</enum><header>Manufacturer discount program</header><subsection id="H8E4F33FEC60547CCB8C2CDB91D94FBC8"><enum>(a)</enum><header>Establishment</header><text>The Secretary shall establish a manufacturer discount program (in this section referred to as the <quote>program</quote>). Under the program, the Secretary shall enter into agreements described in subsection (b) with manufacturers and provide for the performance of the duties described in subsection (c).</text></subsection><subsection id="HDC431A69D1E74AC0A74C5E2250F56EBB"><enum>(b)</enum><header>Terms of agreement</header><paragraph commented="no" id="HEDE90C7835F94D6CAD78A91D4F86EE91"><enum>(1)</enum><header>In general</header><subparagraph commented="no" id="HFAF5425C62F642F394322FA501F270EF"><enum>(A)</enum><header>Agreement</header><text>An agreement under this section shall require the manufacturer to provide, in accordance with this section, discounted prices for applicable drugs of the manufacturer that are dispensed to applicable beneficiaries on or after January 1, 2025. </text></subparagraph><subparagraph id="HF131E66EB555494F8E9B791CF8C6F7E7"><enum>(B)</enum><header>Clarification</header><text display-inline="yes-display-inline">Nothing in this section shall be construed as affecting—</text><clause id="HD6DD1C25182B4DD391B93C2A694B9639"><enum>(i)</enum><text>the application of a coinsurance of 25 percent of the negotiated price, as applied under paragraph (2)(A) of section 1860D–2(b), for costs described in such paragraph; or</text></clause><clause id="HA77318CCA1F44E7EA93243D6A3A98250"><enum>(ii)</enum><text>the application of the copayment amount described in paragraph (4)(A) of such section, with respect to costs described in such paragraph.</text></clause></subparagraph><subparagraph commented="no" id="HE8F660487E724705A8EEA0427CCA7BBA"><enum>(C)</enum><header>Timing of agreement</header><clause commented="no" id="H7737AB42177446F3BE580589718DCBD4"><enum>(i)</enum><header>Special rule for 2025</header><text display-inline="yes-display-inline">In order for an agreement with a manufacturer to be in effect under this section with respect to the period beginning on January 1, 2025, and ending on December 31, 2025, the manufacturer shall enter into such agreement not later than March 1, 2024.</text></clause><clause commented="no" id="H80FDBBB883DA44848793F83427FA662F"><enum>(ii)</enum><header>2026 and subsequent years</header><text display-inline="yes-display-inline">In order for an agreement with a manufacturer to be in effect under this section with respect to plan year 2026 or a subsequent plan year, the manufacturer shall enter into such agreement not later than a calendar quarter or semi-annual deadline established by the Secretary.</text></clause></subparagraph></paragraph><paragraph commented="no" id="H7D4AC747441843E2B5F9C41584999D4D"><enum>(2)</enum><header>Provision of appropriate data</header><text>Each manufacturer with an agreement in effect under this section shall collect and have available appropriate data, as determined by the Secretary, to ensure that it can demonstrate to the Secretary compliance with the requirements under the program.</text></paragraph><paragraph commented="no" id="H43B34FDDD77444A484EBCF0673282439"><enum>(3)</enum><header>Compliance with requirements for administration of program</header><text>Each manufacturer with an agreement in effect under this section shall comply with requirements imposed by the Secretary, as applicable, for purposes of administering the program, including any determination under subparagraph (A) of subsection (c)(1) or procedures established under such subsection (c)(1).</text></paragraph><paragraph id="H0F7C5CF944BA44DA86E1B1CC56435471"><enum>(4)</enum><header>Length of agreement</header><subparagraph commented="no" id="H71A3910569EE41FEA602B34FE5D988FD"><enum>(A)</enum><header>In general</header><text>An agreement under this section shall be effective for an initial period of not less than 12 months and shall be automatically renewed for a period of not less than 1 year unless terminated under subparagraph (B).</text></subparagraph><subparagraph id="H55882202D98D48B1B1851B19BA275340"><enum>(B)</enum><header>Termination</header><clause id="H082CA283008F4B29944320AB1C528884"><enum>(i)</enum><header>By the Secretary</header><text>The Secretary shall provide for termination of an agreement under this section for a knowing and willful violation of the requirements of the agreement or other good cause shown. Such termination shall not be effective earlier than 30 days after the date of notice to the manufacturer of such termination. The Secretary shall provide, upon request, a manufacturer with a hearing concerning such a termination, and such hearing shall take place prior to the effective date of the termination with sufficient time for such effective date to be repealed if the Secretary determines appropriate.</text></clause><clause id="HD0FD09C807AF4F618245D565CFF3D5C0"><enum>(ii)</enum><header>By a manufacturer</header><text>A manufacturer may terminate an agreement under this section for any reason. Any such termination shall be effective, with respect to a plan year—</text><subclause commented="no" id="H6B5A5E8BCDFB47D88D32E773507E9FA9"><enum>(I)</enum><text>if the termination occurs before January 31 of a plan year, as of the day after the end of the plan year; and</text></subclause><subclause commented="no" id="HF1F5BC76CD684AA38AA124E5F32ED5D8"><enum>(II)</enum><text>if the termination occurs on or after January 31 of a plan year, as of the day after the end of the succeeding plan year.</text></subclause></clause><clause commented="no" id="H2AECFB57E75241348F0604FD24EC1F15"><enum>(iii)</enum><header>Effectiveness of termination</header><text>Any termination under this subparagraph shall not affect discounts for applicable drugs of the manufacturer that are due under the agreement before the effective date of its termination.</text></clause></subparagraph></paragraph><paragraph id="id1c15ad865dc742cfa4ae921131e62112"><enum>(5)</enum><header>Effective date of agreement</header><text>An agreement under this section shall take effect at the start of a calendar quarter or another date specified by the Secretary. </text></paragraph></subsection><subsection id="HC3EFC1F19D6947FEB794E4EBF0AD226C"><enum>(c)</enum><header>Duties described</header><text>The duties described in this subsection are the following:</text><paragraph commented="no" id="H4E8F8A34061C4153B9E2CD41386A149E"><enum>(1)</enum><header>Administration of program</header><text>Administering the program, including—</text><subparagraph commented="no" id="H4DF089B90FEB4176ABDBFDC60DEBFDBD"><enum>(A)</enum><text>the determination of the amount of the discounted price of an applicable drug of a manufacturer;</text></subparagraph><subparagraph commented="no" id="HD9D18A1B8E5A4C3B86EE502B540A1C86"><enum>(B)</enum><text>the establishment of procedures to ensure that, not later than the applicable number of calendar days after the dispensing of an applicable drug by a pharmacy or mail order service, the pharmacy or mail order service is reimbursed for an amount equal to the difference between—</text><clause commented="no" id="HA2345A5CD9AD40D2895F40E11636DDF6"><enum>(i)</enum><text>the negotiated price of the applicable drug; and</text></clause><clause commented="no" id="HDD75C401136047CFA31BCCF9961AC833"><enum>(ii)</enum><text>the discounted price of the applicable drug;</text></clause></subparagraph><subparagraph commented="no" id="HF4DCF71D90A54A10A0332FF478554128"><enum>(C)</enum><text>the establishment of procedures to ensure that the discounted price for an applicable drug under this section is applied before any coverage or financial assistance under other health benefit plans or programs that provide coverage or financial assistance for the purchase or provision of prescription drug coverage on behalf of applicable beneficiaries as specified by the Secretary; and</text></subparagraph><subparagraph commented="no" id="HC34E6D66149F4C03B130118D19650ACA"><enum>(D)</enum><text>providing a reasonable dispute resolution mechanism to resolve disagreements between manufacturers, prescription drug plans and MA–PD plans, and the Secretary.</text></subparagraph></paragraph><paragraph id="H0F357A3271F14EC39B6F9FDCF4C06976"><enum>(2)</enum><header>Monitoring compliance</header><text>The Secretary shall monitor compliance by a manufacturer with the terms of an agreement under this section.</text></paragraph><paragraph id="HD715A7D8144240CA881E89F4854AF973"><enum>(3)</enum><header>Collection of data from prescription drug plans and MA–PD plans</header><text>The Secretary may collect appropriate data from prescription drug plans and MA–PD plans in a timeframe that allows for discounted prices to be provided for applicable drugs under this section.</text></paragraph></subsection><subsection id="H96E387E379534EBABE50C46FF5BC9926"><enum>(d)</enum><header>Administration</header><paragraph id="HD85E1912716D47A684A0585425EC7968"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (2), the Secretary shall provide for the implementation of this section, including the performance of the duties described in subsection (c).</text></paragraph><paragraph commented="no" id="H603B396C95EC4C89B4BAA3759C53EB91"><enum>(2)</enum><header>Limitation</header><text display-inline="yes-display-inline">In providing for the implementation of this section, the Secretary shall not receive or distribute any funds of a manufacturer under the program.</text></paragraph></subsection><subsection id="H842B5B47F26B4C57B907095D4D0C35D6"><enum>(e)</enum><header>Civil money penalty</header><paragraph id="idC37F3B92616146329483E7B015079AE4"><enum>(1)</enum><header>In general</header><text>A manufacturer that fails to provide discounted prices for applicable drugs of the manufacturer dispensed to applicable beneficiaries in accordance with an agreement in effect under this section shall be subject to a civil money penalty for each such failure in an amount the Secretary determines is equal to the sum of—</text><subparagraph id="HD403496261294265A36E4DF71B391923"><enum>(A)</enum><text>the amount that the manufacturer would have paid with respect to such discounts under the agreement, which will then be used to pay the discounts which the manufacturer had failed to provide; and</text></subparagraph><subparagraph id="HB3E15DABF7494ACAA39AB84B2331C5DC"><enum>(B)</enum><text>25 percent of such amount.</text></subparagraph></paragraph><paragraph commented="no" id="H0259B50835B946B28461E0790EBEF5E0"><enum>(2)</enum><header>Application</header><text>The provisions of section 1128A (other than subsections (a) and (b)) shall apply to a civil money penalty under this subsection in the same manner as such provisions apply to a penalty or proceeding under section 1128A(a).</text></paragraph></subsection><subsection commented="no" id="HBB1D4887BA0F4534B07D54AEE3DEDB3B"><enum>(f)</enum><header>Clarification regarding availability of other covered part D drugs</header><text>Nothing in this section shall prevent an applicable beneficiary from purchasing a covered part D drug that is not an applicable drug (including a generic drug or a drug that is not on the formulary of the prescription drug plan or MA–PD plan that the applicable beneficiary is enrolled in).</text></subsection><subsection id="H41F8E6DFB0BE435BB9D976950C3E1C17"><enum>(g)</enum><header>Definitions</header><text>In this section:</text><paragraph id="H1889FFE15BC043C9A957A9A14CA96960"><enum>(1)</enum><header>Applicable beneficiary</header><text>The term <term>applicable beneficiary</term> means an individual who, on the date of dispensing a covered part D drug—</text><subparagraph id="H67C0022FB52C408587634C4E532CF744"><enum>(A)</enum><text>is enrolled in a prescription drug plan or an MA–PD plan;</text></subparagraph><subparagraph id="H05BF05B056A84DBABBE7969176C7D550"><enum>(B)</enum><text>is not enrolled in a qualified retiree prescription drug plan; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H6001EA77C544414E9422C6BA40A6D4DB"><enum>(C)</enum><text display-inline="yes-display-inline">has incurred costs, as determined in accordance with section 1860D–2(b)(4)(C), for covered part D drugs in the year that exceed the annual deductible specified in section 1860D–2(b)(1).</text></subparagraph></paragraph><paragraph id="H2FAD2A0601494F28B1D742E6491B27AD"><enum>(2)</enum><header>Applicable drug</header><text>The term <term>applicable drug</term>, with respect to an applicable beneficiary—</text><subparagraph id="H26531138B12B4415893619D51D7914C0"><enum>(A)</enum><text>means a covered part D drug—</text><clause id="HB24ABC6236A446B2B349DA60F99C3024"><enum>(i)</enum><text>approved under a new drug application under section 505(c) of the Federal Food, Drug, and Cosmetic Act or, in the case of a biologic product, licensed under section 351 of the Public Health Service Act; and</text></clause><clause id="HD6EF02952B71446FA426AA8597DA21E9"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="HB276E44EE1484E62B138D74F408C732D"><enum>(I)</enum><text>if the PDP sponsor of the prescription drug plan or the MA organization offering the MA–PD plan uses a formulary, which is on the formulary of the prescription drug plan or MA–PD plan that the applicable beneficiary is enrolled in;</text></subclause><subclause id="H45A230059B3F4C23BF785D3296A3F82D" indent="up1"><enum>(II)</enum><text>if the PDP sponsor of the prescription drug plan or the MA organization offering the MA–PD plan does not use a formulary, for which benefits are available under the prescription drug plan or MA–PD plan that the applicable beneficiary is enrolled in; or</text></subclause><subclause id="H650694BF031A4D4FA5A72B42B1B9E0F9" indent="up1"><enum>(III)</enum><text>is provided through an exception or appeal; and</text></subclause></clause></subparagraph><subparagraph id="H72CCCE90C5A443DAAD9368D85BA6296E" commented="no"><enum>(B)</enum><text>does not include a selected drug (as referred to under section 1192(c)) during a price applicability period (as defined in section 1191(b)(2)) with respect to such drug.</text></subparagraph></paragraph><paragraph commented="no" id="H2DFC9FC9CE18468387780B5A959B798F"><enum>(3)</enum><header>Applicable number of calendar days</header><text>The term <term>applicable number of calendar days</term> means—</text><subparagraph commented="no" id="H90BCB0F8011A424ABE122249742FF3CF"><enum>(A)</enum><text>with respect to claims for reimbursement submitted electronically, 14 days; and</text></subparagraph><subparagraph commented="no" id="HF46A8C4731084F428FBC6550617AE3B0"><enum>(B)</enum><text>with respect to claims for reimbursement submitted otherwise, 30 days.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE83DC38A477A4493B0DAA978DBCE1F60"><enum>(4)</enum><header display-inline="yes-display-inline">Discounted price</header><subparagraph commented="no" display-inline="no-display-inline" id="HFDFFC93AE16B4A30BD17D9C1423A2294"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>discounted price</term> means, subject to subparagraphs (B) and (C), with respect to an applicable drug of a manufacturer dispensed during a year to an applicable beneficiary—</text><clause commented="no" id="H941262B97C764005AB76134878D78D3F"><enum>(i)</enum><text display-inline="yes-display-inline">who has not incurred costs, as determined in accordance with section 1860D–2(b)(4)(C), for covered part D drugs in the year that are equal to or exceed the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B)(i) for the year, 90 percent of the negotiated price of such drug; and </text></clause><clause commented="no" id="HFFA17EDED1494981901FA6696D4C6319"><enum>(ii)</enum><text>who has incurred such costs, as so determined, in the year that are equal to or exceed such threshold for the year, 80 percent of the negotiated price of such drug.</text></clause></subparagraph><subparagraph id="H2BEA329978524D0E96CB5C3525CCCC5B" commented="no"><enum>(B)</enum><header>Phase-in for certain drugs dispensed to LIS beneficiaries</header><clause id="HBA5558C58101426EA90722B2B9A10AC9" commented="no"><enum>(i)</enum><header>In general</header><text>In the case of an applicable drug of a specified manufacturer (as defined in clause (ii)) that is marketed as of the date of enactment of this subparagraph and dispensed for an applicable beneficiary who is a subsidy eligible individual (as defined in section 1860D–14(a)(3)), the term <quote>discounted price</quote> means the specified LIS percent (as defined in clause (iii)) of the negotiated price of the applicable drug of the manufacturer.</text></clause><clause id="HF46EF8487DA94845BA1D3FD777637EA1" commented="no"><enum>(ii)</enum><header>Specified manufacturer</header><subclause id="H2DCE2BE3BF82412AB3034961F8E90BF9"><enum>(I)</enum><header>In general</header><text display-inline="yes-display-inline">In this subparagraph, subject to subclause (II), the term <quote>specified manufacturer</quote> means a manufacturer of an applicable drug for which, in 2021—</text><item id="H1C8455F493294D7CBAC976E0D2000ED7" commented="no"><enum>(aa)</enum><text>the manufacturer had a coverage gap discount agreement under section 1860D–14A;</text></item><item id="HD30991E715B240DDAB5521DE457CD6B8" commented="no"><enum>(bb)</enum><text display-inline="yes-display-inline">the total expenditures for all of the specified drugs of the manufacturer covered by such agreement or agreements for such year and covered under this part during such year represented less than 1.0 percent of the total expenditures under this part for all covered Part D drugs during such year; and</text></item><item id="HFC98D925C52A4C0AA50824E4C77CF58F" commented="no"><enum>(cc)</enum><text display-inline="yes-display-inline">the total expenditures for all of the specified drugs of the manufacturer that are single source drugs and biological products for which payment may be made under part B during such year represented less than 1.0 percent of the total expenditures under part B for all drugs or biological products for which payment may be made under such part during such year.</text></item></subclause><subclause id="H3A0EE41A2386406B92D58B1645CB2061"><enum>(II)</enum><header>Specified drugs</header><item id="H0B741D9519884285BAF4676E051BFBD6"><enum>(aa)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this clause, the term <quote>specified drug</quote> means, with respect to a specified manufacturer, for 2021, an applicable drug that is produced, prepared, propagated, compounded, converted, or processed by the manufacturer.</text></item><item id="H45EAF374A35948329417437CC5A7AF82"><enum>(bb)</enum><header>Aggregation rule</header><text display-inline="yes-display-inline">All persons treated as a single employer under subsection (a) or (b) of <external-xref legal-doc="usc" parsable-cite="usc/26/52">section 52</external-xref> of the Internal Revenue Code of 1986 shall be treated as one manufacturer for purposes of this subparagraph. For purposes of making a determination pursuant to the previous sentence, an agreement under this section shall require that a manufacturer provide and attest to such information as specified by the Secretary as necessary.</text></item></subclause><subclause id="HD239ECD9C4F540B091543DEA018159A4"><enum>(III)</enum><header>Limitation</header><text display-inline="yes-display-inline">The term <quote>specified manufacturer</quote> shall not include a manufacturer described in subclause (I) if such manufacturer is acquired after 2021 by another manufacturer that is not a specified manufacturer, effective at the beginning of the plan year immediately following such acquisition or, in the case of an acquisition before 2025, effective January 1, 2025.</text></subclause></clause><clause id="H8831FC2F2CF34A8B9E7BF6BA99976120" commented="no"><enum>(iii)</enum><header>Specified LIS percent</header><text display-inline="yes-display-inline">In this subparagraph, the <quote>specified LIS percent</quote> means, with respect to a year—</text><subclause id="H8BC5EA6B51134F278B430BA65B285CA3" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">for an applicable drug dispensed for an applicable beneficiary described in clause (i) who has not incurred costs, as determined in accordance with section 1860D–2(b)(4)(C), for covered part D drugs in the year that are equal to or exceed the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B)(i) for the year—</text><item id="H806A1D4ADA554BF6825D886242843C1A"><enum>(aa)</enum><text>for 2025, 99 percent;</text></item><item id="HAAB835FEBAAC4528BE61095C04667E10" commented="no"><enum>(bb)</enum><text>for 2026, 98 percent;</text></item><item id="HE0AA519022934ACD88E5A78524225D75" commented="no"><enum>(cc)</enum><text>for 2027, 95 percent;</text></item><item id="H2E1F3C8D14DB402EAF6B752CBCCC6FD0" commented="no"><enum>(dd)</enum><text>for 2028, 92 percent; and</text></item><item id="HC33C3396714044EFA671BF154D62E479" commented="no"><enum>(ee)</enum><text>for 2029 and each subsequent year, 90 percent; and</text></item></subclause><subclause id="HD7AAE8AC89BF46EE916A2640BF79FCE3"><enum>(II)</enum><text display-inline="yes-display-inline">for an applicable drug dispensed for an applicable beneficiary described in clause (i) who has incurred costs, as determined in accordance with section 1860D–2(b)(4)(C), for covered part D drugs in the year that are equal to or exceed the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B)(i) for the year—</text><item id="H9239F59D9FB4466B982211EEB94546EA"><enum>(aa)</enum><text display-inline="yes-display-inline">for 2025, 99 percent;</text></item><item id="H0AD4DFA25C9A4999A841E1B8E05002C6"><enum>(bb)</enum><text>for 2026, 98 percent;</text></item><item id="H8EE66AA6BA1F4FACA008365D5A7C8447"><enum>(cc)</enum><text>for 2027, 95 percent;</text></item><item id="HE78D15491FFB426FACE444BA0BD0C296"><enum>(dd)</enum><text>for 2028, 92 percent;</text></item><item id="H4D10E72A87844E288EA006BE4D054467"><enum>(ee)</enum><text>for 2029, 90 percent;</text></item><item id="H64FA4CA146A545DD8F46F20819F7D358"><enum>(ff)</enum><text>for 2030, 85 percent; and</text></item><item id="H413857DBCC5A4E6885B04B9C6FE5E8A2"><enum>(gg)</enum><text>for 2031 and each subsequent year, 80 percent.</text></item></subclause></clause></subparagraph><subparagraph id="H4752B97A0EF044B6BC000063DC18A8C0"><enum>(C)</enum><header>Phase-in for specified small manufacturers</header><clause id="H1B7FB18999544AD39E487B898D6C29E0"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of an applicable drug of a specified small manufacturer (as defined in clause (ii)) that is marketed as of the date of enactment of this subparagraph and dispensed for an applicable beneficiary, the term <quote>discounted price</quote> means the specified small manufacturer percent (as defined in clause (iii)) of the negotiated price of the applicable drug of the manufacturer.</text></clause><clause id="H204CB7D2408D4480B9E533F32D4EFAC5"><enum>(ii)</enum><header>Specified small manufacturer</header><subclause id="HB26383D0B554400898D6C420F037F2C9"><enum>(I)</enum><header>In general</header><text display-inline="yes-display-inline">In this subparagraph, subject to subclause (III), the term ‘specified small manufacturer’ means a manufacturer of an applicable drug for which, in 2021—</text><item id="H0B476DA65B354921AAA0007CAFEC2407"><enum>(aa)</enum><text display-inline="yes-display-inline">the manufacturer is a specified manufacturer (as defined in subparagraph (B)(ii)); and </text></item><item id="H653E3E673CE34207B95E8EED157321E2"><enum>(bb)</enum><text display-inline="yes-display-inline">the total expenditures under part D for any one of the specified small manufacturer drugs of the manufacturer that are covered by the agreement or agreements under section 1860D–14A of such manufacturer for such year and covered under this part during such year are equal to or more than 80 percent of the total expenditures under this part for all specified small manufacturer drugs of the manufacturer that are covered by such agreement or agreements for such year and covered under this part during such year.</text></item></subclause><subclause id="H410BC3EC13AA45168B9E2AE939C2F3DA"><enum>(II)</enum><header>Specified small manufacturer drugs</header><item id="H5E19AAA222644103986BF9C4237552A1"><enum>(aa)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this clause, the term <quote>specified small manufacturer drugs</quote> means, with respect to a specified small manufacturer, for 2021, an applicable drug that is produced, prepared, propagated, compounded, converted, or processed by the manufacturer.</text></item><item id="H89DBEFF8550A4FFE99FBEB3843D33EB5"><enum>(bb)</enum><header>Aggregation rule</header><text display-inline="yes-display-inline">All persons treated as a single employer under subsection (a) or (b) of <external-xref legal-doc="usc" parsable-cite="usc/26/52">section 52</external-xref> of the Internal Revenue Code of 1986 shall be treated as one manufacturer for purposes of this subparagraph. For purposes of making a determination pursuant to the previous sentence, an agreement under this section shall require that a manufacturer provide and attest to such information as specified by the Secretary as necessary.</text></item></subclause><subclause id="H3EFCBFA8D70A4673AE600B012D075922"><enum>(III)</enum><header>Limitation</header><text display-inline="yes-display-inline">The term <quote>specified small manufacturer</quote> shall not include a manufacturer described in subclause (I) if such manufacturer is acquired after 2021 by another manufacturer that is not a specified small manufacturer, effective at the beginning of the plan year immediately following such acquisition or, in the case of an acquisition before 2025, effective January 1, 2025.</text></subclause></clause><clause id="H4E5217E05F5F4B5E860A9C7D58DA450D"><enum>(iii)</enum><header>Specified small manufacturer percent</header><text display-inline="yes-display-inline">In this subparagraph, the term <quote>specified small manufacturer percent</quote> means, with respect to a year—</text><subclause id="H724C92C5EA804ADFA5D44EA921E88E5A"><enum>(I)</enum><text display-inline="yes-display-inline">for an applicable drug dispensed for an applicable beneficiary who has not incurred costs, as determined in accordance with section 1860D–2(b)(4)(C), for covered part D drugs in the year that are equal to or exceed the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B)(i) for the year—</text><item id="HEFB643CCE6114012A83B02E114B21A46"><enum>(aa)</enum><text display-inline="yes-display-inline">for 2025, 99 percent;</text></item><item id="H9BA8362D4CED4975B1906CE098C82A45"><enum>(bb)</enum><text>for 2026, 98 percent;</text></item><item id="HDD030A31CF064FEDB12AE472745AEB7B"><enum>(cc)</enum><text>for 2027, 95 percent;</text></item><item id="HC48DA40C97A34A34A611C97DE5C794C8"><enum>(dd)</enum><text>for 2028, 92 percent; and</text></item><item id="H769EAA741A0D4CC499A639DECBAC9980"><enum>(ee)</enum><text>for 2029 and each subsequent year, 90 percent; and</text></item></subclause><subclause id="H95640ACBC84047DBB574CBC786DECB40"><enum>(II)</enum><text display-inline="yes-display-inline">for an applicable drug dispensed for an applicable beneficiary who has incurred costs, as determined in accordance with section 1860D–2(b)(4)(C), for covered part D drugs in the year that are equal to or exceed the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B)(i) for the year—</text><item id="H413D019B7632431B8C7EF64286D850C3"><enum>(aa)</enum><text display-inline="yes-display-inline">for 2025, 99 percent;</text></item><item id="H25B9704A2C3948208BAF58A5A134EED5"><enum>(bb)</enum><text>for 2026, 98 percent;</text></item><item id="H2E1646FDD08748D48DCB6A73447972B6"><enum>(cc)</enum><text>for 2027, 95 percent;</text></item><item id="H5A50EA5F2C2E4C4C8BE7A9983F9B836F"><enum>(dd)</enum><text>for 2028, 92 percent;</text></item><item id="HFDFA1BB1EF784B2CBED5D40362559E87"><enum>(ee)</enum><text>for 2029, 90 percent;</text></item><item id="H7FDB584DD9EC42F99036C9F54647F1B3"><enum>(ff)</enum><text>for 2030, 85 percent; and</text></item><item id="H07805AEE08534454B0E8E7CB0C4F2B72"><enum>(gg)</enum><text>for 2031 and each subsequent year, 80 percent.</text></item></subclause></clause></subparagraph><subparagraph id="H4B9950F7024B4FB28614F0A301F0AB4B"><enum>(D)</enum><header>Total expenditures</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term <quote>total expenditures</quote> includes, in the case of expenditures with respect to part D, the total gross covered prescription drug costs as defined in section 1860D–15(b)(3). The term <quote>total expenditures</quote> excludes, in the case of expenditures with respect to part B, expenditures for a drug or biological that are bundled or packaged into the payment for another service.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H4D031C33CD6C4AF6886F594D5A029EA9"><enum>(E)</enum><header>Special case for certain claims</header><clause commented="no" id="H7086B4B2FA5649E5914F64E3F5DE6A6C"><enum>(i)</enum><header>Claims spanning deductible</header><text>In the case where the entire amount of the negotiated price of an individual claim for an applicable drug with respect to an applicable beneficiary does not fall above the annual deductible specified in section 1860D–2(b)(1) for the year, the manufacturer of the applicable drug shall provide the discounted price under this section on only the portion of the negotiated price of the applicable drug that falls above such annual deductible.</text></clause><clause commented="no" id="H760FC684FD1C43C3ACD095DAC66A3BD4"><enum>(ii)</enum><header>Claims spanning out-of-pocket threshold</header><text display-inline="yes-display-inline">In the case where the entire amount of the negotiated price of an individual claim for an applicable drug with respect to an applicable beneficiary does not fall entirely below or entirely above the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B)(i) for the year, the manufacturer of the applicable drug shall provide the discounted price—</text><subclause commented="no" id="H4D8DB967F1FB425AAE92E4EFA595BF20"><enum>(I)</enum><text>in accordance with subparagraph (A)(i) on the portion of the negotiated price of the applicable drug that falls below such threshold; and</text></subclause><subclause commented="no" id="HABD0143D933F49C88B873BC6CEF2106E"><enum>(II)</enum><text>in accordance with subparagraph (A)(ii) on the portion of such price of such drug that falls at or above such threshold.</text></subclause></clause></subparagraph></paragraph><paragraph commented="no" id="H46A0E7F7949347B7A4D454B8CDE61835"><enum>(5)</enum><header>Manufacturer</header><text>The term <term>manufacturer</term> means any entity which is engaged in the production, preparation, propagation, compounding, conversion, or processing of prescription drug products, either directly or indirectly by extraction from substances of natural origin, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis. Such term does not include a wholesale distributor of drugs or a retail pharmacy licensed under State law.</text></paragraph><paragraph commented="no" id="HDEF9504095B54A14A5061F96F08BA3E7"><enum>(6)</enum><header>Negotiated price</header><text display-inline="yes-display-inline">The term <term>negotiated price</term> has the meaning given such term for purposes of section 1860D–2(d)(1)(B), and, with respect to an applicable drug, such negotiated price shall include any dispensing fee and, if applicable, any vaccine administration fee for the applicable drug.</text></paragraph><paragraph commented="no" id="H7937087E2A764CCB927ECE498D83C44D"><enum>(7)</enum><header>Qualified retiree prescription drug plan</header><text>The term <term>qualified retiree prescription drug plan</term> has the meaning given such term in section 1860D–22(a)(2).</text></paragraph></subsection></section><section id="HF722A4DCB3604500AA3DC710D55B7914"><enum>1860D–14D.</enum><header>Selected drug subsidy program</header><text display-inline="no-display-inline">With respect to covered part D drugs that would be applicable drugs (as defined in section 1860D–14C(g)(2)) but for the application of subparagraph (B) of such section, the Secretary shall provide a process whereby, in the case of an applicable beneficiary (as defined in section 1860D–14C(g)(1)) who, with respect to a year, is enrolled in a prescription drug plan or is enrolled in an MA–PD plan, has not incurred costs that are equal to or exceed the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B)(i), and is dispensed such a drug, the Secretary (periodically and on a timely basis) provides the PDP sponsor or the MA organization offering the plan, a subsidy with respect to such drug that is equal to 10 percent of the negotiated price (as defined in section 1860D–14C(g)(6)) of such drug.</text></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H15F614D10D7643C3AAF0EDA57FB9313C"><enum>(2)</enum><header>Sunset of Medicare coverage gap discount program</header><text>Section 1860D–14A of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-114a">42 U.S.C. 1395w–114a</external-xref>) is amended—</text><subparagraph id="H89355D2E2DFC4855B81B6C6FAA0A0B3E"><enum>(A)</enum><text>in subsection (a), in the first sentence, by striking <quote>The Secretary</quote> and inserting <quote>Subject to subsection (h), the Secretary</quote>; and</text></subparagraph><subparagraph id="HE3F85C253699457EB765DC1C031CE196"><enum>(B)</enum><text>by adding at the end the following new subsection:</text><quoted-block display-inline="no-display-inline" id="H94E751BA0F954A3BA6783574B2323FCE" style="OLC" changed="added" reported-display-style="italic"><subsection id="HBE61848916964CE5B4BFF6B9D54A26E9"><enum>(h)</enum><header>Sunset of program</header><paragraph id="H97BEBF57DF6243C6A6E744FC441DD4BA"><enum>(1)</enum><header>In general</header><text>The program shall not apply with respect to applicable drugs dispensed on or after January 1, 2025, and, subject to paragraph (2), agreements under this section shall be terminated as of such date.</text></paragraph><paragraph id="H31EC78936B104FE5829DA2E262A33970"><enum>(2)</enum><header>Continued application for applicable drugs dispensed prior to sunset</header><text>The provisions of this section (including all responsibilities and duties) shall continue to apply on and after January 1, 2025, with respect to applicable drugs dispensed prior to such date.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="id597E617458A6423F8472D74006B25DC6"><enum>(3)</enum><header>Selected drug subsidy payments from Medicare prescription drug account</header><text>Section 1860D–16(b)(1) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-116">42 U.S.C. 1395w–116(b)(1)</external-xref>) is amended—</text><subparagraph id="id1ADEA2E1720F4D83ABC6C91AAD86978D"><enum>(A)</enum><text>in subparagraph (C), by striking <quote>and</quote> at the end;</text></subparagraph><subparagraph id="idF39D8BD1AF5C4E8EBA29E27924BD1BA0"><enum>(B)</enum><text>in subparagraph (D), by striking the period at the end and inserting <quote>; and</quote>; and</text></subparagraph><subparagraph id="id57CB43B1DF124414B03100EF4C2B6D3F"><enum>(C)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id2D7297C1D7FB485A8F4A48FEE0A150F3" changed="added" reported-display-style="italic"><subparagraph id="id313B3A43CCBF461DB93ED2488BB2C011"><enum>(E)</enum><text>payments under section 1860D–14D (relating to selected drug subsidy payments).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="id7252F0953939496AA963FB190536A02E"><enum>(d)</enum><header>Medicare part D premium stabilization</header><paragraph id="idB7FEF7E3EDE245C984B2B7D7150FC4A5"><enum>(1)</enum><header>2024 through 2029</header><text display-inline="yes-display-inline">Section 1860D–13 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-113">42 U.S.C. 1395w–113</external-xref>) is amended—</text><subparagraph id="id6488E2F5D458418997BE2386F13F3556"><enum>(A)</enum><text>in subsection (a)—</text><clause id="id7B51D9EC85564C7EB9D8D64DEDEA7694"><enum>(i)</enum><text>in paragraph (1)(A), by inserting <quote>or (8) (as applicable)</quote> after <quote>paragraph (2)</quote>;</text></clause><clause id="id11926ADC76C34949968C082FFBE479BC"><enum>(ii)</enum><text>in paragraph (2), in the matter preceding subparagraph (A), by striking <quote>The base</quote> and inserting <quote>Subject to paragraph (8), the base</quote>; </text></clause><clause id="idD49C4CDDFF5F4587908B4BF3C3E9E573"><enum>(iii)</enum><text>in paragraph (7)—</text><subclause id="id09B9F7E22BDC42B7964D7A7E397A7942"><enum>(I)</enum><text>in subparagraph (B)(ii), by inserting <quote>or (8) (as applicable)</quote> after <quote>paragraph (2)</quote>; and</text></subclause><subclause id="id5386345345B14DBF86A90BC74B9E6431"><enum>(II)</enum><text>in subparagraph (E)(i), by inserting <quote>or (8) (as applicable)</quote> after <quote>paragraph (2)</quote>; and</text></subclause></clause><clause id="id66FB35BBB0E646DF96F9BBAEB81F4E39"><enum>(iv)</enum><text>by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idD120AB8237E9409094405F5442F7C9BE" changed="added" reported-display-style="italic"><paragraph id="idBC7BEE1468DA4329A98EF4FFBC3CCFF7"><enum>(8)</enum><header>Premium stabilization</header><subparagraph id="id7488062E5075488BA6D58F887A347E06"><enum>(A)</enum><header>In general</header><text>The base beneficiary premium under this paragraph for a prescription drug plan for a month in 2024 through 2029 shall be computed as follows:</text><clause id="id38FF78CAAD0C4A20B031EB14CE6A5634"><enum>(i)</enum><header>2024</header><text>The base beneficiary premium for a month in 2024 shall be equal to the lesser of—</text><subclause id="id6B3C1EA67D9644B29BB725A8D10D4060"><enum>(I)</enum><text>the base beneficiary premium computed under paragraph (2) for a month in 2023 increased by 6 percent; or</text></subclause><subclause id="id7CAB11693F0044F8916C6C989E537ADE"><enum>(II)</enum><text>the base beneficiary premium computed under paragraph (2) for a month in 2024 that would have applied if this paragraph had not been enacted.</text></subclause></clause><clause id="idE97E01E9612C4B18B75D70EF1D99F032"><enum>(ii)</enum><header>2025</header><text>The base beneficiary premium for a month in 2025 shall be equal to the lesser of—</text><subclause id="idA634AC8024754440924E37EE5DB605C5"><enum>(I)</enum><text>the base beneficiary premium computed under clause (i) for a month in 2024 increased by 6 percent; or</text></subclause><subclause id="idF3E18B787D47464B83B0D794B44F09F2"><enum>(II)</enum><text>the base beneficiary premium computed under paragraph (2) for a month in 2025 that would have applied if this paragraph had not been enacted.</text></subclause></clause><clause id="id00E249B9A8534BFCBD6C9D75CFCBAF87"><enum>(iii)</enum><header>2026</header><text>The base beneficiary premium for a month in 2026 shall be equal to the lesser of—</text><subclause id="id4c438e63d2b94827be0370612f48beda"><enum>(I)</enum><text>the base beneficiary premium computed under clause (ii) for a month in 2025 increased by 6 percent; or</text></subclause><subclause id="id14c2808ebaef4834846c7d3977efe9b1"><enum>(II)</enum><text>the base beneficiary premium computed under paragraph (2) for a month in 2026 that would have applied if this paragraph had not been enacted.</text></subclause></clause><clause id="id0C9D2882560348618C675205F4A79F94"><enum>(iv)</enum><header>2027</header><text>The base beneficiary premium for a month in 2027 shall be equal to the lesser of—</text><subclause id="id3b256f5b961d49f3bf569487c352d122"><enum>(I)</enum><text>the base beneficiary premium computed under clause (iii) for a month in 2026 increased by 6 percent; or</text></subclause><subclause id="ide642acf0d9fd4ad7ba0a376044862cf7"><enum>(II)</enum><text>the base beneficiary premium computed under paragraph (2) for a month in 2027 that would have applied if this paragraph had not been enacted.</text></subclause></clause><clause id="id12DEF7F5CDFD4CBE977945448431D961"><enum>(v)</enum><header>2028</header><text>The base beneficiary premium for a month in 2028 shall be equal to the lesser of—</text><subclause id="id3bea1faf69fa4bce9dd4fa7e0fa6afb8"><enum>(I)</enum><text>the base beneficiary premium computed under clause (iv) for a month in 2027 increased by 6 percent; or</text></subclause><subclause id="id7bfb0b8d29ce4bde8281c31a9955661c"><enum>(II)</enum><text>the base beneficiary premium computed under paragraph (2) for a month in 2028 that would have applied if this paragraph had not been enacted.</text></subclause></clause><clause id="id4FFCABA783364DDB93EC751202F7908B"><enum>(vi)</enum><header>2029</header><text>The base beneficiary premium for a month in 2029 shall be equal to the lesser of—</text><subclause id="idC04837688B7E45319DF2138815726A9B"><enum>(I)</enum><text>the base beneficiary premium computed under clause (v) for a month in 2028 increased by 6 percent; or</text></subclause><subclause id="id76ED58F44A90445D9922ABBAB72797F9"><enum>(II)</enum><text>the base beneficiary premium computed under paragraph (2) for a month in 2029 that would have applied if this paragraph had not been enacted.</text></subclause></clause></subparagraph><subparagraph id="id715810B419E146F7A18C87AB05AD66D8"><enum>(B)</enum><header>Clarification regarding 2030 and subsequent years</header><text>The base beneficiary premium for a month in 2030 or a subsequent year shall be computed under paragraph (2) without regard to this paragraph.</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="id2EC9B00566124DB1BF2B3662B764E01D"><enum>(B)</enum><text>in subsection (b)(3)(A)(ii), by striking <quote>subsection (a)(2)</quote> and inserting <quote>paragraph (2) or (8) of subsection (a) (as applicable)</quote>.</text></subparagraph></paragraph><paragraph id="H912ED6E3A7C7408E8D08065C8471C659" commented="no"><enum>(2)</enum><header>Adjustment to beneficiary premium percentage for 2030 and subsequent years</header><text display-inline="yes-display-inline">Section 1860D–13(a) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-113">42 U.S.C. 1395w–113(a)</external-xref>), as amended by paragraph (1), is amended—</text><subparagraph id="id4362FE1C43F94651B25E2BEA28EC3F29"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (3)(A), by inserting <quote>(or, for 2030 and each subsequent year, the percent specified under paragraph (9))</quote> after <quote>25.5 percent</quote>; and</text></subparagraph><subparagraph id="id27696520E0904302B2348516438F3826"><enum>(B)</enum><text>by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id8EC36AFA2CB04B7C866767EB1F5D56D1" changed="added" reported-display-style="italic"><paragraph id="idF215AEEEFBC74B519F2008D80DC9165F"><enum>(9)</enum><header>Percent specified</header><subparagraph id="id19C6EC4EE95846ECB7A3337E79B6D381"><enum>(A)</enum><header>In general</header><text>Subject to subparagraph (B), for purposes of paragraph (3)(A), the percent specified under this paragraph for 2030 and each subsequent year is the percent that the Secretary determines is necessary to ensure that the base beneficiary premium computed under paragraph (2) for a month in 2030 is equal to the lesser of—</text><clause id="idA9111028C8F44F6198F29F4AB9D34219"><enum>(i)</enum><text>the base beneficiary premium computed under paragraph (8)(A)(vi) for a month in 2029 increased by 6 percent; or</text></clause><clause id="idCA1D75E5119A44C5A10EF2F626E4F01F"><enum>(ii)</enum><text>the base beneficiary premium computed under paragraph (2) for a month in 2030 that would have applied if this paragraph had not been enacted.</text></clause></subparagraph><subparagraph id="idFF3941C4562D4A9AB3AECC9A0F90FDAF"><enum>(B)</enum><header>Floor</header><text>The percent specified under subparagraph (A) may not be less than 20 percent.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="HC5364359137845A3A28BEC7A6FCFC653"><enum>(3)</enum><header>Conforming amendments</header><subparagraph id="id3A5EBDF2BD634EC987DFB44D1F57DB71"><enum>(A)</enum><text>Section 1854(b)(2)(B) of the Social Security Act <external-xref legal-doc="usc" parsable-cite="usc/42/1395w-24">42 U.S.C. 1395w–24(b)(2)(B)</external-xref>) is amended by striking <quote>section 1860D–13(a)(2)</quote> and inserting <quote>paragraph (2) or (8) (as applicable) of section 1860D–13(a)</quote>.</text></subparagraph><subparagraph id="HEE0D3F6EE5284EC39126AC2D6B8292F8"><enum>(B)</enum><text display-inline="yes-display-inline">Section 1860D–11(g)(6) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-111">42 U.S.C. 1395w–111(g)(6)</external-xref>) is amended by inserting <quote>(or, for 2030 and each subsequent year, the percent specified under section 1860D–13(a)(9))</quote> after <quote>25.5 percent</quote>.</text></subparagraph><subparagraph id="HAFD63BF976484CC195A7AAEC8F734755"><enum>(C)</enum><text display-inline="yes-display-inline">Section 1860D–13(a)(7)(B)(i) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-113">42 U.S.C. 1395w–113(a)(7)(B)(i)</external-xref>) is amended—</text><clause id="H68DAF2644E2D476A991ABA174201B8D4"><enum>(i)</enum><text display-inline="yes-display-inline">in subclause (I), by inserting <quote>(or, for 2030 and each subsequent year, the percent specified under paragraph (9))</quote> after <quote>25.5 percent</quote>; and</text></clause><clause id="HF60E62B2731F428290F0BD21A9BCFE0B"><enum>(ii)</enum><text display-inline="yes-display-inline">in subclause (II), by inserting <quote>(or, for 2030 and each subsequent year, the percent specified under paragraph (9))</quote> after <quote>25.5 percent</quote>.</text></clause></subparagraph><subparagraph id="HEBCF634554554550BDD00636142830E3"><enum>(D)</enum><text display-inline="yes-display-inline">Section 1860D–15(a) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-115">42 U.S.C. 1395w–115(a)</external-xref>) is amended—</text><clause id="id75FF41EDCEFC4FB68C80D70351B9D744"><enum>(i)</enum><text display-inline="yes-display-inline">in the matter preceding paragraph (1), by inserting <quote>(or, for each of 2024 through 2029, the percent applicable as a result of the application of section 1860D–13(a)(8), or, for 2030 and each subsequent year, 100 percent minus the percent specified under section 1860D–13(a)(9))</quote> after <quote>74.5 percent</quote>; and</text></clause><clause id="id22239D38EB9646618EAF3AD3AB6932B1"><enum>(ii)</enum><text>in paragraph (1)(B), by striking <quote>paragraph (2) of section 1860D–13(a)</quote> and inserting <quote>paragraph (2) or (8) of section 1860D–13(a) (as applicable)</quote>.</text></clause></subparagraph></paragraph></subsection><subsection id="H8AB99ABB0FF84C6988BABAC61F83B1CA"><enum>(e)</enum><header>Conforming amendments</header><paragraph id="HA14060E82E324FBB9C1F9B1A8FEC71D0"><enum>(1)</enum><text>Section 1860D–2 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-102">42 U.S.C. 1395w–102</external-xref>) is amended—</text><subparagraph id="HCE9EF7C6AAB848C0B81F56BA47F89FCE"><enum>(A)</enum><text>in subsection (a)(2)(A)(i)(I), by striking <quote>, or an increase in the initial</quote> and inserting <quote>or, for a year preceding 2025, an increase in the initial</quote>;</text></subparagraph><subparagraph id="H9E0B40CD0A2C4D4983CE0FC3BD9CD9FD"><enum>(B)</enum><text>in subsection (c)(1)(C)—</text><clause id="HF461D432AE6E4A53844B2C0F83EA2B4F"><enum>(i)</enum><text>in the subparagraph heading, by striking <quote><header-in-text level="subparagraph" style="OLC">at initial coverage limit</header-in-text></quote>; and</text></clause><clause id="HC11CE3257C384D82B6E3476D1322F06A"><enum>(ii)</enum><text>by inserting <quote>for a year preceding 2025 or the annual out-of-pocket threshold specified in subsection (b)(4)(B) for the year for 2025 and each subsequent year</quote> after <quote>subsection (b)(3) for the year</quote> each place it appears; and</text></clause></subparagraph><subparagraph id="HC7C906C9D05C4FA0BAAAF1B5612FBB2B"><enum>(C)</enum><text>in subsection (d)(1)(A), by striking <quote>or an initial</quote> and inserting <quote>or, for a year preceding 2025, an initial</quote>.</text></subparagraph></paragraph><paragraph id="H11024B5716484830B38ECA55818DC6CF"><enum>(2)</enum><text>Section 1860D–4(a)(4)(B)(i) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-104">42 U.S.C. 1395w–104(a)(4)(B)(i)</external-xref>) is amended by striking <quote>the initial</quote> and inserting <quote>for a year preceding 2025, the initial</quote>.</text></paragraph><paragraph id="H9917448E6D584AEA967CAAFCC0534240"><enum>(3)</enum><text>Section 1860D–14(a) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-114">42 U.S.C. 1395w–114(a)</external-xref>) is amended—</text><subparagraph id="H0BC74DE9837A4E8498960AC5030CBAAD"><enum>(A)</enum><text>in paragraph (1)—</text><clause id="H5EF6A07DE2704979B519C1A71CD4BC12"><enum>(i)</enum><text>in subparagraph (C), by striking <quote>The continuation</quote> and inserting <quote>For a year preceding 2025, the continuation</quote>;</text></clause><clause id="HD40477BB5CF34756A1E3CEC37EACEA60"><enum>(ii)</enum><text>in subparagraph (D)(iii), by striking <quote>1860D–2(b)(4)(A)(i)(I)</quote> and inserting <quote>1860D–2(b)(4)(A)(i)(I)(aa)</quote>; and</text></clause><clause id="H6C3DEDE346504AD784873E717E84AE41"><enum>(iii)</enum><text>in subparagraph (E), by striking <quote>The elimination</quote> and inserting <quote>For a year preceding 2024, the elimination</quote>; and</text></clause></subparagraph><subparagraph id="H3D404AEF209C4F6A976C20FDF8105E11"><enum>(B)</enum><text>in paragraph (2)(E), by striking <quote>1860D–2(b)(4)(A)(i)(I)</quote> and inserting <quote>1860D–2(b)(4)(A)(i)(I)(aa)</quote>.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2C63E5D15DAA4FA4BC99182D9AA8A539"><enum>(4)</enum><text display-inline="yes-display-inline">Section 1860D–21(d)(7) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-131">42 U.S.C. 1395w–131(d)(7)</external-xref>) is amended by striking <quote>section 1860D–2(b)(4)(B)(i)</quote> and inserting <quote>section 1860D–2(b)(4)(C)(i)</quote>.</text></paragraph><paragraph id="H5A2771A72C1D4285A5FDAC3DFE64AAB7"><enum>(5)</enum><text display-inline="yes-display-inline">Section 1860D–22(a)(2)(A) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-132">42 U.S.C. 1395w–132(a)(2)(A)</external-xref>) is amended—</text><subparagraph id="H4EE51B4EDC2E43979B9D1E4E4F91D538"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>the value of any discount</quote> and inserting the following:</text><quoted-block display-inline="yes-display-inline" id="H612E4052A82C4F6D81FD012C0D23C964" style="OLC" changed="added" reported-display-style="italic"><text>the value of—</text><clause id="H1B8F3BA3DB2C46B1A04A1424B56CE097"><enum>(i)</enum><text display-inline="yes-display-inline">for years prior to 2025, any discount</text></clause><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph><subparagraph id="HC3C10A5D75C04A4B957AED39FA7409F2"><enum>(B)</enum><text>in clause (i), as inserted by subparagraph (A) of this paragraph, by striking the period at the end and inserting <quote>; and</quote>; and</text></subparagraph><subparagraph id="HEFD01C15CB144E8AB564D2349EF79D8A"><enum>(C)</enum><text>by adding at the end the following new clause:</text><quoted-block display-inline="no-display-inline" id="H3C480BE199AB4D28A4F89925DAB3D4B2" style="OLC" changed="added" reported-display-style="italic"><clause commented="no" id="HC6E78007D4E7414F9188BBCEA176DBA7"><enum>(ii)</enum><text>for 2025 and each subsequent year, any discount provided pursuant to section 1860D–14C.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="HF33CDE5DAC8B49919D46A44011D61B1C"><enum>(6)</enum><text>Section 1860D–41(a)(6) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-151">42 U.S.C. 1395w–151(a)(6)</external-xref>) is amended—</text><subparagraph id="HA2B4C74D53C149E787BD5CF523FA070E"><enum>(A)</enum><text>by inserting <quote>for a year before 2025</quote> after <quote>1860D–2(b)(3)</quote>; and</text></subparagraph><subparagraph id="H095BD20849E74E07AC60FB1B858FC204"><enum>(B)</enum><text>by inserting <quote>for such year</quote> before the period.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H00DA70CCBE6D4455AA46F2399424E19E"><enum>(7)</enum><text display-inline="yes-display-inline">Section 1860D–43 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-153">42 U.S.C. 1395w–153</external-xref>) is amended—</text><subparagraph id="H3CE6E34DAE96437094800C4ABC79ECF5"><enum>(A)</enum><text>in subsection (a)—</text><clause id="H7010EA5D34E74483A3B7AB49A3B6ABFF"><enum>(i)</enum><text>by striking paragraph (1) and inserting the following:</text><quoted-block display-inline="no-display-inline" id="HEBC263D267DB4217A8C2E756655626F0" style="OLC" changed="added" reported-display-style="italic"><paragraph commented="no" display-inline="no-display-inline" id="HD4FD935B8A704FB59BD749EE8F761A4A"><enum>(1)</enum><text>participate in—</text><subparagraph commented="no" display-inline="no-display-inline" id="HE2A13F1B15A442008AE22A107A827A41"><enum>(A)</enum><text>for 2011 through 2024, the Medicare coverage gap discount program under section 1860D–14A; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H31C655DE1C5440809B778ACAFA923856"><enum>(B)</enum><text>for 2025 and each subsequent year, the manufacturer discount program under section 1860D–14C;</text></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></clause><clause id="H0FADA248C84F461FBEF7F10314F4BA43"><enum>(ii)</enum><text>by striking paragraph (2) and inserting the following:</text><quoted-block style="OLC" id="H1D2CFD3BF5364074ACD1149E95CA977A" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="H8E79D9357DED46DAAA6B2F2219D041D8"><enum>(2)</enum><text display-inline="yes-display-inline">have entered into and have in effect—</text><subparagraph id="H542F9ACE2484488DA1F5CC9B2D6F04B3"><enum>(A)</enum><text>for 2011 through 2024, an agreement described in subsection (b) of section 1860D–14A with the Secretary; and</text></subparagraph><subparagraph id="HE57A791387EE486EA97D466655FE9BB2"><enum>(B)</enum><text>for 2025 and each subsequent year, an agreement described in subsection (b) of section 1860D–14C with the Secretary; and</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause><clause id="id641F0CA64C1541269C0D45E323948592"><enum>(iii)</enum><text>in paragraph (3), by striking <quote>such section</quote> and inserting <quote>section 1860D–14A</quote>; and</text></clause></subparagraph><subparagraph id="H5107BC862D4245189D24909457D4BE21"><enum>(B)</enum><text>by striking subsection (b) and inserting the following:</text><quoted-block style="OLC" id="HA4BC5FFD8F3E444BB98613189B60F486" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subsection id="H76CA8A94CEBB42AEAFBBAE450485BD04"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">Paragraphs (1)(A), (2)(A), and (3) of subsection (a) shall apply to covered part D drugs dispensed under this part on or after January 1, 2011, and before January 1, 2025, and paragraphs (1)(B) and (2)(B) of such subsection shall apply to covered part D drugs dispensed under this part on or after January 1, 2025.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="HECF8D1CEF86F4B0A9B61E438749929D2"><enum>(8)</enum><text display-inline="yes-display-inline">Section 1927 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396r-8">42 U.S.C. 1396r–8</external-xref>) is amended—</text><subparagraph id="H1B1277191D4B4055A2A5472292BDF74D"><enum>(A)</enum><text display-inline="yes-display-inline">in subsection (c)(1)(C)(i)(VI), by inserting before the period at the end the following: <quote>or under the manufacturer discount program under section 1860D–14C</quote>; and</text></subparagraph><subparagraph id="H4AB25B309C4A4BC999EC87FD2042F485"><enum>(B)</enum><text display-inline="yes-display-inline">in subsection (k)(1)(B)(i)(V), by inserting before the period at the end the following: <quote>or under section 1860D–14C</quote>.</text></subparagraph></paragraph></subsection><subsection id="H270A0906F32B4C10888156824BE8B65D" commented="no"><enum>(f)</enum><header>Implementation for 2024 through 2026</header><text>The Secretary shall implement this section, including the amendments made by this section, for 2024, 2025, and 2026 by program instruction or other forms of program guidance.</text></subsection><subsection id="H68067898380D4084A205E0570BD9DA11"><enum>(g)</enum><header>Funding</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there are appropriated to the Centers for Medicare & Medicaid Services, out of any money in the Treasury not otherwise appropriated, $341,000,000 for fiscal year 2022, including $20,000,000 and $65,000,000 to carry out the provisions of, including the amendments made by, this section in fiscal years 2022 and 2023, respectively, and $32,000,000 to carry out the provisions of, including the amendments made by, this section in each of fiscal years 2024 through 2031, to remain available until expended.</text></subsection></section><section id="HC9270D56FCA34936ACA51D9871901287"><enum>11202.</enum><header>Maximum monthly cap on cost-sharing payments under prescription drug plans and MA–PD plans</header><subsection id="HFDDCACC54B5A486189431AB689DF1124"><enum>(a)</enum><header>In general</header><text>Section 1860D–2(b) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-102">42 U.S.C. 1395w–102(b)</external-xref>) is amended—</text><paragraph id="H4A739F803B134E2B93AC0A4C1364E3E0"><enum>(1)</enum><text>in paragraph (2)—</text><subparagraph id="H46B164D235784E4EABEC061D5F88E161"><enum>(A)</enum><text>in subparagraph (A), by striking <quote>and (D)</quote> and inserting <quote>, (D), and (E)</quote>; and</text></subparagraph><subparagraph id="HCFF5B6708DF940A0A3B300765837A6D2"><enum>(B)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block id="H64CB05014652443ABCEE934F64295F49" style="OLC" changed="added" reported-display-style="italic"><subparagraph id="HFF41975E8E0445A0B925553340B10C37"><enum>(E)</enum><header>Maximum monthly cap on cost-sharing payments</header><clause id="H45D10E5C26EC4A109E0BB045BA654EEF"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">For plan years beginning on or after January 1, 2025, each PDP sponsor offering a prescription drug plan and each MA organization offering an MA–PD plan shall provide to any enrollee of such plan, including an enrollee who is a subsidy eligible individual (as defined in paragraph (3) of section 1860D–14(a)), the option to elect with respect to a plan year to pay cost-sharing under the plan in monthly amounts that are capped in accordance with this subparagraph.</text></clause><clause id="H561C6903B85E4637B6253142299857AF"><enum>(ii)</enum><header>Determination of maximum monthly cap</header><text>For each month in the plan year for which an enrollee in a prescription drug plan or an MA–PD plan has made an election pursuant to clause (i), the PDP sponsor or MA organization shall determine a maximum monthly cap (as defined in clause (iv)) for such enrollee.</text></clause><clause id="HCCFBD4A796AF4087A73312CBEFEDD3F6"><enum>(iii)</enum><header>Beneficiary monthly payments</header><text>With respect to an enrollee who has made an election pursuant to clause (i), for each month described in clause (ii), the PDP sponsor or MA organization shall bill such enrollee an amount (not to exceed the maximum monthly cap) for the out-of-pocket costs of such enrollee in such month.</text></clause><clause id="HE1258AB3ACF7476280EBC737696B3564"><enum>(iv)</enum><header>Maximum monthly cap defined</header><text>In this subparagraph, the term <quote>maximum monthly cap</quote> means, with respect to an enrollee—</text><subclause id="HF2122A28627A4EB29A83A858FB54E7D7"><enum>(I)</enum><text display-inline="yes-display-inline">for the first month for which the enrollee has made an election pursuant to clause (i), an amount determined by calculating—</text><item id="H0F86C7FDEB3840F6A2924928647DA811"><enum>(aa)</enum><text>the annual out-of-pocket threshold specified in paragraph (4)(B) minus the incurred costs of the enrollee as described in paragraph (4)(C); divided by</text></item><item id="H2390755D2D744A2C883EF30F31E6784F"><enum>(bb)</enum><text>the number of months remaining in the plan year; and</text></item></subclause><subclause id="H55FD4EF0C7294FCA9AB7A49B0AA7F313"><enum>(II)</enum><text>for a subsequent month, an amount determined by calculating—</text><item id="H092F743B0C3448F8AB7DD13BEC2DB8D1"><enum>(aa)</enum><text>the sum of any remaining out-of-pocket costs owed by the enrollee from a previous month that have not yet been billed to the enrollee and any additional out-of-pocket costs incurred by the enrollee; divided by</text></item><item id="HE055BE113FBF4C89812258336A530F41"><enum>(bb)</enum><text>the number of months remaining in the plan year.</text></item></subclause></clause><clause id="H99C8F616AA9842AF8214DBD2FC0DBD43"><enum>(v)</enum><header>Additional requirements</header><text>The following requirements shall apply with respect to the option to make an election pursuant to clause (i) under this subparagraph:</text><subclause id="H42ACCD18A801408182F437ACC8194087"><enum>(I)</enum><header>Secretarial responsibilities</header><text>The Secretary shall provide information to part D eligible individuals on the option to make such election through educational materials, including through the notices provided under section 1804(a).</text></subclause><subclause id="HDFF84001D05F49ED8066251B1FEFA15A"><enum>(II)</enum><header>Timing of election</header><text>An enrollee in a prescription drug plan or an MA–PD plan may make such an election—</text><item id="H09438F677A374D7A8AB20F4ECC6D254E"><enum>(aa)</enum><text>prior to the beginning of the plan year; or</text></item><item id="H4EBA2B2B413C4359BB21A38ABA93E3E1"><enum>(bb)</enum><text>in any month during the plan year.</text></item></subclause><subclause id="HED8DE5F305B340A19CE3F8105201697F"><enum>(III)</enum><header>Pdp sponsor and ma organization responsibilities</header><text>Each PDP sponsor offering a prescription drug plan or MA organization offering an MA–PD plan—</text><item id="H3E8F87BADDB0422CBC9E447BA17EA065"><enum>(aa)</enum><text>may not limit the option for an enrollee to make such an election to certain covered part D drugs;</text></item><item id="H6EBCECFD45AF4863A661D9A8F6B88033"><enum>(bb)</enum><text>shall, prior to the plan year, notify prospective enrollees of the option to make such an election in promotional materials;</text></item><item id="H635D5E0CFFB34353B7BFDED2939A121E"><enum>(cc)</enum><text>shall include information on such option in enrollee educational materials;</text></item><item id="H0DD1CD64B5BB47059D71FF634962AAD2"><enum>(dd)</enum><text>shall have in place a mechanism to notify a pharmacy during the plan year when an enrollee incurs out-of-pocket costs with respect to covered part D drugs that make it likely the enrollee may benefit from making such an election;</text></item><item id="H5265B299517A45DD8B311637F0240A82"><enum>(ee)</enum><text>shall provide that a pharmacy, after receiving a notification described in item (dd) with respect to an enrollee, informs the enrollee of such notification;</text></item><item id="HA58DDA5EF633457EBC721B2CB2707CDD"><enum>(ff)</enum><text>shall ensure that such an election by an enrollee has no effect on the amount paid to pharmacies (or the timing of such payments) with respect to covered part D drugs dispensed to the enrollee; and</text></item><item id="HB129D66D848C4C2E8CB27DCB269913AC"><enum>(gg)</enum><text>shall have in place a financial reconciliation process to correct inaccuracies in payments made by an enrollee under this subparagraph with respect to covered part D drugs during the plan year.</text></item></subclause><subclause id="HDB20FDA2A04D400EBC50E0AC11C6B39A"><enum>(IV)</enum><header>Failure to pay amount billed</header><text>If an enrollee fails to pay the amount billed for a month as required under this subparagraph—</text><item id="id6734F9AF96D94B0DA55775A6342FF7FF"><enum>(aa)</enum><text>the election of the enrollee pursuant to clause (i) shall be terminated and the enrollee shall pay the cost-sharing otherwise applicable for any covered part D drugs subsequently dispensed to the enrollee up to the annual out-of-pocket threshold specified in paragraph (4)(B); and</text></item><item id="id5C070F62113A4A40A693831FDEE6FFC2"><enum>(bb)</enum><text>the PDP sponsor or MA organization may preclude the enrollee from making an election pursuant to clause (i) in a subsequent plan year.</text></item></subclause><subclause id="H2795826FF4AD4E50977F7581F0FA0974" commented="no"><enum>(V)</enum><header>Clarification regarding past due amounts</header><text>Nothing in this subparagraph shall be construed as prohibiting a PDP sponsor or an MA organization from billing an enrollee for an amount owed under this subparagraph.</text></subclause><subclause id="H28382BC5AC974488991A6865C8945758"><enum>(VI)</enum><header>Treatment of unsettled balances</header><text>Any unsettled balances with respect to amounts owed under this subparagraph shall be treated as plan losses and the Secretary shall not be liable for any such balances outside of those assumed as losses estimated in plan bids.</text></subclause></clause></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="H2571B78325D245AE9260C1C859E98FFB"><enum>(2)</enum><text>in paragraph (4)—</text><subparagraph id="H40C4DE6F57F542DE8D01FF6DCA0FBE82"><enum>(A)</enum><text>in subparagraph (C), by striking <quote>subparagraph (E)</quote> and inserting <quote>subparagraph (E) or subparagraph (F)</quote>; and</text></subparagraph><subparagraph id="H87888B690E074B6D921239DCF824E8FB"><enum>(B)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block id="HE14A89AC453A4DD181C0349B0C25F131" style="OLC" changed="added" reported-display-style="italic"><subparagraph id="HEACE987023D74227B896F0C83AA0370E"><enum>(F)</enum><header>Inclusion of costs paid under maximum monthly cap option</header><text>In applying subparagraph (A), with respect to an enrollee who has made an election pursuant to clause (i) of paragraph (2)(E), costs shall be treated as incurred if such costs are paid by a PDP sponsor or an MA organization under the option provided under such paragraph.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="H8932B65FD01A494F8F860CD4D624996E"><enum>(b)</enum><header>Application to alternative prescription drug coverage</header><text>Section 1860D–2(c) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-102">42 U.S.C. 1395w–102(c)</external-xref>) is amended by adding at the end the following new paragraph:</text><quoted-block id="H64F91CB0186D460AB73234AEC4D65D2E" style="OLC" changed="added" reported-display-style="italic"><paragraph id="H82B8FC160CFF4C84B51564FC15592AF0"><enum>(4)</enum><header>Same maximum monthly cap on cost-sharing</header><text>The maximum monthly cap on cost-sharing payments shall apply to coverage with respect to an enrollee who has made an election pursuant to clause (i) of subsection (b)(2)(E) under the option provided under such subsection.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H78AE175A021048F9B4FA11D54B8C1918"><enum>(c)</enum><header>Implementation for 2025</header><text display-inline="yes-display-inline">The Secretary shall implement this section, including the amendments made by this section, for 2025 by program instruction or other forms of program guidance.</text></subsection><subsection id="H9BA7B43D7F644704B8DEB65727B04AB5"><enum>(d)</enum><header>Funding</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there are appropriated to the Centers for Medicare & Medicaid Services, out of any money in the Treasury not otherwise appropriated, $10,000,000 for fiscal year 2023, to remain available until expended, to carry out the provisions of, including the amendments made by, this section. </text></subsection></section></part><part id="HB61AF823499E41208D965232138D7627"><enum>4</enum><header>Continued Delay of Implementation of Prescription Drug Rebate Rule</header><section id="id443A89CF8741490E81440DBC46DA7357"><enum>11301.</enum><header>Extension of moratorium on implementation of rule relating to eliminating the anti-kickback statute safe harbor protection for prescription drug rebates</header><text display-inline="no-display-inline">The Secretary of Health and Human Services shall not, prior to January 1, 2032, implement, administer, or enforce the provisions of the final rule published by the Office of the Inspector General of the Department of Health and Human Services on November 30, 2020, and titled <quote>Fraud and Abuse; Removal of Safe Harbor Protection for Rebates Involving Prescription Pharmaceuticals and Creation of New Safe Harbor Protection for Certain Point-of-Sale Reductions in Price on Prescription Pharmaceuticals and Certain Pharmacy Benefit Manager Service Fees </quote> (85 Fed. Reg. 76666). </text></section></part><part id="H64F9049B2BB043D394E52EF488A19C79" commented="no"><enum>5</enum><header>Miscellaneous</header><section id="id61E1D6AA04E94369BEA3202BCFAF4189" commented="no"><enum>11401.</enum><header>Coverage of adult vaccines recommended by the Advisory Committee on Immunization Practices under Medicare part D</header><subsection id="id9069DF3CA84D4400B2153DD7E29AAE82" commented="no"><enum>(a)</enum><header>Ensuring treatment of cost-sharing and deductible is consistent with treatment of vaccines under medicare part b</header><text>Section 1860D–2 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-102">42 U.S.C. 1395w–102</external-xref>), as amended by sections 11201 and 11202, is amended—</text><paragraph id="id8B05E0F296D247B9A0E7E06E80EBF250" commented="no"><enum>(1)</enum><text>in subsection (b)—</text><subparagraph id="id6FDF9771DD804EE5ABDFF1E548F888EB" commented="no"><enum>(A)</enum><text>in paragraph (1)(A), by striking <quote>The coverage</quote> and inserting <quote>Subject to paragraph (8), the coverage</quote>;</text></subparagraph><subparagraph id="idC60036320731482B9A40DBA4A78FD8CF" commented="no"><enum>(B)</enum><text>in paragraph (2)—</text><clause commented="no" id="id86AB259BB6C54CFD8A229BAF36B59973"><enum>(i)</enum><text>in subparagraph (A), by inserting <quote>and paragraph (8)</quote> after <quote>and (E)</quote>;</text></clause><clause commented="no" id="id5B425836932F4B719EE423469F2FA966"><enum>(ii)</enum><text>in subparagraph (C)(i), in the matter preceding subclause (I), by striking <quote>paragraph (4)</quote> and inserting <quote>paragraphs (4) and (8)</quote>; and</text></clause><clause commented="no" id="id1F31F23072384502AF3AD8C1900A559B"><enum>(iii)</enum><text>in subparagraph (D)(i), in the matter preceding subclause (I), by striking <quote>paragraph (4)</quote> and inserting <quote>paragraphs (4) and (8)</quote>;</text></clause></subparagraph><subparagraph id="idcde5b41041dc4893b118bc646b8424cc"><enum>(C)</enum><text>in paragraph (3)(A), in the matter preceding clause (i), by striking <quote>and (4)</quote> and inserting <quote>(4), and (8)</quote>; </text></subparagraph><subparagraph id="idE73397F0E62D41C9888223A7AE858108" commented="no"><enum>(D)</enum><text>in paragraph (4)(A)(i), by striking <quote>The coverage</quote> and inserting <quote>Subject to paragraph (8), the coverage</quote>; and</text></subparagraph><subparagraph id="id413BDE11F6EF49BCA76CDF0EACA3076B" commented="no"><enum>(E)</enum><text>by adding at the end the following new paragraph:</text><quoted-block id="idCC29555908154C198AC223998E253676" style="OLC" changed="added" reported-display-style="italic"><paragraph id="id5A41EFC17EBD4CC2A9076098CBF9DD28" commented="no"><enum>(8)</enum><header>Treatment of cost-sharing for adult vaccines recommended by the advisory committee on immunization practices consistent with treatment of vaccines under part b</header><subparagraph id="id3CFA06D3181A47FCA7DF3F535D673BE6" commented="no"><enum>(A)</enum><header>In general</header><text>For plan years beginning on or after January 1, 2023, with respect to an adult vaccine recommended by the Advisory Committee on Immunization Practices (as defined in subparagraph (B))—</text><clause commented="no" id="id9451F26F678B40648A76ECF55B8B1DBA"><enum>(i)</enum><text>the deductible under paragraph (1) shall not apply; and</text></clause><clause commented="no" id="idBF0C79E2E21A4A01B0E222831A0B04D3"><enum>(ii)</enum><text>there shall be no coinsurance or other cost-sharing under this part with respect to such vaccine.</text></clause></subparagraph><subparagraph id="id443ACBF62D5C48F5BFEA5F671FBEEEA2" commented="no"><enum>(B)</enum><header>Adult vaccines recommended by the advisory committee on immunization practices</header><text>For purposes of this paragraph, the term <quote>adult vaccine recommended by the Advisory Committee on Immunization Practices</quote> means a covered part D drug that is a vaccine licensed under section 351 of the Public Health Service Act for use by adult populations and administered in accordance with recommendations of the Advisory Committee on Immunization Practices of the Centers for Disease Control and Prevention.</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="id2CD425B04876484A9336573AC0E96FCD" commented="no"><enum>(2)</enum><text>in subsection (c), by adding at the end the following new paragraph: </text><quoted-block style="OLC" id="id832D49544E8F4D42A5E1F9B506BBA627" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="id3FB5878199E24988BBB1CC1851135992" commented="no"><enum>(5)</enum><header>Treatment of cost-sharing for adult vaccines recommended by the advisory committee on immunization practices</header><text display-inline="yes-display-inline">The coverage is in accordance with subsection (b)(8).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="id4BF5917B6F804AEEB2AF0D5A09A14965" commented="no"><enum>(b)</enum><header>Conforming amendments to cost-sharing for low-income individuals</header><text>Section 1860D–14(a) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-114">42 U.S.C. 1395w–114(a)</external-xref>), as amended by <external-xref legal-doc="usc" parsable-cite="usc/26/11201">section 11201,</external-xref> is amended—</text><paragraph id="id5BACAD9E270B41C0B5F357F9B40961E7" commented="no"><enum>(1)</enum><text>in paragraph (1)(D), in each of clauses (ii) and (iii), by striking <quote>In the case</quote> and inserting <quote>Subject to paragraph (6), in the case</quote>;</text></paragraph><paragraph id="idB83CDC060DEE4DCDB834DB21FEF964AA" commented="no"><enum>(2)</enum><text>in paragraph (2)—</text><subparagraph id="idA2AF46057B794C75940297A13B882580" commented="no"><enum>(A)</enum><text>in subparagraph (B), by striking <quote>A reduction</quote> and inserting <quote>Subject to section 1860D–2(b)(8), a reduction</quote>;</text></subparagraph><subparagraph id="id0272992BF19A4F5C8010F6B81E1F037D" commented="no"><enum>(B)</enum><text>in subparagraph (D), by striking <quote>The substitution</quote> and inserting <quote>Subject to paragraph (6), the substitution</quote>; and</text></subparagraph><subparagraph id="id2F0B14E9EBA94CB599D03C7B74244D58"><enum>(C)</enum><text>in subparagraph (E), by striking <quote>subsection (c)</quote> and inserting <quote>paragraph (6) of this subsection and subsection (c)</quote>; and </text></subparagraph></paragraph><paragraph id="idE07DC304EAA2488E8DFCB3C5210D6E20" commented="no"><enum>(3)</enum><text>by adding at the end the following new paragraph:</text><quoted-block id="id0E802E44289949D2B9E4BADDEF0A19E2" style="OLC" changed="added" reported-display-style="italic"><paragraph id="id3E922BA48DD944D180CF89313A1C741A" commented="no"><enum>(6)</enum><header>No application of cost-sharing or deductible for adult vaccines recommended by the advisory committee on immunization practices</header><text>For plan years beginning on or after January 1, 2023, with respect to an adult vaccine recommended by the Advisory Committee on Immunization Practices (as defined in section 1860D–2(b)(8)(B))—</text><subparagraph commented="no" id="idB80CD2AAC1474AE99A1DCEC6C6DCF9EE"><enum>(A)</enum><text>the deductible under section 1860D–2(b)(1) shall not apply; and</text></subparagraph><subparagraph commented="no" id="idE31B0B846CFC4EE281BFC972F4696832"><enum>(B)</enum><text>there shall be no cost-sharing under this section with respect to such vaccine.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="id74ad11cbf0f84eedaa0cf77881f19faa"><enum>(c)</enum><header>Temporary retrospective subsidy</header><paragraph id="idC6790D11D54442948C872AEA3617CDE5"><enum>(1)</enum><header>In general</header><text>Section 1860D–15 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-115">42 U.S.C. 1395w–115</external-xref>) is amended by adding at the end the following new subsection:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id0a51dbe26d5d46adaf75b143912bec96" changed="added" reported-display-style="italic"><subsection id="id16792e9b5c7440e4b28940fa83dfefdd"><enum>(h)</enum><header>Temporary retrospective subsidy for reduction in cost-sharing and deductible for adult vaccines recommended by the advisory committee on immunization practices during 2023</header><paragraph id="id8afb86ffc481411ba94de96e32d65b88"><enum>(1)</enum><header>In general</header><text>In addition to amounts otherwise payable under this section to a PDP sponsor of a prescription drug plan or an MA organization offering an MA–PD plan, for plan year 2023, the Secretary shall provide the PDP sponsor or MA organization offering the plan subsidies in an amount equal to the aggregate reduction in cost-sharing and deductible by reason of the application of section 1860D–2(b)(8) for individuals under the plan during the year.</text></paragraph><paragraph id="id80e59ef3a29b4bc283605310f5f45bf9"><enum>(2)</enum><header>Timing</header><text>The Secretary shall provide a subsidy under paragraph (1), as applicable, not later than 18 months following the end of the applicable plan year.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id21C1AD2534074604BDC78BC3FFC86A60"><enum>(2)</enum><header>Treatment as incurred costs</header><text>Section 1860D–2(b)(4)(C)(iii)(I) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-102">42 U.S.C. 1395w–102(b)(4)(C)(iii)(I)</external-xref>), as amended by <external-xref legal-doc="usc" parsable-cite="usc/26/11201">section 11201(a)(3)(C),</external-xref> is amended—</text><subparagraph id="id84AB4DEBF0024D10BB0B02CF3CF6BDBB"><enum>(A)</enum><text>in item (cc), by striking <quote>or</quote> at the end; and</text></subparagraph><subparagraph id="idC55553F7431E444EB77CB72B7AD7AC0C"><enum>(B)</enum><text>by adding at the end the following new item:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idFC0F5C4D0E5A4A6CACC583D8428194C2" changed="added" reported-display-style="italic"><item id="idF4C1D9FB02B54928A7A0D5965BED417A"><enum>(dd)</enum><text>under section 1860D–15(h); or</text></item><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="id330DAD6F0FE143D2A6B1042ED6091B02" commented="no"><enum>(d)</enum><header>Rule of construction</header><text display-inline="yes-display-inline">Nothing in this section shall be construed as limiting coverage under part D of title XVIII of the Social Security Act for vaccines that are not recommended by the Advisory Committee on Immunization Practices.</text></subsection><subsection id="id740AC48BE1454B969AB7A595699B4DFC" commented="no"><enum>(e)</enum><header>Implementation for 2023 through 2025</header><text display-inline="yes-display-inline">The Secretary shall implement this section, including the amendments made by this section, for 2023, 2024, and 2025, by program instruction or other forms of program guidance.</text></subsection></section><section id="H639ECFDCBFC84C47B6B427533DECEDC0"><enum>11402.</enum><header>Payment for biosimilar biological products during initial period</header><text display-inline="no-display-inline">Section 1847A(c)(4) of the Social Security Act (42 U.S.C. 1395w–3a(c)(4)) is amended—</text><paragraph id="H3F42F374B8F34200AB66015D977FA034"><enum>(1)</enum><text>in each of subparagraphs (A) and (B), by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and moving such subclauses 2 ems to the right;</text></paragraph><paragraph id="H96F4EACE34E14D9ABA05B7F8874F27A1"><enum>(2)</enum><text>by redesignating subparagraphs (A) and (B) as clauses (i) and (ii) and moving such clauses 2 ems to the right;</text></paragraph><paragraph id="H1BA0DF34B4CF40F8A15306EFFE8FBCAC"><enum>(3)</enum><text>by striking <quote><header-in-text level="paragraph" style="OLC">unavailable</header-in-text>.—In the case</quote> and inserting “<header-in-text level="paragraph" style="OLC">unavailable</header-in-text>.—</text><quoted-block display-inline="no-display-inline" id="H17E7C7C1526941B481039893FA9DF7B1" style="OLC" changed="added" reported-display-style="italic"><subparagraph id="HB34704A30ED04E38A9941F05FFCF1BE9"><enum>(A)</enum><header>In general</header><text>Subject to subparagraph (B), in the case</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph id="H582C83D212EB4E7597C4EBC52C0D3811"><enum>(4)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block display-inline="no-display-inline" id="H84F1EAF7675B4CBBADB5DA512256A8B0" style="OLC" changed="added" reported-display-style="italic"><subparagraph id="HEADF3519B7F8489CB327841E62D83D51"><enum>(B)</enum><header>Limitation on payment amount for biosimilar biological products during initial period</header><text>In the case of a biosimilar biological product furnished on or after July 1, 2024, during the initial period described in subparagraph (A) with respect to the biosimilar biological product, the amount payable under this section for the biosimilar biological product is the lesser of the following:</text><clause commented="no" id="H43BB243ADEF84E6997FE99217E44ADE2"><enum>(i)</enum><text>The amount determined under clause (ii) of such subparagraph for the biosimilar biological product.</text></clause><clause commented="no" id="H49E482DBA9AA4BB18865EA4B7E26A558"><enum>(ii)</enum><text>The amount determined under subsection (b)(1)(B) for the reference biological product.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section><section id="H1AE8CB40403D423BA0949FE0C34AC105"><enum>11403.</enum><header>Temporary increase in Medicare part B payment for certain biosimilar biological products</header><text display-inline="no-display-inline">Section 1847A(b)(8) of the Social Security Act (42 U.S.C. 1395w–3a(b)(8)) is amended—</text><paragraph commented="no" display-inline="no-display-inline" id="H3A3CC607F4E348CBAEE058DC768CE46D"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and moving the margin of each such redesignated clause 2 ems to the right;</text></paragraph><paragraph id="H245BEF9FD5664AE0A0B767786C6867D3"><enum>(2)</enum><text>by striking <quote><header-in-text level="paragraph" style="OLC">product</header-in-text>.—The amount</quote> and inserting the following: “<header-in-text level="paragraph" style="OLC">product</header-in-text>.—</text><quoted-block display-inline="no-display-inline" id="H8A01C7CB545643CB81E85D533F063D22" style="OLC" changed="added" reported-display-style="italic"><subparagraph id="HB44F6700C0414583AFD2A6206B047AA5"><enum>(A)</enum><header>In general</header><text>Subject to subparagraph (B), the amount</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph id="H0071E586D2F74FA38F894DCBCB3D510F"><enum>(3)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block display-inline="no-display-inline" id="H343110122F0E4F1AAFF615710C321D76" style="OLC" changed="added" reported-display-style="italic"><subparagraph id="H7C63C9C520B14D3194AD67FA76E244EA"><enum>(B)</enum><header>Temporary payment increase</header><clause id="HC4F9399D454B4DD2B33AB7AE814EC79F"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of a qualifying biosimilar biological product that is furnished during the applicable 5-year period for such product, the amount specified in this paragraph for such product with respect to such period is the sum determined under subparagraph (A), except that clause (ii) of such subparagraph shall be applied by substituting <quote>8 percent</quote> for <quote>6 percent</quote>.</text></clause><clause id="H862AD6B973FE4CE78CAC060DC70B437B"><enum>(ii)</enum><header>Applicable 5-year period</header><text>For purposes of clause (i), the applicable 5-year period for a qualifying biosimilar biological product is—</text><subclause id="HC88DC83EC04347589D43CC5E799BA09E"><enum>(I)</enum><text>in the case of such a product for which payment was made under this paragraph as of September 30, 2022, the 5-year period beginning on October 1, 2022; and</text></subclause><subclause commented="no" display-inline="no-display-inline" id="H0F0D2472F50D4448BF087A0033774148"><enum>(II)</enum><text display-inline="yes-display-inline">in the case of such a product for which payment is first made under this paragraph during a calendar quarter during the period beginning October 1, 2022, and ending December 31, 2027, the 5-year period beginning on the first day of such calendar quarter during which such payment is first made.</text></subclause></clause><clause id="HF0B9700CB00D4A07B018B76DE0ED5D27"><enum>(iii)</enum><header>Qualifying biosimilar biological product defined</header><text display-inline="yes-display-inline">For purposes of this subparagraph, the term <term>qualifying biosimilar biological product</term> means a biosimilar biological product described in paragraph (1)(C) with respect to which—</text><subclause id="HC6D14942C9074698B8BBA6C964E1FF7B"><enum>(I)</enum><text>in the case of a product described in clause (ii)(I), the average sales price under paragraph (8)(A)(i) for a calendar quarter during the 5-year period described in such clause is not more than the average sales price under paragraph (4)(A) for such quarter for the reference biological product; and</text></subclause><subclause id="H042EEEF306BC471DB00DA94035EBBD64"><enum>(II)</enum><text display-inline="yes-display-inline">in the case of a product described in clause (ii)(II), the average sales price under paragraph (8)(A)(i) for a calendar quarter during the 5-year period described in such clause is not more than the average sales price under paragraph (4)(A) for such quarter for the reference biological product.</text></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section><section id="id828E9DF0F3A843159DB1DEC07B1E6B72"><enum>11404.</enum><header>Expanding eligibility for low-income subsidies under part D of the Medicare program</header><text display-inline="no-display-inline">Section 1860D–14(a) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-114">42 U.S.C. 1395w–114(a)</external-xref>), as amended by sections 11201 and 11401, is amended—</text><paragraph id="idcdc464fb0c4c4f2a976f8f995ea84361"><enum>(1)</enum><text>in the subsection heading, by striking <quote><header-in-text style="OLC" level="subsection">individuals</header-in-text></quote> and all that follows through <quote><header-in-text style="OLC" level="subsection">line</header-in-text></quote> and inserting <quote><header-in-text style="OLC" level="subsection">certain individuals</header-in-text></quote>;</text></paragraph><paragraph id="id6405ce3920e24ff78a13286314ff18bd"><enum>(2)</enum><text>in paragraph (1)—</text><subparagraph id="id27f76292be5445d1b91b6cb4e78f1ac1"><enum>(A)</enum><text>by striking the paragraph heading and inserting <quote><header-in-text style="OLC" level="paragraph">Individuals with certain low incomes</header-in-text></quote>; and</text></subparagraph><subparagraph id="id3d93040bee4a435eb59dbad63860a1b5"><enum>(B)</enum><text>in the matter preceding subparagraph (A)—</text><clause id="idAC0BD75D6EBA473EAFC86F810652B877"><enum>(i)</enum><text>by inserting <quote>(or, with respect to a plan year beginning on or after January 1, 2024, 150 percent)</quote> after <quote>135 percent</quote>; and</text></clause><clause id="id004e79f6dcd74638b01d1cd5c60dbc77"><enum>(ii)</enum><text>by inserting <quote>(or, with respect to a plan year beginning on or after January 1, 2024, paragraph (3)(E))</quote> after <quote>the resources requirement described in paragraph (3)(D)</quote>; and </text></clause></subparagraph></paragraph><paragraph id="id1e269ff847a043949cacb137ea4198a9"><enum>(3)</enum><text>in paragraph (2)—</text><subparagraph id="id15e10e47af134250bb7e9faae7b2dcfc"><enum>(A)</enum><text>by striking the paragraph heading and inserting <quote><header-in-text style="OLC" level="paragraph">Other low-income individuals</header-in-text></quote>; and</text></subparagraph><subparagraph id="id4004f3cc565e4aa6bcc2002f80c8cf8a"><enum>(B)</enum><text>in the matter preceding subparagraph (A), by striking <quote>In the case of a subsidy</quote> and inserting <quote>With respect to a plan year beginning before January 1, 2024, in the case of a subsidy</quote>.</text></subparagraph></paragraph></section><section id="id42C2B85BEF02415DBD65212A18F4B7FE"><enum>11405.</enum><header>Improving access to adult vaccines under Medicaid and CHIP</header><subsection id="HC3395D4C61124D349CA7E16AA21B5D84"><enum>(a)</enum><header>Medicaid</header><paragraph id="HA77C8D18C833450B8A8ED425950C9506"><enum>(1)</enum><header>Requiring coverage of adult vaccinations</header><subparagraph id="HBA2775342F144368A78902F0AD5D809E"><enum>(A)</enum><header>In general</header><text>Section 1902(a)(10)(A) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396a">42 U.S.C. 1396a(a)(10)(A)</external-xref>) is amended in the matter preceding clause (i) by inserting <quote>(13)(B),</quote> after <quote>(5),</quote>.</text></subparagraph><subparagraph id="HFA3ADEA867C04334BB11E607545180BC" commented="no"><enum>(B)</enum><header>Medically needy</header><text>Section 1902(a)(10)(C)(iv) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396a">42 U.S.C. 1396a(a)(10)(C)(iv)</external-xref>) is amended by inserting <quote>, (13)(B),</quote> after <quote>(5)</quote>. </text></subparagraph></paragraph><paragraph id="H5745D8C6CA4A456F8F6B3D28002713BC"><enum>(2)</enum><header>No cost sharing for vaccinations</header><subparagraph id="HF19BB1707D3C433DB8BE97A7EE8E66D1"><enum>(A)</enum><header>General cost-sharing limitations</header><text>Section 1916 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396o">42 U.S.C. 1396o</external-xref>) is amended—</text><clause id="HDCAFC7058D5441ADAF535CF4CA7B7968"><enum>(i)</enum><text>in subsection (a)(2)—</text><subclause id="H82CDFA9C9BBE471FBD7FE05BBF42EB94"><enum>(I)</enum><text>in subparagraph (G), by inserting a comma after <quote>State plan</quote>;</text></subclause><subclause id="H287F7045D23A4F95A45DB737BCA0F8DE"><enum>(II)</enum><text>in subparagraph (H), by striking <quote>; or</quote> and inserting a comma;</text></subclause><subclause id="H8008772AC56642EFA23629AB43551172"><enum>(III)</enum><text>in subparagraph (I), by striking <quote>; and</quote> and inserting <quote>, or</quote>; and</text></subclause><subclause id="H22A14967A9534A27B10E7126A3EBC636"><enum>(IV)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HACD372B2E5C34EDAB1EC194CA30436E3" changed="added" reported-display-style="italic"><subparagraph id="HF6722E8CFEA34CABAFB9FF5AFFFBF4D7"><enum>(J)</enum><text>vaccines described in section 1905(a)(13)(B) and the administration of such vaccines; and</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></subclause></clause><clause id="H9C976448B80E470CAF62C889134F2CE9"><enum>(ii)</enum><text>in subsection (b)(2)—</text><subclause id="H837AAABA5E104A2E8516BBBD4125E670"><enum>(I)</enum><text>in subparagraph (G), by inserting a comma after <quote>State plan</quote>;</text></subclause><subclause id="H674756CD9FC84DE8BB87AF911D4B06F7"><enum>(II)</enum><text>in subparagraph (H), by striking <quote>; or</quote> and inserting a comma;</text></subclause><subclause id="HC37CCA824C2C4086AE44EDB9A62DC3BD"><enum>(III)</enum><text>in subparagraph (I), by striking <quote>; and</quote> and inserting <quote>, or</quote>; and</text></subclause><subclause id="H33AAE1CF819F424F8EF5498A3F9CEDDF"><enum>(IV)</enum><text>by adding at the end the following new subparagraph: </text><quoted-block style="OLC" display-inline="no-display-inline" id="HDBA8C3512C1E4F5997A17CAD47A2EB6B" changed="added" reported-display-style="italic"><subparagraph id="HD44C194FF7444F369224F38F32D86CF8"><enum>(J)</enum><text>vaccines described in section 1905(a)(13)(B) and the administration of such vaccines; and</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subclause></clause></subparagraph><subparagraph id="HBB81113E0A6042568E3199D4C4A847C6"><enum>(B)</enum><header>Application to alternative cost sharing</header><text>Section 1916A(b)(3)(B) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396o-1">42 U.S.C. 1396o–1(b)(3)(B)</external-xref>) is amended by adding at the end the following new clause:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H0B03F242FDE146FB84A8037E5ED1749F" changed="added" reported-display-style="italic"><clause id="H3AC9595864FE4E02BD43B22477618837"><enum>(xiv)</enum><text>Vaccines described in section 1905(a)(13)(B) and the administration of such vaccines.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="HED8708E589F04C2A883A9CCBC4A6D3C9"><enum>(3)</enum><header>Increased FMAP for adult vaccines and their administration</header><text>Section 1905(b) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396d">42 U.S.C. 1396d(b)</external-xref>) is amended—</text><subparagraph id="HF8EE07FDC49843139421E071440AD6AE"><enum>(A)</enum><text>by striking <quote>and (5)</quote> and inserting <quote>(5)</quote>;</text></subparagraph><subparagraph id="H3BE2579612DB433BB9AA1CE1B9AB6150"><enum>(B)</enum><text>by striking <quote>services and vaccines described in subparagraphs (A) and (B) of subsection (a)(13), and prohibits cost-sharing for such services and vaccines</quote> and inserting <quote>services described in subsection (a)(13)(A), and prohibits cost-sharing for such services</quote>;</text></subparagraph><subparagraph id="H0C0FE0F1186449208E225B668270D626"><enum>(C)</enum><text>by striking <quote>medical assistance for such services and vaccines</quote> and inserting <quote>medical assistance for such services</quote>; and</text></subparagraph><subparagraph id="H2BFD18C3B8F14C3D95655BFF23EB61C5" commented="no" display-inline="no-display-inline"><enum>(D)</enum><text>by inserting <quote>, and (6) during the first 8 fiscal quarters beginning on or after the effective date of this clause, in the case of a State which, as of the date of enactment of the Act titled <quote>An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14</quote>, provides medical assistance for vaccines described in subsection (a)(13)(B) and their administration and prohibits cost-sharing for such vaccines, the Federal medical assistance percentage, as determined under this subsection and subsection (y), shall be increased by 1 percentage point with respect to medical assistance for such vaccines and their administration</quote> before the first period.</text></subparagraph></paragraph></subsection><subsection id="H5C4099ED882143E6BB825C84C8FDF820"><enum>(b)</enum><header>CHIP</header><paragraph id="H010929C9EC8940818FFAD856A15B6F37"><enum>(1)</enum><header>Requiring coverage of adult vaccinations</header><text>Section 2103(c) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1397cc">42 U.S.C. 1397cc(c)</external-xref>) is amended by adding at the end the following paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HBD4A6FBD492441B0A9955B186894D1BA" changed="added" reported-display-style="italic"><paragraph id="HCE614E7863CD47C5A1BE1078BF2D8225"><enum>(12)</enum><header>Required coverage of approved, recommended adult vaccines and their administration</header><text>Regardless of the type of coverage elected by a State under subsection (a), if the State child health plan or a waiver of such plan provides child health assistance or pregnancy-related assistance (as defined in section 2112) to an individual who is 19 years of age or older, such assistance shall include coverage of vaccines described in section 1905(a)(13)(B) and their administration.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H71A5578FE51A4EAF8BAEC46AF407158C"><enum>(2)</enum><header>No cost-sharing for vaccinations</header><text>Section 2103(e)(2) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1397cc">42 U.S.C. 1397cc(e)(2)</external-xref>) is amended by inserting <quote>vaccines described in subsection (c)(12) (and the administration of such vaccines),</quote> after <quote>in vitro diagnostic products described in subsection (c)(10) (and administration of such products),</quote>.</text></paragraph></subsection><subsection display-inline="no-display-inline" commented="no" id="HFDBA04CDC1344F7D88E958E65BC03990"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section take effect on the 1st day of the 1st fiscal quarter that begins on or after the date that is 1 year after the date of enactment of this Act and shall apply to expenditures made under a State plan or waiver of such plan under title XIX of the Social Security Act (42 U.S.C. 1396 through 1396w–6) or under a State child health plan or waiver of such plan under title XXI of such Act (42 U.S.C. 1397aa through 1397mm) on or after such effective date. </text></subsection></section><section id="HB498748A51EA4060B7E2A5B27676A5E3" commented="no"><enum>11406.</enum><header>Appropriate cost-sharing for covered insulin products under Medicare part D</header><subsection id="H165EBB891F4942D4ABC20A60200195E5" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 1860D–2 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-102">42 U.S.C. 1395w–102</external-xref>), as amended by sections 11201, 11202, and 11401, is amended—</text><paragraph id="id451F85C97C1D422D9D935A5B4B320036" commented="no"><enum>(1)</enum><text>in subsection (b)—</text><subparagraph id="H1648D1F028E74B64BA2E0D5E47D92541" commented="no"><enum>(A)</enum><text>in paragraph (1)(A), by striking <quote>paragraph (8)</quote> and inserting <quote>paragraphs (8) and (9)</quote>;</text></subparagraph><subparagraph commented="no" id="id7d516b1795dc4f1b944c8eec72b8f786"><enum>(B)</enum><text>in paragraph (2)—</text><clause commented="no" id="id0d9540f7bb6e40e6b79163ec0a821314"><enum>(i)</enum><text>in subparagraph (A), by striking <quote>paragraph (8)</quote> and inserting <quote>paragraphs (8) and (9)</quote>;</text></clause><clause commented="no" id="id3267a4e30a5d4dad8e8553582f5f47d7"><enum>(ii)</enum><text>in subparagraph (C)(i), in the matter preceding subclause (I), by striking <quote>and (8)</quote> and inserting <quote>, (8), and (9)</quote>; and</text></clause><clause commented="no" id="id88ad5139b2dd4dc4b7e01e4540cfc1b5"><enum>(iii)</enum><text>in subparagraph (D)(i), in the matter preceding subclause (I), by striking <quote>and (8)</quote> and inserting <quote>, (8), and (9)</quote>;</text></clause></subparagraph><subparagraph commented="no" id="id612E7BA3DF8543949596E3EC4466A0D1"><enum>(C)</enum><text>in paragraph (3)(A), in the matter preceding clause (i), by striking <quote>and (8)</quote> and inserting <quote>(8), and (9)</quote>;</text></subparagraph><subparagraph id="H6BA982FC2B644791A85F7E6A5B5B9BB1" commented="no"><enum>(D)</enum><text>in paragraph (4)(A)(i), by striking <quote>paragraph (8)</quote> and inserting <quote>paragraphs (8) and (9)</quote>; and</text></subparagraph><subparagraph id="id90193F6528944ED5AD278EE10C939988" commented="no"><enum>(E)</enum><text>by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HEAC2C99CD5D943128256659721577D63" changed="added" reported-display-style="italic"><paragraph id="HE3583D599F6948CEB2CE179D312FC6C9" commented="no"><enum>(9)</enum><header>Treatment of cost-sharing for covered insulin products</header><subparagraph commented="no" id="id4E2F4D701EEC4D7ABD880EC950F560DC"><enum>(A)</enum><header>No application of deductible</header><text>For plan year 2023 and subsequent plan years, the deductible under paragraph (1) shall not apply with respect to any covered insulin product.</text></subparagraph><subparagraph commented="no" id="id2BADE1390581444BB9D6378498031DBF"><enum>(B)</enum><header>Application of cost-sharing</header><clause commented="no" id="id8866F80DA8E44E29A5ADE2522663F23D"><enum>(i)</enum><header>Plan years 2023 and 2024</header><text>For plan years 2023 and 2024, the coverage provides benefits for any covered insulin product, regardless of whether an individual has reached the initial coverage limit under paragraph (3) or the out-of-pocket threshold under paragraph (4), with cost-sharing for a month’s supply that does not exceed the applicable copayment amount.</text></clause><clause id="H95382B296A3A431FADAE26B8BB157E6F" commented="no"><enum>(ii)</enum><header>Plan year 2025 and subsequent plan years</header><text>For a plan year beginning on or after January 1, 2025, the coverage provides benefits for any covered insulin product, prior to an individual reaching the out-of-pocket threshold under paragraph (4), with cost-sharing for a month’s supply that does not exceed the applicable copayment amount.</text></clause></subparagraph><subparagraph id="H73D702B84B63498DAF62CC0B732F2063" commented="no"><enum>(C)</enum><header>Covered insulin product</header><text display-inline="yes-display-inline">In this paragraph, the term <quote>covered insulin product</quote> means an insulin product that is a covered part D drug covered under the prescription drug plan or MA–PD plan that is approved under section 505 of the Federal Food, Drug, and Cosmetic Act or licensed under section 351 of the Public Health Service Act and marketed pursuant to such approval or licensure, including any covered insulin product that has been deemed to be licensed under section 351 of the Public Health Service Act pursuant to section 7002(e)(4) of the Biologics Price Competition and Innovation Act of 2009 and marketed pursuant to such section.</text></subparagraph><subparagraph id="H1885F3DA9A8040AB9A5CFF09C406128B" commented="no"><enum>(D)</enum><header>Applicable copayment amount</header><text>In this paragraph, the term <quote>applicable copayment amount</quote> means, with respect to a covered insulin product under a prescription drug plan or an MA–PD plan dispensed—</text><clause commented="no" id="id50EB39F41BDA4DDD83A3397373DAF188"><enum>(i)</enum><text>during plan years 2023, 2024, and 2025, $35; and</text></clause><clause commented="no" id="id2B47FDBD2D7141BBBB87F00ACD49702D"><enum>(ii)</enum><text>during plan year 2026 and each subsequent plan year, the lesser of—</text><subclause commented="no" id="id50789BDEC47D4369AB98518C65E9B590"><enum>(I)</enum><text>$35;</text></subclause><subclause commented="no" id="idB32B433563C84B248CF52FC01EC98D32"><enum>(II)</enum><text>an amount equal to 25 percent of the maximum fair price established for the covered insulin product in accordance with part E of title XI; or</text></subclause><subclause commented="no" id="idF0CE322980014C67BA8C0092668BF7D1"><enum>(III)</enum><text>an amount equal to 25 percent of the negotiated price of the covered insulin product under the prescription drug plan or MA–PD plan.</text></subclause></clause></subparagraph><subparagraph commented="no" id="id2F8934094F87466C90A166A3A34AA2D8"><enum>(E)</enum><header>Special rule for first 3 months of 2023</header><text>With respect to a month’s supply of a covered insulin product dispensed during the period beginning on January 1, 2023, and ending on March 31, 2023, a PDP sponsor offering a prescription drug plan or an MA organization offering an MA–PD plan shall reimburse an enrollee within 30 days for any cost-sharing paid by such enrollee that exceeds the cost-sharing applied by the prescription drug plan or MA–PD plan under subparagraph (B)(i) at the point-of-sale for such month’s supply.</text></subparagraph></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="id0527C62E60E34DD99364069A63912133" commented="no"><enum>(2)</enum><text>in subsection (c), by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id2E2B0065794848AD8E33CCAC1F6A6FAA" changed="added" reported-display-style="italic"><paragraph id="idE8A91988919747059CFE4D7E50C56866" commented="no"><enum>(6)</enum><header>Treatment of cost-sharing for covered insulin products</header><text>The coverage is provided in accordance with subsection (b)(9).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="HA9AA02EDA91042B98E8A9FE5C41A3631" commented="no"><enum>(b)</enum><header>Conforming amendments to cost-sharing for low-income individuals</header><text>Section 1860D–14(a) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-114">42 U.S.C. 1395w–114(a)</external-xref>), as amended by sections 11201, 11401, and 11404, is amended—</text><paragraph id="H1126C1D2B6884CFF9DA74E50F94B8312" commented="no"><enum>(1)</enum><text>in paragraph (1)—</text><subparagraph id="H31BE6F4ECED74F0EA4F581ACDF72B3B2" commented="no"><enum>(A)</enum><text>in subparagraph (D)(iii), by adding at the end the following new sentence: <quote>For plan year 2023 and subsequent plan years, the copayment amount applicable under the preceding sentence to a month’s supply of a covered insulin product (as defined in section 1860D–2(b)(9)(C)) dispensed to the individual may not exceed the applicable copayment amount for the product under the prescription drug plan or MA–PD plan in which the individual is enrolled.</quote>; and</text></subparagraph><subparagraph id="HCE5CDD63A0864E34BF4CDE949220E9F6" commented="no"><enum>(B)</enum><text>in subparagraph (E), by inserting the following before the period at the end: <quote>or under section 1860D–2(b)(9) in the case of a covered insulin product (as defined in subparagraph (C) of such section)</quote>; and</text></subparagraph></paragraph><paragraph id="HF59BD460C3844EB9A57132CDCEABEF4F" commented="no"><enum>(2)</enum><text>in paragraph (2)—</text><subparagraph commented="no" id="id483D7FF7DC294CE5A870022DC63628D9"><enum>(A)</enum><text>in subparagraph (B), by striking <quote>section 1860D–2(b)(8)</quote> and inserting <quote>paragraphs (8) and (9) of section 1860D–2(b)</quote>;</text></subparagraph><subparagraph id="H994A6632A275477881BF4BD535DBFEBC" commented="no"><enum>(B)</enum><text>in subparagraph (D), by adding at the end the following new sentence: <quote>For plan year 2023, the amount of the coinsurance applicable under the preceding sentence to a month’s supply of a covered insulin product (as defined in section 1860D–2(b)(9)(C)) dispensed to the individual may not exceed the applicable copayment amount for the product under the prescription drug plan or MA–PD plan in which the individual is enrolled.</quote>; and</text></subparagraph><subparagraph id="HBBC215E60C324F15A30817CACB3D6D27" commented="no"><enum>(C)</enum><text>in subparagraph (E), by adding at the end the following new sentence: <quote>For plan year 2023, the amount of the copayment or coinsurance applicable under the preceding sentence to a month’s supply of a covered insulin product (as defined in section 1860D–2(b)(9)(C)) dispensed to the individual may not exceed the applicable copayment amount for the product under the prescription drug plan or MA–PD plan in which the individual is enrolled.</quote>.</text></subparagraph></paragraph></subsection><subsection id="id81CB3910F29D445392FBC8841079C907"><enum>(c)</enum><header>Temporary retrospective subsidy</header><text>Section 1860D–15(h) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-115">42 U.S.C. 1395w–115(h)</external-xref>), as added by <external-xref legal-doc="usc" parsable-cite="usc/26/11401">section 11401(c),</external-xref> is amended—</text><paragraph id="id727ECC2F4667405199B7A23D1C33A95C"><enum>(1)</enum><text>in the subsection heading, by inserting <quote><header-in-text style="OLC" level="subsection">and insulin</header-in-text></quote> after <quote><header-in-text style="OLC" level="subsection">practices</header-in-text></quote>; and</text></paragraph><paragraph id="id1987DB04B717447FA68D6B827D0D2082"><enum>(2)</enum><text>in paragraph (1), by striking <quote>section 1860D–2(b)(8)</quote> and inserting <quote>paragraph (8) or (9) of section 1860D–2(b)</quote>.</text></paragraph></subsection><subsection id="id237B4842214D4541B78FDDE1DB8D39DF"><enum>(d)</enum><header>Implementation for 2023 through 2025</header><text>The Secretary shall implement this section for plan years 2023, 2024, and 2025 by program instruction or other forms of program guidance.</text></subsection><subsection commented="no" id="idB9B9D220F2734B1C9C24E4B067B69641"><enum>(e)</enum><header>Funding</header><text>In addition to amounts otherwise available, there is appropriated to the Centers for Medicare & Medicaid Services, out of any money in the Treasury not otherwise appropriated, $1,500,000 for fiscal year 2022, to remain available until expended, to carry out the provisions of, including the amendments made by, this section. </text></subsection></section><section id="id4b83c735133e489493390f397f56f35a"><enum>11407.</enum><header>Limitation on monthly coinsurance and adjustments to supplier payment under Medicare Part B for insulin furnished through durable medical equipment</header><subsection id="id358a913e6043450294db28c6e3d659e8"><enum>(a)</enum><header>Waiver of deductible</header><text>The first sentence of section 1833(b) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395l">42 U.S.C. 1395l(b)</external-xref>) is amended—</text><paragraph id="idd16922114a2e4f36ac362037d85a6dc7"><enum>(1)</enum><text>by striking <quote>and (12)</quote> and inserting <quote>(12)</quote>; and</text></paragraph><paragraph id="id2b94279b2bf54d8a85ad95aa689115bd"><enum>(2)</enum><text>by inserting before the period the following: <quote>, and (13) such deductible shall not apply with respect to insulin furnished on or after July 1, 2023, through an item of durable medical equipment covered under section 1861(n).</quote>.</text></paragraph></subsection><subsection id="ida55fd9dff8bc4f89a7916a8e26a6490b"><enum>(b)</enum><header>Coinsurance</header><paragraph id="id8d3c6b55ef5b4478849a8bf955a3a343"><enum>(1)</enum><header>In general</header><text>Section 1833(a)(1)(S) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395l">42 U.S.C. 1395l(a)(1)(S)</external-xref>) is amended—</text><subparagraph id="id6766386ab38143e9b3dbb798455c1776"><enum>(A)</enum><text>by inserting <quote>(i) except as provided in clause (ii),</quote> after <quote>(S)</quote>; and</text></subparagraph><subparagraph id="idd11a2f49fd0144daa74e95de9ad2b4fa"><enum>(B)</enum><text>by inserting after <quote>or 1847B),</quote> the following: <quote>and (ii) with respect to insulin furnished on or after July 1, 2023, through an item of durable medical equipment covered under section 1861(n), the amounts paid shall be, subject to the fourth sentence of this subsection, 80 percent of the payment amount established under section 1847A (or section 1847B, if applicable) for such insulin,</quote>.</text></subparagraph></paragraph><paragraph id="id07eecf2868554090a7a422d226ee8e23"><enum>(2)</enum><header>Adjustment to supplier payments; limitation on monthly coinsurance</header><text>Section 1833(a) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395l">42 U.S.C. 1395l(a)</external-xref>) is amended, in the flush matter at the end, by adding at the end the following new sentence: <quote>The Secretary shall make such adjustments as may be necessary to the amounts paid as specified under paragraph (1)(S)(ii) for insulin furnished on or after July 1, 2023, through an item of durable medical equipment covered under section 1861(n), such that the amount of coinsurance payable by an individual enrolled under this part for a month’s supply of such insulin does not exceed $35.</quote>.</text></paragraph></subsection><subsection id="id5c19f97e1eaf46afaaa567090f58a51c"><enum>(c)</enum><header>Implementation</header><text>The Secretary of Health and Human Services shall implement this section for 2023 by program instruction or other forms of program guidance. </text></subsection></section><section id="id4DEEE19451B94A16B7EE9A39E0A5C3C3"><enum>11408.</enum><header>Safe harbor for absence of deductible for insulin</header><subsection id="id2743DBF219514B29B4F39E0FD0C6F6D0"><enum>(a)</enum><header>In general</header><text>Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/223">section 223(c)</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id97546A85609B4E2C9A64DCD92C2687CA" changed="added" reported-display-style="italic"><subparagraph id="id8ba34f34e5f3452aa0acb78c78449fce" commented="no" display-inline="no-display-inline"><enum>(G)</enum><header display-inline="yes-display-inline">Safe harbor for absence of deductible for certain insulin products</header><clause commented="no" display-inline="no-display-inline" id="idC6655B1471174261AE47AEDFA38F20D4"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">A plan shall not fail to be treated as a high deductible health plan by reason of failing to have a deductible for selected insulin products.</text></clause><clause id="id8CF890E837B74000B47AD710FBBCB350"><enum>(ii)</enum><header>Selected insulin products</header><text>For purposes of this subparagraph—</text><subclause id="id73F82B7094E24437BCF6BDEB491F892C"><enum>(I)</enum><header>In general</header><text>The term <term>selected insulin products</term> means any dosage form (such as vial, pump, or inhaler dosage forms) of any different type (such as rapid-acting, short-acting, intermediate-acting, long-acting, ultra long-acting, and premixed) of insulin.</text></subclause><subclause id="idAB7B58E9F7FE4F909B9874C47A6E1D81"><enum>(II)</enum><header>Insulin</header><text>The term <term>insulin</term> means insulin that is licensed under subsection (a) or (k) of section 351 of the Public Health Service Act (<external-xref legal-doc="usc" parsable-cite="usc/42/262">42 U.S.C. 262</external-xref>) and continues to be marketed under such section, including any insulin product that has been deemed to be licensed under section 351(a) of such Act pursuant to section 7002(e)(4) of the Biologics Price Competition and Innovation Act of 2009 (<external-xref legal-doc="public-law" parsable-cite="pl/111/148">Public Law 111–148</external-xref>) and continues to be marketed pursuant to such licensure. </text></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id0B2DA5CE069C40C08DCFBAF7981E0726"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to plan years beginning after December 31, 2022. </text></subsection></section></part></subtitle><subtitle id="idF5E02095B77C49BA93CEE15B0C7693F8" style="OLC"><enum>C</enum><header>Affordable Care Act Subsidies</header><section id="H56D26C1F712343E0A5823716CCE5DD98"><enum>12001.</enum><header>Improve affordability and reduce premium costs of health insurance for consumers</header><subsection id="H736A6060A18E4E1F81CA22692C35820A" display-inline="no-display-inline"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Clause (iii) of <external-xref legal-doc="usc" parsable-cite="usc/26/36B">section 36B(b)(3)(A)</external-xref> of the Internal Revenue Code of 1986 is amended—</text><paragraph display-inline="no-display-inline" id="idBDCAFA95DF4F4EDF8E05B8CC5D66D96B"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>in 2021 or 2022</quote> and inserting <quote>after December 31, 2020, and before January 1, 2026</quote>, and</text></paragraph><paragraph display-inline="no-display-inline" id="idF70BAF6AC80340CC98A496CE1A8C1E3A"><enum>(2)</enum><text>by striking <quote><header-in-text style="OLC" level="clause">2021 and 2022</header-in-text></quote> in the heading and inserting <quote><header-in-text style="OLC" level="clause">2021 through 2025</header-in-text></quote>.</text></paragraph></subsection><subsection id="HDEDBEF4FFC0E4DFC8335A558A47965FD"><enum>(b)</enum><header>Extension through 2025 of rule to allow credit to taxpayers whose household income exceeds 400 percent of the poverty line</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/36B">Section 36B(c)(1)(E)</external-xref> of the Internal Revenue Code of 1986 is amended—</text><paragraph id="H60303D4CE1274551B0110F10B2D59233" display-inline="no-display-inline"><enum>(1)</enum><text>by striking <quote>in 2021 or 2022</quote> and inserting <quote>after December 31, 2020, and before January 1, 2026</quote>, and</text></paragraph><paragraph id="H9BA3192E187443C795881C470C79EFFF"><enum>(2)</enum><text>by striking <quote><header-in-text level="subparagraph" style="OLC">2021 and 2022</header-in-text></quote> in the heading and inserting <quote><header-in-text level="subparagraph" style="OLC">2021 through 2025</header-in-text></quote>.</text></paragraph></subsection><subsection id="HE6ED1DD6F77E451783C565918C52590C"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2022.</text></subsection></section></subtitle><subtitle id="HD08A9A034C5E4DD9B3F967D65DE60DA9"><enum>D</enum><header>Energy Security</header><section id="HC5965FBD5256493599B649EC7BDD4526" display-inline="no-display-inline"><enum>13001.</enum><header>Amendment of 1986 Code</header><text display-inline="no-display-inline">Except as otherwise expressly provided, whenever in this subtitle an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. </text></section><part id="H86942D8DEE714F228FC5DAF06C6D19F3"><enum>1<?LEXA-Enum 1?></enum><header>Clean Electricity and Reducing Carbon Emissions</header><section id="H181953C321DC4410B47E9744D3CE5300"><enum>13101.</enum><header>Extension and modification of credit for electricity produced from certain renewable resources</header><subsection id="HCCBBEB8C537345FE8ED8F4D63C8F75AD"><enum>(a)</enum><header>In general</header><text>The following provisions of section 45(d) are each amended by striking <quote>January 1, 2022</quote> each place it appears and inserting <quote>January 1, 2025</quote>:</text><paragraph id="H5CCDF0FD488B43699FF8477D78364A8B"><enum>(1)</enum><text>Paragraph (2)(A).</text></paragraph><paragraph id="HC08E7DB6D35A4C8A84C1AB1FF19D71BB"><enum>(2)</enum><text>Paragraph (3)(A).</text></paragraph><paragraph id="H0273D6D791AC4135BD4FF2DDBCF3A59B"><enum>(3)</enum><text>Paragraph (6).</text></paragraph><paragraph id="H895B16CB712E4107A5086977820E4D6D"><enum>(4)</enum><text>Paragraph (7).</text></paragraph><paragraph id="HCA5927C14C724163A4F3B19F9840A2F3"><enum>(5)</enum><text>Paragraph (9).</text></paragraph><paragraph id="H5D1705923EA54F798DCFF6E8812FACA3"><enum>(6)</enum><text>Paragraph (11)(B).</text></paragraph></subsection><subsection id="HFAB485E86A4542CAA0869741B0AE3878"><enum>(b)</enum><header>Base credit amount</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/45">Section 45</external-xref> is amended—</text><paragraph id="idF9F3DD9643084E8EA171273FD6345136"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a)(1), by striking <quote>1.5 cents</quote> and inserting <quote>0.3 cents</quote>, and</text></paragraph><paragraph id="id4AD78BF0138A4322989068C7833EC5AC"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (b)(2), by striking <quote>1.5 cent</quote> and inserting <quote>0.3 cent</quote>.</text></paragraph></subsection><subsection id="H5951D94F9F2246C2A304CD9C104B5B76"><enum>(c)</enum><header>Application of extension to geothermal and solar</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/45">Section 45(d)(4)</external-xref> is amended by striking <quote>and which</quote> and all that follows through <quote>January 1, 2022</quote> and inserting <quote>and the construction of which begins before January 1, 2025</quote>. </text></subsection><subsection id="H2558F0F15ED34074ACDF57D52C624EE8"><enum>(d)</enum><header>Extension of election to treat qualified facilities as energy property</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(5)(C)(ii)</external-xref> is amended by striking <quote>January 1, 2022</quote> and inserting <quote>January 1, 2025</quote>.</text></subsection><subsection id="HA0E585006BB9495EA3B4AAFA4B14E650" commented="no"><enum>(e)</enum><header>Application of extension to wind facilities</header><paragraph id="H8C410A44E5C24E9B86A4881638885206" commented="no"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45">Section 45(d)(1)</external-xref> is amended by striking <quote>January 1, 2022</quote> and inserting <quote>January 1, 2025</quote>.</text></paragraph><paragraph id="H189A3F4A2E6E4504BC524AB075D452E0" commented="no"><enum>(2)</enum><header>Application of phaseout percentage</header><subparagraph id="H8474EB645BDB4D008FFB73F5EDC81ED2"><enum>(A)</enum><header>Renewable electricity production credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45">Section 45(b)(5)</external-xref> is amended by inserting <quote>which is placed in service before January 1, 2022</quote> after <quote>using wind to produce electricity</quote>.</text></subparagraph><subparagraph id="HA068ABCD876643BF8A682E173FBB5AC3"><enum>(B)</enum><header>Energy credit</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(5)(E)</external-xref> is amended by inserting <quote>placed in service before January 1, 2022, and</quote> before <quote>treated as energy property</quote>.</text></subparagraph></paragraph><paragraph id="HF3C4234818134BA7ADA82A0AF6B7F677" commented="no"><enum>(3)</enum><header>Qualified offshore wind facilities under energy credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(5)(F)(i)</external-xref> is amended by striking <quote>offshore wind facility</quote> and all that follows and inserting the following: <quote>offshore wind facility, subparagraph (E) shall not apply.</quote>.</text></paragraph></subsection><subsection id="H4786F12B94FB495EA403664FCE92E0AE" commented="no"><enum>(f)</enum><header>Wage and apprenticeship requirements</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45">Section 45(b)</external-xref> is amended by adding at the end the following new paragraphs: </text><quoted-block style="OLC" id="HFEFE32BB4D9F4357BC5B5943897CD663" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="H2059661707F148B4B4274DE646EC1103" commented="no"><enum>(6)</enum><header>Increased credit amount for qualified facilities</header><subparagraph id="HBE96D4419760455A9A823E267D8B683C" commented="no"><enum>(A)</enum><header>In general</header><text>In the case of any qualified facility which satisfies the requirements of subparagraph (B), the amount of the credit determined under subsection (a) (determined after the application of paragraphs (1) through (5) and without regard to this paragraph) shall be equal to such amount multiplied by 5.</text></subparagraph><subparagraph id="H2255780628DE49B3B80FF70F6F656432" commented="no"><enum>(B)</enum><header>Qualified facility requirements</header><text display-inline="yes-display-inline">A qualified facility meets the requirements of this subparagraph if it is one of the following: </text><clause id="H00648092F21145E58E6B7AB1D850883B" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">A facility with a maximum net output of less than 1 megawatt (as measured in alternating current).</text></clause><clause id="HF522469C66024892871E08160B2A59C8" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">A facility the construction of which begins prior to the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (7)(A) and (8).</text></clause><clause id="H59D03D32841C4CC08B5928FC53EB2E32" commented="no"><enum>(iii)</enum><text>A facility which satisfies the requirements of paragraphs (7)(A) and (8).</text></clause></subparagraph></paragraph><paragraph id="H5CA8CAA858544376842A00BDF036605D" commented="no"><enum>(7)</enum><header>Prevailing wage requirements</header><subparagraph id="H5CA4B174AC944156A3189128E839E460" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The requirements described in this subparagraph with respect to any qualified facility are that the taxpayer shall ensure that any laborers and mechanics employed by the taxpayer or any contractor or subcontractor in—</text><clause id="H4BE67702A8E849AFA1C1737507315780" commented="no"><enum>(i)</enum><text>the construction of such facility, and</text></clause><clause id="H46F3D6D6CB9849C2B60F7FF0C9AFAD85" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">with respect to any taxable year, for any portion of such taxable year which is within the period described in subsection (a)(2)(A)(ii), the alteration or repair of such facility, </text></clause><continuation-text continuation-text-level="subparagraph" commented="no">shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality in which such facility is located as most recently determined by the Secretary of Labor, in accordance with subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code. For purposes of determining an increased credit amount under paragraph (6)(A) for a taxable year, the requirement under clause (ii) is applied to such taxable year in which the alteration or repair of the qualified facility occurs.”</continuation-text></subparagraph><subparagraph id="H5B0D23ED7B804C98ADFC288153131B1E" commented="no"><enum>(B)</enum><header>Correction and penalty related to failure to satisfy wage requirements</header><clause id="H81360C1040674209B181E1B185287FC6" commented="no"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any taxpayer which fails to satisfy the requirement under subparagraph (A) with respect to the construction of any qualified facility or with respect to the alteration or repair of a facility in any year during the period described in subparagraph (A)(ii), such taxpayer shall be deemed to have satisfied such requirement under such subparagraph with respect to such facility for any year if, with respect to any laborer or mechanic who was paid wages at a rate below the rate described in such subparagraph for any period during such year, such taxpayer—</text><subclause id="H6AB17B1C3836412680AF3B4690716F1B" commented="no"><enum>(I)</enum><text>makes payment to such laborer or mechanic in an amount equal to the sum of—</text><item id="H9B193C830DAC4C18A09221AF7E4EC2F2" commented="no"><enum>(aa)</enum><text>an amount equal to the difference between—</text><subitem id="H4F014559637F4D1A9B1EFDEE9ACA13A5"><enum>(AA)</enum><text>the amount of wages paid to such laborer or mechanic during such period, and</text></subitem><subitem id="HD5D090899D4142628A6B4328475B4492" commented="no"><enum>(BB)</enum><text>the amount of wages required to be paid to such laborer or mechanic pursuant to such subparagraph during such period, plus</text></subitem></item><item id="H0E5FBD9537984A52BE11AC3776C04386" commented="no"><enum>(bb)</enum><text>interest on the amount determined under item (aa) at the underpayment rate established under section 6621 (determined by substituting <quote>6 percentage points</quote> for <quote>3 percentage points</quote> in subsection (a)(2) of such section) for the period described in such item, and</text></item></subclause><subclause id="H450A4C202EF64E5FB8ABBD02D9A943D1" commented="no"><enum>(II)</enum><text>makes payment to the Secretary of a penalty in an amount equal to the product of—</text><item id="HDFBC1705BFB44CBBAE855BB3E0C6C081" commented="no"><enum>(aa)</enum><text>$5,000, multiplied by</text></item><item id="H99FC5E2324624018B30FE8098C0A3837" commented="no"><enum>(bb)</enum><text>the total number of laborers and mechanics who were paid wages at a rate below the rate described in subparagraph (A) for any period during such year.</text></item></subclause></clause><clause id="H3CF343A7F63749F7875CE2FBBF56AACC" commented="no"><enum>(ii)</enum><header>Deficiency procedures not to apply</header><text display-inline="yes-display-inline">Subchapter B of chapter 63 (relating to deficiency procedures for income, estate, gift, and certain excise taxes) shall not apply with respect to the assessment or collection of any penalty imposed by this paragraph.</text></clause><clause id="H0D29CC4E98CF4EF7ADE34D12926B8ED1"><enum>(iii)</enum><header>Intentional disregard</header><text display-inline="yes-display-inline">If the Secretary determines that any failure described in clause (i) is due to intentional disregard of the requirements under subparagraph (A), such clause shall be applied— </text><subclause id="id0EFBB47EB57D4E3CB075F98DEDBBC807"><enum>(I)</enum><text display-inline="yes-display-inline">in subclause (I), by substituting <quote>three times the sum</quote> for <quote>the sum</quote>, and </text></subclause><subclause id="idB7A5DC78C5844A26AAD7B58EB9F8010F"><enum>(II)</enum><text display-inline="yes-display-inline">in subclause (II), by substituting <quote>$10,000</quote> for <quote>5,000</quote> in item (aa) thereof.</text></subclause></clause><clause id="H87E62AF56D9D497EA28C6F8DE531E2CC"><enum>(iv)</enum><header>Limitation on period for payment</header><text display-inline="yes-display-inline">Pursuant to rules issued by the Secretary, in the case of a final determination by the Secretary with respect to any failure by the taxpayer to satisfy the requirement under subparagraph (A), subparagraph (B)(i) shall not apply unless the payments described in subclauses (I) and (II) of such subparagraph are made by the taxpayer on or before the date which is 180 days after the date of such determination.</text></clause></subparagraph></paragraph><paragraph id="H7B17755948BE4A82B307045C763B43DB" commented="no"><enum>(8)</enum><header>Apprenticeship requirements</header><text display-inline="yes-display-inline">The requirements described in this paragraph with respect to the construction of any qualified facility are as follows:</text><subparagraph id="HEF1FA8ADF92D49CE8F353E08163848EA" commented="no"><enum>(A)</enum><header>Labor hours</header><clause id="H33918D6629324BA0B2284DAE877F88F7" commented="no"><enum>(i)</enum><header>Percentage of total labor hours</header><text display-inline="yes-display-inline">Taxpayers shall ensure that, with respect to the construction of any qualified facility, not less than the applicable percentage of the total labor hours of the construction, alteration, or repair work (including such work performed by any contractor or subcontractor) with respect to such facility shall, subject to subparagraph (B), be performed by qualified apprentices.</text></clause><clause id="HC7A503759C0940F3950F9CB4B1EB170A" commented="no"><enum>(ii)</enum><header>Applicable percentage</header><text display-inline="yes-display-inline">For purposes of clause (i), the applicable percentage shall be—</text><subclause id="HB8DF56F6E4884752B82120854AC21FEB" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">in the case of a qualified facility the construction of which begins before January 1, 2023, 10 percent,</text></subclause><subclause id="HA43BBAB6583740EB8D7DC84BE35FCC17" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">in the case of a qualified facility the construction of which begins after December 31, 2022, and before January 1, 2024, 12.5 percent, and</text></subclause><subclause id="HFECAE47C1B0949288998AD3F8F3D9D1C" commented="no"><enum>(III)</enum><text display-inline="yes-display-inline">in the case of a qualified facility the construction of which begins after December 31, 2023, 15 percent.</text></subclause></clause></subparagraph><subparagraph id="HBA9DF47DAB2E4B3A92693471FD10EDCF" commented="no"><enum>(B)</enum><header>Apprentice to journeyworker ratio</header><text display-inline="yes-display-inline">The requirement under subparagraph (A)(i) shall be subject to any applicable requirements for apprentice-to-journeyworker ratios of the Department of Labor or the applicable State apprenticeship agency.</text></subparagraph><subparagraph id="H917DC9E97F8B40E1A018AF8634DAEFAC" commented="no"><enum>(C)</enum><header>Participation</header><text display-inline="yes-display-inline">Each taxpayer, contractor, or subcontractor who employs 4 or more individuals to perform construction, alteration, or repair work with respect to the construction of a qualified facility shall employ 1 or more qualified apprentices to perform such work.</text></subparagraph><subparagraph id="H7A3F875B821C4B25B1D169F9C80AEC89" commented="no"><enum>(D)</enum><header>Exception</header><clause id="H7711AEE24C0F4D1BB1D4CFF0A37C59A0" commented="no"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">A taxpayer shall not be treated as failing to satisfy the requirements of this paragraph if such taxpayer—</text><subclause id="HAEE33ABC388043AFB190C24056313FD6" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">satisfies the requirements described in clause (ii), or</text></subclause><subclause id="HF0497D3CF9074444AED5BA142165D081"><enum>(II)</enum><text display-inline="yes-display-inline">subject to clause (iii), in the case of any failure by the taxpayer to satisfy the requirement under subparagraphs (A) and (C) with respect to the construction, alteration, or repair work on any qualified facility to which subclause (I) does not apply, makes payment to the Secretary of a penalty in an amount equal to the product of—</text><item id="HCF2BF01AABF1459A87E7E98F33DDFA61"><enum>(aa)</enum><text display-inline="yes-display-inline">$50, multiplied by</text></item><item id="HE9ACDEF906B841478B6815D107D15CB6"><enum>(bb)</enum><text display-inline="yes-display-inline">the total labor hours for which the requirement described in such subparagraph was not satisfied with respect to the construction, alteration, or repair work on such qualified facility.</text></item></subclause></clause><clause id="H94683E0881C44F58B07D60A4371CF72D" commented="no"><enum>(ii)</enum><header>Good faith effort</header><text display-inline="yes-display-inline">For purposes of clause (i), a taxpayer shall be deemed to have satisfied the requirements under this paragraph with respect to a qualified facility if such taxpayer has requested qualified apprentices from a registered apprenticeship program, as defined in section 3131(e)(3)(B), and—</text><subclause id="H5C52D61015674CCA8CF54DE9D1A056D9"><enum>(I)</enum><text display-inline="yes-display-inline">such request has been denied, provided that such denial is not the result of a refusal by the taxpayer or any contractors or subcontractors engaged in the performance of construction, alteration, or repair work with respect to such qualified facility to comply with the established standards and requirements of the registered apprenticeship program, or</text></subclause><subclause id="H48BB0D9D22784DCA867D71A4FDDAE75D"><enum>(II)</enum><text display-inline="yes-display-inline">the registered apprenticeship program fails to respond to such request within 5 business days after the date on which such registered apprenticeship program received such request.</text></subclause></clause><clause id="HFAB06BFD0B0643BAB9B902D451BA1E4F"><enum>(iii)</enum><header>Intentional disregard</header><text display-inline="yes-display-inline">If the Secretary determines that any failure described in subclause (i)(II) is due to intentional disregard of the requirements under subparagraphs (A) and (C), subclause (i)(II) shall be applied by substituting <quote>$500</quote> for <quote>$50</quote> in item (aa) thereof.</text></clause></subparagraph><subparagraph id="H6A7BD59E15D64063948A37FD7A6B8094" commented="no"><enum>(E)</enum><header>Definitions</header><text>For purposes of this paragraph—</text><clause id="HB9BFF3EE688F4096B3F0EC4CBCA2FF3B" commented="no"><enum>(i)</enum><header>Labor hours</header><text display-inline="yes-display-inline">The term <quote>labor hours</quote>—</text><subclause id="H017A04C9624D46CFA974268077114F25" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">means the total number of hours devoted to the performance of construction, alteration, or repair work by any individual employed by the taxpayer or by any contractor or subcontractor, and</text></subclause><subclause id="H09892726B9E74EEABD6F6992C1A45C65" commented="no"><enum>(II)</enum><text>excludes any hours worked by—</text><item id="HC13ABB8A022B4BD7B984502830B3F9B1" commented="no"><enum>(aa)</enum><text>foremen,</text></item><item id="H8F496E11568C4BA49B6C57505BA952A9" commented="no"><enum>(bb)</enum><text>superintendents,</text></item><item id="HE115B7DF5F42483DB83EAC0C8C616421" commented="no"><enum>(cc)</enum><text>owners, or</text></item><item id="H40F6DE2781A34631846EC6705E2C372C" commented="no"><enum>(dd)</enum><text display-inline="yes-display-inline">persons employed in a bona fide executive, administrative, or professional capacity (within the meaning of those terms in part 541 of title 29, Code of Federal Regulations).</text></item></subclause></clause><clause id="HD1BD1C7874F6447E8B487E629E63BF97" commented="no"><enum>(ii)</enum><header>Qualified apprentice</header><text display-inline="yes-display-inline">The term <quote>qualified apprentice</quote> means an individual who is employed by the taxpayer or by any contractor or subcontractor and who is participating in a registered apprenticeship program, as defined in section 3131(e)(3)(B).</text></clause></subparagraph></paragraph><paragraph id="H999CC937736D40CD9134F14394922761" commented="no"><enum>(9)</enum><header>Regulations and guidance</header><text display-inline="yes-display-inline">The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of administering the requirements of this subsection.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HE1F0246E257C4EC2B41E6F2186A68DD2"><enum>(g)</enum><header>Domestic content, phaseout, and energy communities</header><text>Section 45(b), as amended by subsection (f), is amended—</text><paragraph id="id00D37D8C39124DC8812C5473DE434C52"><enum>(1)</enum><text>by redesignating paragraph (9) as paragraph (12), and</text></paragraph><paragraph id="id2FD7E238045D4029886B97DF4255231D"><enum>(2)</enum><text>by inserting after paragraph (8) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idC37B894F3E2543E38ECF7CE7B2736B32" changed="added" reported-display-style="italic"><paragraph id="H2B9175CBC4784603B40BDBC0820AAF5D" commented="no"><enum>(9)</enum><header>Domestic content bonus credit amount</header><subparagraph id="HA224A216630A4E8884EE8122296385E0" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any qualified facility which satisfies the requirement under subparagraph (B)(i), the amount of the credit determined under subsection (a) (determined after the application of paragraphs (1) through (8)) shall be increased by an amount equal to 10 percent of the amount so determined.</text></subparagraph><subparagraph id="H473A98CED8E749B9947F29B27AA29BFB" commented="no"><enum>(B)</enum><header>Requirement</header><clause id="H7C3C13AD200A44A39EF1A5F9216131B3" commented="no"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">The requirement described in this clause is satisfied with respect to any qualified facility if the taxpayer certifies to the Secretary (at such time, and in such form and manner, as the Secretary may prescribe) that any steel, iron, or manufactured product which is a component of such facility (upon completion of construction) was produced in the United States (as determined under section 661 of title 49, Code of Federal Regulations).</text></clause><clause id="H86AE2BF20B904518B2A4B68DFE8DBC27" commented="no"><enum>(ii)</enum><header>Steel and iron</header><text>In the case of steel or iron, clause (i) shall be applied in a manner consistent with section 661.5 of title 49, Code of Federal Regulations.</text></clause><clause id="H4496B779FD584897846EF81CBC54B6B5" commented="no"><enum>(iii)</enum><header>Manufactured product</header><text display-inline="yes-display-inline">For purposes of clause (i), the manufactured products which are components of a qualified facility upon completion of construction shall be deemed to have been produced in the United States if not less than the adjusted percentage (as determined under subparagraph (C)) of the total costs of all such manufactured products of such facility are attributable to manufactured products (including components) which are mined, produced, or manufactured in the United States.</text></clause></subparagraph><subparagraph id="H3F6C513806754A1AB0E1F0964951174D"><enum>(C)</enum><header>Adjusted percentage</header><clause id="HBC9C37EEE9114ACFBF2D69D5F9680049"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">Subject to subclause (ii), for purposes of subparagraph (B)(iii), the adjusted percentage shall be 40 percent.</text></clause><clause id="H1F632F9157FE4BDAB8D8761359CA8129" commented="no"><enum>(ii)</enum><header>Offshore wind facility</header><text display-inline="yes-display-inline">For purposes of subparagraph (B)(iii), in the case of a qualified facility which is an offshore wind facility, the adjusted percentage shall be 20 percent.</text></clause></subparagraph></paragraph><paragraph id="H6665338BDA9E42429EED439964C2AA0D" commented="no"><enum>(10)</enum><header>Phaseout for elective payment</header><subparagraph id="H36D75CBAE3A3404B94AAC04E51E05894" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of a taxpayer making an election under section 6417 with respect to a credit under this section, the amount of such credit shall be replaced with—</text><clause id="HA423F5088F1F497CBA1614BC6F475A1A" commented="no"><enum>(i)</enum><text>the value of such credit (determined without regard to this paragraph), multiplied by</text></clause><clause id="HB59D644657424704B3B99CCA7EDB9643" commented="no"><enum>(ii)</enum><text>the applicable percentage. </text></clause></subparagraph><subparagraph id="H31987D61437E405CBCB612323D8D6984" commented="no"><enum>(B)</enum><header>100 percent applicable percentage for certain qualified facilities</header><text display-inline="yes-display-inline">In the case of any qualified facility—</text><clause id="H0B4D6BB424E44F01BDD2AF1C02A26D22" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">which satisfies the requirements under paragraph (9)(B), or</text></clause><clause id="HB879928A4F8E4E8D9152434CB39B29BD" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">with a maximum net output of less than 1 megawatt (as measured in alternating current),</text></clause><continuation-text continuation-text-level="subparagraph" commented="no">the applicable percentage shall be 100 percent. </continuation-text></subparagraph><subparagraph id="H34FA42434A3D42CBA9734ABAD11D7198" commented="no"><enum>(C)</enum><header>Phased domestic content requirement</header><text display-inline="yes-display-inline">Subject to subparagraph (D), in the case of any qualified facility which is not described in subparagraph (B), the applicable percentage shall be—</text><clause id="H8A30C79F414E4569B2B47E27D9476DD1" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">if construction of such facility began before January 1, 2024, 100 percent, and</text></clause><clause id="H267C1D18C1EE4ABA91262CDD49BFC849" commented="no"><enum>(ii)</enum><text>if construction of such facility began in calendar year 2024, 90 percent.</text></clause></subparagraph><subparagraph id="HC59871FADAB5402793FF3FF39BE09C20" commented="no"><enum>(D)</enum><header>Exception</header><clause id="H5191ABBC39AD4226A506D814F4DDBD5D"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this paragraph, the Secretary shall provide exceptions to the requirements under this paragraph if—</text><subclause id="HC2F8AF71014B4320BD0514B1A73B76E2"><enum>(I)</enum><text>the inclusion of steel, iron, or manufactured products which are produced in the United States increases the overall costs of construction of qualified facilities by more than 25 percent, or</text></subclause><subclause id="HE948CD9236704500A6884773911E2E5A"><enum>(II)</enum><text display-inline="yes-display-inline">relevant steel, iron, or manufactured products are not produced in the United States in sufficient and reasonably available quantities or of a satisfactory quality.</text></subclause></clause><clause id="HCC81C66B147D46A286A2C9FA44FEB6BC"><enum>(ii)</enum><header>Applicable percentage</header><text display-inline="yes-display-inline">In any case in which the Secretary provides an exception pursuant to clause (i), the applicable percentage shall be 100 percent.</text></clause></subparagraph></paragraph><paragraph id="H2678B72EAE4D41588EF21193329EC7C6"><enum>(11)</enum><header>Special rule for qualified facility located in energy community</header><subparagraph id="H15BB79F4B6B34CD9A561078DF8C4A7D9"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of a qualified facility which is located in an energy community, the credit determined under subsection (a) (determined after the application of paragraphs (1) through (10), without the application of paragraph (9)) shall be increased by an amount equal to 10 percent of the amount so determined.</text></subparagraph><subparagraph id="id38F07DC83291427D8A1AD48FFE6FBB66"><enum>(B)</enum><header>Energy community</header><text>For purposes of this paragraph, the term <term>energy community</term> means—</text><clause id="idF77A98B972774A2DB7F6A2CB4E8E39D0"><enum>(i)</enum><text>a brownfield site (as defined in subparagraphs (A), (B), and (D)(ii)(III) of section 101(39) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (<external-xref legal-doc="usc" parsable-cite="usc/42/9601">42 U.S.C. 9601(39)</external-xref>)), </text></clause><clause id="id93651354D45F456BA9DFA91A1A0F8631"><enum>(ii)</enum><text>a metropolitan statistical area or non-metropolitan statistical area which—</text><subclause id="id6D3F2C93970C486F92314123B85FD6AE"><enum>(I)</enum><text>has (or, at any time during the period beginning after December 31, 2009, had) 0.17 percent or greater direct employment or 25 percent or greater local tax revenues related to the extraction, processing, transport, or storage of coal, oil, or natural gas (as determined by the Secretary), and</text></subclause><subclause id="id24FE87866B3A4D338193AE08B15CD1CE"><enum>(II)</enum><text>has an unemployment rate at or above the national average unemployment rate for the previous year (as determined by the Secretary), or</text></subclause></clause><clause id="idDEA530A437B54AF79109402AD2BD1CDD"><enum>(iii)</enum><text>a census tract—</text><subclause id="id7EB5413608AD41818982DC0BBE9B4B9D"><enum>(I)</enum><text>in which—</text><item id="idAF56849CDA094EA39F2DCBA8D2794222"><enum>(aa)</enum><text>after December 31, 1999, a coal mine has closed, or</text></item><item id="idE5CC7EA2C6844AC981A77A7B35593F42"><enum>(bb)</enum><text>after December 31, 2009, a coal-fired electric generating unit has been retired, or</text></item></subclause><subclause id="idD840BD1C14D34491AA7601714A6A8074"><enum>(II)</enum><text>which is directly adjoining to any census tract described in subclause (I).</text></subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="idB11727C95EF14DF984BE82C6383F57E7"><enum>(h)</enum><header>Credit reduced for tax-exempt bonds</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45">Section 45(b)(3)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" id="HF1C7E29465684A7898055E83F9786F59" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="H0B0E1DC809E549B5BDE5EC3D5CF28711"><enum>(3)</enum><header>Credit reduced for tax-exempt bonds</header><text display-inline="yes-display-inline">The amount of the credit determined under subsection (a) with respect to any facility for any taxable year (determined after the application of paragraphs (1) and (2)) shall be reduced by the amount which is the product of the amount so determined for such year and the lesser of 15 percent or a fraction—</text><subparagraph id="H5D76E9466B3E4F16A65AB93991DD1383"><enum>(A)</enum><text display-inline="yes-display-inline">the numerator of which is the sum, for the taxable year and all prior taxable years, of proceeds of an issue of any obligations the interest on which is exempt from tax under section 103 and which is used to provide financing for the qualified facility, and</text></subparagraph><subparagraph id="H0E8C8C1E1BF3472996641ADCD4B6798D"><enum>(B)</enum><text display-inline="yes-display-inline">the denominator of which is the aggregate amount of additions to the capital account for the qualified facility for the taxable year and all prior taxable years.</text></subparagraph><continuation-text continuation-text-level="paragraph">The amounts under the preceding sentence for any taxable year shall be determined as of the close of the taxable year.</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id2731438C037E41199F5BCE4B0ADB7863"><enum>(i)</enum><header>Rounding adjustment</header><paragraph id="id03FD057DFE7D4169B0726EEA7B294607"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45">Section 45(b)(2)</external-xref> is amended by striking the second sentence and inserting the following: <quote>If the 0.3 cent amount as increased under the preceding sentence is not a multiple of 0.05 cent, such amount shall be rounded to the nearest multiple of 0.05 cent. In any other case, if an amount as increased under this paragraph is not a multiple of 0.1 cent, such amount shall be rounded to the nearest multiple of 0.1 cent.</quote>.</text></paragraph><paragraph id="H224D63046EF34376AE06F8E408C7B345"><enum>(2)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45">Section 45(b)(4)(A)</external-xref> is amended by striking <quote>last sentence</quote> and inserting <quote>last two sentences</quote>.</text></paragraph></subsection><subsection id="id1A7D8302046D45239E3A7CDA71D8FD06"><enum>(j)</enum><header>Hydropower</header><paragraph id="id7ED0A1B1E2C543BEA5425E844437CD70"><enum>(1)</enum><header>Elimination of credit rate reduction for qualified hydroelectric production and marine and hydrokinetic renewable energy</header><text>Section 45(b)(4)(A), as amended by the preceding provisions of this section, is amended by striking <quote>(7), (9), or (11)</quote> and inserting <quote>or (7)</quote>.</text></paragraph><paragraph id="id42E065A878164B76B6845A6DC5609FBD"><enum>(2)</enum><header>Marine and hydrokinetic renewable energy</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45">Section 45</external-xref> is amended—</text><subparagraph id="id30CB2E5E99554C7284B0246BE2AA23C1"><enum>(A)</enum><text>in subsection (c)(10)(A)—</text><clause id="idD96E6BE0E0B94B1994F51E2684A976FE"><enum>(i)</enum><text>in clause (iii), by striking <quote>or</quote>,</text></clause><clause id="id488BAB74DBE74FA0B851DE8B918FB920"><enum>(ii)</enum><text>in clause (iv), by striking the period at the end and inserting <quote>, or</quote> and</text></clause><clause id="id815B0385748344EE97302B0F179DCFB6"><enum>(iii)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idB18D166615A548319D424BF8D19FBE45" changed="added" reported-display-style="italic"><clause id="id35227A87B7C44A07876474FA46CF475B"><enum>(v)</enum><text>pressurized water used in a pipeline (or similar man-made water conveyance) which is operated—</text><subclause id="id37AE106EA4044E96B6E36DC019537AB2"><enum>(I)</enum><text>for the distribution of water for agricultural, municipal, or industrial consumption, and </text></subclause><subclause id="idC598E11AF2C44C69B0E1F811938013F6"><enum>(II)</enum><text>not primarily for the generation of electricity.</text></subclause></clause><after-quoted-block>, and</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="id828C469A953B45699C5A866FF3DE0EB1" commented="no"><enum>(B)</enum><text>in subsection (d)(11)(A), by striking <quote>150</quote> and inserting <quote>25</quote>.</text></subparagraph></paragraph></subsection><subsection id="H98516075C0B442E3AACAB0DF2A3F5AB2" commented="no"><enum>(k)</enum><header>Effective dates</header><paragraph id="HCF10E9C5B70C42888BD60D1C25899155" commented="no"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraphs (2) and (3), the amendments made by this section shall apply to facilities placed in service after December 31, 2021.</text></paragraph><paragraph id="HA4B441C2CC484665894389F6C26919CE" commented="no"><enum>(2)</enum><header>Credit reduced for tax-exempt bonds</header><text>The amendment made by subsection (h) shall apply to facilities the construction of which begins after the date of enactment of this Act.</text></paragraph><paragraph commented="no" id="id67F5C1D3C0A34CBA86F9AD661BEB071C"><enum>(3)</enum><header>Domestic content, phaseout, energy communities, and hydropower</header><text>The amendments made by subsections (g) and (j) shall apply to facilities placed in service after December 31, 2022.</text></paragraph></subsection></section><section id="H6B6B4E609C904B6FA3D6D5006C1905EF" display-inline="no-display-inline" section-type="subsequent-section"><enum>13102.</enum><header>Extension and modification of energy credit</header><subsection id="H15D3BF286652493EA0C39326E3A40E51"><enum>(a)</enum><header>Extension of credit</header><text display-inline="yes-display-inline">The following provisions of section 48 are each amended by striking <quote>January 1, 2024</quote> each place it appears and inserting <quote>January 1, 2025</quote>:</text><paragraph id="H350D49568C6F41AEA4DE138E382D8EA0"><enum>(1)</enum><text>Subsection (a)(2)(A)(i)(II).</text></paragraph><paragraph id="H9C6691004953464E9D5712F27ACD93EF"><enum>(2)</enum><text>Subsection (a)(3)(A)(ii).</text></paragraph><paragraph id="HE7A95A2A34C0434DA6FCADC7C5325C39"><enum>(3)</enum><text>Subsection (c)(1)(D).</text></paragraph><paragraph id="H9EA1027274F5414D8588905CA67748B2"><enum>(4)</enum><text>Subsection (c)(2)(D).</text></paragraph><paragraph id="id108FCBBFB50F4DD4B56F1D7FEEBD247F"><enum>(5)</enum><text>Subsection (c)(3)(A)(iv).</text></paragraph><paragraph id="H9E47D6CB29244398BA4FAEBE236A1B17"><enum>(6)</enum><text>Subsection (c)(4)(C).</text></paragraph><paragraph id="id713FD6672A574C0D86D7C83901DA545E"><enum>(7)</enum><text>Subsection (c)(5)(D).</text></paragraph></subsection><subsection id="H6BE66A8B9ECE4B62A525E2DF23026AA5"><enum>(b)</enum><header>Further extension for certain energy property</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(3)(A)(vii)</external-xref> is amended by striking <quote>January 1, 2024</quote> and inserting <quote>January 1, 2035</quote>.</text></subsection><subsection id="H26693B494168474A9450C4B508EC1909" commented="no"><enum>(c)</enum><header>Phaseout of credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)</external-xref> is amended by striking paragraphs (6) and (7) and inserting the following new paragraph:</text><quoted-block style="OLC" id="H704BB7E28AC54F35853BCF75EABCB548" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="HA750CBCD646A4D2BA7F4E4D575EDDAD7"><enum>(6)</enum><header>Phaseout for certain energy property</header><text display-inline="yes-display-inline">In the case of any qualified fuel cell property, qualified small wind property, or energy property described in clause (i) or clause (ii) of paragraph (3)(A) the construction of which begins after December 31, 2019, and which is placed in service before January 1, 2022, the energy percentage determined under paragraph (2) shall be equal to 26 percent.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HABA8B99075774EE4BACE5F2BF9F6EE62"><enum>(d)</enum><header>Base energy percentage amount; phaseout of certain energy property</header><paragraph id="id65B08EA15B864EE5913B9963BD1B9EF9"><enum>(1)</enum><header>Base energy percentage amount</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)</external-xref> is amended—</text><subparagraph id="H50838F8FD6884954ADB40CB441985373"><enum>(A)</enum><text>in paragraph (2)(A)—</text><clause id="H9A408B6A154D4C7689C53EDBC3C16037"><enum>(i)</enum><text>in clause (i), by striking <quote>30 percent</quote> and inserting <quote>6 percent</quote>, and</text></clause><clause id="HA612AD7FB4F742D7BCE15F5ED50B8809"><enum>(ii)</enum><text>in clause (ii), by striking <quote>10 percent</quote> and inserting <quote>2 percent</quote>, and</text></clause></subparagraph><subparagraph id="HE557E18A6EBF4BA6ADC48000080878C0"><enum>(B)</enum><text display-inline="yes-display-inline">in paragraph (5)(A)(ii), by striking <quote>30 percent</quote> and inserting <quote>6 percent</quote>. </text></subparagraph></paragraph><paragraph id="H6EF8197E02D542FDA8A6BF6AA584FBAA" commented="no" display-inline="no-display-inline"><enum>(2)</enum><header>Phaseout of certain energy property</header><text>Section 48(a), as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HEA54CF2348494DAD87EB834F6CEA5380" changed="added" reported-display-style="italic"><paragraph id="HC40231F7AE7F4C679F42B83CB3546276" commented="no"><enum>(7)</enum><header>Phaseout for certain energy property</header><text display-inline="yes-display-inline">In the case of any energy property described in clause (vii) of paragraph (3)(A), the energy percentage determined under paragraph (2) shall be equal to—</text><subparagraph id="HF25CDA2DBF8A4A308ECF811036EC554F" commented="no"><enum>(A)</enum><text>in the case of any property the construction of which begins before January 1, 2033, and which is placed in service after December 31, 2021, 6 percent,</text></subparagraph><subparagraph id="HFE38E61F1B2C4CC3A952A16C380A19E3" commented="no"><enum>(B)</enum><text>in the case of any property the construction of which begins after December 31, 2032, and before January 1, 2034, 5.2 percent, and</text></subparagraph><subparagraph id="H92171182582F4C63930DD881B8CCDA3A" commented="no"><enum>(C)</enum><text>in the case of any property the construction of which begins after December 31, 2033, and before January 1, 2035, 4.4 percent.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H9D81B9BF410F473B979FFFA3FCC6D695"><enum>(e)</enum><header>6 percent credit for geothermal</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(2)(A)(i)(II)</external-xref> is amended by striking <quote>paragraph (3)(A)(i)</quote> and inserting <quote>clause (i) or (iii) of paragraph (3)(A)</quote>.</text></subsection><subsection id="H6652B5020FFC43D8B284E61B21F2BE2E"><enum>(f)</enum><header>Energy storage technologies; qualified biogas property; microgrid controllers; extension of other property</header><paragraph id="H7820803028744C09A3E43A5ED7ADC3E9"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(3)(A)</external-xref> is amended by striking <quote>or</quote> at the end of clause (vii), and by adding at the end the following new clauses:</text><quoted-block act-name="" id="H879DF65DC7494AA897C700CDC43AC559" style="OLC" changed="added" reported-display-style="italic"><clause id="HB3062028CDD344E1881B2D4E84483C52"><enum>(ix)</enum><text display-inline="yes-display-inline">energy storage technology, </text></clause><clause id="HB7E309534358481AAF5B8DF8E745662B"><enum>(x)</enum><text display-inline="yes-display-inline">qualified biogas property, or</text></clause><clause id="H7547CAAA14CA46838F4C23ACCD6A42AB"><enum>(xi)</enum><text>microgrid controllers,</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="HA44ADFA791C04DB5AD8FAE07D6837B7D"><enum>(2)</enum><header>Application of 6 percent credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(2)(A)(i)</external-xref> is amended by striking <quote>and</quote> at the end of subclauses (IV) and (V) and adding at the end the following new subclauses:</text><quoted-block style="OLC" id="HD5D86BCF50A84F8F97ACF88814F7F46D" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subclause id="HA13DD31316C346C392D8FDBC775D6EE3"><enum>(VI)</enum><text display-inline="yes-display-inline">energy storage technology,</text></subclause><subclause id="HBF3FA0260AC543C382C294F8A97634AB"><enum>(VII)</enum><text display-inline="yes-display-inline">qualified biogas property, </text></subclause><subclause id="H5E82DD1651654C548C589C55CAF584A0"><enum>(VIII)</enum><text>microgrid controllers, and</text></subclause><subclause id="H6F66CA2C33C04D18BEB911DEA572D2E9" commented="no"><enum>(IX)</enum><text display-inline="yes-display-inline">energy property described in clauses (v) and (vii) of paragraph (3)(A), and</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="HDD555C3C6E464755933BDB12DFAB5EC4"><enum>(3)</enum><header>Definitions</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(c)</external-xref> is amended by adding at the end the following new paragraphs: </text><quoted-block style="OLC" id="HDAA85F2233E0435BB0B6A08903160D58" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="H36DB7628EF994ABC98C5290C4526DD60" display-inline="no-display-inline"><enum>(6)</enum><header>Energy storage technology</header><subparagraph id="HB7FDCEBD19E7424EB4B16E875791A2BD"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>energy storage technology</term> means—</text><clause id="id5A2F9AE9434449BC96241BCDA63C0F60"><enum>(i)</enum><text display-inline="yes-display-inline">property (other than property primarily used in the transportation of goods or individuals and not for the production of electricity) which receives, stores, and delivers energy for conversion to electricity (or, in the case of hydrogen, which stores energy), and has a nameplate capacity of not less than 5 kilowatt hours, and</text></clause><clause id="idFB3C0E377431492695F96AE0DC3465F6"><enum>(ii)</enum><text>thermal energy storage property.</text></clause></subparagraph><subparagraph id="HFCE415180A1144EAAEB5ECC4B475F969"><enum>(B)</enum><header>Modifications of certain property</header><text display-inline="yes-display-inline">In the case of any property which either—</text><clause id="HD65155D84FEE453ABAF516F2CE60A743"><enum>(i)</enum><text>was placed in service before the date of enactment of this section and would be described in subparagraph (A)(i), except that such property has a capacity of less than 5 kilowatt hours and is modified in a manner that such property (after such modification) has a nameplate capacity of not less than 5 kilowatt hours, or </text></clause><clause id="HF4ABB1CCA3904C339C0524DE402F4510"><enum>(ii)</enum><text display-inline="yes-display-inline">is described in subparagraph (A)(i) and is modified in a manner that such property (after such modification) has an increase in nameplate capacity of not less than 5 kilowatt hours, </text></clause><continuation-text continuation-text-level="subparagraph">such property shall be treated as described in subparagraph (A)(i) except that the basis of any existing property prior to such modification shall not be taken into account for purposes of this section. In the case of any property to which this subparagraph applies, subparagraph (D) shall be applied by substituting <quote>modification</quote> for <quote>construction</quote>.</continuation-text></subparagraph><subparagraph id="H4F312F5DEE4E4CCEAFA643E350419F3C"><enum>(C)</enum><header>Thermal energy storage property</header><clause id="id9C43E06A3DED4C22803C9800E9D71FF0"><enum>(i)</enum><header>In general</header><text>Subject to clause (ii), for purposes of this paragraph, the term <term>thermal energy storage property</term> means property comprising a system which—</text><subclause id="id514F8ACB3EF24A9684C582F46DD17EDD"><enum>(I)</enum><text>is directly connected to a heating, ventilation, or air conditioning system, </text></subclause><subclause id="id40361E6C7FEA464EB2D81AD52A5ABC7B"><enum>(II)</enum><text>removes heat from, or adds heat to, a storage medium for subsequent use, and</text></subclause><subclause id="idE7AEE3B6EEAF4E61A2BBAEC1D77DCA46"><enum>(III)</enum><text>provides energy for the heating or cooling of the interior of a residential or commercial building.</text></subclause></clause><clause id="id492CE74A031B49349C39F523338CC717"><enum>(ii)</enum><header>Exclusion</header><text>The term <term>thermal energy storage property</term> shall not include—</text><subclause id="idE9C7E91E60F64A329D9FF005CB1B7F63"><enum>(I)</enum><text>a swimming pool,</text></subclause><subclause id="idB400D78809F54395AAE93BDE90B12150"><enum>(II)</enum><text>combined heat and power system property, or</text></subclause><subclause id="idC5224A6558904935A67419DBA937C778"><enum>(III)</enum><text>a building or its structural components.</text></subclause></clause></subparagraph><subparagraph id="id5E07D37BCCD44E529779BAC383364532"><enum>(D)</enum><header>Termination</header><text display-inline="yes-display-inline">The term <term>energy storage technology</term> shall not include any property the construction of which begins after December 31, 2024.</text></subparagraph></paragraph><paragraph id="H51EEAC191472464DA871A71017A2E560"><enum>(7)</enum><header>Qualified biogas property</header><subparagraph id="HB3D96958B8BD471CBC4C2A083948633E"><enum>(A)</enum><header>In general</header><text>The term <term>qualified biogas property</term> means property comprising a system which—</text><clause id="H5041073C98444AF88E195ADF6A257FCC"><enum>(i)</enum><text>converts biomass (as defined in section 45K(c)(3), as in effect on the date of enactment of this paragraph) into a gas which—</text><subclause id="H69AFFDFE26684722991DC954AB234549"><enum>(I)</enum><text>consists of not less than 52 percent methane by volume, or</text></subclause><subclause id="H327A0EC566C8469BA4CFC256FBDD4E74"><enum>(II)</enum><text>is concentrated by such system into a gas which consists of not less than 52 percent methane, and</text></subclause></clause><clause id="HA39CAD8E95474FC593C0CA823514D901"><enum>(ii)</enum><text display-inline="yes-display-inline">captures such gas for sale or productive use, and not for disposal via combustion.</text></clause></subparagraph><subparagraph id="H000A6DB9ABD34DCEBB43A473EE9E523C"><enum>(B)</enum><header>Inclusion of cleaning and conditioning property</header><text display-inline="yes-display-inline">The term <term>qualified biogas property</term> includes any property which is part of such system which cleans or conditions such gas.</text></subparagraph><subparagraph id="HBA8E57F328F5491AA8F1BC269C18663B"><enum>(C)</enum><header>Termination</header><text display-inline="yes-display-inline">The term <term>qualified biogas property</term> shall not include any property the construction of which begins after December 31, 2024.</text></subparagraph></paragraph><paragraph id="HB8F20A2C977946058F4BD87A3E965238"><enum>(8)</enum><header>Microgrid controller</header><subparagraph id="HEF6543DD5974433B966A83C1B4133E6D"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <quote>microgrid controller</quote> means equipment which is—</text><clause id="HE1143A826E5C47CD9562FF9D53E14ACE"><enum>(i)</enum><text>part of a qualified microgrid, and</text></clause><clause id="H85961726DF754E9ABDBE279C49888F4A"><enum>(ii)</enum><text>designed and used to monitor and control the energy resources and loads on such microgrid.</text></clause></subparagraph><subparagraph id="H91F24322EBCE44E9A56085ECABD59163"><enum>(B)</enum><header>Qualified microgrid</header><text>The term <quote>qualified microgrid</quote> means an electrical system which—</text><clause id="H1BA0FF1AF04C40BDA21CA16A695A543F"><enum>(i)</enum><text>includes equipment which is capable of generating not less than 4 kilowatts and not greater than 20 megawatts of electricity,</text></clause><clause id="HE0E689C58EA64DE8B2C0F44F1898A1AC"><enum>(ii)</enum><text>is capable of operating—</text><subclause id="H2F7F5DA1D1834B7397FDBBF31AA5FA8C"><enum>(I)</enum><text>in connection with the electrical grid and as a single controllable entity with respect to such grid, and</text></subclause><subclause id="HFD495FFC2B8740CEB06DB2E8BC03D8D5"><enum>(II)</enum><text>independently (and disconnected) from such grid, and</text></subclause></clause><clause id="H86616959B57642BAB234FC6641DF2E93"><enum>(iii)</enum><text>is not part of a bulk-power system (as defined in section 215 of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/824o">16 U.S.C. 824o</external-xref>)).</text></clause></subparagraph><subparagraph id="H1BB8AD88098E4079AD61CAE4685EBE53"><enum>(C)</enum><header>Termination</header><text>The term <quote>microgrid controller</quote> shall not include any property the construction of which begins after December 31, 2024.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H70A453ADEEEC444D978F4C8A5CEACAB2"><enum>(4)</enum><header>Denial Of Double Benefit For Qualified Biogas Property</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45">Section 45(e)</external-xref> is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" id="H79B31E06C333459BAD9AA35BF69D7F1F" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="H68C64EC82A224761A697785D1E63C651"><enum>(12)</enum><header>Coordination with energy credit for qualified biogas property</header><text display-inline="yes-display-inline">The term <term>qualified facility</term> shall not include any facility which produces electricity from gas produced by qualified biogas property (as defined in section 48(c)(7)) if a credit is allowed under section 48 with respect to such property for the taxable year or any prior taxable year.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph display-inline="no-display-inline" commented="no" id="idF86878FCE32C4DA0B190C432183090BA"><enum>(5)</enum><header>Public utility property</header><text>Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/50">section 50(d)</external-xref> is amended—</text><subparagraph display-inline="no-display-inline" commented="no" id="id349F22A3A875455AB1F27F04BD870FF1"><enum>(A)</enum><text>by adding after the first sentence the following new sentence: <quote>At the election of a taxpayer, this paragraph shall not apply to any energy storage technology (as defined in section 48(c)(6)), provided—</quote>, and</text></subparagraph><subparagraph display-inline="no-display-inline" commented="no" id="id184FA8EE4EA04DED9232F11E367C03F9"><enum>(B)</enum><text>by adding the following new subparagraphs:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id096375404C60495A83F9A792A726ED72" changed="added" reported-display-style="italic"><subparagraph display-inline="no-display-inline" commented="no" id="id07445FB519954635A59D44B00F7DB81C"><enum>(A)</enum><text>no election under this paragraph shall be permitted if the making of such election is prohibited by a State or political subdivision thereof, by any agency or instrumentality of the United States, or by a public service or public utility commission or other similar body of any State or political subdivision that regulates public utilities as described in section 7701(a)(33)(A),</text></subparagraph><subparagraph display-inline="no-display-inline" commented="no" id="idBFE282CB651342AAB5E4A7894627C555"><enum>(B)</enum><text>an election under this paragraph shall be made separately with respect to each energy storage technology by the due date (including extensions) of the Federal tax return for the taxable year in which the energy storage technology is placed in service by the taxpayer, and once made, may be revoked only with the consent of the Secretary, and</text></subparagraph><subparagraph display-inline="no-display-inline" commented="no" id="id1073B1EBA2EB4743A30C3307CEE3CA94"><enum>(C)</enum><text>an election shall not apply with respect to any energy storage technology if such energy storage technology has a maximum capacity equal to or less than 500 kilowatt hours.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="HDC62A4391BF144F097037B6D962DFE68"><enum>(g)</enum><header>Fuel cells using electromechanical processes</header><paragraph id="H9A1C26CBD02B4B4792B676BF7EDB8B26"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(c)(1)</external-xref> is amended—</text><subparagraph id="H23D8CFB5F30F489AA21DC3A47B5887A7"><enum>(A)</enum><text>in subparagraph (A)(i)—</text><clause id="HFC6A70A620644F829EB9E78FF9D4287C"><enum>(i)</enum><text>by inserting <quote>or electromechanical</quote> after <quote>electrochemical</quote>, and</text></clause><clause id="HA6A4F50BBF144B448B809117464200BE" commented="no"><enum>(ii)</enum><text>by inserting <quote>(1 kilowatt in the case of a fuel cell power plant with a linear generator assembly)</quote> after <quote>0.5 kilowatt</quote>, and</text></clause></subparagraph><subparagraph id="H6E6819E0A7674BCEB48BE19901DD3D42"><enum>(B)</enum><text>in subparagraph (C)—</text><clause id="HC98174FC969643938D76B5271DEF1DE2"><enum>(i)</enum><text>by inserting <quote>, or linear generator assembly,</quote> after <quote>a fuel cell stack assembly</quote>, and </text></clause><clause id="H37722229EF6740BAACEB07A210D50294"><enum>(ii)</enum><text>by inserting <quote>or electromechanical</quote> after <quote>electrochemical</quote>.</text></clause></subparagraph></paragraph><paragraph id="H7319D18181F24299A09A13A598430B7C"><enum>(2)</enum><header>Linear generator assembly limitation</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(c)(1)</external-xref> is amended by redesignating subparagraph (D) as subparagraph (E) and by inserting after subparagraph (C) the following new subparagraph: </text><quoted-block style="OLC" id="H1ADA3143A3EB4E7FA9C82C758B795A67" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subparagraph id="H433DB8F409504CC9873912F13CB20581" commented="no"><enum>(D)</enum><header>Linear generator assembly</header><text display-inline="yes-display-inline">The term <term>linear generator assembly</term> does not include any assembly which contains rotating parts.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H432CE77341DA423085C8ADFD64ABB3C2" commented="no"><enum>(h)</enum><header>Dynamic glass</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(3)(A)(ii)</external-xref> is amended by inserting <quote>, or electrochromic glass which uses electricity to change its light transmittance properties in order to heat or cool a structure,</quote> after <quote>sunlight</quote>.</text></subsection><subsection id="H7908DF2ECB2540A2A1B3B36595B08A24" commented="no"><enum>(i)</enum><header>Coordination with low income housing tax credit</header><text display-inline="yes-display-inline">Paragraph (3) of <external-xref legal-doc="usc" parsable-cite="usc/26/50">section 50(c)</external-xref> is amended—</text><paragraph id="H5F13D363E03243AA83DCF81CC4022E47" commented="no"><enum>(1)</enum><text>by striking <quote>and</quote> at the end of subparagraph (A),</text></paragraph><paragraph id="H73ED1D336FCD4DD19DE5F2A1DD4683DC" commented="no"><enum>(2)</enum><text>by striking the period at the end of subparagraph (B) and inserting <quote>, and</quote>, and</text></paragraph><paragraph id="HF5E34FFD1E5F411FB9FD83BF67C06DCC" commented="no"><enum>(3)</enum><text>by adding at the end the following new subparagraph: </text><quoted-block style="OLC" id="H63440D5612E049CD8AAAD0C563DC6A9D" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subparagraph id="H16EFD21484CE44E7B874722E1D6A32DE" commented="no"><enum>(C)</enum><text display-inline="yes-display-inline">paragraph (1) shall not apply for purposes of determining eligible basis under section 42.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H8AFA78DEBCE24C1788DE2F1113CC5B0E"><enum>(j)</enum><header>Interconnection property</header><text>Section 48(a), as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph: </text><quoted-block style="OLC" display-inline="no-display-inline" id="idD9A8F7D2A5E844F8A41CB3E1599BF321" changed="added" reported-display-style="italic"><paragraph id="HCD13AF5FBE7F4A7886095457E6912CC6"><enum>(8)</enum><header>Interconnection property</header><subparagraph id="HFB67BADDF8E9491FBDDF7A37B3E2DC61"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of determining the credit under subsection (a), energy property shall include amounts paid or incurred by the taxpayer for qualified interconnection property in connection with the installation of energy property (as defined in paragraph (3)) which has a maximum net output of not greater than 5 megawatts (as measured in alternating current), to provide for the transmission or distribution of the electricity produced or stored by such property, and which are properly chargeable to the capital account of the taxpayer.</text></subparagraph><subparagraph id="H69E9F0F0A62549F28A4B2367F399C604"><enum>(B)</enum><header>Qualified interconnection property</header><text display-inline="yes-display-inline">The term <quote>qualified interconnection property</quote> means, with respect to an energy project which is not a microgrid controller, any tangible property—</text><clause id="HD3A4E65675B84A8CAE8E209EAE884F8F"><enum>(i)</enum><text>which is part of an addition, modification, or upgrade to a transmission or distribution system which is required at or beyond the point at which the energy project interconnects to such transmission or distribution system in order to accommodate such interconnection,</text></clause><clause id="H5564A3D86866466FB1AADA8D0EEDFDF8"><enum>(ii)</enum><text display-inline="yes-display-inline">either—</text><subclause id="H3AC3160C4E4F4BAD850B8CB9A87712A6"><enum>(I)</enum><text>which is constructed, reconstructed, or erected by the taxpayer, or </text></subclause><subclause id="HF7BF221F5C95447ABA0AE6B00AAC12F6"><enum>(II)</enum><text>for which the cost with respect to the construction, reconstruction, or erection of such property is paid or incurred by such taxpayer, and</text></subclause></clause><clause id="H740F3FD4752643C3AC4B1675D1880FA5"><enum>(iii)</enum><text display-inline="yes-display-inline">the original use of which, pursuant to an interconnection agreement, commences with a utility.</text></clause></subparagraph><subparagraph id="H7353C37963214711906A1CB6DB88161A"><enum>(C)</enum><header>Interconnection agreement</header><text display-inline="yes-display-inline">The term <quote>interconnection agreement</quote> means an agreement with a utility for the purposes of interconnecting the energy property owned by such taxpayer to the transmission or distribution system of such utility.</text></subparagraph><subparagraph id="HCE10D3EA65BD44B5B39AC2DAB10083E4"><enum>(D)</enum><header>Utility</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term <quote>utility</quote> means the owner or operator of an electrical transmission or distribution system which is subject to the regulatory authority of a State or political subdivision thereof, any agency or instrumentality of the United States, a public service or public utility commission or other similar body of any State or political subdivision thereof, or the governing or ratemaking body of an electric cooperative.</text></subparagraph><subparagraph id="HEC82E63CA00B44F9829B1337D75EAB45" commented="no"><enum>(E)</enum><header>Special rule for interconnection property</header><text>In the case of expenses paid or incurred for interconnection property, amounts otherwise chargeable to capital account with respect to such expenses shall be reduced under rules similar to the rules of section 50(c).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id37B480B91AF045A0BD5B9A3E96521FFE"><enum>(k)</enum><header>Energy projects, wage requirements, and apprenticeship requirements</header><text>Section 48(a), as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraphs:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id1E2D3C79BC9A4AD491189A22FD6A379F" changed="added" reported-display-style="italic"><paragraph id="H00908FC9F1564C20A300E2B72290E240" commented="no"><enum>(9)</enum><header>Increased credit amount for energy projects</header><subparagraph id="H0531FC2AC4BD4057AAFA60873F633096" commented="no"><enum>(A)</enum><header>In general</header><clause id="H057FCC82F38D47498E1DDE07D8BE10E3" commented="no"><enum>(i)</enum><header>Rule</header><text>In the case of any energy project which satisfies the requirements of subparagraph (B), the amount of the credit determined under this subsection (determined after the application of paragraphs (1) through (8) and without regard to this clause) shall be equal to such amount multiplied by 5.</text></clause><clause id="HDE0253CFC46F45BDBD1D8EF392DD90CD" commented="no"><enum>(ii)</enum><header>Energy project defined</header><text>For purposes of this subsection, the term <quote>energy project</quote> means a project consisting of one or more energy properties that are part of a single project.</text></clause></subparagraph><subparagraph id="H41F9F2AAB8E841ED808DFABC916D7C6F" commented="no"><enum>(B)</enum><header>Project requirements</header><text display-inline="yes-display-inline">A project meets the requirements of this subparagraph if it is one of the following: </text><clause id="HA2F7EDF6E9D94C758F190B8031CA1E8B" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">A project with a maximum net output of less than 1 megawatt of electrical (as measured in alternating current) or thermal energy.</text></clause><clause id="HCC51DB28465844E68F5F1812ACD257BF" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">A project the construction of which begins before the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (10)(A) and (11).</text></clause><clause id="H3400E2F97CDC4C2BBB7DFDCFBDCFE3C6"><enum>(iii)</enum><text>A project which satisfies the requirements of paragraphs (10)(A) and (11).</text></clause></subparagraph></paragraph><paragraph id="H6F90A08D6CB84C3396736F455AE203E1" commented="no"><enum>(10)</enum><header>Prevailing wage requirements</header><subparagraph id="HC701A2D46A574860B8387CA7135BBF0F" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The requirements described in this subparagraph with respect to any energy project are that the taxpayer shall ensure that any laborers and mechanics employed by the taxpayer or any contractor or subcontractor in—</text><clause id="HE236F45FD9F546C69DE5D206244C9E0E" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">the construction of such energy project, and</text></clause><clause id="HE7331E280CB547B789B87D5406931910" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">for the 5-year period beginning on the date such project is originally placed in service, the alteration or repair of such project,</text></clause><continuation-text continuation-text-level="subparagraph" commented="no">shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality in which such project is located as most recently determined by the Secretary of Labor, in accordance with subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code. Subject to subparagraph (C), for purposes of any determination under paragraph (9)(A)(i) for the taxable year in which the energy project is placed in service, the taxpayer shall be deemed to satisfy the requirement under clause (ii) at the time such project is placed in service.</continuation-text></subparagraph><subparagraph id="H2FA6EC2A29344F378A18F669E02BE405" commented="no"><enum>(B)</enum><header>Correction and penalty related to failure to satisfy wage requirements</header><text display-inline="yes-display-inline">Rules similar to the rules of section 45(b)(7)(B) shall apply.</text></subparagraph><subparagraph id="H4AF5CCBA82034BCF835D60CCFCA0D121"><enum>(C)</enum><header>Recapture</header><text display-inline="yes-display-inline">The Secretary shall, by regulations or other guidance, provide for recapturing the benefit of any increase in the credit allowed under this subsection by reason of this paragraph with respect to any project which does not satisfy the requirements under subparagraph (A) (after application of subparagraph (B)) for the period described in clause (ii) of subparagraph (A) (but which does not cease to be investment credit property within the meaning of section 50(a)). The period and percentage of such recapture shall be determined under rules similar to the rules of section 50(a).</text></subparagraph></paragraph><paragraph id="HEFCCB6304B714F45BBECCF03253C8DD2" commented="no"><enum>(11)</enum><header>Apprenticeship requirements</header><text display-inline="yes-display-inline">Rules similar to the rules of section 45(b)(8) shall apply.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="idB53CCBB6418B441596736D89DDCF7F44"><enum>(l)</enum><header>Domestic content; phaseout for elective payment</header><text>Section 48(a), as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraphs:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idDBBD89B63C0449198F17423C0EECF7D5" changed="added" reported-display-style="italic"><paragraph id="HA976A8BE543045568626DA2C7C113E14" commented="no"><enum>(12)</enum><header>Domestic content bonus credit amount</header><subparagraph id="H87C90ABF95D94EEB9CD8FE594D09EC11"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any energy project which satisfies the requirement under subparagraph (B), for purposes of applying paragraph (2) with respect to such property, the energy percentage shall be increased by the applicable credit rate increase.</text></subparagraph><subparagraph id="H6C28C2A459044E129D66569F9BDC6D85"><enum>(B)</enum><header>Requirement</header><text>Rules similar to the rules of section 45(b)(9)(B) shall apply.</text></subparagraph><subparagraph id="HAE702A3D6BB846A7B8B36AA7D19B5979"><enum>(C)</enum><header>Applicable credit rate increase</header><text>For purposes of subparagraph (A), the applicable credit rate increase shall be—</text><clause id="HF841F7A4B7454BDC8E55B87E888E9EC9"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of an energy project which does not satisfy the requirements of paragraph (9)(B), 2 percentage points, and</text></clause><clause id="H8CAB5EE803DA4D0FBB023C226BBF7417"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of an energy project which satisfies the requirements of paragraph (9)(B), 10 percentage points.</text></clause></subparagraph></paragraph><paragraph id="idF1AE42531A4A45F0BD62ED47AD9A833E"><enum>(13)</enum><header>Phaseout for elective payment</header><text>In the case of a taxpayer making an election under section 6417 with respect to a credit under this section, rules similar to the rules of section 45(b)(10) shall apply.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H6CAF29BA03454D2DB2AB335F14E71E07"><enum>(m)</enum><header>Special rule for property financed by tax-exempt bonds</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(4)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" id="H00B2B2259F994C9FB31FF00F916D9A5A" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="H3047DE81D22E4D74A2B2EFA7B617CC11"><enum>(4)</enum><header>Special rule for property financed by tax-exempt bonds</header><text display-inline="yes-display-inline">Rules similar to the rule under section 45(b)(3) shall apply for purposes of this section.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H06B22D961D924841BD99ACCEECB0970E"><enum>(n)</enum><header>Treatment of certain contracts involving energy storage</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/7701">Section 7701(e)</external-xref> is amended—</text><paragraph id="H4DD2E467741241CDBAFECA2F02F4F9C1"><enum>(1)</enum><text>in paragraph (3)—</text><subparagraph id="HC35C40C2C7AF46A3AAA068835B85BF32"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (A)(i), by striking <quote>or</quote> at the end of subclause (II), by striking <quote>and</quote> at the end of subclause (III) and inserting <quote>or</quote>, and by adding at the end the following new subclause: </text><quoted-block style="OLC" id="HB30B6A29A69249DF979915001433F0DC" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subclause id="H7252B501BBF04454A947987662E4F635"><enum>(IV)</enum><text display-inline="yes-display-inline">the operation of a storage facility, and</text></subclause><after-quoted-block>, and</after-quoted-block></quoted-block></subparagraph><subparagraph id="HED03413A892E44DB9B67500207347783"><enum>(B)</enum><text>by adding at the end the following new subparagraph: </text><quoted-block style="OLC" id="HC54480B8F1084D5FB3156215A532C4B1" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subparagraph id="HA13AFE7644DA4CE69DDCD25B7AA0B508"><enum>(F)</enum><header>Storage facility</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), the term <quote>storage facility</quote> means a facility which uses energy storage technology within the meaning of section 48(c)(6).</text></subparagraph><after-quoted-block>, and </after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="HC119C378CE2346078E3961B6C1E96531"><enum>(2)</enum><text>in paragraph (4), by striking <quote>or water treatment works facility</quote> and inserting <quote>water treatment works facility, or storage facility</quote>. </text></paragraph></subsection><subsection id="H8575E8EB2E864C15B9D1DB66E930BCB4"><enum>(o)</enum><header>Increase in credit rate for energy communities</header><text display-inline="yes-display-inline">Section 48(a), as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" id="H5F630B6575764242B1C49B852A4006FD" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="H6BE7F0AC506D49838CAFCE54E2C92535"><enum>(14)</enum><header>Increase in credit rate for energy communities</header><subparagraph id="H225B946790504E12B33A693524265D3C"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any energy project that is placed in service within an energy community (as defined in section 45(b)(11)(B), as applied by substituting <quote>energy project</quote> for <quote>qualified facility</quote> each place it appears), for purposes of applying paragraph (2) with respect to energy property which is part of such project, the energy percentage shall be increased by the applicable credit rate increase.</text></subparagraph><subparagraph id="HE0951A7F5072427DAC1B37A0951193FE"><enum>(B)</enum><header>Applicable credit rate increase</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), the applicable credit rate increase shall be equal to—</text><clause id="H91EDEDB7D1F14B8FBEAD423A8F00ECE7"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of any energy project which does not satisfy the requirements of paragraph (9)(B), 2 percentage points, and</text></clause><clause id="HBD962735A4D24512BEF7EA5EA3F88C6D"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of any energy project which satisfies the requirements of paragraph (9)(B), 10 percentage points.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id89116DA2C13E45E581787D861483927E"><enum>(p)</enum><header>Regulations</header><text>Section 48(a), as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id63A37E5CC088407BBAFC00C378BFC8DE" changed="added" reported-display-style="italic"><paragraph id="H34682DE7B2254BB7A17D0520D2B8C0A5" commented="no"><enum>(15)</enum><header>Regulations and guidance</header><text display-inline="yes-display-inline">The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of administering the requirements of this subsection.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H7BC9D33A7700400F8CE07AF467762D12"><enum>(q)</enum><header>Effective dates</header><paragraph id="H4126CA7F53E64E7D842BFD6409753959"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraphs (2) and (3), the amendments made by this section shall apply to property placed in service after December 31, 2021.</text></paragraph><paragraph id="H9576F557C9D143399C550116D2F1C3BD" display-inline="no-display-inline"><enum>(2)</enum><header>Other property</header><text display-inline="yes-display-inline">The amendments made by subsections (f), (g), (h), (i), (j), (l), (n), and (o) shall apply to property placed in service after December 31, 2022.</text></paragraph><paragraph id="HE5FE3FAEC49D4184B774EB42EA1265CE"><enum>(3)</enum><header>Special rule for property financed by tax-exempt bonds</header><text display-inline="yes-display-inline">The amendments made by subsection (m) shall apply to property the construction of which begins after the date of enactment of this Act.</text></paragraph></subsection></section><section id="HAA2E60B848CB443691F9EFAB668CDFE7" display-inline="no-display-inline"><enum>13103.</enum><header>Increase in energy credit for solar and wind facilities placed in service in connection with low-income communities</header><subsection id="HC34CC5657FE64DD780E5FCB2F1C5EEEE"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48</external-xref> is amended by adding at the end the following new subsection:</text><quoted-block style="OLC" id="H29701899F38C49468C276174DAEB63D1" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subsection id="H5F0C4C9AD1424C43812DAAF1CB4E0FDC"><enum>(e)</enum><header>Special rules for certain solar and wind facilities placed in service in connection with low-income communities</header><paragraph id="HB091FA9494AA44DAB5E7E760308A4C37"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any qualified solar and wind facility with respect to which the Secretary makes an allocation of environmental justice solar and wind capacity limitation under paragraph (4)—</text><subparagraph id="H531C0B9BDD1F461AAD353D046759CC99"><enum>(A)</enum><text>the energy percentage otherwise determined under paragraph (2) or (5) of subsection (a) with respect to any eligible property which is part of such facility shall be increased by—</text><clause id="H436B92A2A7444671BFDC83D46245EF4B"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of a facility described in subclause (I) of paragraph (2)(A)(iii) and not described in subclause (II) of such paragraph, 10 percentage points, and </text></clause><clause id="H2929ECFB6C7E4F929598EA2341B69E94"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of a facility described in subclause (II) of paragraph (2)(A)(iii), 20 percentage points, and</text></clause></subparagraph><subparagraph id="H9FE0F1CDDACB4FDDAD815BA4A616B92A"><enum>(B)</enum><text>the increase in the credit determined under subsection (a) by reason of this subsection for any taxable year with respect to all property which is part of such facility shall not exceed the amount which bears the same ratio to the amount of such increase (determined without regard to this subparagraph) as—</text><clause id="HAE636BA13ADF47CA9E030395CE373888"><enum>(i)</enum><text>the environmental justice solar and wind capacity limitation allocated to such facility, bears to</text></clause><clause id="H9E7D02E8671941A39E0605F875696F9D"><enum>(ii)</enum><text>the total megawatt nameplate capacity of such facility, as measured in direct current.</text></clause></subparagraph></paragraph><paragraph id="H3C6F154A33B64B38983DC6238E6EF05D"><enum>(2)</enum><header>Qualified solar and wind facility</header><text>For purposes of this subsection—</text><subparagraph id="HE411835777AB4F95BD1A34455583DC21"><enum>(A)</enum><header>In general</header><text>The term <quote>qualified solar and wind facility</quote> means any facility—</text><clause id="H29BB83C335D14B5DB3E3210B79DBCD91"><enum>(i)</enum><text>which generates electricity solely from property described in section 45(d)(1) or in clause (i) or (vi) of subsection (a)(3)(A),</text></clause><clause id="H4EF9207C4A5945DD957F0E9222F8D9F1"><enum>(ii)</enum><text>which has a maximum net output of less than 5 megawatts (as measured in alternating current), and</text></clause><clause id="HF5180C681EAC4CD69DCFCDB224477D46"><enum>(iii)</enum><text>which—</text><subclause id="H8BD42D1ADB184625A27AD2295E2C3DA8"><enum>(I)</enum><text>is located in a low-income community (as defined in section 45D(e)) or on Indian land (as defined in section 2601(2) of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/25/3501">25 U.S.C. 3501(2)</external-xref>)), or</text></subclause><subclause id="H0541E2C65C2644AD9DEC1DA6CB592B28"><enum>(II)</enum><text>is part of a qualified low-income residential building project or a qualified low-income economic benefit project.</text></subclause></clause></subparagraph><subparagraph id="H532FDF85CE3841D5B4F11B8C83293518"><enum>(B)</enum><header>Qualified low-income residential building project</header><text>A facility shall be treated as part of a qualified low-income residential building project if—</text><clause id="HA1553ED789E247CF99110B59A7404DA0"><enum>(i)</enum><text display-inline="yes-display-inline">such facility is installed on a residential rental building which participates in a covered housing program (as defined in section 41411(a) of the Violence Against Women Act of 1994 (<external-xref legal-doc="usc" parsable-cite="usc/34/12491">34 U.S.C. 12491(a)(3)</external-xref>), a housing assistance program administered by the Department of Agriculture under title V of the Housing Act of 1949, a housing program administered by a tribally designated housing entity (as defined in section 4(22) of the Native American Housing Assistance and Self-Determination Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/25/4103">25 U.S.C. 4103(22)</external-xref>)) or such other affordable housing programs as the Secretary may provide, and</text></clause><clause id="HFD029B106A054334819057F77A87F3B3"><enum>(ii)</enum><text>the financial benefits of the electricity produced by such facility are allocated equitably among the occupants of the dwelling units of such building.</text></clause></subparagraph><subparagraph id="HD059FAB0E28D497E8B48F85D6B5103B7"><enum>(C)</enum><header>Qualified low-income economic benefit project</header><text display-inline="yes-display-inline">A facility shall be treated as part of a qualified low-income economic benefit project if at least 50 percent of the financial benefits of the electricity produced by such facility are provided to households with income of—</text><clause id="H431D3C65135B4882937D0BEBE955AC76"><enum>(i)</enum><text>less than 200 percent of the poverty line (as defined in section 36B(d)(3)(A)) applicable to a family of the size involved, or</text></clause><clause id="H74DE37B1073E46BB910A92E9213FCF60"><enum>(ii)</enum><text>less than 80 percent of area median gross income (as determined under section 142(d)(2)(B)). </text></clause></subparagraph><subparagraph id="HB43705D1ABBE4D11AB29F8F26E08ECE1"><enum>(D)</enum><header>Financial benefit</header><text>For purposes of subparagraphs (B) and (C), electricity acquired at a below-market rate shall not fail to be taken into account as a financial benefit.</text></subparagraph></paragraph><paragraph id="H8CC5CD13BA7043F38F18A12B93DC5CD2" commented="no"><enum>(3)</enum><header>Eligible property</header><text display-inline="yes-display-inline">For purposes of this section, the term <quote>eligible property</quote> means energy property which—</text><subparagraph commented="no" id="id7AD9DC158CE340108084782C3F0C3923"><enum>(A)</enum><text display-inline="yes-display-inline">is part of a facility described in section 45(d)(1) for which an election was made under subsection (a)(5), or </text></subparagraph><subparagraph commented="no" id="id7DFB79C5A00F43DCAF52B1E1183F7CC5"><enum>(B)</enum><text display-inline="yes-display-inline">is described in clause (i) or (vi) of subsection (a)(3)(A),</text></subparagraph><continuation-text continuation-text-level="paragraph">including energy storage technology (as described in subsection (a)(3)(A)(ix)) installed in connection with such energy property.</continuation-text></paragraph><paragraph id="HD7AB6EDA15F643C88CFC5B5F9D3F2517" commented="no"><enum>(4)</enum><header>Allocations</header><subparagraph id="H6D6FE77F8A33460C929CBE681C25676C" commented="no" display-inline="no-display-inline"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 180 days after the date of enactment of this subsection, the Secretary shall establish a program to allocate amounts of environmental justice solar and wind capacity limitation to qualified solar and wind facilities. In establishing such program and to carry out the purposes of this subsection, the Secretary shall provide procedures to allow for an efficient allocation process, including, when determined appropriate, consideration of multiple projects in a single application if such projects will be placed in service by a single taxpayer.</text></subparagraph><subparagraph id="H272C4E349CE5476292D2670EF063827B" commented="no"><enum>(B)</enum><header>Limitation</header><text display-inline="yes-display-inline">The amount of environmental justice solar and wind capacity limitation allocated by the Secretary under subparagraph (A) during any calendar year shall not exceed the annual capacity limitation with respect to such year. </text></subparagraph><subparagraph id="H71A3BD31ED05478CB08F47E085B9522A" commented="no"><enum>(C)</enum><header>Annual capacity limitation</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term <term>annual capacity limitation</term> means 1.8 gigawatts of direct current capacity for each of calendar years 2023 and 2024, and zero thereafter.</text></subparagraph><subparagraph id="H1E7CBF0A3EF14CABAA27C4BEB331C5EC"><enum>(D)</enum><header>Carryover of unused limitation</header><text>If the annual capacity limitation for any calendar year exceeds the aggregate amount allocated for such year under this paragraph, such limitation for the succeeding calendar year shall be increased by the amount of such excess. No amount may be carried under the preceding sentence to any calendar year after 2024 except as provided in section 48E(h)(4)(D)(ii). </text></subparagraph><subparagraph id="HE2BB4C2711F24423AB5C23B586EA5D4B"><enum>(E)</enum><header>Placed in service deadline</header><clause id="H2820426ED4DA466C908A5CEE55B781DF"><enum>(i)</enum><header>In general</header><text>Paragraph (1) shall not apply with respect to any property which is placed in service after the date that is 4 years after the date of the allocation with respect to the facility of which such property is a part.</text></clause><clause id="H2699CD89CB2B40D885EDC349EEBAB01B"><enum>(ii)</enum><header>Application of carryover</header><text display-inline="yes-display-inline">Any amount of environmental justice solar and wind capacity limitation which expires under clause (i) during any calendar year shall be taken into account as an excess described in subparagraph (D) (or as an increase in such excess) for such calendar year, subject to the limitation imposed by the last sentence of such subparagraph.</text></clause></subparagraph></paragraph><paragraph id="HDBBF8837F6664839AAE7CF0A15A48CFF"><enum>(5)</enum><header>Recapture</header><text display-inline="yes-display-inline">The Secretary shall, by regulations or other guidance, provide for recapturing the benefit of any increase in the credit allowed under subsection (a) by reason of this subsection with respect to any property which ceases to be property eligible for such increase (but which does not cease to be investment credit property within the meaning of section 50(a)). The period and percentage of such recapture shall be determined under rules similar to the rules of section 50(a). To the extent provided by the Secretary, such recapture may not apply with respect to any property if, within 12 months after the date the taxpayer becomes aware (or reasonably should have become aware) of such property ceasing to be property eligible for such increase, the eligibility of such property for such increase is restored. The preceding sentence shall not apply more than once with respect to any facility.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H7696764DA1004B4790808D19B0CCAD61"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall take effect on January 1, 2023.</text></subsection></section><section id="H41E6B241B5584A68A6F678BAB6740040" commented="no"><enum>13104.</enum><header>Extension and modification of credit for carbon oxide sequestration</header><subsection id="H1B1D6B83AF5C4F63A717DFBBCC7F9F6C"><enum>(a)</enum><header>Modification of carbon oxide capture requirements</header><paragraph id="id3647A151C74E489ABBAD7B57039B5EC2"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45Q">Section 45Q(d)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" id="HB1D1F723BD574BDBAA87F00364BF9B74" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subsection id="HB811D87A50484F759F5265DAE80DD55E"><enum>(d)</enum><header>Qualified facility</header><text display-inline="yes-display-inline">For purposes of this section, the term <quote>qualified facility</quote> means any industrial facility or direct air capture facility—</text><paragraph id="id62C28343F9434503839149C14A1413FC"><enum>(1)</enum><text>the construction of which begins before January 1, 2033, and either—</text><subparagraph id="id5D97FFF172CE4E3CBEC19378D41A590C"><enum>(A)</enum><text>construction of carbon capture equipment begins before such date, or</text></subparagraph><subparagraph id="idB97A0A71DF9A49A3A50D986F8F2B7005"><enum>(B)</enum><text>the original planning and design for such facility includes installation of carbon capture equipment, and</text></subparagraph></paragraph><paragraph id="idAAD6ADDA10094F429FEE544AD2917B3F"><enum>(2)</enum><text display-inline="yes-display-inline">which— </text><subparagraph id="H1DC1E25048324B1B93B6C2B50D95E275"><enum>(A)</enum><text>in the case of a direct air capture facility, captures not less than 1,000 metric tons of qualified carbon oxide during the taxable year,</text></subparagraph><subparagraph id="H71A27C5DB7C349349BD1ADE238C0581A"><enum>(B)</enum><text>in the case of an electricity generating facility—</text><clause id="id66F9EE9FA02645BE98EEA3C9DB1FDABD"><enum>(i)</enum><text>captures not less than 18,750 metric tons of qualified carbon oxide during the taxable year, and</text></clause><clause id="id0C94640275E94526B2C813ED389CD834"><enum>(ii)</enum><text>with respect to any carbon capture equipment for the applicable electric generating unit at such facility, has a capture design capacity of not less than 75 percent of the baseline carbon oxide production of such unit, or</text></clause></subparagraph><subparagraph id="H74CC4A25B9524C209D3E9DB73E8C2EF6"><enum>(C)</enum><text>in the case of any other facility, captures not less than 12,500 metric tons of qualified carbon oxide during the taxable year.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id830858A18B764D4F8D22FA649251727D"><enum>(2)</enum><header>Definitions</header><subparagraph id="id16F524BEC71843FFB2D05F4656697087"><enum>(A)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45Q">Section 45Q(e)</external-xref> is amended—</text><clause id="id72E68201306F404F8B04C150D6FC95FF"><enum>(i)</enum><text>by redesignating paragraphs (1) through (3) as paragraphs (3) through (5), respectively, and</text></clause><clause id="id15A180C10ACC4415B7731E47E749C6D3"><enum>(ii)</enum><text>by inserting after <quote>For purposes of this section—</quote> the following new paragraphs:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idFF84D8FE29C540AA83A0764D6BBD18B5" changed="added" reported-display-style="italic"><paragraph id="idF36A8AE031F2425E9EB57CE061FBDD31"><enum>(1)</enum><header>Applicable electric generating unit</header><text>The term <term>applicable electric generating unit</term> means the principal electric generating unit for which the carbon capture equipment is originally planned and designed.</text></paragraph><paragraph id="id56FA851951474716AC380BFF640E0337"><enum>(2)</enum><header>Baseline carbon oxide production</header><subparagraph id="id01A781A509E24F99A424F945B9576777"><enum>(A)</enum><header>In general</header><text>The term <term>baseline carbon oxide production</term> means either of the following:</text><clause id="idC4961BC1509E4339BA5A95D5BFBFC479"><enum>(i)</enum><text>In the case of an applicable electric generating unit which was originally placed in service more than 1 year prior to the date on which construction of the carbon capture equipment begins, the average annual carbon oxide production, by mass, from such unit during—</text><subclause id="id18B1B3D2AC78446F96001BAAEF2340AB" commented="no"><enum>(I)</enum><text>in the case of an applicable electric generating unit which was originally placed in service more than 1 year prior to the date on which construction of the carbon capture equipment begins and on or after the date which is 3 years prior to the date on which construction of such equipment begins, the period beginning on the date such unit was placed in service and ending on the date on which construction of such equipment began, and</text></subclause><subclause id="id101293C533D14264A422CB4E0B1781EF" commented="no"><enum>(II)</enum><text>in the case of an applicable electric generating unit which was originally placed in service more than 3 years prior to the date on which construction of the carbon capture equipment begins, the 3 years with the highest annual carbon oxide production during the 12-year period preceding the date on which construction of such equipment began.</text></subclause></clause><clause id="id51D8D25E76DF4865825992D48BBAA584"><enum>(ii)</enum><text>In the case of an applicable electric generating unit which—</text><subclause id="id395FD268D5A140B29C02D096AA479E01"><enum>(I)</enum><text>as of the date on which construction of the carbon capture equipment begins, is not yet placed in service, or </text></subclause><subclause id="id5BAA09313E1B419E882BED904EC9B320"><enum>(II)</enum><text>was placed in service during the 1-year period prior to the date on which construction of the carbon capture equipment begins,</text></subclause><continuation-text continuation-text-level="clause">the designed annual carbon oxide production, by mass, as determined based on an assumed capacity factor of 60 percent.</continuation-text></clause></subparagraph><subparagraph id="idDE43CC11C7E94A33ADDF620B2C08A643"><enum>(B)</enum><header>Capacity factor</header><text>The term <term>capacity factor</term> means the ratio (expressed as a percentage) of the actual electric output from the applicable electric generating unit to the potential electric output from such unit.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="idFB3E2F7B6AB64C8DABD42905A630C7CE"><enum>(B)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/142">Section 142(o)(1)(B)</external-xref> is amended by striking <quote>section 45Q(e)(1)</quote> and inserting <quote>section 45Q(e)(3)</quote>.</text></subparagraph></paragraph></subsection><subsection id="idE0E841F4AD3E43BFB9658EF3F81B6552"><enum>(b)</enum><header>Modified applicable dollar amount</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/45Q">Section 45Q(b)(1)(A)</external-xref> is amended—</text><paragraph id="id652543B5BE504DF5AA55DD0D13223929"><enum>(1)</enum><text display-inline="yes-display-inline">in clause (i)—</text><subparagraph id="id6A214694C97F41ABAD227B487236D523"><enum>(A)</enum><text display-inline="yes-display-inline">in subclause (I), by striking <quote>the dollar amount</quote> and all that follows through <quote>such period</quote> and inserting <quote>$17</quote>, and</text></subparagraph><subparagraph id="id69A34437F7CD4E49A863F294708FED54"><enum>(B)</enum><text>in subclause (II), by striking <quote>the dollar amount</quote> and all that follows through <quote>such period</quote> and inserting <quote>$12</quote>, and</text></subparagraph></paragraph><paragraph id="id41BFB2E9F06B445EA7A952EA9FCB0144"><enum>(2)</enum><text>in clause (ii)—</text><subparagraph id="id3E14FF3E4FB94F2D88F68CD23F83D8B0"><enum>(A)</enum><text>in subclause (I), by striking <quote>$50</quote> and inserting <quote>$17</quote>, and</text></subparagraph><subparagraph id="id13EB6BEE427C4556927084B72EA00922"><enum>(B)</enum><text display-inline="yes-display-inline">in subclause (II), by striking <quote>$35</quote> and inserting <quote>$12</quote>.</text></subparagraph></paragraph></subsection><subsection id="H7DE99A32B3FB4DDEBAC048D037B151AB"><enum>(c)</enum><header>Determination of applicable dollar amount</header><paragraph id="H47EFBF9830444DC9BE574C1756883BA5"><enum>(1)</enum><header>In general</header><text>Section 45Q(b)(1), as amended by the preceding provisions of this Act, is amended—</text><subparagraph id="idA7C921B1FA624415B2A02C802042F3DB"><enum>(A)</enum><text>by redesignating subparagraph (B) as subparagraph (D), and </text></subparagraph><subparagraph id="id74E497935BA6470E848759B6FFAE2BA8"><enum>(B)</enum><text>by inserting after subparagraph (A) the following new subparagraphs:</text><quoted-block style="OLC" id="HF9F1EE8390F445DD87912F16D048ECDF" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subparagraph id="H8B8EF029D1EB4EB4A6AA4E4997EF11B7"><enum>(B)</enum><header>Special rule for direct air capture facilities</header><text display-inline="yes-display-inline">In the case of any qualified facility described in subsection (d)(2)(A) which is placed in service after December 31, 2022, the applicable dollar amount shall be an amount equal to the applicable dollar amount otherwise determined with respect to such qualified facility under subparagraph (A), except that such subparagraph shall be applied—</text><clause id="H5C4C472F77DF467CA7163E927DF54B2B" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">by substituting <quote>$36</quote> for <quote>$17</quote> each place it appears, and</text></clause><clause id="HFC0B7272F4F441F999EAF38190871F8F" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">by substituting <quote>$26</quote> for <quote>$12</quote> each place it appears.</text></clause></subparagraph><subparagraph id="H6ED87408EEBC42728A23E44B01C28DD3"><enum>(C)</enum><header>Applicable dollar amount for additional carbon capture equipment</header><text display-inline="yes-display-inline">In the case of any qualified facility which is placed in service before January 1, 2023, if any additional carbon capture equipment is installed at such facility and such equipment is placed in service after December 31, 2022, the applicable dollar amount shall be an amount equal to the applicable dollar amount otherwise determined under this paragraph, except that subparagraph (B) shall be applied—</text><clause id="idF4AB2D6F64094B06876D5D742550FBC2"><enum>(i)</enum><text display-inline="yes-display-inline">by substituting <quote>before January 1, 2023</quote> for <quote>after December 31, 2022</quote>, and</text></clause><clause id="id46DF6B636F5043D5A8211D79C5F4ABA6"><enum>(ii)</enum><text display-inline="yes-display-inline">by substituting <quote>the additional carbon capture equipment installed at such qualified facility</quote> for <quote>such qualified facility</quote>.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="H5714B762691047B6AB5E5FD77E793FB6"><enum>(2)</enum><header>Conforming amendments</header><subparagraph id="H4A16B1C34D5944D9AD2BD4CF489A4D6A"><enum>(A)</enum><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/45Q">Section 45Q(b)(1)(A)</external-xref> is amended by striking <quote>The applicable dollar amount</quote> and inserting <quote>Except as provided in subparagraph (B) or (C), the applicable dollar amount</quote>.</text></subparagraph><subparagraph id="H7A390F1198714DDB82D3A822E53335B7" commented="no"><enum>(B)</enum><text>Section 45Q(b)(1)(D), as redesignated by paragraph (1)(A), is amended by striking <quote>subparagraph (A)</quote> and inserting <quote>subparagraph (A), (B), or (C)</quote>.</text></subparagraph></paragraph></subsection><subsection id="HCC7947D4FDAA4B65A1965B66D6909DF1" commented="no" display-inline="no-display-inline"><enum>(d)</enum><header>Wage and apprenticeship requirements</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45Q">Section 45Q</external-xref> is amended by redesignating subsection (h) as subsection (i) and inserting after subsection (g) following new subsection: </text><quoted-block style="OLC" id="H81AE687277A149D4823010F54CCEB7C7" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subsection id="H052AFD1552424E8FB1AC826CD9D5F5F6" commented="no"><enum>(h)</enum><header>Increased credit amount for qualified facilities and carbon capture equipment</header><paragraph id="H031353762D364CA9981626AEDBE0247E" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any qualified facility or any carbon capture equipment which satisfy the requirements of paragraph (2), the amount of the credit determined under subsection (a) shall be equal to such amount (determined without regard to this sentence) multiplied by 5.</text></paragraph><paragraph id="H7DA27EE792AA41C387FACB28CD29AD58" commented="no"><enum>(2)</enum><header>Requirements</header><text display-inline="yes-display-inline">The requirements described in this paragraph are that—</text><subparagraph id="HBF6BFCE99ED145E2880FE2BEE3FF99A1"><enum>(A)</enum><text display-inline="yes-display-inline">with respect to any qualified facility the construction of which begins on or after the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (3)(A) and (4), as well as any carbon capture equipment placed in service at such facility—</text><clause id="HF0CEF8E0AE914BA080EBF4E0FD627E51"><enum>(i)</enum><text display-inline="yes-display-inline">subject to subparagraph (B) of paragraph (3), the taxpayer satisfies the requirements under subparagraph (A) of such paragraph with respect to such facility and equipment, and</text></clause><clause id="H808D5125361E42D3BF426F19C5189222"><enum>(ii)</enum><text display-inline="yes-display-inline">the taxpayer satisfies the requirements under paragraph (4) with respect to the construction of such facility and equipment, </text></clause></subparagraph><subparagraph id="H0B83FA012BC84483AE5A5AE3DE7B9AEB"><enum>(B)</enum><text display-inline="yes-display-inline">with respect to any carbon capture equipment the construction of which begins on or after the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (3)(A) and (4), and which is installed at a qualified facility the construction of which began prior to such date—</text><clause id="idC0CB78A048BF4C2B999BE14629ED6310"><enum>(i)</enum><text display-inline="yes-display-inline">subject to subparagraph (B) of paragraph (3), the taxpayer satisfies the requirements under subparagraph (A) of such paragraph with respect to such equipment, and</text></clause><clause id="idCF9B0B007AE1489AABD3AD467446D6B6"><enum>(ii)</enum><text display-inline="yes-display-inline">the taxpayer satisfies the requirements under paragraph (4) with respect to the construction of such equipment, or</text></clause></subparagraph><subparagraph id="H30DAB71CF5EF4A7F905AA50BBD2514EF"><enum>(C)</enum><text display-inline="yes-display-inline">the construction of carbon capture equipment begins prior to the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (3)(A) and (4), and such equipment is installed at a qualified facility the construction of which begins prior to such date.</text></subparagraph></paragraph><paragraph id="H19AA9629CB7A4352AD6E843513649619" commented="no"><enum>(3)</enum><header>Prevailing wage requirements</header><subparagraph id="HAC001A5E83BD4A399D13367FDA831203" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The requirements described in this subparagraph with respect to any qualified facility and any carbon capture equipment placed in service at such facility are that the taxpayer shall ensure that any laborers and mechanics employed by the taxpayer or any contractor or subcontractor in—</text><clause commented="no" id="id3383EB3F485D4F3D9E95E7E96A761C2B"><enum>(i)</enum><text>the construction of such facility or equipment, and</text></clause><clause commented="no" id="id0D77251D5461452593294759DF776CFF"><enum>(ii)</enum><text>with respect to any taxable year, for any portion of such taxable year which is within the period described in paragraph (3)(A) or (4)(A) of subsection (a), the alteration or repair of such facility or such equipment,</text></clause><continuation-text continuation-text-level="subparagraph" commented="no">shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality in which such facility and equipment are located as most recently determined by the Secretary of Labor, in accordance with subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code. For purposes of determining an increased credit amount under paragraph (1) for a taxable year, the requirement under clause (ii) of this subparagraph is applied to such taxable year in which the alteration or repair of qualified facility occurs. </continuation-text></subparagraph><subparagraph id="H9502FF92098245F59A9CAE8BB918FEE8" commented="no"><enum>(B)</enum><header>Correction and penalty related to failure to satisfy wage requirements</header><text display-inline="yes-display-inline">Rules similar to the rules of section 45(b)(7)(B) shall apply.</text></subparagraph></paragraph><paragraph id="H73DE23BBC736409DAB965CC1394BEBD3" commented="no"><enum>(4)</enum><header>Apprenticeship requirements</header><text display-inline="yes-display-inline">Rules similar to the rules of section 45(b)(8) shall apply. </text></paragraph><paragraph id="H1AAC7410BD474372BB8A33B1A888F7E3" commented="no"><enum>(5)</enum><header>Regulations and guidance</header><text display-inline="yes-display-inline">The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of administering the requirements of this subsection.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H6DEED7B5EB3D45AD9CB07264D30645FB" commented="no"><enum>(e)</enum><header>Credit reduced for tax-exempt bonds</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45Q">Section 45Q(f)</external-xref> is amended—</text><paragraph commented="no" id="id5CD8E640C9E74D23B675E600B301E3FE"><enum>(1)</enum><text>by striking the second paragraph (3), as added at the end of such section by section 80402(e) of the Infrastructure Investment and Jobs Act (<external-xref legal-doc="public-law" parsable-cite="pl/117/58">Public Law 117–58</external-xref>), and</text></paragraph><paragraph commented="no" id="id5813F29591804DE495FA14774817EBDE"><enum>(2)</enum><text>by adding at the end the following new paragraph: </text><quoted-block style="OLC" display-inline="no-display-inline" id="HC74BE6C6177C43E4989990C98A1AC4CD" changed="added" reported-display-style="italic"><paragraph id="HA9A04270152F4124BAA7531DDF80205A" commented="no"><enum>(8)</enum><header>Credit reduced for tax-exempt bonds</header><text display-inline="yes-display-inline">Rules similar to the rule under section 45(b)(3) shall apply for purposes of this section.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H013B8533BAD64DFEBC84990AD99B9781"><enum>(f)</enum><header>Application of section for certain carbon capture equipment</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/45Q">Section 45Q(g)</external-xref> is amended by inserting <quote>the earlier of January 1, 2023, and</quote> before <quote>the end of the calendar year</quote>. </text></subsection><subsection id="H120801E37F034ADE998BA23CCAF0AAA4"><enum>(g)</enum><header>Election</header><text>Section 45Q(f), as amended by subsection (e), is amended by adding at the end the following new paragraph: </text><quoted-block style="OLC" id="H0F64919AB5F74EEEB88E03A91EC48BC4" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="H4CE3F9664240452BA26EA5937BAF7A97"><enum>(9)</enum><header>Election</header><text display-inline="yes-display-inline">For purposes of paragraphs (3) and (4) of subsection (a), a person described in paragraph (3)(A)(ii) may elect, at such time and in such manner as the Secretary may prescribe, to have the 12–year period begin on the first day of the first taxable year in which a credit under this section is claimed with respect to carbon capture equipment which is originally placed in service at a qualified facility on or after the date of the enactment of the Bipartisan Budget Act of 2018 (after application of paragraph (6), where applicable) if—</text><subparagraph id="H6F3185277CC64CE7A085DC48848A3163"><enum>(A)</enum><text display-inline="yes-display-inline">no taxpayer claimed a credit under this section with respect to such carbon capture equipment for any prior taxable year,</text></subparagraph><subparagraph id="H2A167C4A635F4B71AEC63767873815B4"><enum>(B)</enum><text>the qualified facility at which such carbon capture equipment is placed in service is located in an area affected by a federally-declared disaster (as defined by section 165(i)(5)(A)) after the carbon capture equipment is originally placed in service, and</text></subparagraph><subparagraph id="H9265B632F5D94B898B90E8DFB2342F8B"><enum>(C)</enum><text>such federally-declared disaster results in a cessation of the operation of the qualified facility or the carbon capture equipment after such equipment is originally placed in service.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H17FDF5B9627942C4879D47D0EB34D916"><enum>(h)</enum><header>Regulations for baseline carbon oxide production</header><text>Subsection (i) of <external-xref legal-doc="usc" parsable-cite="usc/26/45Q">section 45Q</external-xref>, as redesignated by subsection (d), is amended—</text><paragraph id="id9549EBCB15014E15AD48CA5A8CFFE77A"><enum>(1)</enum><text>in paragraph (1), by striking <quote>and</quote>, </text></paragraph><paragraph id="id6F44FEACD0FA496BBDB657F13CB088D9"><enum>(2)</enum><text>in paragraph (2), by striking the period at the end and inserting <quote>, and</quote>, and</text></paragraph><paragraph id="idF1BF392A968F4846A9AAC3014DF3B549"><enum>(3)</enum><text>by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id834C8C03AA3A4F5E958BD977D4C18E92" changed="added" reported-display-style="italic"><paragraph id="id17AEA8B192154EA08F2835FBAEB260A6"><enum>(3)</enum><text>for purposes of subsection (d)(2)(B)(ii), adjust the baseline carbon oxide production with respect to any applicable electric generating unit at any electricity generating facility if, after the date on which the carbon capture equipment is placed in service, modifications which are chargeable to capital account are made to such unit which result in a significant increase or decrease in carbon oxide production.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="id9B86D403B3394943AC5923DECD9481DE"><enum>(i)</enum><header>Effective dates</header><paragraph id="HCF67ABDEBB7C4727A0126B3A1E155763"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraphs (2), (3), and (4), the amendments made by this section shall apply to facilities or equipment placed in service after December 31, 2022.</text></paragraph><paragraph id="HDD360DC2FE8D4F51931C454D3146FA86"><enum>(2)</enum><header>Modification of carbon oxide capture requirements</header><text>The amendments made by subsection (a) shall apply to facilities or equipment the construction of which begins after the date of enactment of this Act.</text></paragraph><paragraph id="id6F844F4E819C43FCA2E9CD66E9E0A441"><enum>(3)</enum><header>Application of section for certain carbon capture equipment</header><text>The amendments made by subsection (f) shall take effect on the date of enactment of this Act.</text></paragraph><paragraph id="idC0CE6EFC630D43E5B420E554EFA0A26D"><enum>(4)</enum><header>Election</header><text>The amendments made by subsection (g) shall apply to carbon oxide captured and disposed of after December 31, 2021. </text></paragraph></subsection></section><section id="H6DD854AFA1F7472AB36AD024AEC992DB"><enum>13105.</enum><header>Zero-emission nuclear power production credit</header><subsection id="H84776079FCA841F1A33A8AB824B8D3E7"><enum>(a)</enum><header>In general</header><text>Subpart D of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by adding at the end the following new section:</text><quoted-block display-inline="no-display-inline" id="H078E334CA7264466BA186769FD90287A" style="OLC" changed="added" reported-display-style="italic"><section id="H5CA2034B84B6429E964BB4A7A0FBA287"><enum>45U.</enum><header>Zero-emission nuclear power production credit</header><subsection id="HDFE614048B89473195A4255EF145C5DE"><enum>(a)</enum><header>Amount of credit</header><text>For purposes of section 38, the zero-emission nuclear power production credit for any taxable year is an amount equal to the amount by which—</text><paragraph id="HAC0F73CC4F544251864EC96535C4FDEE"><enum>(1)</enum><text>the product of—</text><subparagraph id="H1E70BF45FD7945E990DC441919028399"><enum>(A)</enum><text>0.3 cents, multiplied by</text></subparagraph><subparagraph id="H64D08AE9239345349623A1BBFD22ED52"><enum>(B)</enum><text>the kilowatt hours of electricity—</text><clause id="HDEA4E5035EAC44789165E7FDA653095C"><enum>(i)</enum><text>produced by the taxpayer at a qualified nuclear power facility, and</text></clause><clause id="H79376EC9694E49F789E0B2A35A5037B2"><enum>(ii)</enum><text>sold by the taxpayer to an unrelated person during the taxable year, exceeds</text></clause></subparagraph></paragraph><paragraph id="H94D5EF537B414C7C88FAD967D8CF7B56"><enum>(2)</enum><text>the reduction amount for such taxable year.</text></paragraph></subsection><subsection id="HC6D3E4A7B1BA49C4B8914E9AB794C05C"><enum>(b)</enum><header>Definitions</header><paragraph id="H1AB2B1EA2A3248B9907D17E74A9935C4"><enum>(1)</enum><header>Qualified nuclear power facility</header><text>For purposes of this section, the term <term>qualified nuclear power facility</term> means any nuclear facility—</text><subparagraph id="HD377C51AE758498AB0AFB084C9B23AEB"><enum>(A)</enum><text>which is owned by the taxpayer and which uses nuclear energy to produce electricity, </text></subparagraph><subparagraph id="H5675D8756755446EB33A926213430FFC"><enum>(B)</enum><text display-inline="yes-display-inline"> which is not an advanced nuclear power facility as defined in subsection (d)(1) of section 45J, and</text></subparagraph><subparagraph id="H2BB5A663EA6A426CB4A4A7470C82CEE6"><enum>(C)</enum><text>which is placed in service before the date of the enactment of this section. </text></subparagraph></paragraph><paragraph id="H3A2CB7CC22C541568EB8BB2C969FB918"><enum>(2)</enum><header>Reduction amount</header><subparagraph id="HF927B3EEBF6B4AC5A50EEB3726425512"><enum>(A)</enum><header>In general</header><text>For purposes of this section, the term <term>reduction amount</term> means, with respect to any qualified nuclear power facility for any taxable year, the amount equal to the lesser of—</text><clause id="H7DBD379AC21F406D875818D2569D9D12"><enum>(i)</enum><text>the amount determined under subsection (a)(1), or</text></clause><clause id="HEEB00EA416A64FC28CDC00A9725DC5C0"><enum>(ii)</enum><text>the amount equal to 16 percent of the excess of—</text><subclause id="H000029AF96C6437CB6673B722734B338"><enum>(I)</enum><text display-inline="yes-display-inline">subject to subparagraph (B), the gross receipts from any electricity produced by such facility (including any electricity services or products provided in conjunction with the electricity produced by such facility) and sold to an unrelated person during such taxable year, over</text></subclause><subclause id="HB3B29E74F4B9415E9295EB18B82BECA4"><enum>(II)</enum><text>the amount equal to the product of—</text><item id="H9B96089D39114B6BA11ABF2490A3FD49"><enum>(aa)</enum><text display-inline="yes-display-inline">2.5 cents, multiplied by</text></item><item id="H6110B82DE0214D0AA82A1EBC1052F61C"><enum>(bb)</enum><text>the amount determined under subsection (a)(1)(B).</text></item></subclause></clause></subparagraph><subparagraph id="HBC6F4E1A730E42D687BB13257185534B"><enum>(B)</enum><header>Treatment of certain receipts</header><clause id="H458A761D34C04BCE8FF0365922A8ABDB"><enum>(i)</enum><header>In general</header><text>Subject to clause (iii), the amount determined under subparagraph (A)(ii)(I) shall include any amount received by the taxpayer during the taxable year with respect to the qualified nuclear power facility from a zero-emission credit program. For purposes of determining the amount received during such taxable year, the taxpayer shall take into account any reductions required under such program.</text></clause><clause id="HC380D121646641039585430E5A943CDE"><enum>(ii)</enum><header>Zero-emission credit program</header><text display-inline="yes-display-inline">For purposes of this subparagraph, the term <term>zero-emission credit program</term> means any payments with respect to a qualified nuclear power facility as a result of any Federal, State or local government program for, in whole or in part, the zero-emission, zero-carbon, or air quality attributes of any portion of the electricity produced by such facility.</text></clause><clause id="idC118BFE4DB9B47A3947E2263F30339FC"><enum>(iii)</enum><header>Exclusion</header><text>For purposes of clause (i), any amount received by the taxpayer from a zero-emission credit program shall be excluded from the amount determined under subparagraph (A)(ii)(I) if the full amount of the credit calculated pursuant to subsection (a) (determined without regard to this subparagraph) is used to reduce payments from such zero-emission credit program.</text></clause></subparagraph></paragraph><paragraph id="H9E713B758D5B482BAB157EBEDF2CB2A5"><enum>(3)</enum><header>Electricity</header><text>For purposes of this section, the term <term>electricity</term> means the energy produced by a qualified nuclear power facility from the conversion of nuclear fuel into electric power.</text></paragraph></subsection><subsection display-inline="no-display-inline" commented="no" id="H678E5A938099402F89FA48072E07DB65"><enum>(c)</enum><header>Other rules</header><paragraph display-inline="no-display-inline" commented="no" id="HBF0A61D97EC14C9BA0F2C0F96D295A64"><enum>(1)</enum><header>Inflation adjustment</header><text display-inline="yes-display-inline">The 0.3 cent amount in subsection (a)(1)(A) and the 2.5 cent amount in subsection (b)(2)(A)(ii)(II)(aa) shall each be adjusted by multiplying such amount by the inflation adjustment factor (as determined under section 45(e)(2), as applied by substituting <quote>calendar year 2023</quote> for <quote>calendar year 1992</quote> in subparagraph (B) thereof) for the calendar year in which the sale occurs. If the 0.3 cent amount as increased under this paragraph is not a multiple of 0.05 cent, such amount shall be rounded to the nearest multiple of 0.05 cent. If the 2.5 cent amount as increased under this paragraph is not a multiple of 0.1 cent, such amount shall be rounded to the nearest multiple of 0.1 cent.</text></paragraph><paragraph display-inline="no-display-inline" commented="no" id="H1E00BE160A554BC4956350D205BB81EC"><enum>(2)</enum><header>Special rules</header><text>Rules similar to the rules of paragraphs (1), (3), (4), and (5) of section 45(e) shall apply for purposes of this section.</text></paragraph></subsection><subsection id="HD3DFC1B0953A47CFAFAAE06253B0D254"><enum>(d)</enum><header>Wage requirements</header><paragraph id="HB836CE91EB064EC8A139D9C4F2E491A4"><enum>(1)</enum><header>Increased credit amount for qualified nuclear power facilities</header><text>In the case of any qualified nuclear power facility which satisfies the requirements of paragraph (2)(A), the amount of the credit determined under subsection (a) shall be equal to such amount (as determined without regard to this sentence) multiplied by 5.</text></paragraph><paragraph id="HD35BD17FD12C480DBAAED55AB3B0FDA9"><enum>(2)</enum><header>Prevailing wage requirements</header><subparagraph id="H263058E7BE1E46CAA1A4531D36EF72C0"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The requirements described in this subparagraph with respect to any qualified nuclear power facility are that the taxpayer shall ensure that any laborers and mechanics employed by the taxpayer or any contractor or subcontractor in the alteration or repair of such facility shall be paid wages at rates not less than the prevailing rates for alteration or repair of a similar character in the locality in which such facility is located as most recently determined by the Secretary of Labor, in accordance with subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code.</text></subparagraph><subparagraph id="H48BAC4E37DD1476F970805E3822C5A4F"><enum>(B)</enum><header>Correction and penalty related to failure to satisfy wage requirements</header><text display-inline="yes-display-inline">Rules similar to the rules of section 45(b)(7)(B) shall apply. </text></subparagraph></paragraph><paragraph id="H18BE86F24E064F769CF89C17B3589810"><enum>(3)</enum><header>Regulations and guidance</header><text display-inline="yes-display-inline">The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of administering the requirements of this subsection.</text></paragraph></subsection><subsection display-inline="no-display-inline" commented="no" id="H6C80193B8AA9451F887506BE816473C5"><enum>(e)</enum><header>Termination</header><text>This section shall not apply to taxable years beginning after December 31, 2032.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HB37624AFFDD848B997ECE80CB7DDC19D"><enum>(b)</enum><header>Conforming amendments</header><paragraph id="H291EE0EF37E14745B2AC858BE7DAA7DB"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/38">Section 38(b)</external-xref> is amended—</text><subparagraph id="HDA892A5A599A41A3B269B3098A5C565D"><enum>(A)</enum><text>in paragraph (32), by striking <quote>plus</quote> at the end,</text></subparagraph><subparagraph id="HB93AC117E5984C1C874BF2D7A07E1D2F"><enum>(B)</enum><text>in paragraph (33), by striking the period at the end and inserting <quote>, plus</quote>, and</text></subparagraph><subparagraph id="H18F42F17308E4238B106C5A6F2A6673C"><enum>(C)</enum><text>by adding at the end the following new paragraph:</text><quoted-block display-inline="no-display-inline" id="H36089CD5F092498BBB80EB9A72685B7F" style="OLC" changed="added" reported-display-style="italic"><paragraph id="HE1A3A8499DA1408D975770EF70D08DB1"><enum>(34)</enum><text>the zero-emission nuclear power production credit determined under section 45U(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="HF42384BFB6B144DF86D9D6A02829C502"><enum>(2)</enum><text>The table of sections for subpart D of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by adding at the end the following new item:</text><quoted-block display-inline="no-display-inline" id="H369A242675074589B4159196A96621C5" style="OLC" changed="added" reported-display-style="italic"><toc changed="added" reported-display-style="italic"><toc-entry bold="off" level="section">Sec. 45U. Zero-emission nuclear power production credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="HA2F23CDE7EC14379A2C83B9FF88962FA"><enum>(c)</enum><header>Effective date</header><text>This section shall apply to electricity produced and sold after December 31, 2023, in taxable years beginning after such date.</text></subsection></section></part><part id="HAD79E1CFD7554C0583445E4A5FFE75A0"><enum>2<?LEXA-Enum 2?></enum><header>Clean Fuels</header><section commented="no" display-inline="no-display-inline" id="H3C64BCA2A3D947ACAB5240684FA069F9"><enum>13201.</enum><header>Extension of incentives for biodiesel, renewable diesel and alternative fuels</header><subsection id="HDC7908F622FB40CCBB68CE7F646AE7D5"><enum>(a)</enum><header>Biodiesel and renewable diesel credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/40A">Section 40A(g)</external-xref> is amended by striking <quote>December 31, 2022</quote> and inserting <quote>December 31, 2024</quote>. </text></subsection><subsection id="HF2ACEE7A97754914A3A35101A9BFF50E" commented="no"><enum>(b)</enum><header>Biodiesel mixture credit</header><paragraph id="H3401FC78E96E4270B93CAFC1B004E089" commented="no"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6426">Section 6426(c)(6)</external-xref> is amended by striking <quote>December 31, 2022</quote> and inserting <quote>December 31, 2024</quote>.</text></paragraph><paragraph id="HFF8C2676F2C949EDA69B2FBF53BDC75C" commented="no"><enum>(2)</enum><header>Fuels not used for taxable purposes</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/6427">Section 6427(e)(6)(B)</external-xref> is amended by striking <quote>December 31, 2022</quote> and inserting <quote>December 31, 2024</quote>.</text></paragraph></subsection><subsection id="HDF87482EA95F4FC29059D14FDE3EB001"><enum>(c)</enum><header>Alternative fuel credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6426">Section 6426(d)(5)</external-xref> is amended by striking <quote>December 31, 2021</quote> and inserting <quote>December 31, 2024</quote>. </text></subsection><subsection id="HB494A70477AF4A44ACC6CA3E2F3EAE5A"><enum>(d)</enum><header>Alternative fuel mixture credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6426">Section 6426(e)(3)</external-xref> is amended by striking <quote>December 31, 2021</quote> and inserting <quote>December 31, 2024</quote>.</text></subsection><subsection id="HCB6DAEBA5CD24F2B955F2BA20B5BD936" commented="no" display-inline="no-display-inline"><enum>(e)</enum><header>Payments for alternative fuels</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6427">Section 6427(e)(6)(C)</external-xref> is amended by striking <quote>December 31, 2021</quote> and inserting <quote>December 31, 2024</quote>.</text></subsection><subsection id="H0575C46C2EFB4893A6E41051BD21B028" commented="no" display-inline="no-display-inline"><enum>(f)</enum><header display-inline="yes-display-inline">Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to fuel sold or used after December 31, 2021.</text></subsection><subsection display-inline="no-display-inline" commented="no" id="idCC89CFF19B57412488E3B5E98DC356B0"><enum>(g)</enum><header>Special rule</header><text>In the case of any alternative fuel credit properly determined under <external-xref legal-doc="usc" parsable-cite="usc/26/6426">section 6426(d)</external-xref> of the Internal Revenue Code of 1986 for the period beginning on January 1, 2022, and ending with the close of the last calendar quarter beginning before the date of the enactment of this Act, such credit shall be allowed, and any refund or payment attributable to such credit (including any payment under section 6427(e) of such Code) shall be made, only in such manner as the Secretary of the Treasury (or the Secretary’s delegate) shall provide. Such Secretary shall issue guidance within 30 days after the date of the enactment of this Act providing for a one-time submission of claims covering periods described in the preceding sentence. Such guidance shall provide for a 180-day period for the submission of such claims (in such manner as prescribed by such Secretary) to begin not later than 30 days after such guidance is issued. Such claims shall be paid by such Secretary not later than 60 days after receipt. If such Secretary has not paid pursuant to a claim filed under this subsection within 60 days after the date of the filing of such claim, the claim shall be paid with interest from such date determined by using the overpayment rate and method under section 6621 of such Code.</text></subsection></section><section id="H9347DABCE2F24F66B5067BD8C28DCA7F"><enum>13202.</enum><header>Extension of second generation biofuel incentives</header><subsection id="HAE6F212628C04F88B51F5C170A3148D5"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/40">Section 40(b)(6)(J)(i)</external-xref> is amended by striking <quote>2022</quote> and inserting <quote>2025</quote>. </text></subsection><subsection id="H7084DBC01E3343139E670E7D94DE6BCB"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by subsection (a) shall apply to qualified second generation biofuel production after December 31, 2021.</text></subsection></section><section id="H0BAF88CAADB143EA8F61E6197189530C" commented="no"><enum>13203.</enum><header>Sustainable aviation fuel credit</header><subsection id="H9F22BF8C6D514D4D882C9753901B143C" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subpart D of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after section 40A the following new section: </text><quoted-block style="OLC" id="H7B9A69BA3FCA42DD9DFCAFAB34E2DBBD" display-inline="no-display-inline" changed="added" reported-display-style="italic"><section id="H51B6C871194B460DA73229AFDDCE7CE4" commented="no"><enum>40B.</enum><header>Sustainable aviation fuel credit</header><subsection id="HDDE58D2DC947485BAF6FFEEF17322CE4" commented="no"><enum>(a)</enum><header>In general</header><text>For purposes of section 38, the sustainable aviation fuel credit determined under this section for the taxable year is, with respect to any sale or use of a qualified mixture which occurs during such taxable year, an amount equal to the product of—</text><paragraph id="HD4E3BFA7F38F477BA902028A48E68A59" commented="no"><enum>(1)</enum><text>the number of gallons of sustainable aviation fuel in such mixture, multiplied by</text></paragraph><paragraph id="HA6723B1DF78743ACA97F2E4674CF0B2E" commented="no"><enum>(2)</enum><text>the sum of—</text><subparagraph id="H7938A7F182B54339BD1261F44CCE939A" commented="no"><enum>(A)</enum><text>$1.25, plus</text></subparagraph><subparagraph id="H6B7EFCB92FE54C8AADF6361E771379CC" commented="no"><enum>(B)</enum><text>the applicable supplementary amount with respect to such sustainable aviation fuel.</text></subparagraph></paragraph></subsection><subsection id="HCA88C46CDC4E463191180049474003F8" commented="no"><enum>(b)</enum><header>Applicable supplementary amount</header><text display-inline="yes-display-inline">For purposes of this section, the term <quote>applicable supplementary amount</quote> means, with respect to any sustainable aviation fuel, an amount equal to $0.01 for each percentage point by which the lifecycle greenhouse gas emissions reduction percentage with respect to such fuel exceeds 50 percent. In no event shall the applicable supplementary amount determined under this subsection exceed $0.50.</text></subsection><subsection id="HB032098EA1444B77B0979CE830636DB9" commented="no"><enum>(c)</enum><header>Qualified mixture</header><text display-inline="yes-display-inline">For purposes of this section, the term <quote>qualified mixture</quote> means a mixture of sustainable aviation fuel and kerosene if—</text><paragraph id="H26762431589844CABE3BBF401197019B" commented="no"><enum>(1)</enum><text>such mixture is produced by the taxpayer in the United States, </text></paragraph><paragraph id="HE25F33AC64114A8D9DAE074D5724AEB4" commented="no"><enum>(2)</enum><text>such mixture is used by the taxpayer (or sold by the taxpayer for use) in an aircraft,</text></paragraph><paragraph id="H6BFA8E471EC642E1AB592C7A0E2F47F4" commented="no"><enum>(3)</enum><text>such sale or use is in the ordinary course of a trade or business of the taxpayer, and</text></paragraph><paragraph id="H93E74CCD72A94A5DBE3E73872BF70610" commented="no"><enum>(4)</enum><text>the transfer of such mixture to the fuel tank of such aircraft occurs in the United States. </text></paragraph></subsection><subsection id="H377D60BAEE204482AEA17001F1BAA790" commented="no"><enum>(d)</enum><header>Sustainable aviation fuel</header><paragraph commented="no" id="id7BC47B317FA6461188A38B1E8CD07048"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this section, the term <quote>sustainable aviation fuel</quote> means liquid fuel, the portion of which is not kerosene, which—</text><subparagraph id="H538AA4EACA44453EB3096907EDB0AD90" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">meets the requirements of—</text><clause id="HF31F8DEA77A9411FBDC2C5F852EE24BF" commented="no"><enum>(i)</enum><text>ASTM International Standard D7566, or</text></clause><clause id="H9BFF2D0D385A4CF292D51A39E67870DB" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">the Fischer Tropsch provisions of ASTM International Standard D1655, Annex A1,</text></clause></subparagraph><subparagraph id="H6152765C4A7B4ECDB26FBDBD64C69839" commented="no"><enum>(B)</enum><text>is not derived from coprocessing an applicable material (or materials derived from an applicable material) with a feedstock which is not biomass,</text></subparagraph><subparagraph commented="no" id="idC1CA2143FAA64B0284F175FA8914B217"><enum>(C)</enum><text>is not derived from palm fatty acid distillates or petroleum, and</text></subparagraph><subparagraph id="H6F4A200E8BB44FDD839417EA35981F68" commented="no"><enum>(D)</enum><text>has been certified in accordance with subsection (e) as having a lifecycle greenhouse gas emissions reduction percentage of at least 50 percent.</text></subparagraph></paragraph><paragraph commented="no" id="id434C68F11A2247D09BF9161FDCDFC6BF"><enum>(2)</enum><header>Definitions</header><text>In this subsection—</text><subparagraph commented="no" id="idB7CB3CCEF74249B0B9C6FD0793794132"><enum>(A)</enum><header>Applicable material</header><text>The term <term>applicable material</term> means—</text><clause commented="no" id="idAD23C5E36B274F4DA3A317A9E5ABD616"><enum>(i)</enum><text>monoglycerides, diglycerides, and triglycerides,</text></clause><clause commented="no" id="idE0AE8B2FFE0E41ADB16AE59C7588EF6D"><enum>(ii)</enum><text>free fatty acids, and</text></clause><clause commented="no" id="idEC8ACC0D9C5547A7BF8C6289E1A2746C"><enum>(iii)</enum><text>fatty acid esters.</text></clause></subparagraph><subparagraph commented="no" id="idA03778C8613045BD8EC7FE99DBA6AF12"><enum>(B)</enum><header>Biomass</header><text>The term <term>biomass</term> has the same meaning given such term in section 45K(c)(3).</text></subparagraph></paragraph></subsection><subsection id="H2169D58BF28B4ED6B1CF848F23401FA0" commented="no"><enum>(e)</enum><header>Lifecycle greenhouse gas emissions reduction percentage</header><text display-inline="yes-display-inline">For purposes of this section, the term <quote>lifecycle greenhouse gas emissions reduction percentage</quote> means, with respect to any sustainable aviation fuel, the percentage reduction in lifecycle greenhouse gas emissions achieved by such fuel as compared with petroleum-based jet fuel, as defined in accordance with—</text><paragraph id="HE54DF806E6FE4F07B9AC3777083ED854"><enum>(1)</enum><text>the most recent Carbon Offsetting and Reduction Scheme for International Aviation which has been adopted by the International Civil Aviation Organization with the agreement of the United States, or</text></paragraph><paragraph id="H0EEC9841A28E4DE58C51127EE09F05E7"><enum>(2)</enum><text>any similar methodology which satisfies the criteria under section 211(o)(1)(H) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(1)(H)</external-xref>), as in effect on the date of enactment of this section.</text></paragraph></subsection><subsection id="HBA82087662184BC989C507EA77751CA2" commented="no"><enum>(f)</enum><header>Registration of sustainable aviation fuel producers</header><text display-inline="yes-display-inline">No credit shall be allowed under this section with respect to any sustainable aviation fuel unless the producer or importer of such fuel—</text><paragraph commented="no" id="id59D4E9245F2D4E63B7046CDE713989B2"><enum>(1)</enum><text display-inline="yes-display-inline">is registered with the Secretary under section 4101, and </text></paragraph><paragraph commented="no" id="idA747B93D0B4949CD9F40A32B5010B873"><enum>(2)</enum><text display-inline="yes-display-inline">provides—</text><subparagraph commented="no" id="id540342D61B854CADB5DF072B61788AC3"><enum>(A)</enum><text display-inline="yes-display-inline">certification (in such form and manner as the Secretary shall prescribe) from an unrelated party demonstrating compliance with—</text><clause commented="no" id="id7F8787C385274AF4AE82FFDB5B92EAAB"><enum>(i)</enum><text display-inline="yes-display-inline">any general requirements, supply chain traceability requirements, and information transmission requirements established under the Carbon Offsetting and Reduction Scheme for International Aviation described in paragraph (1) of subsection (e), or</text></clause><clause commented="no" id="idCB8993460DD84F859F2ACBE13FF991C1"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of any methodology established under paragraph (2) of such subsection, requirements similar to the requirements described in clause (i), and</text></clause></subparagraph><subparagraph commented="no" id="id06A55F1798DE414BB26DE34BF7927EEB"><enum>(B)</enum><text display-inline="yes-display-inline">such other information with respect to such fuel as the Secretary may require for purposes of carrying out this section.</text></subparagraph></paragraph></subsection><subsection id="H879F77DC0061443ABEB08FF0F4A577A0" commented="no"><enum>(g)</enum><header>Coordination with credit against excise tax</header><text display-inline="yes-display-inline">The amount of the credit determined under this section with respect to any sustainable aviation fuel shall, under rules prescribed by the Secretary, be properly reduced to take into account any benefit provided with respect to such sustainable aviation fuel solely by reason of the application of section 6426 or 6427(e).</text></subsection><subsection id="H85656C67813D46A4BBF383DF7377C348" commented="no"><enum>(h)</enum><header>Termination</header><text>This section shall not apply to any sale or use after December 31, 2024.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HCB27D3D52C3644FA86B7B97FD40837DC" commented="no"><enum>(b)</enum><header>Credit made part of general business credit</header><text display-inline="yes-display-inline"> Section 38(b), as amended by the preceding provisions of this Act, is amended by striking <quote>plus</quote> at the end of paragraph (33), by striking the period at the end of paragraph (34) and inserting <quote>, plus</quote>, and by inserting after paragraph (34) the following new paragraph:</text><quoted-block style="OLC" id="H8C13EBBB96454EB5B4C09DDFEA208ED5" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="H80D259A4DDFE4FB88D8D2E703BBE69B2" commented="no"><enum>(35)</enum><text display-inline="yes-display-inline">the sustainable aviation fuel credit determined under section 40B.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H0FDB48847BF94642ADB44731B2981AAA" commented="no"><enum>(c)</enum><header>Coordination with biodiesel incentives</header><paragraph id="H7ACFA9E8507A4B9BBBA0DD3A6D32D069" commented="no"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/40A">Section 40A(d)(1)</external-xref> is amended by inserting <quote>or 40B</quote> after <quote>determined under section 40</quote>. </text></paragraph><paragraph id="H3D974738E924488A955757396EC9455B" commented="no"><enum>(2)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/40A">Section 40A(f)</external-xref> is amended by striking paragraph (4).</text></paragraph></subsection><subsection id="H15FD654590F34B90B49462C4D0900DAF" commented="no"><enum>(d)</enum><header>Sustainable aviation fuel added to credit for alcohol fuel, biodiesel, and alternative fuel mixtures</header><paragraph id="H17A2F90B8966471BA735762CC8963754" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/6426">Section 6426</external-xref> is amended by adding at the end the following new subsection: </text><quoted-block style="OLC" id="H3EBE0C3BEA5A45F1806FE6F355B3C622" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subsection id="H74ECF84C608D49E989F69ACEBFFB104B" commented="no"><enum>(k)</enum><header>Sustainable aviation fuel credit</header><paragraph id="H40475D4E4F4D4E4F95066DFDA07F9ACD" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this section, the sustainable aviation fuel credit for the taxable year is, with respect to any sale or use of a qualified mixture, an amount equal to the product of—</text><subparagraph id="H14353F02C14D44F5B1E2DBE18B5CB64E" commented="no"><enum>(A)</enum><text>the number of gallons of sustainable aviation fuel in such mixture, multiplied by</text></subparagraph><subparagraph id="H1C9F6925A99B47AFA8C440088DD0258B" commented="no"><enum>(B)</enum><text>the sum of—</text><clause id="HC7F65F36F5C94E81A1DC58A15B7BDAF0" commented="no"><enum>(i)</enum><text>$1.25, plus</text></clause><clause id="HDDF594CEB8E84259A8707E3DD5AD5AE6" commented="no"><enum>(ii)</enum><text>the applicable supplementary amount with respect to such sustainable aviation fuel. </text></clause></subparagraph></paragraph><paragraph id="H8F824F09993948F8BC5E80EC49C8A762" commented="no"><enum>(2)</enum><header>Definitions</header><text display-inline="yes-display-inline">Any term used in this subsection which is also used in section 40B shall have the meaning given such term by section 40B.</text></paragraph><paragraph id="HC58CD23D1B5F4C5BA9EBE7D3FA264717" commented="no"><enum>(3)</enum><header>Registration requirement</header><text>For purposes of this subsection, rules similar to the rules of section 40B(f) shall apply.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H7D74AA1741FA417FBC2E6B243A21ACC0" commented="no"><enum>(2)</enum><header>Conforming amendments</header><subparagraph id="H8B3527480E184C03BD5D209418E0B1B7" commented="no"><enum>(A)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/6426">Section 6426</external-xref> is amended—</text><clause id="H9707B389DA094B5B80247F5F98A4A051" commented="no"><enum>(i)</enum><text>in subsection (a)(1), by striking <quote>and (e)</quote> and inserting <quote>(e), and (k)</quote>, and </text></clause><clause id="HB543B7742A2B416FA51F27C3AB2A782B" commented="no"><enum>(ii)</enum><text>in subsection (h), by striking <quote>under section 40 or 40A</quote> and inserting <quote>under section 40, 40A, or 40B</quote>.</text></clause></subparagraph><subparagraph id="H7B0C3BF277774CEE97B18137B2FDB75E"><enum>(B)</enum><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/6427">Section 6427(e)</external-xref> is amended—</text><clause id="idA2CD8672DFF44064A3D9531716FEF778"><enum>(i)</enum><text display-inline="yes-display-inline">in the heading, by striking <quote><header-in-text level="subsection" style="OLC">or alternative fuel</header-in-text></quote> and inserting, <quote><header-in-text level="subsection" style="OLC">alternative fuel, or sustainable aviation fuel</header-in-text></quote>,</text></clause><clause id="HA30BA552E4794BAE898A28F39D059206"><enum>(ii)</enum><text>in paragraph (1), by inserting <quote>or the sustainable aviation fuel mixture credit</quote> after <quote>alternative fuel mixture credit</quote>, and</text></clause><clause id="id18DF64E4AB5642F499A1D8E154D09A35"><enum>(iii)</enum><text>in paragraph (6)—</text><subclause id="idD722DE7398B241BDB295F644D7BB6939"><enum>(I)</enum><text>in subparagraph (C), by striking <quote>and</quote> at the end, </text></subclause><subclause id="id4599C7250DEC43CC9A4C2EF101674EED"><enum>(II)</enum><text>in subparagraph (D), by striking the period at the end and inserting <quote>, and</quote>, and </text></subclause><subclause id="id54BB35C6C7F94DAA8BCBED2B9475BE43"><enum>(III)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idBF173EF9CCBB40DD85FC88C427AC0663" changed="added" reported-display-style="italic"><subparagraph id="idF2EC525743454FB3AFDABD4876EA2B54"><enum>(E)</enum><text>any qualified mixture of sustainable aviation fuel (as defined in section 6426(k)(3)) sold or used after December 31, 2024.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subclause></clause></subparagraph><subparagraph id="H4DFA4408019E48F699B8762F2719E67F"><enum>(C)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/4101">Section 4101(a)(1)</external-xref> is amended by inserting <quote>every person producing or importing sustainable aviation fuel (as defined in section 40B),</quote> before <quote>and every person producing second generation biofuel</quote>.</text></subparagraph><subparagraph id="id2E42FC3B5B6548B88C4CB3489C3FE93D"><enum>(D)</enum><text>The table of sections for subpart D of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after the item relating to section 40A the following new item:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id378B8E49F3594E37B37152DCE695FFA1" changed="added" reported-display-style="italic"><toc changed="added" reported-display-style="italic"><toc-entry level="section" bold="off">Sec. 40B. Sustainable aviation fuel credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="HB434A2338B594D61825EE304C66AD429"><enum>(e)</enum><header>Amount of credit included in gross income</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/87">Section 87</external-xref> is amended by striking <quote>and</quote> in paragraph (1), by striking the period at the end of paragraph (2) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph: </text><quoted-block style="OLC" id="HFCA7F17993B645E7B70B89B450E64D07" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="H42703D9BEDB84E92AF5A61708517FC27"><enum>(3)</enum><text display-inline="yes-display-inline">the sustainable aviation fuel credit determined with respect to the taxpayer for the taxable year under section 40B(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H7492B76499154BE1AC6DBA75D6178F03" commented="no"><enum>(f)</enum><header>Effective date</header><text>The amendments made by this section shall apply to fuel sold or used after December 31, 2022. </text></subsection></section><section id="H41F1160B2DFA4CF0873E1EAB6CDA2D86"><enum>13204.</enum><header>Clean hydrogen</header><subsection id="H2C430F5F10F441E086713C49B70EF9A1"><enum>(a)</enum><header>Credit for production of clean hydrogen</header><paragraph id="HFAB16CF4F79A4597B7249A8EF1430AF1"><enum>(1)</enum><header>In general</header><text>Subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by adding at the end the following new section:</text><quoted-block display-inline="no-display-inline" id="H419CCD400D334D51A5236A3F26F6CD5A" style="OLC" changed="added" reported-display-style="italic"><section id="H6C701D5EE4494D129920E1B1AD705AD2"><enum>45V.</enum><header>Credit for production of clean hydrogen</header><subsection id="id2BD91A4456A1421291872BF5942AFAA1"><enum>(a)</enum><header>Amount of credit</header><text>For purposes of section 38, the clean hydrogen production credit for any taxable year is an amount equal to the product of—</text><paragraph id="idDED2484FFF7B4DE1ADF83A1463247F2E"><enum>(1)</enum><text>the kilograms of qualified clean hydrogen produced by the taxpayer during such taxable year at a qualified clean hydrogen production facility during the 10-year period beginning on the date such facility was originally placed in service, multiplied by</text></paragraph><paragraph id="id96E530B3239C4EB3A7AE619503AA18F2"><enum>(2)</enum><text>the applicable amount (as determined under subsection (b)) with respect to such hydrogen.</text></paragraph></subsection><subsection id="H2073B285C82441D791AB392BCF27E318"><enum>(b)</enum><header>Applicable amount</header><paragraph id="HADDB003BCBF54942910418A0EFDA0230"><enum>(1)</enum><header>In general</header><text>For purposes of subsection (a)(2), the applicable amount shall be an amount equal to the applicable percentage of $0.60. If any amount as determined under the preceding sentence is not a multiple of 0.1 cent, such amount shall be rounded to the nearest multiple of 0.1 cent.</text></paragraph><paragraph id="HB652A081A2BA4B8AB51C622C1BAB2342"><enum>(2)</enum><header>Applicable percentage</header><text>For purposes of paragraph (1), the applicable percentage shall be determined as follows:</text><subparagraph id="H1CB109DAEE394519B59E2F542DEC13B2" display-inline="no-display-inline"><enum>(A)</enum><text display-inline="yes-display-inline">In the case of any qualified clean hydrogen which is produced through a process that results in a lifecycle greenhouse gas emissions rate of—</text><clause id="HB31B4BDADBCD493EBD6D1B518E5BAC76"><enum>(i)</enum><text display-inline="yes-display-inline">not greater than 4 kilograms of CO2e per kilogram of hydrogen, and</text></clause><clause id="H39120FF7823D410E8F7F0B055C368737"><enum>(ii)</enum><text display-inline="yes-display-inline">not less than 2.5 kilograms of CO2e per kilogram of hydrogen,</text></clause><continuation-text continuation-text-level="subparagraph">the applicable percentage shall be 20 percent. </continuation-text></subparagraph><subparagraph id="HB088657EBC2146D1BE7B06CCE7F982D3"><enum>(B)</enum><text display-inline="yes-display-inline">In the case of any qualified clean hydrogen which is produced through a process that results in a lifecycle greenhouse gas emissions rate of—</text><clause id="HBBC512322BFC46558CEF027451866A96"><enum>(i)</enum><text display-inline="yes-display-inline">less than 2.5 kilograms of CO2e per kilogram of hydrogen, and</text></clause><clause id="HEB19BACE1834400EBBCF35B2F93F8CE0"><enum>(ii)</enum><text display-inline="yes-display-inline">not less than 1.5 kilograms of CO2e per kilogram of hydrogen,</text></clause><continuation-text continuation-text-level="subparagraph">the applicable percentage shall be 25 percent. </continuation-text></subparagraph><subparagraph id="H3361E32938E644E3A90021BBA3A415B2"><enum>(C)</enum><text>In the case of any qualified clean hydrogen which is produced through a process that results in a lifecycle greenhouse gas emissions rate of—</text><clause id="H8913938592B8484DBC1EC321812AE247"><enum>(i)</enum><text display-inline="yes-display-inline">less than 1.5 kilograms of CO2e per kilogram of hydrogen, and</text></clause><clause id="H0007F536515E4831B262826889CB02A4"><enum>(ii)</enum><text display-inline="yes-display-inline">not less than 0.45 kilograms of CO2e per kilogram of hydrogen,</text></clause><continuation-text continuation-text-level="subparagraph">the applicable percentage shall be 33.4 percent. </continuation-text></subparagraph><subparagraph id="HCB9DD44538AF407080B434A39005127D"><enum>(D)</enum><text display-inline="yes-display-inline">In the case of any qualified clean hydrogen which is produced through a process that results in a lifecycle greenhouse gas emissions rate of less than 0.45 kilograms of CO2e per kilogram of hydrogen, the applicable percentage shall be 100 percent.</text></subparagraph></paragraph><paragraph id="H29F3B71D8364437E9980ED85E0D60743"><enum>(3)</enum><header>Inflation adjustment</header><text>The $0.60 amount in paragraph (1) shall be adjusted by multiplying such amount by the inflation adjustment factor (as determined under section 45(e)(2), determined by substituting <quote>2022</quote> for <quote>1992</quote> in subparagraph (B) thereof) for the calendar year in which the qualified clean hydrogen is produced. If any amount as increased under the preceding sentence is not a multiple of 0.1 cent, such amount shall be rounded to the nearest multiple of 0.1 cent.</text></paragraph></subsection><subsection id="HA959A9A2B8554911BD9A5713B57FA253"><enum>(c)</enum><header>Definitions</header><text>For purposes of this section—</text><paragraph id="HC0430D4B6EED46C6B31CC854FECC9870"><enum>(1)</enum><header>Lifecycle greenhouse gas emissions</header><subparagraph id="H469F14607A9D4A6792C9D67E173BC9E5"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Subject to subparagraph (B), the term ‘lifecycle greenhouse gas emissions’ has the same meaning given such term under subparagraph (H) of section 211(o)(1) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(1)</external-xref>), as in effect on the date of enactment of this section.</text></subparagraph><subparagraph id="H89C37350492448BC84733667834EAEFF"><enum>(B)</enum><header>GREET Model</header><text display-inline="yes-display-inline">The term <quote>lifecycle greenhouse gas emissions</quote> shall only include emissions through the point of production (well-to-gate), as determined under the most recent Greenhouse gases, Regulated Emissions, and Energy use in Transportation model (commonly referred to as the <quote>GREET model</quote>) developed by Argonne National Laboratory, or a successor model (as determined by the Secretary).</text></subparagraph></paragraph><paragraph id="HC246CBB1163B49A2AA82B43DDCA9635A"><enum>(2)</enum><header>Qualified clean hydrogen</header><subparagraph id="HCF346431943F4313A5251B5908C5D8D7"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>qualified clean hydrogen</term> means hydrogen which is produced through a process that results in a lifecycle greenhouse gas emissions rate of not greater than 4 kilograms of CO2e per kilogram of hydrogen.</text></subparagraph><subparagraph id="H7C92C05151234F5B8E8A1669C37D9340"><enum>(B)</enum><header>Additional requirements</header><text>Such term shall not include any hydrogen unless—</text><clause id="id23BCFC6B26314F91BA24465D3862FCAE"><enum>(i)</enum><text>such hydrogen is produced—</text><subclause id="HF884EDA3E65843AAB01E802338B62C8B"><enum>(I)</enum><text display-inline="yes-display-inline">in the United States (as defined in section 638(1)) or a possession of the United States (as defined in section 638(2)),</text></subclause><subclause id="HBB19BC737BA04B2DBE56CD78E853B45F"><enum>(II)</enum><text>in the ordinary course of a trade or business of the taxpayer, and</text></subclause><subclause id="id0025CE0C0C00437FB435AC06F1182DED"><enum>(III)</enum><text>for sale or use, and</text></subclause></clause><clause id="H3B4B4441CF7B4D28AA4838A01CFA54C3"><enum>(ii)</enum><text>the production and sale or use of such hydrogen is verified by an unrelated party.</text></clause></subparagraph><subparagraph id="idF77E9EC6B84A43BC982FF4FFE06C2BE7"><enum>(C)</enum><header>Provisional emissions rate</header><text>In the case of any hydrogen for which a lifecycle greenhouse gas emissions rate has not been determined for purposes of this section, a taxpayer producing such hydrogen may file a petition with the Secretary for determination of the lifecycle greenhouse gas emissions rate with respect to such hydrogen.</text></subparagraph></paragraph><paragraph id="H6A13A0415B054A74B5E38099BCBBB3BA"><enum>(3)</enum><header>Qualified clean hydrogen production facility</header><text>The term <term>qualified clean hydrogen production facility</term> means a facility—</text><subparagraph commented="no" id="id36D7466E8FD54D759684B0E2F6BBF45D"><enum>(A)</enum><text>owned by the taxpayer,</text></subparagraph><subparagraph commented="no" id="id97F821EAEFF6460E8EC20BC15F16F51F"><enum>(B)</enum><text>which produces qualified clean hydrogen, and</text></subparagraph><subparagraph commented="no" id="id34B128EFA8434CA0922863BDD91A5947"><enum>(C)</enum><text>the construction of which begins before January 1, 2033.</text></subparagraph></paragraph></subsection><subsection id="HA64A30357DE04EE399B3BAAE5102CDD0"><enum>(d)</enum><header>Special rules</header><paragraph id="H079A2137C9EC428396767AC8388F826D"><enum>(1)</enum><header>Treatment of facilities owned by more than 1 taxpayer</header><text>Rules similar to the rules section 45(e)(3) shall apply for purposes of this section.</text></paragraph><paragraph id="H3ED9B565AEAC42068D91A8AAF592E02D"><enum>(2)</enum><header>Coordination with credit for carbon oxide sequestration</header><text display-inline="yes-display-inline">No credit shall be allowed under this section with respect to any qualified clean hydrogen produced at a facility which includes carbon capture equipment for which a credit is allowed to any taxpayer under section 45Q for the taxable year or any prior taxable year.</text></paragraph></subsection><subsection id="H4F661E0EBDF3445299E642E90F7530A9"><enum>(e)</enum><header>Increased credit amount for qualified clean hydrogen production facilities</header><paragraph id="H17DCA63BAB004B2B8DFC105924CD9D42"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any qualified clean hydrogen production facility which satisfies the requirements of paragraph (2), the amount of the credit determined under subsection (a) with respect to qualified clean hydrogen described in subsection (b)(2) shall be equal to such amount (determined without regard to this sentence) multiplied by 5.</text></paragraph><paragraph id="H0A178BCC7787463D8109225090D3B7B2"><enum>(2)</enum><header>Requirements</header><text display-inline="yes-display-inline">A facility meets the requirements of this paragraph if it is one of the following:</text><subparagraph id="HE574C173114F4244B51A24D0FAB49D80" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">A facility—</text><clause id="H047CF2B60F4B420D8CAF7AC8EFBC4513" commented="no"><enum>(i)</enum><text>the construction of which begins prior to the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (3)(A) and (4), and</text></clause><clause id="H704991893540450CAD349AFF6B693713" commented="no"><enum>(ii)</enum><text>which meets the requirements of paragraph (3)(A) with respect to alteration or repair of such facility which occurs after such date.</text></clause></subparagraph><subparagraph id="H352E6FF5C3904F959CD0A3310FA69799"><enum>(B)</enum><text>A facility which satisfies the requirements of paragraphs (3)(A) and (4).</text></subparagraph></paragraph><paragraph id="H0283A86AAF75459FACFF3E66F1787B8E"><enum>(3)</enum><header>Prevailing wage requirements</header><subparagraph id="H190F107403164AD8861A2F628D7755FF"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The requirements described in this subparagraph with respect to any qualified clean hydrogen production facility are that the taxpayer shall ensure that any laborers and mechanics employed by the taxpayer or any contractor or subcontractor in—</text><clause id="H1C2436AA03A94CC9A01053AC9ABE04E0"><enum>(i)</enum><text>the construction of such facility, and</text></clause><clause id="id3352A7C256D24590A247CF5FEBC39C6C"><enum>(ii)</enum><text>with respect to any taxable year, for any portion of such taxable year which is within the period described in subsection (a)(2), the alteration or repair of such facility, </text></clause><continuation-text continuation-text-level="subparagraph">shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality in which such facility is located as most recently determined by the Secretary of Labor, in accordance with subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code. For purposes of determining an increased credit amount under paragraph (1) for a taxable year, the requirement under clause (ii) of this subparagraph is applied to such taxable year in which the alteration or repair of qualified facility occurs. </continuation-text></subparagraph><subparagraph id="H5F386C5DA1944632B2A6CAC4316D2B2A"><enum>(B)</enum><header>Correction and penalty related to failure to satisfy wage requirements</header><text display-inline="yes-display-inline">Rules similar to the rules of section 45(b)(7)(B) shall apply.</text></subparagraph></paragraph><paragraph id="HA29BEE66CC7E46F78A2634C39D6057CC" commented="no" display-inline="no-display-inline"><enum>(4)</enum><header>Apprenticeship requirements</header><text display-inline="yes-display-inline">Rules similar to the rules of section 45(b)(8) shall apply. </text></paragraph><paragraph id="H80C33041BF124787B6642021F1E0155C"><enum>(5)</enum><header>Regulations and guidance</header><text display-inline="yes-display-inline">The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of administering the requirements of this subsection.</text></paragraph></subsection><subsection id="HCB1A3B5898714BDBB2BC6B939F4C27CB"><enum>(f)</enum><header>Regulations</header><text>Not later than 1 year after the date of enactment of this section, the Secretary shall issue regulations or other guidance to carry out the purposes of this section, including regulations or other guidance for determining lifecycle greenhouse gas emissions.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="HD08732D1BF2746FC829D105BA554DA72"><enum>(2)</enum><header>Credit reduced for tax-exempt bonds</header><text display-inline="yes-display-inline">Section 45V(d), as added by this section, is amended by adding at the end the following new paragraph: </text><quoted-block style="OLC" id="HD6C97984BA3C483C9D04981260F838F6" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="H49A2C81B69414A9CA9CE7E4063542E5B"><enum>(3)</enum><header>Credit reduced for tax-exempt bonds</header><text display-inline="yes-display-inline">Rules similar to the rule under section 45(b)(3) shall apply for purposes of this section.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id757590B5EF2D45DFBFFBB1531D145569"><enum>(3)</enum><header>Modification of existing facilities</header><text>Section 45V(d), as added and amended by the preceding provisions of this section, is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id800A6497C85E4FDE9B5F78802CF33E17" changed="added" reported-display-style="italic"><paragraph id="id5D19AA21EE4B46CCA3B51B669684A9F9"><enum>(4)</enum><header>Modification of existing facilities</header><text>For purposes of subsection (a)(1), in the case of any facility which—</text><subparagraph id="idDF1BD504E43841C1BCA4701275E563EC"><enum>(A)</enum><text>was originally placed in service before January 1, 2023, and, prior to the modification described in subparagraph (B), did not produce qualified clean hydrogen, and</text></subparagraph><subparagraph id="id8FA880FBD5F5427DA5398561555842A9"><enum>(B)</enum><text>after the date such facility was originally placed in service—</text><clause id="idA1B8A7BD466A4C7EBD35BB3D332C2789"><enum>(i)</enum><text>is modified to produce qualified clean hydrogen, and</text></clause><clause id="id9CD004F971204B4DA70FD2F24DE86FF3"><enum>(ii)</enum><text>amounts paid or incurred with respect to such modification are properly chargeable to capital account of the taxpayer,</text></clause></subparagraph><continuation-text continuation-text-level="paragraph">such facility shall be deemed to have been originally placed in service as of the date that the property required to complete the modification described in subparagraph (B) is placed in service.</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id31965ABDCD1D44248DE644789E3F66E7"><enum>(4)</enum><header>Conforming amendments</header><subparagraph id="H823EA86ABFAE4326A64986EC833E1AE3"><enum>(A)</enum><text>Section 38(b), as amended by the preceding provisions of this Act, is amended—</text><clause id="HDAD6D18EA750460392F506345A5FC6ED"><enum>(i)</enum><text>in paragraph (34), by striking <quote>plus</quote> at the end,</text></clause><clause id="HEAEAC604286B4ADF94ED62C603B24007"><enum>(ii)</enum><text>in paragraph (35), by striking the period at the end and inserting <quote>, plus</quote>, and</text></clause><clause id="H17C8BF1EFE8B43309E0B6F76BAD61913"><enum>(iii)</enum><text>by adding at the end the following new paragraph:</text><quoted-block display-inline="no-display-inline" id="HDE776F8AB37846B285EC8681BCD42BA5" style="OLC" changed="added" reported-display-style="italic"><paragraph id="H8C6A9942723F4299829854BD618BB388"><enum>(36)</enum><text>the clean hydrogen production credit determined under section 45V(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="H53C3F4AB19F04590B4392C418B168E69"><enum>(B)</enum><text>The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by adding at the end the following new item:</text><quoted-block display-inline="no-display-inline" id="H235E9386C08543618C998D32B22761BD" style="OLC" changed="added" reported-display-style="italic"><toc changed="added" reported-display-style="italic"><toc-entry bold="off" level="section">Sec. 45V. Credit for production of clean hydrogen.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="HC62E795550C8446FBEC9F42C66FFC25F"><enum>(5)</enum><header>Effective dates</header><subparagraph id="H16C2FC13AE5244F68C14F858455E4786"><enum>(A)</enum><header>In general</header><text>The amendments made by paragraphs (1) and (4) of this subsection shall apply to hydrogen produced after December 31, 2022.</text></subparagraph><subparagraph id="H1256083E92264ACFB643C5445A8D8DED"><enum>(B)</enum><header>Credit reduced for tax-exempt bonds</header><text>The amendment made by paragraph (2) shall apply to facilities the construction of which begins after the date of enactment of this Act.</text></subparagraph><subparagraph id="id869D5185DC0C426E85104EA58A20E17C"><enum>(C)</enum><header>Modification of existing facilities</header><text>The amendment made by paragraph (3) shall apply to modifications made after December 31, 2022.</text></subparagraph></paragraph></subsection><subsection id="H65F4E1C97D794B5980630155FD1E38A1"><enum>(b)</enum><header>Credit for electricity produced from renewable resources allowed if electricity is used to produce clean hydrogen</header><paragraph id="HDC1DB046604B4F66A6A7BB88FA55816C"><enum>(1)</enum><header>In general</header><text>Section 45(e), as amended by the preceding provisions of this Act, is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" id="HA29A1DFA2A0D42778E2A4937BC450702" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="H00189E862B3345ECB76DA5D902072A1F"><enum>(13)</enum><header>Special rule for electricity used at a qualified clean hydrogen production facility</header><text display-inline="yes-display-inline">Electricity produced by the taxpayer shall be treated as sold by such taxpayer to an unrelated person during the taxable year if—</text><subparagraph id="id137D7F262C8840408B61CD24632E418F"><enum>(A)</enum><text display-inline="yes-display-inline">such electricity is used during such taxable year by the taxpayer or a person related to the taxpayer at a qualified clean hydrogen production facility (as defined in section 45V(c)(3)) to produce qualified clean hydrogen (as defined in section 45V(c)(2)), and</text></subparagraph><subparagraph id="idC3B4FCF02A7640CD86343EFBF8658860"><enum>(B)</enum><text>such use and production is verified (in such form or manner as the Secretary may prescribe) by an unrelated third party.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H2213CB909EA646239B30C86DBD4E984E"><enum>(2)</enum><header>Similar rule for zero-emission nuclear power production credit</header><text>Subsection (c)(2) of <external-xref legal-doc="usc" parsable-cite="usc/26/45U">section 45U</external-xref>, as added by section 13105 of this Act, is amended by striking <quote>and (5)</quote> and inserting <quote>(5), and (13)</quote>.</text></paragraph><paragraph id="id2D3F670EEDAA47B0BAC0A3C4BA3EF699"><enum>(3)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to electricity produced after December 31, 2022.</text></paragraph></subsection><subsection id="HBBC60AE73B5F458D95B87CDF91CAD608"><enum>(c)</enum><header>Election to treat clean hydrogen production facilities as energy property</header><paragraph id="id564981607D604CFBB4844DDEE9800AA0"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Section 48(a), as amended by the preceding provisions of this Act, is amended—</text><subparagraph id="id721EA5DB010F4FC2ACAD7687D77F787A"><enum>(A)</enum><text display-inline="yes-display-inline">by redesignating paragraph (15) as paragraph (16), and</text></subparagraph><subparagraph id="id84E55357E50D4FBCB36CA92F422FF8DA"><enum>(B)</enum><text>by inserting after paragraph (14) the following new paragraph: </text><quoted-block style="OLC" id="H18B8BD83F7144635B89046A109AE503D" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="H64FEF77C7AC34ED9814A242C1A3675DE"><enum>(15)</enum><header>Election to treat clean hydrogen production facilities as energy property</header><subparagraph id="H66ACCD2A212349B298D014312D2DF2E3"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any qualified property (as defined in paragraph (5)(D)) which is part of a specified clean hydrogen production facility—</text><clause id="H8C8C37ECF0A54C59B8776868CFB6BC7C"><enum>(i)</enum><text>such property shall be treated as energy property for purposes of this section, and</text></clause><clause id="H0E09447491EC476EA987AD901B5BAF9B"><enum>(ii)</enum><text>the energy percentage with respect to such property is—</text><subclause id="H9C9D0EAC591F48DBB054D39E69E14174"><enum>(I)</enum><text display-inline="yes-display-inline">in the case of a facility which is designed and reasonably expected to produce qualified clean hydrogen which is described in a subparagraph (A) of section 45V(b)(2), 1.2 percent,</text></subclause><subclause id="H71577984896946D7B8634F6ACEE79E85"><enum>(II)</enum><text>in the case of a facility which is designed and reasonably expected to produce qualified clean hydrogen which is described in a subparagraph (B) of such section, 1.5 percent, </text></subclause><subclause id="H9CEE50A27F5B4BDC984B3E309F118B5F"><enum>(III)</enum><text>in the case of a facility which is designed and reasonably expected to produce qualified clean hydrogen which is described in a subparagraph (C) of such section, 2 percent, and </text></subclause><subclause id="HB91BE632DF764C1AA460C74FE0069B70"><enum>(IV)</enum><text display-inline="yes-display-inline">in the case of a facility which is designed and reasonably expected to produce qualified clean hydrogen which is described in subparagraph (D) of such section, 6 percent.</text></subclause></clause></subparagraph><subparagraph id="HA7C5F5F495034540B69E1CB04A6A81E8"><enum>(B)</enum><header>Denial of production credit</header><text display-inline="yes-display-inline">No credit shall be allowed under section 45V or section 45Q for any taxable year with respect to any specified clean hydrogen production facility or any carbon capture equipment included at such facility.</text></subparagraph><subparagraph id="H6CED9BE97DF3470686A3DDD23CD04586"><enum>(C)</enum><header>Specified clean hydrogen production facility</header><text>For purposes of this paragraph, the term <quote>specified clean hydrogen production facility</quote> means any qualified clean hydrogen production facility (as defined in section 45V(c)(3))—</text><clause id="HD37099D0A92A4B27B40972BAC900C8E2"><enum>(i)</enum><text>which is placed in service after December 31, 2022,</text></clause><clause id="H68E09F8831C24355B3370F37B9650A7C"><enum>(ii)</enum><text>with respect to which—</text><subclause id="H647C046AB0994FEFA60CBA97DA642C12"><enum>(I)</enum><text>no credit has been allowed under section 45V or 45Q, and</text></subclause><subclause id="H8EB9CBB44F1F4E3AAC8AD187A613953E"><enum>(II)</enum><text>the taxpayer makes an irrevocable election to have this paragraph apply, and</text></subclause></clause><clause id="idD4E1B07126F74E7ABEC77A6B83497FD0"><enum>(iii)</enum><text>for which an unrelated third party has verified (in such form or manner as the Secretary may prescribe) that such facility produces hydrogen through a process which results in lifecycle greenhouse gas emissions which are consistent with the hydrogen that such facility was designed and expected to produce under subparagraph (A)(ii).</text></clause></subparagraph><subparagraph id="HB43D63A310064D1795B0E2CAF0FCE764"><enum>(D)</enum><header>Qualified clean hydrogen</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term <quote>qualified clean hydrogen</quote> has the meaning given such term by section 45V(c)(2).</text></subparagraph><subparagraph id="HD691A01F1A99475398A8B382C45A14AF"><enum>(E)</enum><header>Regulations</header><text>The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this section, including regulations or other guidance which recaptures so much of any credit allowed under this section as exceeds the amount of the credit which would have been allowed if the expected production were consistent with the actual verified production (or all of the credit so allowed in the absence of such verification).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="HB89D6710C6164B269F9F9617F0E89627"><enum>(2)</enum><header>Conforming amendment</header><text>Paragraph (9)(A)(i) of section 48(a), as added by <external-xref legal-doc="usc" parsable-cite="usc/26/13102">section 13102,</external-xref> is amended by inserting <quote>and paragraph (15)</quote> after <quote>paragraphs (1) through (8)</quote>.</text></paragraph><paragraph id="id6113A7EA979B4BFC80A23E904223DF07"><enum>(3)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this subsection shall apply to property placed in service after December 31, 2022, and, for any property the construction of which begins prior to January 1, 2023, only to the extent of the basis thereof attributable to the construction, reconstruction, or erection after December 31, 2022.</text></paragraph></subsection><subsection id="H3E9AF9DED14D48C0B258B2C7EBE31D8A"><enum>(d)</enum><header>Termination of excise tax credit for hydrogen</header><paragraph id="H75CAAF8BCA1546DAB24F69F303248739"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6426">Section 6426(d)(2)</external-xref> is amended by striking subparagraph (D) and by redesignating subparagraphs (E), (F), and (G) as subparagraphs (D), (E), and (F), respectively.</text></paragraph><paragraph id="H9B975B83EBAD494986ED05954337077D"><enum>(2)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6426">Section 6426(e)(2)</external-xref> is amended by striking <quote>(F)</quote> and inserting <quote>(E)</quote>.</text></paragraph><paragraph id="H64446645527144019485AD244579A2A2"><enum>(3)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to fuel sold or used after December 31, 2022. </text></paragraph></subsection></section></part><part id="HA5B515A982964F7A9348648A8B855AB2"><enum>3<?LEXA-Enum 3?></enum><header>Clean energy and efficiency incentives for individuals</header><section id="H464AEC039006468FA8E301BAE955859B"><enum>13301.</enum><header>Extension, increase, and modifications of nonbusiness energy property credit</header><subsection id="HE3C6477B1EF7475FBFEB5D46EFFB1F00"><enum>(a)</enum><header>Extension of credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C(g)(2)</external-xref> is amended by striking <quote>December 31, 2021</quote> and inserting <quote>December 31, 2032</quote>.</text></subsection><subsection id="H0B4892770CEB449FBBAB8FABFED6AD3F"><enum>(b)</enum><header>Allowance of credit</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C(a)</external-xref> is amended to read as follows: </text><quoted-block style="OLC" id="H995D26AE301F4F59BAFF7ACB5C467466" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subsection id="HAEAA19E1308C451787F1983977FA530F"><enum>(a)</enum><header>Allowance of credit</header><text display-inline="yes-display-inline">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 30 percent of the sum of—</text><paragraph id="H2783E046C24048F88014327A0B3444DE"><enum>(1)</enum><text display-inline="yes-display-inline">the amount paid or incurred by the taxpayer for qualified energy efficiency improvements installed during such taxable year, and</text></paragraph><paragraph id="H34CB444E787D4E02834E4AD47C8EE0C0"><enum>(2)</enum><text display-inline="yes-display-inline">the amount of the residential energy property expenditures paid or incurred by the taxpayer during such taxable year.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H19FA5A87DEE54F0BA39B4C138F4C4C4A"><enum>(c)</enum><header>Application of annual limitation in lieu of lifetime limitation</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C(b)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" id="H9993E436A21D4038A4D514B9041805CC" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subsection id="H111D9BB0E2F34FB6AED37AE9A623C276"><enum>(b)</enum><header>Limitations</header><paragraph id="HCA543DFD61644689ADCD47DFC93C20E4"><enum>(1)</enum><header>In general</header><text>The credit allowed under this section with respect to any taxpayer for any taxable year shall not exceed $1,200.</text></paragraph><paragraph id="H630BE0EAA0ED4F058861B7B0E661B80D"><enum>(2)</enum><header>Energy property</header><text display-inline="yes-display-inline">The credit allowed under this section by reason of subsection (a)(2) with respect to any taxpayer for any taxable year shall not exceed, with respect to any item of qualified energy property, $600.</text></paragraph><paragraph commented="no" id="H638E2E351AB244F5AB0207987F13ED49" display-inline="no-display-inline"><enum>(3)</enum><header>Windows</header><text display-inline="yes-display-inline">The credit allowed under this section by reason of subsection (a)(1) with respect to any taxpayer for any taxable year shall not exceed, in the aggregate with respect to all exterior windows and skylights, $600.</text></paragraph><paragraph id="H345359E2ECCE42309BA4F6B9F7E5E012"><enum>(4)</enum><header>Doors</header><text>The credit allowed under this section by reason of subsection (a)(1) with respect to any taxpayer for any taxable year shall not exceed—</text><subparagraph id="H7A16348B815D4D5BAB93204B922ECA3F"><enum>(A)</enum><text>$250 in the case of any exterior door, and</text></subparagraph><subparagraph id="HE0815CA255AD498B91AD92B3E062DB1B"><enum>(B)</enum><text>$500 in the aggregate with respect to all exterior doors.</text></subparagraph></paragraph><paragraph id="H6C66007C35524AF29828B6D0C4249044"><enum>(5)</enum><header>Heat pump and heat pump water heaters; biomass stoves and boilers</header><text>Notwithstanding paragraphs (1) and (2), the credit allowed under this section by reason of subsection (a)(2) with respect to any taxpayer for any taxable year shall not, in the aggregate, exceed $2,000 with respect to amounts paid or incurred for property described in clauses (i) and (ii) of subsection (d)(2)(A) and in subsection (d)(2)(B). </text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H3C2519C4E7A3454EB9216964127A7940"><enum>(d)</enum><header>Modifications related to qualified energy efficiency improvements</header><paragraph commented="no" id="idB6FDAFCE710A4E0688424AA903FADF1C"><enum>(1)</enum><header>Standards for energy efficient building envelope components</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C(c)(2)</external-xref> is amended by striking <quote>meets—</quote> and all that follows through the period at the end and inserting the following:</text><quoted-block style="OLC" id="H1005CA90443244B2B2D5D3BAC521CC58" display-inline="yes-display-inline" changed="added" reported-display-style="italic"><text>meets—</text><subparagraph id="HB2B270475B0148E195146B384ABA8C87"><enum>(A)</enum><text display-inline="yes-display-inline">in the case of an exterior window or skylight, Energy Star most efficient certification requirements,</text></subparagraph><subparagraph id="id2C245419692446C1815CAC1EB8D9F138"><enum>(B)</enum><text display-inline="yes-display-inline">in the case of an exterior door, applicable Energy Star requirements, and</text></subparagraph><subparagraph id="H0AF1114879684B2BA74E9FF8F2A0136A"><enum>(C)</enum><text display-inline="yes-display-inline">in the case of any other component, the prescriptive criteria for such component established by the most recent International Energy Conservation Code standard in effect as of the beginning of the calendar year which is 2 years prior to the calendar year in which such component is placed in service.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H05C5C0B0B9F9454B8AC2D024044CEB30" commented="no" display-inline="no-display-inline"><enum>(2)</enum><header>Roofs not treated as building envelope components</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C(c)(3)</external-xref> is amended by adding <quote>and</quote> at the end of subparagraph (B), by striking <quote>, and</quote> at the end of subparagraph (C) and inserting a period, and by striking subparagraph (D).</text></paragraph><paragraph id="H89653757949746B187E112EF888954A0"><enum>(3)</enum><header>Air sealing insulation added to definition of building envelope component</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C(c)(3)(A)</external-xref> is amended by inserting <quote>, including air sealing material or system,</quote> after <quote>material or system</quote>.</text></paragraph></subsection><subsection id="H7B82EE79E65C4FEBB88E56047CCCA304"><enum>(e)</enum><header>Modification of residential energy property expenditures</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C(d)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" id="H845116C487904950ACE90B05E1FE0E78" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subsection id="H40C1D9CD0CB1424BA6B7A40049864C51"><enum>(d)</enum><header>Residential energy property expenditures</header><text display-inline="yes-display-inline">For purposes of this section—</text><paragraph id="H2427E9D3F42B4CA6BF1E4D00D9BB188C"><enum>(1)</enum><header>In general</header><text>The term <quote>residential energy property expenditures</quote> means expenditures made by the taxpayer for qualified energy property which is—</text><subparagraph id="HDA0A701427824CEA94AF29B87C4912FB"><enum>(A)</enum><text>installed on or in connection with a dwelling unit located in the United States and used as a residence by the taxpayer, and</text></subparagraph><subparagraph id="H9DB2D45EC5EF42B8800E2426FB9089CF"><enum>(B)</enum><text>originally placed in service by the taxpayer.</text></subparagraph><continuation-text continuation-text-level="paragraph">Such term includes expenditures for labor costs properly allocable to the onsite preparation, assembly, or original installation of the property. </continuation-text></paragraph><paragraph id="H7072E07BD3814ABDB8AAC8F2B2EF1025"><enum>(2)</enum><header>Qualified energy property</header><text>The term <quote>qualified energy property</quote> means any of the following:</text><subparagraph id="H2592DD1FA35647C3AD44B30750812E27"><enum>(A)</enum><text>Any of the following which meet or exceed the highest efficiency tier (not including any advanced tier) established by the Consortium for Energy Efficiency which is in effect as of the beginning of the calendar year in which the property is placed in service:</text><clause id="H3355050101B548BD8610E858A6084430"><enum>(i)</enum><text>An electric or natural gas heat pump water heater.</text></clause><clause id="H2E1BEB6796794A67B1AC0622C84863C2"><enum>(ii)</enum><text>An electric or natural gas heat pump.</text></clause><clause id="HC0DAB87682C9449C80C0F7D0FB106470"><enum>(iii)</enum><text>A central air conditioner.</text></clause><clause id="H4621C03FD26C419A8746C818A6525CDC"><enum>(iv)</enum><text>A natural gas, propane, or oil water heater.</text></clause><clause id="HD93C83C86CEC4FE384FA7B4B35BDFEDC"><enum>(v)</enum><text>A natural gas, propane, or oil furnace or hot water boiler.</text></clause></subparagraph><subparagraph id="H94E1017D972048B1A14A3D089D55E6CF"><enum>(B)</enum><text>A biomass stove or boiler which—</text><clause id="HC43B4BDB807246A48E74F3361BD8D498"><enum>(i)</enum><text display-inline="yes-display-inline">uses the burning of biomass fuel to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit, and</text></clause><clause id="H622AFDE673DF40EB9246211F4FA2804A"><enum>(ii)</enum><text>has a thermal efficiency rating of at least 75 percent (measured by the higher heating value of the fuel).</text></clause></subparagraph><subparagraph id="H732A8163245D465C86D0B75E4B172AF1"><enum>(C)</enum><text>Any oil furnace or hot water boiler which—</text><clause id="HAE242349E5DF46D0A3496F0CDD11B262"><enum>(i)</enum><text display-inline="yes-display-inline">is placed in service after December 31, 2022, and before January 1, 2027, and—</text><subclause id="id9808805A66104534A774B09823CF179C"><enum>(I)</enum><text display-inline="yes-display-inline">meets or exceeds 2021 Energy Star efficiency criteria, and </text></subclause><subclause id="id3E8C53D598B74B8DAB9D301291B28D6E"><enum>(II)</enum><text display-inline="yes-display-inline">is rated by the manufacturer for use with fuel blends at least 20 percent of the volume of which consists of an eligible fuel, or</text></subclause></clause><clause id="H36A7A4083AC144DDB3B1633ED1E91574"><enum>(ii)</enum><text display-inline="yes-display-inline">is placed in service after December 31, 2026, and—</text><subclause id="id50458BFECA444DE7B59222DF0F4D2435"><enum>(I)</enum><text display-inline="yes-display-inline">achieves an annual fuel utilization efficiency rate of not less than 90, and </text></subclause><subclause id="id381BBE808EE944E989673CD6F2615ED4"><enum>(II)</enum><text display-inline="yes-display-inline">is rated by the manufacturer for use with fuel blends at least 50 percent of the volume of which consists of an eligible fuel.</text></subclause></clause></subparagraph><subparagraph commented="no" id="id72B5F3B967FE475F9DC111B461228078"><enum>(D)</enum><text>Any improvement to, or replacement of, a panelboard, sub-panelboard, branch circuits, or feeders which—</text><clause commented="no" id="id12CADDFD6DA24A19B8CC5E195A76D48C"><enum>(i)</enum><text>is installed in a manner consistent with the National Electric Code,</text></clause><clause commented="no" id="idC748AABDA5384F3091154B405F062CB8"><enum>(ii)</enum><text>has a load capacity of not less than 200 amps,</text></clause><clause commented="no" id="idE29340556E67490F8D656D7EEBC504E9"><enum>(iii)</enum><text>is installed in conjunction with—</text><subclause commented="no" id="id54FA4BA87F444C33808E870BD5B15D08"><enum>(I)</enum><text>any qualified energy efficiency improvements, or</text></subclause><subclause commented="no" id="id4393562DCAE04C46AA7BE35E7BC6484C"><enum>(II)</enum><text>any qualified energy property described in subparagraphs (A) through (C) for which a credit is allowed under this section for expenditures with respect to such property, and</text></subclause></clause><clause commented="no" id="id6152DCD734F747189F5985FEC7484D94"><enum>(iv)</enum><text>enables the installation and use of any property described in subclause (I) or (II) of clause (iii).</text></clause></subparagraph></paragraph><paragraph id="H4ACFD19D2238460397E4C55FB9970B1C"><enum>(3)</enum><header>Eligible fuel</header><text display-inline="yes-display-inline">For purposes of paragraph (2), the term <quote>eligible fuel</quote> means—</text><subparagraph id="id1C4AE6CAEFBE4527874F54CBB3DBB06E"><enum>(A)</enum><text display-inline="yes-display-inline">biodiesel and renewable diesel (within the meaning of section 40A), and </text></subparagraph><subparagraph id="id722D867010FA47E4868B33E49ACD959D"><enum>(B)</enum><text display-inline="yes-display-inline">second generation biofuel (within the meaning of section 40).</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HB6A934CA786640E5B5BE42FDA343E861"><enum>(f)</enum><header>Home energy audits</header><paragraph id="H0319ECBCACE84DEF9FA4A7F17C449FE7"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Section 25C(a), as amended by subsection (b), is amended by striking <quote>and</quote> at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph: </text><quoted-block style="OLC" id="HABD465D6762841B4AD5EB94AF0BBB0E5" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="HDDC830439ACE46ACB415BF64EAF1DF44"><enum>(3)</enum><text display-inline="yes-display-inline">the amount paid or incurred by the taxpayer during the taxable year for home energy audits.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H7679812BF3564B7288D4E5C997D9AE1D"><enum>(2)</enum><header>Limitation</header><text>Section 25C(b), as amended by subsection (c), is amended adding at the end the following new paragraph:</text><quoted-block style="OLC" id="HEBBDFFE940C941F6987916D47ACDC37A" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="HAB8CDE1D1FB145ECAEF704006E56EDA0"><enum>(6)</enum><header>Home energy audits</header><subparagraph id="HC2C6683B5CD64842BF1EE9E6C6D83981"><enum>(A)</enum><header>Dollar limitation</header><text>The amount of the credit allowed under this section by reason of subsection (a)(3) shall not exceed $150.</text></subparagraph><subparagraph id="H287C532468114269BA5C9453CB4F5FCD"><enum>(B)</enum><header>Substantiation requirement</header><text>No credit shall be allowed under this section by reason of subsection (a)(3) unless the taxpayer includes with the taxpayer’s return of tax such information or documentation as the Secretary may require.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H5C604E8A9AA345AB91D2A0A69E260B72"><enum>(3)</enum><header>Home energy audits</header><subparagraph id="HDD8B1B30A5EB4536BAF862E3A31BF005"><enum>(A)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C</external-xref> is amended by redesignating subsections (e), (f), and (g), as subsections (f), (g), and (h), respectively, and by inserting after subsection (d) the following new subsection:</text><quoted-block style="OLC" id="HA4B0DC588F344F1CAD03B4E610C2A611" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subsection id="H78139167EDE14D9EBA80304C088EF965"><enum>(e)</enum><header>Home energy audits</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>home energy audit</term> means an inspection and written report with respect to a dwelling unit located in the United States and owned or used by the taxpayer as the taxpayer’s principal residence (within the meaning of section 121) which—</text><paragraph id="HEC0DC359F03440C7AAC56D50BE59AF1F"><enum>(1)</enum><text>identifies the most significant and cost-effective energy efficiency improvements with respect to such dwelling unit, including an estimate of the energy and cost savings with respect to each such improvement, and</text></paragraph><paragraph id="HE136E0FD05AF457BB2D8AA788C4E2365"><enum>(2)</enum><text>is conducted and prepared by a home energy auditor that meets the certification or other requirements specified by the Secretary in regulations or other guidance (as prescribed by the Secretary not later than 365 days after the date of the enactment of this subsection).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph id="HE33F0330FC854926B1B0A5145CFE3A62"><enum>(B)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/1016">Section 1016(a)(33)</external-xref> is amended by striking <quote>section 25C(f)</quote> and inserting <quote>section 25C(g)</quote>.</text></subparagraph></paragraph><paragraph id="HE6AFD27E244E40D98BBAC3DE4873A532"><enum>(4)</enum><header>Lack of substantiation treated as mathematical or clerical error</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6213">Section 6213(g)(2)</external-xref> is amended—</text><subparagraph id="H35ADEA5D74854E29A60DD7F18195A9FA"><enum>(A)</enum><text>in subparagraph (P), by striking <quote>and</quote> at the end,</text></subparagraph><subparagraph id="HECC3AECB670141068CC8591F19EA6CE2"><enum>(B)</enum><text>in subparagraph (Q), by striking the period at the end and inserting <quote>, and</quote>, and</text></subparagraph><subparagraph id="H7D4C7094D5364FACB94FCEB09B8F83EE"><enum>(C)</enum><text>by inserting after subparagraph (Q) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H5494854D5EC24A5BB65A82AE88AE43E6" changed="added" reported-display-style="italic"><subparagraph id="H1E1A31BB39224E37A32669192334114F"><enum>(R)</enum><text>an omission of information or documentation required under section 25C(b)(6)(B) (relating to home energy audits) to be included on a return.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="H27863CFC13A742BE972C2F818CFAF678"><enum>(g)</enum><header>Identification number requirement</header><paragraph id="H4B8D3D05EAC642518AD850D3CFF18407"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C</external-xref>, as amended by this section, is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection:</text><quoted-block style="OLC" id="HA2499DA066694B1DB669036EFA06EE41" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subsection id="HE78B365891374E27A71DF2478B5538B4"><enum>(h)</enum><header>Product identification number requirement</header><paragraph id="H059995FCC53D4B28808D5953882749EE"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">No credit shall be allowed under subsection (a) with respect to any item of specified property placed in service after December 31, 2024, unless—</text><subparagraph id="H44E0DBA06E814B1CB73608E0579D6756"><enum>(A)</enum><text>such item is produced by a qualified manufacturer, and</text></subparagraph><subparagraph id="H91AFCD4738BA4FD49D752FA43B096FFB"><enum>(B)</enum><text>the taxpayer includes the qualified product identification number of such item on the return of tax for the taxable year.</text></subparagraph></paragraph><paragraph id="HCF7A2D17CFA14F139F00A03EE2015A17"><enum>(2)</enum><header>Qualified product identification number</header><text>For purposes of this section, the term <quote>qualified product identification number</quote> means, with respect to any item of specified property, the product identification number assigned to such item by the qualified manufacturer pursuant to the methodology referred to in paragraph (3).</text></paragraph><paragraph id="H82CC80DC3F784CD080704D28911ADC6F"><enum>(3)</enum><header>Qualified manufacturer</header><text>For purposes of this section, the term <quote>qualified manufacturer</quote> means any manufacturer of specified property which enters into an agreement with the Secretary which provides that such manufacturer will—</text><subparagraph id="H607A44D8759B488284B9254C48C230AF"><enum>(A)</enum><text>assign a product identification number to each item of specified property produced by such manufacturer utilizing a methodology that will ensure that such number (including any alphanumeric) is unique to each such item (by utilizing numbers or letters which are unique to such manufacturer or by such other method as the Secretary may provide), </text></subparagraph><subparagraph id="HD1C3DC8567BD4C1893DB035FD9CDCABE"><enum>(B)</enum><text>label such item with such number in such manner as the Secretary may provide, and</text></subparagraph><subparagraph id="H4DC62D6C37B14FB69092013955CCE3B9"><enum>(C)</enum><text>make periodic written reports to the Secretary (at such times and in such manner as the Secretary may provide) of the product identification numbers so assigned and including such information as the Secretary may require with respect to the item of specified property to which such number was so assigned.</text></subparagraph></paragraph><paragraph id="H57A21EDE256D4EF3A53CE004C8C5ECBC"><enum>(4)</enum><header>Specified property</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>specified property</quote> means any qualified energy property and any property described in subparagraph (B) or (C) of subsection (c)(3). </text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="HFD29E75E3E09421EB66B5092339CE24F"><enum>(2)</enum><header>Omission of correct product identification number treated as mathematical or clerical error</header><text>Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended—</text><subparagraph id="HBBBB39E4AA7E42CDA120E3F93629BE01"><enum>(A)</enum><text>in subparagraph (Q), by striking <quote>and</quote> at the end,</text></subparagraph><subparagraph id="H469884EFE1784052A2849B2529989128"><enum>(B)</enum><text>in subparagraph (R), by striking the period at the end and inserting <quote>, and</quote>, and</text></subparagraph><subparagraph id="H3143AEEC8641422ABFBEB7745EFB7EE7"><enum>(C)</enum><text>by inserting after subparagraph (R) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HE8531F8EF74D4DBEA6D61F052865B480" changed="added" reported-display-style="italic"><subparagraph id="H73F9EAA6932D43C788C9DB2D5A46FCBC"><enum>(S)</enum><text>an omission of a correct product identification number required under section 25C(h) (relating to credit for nonbusiness energy property) to be included on a return.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="H4D575EB5B7004EB48260924FD4A64F55"><enum>(h)</enum><header>Energy Efficient Home Improvement Credit</header><paragraph id="id11F1931787874C28A74D94D321A7EFAD"><enum>(1)</enum><header>In general</header><text>The heading for <external-xref legal-doc="usc" parsable-cite="usc/26/25C">section 25C</external-xref> is amended by striking <quote><header-in-text style="tax" level="section">Nonbusiness energy property</header-in-text></quote> and inserting <quote><header-in-text style="tax" level="section">Energy efficient home improvement credit</header-in-text></quote>.</text></paragraph><paragraph id="id5EA8DC78950B45B1A2BCB8B3A073BE11"><enum>(2)</enum><header>Clerical amendment</header><text>The table of sections for subpart A of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by striking the item relating to section 25C and inserting after the item relating to section 25B the following item:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id0320B4C89DDF41DD8396AA184A16E8BC" changed="added" reported-display-style="italic"><toc changed="added" reported-display-style="italic"><toc-entry level="section" bold="off">Sec. 25C. Energy efficient home improvement credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="idCD7655C588734E5CBE9E56C0090686D0"><enum>(i)</enum><header>Effective dates</header><paragraph id="H558B7F5234264DE0AE301F886A02C3F1"><enum>(1)</enum><header>In general</header><text>Except as otherwise provided by this subsection, the amendments made by this section shall apply to property placed in service after December 31, 2022.</text></paragraph><paragraph id="HBB37F74A966649F58158752F3464181D"><enum>(2)</enum><header>Extension of credit</header><text>The amendments made by subsection (a) shall apply to property placed in service after December 31, 2021.</text></paragraph><paragraph id="H1405BBD1AF204EA186D59C07DFD6DD80"><enum>(3)</enum><header>Identification number requirement</header><text>The amendments made by subsection (g) shall apply to property placed in service after December 31, 2024.</text></paragraph></subsection></section><section id="HB91DD6B3B6C0482E93A44655CB87E436"><enum>13302.</enum><header>Residential clean energy credit</header><subsection id="H00602440A9234BC496EC165F2681AA05"><enum>(a)</enum><header>Extension of credit</header><paragraph id="H3C5BB54112B84A9294C6514327E548A3"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25D">Section 25D(h)</external-xref> is amended by striking <quote>December 31, 2023</quote> and inserting <quote>December 31, 2034</quote>.</text></paragraph><paragraph id="HF6E7CDAA86F34AC486996A5B2F06AA22"><enum>(2)</enum><header>Application of phaseout</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25D">Section 25D(g)</external-xref> is amended—</text><subparagraph id="H98E264BC6AB846BA96C0BF0EF4286EAC"><enum>(A)</enum><text>in paragraph (2), by striking <quote>before January 1, 2023, 26 percent, and</quote> and inserting <quote>before January 1, 2022, 26 percent,</quote>, and</text></subparagraph><subparagraph id="HF99C742F7C3E4B23932C2A67C3850447"><enum>(B)</enum><text>by striking paragraph (3) and by inserting after paragraph (2) the following new paragraphs:</text><quoted-block style="OLC" id="H4681092EAE934FE7AEB843306178BA70" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="HD9C6A30C5A93499188D97469693764F8"><enum>(3)</enum><text display-inline="yes-display-inline">in the case of property placed in service after December 31, 2021, and before January 1, 2033, 30 percent,</text></paragraph><paragraph id="HBAE9CF97BF9846D482345472BB00A8C7"><enum>(4)</enum><text display-inline="yes-display-inline">in the case of property placed in service after December 31, 2032, and before January 1, 2034, 26 percent, and</text></paragraph><paragraph id="id43D9F8E3BCAC48099A9C82C4743483D4"><enum>(5)</enum><text display-inline="yes-display-inline">in the case of property placed in service after December 31, 2033, and before January 1, 2035, 22 percent.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="HA1227AB66DC04A9A904D126FAB2E10F5"><enum>(b)</enum><header>Residential clean energy credit for battery storage technology; certain expenditures disallowed</header><paragraph id="HAEC85FE290A44C79BD19CFE9B92E9EA2"><enum>(1)</enum><header>Allowance of credit</header><text display-inline="yes-display-inline">Paragraph (6) of <external-xref legal-doc="usc" parsable-cite="usc/26/25D">section 25D(a)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" id="H0533CDB555E54A1BAECC5C26D73EFB9A" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="H26DCE4747FFC41148F907AF271239E9B"><enum>(6)</enum><text>the qualified battery storage technology expenditures,</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H5B2F24E5D7154911BDC3EFC2405737C9" commented="no"><enum>(2)</enum><header>Definition of qualified battery storage technology expenditure</header><text>Paragraph (6) of <external-xref legal-doc="usc" parsable-cite="usc/26/25D">section 25D(d)</external-xref> is amended to read as follows:</text><quoted-block act-name="" id="H38730B15950A4112A0F36A52FC28D1EE" style="OLC" changed="added" reported-display-style="italic"><paragraph id="HB9BDC842F25147EF926E4CC8B9D6C2EF" commented="no"><enum>(6)</enum><header>Qualified battery storage technology expenditure</header><text display-inline="yes-display-inline">The term <term>qualified battery storage technology expenditure</term> means an expenditure for battery storage technology which—</text><subparagraph id="H46536EC57D5E4B5B9976D923BC127536" commented="no"><enum>(A)</enum><text>is installed in connection with a dwelling unit located in the United States and used as a residence by the taxpayer, and </text></subparagraph><subparagraph id="H2453479DA1AC44389916F92B2045E2F3" commented="no"><enum>(B)</enum><text>has a capacity of not less than 3 kilowatt hours.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="HE417A0C4727548FCADE7E700BE2F13B2"><enum>(c)</enum><header>Conforming amendments</header><paragraph id="idC7F5D6F1F331400F8965316D0B8708F0"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/25D">Section 25D(d)(3)</external-xref> is amended by inserting <quote>, without regard to subparagraph (D) thereof</quote> after <quote>section 48(c)(1)</quote>.</text></paragraph><paragraph id="id98A1DA5D66CD454D8F68EE2526D720CC"><enum>(2)</enum><text>The heading for <external-xref legal-doc="usc" parsable-cite="usc/26/25D">section 25D</external-xref> is amended by striking <quote><header-in-text style="tax" level="section">energy efficient property</header-in-text></quote> and inserting <quote><header-in-text style="tax" level="section">clean energy credit</header-in-text></quote>.</text></paragraph><paragraph id="idF7596703D9B24C46956227ABF644019E"><enum>(3)</enum><text>The table of sections for subpart A of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by striking the item relating to section 25D and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id9EE30727CDBC47C9A0A98ED4B8FE273F" changed="added" reported-display-style="italic"><toc changed="added" reported-display-style="italic"><toc-entry level="section" bold="off">Sec. 25D. Residential clean energy credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H710ACF76EFFA43A49A9C068B84ED1E6F" commented="no" display-inline="no-display-inline"><enum>(d)</enum><header>Effective dates</header><paragraph id="HF4313A5AB7F349B280D6F082156C53CA"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), the amendments made by this section shall apply to expenditures made after December 31, 2021.</text></paragraph><paragraph id="id48A2C71F33844445AC07DECE6F57250F"><enum>(2)</enum><header>Residential clean energy credit for battery storage technology; certain expenditures disallowed</header><text>The amendments made by subsection (b) shall apply to expenditures made after December 31, 2022.</text></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HA321D917154F4A438CFF94FB8838709C" section-type="subsequent-section"><enum>13303.</enum><header>Energy efficient commercial buildings deduction</header><subsection id="H5F0ED30916794F49AEFE0AF7660A76BA"><enum>(a)</enum><header>In general</header><paragraph commented="no" id="id9F4B8305265D4C0BAE368E1D2FF7BF35"><enum>(1)</enum><header>Maximum amount of deduction</header><text>Subsection (b) of <external-xref legal-doc="usc" parsable-cite="usc/26/179D">section 179D</external-xref> is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id2C76B20472794EFDBD4130BB3ABA37AA" changed="added" reported-display-style="italic"><subsection commented="no" id="id70EF5B2CECD14A29913FB4FB30A34E88"><enum>(b)</enum><header>Maximum amount of deduction</header><paragraph id="idE3BEBAED8A1E4FE1A4724AA368431B8E" commented="no"><enum>(1)</enum><header>In general</header><text>The deduction under subsection (a) with respect to any building for any taxable year shall not exceed the excess (if any) of—</text><subparagraph id="id94FFB9978E604696B53C5D779B2145D8" commented="no"><enum>(A)</enum><text>the product of—</text><clause id="idE122E7BC2D8343BB849E22DDAB5680B5" commented="no"><enum>(i)</enum><text>the applicable dollar value, and</text></clause><clause id="idCD1DE333425A45A68D9DA349358EBB5A" commented="no"><enum>(ii)</enum><text>the square footage of the building, over</text></clause></subparagraph><subparagraph id="id57434DFA76E44A3DADDFA1E36522D641" commented="no"><enum>(B)</enum><text>the aggregate amount of the deductions under subsections (a) and (f) with respect to the building for the 3 taxable years immediately preceding such taxable year (or, in the case of any such deduction allowable to a person other than the taxpayer, for any taxable year ending during the 4-taxable-year period ending with such taxable year).</text></subparagraph></paragraph><paragraph id="idF8176DD729EE4A408AE1EA977C665FF7" commented="no"><enum>(2)</enum><header>Applicable dollar value</header><text>For purposes of paragraph (1)(A)(i), the applicable dollar value shall be an amount equal to $0.50 increased (but not above $1.00) by $0.02 for each percentage point by which the total annual energy and power costs for the building are certified to be reduced by a percentage greater than 25 percent.</text></paragraph><paragraph id="idD97128F4A143449E89BBE550D632434E" display-inline="no-display-inline" commented="no"><enum>(3)</enum><header>Increased deduction amount for certain property</header><subparagraph id="id0CAD8010CD78432ABFBF7401C4F7AD51" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any property which satisfies the requirements of subparagraph (B), paragraph (2) shall be applied by substituting <quote>$2.50</quote> for <quote>$0.50</quote>, <quote>$.10</quote> for <quote>$.02</quote>, and <quote>$5.00</quote> for <quote>$1.00</quote>.</text></subparagraph><subparagraph id="id5BC8ECF70A774289B170D21EF693058B" commented="no"><enum>(B)</enum><header>Property requirements</header><text display-inline="yes-display-inline">In the case of any energy efficient commercial building property, energy efficient building retrofit property, or property installed pursuant to a qualified retrofit plan, such property shall meet the requirements of this subparagraph if — </text><clause id="idB6153C07E2D44C90A795DAC1CE5F83FF" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">installation of such property begins prior to the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (4)(A) and (5), or</text></clause><clause id="id97E347D0937A4DE28263F86CBEA5E5EE" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">installation of such property satisfies the requirements of paragraphs (4)(A) and (5).</text></clause></subparagraph></paragraph><paragraph id="idB73200C6519C4EA1B0160ED27BE3354F" commented="no"><enum>(4)</enum><header>Prevailing wage requirements</header><subparagraph id="idF2B2FE0DF0624C3B9741F1F83BE39263" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The requirements described in this subparagraph with respect to any property are that the taxpayer shall ensure that any laborers and mechanics employed by the taxpayer or any contractor or subcontractor in the installation of any property shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality in which such property is located as most recently determined by the Secretary of Labor, in accordance with subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code.</text></subparagraph><subparagraph id="idE2A900B293654010A7223E173F8C3061" commented="no"><enum>(B)</enum><header>Correction and penalty related to failure to satisfy wage requirements</header><text display-inline="yes-display-inline">Rules similar to the rules of section 45(b)(7)(B) shall apply.</text></subparagraph></paragraph><paragraph id="id308E99CFB69F4DDCBA3930DEA2C32F72" commented="no"><enum>(5)</enum><header>Apprenticeship requirements</header><text display-inline="yes-display-inline">Rules similar to the rules of section 45(b)(8) shall apply.</text></paragraph><paragraph commented="no" id="id577EC8B56409402CAFF52CD181673266"><enum>(6)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of administering the requirements of this subsection.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph commented="no" id="id976531944F66435BAF05231FF5CA007C"><enum>(2)</enum><header>Modification of efficiency standard</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D(c)(1)(D)</external-xref> is amended by striking <quote>50 percent</quote> and inserting <quote>25 percent</quote>.</text></paragraph><paragraph id="idD887BDFC7EB648F6AD3C93D7C84C2D19"><enum>(3)</enum><header>Reference Standard</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D(c)(2)</external-xref> is amended by striking <quote>the most recent</quote> and inserting the following:</text><quoted-block style="OLC" display-inline="yes-display-inline" id="idCD5E635D9B8344928268495CA516E7C9" changed="added" reported-display-style="italic"><text>the more recent of—</text><subparagraph id="idC8CDFE0A8C254887943E8371B9AA6F60"><enum>(A)</enum><text>Standard 90.1-2007 published by the American Society of Heating, Refrigerating, and Air Conditioning Engineers and the Illuminating Engineering Society of North America, or</text></subparagraph><subparagraph id="idA6DE8C8FCFE64E08B09B307EE524FD1F"><enum>(B)</enum><text>the most recent</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id55246E7677494512A6C89B1AD378BC71" commented="no"><enum>(4)</enum><header>Final determination; extension of period; placed in service deadline</header><text>Subparagraph (B) of section 179D(c)(2), as amended by paragraph (3), is amended—</text><subparagraph id="idFB74D82D9BDC428792AC311EC2216610" commented="no"><enum>(A)</enum><text>by inserting <quote>for which the Department of Energy has issued a final determination and</quote> before <quote>which has been affirmed</quote>,</text></subparagraph><subparagraph commented="no" id="id28FA1645771D47CB9451298DCFEBC628"><enum>(B)</enum><text>by striking <quote>2 years</quote> and inserting <quote>4 years</quote>, and</text></subparagraph><subparagraph id="idC083904887EB444280EEC8B5FA1ECA44" commented="no"><enum>(C)</enum><text>by striking <quote>that construction of such property begins</quote> and inserting <quote>such property is placed in service</quote>.</text></subparagraph></paragraph><paragraph commented="no" id="idC89000063D31470AAFD947BB4FABD4CE"><enum>(5)</enum><header>Elimination of partial allowance</header><subparagraph commented="no" id="idE7B81F97622C409D94ABBFB4F6CECB0B"><enum>(A)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D(d)</external-xref> is amended—</text><clause commented="no" id="idE9ED9366F4D84DA28E9DB49134B295DB"><enum>(i)</enum><text>by striking paragraph (1), and</text></clause><clause commented="no" id="id7CB2AD57406C4557A74BFAAC38E3ACA6"><enum>(ii)</enum><text>by redesignating paragraphs (2) through (6) as paragraphs (1) through (5), respectively.</text></clause></subparagraph><subparagraph commented="no" id="id0503CBE82C82468CA86CC5853299BBE7"><enum>(B)</enum><header>Conforming amendments</header><clause commented="no" id="idA2746793EA83447EAE58C89B261E8749"><enum>(i)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D(c)(1)(D)</external-xref> is amended—</text><subclause commented="no" id="id3380468D481D486781D57A24232D5504"><enum>(I)</enum><text>by striking <quote>subsection (d)(6)</quote> and inserting <quote>subsection (d)(5)</quote>, and</text></subclause><subclause commented="no" id="id357BF408CEBF425AA0C3E28AB13DA418"><enum>(II)</enum><text>by striking <quote>subsection (d)(2)</quote> and inserting <quote>subsection (d)(1)</quote>.</text></subclause></clause><clause commented="no" id="id161FB90D4700470FB6B831DF0F94929B"><enum>(ii)</enum><text>Paragraph (2)(A) of section 179D(d), as redesignated by subparagraph (A), is amended by striking <quote>paragraph (2)</quote> and inserting <quote>paragraph (1)</quote>.</text></clause><clause commented="no" id="id884ADF2BE01847059963E461A43F3AD7"><enum>(iii)</enum><text>Paragraph (4) of section 179D(d), as redesignated by subparagraph (A), is amended by striking <quote>paragraph (3)(B)(iii)</quote> and inserting <quote>paragraph (2)(B)(iii)</quote>.</text></clause><clause commented="no" id="idC1EE5B8B53104F7CB4743DFD5897AABC"><enum>(iv)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D</external-xref> is amended by striking subsection (f).</text></clause><clause commented="no" id="id7E954FCB17634CC4919A2410CF0DC42B"><enum>(v)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D(h)</external-xref> is amended by striking <quote>or (d)(1)(A)</quote>.</text></clause></subparagraph></paragraph><paragraph id="id341030853EF341D7BD324D1625AF7E05" commented="no"><enum>(6)</enum><header>Allocation of deduction by certain tax-exempt entities</header><text>Paragraph (3) of section 179D(d), as redesignated by paragraph (5)(A), is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idEEA55721C92E4DD0B22A129A51930F5E" changed="added" reported-display-style="italic"><paragraph commented="no" id="id05625C3820F14193AFE9C985829F61DA"><enum>(3)</enum><header>Allocation of deduction by certain tax-exempt entities</header><subparagraph commented="no" id="id0CCC235F27044B53994E0BE3F6664D4A"><enum>(A)</enum><header>In general</header><text>In the case of energy efficient commercial building property installed on or in property owned by a specified tax-exempt entity, the Secretary shall promulgate regulations or guidance to allow the allocation of the deduction to the person primarily responsible for designing the property in lieu of the owner of such property. Such person shall be treated as the taxpayer for purposes of this section.</text></subparagraph><subparagraph id="id046420B9C9B2457F870C4D21246915C6" commented="no"><enum>(B)</enum><header>Specified tax-exempt entity</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term <term>specified tax-exempt entity</term> means—</text><clause id="id081496CDA5A64A6AA521C61A9F85FFD7" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">the United States, any State or political subdivision thereof, any possession of the United States, or any agency or instrumentality of any of the foregoing, </text></clause><clause id="id6A1886B0D4AD4EE7B5E94D23F4725EDD" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">an Indian tribal government (as defined in section 30D(g)(9)) or Alaska Native Corporation (as defined in section 3 of the Alaska Native Claims Settlement Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1602">43 U.S.C. 1602(m)</external-xref>), and</text></clause><clause id="idA83F4AD9525B474C88E1ED52FFE4C7CD" commented="no"><enum>(iii)</enum><text>any organization exempt from tax imposed by this chapter.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph commented="no" id="idEFD56C54F0054D99839436BA348C092C"><enum>(7)</enum><header>Alternative deduction for energy efficient building retrofit property</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D</external-xref>, as amended by the preceding provisions of this section, is amended by inserting after subsection (e) the following new subsection:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idA02D8EF31891481285E2649F4B979618" changed="added" reported-display-style="italic"><subsection id="id435B9275281840D18293018CDCF55D73" commented="no"><enum>(f)</enum><header>Alternative deduction for energy efficient building retrofit property</header><paragraph id="id31C340E621F8459480D1D87259A18161" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of a taxpayer which elects (at such time and in such manner as the Secretary may provide) the application of this subsection with respect to any qualified building, there shall be allowed as a deduction for the taxable year which includes the date of the qualifying final certification with respect to the qualified retrofit plan of such building, an amount equal to the lesser of—</text><subparagraph id="id415272F518BF4C609468C544F7A5C289" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">the excess described in subsection (b) (determined by substituting <quote>energy use intensity</quote> for <quote>total annual energy and power costs</quote> in paragraph (2) thereof), or</text></subparagraph><subparagraph id="id1864B53BAF9B4C3897FBBA39F71A60D4" commented="no"><enum>(B)</enum><text>the aggregate adjusted basis (determined after taking into account all adjustments with respect to such taxable year other than the reduction under subsection (e)) of energy efficient building retrofit property placed in service by the taxpayer pursuant to such qualified retrofit plan.</text></subparagraph></paragraph><paragraph id="id105E36594F5C4FA3863CF6C0C855A2D1" commented="no"><enum>(2)</enum><header>Qualified retrofit plan</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>qualified retrofit plan</quote> means a written plan prepared by a qualified professional which specifies modifications to a building which, in the aggregate, are expected to reduce such building’s energy use intensity by 25 percent or more in comparison to the baseline energy use intensity of such building. Such plan shall provide for a qualified professional to—</text><subparagraph id="idF2FFA46B71DC4FD0885284546A899D69" commented="no"><enum>(A)</enum><text>as of any date during the 1-year period ending on the date on which the property installed pursuant to such plan is placed in service, certify the energy use intensity of such building as of such date,</text></subparagraph><subparagraph id="id7CFBF9EF733445F68A98AC59DE0321AB" commented="no"><enum>(B)</enum><text>certify the status of property installed pursuant to such plan as meeting the requirements of subparagraphs (B) and (C) of paragraph (3), and</text></subparagraph><subparagraph id="id74F835B220D9412ABDCE8447E6772F5D" commented="no"><enum>(C)</enum><text display-inline="yes-display-inline">as of any date that is more than 1 year after the date on which the property installed pursuant to such plan is placed in service, certify the energy use intensity of such building as of such date.</text></subparagraph></paragraph><paragraph id="id9F76EA37885B470E926B3987AFC69E86" commented="no"><enum>(3)</enum><header>Energy efficient building retrofit property</header><text>For purposes of this subsection, the term <quote>energy efficient building retrofit property</quote> means property—</text><subparagraph id="id20CC6A2038EC467F851CA484B62D02C6" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">with respect to which depreciation (or amortization in lieu of depreciation) is allowable,</text></subparagraph><subparagraph id="id2973BACB42CE42BD89538354853392A6" commented="no"><enum>(B)</enum><text>which is installed on or in any qualified building,</text></subparagraph><subparagraph id="id188515E3473F444783CCF4726CA38F71" commented="no"><enum>(C)</enum><text>which is installed as part of—</text><clause id="idA1A8800B98624A6FB7A69AF4ECD85FF2" commented="no"><enum>(i)</enum><text>the interior lighting systems,</text></clause><clause id="idB92845A214CD41599E65D214C13E793E" commented="no"><enum>(ii)</enum><text>the heating, cooling, ventilation, and hot water systems, or</text></clause><clause id="id806747F80C9947F99BA0EAA2D3EB0C6A" commented="no"><enum>(iii)</enum><text>the building envelope, and</text></clause></subparagraph><subparagraph id="id2AE55D5EB2184B2489F8D4BD3979429C" commented="no"><enum>(D)</enum><text>which is certified in accordance with paragraph (2)(B) as meeting the requirements of subparagraphs (B) and (C). </text></subparagraph></paragraph><paragraph id="idDE2BABDEB2DD484FB02F02F38225F2F8" commented="no"><enum>(4)</enum><header>Qualified building</header><text>For purposes of this subsection, the term <quote>qualified building</quote> means any building which—</text><subparagraph id="idC6AA070332A44D2294E50BD3C4A93BF1" commented="no"><enum>(A)</enum><text>is located in the United States, and</text></subparagraph><subparagraph id="idD57843297E7A474C882EDE4E6D0E3CB7" commented="no"><enum>(B)</enum><text>was originally placed in service not less than 5 years before the establishment of the qualified retrofit plan with respect to such building.</text></subparagraph></paragraph><paragraph id="id487B006E5E974CD7A1E02062CDD303EB" commented="no"><enum>(5)</enum><header>Qualifying final certification</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>qualifying final certification</quote> means, with respect to any qualified retrofit plan, the certification described in paragraph (2)(C) if the energy use intensity certified in such certification is not more than 75 percent of the baseline energy use intensity of the building.</text></paragraph><paragraph id="id9D5F0C0B0F3F490EBDFC9F87A735E950" commented="no"><enum>(6)</enum><header>Baseline energy use intensity</header><subparagraph id="idADD99FF64AF14619A42E928D8CB1B463" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>baseline energy use intensity</quote> means the energy use intensity certified under paragraph (2)(A), as adjusted to take into account weather.</text></subparagraph><subparagraph id="id36D27E1FA08545FF8196055B94321F63" commented="no"><enum>(B)</enum><header>Determination of adjustment</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), the adjustments described in such subparagraph shall be determined in such manner as the Secretary may provide.</text></subparagraph></paragraph><paragraph id="idE478C0F9F43848B081616A8D998F7B32" commented="no"><enum>(7)</enum><header>Other definitions</header><text display-inline="yes-display-inline">For purposes of this subsection—</text><subparagraph id="id247E0D90149140E79014FCFAF59B5A31" commented="no"><enum>(A)</enum><header>Energy use intensity</header><text>The term <quote>energy use intensity</quote> means the annualized, measured site energy use intensity determined in accordance with such regulations or other guidance as the Secretary may provide and measured in British thermal units.</text></subparagraph><subparagraph id="id01D529508317411B9560383BF9FC882B" commented="no"><enum>(B)</enum><header>Qualified professional</header><text>The term <quote>qualified professional</quote> means an individual who is a licensed architect or a licensed engineer and meets such other requirements as the Secretary may provide.</text></subparagraph></paragraph><paragraph id="id244EB88728F04CF697A03D472BCAEC82" commented="no"><enum>(8)</enum><header>Coordination with deduction otherwise allowed under subsection <enum-in-header>(a)</enum-in-header></header><subparagraph id="idA7B8D21425224B5E853E22E658817EBF" commented="no"><enum>(A)</enum><header>In general</header><text>In the case of any building with respect to which an election is made under paragraph (1), the term <quote>energy efficient commercial building property</quote> shall not include any energy efficient building retrofit property with respect to which a deduction is allowable under this subsection.</text></subparagraph><subparagraph id="id3D488F3DBF6C486887717300DFC00886" commented="no"><enum>(B)</enum><header>Certain rules not applicable</header><clause id="id9F487B62F0A74A03B373765AF50BD698" commented="no"><enum>(i)</enum><header>In general</header><text>Except as provided in clause (ii), subsection (d) shall not apply for purposes of this subsection.</text></clause><clause id="id62CF49A9E5FA4FF39341541C22278540" commented="no"><enum>(ii)</enum><header>Allocation of deduction by certain tax-exempt entities</header><text>Rules similar to subsection (d)(3) shall apply for purposes of this subsection.</text></clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph commented="no" id="id81B42FF420AE43BA9961A84D0973028F"><enum>(8)</enum><header>Inflation adjustment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D(g)</external-xref> is amended—</text><subparagraph commented="no" id="id57908B8869EF45588C46C4864B6BD72A"><enum>(A)</enum><text>by striking <quote>2020</quote> and inserting <quote>2022</quote>,</text></subparagraph><subparagraph commented="no" id="id5B4EC1630AE74720A58857F2BF918917"><enum>(B)</enum><text>by striking <quote>or subsection (d)(1)(A)</quote>, and</text></subparagraph><subparagraph commented="no" id="id8154EB76660E4B09B64CE4D6A0DC2A2F"><enum>(C)</enum><text>by striking <quote>2019</quote> and inserting <quote>2021</quote>.</text></subparagraph></paragraph></subsection><subsection id="H56A4190EED3E41EAAC2FD36B11D99890"><enum>(b)</enum><header>Application to real estate investment trust earnings and profits</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/312">Section 312(k)(3)(B)</external-xref> is amended—</text><paragraph id="H8BF1D251BD6B4542A985126A7FE96556"><enum>(1)</enum><text>by striking <quote>For purposes of computing the earnings and profits of a corporation</quote> and inserting the following: </text><quoted-block style="OLC" id="HE1CC0CA48F204775BA6D518FF1B94E0C" display-inline="no-display-inline" changed="added" reported-display-style="italic"><clause id="HFD84FCA1C6224E8C906211363AC05DF1"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of computing the earnings and profits of a corporation, except as provided in clause (ii)</text></clause><after-quoted-block>, and</after-quoted-block></quoted-block></paragraph><paragraph id="H8E4C99F830C243AF87AA94A6B8C59D46"><enum>(2)</enum><text>by adding at the end the following new clause: </text><quoted-block style="OLC" id="HB26887D099F849248AF9B0956AF1F90E" display-inline="no-display-inline" changed="added" reported-display-style="italic"><clause id="H2758515D53C943968CA3873579577F53"><enum>(ii)</enum><header>Special rule</header><text display-inline="yes-display-inline">In the case of a corporation that is a real estate investment trust, any amount deductible under section 179D shall be allowed in the year in which the property giving rise to such deduction is placed in service (or, in the case of energy efficient building retrofit property, the year in which the qualifying final certification is made).</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="HC3EBD1E050B2440EA9F94B3AFDDF007F"><enum>(c)</enum><header>Conforming amendment</header><text display-inline="yes-display-inline">Paragraph (1) of section 179D(d), as redesignated by subsection (a)(5)(A), is amended by striking <quote>not later than the date that is 2 years before the date that construction of such property begins</quote> and inserting <quote>not later than the date that is 4 years before the date such property is placed in service</quote>. </text></subsection><subsection commented="no" display-inline="no-display-inline" id="H8371051E1CB64310862450AE6D19C803"><enum>(d)</enum><header>Effective date</header><paragraph id="HDC7DAA698FD24DF180F662FF2300B43D"><enum>(1)</enum><header>In general</header><text>Except as otherwise provided in this subsection, the amendments made by this section shall apply to taxable years beginning after December 31, 2022.</text></paragraph><paragraph id="H4694C0577AD04887AA24A589E90D35E1"><enum>(2)</enum><header>Alternative deduction for energy efficient building retrofit property</header><text>Subsection (f) of <external-xref legal-doc="usc" parsable-cite="usc/26/179D">section 179D</external-xref> of the Internal Revenue Code of 1986 (as amended by this section), and any other provision of such section solely for purposes of applying such subsection, shall apply to property placed in service after December 31, 2022 (in taxable years ending after such date) if such property is placed in service pursuant to qualified retrofit plan (within the meaning of such section) established after such date. </text></paragraph></subsection></section><section id="H6C720E320E1A4D40AAAFF64AC9A46FA4" display-inline="no-display-inline" section-type="subsequent-section"><enum>13304.</enum><header>Extension, increase, and modifications of new energy efficient home credit</header><subsection id="HA516469A1EC342CEB6D9CF1B60110E9E"><enum>(a)</enum><header>Extension of credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45L">Section 45L(g)</external-xref> is amended by striking <quote>December 31, 2021</quote> and inserting <quote>December 31, 2032</quote>.</text></subsection><subsection id="H0026AFA8D3234BA5A311CBA511C9621B"><enum>(b)</enum><header>Increase in credit amounts</header><text display-inline="yes-display-inline">Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/45L">section 45L(a)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" id="H6F386D9E41FC403CBA9ECDEF929717C5" display-inline="no-display-inline" changed="added" reported-display-style="italic"><paragraph id="HC938B9B90E5E4B19B683137B7B0805F9"><enum>(2)</enum><header>Applicable amount</header><text display-inline="yes-display-inline">For purposes of paragraph (1), the applicable amount is an amount equal to—</text><subparagraph id="H617A014C44A043EA97FBA6A454383BDC"><enum>(A)</enum><text display-inline="yes-display-inline">in the case of a dwelling unit which is eligible to participate in the Energy Star Residential New Construction Program or the Energy Star Manufactured New Homes program—</text><clause id="H8719C48B825C4335AAD3B164BD582B2F"><enum>(i)</enum><text>which meets the requirements of subsection (c)(1)(A) (and which does not meet the requirements of subsection (c)(1)(B)), $2,500, and</text></clause><clause id="HB143D29CD33E4DA1AD9F46AEF79E87F2"><enum>(ii)</enum><text>which meets the requirements of subsection (c)(1)(B), $5,000, and</text></clause></subparagraph><subparagraph id="H7747E66232C64B868668E704333D25BA"><enum>(B)</enum><text display-inline="yes-display-inline">in the case of a dwelling unit which is part of a building eligible to participate in the Energy Star Multifamily New Construction Program—</text><clause id="HC059F65BB105431AB002F053451B6EC0"><enum>(i)</enum><text>which meets the requirements of subsection (c)(1)(A) (and which does not meet the requirements of subsection (c)(1)(B)), $500, and</text></clause><clause id="H72691B9A95CA4E5CAC5DB021E027528A"><enum>(ii)</enum><text>which meets the requirements of subsection (c)(1)(B), $1,000.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H6F3805BE3EA945D28906E76119E392D4"><enum>(c)</enum><header>Modification of energy saving requirements</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45L">Section 45L(c)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" id="H4B6CE58838294BEEBF29B617C267F8DD" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subsection id="H27391FFB18DD4B2CB1FC674C12D40C3A"><enum>(c)</enum><header>Energy saving requirements</header><paragraph id="H4159159EDF0048B280A005E09D1821E4"><enum>(1)</enum><header>In general</header><subparagraph id="idCDC323B9F596473BA561FAC8AC1EB0B0"><enum>(A)</enum><header>In general</header><text>A dwelling unit meets the requirements of this subparagraph if such dwelling unit meets the requirements of paragraph (2) or (3) (whichever is applicable).</text></subparagraph><subparagraph id="H2EA59A9374234B27A1A8386D666A493B"><enum>(B)</enum><header>Zero energy ready home program</header><text>A dwelling unit meets the requirements of this subparagraph if such dwelling unit is certified as a zero energy ready home under the zero energy ready home program of the Department of Energy as in effect on January 1, 2023 (or any successor program determined by the Secretary).</text></subparagraph></paragraph><paragraph id="H18A2307ABF1446518C75AD40CAD13C60"><enum>(2)</enum><header>Single-family home requirements</header><text>A dwelling unit meets the requirements of this paragraph if—</text><subparagraph id="HC4D7A5EB97684D91916F1F58A2E5A193"><enum>(A)</enum><text display-inline="yes-display-inline">such dwelling unit meets—</text><clause id="HCBF89DAF385C4FD8A6C9ADE7C780369E"><enum>(i)</enum><subclause commented="no" display-inline="yes-display-inline" id="id5AF538CB0FAF4EFA8A63DB24208CBE3B"><enum>(I)</enum><text>in the case of a dwelling unit acquired before January 1, 2025, the Energy Star Single-Family New Homes National Program Requirements 3.1, or</text></subclause><subclause id="idEB0A2CDC550C40F7A11C9E0AECA6254F" indent="up1"><enum>(II)</enum><text>in the case of a dwelling unit acquired after December 31, 2024, the Energy Star Single-Family New Homes National Program Requirements 3.2, and</text></subclause></clause><clause id="HCFBC3732D9A1490F902716A5AC7C2E91"><enum>(ii)</enum><text>the most recent Energy Star Single-Family New Homes Program Requirements applicable to the location of such dwelling unit (as in effect on the latter of January 1, 2023, or January 1 of two calendar years prior to the date the dwelling unit was acquired), or</text></clause></subparagraph><subparagraph id="HF1BA7EB61AAE4D43B2F3BFAD9DDB8441"><enum>(B)</enum><text display-inline="yes-display-inline">such dwelling unit meets the most recent Energy Star Manufactured Home National program requirements as in effect on the latter of January 1, 2023, or January 1 of two calendar years prior to the date such dwelling unit is acquired.</text></subparagraph></paragraph><paragraph id="HCD3DCC35DFB3487994EA29BF4380D288"><enum>(3)</enum><header>Multi-family home requirements</header><text>A dwelling unit meets the requirements of this paragraph if—</text><subparagraph id="HF82842191F42441F9C6D978C4732B618"><enum>(A)</enum><text display-inline="yes-display-inline">such dwelling unit meets the most recent Energy Star Multifamily New Construction National Program Requirements (as in effect on either January 1, 2023, or January 1 of three calendar years prior to the date the dwelling was acquired, whichever is later), and</text></subparagraph><subparagraph id="H81283EAA55CA4B7EA1BF1A5581C465EB"><enum>(B)</enum><text display-inline="yes-display-inline">such dwelling unit meets the most recent Energy Star Multifamily New Construction Regional Program Requirements applicable to the location of such dwelling unit (as in effect on either January 1, 2023, or January 1 of three calendar years prior to the date the dwelling was acquired, whichever is later).</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H867FB1AF84214753BBB626492BAA1471"><enum>(d)</enum><header>Prevailing wage requirement</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/45L">Section 45L</external-xref> is amended by redesignating subsection (g) as subsection (h) and by inserting after subsection (f) the following new subsection:</text><quoted-block style="OLC" id="H3882A2A39F0841678BE4F0BF2CD6ED86" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subsection id="H6A16801DC1904748A3DC496585D7D25C"><enum>(g)</enum><header>Prevailing wage requirement</header><paragraph id="H902737598F804AADB590FCAAB488E9C0"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of a qualifying residence described in subsection (a)(2)(B) meeting the prevailing wage requirements of paragraph (2)(A), the credit amount allowed with respect to such residence shall be—</text><subparagraph id="H6D907C8208B542EDB82FCF3C5207A419"><enum>(A)</enum><text>$2,500 in the case of a residence which meets the requirements of subparagraph (A) of subsection (c)(1) (and which does not meet the requirements of subparagraph (B) of such subsection), and</text></subparagraph><subparagraph id="HDECF6EA08E3E4234B5B230D0395D059E"><enum>(B)</enum><text>$5,000 in the case of a residence which meets the requirements of subsection (c)(1)(B).</text></subparagraph></paragraph><paragraph id="H00ABC95CDFDE4A848CC652463921A6CA"><enum>(2)</enum><header>Prevailing wage requirements</header><subparagraph id="H28FA2CAA273B436195245C4325AC5FBF"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The requirements described in this subparagraph with respect to any qualified residence are that the taxpayer shall ensure that any laborers and mechanics employed by the taxpayer or any contractor or subcontractor in the construction of such residence shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality in which such residence is located as most recently determined by the Secretary of Labor, in accordance with subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code.</text></subparagraph><subparagraph id="H79B32FAD443443F799AABCAECF2B12D1"><enum>(B)</enum><header>Correction and penalty related to failure to satisfy wage requirements</header><text display-inline="yes-display-inline">Rules similar to the rules of section 45(b)(7)(B) shall apply.</text></subparagraph></paragraph><paragraph id="HDA1720D36D6C4E81BA7CB6B3791A820F" commented="no"><enum>(3)</enum><header>Regulations and guidance</header><text display-inline="yes-display-inline">The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of administering the requirements of this subsection.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HDE63EA451CA54BDD95D36396DD7A7D9F"><enum>(e)</enum><header>Basis adjustment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45L">Section 45L(e)</external-xref> is amended by inserting after the first sentence the following: <quote>This subsection shall not apply for purposes of determining the adjusted basis of any building under section 42.</quote>.</text></subsection><subsection id="id924236E0600647ECA9F4EC8E3DB7F4A8"><enum>(f)</enum><header>Effective dates</header><paragraph id="idE5DAC412935843859D6217E5BF163109"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided in paragraph (2), the amendments made by this section shall apply to dwelling units acquired after December 31, 2022.</text></paragraph><paragraph id="idE063EC518E7A441EB6DD78E3EBBFAC73"><enum>(2)</enum><header>Extension of credit</header><text display-inline="yes-display-inline">The amendments made by subsection (a) shall apply to dwelling units acquired after December 31, 2021. </text></paragraph></subsection></section></part><part id="H7EEA280204BC498FAA21B0A953838930"><enum>4<?LEXA-Enum 4?></enum><header>Clean Vehicles</header><section id="id4640CE8DF2144D94B35DEC22F00FA7E9"><enum>13401.</enum><header>Clean vehicle credit</header><subsection id="idC6295DD4E0A245118C26E7A62D203C8E"><enum>(a)</enum><header>Per vehicle dollar limitation</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30D">Section 30D(b)</external-xref> is amended by striking paragraphs (2) and (3) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id0AF1A07366864290B8F08B1066BED230" changed="added" reported-display-style="italic"><paragraph id="idC44901E75AE743219181EA599CE92EAF"><enum>(2)</enum><header>Critical minerals</header><text>In the case of a vehicle with respect to which the requirement described in subsection (e)(1)(A) is satisfied, the amount determined under this paragraph is $3,750.</text></paragraph><paragraph id="id83CFDCD625E84E5F9C841B2038EBB6B8"><enum>(3)</enum><header>Battery components</header><text>In the case of a vehicle with respect to which the requirement described in subsection (e)(2)(A) is satisfied, the amount determined under this paragraph is $3,750.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id519475A5B19A4DDEA6EBC66D10B2D760"><enum>(b)</enum><header>Final assembly</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30D">Section 30D(d)</external-xref> is amended—</text><paragraph id="idDFC431F8E8F2460B811883A1C32F7DA0"><enum>(1)</enum><text>in paragraph (1)—</text><subparagraph id="idEAC977476B1B49518E6083B65F17CBEA"><enum>(A)</enum><text>in subparagraph (E), by striking <quote>and</quote> at the end,</text></subparagraph><subparagraph id="idAAD6401482DD4387928CA530A3608823"><enum>(B)</enum><text>in subparagraph (F)(ii), by striking the period at the end and inserting <quote>, and</quote>, and</text></subparagraph><subparagraph id="id105332A501EB4658A213D53E3EA6F58D"><enum>(C)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idBFE0561DD3E1465D84B132F62DD6F070" changed="added" reported-display-style="italic"><subparagraph id="idF3D6E9C4DFF045D0AA457D3B625AE715" commented="no"><enum>(G)</enum><text>the final assembly of which occurs within North America.</text></subparagraph><after-quoted-block>,</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="idC46B5FFB304B499C81AB0E87333D9BE3"><enum>(2)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id8CF22BD583664042A2478D49FDE40AF0" changed="added" reported-display-style="italic"><paragraph id="idEB3800D528764F7F9F3C464C3DD7CF24"><enum>(5)</enum><header>Final assembly</header><text>For purposes of paragraph (1)(G), the term <quote>final assembly</quote> means the process by which a manufacturer produces a new clean vehicle at, or through the use of, a plant, factory, or other place from which the vehicle is delivered to a dealer or importer with all component parts necessary for the mechanical operation of the vehicle included with the vehicle, whether or not the component parts are permanently installed in or on the vehicle.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="id7A1F8195A3BA4BDCB125657C9FD8AF9C"><enum>(c)</enum><header>Definition of new clean vehicle</header><paragraph id="id09DE99793A7946D881C656AFD3E914D2"><enum>(1)</enum><header>In general</header><text>Section 30D(d), as amended by the preceding provisions of this section, is amended—</text><subparagraph id="id359F9EBDB7A347DF97805D327C042E0F"><enum>(A)</enum><text>in the heading, by striking <quote><header-in-text style="tax" level="subsection">qualified plug-in electric drive motor</header-in-text></quote> and inserting <quote><header-in-text style="tax" level="subsection">clean</header-in-text></quote>, </text></subparagraph><subparagraph id="id962E7DCED89F4DA78C1EADCDB8C4CC03"><enum>(B)</enum><text>in paragraph (1)—</text><clause id="idBD72BF6CEF9C4773A1DA40AD41D60B60"><enum>(i)</enum><text>in the matter preceding subparagraph (A), by striking <quote>qualified plug-in electric drive motor</quote> and inserting <quote>clean</quote>,</text></clause><clause id="id7CC4B3D9BBF9422A8B8865B0AE200D80" commented="no"><enum>(ii)</enum><text>in subparagraph (C), by inserting <quote>qualified</quote> before <quote>manufacturer</quote>,</text></clause><clause id="id9D8DB5F1CC66420591855015A644FA07"><enum>(iii)</enum><text>in subparagraph (F)—</text><subclause id="id60AAB63AF7FD404A91CC57E8BE727F4F"><enum>(I)</enum><text>in clause (i), by striking <quote>4</quote> and inserting <quote>7</quote>, and</text></subclause><subclause id="id8C358746CFAE48D1839958D78F1DF5DB"><enum>(II)</enum><text>in clause (ii), by striking <quote>and</quote> at the end,</text></subclause></clause><clause id="idAF4EEA6DF3F2415C92505B0B381C3F74"><enum>(iv)</enum><text>in subparagraph (G), by striking the period at the end and inserting <quote>, and</quote>, and</text></clause><clause id="id03862E1AC3114104B66DFB0871B3EF09"><enum>(v)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id2071FF6DB61F4F20BB8549A635B12658" changed="added" reported-display-style="italic"><subparagraph id="idA45507DD1D8A4A06869C7C410BE63559"><enum>(H)</enum><text display-inline="yes-display-inline">for which the person who sells any vehicle to the taxpayer furnishes a report to the taxpayer and to the Secretary, at such time and in such manner as the Secretary shall provide, containing—</text><clause id="id327F88D34691474DAEE50016D64895F1"><enum>(i)</enum><text display-inline="yes-display-inline">the name and taxpayer identification number of the taxpayer,</text></clause><clause id="idEA771B9B405C45DABFD9F24D054731AB"><enum>(ii)</enum><text display-inline="yes-display-inline">the vehicle identification number of the vehicle, unless, in accordance with any applicable rules promulgated by the Secretary of Transportation, the vehicle is not assigned such a number,</text></clause><clause id="id75CFE5B00B1F4586907A3DB1B1F0A882"><enum>(iii)</enum><text display-inline="yes-display-inline">the battery capacity of the vehicle,</text></clause><clause id="id5BB04EA60B454B02B81E9505E712BBBB"><enum>(iv)</enum><text display-inline="yes-display-inline">verification that original use of the vehicle commences with the taxpayer, and</text></clause><clause id="id3A864D41125146218EBFBB0B4866DAE3"><enum>(v)</enum><text>the maximum credit under this section allowable to the taxpayer with respect to the vehicle.</text></clause></subparagraph><after-quoted-block>,</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="id868A82262DA6465194DEB2B7E02542C5"><enum>(C)</enum><text>in paragraph (3)—</text><clause id="id1FA7391171AF4E7DB49A3D15DC447FA2"><enum>(i)</enum><text>in the heading, by striking <quote><header-in-text style="tax" level="paragraph">Manufacturer</header-in-text></quote> and inserting <quote><header-in-text style="OLC" level="paragraph">Qualified manufacturer</header-in-text></quote>,</text></clause><clause id="id269C3E264CE44711B6101501CF2520A3"><enum>(ii)</enum><text>by striking <quote>The term <term>manufacturer</term> has the meaning given such term in</quote> and inserting <quote>The term <term>qualified manufacturer</term> means any manufacturer (within the meaning of the</quote>, and</text></clause><clause id="id89BE5B1E813F45DAB5D3D3307C92EB9B"><enum>(iii)</enum><text>by inserting <quote>) which enters into a written agreement with the Secretary under which such manufacturer agrees to make periodic written reports to the Secretary (at such times and in such manner as the Secretary may provide) providing vehicle identification numbers and such other information related to each vehicle manufactured by such manufacturer as the Secretary may require</quote> before the period at the end, and </text></clause></subparagraph><subparagraph id="id5405DF8EC689457B89A77B562BF3DFF9"><enum>(D)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id882CBC9A5A484BC7A56BB59D2C543DB8" changed="added" reported-display-style="italic"><paragraph id="idB5788C68F5C4408B9222F3FB1CAF5773"><enum>(6)</enum><header>New qualified fuel cell motor vehicle</header><text>For purposes of this section, the term <term>new clean vehicle</term> shall include any new qualified fuel cell motor vehicle (as defined in section 30B(b)(3)) which meets the requirements under subparagraphs (G) and (H) of paragraph (1).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="id95515E96CB7B4A349B6C7CB85038B400"><enum>(2)</enum><header>Conforming amendments</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30D">Section 30D</external-xref> is amended—</text><subparagraph id="id27EBF027CE2F494690B1294A1566D36E"><enum>(A)</enum><text>in subsection (a), by striking <quote>new qualified plug-in electric drive motor vehicle</quote> and inserting <quote>new clean vehicle</quote>, and</text></subparagraph><subparagraph id="id4EB493083B5548B2B28F410959DEA6D7"><enum>(B)</enum><text>in subsection (b)(1), by striking <quote>new qualified plug-in electric drive motor vehicle</quote> and inserting <quote>new clean vehicle</quote>.</text></subparagraph></paragraph></subsection><subsection id="id2BFEE17730E6416081554ED2E2F3A733"><enum>(d)</enum><header>Elimination of limitation on number of vehicles eligible for credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30D">Section 30D</external-xref> is amended by striking subsection (e).</text></subsection><subsection id="id9D72B281E81542AA893954F5C3FAF357"><enum>(e)</enum><header>Critical mineral and battery component requirements</header><paragraph id="id4BD4A34F195E4D0EB446AE8F28A3CE04"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30D">Section 30D</external-xref>, as amended by the preceding provisions of this section, is amended by inserting after subsection (d) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idF276C87202F4491095B61ADC19AE8D43" changed="added" reported-display-style="italic"><subsection id="id1EAF668C319245759F35A237EBF96A0C"><enum>(e)</enum><header>Critical mineral and battery component requirements</header><paragraph id="idCA3FF46AC99141A0937AC640807E1923" commented="no"><enum>(1)</enum><header>Critical minerals requirement</header><subparagraph id="id27C26E2210174B8EA14DBF8C637261BC" commented="no"><enum>(A)</enum><header>In general</header><text>The requirement described in this subparagraph with respect to a vehicle is that, with respect to the battery from which the electric motor of such vehicle draws electricity, the percentage of the value of the applicable critical minerals (as defined in section 45X(c)(6)) contained in such battery that were—</text><clause commented="no" id="idD3E80ADC478F4FE5B54DC9BA2175A285"><enum>(i)</enum><text>extracted or processed—</text><subclause commented="no" id="id8E61B69EAB944665A29E54D78B1E743F"><enum>(I)</enum><text>in the United States, or </text></subclause><subclause commented="no" id="idB4C99C22155E4877B993EEAE710FA5E2"><enum>(II)</enum><text>in any country with which the United States has a free trade agreement in effect, or </text></subclause></clause><clause commented="no" id="idB83B8F3E45F342C586392E124C0E5784"><enum>(ii)</enum><text>recycled in North America,</text></clause><continuation-text continuation-text-level="subparagraph">is equal to or greater than the applicable percentage (as certified by the qualified manufacturer, in such form or manner as prescribed by the Secretary).</continuation-text></subparagraph><subparagraph id="id9358FB1864DA472182DB239DCF579418"><enum>(B)</enum><header>Applicable percentage</header><text>For purposes of subparagraph (A), the applicable percentage shall be—</text><clause id="id8C269F022A4246EB8A643677B2BAFCE5"><enum>(i)</enum><text>in the case of a vehicle placed in service after the date on which the proposed guidance described in paragraph (3)(B) is issued by the Secretary and before January 1, 2024, 40 percent,</text></clause><clause id="id6343452C15EE423E9D9880CFFB5A499C"><enum>(ii)</enum><text>in the case of a vehicle placed in service during calendar year 2024, 50 percent,</text></clause><clause id="idB114AC97AF9F4536A2AD476DE1A2E3B3"><enum>(iii)</enum><text>in the case of a vehicle placed in service during calendar year 2025, 60 percent,</text></clause><clause id="id2CB8807D891545F09E7F1F6D9DB41202"><enum>(iv)</enum><text>in the case of a vehicle placed in service during calendar year 2026, 70 percent, and</text></clause><clause id="id7E7B0635E3F4425588CE9D23BF16875C"><enum>(v)</enum><text>in the case of a vehicle placed in service after December 31, 2026, 80 percent.</text></clause></subparagraph></paragraph><paragraph id="id0CCED49034F74F72B70B5E05FCCD1C8D" commented="no"><enum>(2)</enum><header>Battery components</header><subparagraph id="id49A7CD314E8644C989FC1362924C741A" commented="no"><enum>(A)</enum><header>In general</header><text>The requirement described in this subparagraph with respect to a vehicle is that, with respect to the battery from which the electric motor of such vehicle draws electricity, the percentage of the value of the components contained in such battery that were manufactured or assembled in North America is equal to or greater than the applicable percentage (as certified by the qualified manufacturer, in such form or manner as prescribed by the Secretary).</text></subparagraph><subparagraph id="idA7D94D82D0A4404DA21144C8BE097333"><enum>(B)</enum><header>Applicable percentage</header><text>For purposes of subparagraph (A), the applicable percentage shall be—</text><clause id="id2DA457E71D5C48C69AEDAC3CE502C6A8"><enum>(i)</enum><text>in the case of a vehicle placed in service after the date on which the proposed guidance described in paragraph (3)(B) is issued by the Secretary and before January 1, 2024, 50 percent,</text></clause><clause id="id1C5D93452304438B9B3136ED96DE83DF"><enum>(ii)</enum><text>in the case of a vehicle placed in service during calendar year 2024 or 2025, 60 percent,</text></clause><clause id="id156BBAE1DD8A4D4D86B18E20C85C0C5F"><enum>(iii)</enum><text>in the case of a vehicle placed in service during calendar year 2026, 70 percent,</text></clause><clause id="id979CD79BA60B4276A03C6C2AAFFB3BA0"><enum>(iv)</enum><text>in the case of a vehicle placed in service during calendar year 2027, 80 percent,</text></clause><clause id="id2BE3B056E8AD4C68A89031E38223705E"><enum>(v)</enum><text>in the case of a vehicle placed in service during calendar year 2028, 90 percent,</text></clause><clause id="id33E0589D9DAE4A47962027D6DB46155A"><enum>(vi)</enum><text>in the case of a vehicle placed in service after December 31, 2028, 100 percent.</text></clause></subparagraph></paragraph><paragraph commented="no" id="idDE52F683597A4708A3E88C9BDED2A5F8"><enum>(3)</enum><header>Regulations and guidance</header><subparagraph commented="no" id="idD3CA9C310E1846B6B6C62B9827D718C7"><enum>(A)</enum><header>In general</header><text>The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of administering the requirements of this subsection.</text></subparagraph><subparagraph commented="no" id="idD5FFAC88BF13475D9FEBBD2E18FEE0CB"><enum>(B)</enum><header>Deadline for proposed guidance</header><text>Not later than December 31, 2022, the Secretary shall issue proposed guidance with respect to the requirements under this subsection.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id3B23B5C5D2FB4B2AACA943AEEC5BEA38"><enum>(2)</enum><header>Excluded entities</header><text>Section 30D(d), as amended by the preceding provisions of this section, is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id61D107AB6A79447183922C1DEE4BDA4B" changed="added" reported-display-style="italic"><paragraph id="id9BC159BC80BF44C3BB7CA4D40068ED54"><enum>(7)</enum><header>Excluded entities</header><text>For purposes of this section, the term <term>new clean vehicle</term> shall not include—</text><subparagraph id="id613FA2D863524623AD6AED826B1E4CE0"><enum>(A)</enum><text>any vehicle placed in service after December 31, 2024, with respect to which any of the applicable critical minerals contained in the battery of such vehicle (as described in subsection (e)(1)(A)) were extracted, processed, or recycled by a foreign entity of concern (as defined in section 40207(a)(5) of the Infrastructure Investment and Jobs Act (<external-xref legal-doc="usc" parsable-cite="usc/42/18741">42 U.S.C. 18741(a)(5)</external-xref>)), or</text></subparagraph><subparagraph id="id616F3DC4016C4B0087CDEA6B9C0E0D59"><enum>(B)</enum><text>any vehicle placed in service after December 31, 2023, with respect to which any of the components contained in the battery of such vehicle (as described in subsection (e)(2)(A)) were manufactured or assembled by a foreign entity of concern (as so defined).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="id0FC270B6170746E59BF331D7626480F1"><enum>(f)</enum><header>Special rules</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30D">Section 30D(f)</external-xref> is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id5B1F7610F1A84CC3819FE36AE1BF0E5B" changed="added" reported-display-style="italic"><paragraph id="idFDBD4E0CEF84496BA928363A186A68F3"><enum>(8)</enum><header>One credit per vehicle</header><text>In the case of any vehicle, the credit described in subsection (a) shall only be allowed once with respect to such vehicle, as determined based upon the vehicle identification number of such vehicle.</text></paragraph><paragraph id="id541D3953BD4F47F482D5CE42666A31BB"><enum>(9)</enum><header>VIN requirement</header><text>No credit shall be allowed under this section with respect to any vehicle unless the taxpayer includes the vehicle identification number of such vehicle on the return of tax for the taxable year.</text></paragraph><paragraph id="id5C46335DD98444EE868DFA163383AAA2" commented="no"><enum>(10)</enum><header>Limitation based on modified adjusted gross income</header><subparagraph commented="no" id="id31AB396CF8654D9082B8A7E93DF3EA08"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">No credit shall be allowed under subsection (a) for any taxable year if—</text><clause commented="no" id="idDDB1074F09E94E9D90FAD8782E4B9F2B"><enum>(i)</enum><text display-inline="yes-display-inline">the lesser of—</text><subclause commented="no" id="id422A1F480AFF4C9AB9FF63E1878CAA2B"><enum>(I)</enum><text display-inline="yes-display-inline">the modified adjusted gross income of the taxpayer for such taxable year, or</text></subclause><subclause commented="no" id="id9AB74B5F3EF740199B5090E4147BE521"><enum>(II)</enum><text>the modified adjusted gross income of the taxpayer for the preceding taxable year, exceeds</text></subclause></clause><clause commented="no" id="id4D40240ECAB34A8FAB3BEDF03CDA0A46"><enum>(ii)</enum><text>the threshold amount.</text></clause></subparagraph><subparagraph commented="no" id="idCF338609F2994C0F8B05B61E5CC400AB"><enum>(B)</enum><header>Threshold amount</header><text>For purposes of subparagraph (A)(ii), the threshold amount shall be—</text><clause id="id0E88770078C84485ADDB9D9EA5DF22B8" commented="no"><enum>(i)</enum><text>in the case of a joint return or a surviving spouse (as defined in section 2(a)), $300,000,</text></clause><clause id="idE865C604A8E84DA9B3538196CACC1ADF" commented="no"><enum>(ii)</enum><text>in the case of a head of household (as defined in section 2(b)), $225,000, and</text></clause><clause id="id5C3AFCB366654BE395C04040388BA8DB" commented="no"><enum>(iii)</enum><text>in the case of a taxpayer not described in clause (i) or (ii), $150,000.</text></clause></subparagraph><subparagraph commented="no" id="id5276502200534B1B9683E87AF5748DB2"><enum>(C)</enum><header>Modified adjusted gross income</header><text>For purposes of this paragraph, the term ‘modified adjusted gross income’ means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933. </text></subparagraph></paragraph><paragraph id="id23EDE8115FC540608758422489AD6BBD" commented="no"><enum>(11)</enum><header>Manufacturer’s suggested retail price limitation</header><subparagraph id="id66BFF24BA0C04F9C97347528193452E3" commented="no"><enum>(A)</enum><header>In general</header><text>No credit shall be allowed under subsection (a) for a vehicle with a manufacturer’s suggested retail price in excess of the applicable limitation.</text></subparagraph><subparagraph id="id68C000EBA3104E32B88F701456BD6697" commented="no"><enum>(B)</enum><header>Applicable limitation</header><text>For purposes of subparagraph (A), the applicable limitation for each vehicle classification is as follows:</text><clause id="id0F21F69DBA3C471F817713879750D7E1" commented="no"><enum>(i)</enum><header>Vans</header><text display-inline="yes-display-inline">In the case of a van, $80,000. </text></clause><clause id="idD17997C53EA0429B8AC104F1A830B54B" commented="no"><enum>(ii)</enum><header>Sport Utility Vehicles</header><text display-inline="yes-display-inline">In the case of a sport utility vehicle, $80,000.</text></clause><clause id="id54EC6815894C4C64AE9DDA7FCF069469" commented="no"><enum>(iii)</enum><header>Pickup Trucks</header><text display-inline="yes-display-inline">In the case of a pickup truck, $80,000.</text></clause><clause id="id2BD67F68130B4397A7AEA7FF746BE039"><enum>(iv)</enum><header>Other</header><text>In the case of any other vehicle, $55,000.</text></clause></subparagraph><subparagraph id="id634F246318524AC2A0A3ECF7B609A210" commented="no"><enum>(C)</enum><header>Regulations and guidance</header><text display-inline="yes-display-inline">For purposes of this paragraph, the Secretary shall prescribe such regulations or other guidance as the Secretary determines necessary for determining vehicle classifications using criteria similar to that employed by the Environmental Protection Agency and the Department of the Energy to determine size and class of vehicles.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H4CD264852EC3478EAA0914EF06A7D669"><enum>(g)</enum><header>Transfer of credit</header><paragraph id="H99537A2A58B94DA9BCDF55151C5577AB"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30D">Section 30D</external-xref> is amended by striking subsection (g) and inserting the following: </text><quoted-block style="OLC" id="HF3D08191218142B9A66376AE8184D036" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subsection id="HD1C4ECB7ED234FCE8DEADEE8BE94B8F7"><enum>(g)</enum><header>Transfer of credit</header><paragraph id="HED9900E4060544B48BB02A76130BA71A"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Subject to such regulations or other guidance as the Secretary determines necessary, if the taxpayer who acquires a new clean vehicle elects the application of this subsection with respect to such vehicle, the credit which would (but for this subsection) be allowed to such taxpayer with respect to such vehicle shall be allowed to the eligible entity specified in such election (and not to such taxpayer).</text></paragraph><paragraph id="H23C3C79B6D3649FD804710F8833F26BD"><enum>(2)</enum><header>Eligible entity</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>eligible entity</quote> means, with respect to the vehicle for which the credit is allowed under subsection (a), the dealer which sold such vehicle to the taxpayer and has—</text><subparagraph id="H66CA929CBDD84142B9453BEBB4003C2E"><enum>(A)</enum><text>subject to paragraph (4), registered with the Secretary for purposes of this paragraph, at such time, and in such form and manner, as the Secretary may prescribe, </text></subparagraph><subparagraph id="H293D81C402C5463795E33D8C7B03CE57"><enum>(B)</enum><text>prior to the election described in paragraph (1) and not later than at the time of such sale, disclosed to the taxpayer purchasing such vehicle—</text><clause id="HF3A7AEBEB7F64B8EA77A8683F4B31EDC"><enum>(i)</enum><text>the manufacturer’s suggested retail price, </text></clause><clause id="H74BC941B2E614E7C82725B05035325A6"><enum>(ii)</enum><text>the value of the credit allowed and any other incentive available for the purchase of such vehicle, and</text></clause><clause id="H3720D63A505A47EC9C46B41560571EF7"><enum>(iii)</enum><text>the amount provided by the dealer to such taxpayer as a condition of the election described in paragraph (1), </text></clause></subparagraph><subparagraph id="H1544105935994E9A8EEC95F8D99C83CC"><enum>(C)</enum><text>not later than at the time of such sale, made payment to such taxpayer (whether in cash or in the form of a partial payment or down payment for the purchase of such vehicle) in an amount equal to the credit otherwise allowable to such taxpayer, and </text></subparagraph><subparagraph id="H31E52D54143049FD99033F614EBFAFA7"><enum>(D)</enum><text>with respect to any incentive otherwise available for the purchase of a vehicle for which a credit is allowed under this section, including any incentive in the form of a rebate or discount provided by the dealer or manufacturer, ensured that—</text><clause id="HBA3226C864BE47E7AA1479633237D23A"><enum>(i)</enum><text>the availability or use of such incentive shall not limit the ability of a taxpayer to make an election described in paragraph (1), and</text></clause><clause id="HC8DA0296B2D84BC3A9E5FA8D200F409F"><enum>(ii)</enum><text>such election shall not limit the value or use of such incentive.</text></clause></subparagraph></paragraph><paragraph id="H557141CA5493411FA902EB6CE4A6A921"><enum>(3)</enum><header>Timing</header><text display-inline="yes-display-inline">An election described in paragraph (1) shall be made by the taxpayer not later than the date on which the vehicle for which the credit is allowed under subsection (a) is purchased. </text></paragraph><paragraph id="HE178E71439C149C3BCD06F7D39310E39"><enum>(4)</enum><header>Revocation of registration</header><text display-inline="yes-display-inline">Upon determination by the Secretary that a dealer has failed to comply with the requirements described in paragraph (2), the Secretary may revoke the registration (as described in subparagraph (A) of such paragraph) of such dealer. </text></paragraph><paragraph id="H37DBCB8752BE437D90B61A1EEC0717FE"><enum>(5)</enum><header>Tax treatment of payments</header><text display-inline="yes-display-inline">With respect to any payment described in paragraph (2)(C), such payment—</text><subparagraph id="HE2563C3D8FD847B584C5B4843430150C"><enum>(A)</enum><text>shall not be includible in the gross income of the taxpayer, and</text></subparagraph><subparagraph id="H396BC14420704C3E9F146D20EF77244E"><enum>(B)</enum><text>with respect to the dealer, shall not be deductible under this title.</text></subparagraph></paragraph><paragraph id="HC448C3E5C5BD4997BF5EE50674D7A2AA"><enum>(6)</enum><header>Application of certain other requirements</header><text>In the case of any election under paragraph (1) with respect to any vehicle—</text><subparagraph id="H34AA6239A8174B8280FAE3772123443D"><enum>(A)</enum><text>the requirements of paragraphs (1) and (2) of subsection (f) shall apply to the taxpayer who acquired the vehicle in the same manner as if the credit determined under this section with respect to such vehicle were allowed to such taxpayer,</text></subparagraph><subparagraph id="H2AC66C8B861D48EFA91902342D141FE6"><enum>(B)</enum><text>paragraph (6) of such subsection shall not apply, and</text></subparagraph><subparagraph id="H0D05197518664DF8AD68DC50A734D427"><enum>(C)</enum><text>the requirement of paragraph (9) of such subsection (f) shall be treated as satisfied if the eligible entity provides the vehicle identification number of such vehicle to the Secretary in such manner as the Secretary may provide.</text></subparagraph></paragraph><paragraph id="H436FC86599334A248898DF35BC4B97BE"><enum>(7)</enum><header>Advance payment to registered dealers</header><subparagraph id="HC247BEFB709B4F9E97670846FFE1493D"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary shall establish a program to make advance payments to any eligible entity in an amount equal to the cumulative amount of the credits allowed under subsection (a) with respect to any vehicles sold by such entity for which an election described in paragraph (1) has been made. </text></subparagraph><subparagraph id="H276D409431DB475CAB693133423C4A5D"><enum>(B)</enum><header>Excessive payments</header><text display-inline="yes-display-inline">Rules similar to the rules of section 6417(d)(6) shall apply for purposes of this paragraph. </text></subparagraph><subparagraph id="id364D3CE5F419450EAF516F51705DFA4F"><enum>(C)</enum><header>Treatment of advance payments</header><text>For purposes of section 1324 of title 31, United States Code, the payments under subparagraph (A) shall be treated in the same manner as a refund due from a credit provision referred to in subsection (b)(2) of such section.</text></subparagraph></paragraph><paragraph id="HD74C75A91B53480DB260B8487FA3E72E"><enum>(8)</enum><header>Dealer</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>dealer</quote> means a person licensed by a State, the District of Columbia, the Commonwealth of Puerto Rico, any other territory or possession of the United States, an Indian tribal government, or any Alaska Native Corporation (as defined in section 3 of the Alaska Native Claims Settlement Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1602">43 U.S.C. 1602(m)</external-xref>) to engage in the sale of vehicles.</text></paragraph><paragraph id="id1A34FA0F42D640F39CA7C84E987E3511"><enum>(9)</enum><header>Indian tribal government</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <term>Indian tribal government</term> means the recognized governing body of any Indian or Alaska Native tribe, band, nation, pueblo, village, community, component band, or component reservation, individually identified (including parenthetically) in the list published most recently as of the date of enactment of this subsection pursuant to section 104 of the Federally Recognized Indian Tribe List Act of 1994 (<external-xref legal-doc="usc" parsable-cite="usc/25/5131">25 U.S.C. 5131</external-xref>).</text></paragraph><paragraph id="id5D600A30E910451E94FCC1455FE29BD2"><enum>(10)</enum><header>Recapture</header><text display-inline="yes-display-inline">In the case of any taxpayer who has made an election described in paragraph (1) with respect to a new clean vehicle and received a payment described in paragraph (2)(C) from an eligible entity, if the credit under subsection (a) would otherwise (but for this subsection) not be allowable to such taxpayer pursuant to the application of subsection (f)(10), the tax imposed on such taxpayer under this chapter for the taxable year in which such vehicle was placed in service shall be increased by the amount of the payment received by such taxpayer.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H526E35B0FB474D449B2A1CD73328C902"><enum>(2)</enum><header>Conforming amendments</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30D">Section 30D</external-xref>, as amended by the preceding provisions of this section, is amended—</text><subparagraph id="id6365E98B97E249619709C0369B14478E" commented="no"><enum>(A)</enum><text>in subsection (d)(1)(H) of such section—</text><clause id="idCA3D4F2023EF4C44B3124D1115D61705" commented="no"><enum>(i)</enum><text>in clause (iv), by striking <quote>and</quote> at the end,</text></clause><clause commented="no" id="id1B51E7F36F304BC3A293AD6750611452"><enum>(ii)</enum><text>in clause (v), by striking the period at the end and inserting <quote>, and</quote>, and</text></clause><clause id="id5B44D51FAC9A45E7AC8B01787538C934" commented="no"><enum>(iii)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idB93533CB507444D680205AFF55D6926D" changed="added" reported-display-style="italic"><clause id="idB877ADFCB42E48AC9228A0B99B107ACA" commented="no"><enum>(vi)</enum><text display-inline="yes-display-inline">in the case of a taxpayer who makes an election under subsection (g)(1), any amount described in subsection (g)(2)(C) which has been provided to such taxpayer.</text></clause><after-quoted-block>, and</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="idC4CA8279A21446DCA48C629BA54B8917" commented="no"><enum>(B)</enum><text>in subsection (f)—</text><clause commented="no" id="id6D4FBC8C0B9A42A3AA226D34C3DE76AC"><enum>(i)</enum><text>by striking paragraph (3), and</text></clause><clause commented="no" id="idAA61A59EEC7448308A012FBB66E73A0B"><enum>(ii)</enum><text>in paragraph (8), by inserting <quote>, including any vehicle with respect to which the taxpayer elects the application of subsection (g)</quote> before the period at the end.</text></clause></subparagraph></paragraph></subsection><subsection id="id36219AF0C72D4AF19450A7B0914F180D"><enum>(h)</enum><header>Termination</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30D">Section 30D</external-xref> is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idE1576171A0864B51ABEE41ADE41113F6" changed="added" reported-display-style="italic"><subsection id="idDD60E8C606EE4FADBD602B64A6C3A73E"><enum>(h)</enum><header>Termination</header><text>No credit shall be allowed under this section with respect to any vehicle placed in service after December 31, 2032.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="idA08D5658D46E4611A831A71BEDC3B2B5"><enum>(i)</enum><header>Additional conforming amendments</header><paragraph id="id34FFE5F6B2F2464A84B09D838F6DF703"><enum>(1)</enum><text>The heading of <external-xref legal-doc="usc" parsable-cite="usc/26/30D">section 30D</external-xref> is amended by striking <quote><header-in-text style="tax" level="section">New qualified plug-in electric drive motor vehicles</header-in-text></quote> and inserting <quote><header-in-text style="tax" level="section">Clean vehicle credit</header-in-text></quote>.</text></paragraph><paragraph commented="no" id="idF2865232175249BBB5E3815BACF648CA"><enum>(2)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/30B">Section 30B</external-xref> is amended—</text><subparagraph commented="no" id="idF039C3602A24473BACC2BAFDBAD84CFC"><enum>(A)</enum><text>in subsection (h)(8), by striking <quote>, except that no benefit shall be recaptured if such property ceases to be eligible for such credit by reason of conversion to a qualified plug-in electric drive motor vehicle</quote>, and</text></subparagraph><subparagraph commented="no" id="idB4E68DE6944C45B1A14EB5FDE4FDE936"><enum>(B)</enum><text>by striking subsection (i).</text></subparagraph></paragraph><paragraph id="idCA7478F62A7240EA9CB1E5171A667EC0"><enum>(3)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/38">Section 38(b)(30)</external-xref> is amended by striking <quote>qualified plug-in electric drive motor</quote> and inserting <quote>clean</quote>.</text></paragraph><paragraph id="id1AFE820AAAE74AD0AE6BD8A2419EEDB5"><enum>(4)</enum><text>Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended—</text><subparagraph id="idB9FC85F5183A462EB22969BB9D7DC4B5"><enum>(A)</enum><text>in subparagraph (R), by striking <quote>and</quote> at the end,</text></subparagraph><subparagraph id="id2C4A98B6218C492F8997C7D5CCE320E7"><enum>(B)</enum><text>in subparagraph (S), by striking the period at the end and inserting <quote>, and</quote>, and</text></subparagraph><subparagraph id="id56B9DA9A313E4A5395EBD9D7B3534B8F"><enum>(C)</enum><text>by inserting after subparagraph (S) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id8A5701D8331B4A6590659C6D5E0D66B1" changed="added" reported-display-style="italic"><subparagraph id="idFA43E72EFA8743EEA6021609F7F78F9D"><enum>(T)</enum><text>an omission of a correct vehicle identification number required under section 30D(f)(9) (relating to credit for new clean vehicles) to be included on a return.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="id9AC3DDE0BC424E83BF39C600EE6DAAFF"><enum>(5)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/6501">Section 6501(m)</external-xref> is amended by striking <quote>30D(e)(4)</quote> and inserting <quote>30D(f)(6)</quote>.</text></paragraph><paragraph id="id810FFE3481DB4EC8B94D65FEA99E52F3"><enum>(6)</enum><text>The table of sections for subpart B of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by striking the item relating to section 30D and inserting after the item relating to section 30C the following item:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idDA84FB8B193147C0B896ADDFB780C971" changed="added" reported-display-style="italic"><toc changed="added" reported-display-style="italic"><toc-entry level="section" bold="off">Sec. 30D. Clean vehicle credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="idCBF7A6A237D24325B659877ADF32CA56" commented="no"><enum>(j)</enum><header>Gross-up of direct spending</header><text>Beginning in fiscal year 2023 and each fiscal year thereafter, the portion of any credit allowed to an eligible entity (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/30D">section 30D(g)(2)</external-xref> of the Internal Revenue Code of 1986) pursuant to an election made under <external-xref legal-doc="usc" parsable-cite="usc/26/30D">section 30D(g)</external-xref> of the Internal Revenue Code of 1986 that is direct spending shall be increased by 6.0445 percent.</text></subsection><subsection id="H43ABC69A9A8B48CFA46BB9A6D68A40E7" commented="no"><enum>(k)</enum><header>Effective dates</header><paragraph id="H19DD393A4B894919808F0DEB961B3473"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraphs (2), (3), (4), and (5), the amendments made by this section shall apply to vehicles placed in service after December 31, 2022.</text></paragraph><paragraph id="H400EBEFB2388498B8744FEAA511BC321"><enum>(2)</enum><header>Final assembly</header><text>The amendments made by subsection (b) shall apply to vehicles sold after the date of enactment of this Act.</text></paragraph><paragraph id="id9982B57187384389AA425D2A16F68791"><enum>(3)</enum><header>Per vehicle dollar limitation and related requirements</header><text>The amendments made by subsections (a) and (e) shall apply to vehicles placed in service after the date on which the proposed guidance described in paragraph (3)(B) of <external-xref legal-doc="usc" parsable-cite="usc/26/30D">section 30D(e)</external-xref> of the Internal Revenue Code of 1986 (as added by subsection (e)) is issued by the Secretary of the Treasury (or the Secretary's delegate).</text></paragraph><paragraph id="id547B6E6073374F348FCC3A0F9E892DA6"><enum>(4)</enum><header>Transfer of credit</header><text>The amendments made by subsection (g) shall apply to vehicles placed in service after December 31, 2023.</text></paragraph><paragraph id="id99D714D473544336B11C1E3E0AE8A99C"><enum>(5)</enum><header>Elimination of manufacturer limitation</header><text>The amendment made by subsection (d) shall apply to vehicles sold after December 31, 2022.</text></paragraph></subsection><subsection id="id6C44DF9278014793A2D61A7CA486C3AD"><enum>(l)</enum><header>Transition rule</header><text>Solely for purposes of the application of <external-xref legal-doc="usc" parsable-cite="usc/26/30D">section 30D</external-xref> of the Internal Revenue Code of 1986, in the case of a taxpayer that—</text><paragraph id="id5B38D075C90B4B1680637D7BE96E84AD"><enum>(1)</enum><text>after December 31, 2021, and before the date of enactment of this Act, purchased, or entered into a written binding contract to purchase, a new qualified plug-in electric drive motor vehicle (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/30D">section 30D(d)(1)</external-xref> of the Internal Revenue Code of 1986, as in effect on the day before the date of enactment of this Act), and</text></paragraph><paragraph id="id39A41F5C976147319F25A83916D917F6"><enum>(2)</enum><text>placed such vehicle in service on or after the date of enactment of this Act,</text></paragraph><continuation-text continuation-text-level="subsection">such taxpayer may elect (at such time, and in such form and manner, as the Secretary of the Treasury, or the Secretary's delegate, may prescribe) to treat such vehicle as having been placed in service on the day before the date of enactment of this Act.</continuation-text></subsection></section><section id="H6755A898F3AA4DFC9180F9CDB423FD96" section-type="subsequent-section" commented="no"><enum>13402.</enum><header>Credit for previously-owned clean vehicles</header><subsection id="HEBF1FCEFED6B421E8240C9DE86AAC501" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subpart A of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after section 25D the following new section:</text><quoted-block style="OLC" id="H22D6923D45784632B63044781091AD94" display-inline="no-display-inline" changed="added" reported-display-style="italic"><section id="H95670471428F474696365815753AC2FF" commented="no"><enum>25E.</enum><header>Previously-owned clean vehicles</header><subsection id="H12C6E62E8A9A443D8DA5D42ADD464DF1" commented="no"><enum>(a)</enum><header>Allowance of credit</header><text display-inline="yes-display-inline">In the case of a qualified buyer who during a taxable year places in service a previously-owned clean vehicle, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the lesser of—</text><paragraph commented="no" id="idB571DCFED16A4DC8A1FB8FCF84CF0216"><enum>(1)</enum><text display-inline="yes-display-inline">$4,000, or</text></paragraph><paragraph commented="no" id="id8E898E4D70BD400190F182BE2D6779F5"><enum>(2)</enum><text>the amount equal to 30 percent of the sale price with respect to such vehicle.</text></paragraph></subsection><subsection id="H0DF6D00133B04E3CA8F1934189E96D9D" commented="no"><enum>(b)</enum><header>Limitation based on modified adjusted gross income</header><paragraph commented="no" id="id6B8548754B8C4B83A41F6CF47B6EBC39"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">No credit shall be allowed under subsection (a) for any taxable year if—</text><subparagraph commented="no" id="id0A1442484E6349F39264F086D7302450"><enum>(A)</enum><text display-inline="yes-display-inline">the lesser of—</text><clause commented="no" id="id0C0EAE29303845E791E662FD2FF35C61"><enum>(i)</enum><text display-inline="yes-display-inline">the modified adjusted gross income of the taxpayer for such taxable year, or</text></clause><clause commented="no" id="id72906ED4CF07421086BD819CF99EE9D9"><enum>(ii)</enum><text>the modified adjusted gross income of the taxpayer for the preceding taxable year, exceeds</text></clause></subparagraph><subparagraph commented="no" id="id7585706A607942B19AE144114A04897B"><enum>(B)</enum><text>the threshold amount.</text></subparagraph></paragraph><paragraph commented="no" id="idBF836F45BF834665BF6BE1EC751726D5"><enum>(2)</enum><header>Threshold amount</header><text>For purposes of paragraph (1)(B), the threshold amount shall be—</text><subparagraph id="HD64DC5C585814F1F8790DC6796EFDBEF" commented="no"><enum>(A)</enum><text>in the case of a joint return or a surviving spouse (as defined in section 2(a)), $150,000,</text></subparagraph><subparagraph id="H69143F2B9E5B4A8CA364068C41E7A44B" commented="no"><enum>(B)</enum><text>in the case of a head of household (as defined in section 2(b)), $112,500, and</text></subparagraph><subparagraph id="HCA336545A96B47C18AD1818B0E96668A" commented="no"><enum>(C)</enum><text>in the case of a taxpayer not described in subparagraph (A) or (B), $75,000.</text></subparagraph></paragraph><paragraph commented="no" id="id53E5A669504F4F55A228CD0FE3C3469F"><enum>(3)</enum><header>Modified adjusted gross income</header><text>For purposes of this subsection, the term ‘modified adjusted gross income’ means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933.</text></paragraph></subsection><subsection id="H7613A6CE6B5E4F4EBE9DCF3B9E4399FF" commented="no"><enum>(c)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this section—</text><paragraph id="HBE2D4856623E4B0F90E9C5B140C31EDC" commented="no"><enum>(1)</enum><header>Previously-owned clean vehicle</header><text display-inline="yes-display-inline">The term <term>previously-owned clean vehicle</term> means, with respect to a taxpayer, a motor vehicle—</text><subparagraph id="H5AD2361E893F4B4791F010CAB949A72B" commented="no"><enum>(A)</enum><text>the model year of which is at least 2 years earlier than the calendar year in which the taxpayer acquires such vehicle,</text></subparagraph><subparagraph id="H4FBE534C31934DB4AB4B4AE47C15FE29" commented="no"><enum>(B)</enum><text>the original use of which commences with a person other than the taxpayer,</text></subparagraph><subparagraph id="H490A893B591A4CF28CB7FF04992B58D3" commented="no"><enum>(C)</enum><text display-inline="yes-display-inline">which is acquired by the taxpayer in a qualified sale, and</text></subparagraph><subparagraph id="H67CE2237481D411EBB7ED0EDABB29605" commented="no"><enum>(D)</enum><text display-inline="yes-display-inline">which—</text><clause id="idA242F6BD34E246A0AD91A8F57B9EB4BB" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">meets the requirements of subparagraphs (C), (D), (E), (F), and (H) (except for clause (iv) thereof) of section 30D(d)(1), or </text></clause><clause id="idF850048C656D42039E74550D9CFFFFF1" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">is a motor vehicle which—</text><subclause id="id1D4FB7476F154E86A65763B40511A88C" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">satisfies the requirements under subparagraphs (A) and (B) of section 30B(b)(3), and</text></subclause><subclause id="id5363E42165D843D99B68062BE7BB2EC0" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">has a gross vehicle weight rating of less than 14,000 pounds.</text></subclause></clause></subparagraph></paragraph><paragraph id="HB4BE7EB080B5466893D5DCC57F552724" commented="no"><enum>(2)</enum><header>Qualified sale</header><text>The term <term>qualified sale</term> means a sale of a motor vehicle—</text><subparagraph id="H79DCA069FC374CE3BA00962FB3B3F808" commented="no"><enum>(A)</enum><text>by a dealer (as defined in section 30D(g)(8)),</text></subparagraph><subparagraph id="H5B0226CEE36C41D1BC625BF9FF353326" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">for a sale price which does not exceed $25,000, and</text></subparagraph><subparagraph id="H5CCF79CE538C497BA1B82C63EC0E5F3C" commented="no"><enum>(C)</enum><text>which is the first transfer since the date of the enactment of this section to a qualified buyer other than the person with whom the original use of such vehicle commenced.</text></subparagraph></paragraph><paragraph id="H6AF0E1342A5D48989AE1BC4FCE4E6FF4" commented="no"><enum>(3)</enum><header>Qualified buyer</header><text display-inline="yes-display-inline">The term <term>qualified buyer</term> means, with respect to a sale of a motor vehicle, a taxpayer—</text><subparagraph id="H3F779C5503304FD9AA3BCC1F307DCB04" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">who is an individual,</text></subparagraph><subparagraph id="HCCFF179AF98F4674ACA0AB48F2E863F9" commented="no"><enum>(B)</enum><text>who purchases such vehicle for use and not for resale,</text></subparagraph><subparagraph id="HC8FF8E317FFD46D488F3E701649C8691" commented="no"><enum>(C)</enum><text>with respect to whom no deduction is allowable with respect to another taxpayer under section 151, and</text></subparagraph><subparagraph id="HD8E078BECEA341FE93CABFE2179B934C" commented="no"><enum>(D)</enum><text>who has not been allowed a credit under this section for any sale during the 3-year period ending on the date of the sale of such vehicle.</text></subparagraph></paragraph><paragraph id="H60625B4D4D834BC7BA3F4618A192A661" commented="no"><enum>(4)</enum><header>Motor vehicle; capacity</header><text>The terms <term>motor vehicle</term> and <term>capacity</term> have the meaning given such terms in paragraphs (2) and (4) of section 30D(d), respectively.</text></paragraph></subsection><subsection id="HA9235194F6994254A67F946A0295A442" display-inline="no-display-inline" commented="no"><enum>(d)</enum><header>VIN number requirement</header><text display-inline="yes-display-inline">No credit shall be allowed under subsection (a) with respect to any vehicle unless the taxpayer includes the vehicle identification number of such vehicle on the return of tax for the taxable year.</text></subsection><subsection id="H1BB384C8F41B41E4895046215E782EC0" commented="no"><enum>(e)</enum><header>Application of certain rules</header><text>For purposes of this section, rules similar to the rules of section 30D(f) (without regard to paragraph (10) or (11) thereof) shall apply for purposes of this section. </text></subsection><subsection id="H1A78B5396EDE42D689F3FAB2556C77FF" commented="no"><enum>(f)</enum><header>Termination</header><text>No credit shall be allowed under this section with respect to any vehicle acquired after December 31, 2032.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H27029A3B42404AC4AE1203E5044B3F22" commented="no"><enum>(b)</enum><header>Transfer of credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25E">Section 25E</external-xref>, as added by subsection (a), is amended—</text><paragraph id="idAD540062A5874B578945C4E8E272C787" commented="no"><enum>(1)</enum><text>by redesignating subsection (f) as subsection (g), and</text></paragraph><paragraph id="id1920CD7D649E445091713F831A27D43B" commented="no"><enum>(2)</enum><text>by inserting after subsection (e) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id60EF1BD1C0214A25AFEC038334C69EF0" changed="added" reported-display-style="italic"><subsection id="id3C99A892711547EB873621FFAABED9BD" commented="no"><enum>(f)</enum><header>Transfer of credit</header><text>Rules similar to the rules of section 30D(g) shall apply.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="id4828FAB0ACD84F64A6DD4BECF25984A3" commented="no"><enum>(c)</enum><header>Conforming amendments</header><text>Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended—</text><paragraph id="H5CCE92FB203242C29E01402D33736A26" commented="no"><enum>(1)</enum><text>in subparagraph (S), by striking <quote>and</quote> at the end,</text></paragraph><paragraph id="H23F88DB5FF024AA6895F525DC064DE53" commented="no"><enum>(2)</enum><text>in subparagraph (T), by striking the period at the end and inserting <quote>, and</quote>, and</text></paragraph><paragraph id="H9EBC7C05CA004AF6ADD81B9E4EB63768" commented="no"><enum>(3)</enum><text>by inserting after subparagraph (T) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HE045F4D1417B4D06A4A4297F0329E5F1" changed="added" reported-display-style="italic"><subparagraph id="H93D7F7A1E14A468CB9BF30E83F5B8F1C" commented="no"><enum>(U)</enum><text display-inline="yes-display-inline">an omission of a correct vehicle identification number required under section 25E(d) (relating to credit for previously-owned clean vehicles) to be included on a return.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="HC17C1AA88406438683170E728B259B72" commented="no"><enum>(d)</enum><header>Clerical amendment</header><text>The table of sections for subpart A of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after the item relating to section 25D the following new item:</text><quoted-block style="OLC" id="H936C84F47B6440A4B4E463B057A2C2DE" display-inline="no-display-inline" changed="added" reported-display-style="italic"><toc container-level="quoted-block-container" quoted-block="no-quoted-block" lowest-level="section" idref="H22D6923D45784632B63044781091AD94" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded" changed="added" reported-display-style="italic"><toc-entry idref="H95670471428F474696365815753AC2FF" level="section">Sec. 25E. Previously-owned clean vehicles.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H17A496F3FA7A4CDA89DFFA11497D867C" commented="no"><enum>(e)</enum><header>Effective date</header><paragraph id="idD08118E746074DBEA68F560AAD6BFA03" commented="no"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), the amendments made by this section shall apply to vehicles acquired after December 31, 2022.</text></paragraph><paragraph id="idE9F3C434F5B84411ACB216C5D483B397" commented="no"><enum>(2)</enum><header>Transfer of credit</header><text>The amendments made by subsection (b) shall apply to vehicles acquired after December 31, 2023.</text></paragraph></subsection></section><section id="HF4992129E0FA446A8639CCC15F9F51AF" commented="no"><enum>13403.</enum><header>Qualified commercial clean vehicles</header><subsection id="H041DFADC61B04C0DA5B1BB16D334769D" commented="no"><enum>(a)</enum><header>In general</header><text>Subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by adding at the end the following new section:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HF9034A7B1D9146B8B5D0607F9CBD26F8" changed="added" reported-display-style="italic"><section id="HE7525AEF67774F3CB6BFADCD3548A2D2" commented="no"><enum>45W.</enum><header>Credit for qualified commercial clean vehicles</header><subsection id="H8FF72E10244344D4B5016C4D414BE2CA" commented="no"><enum>(a)</enum><header>In general</header><text>For purposes of section 38, the qualified commercial clean vehicle credit for any taxable year is an amount equal to the sum of the credit amounts determined under subsection (b) with respect to each qualified commercial clean vehicle placed in service by the taxpayer during the taxable year.</text></subsection><subsection id="HCC191E4033A34F48B9A90F8AB06A2DE3" commented="no"><enum>(b)</enum><header>Per vehicle amount</header><paragraph id="HBA66BA675CCA4DFD9D6D7ED98DC20B8B" commented="no"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (4), the amount determined under this subsection with respect to any qualified commercial clean vehicle shall be equal to the lesser of—</text><subparagraph id="HFD4D97DB06F743D19732FCE15E20E2F0" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">15 percent of the basis of such vehicle (30 percent in the case of a vehicle not powered by a gasoline or diesel internal combustion engine), or</text></subparagraph><subparagraph id="H56FE2A573B7B46F48C91BDAB99636A8B" commented="no"><enum>(B)</enum><text>the incremental cost of such vehicle.</text></subparagraph></paragraph><paragraph id="H31F196A5D32E49D78C12DD80B492EDC9" commented="no"><enum>(2)</enum><header>Incremental cost</header><text display-inline="yes-display-inline">For purposes of paragraph (1)(B), the incremental cost of any qualified commercial clean vehicle is an amount equal to the excess of the purchase price for such vehicle over such price of a comparable vehicle.</text></paragraph><paragraph id="H36763A143E53400D88EFDA9A8FCF2D34" commented="no"><enum>(3)</enum><header>Comparable vehicle</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>comparable vehicle</quote> means, with respect to any qualified commercial clean vehicle, any vehicle which is powered solely by a gasoline or diesel internal combustion engine and which is comparable in size and use to such vehicle.</text></paragraph><paragraph commented="no" id="id369651B42D804144A2DD7418C82CE1BF"><enum>(4)</enum><header>Limitation</header><text>The amount determined under this subsection with respect to any qualified commercial clean vehicle shall not exceed—</text><subparagraph commented="no" id="id55B312BD0EFF4D3093876B82118D69A4"><enum>(A)</enum><text>in the case of a vehicle which has a gross vehicle weight rating of less than 14,000 pounds, $7,500, and</text></subparagraph><subparagraph commented="no" id="id048E6B2BD9D94D479B3A98DE589E9EEF"><enum>(B)</enum><text>in the case of a vehicle not described in subparagraph (A), $40,000.</text></subparagraph></paragraph></subsection><subsection id="HA3C4F5A6A009478B835144A83858742E" commented="no"><enum>(c)</enum><header>Qualified commercial clean vehicle</header><text>For purposes of this section, the term <term>qualified commercial clean vehicle</term> means any vehicle which—</text><paragraph id="HFA88EE5442584B2EB10C6F38C2707E23" commented="no"><enum>(1)</enum><text display-inline="yes-display-inline">meets the requirements of section 30D(d)(1)(C) and is acquired for use or lease by the taxpayer and not for resale, </text></paragraph><paragraph id="H1EED6C5C04984977B978E0E17D810971" commented="no"><enum>(2)</enum><text display-inline="yes-display-inline">either—</text><subparagraph id="H24A84213F98A4DC887390BE51328F0E6" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">meets the requirements of subparagraph (D) of section 30D(d)(1) and is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails), or</text></subparagraph><subparagraph id="H42DCCB1CE6044597BCFFD8E831E95E6A" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">is mobile machinery, as defined in section 4053(8) (including vehicles that are not designed to perform a function of transporting a load over the public highways),</text></subparagraph></paragraph><paragraph id="H8065A1430FA6442A896BC3897D2D79C6" commented="no"><enum>(3)</enum><text>either—</text><subparagraph id="H67D569E5891E4B4FBD278532BFB272FF" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">is propelled to a significant extent by an electric motor which draws electricity from a battery which has a capacity of not less than 15 kilowatt hours (or, in the case of a vehicle which has a gross vehicle weight rating of less than 14,000 pounds, 7 kilowatt hours) and is capable of being recharged from an external source of electricity, or</text></subparagraph><subparagraph id="H5E0D897BE6EB484CB3E2F311A453F9FE" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">is a motor vehicle which satisfies the requirements under subparagraphs (A) and (B) of section 30B(b)(3), and</text></subparagraph></paragraph><paragraph id="H9A4099F257F148B4B463862ACCE9AC2B" commented="no"><enum>(4)</enum><text>is of a character subject to the allowance for depreciation.</text></paragraph></subsection><subsection id="H476EDB0412C04D46981D1CA60DF5003E" commented="no"><enum>(d)</enum><header>Special rules</header><paragraph id="H9FB32CC64CBA4AAD92FB9461929BE374" commented="no"><enum>(1)</enum><header>In general</header><text>Rules similar to the rules under subsection (f) of section 30D (without regard to paragraph (10) or (11) thereof) shall apply for purposes of this section.</text></paragraph><paragraph id="H2955AC15600C4AD4913C5208A7BCAFC4" commented="no"><enum>(2)</enum><header>Vehicles placed in service by tax-exempt entities</header><text>Subsection (c)(4) shall not apply to any vehicle which is not subject to a lease and which is placed in service by a tax-exempt entity described in clause (i), (ii), or (iv) of section 168(h)(2)(A).</text></paragraph><paragraph commented="no" id="id0E1B3704FB2947DF82540AD59CCAEE9E"><enum>(3)</enum><header>No double benefit</header><text>No credit shall be allowed under this section with respect to any vehicle for which a credit was allowed under section 30D. </text></paragraph></subsection><subsection id="H2700F8E7036446529F8FCD2EB0B2CE2A" display-inline="no-display-inline" commented="no"><enum>(e)</enum><header>VIN number requirement</header><text display-inline="yes-display-inline">No credit shall be determined under subsection (a) with respect to any vehicle unless the taxpayer includes the vehicle identification number of such vehicle on the return of tax for the taxable year.</text></subsection><subsection id="HCA34C3ACB28E4BA885B2F281ECD1CFA9" commented="no"><enum>(f)</enum><header>Regulations and guidance</header><text>The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this section, including regulations or other guidance relating to determination of the incremental cost of any qualified commercial clean vehicle.</text></subsection><subsection commented="no" id="id8E047D0D2C0F498EA63F49E14C008618"><enum>(g)</enum><header>Termination</header><text>No credit shall be determined under this section with respect to any vehicle acquired after December 31, 2032.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HDA49A5DD7E114B1F86D4D0DA9AAA36D7" commented="no"><enum>(b)</enum><header>Conforming amendments</header><paragraph id="idC5F18FAAC8FD4808B87FE85EC75EB500" commented="no"><enum>(1)</enum><text>Section 38(b), as amended by the preceding provisions of this Act, is amended—</text><subparagraph id="id4D25C236B4A3411F999E328816EFB61F" commented="no"><enum>(A)</enum><text>in paragraph (35), by striking <quote>plus</quote> at the end,</text></subparagraph><subparagraph id="id10734865E1B64CE9BD298528E64D2C54" commented="no"><enum>(B)</enum><text>in paragraph (36), by striking the period at the end and inserting <quote>, plus</quote>, and</text></subparagraph><subparagraph id="id1CA76B69EE904A0992A30D6DBB70B974" commented="no"><enum>(C)</enum><text>by adding at the end the following new paragraph:</text><quoted-block display-inline="no-display-inline" id="idE65F050707344F049F4F808ACE3D1494" style="OLC" changed="added" reported-display-style="italic"><paragraph id="idB7D532F7CEB743F2B83557242285D0DF" commented="no"><enum>(37)</enum><text>the qualified commercial clean vehicle credit determined under section 45W.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="H5A3004604BAC40C0B7B2EBD7EFE0FF95" commented="no"><enum>(2)</enum><text>Section 6213(g)(2), as amended by the preceding provisions of this Act, is amended—</text><subparagraph id="HF30C49AD54144FFF9FAE6AE72D99BB01" commented="no"><enum>(A)</enum><text>in subparagraph (T), by striking <quote>and</quote> at the end,</text></subparagraph><subparagraph id="H524D862AD1BE4D6C972916ABF2DFF440" commented="no"><enum>(B)</enum><text>in subparagraph (U), by striking the period at the end and inserting <quote>, and</quote>, and</text></subparagraph><subparagraph id="HA1973047F4AE4049AAB9BDCE1899F5FB" commented="no"><enum>(C)</enum><text>by inserting after subparagraph (U) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H5A851C137DC54477BB7443FEA4BA6174" changed="added" reported-display-style="italic"><subparagraph id="H2D21C1E6668843AAB241A6B6C93E6503" commented="no"><enum>(V)</enum><text display-inline="yes-display-inline">an omission of a correct vehicle identification number required under section 45W(e) (relating to commercial clean vehicle credit) to be included on a return.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="H6BE2807F10DA4F85A6DED45EC2B8E9F1" commented="no"><enum>(3)</enum><text>The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by adding at the end the following new item:</text><quoted-block display-inline="no-display-inline" id="H560B1C0C282F456D91D8D6B95B021CA9" style="OLC" changed="added" reported-display-style="italic"><toc changed="added" reported-display-style="italic"><toc-entry bold="off" level="section">Sec. 45W. Qualified commercial clean vehicle credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H9E81A0CB03474C84A80DAA7F4360CAF5" commented="no"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to vehicles acquired after December 31, 2022.</text></subsection></section><section id="HBFF77DCFDEF2422A920F3B23E7605D94" display-inline="no-display-inline" section-type="subsequent-section" commented="no"><enum>13404.</enum><header>Alternative fuel refueling property credit</header><subsection id="HF2ECD2219ECE4A9EBCEB48AF053F78EA" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/30C">Section 30C(g)</external-xref> is amended by striking <quote>December 31, 2021</quote> and inserting <quote>December 31, 2032</quote>.</text></subsection><subsection id="H8CBE69A720134E77ABEDF57C622D26BE" commented="no"><enum>(b)</enum><header>Credit for property of a character subject to depreciation</header><paragraph id="H33D2174D8A614A87A59CDDD333A65423" commented="no"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30C">Section 30C(a)</external-xref> is amended by inserting <quote>(6 percent in the case of property of a character subject to depreciation)</quote> after <quote>30 percent</quote>.</text></paragraph><paragraph id="id0E27D3F844F34F67A2F03F1D455D811A" commented="no"><enum>(2)</enum><header>Modification of credit limitation</header><text>Subsection (b) of <external-xref legal-doc="usc" parsable-cite="usc/26/30C">section 30C</external-xref> is amended—</text><subparagraph id="id14BB922EDC134CD9A672862330D55E4A" commented="no"><enum>(A)</enum><text>in the matter preceding paragraph (1)—</text><clause commented="no" id="idF089112EF404424DA13FAF83B8454A2A"><enum>(i)</enum><text>by striking <quote>with respect to all</quote> and inserting <quote>with respect to any single item of</quote>, and</text></clause><clause id="id72709946FA3D4C0BA18803D94985E9BF" commented="no"><enum>(ii)</enum><text>by striking <quote>at a location</quote>, and</text></clause></subparagraph><subparagraph id="id8181B9536D16474CBCF0EA53E0941E13" commented="no"><enum>(B)</enum><text>in paragraph (1), by striking <quote>$30,000 in the case of a property</quote> and inserting <quote>$100,000 in the case of any such item of property</quote>.</text></subparagraph></paragraph><paragraph id="HC0F9FC22CA564FEEA064BA6E909A3002" commented="no"><enum>(3)</enum><header>Bidirectional charging equipment included as qualified alternative fuel vehicle refueling property</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30C">Section 30C(c)</external-xref> is amended to read as follows: </text><quoted-block style="OLC" id="H60C2D19980FF461F947B378C54B265FE" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subsection id="H850A5511293F4309B73B235931F2539E" commented="no"><enum>(c)</enum><header>Qualified alternative fuel vehicle refueling property</header><text display-inline="yes-display-inline">For purposes of this section—</text><paragraph id="HAE77106A99804FFA9EFEF01F57CB4ED1" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The term <quote>qualified alternative fuel vehicle refueling property</quote> has the same meaning as the term <quote>qualified clean-fuel vehicle refueling property</quote> would have under section 179A if—</text><subparagraph id="HD3B8F7E5AC1742F6BD9C4A1C0E6662E6" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">paragraph (1) of section 179A(d) did not apply to property installed on property which is used as the principal residence (within the meaning of section 121) of the taxpayer, and</text></subparagraph><subparagraph id="HD539DDC885A84E309D4060D9BB1C1812" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">only the following were treated as clean-burning fuels for purposes of section 179A(d):</text><clause id="H1F4FE59404944A599A4A2567FD79745A" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">Any fuel at least 85 percent of the volume of which consists of one or more of the following: ethanol, natural gas, compressed natural gas, liquified natural gas, liquefied petroleum gas, or hydrogen.</text></clause><clause id="H1971AEBDAC1B4240AD02360EF0CAA175" commented="no"><enum>(ii)</enum><text>Any mixture—</text><subclause id="H6C205AD47D52423EB7CC3262A1314457" commented="no"><enum>(I)</enum><text display-inline="yes-display-inline">which consists of two or more of the following: biodiesel (as defined in section 40A(d)(1)), diesel fuel (as defined in section 4083(a)(3)), or kerosene, and</text></subclause><subclause id="HF804E7642D98477781AFDD3B49CD930E" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">at least 20 percent of the volume of which consists of biodiesel (as so defined) determined without regard to any kerosene in such mixture.</text></subclause></clause><clause id="HFC9CD3DB0BE446A2A056EAAB7B75D297" commented="no"><enum>(iii)</enum><text>Electricity.</text></clause></subparagraph></paragraph><paragraph id="H3089A289DC21411F9B7DABFFD44052C3" commented="no"><enum>(2)</enum><header>Bidirectional charging equipment</header><text display-inline="yes-display-inline">Property shall not fail to be treated as qualified alternative fuel vehicle refueling property solely because such property—</text><subparagraph id="H1A6963AC2FA4411CA061C66E03A3CA2B" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">is capable of charging the battery of a motor vehicle propelled by electricity, and</text></subparagraph><subparagraph id="H6C58F396FDE54F9FA675DC598C16736B" commented="no"><enum>(B)</enum><text>allows discharging electricity from such battery to an electric load external to such motor vehicle.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="HC66F5DF8E45841D6A362B569C568651E" display-inline="no-display-inline" commented="no"><enum>(c)</enum><header>Certain electric charging stations included as qualified alternative fuel vehicle refueling property</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/30C">Section 30C</external-xref> is amended by redesignating subsections (f) and (g) as subsections (g) and (h), respectively, and by inserting after subsection (e) the following:</text><quoted-block style="OLC" id="HA739A3045E244BE7B5AEB9F7592C7FCD" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subsection id="HF7C32A219B3349EB8174AEAD1B6A44DD" commented="no"><enum>(f)</enum><header>Special rule for electric charging stations for certain vehicles with 2 or 3 wheels</header><text display-inline="yes-display-inline">For purposes of this section—</text><paragraph id="H871FCDAB64AC4172B03FC3A898BE0B5F" commented="no"><enum>(1)</enum><header>In general</header><text>The term <term>qualified alternative fuel vehicle refueling property</term> includes any property described in subsection (c) for the recharging of a motor vehicle described in paragraph (2), but only if such property—</text><subparagraph id="H421B5B57AE3B43A3A06868ADCDD2C7C8" commented="no"><enum>(A)</enum><text>meets the requirements of subsection (a)(2), and</text></subparagraph><subparagraph id="HE81577B8B9D04729A88A535CB5759FD9" commented="no"><enum>(B)</enum><text>is of a character subject to depreciation. </text></subparagraph></paragraph><paragraph id="H03CA20496FF34221BA6F61FC7FB8DADC" commented="no"><enum>(2)</enum><header>Motor vehicle</header><text display-inline="yes-display-inline">A motor vehicle is described in this paragraph if the motor vehicle—</text><subparagraph id="H7843421BAA7B4EEDBFF29E1D8AD0E742" commented="no"><enum>(A)</enum><text>is manufactured primarily for use on public streets, roads, or highways (not including a vehicle operated exclusively on a rail or rails),</text></subparagraph><subparagraph id="H37CCE772575A4141811E34F2BB3C7900" commented="no"><enum>(B)</enum><text>has 2 or 3 wheels, and</text></subparagraph><subparagraph id="id78880C75337A4B8CABA43AB5F6B5D18D" commented="no"><enum>(C)</enum><text>is propelled by electricity.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HF98E30AFFD70479D8B14BB55AFD0F504" commented="no" display-inline="no-display-inline"><enum>(d)</enum><header>Wage and apprenticeship requirements</header><text display-inline="yes-display-inline">Section 30C, as amended by this section, is further amended by redesignating subsections (g) and (h) as subsections (h) and (i) and by inserting after subsection (f) the following new subsection: </text><quoted-block style="OLC" id="H84ADCD43355F474882F08988F6CCB5E3" display-inline="no-display-inline" changed="added" reported-display-style="italic"><subsection id="H3EED354A0EB4462AA99060E7F837F418" commented="no"><enum>(g)</enum><header>Wage and apprenticeship requirements</header><paragraph id="HA3DAEEAE2F44432AAAF269C937C10AF2" commented="no"><enum>(1)</enum><header>Increased credit amount</header><subparagraph id="H4B9F578AFD344DE8988C115011C22BF5" commented="no"><enum>(A)</enum><header>In general</header><text>In the case of any qualified alternative fuel vehicle refueling project which satisfies the requirements of subparagraph (C), the amount of the credit determined under subsection (a) for any qualified alternative fuel vehicle refueling property of a character subject to an allowance for depreciation which is part of such project shall be equal to such amount (determined without regard to this sentence) multiplied by 5.</text></subparagraph><subparagraph id="H04328A625AB040AF89BE73912F9055C6" commented="no"><enum>(B)</enum><header>Qualified alternative fuel vehicle refueling project</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>qualified alternative fuel vehicle refueling project</quote> means a project consisting of one or more properties that are part of a single project.</text></subparagraph><subparagraph id="H065A23CBC5FA4835BAF3AC8676755DF7" commented="no"><enum>(C)</enum><header>Project requirements</header><text display-inline="yes-display-inline">A project meets the requirements of this subparagraph if it is one of the following: </text><clause id="H5A1693F62F34474CB9E71CDCDCC7E135" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">A project the construction of which begins prior to the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (2)(A) and (3).</text></clause><clause id="HDE9B4C3C7F7F44E697AC824689D85B52" commented="no"><enum>(ii)</enum><text>A project which satisfies the requirements of paragraphs (2)(A) and (3).</text></clause></subparagraph></paragraph><paragraph id="H2A59F6A4D23343CF98FCF9C5334AFF80" commented="no"><enum>(2)</enum><header>Prevailing wage requirements</header><subparagraph id="HB3FF7887A16C47D0ACC1107F5A058B5F" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The requirements described in this subparagraph with respect to any qualified alternative fuel vehicle refueling project are that the taxpayer shall ensure that any laborers and mechanics employed by the taxpayer or any contractor or subcontractor in the construction of any qualified alternative fuel vehicle refueling property which is part of such project shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality in which such project is located as most recently determined by the Secretary of Labor, in accordance with subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code.</text></subparagraph><subparagraph id="HBB91C3F465014DC39C35347CAFF41054" commented="no"><enum>(B)</enum><header>Correction and penalty related to failure to satisfy wage requirements</header><text display-inline="yes-display-inline">Rules similar to the rules of section 45(b)(7)(B) shall apply.</text></subparagraph></paragraph><paragraph id="H36EC08A4C7994E52B2653F4B75BAB76E" commented="no"><enum>(3)</enum><header>Apprenticeship requirements</header><text display-inline="yes-display-inline">Rules similar to the rules of section 45(b)(8) shall apply.</text></paragraph><paragraph id="H1E2E52A9D5C24965BFA8D6749150CF25" commented="no"><enum>(4)</enum><header>Regulations and guidance</header><text display-inline="yes-display-inline">The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of administering the requirements of this subsection.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H854F36E8D8D6474F8A22E65E01E350C7" commented="no"><enum>(e)</enum><header>Eligible census tracts</header><text>Subsection (c) of <external-xref legal-doc="usc" parsable-cite="usc/26/30C">section 30C</external-xref>, as amended by subsection (b)(3), is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id23285D64C209448FB0E18F04CF5755D0" changed="added" reported-display-style="italic"><paragraph commented="no" id="id6D81C358CF5541779EC3BB8DE35CF9DD"><enum>(3)</enum><header>Property required to be located in eligible census tracts</header><subparagraph commented="no" id="idE46B54B0393F49E99FE92F87A4A82AF2"><enum>(A)</enum><header>In general</header><text>Property shall not be treated as qualified alternative fuel vehicle refueling property unless such property is placed in service in an eligible census tract.</text></subparagraph><subparagraph commented="no" id="idABED025C205F4747B68B24B305E460D2"><enum>(B)</enum><header>Eligible census tract</header><clause commented="no" id="id65707BDD71814CFE822C6595ACD003D9"><enum>(i)</enum><header>In general</header><text>For purposes of this paragraph, the term <term>eligible census tract</term> means any population census tract which—</text><subclause commented="no" id="id7284625049F849DE92834E664656F2D2"><enum>(I)</enum><text>is described in section 45D(e), or</text></subclause><subclause commented="no" id="id221A7213B07D4AC086269AD218591556"><enum>(II)</enum><text>is not an urban area.</text></subclause></clause><clause commented="no" id="id487ADE4A2C47409A90AD03A243FC0ABB"><enum>(ii)</enum><header>Urban area</header><text>For purposes of clause (i)(II), the term <term>urban area</term> means a census tract (as defined by the Bureau of the Census) which, according to the most recent decennial census, has been designated as an urban area by the Secretary of Commerce.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="id2A99EC84DBE74D8EB9E0A667460205D1"><enum>(f)</enum><header>Effective date</header><paragraph commented="no" id="id3507F0B4672645E498599615ADA6503B"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided in paragraph (2), the amendments made by this section shall apply to property placed in service after December 31, 2022.</text></paragraph><paragraph commented="no" id="id8550CA0A50484ED284D81C791FBC191D"><enum>(2)</enum><header>Extension</header><text>The amendments made by subsection (a) shall apply to property placed in service after December 31, 2021. </text></paragraph></subsection></section></part><part id="HCBDCF91511A648EE81D637902E889C3F"><enum>5<?LEXA-Enum 5?></enum><header>Investment in Clean Energy Manufacturing and Energy Security</header><section id="HF3E71E495D0646B88F07E3CD9FC3E9DC"><enum>13501.</enum><header>Extension of the advanced energy project credit</header><subsection id="H7C4D7E69FF0D4EDFB60F9DC85F58FDEB"><enum>(a)</enum><header>Extension of credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48C">Section 48C</external-xref> is amended by redesignating subsection (e) as subsection (f) and by inserting after subsection (d) the following new subsection:</text><quoted-block id="HD89401A5C77240739CF28393AD81422D" style="OLC" changed="added" reported-display-style="italic"><subsection id="HCD94FF84FA864D4B92993AB36F3A9686" commented="no"><enum>(e)</enum><header>Additional allocations</header><paragraph id="H6E4C9F519A8345A88EC65F0BB817FC88" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 180 days after the date of enactment of this subsection, the Secretary shall establish a program to consider and award certifications for qualified investments eligible for credits under this section to qualifying advanced energy project sponsors.</text></paragraph><paragraph id="H6AA8326567E343B7AE83808520E54DDE" commented="no"><enum>(2)</enum><header>Limitation</header><text>The total amount of credits which may be allocated under the program established under paragraph (1) shall not exceed $10,000,000,000, of which not greater than $6,000,000,000 may be allocated to qualified investments which are not located within a census tract which—</text><subparagraph commented="no" id="idFFD91A40BA7D444993F4BFFD53E30867"><enum>(A)</enum><text>is described in clause (iii) of section 45(b)(11)(B), and</text></subparagraph><subparagraph commented="no" id="id0628811DE28342BBB1F8D26996004B21"><enum>(B)</enum><text>prior to the date of enactment of this subsection, had no project which received a certification and allocation of credits under subsection (d).</text></subparagraph></paragraph><paragraph id="H529DEC1F7FEF437C992D162085E428AF"><enum>(3)</enum><header>Certifications</header><subparagraph id="H8BFEF9ABB1A54713855D94B6E3BBED7A"><enum>(A)</enum><header>Application requirement</header><text>Each applicant for certification under this subsection shall submit an application at such time and containing such information as the Secretary may require.</text></subparagraph><subparagraph id="H408BC49A28DA4C57A311880C99BA9007"><enum>(B)</enum><header>Time to meet criteria for certification</header><text>Each applicant for certification shall have 2 years 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="H6CDB0CA0B2E94404AD02E2D8883C0D51"><enum>(C)</enum><header>Period of issuance</header><text>An applicant which receives a certification shall have 2 years from the date of issuance of the certification in order to place the project in service and to notify the Secretary that such project has been so placed in service, and if such project is not placed in service by that time period, then the certification shall no longer be valid. If any certification is revoked under this subparagraph, the amount of the limitation under paragraph (2) shall be increased by the amount of the credit with respect to such revoked certification.</text></subparagraph><subparagraph id="idDBF4A1DCAE2E42588605995DF0374BDB"><enum>(D)</enum><header>Location of project</header><text>In the case of an applicant which receives a certification, if the Secretary determines that the project has been placed in service at a location which is materially different than the location specified in the application for such project, the certification shall no longer be valid.</text></subparagraph></paragraph><paragraph id="H5B466014E59840B98D96A42FDEE635C9"><enum>(4)</enum><header>Credit rate conditioned upon wage and apprenticeship requirements</header><subparagraph id="HEBE976E347A44C919A6C9EFEB715E35C"><enum>(A)</enum><header>Base rate</header><text display-inline="yes-display-inline">For purposes of allocations under this subsection, the amount of the credit determined under subsection (a) shall be determined by substituting <quote>6 percent</quote> for <quote>30 percent</quote>. </text></subparagraph><subparagraph id="H6DB62A00ED1E44B099C47CCDF3B60626"><enum>(B)</enum><header>Alternative rate</header><text display-inline="yes-display-inline">In the case of any project which satisfies the requirements of paragraphs (5)(A) and (6), subparagraph (A) shall not apply. </text></subparagraph></paragraph><paragraph id="HD9518125FD9849DBA78CA94B1CAD5E7C"><enum>(5)</enum><header>Prevailing wage requirements</header><subparagraph id="H286D4C46BC62447DA6179DBAD55D93D3"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The requirements described in this subparagraph with respect to a project are that the taxpayer shall ensure that any laborers and mechanics employed by the taxpayer or any contractor or subcontractor in the re-equipping, expansion, or establishment of a manufacturing facility shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality in which such project is located as most recently determined by the Secretary of Labor, in accordance with subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code.</text></subparagraph><subparagraph id="HD4401D62154940A68BC49207E7D4F0E3"><enum>(B)</enum><header>Correction and penalty related to failure to satisfy wage requirements</header><text>Rules similar to the rules of section 45(b)(7)(B) shall apply.</text></subparagraph></paragraph><paragraph id="HE1543A24D3754F63AD5796C27C688CDE"><enum>(6)</enum><header>Apprenticeship requirements</header><text display-inline="yes-display-inline">Rules similar to the rules of section 45(b)(8) shall apply.</text></paragraph><paragraph id="idEB2B0B0C0E604090ADFFBF77C709DDAA"><enum>(7)</enum><header>Disclosure of allocations</header><text display-inline="yes-display-inline">The Secretary shall, upon making a certification under this subsection, publicly disclose the identity of the applicant and the amount of the credit with respect to such applicant.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H0EBB0E93B6E74DDC8C666AF012EC7FBE"><enum>(b)</enum><header>Modification of qualifying advanced energy projects</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48C">Section 48C(c)(1)(A)</external-xref> is amended—</text><paragraph commented="no" id="id5C2F645B1A664B32AF144272B1294680"><enum>(1)</enum><text>by inserting <quote>, any portion of the qualified investment of which is certified by the Secretary under subsection (e) as eligible for a credit under this section</quote> after <quote>means a project</quote>,</text></paragraph><paragraph commented="no" id="id88351213FE874800AEA383459D2CD101"><enum>(2)</enum><text>in clause (i)—</text><subparagraph commented="no" id="id799F782C894E48C9B6DF924CFAA81243"><enum>(A)</enum><text>by striking <quote>a manufacturing facility for the production of</quote> and inserting <quote>an industrial or manufacturing facility for the production or recycling of</quote>,</text></subparagraph><subparagraph commented="no" id="id1CFC1B438D1D4AB2B248FA34D2D40833"><enum>(B)</enum><text>in clause (I), by inserting <quote>water,</quote> after <quote>sun,</quote>,</text></subparagraph><subparagraph commented="no" id="idFC2A8F2A43AB42B18BAD2114FC6EB92A"><enum>(C)</enum><text>in clause (II), by striking <quote>an energy storage system for use with electric or hybrid-electric motor vehicles</quote> and inserting <quote>energy storage systems and components</quote>,</text></subparagraph><subparagraph commented="no" id="id08D1772FDE35401FB5A0CD7C5E821FC6"><enum>(D)</enum><text>in clause (III), by striking <quote>grids to support the transmission of intermittent sources of renewable energy, including storage of such energy</quote> and inserting <quote>grid modernization equipment or components</quote>,</text></subparagraph><subparagraph commented="no" id="idF6D90D44C4914309A7BD082D8E938C1F"><enum>(E)</enum><text>in subclause (IV), by striking <quote>and sequester carbon dioxide emissions</quote> and inserting <quote>, remove, use, or sequester carbon oxide emissions</quote>,</text></subparagraph><subparagraph commented="no" id="id2DCC49B992034E22990827511D41BBC9"><enum>(F)</enum><text>by striking subclause (V) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id5774521C61C54979BF4C1EFE4B4E95C9" changed="added" reported-display-style="italic"><subclause commented="no" id="id432FC812C42F4897AE3867E3FD87E64A"><enum>(V)</enum><text>equipment designed to refine, electrolyze, or blend any fuel, chemical, or product which is—</text><item commented="no" id="id6A443FD12BFB4A1CA8639EB24C842D6B"><enum>(aa)</enum><text>renewable, or</text></item><item commented="no" id="id87938C771EDC45D99B17029AA89C4566"><enum>(bb)</enum><text>low-carbon and low-emission,</text></item></subclause><after-quoted-block>,</after-quoted-block></quoted-block></subparagraph><subparagraph commented="no" id="idD35307901ED24563A43B68BA5D9DDC88"><enum>(G)</enum><text>by striking subclause (VI),</text></subparagraph><subparagraph commented="no" id="idEAEDDCC1C2D443A5AF91C4FC6F1FA0C8"><enum>(H)</enum><text>by redesignating subclause (VII) as subclause (IX),</text></subparagraph><subparagraph commented="no" id="id34754A7D772F4B2CBED0D1BE7AF132F3"><enum>(I)</enum><text>by inserting after subclause (V) the following new subclauses:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id2B735509B7CE4FF1B627E5854D2D05AE" changed="added" reported-display-style="italic"><subclause commented="no" id="id879171FCB41D46668C39EFBE6A4F2091"><enum>(VI)</enum><text>property designed to produce energy conservation technologies (including residential, commercial, and industrial applications),</text></subclause><subclause commented="no" id="idCB77419D439F48058037D9DE15D7C779"><enum>(VII)</enum><text>light-, medium-, or heavy-duty electric or fuel cell vehicles, as well as—</text><item commented="no" id="idF371491750F8477E8FCA40CABF5FC210"><enum>(aa)</enum><text>technologies, components, or materials for such vehicles, and</text></item><item commented="no" id="idF2B5553613894C51ADB945B6604BCC62"><enum>(bb)</enum><text>associated charging or refueling infrastructure,</text></item></subclause><subclause commented="no" id="id40D6300996724F07918F952994EAD93B"><enum>(VIII)</enum><text>hybrid vehicles with a gross vehicle weight rating of not less than 14,000 pounds, as well as technologies, components, or materials for such vehicles, or</text></subclause><after-quoted-block>, and</after-quoted-block></quoted-block></subparagraph><subparagraph commented="no" id="idA31577F54FBC458FB07D4F23DC4360C1"><enum>(J)</enum><text>in subclause (IX), as so redesignated, by striking <quote>and</quote> at the end, and</text></subparagraph></paragraph><paragraph commented="no" id="id8D2547AA1E6040619522DFB689F5DEC6"><enum>(3)</enum><text>by striking clause (ii) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idB146240BCD7D49E4A9C0F44D4C09CDC2" changed="added" reported-display-style="italic"><clause commented="no" id="id41ABDC9A97A24DDD876D9F6D776536F8"><enum>(ii)</enum><text>which re-equips an industrial or manufacturing facility with equipment designed to reduce greenhouse gas emissions by at least 20 percent through the installation of—</text><subclause commented="no" id="id9A13ADFF50DD4652A2B0EF9CE3653734"><enum>(I)</enum><text>low- or zero-carbon process heat systems,</text></subclause><subclause commented="no" id="id6ED68678D2814DDC99482B6FB3ACB10A"><enum>(II)</enum><text>carbon capture, transport, utilization and storage systems,</text></subclause><subclause commented="no" id="id05E8964F015E4C9AB8F730D8A82789F2"><enum>(III)</enum><text>energy efficiency and reduction in waste from industrial processes, or</text></subclause><subclause commented="no" id="idC4CBD460D9D24C35A154853218221FD7"><enum>(IV)</enum><text>any other industrial technology designed to reduce greenhouse gas emissions, as determined by the Secretary, or</text></subclause></clause><clause commented="no" id="id0BD4DA25651A44C4A5B1EF4AEC452B29"><enum>(iii)</enum><text>which re-equips, expands, or establishes an industrial facility for the processing, refining, or recycling of critical materials (as defined in section 7002(a) of the Energy Act of 2020 (<external-xref legal-doc="usc" parsable-cite="usc/30/1606">30 U.S.C. 1606(a)</external-xref>).</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="HC3743CDA671C41E0AEC684416765A8BC"><enum>(c)</enum><header>Conforming amendment</header><text>Subparagraph (A) of <external-xref legal-doc="usc" parsable-cite="usc/26/48C">section 48C(c)(2)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id0CE9FA4A0BF54C53B4DFE411B042F79C" changed="added" reported-display-style="italic"><subparagraph id="id7A2350D8C99A43C99534FB0E6A74A0DD"><enum>(A)</enum><text>which is necessary for—</text><clause id="idD71321EB4FD1415E9738A4AA8689B5A8"><enum>(i)</enum><text>the production or recycling of property described in clause (i) of paragraph (1)(A),</text></clause><clause id="idC0F06EABB84C41528993ACCF40084F6F"><enum>(ii)</enum><text>re-equipping an industrial or manufacturing facility described in clause (ii) of such paragraph, or</text></clause><clause id="id83901452425A49C0AD005E05BA712949" commented="no"><enum>(iii)</enum><text>re-equipping, expanding, or establishing an industrial facility described in clause (iii) of such paragraph,</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id3B4761667131488B9334F0FC64B872CE"><enum>(d)</enum><header>Denial of double benefit</header><text>48C(f), as redesignated by this section, is amended by striking <quote>or 48B</quote> and inserting <quote>48B, 48E, 45Q, or 45V</quote>.</text></subsection><subsection id="HB4F18D0FF2694217B92AEA36020805A7"><enum>(e)</enum><header>Effective date</header><text>The amendments made by this section shall take effect on January 1, 2023.</text></subsection></section><section section-type="subsequent-section" id="H71B434EE56C74913A3FC96E7D9612A2D" commented="no"><enum>13502.</enum><header>Advanced manufacturing production credit</header><subsection id="H459C54F2381A425882B1A716F4234C13" commented="no"><enum>(a)</enum><header>In general</header><text>Subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by adding at the end the following new section:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HB16FC2B2512A4707A9DBB7601BDF58DD" changed="added" reported-display-style="italic"><section id="HB774CBD50EB94D498EE0C11FAC97E88D" commented="no"><enum>45X.</enum><header>Advanced manufacturing production credit</header><subsection id="H673CF7C9834C443BB3BBF8AFC5F7928E" commented="no"><enum>(a)</enum><header>In general</header><paragraph id="H693407D233C3416FBB81F8E766E5DB3C" commented="no"><enum>(1)</enum><header>Allowance of credit</header><text>For purposes of section 38, the advanced manufacturing production credit for any taxable year is an amount equal to the sum of the credit amounts determined under subsection (b) with respect to each eligible component which is—</text><subparagraph id="H0FB6C0BC79A744559E79F390C0A249E6" commented="no"><enum>(A)</enum><text>produced by the taxpayer, and</text></subparagraph><subparagraph id="H3607638313AD4C4BA19D66415ABAB93E" commented="no"><enum>(B)</enum><text>during the taxable year, sold by such taxpayer to an unrelated person.</text></subparagraph></paragraph><paragraph id="HB7EB366095944A47AC2D68011DC9D1D7" commented="no"><enum>(2)</enum><header>Production and sale must be in trade or business</header><text>Any eligible component produced and sold by the taxpayer shall be taken into account only if the production and sale described in paragraph (1) is in a trade or business of the taxpayer.</text></paragraph><paragraph id="HCFB319B58AED41478C887B7E76E71488"><enum>(3)</enum><header>Unrelated person</header><subparagraph id="idF53C7A961A2144719C5E88AD44B14DD3"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this subsection, a taxpayer shall be treated as selling components to an unrelated person if such component is sold to such person by a person related to the taxpayer. </text></subparagraph><subparagraph id="id15B8079A7254419F85B4B5CC4C737659"><enum>(B)</enum><header>Election</header><clause id="id1C56AC8C90974BB49332013611B7B4E6"><enum>(i)</enum><header>In general</header><text>At the election of the taxpayer (in such form and manner as the Secretary may prescribe), a sale of components by such taxpayer to a related person shall be deemed to have been made to an unrelated person.</text></clause><clause id="id5353A3471ABF4E6E81ED812CF097E66B"><enum>(ii)</enum><header>Requirement</header><text>As a condition of, and prior to, any election described in clause (i), the Secretary may require such information or registration as the Secretary deems necessary for purposes of preventing duplication, fraud, or any improper or excessive amount determined under paragraph (1).</text></clause></subparagraph></paragraph></subsection><subsection id="HF32938C41A664265A1BDBE88EEE48401" commented="no"><enum>(b)</enum><header>Credit amount</header><paragraph id="H97C3F8D07A4349FEAA97502CB805C9CF" commented="no"><enum>(1)</enum><header>In general</header><text>Subject to paragraph (3), the amount determined under this subsection with respect to any eligible component, including any eligible component it incorporates, shall be equal to—</text><subparagraph id="H41E107175BCD418EB564027FC8B90CCB" commented="no"><enum>(A)</enum><text>in the case of a thin film photovoltaic cell or a crystalline photovoltaic cell, an amount equal to the product of—</text><clause id="HFC5A8F72A44E48AA81140A2A764A6E66" commented="no"><enum>(i)</enum><text>4 cents, multiplied by</text></clause><clause id="H092D1FD35C514B659FBB99EEAE0F7166" commented="no"><enum>(ii)</enum><text>the capacity of such cell (expressed on a per direct current watt basis),</text></clause></subparagraph><subparagraph id="H505E354888034388955356F2B3AAC9DC" commented="no"><enum>(B)</enum><text>in the case of a photovoltaic wafer, $12 per square meter,</text></subparagraph><subparagraph id="HCC57FB039E554E20B3B2060B92F0D86D" commented="no"><enum>(C)</enum><text>in the case of solar grade polysilicon, $3 per kilogram,</text></subparagraph><subparagraph commented="no" id="idC0152B4DFAF54D3495E48FA552B8306B"><enum>(D)</enum><text>in the case of a polymeric backsheet, 40 cents per square meter,</text></subparagraph><subparagraph id="H88F85B8892324636AB16E54C58A43619" commented="no"><enum>(E)</enum><text>in the case of a solar module, an amount equal to the product of—</text><clause id="HD303DCFB75F243E0BE24D1B82EA3A2D2" commented="no"><enum>(i)</enum><text>7 cents, multiplied by</text></clause><clause id="H5945481DA299443AB9903FED4F413AEE" commented="no"><enum>(ii)</enum><text>the capacity of such module (expressed on a per direct current watt basis),</text></clause></subparagraph><subparagraph id="H7E251F1DBDCF472E849D168F57EA20CC" commented="no"><enum>(F)</enum><text>in the case of a wind energy component—</text><clause commented="no" id="idAC2EAE3801D24617AE0FF2DC1F19927D"><enum>(i)</enum><text>if such component is a related offshore wind vessel, an amount equal to 10 percent of the sales price of such vessel, and</text></clause><clause commented="no" id="id6FF1062A4D21484BAEDCCC1FA77E32E1"><enum>(ii)</enum><text>if such component is not described in clause (i), an amount equal to the product of—</text><subclause id="H5F8F796255B849CA901EAC4C741F04FE" commented="no"><enum>(I)</enum><text>the applicable amount with respect to such component (as determined under paragraph (2)(A)), multiplied by</text></subclause><subclause id="H3183D46F823F444D8449EDB29D5B3114" commented="no"><enum>(II)</enum><text>the total rated capacity (expressed on a per watt basis) of the completed wind turbine for which such component is designed,</text></subclause></clause></subparagraph><subparagraph id="id50FA4CD3A9E7441EAFEF238132FB53FB"><enum>(G)</enum><text>in the case of a torque tube, 87 cents per kilogram,</text></subparagraph><subparagraph id="id0A3788B5AF4C4D6DA13C1BA6799F8C37"><enum>(H)</enum><text>in the case of a structural fastener, $2.28 per kilogram,</text></subparagraph><subparagraph id="id3C66BF89AB0C4460801D3AB9B6888E0C"><enum>(I)</enum><text>in the case of an inverter, an amount equal to the product of—</text><clause id="idE7EB70B45C064FE18BC6B34184AD0A0E"><enum>(i)</enum><text>the applicable amount with respect to such inverter (as determined under paragraph (2)(B)), multiplied by</text></clause><clause id="id8887B5DA0DC2438F92B4FBE22AD55E47"><enum>(ii)</enum><text>the capacity of such inverter (expressed on a per alternating current watt basis),</text></clause></subparagraph><subparagraph id="id1A97CC5CE7404E0FA910D6E0E621896F"><enum>(J)</enum><text>in the case of electrode active materials, an amount equal to 10 percent of the costs incurred by the taxpayer with respect to production of such materials,</text></subparagraph><subparagraph id="id4CD11817471D485387E2C4C983B53E04"><enum>(K)</enum><text>in the case of a battery cell, an amount equal to the product of—</text><clause id="idBB2C0EBC088641D3864B27502EADE1FA"><enum>(i)</enum><text>$35, multiplied by</text></clause><clause id="idB4A65F6B0DA44296987C2DE6A56C5560"><enum>(ii)</enum><text>subject to paragraph (4), the capacity of such battery cell (expressed on a kilowatt-hour basis),</text></clause></subparagraph><subparagraph id="id0ABF56D4CCA3439BA966DD68293CEE60"><enum>(L)</enum><text>in the case of a battery module, an amount equal to the product of—</text><clause id="idCE369C5712AE489FA5BD0FA5A17708CB"><enum>(i)</enum><text>$10 (or, in the case of a battery module which does not use battery cells, $45), multiplied by</text></clause><clause id="id1BF6F8627C844D2797852DD12CECC2E4"><enum>(ii)</enum><text>subject to paragraph (4), the capacity of such battery module (expressed on a kilowatt-hour basis), and</text></clause></subparagraph><subparagraph id="id695D518254A142CDBAB4A66C73AF1D22"><enum>(M)</enum><text>in the case of any applicable critical mineral, an amount equal to 10 percent of the costs incurred by the taxpayer with respect to production of such mineral.</text></subparagraph></paragraph><paragraph id="idC4E022FA9BD341E6A2CD9A9DEDC0B5E0"><enum>(2)</enum><header>Applicable amounts</header><subparagraph id="H5C7B92A514EA4F87B21DAD4B5E4ADCBC" commented="no"><enum>(A)</enum><header>Wind energy components</header><text>For purposes of paragraph (1)(F)(ii), the applicable amount with respect to any wind energy component shall be—</text><clause id="H02A88A126DD848F68FDACEA53C90EDDA" commented="no"><enum>(i)</enum><text>in the case of a blade, 2 cents,</text></clause><clause id="H8683ECDF15CB46E1B84D8B2856A2E2D5" commented="no"><enum>(ii)</enum><text>in the case of a nacelle, 5 cents,</text></clause><clause id="H26DBE871DB3C4EEBB4C735B5C50CDFCF" commented="no"><enum>(iii)</enum><text>in the case of a tower, 3 cents, and</text></clause><clause id="H184B09E0DED640CEBCDA17D56A0C92FF" commented="no"><enum>(iv)</enum><text>in the case of an offshore wind foundation—</text><subclause id="H803A20B5688D44AD97ADABD98155CF1A" commented="no"><enum>(I)</enum><text>which uses a fixed platform, 2 cents, or</text></subclause><subclause id="H44D54F7AB08A495CB24E34782C79A131" commented="no"><enum>(II)</enum><text>which uses a floating platform, 4 cents. </text></subclause></clause></subparagraph><subparagraph id="id5DF384C1EFD344329A33506E01BE85B1"><enum>(B)</enum><header>Inverters</header><text>For purposes of paragraph (1)(I), the applicable amount with respect to any inverter shall be—</text><clause id="id984EC5F145384F31A04BB043823CADCC"><enum>(i)</enum><text>in the case of a central inverter, 0.25 cents,</text></clause><clause id="id7434C1A736F64C52A6243839F0D0ACE4"><enum>(ii)</enum><text>in the case of a utility inverter, 1.5 cents,</text></clause><clause id="idAC2FDE9A544A403ABE78D129DDD937EB"><enum>(iii)</enum><text>in the case of a commercial inverter, 2 cents,</text></clause><clause id="idE5BD507C2CEC448F9C598C7AA4DEA6AC"><enum>(iv)</enum><text>in the case of a residential inverter, 6.5 cents, and</text></clause><clause id="id653595AC21334D8F83BD6CA011A85273"><enum>(v)</enum><text>in the case of a microinverter or a distributed wind inverter, 11 cents. </text></clause></subparagraph></paragraph><paragraph id="HB930B77DE5EA4241B1BAB8EBCA572632" commented="no"><enum>(3)</enum><header>Phase out</header><subparagraph id="H4F133C03D8E24641BCFAE56A3CC91ADD" commented="no"><enum>(A)</enum><header>In general</header><text>Subject to subparagraph (C), in the case of any eligible component sold after December 31, 2029, the amount determined under this subsection with respect to such component shall be equal to the product of—</text><clause id="HAEE83A233E4E42E7899AAD35BCFF03B4" commented="no"><enum>(i)</enum><text>the amount determined under paragraph (1) with respect to such component, as determined without regard to this paragraph, multiplied by</text></clause><clause id="HBC3489CB943B40298479488B9F5AF156" commented="no"><enum>(ii)</enum><text>the phase out percentage under subparagraph (B).</text></clause></subparagraph><subparagraph id="H0087FCD8C851413B92078785111B3B7E" commented="no"><enum>(B)</enum><header>Phase out percentage</header><text>The phase out percentage under this subparagraph is equal to—</text><clause id="H3EAE5137D12D496DA7B584A67DC7D995" commented="no"><enum>(i)</enum><text>in the case of an eligible component sold during calendar year 2030, 75 percent,</text></clause><clause id="H4FCDBF651B3647768231777E6B6B1289" commented="no"><enum>(ii)</enum><text>in the case of an eligible component sold during calendar year 2031, 50 percent,</text></clause><clause id="H8511435D545E4D51B29E7BF8BBCC5F09" commented="no"><enum>(iii)</enum><text>in the case of an eligible component sold during calendar year 2032, 25 percent,</text></clause><clause id="HA0CEC337451247CBBF5ACB36C088DBF1" commented="no"><enum>(iv)</enum><text>in the case of an eligible component sold after December 31, 2032, 0 percent.</text></clause></subparagraph><subparagraph commented="no" id="idB9ECFF66C10E4641A83998BA0474F795"><enum>(C)</enum><header>Exception</header><text>For purposes of determining the amount under this subsection with respect to any applicable critical mineral, this paragraph shall not apply.</text></subparagraph></paragraph><paragraph commented="no" id="id1CBD2A88A6BF4CFE9FE7E51F590EBEBC"><enum>(4)</enum><header>Limitation on capacity of battery cells and battery modules</header><subparagraph commented="no" id="id594D12D010E94A549F9D281BCBB647F7"><enum>(A)</enum><header>In general</header><text>For purposes of subparagraph (K)(ii) or (L)(ii) of paragraph (1), the capacity determined under either subparagraph with respect to a battery cell or battery module shall not exceed a capacity-to-power ratio of 100:1.</text></subparagraph><subparagraph commented="no" id="id2DFA60FE248C4C41ADCB536D42780B47"><enum>(B)</enum><header>Capacity-to-power ratio</header><text>For purposes of this paragraph, the term <term>capacity-to-power ratio</term> means, with respect to a battery cell or battery module, the ratio of the capacity of such cell or module to the maximum discharge amount of such cell or module.</text></subparagraph></paragraph></subsection><subsection commented="no" id="HDBE4F0C98E044C5886E5123A06238CD7"><enum>(c)</enum><header>Definitions</header><text>For purposes of this section—</text><paragraph id="HB4B8E7D246364A359A82FACFAB40B499" commented="no"><enum>(1)</enum><header>Eligible component</header><subparagraph id="H787942EA0157469EB7F6FC7F4B050FCC" commented="no"><enum>(A)</enum><header>In general</header><text>The term <term>eligible component</term> means—</text><clause id="H2F22574DEB0F4663A90E96E5ED133454" commented="no"><enum>(i)</enum><text>any solar energy component, </text></clause><clause id="H24ED8F09E1A94421B8EAEEB3C6757EC3" commented="no"><enum>(ii)</enum><text>any wind energy component,</text></clause><clause commented="no" id="id99036EBD6DD44B9585933D54B0680ACB"><enum>(iii)</enum><text>any inverter described in subparagraphs (B) through (G) of paragraph (2),</text></clause><clause commented="no" id="id7F0F0962271B4019A54792F519079C0A"><enum>(iv)</enum><text>any qualifying battery component, and</text></clause><clause commented="no" id="id3880CDFE9DEC46C7826BBADE9458C6CD"><enum>(v)</enum><text>any applicable critical mineral.</text></clause></subparagraph><subparagraph id="H71A6005180C24BB1A6CEB64922921001" commented="no"><enum>(B)</enum><header>Application with other credits</header><text>The term <term>eligible component</term> shall not include any property which is produced at a facility if the basis of any property which is part of such facility is taken into account for purposes of the credit allowed under section 48C after the date of the enactment of this section. </text></subparagraph></paragraph><paragraph id="HECBD46FFB31447A897E283614E51795F" commented="no"><enum>(2)</enum><header>Inverters</header><subparagraph id="idE21EDC518DBF4382B9A4CF11B57A3D25"><enum>(A)</enum><header>In general</header><text>The term <term>inverter</term> means an end product which is suitable to convert direct current electricity from 1 or more solar modules or certified distributed wind energy systems into alternating current electricity.</text></subparagraph><subparagraph id="id4B405D09AF3349E8BC39F927133BF63C"><enum>(B)</enum><header>Central inverter</header><text>The term <term>central inverter</term> means an inverter which is suitable for large utility-scale systems and has a capacity which is greater than 1,000 kilowatts (expressed on a per alternating current watt basis).</text></subparagraph><subparagraph id="id48F35064B3E1476E9694665E9F5C7A35"><enum>(C)</enum><header>Commercial inverter</header><text>The term <term>commercial inverter</term> means an inverter which—</text><clause id="idCC60364D0A6F4F8F81E50EEAACF7CC33"><enum>(i)</enum><text>is suitable for commercial or utility-scale applications,</text></clause><clause id="idFE13F74A19C4462C864F23B6E1F794AC"><enum>(ii)</enum><text>has a rated output of 208, 480, 600, or 800 volt three-phase power, and</text></clause><clause id="id12B7CFA9B1424EE99378E5AD2F1FC0F0"><enum>(iii)</enum><text>has a capacity which is not less than 20 kilowatts and not greater than 125 kilowatts (expressed on a per alternating current watt basis).</text></clause></subparagraph><subparagraph id="id288F03A632C04FCFB57455B578ABA71A"><enum>(D)</enum><header>Distributed wind inverter</header><clause id="id4D3F5BFC6A5E42EC8193E20A063B588A"><enum>(i)</enum><header>In general</header><text>The term <term>distributed wind inverter</term> means an inverter which—</text><subclause id="id64B2882B19A2442C93069482482AA1AF"><enum>(I)</enum><text>is used in a residential or non-residential system which utilizes 1 or more certified distributed wind energy systems, and</text></subclause><subclause id="idCCF279E83B3C462494B852428F92ACF3"><enum>(II)</enum><text>has a rated output of not greater than 150 kilowatts.</text></subclause></clause><clause id="id0422AB11FF514EB7AD7B3C6EDEA1AA46"><enum>(ii)</enum><header>Certified distributed wind energy system</header><text>The term <term>certified distributed wind energy system</term> means a wind energy system which is certified by an accredited certification agency to meet Standard 9.1-2009 of the American Wind Energy Association (including any subsequent revisions to or modifications of such Standard which have been approved by the American National Standards Institute).</text></clause></subparagraph><subparagraph id="idF1DE679A0BBE41B2AA720BC6571B9633"><enum>(E)</enum><header>Microinverter</header><text>The term <term>microinverter</term> means an inverter which—</text><clause id="idA4E5C4504F15465A99421577E824D4F5"><enum>(i)</enum><text>is suitable to connect with one solar module,</text></clause><clause id="idA5C54852DB65449F9C53257DD9221D53"><enum>(ii)</enum><text>has a rated output of—</text><subclause id="idB495829D730E4920AB34685CDC7D4999"><enum>(I)</enum><text>120 or 240 volt single-phase power, or </text></subclause><subclause id="id3E26A78DB7BC4065A833E4E99D4ED79C"><enum>(II)</enum><text>208 or 480 volt three-phase power, and</text></subclause></clause><clause id="id0CCBAA05783C49A6B37CA732757C9459"><enum>(iii)</enum><text>has a capacity which is not greater than 650 watts (expressed on a per alternating current watt basis).</text></clause></subparagraph><subparagraph id="id7F60D28020AC40478221133B8E43B945"><enum>(F)</enum><header>Residential inverter</header><text>The term <term>residential inverter</term> means an inverter which—</text><clause id="idD835C59A1EE844C49B615B26ACDC434C"><enum>(i)</enum><text>is suitable for a residence,</text></clause><clause id="id59B3677D89E44FA1979853EE95A77A69"><enum>(ii)</enum><text>has a rated output of 120 or 240 volt single-phase power, and</text></clause><clause id="id7133D25137944111965B980C692C6C6A"><enum>(iii)</enum><text>has a capacity which is not greater than 20 kilowatts (expressed on a per alternating current watt basis).</text></clause></subparagraph><subparagraph id="id82C3BA62AF5D48F189828507AABB5705"><enum>(G)</enum><header>Utility inverter</header><text>The term <term>utility inverter</term> means an inverter which—</text><clause id="id2C279D9B216F4F208AF3BA53D4770552"><enum>(i)</enum><text>is suitable for commercial or utility-scale systems,</text></clause><clause id="id70FEB382AE224E0AA0F63590DA1583C2"><enum>(ii)</enum><text>has a rated output of not less than 600 volt three-phase power, and</text></clause><clause id="idF47588844AD54D498A82102FE7165AB4"><enum>(iii)</enum><text>has a capacity which is greater than 125 kilowatts and not greater than 1000 kilowatts (expressed on a per alternating current watt basis) </text></clause></subparagraph></paragraph><paragraph commented="no" id="idD8ECF2C2F6884081B47DA1858367F70B"><enum>(3)</enum><header>Solar energy component</header><subparagraph id="H2E4B3B266ABE45EBBBA20283D7CC1DF0" commented="no"><enum>(A)</enum><header>In general</header><text>The term <term>solar energy component</term> means any of the following:</text><clause id="HED7479B0A3994E6DB1AB1179DEBFC059" commented="no"><enum>(i)</enum><text>Solar modules.</text></clause><clause id="H50AC97E904CA41E08A4AAD4B0D55A4BF" commented="no"><enum>(ii)</enum><text>Photovoltaic cells.</text></clause><clause id="H17E3E1CAAED54BA5B1CE138CDCE4F9EF" commented="no"><enum>(iii)</enum><text>Photovoltaic wafers.</text></clause><clause id="HB7135B9E73A94052B1D32E6D45CA4BD4" commented="no"><enum>(iv)</enum><text>Solar grade polysilicon.</text></clause><clause id="idC18450FF9D1D4646B12C466EEF1E2991"><enum>(v)</enum><text>Torque tubes or structural fasteners.</text></clause><clause id="idC75664824422434DA6AE7475100218A3"><enum>(vi)</enum><text>Polymeric backsheets.</text></clause></subparagraph><subparagraph id="H26BC38A6A61A4F4592D3BAA8197063D4" commented="no"><enum>(B)</enum><header>Associated definitions</header><clause id="H5E5AEEAA792E47C18E29BC1A786C7D1F" commented="no"><enum>(i)</enum><header>Photovoltaic cell</header><text>The term <term>photovoltaic cell</term> means the smallest semiconductor element of a solar module which performs the immediate conversion of light into electricity.</text></clause><clause id="HA7F37A4F59144A54ACFBB2153EA97772" commented="no"><enum>(ii)</enum><header>Photovoltaic wafer</header><text>The term <term>photovoltaic wafer</term> means a thin slice, sheet, or layer of semiconductor material of at least 240 square centimeters—</text><subclause commented="no" id="idFF50EA7ED604428A9FC4BC8B5691AC33"><enum>(I)</enum><text>produced by a single manufacturer either—</text><item id="H860C2AD5E78D486DAC3AA20B9B8220D4" commented="no"><enum>(aa)</enum><text>directly from molten or evaporated solar grade polysilicon or deposition of solar grade thin film semiconductor photon absorber layer, or </text></item><item id="H694230E007254B22B06CAD20F46736A9" commented="no"><enum>(bb)</enum><text>through formation of an ingot from molten polysilicon and subsequent slicing, and</text></item></subclause><subclause id="H13B489F8C6C8485BBCB4AA7139AF9EAB" commented="no"><enum>(II)</enum><text>which comprises the substrate or absorber layer of one or more photovoltaic cells.</text></subclause></clause><clause id="HEAD4E3ED1E7E48D9B78D3D2568348402" commented="no"><enum>(iii)</enum><header>Polymeric backsheet</header><text>The term <term>polymeric backsheet</term> means a sheet on the back of a solar module which acts as an electric insulator and protects the inner components of such module from the surrounding environment.</text></clause><clause commented="no" id="id38CCF3255FE24A8EA475FFFC3E98EF8F"><enum>(iv)</enum><header>Solar grade polysilicon</header><text>The term <term>solar grade polysilicon</term> means silicon which is—</text><subclause id="HFD7C24D944534672B24CDA62A7D28793" commented="no"><enum>(I)</enum><text>suitable for use in photovoltaic manufacturing, and </text></subclause><subclause id="H771A0CFA52504EDEB3F6CC4DE876BC62" commented="no"><enum>(II)</enum><text>purified to a minimum purity of 99.999999 percent silicon by mass. </text></subclause></clause><clause id="H340903111E60430FAED03B9F95D080F0" commented="no"><enum>(v)</enum><header>Solar module</header><text>The term <term>solar module</term> means the connection and lamination of photovoltaic cells into an environmentally protected final assembly which is—</text><subclause id="H750177D5BF6C44B5B31E308D07AC4384" commented="no"><enum>(I)</enum><text>suitable to generate electricity when exposed to sunlight, and </text></subclause><subclause id="HABA6DDEC2DDF49F7ACA5ADB75795EA5D" commented="no"><enum>(II)</enum><text>ready for installation without an additional manufacturing process. </text></subclause></clause><clause id="idBC3CB9FB05024B429877E74E4F82B40D"><enum>(vi)</enum><header>Solar tracker</header><text>The term <term>solar tracker</term> means a mechanical system that moves solar modules according to the position of the sun and to increase energy output.</text></clause><clause id="idF71C95120546430794323A8648077607"><enum>(vii)</enum><header>Solar tracker components</header><subclause id="id622EC2E7B49243DBAE04DD2A1EA55329"><enum>(I)</enum><header>Torque tube</header><text>The term <term>torque tube</term> means a structural steel support element (including longitudinal purlins) which— </text><item id="id4F5C321719D14FCFA4AB7663675974A6"><enum>(aa)</enum><text>is part of a solar tracker,</text></item><item id="id264B56D96FD04A04BB5E0C9E7B06DEE7"><enum>(bb)</enum><text>is of any cross-sectional shape,</text></item><item id="idCF11D439AE85428A9076854FBB5F0A55"><enum>(cc)</enum><text>may be assembled from individually manufactured segments,</text></item><item id="id1C93FC53F4A54C4C9C7903B13EDCDABF"><enum>(dd)</enum><text>spans longitudinally between foundation posts,</text></item><item id="id80B602A368C549229B536B89F9A02F5A"><enum>(ee)</enum><text>supports solar panels and is connected to a mounting attachment for solar panels (with or without separate module interface rails), and</text></item><item id="idF02CB028B4794605A3D8495E04CFCEA6"><enum>(ff)</enum><text>is rotated by means of a drive system.</text></item></subclause><subclause id="idE4AF20B4C4AC4F24B8298D7B431390D1"><enum>(II)</enum><header>Structural fastener</header><text>The term <term>structural fastener</term> means a component which is used—</text><item id="id072DF05DAFC14661BA2DB69F70767D4C"><enum>(aa)</enum><text>to connect the mechanical and drive system components of a solar tracker to the foundation of such solar tracker, </text></item><item id="idE73BF7342FEA456D813347E9EC6B570D"><enum>(bb)</enum><text>to connect torque tubes to drive assemblies, or</text></item><item id="id84139620952C4FA28B900FCDD52002C4"><enum>(cc)</enum><text>to connect segments of torque tubes to one another.</text></item></subclause></clause></subparagraph></paragraph><paragraph id="H6EF8D4DCE7AC448D9908AB57F754B004" commented="no"><enum>(4)</enum><header>Wind energy component</header><subparagraph id="H48006DC9ECF94CF984506A514F0C35E9" commented="no"><enum>(A)</enum><header>In general</header><text>The term <term>wind energy component</term> means any of the following:</text><clause id="HE92AEDB7201648D4924411F8B224960B" commented="no"><enum>(i)</enum><text>Blades.</text></clause><clause id="H2C264D8B19D545289BC6A514F0F60623" commented="no"><enum>(ii)</enum><text>Nacelles.</text></clause><clause id="H252F3891E4ED41E3B540A8AEBE8ECDE9" commented="no"><enum>(iii)</enum><text>Towers.</text></clause><clause id="H0C7FBA58D1D244608BB9EEF3E394E3D2" commented="no"><enum>(iv)</enum><text>Offshore wind foundations.</text></clause><clause commented="no" id="idF359F65474134FCEB19EFB7431934EA7"><enum>(v)</enum><text>Related offshore wind vessels.</text></clause></subparagraph><subparagraph id="H956AAB8B82454C05AE4B4E637AB8B46F" commented="no"><enum>(B)</enum><header>Associated definitions</header><clause id="HC5EE27EF7C7F4C34AFA89710822F9B4C" commented="no"><enum>(i)</enum><header>Blade</header><text>The term <term>blade</term> means an airfoil-shaped blade which is responsible for converting wind energy to low-speed rotational energy.</text></clause><clause id="H3CA3DDE64AAB4725A654314EB1738670" commented="no"><enum>(ii)</enum><header>Offshore wind foundation</header><text>The term <term>offshore wind foundation</term> means the component (including transition piece) which secures an offshore wind tower and any above-water turbine components to the seafloor using—</text><subclause id="HDD84625CA1804FECA2FF18288A7F8084" commented="no"><enum>(I)</enum><text>fixed platforms, such as offshore wind monopiles, jackets, or gravity-based foundations, or</text></subclause><subclause id="HEC28529CC47F49DE83EFAD9734E4F264" commented="no"><enum>(II)</enum><text>floating platforms and associated mooring systems.</text></subclause></clause><clause id="HB0F9D9B95E484C59B113C2A05D7455DD" commented="no"><enum>(iii)</enum><header>Nacelle</header><text>The term <term>nacelle</term> means the assembly of the drivetrain and other tower-top components of a wind turbine (with the exception of the blades and the hub) within their cover housing.</text></clause><clause id="id055433bc0269400a9c54483eecd6a839" commented="no" display-inline="no-display-inline"><enum>(iv)</enum><header>Related offshore wind vessel</header><text>The term <term>related offshore wind vessel</term> means any vessel which is purpose-built or retrofitted for purposes of the development, transport, installation, operation, or maintenance of offshore wind energy components.</text></clause><clause id="H8CFE72E853744F40B1B815BBFC38A98E" commented="no"><enum>(v)</enum><header>Tower</header><text>The term <term>tower</term> means a tubular or lattice structure which supports the nacelle and rotor of a wind turbine.</text></clause></subparagraph></paragraph><paragraph commented="no" id="id706F8BC9C31949E8B63821ABDCDB7FEF"><enum>(5)</enum><header>Qualifying battery component</header><subparagraph commented="no" id="id5D7BBB67E49047E391947BC467266F84"><enum>(A)</enum><header>In general</header><text>The term <term>qualifying battery component</term> means any of the following:</text><clause commented="no" id="id3D66F41CF12B4E00849EB9AB39A1D083"><enum>(i)</enum><text>Electrode active materials.</text></clause><clause commented="no" id="id29FF988AC3F740B6856A1D61A0182BA3"><enum>(ii)</enum><text>Battery cells.</text></clause><clause commented="no" id="id2740BC2DA181459894EBDBA4B565253E"><enum>(iii)</enum><text>Battery modules.</text></clause></subparagraph><subparagraph commented="no" id="id2BE7D821A292489B83CF195AD018C0F8"><enum>(B)</enum><header>Associated definitions</header><clause commented="no" id="id6435C5CBEBB24538A936813166008A5C"><enum>(i)</enum><header>Electrode active material</header><text>The term <term>electrode active material</term> means cathode materials, anode materials, anode foils, and electrochemically active materials, including solvents, additives, and electrolyte salts that contribute to the electrochemical processes necessary for energy storage . </text></clause><clause commented="no" id="id69E626FA6FCF4CACAE83B314FB64E576"><enum>(ii)</enum><header>Battery cell</header><text>The term <term>battery cell</term> means an electrochemical cell—</text><subclause commented="no" id="id112D6A4AB7EA42138387F6BD9C305570"><enum>(I)</enum><text>comprised of 1 or more positive electrodes and 1 or more negative electrodes, </text></subclause><subclause commented="no" id="id9321905E43FC4E8DB6D095EE892E7DDE"><enum>(II)</enum><text>with an energy density of not less than 100 watt-hours per liter, and </text></subclause><subclause commented="no" id="id556AF4FD7BC1417B9FB25096ABFE987C"><enum>(III)</enum><text>capable of storing at least 12 watt-hours of energy. </text></subclause></clause><clause commented="no" id="idB9A1BF84BBB3442887A023DEFE0A6D20"><enum>(iii)</enum><header>Battery module</header><text>The term <term>battery module</term> means a module—</text><subclause commented="no" id="id8498AE14AFF143A19E5535D31DC171AE"><enum>(I)</enum><item commented="no" display-inline="yes-display-inline" id="id5FECD4B29C684E3DBF8178AABC48F4B8"><enum>(aa)</enum><text>in the case of a module using battery cells, with 2 or more battery cells which are configured electrically, in series or parallel, to create voltage or current, as appropriate, to a specified end use, or</text></item><item commented="no" indent="up1" id="id114677B0D10E41EB9D7216734B1BEC2F"><enum>(bb)</enum><text>with no battery cells, and</text></item></subclause><subclause commented="no" id="id7EAECEBFC297408E92E284C3304A5098"><enum>(II)</enum><text>with an aggregate capacity of not less than 7 kilowatt-hours (or, in the case of a module for a hydrogen fuel cell vehicle, not less than 1 kilowatt-hour). </text></subclause></clause></subparagraph></paragraph><paragraph commented="no" id="id499131D253A24507BAE4B44D95AC523C"><enum>(6)</enum><header>Applicable critical minerals</header><text>The term <term>applicable critical mineral</term> means any of the following:</text><subparagraph commented="no" id="id09B04D955C89466A824126A57BF779B5"><enum>(A)</enum><header>Aluminum</header><text>Aluminum which is—</text><clause commented="no" id="id591D08AF0F9F4AA195610DA60536138E"><enum>(i)</enum><text>converted from bauxite to a minimum purity of 99 percent alumina by mass, or</text></clause><clause id="id58ce8d1a098840ee8f8e73bf6b575a9c"><enum>(ii)</enum><text>purified to a minimum purity of 99.9 percent aluminum by mass.</text></clause></subparagraph><subparagraph id="id815A197646864C1793244AA58D1F5E6D"><enum>(B)</enum><header>Antimony</header><text>Antimony which is—</text><clause id="id365E9AAA8988406A8F5ADC4189AA1980"><enum>(i)</enum><text>converted to antimony trisulfide concentrate with a minimum purity of 90 percent antimony trisulfide by mass, or</text></clause><clause id="idAB508B65A5BB444591AE79E992E52EB1"><enum>(ii)</enum><text>purified to a minimum purity of 99.65 percent antimony by mass.</text></clause></subparagraph><subparagraph id="id1E23873976D746499C0D5517FF16E62B"><enum>(C)</enum><header>Barite</header><text>Barite which is barium sulfate purified to a minimum purity of 80 percent barite by mass.</text></subparagraph><subparagraph id="idED23D9DE8F054BC88E010FD839540E14"><enum>(D)</enum><header>Beryllium</header><text>Beryllium which is—</text><clause id="idDF2AAE80DC7B4246B2C81B5CDCD3D132"><enum>(i)</enum><text>converted to copper-beryllium master alloy, or</text></clause><clause id="idFBF8F19422DB4A808AD7FB55219AD9FA"><enum>(ii)</enum><text>purified to a minimum purity of 99 percent beryllium by mass.</text></clause></subparagraph><subparagraph id="idEF80C467F9D14FB68912787239BC77EE"><enum>(E)</enum><header>Cerium</header><text>Cerium which is—</text><clause id="id3BD3762097794EFD881C7C1BB2C61132"><enum>(i)</enum><text>converted to cerium oxide which is purified to a minimum purity of 99.9 percent cerium oxide by mass, or</text></clause><clause id="idBBB4F196A323434E8678DFF6C835D8F1"><enum>(ii)</enum><text>purified to a minimum purity of 99 percent cerium by mass.</text></clause></subparagraph><subparagraph id="idA8164736EF8845B2B148F1770531B895"><enum>(F)</enum><header>Cesium</header><text>Cesium which is—</text><clause id="id79B859C614FF4725BF4617BB14CA8B01"><enum>(i)</enum><text>converted to cesium formate or cesium carbonate, or</text></clause><clause id="id49F85FA63BF949E3873284CE6710116E"><enum>(ii)</enum><text>purified to a minimum purity of 99 percent cesium by mass.</text></clause></subparagraph><subparagraph id="id448C5DE956ED4DEAB9A96573B13EDF10"><enum>(G)</enum><header>Chromium</header><text>Chromium which is—</text><clause id="id22A131F100104865A8B68E0DFBE54FD8"><enum>(i)</enum><text>converted to ferrochromium consisting of not less than 60 percent chromium by mass, or</text></clause><clause id="id21BDAFD544D540989AC69A893AB02166"><enum>(ii)</enum><text>purified to a minimum purity of 99 percent chromium by mass.</text></clause></subparagraph><subparagraph id="idEE52403D5549441A96C06374433FAF0F"><enum>(H)</enum><header>Cobalt</header><text>Cobalt which is—</text><clause id="id3F26E8F03CB7448285EB2273E69C673A"><enum>(i)</enum><text>converted to cobalt sulfate, or</text></clause><clause id="idA26B8C58FC364249B204D3E5485181A8"><enum>(ii)</enum><text>purified to a minimum purity of 99.6 percent cobalt by mass.</text></clause></subparagraph><subparagraph id="id234AC90DD8894846ADD85342B1F50367"><enum>(I)</enum><header>Dysprosium</header><text>Dysprosium which is—</text><clause id="id1906204BEF37445C99DEA81D6C71BE6E"><enum>(i)</enum><text>converted to not less than 99 percent pure dysprosium iron alloy by mass, or</text></clause><clause id="id5C8222B212C64FF395F1581E929B6A67"><enum>(ii)</enum><text>purified to a minimum purity of 99 percent dysprosium by mass.</text></clause></subparagraph><subparagraph id="id99B51CAFD4A24534B3B5D837F0C21C80"><enum>(J)</enum><header>Europium</header><text>Europium which is—</text><clause id="id03098C6EB5F441EDB6EEE1F2E50A7CCD"><enum>(i)</enum><text>converted to europium oxide which is purified to a minimum purity of 99.9 percent europium oxide by mass, or</text></clause><clause id="id354A62A8BA134307B2E05C5CD4A40C77"><enum>(ii)</enum><text>purified to a minimum purity of 99 percent by mass.</text></clause></subparagraph><subparagraph id="id79309F97111B456CAF8A694DEC6B3F34"><enum>(K)</enum><header>Fluorspar</header><text>Fluorspar which is—</text><clause id="idBE93AE9F611B4CD695EB7AA9B14B8406"><enum>(i)</enum><text>converted to fluorspar which is purified to a minimum purity of 97 percent calcium fluoride by mass, or</text></clause><clause id="idC6CB8730AC0E4AF48908F88AFB5B4FC9"><enum>(ii)</enum><text>purified to a minimum purity of 99 percent fluorspar by mass.</text></clause></subparagraph><subparagraph id="id5EF5BB8497014325B7C5209A51E569F2"><enum>(L)</enum><header>Gadolinium</header><text>Gadolinium which is—</text><clause id="idC5CE9867591747E297DFD57FF411551F"><enum>(i)</enum><text>converted to gadolinium oxide which is purified to a minimum purity of 99.9 percent gadolinium oxide by mass, or</text></clause><clause id="id59699316169C400B8D29E499AD9D730B"><enum>(ii)</enum><text>purified to a minimum purity of 99 percent gadolinium by mass.</text></clause></subparagraph><subparagraph id="idF74D551EA4AC40C2BFFE7CE3EC237302"><enum>(M)</enum><header>Germanium</header><text>Germanium which is—</text><clause id="idC6B7B9016E3E4AB0AB977316DA30EAF6"><enum>(i)</enum><text>converted to germanium tetrachloride, or</text></clause><clause id="id4987B9E121D54C8F8A04C0863C052AF0"><enum>(ii)</enum><text>purified to a minimum purity of 99.99 percent germanium by mass.</text></clause></subparagraph><subparagraph id="idB935BD40577C4D5A9F4A1E1841D3A6A5"><enum>(N)</enum><header>Graphite</header><text>Graphite which is purified to a minimum purity of 99.9 percent graphitic carbon by mass.</text></subparagraph><subparagraph id="idA3811FBC82AC4E62BA10AE50AFD48AFA"><enum>(O)</enum><header>Indium</header><text>Indium which is—</text><clause id="id250B6B6615F9419EAD00D5A332BB0E1D"><enum>(i)</enum><text>converted to—</text><subclause id="idBFC5E0EB9E114E86A16668BCD711F136"><enum>(I)</enum><text>indium tin oxide, or</text></subclause><subclause id="id14A74FE410EC44D19A44EE268DE12420"><enum>(II)</enum><text>indium oxide which is purified to a minimum purity of 99.9 percent indium oxide by mass, or</text></subclause></clause><clause id="idC89BAA9DAE6A4ADD9763612062B19D6D"><enum>(ii)</enum><text>purified to a minimum purity of 99 percent indium by mass.</text></clause></subparagraph><subparagraph id="id86F6F2106EE5427B91C4CA2485A03317"><enum>(P)</enum><header>Lithium</header><text>Lithium which is—</text><clause id="id5F008F33F2A94A94A83B38D3340B3CDE"><enum>(i)</enum><text>converted to lithium carbonate or lithium hydroxide, or </text></clause><clause id="idCD63E0F94DE044F998E314B317E9DE8B"><enum>(ii)</enum><text>purified to a minimum purity of 99.9 percent lithium by mass.</text></clause></subparagraph><subparagraph id="id3F63DF5D8F824DC393AA91213E29525F"><enum>(Q)</enum><header>Manganese</header><text>Manganese which is—</text><clause id="idBC876923769F4E728CFA230F35087DC1"><enum>(i)</enum><text>converted to manganese sulphate, or</text></clause><clause id="id25E8AA891E2C41C0AA28AA2BC0739EFB"><enum>(ii)</enum><text>purified to a minimum purity of 99.7 percent manganese by mass.</text></clause></subparagraph><subparagraph id="id1619BDC738274FBDA1BD862925887964"><enum>(R)</enum><header>Neodymium</header><text>Neodymium which is—</text><clause id="id482B1DD453F5486A945CD32131DEE2B9"><enum>(i)</enum><text>converted to neodymium-praseodymium oxide which is purified to a minimum purity of 99 percent neodymium-praseodymium oxide by mass,</text></clause><clause id="idB0BB027CF24F438BA33D3ED93E8070A3"><enum>(ii)</enum><text>converted to neodymium oxide which is purified to a minimum purity of 99.5 percent neodymium oxide by mass</text></clause><clause id="idF486C6379BFE4EACB59846031CDD3A9C"><enum>(iii)</enum><text>purified to a minimum purity of 99.9 percent neodymium by mass.</text></clause></subparagraph><subparagraph id="idF3D4FBCF7027438599C3B9DA7175696B"><enum>(S)</enum><header>Nickel</header><text>Nickel which is—</text><clause id="idE03D5A9E54F448E8A948B10BD7DBEA83"><enum>(i)</enum><text>converted to nickel sulphate, or</text></clause><clause id="id9FFB000503BA42FCAF946A8219A10455"><enum>(ii)</enum><text>purified to a minimum purity of 99 percent nickel by mass.</text></clause></subparagraph><subparagraph id="id599C0EBA75DB459CA472BB2747DEA872"><enum>(T)</enum><header>Niobium</header><text>Niobium which is—</text><clause id="idA1727B2DAFBC4E638DEC1092695A9D83"><enum>(i)</enum><text>converted to ferronibium, or </text></clause><clause id="id0057B93225534A4C99971ADE2FD661C5"><enum>(ii)</enum><text>purified to a minimum purity of 99 percent niobium by mass.</text></clause></subparagraph><subparagraph id="id4B2346357EE740CF9FD4313DB185C07F"><enum>(U)</enum><header>Tellurium</header><text>Tellurium which is—</text><clause id="id2DC5A1A2C8954659A7BCFC1E2C4CA4D1"><enum>(i)</enum><text>converted to cadmium telluride, or</text></clause><clause id="idDB02059E2E064B8FBBC3C29B968290EB"><enum>(ii)</enum><text>purified to a minimum purity of 99 percent tellurium by mass.</text></clause></subparagraph><subparagraph id="idD52DE6F83A1C497589D562820FE6A28B"><enum>(V)</enum><header>Tin</header><text>Tin which is purified to low alpha emitting tin which—</text><clause id="id0ECBC153F5CC47489BB57CEA7BC32B77"><enum>(i)</enum><text>has a purity of greater than 99.99 percent by mass, and</text></clause><clause id="id79BCCC84E03044909D74FC607DAD285B"><enum>(ii)</enum><text>possesses an alpha emission rate of not greater than 0.01 counts per hour per centimeter square.</text></clause></subparagraph><subparagraph id="idB998FA329F4B4C76AE0290CED4B1C6D8"><enum>(W)</enum><header>Tungsten</header><text>Tungsten which is converted to ammonium paratungstate or ferrotungsten.</text></subparagraph><subparagraph id="idE9D76320B59743EF9B6219211C25A06F"><enum>(X)</enum><header>Vanadium</header><text>Vanadium which is converted to ferrovanadium or vanadium pentoxide.</text></subparagraph><subparagraph id="id69EB873E8A354769A15213F964B180DA"><enum>(Y)</enum><header>Yttrium</header><text>Yttrium which is—</text><clause id="id29C4A57CB4194E6BA0B6369C73435262"><enum>(i)</enum><text>converted to yttrium oxide which is purified to a minimum purity of 99.999 percent yttrium oxide by mass, or</text></clause><clause id="idC8035F05C0134B31B91D72CA4290033C"><enum>(ii)</enum><text>purified to a minimum purity of 99.9 percent yttrium by mass.</text></clause></subparagraph><subparagraph commented="no" id="id9E63A4DFDDE04104BF4616D111EDCEA4"><enum>(Z)</enum><header>Other minerals</header><text>Any of the following minerals, provided that such mineral is purified to a minimum purity of 99 percent by mass:</text><clause commented="no" id="id4220312C1F054A46B8CC5826B2E281B0"><enum>(i)</enum><text>Arsenic.</text></clause><clause commented="no" id="idE00D4C0DA276490296DB41D7B9582A99"><enum>(ii)</enum><text>Bismuth.</text></clause><clause commented="no" id="id76AEACAEAA6847628A08862F48DFFE89"><enum>(iii)</enum><text>Erbium.</text></clause><clause commented="no" id="id01C0CD3826E94399BB4E4B71224BF53D"><enum>(iv)</enum><text>Gallium.</text></clause><clause commented="no" id="id6802E4E4B86A49808A36FF82902BB3B2"><enum>(v)</enum><text>Hafnium.</text></clause><clause commented="no" id="id64EC7FC6C6314D2489CE9CF9B512E490"><enum>(vi)</enum><text>Holmium.</text></clause><clause commented="no" id="id738D09D014734AEF82B324BF6B661106"><enum>(vii)</enum><text>Iridium.</text></clause><clause commented="no" id="id257ACA00C3C7442C8B4F49473B6C26FA"><enum>(viii)</enum><text>Lanthanum.</text></clause><clause commented="no" id="idE733E8B39C84406EB360F377A30509A6"><enum>(ix)</enum><text>Lutetium.</text></clause><clause commented="no" id="id0361C163B24542C990A107D258F97972"><enum>(x)</enum><text>Magnesium.</text></clause><clause commented="no" id="idAAA18276FC884F1A9F3D4C184EAFA0F1"><enum>(xi)</enum><text>Palladium.</text></clause><clause commented="no" id="idAE789099837847D9A015B27C59899CB3"><enum>(xii)</enum><text>Platinum.</text></clause><clause id="id3580ef7d36074c46bda44902ba94786f"><enum>(xiii)</enum><text>Praseodymium.</text></clause><clause id="ida791b3b022a842e5a3b47c29db53d36b"><enum>(xiv)</enum><text>Rhodium.</text></clause><clause id="id0073a0f18c86466b82f20ae899cab85c"><enum>(xv)</enum><text>Rubidium.</text></clause><clause id="id567702e573804975a474136bfbbb0eb3"><enum>(xvi)</enum><text>Ruthenium.</text></clause><clause id="id2591fba1753a4d9a9f9ad71672e84199"><enum>(xvii)</enum><text>Samarium.</text></clause><clause id="ide634ad503cb64014aa3fae49309353e2"><enum>(xviii)</enum><text>Scandium.</text></clause><clause id="ida78f0a1a930e4b84bc4b6ad66d6625b8"><enum>(xix)</enum><text>Tantalum.</text></clause><clause id="idC834A218EF9149E8ACD89B59FDAFC17B"><enum>(xx)</enum><text>Terbium.</text></clause><clause id="idFC8F73BE8DDD43E5B3581AA62460FE58"><enum>(xxi)</enum><text>Thulium.</text></clause><clause id="id1FA1934D4BA9402987A46A11BAF3456D"><enum>(xxii)</enum><text>Titanium.</text></clause><clause id="id4B31EE51F14946F59B3EEA5765402731"><enum>(xxiii)</enum><text>Ytterbium.</text></clause><clause id="id02E7DEFC2FB847EC9725E2CC76869FE9"><enum>(xxiv)</enum><text>Zinc.</text></clause><clause id="idDB5A83C2C1F84A8A9DEEE9DA4DA3D06E"><enum>(xxv)</enum><text>Zirconium.</text></clause></subparagraph></paragraph></subsection><subsection id="H0B0D617FFB884E8F940CEC85028957DC" commented="no"><enum>(d)</enum><header>Special rules</header><text>In this section—</text><paragraph commented="no" id="H18A9CAFCEDD647CF86F09873A0613F31"><enum>(1)</enum><header>Related persons</header><text>Persons shall be treated as related to each other if such persons would be treated as a single employer under the regulations prescribed under section 52(b). </text></paragraph><paragraph id="HF5626786E7014052BECB2D4633EEFBF3" commented="no"><enum>(2)</enum><header>Only production in the United States taken into account</header><text>Sales shall be taken into account under this section only with respect to eligible components the production of which is within—</text><subparagraph id="HE0F00E1EABC243848718CFB679174159" commented="no"><enum>(A)</enum><text>the United States (within the meaning of section 638(1)), or</text></subparagraph><subparagraph id="H93CC47948FFB4702895A2E4A7CEC1464" commented="no"><enum>(B)</enum><text>a possession of the United States (within the meaning of section 638(2)).</text></subparagraph></paragraph><paragraph commented="no" id="H99700551EF9941FEB19627AC3EC04E63"><enum>(3)</enum><header>Pass-thru in the case of estates and trusts</header><text>Under regulations prescribed by the Secretary, rules similar to the rules of subsection (d) of section 52 shall apply.</text></paragraph><paragraph id="HDE73003DE1B44A9EB4E0E46A4E76F76C"><enum>(4)</enum><header>Sale of integrated components</header><text display-inline="yes-display-inline">For purposes of this section, a person shall be treated as having sold an eligible component to an unrelated person if such component is integrated, incorporated, or assembled into another eligible component which is sold to an unrelated person.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H7C100DFC652944BAB2E1E6120D8538BF" commented="no"><enum>(b)</enum><header>Conforming amendments</header><paragraph id="H12D27E4A7BA64B91A95AB504BB2A6777" commented="no"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/38">Section 38(b)</external-xref> of the Internal Revenue Code of 1986, as amended by the preceding provisions of this Act, is amended—</text><subparagraph id="H8A767334CC3A4496A6BDCB172F305AB1" commented="no"><enum>(A)</enum><text>in paragraph (36), by striking <quote>plus</quote> at the end,</text></subparagraph><subparagraph id="H66152AFC9A0D464BBDE645712D3EBD4B" commented="no"><enum>(B)</enum><text>in paragraph (37), by striking the period at the end and inserting <quote>, plus</quote>, and</text></subparagraph><subparagraph id="HE77CA0811DF744EBB261FDC4C863EBCA" commented="no"><enum>(C)</enum><text>by adding at the end the following new paragraph:</text><quoted-block display-inline="no-display-inline" id="H3A9470BEF1A7404DA4A6AB96304E4400" style="OLC" changed="added" reported-display-style="italic"><paragraph id="H12EAE7666C4F4A98906EB35274881682" commented="no"><enum>(38)</enum><text>the advanced manufacturing production credit determined under section 45X(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="HD75C1F1466FA41BC930B6472A2165953" commented="no"><enum>(2)</enum><text>The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by adding at the end the following new item:</text><quoted-block display-inline="no-display-inline" id="H135E120CCECA482B9F0D6A79DAABB927" style="OLC" changed="added" reported-display-style="italic"><toc changed="added" reported-display-style="italic"><toc-entry bold="off" level="section">Sec. 45X. Advanced manufacturing production credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H4D69AB56B26849FCA737CA816F2170A3" commented="no"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to components produced and sold after December 31, 2022. </text></subsection></section></part><part id="H3CE89BF47EC4466791A686D76F685EA2" commented="no"><enum>6<?LEXA-Enum 7?></enum><header>Superfund</header><section id="H8CE6AEF0C80341BB91E2DD1BBBC08604" commented="no"><enum>13601.</enum><header>Reinstatement of Superfund</header><subsection id="H643B4DBD34C94B4BAC94EA65B1199F81" commented="no"><enum>(a)</enum><header> Hazardous Substance Superfund financing rate</header><paragraph id="HEFE3DFB15C804D4191B84138DE6C2F37" commented="no"><enum>(1)</enum><header>Extension</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/4611">Section 4611</external-xref> is amended by striking subsection (e).</text></paragraph><paragraph id="H50E356A185DE4D32A4312ABBFAC74FF5" commented="no"><enum>(2)</enum><header>Adjustment for inflation</header><subparagraph id="HE90552AE96E44CBC92C9EF6CC0C0F0E6" commented="no"><enum>(A)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/4611">Section 4611(c)(2)(A)</external-xref> is amended by striking <quote>9.7 cents</quote> and inserting <quote>16.4 cents</quote>.</text></subparagraph><subparagraph id="HDE5887B66E1543029E89E011F7614034" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/4611">Section 4611(c)</external-xref> is amended by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="H2C8B1364A9AC4BB780D528E10451AA3D" style="OLC" changed="added" reported-display-style="italic"><paragraph id="H032165F3905A49FFB5EFC0A44B152DB8" commented="no"><enum>(3)</enum><header>Adjustment for inflation</header><subparagraph id="H3F9C0A7F82554178A2748344442E07DD" commented="no"><enum>(A)</enum><header>In general</header><text>In the case of a year beginning after 2023, the amount in paragraph (2)(A) shall be increased by an amount equal to—</text><clause id="H209DE7331C8B43C28E12821EB7C9B08A" commented="no"><enum>(i)</enum><text>such amount, multiplied by</text></clause><clause id="H7C686551269D42A0A5EF78E707DB33F5" commented="no"><enum>(ii)</enum><text>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting <quote>calendar year 2022</quote> for <quote>calendar year 2016</quote> in subparagraph (A)(ii) thereof.</text></clause></subparagraph><subparagraph id="H03AE49B23571445F930EEE8715554799" commented="no"><enum>(B)</enum><header>Rounding</header><text>If any amount as adjusted under subparagraph (A) is not a multiple of $0.01, such amount shall be rounded to the next lowest multiple of $0.01.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="H061070B002424975850F1A67FCE5032C" commented="no"><enum>(b)</enum><header>Authority for advances</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/9507">Section 9507(d)(3)(B)</external-xref> is amended by striking <quote>December 31, 1995</quote> and inserting <quote>December 31, 2032</quote>.</text></subsection><subsection commented="no" id="HE12B73E4856F4165AD4612A55A8AF360"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall take effect on January 1, 2023.</text></subsection></section></part><part id="H5A1CD623CA12448F81B576BE81F658B5"><enum>7<?LEXA-Enum 8?></enum><header>Incentives for Clean Electricity and Clean Transportation</header><section id="H863A8D5D4BEC4F75A480174C19A78B0B" commented="no"><enum>13701.</enum><header>Clean electricity production credit</header><subsection id="H20155CC5F5F3472EB5D0E1C44A370204" commented="no"><enum>(a)</enum><header>In general</header><text>Subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by adding at the end the following new section:</text><quoted-block display-inline="no-display-inline" id="H6375AC31A9ED422DAEA91C62BF0F651E" style="OLC" changed="added" reported-display-style="italic"><section id="H8F4639C594E341D19CF9D966325A2B86" commented="no"><enum>45Y.<?LEXA-Enum 45AA.?></enum><header>Clean electricity production credit</header><subsection id="H00C5A4FCC3054B1CB434CF565281B3DA" commented="no"><enum>(a)</enum><header>Amount of credit</header><paragraph id="HAD2E1D30E11249FE840FBD55372DB40B" commented="no"><enum>(1)</enum><header>In general</header><text>For purposes of section 38, the clean electricity production credit for any taxable year is an amount equal to the product of—</text><subparagraph id="HA13D2E452ACB4D0C9D0B2765FEBBA92B" commented="no"><enum>(A)</enum><text>the kilowatt hours of electricity—</text><clause id="HDCDEADB38AE64EE5A344B75E12F342D9" commented="no"><enum>(i)</enum><text>produced by the taxpayer at a qualified facility, and</text></clause><clause id="H4DB42D9CB79B4015AE008EECDBB89D42" commented="no"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="H1884BDAABAB644E6A50DC19FA6571C92"><enum>(I)</enum><text>sold by the taxpayer to an unrelated person during the taxable year, or</text></subclause><subclause id="H065324C7DF3A471CA5BBDC4DC91AF429" indent="up1" commented="no"><enum>(II)</enum><text>in the case of a qualified facility which is equipped with a metering device which is owned and operated by an unrelated person, sold, consumed, or stored by the taxpayer during the taxable year, multiplied by</text></subclause></clause></subparagraph><subparagraph id="HDEEA2DAE79204AECA93CAD62D50E25B8" commented="no"><enum>(B)</enum><text>the applicable amount with respect to such qualified facility.</text></subparagraph></paragraph><paragraph id="H27600BC8695D42D6B694C6C3881A184E" commented="no"><enum>(2)</enum><header>Applicable amount</header><subparagraph id="H1076157678F84CE48808EA5E24335FE1" commented="no"><enum>(A)</enum><header>Base amount</header><text>Subject to subsection (g)(7), in the case of any qualified facility which is not described in clause (i) or (ii) of subparagraph (B) and does not satisfy the requirements described in clause (iii) of such subparagraph, the applicable amount shall be 0.3 cents.</text></subparagraph><subparagraph id="H50EADAAACBA141EC88C498D99A6336D4" commented="no"><enum>(B)</enum><header>Alternative amount</header><text>Subject to subsection (g)(7), in the case of any qualified facility—</text><clause id="H8F44AD3E0F404428A3EC99FCA6485781" commented="no"><enum>(i)</enum><text>with a maximum net output of less than 1 megawatt (as measured in alternating current), </text></clause><clause id="H13054A0D28B6456396229A932B17340D" commented="no"><enum>(ii)</enum><text>the construction of which begins prior to the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (9) and (10) of subsection (g), or</text></clause><clause commented="no" id="id911C385A89194E0D8FA386E104DACB66"><enum>(iii)</enum><text>which—</text><subclause id="HD2CD515550E449F99199A693C3B02235" commented="no"><enum>(I)</enum><text>satisfies the requirements under paragraph (9) of subsection (g), and</text></subclause><subclause id="H4480B635C2B043C5AD3F6F8595322E2F" commented="no"><enum>(II)</enum><text>with respect to the construction of such facility, satisfies the requirements under paragraph (10) of subsection (g), </text></subclause></clause><continuation-text continuation-text-level="subparagraph" commented="no">the applicable amount shall be 1.5 cents. </continuation-text></subparagraph></paragraph></subsection><subsection id="H682A060A85FB4FAAACAC5BCA543DA9E5" commented="no"><enum>(b)</enum><header>Qualified facility</header><paragraph id="H235B0946CE6049048B7474E1F5201168" commented="no"><enum>(1)</enum><header>In general</header><subparagraph id="HC5AD6C79B12841CFA913BE3F66D26B09" commented="no"><enum>(A)</enum><header>Definition</header><text>Subject to subparagraphs (B), (C), and (D), the term <term>qualified facility</term> means a facility owned by the taxpayer—</text><clause id="H72DD8F8364704A70A3B6C03CAC8332CD" commented="no"><enum>(i)</enum><text>which is used for the generation of electricity,</text></clause><clause id="H6667F835885443629E57E72D505E4F6B" commented="no"><enum>(ii)</enum><text>which is placed in service after December 31, 2024, and</text></clause><clause id="HDB886BED395D4882BBACE00B192384BA" commented="no"><enum>(iii)</enum><text>for which the greenhouse gas emissions rate (as determined under paragraph (2)) is not greater than zero.</text></clause></subparagraph><subparagraph id="H52DE1A37B21048A6A405FEF4231D9283" commented="no"><enum>(B)</enum><header>10-year production credit</header><text>For purposes of this section, a facility shall only be treated as a qualified facility during the 10-year period beginning on the date the facility was originally placed in service.</text></subparagraph><subparagraph commented="no" id="H3131F1BC076D405F9CAED5578971E711"><enum>(C)</enum><header>Expansion of facility; incremental production</header><text>The term <term>qualified facility</term> shall include either of the following in connection with a facility described in subparagraph (A) (without regard to clause (ii) of such subparagraph) which was placed in service before January 1, 2025, but only to the extent of the increased amount of electricity produced at the facility by reason of the following:</text><clause commented="no" id="HEA49396C6D4F42F9A5C95917E42C63CC"><enum>(i)</enum><text display-inline="yes-display-inline">A new unit which is placed in service after December 31, 2024.</text></clause><clause commented="no" id="H72F547E2EC384F2582C0D3F6447BEFF4"><enum>(ii)</enum><text display-inline="yes-display-inline">Any additions of capacity which are placed in service after December 31, 2024.</text></clause></subparagraph><subparagraph id="HAC2EAFD9C16E4A9B992BBBD0152195AB" commented="no"><enum>(D)</enum><header>Coordination with other credits</header><text>The term <term>qualified facility</term> shall not include any facility for which a credit determined under section 45, 45J, 45Q, 45U, 48, 48A, or 48E is allowed under section 38 for the taxable year or any prior taxable year.</text></subparagraph></paragraph><paragraph id="HB3BDFAA5719F43C7ABE6397DE53CE915" commented="no"><enum>(2)</enum><header>Greenhouse gas emissions rate</header><subparagraph id="HF3ABF7CCA0564DCE97A6C2A2066CA4E2" commented="no"><enum>(A)</enum><header>In general</header><text>For purposes of this section, the term <term>greenhouse gas emissions rate</term> means the amount of greenhouse gases emitted into the atmosphere by a facility in the production of electricity, expressed as grams of CO<subscript>2</subscript>e per KWh.</text></subparagraph><subparagraph id="H942CCE6FC17C4CC78DA9CD7EA3B15EE6" commented="no"><enum>(B)</enum><header>Fuel combustion and gasification</header><text>In the case of a facility which produces electricity through combustion or gasification, the greenhouse gas emissions rate for such facility shall be equal to the net rate of greenhouse gases emitted into the atmosphere by such facility (taking into account lifecycle greenhouse gas emissions, as described in section 211(o)(1)(H) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(1)(H)</external-xref>)) in the production of electricity, expressed as grams of CO<subscript>2</subscript>e per KWh.</text></subparagraph><subparagraph commented="no" id="HB46F1A54FB0D4575A68F146B753986B1"><enum>(C)</enum><header>Establishment of emissions rates for facilities</header><clause commented="no" id="HB2A670F5398C4BD1A7EB8BFAD3F401C3"><enum>(i)</enum><header>Publishing emissions rates</header><text>The Secretary shall annually publish a table that sets forth the greenhouse gas emissions rates for types or categories of facilities, which a taxpayer shall use for purposes of this section.</text></clause><clause id="H4893E480C21F4D8D9BAF9F88C32DC3ED" commented="no"><enum>(ii)</enum><header>Provisional emissions rate</header><text>In the case of any facility for which an emissions rate has not been established by the Secretary, a taxpayer which owns such facility may file a petition with the Secretary for determination of the emissions rate with respect to such facility.</text></clause></subparagraph><subparagraph commented="no" id="H0D0B23F726EB4CDDBF32EADF1D90B256"><enum>(D)</enum><header>Carbon capture and sequestration equipment</header><text>For purposes of this subsection, the amount of greenhouse gases emitted into the atmosphere by a facility in the production of electricity shall not include any qualified carbon dioxide that is captured by the taxpayer and—</text><clause commented="no" id="H85BC40B96B634FDEB256D0689F4DC33C"><enum>(i)</enum><text>pursuant to any regulations established under paragraph (2) of section 45Q(f), disposed of by the taxpayer in secure geological storage, or</text></clause><clause commented="no" id="H1D7B5E3E0A4947F186EF8A8DE923109F"><enum>(ii)</enum><text>utilized by the taxpayer in a manner described in paragraph (5) of such section.</text></clause></subparagraph></paragraph></subsection><subsection id="HD8B61981D01B45B293334A057B930D8A" commented="no"><enum>(c)</enum><header>Inflation adjustment</header><paragraph id="HF546C382F606496C8C23E01CC3CFF78D" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of a calendar year beginning after 2024, the 0.3 cent amount in paragraph (2)(A) of subsection (a) and the 1.5 cent amount in paragraph (2)(B) of such subsection shall each be adjusted by multiplying such amount by the inflation adjustment factor for the calendar year in which the sale, consumption, or storage of the electricity occurs. If the 0.3 cent amount as increased under this paragraph is not a multiple of 0.05 cent, such amount shall be rounded to the nearest multiple of 0.05 cent. If the 1.5 cent amount as increased under this paragraph is not a multiple of 0.1 cent, such amount shall be rounded to the nearest multiple of 0.1 cent.</text></paragraph><paragraph id="H848A7F32C55B49D58A1AA05C098E79DD" commented="no"><enum>(2)</enum><header>Annual computation</header><text>The Secretary shall, not later than April 1 of each calendar year, determine and publish in the Federal Register the inflation adjustment factor for such calendar year in accordance with this subsection.</text></paragraph><paragraph id="H0BBC44A7A3DA4165B1AAEFBBADFB8ECA" commented="no"><enum>(3)</enum><header>Inflation adjustment factor</header><text>The term <quote>inflation adjustment factor</quote> means, with respect to a calendar year, a fraction the numerator of which is the GDP implicit price deflator for the preceding calendar year and the denominator of which is the GDP implicit price deflator for the calendar year 1992. The term <term>GDP implicit price deflator</term> means the most recent revision of the implicit price deflator for the gross domestic product as computed and published by the Department of Commerce before March 15 of the calendar year.</text></paragraph></subsection><subsection id="H065E6B89DAE944EC8926784C79811781" commented="no"><enum>(d)</enum><header>Credit phase-out</header><paragraph id="H2FAB64EC8815451EB04BE55C45492366" commented="no"><enum>(1)</enum><header>In general</header><text>The amount of the clean electricity production credit under subsection (a) for any qualified facility the construction of which begins during a calendar year described in paragraph (2) shall be equal to the product of—</text><subparagraph id="HC3ECC746709F419AB8050A6243530188" commented="no"><enum>(A)</enum><text>the amount of the credit determined under subsection (a) without regard to this subsection, multiplied by</text></subparagraph><subparagraph id="HC7BC50C2ED494D8890331A67E490759B" commented="no"><enum>(B)</enum><text>the phase-out percentage under paragraph (2).</text></subparagraph></paragraph><paragraph id="HEE76DE8167BF4516BA37EFCE9C076059" commented="no"><enum>(2)</enum><header>Phase-out percentage</header><text>The phase-out percentage under this paragraph is equal to—</text><subparagraph id="H769FE62DA206417EA8E965B4AC51140D" commented="no"><enum>(A)</enum><text>for a facility the construction of which begins during the first calendar year following the applicable year, 100 percent,</text></subparagraph><subparagraph id="HFF97E8755C254EC6ABAC4014A413FB4A" commented="no"><enum>(B)</enum><text>for a facility the construction of which begins during the second calendar year following the applicable year, 75 percent,</text></subparagraph><subparagraph id="H04C44030022845978C90775363DEE6C3" commented="no"><enum>(C)</enum><text>for a facility the construction of which begins during the third calendar year following the applicable year, 50 percent, and</text></subparagraph><subparagraph commented="no" id="HACE5A2F86CB5416D8B9F1DC0156B0C8E"><enum>(D)</enum><text>for a facility the construction of which begins during any calendar year subsequent to the calendar year described in subparagraph (C), 0 percent.</text></subparagraph></paragraph><paragraph commented="no" id="H2D661FFB1BF448139DB96F537974AB48"><enum>(3)</enum><header>Applicable year</header><text>For purposes of this subsection, the term <term>applicable year</term> means the later of—</text><subparagraph commented="no" id="H435620329BF645B4A349818E163DDDA2"><enum>(A)</enum><text>the calendar year in which the Secretary determines that the annual greenhouse gas emissions from the production of electricity in the United States are equal to or less than 25 percent of the annual greenhouse gas emissions from the production of electricity in the United States for calendar year 2022, or</text></subparagraph><subparagraph commented="no" id="HF0AAF205B7794D1DBB1FD2A89ADB0947"><enum>(B)</enum><text>2032.</text></subparagraph></paragraph></subsection><subsection id="H70832F150379442395540B1A3F154FBF" commented="no"><enum>(e)</enum><header>Definitions</header><text>For purposes of this section:</text><paragraph id="H5DC8BEF84EF949AA9BD04D28C45E378B" commented="no"><enum>(1)</enum><header>CO<subscript>2</subscript><enum-in-header>e</enum-in-header> per <enum-in-header>KWh</enum-in-header></header><text>The term <term>CO<subscript>2</subscript>e per KWh</term> means, with respect to any greenhouse gas, the equivalent carbon dioxide (as determined based on global warming potential) per kilowatt hour of electricity produced.</text></paragraph><paragraph id="HF1814A36DFE242B19EBBCF82084D6FFD" commented="no"><enum>(2)</enum><header>Greenhouse gas</header><text>The term <term>greenhouse gas</term> has the same meaning given such term under section 211(o)(1)(G) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(1)(G)</external-xref>), as in effect on the date of the enactment of this section.</text></paragraph><paragraph commented="no" id="HF7AA865F2FAA4836AE439A43DFE50C7D"><enum>(3)</enum><header>Qualified carbon dioxide</header><text>The term <term>qualified carbon dioxide</term> means carbon dioxide captured from an industrial source which—</text><subparagraph commented="no" id="HC624DCBC29D147B9B875538E4EF313D5"><enum>(A)</enum><text>would otherwise be released into the atmosphere as industrial emission of greenhouse gas,</text></subparagraph><subparagraph commented="no" id="HD996BF2FE7E64B0D92DFC0CF85ECEDB4"><enum>(B)</enum><text>is measured at the source of capture and verified at the point of disposal or utilization, and</text></subparagraph><subparagraph commented="no" id="HFBF48DE8D06746C396BDA6B2B02B9B22"><enum>(C)</enum><text>is captured and disposed or utilized within the United States (within the meaning of section 638(1)) or a possession of the United States (within the meaning of section 638(2)).</text></subparagraph></paragraph></subsection><subsection id="HFFDEC851B4F74171AC65AA2EC3B03F05" commented="no"><enum>(f)</enum><header>Guidance</header><text>Not later than January 1, 2025, the Secretary shall issue guidance regarding implementation of this section, including calculation of greenhouse gas emission rates for qualified facilities and determination of clean electricity production credits under this section.</text></subsection><subsection id="H9D4A639E5A824A1F91469A45243F32A5" commented="no"><enum>(g)</enum><header>Special rules</header><paragraph id="H6B4D4867C39A48009EBBD9E1BC232390" commented="no"><enum>(1)</enum><header>Only production in the United States taken into account</header><text>Consumption, sales, or storage shall be taken into account under this section only with respect to electricity the production of which is within—</text><subparagraph id="H88D642B3ECBC41C2AD6BFF0F45ECF1C8" commented="no"><enum>(A)</enum><text>the United States (within the meaning of section 638(1)), or</text></subparagraph><subparagraph id="HEFFFBF7F52D448959A6DE9E198DC0B6D" commented="no"><enum>(B)</enum><text>a possession of the United States (within the meaning of section 638(2)).</text></subparagraph></paragraph><paragraph id="HEB6E69435C3B4E4083B49F355291CA53" commented="no"><enum>(2)</enum><header>Combined heat and power system property</header><subparagraph id="HC44AC02FE7E0476BB452196CD5AA0DB3" commented="no"><enum>(A)</enum><header>In general</header><text>For purposes of subsection (a)—</text><clause id="H694ED85381E142BD86D3109607774CD3" commented="no"><enum>(i)</enum><text>the kilowatt hours of electricity produced by a taxpayer at a qualified facility shall include any production in the form of useful thermal energy by any combined heat and power system property within such facility, and</text></clause><clause id="HBD4DA643F5554415B06DA390E18BF132" commented="no"><enum>(ii)</enum><text>the amount of greenhouse gases emitted into the atmosphere by such facility in the production of such useful thermal energy shall be included for purposes of determining the greenhouse gas emissions rate for such facility.</text></clause></subparagraph><subparagraph id="HA4DD25B76E0F46719AF144BA00270BF5" commented="no"><enum>(B)</enum><header>Combined heat and power system property</header><text>For purposes of this paragraph, the term <term>combined heat and power system property</term> has the same meaning given such term by section 48(c)(3) (without regard to subparagraphs (A)(iv), (B), and (D) thereof).</text></subparagraph><subparagraph id="H44013E6DBC754C469F7040A51468FACF" commented="no"><enum>(C)</enum><header>Conversion from BTU to KWh</header><clause id="H3E65DDC01AD04E4F85B32328F9B31505" commented="no"><enum>(i)</enum><header>In general</header><text>For purposes of subparagraph (A)(i), the amount of kilowatt hours of electricity produced in the form of useful thermal energy shall be equal to the quotient of—</text><subclause id="H4439330904694851A6A23393C8B17E77" commented="no"><enum>(I)</enum><text>the total useful thermal energy produced by the combined heat and power system property within the qualified facility, divided by</text></subclause><subclause id="H92AC21DE425D4B1991888F3440CA664A" commented="no"><enum>(II)</enum><text>the heat rate for such facility.</text></subclause></clause><clause id="HFABD2F81B84F4E77B17B37FC9F841B86" commented="no"><enum>(ii)</enum><header>Heat rate</header><text>For purposes of this subparagraph, the term <term>heat rate</term> means the amount of energy used by the qualified facility to generate 1 kilowatt hour of electricity, expressed as British thermal units per net kilowatt hour generated.</text></clause></subparagraph></paragraph><paragraph id="H441D9C87EEBD4AE2839855A4EEA08F0D" commented="no"><enum>(3)</enum><header>Production attributable to the taxpayer</header><text>In the case of a qualified facility in which more than 1 person has an ownership interest, except to the extent provided in regulations prescribed by the Secretary, production from the facility shall be allocated among such persons in proportion to their respective ownership interests in the gross sales from such facility.</text></paragraph><paragraph id="HD39CAE5EA8784075B48CF7A9C59BE0AD" commented="no"><enum>(4)</enum><header>Related persons</header><text>Persons shall be treated as related to each other if such persons would be treated as a single employer under the regulations prescribed under section 52(b). In the case of a corporation which is a member of an affiliated group of corporations filing a consolidated return, such corporation shall be treated as selling electricity to an unrelated person if such electricity is sold to such a person by another member of such group.</text></paragraph><paragraph id="HD4CFFA0162E2416AACE35668E8295AB6" commented="no"><enum>(5)</enum><header>Pass-thru in the case of estates and trusts</header><text>Under regulations prescribed by the Secretary, rules similar to the rules of subsection (d) of section 52 shall apply.</text></paragraph><paragraph id="H9CD9220FC6994BD7A3AD8621DED0F275" commented="no"><enum>(6)</enum><header>Allocation of credit to patrons of agricultural cooperative</header><subparagraph id="H896656863F5248A4A30EAF6F02E20959" commented="no"><enum>(A)</enum><header>Election to allocate</header><clause id="HB2A0166414F4411ABEF7DC4866FB40E6" commented="no"><enum>(i)</enum><header>In general</header><text>In the case of an eligible cooperative organization, any portion of the credit determined under subsection (a) for the taxable year may, at the election of the organization, be apportioned among patrons of the organization on the basis of the amount of business done by the patrons during the taxable year.</text></clause><clause id="HADACE647C94C4647829A99608C55C3D6" commented="no"><enum>(ii)</enum><header>Form and effect of election</header><text>An election under clause (i) for any taxable year shall be made on a timely filed return for such year. Such election, once made, shall be irrevocable for such taxable year. Such election shall not take effect unless the organization designates the apportionment as such in a written notice mailed to its patrons during the payment period described in section 1382(d).</text></clause></subparagraph><subparagraph id="HED8DEEFE23F045248F3A574CA3AC259F" commented="no"><enum>(B)</enum><header>Treatment of organizations and patrons</header><text>The amount of the credit apportioned to any patrons under subparagraph (A)—</text><clause id="H8A91EBEDA50F45529C43A7FC77F949D6" commented="no"><enum>(i)</enum><text>shall not be included in the amount determined under subsection (a) with respect to the organization for the taxable year, and</text></clause><clause id="HECFBCDB83928443D9AD5D5A6396B0399" commented="no"><enum>(ii)</enum><text>shall be included in the amount determined under subsection (a) for the first taxable year of each patron ending on or after the last day of the payment period (as defined in section 1382(d)) for the taxable year of the organization or, if earlier, for the taxable year of each patron ending on or after the date on which the patron receives notice from the cooperative of the apportionment.</text></clause></subparagraph><subparagraph id="H216B8D4EBE634C0C89907BC01CFAA9A6" commented="no"><enum>(C)</enum><header>Special rules for decrease in credits for taxable year</header><text>If the amount of the credit of a cooperative organization determined under subsection (a) for a taxable year is less than the amount of such credit shown on the return of the cooperative organization for such year, an amount equal to the excess of—</text><clause id="H1EC48E5C031A4A519E335D237E8317AB" commented="no"><enum>(i)</enum><text>such reduction, over</text></clause><clause id="H2B76A595443D46C6890120E5B7359F33" commented="no"><enum>(ii)</enum><text>the amount not apportioned to such patrons under subparagraph (A) for the taxable year,</text></clause><continuation-text continuation-text-level="subparagraph" commented="no">shall be treated as an increase in tax imposed by this chapter on the organization. Such increase shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit under this chapter. </continuation-text></subparagraph><subparagraph id="HE12CB456C8A2492C9C967048ACC635BF" commented="no"><enum>(D)</enum><header>Eligible cooperative defined</header><text>For purposes of this section, the term <term>eligible cooperative</term> means a cooperative organization described in section 1381(a) which is owned more than 50 percent by agricultural producers or by entities owned by agricultural producers. For this purpose an entity owned by an agricultural producer is one that is more than 50 percent owned by agricultural producers.</text></subparagraph></paragraph><paragraph id="HACD19C275ECF40A480A0E6D3DB45504E" commented="no"><enum>(7)</enum><header>Increase in credit in energy communities</header><text>In the case of any qualified facility which is located in an energy community (as defined in section 45(b)(11)(B)), for purposes of determining the amount of the credit under subsection (a) with respect to any electricity produced by the taxpayer at such facility during the taxable year, the applicable amount under paragraph (2) of such subsection shall be increased by an amount equal to 10 percent of the amount otherwise in effect under such paragraph.</text></paragraph><paragraph id="H0B547E0CA9954276B725CE60D7A53B33" commented="no"><enum>(8)</enum><header>Credit reduced for tax-exempt bonds</header><text>Rules similar to the rules of section 45(b)(3) shall apply.</text></paragraph><paragraph commented="no" id="H2794FDE563254A34ACCDC256F5E87B21"><enum>(9)</enum><header>Wage requirements</header><text display-inline="yes-display-inline">Rules similar to the rules of section 45(b)(7) shall apply.</text></paragraph><paragraph id="HE847F54633E74766885CFC11A1870FB8" commented="no"><enum>(10)</enum><header>Apprenticeship requirements</header><text display-inline="yes-display-inline">Rules similar to the rules of section 45(b)(8) shall apply. </text></paragraph><paragraph id="idCDE8C1ADD3944E7B80E9B57FCABD4710" commented="no"><enum>(11)</enum><header>Domestic content bonus credit amount</header><subparagraph id="id4963C4DBEC584F62AF7BFD19B998D7C6" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any qualified facility which satisfies the requirement under subparagraph (B)(i), the amount of the credit determined under subsection (a) shall be increased by an amount equal to 10 percent of the amount so determined (as determined without application of paragraph (7)).</text></subparagraph><subparagraph id="idE8AECF5D84674C2ABF8B72215510EAD0" commented="no"><enum>(B)</enum><header>Requirement</header><clause id="id4B9A4187483E48CCAE136AA50C0E74A4" commented="no"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">The requirement described in this subclause is satisfied with respect to any qualified facility if the taxpayer certifies to the Secretary (at such time, and in such form and manner, as the Secretary may prescribe) that any steel, iron, or manufactured product which is a component of such facility (upon completion of construction) was produced in the United States (as determined under section 661 of title 49, Code of Federal Regulations).</text></clause><clause id="idE678246D467A4459A8B5CB59A075F9DA" commented="no"><enum>(ii)</enum><header>Steel and iron</header><text>In the case of steel or iron, clause (i) shall be applied in a manner consistent with section 661.5 of title 49, Code of Federal Regulations.</text></clause><clause id="idC491662180814145A6FED05D2C3CAACA" commented="no"><enum>(iii)</enum><header>Manufactured product</header><text display-inline="yes-display-inline">For purposes of clause (i), the manufactured products which are components of a qualified facility upon completion of construction shall be deemed to have been produced in the United States if not less than the adjusted percentage (as determined under subparagraph (C)) of the total costs of all such manufactured products of such facility are attributable to manufactured products (including components) which are mined, produced, or manufactured in the United States.</text></clause></subparagraph><subparagraph id="id8D3AD84A896E47B0A3C1C08198E377DD"><enum>(C)</enum><header>Adjusted percentage</header><clause id="idCFA69243AB6F4B60A2878F6654AD90B8"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">Subject to subclause (ii), for purposes of subparagraph (B)(iii), the adjusted percentage shall be—</text><subclause id="idFB7BCDC98F254048B4CF161BB8D68127" commented="no"><enum>(I)</enum><text>in the case of a facility the construction of which begins before January 1, 2025, 40 percent,</text></subclause><subclause commented="no" id="idD163FE4FD1AB448F80652EA616E97A39"><enum>(II)</enum><text>in the case of a facility the construction of which begins after December 31, 2024, and before January 1, 2026, 45 percent,</text></subclause><subclause id="id7D0AD2620FA845D5A9C6DF50DD9C8EDC" commented="no"><enum>(III)</enum><text>in the case of a facility the construction of which begins after December 31, 2025, and before January 1, 2027, 50 percent, and </text></subclause><subclause id="id27BA458658AC42EE9316CEA751FA08CC" commented="no"><enum>(IV)</enum><text>in the case of a facility the construction of which begins after December 31, 2026, 55 percent.</text></subclause></clause><clause id="id4AEBDF683C8E442AAD7CD5736EDA440E" commented="no"><enum>(ii)</enum><header>Offshore wind facility</header><text display-inline="yes-display-inline">For purposes of subparagraph (B)(iii), in the case of a qualified facility which is an offshore wind facility, the adjusted percentage shall be—</text><subclause id="id5EB673BC4B3A4F7EA5ABA971A2DECFAF" commented="no"><enum>(I)</enum><text>in the case of a facility the construction of which begins before January 1, 2025, 20 percent,</text></subclause><subclause commented="no" id="id6ED029727ACE4F9795C34EFD512C15F0"><enum>(II)</enum><text>in the case of a facility the construction of which begins after December 31, 2024, and before January 1, 2026, 27.5 percent,</text></subclause><subclause id="idF31F4CBA0F6745478CC8878F0C0E538E" commented="no"><enum>(III)</enum><text>in the case of a facility the construction of which begins after December 31, 2025, and before January 1, 2027, 35 percent,</text></subclause><subclause id="idED4B6E39F1654548879E69F04440F915" commented="no"><enum>(IV)</enum><text>in the case of a facility the construction of which begins after December 31, 2026, and before January 1, 2028, 45 percent, and</text></subclause><subclause id="idB679335AFA5B44029ECE798460DFBC7D" commented="no"><enum>(V)</enum><text>in the case of a facility the construction of which begins after December 31, 2027, 55 percent.</text></subclause></clause></subparagraph></paragraph><paragraph id="id4629FE2503BE4290BD8CF3332A9DC81E" commented="no"><enum>(12)</enum><header>Phaseout for elective payment</header><subparagraph id="idB0A6DF115FCC4350A9539B6D5DA2B797" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of a taxpayer making an election under section 6417 with respect to a credit under this section, the amount of such credit shall be replaced with—</text><clause id="id55260840EE32424EB6CFE88772419D5B" commented="no"><enum>(i)</enum><text>the value of such credit (determined without regard to this paragraph), multiplied by</text></clause><clause id="id30310E54BE2547D19B4540684455E993" commented="no"><enum>(ii)</enum><text>the applicable percentage. </text></clause></subparagraph><subparagraph id="id94ABB420EDEF413698BC8A3B2062E13B" commented="no"><enum>(B)</enum><header>100 percent applicable percentage for certain qualified facilities</header><text display-inline="yes-display-inline">In the case of any qualified facility—</text><clause id="id1938084CD7C947E6BCFF48F9F04BA393" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">which satisfies the requirements under paragraph (11)(B), or</text></clause><clause id="idFC21D41346694A879710744BA16008C8" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">with a maximum net output of less than 1 megawatt (as measured in alternating current),</text></clause><continuation-text continuation-text-level="subparagraph" commented="no">the applicable percentage shall be 100 percent. </continuation-text></subparagraph><subparagraph id="id485FA1ABD1A5496CB662508CEA508443" commented="no"><enum>(C)</enum><header>Phased domestic content requirement</header><text display-inline="yes-display-inline">Subject to subparagraph (D), in the case of any qualified facility which is not described in subparagraph (B), the applicable percentage shall be—</text><clause id="HC35A39F4144E4E7A967E6063219B12D1" commented="no"><enum>(i)</enum><text>if construction of such facility began before January 1, 2024, 100 percent,</text></clause><clause commented="no" id="idFA2D205F02A146D58A54D8EC0F7FC2AA"><enum>(ii)</enum><text>if construction of such facility began in calendar year 2024, 90 percent,</text></clause><clause commented="no" id="idF0DD2D9B1FE34FB5BB00478C4DF082F1"><enum>(iii)</enum><text>if construction of such facility began in calendar year 2025, 85 percent, and </text></clause><clause id="H16D78CC4795E459696FFBB5D4DF8927E" commented="no"><enum>(iv)</enum><text>if construction of such facility began after December 31, 2025, 0 percent.</text></clause></subparagraph><subparagraph id="id90288B5642A345FAB5B8F15C660D255C" commented="no"><enum>(D)</enum><header>Exception</header><clause id="id67F6151E27154FC89F82CD0F3B3ABDFF"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this paragraph, the Secretary shall provide exceptions to the requirements under this paragraph if—</text><subclause id="idD0A01D6960F64399937EA6244498DBFD"><enum>(I)</enum><text>the inclusion of steel, iron, or manufactured products which are produced in the United States increases the overall costs of construction of qualified facilities by more than 25 percent, or</text></subclause><subclause id="id253FDFEA4FB94358A4DA1FF7324EE8D2"><enum>(II)</enum><text display-inline="yes-display-inline">relevant steel, iron, or manufactured products are not produced in the United States in sufficient and reasonably available quantities or of a satisfactory quality.</text></subclause></clause><clause id="id0D468A8EDF3849C6940D2E59DE90D959"><enum>(ii)</enum><header>Applicable percentage</header><text display-inline="yes-display-inline">In any case in which the Secretary provides an exception pursuant to clause (i), the applicable percentage shall be 100 percent.</text></clause></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HD1F39457DA46465DA51ED5A2337B0B1C" commented="no"><enum>(b)</enum><header>Conforming amendments</header><paragraph id="H048F879C243448BBA6D0284D7360E4AB" commented="no"><enum>(1)</enum><text>Section 38(b), as amended by the preceding provisions of this Act, is amended—</text><subparagraph id="HCDD4746E3002434FB5A89F74F6BD50DE" commented="no"><enum>(A)</enum><text>in paragraph (37), by striking <quote>plus</quote> at the end,</text></subparagraph><subparagraph id="HC72CA49DCD454084B98AEEB295C62EE9" commented="no"><enum>(B)</enum><text>in paragraph (38), by striking the period at the end and inserting <quote>, plus</quote>, and</text></subparagraph><subparagraph id="HBD741B3BE471434890212A62ED4BB9D5" commented="no"><enum>(C)</enum><text>by adding at the end the following new paragraph:</text><quoted-block display-inline="no-display-inline" id="H5AA651055BAA41CE86348770210C9293" style="OLC" changed="added" reported-display-style="italic"><paragraph id="H863ECDBC3BDD4C3E9E6057ACA3203109" commented="no"><enum>(39)</enum><text>the clean electricity production credit determined under section 45Y(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="HD8AA38E1043D44758480E96A076C921B" commented="no"><enum>(2)</enum><text>The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by adding at the end the following new item:</text><quoted-block display-inline="no-display-inline" id="HCA8CE42E8EFF47FA94393D83356DE2BB" style="OLC" changed="added" reported-display-style="italic"><toc changed="added" reported-display-style="italic"><toc-entry bold="off" level="section">Sec. 45Y. Clean electricity production credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H5ACBB839866048D9B64DDE8124978267" commented="no"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to facilities placed in service after December 31, 2024.</text></subsection></section><section id="HE5FDAF1570EF4A2987792313AE3BCACF" commented="no"><enum>13702.</enum><header>Clean electricity investment credit</header><subsection id="H0EAAB040834F429F9B5CB16FAE4D4A1D" commented="no"><enum>(a)</enum><header>In general</header><text>Subpart E of part IV of subchapter A of chapter 1, as amended by section 107(a) of the CHIPS Act of 2022, is amended by inserting after section 48D the following new section:</text><quoted-block display-inline="no-display-inline" id="HA3FC5BC9096C4978A5D9A588D27ED847" style="OLC" changed="added" reported-display-style="italic"><section id="H6E3263A4DB774C92A96AD36EB2CC0204" commented="no"><enum>48E.</enum><header>Clean electricity investment credit</header><subsection id="HC625045073B14C27ABFB865209476C53" commented="no"><enum>(a)</enum><header>Investment credit for qualified property</header><paragraph id="H435D2E875EA14CE9A5C2C7EB47919369" commented="no"><enum>(1)</enum><header>In general</header><text>For purposes of section 46, the clean electricity investment credit for any taxable year is an amount equal to the applicable percentage of the qualified investment for such taxable year with respect to—</text><subparagraph id="H783DEB9DFECF4166B671CA29E2E519EF" commented="no"><enum>(A)</enum><text>any qualified facility, and </text></subparagraph><subparagraph id="H9B460530658F49538744458B959C3152" commented="no"><enum>(B)</enum><text>any energy storage technology.</text></subparagraph></paragraph><paragraph id="HE0DBBF21E00A419AA7B8B4E9944D3F58" commented="no"><enum>(2)</enum><header>Applicable percentage</header><subparagraph id="H936529FB5C514880A36C6244290A1FDC" commented="no"><enum>(A)</enum><header>Qualified facilities</header><text>Subject to paragraph (3)—</text><clause id="H1805BB09D56F4289A6F2CDCC3D51B898" commented="no"><enum>(i)</enum><header>Base rate</header><text>In the case of any qualified facility which is not described in subclause (I) or (II) of clause (ii) and does not satisfy the requirements described in subclause (III) of such clause, the applicable percentage shall be 6 percent.</text></clause><clause id="H9CE451C244BA46B1A52C7A989DB56CC8" commented="no"><enum>(ii)</enum><header>Alternative rate</header><text>In the case of any qualified facility—</text><subclause id="H335AB44A021E489886EDFCC111463CFD" commented="no"><enum>(I)</enum><text>with a maximum net output of less than 1 megawatt (as measured in alternating current), </text></subclause><subclause id="HD6F982ED53E2441BB56C8CC7BC2A1D04" commented="no"><enum>(II)</enum><text>the construction of which begins prior to the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (3) and (4) of subsection (d), or</text></subclause><subclause commented="no" id="id4FB0C6C1596848DDA110CCD1FC22D686"><enum>(III)</enum><text>which—</text><item commented="no" id="H30682E090BF540EBB04833C341EE0689"><enum>(aa)</enum><text>satisfies the requirements of subsection (d)(3), and</text></item><item commented="no" id="HA0D922ACB7C84F0DBCDD89D83A05B8BA"><enum>(bb)</enum><text>with respect to the construction of such facility, satisfies the requirements of subsection (d)(4), </text></item></subclause><continuation-text continuation-text-level="clause" commented="no">the applicable percentage shall be 30 percent. </continuation-text></clause></subparagraph><subparagraph id="H3CAE8F7D01B34971BD774F56266B0296" commented="no"><enum>(B)</enum><header>Energy storage technology</header><text>Subject to paragraph (3)—</text><clause id="H0C392EC009564A808CD5F3B52D2C21B1" commented="no"><enum>(i)</enum><header>Base rate</header><text>In the case of any energy storage technology which is not described in subclause (I) or (II) of clause (ii) and does not satisfy the requirements described in subclause (III) of such clause, the applicable percentage shall be 6 percent.</text></clause><clause id="H9390C7CC91FD4C689F5E7669A7330298" commented="no"><enum>(ii)</enum><header>Alternative rate</header><text>In the case of any energy storage technology—</text><subclause id="H02DD412EE87F4BFF8C91DF7C70389578" commented="no"><enum>(I)</enum><text>with a capacity of less than 1 megawatt,</text></subclause><subclause id="H6B19F2E556BC4E7DB5BF4D41F681253E" commented="no"><enum>(II)</enum><text>the construction of which begins prior to the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (3) and (4) of subsection (d), or</text></subclause><subclause commented="no" id="idAC0396EF734D4E648FCECBC7EFF12B77"><enum>(III)</enum><text>which—</text><item commented="no" id="H14A6D4D33F694FECBE7FE3FB4587D580"><enum>(aa)</enum><text>satisfies the requirements of subsection (d)(3), and</text></item><item commented="no" id="H4FEBD235816344A7981E4837F1CEC59B"><enum>(bb)</enum><text display-inline="yes-display-inline">with respect to the construction of such property, satisfies the requirements of subsection (d)(4), </text></item></subclause><continuation-text continuation-text-level="clause" commented="no">the applicable percentage shall be 30 percent. </continuation-text></clause></subparagraph></paragraph><paragraph id="HA9389AB3D5C84898969697152CE701A7" commented="no"><enum>(3)</enum><header>Increase in credit rate in certain cases</header><subparagraph id="H8C8A333FD6904B74983E489E8A3D07E7" commented="no"><enum>(A)</enum><header>Energy communities</header><clause id="HF9949DA4FED243BE823D0FC341C2E6CF" commented="no"><enum>(i)</enum><header>In general</header><text>In the case of any qualified investment with respect to a qualified facility or with respect to energy storage technology which is placed in service within an energy community (as defined in section 45(b)(11)(B)), for purposes of applying paragraph (2) with respect to such property or investment, the applicable percentage shall be increased by the applicable credit rate increase.</text></clause><clause id="H91F7184540144AC8A88F7043C7B8EE5B" commented="no"><enum>(ii)</enum><header>Applicable credit rate increase</header><text>For purposes of clause (i), the applicable credit rate increase shall be an amount equal to—</text><subclause id="H3EAF2FB13CE54A6287F5C599BA63589F" commented="no"><enum>(I)</enum><text>in the case of any qualified investment with respect to a qualified facility described in paragraph (2)(A)(i) or with respect to energy storage technology described in paragraph (2)(B)(i), 2 percentage points, and</text></subclause><subclause id="H8002AF9214F949F587821616E1FBC473" commented="no"><enum>(II)</enum><text>in the case of any qualified investment with respect to a qualified facility described in paragraph (2)(A)(ii) or with respect to energy storage technology described in paragraph (2)(B)(ii), 10 percentage points.</text></subclause></clause></subparagraph><subparagraph id="H505E4ECFE7334B79B4DA75B555BF2604" commented="no"><enum>(B)</enum><header>Domestic content</header><text display-inline="yes-display-inline">Rules similar to the rules of section 48(a)(12) shall apply. </text></subparagraph></paragraph></subsection><subsection id="H9D2E822089EB4C5DB418EA47B5846C9A" commented="no"><enum>(b)</enum><header>Qualified investment with respect to a qualified facility</header><paragraph id="H04C8736AD2594653B322B7DA223CDEBC" commented="no"><enum>(1)</enum><header>In general</header><text>For purposes of subsection (a), the qualified investment with respect to any qualified facility for any taxable year is the sum of—</text><subparagraph id="H48E7E15460A94A648DA3D5B0B5DFCD98" commented="no"><enum>(A)</enum><text>the basis of any qualified property placed in service by the taxpayer during such taxable year which is part of a qualified facility, plus</text></subparagraph><subparagraph id="HFBED85F5993547AEB9F0110A35035E08" commented="no"><enum>(B)</enum><text>the amount of any expenditures which are—</text><clause id="H2B99DF5190A94D35B3C940E6419B949B" commented="no"><enum>(i)</enum><text>paid or incurred by the taxpayer for qualified interconnection property—</text><subclause id="HB859EBEF568A48E88DA635BB0DA79344" commented="no"><enum>(I)</enum><text>in connection with a qualified facility which has a maximum net output of not greater than 5 megawatts (as measured in alternating current), and</text></subclause><subclause id="HD8BA9CA90CA74B3FBCCC054D751920C7" commented="no"><enum>(II)</enum><text>placed in service during the taxable year of the taxpayer, and</text></subclause></clause><clause id="HAEA3847D00EF428496147A28FBC5D20A" commented="no"><enum>(ii)</enum><text>properly chargeable to capital account of the taxpayer.</text></clause></subparagraph></paragraph><paragraph id="H5DE8CBB982134D46A6129B5283513B01" commented="no"><enum>(2)</enum><header>Qualified property</header><text>For purposes of this section, the term <term>qualified property</term> means property—</text><subparagraph id="H48541A162EFA4678B80BD8255BE57CA9" commented="no"><enum>(A)</enum><text>which is—</text><clause id="HF23F8D3B9578415B9B82916B9F716888" commented="no"><enum>(i)</enum><text>tangible personal property, or</text></clause><clause id="HF3B16EA9FA534D6F87BF230422AEE356" commented="no"><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 qualified facility,</text></clause></subparagraph><subparagraph id="HD4BBB2229ED24F00B5457B9A8062888B" commented="no"><enum>(B)</enum><text>with respect to which depreciation (or amortization in lieu of depreciation) is allowable, and</text></subparagraph><subparagraph id="HC19CE70E120F4433A2D4828616C5E9FE" commented="no"><enum>(C)</enum><clause commented="no" display-inline="yes-display-inline" id="H61C710CEAC25403AAFDBEC572D56990C"><enum>(i)</enum><text>the construction, reconstruction, or erection of which is completed by the taxpayer, or</text></clause><clause indent="up1" id="HA8CB0EE669B34867A8C5ABE9D39B005C" commented="no"><enum>(ii)</enum><text>which is acquired by the taxpayer if the original use of such property commences with the taxpayer.</text></clause></subparagraph></paragraph><paragraph commented="no" id="H2794B9CE0A7642958BDE58C229DBC385"><enum>(3)</enum><header>Qualified facility</header><subparagraph commented="no" id="H7C5F9C18FCA34CF4A1CDC0B3EA944515"><enum>(A)</enum><header>In general</header><text>For purposes of this section, the term <term>qualified facility</term> means a facility—</text><clause commented="no" id="H1FBF5590AC844C1D99978FDD119680DE"><enum>(i)</enum><text>which is used for the generation of electricity,</text></clause><clause commented="no" id="HFF8343F6F6674A54A7F5755B5B5F89A2"><enum>(ii)</enum><text>which is placed in service after December 31, 2024, and</text></clause><clause commented="no" id="H69EC18C11B16470A857498FBBB800F57"><enum>(iii)</enum><text>for which the anticipated greenhouse gas emissions rate (as determined under subparagraph (B)(ii)) is not greater than zero.</text></clause></subparagraph><subparagraph commented="no" id="H50B8315547CD403F9D30433B8EE137B7"><enum>(B)</enum><header>Additional rules</header><clause commented="no" id="H6B04D4C7C0A8447E98DC771CD8C9E882"><enum>(i)</enum><header>Expansion of facility; incremental production</header><text>Rules similar to the rules of section 45Y(b)(1)(C) shall apply for purposes of this paragraph.</text></clause><clause commented="no" id="H7DC8C7B3BE934D918D801DE5FCFB18D4"><enum>(ii)</enum><header>Greenhouse gas emissions rate</header><text>Rules similar to the rules of section 45Y(b)(2) shall apply for purposes of this paragraph.</text></clause></subparagraph><subparagraph commented="no" id="H327B9DA7BE14446B9E0033BD5FD9A29D"><enum>(C)</enum><header>Exclusion</header><text>The term <term>qualified facility</term> shall not include any facility for which—</text><clause commented="no" id="HE5E030A4F88C42D690CAFD9734621A1D"><enum>(i)</enum><text>a renewable electricity production credit determined under section 45, </text></clause><clause commented="no" id="H92084EFD34714A4C864222F302027073"><enum>(ii)</enum><text>an advanced nuclear power facility production credit determined under section 45J, </text></clause><clause commented="no" id="H4BD2171D46E046F290A0C19575D95F6C"><enum>(iii)</enum><text>a carbon oxide sequestration credit determined under section 45Q,</text></clause><clause commented="no" id="H9ACD006CCB4F45F3B90F766CC57F2BE5"><enum>(iv)</enum><text>a zero-emission nuclear power production credit determined under section 45U,</text></clause><clause commented="no" id="id9EF2A51AF4324BF8BDD923CB0D0D2508"><enum>(v)</enum><text>a clean electricity production credit determined under section 45Y,</text></clause><clause commented="no" id="H481D161C10B941A7B912FCCE9BCDFC41"><enum>(vi)</enum><text>an energy credit determined under section 48, or</text></clause><clause commented="no" id="H1B77891EA0EC4C0CB0D123ED706657BC"><enum>(vii)</enum><text>a qualifying advanced coal project credit under section 48A,</text></clause><continuation-text continuation-text-level="subparagraph" commented="no">is allowed under section 38 for the taxable year or any prior taxable year. </continuation-text></subparagraph></paragraph><paragraph commented="no" id="H1654642891A54A50953FA623557709CA"><enum>(4)</enum><header>Qualified interconnection property</header><text>For purposes of this paragraph, the term <quote>qualified interconnection property</quote> has the meaning given such term in section 48(a)(8)(B). </text></paragraph><paragraph id="HA328601041904B479BB9ADBB66A44220" commented="no"><enum>(5)</enum><header>Coordination with rehabilitation credit</header><text>The qualified investment with respect to any qualified facility for any taxable year shall not include that portion of the basis of any property which is attributable to qualified rehabilitation expenditures (as defined in section 47(c)(2)).</text></paragraph><paragraph id="HB844D0351F7C4C5EB10BC91A9840F162" commented="no"><enum>(6)</enum><header>Definitions</header><text>For purposes of this subsection, the terms <term>CO2e per KWh</term> and <term>greenhouse gas emissions rate</term> have the same meaning given such terms under section 45Y. </text></paragraph></subsection><subsection id="HC1E5D870CCAA4494BF420F27AC2F754E" commented="no"><enum>(c)</enum><header>Qualified investment with respect to energy storage technology</header><paragraph id="H4547705647F0417D8948BD91DA8D1D43" commented="no"><enum>(1)</enum><header>Qualified investment</header><text>For purposes of subsection (a), the qualified investment with respect to energy storage technology for any taxable year is the basis of any energy storage technology placed in service by the taxpayer during such taxable year.</text></paragraph><paragraph id="HA2EFCA033E564FB0A91E4B1D8114D986" commented="no"><enum>(2)</enum><header>Energy storage technology</header><text>For purposes of this section, the term <term>energy storage technology</term> has the meaning given such term in section 48(c)(6) (except that subparagraph (D) of such section shall not apply).</text></paragraph></subsection><subsection id="H7BBF485F0BDC41B6BCE0B0F87AD60177" commented="no"><enum>(d)</enum><header>Special rules</header><paragraph id="HBB5D4184A5504BCF8051C8E82CAB5BBA" commented="no"><enum>(1)</enum><header>Certain progress expenditure rules made applicable</header><text>Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of subsection (a).</text></paragraph><paragraph id="H195EECCD664F472DBAA45D0BFE2B8EBB" commented="no"><enum>(2)</enum><header>Special rule for property financed by subsidized energy financing or private activity bonds</header><text>Rules similar to the rules of section 45(b)(3) shall apply.</text></paragraph><paragraph commented="no" id="HA24922E5D5834200B3E1D22E93896679"><enum>(3)</enum><header>Prevailing wage requirements</header><text display-inline="yes-display-inline">Rules similar to the rules of section 48(a)(10) shall apply.</text></paragraph><paragraph id="H4B4591B584BE48DEB0C93E39531DBE88" commented="no"><enum>(4)</enum><header>Apprenticeship requirements</header><text>Rules similar to the rules of section 45(b)(8) shall apply.</text></paragraph><paragraph id="HAB4E28F0FBBA4050B8B891BD9EB4F18A" commented="no"><enum>(5)</enum><header>Domestic content requirement for elective payment</header><text>In the case of a taxpayer making an election under section 6417 with respect to a credit under this section, rules similar to the rules of section 45Y(g)(12) shall apply. </text></paragraph></subsection><subsection id="H3499EFC2D24D46998511914F1B3C1655" commented="no"><enum>(e)</enum><header>Credit phase-Out</header><paragraph id="H403C656ABC724DE5BE606808444EC0D6" commented="no"><enum>(1)</enum><header>In general</header><text>The amount of the clean electricity investment credit under subsection (a) for any qualified investment with respect to any qualified facility or energy storage technology the construction of which begins during a calendar year described in paragraph (2) shall be equal to the product of—</text><subparagraph id="HBE120BD5097A419D9C29FF7445E89DA9" commented="no"><enum>(A)</enum><text>the amount of the credit determined under subsection (a) without regard to this subsection, multiplied by</text></subparagraph><subparagraph id="H6F0D085D8EA44C7C922D473B265D25E2" commented="no"><enum>(B)</enum><text>the phase-out percentage under paragraph (2).</text></subparagraph></paragraph><paragraph id="H5A296D170512450CBEF5B8281435DCAF" commented="no"><enum>(2)</enum><header>Phase-out percentage</header><text>The phase-out percentage under this paragraph is equal to—</text><subparagraph id="H61994F45DE0E46B8B2DA7AF1965FB361" commented="no"><enum>(A)</enum><text>for any qualified investment with respect to any qualified facility or energy storage technology the construction of which begins during the first calendar year following the applicable year, 100 percent,</text></subparagraph><subparagraph id="H73F21A3BC5094432B96B6AEA1DD29C81" commented="no"><enum>(B)</enum><text>for any qualified investment with respect to any qualified facility or energy storage technology the construction of which begins during the second calendar year following the applicable year, 75 percent,</text></subparagraph><subparagraph id="H8C0E95A6E060434C855E1661E42E9CA9" commented="no"><enum>(C)</enum><text>for any qualified investment with respect to any qualified facility or energy storage technology the construction of which begins during the third calendar year following the applicable year, 50 percent, and</text></subparagraph><subparagraph commented="no" id="HB016A09DCC33481B82F667F3941C86E8"><enum>(D)</enum><text>for any qualified investment with respect to any qualified facility or energy storage technology the construction of which begins during any calendar year subsequent to the calendar year described in subparagraph (C), 0 percent.</text></subparagraph></paragraph><paragraph commented="no" id="HF9E53813F6114D118E17812A5D95895C"><enum>(3)</enum><header>Applicable year</header><text>For purposes of this subsection, the term <term>applicable year</term> has the same meaning given such term in section 45Y(d)(3).</text></paragraph></subsection><subsection id="H1E75F892E1FA4D5C97FA17A8EB093E3A" commented="no"><enum>(f)</enum><header>Greenhouse gas</header><text>In this section, the term <term>greenhouse gas</term> has the same meaning given such term under section 45Y(e)(2).</text></subsection><subsection commented="no" id="H8DFF7D91A2B34639874DCC8C22403F55"><enum>(g)</enum><header>Recapture of credit</header><text>For purposes of section 50, if the Secretary determines that the greenhouse gas emissions rate for a qualified facility is greater than 10 grams of CO<subscript>2</subscript>e per KWh, any property for which a credit was allowed under this section with respect to such facility shall cease to be investment credit property in the taxable year in which the determination is made.</text></subsection><subsection id="idD33FC964EDC14C18AC844A7DA4BEFCB1"><enum>(h)</enum><header>Special rules for certain facilities placed in service in connection with low-income communities</header><paragraph id="id3691D48BB47E42FD94154F39037C4731"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any applicable facility with respect to which the Secretary makes an allocation of environmental justice capacity limitation under paragraph (4)—</text><subparagraph id="id4D1BACCBF218430886220E33B7F51D74"><enum>(A)</enum><text>the applicable percentage otherwise determined under subsection (a)(2) with respect to any eligible property which is part of such facility shall be increased by—</text><clause id="id312D6605DF4A4C379FB37543B1EB2990"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of a facility described in subclause (I) of paragraph (2)(A)(iii) and not described in subclause (II) of such paragraph, 10 percentage points, and </text></clause><clause id="idA69F4542BCFA426688DCFD47C77087FF"><enum>(ii)</enum><text display-inline="yes-display-inline">in the case of a facility described in subclause (II) of paragraph (2)(A)(iii), 20 percentage points, and</text></clause></subparagraph><subparagraph id="idE716EB36CED84400A899579DB7A4F928"><enum>(B)</enum><text>the increase in the credit determined under subsection (a) by reason of this subsection for any taxable year with respect to all property which is part of such facility shall not exceed the amount which bears the same ratio to the amount of such increase (determined without regard to this subparagraph) as—</text><clause id="id90806CF8661A40DDB4B2396906A2854F"><enum>(i)</enum><text>the environmental justice capacity limitation allocated to such facility, bears to</text></clause><clause id="id11A04B097DE1450ABAE0C9C42414FB6D"><enum>(ii)</enum><text>the total megawatt nameplate capacity of such facility, as measured in direct current.</text></clause></subparagraph></paragraph><paragraph id="idC137F5C9C0334C5896ABCB9009E551D5"><enum>(2)</enum><header>Applicable facility</header><text>For purposes of this subsection—</text><subparagraph id="id6D92A8573F38402D987592FF26A5C0B5"><enum>(A)</enum><header>In general</header><text>The term <quote>applicable facility</quote> means any qualified facility—</text><clause id="id8434FE6253534DB4B42826023B9B4904"><enum>(i)</enum><text display-inline="yes-display-inline">which is not described in section 45Y(b)(2)(B), </text></clause><clause id="id7A98DDC329A1447794239A04E2DA7AE1"><enum>(ii)</enum><text>which has a maximum net output of less than 5 megawatts (as measured in alternating current), and</text></clause><clause id="id57A804746CBC49FD9F6A8A903C874B45"><enum>(iii)</enum><text>which—</text><subclause id="idD085536F290440F29450FF52B63B6728"><enum>(I)</enum><text>is located in a low-income community (as defined in section 45D(e)) or on Indian land (as defined in section 2601(2) of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/25/3501">25 U.S.C. 3501(2)</external-xref>)), or</text></subclause><subclause id="id30A8E1ED03484384B27714DFB90913F0"><enum>(II)</enum><text>is part of a qualified low-income residential building project or a qualified low-income economic benefit project.</text></subclause></clause></subparagraph><subparagraph id="id9AAAB1C9465843A6A7CC5D68A6C7CFAB"><enum>(B)</enum><header>Qualified low-income residential building project</header><text>A facility shall be treated as part of a qualified low-income residential building project if—</text><clause id="idB24BF32BF8594D068B887790F6EC7580"><enum>(i)</enum><text display-inline="yes-display-inline">such facility is installed on a residential rental building which participates in a covered housing program (as defined in section 41411(a) of the Violence Against Women Act of 1994 (<external-xref legal-doc="usc" parsable-cite="usc/34/12491">34 U.S.C. 12491(a)(3)</external-xref>), a housing assistance program administered by the Department of Agriculture under title V of the Housing Act of 1949, a housing program administered by a tribally designated housing entity (as defined in section 4(22) of the Native American Housing Assistance and Self-Determination Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/25/4103">25 U.S.C. 4103(22)</external-xref>)) or such other affordable housing programs as the Secretary may provide, and</text></clause><clause id="id28AAA9CFAA294205B2E0BAB64BB9930C"><enum>(ii)</enum><text>the financial benefits of the electricity produced by such facility are allocated equitably among the occupants of the dwelling units of such building.</text></clause></subparagraph><subparagraph id="id85D76429BB6B4AFDAF1F47DD9CFA5069"><enum>(C)</enum><header>Qualified low-income economic benefit project</header><text display-inline="yes-display-inline">A facility shall be treated as part of a qualified low-income economic benefit project if at least 50 percent of the financial benefits of the electricity produced by such facility are provided to households with income of—</text><clause id="idBE2D5210ADBC4435A9A9F7A3FE42D58B"><enum>(i)</enum><text>less than 200 percent of the poverty line (as defined in section 36B(d)(3)(A)) applicable to a family of the size involved, or</text></clause><clause id="id5C1BBD10639145CF852934B19371A65B"><enum>(ii)</enum><text>less than 80 percent of area median gross income (as determined under section 142(d)(2)(B)). </text></clause></subparagraph><subparagraph id="id9A5C278B49AE40D8A70B1F5B2E4942FE"><enum>(D)</enum><header>Financial benefit</header><text>For purposes of subparagraphs (B) and (C), electricity acquired at a below-market rate shall not fail to be taken into account as a financial benefit.</text></subparagraph></paragraph><paragraph id="idF5A2F63918804FBCB19410E173CED893" commented="no"><enum>(3)</enum><header>Eligible property</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>eligible property</quote> means a qualified investment with respect to any applicable facility.</text></paragraph><paragraph id="idE3BCD089D13D4F90A0402FEB85DE2C14" commented="no"><enum>(4)</enum><header>Allocations</header><subparagraph id="idA86183F6A94745B8A2D8B56A4372B6C5" commented="no" display-inline="no-display-inline"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than January 1, 2025, the Secretary shall establish a program to allocate amounts of environmental justice capacity limitation to applicable facilities. In establishing such program and to carry out the purposes of this subsection, the Secretary shall provide procedures to allow for an efficient allocation process, including, when determined appropriate, consideration of multiple projects in a single application if such projects will be placed in service by a single taxpayer. </text></subparagraph><subparagraph id="id012A04FCAB884DC280D6E1076FB83D9C" commented="no"><enum>(B)</enum><header>Limitation</header><text display-inline="yes-display-inline">The amount of environmental justice capacity limitation allocated by the Secretary under subparagraph (A) during any calendar year shall not exceed the annual capacity limitation with respect to such year. </text></subparagraph><subparagraph id="id88A0D132AC444085836E6E00485F3F40" commented="no"><enum>(C)</enum><header>Annual capacity limitation</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term <term>annual capacity limitation</term> means 1.8 gigawatts of direct current capacity for each calendar year during the period beginning on January 1, 2025, and ending on December 31 of the applicable year (as defined in section 45Y(d)(3)), and zero thereafter.</text></subparagraph><subparagraph id="id62F5521812AD4A1991A663E46117AFB6" display-inline="no-display-inline"><enum>(D)</enum><header>Carryover of unused limitation</header><clause id="id9EF6DACE739846F18EB41F3D6503519E"><enum>(i)</enum><header>In general</header><text>If the annual capacity limitation for any calendar year exceeds the aggregate amount allocated for such year under this paragraph, such limitation for the succeeding calendar year shall be increased by the amount of such excess. No amount may be carried under the preceding sentence to any calendar year after the third calendar year following the applicable year (as defined in section 45Y(d)(3)).</text></clause><clause id="id4780E5186504476FA5EBA298A45B070A"><enum>(ii)</enum><header>Carryover from section 48 for calendar year 2025</header><text display-inline="yes-display-inline">If the annual capacity limitation for calendar year 2024 under section 48(e)(4)(D) exceeds the aggregate amount allocated for such year under such section, such excess amount may be carried over and applied to the annual capacity limitation under this subsection for calendar year 2025. The annual capacity limitation for calendar year 2025 shall be increased by the amount of such excess.</text></clause></subparagraph><subparagraph id="idC8ED6B8180854824AD803503B61D5491"><enum>(E)</enum><header>Placed in service deadline</header><clause id="id9DB4E34B042F4FE3A80B1DE521B19E1D"><enum>(i)</enum><header>In general</header><text>Paragraph (1) shall not apply with respect to any property which is placed in service after the date that is 4 years after the date of the allocation with respect to the facility of which such property is a part.</text></clause><clause id="id657FA7AC3E82418688C5AFB30D6D3D4A"><enum>(ii)</enum><header>Application of carryover</header><text display-inline="yes-display-inline">Any amount of environmental justice capacity limitation which expires under clause (i) during any calendar year shall be taken into account as an excess described in subparagraph (D)(i) (or as an increase in such excess) for such calendar year, subject to the limitation imposed by the last sentence of such subparagraph.</text></clause></subparagraph></paragraph><paragraph id="id578EDFAED21943988133E8E3BA0BE06F"><enum>(5)</enum><header>Recapture</header><text display-inline="yes-display-inline">The Secretary shall, by regulations or other guidance, provide for recapturing the benefit of any increase in the credit allowed under subsection (a) by reason of this subsection with respect to any property which ceases to be property eligible for such increase (but which does not cease to be investment credit property within the meaning of section 50(a)). The period and percentage of such recapture shall be determined under rules similar to the rules of section 50(a). To the extent provided by the Secretary, such recapture may not apply with respect to any property if, within 12 months after the date the taxpayer becomes aware (or reasonably should have become aware) of such property ceasing to be property eligible for such increase, the eligibility of such property for such increase is restored. The preceding sentence shall not apply more than once with respect to any facility. </text></paragraph></subsection><subsection id="HB694F4C5953E4C38B1B2493278CF105D" commented="no"><enum>(i)</enum><header>Guidance</header><text>Not later than January 1, 2025, the Secretary shall issue guidance regarding implementation of this section.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H6E4A259E4D5F4F3AB3F2022DFF6CEB8E" commented="no"><enum>(b)</enum><header>Conforming amendments</header><paragraph id="HC2B75A803CA74F70B214CDE244EDB66D" commented="no"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/46">Section 46</external-xref>, as amended by section 107(d) of the CHIPS Act of 2022, is amended—</text><subparagraph commented="no" id="idE191C4FF247F4537B112D0BA91CBED9B"><enum>(A)</enum><text>in paragraph (5), by striking <quote>and</quote> at the end,</text></subparagraph><subparagraph commented="no" id="id4C657AB62A69419BB31EE9AABA802756"><enum>(B)</enum><text>in paragraph (6), by striking the period at the end and inserting <quote>, and</quote>, and</text></subparagraph><subparagraph commented="no" id="id392B6CC160D948319EF84776AE828B35"><enum>(C)</enum><text>by adding at the end the following:</text><quoted-block display-inline="no-display-inline" id="H0E0433D047D54BBE8173DE947CF35609" style="OLC" changed="added" reported-display-style="italic"><paragraph id="HA658E89C7BB44BAC83A71877A0DEB722" commented="no"><enum>(7)</enum><text>the clean electricity investment credit.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="H326BBE220DDD48C1ACB1E0BE1C382C44" commented="no"><enum>(2)</enum><text>Section 49(a)(1)(C), as amended by section 107(d) of the CHIPS Act of 2022, is amended—</text><subparagraph id="H552DC9BA95144245849B629F60AC6D09" commented="no"><enum>(A)</enum><text>by striking <quote>and</quote> at the end of clause (v),</text></subparagraph><subparagraph id="H66AE6C9A866741709AF30399289E84F8" commented="no"><enum>(B)</enum><text>by striking the period at the end of clause (vi) and inserting a comma, and</text></subparagraph><subparagraph id="HD9DFDB875307462CA6BE6DD4ADB97C72" commented="no"><enum>(C)</enum><text>by adding at the end the following new clauses:</text><quoted-block display-inline="no-display-inline" id="H7A603A4B69CA4766A8C436DF0FBD7B2B" style="OLC" changed="added" reported-display-style="italic"><clause id="HF92222CF43C94DA7B8F5F272AE239E64" commented="no"><enum>(vii)</enum><text>the basis of any qualified property which is part of a qualified facility under section 48E, and</text></clause><clause id="H8835EDB669834A898A322911261E05FB" commented="no"><enum>(viii)</enum><text>the basis of any energy storage technology under section 48E.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="HD483A0A2DD144044950A7AB41780283C" commented="no"><enum>(3)</enum><text>Section 50(a)(2)(E), as amended by section 107(d) of the CHIPS Act of 2022, is amended by striking <quote>or 48D(b)(5)</quote> and inserting <quote>48D(b)(5), or 48E(e)</quote>.</text></paragraph><paragraph id="HB562F292DBC34AD5A98CA5482C176A7C" commented="no"><enum>(4)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/50">Section 50(c)(3)</external-xref> is amended by inserting <quote>or clean electricity investment credit</quote> after <quote>In the case of any energy credit</quote>.</text></paragraph><paragraph id="HC0EFA0C779AC423BBE5243C9438F7243" commented="no"><enum>(5)</enum><text>The table of sections for subpart E of part IV of subchapter A of chapter 1, as amended by section 107(d) of the CHIPS Act of 2022, is amended by inserting after the item relating to section 48D the following new item:</text><quoted-block display-inline="no-display-inline" id="HDA23346FD9C14D5FB8FFB61FB5DC29EE" style="OLC" changed="added" reported-display-style="italic"><toc changed="added" reported-display-style="italic"><toc-entry bold="off" level="section">48E. Clean electricity investment credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H04656395DE614EBE980CB973342CBE56" commented="no"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after December 31, 2024.</text></subsection></section><section commented="no" id="HC0FECA73F4BA41B68BA16C47D450187B"><enum>13703.</enum><header>Cost recovery for qualified facilities, qualified property, and energy storage technology</header><subsection commented="no" id="H2E0C1FE726B5438CB7BF1D5682CE5C9B"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/168">Section 168(e)(3)(B)</external-xref> is amended—</text><paragraph commented="no" id="HE68FE5B12EF64873A543D26E9A304967"><enum>(1)</enum><text>in clause (vi)(III), by striking <quote>and</quote> at the end,</text></paragraph><paragraph commented="no" id="H0AEBFBA65C5545B383EE282F0ADBA6FC"><enum>(2)</enum><text>in clause (vii), by striking the period at the end and inserting <quote>, and</quote>, and</text></paragraph><paragraph commented="no" id="H783BFED138B4409194DB7D5E6366D533"><enum>(3)</enum><text>by inserting after clause (vii) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HC145382B39F54BAFA04E9E705A8DB7CC" changed="added" reported-display-style="italic"><clause commented="no" id="H8C8F770D690143F1927DF2FF1C449A57"><enum>(viii)</enum><text>any qualified facility (as defined in section 45Y(b)(1)(A)), any qualified property (as defined in subsection (b)(2) of section 48E) which is a qualified investment (as defined in subsection (b)(1) of such section), or any energy storage technology (as defined in subsection (c)(2) of such section).</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection commented="no" id="H13C87FE511674B528F8EFCBE0029E970"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to facilities and property placed in service after December 31, 2024.</text></subsection></section><section id="HB2C548BA403445ECA84F9F61C7023CA1" commented="no"><enum>13704.</enum><header>Clean fuel production credit</header><subsection id="H5E05AC1614ED4323BBBC5CEA3E89D996" commented="no"><enum>(a)</enum><header>In general</header><text>Subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by adding at the end the following new section:</text><quoted-block display-inline="no-display-inline" id="H2C284E2690514706807D03820AD1AE51" style="OLC" changed="added" reported-display-style="italic"><section id="H656B060B86EC473C85BCDCC593AE8CCC" commented="no"><enum>45Z.<?LEXA-Enum 45BB.?></enum><header>Clean fuel production credit</header><subsection id="HAEB33710A8C44DA58519026C4878B8DC" commented="no"><enum>(a)</enum><header>Amount of credit</header><paragraph id="HF66AF75DE0BD4D6EB59C1CF53123F8C2" commented="no"><enum>(1)</enum><header>In general</header><text>For purposes of section 38, the clean fuel production credit for any taxable year is an amount equal to the product of—</text><subparagraph id="HB7EBF49BFA4C4640B1CFA8C2A295124E" commented="no"><enum>(A)</enum><text>the applicable amount per gallon (or gallon equivalent) with respect to any transportation fuel which is—</text><clause id="HF9963D2F889B48A1BA65D9F8E212D6AD" commented="no"><enum>(i)</enum><text>produced by the taxpayer at a qualified facility, and</text></clause><clause id="HE88EAA1B47334B1DB170084F5008E90F" commented="no"><enum>(ii)</enum><text>sold by the taxpayer in a manner described in paragraph (4) during the taxable year, and</text></clause></subparagraph><subparagraph id="HDE408395791F437AAD39E49CF8E6B239" commented="no"><enum>(B)</enum><text>the emissions factor for such fuel (as determined under subsection (b)).</text></subparagraph></paragraph><paragraph id="H9E24F96FB1224F378101507B29C876EE" commented="no"><enum>(2)</enum><header>Applicable amount</header><subparagraph id="H4218D54BFCBA4D168935B4682CF2AAD7" commented="no"><enum>(A)</enum><header>Base amount</header><text>In the case of any transportation fuel produced at a qualified facility which does not satisfy the requirements described in subparagraph (B), the applicable amount shall be 20 cents.</text></subparagraph><subparagraph id="H6461F47333294AD5BDB8A8FBB23462B8" commented="no"><enum>(B)</enum><header>Alternative amount</header><text display-inline="yes-display-inline">In the case of any transportation fuel produced at a qualified facility which satisfies the requirements under paragraphs (6) and (7) of subsection (f), the applicable amount shall be $1.00. </text></subparagraph></paragraph><paragraph id="H72F4225AF7A84B9792B1332D744A952F" commented="no"><enum>(3)</enum><header>Special rate for sustainable aviation fuel</header><subparagraph id="H6891F6E71CD74E5DA926A45A64822C51" commented="no"><enum>(A)</enum><header>In general</header><text>In the case of a transportation fuel which is sustainable aviation fuel, paragraph (2) shall be applied—</text><clause commented="no" id="HBFAB478C689A4D658AD14681A0E74248"><enum>(i)</enum><text>in the case of fuel produced at a qualified facility described in paragraph (2)(A), by substituting <quote>35 cents</quote> for <quote>20 cents</quote>, and</text></clause><clause commented="no" id="HC01A8284771F4315AD0679890B75FAA6"><enum>(ii)</enum><text>in the case of fuel produced at a qualified facility described in paragraph (2)(B), by substituting <quote>$1.75</quote> for <quote>$1.00</quote>.</text></clause></subparagraph><subparagraph id="H91D133FFF490469BAEDCA029A4C10D59" commented="no"><enum>(B)</enum><header>Sustainable aviation fuel</header><text display-inline="yes-display-inline">For purposes of this subparagraph (A), the term <term>sustainable aviation fuel</term> means liquid fuel, the portion of which is not kerosene, which is sold for use in an aircraft and which—</text><clause id="H27CA8395BE624E19A8A5E2417D6F3E9E" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">meets the requirements of—</text><subclause id="H6A46F36AF7E5425DA60396DD10DCDF28" commented="no"><enum>(I)</enum><text>ASTM International Standard D7566, or</text></subclause><subclause id="HD6C843D4F9B94533984FA8CBC3E8723C" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">the Fischer Tropsch provisions of ASTM International Standard D1655, Annex A1, and</text></subclause></clause><clause id="H9079D4A9CF884C019116499721F2FFA5" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">is not derived from palm fatty acid distillates or petroleum.</text></clause></subparagraph></paragraph><paragraph id="HD29AEECF454C4D5F94F62CFB71DAEFC3" commented="no"><enum>(4)</enum><header>Sale</header><text>For purposes of paragraph (1), the transportation fuel is sold in a manner described in this paragraph if such fuel is sold by the taxpayer to an unrelated person—</text><subparagraph id="H89633902E830405197E1169329F1F182" commented="no"><enum>(A)</enum><text>for use by such person in the production of a fuel mixture,</text></subparagraph><subparagraph id="H3FFAD5D16BE2429BBD8150A42698246F" commented="no"><enum>(B)</enum><text>for use by such person in a trade or business, or</text></subparagraph><subparagraph id="H668DB2949647435094B2E58A02CF23C7" commented="no"><enum>(C)</enum><text>who sells such fuel at retail to another person and places such fuel in the fuel tank of such other person.</text></subparagraph></paragraph><paragraph id="H181DF5E863CC4177AD62DF9807AB6A66" commented="no"><enum>(5)</enum><header>Rounding</header><text>If any amount determined under paragraph (1) is not a multiple of 1 cent, such amount shall be rounded to the nearest cent.</text></paragraph></subsection><subsection id="H560D3D9F652D4915A5A98D4FF37CA70B" commented="no"><enum>(b)</enum><header>Emissions factors</header><paragraph id="HD4D6E9FD4D6341409F1A7F91E523436A" commented="no"><enum>(1)</enum><header>Emissions factor</header><subparagraph id="H51E9FCB8972E45E2941C25EECC142E75" commented="no"><enum>(A)</enum><header>Calculation</header><clause id="H751F1B21006A4ECAB84B6F68AAF26611" commented="no"><enum>(i)</enum><header>In general</header><text>The emissions factor of a transportation fuel shall be an amount equal to the quotient of—</text><subclause id="H80A0BD265305438B93FB30C02717F5B4" commented="no"><enum>(I)</enum><text>an amount equal to—</text><item id="H4E9B9C0157684BC09974802F79005A84" commented="no"><enum>(aa)</enum><text>50 kilograms of CO<subscript>2</subscript>e per mmBTU, minus</text></item><item id="H65CFEF4FDC2C446FABF926C4583C59D6" commented="no"><enum>(bb)</enum><text>the emissions rate for such fuel, divided by</text></item></subclause><subclause id="H257CEBC745F545C0B348B9F0C04D3838" commented="no"><enum>(II)</enum><text>50 kilograms of CO<subscript>2</subscript>e per mmBTU.</text></subclause></clause></subparagraph><subparagraph id="H3767C34A6C214991BE9B182C61D2BC7D" commented="no"><enum>(B)</enum><header>Establishment of emissions rate</header><clause id="H14AF8BFEE67A48A19112744C28C99563" commented="no"><enum>(i)</enum><header>In general</header><text>Subject to clauses (ii) and (iii), the Secretary shall annually publish a table which sets forth the emissions rate for similar types and categories of transportation fuels based on the amount of lifecycle greenhouse gas emissions (as described in section 211(o)(1)(H) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(1)(H)</external-xref>), as in effect on the date of the enactment of this section) for such fuels, expressed as kilograms of CO<subscript>2</subscript>e per mmBTU, which a taxpayer shall use for purposes of this section.</text></clause><clause id="H7AD4FE2F125640878E432C3A5DC6C40D" commented="no"><enum>(ii)</enum><header>Non-aviation fuel</header><text>In the case of any transportation fuel which is not a sustainable aviation fuel, the lifecycle greenhouse gas emissions of such fuel shall be based on the most recent determinations under the Greenhouse gases, Regulated Emissions, and Energy use in Transportation model developed by Argonne National Laboratory, or a successor model (as determined by the Secretary).</text></clause><clause id="HC4E591A0507E469FB9765DFC95A7216D" commented="no"><enum>(iii)</enum><header>Aviation fuel</header><text>In the case of any transportation fuel which is a sustainable aviation fuel, the lifecycle greenhouse gas emissions of such fuel shall be determined in accordance with—</text><subclause id="idF4C2DB779F4648D089505480C4393CF0"><enum>(I)</enum><text>the most recent Carbon Offsetting and Reduction Scheme for International Aviation which has been adopted by the International Civil Aviation Organization with the agreement of the United States, or</text></subclause><subclause id="idB48674C68AF94BDC99AD0920AB128428"><enum>(II)</enum><text>any similar methodology which satisfies the criteria under section 211(o)(1)(H) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(1)(H)</external-xref>), as in effect on the date of enactment of this section.</text></subclause></clause></subparagraph><subparagraph id="H805C84E9CE8242B7A41DA81E09E4ADA2" commented="no"><enum>(C)</enum><header>Rounding of emissions rate</header><clause commented="no" id="id59C6CA8E63F24DB4A5ABD130C25D1CE9"><enum>(i)</enum><header>In general</header><text>Subject to clause (ii), the Secretary may round the emissions rates under subparagraph (B) to the nearest multiple of 5 kilograms of CO<subscript>2</subscript>e per mmBTU.</text></clause><clause commented="no" id="id72781648DF35406485F4028A6AF031A0"><enum>(ii)</enum><header>Exception</header><text>In the case of an emissions rate that is between 2.5 kilograms of CO<subscript>2</subscript>e per mmBTU and -2.5 kilograms of CO<subscript>2</subscript>e per mmBTU, the Secretary may round such rate to zero.</text></clause></subparagraph><subparagraph id="HEEB6857C7B0745B793B4EA1AF5F029CF" commented="no"><enum>(D)</enum><header>Provisional emissions rate</header><text>In the case of any transportation fuel for which an emissions rate has not been established under subparagraph (B), a taxpayer producing such fuel may file a petition with the Secretary for determination of the emissions rate with respect to such fuel.</text></subparagraph></paragraph><paragraph id="H38CE9C165A7644C4A6FAA12E5F6301C3" commented="no"><enum>(2)</enum><header>Rounding</header><text>If any amount determined under paragraph (1)(A) is not a multiple of 0.1, such amount shall be rounded to the nearest multiple of 0.1.</text></paragraph></subsection><subsection id="HD5F34BB2D3F741209CFAB0795698E978" commented="no"><enum>(c)</enum><header>Inflation adjustment</header><paragraph id="HF4220C0E8BD7401EADA07DD8951E8B55" commented="no"><enum>(1)</enum><header>In general</header><text>In the case of calendar years beginning after 2024, the 20 cent amount in subsection (a)(2)(A), the $1.00 amount in subsection (a)(2)(B), the 35 cent amount in subsection (a)(3)(A)(i), and the $1.75 amount in subsection (a)(3)(A)(ii) shall each be adjusted by multiplying such amount by the inflation adjustment factor for the calendar year in which the sale of the transportation fuel occurs. If any amount as increased under the preceding sentence is not a multiple of 1 cent, such amount shall be rounded to the nearest multiple of 1 cent.</text></paragraph><paragraph id="H4C1D0BCC8D77488CA4EE06D337929D76" commented="no"><enum>(2)</enum><header>Inflation adjustment factor</header><text>For purposes of paragraph (1), the inflation adjustment factor shall be the inflation adjustment factor determined and published by the Secretary pursuant to section 45Y(c), determined by substituting <quote>calendar year 2022</quote> for <quote>calendar year 1992</quote> in paragraph (3) thereof.</text></paragraph></subsection><subsection id="HDE8CF0DA10614FD7BC2E6EA0FA0F4686" commented="no"><enum>(d)</enum><header>Definitions</header><text>In this section:</text><paragraph id="HDAAEFB2F94F6422690320FB70E4BF795" commented="no"><enum>(1)</enum><header><enum-in-header>mm</enum-in-header>BTU</header><text>The term <term>mmBTU</term> means 1,000,000 British thermal units.</text></paragraph><paragraph id="H738E56E912A9445F967972DDAE55CE07" commented="no"><enum>(2)</enum><header>CO<subscript>2</subscript><enum-in-header>e</enum-in-header></header><text>The term <term>CO<subscript>2</subscript>e</term> means, with respect to any greenhouse gas, the equivalent carbon dioxide (as determined based on relative global warming potential).</text></paragraph><paragraph id="HF4A09AD1E6364B0A94B5ED91BED8725E" commented="no"><enum>(3)</enum><header>Greenhouse gas</header><text>The term <term>greenhouse gas</term> has the same meaning given that term under section 211(o)(1)(G) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(1)(G)</external-xref>), as in effect on the date of the enactment of this section.</text></paragraph><paragraph id="H4B3B2E5157F540E5BE20924E1BDDAB77" commented="no"><enum>(4)</enum><header>Qualified facility</header><text>The term <term>qualified facility</term>—</text><subparagraph id="H2458DDCD199F408BB9596343B62E8072"><enum>(A)</enum><text>means a facility used for the production of transportation fuels, and</text></subparagraph><subparagraph id="H3344C50DD4AF49B1A5C49E0C1CDF6233"><enum>(B)</enum><text>does not include any facility for which one of the following credits is allowed under section 38 for the taxable year: </text><clause id="H9D9AFBEC74AC4361B82025FC91E01DDA"><enum>(i)</enum><text>The credit for production of clean hydrogen under section 45V.</text></clause><clause id="H6ED57C8ECC974B83B900EB2C98712923"><enum>(ii)</enum><text>The credit determined under section 46 to the extent that such credit is attributable to the energy credit determined under section 48 with respect to any specified clean hydrogen production facility for which an election is made under subsection (a)(15) of such section.</text></clause><clause id="HA1A4DBBFA9F042F685F4ECBE6F078D17"><enum>(iii)</enum><text>The credit for carbon oxide sequestration under section 45Q. </text></clause></subparagraph></paragraph><paragraph commented="no" id="H7F29F7FB4BC64024B7A4B61CC9A1EB36"><enum>(5)</enum><header>Transportation fuel</header><subparagraph commented="no" id="id301728A090C64B0D99E772B51F68955C"><enum>(A)</enum><header>In general</header><text>The term <term>transportation fuel</term> means a fuel which—</text><clause commented="no" id="H57A0A9EA250D477BAD2CD10A642DE48F"><enum>(i)</enum><text>is suitable for use as a fuel in a highway vehicle or aircraft, </text></clause><clause commented="no" id="H65D63D7B76894FB9A7711A9FBCC5D9DF"><enum>(ii)</enum><text>has an emissions rate which is not greater than 50 kilograms of CO<subscript>2</subscript>e per mmBTU, and</text></clause><clause id="H337DE6B9225947D0B1D8412E4B32D582"><enum>(iii)</enum><text display-inline="yes-display-inline">is not derived from coprocessing an applicable material (or materials derived from an applicable material) with a feedstock which is not biomass.</text></clause></subparagraph><subparagraph commented="no" id="idAA2FEF830E8B49D4B87B753EDF2C3D2F"><enum>(B)</enum><header>Definitions</header><text>In this paragraph—</text><clause commented="no" id="id6D6C445CFD4C45A499F80B45A270F469"><enum>(i)</enum><header>Applicable material</header><text>The term <term>applicable material</term> means—</text><subclause commented="no" id="idD406B13F5EED4B0583BDDE2AD64FEF24"><enum>(I)</enum><text>monoglycerides, diglycerides, and triglycerides,</text></subclause><subclause commented="no" id="idA383B6C954AD427B8B4560F137ED9092"><enum>(II)</enum><text>free fatty acids, and</text></subclause><subclause commented="no" id="id2886E6AE49224B538D793C8AE306E127"><enum>(III)</enum><text>fatty acid esters.</text></subclause></clause><clause commented="no" id="id639C75D7B2374DB9A6D3F8AF6E44EED4"><enum>(ii)</enum><header>Biomass</header><text>The term <term>biomass</term> has the same meaning given such term in section 45K(c)(3).</text></clause></subparagraph></paragraph></subsection><subsection id="H438E327956E84444A02B240C2D55EFF7" commented="no"><enum>(e)</enum><header>Guidance</header><text>Not later than January 1, 2025, the Secretary shall issue guidance regarding implementation of this section, including calculation of emissions factors for transportation fuel, the table described in subsection (b)(1)(B)(i), and the determination of clean fuel production credits under this section.</text></subsection><subsection id="H67FC5B8DD256427697047DEB2F86E81B" commented="no"><enum>(f)</enum><header>Special rules</header><paragraph id="H6CDD73022F684FF29D1E1DD90F5DD175" commented="no"><enum>(1)</enum><header>Only registered production in the United States taken into account</header><subparagraph id="HD784BA85106C4C3AA2C33DB0A8B7FD3E" commented="no"><enum>(A)</enum><header>In general</header><text>No clean fuel production credit shall be determined under subsection (a) with respect to any transportation fuel unless—</text><clause commented="no" id="HB0E1FE1465464E2F9F2066FE4E6CDD1A"><enum>(i)</enum><text>the taxpayer—</text><subclause commented="no" id="id746FC720F21642CB99321E5D5F65943C"><enum>(I)</enum><text>is registered as a producer of clean fuel under section 4101 at the time of production, and</text></subclause><subclause commented="no" id="id2FF4B82A28534E5983899223AB575750"><enum>(II)</enum><text display-inline="yes-display-inline">in the case of any transportation fuel which is a sustainable aviation fuel, provides—</text><item commented="no" id="id6C653055417B4E15AA250716D12129BE"><enum>(aa)</enum><text display-inline="yes-display-inline">certification (in such form and manner as the Secretary shall prescribe) from an unrelated party demonstrating compliance with—</text><subitem commented="no" id="id105A322721B64FA09C7CC3DDE4D69AE9"><enum>(AA)</enum><text display-inline="yes-display-inline">any general requirements, supply chain traceability requirements, and information transmission requirements established under the Carbon Offsetting and Reduction Scheme for International Aviation described in subclause (I) of subsection (b)(1)(B)(iii), or </text></subitem><subitem commented="no" id="id18CB3B2730A545C8B1549DD16C2A5C61"><enum>(BB)</enum><text display-inline="yes-display-inline">in the case of any methodology described in subclause (II) of such subsection, requirements similar to the requirements described in subitem (AA), and</text></subitem></item><item commented="no" id="id5E5F0D5E71B643D1A747F3C8826EACC0"><enum>(bb)</enum><text display-inline="yes-display-inline">such other information with respect to such fuel as the Secretary may require for purposes of carrying out this section, and</text></item></subclause></clause><clause id="HC2D1BE065C0F4B7BA43E5B125DC3961C" commented="no"><enum>(ii)</enum><text>such fuel is produced in the United States.</text></clause></subparagraph><subparagraph id="H41EADFB6BC114366BA2F73691DD4A37B" commented="no"><enum>(B)</enum><header>United States</header><text>For purposes of this paragraph, the term <quote>United States</quote> includes any possession of the United States.</text></subparagraph></paragraph><paragraph id="H315E160B51F0481D9374E33FBFF60887" commented="no"><enum>(2)</enum><header>Production attributable to the taxpayer</header><text>In the case of a facility in which more than 1 person has an ownership interest, except to the extent provided in regulations prescribed by the Secretary, production from the facility shall be allocated among such persons in proportion to their respective ownership interests in the gross sales from such facility.</text></paragraph><paragraph id="H7CFF9ADBBA0A4480B56B8F2867CE315F" commented="no"><enum>(3)</enum><header>Related persons</header><text>Persons shall be treated as related to each other if such persons would be treated as a single employer under the regulations prescribed under section 52(b). In the case of a corporation which is a member of an affiliated group of corporations filing a consolidated return, such corporation shall be treated as selling fuel to an unrelated person if such fuel is sold to such a person by another member of such group.</text></paragraph><paragraph id="H1CB8E8F472D04741A9989BD67FBE9294" commented="no"><enum>(4)</enum><header>Pass-thru in the case of estates and trusts</header><text>Under regulations prescribed by the Secretary, rules similar to the rules of subsection (d) of section 52 shall apply.</text></paragraph><paragraph id="H30110E0A391D49EA88C5F2C392354F51" commented="no"><enum>(5)</enum><header>Allocation of credit to patrons of agricultural cooperative</header><text>Rules similar to the rules of section 45Y(g)(6) shall apply.</text></paragraph><paragraph commented="no" id="H79F462AFFE634BE792C317629C179D34"><enum>(6)</enum><header>Prevailing wage requirements</header><subparagraph id="HEEC18F8BF7924D9EB9BD3C9F15822124" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Subject to subparagraph (B), rules similar to the rules of section 45(b)(7) shall apply.</text></subparagraph><subparagraph id="H053679E0C4F84C0FAB767597069BC365" commented="no"><enum>(B)</enum><header>Special rule for facilities placed in service before January 1, 2025</header><text display-inline="yes-display-inline">For purposes of subparagraph (A), in the case of any qualified facility placed in service before January 1, 2025—</text><clause id="H59C93AE3A45442599E56B61ABA2DFBB9" commented="no"><enum>(i)</enum><text>clause (i) of section 45(b)(7)(A) shall not apply, and</text></clause><clause id="H2C3437D2012B41B68E2EB32454969F9B" commented="no"><enum>(ii)</enum><text>clause (ii) of such section shall be applied by substituting <quote>with respect to any taxable year beginning after December 31, 2024, for which the credit is allowed under this section</quote> for <quote>with respect to any taxable year, for any portion of such taxable year which is within the period described in subsection (a)(2)(A)(ii)</quote>.</text></clause></subparagraph></paragraph><paragraph id="H7648A9459F8B48A3851E77E92487820A" commented="no"><enum>(7)</enum><header>Apprenticeship requirements</header><text>Rules similar to the rules of section 45(b)(8) shall apply.</text></paragraph></subsection><subsection commented="no" id="idE35899F0E60C4A96B7B05A79CF384B59"><enum>(g)</enum><header>Termination</header><text>This section shall not apply to transportation fuel sold after December 31, 2027.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H022080B0173840EEAAE9EE2C32A86E3D" commented="no"><enum>(b)</enum><header>Conforming amendments</header><paragraph id="H8E9EA31A76CE41DFA4304C0C8E9FAED9" commented="no"><enum>(1)</enum><text>Section 25C(d)(3), as amended by the preceding provisions of this Act, is amended—</text><subparagraph commented="no" id="id624F7CF351434B1BAF9B0860F675873D"><enum>(A)</enum><text>in subparagraph (A), by striking <quote>and</quote> at the end,</text></subparagraph><subparagraph commented="no" id="idA53BD13FEDCC4FC9BEE6AC566EBBC8C3"><enum>(B)</enum><text>in subparagraph (B), by striking the period at the end and inserting <quote>, and</quote>, and</text></subparagraph><subparagraph commented="no" id="id096889B039C34436BC63B71F4165A1D9"><enum>(C)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id08A8AC3065F24CDBA94A17FD724B3131" changed="added" reported-display-style="italic"><subparagraph commented="no" id="id2AE0AD82C87B46EA8EC603356F0CC2DC"><enum>(C)</enum><text>transportation fuel (as defined in section 45Z(d)(5)).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph commented="no" id="id73A90B8184074327BE0BE578CA5720DC"><enum>(2)</enum><text>Section 30C(c)(1)(B), as amended by the preceding provisions of this Act, is amended by adding at the end the following new clause:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id1CAFC84EC86344C6BF678698D17C0C54" changed="added" reported-display-style="italic"><clause commented="no" id="idF7AB4FDAACF34B95A75A5C0229447B8D"><enum>(iv)</enum><text>Any transportation fuel (as defined in section 45Z(d)(5)).</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph commented="no" id="idFD68BA3F14164B48A1CD24B0059687C3"><enum>(3)</enum><text>Section 38(b), as amended by the preceding provisions of this Act, is amended— </text><subparagraph id="H731ED4F57AEA4F40B5D4969746FC2F4E" commented="no"><enum>(A)</enum><text>in paragraph (38), by striking <quote>plus</quote> at the end,</text></subparagraph><subparagraph id="H85ACA4BA0853476989E2627CFFAF9F4D" commented="no"><enum>(B)</enum><text>in paragraph (39), by striking the period at the end and inserting <quote>, plus</quote>, and</text></subparagraph><subparagraph id="H0456E95A188B4985AE353CA5EB3294BE" commented="no"><enum>(C)</enum><text>by adding at the end the following new paragraph:</text><quoted-block display-inline="no-display-inline" id="H391E1530F6824A858D5C0E749AB6029F" style="OLC" changed="added" reported-display-style="italic"><paragraph id="HE376EEBBDDBB4391B225426FA8648EC7" commented="no"><enum>(40)</enum><text>the clean fuel production credit determined under section 45Z(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="H3935E6233075402C863CE25CAEB97E8C" commented="no"><enum>(4)</enum><text>The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by adding at the end the following new item:</text><quoted-block display-inline="no-display-inline" id="H5B65C2B02B624015A8A09D89CAC7B87E" style="OLC" changed="added" reported-display-style="italic"><toc changed="added" reported-display-style="italic"><toc-entry bold="off" level="section">Sec. 45Z. Clean fuel production credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph commented="no" id="HE5B26F52C85F4F6EA50528D587B09717"><enum>(5)</enum><text>Section 4101(a)(1), as amended by the preceding provisions of this Act, is amended by inserting <quote>every person producing a fuel eligible for the clean fuel production credit (pursuant to section 45Z),</quote> after <quote>section 6426(k)(3)),</quote>.</text></paragraph></subsection><subsection id="H05183519E7AA4722ACCA1FEDB8F0BE04" commented="no" display-inline="no-display-inline"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to transportation fuel produced after December 31, 2024. </text></subsection></section></part><part id="H3B732FCE56C841C0B5B17FB1144EC41A"><enum>8<?LEXA-Enum 9?></enum><header>Credit Monetization and Appropriations</header><section id="H0306789407924D6494A949572A458F93" commented="no"><enum>13801.</enum><header>Elective payment for energy property and electricity produced from certain renewable resources, etc</header><subsection id="H405F3B1799814478940A2A95F0A9FF96" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/65">chapter 65</external-xref> is amended by inserting after section 6416 the following new section:</text><quoted-block display-inline="no-display-inline" id="H41BA4ED881E94E92BC3B8548B38FE98E" style="OLC" changed="added" reported-display-style="italic"><section id="H3EECFD3172884F41967D333FF234EDB9" commented="no"><enum>6417.</enum><header>Elective payment of applicable credits</header><subsection commented="no" id="HA1B1F0669AFF41C19ADD3B725A38306E"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of an applicable entity making an election (at such time and in such manner as the Secretary may provide) under this section with respect to any applicable credit determined with respect to such entity, such entity shall be treated as making a payment against the tax imposed by subtitle A (for the taxable year with respect to which such credit was determined) equal to the amount of such credit.</text></subsection><subsection id="H0288C537CC374354A943979BF0B176F0" commented="no"><enum>(b)</enum><header>Applicable credit</header><text display-inline="yes-display-inline">The term <term>applicable credit</term> means each of the following:</text><paragraph id="H5FBE427C9F4B4534A6129597E8550848" commented="no"><enum>(1)</enum><text display-inline="yes-display-inline">So much of the credit for alternative fuel vehicle refueling property allowed under section 30C which, pursuant to subsection (d)(1) of such section, is treated as a credit listed in section 38(b).</text></paragraph><paragraph commented="no" id="id67B0680E6BE242089963E6A819DFE614"><enum>(2)</enum><text display-inline="yes-display-inline">So much of the renewable electricity production credit determined under section 45(a) as is attributable to qualified facilities which are originally placed in service after December 31, 2022.</text></paragraph><paragraph id="H4AE809B028E94DD18FCB1D45945B288B" commented="no"><enum>(3)</enum><text>So much of the credit for carbon oxide sequestration determined under section 45Q(a) as is attributable to carbon capture equipment which is originally placed in service after December 31, 2022.</text></paragraph><paragraph commented="no" id="idE1E7B024C30149EAB9487BD5597D8364"><enum>(4)</enum><text>The zero-emission nuclear power production credit determined under section 45U(a).</text></paragraph><paragraph commented="no" id="id1D14CE11EDE04CDFA6BE2523D8EEAAC3"><enum>(5)</enum><text>So much of the credit for production of clean hydrogen determined under section 45V(a) as is attributable to qualified clean hydrogen production facilities which are originally placed in service after December 31, 2012.</text></paragraph><paragraph commented="no" id="id268F99AD769041E6B9E043F000C29BBC"><enum>(6)</enum><text>In the case of a tax-exempt entity described in clause (i), (ii), or (iv) of section 168(h)(2)(A), the credit for qualified commercial vehicles determined under section 45W by reason of subsection (d)(3) thereof.</text></paragraph><paragraph commented="no" id="idDEA7A46C45F1408E8535EC1C0334286F"><enum>(7)</enum><text>The credit for advanced manufacturing production under section 45X(a).</text></paragraph><paragraph commented="no" id="idD8F07BEA625B49EB88755A03CAF34B38"><enum>(8)</enum><text>The clean electricity production credit determined under section 45Y(a).</text></paragraph><paragraph commented="no" id="id880F2C57F46343D094AE2A699789A207"><enum>(9)</enum><text>The clean fuel production credit determined under section 45Z(a).</text></paragraph><paragraph commented="no" id="id97727CDC16484CDE9AD7DBB8E120C3FF"><enum>(10)</enum><text>The energy credit determined under section 48.</text></paragraph><paragraph commented="no" id="id7CAE6DDD91A24FECB87E64BAA07F5C66"><enum>(11)</enum><text>The qualifying advanced energy project credit determined under section 48C.</text></paragraph><paragraph commented="no" id="id82D990F061174D8E9433DC3C978A48EA"><enum>(12)</enum><text>The clean electricity investment credit determined under section 48E.</text></paragraph></subsection><subsection id="id6F9538D41A084580A82A353F19A99138" display-inline="no-display-inline" commented="no"><enum>(c)</enum><header>Application to partnerships and S corporations</header><paragraph display-inline="no-display-inline" commented="no" id="idED31C60F5588498DA9B2C5C709D4980C"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any applicable credit determined with respect to any facility or property held directly by a partnership or S corporation, any election under subsection (a) shall be made by such partnership or S corporation. If such partnership or S corporation makes an election under such subsection (in such manner as the Secretary may provide) with respect to such credit—</text><subparagraph display-inline="no-display-inline" commented="no" id="id925B063D3AA94E5D90E2268E7F7065ED"><enum>(A)</enum><text display-inline="yes-display-inline">the Secretary shall make a payment to such partnership or S corporation equal to the amount of such credit,</text></subparagraph><subparagraph display-inline="no-display-inline" commented="no" id="idB07502A6EFA048CDBE839BA1F1AB9EE5"><enum>(B)</enum><text display-inline="yes-display-inline">subsection (e) shall be applied with respect to such credit before determining any partner’s distributive share, or shareholder’s pro rata share, of such credit,</text></subparagraph><subparagraph display-inline="no-display-inline" commented="no" id="id97CF074A71FC4DCDAD2088CC58AEBF6B"><enum>(C)</enum><text display-inline="yes-display-inline">any amount with respect to which the election in subsection (a) is made shall be treated as tax exempt income for purposes of sections 705 and 1366, and</text></subparagraph><subparagraph display-inline="no-display-inline" commented="no" id="id3752C1650816437FBAEA0925668B7603"><enum>(D)</enum><text display-inline="yes-display-inline">a partner’s distributive share of such tax exempt income shall be based on such partner’s distributive share of the otherwise applicable credit for each taxable year.</text></subparagraph></paragraph><paragraph commented="no" id="id817084029D1A41F6AABB688D1443CB86"><enum>(2)</enum><header>Coordination with application at partner or shareholder level</header><text>In the case of any facility or property held directly by a partnership or S corporation, no election by any partner or shareholder shall be allowed under subsection (a) with respect to any applicable credit determined with respect to such facility or property.</text></paragraph><paragraph commented="no" id="id703B184B54F24F439F55D89541B67B67"><enum>(3)</enum><header>Treatment of payments to partnerships and S corporations</header><text>For purposes of section 1324 of title 31, United States Code, the payments under paragraph (1)(A) shall be treated in the same manner as a refund due from a credit provision referred to in subsection (b)(2) of such section.</text></paragraph></subsection><subsection id="H82E8712D70914A9AAB4E9BA41FB3318E" commented="no"><enum>(d)</enum><header>Special rules</header><text>For purposes of this section—</text><paragraph id="HF2DAD1BC15FB41D99886954FE74A93A1" commented="no"><enum>(1)</enum><header>Applicable entity</header><subparagraph commented="no" id="idC80D86AE41414157B1169D30FC32D793"><enum>(A)</enum><header>In general</header><text>The term <term>applicable entity</term> means—</text><clause commented="no" id="idA06DF290A9674773A6655BACFC96249F"><enum>(i)</enum><text>any organization exempt from the tax imposed by subtitle A, </text></clause><clause commented="no" id="idC048B0E5F0274425BA2CB4D023E47897"><enum>(ii)</enum><text>any State or political subdivision thereof, </text></clause><clause commented="no" id="idC318FA36ACE94FC886109D6810262C4C"><enum>(iii)</enum><text>the Tennessee Valley Authority, </text></clause><clause commented="no" id="idF369FAC561FA46F39C7BD5F4B11FB424"><enum>(iv)</enum><text>an Indian tribal government (as defined in section 30D(g)(9)), </text></clause><clause commented="no" id="id321C4210C631465A9271DC2F7127AD89"><enum>(v)</enum><text>any Alaska Native Corporation (as defined in section 3 of the Alaska Native Claims Settlement Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1602">43 U.S.C. 1602(m)</external-xref>), or</text></clause><clause commented="no" id="idC230477B8AE940F59756FF1738FFED4A"><enum>(vi)</enum><text>any corporation operating on a cooperative basis which is engaged in furnishing electric energy to persons in rural areas.</text></clause></subparagraph><subparagraph commented="no" id="id002C423A0B1A4C448E72DF34C77D3B48"><enum>(B)</enum><header>Election with respect to credit for production of clean hydrogen</header><text>If a taxpayer other than an entity described in subparagraph (A) makes an election under this subparagraph with respect to any taxable year in which such taxpayer has placed in service a qualified clean hydrogen production facility (as defined in section 45V(c)(3)), such taxpayer shall be treated as an applicable entity for purposes of this section for such taxable year, but only with respect to the credit described in subsection (b)(5).</text></subparagraph><subparagraph commented="no" id="id4CF62B7155E74E11B047E85E6B240EF5"><enum>(C)</enum><header>Election with respect to credit for carbon oxide sequestration</header><text>If a taxpayer other than an entity described in subparagraph (A) makes an election under this subparagraph with respect to any taxable year in which such taxpayer has, after December 31, 2022, placed in service carbon capture equipment at a qualified facility (as defined in section 45Q(d)), such taxpayer shall be treated as an applicable entity for purposes of this section for such taxable year, but only with respect to the credit described in subsection (b)(3).</text></subparagraph><subparagraph commented="no" id="idFCDCFD96917F4DC1A5FE111EA77C48DF"><enum>(D)</enum><header>Election with respect to advanced manufacturing production credit</header><clause commented="no" id="idE8DD5F3D495546B28F8B37ACD57172C0"><enum>(i)</enum><header>In general</header><text>If a taxpayer other than an entity described in subparagraph (A) makes an election under this subparagraph with respect to any taxable year in which such taxpayer has, after December 31, 2022, produced eligible components (as defined in section 45X(c)(1)), such taxpayer shall be treated as an applicable entity for purposes of this section for such taxable year, but only with respect to the credit described in subsection (b)(7).</text></clause><clause commented="no" id="id8D4154BFDA14426B9155814F45730266"><enum>(ii)</enum><header>Limitation</header><subclause commented="no" id="id89E9D9937AB84B9F9084DC66179563EB"><enum>(I)</enum><header>In general</header><text>Except as provided in subclause (II), if a taxpayer makes an election under this subparagraph with respect to any taxable year, such taxpayer shall be treated as having made such election for each of the 4 succeeding taxable years ending before January 1, 2033.</text></subclause><subclause commented="no" id="id172441BD724F4633BC5F24A8D6C508E3"><enum>(II)</enum><header>Exception</header><text>A taxpayer may elect to revoke the application of the election made under this subparagraph to any taxable year described in subclause (I). Any such election, if made, shall apply to the applicable year specified in such election and each subsequent taxable year within the period described in subclause (I). Any election under this subclause may not be subsequently revoked. </text></subclause></clause><clause commented="no" id="idCE22F3C47BCD46D9B31328D0C7EBF3AF"><enum>(iii)</enum><header>Prohibition on transfer</header><text>For any taxable year described in clause (ii)(I), no election may be made by the taxpayer under section 6418(a) for such taxable year with respect to eligible components for purposes of the credit described in subsection (b)(7).</text></clause></subparagraph><subparagraph commented="no" id="idF821906805B24A40B53E98413F056F62"><enum>(E)</enum><header>Other rules</header><clause commented="no" id="id0C6F9FA0D0C34DAAAEC7D684EED5FB5D"><enum>(i)</enum><header>In general</header><text>An election made under subparagraph (B), (C), or (D) shall be made at such time and in such manner as the Secretary may provide.</text></clause><clause commented="no" id="id1685458B66FF40DEA85A3E63B441CA6A"><enum>(ii)</enum><header>Limitation</header><text>No election may be made under subparagraph (B), (C), or (D) with respect to any taxable year beginning after December 31, 2032.</text></clause></subparagraph></paragraph><paragraph commented="no" id="id465754A5190E44A4A949D9F224A8689D"><enum>(2)</enum><header>Application</header><text display-inline="yes-display-inline">In the case of any applicable entity which makes the election described in subsection (a), any applicable credit shall be determined—</text><subparagraph id="HC7F4BB1056B946D59DAC2F84AC7EFC5D" commented="no"><enum>(A)</enum><text>without regard to paragraphs (3) and (4)(A)(i) of section 50(b), and</text></subparagraph><subparagraph id="HE8C90BA06B3648F68895F2DBD9DB65A5" commented="no"><enum>(B)</enum><text>by treating any property with respect to which such credit is determined as used in a trade or business of the applicable entity.</text></subparagraph></paragraph><paragraph id="H99AE3E9FC74C4B03B884416835D1CCE3" commented="no"><enum>(3)</enum><header>Elections</header><subparagraph id="H2B894FF384A24211A3E33E6D1911E58D" commented="no"><enum>(A)</enum><header>In general</header><clause commented="no" id="id78B41A2C213C4460A90ED40ABF6902DE"><enum>(i)</enum><header>Due date</header><text>Any election under subsection (a) shall be made not later than—</text><subclause commented="no" id="id2ACE12B8F48544599C99E105774FF146"><enum>(I)</enum><text>in the case of any government, or political subdivision, described in paragraph (1) and for which no return is required under section 6011 or 6033(a), such date as is determined appropriate by the Secretary, or</text></subclause><subclause commented="no" id="idCC14B6A60E2E49ABA606D9833FE8E3D8"><enum>(II)</enum><text>in any other case, the due date (including extensions of time) for the return of tax for the taxable year for which the election is made, but in no event earlier than 180 days after the date of the enactment of this section.</text></subclause></clause><clause commented="no" id="id95FE88420EC442C0A7DB7210A1ED584A"><enum>(ii)</enum><header>Additional rules</header><text>Any election under subsection (a), once made, shall be irrevocable and shall apply (except as otherwise provided in this paragraph) with respect to any credit for the taxable year for which the election is made.</text></clause></subparagraph><subparagraph id="H139883DCD2954938B0DF01731A335E7E" commented="no"><enum>(B)</enum><header>Renewable electricity production credit</header><text>In the case of the credit described in subsection (b)(2), any election under subsection (a) shall—</text><clause id="H8F8E5E3B94A841C9A3E8D4D3F513ED97" commented="no"><enum>(i)</enum><text>apply separately with respect to each qualified facility,</text></clause><clause id="HD0FCC692C18E4EABABBFDABD9C6BECC7" commented="no"><enum>(ii)</enum><text>be made for the taxable year in which such qualified facility is originally placed in service, and</text></clause><clause id="H211D2FB98DB4447D85240632DA7D7704" commented="no"><enum>(iii)</enum><text>shall apply to such taxable year and to any subsequent taxable year which is within the period described in subsection (a)(2)(A)(ii) of section 45 with respect to such qualified facility.</text></clause></subparagraph><subparagraph id="HA84443E25795482C89207EA65DEE297C" commented="no"><enum>(C)</enum><header>Credit for carbon oxide sequestration</header><clause commented="no" id="id3324699971F240F5BCD7504FB6390701"><enum>(i)</enum><header>In general</header><text>In the case of the credit described in subsection (b)(3), any election under subsection (a) shall—</text><subclause id="H25D05127855342D89A9A6363CC5CCDE5" commented="no"><enum>(I)</enum><text>apply separately with respect to the carbon capture equipment originally placed in service by the applicable entity during a taxable year, and</text></subclause><subclause id="id63829F7660B64E52BABA586B7A42A1AE"><enum>(II)</enum><item commented="no" display-inline="yes-display-inline" id="idEB187579D50F48A2893EF150EDFFC255"><enum>(aa)</enum><text>in the case of a taxpayer who makes an election described in paragraph (1)(C), apply to the taxable year in which such equipment is placed in service and the 4 subsequent taxable years with respect to such equipment which end before January 1, 2033, and</text></item><item id="idA4F8A2CDA50E44FFADFC5004BBC04EAA" indent="up1"><enum>(bb)</enum><text>in any other case, apply to such taxable year and to any subsequent taxable year which is within the period described in paragraph (3)(A) or (4)(A) of section 45Q(a) with respect to such equipment. </text></item></subclause></clause><clause id="id50E5FD838CAF443E86C224A444D9AA83"><enum>(ii)</enum><header>Prohibition on transfer</header><text>For any taxable year described in clause (i)(II)(aa) with respect to carbon capture equipment, no election may be made by the taxpayer under section 6418(a) for such taxable year with respect to such equipment for purposes of the credit described in subsection (b)(3).</text></clause><clause id="id8A838111C311485A89EDD530988E3B79"><enum>(iii)</enum><header>Revocation of election</header><text>In the case of a taxpayer who makes an election described in paragraph (1)(C) with respect to carbon capture equipment, such taxpayer may, at any time during the period described in clause (i)(II)(aa), revoke the application of such election with respect to such equipment for any subsequent taxable years during such period. Any such election, if made, shall apply to the applicable year specified in such election and each subsequent taxable year within the period described in clause (i)(II)(aa). Any election under this subclause may not be subsequently revoked.</text></clause></subparagraph><subparagraph id="id865DCFE2A7764F3497BA658A24B3D140"><enum>(D)</enum><header>Credit for production of clean hydrogen</header><clause id="idB644679F2166440BBB77D9E321090A81"><enum>(i)</enum><header>In general</header><text>In the case of the credit described in subsection (b)(5), any election under subsection (a) shall—</text><subclause id="idF97F86155FB945AABCB283537D81E3BF"><enum>(I)</enum><text>apply separately with respect to each qualified clean hydrogen production facility,</text></subclause><subclause id="id876D8D1641BA4A56A161ED7AB6342969"><enum>(II)</enum><text display-inline="yes-display-inline">be made for the taxable year in which such facility is placed in service (or within the 1-year period subsequent to the date of enactment of this section in the case of facilities placed in service before December 31, 2022), and</text></subclause><subclause id="id628194F635474A5F82DF4E75ADD7E164"><enum>(III)</enum><item commented="no" display-inline="yes-display-inline" id="id6985FA111F434591A0D6FED9DDC62E16"><enum>(aa)</enum><text>in the case of a taxpayer who makes an election described in paragraph (1)(B), apply to such taxable year and the 4 subsequent taxable years with respect to such facility which end before January 1, 2033, and</text></item><item id="id6AF896EC719B4360AE46873D0EF774C0" indent="up1"><enum>(bb)</enum><text>in any other case, apply to such taxable year and all subsequent taxable years with respect to such facility.</text></item></subclause></clause><clause id="idB1E3161C476741CABC130EECBBAA3A45"><enum>(ii)</enum><header>Prohibition on transfer</header><text>For any taxable year described in clause (i)(III)(aa) with respect to a qualified clean hydrogen production facility, no election may be made by the taxpayer under section 6418(a) for such taxable year with respect to such facility for purposes of the credit described in subsection (b)(5).</text></clause><clause id="id7BEA0253B6474405AA79CAD1D2D42DBF"><enum>(iii)</enum><header>Revocation of election</header><text>In the case of a taxpayer who makes an election described in paragraph (1)(B) with respect to a qualified clean hydrogen production facility, such taxpayer may, at any time during the period described in clause (i)(III)(aa), revoke the application of such election with respect to such facility for any subsequent taxable years during such period. Any such election, if made, shall apply to the applicable year specified in such election and each subsequent taxable year within the period described in clause (i)(II)(aa). Any election under this subclause may not be subsequently revoked.</text></clause></subparagraph><subparagraph commented="no" id="id78B636B87B974B7C9A95C3CB6162E549"><enum>(E)</enum><header>Clean electricity production credit</header><text display-inline="yes-display-inline">In the case of the credit described in subsection (b)(8), any election under subsection (a) shall—</text><clause id="idB0225681390B40F2A39C655BA323CEAF" commented="no"><enum>(i)</enum><text>apply separately with respect to each qualified facility,</text></clause><clause id="id18A3B3F39CC947D7807C1FCD44D73904" commented="no"><enum>(ii)</enum><text>be made for the taxable year in which such facility is placed in service, and</text></clause><clause commented="no" id="idE1978E9316204E41A02E8944519A0101"><enum>(iii)</enum><text>shall apply to such taxable year and to any subsequent taxable year which is within the period described in subsection (b)(1)(B) of section 45Y with respect to such facility. </text></clause></subparagraph></paragraph><paragraph id="H44A7F155738047F08F6CE79719C777BB" commented="no"><enum>(4)</enum><header>Timing</header><text display-inline="yes-display-inline">The payment described in subsection (a) shall be treated as made on—</text><subparagraph id="H20E7AFD93D8046DEA2BE2135BA3B834D" commented="no"><enum>(A)</enum><text>in the case of any government, or political subdivision, described in paragraph (1) and for which no return is required under section 6011 or 6033(a), the later of the date that a return would be due under section 6033(a) if such government or subdivision were described in that section or the date on which such government or subdivision submits a claim for credit or refund (at such time and in such manner as the Secretary shall provide), and</text></subparagraph><subparagraph id="H98410BC508964569A5EBDD0D3DD7D58A" commented="no"><enum>(B)</enum><text>in any other case, the later of the due date (determined without regard to extensions) of the return of tax for the taxable year or the date on which such return is filed.</text></subparagraph></paragraph><paragraph id="H6FD4509604D6403E8EBCC5A5DC192791" commented="no"><enum>(5)</enum><header>Additional information</header><text display-inline="yes-display-inline">As a condition of, and prior to, any amount being treated as a payment which is made by an applicable entity under subsection (a), the Secretary may require such information or registration as the Secretary deems necessary for purposes of preventing duplication, fraud, improper payments, or excessive payments under this section.</text></paragraph><paragraph id="HF02254E6A39F4A189D0D5D4E34FE283B" commented="no"><enum>(6)</enum><header>Excessive payment</header><subparagraph id="H2375B597395A4E50A0874285EE89CEF6" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any amount treated as a payment which is made by the applicable entity under subsection (a), or the amount of the payment made pursuant to subsection (c), which the Secretary determines constitutes an excessive payment, the tax imposed on such entity by chapter 1 (regardless of whether such entity would otherwise be subject to tax under such chapter) for the taxable year in which such determination is made shall be increased by an amount equal to the sum of—</text><clause id="H0B527909CD7D41C9BF5C0B0340FBA471" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">the amount of such excessive payment, plus</text></clause><clause id="HA52E50A7A65347E99CBCFA92D4FE7E5C" commented="no"><enum>(ii)</enum><text>an amount equal to 20 percent of such excessive payment. </text></clause></subparagraph><subparagraph id="H2A4D89A34B8142E19A1D519C1F07ABD0" commented="no"><enum>(B)</enum><header>Reasonable cause</header><text display-inline="yes-display-inline">Subparagraph (A)(ii) shall not apply if the applicable entity demonstrates to the satisfaction of the Secretary that the excessive payment resulted from reasonable cause.</text></subparagraph><subparagraph id="H2BAAC54511444FADA2185385D8813DBE" commented="no"><enum>(C)</enum><header>Excessive payment defined</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term <term>excessive payment</term> means, with respect to a facility or property for which an election is made under this section for any taxable year, an amount equal to the excess of—</text><clause id="HB37C6ACD77534A30AED076AFE2BEE244" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">the amount treated as a payment which is made by the applicable entity under subsection (a), or the amount of the payment made pursuant to subsection (c), with respect to such facility or property for such taxable year, over</text></clause><clause id="H17DB60E0008F41C688838C0511A52A00" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">the amount of the credit which, without application of this section, would be otherwise allowable (as determined pursuant to paragraph (2) and without regard to section 38(c)) under this title with respect to such facility or property for such taxable year.</text></clause></subparagraph></paragraph></subsection><subsection id="H7925458C44324E708F02D565739733F5" commented="no"><enum>(e)</enum><header>Denial of double benefit</header><text display-inline="yes-display-inline">In the case of an applicable entity making an election under this section with respect to an applicable credit, such credit shall be reduced to zero and shall, for any other purposes under this title, be deemed to have been allowed to such entity for such taxable year.</text></subsection><subsection id="H4C9DCE1C80254D859F9044F69FE45FFB" commented="no"><enum>(f)</enum><header>Mirror code possessions</header><text>In the case of any possession of the United States with a mirror code tax system (as defined in section 24(k)), this section shall not be treated as part of the income tax laws of the United States for purposes of determining the income tax law of such possession unless such possession elects to have this section be so treated. </text></subsection><subsection id="HD566728E9EF74858986A52FE87CD2FBD" commented="no"><enum>(g)</enum><header>Basis reduction and recapture</header><text display-inline="yes-display-inline">Except as otherwise provided in subsection (c)(2)(A), rules similar to the rules of section 50 shall apply for purposes of this section.</text></subsection><subsection id="H9E0F4C6343DE4BD3968770A172F64CB6" commented="no"><enum>(h)</enum><header>Regulations</header><text>The Secretary shall issue such regulations or other guidance as may be necessary to carry out the purposes of this section, including guidance to ensure that the amount of the payment or deemed payment made under this section is commensurate with the amount of the credit that would be otherwise allowable (determined without regard to section 38(c)).</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H0407F17C178E4E0084B17F7AC62D7232" commented="no"><enum>(b)</enum><header>Transfer of certain credits</header><text>Subchapter B of chapter 65, as amended by subsection (a), is amended by inserting after section 6417 the following new section:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id8FF179141EC949FCAB8745B39F098140" changed="added" reported-display-style="italic"><section commented="no" id="idFCD9679983F84F589A8835B8A16F70D3"><enum>6418.</enum><header>Transfer of certain credits</header><subsection id="HD62599EDBDCE4078917332F587C8C57A"><enum>(a)</enum><header>In general</header><text>In the case of an eligible taxpayer which elects to transfer all (or any portion specified in the election) of an eligible credit determined with respect to such taxpayer for any taxable year to a taxpayer (referred to in this section as the <term>transferee taxpayer</term>) which is not related (within the meaning of section 267(b) or 707(b)(1)) to the eligible taxpayer, the transferee taxpayer specified in such election (and not the eligible taxpayer) shall be treated as the taxpayer for purposes of this title with respect to such credit (or such portion thereof).</text></subsection><subsection id="H3AFE7CEED8CC4730875C2B2D6B0C56D5"><enum>(b)</enum><header>Treatment of payments made in connection with transfer</header><text>With respect to any amount paid by a transferee taxpayer to an eligible taxpayer as consideration for a transfer described in subsection (a), such consideration—</text><paragraph id="idE3B62690AE96445B85317AB1B45D8132"><enum>(1)</enum><text>shall be required to be paid in cash,</text></paragraph><paragraph id="id2C3D457BFEA8484284946966DDDC5343"><enum>(2)</enum><text>shall not be includible in gross income of the eligible taxpayer, and</text></paragraph><paragraph id="id8AD4DCC5DF0040068C2CEA1C795C6CB5"><enum>(3)</enum><text>with respect to the transferee taxpayer, shall not be deductible under this title.</text></paragraph></subsection><subsection id="H4B18187C6869453E92F07451B5632EEA" display-inline="no-display-inline" commented="no"><enum>(c)</enum><header>Application to partnerships and S corporations</header><paragraph display-inline="no-display-inline" commented="no" id="id1848578909FC44A9897C53A0CE4ECA62"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any eligible credit determined with respect to any facility or property held directly by a partnership or S corporation, if such partnership or S corporation makes an election under subsection (a) (in such manner as the Secretary may provide) with respect to such credit—</text><subparagraph id="HF9EAF8E65BA9464686D497491759D80E" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">any amount received as consideration for a transfer described in such subsection shall be treated as tax exempt income for purposes of sections 705 and 1366, and</text></subparagraph><subparagraph id="H7B78C63E3D054B4F937E8B3984EDD0FA" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">a partner’s distributive share of such tax exempt income shall be based on such partner’s distributive share of the otherwise eligible credit for each taxable year.</text></subparagraph></paragraph><paragraph commented="no" id="idA201B6AD717A4AF3BA39A65AD96430BB"><enum>(2)</enum><header>Coordination with application at partner or shareholder level</header><text>In the case of any facility or property held directly by a partnership or S corporation, no election by any partner or shareholder shall be allowed under subsection (a) with respect to any eligible credit determined with respect to such facility or property.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HEF68E5AAAAF04F0891E7FA65ED8D2686"><enum>(d)</enum><header display-inline="yes-display-inline">Taxable year in which credit taken into account</header><text display-inline="yes-display-inline">In the case of any credit (or portion thereof) with respect to which an election is made under subsection (a), such credit shall be taken into account in the first taxable year of the transferee taxpayer ending with, or after, the taxable year of the eligible taxpayer with respect to which the credit was determined.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="H2BA45DDB25E64343A1DD792C9CA79114"><enum>(e)</enum><header>Limitations on election</header><paragraph commented="no" display-inline="no-display-inline" id="H930BE0889272441E80039CD321C79E2F"><enum>(1)</enum><header>Time for election</header><text display-inline="yes-display-inline">An election under subsection (a) to transfer any portion of an eligible credit shall be made not later than the due date (including extensions of time) for the return of tax for the taxable year for which the credit is determined, but in no event earlier than 180 days after the date of the enactment of this section. Any such election, once made, shall be irrevocable.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8368B4D4472A4CA3951C6D67603BAE82"><enum>(2)</enum><header>No additional transfers</header><text display-inline="yes-display-inline">No election may be made under subsection (a) by a transferee taxpayer with respect to any portion of an eligible credit which has been previously transferred to such taxpayer pursuant to this section.</text></paragraph></subsection><subsection id="HADEAB6A562494EB1AC6E36F2A7CF0AEB"><enum>(f)</enum><header>Definitions</header><text>For purposes of this section—</text><paragraph id="idA36128A8B5334F2782A41E911A143EFC"><enum>(1)</enum><header>Eligible credit</header><subparagraph id="idFC9E74D408984281AF441BDD0A09E899"><enum>(A)</enum><header>In general</header><text>The term <term>eligible credit</term> means each of the following:</text><clause id="idF25F4B4D0414400EBC1FED9DA6773C28" commented="no"><enum>(i)</enum><text>So much of the credit for alternative fuel vehicle refueling property allowed under section 30C which, pursuant to subsection (d)(1) of such section, is treated as a credit listed in section 38(b).</text></clause><clause id="id882A9C368A1C4956BF574D8E79E3CF20" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">The renewable electricity production credit determined under section 45(a).</text></clause><clause commented="no" id="idFD80C47985E54D8DABB246F3C4FF49A7"><enum>(iii)</enum><text>The credit for carbon oxide sequestration determined under section 45Q(a).</text></clause><clause commented="no" id="idC6C21062098B42BBBC64606AAD336CCB"><enum>(iv)</enum><text>The zero-emission nuclear power production credit determined under section 45U(a).</text></clause><clause commented="no" id="id85BB9E42EBC44783ABF2237A37FB4790"><enum>(v)</enum><text>The clean hydrogen production credit determined under section 45V(a).</text></clause><clause commented="no" id="id927D7B57EEB84DCCB0FE8E45E1D9A012"><enum>(vi)</enum><text>The advanced manufacturing production credit determined under section 45X(a).</text></clause><clause commented="no" id="id820292E09EF54FA0A6064097D6C1D2E1"><enum>(vii)</enum><text>The clean electricity production credit determined under section 45Y(a).</text></clause><clause commented="no" id="id7CD0D57FE7CA4CE2A3550E736579F12B"><enum>(viii)</enum><text>The clean fuel production credit determined under section 45Z(a).</text></clause><clause id="id4E20436B16954C6E820B4F3918B09097" commented="no"><enum>(ix)</enum><text>The energy credit determined under section 48.</text></clause><clause id="id98E397319D32496B8551441FEC438304" commented="no"><enum>(x)</enum><text>The qualifying advanced energy project credit determined under section 48C.</text></clause><clause commented="no" id="idFB0EAD8F65F34276BEF7D36A59DA42CD"><enum>(xi)</enum><text>The clean electricity investment credit determined under section 48E.</text></clause></subparagraph><subparagraph commented="no" id="id57C5C9EAC47F40629E3A7248662B0B3A"><enum>(B)</enum><header>Election for certain credits</header><text>In the case of any eligible credit described in clause (ii), (iii), (v), or (vii) of subparagraph (A), an election under subsection (a) shall be made—</text><clause commented="no" id="idE201495ED23143A6A39833A427A03062"><enum>(i)</enum><text>separately with respect to each facility for which such credit is determined, and</text></clause><clause commented="no" id="id14812300233D40049E494F7EFFBC4885"><enum>(ii)</enum><text>for each taxable year during the 10-year period beginning on the date such facility was originally placed in service (or, in the case of the credit described in clause (iii), for each year during the 12-year period beginning on the date the carbon capture equipment was originally placed in service at such facility).</text></clause></subparagraph><subparagraph commented="no" id="idEF45D1AC0478477C9A4CF3C467519A52"><enum>(C)</enum><header>Exception for business credit carryforwards or carrybacks</header><text>The term <term>eligible credit</term> shall not include any business credit carryforward or business credit carryback determined under section 39.</text></subparagraph></paragraph><paragraph id="idF3B590178A954E6EA8340EF35C16DC54"><enum>(2)</enum><header>Eligible taxpayer</header><text>The term <term>eligible taxpayer</term> means any taxpayer which is not described in section 6417(d)(1)(A).</text></paragraph></subsection><subsection id="id70119197F56F4985A01B9FF4BCF8A25D"><enum>(g)</enum><header>Special rules</header><text>For purposes of this section—</text><paragraph id="id504EED7A201D45BD8FB386F46105744D"><enum>(1)</enum><header>Additional information</header><text>As a condition of, and prior to, any transfer of any portion of an eligible credit pursuant to subsection (a), the Secretary may require such information (including, in such form or manner as is determined appropriate by the Secretary, such information returns) or registration as the Secretary deems necessary for purposes of preventing duplication, fraud, improper payments, or excessive payments under this section.</text></paragraph><paragraph id="id52C6DABF47714053ACA50D269B4D7DD7" commented="no"><enum>(2)</enum><header>Excessive credit transfer</header><subparagraph id="id7F77A66B263B43569D9941D90F7FB437" commented="no"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any portion of an eligible credit which is transferred to a transferee taxpayer pursuant to subsection (a) which the Secretary determines constitutes an excessive credit transfer, the tax imposed on the transferee taxpayer by chapter 1 (regardless of whether such entity would otherwise be subject to tax under such chapter) for the taxable year in which such determination is made shall be increased by an amount equal to the sum of—</text><clause id="id2D095A2966E441ABA103B96A0CA7C7B0" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">the amount of such excessive credit transfer, plus</text></clause><clause id="id6A7AD0E475C34AC3802C580B28548470" commented="no"><enum>(ii)</enum><text>an amount equal to 20 percent of such excessive credit transfer. </text></clause></subparagraph><subparagraph id="id522C542C710345B7BB5CAAE86BCB4EA1" commented="no"><enum>(B)</enum><header>Reasonable cause</header><text display-inline="yes-display-inline">Subparagraph (A)(ii) shall not apply if the transferee taxpayer demonstrates to the satisfaction of the Secretary that the excessive credit transfer resulted from reasonable cause.</text></subparagraph><subparagraph id="id367F5B2A55A14492B06B15A4C2025A20" commented="no"><enum>(C)</enum><header>Excessive credit transfer defined</header><text display-inline="yes-display-inline">For purposes of this paragraph, the term <term>excessive credit transfer</term> means, with respect to a facility or property for which an election is made under subsection (a) for any taxable year, an amount equal to the excess of—</text><clause id="id60D8BDD10EFC4AE9AC22B403FB30985D" commented="no"><enum>(i)</enum><text display-inline="yes-display-inline">the amount of the eligible credit claimed by the transferee taxpayer with respect to such facility or property for such taxable year, over</text></clause><clause id="idA9684A37AADE454BABBA84A6335CF2FA" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">the amount of such credit which, without application of this section, would be otherwise allowable under this title with respect to such facility or property for such taxable year.</text></clause></subparagraph></paragraph><paragraph commented="no" id="id79A125CC6EC94229802109AE85D3BA56"><enum>(3)</enum><header>Basis reduction; notification of recapture</header><text display-inline="yes-display-inline">In the case of any election under subsection (a) with respect to any portion of an eligible credit described in clauses (ix) through (xi) of subsection (f)(1)(A)—</text><subparagraph commented="no" id="id42733555383547648FC8440FCF98B233"><enum>(A)</enum><text display-inline="yes-display-inline">subsection (c) of section 50 shall apply to the applicable investment credit property (as defined in subsection (a)(5) of such section) as if such eligible credit was allowed to the eligible taxpayer, and</text></subparagraph><subparagraph commented="no" id="id84A543723B2545EABFD8D15E69E774F3"><enum>(B)</enum><text>if, during any taxable year, the applicable investment credit property (as defined in subsection (a)(5) of section 50) is disposed of, or otherwise ceases to be investment credit property with respect to the eligible taxpayer, before the close of the recapture period (as described in subsection (a)(1) of such section)—</text><clause commented="no" id="id40E7150E37D94D389F216574857C72BA"><enum>(i)</enum><text>such eligible taxpayer shall provide notice of such occurrence to the transferee taxpayer (in such form and manner as the Secretary shall prescribe), and </text></clause><clause commented="no" id="idF2EDA433A1D044D18A0AF919A8662EBC"><enum>(ii)</enum><text>the transferee taxpayer shall provide notice of the recapture amount (as defined in subsection (c)(2) of such section), if any, to the eligible taxpayer (in such form and manner as the Secretary shall prescribe).</text></clause></subparagraph></paragraph><paragraph commented="no" id="idFC100536F685429087A8FFD9DC2EB24B"><enum>(4)</enum><header>Prohibition on election or transfer with respect to progress expenditures</header><text>This section shall not apply with respect to any amount of an eligible credit which is allowed pursuant to rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).</text></paragraph></subsection><subsection id="id17259D86E4D54971861774A6489C76A2"><enum>(h)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Secretary shall issue such regulations or other guidance as may be necessary to carry out the purposes of this section, including regulations or other guidance providing rules for determining a partner’s distributive share of the tax exempt income described in subsection (c)(1).</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="idBC817731EB76472EA739457603E7F23A"><enum>(c)</enum><header>Real estate investment trusts</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/50">Section 50(d)</external-xref> is amended by adding at the end the following: <quote>In the case of a real estate investment trust making an election under section 6418, paragraphs (1)(B) and (2)(B) of the section 46(e) referred to in paragraph (1) of this subsection shall not apply to any investment credit property of such real estate investment trust to which such election applies.</quote>.</text></subsection><subsection commented="no" id="id79B62F13F72048A1AC1AF45588476154"><enum>(d)</enum><header>3-year carryback for applicable credits</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/39">Section 39(a)</external-xref> is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id2FDEB645465D4A2884718478B879EA65" changed="added" reported-display-style="italic"><paragraph commented="no" id="idD09458A781254602A5BA1BBD5FE35DAF"><enum>(4)</enum><header>3-year carryback for applicable credits</header><text>Notwithstanding subsection (d), in the case of any applicable credit (as defined in section 6417(b))—</text><subparagraph commented="no" id="id5F12213A037943DC898169D4C3040A8B"><enum>(A)</enum><text>this section shall be applied separately from the business credit (other than the applicable credit),</text></subparagraph><subparagraph commented="no" id="id240C495ED29F4E24885D754876098C53"><enum>(B)</enum><text>paragraph (1) shall be applied by substituting <quote>each of the 3 taxable years</quote> for <quote>the taxable year</quote> in subparagraph (A) thereof, and</text></subparagraph><subparagraph commented="no" id="id150168C378514E73AF1F22258C2C4161"><enum>(C)</enum><text>paragraph (2) shall be applied—</text><clause commented="no" id="idD30B40364B3D4032B00032CA84EFBAB1"><enum>(i)</enum><text>by substituting <quote>23 taxable years</quote> for <quote>21 taxable years</quote> in subparagraph (A) thereof, and</text></clause><clause commented="no" id="id1CA7A1F08C10495BB997D8584FD39B61"><enum>(ii)</enum><text>by substituting <quote>22 taxable years</quote> for <quote>20 taxable years</quote> in subparagraph (B) thereof.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="id97FE6DCBA07B44E6B9CEB9653BA7D5C9"><enum>(e)</enum><header>Clerical amendment</header><text display-inline="yes-display-inline">The table of sections for subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/65">chapter 65</external-xref> is amended by inserting after the item relating to section 6416 the following new items:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idBE79F1EB2AF94AB8932F69711781433B" changed="added" reported-display-style="italic"><toc container-level="quoted-block-container" quoted-block="no-quoted-block" lowest-level="section" idref="H41BA4ED881E94E92BC3B8548B38FE98E" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded" changed="added" reported-display-style="italic"><toc-entry idref="H3EECFD3172884F41967D333FF234EDB9" level="section">Sec. 6417. Elective payment of applicable credits.</toc-entry><toc-entry level="section" bold="off">Sec. 6418. Transfer of certain credits.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H15B81C5BFE8C4842860FBDA17FC3BF03" commented="no"><enum>(f)</enum><header>Gross-up of direct spending</header><text>Beginning in fiscal year 2023 and each fiscal year thereafter, the portion of any payment made to a taxpayer pursuant to an election under <external-xref legal-doc="usc" parsable-cite="usc/26/6417">section 6417</external-xref> of the Internal Revenue Code of 1986, or any amount treated as a payment which is made by the taxpayer under subsection (a) of such section, that is direct spending shall be increased by 6.0445 percent.</text></subsection><subsection commented="no" id="id6B59BF9CEC2B46A4BD44E930702545C9"><enum>(g)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2022.</text></subsection></section><section id="HF7B6C4DBA3BB4CA682248B3C5AD838C4"><enum>13802.</enum><header>Appropriations</header><text display-inline="no-display-inline">Immediately upon the enactment of this Act, in addition to amounts otherwise available, there are appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $500,000,000 to remain available until September 30, 2031, for necessary expenses for the Internal Revenue Service to carry out this subtitle (and the amendments made by this subtitle), which shall supplement and not supplant any other appropriations that may be available for this purpose.</text></section></part><part id="id7876028876EF4E80B36D48D238A32720" style="OLC"><enum>9<?LEXA-Enum 9?></enum><header>Other provisions</header><section id="HDAE1DA845C9A48E8BFEB5B96DEDF2C73" commented="no"><enum>13901.</enum><header>Permanent extension of tax rate to fund Black Lung Disability Trust Fund</header><subsection id="H7A09747B3CD0436D8E98B9DC44969DF7" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/4121">Section 4121</external-xref> is amended by striking subsection (e).</text></subsection><subsection id="id685039CA976A40CDB78743536C1D058A"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to sales in calendar quarters beginning after the date which is 1 day after the date of enactment of this Act.</text></subsection></section><section id="H0FDE72B772E04EA3AF6529D41E822BAF"><enum>13902.</enum><header>Increase in research credit against payroll tax for small businesses</header><subsection id="H042A0867A83A43C4941B8079E6F1912B"><enum>(a)</enum><header>In general</header><text>Clause (i) of <external-xref legal-doc="usc" parsable-cite="usc/26/41">section 41(h)(4)(B)</external-xref> is amended—</text><paragraph id="HB7E8B2C445084135AB2CC39F888BD370"><enum>(1)</enum><text>by striking <quote><header-in-text style="OLC" level="clause">Amount</header-in-text>.—The amount</quote> and inserting “<header-in-text level="clause" style="OLC">Amount</header-in-text>.—</text><quoted-block style="OLC" display-inline="no-display-inline" id="H749EB1C4C977474183E31972E694EE62" changed="added" reported-display-style="italic"><subclause id="H766908BC31D9463D96325F8FA8A355E7"><enum>(I)</enum><header>In general</header><text>The amount</text></subclause><after-quoted-block>, and</after-quoted-block></quoted-block></paragraph><paragraph id="H196D500A54A74084928134629D4B46F0"><enum>(2)</enum><text>by adding at the end the following new subclause:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HB11ED580761B40E89C38D91D4A9D9065" changed="added" reported-display-style="italic"><subclause id="H09F5B18D73114C6C900A4CD557A5C6E3"><enum>(II)</enum><header>Increase</header><text>In the case of taxable years beginning after December 31, 2022, the amount in subclause (I) shall be increased by $250,000.</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="HAB7B13B85BB045BEBBCB7CD8C98ECFE3"><enum>(b)</enum><header>Allowance of credit</header><paragraph id="H6CC1FAA8CC4D4246BD6C8C3B04B2E7F5"><enum>(1)</enum><header>In general</header><text>Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/26/3111">section 3111(f)</external-xref> is amended—</text><subparagraph id="HAF9C6C6E3ACE4C979AA2D7FA6882D1EF"><enum>(A)</enum><text>by striking <quote>for a taxable year, there shall be allowed</quote> and inserting “for a taxable year—</text><quoted-block style="OLC" display-inline="no-display-inline" id="H98FC1B6D42F9450B9E99C446B741388E" changed="added" reported-display-style="italic"><subparagraph id="HE9351925A1264686BBCD8DD117254646"><enum>(A)</enum><text>there shall be allowed</text></subparagraph><after-quoted-block>,</after-quoted-block></quoted-block></subparagraph><subparagraph id="HDEF2490D4F674208A525F4CAD0F70489"><enum>(B)</enum><text>by striking <quote>equal to the</quote> and inserting <quote>equal to so much of the</quote>,</text></subparagraph><subparagraph id="H2FE8C51D8F764D42932D812546B9C98A"><enum>(C)</enum><text>by striking the period at the end and inserting <quote>as does not exceed the limitation of subclause (I) of section 41(h)(4)(B)(i) (applied without regard to subclause (II) thereof), and</quote>, and</text></subparagraph><subparagraph id="H408F6E6C4194444C949D575EBD9D7359"><enum>(D)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H23F102CF50C34F569DF91512AD48D344" changed="added" reported-display-style="italic"><subparagraph id="H29F96304945841B5B6B5E47CB0530E65"><enum>(B)</enum><text>there shall be allowed as a credit against the tax imposed by subsection (b) for the first calendar quarter which begins after the date on which the taxpayer files the return specified in section 41(h)(4)(A)(ii) an amount equal to so much of the payroll tax credit portion determined under section 41(h)(2) as is not allowed as a credit under subparagraph (A).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="H2076A01CD51E42C8A29998EFB6C79614"><enum>(2)</enum><header>Limitation</header><text>Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/3111">section 3111(f)</external-xref> is amended—</text><subparagraph id="H5465F42CC232444DBB07C4D9B49F40AA"><enum>(A)</enum><text>by striking <quote>paragraph (1)</quote> and inserting <quote>paragraph (1)(A)</quote>, and</text></subparagraph><subparagraph id="H4F0DD0887E394FE785FE8FD2CE5E14E3"><enum>(B)</enum><text>by inserting <quote>, and the credit allowed by paragraph (1)(B) shall not exceed the tax imposed by subsection (b) for any calendar quarter,</quote> after <quote>calendar quarter</quote>.</text></subparagraph></paragraph><paragraph id="H5AD5CD7CC6054F3781E0E27948733353"><enum>(3)</enum><header>Carryover</header><text>Paragraph (3) of <external-xref legal-doc="usc" parsable-cite="usc/26/3111">section 3111(f)</external-xref> is amended by striking <quote>the credit</quote> and inserting <quote>any credit</quote>.</text></paragraph><paragraph id="HC6DE7F61C79F416CB8CD39BE8B4A5867"><enum>(4)</enum><header>Deduction allowed</header><text>Paragraph (4) of <external-xref legal-doc="usc" parsable-cite="usc/26/3111">section 3111(f)</external-xref> is amended—</text><subparagraph id="HC8C1222B7EE349AFA7723238320FB315"><enum>(A)</enum><text>by striking <quote>credit</quote> and inserting <quote>credits</quote>, and</text></subparagraph><subparagraph id="H430A4ED3642F40DDAD3FF7A8E5616179"><enum>(B)</enum><text>by striking <quote>subsection (a)</quote> and inserting <quote>subsection (a) or (b)</quote>.</text></subparagraph></paragraph></subsection><subsection id="HB3AB738A950642FC953605180DB7B700"><enum>(c)</enum><header>Aggregation rules</header><text>Clause (ii) of <external-xref legal-doc="usc" parsable-cite="usc/26/41">section 41(h)(5)(B)</external-xref> is amended by striking <quote>the $250,000 amount</quote> and inserting <quote>each of the $250,000 amounts</quote>.</text></subsection><subsection id="H69C19C5DB69740DCA5ED4B52F27A1DC3"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2022.</text></subsection></section><section id="id3507000b6a6849fd8609827ed03f21a3"><enum>13903.</enum><header>Reinstatement of limitation rules for deduction for State and local, etc., taxes; extension of limitation on excess business losses of noncorporate taxpayers</header><subsection id="id7fddccc402bb4412b0106e5750593a50"><enum>(a)</enum><header>Reinstatement of limitation rules for deduction for State and local, etc., taxes</header><paragraph id="id90D6637ED0E7486389DF77E2BA75E726"><enum>(1)</enum><header>In general</header><text>Section 164(b)(6), as amended by section 13904, is further amended—</text><subparagraph id="idd7e67bba5fda465db9c1e874e532f035"><enum>(A)</enum><text>in the heading, by striking <quote><header-in-text style="OLC" level="paragraph">2026</header-in-text></quote> and inserting <quote><header-in-text style="OLC" level="paragraph">2025</header-in-text></quote>, and</text></subparagraph><subparagraph id="id168bdf2716a94259b4e3669138ef7ce8"><enum>(B)</enum><text>by striking <quote>2027</quote> and inserting <quote>2026</quote>.</text></subparagraph></paragraph><paragraph id="id79446961789f4e3b9afa113dfc2feff5"><enum>(2)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to taxable years beginning after December 31, 2022.</text></paragraph></subsection><subsection id="id1da669e083914575a681cc5875ec49a5"><enum>(b)</enum><header>Extension of limitation on excess business losses of noncorporate taxpayers</header><paragraph id="ida1306a24a45649efb364ec55578257d4"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/461">Section 461(l)(1)</external-xref> is amended by striking <quote>January 1, 2027</quote> each place it appears and inserting <quote>January 1, 2029</quote>.</text></paragraph><paragraph id="id745ea450e9004465a66d1430b7581b8c"><enum>(2)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to taxable years beginning after December 31, 2026.</text></paragraph></subsection></section><section id="idc5f990dfd3a3447ca904d4e65c13620a"><enum>13904.</enum><header>Removal of harmful small business taxes; extension of limitation on deduction for State and local, etc., taxes</header><subsection id="id41A4E77AB98E483ABED8FD709DAB20BA"><enum>(a)</enum><header>Removal of harmful small business taxes</header><text>Subparagraph (D) of section 59(k)(1), as added by <external-xref legal-doc="usc" parsable-cite="usc/26/10101">section 10101,</external-xref> is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id0C79D67CCAB24D7699B4A5B2AE709CA1" changed="added" reported-display-style="italic"><subparagraph id="idC5A3D9A1BC184A018BE723E537E002CB" commented="no"><enum>(D)</enum><header>Special rules for determining applicable corporation status</header><text>Solely for purposes of determining whether a corporation is an applicable corporation under this paragraph, all adjusted financial statement income of persons treated as a single employer with such corporation under subsection (a) or (b) of section 52 shall be treated as adjusted financial statement income of such corporation, and adjusted financial statement income of such corporation shall be determined without regard to paragraphs (2)(D)(i) and (11) of section 56A(c).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id6498342EA2D743848462F6BAFE3531C4"><enum>(b)</enum><header>Extension of limitation on deduction for State and local, etc., taxes</header><paragraph id="idc0921f542aef4ca98775457fa44da08b"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/164">Section 164(b)(6)</external-xref> is amended—</text><subparagraph id="id84072C1113F440148395A28A3F43BC93"><enum>(A)</enum><text>in the heading, by striking <quote><header-in-text style="OLC" level="paragraph">2025</header-in-text></quote> and inserting <quote><header-in-text style="OLC" level="paragraph">2026</header-in-text></quote>, and</text></subparagraph><subparagraph id="idED9FB4D3561F40899CBFE85C9BAF306D"><enum>(B)</enum><text>by striking <quote>2026</quote> and inserting <quote>2027</quote>.</text></subparagraph></paragraph><paragraph id="idaceba9b892394ef5b6a5d9be57071374"><enum>(2)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to taxable years beginning after December 31, 2022.</text></paragraph></subsection></section></part></subtitle><enum>II</enum><header>Committee on Agriculture, Nutrition, and Forestry</header><subtitle id="HEA73C56700B7443892B5E3509200EAB3"><enum>A</enum><header>General provisions</header><section id="H31A0A43153DA4335A593870AB5E5D833"><enum>20001.</enum><header>Definition of Secretary</header><text display-inline="no-display-inline">In this title, the term <term>Secretary</term> means the Secretary of Agriculture. </text></section></subtitle><subtitle id="H246427DAEC084AAB9E2C0435F5CB5C24"><enum>B</enum><header>Conservation</header><section id="H90AC6E6C906541628CEF7A1E7D3F6BA6"><enum>21001.</enum><header>Additional agricultural conservation investments</header><subsection id="H683F99B4C5F643BFA8023E03FE4CB6AB"><enum>(a)</enum><header>Appropriations</header><text>In addition to amounts otherwise available (and subject to subsection (b)), there are appropriated to the Secretary, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2031 (subject to the condition that no such funds may be disbursed after September 30, 2031)—</text><paragraph id="H60CF8621E34D4BCD9ACF33D9AD775917"><enum>(1)</enum><text>to carry out, using the facilities and authorities of the Commodity Credit Corporation, the environmental quality incentives program under subchapter A of chapter 4 of subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C. 3839aa through 3839aa–8)— </text><subparagraph id="H980D4EA39DB44A2BA04BC58EC00D4EA8"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="H617CB7CBFF1641B99A9E2ECBB74EF3BB"><enum>(i)</enum><text>$250,000,000 for fiscal year 2023; </text></clause><clause id="H93DC9EC2AC944F768F983E8449664820" indent="up1"><enum>(ii)</enum><text>$1,750,000,000 for fiscal year 2024;</text></clause><clause id="H7AC3AF5F5EB04A52806A2A890F491D0C" indent="up1"><enum>(iii)</enum><text>$3,000,000,000 for fiscal year 2025; and</text></clause><clause id="HAE6A49FF8941438AA8FCDFC503036497" indent="up1"><enum>(iv)</enum><text>$3,450,000,000 for fiscal year 2026; and</text></clause></subparagraph><subparagraph id="HC5A3ED05F17746A6B10D64AB946F5637"><enum>(B)</enum><text>subject to the conditions on the use of the funds that—</text><clause id="H7F3C1FCF4DD4481384F82AB6309C7383"><enum>(i)</enum><text>section 1240B(f)(1) of the Food Security Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/16/3839aa-2">16 U.S.C. 3839aa–2(f)(1)</external-xref>) shall not apply;</text></clause><clause id="H4A10F5F4D1464721A347E6F5C163EB18"><enum>(ii)</enum><text>section 1240H(c)(2) of the Food Security Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/16/3839aa-8">16 U.S.C. 3839aa–8(c)(2)</external-xref>) shall be applied—</text><subclause id="H558BA9B97C45430293B5A305E521062B"><enum>(I)</enum><text>by substituting <quote>$50,000,000</quote> for <quote>$25,000,000</quote>; and </text></subclause><subclause id="HF47F8BEAB767488785F0288434DC01B8"><enum>(II)</enum><text>with the Secretary prioritizing proposals that utilize diet and feed management to reduce enteric methane emissions from ruminants; and</text></subclause></clause><clause id="H66622E1050F24B10A4A3FA936159C4BA"><enum>(iii)</enum><text>the funds shall be available for 1 or more agricultural conservation practices or enhancements that the Secretary determines directly improve soil carbon, reduce nitrogen losses, or reduce, capture, avoid, or sequester carbon dioxide, methane, or nitrous oxide emissions, associated with agricultural production; </text></clause></subparagraph></paragraph><paragraph id="H4A3C3910566548F2B2621A0AABEDA874"><enum>(2)</enum><text>to carry out, using the facilities and authorities of the Commodity Credit Corporation, the conservation stewardship program under subchapter B of that chapter (16 U.S.C. 3839aa–21 through 3839aa–25)—</text><subparagraph id="H1099AD8AD57F4B1A8C9E7DDA940C40B5"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="H7D403A1BD89943A0AF078108DC664509"><enum>(i)</enum><text>$250,000,000 for fiscal year 2023; </text></clause><clause id="HDC2E5A2C73264B80BAEB1EE9A3EA169D" indent="up1"><enum>(ii)</enum><text>$500,000,000 for fiscal year 2024;</text></clause><clause id="HF063CD65EBFF4865B76994C505E2187F" indent="up1"><enum>(iii)</enum><text>$1,000,000,000 for fiscal year 2025; and</text></clause><clause id="HC9CF1CB87A80450E8B6A115ECFA8A254" indent="up1"><enum>(iv)</enum><text>$1,500,000,000 for fiscal year 2026; and</text></clause></subparagraph><subparagraph id="H5FF7ED34092641738B48518E31164D25"><enum>(B)</enum><text display-inline="yes-display-inline">subject to the condition on the use of the funds that the funds shall only be available for 1 or more agricultural conservation practices, enhancements, or bundles that the Secretary determines directly improve soil carbon, reduce nitrogen losses, or reduce, capture, avoid, or sequester carbon dioxide, methane, or nitrous oxide emissions, associated with agricultural production; </text></subparagraph></paragraph><paragraph id="HD7A88058D28E45A893E3BAD3AED865C5"><enum>(3)</enum><text>to carry out, using the facilities and authorities of the Commodity Credit Corporation, the agricultural conservation easement program under subtitle H of title XII of that Act (16 U.S.C. 3865 through 3865d) for easements or interests in land that will most reduce, capture, avoid, or sequester carbon dioxide, methane, or nitrous oxide emissions associated with land eligible for the program— </text><subparagraph id="HE224A6966FDB496E95C1402471C5C560"><enum>(A)</enum><text>$100,000,000 for fiscal year 2023;</text></subparagraph><subparagraph id="HCAAB5417836E42F48B7432241930B285"><enum>(B)</enum><text>$200,000,000 for fiscal year 2024;</text></subparagraph><subparagraph id="HEA407DE99D384F2E8017BAD7FC79803D"><enum>(C)</enum><text>$500,000,000 for fiscal year 2025; and</text></subparagraph><subparagraph id="HE853733489974006ADB63832CB16642A"><enum>(D)</enum><text>$600,000,000 for fiscal year 2026; and</text></subparagraph></paragraph><paragraph id="H3A981FE96ECE4EF588C7E05A9DD3114A"><enum>(4)</enum><text>to carry out, using the facilities and authorities of the Commodity Credit Corporation, the regional conservation partnership program under subtitle I of title XII of that Act (16 U.S.C. 3871 through 3871f)—</text><subparagraph id="H91765C84DD5F46F185DE05DF3000CDA5"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="H583AB5C6D7174A6893BE8715F70FBD58"><enum>(i)</enum><text>$250,000,000 for fiscal year 2023;</text></clause><clause id="HC215AAC815AB42709A2EB90865C77E04" indent="up1"><enum>(ii)</enum><text>$800,000,000 for fiscal year 2024;</text></clause><clause id="H38F8EE8346DE421D8989827EF9EAF0FD" indent="up1"><enum>(iii)</enum><text>$1,500,000,000 for fiscal year 2025; and</text></clause><clause id="H9089CE6DDF14426380C64CB194B16819" indent="up1"><enum>(iv)</enum><text>$2,400,000,000 for fiscal year 2026; and</text></clause></subparagraph><subparagraph id="HAD0FAFAC87EB4DD8B75FC917FE2D15D3"><enum>(B)</enum><text>subject to the conditions on the use of the funds that—</text><clause id="idc51f96c2badf495b8129141c5a44d4f5"><enum>(i)</enum><text>section 1271C(d)(2)(B) of the Food Security Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/16/3871c">16 U.S.C. 3871c(d)(2)(B)</external-xref>) shall not apply; and</text></clause><clause id="HB1BFABA4FFD54A24A0E805B7AE843B78"><enum>(ii)</enum><text>the Secretary shall prioritize partnership agreements under section 1271C(d) of the Food Security Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/16/3871c">16 U.S.C. 3871c(d)</external-xref>) that support the implementation of conservation projects that assist agricultural producers and nonindustrial private forestland owners in directly improving soil carbon, reducing nitrogen losses, or reducing, capturing, avoiding, or sequestering carbon dioxide, methane, or nitrous oxide emissions, associated with agricultural production.</text></clause></subparagraph></paragraph></subsection><subsection id="H24F954F740F04386B273985B58A5E199"><enum>(b)</enum><header>Conditions</header><text>The funds made available under subsection (a) are subject to the conditions that the Secretary shall not—</text><paragraph id="H33AC92C787864CB59A59810A4C2BF882"><enum>(1)</enum><text>enter into any agreement—</text><subparagraph id="H18DBB564B11C44E588CF855ED1027D90"><enum>(A)</enum><text>that is for a term extending beyond September 30, 2031; or</text></subparagraph><subparagraph id="HF6A488FF411848FA91C7259CCCE5AFBA"><enum>(B)</enum><text>under which any payment could be outlaid or funds disbursed after September 30, 2031; or</text></subparagraph></paragraph><paragraph id="HE964BBEEF87A4E938F387D548C175415"><enum>(2)</enum><text>use any other funds available to the Secretary to satisfy obligations initially made under this section. </text></paragraph></subsection><subsection id="H4FF02A92B91B459FAC8D6825FD8C4798" commented="no"><enum>(c)</enum><header>Conforming amendments</header><paragraph id="HCFDC40827D5544DF9778C8420A0F3E3B" commented="no"><enum>(1)</enum><text>Section 1240B of the Food Security Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/16/3839aa-2">16 U.S.C. 3839aa–2</external-xref>) is amended—</text><subparagraph id="H847E57053CAE445E9F1061F882E87911" commented="no"><enum>(A)</enum><text>in subsection (a), by striking <quote>2023</quote> and inserting <quote>2031</quote>; and</text></subparagraph><subparagraph id="H7618ACDF15194ED9AE19F809A0C45E57" commented="no"><enum>(B)</enum><text>in subsection (f)(2)(B)—</text><clause id="HC211D1D709FB4C6EAAB025B2BD299D78" commented="no"><enum>(i)</enum><text>in the subparagraph heading, by striking <quote><header-in-text style="OLC" level="subparagraph">2023</header-in-text></quote> and inserting <quote><header-in-text style="OLC" level="subparagraph">2031</header-in-text></quote>; and</text></clause><clause id="H74B8149371B049EBB59036EC99EE3E34" commented="no"><enum>(ii)</enum><text>by striking <quote>2023</quote> and inserting <quote>2031</quote>.</text></clause></subparagraph></paragraph><paragraph commented="no" id="H88AEBE050C5A40CB9E0FF7A211FE2B66"><enum>(2)</enum><text>Section 1240H of the Food Security Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/16/3839aa-8">16 U.S.C. 3839aa–8</external-xref>) is amended by striking <quote>2023</quote> each place it appears and inserting <quote>2031</quote>.</text></paragraph><paragraph commented="no" id="HA67BF2C4538C49B896A5A3CC9BE7E08C"><enum>(3)</enum><text>Section 1240J(a) of the Food Security Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/16/3839aa-22">16 U.S.C. 3839aa–22(a)</external-xref>) is amended, in the matter preceding paragraph (1), by striking <quote>2023</quote> and inserting <quote>2031</quote>.</text></paragraph><paragraph commented="no" id="HDD04F73F484946B9BD3C161C9F3695D3"><enum>(4)</enum><text>Section 1240L(h)(2)(A) of the Food Security Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/16/3839aa-24">16 U.S.C. 3839aa–24(h)(2)(A)</external-xref>) is amended by striking <quote>2023</quote> and inserting <quote>2031</quote>.</text></paragraph><paragraph id="HC2E5B48097704FDF879C486737977DD5" commented="no"><enum>(5)</enum><text>Section 1241 of the Food Security Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/16/3841">16 U.S.C. 3841</external-xref>) is amended—</text><subparagraph id="H92F7FBCACBE14281B7F329D4D3439C41" commented="no"><enum>(A)</enum><text>in subsection (a)—</text><clause id="idc06300cdc5f84dc29f1f93bbbde64c53" commented="no"><enum>(i)</enum><text>in the matter preceding paragraph (1), by striking <quote>2023</quote> and inserting <quote>2031</quote>;</text></clause><clause id="H47696C26488944BF8F93B9A8C9DA5716" commented="no"><enum>(ii)</enum><text>in paragraph (2)(F), by striking <quote>2023</quote> and inserting <quote>2031</quote>; and</text></clause><clause id="H19A159AEC0D74C1DA04FA93F0AB02FB1" commented="no"><enum>(iii)</enum><text>in paragraph (3), by striking <quote>fiscal year 2023</quote> each place it appears and inserting <quote>each of fiscal years 2023 through 2031</quote>;</text></clause></subparagraph><subparagraph id="HDE83E052A2E54B8D8BC1A2A97C944BBD" commented="no"><enum>(B)</enum><text>in subsection (b), by striking <quote>2023</quote> and inserting <quote>2031</quote>; and</text></subparagraph><subparagraph id="H02450AB8BEA847FBB846A1EA89D24718" commented="no"><enum>(C)</enum><text>in subsection (h)—</text><clause id="H904FB78C60F54BAC9B92C9A1DB19E5AF" commented="no"><enum>(i)</enum><text>in paragraph (1)(B), in the subparagraph heading, by striking <quote><header-in-text style="OLC" level="subparagraph">2023</header-in-text></quote> and inserting <quote><header-in-text style="OLC" level="subparagraph">2031</header-in-text></quote>; and</text></clause><clause id="HACFF197C87AF46B9940A40F1B9186D05" commented="no"><enum>(ii)</enum><text>by striking <quote>2023</quote> each place it appears and inserting <quote>2031</quote>.</text></clause></subparagraph></paragraph><paragraph id="HD46BD55EA9034386985B9A1081297D1F" commented="no"><enum>(6)</enum><text>Section 1244(n)(3)(A) of the Food Security Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/16/3844">16 U.S.C. 3844(n)(3)(A)</external-xref>) is amended by striking <quote>2023</quote> and inserting <quote>2031</quote>.</text></paragraph><paragraph id="H0B9E92A209D841C8B3F70DA8C074A299" commented="no"><enum>(7)</enum><text>Section 1271D(a) of the Food Security Act of 1985 (<external-xref legal-doc="usc" parsable-cite="usc/16/3871d">16 U.S.C. 3871d(a)</external-xref>) is amended by striking <quote>2023</quote> and inserting <quote>2031</quote>.</text></paragraph></subsection></section><section id="HEEFC28095CA44E2B92DF7C46B577B8E2"><enum>21002.</enum><header>Conservation technical assistance</header><subsection id="HFA2A8A54FE2B41FBB9D90119EB83B4EF"><enum>(a)</enum><header>Appropriations</header><text>In addition to amounts otherwise available (and subject to subsection (b)), there are appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2031 (subject to the condition that no such funds may be disbursed after September 30, 2031)—</text><paragraph id="H2B992D6A093C47DA9B07C69E44DC404A"><enum>(1)</enum><text>$1,000,000,000 to provide conservation technical assistance through the Natural Resources Conservation Service; and</text></paragraph><paragraph id="H00C0947B6FDF484A80819F19CE30BDFE"><enum>(2)</enum><text>$300,000,000 to carry out a program to quantify carbon sequestration and carbon dioxide, methane, and nitrous oxide emissions, through which the Natural Resources Conservation Service shall collect field-based data to assess the carbon sequestration and reduction in carbon dioxide, methane, and nitrous oxide emissions outcomes associated with activities carried out pursuant to this section and use the data to monitor and track those carbon sequestration and emissions trends through the Greenhouse Gas Inventory and Assessment Program of the Department of Agriculture.</text></paragraph></subsection><subsection id="H60E9C100BDEE4969908988E451D3241C"><enum>(b)</enum><header>Conditions</header><text>The funds made available under this section are subject to the conditions that the Secretary shall not—</text><paragraph id="H76BEA09B409449418C2D7CE3BA501636"><enum>(1)</enum><text>enter into any agreement—</text><subparagraph id="H0A56FF4CDC0949E386BE97A8B1E121B7"><enum>(A)</enum><text>that is for a term extending beyond September 30, 2031; or</text></subparagraph><subparagraph id="H60B5F40431024152A92E7FF438B9D57D"><enum>(B)</enum><text>under which any payment could be outlaid or funds disbursed after September 30, 2031; </text></subparagraph></paragraph><paragraph id="HA931DF0A7EDE4615AB306B100324B500"><enum>(2)</enum><text>use any other funds available to the Secretary to satisfy obligations initially made under this section; or</text></paragraph><paragraph id="H9D765A2C2CB44F1A91F94FF4823FF262" commented="no"><enum>(3)</enum><text>interpret this section to authorize funds of the Commodity Credit Corporation for activities under this section if such funds are not expressly authorized or currently expended for such purposes.</text></paragraph></subsection><subsection id="H78541AC92BAD4CF3A26608EDFED3D443"><enum>(c)</enum><header>Administrative costs</header><text>In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available until September 30, 2028, for administrative costs of the agencies and offices of the Department of Agriculture for costs related to implementing this section. </text></subsection></section></subtitle><subtitle id="H6A95E6E158A24830BAD94408300A55B1"><enum>C</enum><header>Rural development and agricultural credit</header><section id="HB1A063A87DD14F70AF19C16615F96DF3"><enum>22001.</enum><header>Additional funding for electric loans for renewable energy</header><text display-inline="no-display-inline">Section 9003 of the Farm Security and Rural Investment Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/7/8103">7 U.S.C. 8103</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id8C7B67A3CCB044C686FF2ECE42593214" changed="added" reported-display-style="italic"><subsection id="id9795765FAAB54235B6FB96C22A9A7B63"><enum>(h)</enum><header>Additional funding for electric loans for renewable energy</header><paragraph id="id98BC32F91271486A8CD36C351E39C47F"><enum>(1)</enum><header>Appropriations</header><text display-inline="yes-display-inline">Notwithstanding subsections (a) through (e), and (g), in addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $1,000,000,000, to remain available until September 30, 2031, for the cost of loans under section 317 of the Rural Electrification Act of 1936 (<external-xref legal-doc="usc" parsable-cite="usc/7/940g">7 U.S.C. 940g</external-xref>), including for projects that store electricity that support the types of eligible projects under that section, which shall be forgiven in an amount that is not greater than 50 percent of the loan based on how the borrower and the project meets the terms and conditions for loan forgiveness consistent with the purposes of that section established by the Secretary, except as provided in paragraph (3). </text></paragraph><paragraph id="id794C5FAEBE5D4ACA962BD748F415C1CD"><enum>(2)</enum><header>Limitation</header><text display-inline="yes-display-inline">The Secretary shall not enter into any loan agreement pursuant this subsection that could result in disbursements after September 30, 2031.</text></paragraph><paragraph id="ide84f6e1b36ae4073958068b8affc4802"><enum>(3)</enum><header>Exception</header><text>The Secretary shall establish criteria for waiving the 50 percent limitation described in paragraph (1).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="H343981BA3908434D90A6A3E8CF499318"><enum>22002.</enum><header>Rural Energy for America Program</header><subsection id="HCDBFD4AFFB4B4FB7B40CC5E11B849F20" commented="no"><enum>(a)</enum><header>Appropriation</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Secretary, out of any money in the Treasury not otherwise appropriated, for eligible projects under section 9007 of the Farm Security and Rural Investment Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/7/8107">7 U.S.C. 8107</external-xref>), and notwithstanding section 9007(c)(3)(A) of that Act, the amount of a grant shall not exceed 50 percent of the cost of the activity carried out using the grant funds—</text><paragraph id="H98A4A803F967488D9BE17A5C4D78544A" commented="no"><enum>(1)</enum><text display-inline="yes-display-inline">$820,250,000 for fiscal year 2022, to remain available until September 30, 2031; and</text></paragraph><paragraph id="H9D6F42835326465EA85EB346C6DC88E1" commented="no"><enum>(2)</enum><text display-inline="yes-display-inline">$180,276,500 for each of fiscal years 2023 through 2027, to remain available until September 30, 2031.</text></paragraph></subsection><subsection id="H085044A7C9FB4BE99499505317A9727C"><enum>(b)</enum><header>Underutilized renewable energy technologies</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Secretary, out of any money in the Treasury not otherwise appropriated, to provide grants and loans guaranteed by the Secretary (including the costs of such loans) under the program described in subsection (a) relating to underutilized renewable energy technologies, and to provide technical assistance for applying to the program described in subsection (a), including for underutilized renewable energy technologies, notwithstanding section 9007(c)(3)(A) of the Farm Security and Rural Investment Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/7/8107">7 U.S.C. 8107(c)(3)(A)</external-xref>), the amount of a grant shall not exceed 50 percent of the cost of the activity carried out using the grant funds, and to the extent the following amounts remain available at the end of each fiscal year, the Secretary shall use such amounts in accordance with subsection (a)—</text><paragraph id="H06D3D63CFDD847319C9ECE27EF10DB68"><enum>(1)</enum><text display-inline="yes-display-inline">$144,750,000 for fiscal year 2022, to remain available until September 30, 2031; and</text></paragraph><paragraph id="H4ACCFFF7BB294C269461E43E9BFE9777"><enum>(2)</enum><text display-inline="yes-display-inline">$31,813,500 for each of fiscal years 2023 through 2027, to remain available until September 30, 2031.</text></paragraph></subsection><subsection id="HA486F51925C2409984314383C316BE6E"><enum>(c)</enum><header>Limitation</header><text display-inline="yes-display-inline">The Secretary shall not enter into, pursuant to this section—</text><paragraph id="idE372F434A6C4462E8406CCBB9B5EF5F2"><enum>(1)</enum><text display-inline="yes-display-inline">any loan agreement that may result in a disbursement after September 30, 2031; or </text></paragraph><paragraph id="id9ABBF290ADFD4088A7549D84B847AFAF"><enum>(2)</enum><text display-inline="yes-display-inline">any grant agreement that may result in any outlay after September 30, 2031.</text></paragraph></subsection></section><section id="H39884E317F1B421DB4D2AC81784E5D33"><enum>22003.</enum><header>Biofuel infrastructure and agriculture product market expansion</header><text display-inline="no-display-inline">Section 9003 of the Farm Security and Rural Investment Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/7/8103">7 U.S.C. 8103</external-xref>) (as amended by <external-xref legal-doc="usc" parsable-cite="usc/26/22001">section 22001)</external-xref> is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idBDF46E3198574553B37407785F2B21EC" changed="added" reported-display-style="italic"><subsection id="HF7BDBBEAB36B43B389054B88D1A308FA"><enum>(i)</enum><header>Biofuel infrastructure and agriculture product market expansion</header><paragraph id="id0218EAC2624B4955BF2C40E7C91DDFD8"><enum>(1)</enum><header>Appropriation</header><text>Notwithstanding subsections (a) through (e) and subsection (g), in addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $500,000,000, to remain available until September 30, 2031, to carry out this subsection.</text></paragraph><paragraph id="H628FBBE5A3AF43E8A264EC9D0203956D" commented="no"><enum>(2)</enum><header>Use of funds</header><text display-inline="yes-display-inline">The Secretary shall use the amounts made available by paragraph (1) to provide grants, for which the Federal share shall be not more than 75 percent of the total cost of carrying out a project for which the grant is provided, on a competitive basis, to increase the sale and use of agricultural commodity-based fuels through infrastructure improvements for blending, storing, supplying, or distributing biofuels, except for transportation infrastructure not on location where such biofuels are blended, stored, supplied, or distributed—</text><subparagraph id="H62F98EBAF0204EA79DA428BA798CBF2D" commented="no"><enum>(A)</enum><text display-inline="yes-display-inline">by installing, retrofitting, or otherwise upgrading fuel dispensers or pumps and related equipment, storage tank system components, and other infrastructure required at a location related to dispensing certain biofuel blends to ensure the increased sales of fuels with high levels of commodity-based ethanol and biodiesel that are at or greater than the levels required in the Notice of Funding Availability for the Higher Blends Infrastructure Incentive Program for Fiscal Year 2020, published in the Federal Register (85 Fed. Reg. 26656), as determined by the Secretary; and</text></subparagraph><subparagraph id="H2A3780A31F8D4CB9A2DDCA0455EA6A3E" commented="no"><enum>(B)</enum><text display-inline="yes-display-inline">by building and retrofitting home heating oil distribution centers or equivalent entities and distribution systems for ethanol and biodiesel blends.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="H7AE2298C632B454AA907CFBC10746D2A"><enum>22004.</enum><header>USDA assistance for rural electric cooperatives</header><text display-inline="no-display-inline">Section 9003 of the Farm Security and Rural Investment Act of 2002 (<external-xref legal-doc="usc" parsable-cite="usc/7/8103">7 U.S.C. 8103</external-xref>) (as amended by <external-xref legal-doc="usc" parsable-cite="usc/26/22003">section 22003)</external-xref> is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id8D8933283249487092A1458F41C15C2B" changed="added" reported-display-style="italic"><subsection id="H273B142CA5AA47D999DD51AF0163775D"><enum>(j)</enum><header>USDA assistance for rural electric cooperatives</header><paragraph id="id10743B85B6E947BAB5DE408A117AA762"><enum>(1)</enum><header>Appropriation</header><text display-inline="yes-display-inline">Notwithstanding subsections (a) through (e) and (g), in addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $9,700,000,000, to remain available until September 30, 2031, for the long-term resiliency, reliability, and affordability of rural electric systems by providing to an eligible entity (defined as an electric cooperative described in section 501(c)(12) or 1381(a)(2) of the Internal Revenue Code of 1986 and is or has been a Rural Utilities Service electric loan borrower pursuant to the Rural Electrification Act of 1936 or serving a predominantly rural area or a wholly or jointly owned subsidiary of such electric cooperative) loans, modifications of loans, the cost of loans and modifications, and other financial assistance to achieve the greatest reduction in carbon dioxide, methane, and nitrous oxide emissions associated with rural electric systems through the purchase of renewable energy, renewable energy systems, zero-emission systems, and carbon capture and storage systems, to deploy such systems, or to make energy efficiency improvements to electric generation and transmission systems of the eligible entity after the date of enactment of this subsection. </text></paragraph><paragraph id="H268A82A0199A4320895080C34E3473B3"><enum>(2)</enum><header>Limitation</header><text>No eligible entity may receive an amount equal to more than 10 percent of the total amount made available by this subsection.</text></paragraph><paragraph id="id9c8df9aa3a6045559e3a89316ebeb9f2"><enum>(3)</enum><header>Requirement</header><text>The amount of a grant under this subsection shall be not more than 25 percent of the total project costs of the eligible entity carrying out a project using a grant under this subsection.</text></paragraph><paragraph id="HB09AC1B2275348CDB355F1EDF4782BBA"><enum>(4)</enum><header>Prohibition</header><text display-inline="yes-display-inline">Nothing in this subsection shall be interpreted to authorize funds of the Commodity Credit Corporation for activities under this subsection if such funds are not expressly authorized or currently expended for such purposes.</text></paragraph><paragraph id="id9b250ae9ba5d4faca4ddde3b9ddcccbb"><enum>(5)</enum><header>Disbursements</header><text>The Secretary shall not enter into, pursuant to this subsection—</text><subparagraph id="idE9744A8E9B3343B4B2BEB97AEB8C690D"><enum>(A)</enum><text>any loan agreement that may result in a disbursement after September 30, 2031; or </text></subparagraph><subparagraph id="idF0F87D8730EE4ADC9DF4E75B29B5D455"><enum>(B)</enum><text>any grant agreement that may result in any outlay after September 30, 2031.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="H4614CDAF2E174406A04BC09A3E2FFD5A"><enum>22005.</enum><header>Additional USDA rural development administrative funds</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available until September 30, 2031, for administrative costs and salaries and expenses for the Rural Development mission area and administrative costs of the agencies and offices of the Department for costs related to implementing this subtitle. </text></section><section id="id22e42003826540859b2ed5b81d7254b1"><enum>22006.</enum><header>Farm loan immediate relief for borrowers with at-risk agricultural operations</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of amounts in the Treasury not otherwise appropriated, $3,100,000,000, to remain available until September 30, 2031, to provide payments to, for the cost of loans or loan modifications for, or to carry out section 331(b)(4) of the Consolidated Farm and Rural Development Act (<external-xref legal-doc="usc" parsable-cite="usc/7/1981">7 U.S.C. 1981(b)(4)</external-xref>) with respect to distressed borrowers of direct or guaranteed loans administered by the Farm Service Agency under subtitle A, B, or C of that Act (7 U.S.C. 1922 through 1970). In carrying out this section, the Secretary shall provide relief to those borrowers whose agricultural operations are at financial risk as expeditiously as possible, as determined by the Secretary. </text></section><section id="id812c5aea99854b7ca268ce330a9b66ae"><enum>22007.</enum><header>USDA assistance and support for underserved farmers, ranchers, and foresters</header><text display-inline="no-display-inline">Section 1006 of the American Rescue Plan Act of 2021 (<external-xref legal-doc="usc" parsable-cite="usc/7/2279">7 U.S.C. 2279</external-xref> note; <external-xref legal-doc="public-law" parsable-cite="pl/117/2">Public Law 117–2</external-xref>) is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id5d030c7957064062836e830ac8348be4" changed="added" reported-display-style="italic"><section id="idd24de8a2deaa4691a80f30fe5c8a1d01"><enum>1006.</enum><header>USDA assistance and support for underserved farmers, ranchers, foresters</header><subsection id="id4d49fed7cd524acb9fb1a1e29612c22a"><enum>(a)</enum><header>Technical and other assistance</header><text>In addition to amounts otherwise available, there is appropriated to the Secretary of Agriculture for fiscal year 2022, to remain available until September 30, 2031, out of any money in the Treasury not otherwise appropriated, $125,000,000 to provide outreach, mediation, financial training, capacity building training, cooperative development and agricultural credit training and support, and other technical assistance on issues concerning food, agriculture, agricultural credit, agricultural extension, rural development, or nutrition to underserved farmers, ranchers, or forest landowners, including veterans, limited resource producers, beginning farmers and ranchers, and farmers, ranchers, and forest landowners living in high poverty areas. </text></subsection><subsection id="id03e2277437564f23b86dea5fe8827789"><enum>(b)</enum><header>Land loss assistance</header><text>In addition to amounts otherwise available, there is appropriated to the Secretary of Agriculture for fiscal year 2022, to remain available until September 30, 2031, out of any money in the Treasury not otherwise appropriated, $250,000,000 to provide grants and loans to eligible entities, as determined by the Secretary, to improve land access (including heirs’ property and fractionated land issues) for underserved farmers, ranchers, and forest landowners, including veterans, limited resource producers, beginning farmers and ranchers, and farmers, ranchers, and forest landowners living in high poverty areas.</text></subsection><subsection id="idf13e9a9702024934b22a05b5ab598aff"><enum>(c)</enum><header>Equity commissions</header><text>In addition to amounts otherwise available, there is appropriated to the Secretary of Agriculture for fiscal year 2022, to remain available until September 30, 2031, out of any money in the Treasury not otherwise appropriated, $10,000,000 to fund the activities of one or more equity commissions that will address racial equity issues within the Department of Agriculture and the programs of the Department of Agriculture.</text></subsection><subsection id="id761411deb8024b409e6c122c24c86533"><enum>(d)</enum><header>Research, education, and extension</header><text>In addition to amounts otherwise available, there is appropriated to the Secretary of Agriculture for fiscal year 2022, to remain available until September 30, 2031, out of any money in the Treasury not otherwise appropriated, $250,000,000 to support and supplement agricultural research, education, and extension, as well as scholarships and programs that provide internships and pathways to agricultural sector or Federal employment, for 1890 Institutions (as defined in section 2 of the Agricultural, Research, Extension, and Education Reform Act of 1998 (<external-xref legal-doc="usc" parsable-cite="usc/7/7601">7 U.S.C. 7601</external-xref>)), 1994 Institutions (as defined in section 532 of the Equity in Educational Land-Grant Status Act of 1994 (<external-xref legal-doc="usc" parsable-cite="usc/7/301">7 U.S.C. 301</external-xref> note; <external-xref legal-doc="public-law" parsable-cite="pl/103/382">Public Law 103–382</external-xref>)), Alaska Native serving institutions and Native Hawaiian serving institutions eligible to receive grants under subsections (a) and (b), respectively, of section 1419B of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (<external-xref legal-doc="usc" parsable-cite="usc/7/3156">7 U.S.C. 3156</external-xref>), Hispanic-serving institutions eligible to receive grants under section 1455 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (<external-xref legal-doc="usc" parsable-cite="usc/7/3241">7 U.S.C. 3241</external-xref>), and the insular area institutions of higher education located in the territories of the United States, as referred to in section 1489 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (<external-xref legal-doc="usc" parsable-cite="usc/7/3361">7 U.S.C. 3361</external-xref>).</text></subsection><subsection id="id30ae3a6e5658445d86d224de587d182b"><enum>(e)</enum><header>Discrimination financial assistance</header><text>In addition to amounts otherwise available, there is appropriated to the Secretary of Agriculture for fiscal year 2022, to remain available until September 30, 2031, out of any money in the Treasury not otherwise appropriated, $2,200,000,000 for a program to provide financial assistance, including the cost of any financial assistance, to farmers, ranchers, or forest landowners determined to have experienced discrimination prior to January 1, 2021, in Department of Agriculture farm lending programs, under which the amount of financial assistance provided to a recipient may be not more than $500,000, as determined to be appropriate based on any consequences experienced from the discrimination, which program shall be administered through 1 or more qualified nongovernmental entities selected by the Secretary subject to standards set and enforced by the Secretary.</text></subsection><subsection id="id6a27bd04627643499296b6d4065de45e"><enum>(f)</enum><header>Administrative costs</header><text>In addition to amounts otherwise available, there is appropriated to the Secretary of Agriculture for fiscal year 2022, to remain available until September 30, 2031, out of any money in the Treasury not otherwise appropriated, $24,000,000 for administrative costs, including training employees, of the agencies and offices of the Department of Agriculture to carry out this section.</text></subsection><subsection id="idf41363497e2e4eb488ca264a7b989b16"><enum>(g)</enum><header>Limitation</header><text>The funds made available under this section are subject to the condition that the Secretary shall not—</text><paragraph id="idcd75c128f6d74d89a4be6011c50add94"><enum>(1)</enum><text>enter into any agreement under which any payment could be outlaid or funds disbursed after September 30, 2031; or</text></paragraph><paragraph id="ida399fefb2a2e4668bd34dde39db31082"><enum>(2)</enum><text>use any other funds available to the Secretary to satisfy obligations initially made under this section.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="id4813224b2d424d8ea5379a2e4fbaaf44"><enum>22008.</enum><header>Repeal of farm loan assistance</header><text display-inline="no-display-inline">Section 1005 of the American Rescue Plan Act of 2021 (<external-xref legal-doc="usc" parsable-cite="usc/7/1921">7 U.S.C. 1921</external-xref> note; <external-xref legal-doc="public-law" parsable-cite="pl/117/2">Public Law 117–2</external-xref>) is repealed. </text></section></subtitle><subtitle id="HA8520CBBB16C4E5586594A86BF9DF372"><enum>D</enum><header>Forestry</header><section id="HFE348384E8D6487AB404FB91B552A28F"><enum>23001.</enum><header>National forest system restoration and fuels reduction projects</header><subsection id="H5194AF33C1C64F25B1CC082D471EEC7A"><enum>(a)</enum><header>Appropriations</header><text>In addition to amounts otherwise available, there are appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2031—</text><paragraph id="HC494F9698B4E45BAA3663B637169623D"><enum>(1)</enum><text>$1,800,000,000 for hazardous fuels reduction projects on National Forest System land within the wildland-urban interface;</text></paragraph><paragraph id="HA2DDB2CD503941BFAF350520C1C6D807"><enum>(2)</enum><text>$200,000,000 for vegetation management projects on National Forest System land carried out in accordance with a plan developed under section 303(d)(1) or 304(a)(3) of the Healthy Forests Restoration Act of 2003 (<external-xref legal-doc="usc" parsable-cite="usc/16/6542">16 U.S.C. 6542(d)(1)</external-xref> or 6543(a)(3));</text></paragraph><paragraph id="HF14CDE9330524E35A693E30B5A163401"><enum>(3)</enum><text display-inline="yes-display-inline">$100,000,000 to provide for environmental reviews by the Chief of the Forest Service in satisfying the obligations of the Chief of the Forest Service under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 through 4370m–12); and</text></paragraph><paragraph id="idc027f15be3134b6197d3a087ed42cbcc"><enum>(4)</enum><text>$50,000,000 for the protection of old-growth forests on National Forest System land and to complete an inventory of old-growth forests and mature forests within the National Forest System.</text></paragraph></subsection><subsection id="H7FAD172B229D4E44969BE37EE8F2FCCB"><enum>(b)</enum><header>Restrictions</header><text>None of the funds made available by paragraph (1) or (2) of subsection (a) may be used for any activity—</text><paragraph id="HF3432375EC02450A8DC6B398711BB4CA"><enum>(1)</enum><text>conducted in a wilderness area or wilderness study area;</text></paragraph><paragraph id="HFD059D740D734371AB2A83D8874850A5"><enum>(2)</enum><text>that includes the construction of a permanent road or motorized trail;</text></paragraph><paragraph id="H48B6784FA6FD44B9B26E1CB4A99FDFB8"><enum>(3)</enum><text>that includes the construction of a temporary road, except in the case of a temporary road that is decommissioned by the Secretary not later than 3 years after the earlier of—</text><subparagraph id="H826CC8FE87BE4B8580EE4ACA5E0624CC"><enum>(A)</enum><text>the date on which the temporary road is no longer needed; and</text></subparagraph><subparagraph id="H69AF502795A341789EF7ED04FF3FAA99"><enum>(B)</enum><text>the date on which the project for which the temporary road was constructed is completed;</text></subparagraph></paragraph><paragraph id="HEC76E411028E493EAB9B11718DA7A9C2"><enum>(4)</enum><text>inconsistent with the applicable land management plan;</text></paragraph><paragraph id="H5E29131C148241B19EF6272EC9444F6F"><enum>(5)</enum><text>inconsistent with the prohibitions of the rule of the Forest Service entitled <quote>Special Areas; Roadless Area Conservation</quote> (66 Fed. Reg. 3244 (January 12, 2001)), as modified by subparts C and D of part 294 of title 36, Code of Federal Regulations; or</text></paragraph><paragraph id="HA4E5DC2F6F5841218B42CFEA3158E045"><enum>(6)</enum><text>carried out on any land that is not National Forest System land, including other forested land on Federal, State, Tribal, or private land.</text></paragraph></subsection><subsection id="H8E7322AA75004B3FB497A407531D1FE7"><enum>(c)</enum><header>Limitations</header><text>Nothing in this section shall be interpreted to authorize funds of the Commodity Credit Corporation for activities under this section if such funds are not expressly authorized or currently expended for such purposes.</text></subsection><subsection id="H79B9DD576926487FB3BEA77AE9BD0612"><enum>(d)</enum><header>Cost-sharing waiver</header><paragraph id="id1B6B613B554742A78C664831E94BFB36"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The non-Federal cost-share requirement of a project described in paragraph (2) may be waived at the discretion of the Secretary.</text></paragraph><paragraph id="id868FD6ED4B05407A9B5F3AAF3D0F155C"><enum>(2)</enum><header>Project described</header><text display-inline="yes-display-inline">A project referred to in paragraph (1) is a project that—</text><subparagraph id="id39ECBEFBB8CD4F008750FC44BB9A2CE8"><enum>(A)</enum><text display-inline="yes-display-inline">is carried out using funds made available under this section;</text></subparagraph><subparagraph id="id1F8226EDE4D5413797493E7C2298D073"><enum>(B)</enum><text display-inline="yes-display-inline">requires a partnership agreement, including a cooperative agreement or mutual interest agreement; and</text></subparagraph><subparagraph id="idB164153593D34AD99B328F78CB2A02F1"><enum>(C)</enum><text display-inline="yes-display-inline">is subject to a non-Federal cost-share requirement.</text></subparagraph></paragraph></subsection><subsection id="H203B5084D1684555A92E1382CDB09D7E"><enum>(e)</enum><header>Definitions</header><text>In this section:</text><paragraph id="H13F66382E03D4229800D5ECD43085BEF"><enum>(1)</enum><header>Decommission</header><text>The term <term>decommission</term> means, with respect to a road—</text><subparagraph id="H6487EBCD85484CB9B87FB6BEDE09DD4E"><enum>(A)</enum><text>reestablishing native vegetation on the road;</text></subparagraph><subparagraph id="H954EF73DA64B46D3BCBB4D1C74092DF2"><enum>(B)</enum><text>restoring any natural drainage, watershed function, or other ecological processes that were disrupted or adversely impacted by the road by removing or hydrologically disconnecting the road prism and reestablishing stable slope contours; and</text></subparagraph><subparagraph id="HB877535BBD9F4C48B18D4BA47C0C7CCD"><enum>(C)</enum><text>effectively blocking the road to vehicular traffic, where feasible.</text></subparagraph></paragraph><paragraph id="H27F70BE3D10F4C8D93B61F0080DF8F26"><enum>(2)</enum><header>Ecological integrity</header><text>The term <term>ecological integrity</term> has the meaning given the term in section 219.19 of title 36, Code of Federal Regulations (as in effect on the date of enactment of this Act).</text></paragraph><paragraph id="H15A976D6021E45BEBB6D9DC5BFFCEFDA"><enum>(3)</enum><header>Hazardous fuels reduction project</header><text>The term <term>hazardous fuels reduction project</term> means an activity, including the use of prescribed fire, to protect structures and communities from wildfire that is carried out on National Forest System land.</text></paragraph><paragraph id="H4DC593E4139446AFA9412AFDED7D4AB6"><enum>(4)</enum><header>Restoration</header><text>The term <term>restoration</term> has the meaning given the term in section 219.19 of title 36, Code of Federal Regulations (as in effect on the date of enactment of this Act).</text></paragraph><paragraph id="H4777D787A5F148179351A96F78DF669F"><enum>(5)</enum><header>Vegetation management project</header><text>The term <term>vegetation management project</term> means an activity carried out on National Forest System land to enhance the ecological integrity and achieve the restoration of a forest ecosystem through the removal of vegetation, the use of prescribed fire, the restoration of aquatic habitat, or the decommissioning of an unauthorized, temporary, or system road.</text></paragraph><paragraph id="HB21C52C3275F4138914A0705B9A5884D"><enum>(6)</enum><header>Wildland-urban interface</header><text display-inline="yes-display-inline">The term <term>wildland-urban interface</term> has the meaning given the term in section 101 of the Healthy Forests Restoration Act of 2003 (<external-xref legal-doc="usc" parsable-cite="usc/16/6511">16 U.S.C. 6511</external-xref>). </text></paragraph></subsection></section><section id="H072F1F00A3DD40168224FC5881C48947"><enum>23002.</enum><header>Competitive grants for non-Federal forest landowners</header><subsection id="H428A796E5159406BBB0D2D1E1A6615BB"><enum>(a)</enum><header>Appropriations</header><text>In addition to amounts otherwise available, there are appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2031—</text><paragraph id="H2E7FA4F244524855B85264BC2A51CBAB"><enum>(1)</enum><text>$150,000,000 for the competitive grant program under section 13A of the Cooperative Forestry Assistance Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2109a">16 U.S.C. 2109a</external-xref>) for providing through that program a cost share to carry out climate mitigation or forest resilience practices in the case of underserved forest landowners, subject to the condition that subsection (h) of that section shall not apply;</text></paragraph><paragraph id="H312EAB63A67649BFA38CDBD77CA67839"><enum>(2)</enum><text>$150,000,000 for the competitive grant program under section 13A of the Cooperative Forestry Assistance Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2109a">16 U.S.C. 2109a</external-xref>) for providing through that program grants to support the participation of underserved forest landowners in emerging private markets for climate mitigation or forest resilience, subject to the condition that subsection (h) of that section shall not apply;</text></paragraph><paragraph id="H7F8CB5625DFD4F7F99DEE6E01B2664EF"><enum>(3)</enum><text>$100,000,000 for the competitive grant program under section 13A of the Cooperative Forestry Assistance Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2109a">16 U.S.C. 2109a</external-xref>) for providing through that program grants to support the participation of forest landowners who own less than 2,500 acres of forest land in emerging private markets for climate mitigation or forest resilience, subject to the condition that subsection (h) of that section shall not apply;</text></paragraph><paragraph id="HABC2AE30DF4B432EB0689095190126B4"><enum>(4)</enum><text>$50,000,000 for the competitive grant program under section 13A of the Cooperative Forestry Assistance Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2109a">16 U.S.C. 2109a</external-xref>) to provide grants to states and other eligible entities to provide payments to owners of private forest land for implementation of forestry practices on private forest land, that are determined by the Secretary, based on the best available science, to provide measurable increases in carbon sequestration and storage beyond customary practices on comparable land, subject to the conditions that—</text><subparagraph id="H6996235793254606B7F50C5FDF73A3C4"><enum>(A)</enum><text>those payments shall not preclude landowners from participation in other public and private sector financial incentive programs; and</text></subparagraph><subparagraph id="HCFF75D3DA6444A18BE1D9376B15A00BC"><enum>(B)</enum><text>subsection (h) of that section shall not apply; and</text></subparagraph></paragraph><paragraph id="H09E181C5998648B4BF22D4BA145192CB"><enum>(5)</enum><text>$100,000,000 to provide grants under the wood innovation grant program under section 8643 of the Agriculture Improvement Act of 2018 (<external-xref legal-doc="usc" parsable-cite="usc/7/7655d">7 U.S.C. 7655d</external-xref>), including for the construction of new facilities that advance the purposes of the program and for the hauling of material removed to reduce hazardous fuels to locations where that material can be utilized, subject to the conditions that—</text><subparagraph id="id30BB42FADC08433FA7F7EEBDCF6E56B7"><enum>(A)</enum><text>the amount of such a grant shall be not more than $5,000,000; and</text></subparagraph><subparagraph id="idAD7B678C688E4F7C9456CC07E2D4AC03"><enum>(B)</enum><text>notwithstanding subsection (d) of that section, a recipient of such a grant shall provide funds equal to not less than 50 percent of the amount received under the grant, to be derived from non-Federal sources.</text></subparagraph></paragraph></subsection><subsection id="HE5F4A8E2C349471CA53E1A991F79B030" commented="no"><enum>(b)</enum><header>Cost-sharing requirement</header><text display-inline="yes-display-inline">Any partnership agreements, including cooperative agreements and mutual interest agreements, using funds made available under this section shall be subject to a non-Federal cost-share requirement of not less than 20 percent of the project cost, which may be waived at the discretion of the Secretary. </text></subsection><subsection id="H0AAB3EFEBD3B4FAE992196F718194F3F"><enum>(c)</enum><header>Limitations</header><text>Nothing in this section shall be interpreted to authorize funds of the Commodity Credit Corporation for activities under this section if such funds are not expressly authorized or currently expended for such purposes.</text></subsection></section><section id="H9DC8C5DD83764BFDB7EB9063DEF877F9"><enum>23003.</enum><header>State and private forestry conservation programs</header><subsection id="HFA8B3EBF0D03406F8204D84B1A855CF8"><enum>(a)</enum><header>Appropriations</header><text>In addition to amounts otherwise available, there are appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2031—</text><paragraph id="H2A10160DA50446118CF0B7F37F808294" commented="no"><enum>(1)</enum><text display-inline="yes-display-inline">$700,000,000 to provide competitive grants to States through the Forest Legacy Program established under section 7 of the Cooperative Forestry Assistance Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2103c">16 U.S.C. 2103c</external-xref>) for projects for the acquisition of land and interests in land; and</text></paragraph><paragraph id="H94C89F97173A4C4599BC1AFBE92B86C8"><enum>(2)</enum><text>$1,500,000,000 to provide multiyear, programmatic, competitive grants to a State agency, a local governmental entity, an agency or governmental entity of the District of Columbia, an agency or governmental entity of an insular area (as defined in section 1404 of the National Agricultural Research, Extension, and Teaching Policy Act of 1977 (<external-xref legal-doc="usc" parsable-cite="usc/7/3103">7 U.S.C. 3103</external-xref>)), an Indian Tribe, or a nonprofit organization through the Urban and Community Forestry Assistance program established under section 9(c) of the Cooperative Forestry Assistance Act of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/16/2105">16 U.S.C. 2105(c)</external-xref>) for tree planting and related activities. </text></paragraph></subsection><subsection id="H9EFD89F9D9C2450885EEB0A0A6F77D94" commented="no"><enum>(b)</enum><header>Waiver</header><text display-inline="yes-display-inline">Any non-Federal cost-share requirement otherwise applicable to projects carried out under this section may be waived at the discretion of the Secretary.</text></subsection></section><section id="H3654F7FFD3634342BBCCB6133401071F"><enum>23004.</enum><header>Limitation</header><text display-inline="no-display-inline">The funds made available under this subtitle are subject to the condition that the Secretary shall not—</text><paragraph id="H5B7979EAF3534BBCB8CC4C1F4662194F"><enum>(1)</enum><text>enter into any agreement—</text><subparagraph id="H2243DF8E5C244241AC5D4E140CB43106"><enum>(A)</enum><text>that is for a term extending beyond September 30, 2031; or</text></subparagraph><subparagraph id="H43D8B4F0AA904A3EA5C2AA49514140D7"><enum>(B)</enum><text>under which any payment could be outlaid or funds disbursed after September 30, 2031; or</text></subparagraph></paragraph><paragraph id="H860FFE98EF654DE497B05DE821A66C4B"><enum>(2)</enum><text>use any other funds available to the Secretary to satisfy obligations initially made under this subtitle.</text></paragraph></section><section id="H508E6515E9E84205BF46BEB57CD73E1C" commented="no"><enum>23005.</enum><header>Administrative costs</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $100,000,000 to remain available until September 30, 2031, for administrative costs of the agencies and offices of the Department of Agriculture for costs related to implementing this subtitle. </text></section></subtitle><enum>III</enum><header>Committee on Banking, Housing, and Urban Affairs</header><section id="id2caf492b2cc24d7680e33e4778813bae"><enum>30001.</enum><header>Enhanced use of Defense Production Act of 1950</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $500,000,000, to remain available until September 30, 2024, to carry out the Defense Production Act of 1950 (<external-xref legal-doc="usc" parsable-cite="usc/50/4501">50 U.S.C. 4501 et seq.</external-xref>).</text></section><section id="id9525ce5f83b94b2abbae4de6b9258d10"><enum>30002.</enum><header>Improving energy efficiency or water efficiency or climate resilience of affordable housing</header><subsection id="id42a09ce1b638495e8cdc3dc578edb3ad"><enum>(a)</enum><header>Appropriation</header><text>In addition to amounts otherwise available, there is appropriated to the Secretary of Housing and Urban Development (in this section referred to as the <quote>Secretary</quote>) for fiscal year 2022, out of any money in the Treasury not otherwise appropriated—</text><paragraph id="id6d3d6229dd734997a5f9c4542f19d094"><enum>(1)</enum><text>$837,500,000, to remain available until September 30, 2028, for the cost of providing direct loans, the costs of modifying such loans, and for grants, as provided for and subject to terms and conditions in subsection (b), including to subsidize gross obligations for the principal amount of such loans, not to exceed $4,000,000,000, to fund projects that improve energy or water efficiency, enhance indoor air quality or sustainability, implement the use of zero-emission electricity generation, low-emission building materials or processes, energy storage, or building electrification strategies, or address climate resilience, of an eligible property;</text></paragraph><paragraph id="idaf8cbc60c409460aab1a1bd51d2e6e89"><enum>(2)</enum><text>$60,000,000, to remain available until September 30, 2030, for the costs to the Secretary for information technology, research and evaluation, and administering and overseeing the implementation of this section;</text></paragraph><paragraph id="id56dd92240e514129a7b20ed5f1828117"><enum>(3)</enum><text>$60,000,000, to remain available until September 30, 2029, for expenses of contracts or cooperative agreements administered by the Secretary; and</text></paragraph><paragraph id="id1cad7d3af2cf4f23ac63b52396ba2d34"><enum>(4)</enum><text>$42,500,000, to remain available until September 30, 2028, for energy and water benchmarking of properties eligible to receive grants or loans under this section, regardless of whether they actually received such grants or loans, along with associated data analysis and evaluation at the property and portfolio level, and the development of information technology systems necessary for the collection, evaluation, and analysis of such data.</text></paragraph></subsection><subsection id="id52d082242da745cc860af47af41f8b8a"><enum>(b)</enum><header>Loan and grant terms and conditions</header><text>Amounts made available under this section shall be for direct loans, grants, and direct loans that can be converted to grants to eligible recipients that agree to an extended period of affordability for the property.</text></subsection><subsection id="id01a95eb8310e46768b35beb676b4411e"><enum>(c)</enum><header>Definitions</header><text>As used in this section—</text><paragraph id="id83750c7473ae42518a08a208dd7f5575"><enum>(1)</enum><text>the term <term>eligible recipient</term> means any owner or sponsor of an eligible property; and</text></paragraph><paragraph id="id5aed7bc60da844b883abcfe48826dc87"><enum>(2)</enum><text>the term <term>eligible property</term> means a property assisted pursuant to—</text><subparagraph id="idd1f82bfd0ffb4b1abef0526162c21674"><enum>(A)</enum><text>section 202 of the Housing Act of 1959 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701q">12 U.S.C. 1701q</external-xref>);</text></subparagraph><subparagraph id="id233cee7552004be1acf536e7212d1a09"><enum>(B)</enum><text>section 202 of the Housing Act of 1959 (former <external-xref legal-doc="usc" parsable-cite="usc/12/1701q">12 U.S.C. 1701q</external-xref>), as such section existed before the enactment of the Cranston-Gonzalez National Affordable Housing Act;</text></subparagraph><subparagraph id="id5f1d9dc661e443599b98ab16f3769950"><enum>(C)</enum><text>section 811 of the Cranston-Gonzalez National Affordable Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/42/8013">42 U.S.C. 8013</external-xref>);</text></subparagraph><subparagraph id="id2a99affc99504b80b75af96ab7e3b557"><enum>(D)</enum><text>section 8(b) of the United States Housing Act of 1937 (<external-xref legal-doc="usc" parsable-cite="usc/42/1437f">42 U.S.C. 1437f(b)</external-xref>);</text></subparagraph><subparagraph id="id09b7ed92cda84561be74f6a5782a281e"><enum>(E)</enum><text>section 236 of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-1">12 U.S.C. 1715z–1</external-xref>); or</text></subparagraph><subparagraph id="id4c23e792ea564698b834e11d39a7d8a9"><enum>(F)</enum><text>a Housing Assistance Payments contract for Project-Based Rental Assistance in fiscal year 2021.</text></subparagraph></paragraph></subsection><subsection id="idd8a552cf3cfe48fc9b50d7d4971569f0"><enum>(d)</enum><header>Waiver</header><text>The Secretary may waive or specify alternative requirements for any provision of subsection (c) or (bb) of section 8 of the United States Housing Act of 1937 (<external-xref legal-doc="usc" parsable-cite="usc/42/1437f">42 U.S.C. 1437f(c)</external-xref>, 1437f(bb)) upon a finding that the waiver or alternative requirement is necessary to facilitate the use of amounts made available under this section.</text></subsection><subsection id="iddc55a9d8bedd47ba96936a285e1db455"><enum>(e)</enum><header>Implementation</header><text>The Secretary shall have the authority to establish by notice any requirements that the Secretary determines are necessary for timely and effective implementation of the program and expenditure of funds appropriated, which requirements shall take effect upon issuance. </text></subsection></section><enum>IV</enum><header>Committee on Commerce, Science, and Transportation</header><section id="id29A8783A75A8496A85E289327B5A5F93"><enum>40001.</enum><header>Investing in coastal communities and climate resilience</header><subsection id="id4c73d6f06aac4c368f3e6b97122935bc"><enum>(a)</enum><header>In general</header><text>In addition to amounts otherwise available, there is appropriated to the National Oceanic and Atmospheric Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $2,600,000,000, to remain available until September 30, 2026, to provide funding through direct expenditure, contracts, grants, cooperative agreements, or technical assistance to coastal states (as defined in paragraph (4) of section 304 of the Coastal Zone Management Act of 1972 (<external-xref legal-doc="usc" parsable-cite="usc/16/1453">16 U.S.C. 1453(4)</external-xref>)), the District of Columbia, Tribal Governments, nonprofit organizations, local governments, and institutions of higher education (as defined in subsection (a) of section 101 of the Higher Education Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/20/1001">20 U.S.C. 1001(a)</external-xref>)), for the conservation, restoration, and protection of coastal and marine habitats, resources, Pacific salmon and other marine fisheries, to enable coastal communities to prepare for extreme storms and other changing climate conditions, and for projects that support natural resources that sustain coastal and marine resource dependent communities, marine fishery and marine mammal stock assessments, and for related administrative expenses. </text></subsection><subsection id="idbdc628f2828c4ed5b805f5dea2c7028e"><enum>(b)</enum><header>Tribal government defined</header><text>In this section, the term <term>Tribal Government</term> means the recognized governing body of any Indian or Alaska Native tribe, band, nation, pueblo, village, community, component band, or component reservation, individually identified (including parenthetically) in the list published most recently as of the date of enactment of this subsection pursuant to section 104 of the Federally Recognized Indian Tribe List Act of 1994 (<external-xref legal-doc="usc" parsable-cite="usc/25/5131">25 U.S.C. 5131</external-xref>). </text></subsection></section><section id="id64FA1DAA48BC405DB33E9C312A551446"><enum>40002.</enum><header>Facilities of the national oceanic and atmospheric administration and national marine sanctuaries</header><subsection id="id15D5EA81804E4BD897EF38E13579D992"><enum>(a)</enum><header>National oceanic and atmospheric administration facilities</header><text>In addition to amounts otherwise available, there is appropriated to the National Oceanic and Atmospheric Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $150,000,000, to remain available until September 30, 2026, for the construction of new facilities, facilities in need of replacement, piers, marine operations facilities, and fisheries laboratories. </text></subsection><subsection id="id47f6af30c62f44f9829f5847f5a1d7be"><enum>(b)</enum><header>National marine sanctuaries facilities</header><text>In addition to amounts otherwise available, there is appropriated to the National Oceanic and Atmospheric Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $50,000,000, to remain available until September 30, 2026, for the construction of facilities to support the National Marine Sanctuary System established under subsection (c) of section 301 of the National Marine Sanctuaries Act (<external-xref legal-doc="usc" parsable-cite="usc/16/1431">16 U.S.C. 1431(c)</external-xref>). </text></subsection></section><section id="id66cb1aa2366d4710963eebe3b4eb40b8"><enum>40003.</enum><header>NOAA efficient and effective reviews</header><text display-inline="no-display-inline"> In addition to amounts otherwise available, there is appropriated to the National Oceanic and Atmospheric Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $20,000,000, to remain available until September 30, 2026, to conduct more efficient, accurate, and timely reviews for planning, permitting and approval processes through the hiring and training of personnel, and the purchase of technical and scientific services and new equipment, and to improve agency transparency, accountability, and public engagement.</text></section><section id="id68D41273AE93408BB6183192DFA41658"><enum>40004.</enum><header>Oceanic and atmospheric research and forecasting for weather and climate</header><subsection id="idA987D86B883E4D8CBD28654961CFFFAB"><enum>(a)</enum><header>Forecasting and research</header><text>In addition to amounts otherwise available, there is appropriated to the National Oceanic and Atmospheric Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $150,000,000, to remain available until September 30, 2026, to accelerate advances and improvements in research, observation systems, modeling, forecasting, assessments, and dissemination of information to the public as it pertains to ocean and atmospheric processes related to weather, coasts, oceans, and climate, and to carry out section 102(a) of the Weather Research and Forecasting Innovation Act of 2017 (<external-xref legal-doc="usc" parsable-cite="usc/15/8512">15 U.S.C. 8512(a)</external-xref>), and for related administrative expenses. </text></subsection><subsection id="id48459848b5b14407b86e87c407e43b8e"><enum>(b)</enum><header>Research grants and science information, products, and services</header><text>In addition to amounts otherwise available, there are appropriated to the National Oceanic and Atmospheric Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2026, $50,000,000 for competitive grants to fund climate research as it relates to weather, ocean, coastal, and atmospheric processes and conditions, and impacts to marine species and coastal habitat, and for related administrative expenses.</text></subsection></section><section id="id73f1513282da440fb92d6ff6e4a74b22"><enum>40005.</enum><header>Computing capacity and research for weather, oceans, and climate</header><text display-inline="no-display-inline"> In addition to amounts otherwise available, there is appropriated to the National Oceanic and Atmospheric Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $190,000,000, to remain available until September 30, 2026, for the procurement of additional high-performance computing, data processing capacity, data management, and storage assets, to carry out section 204(a)(2) of the High-Performance Computing Act of 1991 (<external-xref legal-doc="usc" parsable-cite="usc/15/5524">15 U.S.C. 5524(a)(2)</external-xref>), and for transaction agreements authorized under section 301(d)(1)(A) of the Weather Research and Forecasting Innovation Act of 2017 (<external-xref legal-doc="usc" parsable-cite="usc/15/8531">15 U.S.C. 8531(d)(1)(A)</external-xref>), and for related administrative expenses. </text></section><section id="id457ee42fce7e4bf0b8edf487275c0221"><enum>40006.</enum><header>Acquisition of hurricane forecasting aircraft</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated to the National Oceanic and Atmospheric Administration for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available until September 30, 2026, for the acquisition of hurricane hunter aircraft under section 413(a) of the Weather Research and Forecasting Innovation Act of 2017 (<external-xref legal-doc="usc" parsable-cite="usc/15/8549">15 U.S.C. 8549(a)</external-xref>). </text></section><section id="HAFEB5823531C44BA9AF1C8615B0E7616" section-type="subsequent-section"><enum>40007.</enum><header>Alternative fuel and low-emission aviation technology program</header><subsection id="HAB9194486BE74440A17AF2FA8FC92EC2"><enum>(a)</enum><header>Appropriation and establishment</header><text display-inline="yes-display-inline">For purposes of establishing a competitive grant program for eligible entities to carry out projects located in the United States that produce, transport, blend, or store sustainable aviation fuel, or develop, demonstrate, or apply low-emission aviation technologies, in addition to amounts otherwise available, there are appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2026—</text><paragraph id="HF2007782070244BD87D1B2716566356D"><enum>(1)</enum><text>$244,530,000 for projects relating to the production, transportation, blending, or storage of sustainable aviation fuel;</text></paragraph><paragraph id="HD1D0FEE791374EE4A83A991E51FB47DC"><enum>(2)</enum><text>$46,530,000 for projects relating to low-emission aviation technologies; and</text></paragraph><paragraph id="H7B6871B1A244432B9A86969353287DD1"><enum>(3)</enum><text display-inline="yes-display-inline">$5,940,000 to fund the award of grants under this section, and oversight of the program, by the Secretary.</text></paragraph></subsection><subsection id="H179532A8C89F4269AF3FA0491159B137"><enum>(b)</enum><header>Considerations</header><text>In carrying out subsection (a), the Secretary shall consider, with respect to a proposed project—</text><paragraph id="HB95DF6F7C5A64802AAE216F6779610E6"><enum>(1)</enum><text>the capacity for the eligible entity to increase the domestic production and deployment of sustainable aviation fuel or the use of low-emission aviation technologies among the United States commercial aviation and aerospace industry;</text></paragraph><paragraph id="H2EEB137888674EEC877DDED200196B4A"><enum>(2)</enum><text>the projected greenhouse gas emissions from such project, including emissions resulting from the development of the project, and the potential the project has to reduce or displace, on a lifecycle basis, United States greenhouse gas emissions associated with air travel;</text></paragraph><paragraph id="H73469B3124FD455DAF67001E96265514"><enum>(3)</enum><text>the capacity to create new jobs and develop supply chain partnerships in the United States;</text></paragraph><paragraph id="HE55F87C1DCB34A5C965C785C79932A60"><enum>(4)</enum><text>for projects related to the production of sustainable aviation fuel, the projected lifecycle greenhouse gas emissions benefits from the proposed project, which shall include feedstock and fuel production and potential direct and indirect greenhouse gas emissions (including resulting from changes in land use); and</text></paragraph><paragraph id="H88DDA46DCFF443CD84A95CD8146EB05D"><enum>(5)</enum><text>the benefits of ensuring a diversity of feedstocks for sustainable aviation fuel, including the use of waste carbon oxides and direct air capture.</text></paragraph></subsection><subsection id="H7C2A96612C6A441E8EC34CD4C99DD909"><enum>(c)</enum><header>Cost share</header><text display-inline="yes-display-inline">The Federal share of the cost of a project carried out using grant funds under subsection (a) shall be 75 percent of the total proposed cost of the project, except that such Federal share shall increase to 90 percent of the total proposed cost of the project if the eligible entity is a small hub airport or nonhub airport, as such terms are defined in section 47102 of title 49, United States Code. </text></subsection><subsection id="H3E5FBEDE2DE340E7AE6A23C90D924AC2"><enum>(d)</enum><header>Fuel emissions reduction test</header><text>For purposes of clause (ii) of subsection (e)(7)(E), the Secretary shall, not later than 2 years after the date of enactment of this section, adopt at least 1 methodology for testing lifecycle greenhouse gas emissions that meets the requirements of such clause.</text></subsection><subsection id="HE11159F1278C43AB9AF2233FC486487B"><enum>(e)</enum><header>Definitions</header><text>In this section:</text><paragraph id="H533395BC302C41E487F28C41AE2452BD"><enum>(1)</enum><header>Eligible entity</header><text>The term <term>eligible entity</term> means—</text><subparagraph id="HD82B12B6F2834748A9E64DAD4DCF5B5F"><enum>(A)</enum><text>a State or local government, including the District of Columbia, other than an airport sponsor;</text></subparagraph><subparagraph id="H7FEBBA2B731047439156E78CEBDB3DF4"><enum>(B)</enum><text>an air carrier;</text></subparagraph><subparagraph id="HAF8DF212DC8F427CA53B4B4949026940"><enum>(C)</enum><text>an airport sponsor;</text></subparagraph><subparagraph id="H929D624F9B954CFEB938F1272927636A"><enum>(D)</enum><text>an accredited institution of higher education;</text></subparagraph><subparagraph id="HC957F6436B344265A335BE788A0AD25E"><enum>(E)</enum><text>a research institution;</text></subparagraph><subparagraph id="H59C454101B44427C82C82E07759B824C"><enum>(F)</enum><text>a person or entity engaged in the production, transportation, blending, or storage of sustainable aviation fuel in the United States or feedstocks in the United States that could be used to produce sustainable aviation fuel;</text></subparagraph><subparagraph id="H428A808AA5B648648DF3E770E956DBF2"><enum>(G)</enum><text>a person or entity engaged in the development, demonstration, or application of low-emission aviation technologies; or</text></subparagraph><subparagraph id="HF92018A2180346118F951BB5AD7E6230"><enum>(H)</enum><text>nonprofit entities or nonprofit consortia with experience in sustainable aviation fuels, low-emission aviation technologies, or other clean transportation research programs.</text></subparagraph></paragraph><paragraph id="H744679C7CD974B2CAA12E512945DF520"><enum>(2)</enum><header>Feedstock</header><text>The term <term>feedstock</term> means sources of hydrogen and carbon not originating from unrefined or refined petrochemicals.</text></paragraph><paragraph id="H9E0BFCD3FCAF424EA1C58634EE70667F"><enum>(3)</enum><header>Induced land-use change values</header><text>The term <term>induced land-use change values</term> means the greenhouse gas emissions resulting from the conversion of land to the production of feedstocks and from the conversion of other land due to the displacement of crops or animals for which the original land was previously used.</text></paragraph><paragraph id="H5A080EBFBB39400E983C03B0E35D61BA"><enum>(4)</enum><header>Lifecycle greenhouse gas emissions</header><text>The term <term>lifecycle greenhouse gas emissions</term> means the combined greenhouse gas emissions from feedstock production, collection of feedstock, transportation of feedstock to fuel production facilities, conversion of feedstock to fuel, transportation and distribution of fuel, and fuel combustion in an aircraft engine, as well as from induced land-use change values.</text></paragraph><paragraph id="H8F4D94503878494D8F2DEA7DABFF4FB2"><enum>(5)</enum><header>Low-emission aviation technologies</header><text>The term <term>low-emission aviation technologies</term> means technologies, produced in the United States, that significantly—</text><subparagraph id="H1DDF5B0291924436BF11482F2C7A9D0D"><enum>(A)</enum><text>improve aircraft fuel efficiency;</text></subparagraph><subparagraph id="H34274CEFFA544D61B1DC7C44F6F80D98"><enum>(B)</enum><text>increase utilization of sustainable aviation fuel; or</text></subparagraph><subparagraph id="H8DB006B0D91A4A96A953CFD03F16CA4D"><enum>(C)</enum><text>reduce greenhouse gas emissions produced during operation of civil aircraft.</text></subparagraph></paragraph><paragraph id="H66B8AB2D9FA84AD0B54E2CBFCA77905C"><enum>(6)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Transportation.</text></paragraph><paragraph id="H7AA05627C18548F891884D0D560F3341"><enum>(7)</enum><header>Sustainable aviation fuel</header><text>The term <term>sustainable aviation fuel</term> means liquid fuel, produced in the United States, that—</text><subparagraph id="HC120C26650B84EFF99D2742C97CECC29"><enum>(A)</enum><text>consists of synthesized hydrocarbons;</text></subparagraph><subparagraph id="H6CF1729D7932404FAD6BA229BBA17055"><enum>(B)</enum><text>meets the requirements of—</text><clause id="HCE7275468E674F0EB0925F2B2B2CC5CA"><enum>(i)</enum><text>ASTM International Standard D7566; or</text></clause><clause id="H0F67C365BE23441BBBD21D62FE2C18A6"><enum>(ii)</enum><text>the co-processing provisions of ASTM International Standard D1655, Annex A1 (or such successor standard);</text></clause></subparagraph><subparagraph id="H279152710D884E1B9064755E5B71A001"><enum>(C)</enum><text display-inline="yes-display-inline">is derived from biomass (in a similar manner as such term is defined in <external-xref legal-doc="usc" parsable-cite="usc/26/45K">section 45K(c)(3)</external-xref> of the Internal Revenue Code of 1986), waste streams, renewable energy sources, or gaseous carbon oxides;</text></subparagraph><subparagraph id="H1CBF4FA3FFDF4792B4ADE98FCC5E92CF"><enum>(D)</enum><text>is not derived from palm fatty acid distillates; and</text></subparagraph><subparagraph id="H5F8CFBDCFFBF40B49E3FFC293E7639B1"><enum>(E)</enum><text>achieves at least a 50 percent lifecycle greenhouse gas emissions reduction in comparison with petroleum-based jet fuel, as determined by a test that shows—</text><clause id="H1B240FDCF0BA48918992F0F66EE71942"><enum>(i)</enum><text>the fuel production pathway achieves at least a 50 percent reduction of the aggregate attributional core lifecycle emissions and the induced land-use change values under a lifecycle methodology for sustainable aviation fuels similar to that adopted by the International Civil Aviation Organization with the agreement of the United States; or</text></clause><clause id="HE2B9FD06BB4D41D6BA99A663980267FF"><enum>(ii)</enum><text>the fuel production pathway achieves at least a 50 percent reduction of the aggregate attributional core lifecycle greenhouse gas emissions values and the induced land-use change values under another methodology that the Secretary determines is—</text><subclause id="H3C2F144017FF4C8D975A08583C4133A6"><enum>(I)</enum><text>reflective of the latest scientific understanding of lifecycle greenhouse gas emissions; and</text></subclause><subclause id="HAD03DC964ED04F1A982E4D069548E217" commented="no" display-inline="no-display-inline"><enum>(II)</enum><text>as stringent as the requirement under clause (i). </text></subclause></clause></subparagraph></paragraph></subsection></section><enum>V</enum><header>Committee on Energy and Natural Resources</header><subtitle id="id8e6cb6991dff49ceafc3c62628fc79f1"><enum>A</enum><header>Energy</header><part id="id00f4f098779746878597a7a70f26be4d"><enum>1</enum><header>General provisions</header><section id="idf04aa55f640b45e0988ec8fce011fd76"><enum>50111.</enum><header>Definitions</header><text display-inline="no-display-inline">In this subtitle:</text><paragraph id="id2640215ad16e4418addc931cf88b0068"><enum>(1)</enum><header>Greenhouse gas</header><text>The term <term>greenhouse gas</term> has the meaning given the term in section 1610(a) of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/13389">42 U.S.C. 13389(a)</external-xref>). </text></paragraph><paragraph id="id4108e51dbf1244688073faf6d446ff74"><enum>(2)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of Energy.</text></paragraph><paragraph id="id1f7316c7c3b3492a9413c759df993332"><enum>(3)</enum><header>State</header><text>The term <term>State</term> means a State, the District of Columbia, and a United States Insular Area (as that term is defined in section 50211).</text></paragraph><paragraph id="id0bdcd5eab3274130b0f06e60cf9b2ac6"><enum>(4)</enum><header>State energy office</header><text>The term <term>State energy office</term> has the meaning given the term in section 124(a) of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/15821">42 U.S.C. 15821(a)</external-xref>).</text></paragraph><paragraph id="idae158dd614404a949785fafbd8608b4a"><enum>(5)</enum><header>State energy program</header><text>The term <term>State Energy Program</term> means the State Energy Program established pursuant to part D of title III of the Energy Policy and Conservation Act (42 U.S.C. 6321 through 6326).</text></paragraph></section></part><part id="id74dadf5462404d40ba85458938c475d5"><enum>2</enum><header>Residential efficiency and electrification rebates</header><section id="id4f1e36464be04f6ca29e0fab9456b0a1"><enum>50121.</enum><header>Home energy performance-based, whole-house rebates</header><subsection id="id679c3a38811149af808ba90f6f5371fa"><enum>(a)</enum><header>Appropriation</header><paragraph id="idec824cd7a2ba42a19a6b8e4c2f382f44"><enum>(1)</enum><header>In general</header><text>In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $4,300,000,000, to remain available through September 30, 2031, to carry out a program to award grants to State energy offices to develop and implement a HOMES rebate program.</text></paragraph><paragraph id="idf99f158fea634ce6978f0a4192f7b13d"><enum>(2)</enum><header>Allocation of funds</header><subparagraph id="id0085b770b47240eb880eab91e338bf28"><enum>(A)</enum><header>In general</header><text>The Secretary shall reserve funds made available under paragraph (1) for each State energy office—</text><clause id="id2c9f90bb43f845e0b1eea9203f444c19"><enum>(i)</enum><text>in accordance with the allocation formula for the State Energy Program in effect on January 1, 2022; and</text></clause><clause id="id2a42f9236ef04ea6b5f57f0cc1fe8f7b"><enum>(ii)</enum><text>to be distributed to a State energy office if the application of the State energy office under subsection (b) is approved.</text></clause></subparagraph><subparagraph id="id7c3433a4c67f4013bc71c4a05ecc2baf"><enum>(B)</enum><header>Additional funds</header><text>Not earlier than 2 years after the date of enactment of this Act, any money reserved under subparagraph (A) but not distributed under clause (ii) of that subparagraph shall be redistributed to the State energy offices operating a HOMES rebate program using a grant received under this section in proportion to the amount distributed to those State energy offices under subparagraph (A)(ii).</text></subparagraph></paragraph><paragraph id="idd3c89e30c81b4c0d8307012392e2d138"><enum>(3)</enum><header>Administrative expenses</header><text>Of the funds made available under paragraph (1), the Secretary shall use not more than 3 percent for—</text><subparagraph id="id15ffb5ab3a294e80b0cef9eb3accce1b"><enum>(A)</enum><text>administrative purposes; and</text></subparagraph><subparagraph id="id5d227b2cc76a4be08105550a416c9294"><enum>(B)</enum><text>providing technical assistance relating to activities carried out under this section. </text></subparagraph></paragraph></subsection><subsection id="id077b786e22b44ceca3c860ff28062f52"><enum>(b)</enum><header>Application</header><text>A State energy office seeking a grant under this section shall submit to the Secretary an application that includes a plan to implement a HOMES rebate program, including a plan—</text><paragraph id="idde6d403731dd452789903dee19e59ed3"><enum>(1)</enum><text>to use procedures, as approved by the Secretary, for determining the reductions in home energy use resulting from the implementation of a home energy efficiency retrofit that are calibrated to historical energy usage for a home consistent with BPI 2400, for purposes of modeled performance home rebates;</text></paragraph><paragraph id="idb44c5914391e4507a9b31263b07eb6ca"><enum>(2)</enum><text>to use open-source advanced measurement and verification software, as approved by the Secretary, for determining and documenting the monthly and hourly (if available) weather-normalized energy use of a home before and after the implementation of a home energy efficiency retrofit, for purposes of measured performance home rebates;</text></paragraph><paragraph id="id6B381FDE08A1481691E1BE8D543BC88C"><enum>(3)</enum><text>to value savings based on time, location, or greenhouse gas emissions; </text></paragraph><paragraph id="id5b23178b9e8947838f90f2b538fe8507"><enum>(4)</enum><text>for quality monitoring to ensure that each home energy efficiency retrofit for which a rebate is provided is documented in a certificate that—</text><subparagraph id="id591f7aa3815941eeb517d53aae60bf38"><enum>(A)</enum><text>is provided by the contractor and certified by a third party to the homeowner; and</text></subparagraph><subparagraph id="idff5d0fdc83824c2f82bb168f7f8f9228"><enum>(B)</enum><text>details the work performed, the equipment and materials installed, and the projected energy savings or energy generation to support accurate valuation of the retrofit; </text></subparagraph></paragraph><paragraph id="id515524d94c8e44ecb3097bbeaad371fa"><enum>(5)</enum><text>to provide a contractor performing a home energy efficiency retrofit or an aggregator who has the right to claim a rebate $200 for each home located in a disadvantaged community that receives a home energy efficiency retrofit for which a rebate is provided under the program; and</text></paragraph><paragraph id="id102aa8fbdacc441a8e13e282e9a5f7da"><enum>(6)</enum><text>to ensure that a homeowner or aggregator does not receive a rebate for the same upgrade through both a HOMES rebate program and any other Federal grant or rebate program, pursuant to subsection (c)(7). </text></paragraph></subsection><subsection id="id6ddbf9ce1b504a77a51d3b7a9068e60b"><enum>(c)</enum><header>HOMES rebate program</header><paragraph id="id3f20bda8bf3744ed9415964aa713cea8"><enum>(1)</enum><header>In general</header><text>A HOMES rebate program carried out by a State energy office receiving a grant pursuant to this section shall provide rebates to homeowners and aggregators for whole-house energy saving retrofits begun on or after the date of enactment of this Act and completed by not later than September 30, 2031.</text></paragraph><paragraph id="idf4abf648fa3c47eaaacbe77a2f6304fd"><enum>(2)</enum><header>Amount of rebate</header><text>Subject to paragraph (3), under a HOMES rebate program, the amount of a rebate shall not exceed—</text><subparagraph id="idea61c2c7e80a4ff48e599c9ffea9ef72"><enum>(A)</enum><text>for individuals and aggregators carrying out energy efficiency upgrades of single-family homes—</text><clause id="id1b334cebe3de4ca3a930aacc3bd45f66"><enum>(i)</enum><text>in the case of a retrofit that achieves modeled energy system savings of not less than 20 percent but less than 35 percent, the lesser of—</text><subclause id="id5bdb68452ac841dc8f8c7561b679f5f8"><enum>(I)</enum><text>$2,000; and</text></subclause><subclause id="idd075759aa7b041a09fda58b882dadc17"><enum>(II)</enum><text>50 percent of the project cost;</text></subclause></clause><clause id="idb15278473d2a4fa4ad21e0f3bcd29aee"><enum>(ii)</enum><text>in the case of a retrofit that achieves modeled energy system savings of not less than 35 percent, the lesser of—</text><subclause id="idf824dcea3ed741889c104bc921cf55b3"><enum>(I)</enum><text>$4,000; and</text></subclause><subclause id="ide106692a4281414ca2b1b303e4192468"><enum>(II)</enum><text>50 percent of the project cost; and</text></subclause></clause><clause id="idc484b3e984954e55ad7dd6f9d451efe1"><enum>(iii)</enum><text>for measured energy savings, in the case of a home or portfolio of homes that achieves energy savings of not less than 15 percent—</text><subclause id="idddc74007765d427baa4edf438980c365"><enum>(I)</enum><text>a payment rate per kilowatt hour saved, or kilowatt hour-equivalent saved, equal to $2,000 for a 20 percent reduction of energy use for the average home in the State; or</text></subclause><subclause id="id8a6555709bd54d16ab2c607f7600add8"><enum>(II)</enum><text>50 percent of the project cost;</text></subclause></clause></subparagraph><subparagraph id="id512a6c112128494c98869be5d6524ede"><enum>(B)</enum><text>for multifamily building owners and aggregators carrying out energy efficiency upgrades of multifamily buildings—</text><clause id="idbd8cc7453a144782bb11889d755cd8b1"><enum>(i)</enum><text>in the case of a retrofit that achieves modeled energy system savings of not less than 20 percent but less than 35 percent, $2,000 per dwelling unit, with a maximum of $200,000 per multifamily building;</text></clause><clause id="id98d17bb321a2467cb746e5bf70d6be76"><enum>(ii)</enum><text>in the case of a retrofit that achieves modeled energy system savings of not less than 35 percent, $4,000 per dwelling unit, with a maximum of $400,000 per multifamily building; or</text></clause><clause id="idffc2bdf1898346dd9f51befa2bbe4e8c"><enum>(iii)</enum><text>for measured energy savings, in the case of a multifamily building or portfolio of multifamily buildings that achieves energy savings of not less than 15 percent—</text><subclause id="iddbdcfa8be209474c986a870b0cc560ed"><enum>(I)</enum><text>a payment rate per kilowatt hour saved, or kilowatt hour-equivalent saved, equal to $2,000 for a 20 percent reduction of energy use per dwelling unit for the average multifamily building in the State; or</text></subclause><subclause id="id23cc05ebd9c443e9942d883bd1eba147"><enum>(II)</enum><text>50 percent of the project cost; and</text></subclause></clause></subparagraph><subparagraph id="id46007b2b4ce9431dadb8550467b6dcc3"><enum>(C)</enum><text>for individuals and aggregators carrying out energy efficiency upgrades of a single-family home occupied by a low- or moderate-income household or a multifamily building not less than 50 percent of the dwelling units of which are occupied by low- or moderate-income households—</text><clause id="id488ab7de8cad4b8285422f8aa7fee6ff"><enum>(i)</enum><text>in the case of a retrofit that achieves modeled energy system savings of not less than 20 percent but less than 35 percent, the lesser of—</text><subclause id="id4d4d5f43a12b470a85d33545c0127d51"><enum>(I)</enum><text>$4,000 per single-family home or dwelling unit; and</text></subclause><subclause id="ida40e20158e074c19b610c03717b35311"><enum>(II)</enum><text>80 percent of the project cost;</text></subclause></clause><clause id="ida2611444912d4b99b8bf5110d731fb13"><enum>(ii)</enum><text>in the case of a retrofit that achieves modeled energy system savings of not less than 35 percent, the lesser of—</text><subclause id="idbc6eaddb9bf041d7b24598fea3bb900c"><enum>(I)</enum><text>$8,000 per single-family home or dwelling unit; and</text></subclause><subclause id="idb9289c8d69ee45f0a9dedad575f82bcf"><enum>(II)</enum><text>80 percent of the project cost; and</text></subclause></clause><clause id="id1fae45cba2eb4a7ab66d507c73acfbeb"><enum>(iii)</enum><text>for measured energy savings, in the case of a single-family home, multifamily building, or portfolio of single-family homes or multifamily buildings that achieves energy savings of not less than 15 percent—</text><subclause id="id4177e603d7cb49e2b6b7f84d5aa72550"><enum>(I)</enum><text>a payment rate per kilowatt hour saved, or kilowatt hour-equivalent saved, equal to $4,000 for a 20 percent reduction of energy use per single-family home or dwelling unit, as applicable, for the average single-family home or multifamily building in the State; or</text></subclause><subclause id="id0e9b1c09a30a4d5bb4b443710bdd6bd6"><enum>(II)</enum><text>80 percent of the project cost.</text></subclause></clause></subparagraph></paragraph><paragraph id="id555f50138928498cbe3e9aaf75bf7ee4"><enum>(3)</enum><header>Rebates to low- or moderate-income households</header><text>On approval from the Secretary, notwithstanding paragraph (2), a State energy office carrying out a HOMES rebate program using a grant awarded pursuant to this section may increase rebate amounts for low- or moderate-income households.</text></paragraph><paragraph id="id7cdd2ac6f1a14e44b1a58cb9bb1dfcdf"><enum>(4)</enum><header>Use of funds</header><text>A State energy office that receives a grant pursuant to this section may use not more than 20 percent of the grant amount for planning, administration, or technical assistance related to a HOMES rebate program.</text></paragraph><paragraph id="id767edacfe3c541cc821325e295c7e686"><enum>(5)</enum><header>Data access guidelines</header><text>The Secretary shall develop and publish guidelines for States relating to residential electric and natural gas energy data sharing.</text></paragraph><paragraph id="id1b143e88aba746c3aa7dae9f2ebf6ee0"><enum>(6)</enum><header>Exemption</header><text>Activities carried out by a State energy office using a grant awarded pursuant to this section shall not be subject to the expenditure prohibitions and limitations described in section 420.18 of title 10, Code of Federal Regulations.</text></paragraph><paragraph id="id19cb09d6cecf4b289c25b3a5e171f3dd"><enum>(7)</enum><header>Prohibition on combining rebates</header><text>A rebate provided by a State energy office under a HOMES rebate program may not be combined with any other Federal grant or rebate, including a rebate provided under a high-efficiency electric home rebate program (as defined in section 50122(d)), for the same single upgrade. </text></paragraph></subsection><subsection id="id6cd396fa1fb440c686df53823dd467fc"><enum>(d)</enum><header>Definitions</header><text>In this section:</text><paragraph id="id35cd69525b5c45b8b0535cecc33ac4f2"><enum>(1)</enum><header>Disadvantaged community</header><text>The term <term>disadvantaged community</term> means a community that the Secretary determines, based on appropriate data, indices, and screening tools, is economically, socially, or environmentally disadvantaged.</text></paragraph><paragraph id="id8ad6614956c14cf0b01741f96954005d"><enum>(2)</enum><header><enum-in-header>HOMES</enum-in-header> rebate program</header><text>The term <term>HOMES rebate program</term> means a Home Owner Managing Energy Savings rebate program established by a State energy office as part of an approved State energy conservation plan under the State Energy Program.</text></paragraph><paragraph id="id936a7e67730242dcbee45192e3f08eee"><enum>(3)</enum><header>Low- or moderate-income household</header><text>The term <term>low- or moderate-income household</term> means an individual or family the total annual income of which is less than 80 percent of the median income of the area in which the individual or family resides, as reported by the Department of Housing and Urban Development, including an individual or family that has demonstrated eligibility for another Federal program with income restrictions equal to or below 80 percent of area median income. </text></paragraph></subsection></section><section id="idf5e2a6e1cb274b3e8b2154766cd32dea"><enum>50122.</enum><header>High-efficiency electric home rebate program</header><subsection id="idfb882f6c84d34b79a942846eab29a303"><enum>(a)</enum><header>Appropriations</header><paragraph id="id6b57645aafbe43f38852bb41a5cbdf68"><enum>(1)</enum><header>Funds to state energy offices and indian tribes</header><text>In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to carry out a program—</text><subparagraph id="id59f1229e608f4faebdd3aa9cd4b11db8"><enum>(A)</enum><text>to award grants to State energy offices to develop and implement a high-efficiency electric home rebate program in accordance with subsection (c), $4,275,000,000, to remain available through September 30, 2031; and</text></subparagraph><subparagraph id="id116036c3fc4f4523a702d609ce58b363"><enum>(B)</enum><text>to award grants to Indian Tribes to develop and implement a high-efficiency electric home rebate program in accordance with subsection (c), $225,000,000, to remain available through September 30, 2031.</text></subparagraph></paragraph><paragraph id="id6359272c480e43be9bd5e89f03c7a0d9"><enum>(2)</enum><header>Allocation of funds</header><subparagraph id="id4d3c327db0c7487fbf5969eea0978e97"><enum>(A)</enum><header>State energy offices</header><text>The Secretary shall reserve funds made available under paragraph (1)(A) for each State energy office—</text><clause id="idce4830829ff643e39a039f9712abc0e6"><enum>(i)</enum><text>in accordance with the allocation formula for the State Energy Program in effect on January 1, 2022; and</text></clause><clause id="id8c0b2a47528044fd80e42e7bb28f3e8f"><enum>(ii)</enum><text>to be distributed to a State energy office if the application of the State energy office under subsection (b) is approved.</text></clause></subparagraph><subparagraph id="id8230dfde6abc47e98830ab4198c2bb23"><enum>(B)</enum><header>Indian tribes</header><text>The Secretary shall reserve funds made available under paragraph (1)(B)—</text><clause id="id587a79030c994285890950180df060a4"><enum>(i)</enum><text>in a manner determined appropriate by the Secretary; and</text></clause><clause id="idf1b541594e57400280924118bfaf2645"><enum>(ii)</enum><text>to be distributed to an Indian Tribe if the application of the Indian Tribe under subsection (b) is approved.</text></clause></subparagraph><subparagraph id="id878fc03b355a471f921f63ce2e26b4e7"><enum>(C)</enum><header>Additional funds</header><text>Not earlier than 2 years after the date of enactment of this Act, any money reserved under—</text><clause id="id8083025ed6ec4aff8b72c7d06bf2e06e"><enum>(i)</enum><text>subparagraph (A) but not distributed under clause (ii) of that subparagraph shall be redistributed to the State energy offices operating a high-efficiency electric home rebate program in proportion to the amount distributed to those State energy offices under that clause; and</text></clause><clause id="id03e47f58953349ab974593129754ff29"><enum>(ii)</enum><text>subparagraph (B) but not distributed under clause (ii) of that subparagraph shall be redistributed to the Indian Tribes operating a high-efficiency electric home rebate program in proportion to the amount distributed to those Indian Tribes under that clause.</text></clause></subparagraph></paragraph><paragraph id="id4cb695d9c1f643ef927db0208cd7401b"><enum>(3)</enum><header>Administrative expenses</header><text>Of the funds made available under paragraph (1), the Secretary shall use not more than 3 percent for—</text><subparagraph id="id50032d7b0f1b444d948c2efe75d88280"><enum>(A)</enum><text>administrative purposes; and</text></subparagraph><subparagraph id="id53ad5b6e533b42679ec6daa02b1d81be"><enum>(B)</enum><text>providing technical assistance relating to activities carried out under this section.</text></subparagraph></paragraph></subsection><subsection id="id8cd7bb376b2243b48f3ab04f6d9bf4b9"><enum>(b)</enum><header>Application</header><text>A State energy office or Indian Tribe seeking a grant under the program shall submit to the Secretary an application that includes a plan to implement a high-efficiency electric home rebate program, including—</text><paragraph id="id5ba55ebfaaec40f988ab1dc08b0398f6"><enum>(1)</enum><text>a plan to verify the income eligibility of eligible entities seeking a rebate for a qualified electrification project;</text></paragraph><paragraph id="ida29c5dc86a464be19cfb0772dee4e0ea"><enum>(2)</enum><text>a plan to allow rebates for qualified electrification projects at the point of sale in a manner that ensures that the income eligibility of an eligible entity seeking a rebate may be verified at the point of sale;</text></paragraph><paragraph id="id3b64d3d1f68044c989aa176ac96af62f"><enum>(3)</enum><text>a plan to ensure that an eligible entity does not receive a rebate for the same qualified electrification project through both a high-efficiency electric home rebate program and any other Federal grant or rebate program, pursuant to subsection (c)(8); and</text></paragraph><paragraph id="id80fd4bb7a4ec45ad8b2d06b32af54d01"><enum>(4)</enum><text>any additional information that the Secretary may require.</text></paragraph></subsection><subsection id="id94c3c01f84b348e0ab62d218eab132e6"><enum>(c)</enum><header>High-efficiency electric home rebate program</header><paragraph id="id02c742ee50984aa99ad688600648d6a6"><enum>(1)</enum><header>In general</header><text>Under the program, the Secretary shall award grants to State energy offices and Indian Tribes to establish a high-efficiency electric home rebate program under which rebates shall be provided to eligible entities for qualified electrification projects.</text></paragraph><paragraph id="id53f257b2078645088969f154eaf8cdda"><enum>(2)</enum><header>Guidelines</header><text>The Secretary shall prescribe guidelines for high-efficiency electric home rebate programs, including guidelines for providing point of sale rebates in a manner consistent with the income eligibility requirements under this section. </text></paragraph><paragraph id="id2cc44b4b0e0242b1b11cdd813ce602be"><enum>(3)</enum><header>Amount of rebate</header><subparagraph id="id39927714650b426681bc01e35c660091"><enum>(A)</enum><header>Appliance upgrades</header><text>The amount of a rebate provided under a high-efficiency electric home rebate program for the purchase of an appliance under a qualified electrification project shall be—</text><clause id="id1ae026f8622249b096f8dfb10ee0fe68"><enum>(i)</enum><text>not more than $1,750 for a heat pump water heater;</text></clause><clause id="id542d487a54d54adf82eef1c6a33cbbdc"><enum>(ii)</enum><text>not more than $8,000 for a heat pump for space heating or cooling; and</text></clause><clause id="id9022e236880145fba62594d5abea34a3"><enum>(iii)</enum><text>not more than $840 for—</text><subclause id="idcd55412761b64dc3a4d42e51e1f2e01e"><enum>(I)</enum><text>an electric stove, cooktop, range, or oven; or</text></subclause><subclause id="id31d06f57d99a4677accb1694bf322e04"><enum>(II)</enum><text>an electric heat pump clothes dryer.</text></subclause></clause></subparagraph><subparagraph id="id70b5e739fd0c450eaf9f7c4befe3a276"><enum>(B)</enum><header>Nonappliance upgrades</header><text>The amount of a rebate provided under a high-efficiency electric home rebate program for the purchase of a nonappliance upgrade under a qualified electrification project shall be—</text><clause id="id546c858a65ed4bdfb1e96e08cf7c384a"><enum>(i)</enum><text>not more than $4,000 for an electric load service center upgrade;</text></clause><clause id="id783fe64eee734c37877825840ab72cc3"><enum>(ii)</enum><text>not more than $1,600 for insulation, air sealing, and ventilation; and</text></clause><clause id="id0fdaf828c1f24750998e38553a47b6cc"><enum>(iii)</enum><text>not more than $2,500 for electric wiring.</text></clause></subparagraph><subparagraph id="id698f31ec25ed46cab00582357b921b2b"><enum>(C)</enum><header>Maximum rebate</header><text>An eligible entity receiving multiple rebates under this section may receive not more than a total of $14,000 in rebates.</text></subparagraph></paragraph><paragraph id="id80a913ac15554f6ea32ca7c8e17d23c7"><enum>(4)</enum><header>Limitations</header><text>A rebate provided using funding under this section shall not exceed—</text><subparagraph id="id47d94ded5eac4f48bfc6c7019f01f660"><enum>(A)</enum><text>in the case of an eligible entity described in subsection (d)(1)(A)—</text><clause id="id89e6130164534a7db68f53642056d93b"><enum>(i)</enum><text>50 percent of the cost of the qualified electrification project for a household the annual income of which is not less than 80 percent and not greater than 150 percent of the area median income; and</text></clause><clause id="id75f54351a2f6418d9a3a67f4467b9e68"><enum>(ii)</enum><text>100 percent of the cost of the qualified electrification project for a household the annual income of which is less than 80 percent of the area median income;</text></clause></subparagraph><subparagraph id="id0123762f6e304827b7128a016297cf35"><enum>(B)</enum><text>in the case of an eligible entity described in subsection (d)(1)(B)—</text><clause id="id01149e8b91a547708a4aec592145cbae"><enum>(i)</enum><text>50 percent of the cost of the qualified electrification project for a multifamily building not less than 50 percent of the residents of which are households the annual income of which is not less than 80 percent and not greater than 150 percent of the area median income; and</text></clause><clause id="ida8372591a6d3424c9b8da48f3ffe8185"><enum>(ii)</enum><text>100 percent of the cost of the qualified electrification project for a multifamily building not less than 50 percent of the residents of which are households the annual income of which is less than 80 percent of the area median income; or</text></clause></subparagraph><subparagraph id="idcdbf632c329d4deb9c2092e00a2195c4"><enum>(C)</enum><text>in the case of an eligible entity described in subsection (d)(1)(C)—</text><clause id="id91f0ae35de8e4897a7c60a636d46dbe2"><enum>(i)</enum><text>50 percent of the cost of the qualified electrification project for a household—</text><subclause id="id276675AA04124AB38837ED7A7F1E31DC" commented="no"><enum>(I)</enum><text>on behalf of which the eligible entity is working; and</text></subclause><subclause id="id91227573EC224A7CBA021B9C01BC4395" commented="no"><enum>(II)</enum><text>the annual income of which is not less than 80 percent and not greater than 150 percent of the area median income; and</text></subclause></clause><clause id="id864b5e36e04d468fb596c32ea008998f"><enum>(ii)</enum><text>100 percent of the cost of the qualified electrification project for a household—</text><subclause id="id6F37FCF7AF7A4DFCBA391FB04DD62228" commented="no"><enum>(I)</enum><text>on behalf of which the eligible entity is working; and</text></subclause><subclause id="idE11AE66BCDDB43D992C6BB4F729F3909" commented="no"><enum>(II)</enum><text>the annual income of which is less than 80 percent of the area median income.</text></subclause></clause></subparagraph></paragraph><paragraph id="id83574701c75041bcb501e05d74ea7df3"><enum>(5)</enum><header>Amount for installation of upgrades</header><subparagraph id="id4c7d60b02a1e4759a0d15cf57d46527e"><enum>(A)</enum><header>In general</header><text>In the case of an eligible entity described in subsection (d)(1)(C) that receives a rebate under the program and performs the installation of the applicable qualified electrification project, a State energy office or Indian Tribe shall provide to that eligible entity, in addition to the rebate, an amount that—</text><clause id="ida558e9b52e3140bfbd16fe2cacfcd1a4"><enum>(i)</enum><text>does not exceed $500; and</text></clause><clause id="idb95067a541424b63ac9f143a3baafe39"><enum>(ii)</enum><text>is commensurate with the scale of the upgrades installed as part of the qualified electrification project, as determined by the Secretary.</text></clause></subparagraph><subparagraph id="id1b2eecffe84b4597b3078a5997be0cd5"><enum>(B)</enum><header>Treatment</header><text>An amount received under subparagraph (A) by an eligible entity described in that subparagraph shall not be subject to the requirement under paragraph (6).</text></subparagraph></paragraph><paragraph id="id41fcb6a0b4524c80810ea4ebfa1d384b"><enum>(6)</enum><header>Requirement</header><text>An eligible entity described in subparagraph (C) of subsection (d)(1) shall discount the amount of a rebate received for a qualified electrification project from any amount charged by that eligible entity to the eligible entity described in subparagraph (A) or (B) of that subsection on behalf of which the qualified electrification project is carried out.</text></paragraph><paragraph id="ide75e5c9dcfc0490e96c7af1914c639f6"><enum>(7)</enum><header>Exemption</header><text>Activities carried out by a State energy office using a grant provided under the program shall not be subject to the expenditure prohibitions and limitations described in section 420.18 of title 10, Code of Federal Regulations.</text></paragraph><paragraph id="idee4bae5721234983995ae618051905ac"><enum>(8)</enum><header>Prohibition on combining rebates</header><text>A rebate provided by a State energy office or Indian Tribe under a high-efficiency electric home rebate program may not be combined with any other Federal grant or rebate, including a rebate provided under a HOMES rebate program (as defined in section 50121(d)), for the same qualified electrification project.</text></paragraph><paragraph id="id3c4a671ec0144e7fb8301b3e10d86206"><enum>(9)</enum><header>Administrative costs</header><text>A State energy office or Indian Tribe that receives a grant under the program shall use not more than 20 percent of the grant amount for planning, administration, or technical assistance relating to a high-efficiency electric home rebate program.</text></paragraph></subsection><subsection id="idaf8785c3867246ac8c3a2167bb258942"><enum>(d)</enum><header>Definitions</header><text>In this section:</text><paragraph id="id4e67c6a04e5840b6b0931ba7dc67bc64"><enum>(1)</enum><header>Eligible entity</header><text>The term <term>eligible entity</term> means—</text><subparagraph id="id87055c4a1cd0413e8e0f2643f855578b"><enum>(A)</enum><text>a low- or moderate-income household;</text></subparagraph><subparagraph id="id226a82cef12547e5ac27c15fb27f32ca"><enum>(B)</enum><text>an individual or entity that owns a multifamily building not less than 50 percent of the residents of which are low- or moderate-income households; and</text></subparagraph><subparagraph id="idc122b872c9ea40758af1c2803e4e5330"><enum>(C)</enum><text>a governmental, commercial, or nonprofit entity, as determined by the Secretary, carrying out a qualified electrification project on behalf of an entity described in subparagraph (A) or (B).</text></subparagraph></paragraph><paragraph id="id03ab2a70e15d4d4f94a661704b733834"><enum>(2)</enum><header>High-efficiency electric home rebate program</header><text>The term <term>high-efficiency electric home rebate program</term> means a rebate program carried out by a State energy office or Indian Tribe pursuant to subsection (c) using a grant received under the program. </text></paragraph><paragraph id="id6b8de31cd03f4d35916e9d6bf1d9ac99"><enum>(3)</enum><header>Indian Tribe</header><text>The term <term>Indian Tribe</term> has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (<external-xref legal-doc="usc" parsable-cite="usc/25/5304">25 U.S.C. 5304</external-xref>).</text></paragraph><paragraph id="id6720388fd3014d7d8d8152073d026745"><enum>(4)</enum><header>Low- or moderate-income household</header><text>The term <term>low- or moderate-income household</term> means an individual or family the total annual income of which is less than 150 percent of the median income of the area in which the individual or family resides, as reported by the Department of Housing and Urban Development, including an individual or family that has demonstrated eligibility for another Federal program with income restrictions equal to or below 150 percent of area median income. </text></paragraph><paragraph id="id63b3d2d2c9c04d319dc98e1c4b8e1880"><enum>(5)</enum><header>Program</header><text>The term <term>program</term> means the program carried out by the Secretary under subsection (a)(1).</text></paragraph><paragraph id="id06fab30aa1164d9f84946720f251e1e0"><enum>(6)</enum><header>Qualified electrification project</header><subparagraph id="idfb664a09f3a2433bb638294a6a75facb"><enum>(A)</enum><header>In general</header><text>The term <term>qualified electrification project</term> means a project that—</text><clause id="ida6ebd87ecdf34003983f8711091e30f0"><enum>(i)</enum><text>includes the purchase and installation of—</text><subclause id="id676f7ef2e0ce43159e12731e258b096a"><enum>(I)</enum><text>an electric heat pump water heater;</text></subclause><subclause id="ida284b943951e489ba3095a58ed5848e9"><enum>(II)</enum><text>an electric heat pump for space heating and cooling;</text></subclause><subclause id="idba632f97831145a9a2f43b2f943030a6"><enum>(III)</enum><text>an electric stove, cooktop, range, or oven;</text></subclause><subclause id="id79f145a7bd0c4e57a28e656ad57e9968"><enum>(IV)</enum><text>an electric heat pump clothes dryer;</text></subclause><subclause id="id64175bfef7c44dc59d9e908b3482edd0"><enum>(V)</enum><text>an electric load service center;</text></subclause><subclause id="id29e5298141c3448aa52b9136d6316df4"><enum>(VI)</enum><text>insulation;</text></subclause><subclause id="id2a2901bed27c4532909964ff23750116"><enum>(VII)</enum><text>air sealing and materials to improve ventilation; or</text></subclause><subclause id="id744debe5fcb04cd4a4a2b4a2d174177c"><enum>(VIII)</enum><text>electric wiring;</text></subclause></clause><clause id="iddb5a96973dcd4b7ab33be5bcb22e5d47"><enum>(ii)</enum><text>with respect to any appliance described in clause (i), the purchase of which is carried out—</text><subclause id="id66fb8a01cae54b65adc317c7cd24bef7"><enum>(I)</enum><text>as part of new construction;</text></subclause><subclause id="id875b133f53c64ee48b06bdefec35969b"><enum>(II)</enum><text>to replace a nonelectric appliance; or</text></subclause><subclause id="id9dc7ec6557ba4f35ae0018841e79d000"><enum>(III)</enum><text>as a first-time purchase with respect to that appliance; and</text></subclause></clause><clause id="iddbbc2e847fe3440bbfcb7fa88e28bfa4"><enum>(iii)</enum><text>is carried out at, or relating to, a single-family home or multifamily building, as applicable and defined by the Secretary.</text></clause></subparagraph><subparagraph id="id7a227ab69c7e4131b193a554c275b0bb"><enum>(B)</enum><header>Exclusions</header><text>The term <term>qualified electrification project</term> does not include any project with respect to which the appliance, system, equipment, infrastructure, component, or other item described in subclauses (I) through (VIII) of subparagraph (A)(i) is not certified under the Energy Star program established by section 324A of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6294a">42 U.S.C. 6294a</external-xref>), if applicable.</text></subparagraph></paragraph></subsection></section><section id="ide263970b15f3469a9899383d9e126afa"><enum>50123.</enum><header>State-based home energy efficiency contractor training grants</header><subsection id="idb9adc34ce9634b8d8a7b50f703b43031"><enum>(a)</enum><header>Appropriation</header><text>In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $200,000,000, to remain available through September 30, 2031, to carry out a program to provide financial assistance to States to develop and implement a State program described in section 362(d)(13) of the Energy Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6322">42 U.S.C. 6322(d)(13)</external-xref>), which shall provide training and education to contractors involved in the installation of home energy efficiency and electrification improvements, including improvements eligible for rebates under a HOMES rebate program (as defined in section 50121(d)) or a high-efficiency electric home rebate program (as defined in section 50122(d)), as part of an approved State energy conservation plan under the State Energy Program.</text></subsection><subsection id="id8f15d186aa304e1a8e826912cd68ec33"><enum>(b)</enum><header>Use of funds</header><text>A State may use amounts received under subsection (a)—</text><paragraph id="idb1234c6808544299a92e80bebe94a911"><enum>(1)</enum><text>to reduce the cost of training contractor employees;</text></paragraph><paragraph id="id30a22c2254a542f383e0d35512d7d6a1"><enum>(2)</enum><text>to provide testing and certification of contractors trained and educated under a State program developed and implemented pursuant to subsection (a); and</text></paragraph><paragraph id="id12e1fefa26b74990b1c297a925c88774"><enum>(3)</enum><text>to partner with nonprofit organizations to develop and implement a State program pursuant to subsection (a).</text></paragraph></subsection><subsection id="id4469ba1250ef4eba8d7340e53bab6464"><enum>(c)</enum><header>Administrative expenses</header><text>Of the amounts received by a State under subsection (a), a State shall use not more than 10 percent for administrative expenses associated with developing and implementing a State program pursuant to that subsection.</text></subsection></section></part><part id="id987292463ec54ccd9c1dcf311a70d8d9"><enum>3</enum><header>Building efficiency and resilience</header><section id="id897557eceb334d8aaa5affa774a81f6c"><enum>50131.</enum><header>Assistance for latest and zero building energy code adoption</header><subsection id="id29b5e17300734193a891195277f34846"><enum>(a)</enum><header>Appropriation</header><text>In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated—</text><paragraph id="id2dbf1968a03a446fb2f559cabfb8aac6"><enum>(1)</enum><text>$330,000,000, to remain available through September 30, 2029, to carry out activities under part D of title III of the Energy Policy and Conservation Act (42 U.S.C. 6321 through 6326) in accordance with subsection (b); and</text></paragraph><paragraph id="ida45b454bd7be4b939039b313dadc9abe"><enum>(2)</enum><text>$670,000,000, to remain available through September 30, 2029, to carry out activities under part D of title III of the Energy Policy and Conservation Act (42 U.S.C. 6321 through 6326) in accordance with subsection (c).</text></paragraph></subsection><subsection id="id9f99f21d53e94382add96996f6227879"><enum>(b)</enum><header>Latest building energy code</header><text>The Secretary shall use funds made available under subsection (a)(1) for grants to assist States, and units of local government that have authority to adopt building codes—</text><paragraph id="ided9741e31a01406faeac852df0878b86"><enum>(1)</enum><text>to adopt—</text><subparagraph id="idc76293792b32400e974993553664a72a"><enum>(A)</enum><text>a building energy code (or codes) for residential buildings that meets or exceeds the 2021 International Energy Conservation Code, or achieves equivalent or greater energy savings;</text></subparagraph><subparagraph id="idc5222b45c706489e803568d037b6450b"><enum>(B)</enum><text>a building energy code (or codes) for commercial buildings that meets or exceeds the ANSI/ASHRAE/IES Standard 90.1–2019, or achieves equivalent or greater energy savings; or</text></subparagraph><subparagraph id="id7cc7cacdc19b40b18d21af630cdf7586"><enum>(C)</enum><text>any combination of building energy codes described in subparagraph (A) or (B); and</text></subparagraph></paragraph><paragraph id="idba354e01ce64458a90a50f3670b4760c"><enum>(2)</enum><text>to implement a plan for the jurisdiction to achieve full compliance with any building energy code adopted under paragraph (1) in new and renovated residential or commercial buildings, as applicable, which plan shall include active training and enforcement programs and measurement of the rate of compliance each year.</text></paragraph></subsection><subsection id="id697c135503b349bfa96a9840d816f9e5"><enum>(c)</enum><header>Zero energy code</header><text>The Secretary shall use funds made available under subsection (a)(2) for grants to assist States, and units of local government that have authority to adopt building codes—</text><paragraph id="id08f0dc95dfdf4764889cddf91f1fca55"><enum>(1)</enum><text>to adopt a building energy code (or codes) for residential and commercial buildings that meets or exceeds the zero energy provisions in the 2021 International Energy Conservation Code or an equivalent stretch code; and</text></paragraph><paragraph id="iddd7643e25d7a4435b7acb67446ff6d7b"><enum>(2)</enum><text>to implement a plan for the jurisdiction to achieve full compliance with any building energy code adopted under paragraph (1) in new and renovated residential and commercial buildings, which plan shall include active training and enforcement programs and measurement of the rate of compliance each year.</text></paragraph></subsection><subsection id="idf968fbfd989842b0ace711819c1b71ad"><enum>(d)</enum><header>State match</header><text>The State cost share requirement under the item relating to <quote>Department of Energy—Energy Conservation</quote> in title II of the Department of the Interior and Related Agencies Appropriations Act, 1985 (<external-xref legal-doc="usc" parsable-cite="usc/42/6323a">42 U.S.C. 6323a</external-xref>; 98 Stat. 1861), shall not apply to assistance provided under this section.</text></subsection><subsection id="ida80edf149c034d5bb629e93582ddf37b"><enum>(e)</enum><header>Administrative costs</header><text>Of the amounts made available under this section, the Secretary shall reserve not more than 5 percent for administrative costs necessary to carry out this section.</text></subsection></section></part><part id="ide761f7b7c68b464bbef68412362ef194"><enum>4</enum><header>DOE loan and grant programs</header><section id="id8d9833f7b42346a09ea0615c111102db"><enum>50141.</enum><header>Funding for department of energy loan programs office</header><subsection id="ide3f4c15087b146f38b7ebbb0fd525a48"><enum>(a)</enum><header>Commitment authority</header><text>In addition to commitment authority otherwise available and previously provided, the Secretary may make commitments to guarantee loans for eligible projects under section 1703 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16513">42 U.S.C. 16513</external-xref>), up to a total principal amount of $40,000,000,000, to remain available through September 30, 2026.</text></subsection><subsection id="id9345848bfb5e40a4adc9a63420265a0c"><enum>(b)</enum><header>Appropriation</header><text>In addition to amounts otherwise available and previously provided, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $3,600,000,000, to remain available through September 30, 2026, for the costs of guarantees made under section 1703 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16513">42 U.S.C. 16513</external-xref>), using the loan guarantee authority provided under subsection (a) of this section.</text></subsection><subsection id="id4ce88d9843d64e688d9fc91a29b99392"><enum>(c)</enum><header>Administrative expenses</header><text>Of the amount made available under subsection (b), the Secretary shall reserve not more than 3 percent for administrative expenses to carry out title XVII of the Energy Policy Act of 2005 and for carrying out section 1702(h)(3) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/16512">42 U.S.C. 16512(h)(3)</external-xref>).</text></subsection><subsection id="id49f0e6960c5346bc9197a7540b967bec"><enum>(d)</enum><header>Limitations</header><paragraph id="ided7e2ae2f5854144b442fe083a060399"><enum>(1)</enum><header>Certification</header><text>None of the amounts made available under this section for loan guarantees shall be available for any project unless the President has certified in advance in writing that the loan guarantee and the project comply with the provisions under this section. </text></paragraph><paragraph id="idf1c6b77e3de34f72873ad6bf1c4f8dcc"><enum>(2)</enum><header>Denial of double benefit</header><text>Except as provided in paragraph (3), none of the amounts made available under this section for loan guarantees shall be available for commitments to guarantee loans for any projects under which funds, personnel, or property (tangible or intangible) of any Federal agency, instrumentality, personnel, or affiliated entity are expected to be used (directly or indirectly) through acquisitions, contracts, demonstrations, exchanges, grants, incentives, leases, procurements, sales, other transaction authority, or other arrangements to support the project or to obtain goods or services from the project.</text></paragraph><paragraph id="idb5390c9ebd0440d7915ab52ab1f23d0b"><enum>(3)</enum><header>Exception</header><text>Paragraph (2) shall not preclude the use of the loan guarantee authority provided under this section for commitments to guarantee loans for—</text><subparagraph id="idfac030db01564999ba39fd604cec1014"><enum>(A)</enum><text>projects benefitting from otherwise allowable Federal tax benefits;</text></subparagraph><subparagraph id="id3736b4ed41844e27902f6078319fe7a2"><enum>(B)</enum><text>projects benefitting from being located on Federal land pursuant to a lease or right-of-way agreement for which all consideration for all uses is—</text><clause id="idb47ca25632264b199f3ffce4dde39c38"><enum>(i)</enum><text>paid exclusively in cash;</text></clause><clause id="ide75c13c337fe47b1ad907523f9286760"><enum>(ii)</enum><text>deposited in the Treasury as offsetting receipts; and</text></clause><clause id="ida6d1e98abeab4008b869a5b068bcade8"><enum>(iii)</enum><text>equal to the fair market value;</text></clause></subparagraph><subparagraph id="id76f9c18a22e1493d9777bcae9a0a3e3a"><enum>(C)</enum><text>projects benefitting from the Federal insurance program under section 170 of the Atomic Energy Act of 1954 (<external-xref legal-doc="usc" parsable-cite="usc/42/2210">42 U.S.C. 2210</external-xref>); or</text></subparagraph><subparagraph id="id4f276164f9754984823fcaebe2aa8ea3"><enum>(D)</enum><text>electric generation projects using transmission facilities owned or operated by a Federal Power Marketing Administration or the Tennessee Valley Authority that have been authorized, approved, and financed independent of the project receiving the guarantee. </text></subparagraph></paragraph></subsection><subsection id="idd69c7c57bd1d4c608109996734152b35" commented="no"><enum>(e)</enum><header>Guarantee</header><text>Section 1701(4)(A) of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16511">42 U.S.C. 16511(4)(A)</external-xref>) is amended by inserting <quote>, except that a loan guarantee may guarantee any debt obligation of a non-Federal borrower to any Eligible Lender (as defined in section 609.2 of title 10, Code of Federal Regulations)</quote> before the period at the end.</text></subsection><subsection commented="no" id="id8C9B796540B74314B1691E50FA091706"><enum>(f)</enum><header>Source of payments</header><text>Section 1702(b) of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16512">42 U.S.C. 16512(b)(2)</external-xref>) is amended by adding at the end the following: </text><quoted-block style="OLC" display-inline="no-display-inline" id="ida15cc16149b74bb685b7a7a30159dad5" changed="added" reported-display-style="italic"><paragraph id="idae4b8ce73ed547919b0528a0eb41dea1"><enum>(3)</enum><header>Source of payments</header><text>The source of a payment received from a borrower under subparagraph (A) or (B) of paragraph (2) may not be a loan or other debt obligation that is made or guaranteed by the Federal Government.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section><section id="id8d4389ffc6c94ee1b5096445079ef00e"><enum>50142.</enum><header>Advanced technology vehicle manufacturing</header><subsection id="id83f9dc459a5d4c0883900ff85d135048"><enum>(a)</enum><header>Appropriation</header><text>In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $3,000,000,000, to remain available through September 30, 2028, for the costs of providing direct loans under section 136(d) of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17013">42 U.S.C. 17013(d)</external-xref>): <proviso><italic>Provided</italic></proviso>, That funds appropriated by this section may be used for the costs of providing direct loans for reequipping, expanding, or establishing a manufacturing facility in the United States to produce, or for engineering integration performed in the United States of, advanced technology vehicles described in subparagraph (C), (D), (E), or (F) of section 136(a)(1) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/17013">42 U.S.C. 17013(a)(1)</external-xref>) only if such advanced technology vehicles emit, under any possible operational mode or condition, low or zero exhaust emissions of greenhouse gases.</text></subsection><subsection id="id3b51076b63cf4648b5525fdfdf05d08f"><enum>(b)</enum><header>Administrative costs</header><text>The Secretary shall reserve not more than $25,000,000 of amounts made available under subsection (a) for administrative costs of providing loans as described in subsection (a).</text></subsection><subsection id="id7333c63b24e84c49900d2a5b26aefff0"><enum>(c)</enum><header>Elimination of loan program cap</header><text>Section 136(d)(1) of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17013">42 U.S.C. 17013(d)(1)</external-xref>) is amended by striking <quote>a total of not more than $25,000,000,000 in</quote>.</text></subsection></section><section id="id705c0359106a48eeac27c4764b48f071"><enum>50143.</enum><header>Domestic manufacturing conversion grants</header><subsection id="idabc4f11d3c8348fd9e58f9fca97bb4a0"><enum>(a)</enum><header>Appropriation</header><text>In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $2,000,000,000, to remain available through September 30, 2031, to provide grants for domestic production of efficient hybrid, plug-in electric hybrid, plug-in electric drive, and hydrogen fuel cell electric vehicles, in accordance with section 712 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16062">42 U.S.C. 16062</external-xref>).</text></subsection><subsection id="idbc1e46d67b60427fac0fea6621d5a8b3"><enum>(b)</enum><header>Cost share</header><text>The Secretary shall require a recipient of a grant provided under subsection (a) to provide not less than 50 percent of the cost of the project carried out using the grant.</text></subsection><subsection id="ide5d30888614644ee9cff0b3c81fc3338"><enum>(c)</enum><header>Administrative costs</header><text>The Secretary shall reserve not more than 3 percent of amounts made available under subsection (a) for administrative costs of making grants described in such subsection (a) pursuant to section 712 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16062">42 U.S.C. 16062</external-xref>).</text></subsection></section><section id="id135c754cb33c4972b7e54d6515a5d9d7"><enum>50144.</enum><header>Energy infrastructure reinvestment financing</header><subsection id="idf407303dde274d8fba9bbd0ff89fa7f7"><enum>(a)</enum><header>Appropriation</header><text>In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $5,000,000,000, to remain available through September 30, 2026, to carry out activities under section 1706 of the Energy Policy Act of 2005.</text></subsection><subsection id="id4df72210003f49529516452e7d7995bb"><enum>(b)</enum><header>Commitment authority</header><text>The Secretary may make, through September 30, 2026, commitments to guarantee loans for projects under section 1706 of the Energy Policy Act of 2005 the total principal amount of which is not greater than $250,000,000,000, subject to the limitations that apply to loan guarantees under section 50141(d).</text></subsection><subsection id="idc1c71fb3ce4847bcacd1646a463b1092"><enum>(c)</enum><header>Energy infrastructure reinvestment financing</header><text>Title XVII of the Energy Policy Act of 2005 is amended by inserting after section 1705 (<external-xref legal-doc="usc" parsable-cite="usc/42/16516">42 U.S.C. 16516</external-xref>) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id1b754e2769c847b7a64331bd9afbbc16" changed="added" reported-display-style="italic"><section id="id6ac51f17d2ac4a208e3007b8bfcc327b"><enum>1706.</enum><header>Energy infrastructure reinvestment financing</header><subsection id="id2b6bb08a6b4d469aa38cc65d552ed20d"><enum>(a)</enum><header>In general</header><text>Notwithstanding section 1703, the Secretary may make guarantees, including refinancing, under this section only for projects that—</text><paragraph id="ide89ce0df1f0447368ae32b36b3d760dc"><enum>(1)</enum><text>retool, repower, repurpose, or replace energy infrastructure that has ceased operations; or</text></paragraph><paragraph id="idaa13d587265c49629348cf33826ff129"><enum>(2)</enum><text>enable operating energy infrastructure to avoid, reduce, utilize, or sequester air pollutants or anthropogenic emissions of greenhouse gases.</text></paragraph></subsection><subsection id="idc32c47ab5bf5431da02464887b083ffd"><enum>(b)</enum><header>Inclusion</header><text>A project under subsection (a) may include the remediation of environmental damage associated with energy infrastructure.</text></subsection><subsection id="idd591323a337e4319a272794baa4cf959"><enum>(c)</enum><header>Requirement</header><text>A project under subsection (a)(1) that involves electricity generation through the use of fossil fuels shall be required to have controls or technologies to avoid, reduce, utilize, or sequester air pollutants and anthropogenic emissions of greenhouse gases.</text></subsection><subsection id="idc6f20d03f22d4cd383357dcf7876f65d"><enum>(d)</enum><header>Application</header><text>To apply for a guarantee under this section, an applicant shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including—</text><paragraph id="idb9d9614018f440439e469e9670baf9b9"><enum>(1)</enum><text>a detailed plan describing the proposed project;</text></paragraph><paragraph id="id219ccb84b26240b4a0a769eec32157fb"><enum>(2)</enum><text>an analysis of how the proposed project will engage with and affect associated communities; and</text></paragraph><paragraph id="id126bc20e80294548adb0359bcc56b1c1"><enum>(3)</enum><text>in the case of an applicant that is an electric utility, an assurance that the electric utility shall pass on any financial benefit from the guarantee made under this section to the customers of, or associated communities served by, the electric utility.</text></paragraph></subsection><subsection id="id57c3770137e04556b11880a5a0c46ed6"><enum>(e)</enum><header>Term</header><text>Notwithstanding section 1702(f), the term of an obligation shall require full repayment over a period not to exceed 30 years.</text></subsection><subsection id="ide4fed9611d024e83bc215a75191e6b14"><enum>(f)</enum><header>Definition of energy infrastructure</header><text>In this section, the term <term>energy infrastructure</term> means a facility, and associated equipment, used for—</text><paragraph id="idbcd2f2e3e8a74ea0bbeaf1c3a04ef0bd"><enum>(1)</enum><text>the generation or transmission of electric energy; or</text></paragraph><paragraph id="ide3618e475be3438caf41b5306efc4d4e"><enum>(2)</enum><text>the production, processing, and delivery of fossil fuels, fuels derived from petroleum, or petrochemical feedstocks.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="ida6be0e09988840bebd340e584a951e4e"><enum>(d)</enum><header>Conforming amendment</header><text>Section 1702(o)(3) of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16512">42 U.S.C. 16512(o)(3)</external-xref>) is amended by inserting <quote>and projects described in section 1706(a)</quote> before the period at the end.</text></subsection></section><section id="id0664a54442db4cd7a7c8cf8499aedafd"><enum>50145.</enum><header>Tribal energy loan guarantee program</header><subsection id="idd2d061564ab44656835a89dc146e37f5"><enum>(a)</enum><header>Appropriation</header><text>In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $75,000,000, to remain available through September 30, 2028, to carry out section 2602(c) of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/25/3502">25 U.S.C. 3502(c)</external-xref>), subject to the limitations that apply to loan guarantees under section 50141(d). </text></subsection><subsection id="id98c30aa7a250420fadd3a829d8214755"><enum>(b)</enum><header>Department of Energy Tribal energy loan guarantee program</header><text>Section 2602(c) of the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/25/3502">25 U.S.C. 3502(c)</external-xref>) is amended—</text><paragraph id="id4fd779a66e544c70bf26cee7d3e15d9f"><enum>(1)</enum><text>in paragraph (1), by striking <quote>) for an amount equal to not more than 90 percent of</quote> and inserting <quote>, except that a loan guarantee may guarantee any debt obligation of a non-Federal borrower to any Eligible Lender (as defined in section 609.2 of title 10, Code of Federal Regulations)) for</quote>; and</text></paragraph><paragraph id="idbed781c077c142e6bd657dbe7f149584"><enum>(2)</enum><text>in paragraph (4), by striking <quote>$2,000,000,000</quote> and inserting <quote>$20,000,000,000</quote>.</text></paragraph></subsection></section></part><part id="idf9e250c5d7ab41de81f265674c93b6ac"><enum>5</enum><header>Electric transmission</header><section id="iddcc148470bde4c6c82cea00170f92983"><enum>50151.</enum><header>Transmission facility financing</header><subsection id="id7344b97eab3d4d60893a282ae492245b"><enum>(a)</enum><header>Appropriation</header><text>In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $2,000,000,000, to remain available through September 30, 2030, to carry out this section: <proviso><italic>Provided</italic></proviso>, That the Secretary shall not enter into any loan agreement pursuant to this section that could result in disbursements after September 30, 2031.</text></subsection><subsection id="id38f3d3f91bad4dd886ad7a3f42ddf0f2"><enum>(b)</enum><header>Use of funds</header><text>The Secretary shall use the amounts made available by subsection (a) to carry out a program to pay the costs of direct loans to non-Federal borrowers, subject to the limitations that apply to loan guarantees under section 50141(d) and under such terms and conditions as the Secretary determines to be appropriate, for the construction or modification of electric transmission facilities designated by the Secretary to be necessary in the national interest under section 216(a) of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/824p">16 U.S.C. 824p(a)</external-xref>).</text></subsection><subsection id="id9fe8ff28f3194ee8acbe17b7c535203e"><enum>(c)</enum><header>Loans</header><text>A direct loan provided under this section—</text><paragraph id="id2992bfb9b63b4591ab0e5d730775f289"><enum>(1)</enum><text>shall have a term that does not exceed the lesser of—</text><subparagraph id="id88514e01239c48c8bc30bb50851e7789"><enum>(A)</enum><text>90 percent of the projected useful life, in years, of the eligible transmission facility; and</text></subparagraph><subparagraph id="idcc8c8d066fb84eaa8ea0218c8cae305b"><enum>(B)</enum><text>30 years;</text></subparagraph></paragraph><paragraph id="id8836f48930d44ff286cc057df9216dac"><enum>(2)</enum><text>shall not exceed 80 percent of the project costs; and</text></paragraph><paragraph id="id115d0c91abda4b93846642190a11ee5a"><enum>(3)</enum><text>shall, on first issuance, be subject to the condition that the direct loan is not subordinate to other financing.</text></paragraph></subsection><subsection id="id4e65757442d649b4aeb584ec5099a118"><enum>(d)</enum><header>Interest rates</header><text>A direct loan provided under this section shall bear interest at a rate determined by the Secretary, taking into consideration market yields on outstanding marketable obligations of the United States of comparable maturities as of the date on which the direct loan is made.</text></subsection><subsection id="id534cafa535544bfab5ec3483fbc9b141"><enum>(e)</enum><header>Definition of direct loan</header><text>In this section, the term <term>direct loan</term> has the meaning given the term in section 502 of the Federal Credit Reform Act of 1990 (<external-xref legal-doc="usc" parsable-cite="usc/2/661a">2 U.S.C. 661a</external-xref>). </text></subsection></section><section id="id1c62541789504a38a10e710e4bcc4347"><enum>50152.</enum><header>Grants to facilitate the siting of interstate electricity transmission lines</header><subsection id="id7f43b163bbad48228be87d6757651d37"><enum>(a)</enum><header>Appropriation</header><text>In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $760,000,000, to remain available through September 30, 2029, for making grants in accordance with this section and for administrative expenses associated with carrying out this section.</text></subsection><subsection id="id8c6e50294cfa4410966d180783cf9f5f"><enum>(b)</enum><header>Use of funds</header><paragraph id="id93f89fe70da746df83ec0fb3df3e726a"><enum>(1)</enum><header>In general</header><text>The Secretary may make a grant under this section to a siting authority for, with respect to a covered transmission project, any of the following activities:</text><subparagraph id="ide87fe18b2200491ba5a8b67a94af6531"><enum>(A)</enum><text>Studies and analyses of the impacts of the covered transmission project.</text></subparagraph><subparagraph id="id60969cb0d20e4dc99b81318fab8e4aef"><enum>(B)</enum><text>Examination of up to 3 alternate siting corridors within which the covered transmission project feasibly could be sited.</text></subparagraph><subparagraph id="iddfe64dccdac74907972635bd079dd884"><enum>(C)</enum><text>Participation by the siting authority in regulatory proceedings or negotiations in another jurisdiction, or under the auspices of a Transmission Organization (as defined in section 3 of the Federal Power Act (<external-xref legal-doc="usc" parsable-cite="usc/16/796">16 U.S.C. 796</external-xref>)) that is also considering the siting or permitting of the covered transmission project.</text></subparagraph><subparagraph id="id47e48f864678462d932cff8f579940ea"><enum>(D)</enum><text>Participation by the siting authority in regulatory proceedings at the Federal Energy Regulatory Commission or a State regulatory commission for determining applicable rates and cost allocation for the covered transmission project.</text></subparagraph><subparagraph id="id3ff58dcb4abc430784c5bf701dbca7b7"><enum>(E)</enum><text>Other measures and actions that may improve the chances of, and shorten the time required for, approval by the siting authority of the application relating to the siting or permitting of the covered transmission project, as the Secretary determines appropriate.</text></subparagraph></paragraph><paragraph id="id6ad073c7115d428d921379dcd47c7a3e"><enum>(2)</enum><header>Economic development</header><text>The Secretary may make a grant under this section to a siting authority, or other State, local, or Tribal governmental entity, for economic development activities for communities that may be affected by the construction and operation of a covered transmission project, provided that the Secretary shall not enter into any grant agreement pursuant to this section that could result in any outlays after September 30, 2031.</text></paragraph></subsection><subsection id="idc256ea422bef4fef8c4c6ea517349bc4"><enum>(c)</enum><header>Conditions</header><paragraph id="iddab68cb6fe7a4141871c134fc8daebd6"><enum>(1)</enum><header>Final decision on application</header><text>In order to receive a grant for an activity described in subsection (b)(1), the Secretary shall require a siting authority to agree, in writing, to reach a final decision on the application relating to the siting or permitting of the applicable covered transmission project not later than 2 years after the date on which such grant is provided, unless the Secretary authorizes an extension for good cause.</text></paragraph><paragraph id="id02975681a46b4437bdfefd4cd3433080"><enum>(2)</enum><header>Federal share</header><text>The Federal share of the cost of an activity described in subparagraph (C) or (D) of subsection (b)(1) shall not exceed 50 percent.</text></paragraph><paragraph id="idc53400d1fe03472788dbed01e019c58d"><enum>(3)</enum><header>Economic development</header><text>The Secretary may only disburse grant funds for economic development activities under subsection (b)(2)—</text><subparagraph id="idc770488a07e84fe5b8474678cfd729ed"><enum>(A)</enum><text>to a siting authority upon approval by the siting authority of the applicable covered transmission project; and</text></subparagraph><subparagraph id="id67376fbb2f124631870e3d122442d468"><enum>(B)</enum><text>to any other State, local, or Tribal governmental entity upon commencement of construction of the applicable covered transmission project in the area under the jurisdiction of the entity.</text></subparagraph></paragraph></subsection><subsection id="ida2e1b81ceb6646bda80256a81b762e4f"><enum>(d)</enum><header>Returning funds</header><text>If a siting authority that receives a grant for an activity described in subsection (b)(1) fails to use all grant funds within 2 years of receipt, the siting authority shall return to the Secretary any such unused funds.</text></subsection><subsection id="id540438671fae4743b801921060590d59"><enum>(e)</enum><header>Definitions</header><text>In this section:</text><paragraph id="idc850b036ce2740baac2fb8575a5eb4a6"><enum>(1)</enum><header>Covered transmission project</header><text>The term <term>covered transmission project</term> means a high-voltage interstate or offshore electricity transmission line—</text><subparagraph id="id0c456efdad534b3da5015c282b40d2d0"><enum>(A)</enum><text>that is proposed to be constructed and to operate—</text><clause id="id460817e6d55940b8b1595f6c70c440e7"><enum>(i)</enum><text>at a minimum of 275 kilovolts of either alternating-current or direct-current electric energy by an entity; or</text></clause><clause id="id94078800de1447748e86c2323541efc5"><enum>(ii)</enum><text>offshore and at a minimum of 200 kilovolts of either alternating-current or direct-current electric energy by an entity; and</text></clause></subparagraph><subparagraph id="idaeaed5a3773a41e4aedf7cbc0211dd9e"><enum>(B)</enum><text>for which such entity has applied, or informed a siting authority of such entity’s intent to apply, for regulatory approval.</text></subparagraph></paragraph><paragraph id="id688b9321956f4136abce3dbb977a0e44"><enum>(2)</enum><header>Siting authority</header><text>The term <term>siting authority</term> means a State, local, or Tribal governmental entity with authority to make a final determination regarding the siting, permitting, or regulatory status of a covered transmission project that is proposed to be located in an area under the jurisdiction of the entity.</text></paragraph></subsection></section><section id="id3b06c412b33d438e877f4ad4d02b231d"><enum>50153.</enum><header>Interregional and offshore wind electricity transmission planning, modeling, and analysis</header><subsection id="idfc0e9f716b744e06883f87d542ffe8d6"><enum>(a)</enum><header>Appropriation</header><text>In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available through September 30, 2031, to carry out this section.</text></subsection><subsection id="id9a9405f4bdd144448944333dd54899f3"><enum>(b)</enum><header>Use of funds</header><text>The Secretary shall use amounts made available under subsection (a)—</text><paragraph id="idd06077a6006247459492d51f2a4a01fe"><enum>(1)</enum><text>to pay expenses associated with convening relevant stakeholders to address the development of interregional electricity transmission and transmission of electricity that is generated by offshore wind; and</text></paragraph><paragraph id="id7eab463b70bf43a68aafbaee3b61b6a2"><enum>(2)</enum><text>to conduct planning, modeling, and analysis regarding interregional electricity transmission and transmission of electricity that is generated by offshore wind, taking into account the local, regional, and national economic, reliability, resilience, security, public policy, and environmental benefits of interregional electricity transmission and transmission of electricity that is generated by offshore wind, including planning, modeling, and analysis, as the Secretary determines appropriate, pertaining to—</text><subparagraph id="id10e5718a0c514ad9b9f950b36e919c6a"><enum>(A)</enum><text>clean energy integration into the electric grid, including the identification of renewable energy zones;</text></subparagraph><subparagraph id="id987e50b6a48c476ebcd7c1b4725fc4e2"><enum>(B)</enum><text>the effects of changes in weather due to climate change on the reliability and resilience of the electric grid;</text></subparagraph><subparagraph id="id739953098a3a41f5b3a29dc5c396497a"><enum>(C)</enum><text>cost allocation methodologies that facilitate the expansion of the bulk power system;</text></subparagraph><subparagraph id="idac4aa1be393f4dcaa1dac3695e54b760"><enum>(D)</enum><text>the benefits of coordination between generator interconnection processes and transmission planning processes;</text></subparagraph><subparagraph id="id23c3803af32c4b9abe2ed81c83f22069"><enum>(E)</enum><text>the effect of increased electrification on the electric grid;</text></subparagraph><subparagraph id="id04fde9146c7e4be49ae6feabb4c632ab"><enum>(F)</enum><text>power flow modeling;</text></subparagraph><subparagraph id="id79dcb2f3641e47e48e8759d0819d097e"><enum>(G)</enum><text>the benefits of increased interconnections or interties between or among the Western Interconnection, the Eastern Interconnection, the Electric Reliability Council of Texas, and other interconnections, as applicable;</text></subparagraph><subparagraph id="idfb01016b76af4b1389675d370d87c709"><enum>(H)</enum><text>the cooptimization of transmission and generation, including variable energy resources, energy storage, and demand-side management;</text></subparagraph><subparagraph id="id30a071b474374322a0e669331ccdb83a"><enum>(I)</enum><text>the opportunities for use of nontransmission alternatives, energy storage, and grid-enhancing technologies;</text></subparagraph><subparagraph id="id12ad7e84d2f9494ea8f2cdbfa4353e92"><enum>(J)</enum><text>economic development opportunities for communities arising from development of interregional electricity transmission and transmission of electricity that is generated by offshore wind;</text></subparagraph><subparagraph id="id9e09d0e1b90a4809a3aa0e5b12b84c12"><enum>(K)</enum><text>evaluation of existing rights-of-way and the need for additional transmission corridors; and</text></subparagraph><subparagraph id="ida85d5031be224f96929f2722ab4dc383"><enum>(L)</enum><text>a planned national transmission grid, which would include a networked transmission system to optimize the existing grid for interconnection of offshore wind farms.</text></subparagraph></paragraph></subsection></section></part><part id="id54bd7409de434ef5b121568f1d16a6ad"><enum>6</enum><header>Industrial</header><section id="id947b33d7de9c4c039eb1b2f6253b2035"><enum>50161.</enum><header>Advanced industrial facilities deployment program</header><subsection id="id60f676a343054940a3efb6712e154b7e"><enum>(a)</enum><header>Office of clean energy demonstrations</header><text>In addition to amounts otherwise available, there is appropriated to the Secretary, acting through the Office of Clean Energy Demonstrations, for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $5,812,000,000, to remain available through September 30, 2026, to carry out this section.</text></subsection><subsection id="idd39721c46286496097fce4f1a871dec9"><enum>(b)</enum><header>Financial assistance</header><text>The Secretary shall use funds appropriated by subsection (a) to provide financial assistance, on a competitive basis, to eligible entities to carry out projects for—</text><paragraph id="id159b45ec8f654e9d8c5703b8e14ebabe"><enum>(1)</enum><text>the purchase and installation, or implementation, of advanced industrial technology at an eligible facility;</text></paragraph><paragraph id="ida6f8975d37dc4545b6e941053304aec7"><enum>(2)</enum><text>retrofits, upgrades to, or operational improvements at an eligible facility to install or implement advanced industrial technology; or</text></paragraph><paragraph id="id10e3d3536f924dc4ba7e03c4469ee0cf"><enum>(3)</enum><text>engineering studies and other work needed to prepare an eligible facility for activities described in paragraph (1) or (2).</text></paragraph></subsection><subsection id="id68e152c082564e908e0a8c3bbf01dc67"><enum>(c)</enum><header>Application</header><text>To be eligible to receive financial assistance under subsection (b), an eligible entity shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including the expected greenhouse gas emissions reductions to be achieved by carrying out the project.</text></subsection><subsection id="id899c5d521ba049acb8823f58e52572b4"><enum>(d)</enum><header>Priority</header><text>In providing financial assistance under subsection (b), the Secretary shall give priority consideration to projects on the basis of, as determined by the Secretary—</text><paragraph id="id5D703BB089A6490792ECA73BF4468DA5"><enum>(1)</enum><text>the expected greenhouse gas emissions reductions to be achieved by carrying out the project;</text></paragraph><paragraph id="id033cd3349def4142979d939a19e100b0"><enum>(2)</enum><text>the extent to which the project would provide the greatest benefit for the greatest number of people within the area in which the eligible facility is located; and</text></paragraph><paragraph id="id82d4422ad20f428ba1698c225b5b0885"><enum>(3)</enum><text>whether the eligible entity participates or would participate in a partnership with purchasers of the output of the eligible facility.</text></paragraph></subsection><subsection id="id595c85558c9e4abea42b5f92ad0b504c"><enum>(e)</enum><header>Cost share</header><text>The Secretary shall require an eligible entity to provide not less than 50 percent of the cost of a project carried out pursuant to this section.</text></subsection><subsection id="id08c2b9432cf541478b13efba7b6b11f2"><enum>(f)</enum><header>Administrative costs</header><text>The Secretary shall reserve not more than $300,000,000 of amounts made available under subsection (a) for administrative costs of carrying out this section.</text></subsection><subsection id="id5d4e4601abaf447aac5b16a754bf3fcb"><enum>(g)</enum><header>Definitions</header><text>In this section:</text><paragraph id="id79b99c186672493597b9c62e21326742"><enum>(1)</enum><header>Advanced industrial technology</header><text>The term <term>advanced industrial technology</term> means a technology directly involved in an industrial process, as described in any of paragraphs (1) through (6) of section 454(c) of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17113">42 U.S.C. 17113(c)</external-xref>), and designed to accelerate greenhouse gas emissions reduction progress to net-zero at an eligible facility, as determined by the Secretary.</text></paragraph><paragraph id="id84e716fbc06d42aea679ebe149a4deb6"><enum>(2)</enum><header>Eligible entity</header><text>The term <term>eligible entity</term> means the owner or operator of an eligible facility.</text></paragraph><paragraph id="id01b1cb5dbb3a410bb12931f9ab3c1c58"><enum>(3)</enum><header>Eligible facility</header><text>The term <term>eligible facility</term> means a domestic, non-Federal, nonpower industrial or manufacturing facility engaged in energy-intensive industrial processes, including production processes for iron, steel, steel mill products, aluminum, cement, concrete, glass, pulp, paper, industrial ceramics, chemicals, and other energy intensive industrial processes, as determined by the Secretary.</text></paragraph><paragraph id="id81bccfa173bd4b918ca6357c7662f674"><enum>(4)</enum><header>Financial assistance</header><text>The term <term>financial assistance</term> means a grant, rebate, direct loan, or cooperative agreement.</text></paragraph></subsection></section></part><part id="id543516cbc10e46a49c8fc374f390f9fb"><enum>7</enum><header>Other energy matters</header><section id="id7749528153d743c0b53f4bdc07566f3a"><enum>50171.</enum><header>Department of Energy Oversight</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $20,000,000, to remain available through September 30, 2031, for oversight by the Department of Energy Office of Inspector General of the Department of Energy activities for which funding is appropriated in this subtitle.</text></section><section id="idf431bc97d78a4293960aa463cbf32214"><enum>50172.</enum><header>National laboratory infrastructure</header><subsection id="id1ef8c49612c647e19bcb95e5abedea06"><enum>(a)</enum><header>Office of science</header><text>In addition to amounts otherwise available, there is appropriated to the Secretary, acting through the Director of the Office of Science, for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available through September 30, 2027—</text><paragraph id="idb24e9bf9b4804d68aa3e89b00a5eff13"><enum>(1)</enum><text>$133,240,000 to carry out activities for science laboratory infrastructure projects;</text></paragraph><paragraph id="idac0b018a3d70420498659d0aa5cf9ea2"><enum>(2)</enum><text>$303,656,000 to carry out activities for high energy physics construction and major items of equipment projects;</text></paragraph><paragraph id="id65d58a5603894641ae03d5ae735455a6"><enum>(3)</enum><text>$280,000,000 to carry out activities for fusion energy science construction and major items of equipment projects;</text></paragraph><paragraph id="idc2cb13ef0e95475e956804351619a5f0"><enum>(4)</enum><text>$217,000,000 to carry out activities for nuclear physics construction and major items of equipment projects;</text></paragraph><paragraph id="id3af90f19d8fd4d18b44c7b1506ed8a08"><enum>(5)</enum><text>$163,791,000 to carry out activities for advanced scientific computing research facilities;</text></paragraph><paragraph id="id0e5be6220e3c452f87d7bcd04654eda3"><enum>(6)</enum><text>$294,500,000 to carry out activities for basic energy sciences projects; and</text></paragraph><paragraph id="idb37a9a4ae1024432afb5511213669298"><enum>(7)</enum><text>$157,813,000 to carry out activities for isotope research and development facilities.</text></paragraph></subsection><subsection id="id1c02c4a5e97c405fb6944a62d67ec540"><enum>(b)</enum><header>Office of fossil energy and carbon management</header><text>In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $150,000,000, to remain available through September 30, 2027, to carry out activities for infrastructure and general plant projects carried out by the Office of Fossil Energy and Carbon Management.</text></subsection><subsection id="id51dbf94e7ad84e819bd469d689289c21"><enum>(c)</enum><header>Office of nuclear energy</header><text>In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $150,000,000, to remain available through September 30, 2027, to carry out activities for infrastructure and general plant projects carried out by the Office of Nuclear Energy.</text></subsection><subsection id="idcdfde972415c4464869107e6a146927d"><enum>(d)</enum><header>Office of energy efficiency and renewable energy</header><text>In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $150,000,000, to remain available through September 30, 2027, to carry out activities for infrastructure and general plant projects carried out by the Office of Energy Efficiency and Renewable Energy.</text></subsection></section><section id="id7d1fd9a4cc574d1294a0193b127a80be"><enum>50173.</enum><header>Availability of high-assay low-enriched uranium</header><subsection id="id67b4d1af13a84c6997c2b0e714c412c9"><enum>(a)</enum><header>Appropriations</header><text>In addition to amounts otherwise available, there is appropriated to the Secretary of for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available through September 30, 2026—</text><paragraph id="id3dc003ae17be49c88fc898f6500bcde2"><enum>(1)</enum><text>$100,000,000 to carry out the program elements described in subparagraphs (A) through (C) of section 2001(a)(2) of the Energy Act of 2020 (<external-xref legal-doc="usc" parsable-cite="usc/42/16281">42 U.S.C. 16281(a)(2)</external-xref>);</text></paragraph><paragraph id="id9120f33575af427996c8c8c7535b1352"><enum>(2)</enum><text>$500,000,000 to carry out the program elements described in subparagraphs (D) through (H) of that section; and</text></paragraph><paragraph id="id2bc6ff3110b54255b974bd91f7def136"><enum>(3)</enum><text>$100,000,000 to carry out activities to support the availability of high-assay low-enriched uranium for civilian domestic research, development, demonstration, and commercial use under section 2001 of the Energy Act of 2020 (<external-xref legal-doc="usc" parsable-cite="usc/42/16281">42 U.S.C. 16281</external-xref>).</text></paragraph></subsection><subsection id="id4172aee41b534eebad0cfd369a0c7c95"><enum>(b)</enum><header>Competitive procedures</header><text>To the maximum extent practicable, the Department of Energy shall, in a manner consistent with section 989 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16353">42 U.S.C. 16353</external-xref>), use a competitive, merit-based review process in carrying out research, development, demonstration, and deployment activities under section 2001 of the Energy Act of 2020 (<external-xref legal-doc="usc" parsable-cite="usc/42/16281">42 U.S.C. 16281</external-xref>).</text></subsection><subsection id="id7cc86fdfc15a4ea0878224ce7d36b99c"><enum>(c)</enum><header>Administrative expenses</header><text>The Secretary may use not more than 3 percent of the amounts appropriated by subsection (a) for administrative purposes.</text></subsection></section></part></subtitle><subtitle id="id0514371475734499b48357b0108316c5"><enum>B</enum><header>Natural resources</header><part id="id92ccf7efb7a74f8e92b66f59570d37f0"><enum>1</enum><header>General provisions</header><section id="id167b0618f6dd42a28d45179a62531414"><enum>50211.</enum><header>Definitions</header><text display-inline="no-display-inline">In this subtitle:</text><paragraph id="idabc2a221023045ac807d97ee884961b9"><enum>(1)</enum><header>Secretary</header><text>The term <term>Secretary</term> means the Secretary of the Interior.</text></paragraph><paragraph id="idadd168230d324794be811800007da1bd"><enum>(2)</enum><header>United states insular areas</header><text>The term <term>United States Insular Areas</term> means American Samoa, the Commonwealth of the Northern Mariana Islands, Guam, the Commonwealth of Puerto Rico, and the United States Virgin Islands.</text></paragraph></section></part><part id="idba8ca4e2abbd4d2fbaac2a5ec6ac9607"><enum>2</enum><header>Public lands</header><section id="id011b74d4b0a14b45a3d97b1a9667f56e"><enum>50221.</enum><header>National parks and public lands conservation and resilience</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $250,000,000, to remain available through September 30, 2031, to carry out projects for the conservation, protection, and resiliency of lands and resources administered by the National Park Service and Bureau of Land Management. None of the funds provided under this section shall be subject to cost-share or matching requirements.</text></section><section id="idbfa97de7cc554b718f914d9b51fc84c2"><enum>50222.</enum><header>National parks and public lands conservation and ecosystem restoration</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $250,000,000, to remain available through September 30, 2031, to carry out conservation, ecosystem and habitat restoration projects on lands administered by the National Park Service and Bureau of Land Management. None of the funds provided under this section shall be subject to cost-share or matching requirements.</text></section><section id="id71cb306228c547a4891b2444539237f7"><enum>50223.</enum><header>National Park Service employees</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $500,000,000, to remain available through September 30, 2030, to hire employees to serve in units of the National Park System or national historic or national scenic trails administered by the National Park Service.</text></section><section id="idDF360465F8BC4ABFBF7480DB58CAB259"><enum>50224.</enum><header>National Park System deferred maintenance</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $200,000,000, to remain available through September 30, 2026, to carry out priority deferred maintenance projects, through direct expenditures or transfers, within the boundaries of the National Park System.</text></section></part><part id="id3331b237490f473fae9b4f47426d599a"><enum>3</enum><header>Drought response and preparedness</header><section id="id77d92db4bb3044dabe65152ffbb5c434"><enum>50231.</enum><header>Bureau of Reclamation domestic water supply projects</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated to the Secretary, acting through the Commissioner of Reclamation, for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $550,000,000, to remain available through September 30, 2031, for grants, contracts, or financial assistance agreements for disadvantaged communities (identified according to criteria adopted by the Commissioner of Reclamation) in a manner as determined by the Commissioner of Reclamation for up to 100 percent of the cost of the planning, design, or construction of water projects the primary purpose of which is to provide domestic water supplies to communities or households that do not have reliable access to domestic water supplies in a State or territory described in the first section of the Act of June 17, 1902 (<external-xref legal-doc="usc" parsable-cite="usc/43/391">43 U.S.C. 391</external-xref>; 32 Stat. 388, chapter 1093).</text></section><section id="id9557fdffa841435daedca175d4899a25"><enum>50232.</enum><header>Canal improvement projects</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated to the Secretary, acting through the Commissioner of Reclamation, for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $25,000,000, to remain available through September 30, 2031, for the design, study, and implementation of projects (including pilot and demonstration projects) to cover water conveyance facilities with solar panels to generate renewable energy in a manner as determined by the Secretary or for other solar projects associated with Bureau of Reclamation projects that increase water efficiency and assist in implementation of clean energy goals. </text></section><section id="id3638f4d9d8024c928c25691f8fc393f8"><enum>50233.</enum><header>Drought mitigation in the reclamation states</header><subsection id="id929dd6093e3c4178ad3af7f84db54fb9"><enum>(a)</enum><header>Definition of reclamation state</header><text>In this section, the term <term>Reclamation State</term> means a State or territory described in the first section of the Act of June 17, 1902 (32 Stat. 388, chapter 1093; <external-xref legal-doc="usc" parsable-cite="usc/43/391">43 U.S.C. 391</external-xref>).</text></subsection><subsection id="ida6456e4038204cb4993120c74502c462"><enum>(b)</enum><header>Appropriation</header><text>In addition to amounts otherwise available, there is appropriated to the Secretary (acting through the Commissioner of Reclamation), for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $4,000,000,000, to remain available through September 30, 2026, for grants, contracts, or financial assistance agreements, in accordance with the reclamation laws, to or with public entities and Indian Tribes, that provide for the conduct of the following activities to mitigate the impacts of drought in the Reclamation States, with priority given to the Colorado River Basin and other basins experiencing comparable levels of long-term drought, to be implemented in compliance with applicable environmental law:</text><paragraph id="id8e5a8848ae224c35bd7d005f2fc25489"><enum>(1)</enum><text>Compensation for a temporary or multiyear voluntary reduction in diversion of water or consumptive water use.</text></paragraph><paragraph id="id9fd0be5424af49f0bb9a40fa3eafa649"><enum>(2)</enum><text>Voluntary system conservation projects that achieve verifiable reductions in use of or demand for water supplies or provide environmental benefits in the Lower Basin or Upper Basin of the Colorado River.</text></paragraph><paragraph id="idb4d78a50b8984c7b8ec080de892ac8a4"><enum>(3)</enum><text>Ecosystem and habitat restoration projects to address issues directly caused by drought in a river basin or inland water body.</text></paragraph></subsection><subsection id="id1993c04a1059434887afba06be014af8"><enum>(c)</enum><header>Report</header><text>Not later than 1 year after the date of enactment of this Act, and each year thereafter, the Secretary shall submit to Congress a report that describes any expenditures under this section. </text></subsection></section></part><part id="id2dfe154e4a46466d95372491bffd78bc"><enum>4</enum><header>Insular affairs</header><section id="idd9af92f255c244a5909a5c6e7dd9a984"><enum>50241.</enum><header>Office of Insular Affairs climate change technical assistance</header><subsection id="iddc36e188b40a4b78a8557629b68dd3b4"><enum>(a)</enum><header>In general</header><text>In addition to amounts otherwise available, there is appropriated to the Secretary, acting through the Office of Insular Affairs, for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $15,000,000, to remain available through September 30, 2026, to provide technical assistance for climate change planning, mitigation, adaptation, and resilience to United States Insular Areas.</text></subsection><subsection id="id9e8d4ce5c19d4716b03340f3cff20470"><enum>(b)</enum><header>Administrative expenses</header><text>In addition to amounts otherwise available, there is appropriated to the Secretary, acting through the Office of Insular Affairs, for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $900,000, to remain available through September 30, 2026, for necessary administrative expenses associated with carrying out this section.</text></subsection></section></part><part id="id5796367bb2c94d129649063acc05145e"><enum>5</enum><header>Offshore wind</header><section id="id14b91e758fe544d3b01677c7784f538c"><enum>50251.</enum><header>Leasing on the outer Continental Shelf</header><subsection id="id016584563b944fa5982c376e8bd228ab"><enum>(a)</enum><header>Leasing authorized</header><text>The Secretary may grant leases, easements, and rights-of-way pursuant to section 8(p)(1)(C) of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1337">43 U.S.C. 1337(p)(1)(C)</external-xref>) in an area withdrawn by—</text><paragraph id="idfa8b3bcb7d2248f6b202069225de785a"><enum>(1)</enum><text>the Presidential memorandum entitled <quote>Memorandum on the Withdrawal of Certain Areas of the United States Outer Continental Shelf from Leasing Disposition</quote> and dated September 8, 2020; or</text></paragraph><paragraph id="id253d95ea132b47ef8e968e9989c77bcb"><enum>(2)</enum><text>the Presidential memorandum entitled <quote>Presidential Determination on the Withdrawal of Certain Areas of the United States Outer Continental Shelf from Leasing Disposition</quote> and dated September 25, 2020.</text></paragraph></subsection><subsection id="idcc633df638ef4fa6a8512b235fcd5487"><enum>(b)</enum><header>Offshore wind for the territories</header><paragraph id="id22e94919fdda4989b31d335ad27db90b"><enum>(1)</enum><header>Application of outer continental shelf lands act with respect to territories of the united states</header><subparagraph id="id6429f1df7f664e95b1728a4e365b8c41"><enum>(A)</enum><header>In general</header><text>Section 2 of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1331">43 U.S.C. 1331</external-xref>) is amended—</text><clause id="idf57df0796248403885a2ddea89cacf2a"><enum>(i)</enum><text>in subsection (a)—</text><subclause id="idadba67bd4b0d498aa0c014527c237177"><enum>(I)</enum><text>by striking <quote>means all</quote> and inserting the following: “means—</text><quoted-block style="OLC" display-inline="no-display-inline" id="id104b9e4f1da44fb888d944cfc9b32970" changed="added" reported-display-style="italic"><paragraph id="id1dc1eafeba944492bb91b93a879b90c4"><enum>(1)</enum><text>all</text></paragraph><after-quoted-block>; and</after-quoted-block></quoted-block></subclause><subclause id="id5897007f50f740b9b4f75c7b3cb7ca20"><enum>(II)</enum><text>in paragraph (1) (as so designated), by striking <quote>control;</quote> and inserting the following: <quote>control or within the exclusive economic zone of the United States and adjacent to any territory of the United States; and</quote>; and</text></subclause><subclause id="id750e16cfc1d94c8ba6c16825690a3aae"><enum>(III)</enum><text>by adding at the end following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id4dbb59c8b32849809b2ab47a4f990601" changed="added" reported-display-style="italic"><paragraph id="id9560d0ced45a4eddbbfe8dc165a06f7b"><enum>(2)</enum><text>does not include any area conveyed by Congress to a territorial government for administration;</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subclause></clause><clause id="id1fb091b8d72142028b15ee2aaeb23e51"><enum>(ii)</enum><text>in subsection (p), by striking <quote>and</quote> after the semicolon at the end;</text></clause><clause id="id206c57f4b5124dee81ceda14d33272bf"><enum>(iii)</enum><text>in subsection (q), by striking the period at the end and inserting <quote>; and</quote>; and</text></clause><clause id="id433a008fbd734d70af9353578c8cc3ef"><enum>(iv)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="iddaacb9b63f2945d9975ab6654e17c8fe" changed="added" reported-display-style="italic"><subsection id="idd184fa209d4847919070764673ccba28"><enum>(r)</enum><text>The term <term>State</term> means—</text><paragraph id="id6178ff4e44714ec08ea2226f2e4ec1ab"><enum>(1)</enum><text>each of the several States;</text></paragraph><paragraph id="idd4756930aef3429c8f7eb476fbe2387f"><enum>(2)</enum><text>the Commonwealth of Puerto Rico;</text></paragraph><paragraph id="idc05c86db2816447392461b0de59bb2c6"><enum>(3)</enum><text>Guam;</text></paragraph><paragraph id="id14c1e441a90e4aeea7f8259ba9078ab0"><enum>(4)</enum><text>American Samoa;</text></paragraph><paragraph id="id56e0726547974b248cf8f2dc1c02ad22"><enum>(5)</enum><text>the United States Virgin Islands; and</text></paragraph><paragraph id="id8fc098c1dd184ba385d9989c6eca4ed5"><enum>(6)</enum><text>the Commonwealth of the Northern Mariana Islands.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="id10adf58dc28f4d4481ab6fd33220f3ed"><enum>(B)</enum><header>Exclusions</header><text>Section 18 of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1344">43 U.S.C. 1344</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idcbbac548dbbd444ebae1d57d3421972f" changed="added" reported-display-style="italic"><clause id="id587a27f314414b16b97abdedb1790ed9"><enum>(i)</enum><header>Application</header><text>This section shall not apply to the scheduling of any lease sale in an area of the outer Continental Shelf that is adjacent to the Commonwealth of Puerto Rico, Guam, American Samoa, the United States Virgin Islands, or the Commonwealth of the Northern Mariana Islands.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="id9cc66ac99d1d4afa876cd568bce06e28"><enum>(2)</enum><header>Wind lease sales for areas of the outer continental shelf</header><text>The Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1331">43 U.S.C. 1331 et seq.</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id4f21eb829f964d518771e5b0c31183ae" changed="added" reported-display-style="italic"><section id="idf15cf62f6b344479ab54f6654383b308"><enum>33.</enum><header>Wind lease sales for areas of the outer continental shelf offshore of territories of the united states</header><subsection id="idfafc174761144c8888c5f44006e0ebeb"><enum>(a)</enum><header>Wind lease sales off coasts of territories of the united states</header><paragraph id="id78d5d1f2972249cbb2beb9ca32d94ee8"><enum>(1)</enum><header>Call for information and nominations</header><subparagraph id="id5af9069699694f91a096ef34c9f4c769"><enum>(A)</enum><header>In general</header><text>The Secretary shall issue calls for information and nominations for proposed wind lease sales for areas of the outer Continental Shelf described in paragraph (2) that are determined to be feasible.</text></subparagraph><subparagraph id="id395bd47fd6e54fe299732afe2b1ce892"><enum>(B)</enum><header>Initial call</header><text>Not later than September 30, 2025, the Secretary shall issue an initial call for information and nominations under this paragraph.</text></subparagraph></paragraph><paragraph id="id869e89dc0da24a38a97ea7afe082374f"><enum>(2)</enum><header>Conditional wind lease sales</header><text>The Secretary may conduct wind lease sales in each area within the exclusive economic zone of the United States adjacent to the Commonwealth of Puerto Rico, Guam, American Samoa, the United States Virgin Islands, or the Commonwealth of the Northern Mariana Islands that meets each of the following criteria:</text><subparagraph id="id297937da3f044080bd009b933267dc3f"><enum>(A)</enum><text>The Secretary has concluded that a wind lease sale in the area is feasible.</text></subparagraph><subparagraph id="id97fe6796bb8647df8e34513913334e1d"><enum>(B)</enum><text>The Secretary has determined that there is sufficient interest in leasing the area.</text></subparagraph><subparagraph id="idb19c2bdfebfb4a66b9dc1e50f3f22ed7"><enum>(C)</enum><text>The Secretary has consulted with the Governor of the territory regarding the suitability of the area for wind energy development.</text></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection></section></part><part id="idcac43512022149f9b2a6e07b8f95d1f4"><enum>6</enum><header>Fossil fuel resources</header><section id="id0818f39a30f844a488148f7b531feca6"><enum>50261.</enum><header>Offshore oil and gas royalty rate</header><text display-inline="no-display-inline">Section 8(a)(1) of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1337">43 U.S.C. 1337(a)(1)</external-xref>) is amended—</text><paragraph id="idc7e3229cdf65424b80dd7547616f18be"><enum>(1)</enum><text> in each of subparagraphs (A) and (C), by striking <quote>not less than 12<fraction>1/2</fraction> per centum</quote> each place it appears and inserting <quote>not less than 16<fraction>2/3</fraction> percent, but not more than 18<fraction>3/4</fraction> percent, during the 10-year period beginning on the date of enactment of the Act titled <quote>An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14</quote>, and not less than 16<fraction>2/3</fraction> percent thereafter,</quote>;</text></paragraph><paragraph id="idb429cc5d8684432b843c094408567e9b"><enum>(2)</enum><text>in subparagraph (F), by striking <quote>no less than 12<fraction>1/2</fraction> per centum</quote> and inserting <quote>not less than 16<fraction>2/3</fraction> percent, but not more than 18<fraction>3/4</fraction> percent, during the 10-year period beginning on the date of enactment of the Act titled <quote>An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14</quote>, and not less than 16<fraction>2/3</fraction> percent thereafter,</quote>; and</text></paragraph><paragraph id="idd2f8c5718a1841078ffb6b772eb1b2a3"><enum>(3)</enum><text>in subparagraph (H), by striking <quote>no less than 12 and <fraction>1/2</fraction> per centum</quote> and inserting <quote>not less than 16<fraction>2/3</fraction> percent, but not more than 18<fraction>3/4</fraction> percent, during the 10-year period beginning on the date of enactment of the Act titled <quote>An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14</quote>, and not less than 16<fraction>2/3</fraction> percent thereafter,</quote>.</text></paragraph></section><section id="idee3b5f855d254d1ea1c692956a4f1e50"><enum>50262.</enum><header>Mineral Leasing Act modernization</header><subsection id="id5f0135c76e43461ba32d2e9a39420f92"><enum>(a)</enum><header>Onshore oil and gas royalty rates</header><paragraph id="idef52ecf87e054853895fd88eb6073f64"><enum>(1)</enum><header>Lease of oil and gas land</header><text>Section 17 of the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/226">30 U.S.C. 226</external-xref>) is amended—</text><subparagraph id="id11ce10649f1a4878a6c70085f8eb2f3a"><enum>(A)</enum><text>in subsection (b)(1)(A), in the fifth sentence—</text><clause id="id4891EED71BDD499C8797D5CC4CBDD042"><enum>(i)</enum><text>by striking <quote>12.5</quote> and inserting <quote>16<fraction>2/3</fraction></quote>; and</text></clause><clause id="id32d578d634ac466cae32408e882d7b4d"><enum>(ii)</enum><text>by inserting <quote>or, in the case of a lease issued during the 10-year period beginning on the date of enactment of the Act titled <quote>An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14</quote>, 16<fraction>2/3</fraction> percent in amount or value of the production removed or sold from the lease</quote> before the period at the end; and</text></clause></subparagraph><subparagraph id="ide9fc414e994b4ad4ac8b850b149b4115"><enum>(B)</enum><text>by striking <quote>12<fraction>½</fraction> per centum</quote> each place it appears and inserting <quote>16<fraction>2/3</fraction> percent</quote>.</text></subparagraph></paragraph><paragraph id="id0e7becd3234c41c4a32824d61ca52e20"><enum>(2)</enum><header>Conditions for reinstatement</header><text>Section 31(e)(3) of the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/188">30 U.S.C. 188(e)(3)</external-xref>) is amended by striking <quote>16<fraction>2/3</fraction></quote> each place it appears and inserting <quote>20</quote>.</text></paragraph></subsection><subsection id="id7f587daa03bf43d590160203aa9e3754"><enum>(b)</enum><header>Oil and gas minimum bid</header><text>Section 17(b) of the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/226">30 U.S.C. 226(b)</external-xref>) is amended—</text><paragraph id="id96e5a77775354d888bcb5ba3bc777f72"><enum>(1)</enum><text>in paragraph (1)(B), in the first sentence, by striking <quote>$2 per acre for a period of 2 years from the date of enactment of the Federal Onshore Oil and Gas Leasing Reform Act of 1987.</quote> and inserting <quote>$10 per acre during the 10-year period beginning on the date of enactment of the Act titled <quote>An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14</quote>.</quote>; and</text></paragraph><paragraph id="id2bd61180a8fb4732a119d798c9df61e1"><enum>(2)</enum><text>in paragraph (2)(C), by striking <quote>$2 per acre</quote> and inserting <quote>$10 per acre</quote>.</text></paragraph></subsection><subsection id="id0f08ae1a213b4ad4b15cb6afc1acc689"><enum>(c)</enum><header>Fossil fuel rental rates</header><paragraph id="id36a38159b5c048eba9e674eeaa6a7ae6"><enum>(1)</enum><header>Annual rentals</header><text>Section 17(d) of the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/226">30 U.S.C. 226(d)</external-xref>) is amended, in the first sentence, by striking <quote>$1.50 per acre</quote> and all that follows through the period at the end and inserting <quote>$3 per acre per year during the 2-year period beginning on the date the lease begins for new leases, and after the end of that 2-year period, $5 per acre per year for the following 6-year period, and not less than $15 per acre per year thereafter, or, in the case of a lease issued during the 10-year period beginning on the date of enactment of the Act titled <quote>An Act to provide for reconciliation pursuant to title II of S. Con. Res. 14</quote>, $3 per acre per year during the 2-year period beginning on the date the lease begins, and after the end of that 2-year period, $5 per acre per year for the following 6-year period, and $15 per acre per year thereafter.</quote>. </text></paragraph><paragraph id="idb6c46bb61da4410281a1877489904dc2"><enum>(2)</enum><header>Rentals in reinstated leases</header><text>Section 31(e)(2) of the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/188">30 U.S.C. 188(e)(2)</external-xref>) is amended by striking <quote>$10</quote> and inserting <quote>$20</quote>.</text></paragraph></subsection><subsection id="id05be5ca63ce64dc6be16d6ac16913dd2"><enum>(d)</enum><header>Expression of interest fee</header><text>Section 17 of the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/226">30 U.S.C. 226</external-xref>) is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="ida2a17b2fc1324c8a9ed9b8e95dd5f200" changed="added" reported-display-style="italic"><subsection id="ida60bfb14f4ed45ad87cac2325aaecad1"><enum>(q)</enum><header>Fee for expression of interest</header><paragraph id="id50a526736e5942b4ac2cb58d4798b0ef"><enum>(1)</enum><header>In general</header><text>The Secretary shall assess a nonrefundable fee against any person that, in accordance with procedures established by the Secretary to carry out this subsection, submits an expression of interest in leasing land available for disposition under this section for exploration for, and development of, oil or gas.</text></paragraph><paragraph id="id00e23ddebce94ac6a1e51513ad545390"><enum>(2)</enum><header>Amount of fee</header><subparagraph id="id73a311c846ca46fdbda6ce82e1125b77"><enum>(A)</enum><header>In general</header><text>Subject to subparagraph (B), the fee assessed under paragraph (1) shall be $5 per acre of the area covered by the applicable expression of interest.</text></subparagraph><subparagraph id="idcfa4a203c2824ab498ec2714aad9c397"><enum>(B)</enum><header>Adjustment of fee</header><text>The Secretary shall, by regulation, not less frequently than every 4 years, adjust the amount of the fee under subparagraph (A) to reflect the change in inflation.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="idb76ad9741dac413594d198759df992c8"><enum>(e)</enum><header>Elimination of noncompetitive leasing</header><paragraph id="id0b42b5a919e046aeb83ff79a6e22b746"><enum>(1)</enum><header>In general</header><text>Section 17 of the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/226">30 U.S.C. 226</external-xref>) is amended—</text><subparagraph id="idec93d92a55f14323a1133d77273ca084"><enum>(A)</enum><text>in subsection (b)—</text><clause id="idcdfcf4bdfde7452cac23fe3858e22cb8"><enum>(i)</enum><text>in paragraph (1)(A)—</text><subclause id="id89067d64b79a4b2ba13ef295c2e7a798"><enum>(I)</enum><text>in the first sentence, by striking <quote>paragraphs (2) and (3) of this subsection</quote> and inserting <quote>paragraph (2)</quote>; and</text></subclause><subclause id="idbcb0f3634a7e4a62b10cfe24d371c4dd"><enum>(II)</enum><text>by striking the last sentence; and</text></subclause></clause><clause id="idecfce13d6f0d4a7cb5d07cbd6a224223"><enum>(ii)</enum><text>by striking paragraph (3);</text></clause></subparagraph><subparagraph id="ida51a5f2bb545428aafc3b7cbb55b1719"><enum>(B)</enum><text>by striking subsection (c) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idcb52d419d81c4434b59e1603a8e37694" changed="added" reported-display-style="italic"><subsection id="id936360bb3b924eda98e79c90584078e7"><enum>(c)</enum><header>Additional rounds of competitive bidding</header><text>Land made available for leasing under subsection (b)(1) for which no bid is accepted or received, or the land for which a lease terminates, expires, is cancelled, or is relinquished, may be made available by the Secretary of the Interior for a new round of competitive bidding under that subsection.</text></subsection><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph><subparagraph id="ide686f60afd68463f8e948d8b2792372f"><enum>(C)</enum><text>by striking subsection (e) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id79eaf11b42cf436598ff448f87d93c80" changed="added" reported-display-style="italic"><subsection id="id401d88f730bf4e84803ba89e8dc23703"><enum>(e)</enum><header>Term of lease</header><paragraph id="id91d6908b3a734256affeb4d0e8a1e8f5"><enum>(1)</enum><header>In general</header><text>Any lease issued under this section, including a lease for tar sand areas, shall be for a primary term of 10 years.</text></paragraph><paragraph id="ida5fabd7b7c0a47799d0e3dd643934669"><enum>(2)</enum><header>Continuation of lease</header><text>A lease described in paragraph (1) shall continue after the primary term of the lease for any period during which oil or gas is produced in paying quantities.</text></paragraph><paragraph id="id3ba8a0698a854a21b0812c43d33e7807"><enum>(3)</enum><header>Additional extensions</header><text>Any lease issued under this section for land on which, or for which under an approved cooperative or unit plan of development or operation, actual drilling operations were commenced and diligently prosecuted prior to the end of the primary term of the lease shall be extended for 2 years and for any period thereafter during which oil or gas is produced in paying quantities.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="idd60c0fcae4ee4caa82ca82ea4d16ace0"><enum>(2)</enum><header>Conforming amendments</header><text>Section 31 of the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/188">30 U.S.C. 188</external-xref>) is amended—</text><subparagraph id="id917ecc87806643ec9c32b026145a2eb5"><enum>(A)</enum><text>in subsection (d)(1), in the first sentence, by striking <quote>or section 17(c) of this Act</quote>;</text></subparagraph><subparagraph id="id57f710af6a674e7ba295f17bacf3e136"><enum>(B)</enum><text>in subsection (e)—</text><clause id="id072c8d14dfb24a8b899a6f28962d892f"><enum>(i)</enum><text>in paragraph (2)—</text><subclause id="ide4144a87864c4d8b9f805948480156ee"><enum>(I)</enum><text>by striking <quote>either</quote>; and</text></subclause><subclause id="id3d91158745194fdb95f1e679bd54f479"><enum>(II)</enum><text>by striking <quote>or the inclusion</quote> and all that follows through <quote>, all</quote>; and</text></subclause></clause><clause id="id17d1d641123b41ccb276ad65c725943f"><enum>(ii)</enum><text>in paragraph (3)—</text><subclause id="id0f36c0b9bf34459eb57c27cc584a4851"><enum>(I)</enum><text>in subparagraph (A), by adding <quote>and</quote> after the semicolon;</text></subclause><subclause id="id143264a7b15248c49eb50710ea341606"><enum>(II)</enum><text>by striking subparagraph (B); and</text></subclause><subclause id="id7e5728af98bb4ad4b550f99ba8bcacae"><enum>(III)</enum><text>by striking <quote>(3)(A) payment</quote> and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="ided2000ec47224bd8960109ba8582ebef" changed="added" reported-display-style="italic"><paragraph id="id0aed17ae20a048f2849f1ef340048371"><enum>(3)</enum><text>payment</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></subclause></clause></subparagraph><subparagraph id="ide4b1315046fc4682b9c730277271d300"><enum>(C)</enum><text>in subsection (g)—</text><clause id="idd68dc0337faa41009d753c3d87243cac"><enum>(i)</enum><text>in paragraph (1), by striking <quote>as a competitive</quote> and all that follows through <quote>of this Act</quote> and inserting <quote>in the same manner as the original lease issued pursuant to section 17</quote>;</text></clause><clause id="id5b39fcd86d064126868d24cff4466714"><enum>(ii)</enum><text>by striking paragraph (2);</text></clause><clause id="id108d4fe8940841f0a4647cf81a449bed"><enum>(iii)</enum><text>by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively; and</text></clause><clause id="id9de2194e76e342ddb1c882cfb557773f"><enum>(iv)</enum><text>in paragraph (2) (as so redesignated), by striking <quote>applicable to leases issued under subsection 17(c) of this Act (<external-xref legal-doc="usc" parsable-cite="usc/30/226">30 U.S.C. 226(c)</external-xref>) except,</quote> and inserting <quote>except</quote>;</text></clause></subparagraph><subparagraph id="id143e8abee8b742b0b24dd5a070225894"><enum>(D)</enum><text>in subsection (h), by striking <quote>subsections (d) and (f) of this section</quote> and inserting <quote>subsection (d)</quote>;</text></subparagraph><subparagraph id="idb07ae51786e541719726d3570f70c2e6"><enum>(E)</enum><text>in subsection (i), by striking <quote>(i)(1) In acting</quote> and all that follows through <quote>of this section</quote> in paragraph (2) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="iddbf005276de74424b68bac203d18c6e1" changed="added" reported-display-style="italic"><clause id="ide07536e7f56140dc86125f12c1fde62d"><enum>(i)</enum><header>Royalty reduction in reinstated leases</header><text>In acting on a petition for reinstatement pursuant to subsection (d)</text></clause><after-quoted-block>;</after-quoted-block></quoted-block></subparagraph><subparagraph id="ida6585d18cc0a4f569272671239764114"><enum>(F)</enum><text>by striking subsection (f); and</text></subparagraph><subparagraph id="id130ab0f7c31543fb8f1e321cce93eec4"><enum>(G)</enum><text>by redesignating subsections (g) through (j) as subsections (f) through (i), respectively.</text></subparagraph></paragraph></subsection></section><section id="id9e6aafc5177d4f558d7bf1e3f397d233"><enum>50263.</enum><header>Royalties on all extracted methane</header><subsection id="id7a24d567d1db407b90ec291682830d7f"><enum>(a)</enum><header>In general</header><text>For all leases issued after the date of enactment of this Act, except as provided in subsection (b), royalties paid for gas produced from Federal land and on the outer Continental Shelf shall be assessed on all gas produced, including all gas that is consumed or lost by venting, flaring, or negligent releases through any equipment during upstream operations.</text></subsection><subsection id="idabab40a5123846d7b1619acef53b8c56"><enum>(b)</enum><header>Exception</header><text>Subsection (a) shall not apply with respect to—</text><paragraph id="idc3128d5a0c5c4078b0c78aa6575b426f"><enum>(1)</enum><text>gas vented or flared for not longer than 48 hours in an emergency situation that poses a danger to human health, safety, or the environment;</text></paragraph><paragraph id="id467681d621714da2a7186fd53a9f4d08"><enum>(2)</enum><text>gas used or consumed within the area of the lease, unit, or communitized area for the benefit of the lease, unit, or communitized area; or</text></paragraph><paragraph id="id3776a1c10ef14bfd999f686330f42528"><enum>(3)</enum><text>gas that is unavoidably lost.</text></paragraph></subsection></section><section id="id2ca860e66e8549c782d31ccc1f354c46"><enum>50264.</enum><header>Lease sales under the 2017–2022 Outer Continental Shelf leasing program</header><subsection id="id9564a4314b124d438045779170302301"><enum>(a)</enum><header>Definitions</header><text>In this section:</text><paragraph id="ided0ed268b1394ef692f15259cb3e7da0"><enum>(1)</enum><header>Lease sale 257</header><text>The term <term>Lease Sale 257</term> means the lease sale numbered 257 that was approved in the Record of Decision described in the notice of availability of a record of decision issued on August 31, 2021, entitled <quote>Gulf of Mexico, Outer Continental Shelf (OCS), Oil and Gas Lease Sale 257</quote> (86 Fed. Reg. 50160 (September 7, 2021)), and is the subject of the final notice of sale entitled <quote>Gulf of Mexico Outer Continental Shelf Oil and Gas Lease Sale 257</quote> (86 Fed. Reg. 54728 (October 4, 2021)).</text></paragraph><paragraph id="id4cc68f68cdc3476cbced01881a1efca6"><enum>(2)</enum><header>Lease sale 258</header><text>The term <term>Lease Sale 258</term> means the lease sale numbered 258 described in the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program published on November 18, 2016, and approved by the Secretary in the Record of Decision issued on January 17, 2017, described in the notice of availability entitled <quote>Record of Decision for the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Program Final Programmatic Environmental Impact Statement; MMAA104000</quote> (82 Fed. Reg. 6643 (January 19, 2017)).</text></paragraph><paragraph id="id81c3c7d96bd846c59e4e4b4eccc8b145"><enum>(3)</enum><header>Lease sale 259</header><text>The term <term>Lease Sale 259</term> means the lease sale numbered 259 described in the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program published on November 18, 2016, and approved by the Secretary in the Record of Decision issued on January 17, 2017, described in the notice of availability entitled <quote>Record of Decision for the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Program Final Programmatic Environmental Impact Statement; MMAA104000</quote> (82 Fed. Reg. 6643 (January 19, 2017)). </text></paragraph><paragraph id="idf40dc2b3ed8645b69392f640911fe34e"><enum>(4)</enum><header>Lease sale 261</header><text>The term <term>Lease Sale 261</term> means the lease sale numbered 261 described in the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Proposed Final Program published on November 18, 2016, and approved by the Secretary in the Record of Decision issued on January 17, 2017, described in the notice of availability entitled <quote>Record of Decision for the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Program Final Programmatic Environmental Impact Statement; MMAA104000</quote> (82 Fed. Reg. 6643 (January 19, 2017)).</text></paragraph></subsection><subsection id="id121df9832ac64e68b321f94e52cfd6bd"><enum>(b)</enum><header>Lease sale 257 reinstatement</header><paragraph id="idb0d957e1bde74e3399c2d49fc596f5ba"><enum>(1)</enum><header>Acceptance of bids</header><text>Not later 30 days after the date of enactment of this Act, the Secretary shall, without modification or delay—</text><subparagraph id="ide1e53c92f55f4efdadbdd52c3285ee94"><enum>(A)</enum><text>accept the highest valid bid for each tract or bidding unit of Lease Sale 257 for which a valid bid was received on November 17, 2021; and</text></subparagraph><subparagraph id="id929eca48f055407997bc41e54e434005"><enum>(B)</enum><text>provide the appropriate lease form to the winning bidder to execute and return.</text></subparagraph></paragraph><paragraph id="id7e22b7effd104396998cfc63295e25c5"><enum>(2)</enum><header>Lease issuance</header><text>On receipt of an executed lease form under paragraph (1)(B) and payment of the rental for the first year, the balance of the bonus bid (unless deferred), and any required bond or security from the high bidder, the Secretary shall promptly issue to the high bidder a fully executed lease, in accordance with—</text><subparagraph id="idfd08d647eeaf48b0aa461d7f57787f7d"><enum>(A)</enum><text>the regulations in effect on the date of Lease Sale 257; and</text></subparagraph><subparagraph id="idc3e048e0adba49f2a014239355825a28"><enum>(B)</enum><text>the terms and conditions of the final notice of sale entitled <quote>Gulf of Mexico Outer Continental Shelf Oil and Gas Lease Sale 257</quote> (86 Fed. Reg. 54728 (October 4, 2021)).</text></subparagraph></paragraph></subsection><subsection id="id50695be4537a4855b27ae1b8c6741f4f"><enum>(c)</enum><header>Requirement for Lease Sale 258</header><text>Notwithstanding the expiration of the 2017–2022 leasing program, not later than December 31, 2022, the Secretary shall conduct Lease Sale 258 in accordance with the Record of Decision approved by the Secretary on January 17, 2017, described in the notice of availability entitled <quote>Record of Decision for the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Program Final Programmatic Environmental Impact Statement; MMAA104000</quote> issued on January 17, 2017 (82 Fed. Reg. 6643 (January 19, 2017)). </text></subsection><subsection id="idbef37304abdb44b1ad59963b96b079ad"><enum>(d)</enum><header>Requirement for lease sale 259</header><text>Notwithstanding the expiration of the 2017–2022 leasing program, not later than March 31, 2023, the Secretary shall conduct Lease Sale 259 in accordance with the Record of Decision approved by the Secretary on January 17, 2017, described in the notice of availability entitled <quote>Record of Decision for the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Program Final Programmatic Environmental Impact Statement; MMAA104000</quote> issued on January 17, 2017 (82 Fed. Reg. 6643 (January 19, 2017)). </text></subsection><subsection id="idb6aaf12988ac48e291d0cb232e5daf91"><enum>(e)</enum><header>Requirement for lease sale 261</header><text>Notwithstanding the expiration of the 2017–2022 leasing program, not later than September 30, 2023, the Secretary shall conduct Lease Sale 261 in accordance with the Record of Decision approved by the Secretary on January 17, 2017, described in the notice of availability entitled <quote>Record of Decision for the 2017–2022 Outer Continental Shelf Oil and Gas Leasing Program Final Programmatic Environmental Impact Statement; MMAA104000</quote> issued on January 17, 2017 (82 Fed. Reg. 6643 (January 19, 2017)).</text></subsection></section><section id="id5659761af273495c98dd8e06c73a89f6"><enum>50265.</enum><header>Ensuring energy security</header><subsection id="id3d9e8843cc2e4e57a34bdc844377e7d8"><enum>(a)</enum><header>Definitions</header><text>In this section:</text><paragraph id="id00c0abb1719c417998cefa4a5e96b8b0"><enum>(1)</enum><header>Federal land</header><text>The term <term>Federal land</term> means public lands (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (<external-xref legal-doc="usc" parsable-cite="usc/43/1702">43 U.S.C. 1702</external-xref>)).</text></paragraph><paragraph id="id4c5ee84e700d4e708113851881903cdd"><enum>(2)</enum><header>Offshore lease sale</header><text>The term <term>offshore lease sale</term> means an oil and gas lease sale—</text><subparagraph id="idbebc9a0df7854d31ada58f27c978822e"><enum>(A)</enum><text>that is held by the Secretary in accordance with the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1331">43 U.S.C. 1331 et seq.</external-xref>); and</text></subparagraph><subparagraph id="id9c6c760963f84573801504ad61fccb83"><enum>(B)</enum><text>that, if any acceptable bids have been received for any tract offered in the lease sale, results in the issuance of a lease.</text></subparagraph></paragraph><paragraph id="idcb6984e26976484b851b97a98a2570b2"><enum>(3)</enum><header>Onshore lease sale</header><text>The term <term>onshore lease sale</term> means a quarterly oil and gas lease sale—</text><subparagraph id="ida34d32b0445a4471ab7261c87ac1a748"><enum>(A)</enum><text>that is held by the Secretary in accordance with section 17 of the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/226">30 U.S.C. 226</external-xref>); and</text></subparagraph><subparagraph id="iddc5560e35d5f4a309eae22b8bd371956"><enum>(B)</enum><text>that, if any acceptable bids have been received for any parcel offered in the lease sale, results in the issuance of a lease.</text></subparagraph></paragraph></subsection><subsection id="id225a4477b0c34691b2c7e9118271f68a"><enum>(b)</enum><header>Limitation on issuance of certain leases or rights-of-way</header><text>During the 10-year period beginning on the date of enactment of this Act—</text><paragraph id="id81ead00c670e40e3a7b0bd5c37362ff5"><enum>(1)</enum><text>the Secretary may not issue a right-of-way for wind or solar energy development on Federal land unless—</text><subparagraph id="iddfff1eab29a94a1da6862b3adf21d367"><enum>(A)</enum><text>an onshore lease sale has been held during the 120-day period ending on the date of the issuance of the right-of-way for wind or solar energy development; and</text></subparagraph><subparagraph id="idb932218b4ea547099ef0cd500d3afc9b"><enum>(B)</enum><text>the sum total of acres offered for lease in onshore lease sales during the 1-year period ending on the date of the issuance of the right-of-way for wind or solar energy development is not less than the lesser of—</text><clause id="idcd25a3bdb643402dafd71d25ed51277c"><enum>(i)</enum><text>2,000,000 acres; and</text></clause><clause id="id130a1f6642194bcc97c2d148f91eab89"><enum>(ii)</enum><text>50 percent of the acreage for which expressions of interest have been submitted for lease sales during that period; and</text></clause></subparagraph></paragraph><paragraph id="id6b4af91de39340b7a8fe170fe6f30dd4"><enum>(2)</enum><text>the Secretary may not issue a lease for offshore wind development under section 8(p)(1)(C) of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1337">43 U.S.C. 1337(p)(1)(C)</external-xref>) unless—</text><subparagraph id="id742be109d7bd44b788158cfa2fd2a300"><enum>(A)</enum><text>an offshore lease sale has been held during the 1-year period ending on the date of the issuance of the lease for offshore wind development; and</text></subparagraph><subparagraph id="id92a8d9c605784b68a94191a6eeab3cea"><enum>(B)</enum><text>the sum total of acres offered for lease in offshore lease sales during the 1-year period ending on the date of the issuance of the lease for offshore wind development is not less than 60,000,000 acres.</text></subparagraph></paragraph></subsection><subsection id="idfe03ccfafb9546aab440201378356cd1"><enum>(c)</enum><header>Savings</header><text>Except as expressly provided in paragraphs (1) and (2) of subsection (b), nothing in this section supersedes, amends, or modifies existing law. </text></subsection></section></part><part id="id1AA3321829D04EAE893D105323075F1F" style="OLC"><enum>7</enum><header>United States Geological Survey</header><section id="id942e22d052e340f28ba5b848f20606e8"><enum>50271.</enum><header>United States Geological Survey 3D elevation program</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated to the Secretary, acting through the Director of the United States Geological Survey, for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $23,500,000, to remain available through September 30, 2031, to produce, collect, disseminate, and use 3D elevation data. </text></section></part><part id="id8631ebbe877e4eff8238f52d9bd34723"><enum>8</enum><header>Other natural resources matters</header><section id="id36170e38121e4d1fb3f893ac2c10ed6e"><enum>50281.</enum><header>Department of the Interior oversight</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $10,000,000, to remain available through September 30, 2031, for oversight by the Department of the Interior Office of Inspector General of the Department of the Interior activities for which funding is appropriated in this subtitle. </text></section></part></subtitle><subtitle id="idC99206E8ED644BF28DFD56F3F86470A9" style="OLC"><enum>C</enum><header>Environmental reviews</header><section id="id4f53028d12c74c8899e63a2151268f62"><enum>50301.</enum><header>Department of Energy</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated to the Secretary of Energy for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $115,000,000, to remain available through September 30, 2031, to provide for the hiring and training of personnel, the development of programmatic environmental documents, the procurement of technical or scientific services for environmental reviews, the development of environmental data or information systems, stakeholder and community engagement, and the purchase of new equipment for environmental analysis to facilitate timely and efficient environmental reviews and authorizations.</text></section><section id="id68b33aacac054be7aa9207f333b9a39f"><enum>50302.</enum><header>Federal Energy Regulatory Commission</header><subsection id="id1f648881adb146da992f5077e07609cb"><enum>(a)</enum><header>In general</header><text>In addition to amounts otherwise available, there is appropriated to the Federal Energy Regulatory Commission for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available through September 30, 2031, to provide for the hiring and training of personnel, the development of programmatic environmental documents, the procurement of technical or scientific services for environmental reviews, the development of environmental data or information systems, stakeholder and community engagement, and the purchase of new equipment for environmental analysis to facilitate timely and efficient environmental reviews and authorizations.</text></subsection><subsection id="idff8a0db101374b15894f3bfec012b63a"><enum>(b)</enum><header>Fees and charges</header><text>Section 3401(a) of the Omnibus Budget Reconciliation Act of 1986 (<external-xref legal-doc="usc" parsable-cite="usc/42/7178">42 U.S.C. 7178(a)</external-xref>) shall not apply to the costs incurred by the Federal Energy Regulatory Commission in carrying out this section.</text></subsection></section><section id="id57b42b738d1b468dbaff108bfdec4eb7"><enum>50303.</enum><header>Department of the Interior</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated to the Secretary of the Interior for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $150,000,000, to remain available through September 30, 2026, to provide for the hiring and training of personnel, the development of programmatic environmental documents, the procurement of technical or scientific services for environmental reviews, the development of environmental data or information systems, stakeholder and community engagement, and the purchase of new equipment for environmental analysis to facilitate timely and efficient environmental reviews and authorizations by the National Park Service, the Bureau of Land Management, the Bureau of Ocean Energy Management, the Bureau of Reclamation, the Bureau of Safety and Environmental Enforcement, and the Office of Surface Mining Reclamation and Enforcement. </text></section></subtitle><enum>VI</enum><header>Committee on Environment and Public Works</header><subtitle id="H9DE9C1AD506C4EFBB3730F4A0BA349B8"><enum>A</enum><header>Air Pollution</header><section id="H07A29F307F4C46D88720032C46F4E750" section-type="subsequent-section" commented="no"><enum>60101.</enum><header>Clean heavy-duty vehicles</header><text display-inline="no-display-inline">The Clean Air Act is amended by inserting after section 131 of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7431">42 U.S.C. 7431</external-xref>) the following:</text><quoted-block style="OLC" id="H93700BF763F141DEA863FE1D2702DDD0" display-inline="no-display-inline" changed="added" reported-display-style="italic"><section id="H3C36A5FDCDCF4AB9B93030C35383D97E" commented="no"><enum>132.</enum><header>Clean heavy-duty vehicles</header><subsection id="H3AEA58BD5F1A44ADA949D99624D580BB" commented="no"><enum>(a)</enum><header>Appropriations</header><paragraph id="H49F87E7EB72C498CAD35E5B83D957FF1" commented="no"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $600,000,000, to remain available until September 30, 2031, to carry out this section.</text></paragraph><paragraph id="H85582AFCDAA74948B974CC31FD72CCA3" commented="no"><enum>(2)</enum><header>Nonattainment areas</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $400,000,000, to remain available until September 30, 2031, to make awards under this section to eligible recipients and to eligible contractors that propose to replace eligible vehicles to serve 1 or more communities located in an air quality area designated pursuant to section 107 as nonattainment for any air pollutant. </text></paragraph><paragraph id="H6374C7010D324ADAB7D8B25706ABB980" commented="no"><enum>(3)</enum><header>Reservation</header><text display-inline="yes-display-inline">Of the funds appropriated by paragraph (1), the Administrator shall reserve 3 percent for administrative costs necessary to carry out this section.</text></paragraph></subsection><subsection id="H24EC7770530D4A9C8FBF28D60B763223" commented="no"><enum>(b)</enum><header>Program</header><text display-inline="yes-display-inline">Beginning not later than 180 days after the date of enactment of this section, the Administrator shall implement a program to make awards of grants and rebates to eligible recipients, and to make awards of contracts to eligible contractors for providing rebates, for up to 100 percent of costs for—</text><paragraph id="H973BED2C3A674DCDB305DC4E0BFCE964" commented="no"><enum>(1)</enum><text>the incremental costs of replacing an eligible vehicle that is not a zero-emission vehicle with a zero-emission vehicle, as determined by the Administrator based on the market value of the vehicles;</text></paragraph><paragraph id="H9DFA5F5CD088458498DB31E684BAC812" commented="no"><enum>(2)</enum><text display-inline="yes-display-inline">purchasing, installing, operating, and maintaining infrastructure needed to charge, fuel, or maintain zero-emission vehicles;</text></paragraph><paragraph id="H232201CA866B4FAC8D4F194133FEE834" commented="no"><enum>(3)</enum><text>workforce development and training to support the maintenance, charging, fueling, and operation of zero-emission vehicles; and</text></paragraph><paragraph id="H6DB16DA43A9B4B4ABF02E4AE043EC4BB" commented="no"><enum>(4)</enum><text>planning and technical activities to support the adoption and deployment of zero-emission vehicles.</text></paragraph></subsection><subsection id="HDD8C7070111A4DF1AE2894F6B2121286" commented="no"><enum>(c)</enum><header>Applications</header><text>To seek an award under this section, an eligible recipient or eligible contractor shall submit to the Administrator an application at such time, in such manner, and containing such information as the Administrator shall prescribe.</text></subsection><subsection id="HFAD776E773434D6C911A69057EB60527" commented="no"><enum>(d)</enum><header>Definitions</header><text>For purposes of this section:</text><paragraph id="H741B2E3CA4C74BD881ED21FF52BF4974" commented="no"><enum>(1)</enum><header>Eligible contractor</header><text>The term <term>eligible contractor</term> means a contractor that has the capacity—</text><subparagraph id="H7F706C1718F549028DFA01E86A9BA310" commented="no"><enum>(A)</enum><text>to sell, lease, license, or contract for service zero-emission vehicles, or charging or other equipment needed to charge, fuel, or maintain zero-emission vehicles, to individuals or entities that own, lease, license, or contract for service an eligible vehicle; or</text></subparagraph><subparagraph id="H2903C720ADDE4ACCAD2453AFF0C77B0E" commented="no"><enum>(B)</enum><text>to arrange financing for such a sale, lease, license, or contract for service.</text></subparagraph></paragraph><paragraph id="HF054C3C3D4FE405D9E6097B8F090F5AA" commented="no"><enum>(2)</enum><header>Eligible recipient</header><text>The term <term>eligible recipient</term> means—</text><subparagraph id="H4A7CA08EF8F64ED49E2BC76910F42E45" commented="no"><enum>(A)</enum><text>a State;</text></subparagraph><subparagraph id="HC912FF87A70B44EB80127E9BE9922048"><enum>(B)</enum><text>a municipality;</text></subparagraph><subparagraph id="H8A93BEE0956B4B37A8B8F565B4B89B20" commented="no"><enum>(C)</enum><text>an Indian tribe; or</text></subparagraph><subparagraph id="H9DE6429297244DAE9998E2BBF78B61F8" commented="no"><enum>(D)</enum><text>a nonprofit school transportation association.</text></subparagraph></paragraph><paragraph id="H41AA65BBF1F84529BDDE54ABDBA9C3A3" commented="no"><enum>(3)</enum><header>Eligible vehicle</header><text display-inline="yes-display-inline">The term <term>eligible vehicle</term> means a Class 6 or Class 7 heavy-duty vehicle as defined in section 1037.801 of title 40, Code of Federal Regulations (as in effect on the date of enactment of this section).</text></paragraph><paragraph commented="no" id="id8A65E77A878344E5831F7198BB57AC7A"><enum>(4)</enum><header>Greenhouse gas</header><text display-inline="yes-display-inline">The term <term>greenhouse gas</term> means the air pollutants carbon dioxide, hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur hexafluoride. </text></paragraph><paragraph id="H05196389C00F4A47BF0F9BCB4E919F52" commented="no"><enum>(5)</enum><header>Zero-emission vehicle</header><text display-inline="yes-display-inline">The term <term>zero-emission vehicle</term> means a vehicle that has a drivetrain that produces, under any possible operational mode or condition, zero exhaust emissions of—</text><subparagraph id="H890E478D2BCF4B8C9F1E1C0151F5E322" commented="no"><enum>(A)</enum><text>any air pollutant that is listed pursuant to section 108(a) (or any precursor to such an air pollutant); and</text></subparagraph><subparagraph id="H7E63F8EE6F4647A2B3E0575339FF55C2" commented="no"><enum>(B)</enum><text>any greenhouse gas.</text></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="HE2B45D357E1E49808363E289930EA75D" commented="no"><enum>60102.</enum><header>Grants to reduce air pollution at ports</header><text display-inline="no-display-inline">The Clean Air Act is amended by inserting after section 132 of such Act, as added by section 60101 of this Act, the following:</text><quoted-block style="OLC" id="H47E5C97B06C54B4EAE597737989779BD" display-inline="no-display-inline" changed="added" reported-display-style="italic"><section id="HF8D2E9CD484E4E538863D0F3AED6113D"><enum>133.</enum><header>Grants to reduce air pollution at ports</header><subsection id="H823B613AD0F94B2E974A4F507FE4AC15"><enum>(a)</enum><header>Appropriations</header><paragraph id="H401549B7457448A3B798D20E214F7803"><enum>(1)</enum><header>General assistance</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $2,250,000,000, to remain available until September 30, 2027, to award rebates and grants to eligible recipients on a competitive basis—</text><subparagraph id="H89ABEF6DCD6148DAB90F76B0DFF966AA"><enum>(A)</enum><text>to purchase or install zero-emission port equipment or technology for use at, or to directly serve, one or more ports;</text></subparagraph><subparagraph id="H2C8CC405E86C41DE8ECCEBA62A99B438"><enum>(B)</enum><text>to conduct any relevant planning or permitting in connection with the purchase or installation of such zero-emission port equipment or technology; and</text></subparagraph><subparagraph id="H79A42A162CF544CD8F3F8DE09EC13C8E"><enum>(C)</enum><text>to develop qualified climate action plans.</text></subparagraph></paragraph><paragraph id="H6C3034F8DE6F47EAA3D26F6CC3D1A27C"><enum>(2)</enum><header>Nonattainment areas</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $750,000,000, to remain available until September 30, 2027, to award rebates and grants to eligible recipients to carry out activities described in paragraph (1) with respect to ports located in air quality areas designated pursuant to section 107 as nonattainment for an air pollutant.</text></paragraph></subsection><subsection id="HB1F16CF443284DCD9CA52D43EB882C53"><enum>(b)</enum><header>Limitation</header><text display-inline="yes-display-inline">Funds awarded under this section shall not be used by any recipient or subrecipient to purchase or install zero-emission port equipment or technology that will not be located at, or directly serve, the one or more ports involved.</text></subsection><subsection id="H2296A1F499774F4FB3226B5486F71BC0"><enum>(c)</enum><header>Administration of funds</header><text>Of the funds made available by this section, the Administrator shall reserve 2 percent for administrative costs necessary to carry out this section.</text></subsection><subsection id="H81760CE211704A49BD54AD5172A7292C"><enum>(d)</enum><header>Definitions</header><text>In this section:</text><paragraph id="H7940F91985544139B56EE7A8C257B0BD"><enum>(1)</enum><header>Eligible recipient</header><text>The term <term>eligible recipient</term> means—</text><subparagraph id="H793C739993614F5395BB0600B0C3F1F8"><enum>(A)</enum><text>a port authority;</text></subparagraph><subparagraph id="H53FADFEE2947409782520FF3545688BB"><enum>(B)</enum><text>a State, regional, local, or Tribal agency that has jurisdiction over a port authority or a port;</text></subparagraph><subparagraph id="H7AC306F4859E4CD1B596AE9D58162357"><enum>(C)</enum><text>an air pollution control agency; or</text></subparagraph><subparagraph id="H000147845C434B039138DE43F3129232"><enum>(D)</enum><text>a private entity that—</text><clause id="H34FB0EBA2D7D4D40902D77239E7E91A8"><enum>(i)</enum><text>applies for a grant under this section in partnership with an entity described in any of subparagraphs (A) through (C); and</text></clause><clause id="HE4C6CCFD08924015B8D428F1F2AA47B0"><enum>(ii)</enum><text>owns, operates, or uses the facilities, cargo-handling equipment, transportation equipment, or related technology of a port.</text></clause></subparagraph></paragraph><paragraph commented="no" id="id9541F40D285840678EEF0252406F42AD"><enum>(2)</enum><header>Greenhouse gas</header><text display-inline="yes-display-inline">The term <term>greenhouse gas</term> means the air pollutants carbon dioxide, hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur hexafluoride. </text></paragraph><paragraph id="HE56FEDAEBC6C4E16BA4DAB5661D1D193"><enum>(3)</enum><header>Qualified climate action plan</header><text>The term <term>qualified climate action plan</term> means a detailed and strategic plan that—</text><subparagraph id="H76A425964389401A9F2433C74FE34777"><enum>(A)</enum><text>establishes goals, implementation strategies, and accounting and inventory practices to reduce emissions at one or more ports of—</text><clause id="HE20274605D7D4A75AC8337313344794B"><enum>(i)</enum><text>greenhouse gases;</text></clause><clause id="HD06679FA19DC43CF854CBEE941DF508D"><enum>(ii)</enum><text>an air pollutant that is listed pursuant to section 108(a) (or any precursor to such an air pollutant); and</text></clause><clause id="HD2982C3778F14767BA14C252FFCBA1EF"><enum>(iii)</enum><text>hazardous air pollutants;</text></clause></subparagraph><subparagraph id="HCACC3278AEBD48FFBB5878A03DCBD368"><enum>(B)</enum><text>includes a strategy to collaborate with, communicate with, and address potential effects on low-income and disadvantaged near-port communities and other stakeholders that may be affected by implementation of the plan; and</text></subparagraph><subparagraph id="H63E222C23C39453C9FBD158C04DA18BC"><enum>(C)</enum><text>describes how an eligible recipient has implemented or will implement measures to increase the resilience of the one or more ports involved.</text></subparagraph></paragraph><paragraph id="H266E5D8A56204DC78AAAEE58EE3067CF"><enum>(4)</enum><header>Zero-emission port equipment or technology</header><text display-inline="yes-display-inline">The term <term>zero-emission port equipment or technology</term> means human-operated equipment or human-maintained technology that—</text><subparagraph id="H3200078BEDB947528234068F9EB0DE2D"><enum>(A)</enum><text>produces zero emissions of any air pollutant that is listed pursuant to section 108(a) (or any precursor to such an air pollutant) and any greenhouse gas other than water vapor; or</text></subparagraph><subparagraph id="H1C3BA37CF425456CAA3C2ECB9708B72C"><enum>(B)</enum><text>captures 100 percent of the emissions described in subparagraph (A) that are produced by an ocean-going vessel at berth.</text></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="H3354E5E989BE460FA17B54B73CCBAE14" commented="no"><enum>60103.</enum><header>Greenhouse gas reduction fund</header><text display-inline="no-display-inline">The Clean Air Act is amended by inserting after section 133 of such Act, as added by section 60102 of this Act, the following:</text><quoted-block style="OLC" id="H7C50F9F296194484A8C87B0602F1F5CE" display-inline="no-display-inline" changed="added" reported-display-style="italic"><section id="H90996D61EBAF4A8194093A3F7C0A3873" commented="no"><enum>134.</enum><header>Greenhouse gas reduction fund</header><subsection id="H538443BB379F4D21AD98D38464449180" commented="no"><enum>(a)</enum><header>Appropriations</header><paragraph id="H30927A222DEF4FA8B18CAA876BC04035" commented="no"><enum>(1)</enum><header>Zero-emission technologies</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $7,000,000,000, to remain available until September 30, 2024, to make grants, on a competitive basis and beginning not later than 180 calendar days after the date of enactment of this section, to States, municipalities, Tribal governments, and eligible recipients for the purposes of providing grants, loans, or other forms of financial assistance, as well as technical assistance, to enable low-income and disadvantaged communities to deploy or benefit from zero-emission technologies, including distributed technologies on residential rooftops, and to carry out other greenhouse gas emission reduction activities, as determined appropriate by the Administrator in accordance with this section.</text></paragraph><paragraph id="H604435F2ADAC4E63B323307864F5D4CD" commented="no"><enum>(2)</enum><header>General assistance</header><text>In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $11,970,000,000, to remain available until September 30, 2024, to make grants, on a competitive basis and beginning not later than 180 calendar days after the date of enactment of this section, to eligible recipients for the purposes of providing financial assistance and technical assistance in accordance with subsection (b).</text></paragraph><paragraph id="H1BB11C88A5B241E1A0A5AF2E161BEB02" commented="no"><enum>(3)</enum><header>Low-income and disadvantaged communities</header><text>In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $8,000,000,000, to remain available until September 30, 2024, to make grants, on a competitive basis and beginning not later than 180 calendar days after the date of enactment of this section, to eligible recipients for the purposes of providing financial assistance and technical assistance in low-income and disadvantaged communities in accordance with subsection (b).</text></paragraph><paragraph id="H4E9603D98F954E9F8D7F14A405159544" commented="no"><enum>(4)</enum><header>Administrative costs</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $30,000,000, to remain available until September 30, 2031, for the administrative costs necessary to carry out activities under this section.</text></paragraph></subsection><subsection id="H7F62B295B459408FB972489C0476BEE2" commented="no"><enum>(b)</enum><header>Use of funds</header><text>An eligible recipient that receives a grant pursuant to subsection (a) shall use the grant in accordance with the following:</text><paragraph id="HC2E54C41B5214204B360B57D65F0654A" commented="no"><enum>(1)</enum><header>Direct investment</header><text>The eligible recipient shall—</text><subparagraph id="HEEFE8D3A0EB44890A6E083FD67424591" commented="no"><enum>(A)</enum><text>provide financial assistance to qualified projects at the national, regional, State, and local levels;</text></subparagraph><subparagraph id="H424CCA7C61FF43A7AF4A944495A6CDA5" commented="no"><enum>(B)</enum><text>prioritize investment in qualified projects that would otherwise lack access to financing; and</text></subparagraph><subparagraph id="H0C17E241E1854694B6092F0CC31E9719" commented="no"><enum>(C)</enum><text>retain, manage, recycle, and monetize all repayments and other revenue received from fees, interest, repaid loans, and all other types of financial assistance provided using grant funds under this section to ensure continued operability.</text></subparagraph></paragraph><paragraph id="H2AC668999E324C75996084438AC51282" commented="no"><enum>(2)</enum><header>Indirect investment</header><text>The eligible recipient shall provide funding and technical assistance to establish new or support existing public, quasi-public, not-for-profit, or nonprofit entities that provide financial assistance to qualified projects at the State, local, territorial, or Tribal level or in the District of Columbia, including community- and low-income-focused lenders and capital providers.</text></paragraph></subsection><subsection id="H0DF86BE5E730495588FBD20F5BC16814" commented="no"><enum>(c)</enum><header>Definitions</header><text>In this section:</text><paragraph id="HCD8977A1053B42AEAE642FFC7C8642E5" commented="no"><enum>(1)</enum><header>Eligible recipient</header><text>The term <term>eligible recipient</term> means a nonprofit organization that—</text><subparagraph id="H75266038D6554653BE3FCB40107FFB04" commented="no"><enum>(A)</enum><text>is designed to provide capital, leverage private capital, and provide other forms of financial assistance for the rapid deployment of low- and zero-emission products, technologies, and services;</text></subparagraph><subparagraph id="H9023282E7EAC420DBAEEB56F7A4EBE27" commented="no"><enum>(B)</enum><text>does not take deposits other than deposits from repayments and other revenue received from financial assistance provided using grant funds under this section;</text></subparagraph><subparagraph id="HEB57C3F5FCAD4652A566D0C2E15394C6" commented="no"><enum>(C)</enum><text>is funded by public or charitable contributions; and</text></subparagraph><subparagraph id="HCA963AB4A99F4514B3E290358FE31247" commented="no"><enum>(D)</enum><text>invests in or finances projects alone or in conjunction with other investors.</text></subparagraph></paragraph><paragraph commented="no" id="id5D6103C71DC64A5887F07285D9CFB0B7"><enum>(2)</enum><header>Greenhouse gas</header><text display-inline="yes-display-inline">The term <term>greenhouse gas</term> means the air pollutants carbon dioxide, hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur hexafluoride. </text></paragraph><paragraph id="H9644C8ED8584405697AD762DF9E17C04" commented="no"><enum>(3)</enum><header>Qualified project</header><text>The term <term>qualified project</term> includes any project, activity, or technology that—</text><subparagraph id="HA60FD4101E4A476A83EAF1DB19E84453" commented="no"><enum>(A)</enum><text>reduces or avoids greenhouse gas emissions and other forms of air pollution in partnership with, and by leveraging investment from, the private sector; or</text></subparagraph><subparagraph id="H7959585E6354485DA3C0C7FB4C4BF5AA" commented="no"><enum>(B)</enum><text>assists communities in the efforts of those communities to reduce or avoid greenhouse gas emissions and other forms of air pollution.</text></subparagraph></paragraph><paragraph id="H4FA7EE72469F45C297349BD0C4C9FADF" commented="no"><enum>(4)</enum><header>Zero-emission technology</header><text>The term <term>zero-emission technology</term> means any technology that produces zero emissions of—</text><subparagraph id="H2845413879F44F1FA64FD942D46D63CF" commented="no"><enum>(A)</enum><text>any air pollutant that is listed pursuant to section 108(a) (or any precursor to such an air pollutant); and</text></subparagraph><subparagraph id="H5CFE5792C0734DE1B36B746908A44D29" commented="no"><enum>(B)</enum><text>any greenhouse gas.</text></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="HB5A8F612767C4CFF9C1538352861FAC8" section-type="subsequent-section" commented="no"><enum>60104.</enum><header>Diesel emissions reductions</header><subsection id="H9F4F16FA8C3B4B3C87EA36CA6217EEF0" commented="no"><enum>(a)</enum><header>Goods movement</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $60,000,000, to remain available until September 30, 2031, for grants, rebates, and loans under section 792 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16132">42 U.S.C. 16132</external-xref>) to identify and reduce diesel emissions resulting from goods movement facilities, and vehicles servicing goods movement facilities, in low-income and disadvantaged communities to address the health impacts of such emissions on such communities.</text></subsection><subsection id="H5263D6C3E3474FCFB79CC5C7B8332495" commented="no"><enum>(b)</enum><header>Administrative costs</header><text display-inline="yes-display-inline">The Administrator of the Environmental Protection Agency shall reserve 2 percent of the amounts made available under this section for the administrative costs necessary to carry out activities pursuant to this section.</text></subsection></section><section id="HB1E579DA652E42149C73BECAD96B5824"><enum>60105.</enum><header>Funding to address air pollution</header><subsection id="H04ED6CCA27564385A120AB2A51041D19"><enum>(a)</enum><header>Fenceline air monitoring and screening air monitoring</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $117,500,000, to remain available until September 30, 2031, for grants and other activities authorized under subsections (a) through (c) of section 103 and section 105 of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7403">42 U.S.C. 7403(a)</external-xref>–(c), 7405) to deploy, integrate, support, and maintain fenceline air monitoring, screening air monitoring, national air toxics trend stations, and other air toxics and community monitoring.</text></subsection><subsection id="H344E637FE77E4635B454801D0DDA03E2"><enum>(b)</enum><header>Multipollutant monitoring stations</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $50,000,000, to remain available until September 30, 2031, for grants and other activities authorized under subsections (a) through (c) of section 103 and section 105 of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7403">42 U.S.C. 7403(a)</external-xref>–(c), 7405)—</text><paragraph id="H6F8FBB4CE2344596AAC2C0DC2CB4BA33"><enum>(1)</enum><text>to expand the national ambient air quality monitoring network with new multipollutant monitoring stations; and</text></paragraph><paragraph id="H5D508F70B150456C847648F12C865064"><enum>(2)</enum><text>to replace, repair, operate, and maintain existing monitors.</text></paragraph></subsection><subsection id="H1EE068EAE7E24924A0378F3E93B10AFE"><enum>(c)</enum><header>Air quality sensors in low-income and disadvantaged communities</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $3,000,000, to remain available until September 30, 2031, for grants and other activities authorized under subsections (a) through (c) of section 103 and section 105 of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7403">42 U.S.C. 7403(a)</external-xref>–(c), 7405) to deploy, integrate, and operate air quality sensors in low-income and disadvantaged communities.</text></subsection><subsection id="HAF90120CBEF74A489DEEEF419E1466FC"><enum>(d)</enum><header>Emissions from wood heaters</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $15,000,000, to remain available until September 30, 2031, for grants and other activities authorized under subsections (a) through (c) of section 103 and section 105 of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7403">42 U.S.C. 7403(a)</external-xref>–(c), 7405) for testing and other agency activities to address emissions from wood heaters.</text></subsection><subsection id="H8E5B4890AB81441FBC6750E98F32E88C"><enum>(e)</enum><header>Methane monitoring</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $20,000,000, to remain available until September 30, 2031, for grants and other activities authorized under subsections (a) through (c) of section 103 and section 105 of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7403">42 U.S.C. 7403(a)</external-xref>–(c), 7405) for monitoring emissions of methane.</text></subsection><subsection id="H11D258290B1B46B3A303C770A036BE5F"><enum>(f)</enum><header>Clean Air Act grants</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $25,000,000, to remain available until September 30, 2031, for grants and other activities authorized under subsections (a) through (c) of section 103 and section 105 of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7403">42 U.S.C. 7403(a)</external-xref>–(c), 7405).</text></subsection><subsection id="HEB738BA7766644F99E0EF197F4542E81"><enum>(g)</enum><header>Greenhouse gas and zero-emission standards for mobile sources</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $5,000,000, to remain available until September 30, 2031, to provide grants to States to adopt and implement greenhouse gas and zero-emission standards for mobile sources pursuant to section 177 of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7507">42 U.S.C. 7507</external-xref>).</text></subsection><subsection id="id88C731632BBE493493F9DCF36EC036AE"><enum>(h)</enum><header>Definition of greenhouse gas</header><text>In this section, the term <term>greenhouse gas</term> means the air pollutants carbon dioxide, hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur hexafluoride. </text></subsection></section><section id="H081FF787E5E249ECBF41BF32ED80AA71"><enum>60106.</enum><header>Funding to address air pollution at schools</header><subsection id="HF53E6279B4A14D0CB3091423F3ED72AC"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $37,500,000, to remain available until September 30, 2031, for grants and other activities to monitor and reduce greenhouse gas emissions and other air pollutants at schools in low-income and disadvantaged communities under subsections (a) through (c) of section 103 of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7403">42 U.S.C. 7403(a)</external-xref>–(c)) and section 105 of that Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7405">42 U.S.C. 7405</external-xref>).</text></subsection><subsection id="H91505A0A5E584704B75744EC1932646F"><enum>(b)</enum><header>Technical assistance</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $12,500,000, to remain available until September 30, 2031, for providing technical assistance to schools in low-income and disadvantaged communities under subsections (a) through (c) of section 103 of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7403">42 U.S.C. 7403(a)</external-xref>–(c)) and section 105 of that Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7405">42 U.S.C. 7405</external-xref>)—</text><paragraph id="H5082A92029F74A8D8A7835FA4BDE3BA0"><enum>(1)</enum><text>to address environmental issues;</text></paragraph><paragraph id="HE1D4DFB103A74BF3A0BDD75A615DA03E"><enum>(2)</enum><text>to develop school environmental quality plans that include standards for school building, design, construction, and renovation; and</text></paragraph><paragraph id="HE02D1DF22E104867B4205A34CC5E7AE9"><enum>(3)</enum><text display-inline="yes-display-inline">to identify and mitigate ongoing air pollution hazards.</text></paragraph></subsection><subsection id="id4819E65884C04BFE842D5370A63D7E35"><enum>(c)</enum><header>Definition of greenhouse gas</header><text>In this section, the term <term>greenhouse gas</term> means the air pollutants carbon dioxide, hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur hexafluoride. </text></subsection></section><section id="HBA99D6E7C20B430384A8B952565D6851"><enum>60107.</enum><header>Low Emissions Electricity Program</header><text display-inline="no-display-inline">The Clean Air Act is amended by inserting after section 134 of such Act, as added by section 60103 of this Act, the following:</text><quoted-block id="HEAF09387296D4DEA88233904879E20DA" style="OLC" act-name="" changed="added" reported-display-style="italic"><section id="H301E036F57284202A2A6EDB572454ADF"><enum>135.</enum><header>Low Emissions Electricity Program</header><subsection id="HEB3C97ED2E6F4D8690F82D052F55C2B4"><enum>(a)</enum><header>Appropriation</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2031—</text><paragraph id="H78DE4A6F96544C5894D4D0F3FEB09FEE"><enum>(1)</enum><text>$17,000,000 for consumer-related education and partnerships with respect to reductions in greenhouse gas emissions that result from domestic electricity generation and use;</text></paragraph><paragraph id="H706DC6CFA09D4317BDF252C4A4620A7F"><enum>(2)</enum><text>$17,000,000 for education, technical assistance, and partnerships within low-income and disadvantaged communities with respect to reductions in greenhouse gas emissions that result from domestic electricity generation and use;</text></paragraph><paragraph id="H07228D5C50C94CB1992C7FE0CADE7A1F"><enum>(3)</enum><text>$17,000,000 for industry-related outreach, technical assistance, and partnerships with respect to reductions in greenhouse gas emissions that result from domestic electricity generation and use;</text></paragraph><paragraph id="H4ECB072F85464EC1B8FAB3A0833688A9"><enum>(4)</enum><text>$17,000,000 for outreach and technical assistance to, and partnerships with, State, Tribal, and local governments with respect to reductions in greenhouse gas emissions that result from domestic electricity generation and use;</text></paragraph><paragraph id="H954543F351AD4929B71CDA22C14249E8"><enum>(5)</enum><text>$1,000,000 to assess, not later than 1 year after the date of enactment of this section, the reductions in greenhouse gas emissions that result from changes in domestic electricity generation and use that are anticipated to occur on an annual basis through fiscal year 2031; and</text></paragraph><paragraph id="HFB16D38CDBC5458498F1D2A2EBEF22C1"><enum>(6)</enum><text display-inline="yes-display-inline">$18,000,000 to ensure that reductions in greenhouse gas emissions are achieved through use of the existing authorities of this Act, incorporating the assessment under paragraph (5).</text></paragraph></subsection><subsection id="HB3145EF6C18E462DBBB1D69AC89B3F57"><enum>(b)</enum><header>Administration of Funds</header><text display-inline="yes-display-inline">Of the amounts made available under subsection (a), the Administrator shall reserve 2 percent for the administrative costs necessary to carry out activities pursuant to that subsection.</text></subsection><subsection id="id061C0D5AD85C4F49B61C99F35CCE98B5"><enum>(c)</enum><header>Definition of greenhouse gas</header><text>In this section, the term <term>greenhouse gas</term> means the air pollutants carbon dioxide, hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur hexafluoride.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="H2437601970954DCC8A8FECF0D8460E3C"><enum>60108.</enum><header>Funding for section 211(o) of the Clean Air Act</header><subsection id="H747872BEA1C04E259BAD5F0DC8D9C481"><enum>(a)</enum><header>Test and protocol development</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $5,000,000, to remain available until September 30, 2031, to carry out section 211(o) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)</external-xref>) with respect to—</text><paragraph id="HC11F5583622D4E5FA7F686F8F0F6A9B6"><enum>(1)</enum><text>the development and establishment of tests and protocols regarding the environmental and public health effects of a fuel or fuel additive;</text></paragraph><paragraph id="H08C51AC32DFD4A72867B87EC42C98DDA"><enum>(2)</enum><text>internal and extramural data collection and analyses to regularly update applicable regulations, guidance, and procedures for determining lifecycle greenhouse gas emissions of a fuel; and</text></paragraph><paragraph id="idd13d1fdbff5840f1a106d5be778de8b7"><enum>(3)</enum><text>the review, analysis, and evaluation of the impacts of all transportation fuels, including fuel lifecycle implications, on the general public and on low-income and disadvantaged communities.</text></paragraph></subsection><subsection id="H7B46EECE04A24ACEBCBD2684DF6934C9"><enum>(b)</enum><header>Investments in advanced biofuels</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $10,000,000, to remain available until September 30, 2031, for new grants to industry and other related activities under section 211(o) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)</external-xref>) to support investments in advanced biofuels.</text></subsection><subsection id="id4C26BBDFFDA04660BDC9BD707E8D60AE"><enum>(c)</enum><header>Definition of greenhouse gas</header><text>In this section, the term <term>greenhouse gas</term> means the air pollutants carbon dioxide, hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur hexafluoride. </text></subsection></section><section id="H73F1B030D30144B49327B0F5905F0D7F"><enum>60109.</enum><header>Funding for implementation of the American Innovation and Manufacturing Act</header><subsection id="H1765738ABBF040658006C42B220806E4"><enum>(a)</enum><header>Appropriations</header><paragraph id="H578BE8ADCFE24E0FA14D98DBBB8300B9"><enum>(1)</enum><header>In general</header><text>In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $20,000,000, to remain available until September 30, 2026, to carry out subsections (a) through (i) and subsection (k) of section 103 of division S of <external-xref legal-doc="public-law" parsable-cite="pl/116/260">Public Law 116–260</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/42/7675">42 U.S.C. 7675</external-xref>).</text></paragraph><paragraph id="HC6EBF72658154387A3CF3AC2EBBE5342"><enum>(2)</enum><header>Implementation and compliance tools</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $3,500,000, to remain available until September 30, 2026, to deploy new implementation and compliance tools to carry out subsections (a) through (i) and subsection (k) of section 103 of division S of <external-xref legal-doc="public-law" parsable-cite="pl/116/260">Public Law 116–260</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/42/7675">42 U.S.C. 7675</external-xref>).</text></paragraph><paragraph id="HD2DCED049E9D4E2FA2405FA7A95F3978"><enum>(3)</enum><header>Competitive grants</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $15,000,000, to remain available until September 30, 2026, for competitive grants for reclaim and innovative destruction technologies under subsections (a) through (i) and subsection (k) of section 103 of division S of <external-xref legal-doc="public-law" parsable-cite="pl/116/260">Public Law 116–260</external-xref> (<external-xref legal-doc="usc" parsable-cite="usc/42/7675">42 U.S.C. 7675</external-xref>).</text></paragraph></subsection><subsection id="H5E06E21F81F94B2BB43C0E10A43B149E"><enum>(b)</enum><header>Administration of funds</header><text>Of the funds made available pursuant to subsection (a)(3), the Administrator of the Environmental Protection Agency shall reserve 5 percent for administrative costs necessary to carry out activities pursuant to such subsection.</text></subsection></section><section id="H50D05B09A06D4DCDA1331C4D5982022A"><enum>60110.</enum><header>Funding for enforcement technology and public information</header><subsection id="HCABCD5B280A34BEAA51A836616A66B20"><enum>(a)</enum><header>Compliance monitoring</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $18,000,000, to remain available until September 30, 2031, to update the Integrated Compliance Information System of the Environmental Protection Agency and any associated systems, necessary information technology infrastructure, or public access software tools to ensure access to compliance data and related information.</text></subsection><subsection id="H8553B12CFA2E4C3F90C3D4BA26149C4A"><enum>(b)</enum><header>Communications with ICIS</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $3,000,000, to remain available until September 30, 2031, for grants to States, Indian tribes, and air pollution control agencies (as such terms are defined in section 302 of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7602">42 U.S.C. 7602</external-xref>)) to update their systems to ensure communication with the Integrated Compliance Information System of the Environmental Protection Agency and any associated systems.</text></subsection><subsection id="H3EDEA056CB584811802D95B9EB9BB86E"><enum>(c)</enum><header>Inspection software</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $4,000,000, to remain available until September 30, 2031—</text><paragraph id="HC2277DA44A4D4CA4A54FB9816B8232E4"><enum>(1)</enum><text>to acquire or update inspection software for use by the Environmental Protection Agency, States, Indian tribes, and air pollution control agencies (as such terms are defined in section 302 of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7602">42 U.S.C. 7602</external-xref>)); or</text></paragraph><paragraph id="H65EE55D105AE46758EAA1F0119C49127"><enum>(2)</enum><text>to acquire necessary devices on which to run such inspection software.</text></paragraph></subsection></section><section id="H8CF7380EF7294121A9F5FE04CA4F3C01" section-type="subsequent-section" commented="no"><enum>60111.</enum><header>Greenhouse gas corporate reporting</header><subsection commented="no" id="id0F765DCA351E42DEAF799670BFD40DC5"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $5,000,000, to remain available until September 30, 2031, for the Environmental Protection Agency to support—</text><paragraph id="H51F4E149F1204E21B04BB6E72B108C07" commented="no"><enum>(1)</enum><text>enhanced standardization and transparency of corporate climate action commitments and plans to reduce greenhouse gas emissions;</text></paragraph><paragraph id="HF612690B1D1E4F07BECF05FA2C3C5C8D" commented="no"><enum>(2)</enum><text>enhanced transparency regarding progress toward meeting such commitments and implementing such plans; and</text></paragraph><paragraph id="H9F3EC71A26E94A94B413E36C3679151F" commented="no"><enum>(3)</enum><text display-inline="yes-display-inline">progress toward meeting such commitments and implementing such plans.</text></paragraph></subsection><subsection id="idE855976EE0724C7A9070F64DE2503B11"><enum>(b)</enum><header>Definition of greenhouse gas</header><text>In this section, the term <term>greenhouse gas</term> means the air pollutants carbon dioxide, hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur hexafluoride. </text></subsection></section><section id="HF7CDF1BEB4374B05BFEFD4DA1064FA20" commented="no"><enum>60112.</enum><header>Environmental product declaration assistance</header><subsection id="HB91D6B20206D4B44AB8991E177583F71" commented="no"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $250,000,000, to remain available until September 30, 2031, to develop and carry out a program to support the development, enhanced standardization and transparency, and reporting criteria for environmental product declarations that include measurements of the embodied greenhouse gas emissions of the material or product associated with all relevant stages of production, use, and disposal, and conform with international standards, for construction materials and products by—</text><paragraph id="H90A572C72997415C8D1A292F7CEA27CC" commented="no"><enum>(1)</enum><text display-inline="yes-display-inline">providing grants to businesses that manufacture construction materials and products for developing and verifying environmental product declarations, and to States, Indian Tribes, and nonprofit organizations that will support such businesses;</text></paragraph><paragraph id="H4FDEC960C19C4249ADC817975065FA25" commented="no"><enum>(2)</enum><text display-inline="yes-display-inline">providing technical assistance to businesses that manufacture construction materials and products in developing and verifying environmental product declarations, and to States, Indian Tribes, and nonprofit organizations that will support such businesses; and</text></paragraph><paragraph id="HA34AF504C0834669B1D1AACE09E630B0" commented="no"><enum>(3)</enum><text>carrying out other activities that assist in measuring, reporting, and steadily reducing the quantity of embodied carbon of construction materials and products.</text></paragraph></subsection><subsection id="H05907EA7148142C7B6D3D80136B0DBD7" commented="no"><enum>(b)</enum><header>Administrative costs</header><text display-inline="yes-display-inline">Of the amounts made available under this section, the Administrator of the Environmental Protection Agency shall reserve 5 percent for administrative costs necessary to carry out this section.</text></subsection><subsection id="HC1DA8AD426644E8EB8B38CAB34AC4745" commented="no"><enum>(c)</enum><header>Definitions</header><text>In this section:</text><paragraph id="idCAE519BFC6E44427AAAD384B7CC6F4F3"><enum>(1)</enum><header>Greenhouse gas</header><text>The term <term>greenhouse gas</term> means the air pollutants carbon dioxide, hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur hexafluoride. </text></paragraph><paragraph id="H563084FF616749108569A55FEF7F6DB8"><enum>(2)</enum><header>State</header><text>The term <term>State</term> has the meaning given to that term in section 302(d) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7602">42 U.S.C. 7602(d)</external-xref>).</text></paragraph></subsection></section><section id="H568CAB2013D64A25974055322E7CE5FC" section-type="subsequent-section"><enum>60113.</enum><header>Methane emissions reduction program</header><text display-inline="no-display-inline">The Clean Air Act is amended by inserting after section 135 of such Act, as added by section 60107 of this Act, the following:</text><quoted-block style="OLC" id="HF0E4153538624B128D70E6B702CCEC9E" display-inline="no-display-inline" changed="added" reported-display-style="italic"><section id="H9C919F54FF934D889C2BA8C32F89EE8C"><enum>136.</enum><header>Methane emissions and waste reduction incentive program for petroleum and natural gas systems</header><subsection id="HFF8C305C6FC841B7AEA8640CE1521838"><enum>(a)</enum><header>Incentives for methane mitigation and monitoring</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $850,000,000, to remain available until September 30, 2028—</text><paragraph id="HF409836F859C403883D3747F5B56A611"><enum>(1)</enum><text>for grants, rebates, contracts, loans, and other activities of the Environmental Protection Agency for the purposes of providing financial and technical assistance to owners and operators of applicable facilities to prepare and submit greenhouse gas reports under subpart W of part 98 of title 40, Code of Federal Regulations;</text></paragraph><paragraph id="H98B0E8BFCFF14C9CB600D69878D2DB93"><enum>(2)</enum><text>for grants, rebates, contracts, loans, and other activities of the Environmental Protection Agency authorized under subsections (a) through (c) of section 103 for methane emissions monitoring;</text></paragraph><paragraph id="HF66E88F0579047859DE572720FF4EE2C"><enum>(3)</enum><text>for grants, rebates, contracts, loans, and other activities of the Environmental Protection Agency for the purposes of providing financial and technical assistance to reduce methane and other greenhouse gas emissions from petroleum and natural gas systems, mitigate legacy air pollution from petroleum and natural gas systems, and provide funding for—</text><subparagraph id="H96E67A12FFAE4E829A33B43152CE9E5C"><enum>(A)</enum><text>improving climate resiliency of communities and petroleum and natural gas systems;</text></subparagraph><subparagraph id="HF729190FAC2F48C781899394167F9DDB"><enum>(B)</enum><text>improving and deploying industrial equipment and processes that reduce methane and other greenhouse gas emissions and waste;</text></subparagraph><subparagraph id="H70BC8028A9724EC09F044AD010C6B240"><enum>(C)</enum><text>supporting innovation in reducing methane and other greenhouse gas emissions and waste from petroleum and natural gas systems;</text></subparagraph><subparagraph id="id3C6B2B42C6A644808461BEFAF7F2EDAB"><enum>(D)</enum><text>permanently shutting in and plugging wells on non-Federal land;</text></subparagraph><subparagraph id="H8BE023033B544F9FA5B4F1C01BB81A74"><enum>(E)</enum><text>mitigating health effects of methane and other greenhouse gas emissions, and legacy air pollution from petroleum and natural gas systems in low-income and disadvantaged communities; and</text></subparagraph><subparagraph id="HAAAD4D22DAA64BB885C794586A4C411B"><enum>(F)</enum><text display-inline="yes-display-inline">supporting environmental restoration; and</text></subparagraph></paragraph><paragraph id="H327163FAE9414DCBBE14E90323A10CE0"><enum>(4)</enum><text>to cover all direct and indirect costs required to administer this section, prepare inventories, gather empirical data, and track emissions.</text></paragraph></subsection><subsection id="idfef35800c0744251b1c21ce3d103153e"><enum>(b)</enum><header>Incentives for Methane Mitigation from Conventional Wells</header><text>In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $700,000,000, to remain available until September 30, 2028, for activities described in paragraphs (1) through (4) of subsection (a) at marginal conventional wells.</text></subsection><subsection id="H6ADEAB21B7DC4AD1BE5F269B4B0F8EF4"><enum>(c)</enum><header>Waste emissions charge</header><text display-inline="yes-display-inline">The Administrator shall impose and collect a charge on methane emissions that exceed an applicable waste emissions threshold under subsection (f) from an owner or operator of an applicable facility that reports more than 25,000 metric tons of carbon dioxide equivalent of greenhouse gases emitted per year pursuant to subpart W of part 98 of title 40, Code of Federal Regulations, regardless of the reporting threshold under that subpart.</text></subsection><subsection id="H44FCA0B235D34B98B09C3110D568D482"><enum>(d)</enum><header>Applicable facility</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>applicable facility</term> means a facility within the following industry segments, as defined in subpart W of part 98 of title 40, Code of Federal Regulations:</text><paragraph id="HD90FEBD5107D4C2C88375875283CA552"><enum>(1)</enum><text display-inline="yes-display-inline">Offshore petroleum and natural gas production.</text></paragraph><paragraph id="H80CAF032715B47BCBA8E4FE766D06DA8"><enum>(2)</enum><text>Onshore petroleum and natural gas production.</text></paragraph><paragraph id="H633ED1416D5549CC911A0AB7986FEE5A"><enum>(3)</enum><text>Onshore natural gas processing.</text></paragraph><paragraph id="HC0307C3F481442B7A1BD07E17B643545"><enum>(4)</enum><text>Onshore natural gas transmission compression.</text></paragraph><paragraph id="H00B3930AEF3140799B711A6C3E7F89D7"><enum>(5)</enum><text>Underground natural gas storage.</text></paragraph><paragraph id="H700E0440D0844DE0BE31F12A4D8D6F29"><enum>(6)</enum><text>Liquefied natural gas storage.</text></paragraph><paragraph id="H30A509F434634F1AA907C9AE1A3027CC"><enum>(7)</enum><text>Liquefied natural gas import and export equipment.</text></paragraph><paragraph id="HD58FB402A4DA4D70B76D49F705793954"><enum>(8)</enum><text>Onshore petroleum and natural gas gathering and boosting.</text></paragraph><paragraph id="H5E6122D35DBE4ACDBC20D0036364D9B9"><enum>(9)</enum><text>Onshore natural gas transmission pipeline.</text></paragraph></subsection><subsection id="H6A4C79D78A4F4A63AA62A4B8FA9CF2DA"><enum>(e)</enum><header>Charge Amount</header><text display-inline="yes-display-inline">The amount of a charge under subsection (c) for an applicable facility shall be equal to the product obtained by multiplying—</text><paragraph id="HCB318BA1634E48FEB27E041D118E215B"><enum>(1)</enum><text display-inline="yes-display-inline">the number of metric tons of methane emissions reported pursuant to subpart W of part 98 of title 40, Code of Federal Regulations, for the applicable facility that exceed the applicable annual waste emissions threshold listed in subsection (f) during the previous reporting period; and</text></paragraph><paragraph id="H86DC0385D85C41EDA362B88CC34F5B6C"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H4B5B7B2FDDDB4611BFC3BB36CE61FFFC"><enum>(A)</enum><text display-inline="yes-display-inline">$900 for emissions reported for calendar year 2024;</text></subparagraph><subparagraph id="H13CF7778DA19406BB3D62A15F10FF416" indent="up1"><enum>(B)</enum><text>$1,200 for emissions reported for calendar year 2025; or</text></subparagraph><subparagraph id="HC2736A927B414A6CBE5450D4AB111D36" indent="up1"><enum>(C)</enum><text>$1,500 for emissions reported for calendar year 2026 and each year thereafter.</text></subparagraph></paragraph></subsection><subsection id="H77859ED817AF4777A9CA7A897C2B5550"><enum>(f)</enum><header>Waste emissions threshold</header><paragraph id="H3718814DB9B54F2EA3E188324E662448"><enum>(1)</enum><header>Petroleum and natural gas production</header><text>With respect to imposing and collecting the charge under subsection (c) for an applicable facility in an industry segment listed in paragraph (1) or (2) of subsection (d), the Administrator shall impose and collect the charge on the reported metric tons of methane emissions from such facility that exceed—</text><subparagraph id="HBABBC5640C6D4F1F93013AC56658D8BA"><enum>(A)</enum><text>0.20 percent of the natural gas sent to sale from such facility; or</text></subparagraph><subparagraph id="H7F7B28BF752C4911B718C4C2CA55975C"><enum>(B)</enum><text>10 metric tons of methane per million barrels of oil sent to sale from such facility, if such facility sent no natural gas to sale.</text></subparagraph></paragraph><paragraph id="H8083C3BCD8004DA88D8994255A8F6515"><enum>(2)</enum><header>Nonproduction petroleum and natural gas systems</header><text>With respect to imposing and collecting the charge under subsection (c) for an applicable facility in an industry segment listed in paragraph (3), (6), (7), or (8) of subsection (d), the Administrator shall impose and collect the charge on the reported metric tons of methane emissions that exceed 0.05 percent of the natural gas sent to sale from or through such facility.</text></paragraph><paragraph id="H52E88D7956694CB5A5C01263FBF5588F"><enum>(3)</enum><header>Natural gas transmission</header><text>With respect to imposing and collecting the charge under subsection (c) for an applicable facility in an industry segment listed in paragraph (4), (5), or (9) of subsection (d), the Administrator shall impose and collect the charge on the reported metric tons of methane emissions that exceed 0.11 percent of the natural gas sent to sale from or through such facility.</text></paragraph><paragraph id="id2526554673854469bcf4262c6c892e0e"><enum>(4)</enum><header>Common Ownership or Control</header><text>In calculating the total emissions charge obligation for facilities under common ownership or control, the Administrator shall allow for the netting of emissions by reducing the total obligation to account for facility emissions levels that are below the applicable thresholds within and across all applicable segments identified in subsection (d). </text></paragraph><paragraph id="H5C37256A4A694997B02346800B278ACF"><enum>(5)</enum><header>Exemption</header><text display-inline="yes-display-inline">Charges shall not be imposed pursuant to paragraph (1) on emissions that exceed the waste emissions threshold specified in such paragraph if such emissions are caused by unreasonable delay, as determined by the Administrator, in environmental permitting of gathering or transmission infrastructure necessary for offtake of increased volume as a result of methane emissions mitigation implementation.</text></paragraph><paragraph id="id4e5e2216834c452d810d2a0123b172b0"><enum>(6)</enum><header>Exemption for regulatory compliance</header><subparagraph id="id5F2E24CECB9440159D4952F67E919A62"><enum>(A)</enum><header>In general</header><text>Charges shall not be imposed pursuant to subsection (c) on an applicable facility that is subject to and in compliance with methane emissions requirements pursuant to subsections (b) and (d) of section 111 upon a determination by the Administrator that—</text><clause id="id681a3f3bcdaa4a9685abd6f32022f926"><enum>(i)</enum><text>methane emissions standards and plans pursuant to subsections (b) and (d) of section 111 have been approved and are in effect in all States with respect to the applicable facilities; and</text></clause><clause id="id84273ae6dfaf4f178b5cd48e2da732b7"><enum>(ii)</enum><text>compliance with the requirements described in clause (i) will result in equivalent or greater emissions reductions as would be achieved by the proposed rule of the Administrator entitled <quote>Standards of Performance for New, Reconstructed, and Modified Sources and Emissions Guidelines for Existing Sources: Oil and Natural Gas Sector Climate Review</quote> (86 Fed. Reg. 63110 (November 15, 2021)), if such rule had been finalized and implemented.</text></clause></subparagraph><subparagraph id="idE0BADC90CC944232B50CC7D95DFFAAAD"><enum>(B)</enum><header>Resumption of charge</header><text>If the conditions in clause (i) or (ii) of subparagraph (A) cease to apply after the Administrator has made the determination in that subparagraph, the applicable facility will again be subject to the charge under subsection (c) beginning in the first calendar year in which the conditions in either clause (i) or (ii) of that subparagraph are no longer met.</text></subparagraph></paragraph><paragraph id="id06d3f71351b94f5f81bac9d186bb72f3"><enum>(7)</enum><header>Plugged wells</header><text>Charges shall not be imposed with respect to the emissions rate from any well that has been permanently shut-in and plugged in the previous year in accordance with all applicable closure requirements, as determined by the Administrator. </text></paragraph></subsection><subsection id="H9911672C507047D5962E7D932721D1F0"><enum>(g)</enum><header>Period</header><text>The charge under subsection (c) shall be imposed and collected beginning with respect to emissions reported for calendar year 2024 and for each year thereafter.</text></subsection><subsection id="H5533AF679FB14B1A9354D59D65ED2C0D"><enum>(h)</enum><header>Reporting</header><text>Not later than 2 years after the date of enactment of this section, the Administrator shall revise the requirements of subpart W of part 98 of title 40, Code of Federal Regulations, to ensure the reporting under such subpart, and calculation of charges under subsections (e) and (f) of this section, are based on empirical data, including data collected pursuant to subsection (a)(4), accurately reflect the total methane emissions and waste emissions from the applicable facilities, and allow owners and operators of applicable facilities to submit empirical emissions data, in a manner to be prescribed by the Administrator, to demonstrate the extent to which a charge under subsection (c) is owed.</text></subsection><subsection id="idC6E8D4BC74DB4002B75D4F28CE90ED0A"><enum>(i)</enum><header>Definition of greenhouse gas</header><text>In this section, the term <term>greenhouse gas</term> means the air pollutants carbon dioxide, hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur hexafluoride.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="H583C8F2BB10C4E258A2926561A4FB1FB" section-type="subsequent-section"><enum>60114.</enum><header>Climate Pollution Reduction Grants</header><text display-inline="no-display-inline">The Clean Air Act is amended by inserting after section 136 of such Act, as added by section 60113 of this Act, the following:</text><quoted-block style="OLC" id="HB86A5083BD874EAA90E7DBC16A609F21" display-inline="no-display-inline" changed="added" reported-display-style="italic"><section id="H24D0013D56844D71B6FAA1B2062E7704"><enum>137.</enum><header>Greenhouse Gas Air Pollution Plans and Implementation Grants</header><subsection id="H044D1CA3E07D470F869DACC99093AA7E"><enum>(a)</enum><header>Appropriations</header><paragraph id="H595B4131BBC545848B4EA8B740D95287"><enum>(1)</enum><header>Greenhouse gas air pollution planning grants</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any amounts in the Treasury not otherwise appropriated, $250,000,000, to remain available until September 30, 2031, to carry out subsection (b).</text></paragraph><paragraph id="HACC91A21457A4223A79635065672C026"><enum>(2)</enum><header>Greenhouse gas air pollution implementation grants</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any amounts in the Treasury not otherwise appropriated, $4,750,000,000, to remain available until September 30, 2026, to carry out subsection (c).</text></paragraph><paragraph id="HF1365DCA717E4A76BF46E6727CBEC942"><enum>(3)</enum><header>Administrative costs</header><text display-inline="yes-display-inline">Of the funds made available under paragraph (2), the Administrator shall reserve 3 percent for administrative costs necessary to carry out this section, to provide technical assistance to eligible entities, to develop a plan that could be used as a model by grantees in developing a plan under subsection (b), and to model the effects of plans described in this section.</text></paragraph></subsection><subsection id="H34BF6A6333704C0F9DEB2F625D3BF371"><enum>(b)</enum><header>Greenhouse gas air pollution planning grants</header><text display-inline="yes-display-inline">The Administrator shall make a grant to at least one eligible entity in each State for the costs of developing a plan for the reduction of greenhouse gas air pollution to be submitted with an application for a grant under subsection (c). Each such plan shall include programs, policies, measures, and projects that will achieve or facilitate the reduction of greenhouse gas air pollution. Not later than 270 days after the date of enactment of this section, the Administrator shall publish a funding opportunity announcement for grants under this subsection. </text></subsection><subsection id="HD946C7A8AD154D7F8033D123F9894BA9"><enum>(c)</enum><header>Greenhouse gas air pollution reduction implementation grants</header><paragraph id="HA70F2573CF52417E95512022D863B842"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Administrator shall competitively award grants to eligible entities to implement plans developed under subsection (b).</text></paragraph><paragraph id="HFBA234E939C64F8B9E551303DC5DD4A4"><enum>(2)</enum><header>Application</header><text display-inline="yes-display-inline">To apply for a grant under this subsection, an eligible entity shall submit to the Administrator an application at such time, in such manner, and containing such information as the Administrator shall require, which such application shall include information regarding the degree to which greenhouse gas air pollution is projected to be reduced in total and with respect to low-income and disadvantaged communities.</text></paragraph><paragraph id="HF816B95D401944D08B7CC94FF4ECBB1C" commented="no"><enum>(3)</enum><header>Terms and conditions</header><text display-inline="yes-display-inline">The Administrator shall make funds available to a grantee under this subsection in such amounts, upon such a schedule, and subject to such conditions based on its performance in implementing its plan submitted under this section and in achieving projected greenhouse gas air pollution reduction, as determined by the Administrator. </text></paragraph></subsection><subsection id="H9AA0940C7ED9414EBEC05977AE88B2C7"><enum>(d)</enum><header>Definitions</header><text>In this section:</text><paragraph id="idBB8FBB20781F48E88EC9194A86A1B409"><enum>(1)</enum><header>Eligible entity</header><text>The ter<editorial></editorial>m <term>eligible entity</term> means—</text><subparagraph id="H593D0BCFEB4A4533A6464C59C1DB17EB"><enum>(A)</enum><text>a State;</text></subparagraph><subparagraph id="HBC16CE10AFBF4FAFA0B79C062DE4BB7B"><enum>(B)</enum><text display-inline="yes-display-inline">an air pollution control agency;</text></subparagraph><subparagraph id="HC1906106913D4675986D650A9A5351D9"><enum>(C)</enum><text>a municipality;</text></subparagraph><subparagraph id="HE2DC057C315D49BBB186C3C4B8FB738C"><enum>(D)</enum><text>an Indian tribe; and</text></subparagraph><subparagraph id="HC905FF8DEEA24A8AAA876192F1A5426B"><enum>(E)</enum><text>a group of one or more entities listed in subparagraphs (A) through (D).</text></subparagraph></paragraph><paragraph id="idF68B0E79B467481BB000F07467BBC9D4"><enum>(2)</enum><header>Greenhouse gas</header><text>The term <term>greenhouse gas</term> means the air pollutants carbon dioxide, hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur hexafluoride.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section><section id="HEE7F1AC0E9EF4A6B8A2A2A4B1D7AA4F0"><enum>60115.</enum><header>Environmental Protection Agency efficient, accurate, and timely reviews</header><text display-inline="no-display-inline"> In addition to amounts otherwise available, there is appropriated to the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $40,000,000, to remain available until September 30, 2026, to provide for the development of efficient, accurate, and timely reviews for permitting and approval processes through the hiring and training of personnel, the development of programmatic documents, the procurement of technical or scientific services for reviews, the development of environmental data or information systems, stakeholder and community engagement, the purchase of new equipment for environmental analysis, and the development of geographic information systems and other analysis tools, techniques, and guidance to improve agency transparency, accountability, and public engagement.</text></section><section id="HCF746C9605DF4F40830E5C0906C415CF"><enum>60116.</enum><header>Low-embodied carbon labeling for construction materials</header><subsection id="H54A3DCCA2250459FB2E36D68E9504F7A"><enum>(a)</enum><header>In general</header><text>In addition to amounts otherwise available, there is appropriated to the Administrator of the Environmental Protection Agency for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available until September 30, 2026, for necessary administrative costs of the Administrator of the Environmental Protection Agency to carry out this section and to develop and carry out a program, in consultation with the Administrator of the Federal Highway Administration for construction materials used in transportation projects and the Administrator of General Services for construction materials used for Federal buildings, to identify and label construction materials and products that have substantially lower levels of embodied greenhouse gas emissions associated with all relevant stages of production, use, and disposal, as compared to estimated industry averages of similar materials or products, as determined by the Administrator of the Environmental Protection Agency, based on— </text><paragraph id="id14F81DB9321F4D71806E21E1C09573E4"><enum>(1)</enum><text display-inline="yes-display-inline">environmental product declarations; or</text></paragraph><paragraph id="idCA58CC5C48BF48EC94751FC91A64AC80"><enum>(2)</enum><text>determinations by State agencies, as verified by the Administrator of the Environmental Protection Agency.</text></paragraph></subsection><subsection id="id21E7905994F140FAB3E7F8FE68E691E3"><enum>(b)</enum><header>Definition of greenhouse gas</header><text>In this section, the term <term>greenhouse gas</term> means the air pollutants carbon dioxide, hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur hexafluoride. </text></subsection></section></subtitle><subtitle id="H2F1A6EDAC78B485C9151BA967F0AC94E"><enum>B</enum><header>Hazardous Materials</header><section id="H4B1D74D8DE6C4748A71872EA5C85ED9D"><enum>60201.</enum><header>Environmental and climate justice block grants</header><text display-inline="no-display-inline">The Clean Air Act is amended by inserting after section 137, as added by subtitle A of this title, the following:</text><quoted-block style="OLC" id="H9C98AB50A89348CA9D97F1E097BAEC6D" display-inline="no-display-inline" changed="added" reported-display-style="italic"><section id="HA94CF28AE1B149E0BE3658B3868D4C76"><enum>138.</enum><header>Environmental and climate justice block grants</header><subsection id="H438BCCBDEC3A4E7397EF5EB177503621"><enum>(a)</enum><header>Appropriation</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the Administrator for fiscal year 2022, out of any money in the Treasury not otherwise appropriated—</text><paragraph id="H8F272C8DA6C94DD7A5BA85D2A3B83F69"><enum>(1)</enum><text>$2,800,000,000 to remain available until September 30, 2026, to award grants for the activities described in subsection (b); and</text></paragraph><paragraph id="HC4DA547032A64810BF26ED90CB051FEB"><enum>(2)</enum><text display-inline="yes-display-inline">$200,000,000 to remain available until September 30, 2026, to provide technical assistance to eligible entities related to grants awarded under this section.</text></paragraph></subsection><subsection id="H6822FACC617541169DA818CBD99DE54A"><enum>(b)</enum><header>Grants</header><paragraph id="HE35EED1D434F4BB597BE2F6FE50C8DB9"><enum>(1)</enum><header>In general</header><text>The Administrator shall use amounts made available under subsection (a)(1) to award grants for periods of up to 3 years to eligible entities to carry out activities described in paragraph (2) that benefit disadvantaged communities, as defined by the Administrator. </text></paragraph><paragraph id="HFD13977AD2CF433984154A44F124C7D3"><enum>(2)</enum><header>Eligible activities</header><text>An eligible entity may use a grant awarded under this subsection for—</text><subparagraph id="HDE893BBC1F774B1EB23DD474A8062595"><enum>(A)</enum><text>community-led air and other pollution monitoring, prevention<italic>,</italic> and remediation, and investments in low- and zero-emission and resilient technologies and related infrastructure and workforce development that help reduce greenhouse gas emissions and other air pollutants;</text></subparagraph><subparagraph id="H4B0C5994A28547E5A0C904ED2A09BDCD"><enum>(B)</enum><text>mitigating climate and health risks from urban heat islands, extreme heat, wood heater emissions, and wildfire events;</text></subparagraph><subparagraph id="H241EE8A65AE44B3CAB42EAA869C747F1"><enum>(C)</enum><text display-inline="yes-display-inline">climate resiliency and adaptation;</text></subparagraph><subparagraph id="H1DEC9AD7343F42E7A142617E289892FE"><enum>(D)</enum><text>reducing indoor toxics and indoor air pollution; or</text></subparagraph><subparagraph id="H7266416831AB422683FCCFF3A23B50F6"><enum>(E)</enum><text>facilitating engagement of disadvantaged communities in State and Federal advisory groups, workshops, rulemakings, and other public processes.</text></subparagraph></paragraph><paragraph id="HE0BC88E2B33247C284E4CA2793DB3805"><enum>(3)</enum><header>Eligible entities</header><text>In this subsection, the term <term>eligible entity</term> means—</text><subparagraph id="H3613A39BCD08449CA73688E9B99E03E5"><enum>(A)</enum><text>a partnership between—</text><clause id="H654AF48CFE0E45C29752FF88ADCD040B"><enum>(i)</enum><text>an Indian tribe, a local government, or an institution of higher education; and</text></clause><clause id="H1DB869E2AC97406B8D941DD903D0F675"><enum>(ii)</enum><text>a community-based nonprofit organization;</text></clause></subparagraph><subparagraph id="HD079CE1D7B184FB9B81A6087CF7F3442"><enum>(B)</enum><text>a community-based nonprofit organization; or</text></subparagraph><subparagraph id="H013F07E110BD4EED86C597977ACA2D54"><enum>(C)</enum><text>a partnership of community-based nonprofit organizations.</text></subparagraph></paragraph></subsection><subsection id="H3E4BAD6BB32B4987B626BA6C2ABA74E5"><enum>(c)</enum><header>Administrative costs</header><text>The Administrator shall reserve 7 percent of the amounts made available under subsection (a) for administrative costs to carry out this section.</text></subsection><subsection id="idBE423ADC273F487C8A97EC22F30D3F7B"><enum>(d)</enum><header>Definition of greenhouse gas</header><text>In this section, the term <term>greenhouse gas</term> means the air pollutants carbon dioxide, hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur hexafluoride.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></section></subtitle><subtitle id="HE8840B11FD18446FB1052A30462DFB17"><enum>C</enum><header>United States Fish and Wildlife Service</header><section id="HFD72A60DFF9C49B2AC788B7B094183D7"><enum>60301.</enum><header>Endangered Species Act recovery plans</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated to the United States Fish and Wildlife Service for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $125,000,000, to remain available until expended, for the purposes of developing and implementing recovery plans under paragraphs (1), (3), and (4) of subsection (f) of section 4 of the Endangered Species Act of 1973 (<external-xref legal-doc="usc" parsable-cite="usc/16/1533">16 U.S.C. 1533(f)</external-xref>).</text></section><section id="HBC65D920391E40FCBB236FBC78A490E9"><enum>60302.</enum><header>Funding for the United States Fish and Wildlife Service to address weather events</header><subsection id="H4F08965462014115AAD3CD60546C50D3"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the United States Fish and Wildlife Service for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $121,250,000, to remain available until September 30, 2026, to make direct expenditures, award grants, and enter into contracts and cooperative agreements for the purposes of rebuilding and restoring units of the National Wildlife Refuge System and State wildlife management areas by—</text><paragraph id="H8BBCB109A21C4C9280CDA19AB915C79A"><enum>(1)</enum><text>addressing the threat of invasive species;</text></paragraph><paragraph id="HA22AD0EBDC4E4A969C40433C410F6C50"><enum>(2)</enum><text>increasing the resiliency and capacity of habitats and infrastructure to withstand weather events; and</text></paragraph><paragraph id="H3F99185BC3F64394B558F78BA258F9B1"><enum>(3)</enum><text>reducing the amount of damage caused by weather events.</text></paragraph></subsection><subsection id="HCAF5FA0F87374913A6427F3697CBE39C"><enum>(b)</enum><header>Administrative costs</header><text display-inline="yes-display-inline">In addition to amounts otherwise available, there is appropriated to the United States Fish and Wildlife Service for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $3,750,000, to remain available until September 30, 2026, for necessary administrative expenses associated with carrying out this section.</text></subsection></section></subtitle><subtitle id="H43969C99BFFA4194A31C31A76862305E"><enum>D</enum><header>Council on Environmental Quality</header><section id="H93E0CB5C521048E380EF0B08FCB39AF3"><enum>60401.</enum><header>Environmental and climate data collection</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated to the Chair of the Council on Environmental Quality for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $32,500,000, to remain available until September 30, 2026—</text><paragraph id="HA282AA011343490483D513419D7734F3"><enum>(1)</enum><text>to support data collection efforts relating to—</text><subparagraph id="HF00122FE84164C3BAA8D87C2F8BD9994"><enum>(A)</enum><text>disproportionate negative environmental harms and climate impacts; and</text></subparagraph><subparagraph id="H8911CAD537144DFDA4846CC680AAA940"><enum>(B)</enum><text>cumulative impacts of pollution and temperature rise;</text></subparagraph></paragraph><paragraph id="HF10F60ABA06F444796B42602A73EF4C9"><enum>(2)</enum><text>to establish, expand, and maintain efforts to track disproportionate burdens and cumulative impacts and provide academic and workforce support for analytics and informatics infrastructure and data collection systems; and</text></paragraph><paragraph id="H98162F2F9A484651ADA1F225F84649E2"><enum>(3)</enum><text>to support efforts to ensure that any mapping or screening tool is accessible to community-based organizations and community members.</text></paragraph></section><section id="H3398E80FB69B483F8A4D67DE08644525"><enum>60402.</enum><header>Council on environmental quality efficient and effective environmental reviews</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated to the Chair of the Council on Environmental Quality for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $30,000,000, to remain available until September 30, 2026, to carry out the Council on Environmental Quality’s functions and for the purposes of training personnel, developing programmatic environmental documents, and developing tools, guidance, and techniques to improve stakeholder and community engagement. </text></section></subtitle><subtitle id="id26A05293FDFE4240AA3567C524AE60DC" style="OLC"><enum>E</enum><header>Transportation and Infrastructure</header><section id="HD4046085066C4D8F9CC2B01D308B4CA4"><enum>60501.</enum><header>Neighborhood access and equity grant program</header><subsection id="HDCEF33C6CFE74FBE9CDA838B480B69ED"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/23/1">Chapter 1</external-xref> of title 23, United States Code, is amended by adding at the end the following:</text><quoted-block style="USC" id="H947D998CEF7141BC826EB4DDC1D3C833" display-inline="no-display-inline" changed="added" reported-display-style="italic"><section id="H4466E69192C047B18EFB53FE61F5BAF9"><enum>177.</enum><header>Neighborhood access and equity grant program</header><subsection id="HCEEEE6997E9F400DB4413C42602BABA6"><enum>(a)</enum><header>In General</header><text>In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $1,893,000,000, to remain available until September 30, 2026, to the Administrator of the Federal Highway Administration for competitive grants to eligible entities described in subsection (b)—</text><paragraph id="HA87B818B4298455F94B33837F2EFC3DA"><enum>(1)</enum><text>to improve walkability, safety, and affordable transportation access through projects that are context-sensitive—</text><subparagraph id="H2DF3562643654ED79810C4A17244B6F1"><enum>(A)</enum><text>to remove, remediate, or reuse a facility described in subsection (c)(1);</text></subparagraph><subparagraph id="HE7B192746A7C4E8DA8EB3A679F541D9A"><enum>(B)</enum><text>to replace a facility described in subsection (c)(1) with a facility that is at-grade or lower speed;</text></subparagraph><subparagraph id="HB01D7B697B72454AB1CC9D4745FAF8C9"><enum>(C)</enum><text>to retrofit or cap a facility described in subsection (c)(1);</text></subparagraph><subparagraph id="H31AA997CAAB8409A84834664D311145F"><enum>(D)</enum><text>to build or improve complete streets, multiuse trails, regional greenways, or active transportation networks and spines; or</text></subparagraph><subparagraph id="H823EE35386D04F508BCA183AAFA40FB9"><enum>(E)</enum><text>to provide affordable access to essential destinations, public spaces, or transportation links and hubs;</text></subparagraph></paragraph><paragraph id="H582BE3C51079419A9B21BBC8DBB4D32A"><enum>(2)</enum><text>to mitigate or remediate negative impacts on the human or natural environment resulting from a facility described in subsection (c)(2) in a disadvantaged or underserved community through—</text><subparagraph id="H8BF1CDB1305A45BA9D2DDBC85D662B93"><enum>(A)</enum><text>noise barriers to reduce impacts resulting from a facility described in subsection (c)(2);</text></subparagraph><subparagraph id="H3A2ABBF20732473090EBB29A9EFC28E4"><enum>(B)</enum><text>technologies, infrastructure, and activities to reduce surface transportation-related greenhouse gas emissions and other air pollution;</text></subparagraph><subparagraph id="H369628AFAD474A4CB7AE1DB27228AA55"><enum>(C)</enum><text>natural infrastructure, pervious, permeable, or porous pavement, or protective features to reduce or manage stormwater run-off resulting from a facility described in subsection (c)(2);</text></subparagraph><subparagraph id="H6F949A66ACC347A69A5F171856F153A7"><enum>(D)</enum><text>infrastructure and natural features to reduce or mitigate urban heat island hot spots in the transportation right-of-way or on surface transportation facilities; or</text></subparagraph><subparagraph id="H1FEA35DB69D84CCE96230F952FA89E9F"><enum>(E)</enum><text>safety improvements for vulnerable road users; and</text></subparagraph></paragraph><paragraph id="H9E262C563B8045A9B44F379F91856BED"><enum>(3)</enum><text>for planning and capacity building activities in disadvantaged or underserved communities to—</text><subparagraph id="HA136EBCE0638449DA76B8704EA72FF78"><enum>(A)</enum><text>identify, monitor, or assess local and ambient air quality, emissions of transportation greenhouse gases, hot spot areas of extreme heat or elevated air pollution, gaps in tree canopy coverage, or flood prone transportation infrastructure;</text></subparagraph><subparagraph id="H833B0F005ED243B6AB76F89CF5FD41EE"><enum>(B)</enum><text>assess transportation equity or pollution impacts and develop local anti-displacement policies and community benefit agreements;</text></subparagraph><subparagraph id="H21E9B8E839DD4FAAB31B1C3DE64EAD52"><enum>(C)</enum><text>conduct predevelopment activities for projects eligible under this subsection;</text></subparagraph><subparagraph id="H00F62FC242DB42B89E34A650D08DD9CB"><enum>(D)</enum><text>expand public participation in transportation planning by individuals and organizations in disadvantaged or underserved communities; or</text></subparagraph><subparagraph id="H660AD9FB1CA74529A23B085DEDCF4517"><enum>(E)</enum><text>administer or obtain technical assistance related to activities described in this subsection.</text></subparagraph></paragraph></subsection><subsection id="HDA131EDC2A8047D9804A9AA82B7493A0"><enum>(b)</enum><header>Eligible entities described</header><text>An eligible entity referred to in subsection (a) is—</text><paragraph id="H6C9E2D5452064040831179F53EF5E3C0"><enum>(1)</enum><text>a State;</text></paragraph><paragraph id="H29645B5805B441798155C2EE573A7060"><enum>(2)</enum><text>a unit of local government;</text></paragraph><paragraph id="H24ED467750864CAAA695DC46911C49E2"><enum>(3)</enum><text>a political subdivision of a State;</text></paragraph><paragraph id="HEDB6AE0EA73A46A7BB3AB2ACE5C4615E"><enum>(4)</enum><text display-inline="yes-display-inline">an entity described in section 207(m)(1)(E);</text></paragraph><paragraph id="H85BDB1BF18F2434DBC66651749DFAA1A"><enum>(5)</enum><text>a territory of the United States;</text></paragraph><paragraph id="HE200308A63C54AE99D936DAE4629642A"><enum>(6)</enum><text display-inline="yes-display-inline">a special purpose district or public authority with a transportation function;</text></paragraph><paragraph id="H60E6420C0DF24475A8975BB21D4C843C"><enum>(7)</enum><text>a metropolitan planning organization (as defined in section 134(b)(2)); or</text></paragraph><paragraph id="H8B20BA763E7644FE9CBED4137A8C5CF2"><enum>(8)</enum><text>with respect to a grant described in subsection (a)(3), in addition to an eligible entity described in paragraphs (1) through (7), a nonprofit organization or institution of higher education that has entered into a partnership with an eligible entity described in paragraphs (1) through (7).</text></paragraph></subsection><subsection id="H76CA1D05D8B542DD932A23A9C6DF46EF"><enum>(c)</enum><header>Facility described</header><text>A facility referred to in subsection (a) is—</text><paragraph id="H4CC7054CF4EA48CAB1E3FA3F03545610"><enum>(1)</enum><text>a surface transportation facility for which high speeds, grade separation, or other design factors create an obstacle to connectivity within a community; or</text></paragraph><paragraph id="H7DE07FB617BE4B8BA3DF575A577A43F6"><enum>(2)</enum><text>a surface transportation facility which is a source of air pollution, noise, stormwater, or other burden to a disadvantaged or underserved community.</text></paragraph></subsection><subsection id="HFD63192197E34A0083DC78B2C8D9A951"><enum>(d)</enum><header>Investment in economically disadvantaged communities</header><paragraph id="HE6BD89F8132345CA81D5CF3939D848DA"><enum>(1)</enum><header>In general</header><text>In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $1,262,000,000, to remain available until September 30, 2026, to the Administrator of the Federal Highway Administration to provide grants for projects in communities described in paragraph (2) for the same purposes and administered in the same manner as described in subsection (a).</text></paragraph><paragraph id="HA253C177D8AA4BE19B9A54A00CBA1D05"><enum>(2)</enum><header>Communities described</header><text>A community referred to in paragraph (1) is a community that—</text><subparagraph id="HB9D9E06BCA164AA8AD4B854816D7751C"><enum>(A)</enum><text>is economically disadvantaged, underserved, or located in an area of persistent poverty;</text></subparagraph><subparagraph id="HF55A93BEEFFA42FCAFE3E5641A5C8739"><enum>(B)</enum><text>has entered or will enter into a community benefits agreement with representatives of the community;</text></subparagraph><subparagraph id="H1A60F1F49FC747B38AD9763AF4699BB5"><enum>(C)</enum><text>has an anti-displacement policy, a community land trust, or a community advisory board in effect; or</text></subparagraph><subparagraph id="HEAA1148365F842449283BFC1F60593F9" commented="no"><enum>(D)</enum><text display-inline="yes-display-inline">has demonstrated a plan for employing local residents in the area impacted by the activity or project proposed under this section.</text></subparagraph></paragraph></subsection><subsection id="HA8D3EE0135494A34B8786D39EFD4038F"><enum>(e)</enum><header>Administration</header><paragraph id="H2B08BCD0AC744E87944F2545059437D5"><enum>(1)</enum><header>In general</header><text>A project carried out under subsection (a) or (d) shall be treated as a project on a Federal-aid highway.</text></paragraph><paragraph id="HE86AA745FAE947C19240B74201809896"><enum>(2)</enum><header>Compliance with existing requirements</header><text display-inline="yes-display-inline">Funds made available for a grant under this section and administered by or through a State department of transportation shall be expended in compliance with the U.S. Department of Transportation’s Disadvantaged Business Enterprise Program.</text></paragraph></subsection><subsection id="HE6AD2A682E0645A4960C327869F59ADA"><enum>(f)</enum><header>Cost share</header><text>The Federal share of the cost of an activity carried out using a grant awarded under this section shall be not more than 80 percent, except that the Federal share of the cost of a project in a disadvantaged or underserved community may be up to 100 percent.</text></subsection><subsection id="H560FF0E5AA5749528800E1E0865E152B"><enum>(g)</enum><header>Technical assistance</header><text>In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $50,000,000, to remain available until September 30, 2026, to the Administrator of the Federal Highway Administration for—</text><paragraph id="HA701573DB7314211A25C014B61CAF563"><enum>(1)</enum><text>guidance, technical assistance, templates, training, or tools to facilitate efficient and effective contracting, design, and project delivery by units of local government;</text></paragraph><paragraph id="H7175676614624192A6B40823AFFC3CF8"><enum>(2)</enum><text>subgrants to units of local government to build capacity of such units of local government to assume responsibilities to deliver surface transportation projects; and</text></paragraph><paragraph id="H192AEAF36A5C47C7B707A0210F2E39BF"><enum>(3)</enum><text>operations and administration of the Federal Highway Administration.</text></paragraph></subsection><subsection id="HAA138F8045E5436E8B3C66D138869D72"><enum>(h)</enum><header>Limitations</header><text>Amounts made available under this section shall not—</text><paragraph id="H9440233459A04A12893AF21BB9DE2316"><enum>(1)</enum><text>be subject to any restriction or limitation on the total amount of funds available for implementation or execution of programs authorized for Federal-aid highways; and</text></paragraph><paragraph id="H0CE7FA90567940FC92CB7B1B32DE5868"><enum>(2)</enum><text>be used for a project for additional through travel lanes for single-occupant passenger vehicles.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HDF87665C65994207973AC37A4DEE098C"><enum>(b)</enum><header>Clerical amendment</header><text>The analysis for <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/23/1">chapter 1</external-xref> of title 23, United States Code, is amended by adding at the end the following:</text><quoted-block id="HABA6ED8F5C664964AA2031066B021740" style="USC" changed="added" reported-display-style="italic"><toc regeneration="no-regeneration" changed="added" reported-display-style="italic"><toc-entry level="section">177. Neighborhood access and equity grant program.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section><section id="H0282EAB8F62D4C01BCF081D8C86F7279" section-type="subsequent-section"><enum>60502.</enum><header>Assistance for Federal buildings</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $250,000,000, to remain available until September 30, 2031, to be deposited in the Federal Buildings Fund established under section 592 of title 40, United States Code, for measures necessary to convert facilities of the Administrator of General Services to high-performance green buildings (as defined in section 401 of the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17061">42 U.S.C. 17061</external-xref>)). </text></section><section id="id8f9fe83f2c704d98ac392f3213913060"><enum>60503.</enum><header>Use of low-carbon materials</header><subsection id="idba323937684f44f48dc6add71af9e4db"><enum>(a)</enum><header>Appropriation</header><text>In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $2,150,000,000, to remain available until September 30, 2026, to be deposited in the Federal Buildings Fund established under section 592 of title 40, United States Code, to acquire and install materials and products for use in the construction or alteration of buildings under the jurisdiction, custody, and control of the General Services Administration that have substantially lower levels of embodied greenhouse gas emissions associated with all relevant stages of production, use, and disposal as compared to estimated industry averages of similar materials or products, as determined by the Administrator of the Environmental Protection Agency.</text></subsection><subsection id="idCECC0B6C95D24EF7919D27178CF946D3"><enum>(b)</enum><header>Definition of greenhouse gas</header><text>In this section, the term <term>greenhouse gas</term> means the air pollutants carbon dioxide, hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur hexafluoride. </text></subsection></section><section id="idcd3763feb3654de4bb02ca11165a54fc"><enum>60504.</enum><header>General Services Administration emerging technologies</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated to the Administrator of General Services for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $975,000,000, to remain available until September 30, 2026, to be deposited in the Federal Buildings Fund established under section 592 of title 40, United States Code, for emerging and sustainable technologies, and related sustainability and environmental programs. </text></section><section id="HD919EA15258045F79591A325A2C0A08C" display-inline="no-display-inline"><enum>60505.</enum><header>Environmental review implementation funds</header><subsection id="H21E32A6A7ECE44D5A8D52A56878DD49C"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/23/1">Chapter 1</external-xref> of title 23, United States Code, is further amended by adding at the end the following:</text><quoted-block style="USC" id="HCC6B2DE408C3460A9990DE169DBC1085" display-inline="no-display-inline" changed="added" reported-display-style="italic"><section id="HF70CCAF9132342EFB6E80051699EE0FE"><enum>178.</enum><header>Environmental review implementation funds</header><subsection id="H53451CBE80B04E4B9EF217C633253FDC"><enum>(a)</enum><header>Establishment</header><text>In addition to amounts otherwise available, for fiscal year 2022, there is appropriated to the Administrator, out of any money in the Treasury not otherwise appropriated, $100,000,000, to remain available until September 30, 2026, for the purpose of facilitating the development and review of documents for the environmental review process for proposed projects through—</text><paragraph id="H59B5E7DDE2E6417498F51B171D5F3825"><enum>(1)</enum><text>the provision of guidance, technical assistance, templates, training, or tools to facilitate an efficient and effective environmental review process for surface transportation projects and any administrative expenses of the Federal Highway Administration to conduct activities described in this section; and</text></paragraph><paragraph id="HA689F63381EE48769B8AD0C25440F1CD"><enum>(2)</enum><text>providing funds made available under this subsection to eligible entities—</text><subparagraph id="H44D9ABF575BE4868860F871B37147436"><enum>(A)</enum><text>to build capacity of such eligible entities to conduct environmental review processes;</text></subparagraph><subparagraph id="id3BC7C365E98F444598E1DD4099DBB417"><enum>(B)</enum><text>to facilitate the environmental review process for proposed projects by—</text><clause id="H55439CF61B0F48FC9C7AB72D4ABC4E17"><enum>(i)</enum><text>defining the scope or study areas;</text></clause><clause id="HF126F6898AB24B84AD8FE89E6D9FFAF3"><enum>(ii)</enum><text>identifying impacts, mitigation measures, and reasonable alternatives;</text></clause><clause id="H8E88098F6B6D4399A3316698946BA679"><enum>(iii)</enum><text>preparing planning and environmental studies and other documents prior to and during the environmental review process, for potential use in the environmental review process in accordance with applicable statutes and regulations;</text></clause><clause id="H872788753F694F59816210A68839E4FD"><enum>(iv)</enum><text>conducting public engagement activities; and</text></clause><clause id="H0AA7F50CCBC3479082812BBC3AAEF95F"><enum>(v)</enum><text>carrying out permitting or other activities, as the Administrator determines to be appropriate, to support the timely completion of an environmental review process required for a proposed project; and</text></clause></subparagraph><subparagraph id="H295BDAEF87B845418BCAB171053B719C"><enum>(C)</enum><text>for administrative expenses of the eligible entity to conduct any of the activities described in subparagraphs (A) and (B).</text></subparagraph></paragraph></subsection><subsection id="H30E869B01BFB4D00A67610F1D67643A2"><enum>(b)</enum><header>Cost share</header><paragraph id="H9E352A64A2674CC5A0405D9D9C5AFBE5"><enum>(1)</enum><header>In general</header><text>The Federal share of the cost of an activity carried out under this section by an eligible entity shall be not more than 80 percent.</text></paragraph><paragraph id="H471CE4A14F354FDDB419A1E3E69A3997"><enum>(2)</enum><header>Source of funds</header><text>The non-Federal share of the cost of an activity carried out under this section by an eligible entity may be satisfied using funds made available to the eligible entity under any other Federal, State, or local grant program.</text></paragraph></subsection><subsection id="H3303B80C4B6B44DBAD2DD608BFE5C652"><enum>(c)</enum><header>Definitions</header><text>In this section:</text><paragraph id="H9A79182583144110903A9697A8FA4381"><enum>(1)</enum><header>Administrator</header><text>The term <quote>Administrator</quote> means the Administrator of the Federal Highway Administration.</text></paragraph><paragraph id="H869AE4D23C244028A83E123D17C3C450"><enum>(2)</enum><header>Eligible entity</header><text>The term <quote>eligible entity</quote> means—</text><subparagraph id="HC0B9536752DF47F3A11C4ED5DDA0627B"><enum>(A)</enum><text>a State;</text></subparagraph><subparagraph id="HE478BBA7D43C4AA19C9E5E25588528C2"><enum>(B)</enum><text>a unit of local government;</text></subparagraph><subparagraph id="H81A3B2C824FD47B6B1DA3B60921B5B18"><enum>(C)</enum><text>a political subdivision of a State;</text></subparagraph><subparagraph id="H2AA42C20D0514ACB947C94FFF02CB817"><enum>(D)</enum><text>a territory of the United States;</text></subparagraph><subparagraph id="H8F7933D597D545C3B3A862B3AD0710A0"><enum>(E)</enum><text>an entity described in section 207(m)(1)(E);</text></subparagraph><subparagraph id="H5418FC22F430425E9DD5580495B50342"><enum>(F)</enum><text>a recipient of funds under section 203; or</text></subparagraph><subparagraph id="H4E20C4BA7B994F2D83659670DE40A24C"><enum>(G)</enum><text>a metropolitan planning organization (as defined in section 134(b)(2)).</text></subparagraph></paragraph><paragraph id="H53B7FA912EAD4ECEA5062BF86F59FEAA"><enum>(3)</enum><header>Environmental review process</header><text>The term <quote>environmental review process</quote> has the meaning given the term in section 139(a)(5).</text></paragraph><paragraph id="HBBF6359C08404EE3931436A2AB1C2FEB"><enum>(4)</enum><header>Proposed project</header><text display-inline="yes-display-inline">The term <quote>proposed project</quote> means a surface transportation project for which an environmental review process is required.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H176D41390B2C4FC38D1C3D4898287B33"><enum>(b)</enum><header>Clerical amendment</header><text display-inline="yes-display-inline">The analysis for <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/23/1">chapter 1</external-xref> of title 23, United States Code, is further amended by adding at the end the following: </text><quoted-block style="USC" id="H933E45F8FBF748C4BC04191799637E88" display-inline="no-display-inline" changed="added" reported-display-style="italic"><toc regeneration="no-regeneration" changed="added" reported-display-style="italic"><toc-entry level="section">178. Environmental review implementation funds.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section><section id="H34A918329F9C48358F8192815D84FB29" section-type="subsequent-section" display-inline="no-display-inline"><enum>60506.</enum><header>Low-carbon transportation materials grants</header><subsection id="H440728761C9445028A529CC9037D4B38"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/23/1">Chapter 1</external-xref> of title 23, United States Code, is further amended by adding at the end the following:</text><quoted-block style="USC" id="H91FFC2269C1849BA96A8E9BC76A4F69E" display-inline="no-display-inline" changed="added" reported-display-style="italic"><section id="HA2F1A9127E084A07A6923F5DE535910F"><enum>179.</enum><header>Low-carbon transportation materials grants</header><subsection id="H5774979F935143D9ABA97215FF52637F"><enum>(a)</enum><header>Federal highway administration appropriation</header><text>In addition to amounts otherwise available, there is appropriated for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $2,000,000,000, to remain available until September 30, 2026, to the Administrator to reimburse or provide incentives to eligible recipients for the use, in projects, of construction materials and products that have substantially lower levels of embodied greenhouse gas emissions associated with all relevant stages of production, use, and disposal as compared to estimated industry averages of similar materials or products, as determined by the Administrator of the Environmental Protection Agency, and for the operations and administration of the Federal Highway Administration to carry out this section.</text></subsection><subsection id="H3FF12EACE3F140498A73670C38D89A51"><enum>(b)</enum><header>Reimbursement of incremental costs; incentives</header><paragraph id="H94737F65FEC148A9AFB1B6A0C70C7C74"><enum>(1)</enum><header>In general</header><text>The Administrator shall, subject to the availability of funds, either reimburse or provide incentives to eligible recipients that use low-embodied carbon construction materials and products on a project funded under this title.</text></paragraph><paragraph id="id11560180855643BFB8AA7E34AFBBD302"><enum>(2)</enum><header>Reimbursement and incentive amounts</header><subparagraph id="idE718FBDD60AA4B0BA7EB56255F5BC40D"><enum>(A)</enum><header>Incremental amount</header><text>The amount of reimbursement under paragraph (1) shall be equal to the incrementally higher cost of using such materials relative to the cost of using traditional materials, as determined by the eligible recipient and verified by the Administrator.</text></subparagraph><subparagraph id="idF890890EF82A485B80F7E374123F851C"><enum>(B)</enum><header>Incentive amount</header><text>The amount of an incentive under paragraph (1) shall be equal to 2 percent of the cost of using low-embodied carbon construction materials and products on a project funded under this title. </text></subparagraph></paragraph><paragraph id="H08642A5F0F8243E5AE111BF76671D494"><enum>(3)</enum><header>Federal share</header><text>If a reimbursement or incentive is provided under paragraph (1), the total Federal share payable for the project for which the reimbursement or incentive is provided shall be up to 100 percent.</text></paragraph><paragraph id="H9BD3C62F800E4C6D99E643216FE1D6E4"><enum>(4)</enum><header>Limitations</header><subparagraph id="H29FED500EF194A4B945B02CFF3F78739"><enum>(A)</enum><header>In general</header><text>The Administrator shall only provide a reimbursement or incentive under paragraph (1) for a project on a—</text><clause id="H02D39250C42D434AA56CAF7F41A58D93"><enum>(i)</enum><text>Federal-aid highway;</text></clause><clause id="H83018F6051214367B69D68AD90810E26"><enum>(ii)</enum><text>tribal transportation facility;</text></clause><clause id="HF869CDBF81F7413E857AC58639202414"><enum>(iii)</enum><text>Federal lands transportation facility; or</text></clause><clause id="H80532F0585CD444E8F0E578EF2B21397"><enum>(iv)</enum><text>Federal lands access transportation facility.</text></clause></subparagraph><subparagraph id="HFAD99B7347C14EAC8F0927375CA4E703"><enum>(B)</enum><header>Other restrictions</header><text>Amounts made available under this section shall not be subject to any restriction or limitation on the total amount of funds available for implementation or execution of programs authorized for Federal-aid highways.</text></subparagraph><subparagraph id="HD4EAFE6EB2624E368DF65443A883D553"><enum>(C)</enum><header>Single occupant passenger vehicles</header><text>Funds made available under this section shall not be used for projects that result in additional through travel lanes for single occupant passenger vehicles.</text></subparagraph></paragraph><paragraph id="H700527485E6B4A22A1770B96A09A16D3"><enum>(5)</enum><header>Materials identification</header><text display-inline="yes-display-inline">The Administrator shall review the low-embodied carbon construction materials and products identified by the Administrator of the Environmental Protection Agency and shall identify low-embodied carbon construction materials and products—</text><subparagraph id="H79DCFDCC7C7647B185EA76312905E5A9"><enum>(A)</enum><text>appropriate for use in projects eligible under this title; and</text></subparagraph><subparagraph id="H51E86AF2A1784AB7B8ADC028BEF8DA5F"><enum>(B)</enum><text>eligible for reimbursement or incentives under this section.</text></subparagraph></paragraph></subsection><subsection id="H7C9FF35A77434A0DA473172F36690C66"><enum>(c)</enum><header>Definitions</header><text>In this section:</text><paragraph id="HD4A14A8CBC584C7D93724394A7A89A88"><enum>(1)</enum><header>Administrator</header><text>The term <quote>Administrator</quote> means the Administrator of the Federal Highway Administration.</text></paragraph><paragraph id="H8B86F45DAF7844E79F6BF15EA6173879"><enum>(2)</enum><header>Eligible recipient</header><text>The term <quote>eligible recipient</quote> means—</text><subparagraph id="H12651A4DE2214724A3630BBD7B45E711"><enum>(A)</enum><text>a State;</text></subparagraph><subparagraph id="H073E5139D1DA4D1E9A733E7AE9A7A31B"><enum>(B)</enum><text>a unit of local government;</text></subparagraph><subparagraph id="H016AB343A7E744CA84EB5943F8199376"><enum>(C)</enum><text>a political subdivision of a State;</text></subparagraph><subparagraph id="HEEBD5A4F867F40E392A44C0DFC760DB0"><enum>(D)</enum><text>a territory of the United States;</text></subparagraph><subparagraph id="H2657C42B984542ECA4F918925C752E0D"><enum>(E)</enum><text>an entity described in section 207(m)(1)(E);</text></subparagraph><subparagraph id="HA1E8799F78CC481D9E65DA3C1F7D5A1D"><enum>(F)</enum><text>a recipient of funds under section 203;</text></subparagraph><subparagraph id="HAE2B3363F9364D3B933D0EF08E02B32A"><enum>(G)</enum><text>a metropolitan planning organization (as defined in section 134(b)(2)); or </text></subparagraph><subparagraph id="H0EB17AE9F1024E229BF180561FDAD5BC"><enum>(H)</enum><text>a special purpose district or public authority with a transportation function.</text></subparagraph></paragraph><paragraph id="id3C25B6C8EF8D478CB393F2ED20D2A8BF" commented="no" display-inline="no-display-inline"><enum>(3)</enum><header display-inline="yes-display-inline">Greenhouse gas</header><text display-inline="yes-display-inline">The term <term>greenhouse gas</term> means the air pollutants carbon dioxide, hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur hexafluoride.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H7FABC1FD7BCF4C3E911916463D0D743E"><enum>(b)</enum><header>Clerical amendment</header><text display-inline="yes-display-inline">The analysis for <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/23/1">chapter 1</external-xref> of title 23, United States Code, is further amended by adding at the end the following: </text><quoted-block style="USC" id="H628AD4A20D4D4E85A6AB004E4F165EC8" display-inline="no-display-inline" changed="added" reported-display-style="italic"><toc regeneration="no-regeneration" changed="added" reported-display-style="italic"><toc-entry level="section">179. Low-carbon transportation materials grants.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section></subtitle><enum>VII</enum><header>Committee on Homeland Security and Governmental Affairs</header><section id="id7478915e1e70403288e3c0bd1c8dc4dc"><enum>70001.</enum><header>DHS Office of Chief Readiness Support Officer</header><text display-inline="no-display-inline">In addition to the amounts otherwise available, there is appropriated to the Secretary of Homeland Security for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $500,000,000, to remain available until September 30, 2028, for the Office of the Chief Readiness Support Officer to carry out sustainability and environmental programs. </text></section><section id="idf75412aef1964dbc9d231ea61ca85e4a"><enum>70002.</enum><header>United States Postal Service clean fleets</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated to the United States Postal Service for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, the following amounts, to be deposited into the Postal Service Fund established under section 2003 of title 39, United States Code:</text><paragraph id="idAA759777DC064352B70A109681B2FB53"><enum>(1)</enum><text>$1,290,000,000, to remain available through September 30, 2031, for the purchase of zero-emission delivery vehicles.</text></paragraph><paragraph id="id5A9D5A8097EF4F4EA52C7B955FC03895"><enum>(2)</enum><text>$1,710,000,000, to remain available through September 30, 2031, for the purchase, design, and installation of the requisite infrastructure to support zero-emission delivery vehicles at facilities that the United States Postal Service owns or leases from non-Federal entities.</text></paragraph></section><section id="id4966AF260CD74BBAB4A46191EF365197"><enum>70003.</enum><header>United States Postal Service Office of Inspector General</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated to the Office of Inspector General of the United States Postal Service for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $15,000,000, to remain available through September 30, 2031, to support oversight of United States Postal Service activities implemented pursuant to this Act.</text></section><section id="id64c3ffbf062c48b4ad568d8112f11948"><enum>70004.</enum><header>Government Accountability Office oversight</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated to the Comptroller General of the United States for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $25,000,000, to remain available until September 30, 2031, for necessary expenses of the Government Accountability Office to support the oversight of—</text><paragraph id="ide7d4da80dcab4bc1a6624f0bc15696e1"><enum>(1)</enum><text>the distribution and use of funds appropriated under this Act; and</text></paragraph><paragraph id="id50752d6759684da79c4ea66b50b9551f"><enum>(2)</enum><text>whether the economic, social, and environmental impacts of the funds described in paragraph (1) are equitable. </text></paragraph></section><section id="idfb2ad97e842940fe988bc3fd2ec1240f"><enum>70005.</enum><header>Office of Management and Budget oversight</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there are appropriated to the Director of the Office of Management and Budget for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $25,000,000, to remain available until September 30, 2026, for necessary expenses to—</text><paragraph id="id516118c7eaf94f7cb62d5632b1dc0e37"><enum>(1)</enum><text>oversee the implementation of this Act; and</text></paragraph><paragraph id="idc4bb5cf3e20f4af4b583ac69b307ca71"><enum>(2)</enum><text>track labor, equity, and environmental standards and performance. </text></paragraph></section><section id="id9730946ad99342e4946d08338cbc7922"><enum>70006.</enum><header>FEMA building materials program</header><text display-inline="no-display-inline">Through September 30, 2026, the Administrator of the Federal Emergency Management Agency may provide financial assistance under sections 203(h), 404(a), and 406(b) of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (<external-xref legal-doc="usc" parsable-cite="usc/42/5133">42 U.S.C. 5133(h)</external-xref>, <external-xref legal-doc="usc" parsable-cite="usc/42/5170c">42 U.S.C. 5170c(a)</external-xref>, <external-xref legal-doc="usc" parsable-cite="usc/42/5172">42 U.S.C. 5172(b)</external-xref>) for—</text><paragraph id="id8a96db6822e4413197b93d2de8043966"><enum>(1)</enum><text>costs associated with low-carbon materials; and</text></paragraph><paragraph id="idb73900d7a1e04b27a43ddbf70573f6b1"><enum>(2)</enum><text>incentives that encourage low-carbon and net-zero energy projects.</text></paragraph></section><section id="id63F11B1FDF944603BFB05A2862666D57"><enum>70007.</enum><header>Federal Permitting Improvement Steering Council Environmental Review Improvement Fund mandatory funding</header><text display-inline="no-display-inline">In addition to amounts otherwise available, there is appropriated to the Federal Permitting Improvement Steering Council Environmental Review Improvement Fund, out of any money in the Treasury not otherwise appropriated, $350,000,000 for fiscal year 2023, to remain available through September 30, 2031.</text></section><enum>VIII</enum><header>Committee on Indian Affairs</header><section id="id50043c2eb2784e10bfd10a46faa58e6f"><enum>80001.</enum><header>Tribal climate resilience</header><subsection id="idbd53a8c9717748938e7591dedf021295"><enum>(a)</enum><header>Tribal climate resilience and adaptation</header><text>In addition to amounts otherwise available, there is appropriated to the Director of the Bureau of Indian Affairs for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $220,000,000, to remain available until September 30, 2031, for Tribal climate resilience and adaptation programs.</text></subsection><subsection id="ide71652fce55a4fa2b3ce68ced4741201"><enum>(b)</enum><header>Bureau of indian affairs fish hatcheries</header><text>In addition to amounts otherwise available, there is appropriated to the Director of the Bureau of Indian Affairs for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $10,000,000, to remain available until September 30, 2031, for fish hatchery operations and maintenance programs of the Bureau of Indian Affairs.</text></subsection><subsection id="idc35506e3a06c493bbac5a44736894d69"><enum>(c)</enum><header>Administration</header><text>In addition to amounts otherwise available, there is appropriated to the Director of the Bureau of Indian Affairs for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $5,000,000, to remain available until September 30, 2031, for the administrative costs of carrying out this section. </text></subsection><subsection id="id5B6E031D731E40D9AB31883956EEFD58"><enum>(d)</enum><header>Cost-sharing and matching requirements</header><text>None of the funds provided by this section shall be subject to cost-sharing or matching requirements.</text></subsection><subsection id="id8274b24c09cf4031b5d18c5262fa05c6"><enum>(e)</enum><header>Small and needy program</header><text>Amounts made available under this section shall be excluded from the calculation of funds received by those Tribal governments that participate in the <quote>Small and Needy</quote> program.</text></subsection><subsection id="id538e5038f3fd48f0b89c7cef4fabac8b"><enum>(f)</enum><header>Distribution; use of funds</header><text>Amounts made available under this section that are distributed to Indian Tribes and Tribal organizations for services pursuant to a self-determination contract (as defined in subsection (j) of section 4 of the Indian Self-Determination and Education Assistance Act (<external-xref legal-doc="usc" parsable-cite="usc/25/5304">25 U.S.C. 5304(j)</external-xref>)) or a self-governance compact entered into pursuant to subsection (a) of section 404 of the Indian Self-Determination and Education Assistance Act (<external-xref legal-doc="usc" parsable-cite="usc/25/5364">25 U.S.C. 5364(a)</external-xref>)—</text><paragraph id="id1a34103bde494396b4cf3eb366f9b3bc"><enum>(1)</enum><text>shall be distributed on a 1-time basis;</text></paragraph><paragraph id="idc90ab2f145274b5d9a74bd6d94fcf601"><enum>(2)</enum><text>shall not be part of the amount required by subsections (a) through (b) of section 106 of the Indian Self-Determination and Education Assistance Act (<external-xref legal-doc="usc" parsable-cite="usc/25/5325">25 U.S.C. 5325(a)</external-xref>–(b)); and</text></paragraph><paragraph id="id6d39036fc0b64637ab859bbad91bfce3"><enum>(3)</enum><text>shall only be used for the purposes identified under the applicable subsection.</text></paragraph></subsection></section><section id="id327234fb00cd4083b2eeb11c581fdf09"><enum>80002.</enum><header>Native hawaiian climate resilience</header><subsection id="id98ccb4e9d5864feaa900ddc1fe3b0587"><enum>(a)</enum><header>Native hawaiian climate resilience and adaptation</header><text>In addition to amounts otherwise available, there is appropriated to the Senior Program Director of the Office of Native Hawaiian Relations for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $23,500,000, to remain available until September 30, 2031, to carry out, through financial assistance, technical assistance, direct expenditure, grants, contracts, or cooperative agreements, climate resilience and adaptation activities that serve the Native Hawaiian Community.</text></subsection><subsection id="id662a4aea1def47fc81ace87c1af97281"><enum>(b)</enum><header>Administration</header><text>In addition to amounts otherwise available, there is appropriated to the Senior Program Director of the Office of Native Hawaiian Relations for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $1,500,000, to remain available until September 30, 2031, for the administrative costs of carrying out this section. </text></subsection><subsection id="idBE10159495314E5EA3B7B914940623B6"><enum>(c)</enum><header>Cost-sharing and matching requirements</header><text>None of the funds provided by this section shall be subject to cost-sharing or matching requirements.</text></subsection></section><section id="idfba3ad9951e74d14be6ec863e682f72d"><enum>80003.</enum><header>Tribal electrification program</header><subsection id="idd755cc2cbcbc4d1d9861946f7cd7dbd6"><enum>(a)</enum><header>Tribal electrification program</header><text>In addition to amounts otherwise available, there is appropriated to the Director of the Bureau of Indian Affairs for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $145,500,000, to remain available until September 30, 2031, for—</text><paragraph id="id2bfd543d62b148d59080f26eb664aaea"><enum>(1)</enum><text>the provision of electricity to unelectrified Tribal homes through zero-emissions energy systems;</text></paragraph><paragraph id="id4ecce74da93240c59529f3e8be55e89d"><enum>(2)</enum><text>transitioning electrified Tribal homes to zero-emissions energy systems; and</text></paragraph><paragraph id="id90a7c0a4e9a14aff99aaf1a57f8fe65e"><enum>(3)</enum><text>associated home repairs and retrofitting necessary to install the zero-emissions energy systems authorized under paragraphs (1) and (2).</text></paragraph></subsection><subsection id="ide53be6382b39413cbb0941c6b85623ff"><enum>(b)</enum><header>Administration</header><text>In addition to amounts otherwise available, there is appropriated to the Director of the Bureau of Indian Affairs for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $4,500,000, to remain available until September 30, 2031, for the administrative costs of carrying out this section.</text></subsection><subsection id="id9259B8F9590B45AABEBEC83D0AFB5C37"><enum>(c)</enum><header>Cost-sharing and matching requirements</header><text>None of the funds provided by this section shall be subject to cost-sharing or matching requirements.</text></subsection><subsection id="idf6415fdd3baa48aa889586f099729842"><enum>(d)</enum><header>Small and needy program</header><text>Amounts made available under this section shall be excluded from the calculation of funds received by those Tribal governments that participate in the <quote>Small and Needy</quote> program.</text></subsection><subsection id="idb54be9ef4d41436a8160b5f7e0587408"><enum>(e)</enum><header>Distribution; use of funds</header><text>Amounts made available under this section that are distributed to Indian Tribes and Tribal organizations for services pursuant to a self-determination contract (as defined in subsection (j) of section 4 of the Indian Self-Determination and Education Assistance Act (<external-xref legal-doc="usc" parsable-cite="usc/25/5304">25 U.S.C. 5304(j)</external-xref>)) or a self-governance compact entered into pursuant to subsection (a) of section 404 of the Indian Self-Determination and Education Assistance Act (<external-xref legal-doc="usc" parsable-cite="usc/25/5364">25 U.S.C. 5364(a)</external-xref>)—</text><paragraph id="id6f9dd51806a24905ae71ecae7dd9a8df"><enum>(1)</enum><text>shall be distributed on a 1-time basis;</text></paragraph><paragraph id="idfd4ca4c72ee447dea4fe082d2e834001"><enum>(2)</enum><text>shall not be part of the amount required by subsections (a) through (b) of section 106 of the Indian Self-Determination and Education Assistance Act (<external-xref legal-doc="usc" parsable-cite="usc/25/5325">25 U.S.C. 5325(a)</external-xref>–(b)); and</text></paragraph><paragraph id="id10271da9778a464e9d9647eb10fdd356"><enum>(3)</enum><text>shall only be used for the purposes identified under the applicable subsection.</text></paragraph></subsection></section><section id="id49bf585591d04e5fb29a7f0dc05d5b7b"><enum>80004.</enum><header>Emergency drought relief for Tribes</header><subsection id="idF403711E167F488A9D237920D3A85C85"><enum>(a)</enum><header>Emergency drought relief for Tribes</header><text>In addition to amounts otherwise available, there is appropriated to the Commissioner of the Bureau of Reclamation for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $12,500,000, to remain available until September 30, 2026, for near-term drought relief actions to mitigate drought impacts for Indian Tribes that are impacted by the operation of a Bureau of Reclamation water project, including through direct financial assistance to address drinking water shortages and to mitigate the loss of Tribal trust resources.</text></subsection><subsection id="idD1272CCBF45B4171A1B4E1B16E390105"><enum>(b)</enum><header>Cost-sharing and matching requirements</header><text>None of the funds provided by this section shall be subject to cost-sharing or matching requirements. </text></subsection></section>

Secretary