[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 1298 Introduced in Senate (IS)]

<DOC>






117th CONGRESS
  1st Session
                                S. 1298

 To amend the Internal Revenue Code of 1986 to provide tax incentives 
               for increased investment in clean energy.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 22, 2021

 Mr. Wyden (for himself, Ms. Stabenow, Mr. Schumer, Ms. Cantwell, Mr. 
Carper, Mr. Cardin, Mr. Bennet, Mr. Whitehouse, Ms. Hassan, Ms. Cortez 
 Masto, Mrs. Feinstein, Mr. Durbin, Ms. Klobuchar, Mrs. Shaheen, Mrs. 
 Gillibrand, Mr. Blumenthal, Mr. Schatz, Ms. Hirono, Mr. Heinrich, Mr. 
 Kaine, Mr. Booker, Mr. Van Hollen, Ms. Smith, Ms. Baldwin, Ms. Rosen, 
  Mr. Leahy, Mr. King, and Mr. Murphy) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to provide tax incentives 
               for increased investment in clean energy.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; ETC.

    (a) Short Title.--This Act may be cited as the ``Clean Energy for 
America Act''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.
    (c) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; etc.
               TITLE I--INCENTIVES FOR CLEAN ELECTRICITY

Sec. 101. Clean electricity production credit.
Sec. 102. Clean electricity investment credit.
Sec. 103. Extensions, modifications, and terminations of various energy 
                            provisions.
             TITLE II--INCENTIVES FOR CLEAN TRANSPORTATION

Sec. 201. Clean fuel production credit.
Sec. 202. Transportation electrification.
Sec. 203. Temporary extensions of existing fuel incentives.
              TITLE III--INCENTIVES FOR ENERGY EFFICIENCY

Sec. 301. Credit for new energy efficient residential buildings.
Sec. 302. Energy efficient home improvement credit.
Sec. 303. Enhancement of energy efficient commercial buildings 
                            deduction.
Sec. 304. Enhancement of energy credit for geothermal heat pumps.
               TITLE IV--CLEAN ELECTRICITY AND FUEL BONDS

Sec. 401. Clean energy bonds.
         TITLE V--TERMINATION OF CERTAIN FOSSIL FUEL PROVISIONS

Sec. 501 Termination of provisions relating to oil, gas, and other 
                            materials.
              TITLE VI--WORKFORCE DEVELOPMENT REQUIREMENTS

Sec. 601. Use of qualified apprentices.

               TITLE I--INCENTIVES FOR CLEAN ELECTRICITY

SEC. 101. CLEAN ELECTRICITY PRODUCTION CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
is amended by adding at the end the following new section:

``SEC. 45U. CLEAN ELECTRICITY PRODUCTION CREDIT.

    ``(a) Amount of Credit.--For purposes of section 38, the clean 
electricity production credit for any taxable year is an amount equal 
to the product of--
            ``(1) 1.5 cents, multiplied by
            ``(2) the kilowatt hours of electricity--
                    ``(A) produced by the taxpayer at a qualified 
                facility, and
                    ``(B)(i) sold by the taxpayer to an unrelated 
                person during the taxable year, or
                    ``(ii) 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.
    ``(b) Qualified Facility.--
            ``(1) In general.--
                    ``(A) Definition.--Subject to subparagraphs (B), 
                (C), and (D), the term `qualified facility' means a 
                facility--
                            ``(i) which is used for the generation of 
                        electricity,
                            ``(ii) which is originally placed in 
                        service after December 31, 2022,
                            ``(iii) for which the greenhouse gas 
                        emissions rate (as determined under paragraph 
                        (2)) is not greater than zero, and
                            ``(iv) in the case of any facility with a 
                        total nameplate capacity equal to or greater 
                        than 1 megawatt, which--
                                    ``(I) satisfies the requirements 
                                under paragraph (3), and
                                    ``(II) with respect to the 
                                construction of such facility, 
                                satisfies the requirements under 
                                section 601 of the Clean Energy for 
                                America Act.
                    ``(B) 10-year production credit.--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.
                    ``(C) Expansion of facility; incremental 
                production.--A qualified facility shall include either 
                of the following in connection with a facility 
                described in subparagraph (A)(i) that was placed in 
                service before January 1, 2023, but only to the extent 
                of the increased amount of electricity produced at the 
                facility by reason of the following:
                            ``(i) A new unit placed in service after 
                        December 31, 2022.
                            ``(ii) Any efficiency improvements or 
                        additions of capacity placed in service after 
                        December 31, 2022.
                    ``(D) Coordination with other credits.--The term 
                `qualified facility' shall not include any facility for 
                which a credit determined under section 45, 45J, 48, or 
                48D is allowed under section 38 for the taxable year or 
                any prior taxable year.
            ``(2) Greenhouse gas emissions rate.--
                    ``(A) In general.--For purposes of this section, 
                the term `greenhouse gas emissions rate' means the 
                amount of greenhouse gases emitted into the atmosphere 
                by a facility in the production of electricity, 
                expressed as grams of CO<INF>2</INF>e per KWh.
                    ``(B) Fuel combustion and gasification.--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 (42 U.S.C. 
                7545(o)(1)(H))) in the production of electricity, 
                expressed as grams of CO<INF>2</INF>e per KWh.
                    ``(C) Establishment of emissions rates for 
                facilities.--
                            ``(i) In general.--The Secretary, in 
                        consultation with the Administrator of the 
                        Environmental Protection Agency, shall 
                        establish greenhouse gas emissions rates for 
                        types or categories of facilities, which a 
                        taxpayer shall use for purposes of this 
                        section.
                            ``(ii) Publishing emissions rates.--The 
                        Secretary shall publish a table that sets forth 
                        the greenhouse gas emissions rates for similar 
                        types or categories of facilities.
                            ``(iii) Provisional emissions rate.--
                                    ``(I) In general.--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.
                                    ``(II) Establishment of provisional 
                                and final emissions rate.--In the case 
                                of a facility for which a petition 
                                described in subclause (I) has been 
                                filed, the Secretary, in consultation 
                                with the Administrator of the 
                                Environmental Protection Agency, 
                                shall--
                                            ``(aa) not later than 12 
                                        months after the date on which 
                                        the petition was filed, provide 
                                        a provisional emissions rate 
                                        for such facility which a 
                                        taxpayer shall use for purposes 
                                        of this section, and
                                            ``(bb) not later than 24 
                                        months after the date on which 
                                        the petition was filed, 
                                        establish the emissions rate 
                                        for such facility.
                    ``(D) Carbon capture and sequestration equipment.--
                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--
                            ``(i) pursuant to any regulations 
                        established under paragraph (2) of section 
                        45Q(f), disposed of by the taxpayer in secure 
                        geological storage, or
                            ``(ii) utilized by the taxpayer in a manner 
                        described in paragraph (5) of such section.
            ``(3) Wage requirements.--The requirements described in 
        this paragraph with respect to any facility are that the 
        taxpayer shall ensure that any laborers and mechanics employed 
        by contractors and subcontractors in--
                    ``(A) the construction of such facility, or
                    ``(B) for any year during the period described in 
                paragraph (1)(B), the alteration or repair of such 
                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 as determined by the Secretary of Labor, in 
        accordance with subchapter IV of chapter 31 of title 40, United 
        States Code.
    ``(c) Inflation Adjustment.--
            ``(1) In general.--In the case of a calendar year beginning 
        after 2021, the 1.5 cent amount in paragraph (1) of subsection 
        (a) shall be adjusted by multiplying such amount by the 
        inflation adjustment factor for the calendar year in which the 
        sale or use of the electricity occurs. 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.
            ``(2) Annual computation.--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.
            ``(3) Inflation adjustment factor.--The term `inflation 
        adjustment factor' 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 `GDP implicit price deflator' 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.
    ``(d) Credit Phase-Out.--
            ``(1) In general.--If the Secretary, in consultation with 
        the Secretary of Energy and the Administrator of the 
        Environmental Protection Agency, 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 2021, 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--
                    ``(A) the amount of the credit determined under 
                subsection (a) without regard to this subsection, 
                multiplied by
                    ``(B) the phase-out percentage under paragraph (2).
            ``(2) Phase-out percentage.--The phase-out percentage under 
        this paragraph is equal to--
                    ``(A) for a facility the construction of which 
                begins during the first calendar year following the 
                calendar year in which the determination described in 
                paragraph (1) is made, 100 percent,
                    ``(B) for a facility the construction of which 
                begins during the second calendar year following such 
                determination year, 75 percent,
                    ``(C) for a facility the construction of which 
                begins during the third calendar year following such 
                determination year, 50 percent, and
                    ``(D) for a facility placed in service during any 
                calendar year subsequent to the year described in 
                subparagraph (C), 0 percent.
    ``(e) Definitions.--In this section:
            ``(1) CO<INF>2</INF>e per KWh.--The term `CO<INF>2</INF>e 
        per KWh' means, with respect to any greenhouse gas, the 
        equivalent carbon dioxide (as determined based on global 
        warming potential) per kilowatt hour of electricity produced.
            ``(2) Greenhouse gas.--The term `greenhouse gas' has the 
        same meaning given such term under section 211(o)(1)(G) of the 
        Clean Air Act (42 U.S.C. 7545(o)(1)(G)), as in effect on the 
        date of the enactment of this section.
            ``(3) Qualified carbon dioxide.--The term `qualified carbon 
        dioxide' means carbon dioxide captured from an industrial 
        source which--
                    ``(A) would otherwise be released into the 
                atmosphere as industrial emission of greenhouse gas,
                    ``(B) is measured at the source of capture and 
                verified at the point of disposal or utilization, and
                    ``(C) 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)).
    ``(f) Final Guidance.--Not later than January 1, 2023, the 
Secretary, in consultation with the Administrator of the Environmental 
Protection Agency, shall issue final 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.
    ``(g) Special Rules.--
            ``(1) Only production in the united states taken into 
        account.--Consumption or sales shall be taken into account 
        under this section only with respect to electricity the 
        production of which is within--
                    ``(A) the United States (within the meaning of 
                section 638(1)), or
                    ``(B) a possession of the United States (within the 
                meaning of section 638(2)).
            ``(2) Combined heat and power system property.--
                    ``(A) In general.--For purposes of subsection (a)--
                            ``(i) 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
                            ``(ii) 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.
                    ``(B) Combined heat and power system property.--For 
                purposes of this paragraph, the term `combined heat and 
                power system property' has the same meaning given such 
                term by section 48(c)(3) (without regard to 
                subparagraphs (A)(iv), (B), and (D) thereof).
                    ``(C) Conversion from btu to kwh.--
                            ``(i) In general.--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--
                                    ``(I) the total useful thermal 
                                energy produced by the combined heat 
                                and power system property within the 
                                qualified facility, divided by
                                    ``(II) the heat rate for such 
                                facility.
                            ``(ii) Heat rate.--For purposes of this 
                        subparagraph, the term `heat rate' 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.
            ``(3) Production attributable to the taxpayer.--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.
            ``(4) Related persons.--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.
            ``(5) Pass-thru in the case of estates and trusts.--Under 
        regulations prescribed by the Secretary, rules similar to the 
        rules of subsection (d) of section 52 shall apply.
            ``(6) Allocation of credit to patrons of agricultural 
        cooperative.--
                    ``(A) Election to allocate.--
                            ``(i) In general.--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.
                            ``(ii) Form and effect of election.--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).
                    ``(B) Treatment of organizations and patrons.--The 
                amount of the credit apportioned to any patrons under 
                subparagraph (A)--
                            ``(i) shall not be included in the amount 
                        determined under subsection (a) with respect to 
                        the organization for the taxable year, and
                            ``(ii) 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.
                    ``(C) Special rules for decrease in credits for 
                taxable year.--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--
                            ``(i) such reduction, over
                            ``(ii) the amount not apportioned to such 
                        patrons under subparagraph (A) for the taxable 
                        year,
                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.
                    ``(D) Eligible cooperative defined.--For purposes 
                of this section, the term `eligible cooperative' 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.
    ``(h) Election for Direct Payment.--
            ``(1) In general.--The amount of any credit determined 
        under subsection (a) with respect to any qualified facility for 
        any taxable year during the period described in subsection 
        (b)(1)(B) shall, at the election of the taxpayer, be treated as 
        a payment equal to such amount which is made by the taxpayer 
        against the tax imposed by chapter 1 for such taxable year.
            ``(2) Form and effect of election.--An election under 
        paragraph (1) shall be made prior to the date on which 
        construction of the qualified facility begins and in such 
        manner as the Secretary may prescribe. Such election, once 
        made, shall--
                    ``(A) be irrevocable with respect to such qualified 
                facility for the period described in subsection 
                (b)(1)(B), and
                    ``(B) for any taxable year during such period, 
                reduce the amount of the credit which would (but for 
                this paragraph) be allowable under this section with 
                respect to such qualified facility for such taxable 
                year to zero.
            ``(3) Application to partnerships and s corporations.--In 
        the case of a partnership or S corporation which makes an 
        election under paragraph (1)--
                    ``(A) such paragraph shall apply with respect to 
                such partnership or corporation without regard to the 
                fact that no tax is imposed by chapter 1 on such 
                partnership or corporation, and
                    ``(B)(i) in the case of a partnership, each 
                partner's distributive share of the credit determined 
                under subsection (a) with respect to the qualified 
                facility shall be deemed to be zero, and
                    ``(ii) in the case of a S corporation, each 
                shareholder's pro rata share of the credit determined 
                under subsection (a) with respect to the qualified 
                facility shall be deemed to be zero.''.
    (b) Conforming Amendments.--
            (1) Section 38(b) is amended--
                    (A) in paragraph (32), by striking ``plus'' at the 
                end,
                    (B) in paragraph (33), by striking the period at 
                the end and inserting ``, plus'', and
                    (C) by adding at the end the following new 
                paragraph:
            ``(34) the clean electricity production credit determined 
        under section 45U(a).''.
            (2) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1 is amended by adding at the end the 
        following new item:

``Sec. 45U. Clean electricity production credit.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to facilities placed in service after December 31, 2022.

SEC. 102. CLEAN ELECTRICITY INVESTMENT CREDIT.

    (a) Business Credit.--
            (1) In general.--Subpart E of part IV of subchapter A of 
        chapter 1 is amended by inserting after section 48C the 
        following new section:

``SEC. 48D. CLEAN ELECTRICITY INVESTMENT CREDIT.

    ``(a) Investment Credit for Qualified Property.--
            ``(1) In general.--For purposes of section 46, the clean 
        electricity investment credit for any taxable year is--
                    ``(A) except as provided in subparagraph (B), an 
                amount equal to 30 percent of the qualified investment 
                for such taxable year with respect to--
                            ``(i) any qualified facility, and
                            ``(ii) any grid improvement property, and
                    ``(B) in the case of a qualified facility which is 
                a microgrid, an amount equal to the product of--
                            ``(i) 30 percent of the qualified 
                        investment for such taxable year with respect 
                        to such microgrid, and
                            ``(ii) the relative avoided emissions rate 
                        with respect to such microgrid (as determined 
                        under subsection (b)(3)(C)(iv)).
            ``(2) Disadvantaged communities.--
                    ``(A) In general.--In the case of any qualified 
                facility (with the exception of any such facility 
                described in section 45U(b)(2)(B)) or energy storage 
                property which is placed in service within a 
                disadvantaged community, paragraph (1) shall be applied 
                by substituting `40 percent' for `30 percent'.
                    ``(B) Disadvantaged community.--For purposes of 
                this paragraph, the term `disadvantaged community' has 
                the same meaning given the term `low-income community' 
                in section 45D(e)(1).
    ``(b) Qualified Investment With Respect to Any Qualified 
Facility.--
            ``(1) In general.--For purposes of subsection (a), the 
        qualified investment with respect to any qualified facility for 
        any taxable year is the basis of any qualified property placed 
        in service by the taxpayer during such taxable year which is 
        part of a qualified facility.
            ``(2) Qualified property.--The term `qualified property' 
        means property--
                    ``(A) which is--
                            ``(i) tangible personal property, or
                            ``(ii) 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,
                    ``(B) with respect to which depreciation (or 
                amortization in lieu of depreciation) is allowable,
                    ``(C) which is constructed, reconstructed, erected, 
                or acquired by the taxpayer, and
                    ``(D) the original use of which commences with the 
                taxpayer.
            ``(3) Qualified facility.--
                    ``(A) In general.--For purposes of this section, 
                the term `qualified facility' means a facility--
                            ``(i) which is used for the generation of 
                        electricity,
                            ``(ii) which is originally placed in 
                        service after December 31, 2022,
                            ``(iii) for which the anticipated 
                        greenhouse gas emissions rate (as determined 
                        under clause (ii)) is not greater than zero, 
                        and
                            ``(iv) in the case of any facility with a 
                        total nameplate capacity equal to or greater 
                        than 1 megawatt, which--
                                    ``(I) satisfies the requirements 
                                under subparagraph (B)(iii), and
                                    ``(II) with respect to the 
                                construction of such facility, 
                                satisfies the requirements under 
                                section 601 of the Clean Energy for 
                                America Act.
                    ``(B) Additional rules.--
                            ``(i) Expansion of facility; incremental 
                        production.--Rules similar to the rules of 
                        section 45U(b)(1)(B) shall apply for purposes 
                        of this paragraph.
                            ``(ii) Establishment of emissions rates for 
                        qualified facilities.--
                                    ``(I) In general.--The Secretary, 
                                in consultation with the Administrator 
                                of the Environmental Protection Agency, 
                                shall establish greenhouse gas 
                                emissions rates for types or categories 
                                of facilities, which a taxpayer shall 
                                use for purposes of this section.
                                    ``(II) Publishing emissions 
                                rates.--The Secretary shall publish a 
                                table that sets forth the greenhouse 
                                gas emissions rates for similar types 
                                or categories of facilities.
                            ``(iii) Wage requirements.--The 
                        requirements described in this clause with 
                        respect to any facility are that the taxpayer 
                        shall ensure that any laborers and mechanics 
                        employed by contractors and subcontractors in--
                                    ``(I) the construction of such 
                                facility, or
                                    ``(II) for any year during the 5-
                                year period beginning on the date the 
                                facility is originally placed in 
                                service, the alteration or repair of 
                                such 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 as determined by the Secretary of 
                        Labor, in accordance with subchapter IV of 
                        chapter 31 of title 40, United States Code.
                    ``(C) Microgrids.--
                            ``(i) In general.--For purposes of this 
                        section, the term `qualified facility' shall 
                        include any microgrid.
                            ``(ii) Microgrid.--For purposes of this 
                        section, the term `microgrid' means an 
                        interconnected system of distributed energy 
                        resources used for the generation of 
                        electricity which--
                                    ``(I) is contained within a clearly 
                                defined electrical boundary and has the 
                                ability to operate as a single and 
                                controllable entity,
                                    ``(II) has the ability to be 
                                managed and isolated from the 
                                applicable grid region in order to 
                                withstand larger disturbances and 
                                maintain the supply of electricity to 
                                connected critical infrastructure, and
                                    ``(III) has no point of 
                                interconnection to the applicable grid 
                                region with a throughput capacity in 
                                excess of 20 megawatts.
                            ``(iii) Applicable grid region.--For 
                        purposes of this subparagraph, the term 
                        `applicable grid region' means a set of power 
                        plants and transmission lines which are--
                                    ``(I) under the control of a single 
                                grid operator, and
                                    ``(II) interconnected to the 
                                microgrid.
                            ``(iv) Relative avoided emissions rate.--
                                    ``(I) In general.--For purposes of 
                                subsection (a)(1)(B)(ii), the relative 
                                avoided emissions rate shall be the 
                                amount equal to the quotient of--
                                            ``(aa) the amount equal to 
                                        the non-baseload output 
                                        emissions rate for the 
                                        applicable grid region minus 
                                        the greenhouse gas emissions 
                                        rate for the microgrid, divided 
                                        by
                                            ``(bb) the non-baseload 
                                        output emissions rate for the 
                                        applicable grid region.
                                    ``(II) Non-baseload output 
                                emissions rate.--
                                            ``(aa) In general.--For 
                                        purposes of this subparagraph, 
                                        the term `non-baseload output 
                                        emissions rate' means the 
                                        amount of greenhouse gases 
                                        emitted into the atmosphere by 
                                        the applicable grid region for 
                                        the production of electricity 
                                        (expressed as grams of 
                                        CO<INF>2</INF>e per KWh) above 
                                        baseload.
                                            ``(bb) Determination.--The 
                                        non-baseload output emissions 
                                        rate for any applicable grid 
                                        region shall be determined by 
                                        the Administrator of the 
                                        Environmental Protection 
                                        Agency, in consultation with 
                                        the Secretary.
                                    ``(III) Greenhouse gas emissions 
                                rate.--For purposes of this 
                                subparagraph, the term `greenhouse gas 
                                emissions rate' has the same meaning 
                                given such term under section 
                                45U(b)(2).
                    ``(D) Exclusion.--The term `qualified facility' 
                shall not include any facility for which a renewable 
                electricity production credit under section 45, an 
                advanced nuclear power facility production credit under 
                section 45J, or an energy credit determined under 
                section 48 is allowed under section 38 for the taxable 
                year or any prior taxable year.
            ``(4) Coordination with rehabilitation credit.--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)).
    ``(c) Qualified Investment With Respect to Grid Improvement 
Property.--
            ``(1) In general.--
                    ``(A) Qualified investment.--For purposes of 
                subsection (a), the qualified investment with respect 
                to grid improvement property for any taxable year is 
                the basis of any grid improvement property placed in 
                service by the taxpayer during such taxable year.
                    ``(B) Grid improvement property.--For purposes of 
                this section, the term `grid improvement property' 
                means any energy storage property or qualified 
                transmission property which--
                            ``(i) satisfies the requirements under 
                        paragraph (4), and
                            ``(ii) with respect to the construction of 
                        such property, satisfies the requirements under 
                        section 601 of the Clean Energy for America 
                        Act.
            ``(2) Energy storage property.--For purposes of this 
        subsection, the term `energy storage property' means property--
                    ``(A) which receives, stores, and delivers 
                electricity, or energy for conversion to electricity, 
                provided that such electricity is--
                            ``(i) sold by the taxpayer to an unrelated 
                        person, or
                            ``(ii) in the case of a facility which is 
                        equipped with a metering device which is owned 
                        and operated by an unrelated person, sold or 
                        consumed by the taxpayer,
                    ``(B) with respect to which depreciation is 
                allowable,
                    ``(C) which is constructed, reconstructed, erected, 
                or acquired by the taxpayer,
                    ``(D) the original use of which commences with the 
                taxpayer,
                    ``(E) which has a capacity of not less than 5 
                kilowatt hours, and
                    ``(F) which is placed in service after December 31, 
                2021.
            ``(3) Qualified transmission property.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `qualified transmission property' means--
                            ``(i) any overhead, submarine, or 
                        underground transmission property which is 
                        capable of transmitting electricity at a 
                        voltage of not less than 275 kilovolts, and
                            ``(ii) any other equipment necessary for 
                        the operation of a new circuit, including 
                        equipment listed as `transmission plant' in the 
                        Uniform System of Accounts for the Federal 
                        Energy Regulatory Commission under part 101 of 
                        subchapter C of chapter I of title 18, Code of 
                        Federal Regulations.
                    ``(B) Exclusion.--The term `qualified transmission 
                property' shall not include any property used for 
                distribution of electricity.
            ``(4) Wage requirements.--The requirements described in 
        this paragraph with respect to any property are that the 
        taxpayer shall ensure that any laborers and mechanics employed 
        by contractors and subcontractors in--
                    ``(A) the construction of such property, or
                    ``(B) for any year during the 5-year period 
                beginning on the date the property is originally placed 
                in service, the alteration or repair of such 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 as determined by the Secretary of Labor, in 
        accordance with subchapter IV of chapter 31 of title 40, United 
        States Code.
    ``(d) Certain Progress Expenditure Rules Made Applicable.--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).
    ``(e) Credit Phase-Out.--
            ``(1) In general.--If the Secretary, in consultation with 
        the Secretary of Energy and the Administrator of the 
        Environmental Protection Agency, 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 2021, the 
        amount of the clean electricity investment credit under 
        subsection (a) for any qualified property or grid improvement 
        property the construction of which begins during a calendar 
        year described in paragraph (2) shall be equal to the product 
        of--
                    ``(A) the amount of the credit determined under 
                subsection (a) without regard to this subsection, 
                multiplied by
                    ``(B) the phase-out percentage under paragraph (2).
            ``(2) Phase-out percentage.--The phase-out percentage under 
        this paragraph is equal to--
                    ``(A) for property the construction of which begins 
                during the first calendar year following the calendar 
                year in which the determination described in paragraph 
                (1) is made, 100 percent,
                    ``(B) for property the construction of which begins 
                during the second calendar year following such 
                determination year, 75 percent,
                    ``(C) for property the construction of which begins 
                during the third calendar year following such 
                determination year, 50 percent, and
                    ``(D) for property the construction of which begins 
                during any calendar year subsequent to the year 
                described in subparagraph (C), 0 percent.
    ``(f) Greenhouse Gas.--In this section, the term `greenhouse gas' 
has the same meaning given such term under section 45U(e)(2).
    ``(g) Recapture of Credit.--For purposes of section 50, if the 
Secretary, in consultation with the Administrator of the Environmental 
Protection Agency, determines that the greenhouse gas emissions rate 
for a qualified facility is significantly higher than the anticipated 
greenhouse gas emissions rate claimed by the taxpayer for purposes of 
the clean electricity investment credit under this section, the 
facility or equipment shall cease to be investment credit property in 
the taxable year in which the determination is made.
    ``(h) Final Guidance.--Not later than January 1, 2023, the 
Secretary, in consultation with the Administrator of the Environmental 
Protection Agency, shall issue final guidance regarding implementation 
of this section.
    ``(i) Election for Direct Payment.--
            ``(1) In general.--In the case of any qualified property or 
        grid improvement property placed in service during any taxable 
        year, the amount of any credit determined under subsection (a) 
        with respect to such property for such taxable year shall, at 
        the election of the taxpayer, be treated as a payment equal to 
        such amount which is made by the taxpayer against the tax 
        imposed by chapter 1 for such taxable year (regardless of 
        whether such tax would have been on such taxpayer).
            ``(2) Form and effect of election.--An election under 
        paragraph (1) shall be made prior to the date on which 
        construction of the qualified property or grid improvement 
        property begins and in such manner as the Secretary may 
        prescribe. Such election, once made, shall--
                    ``(A) be irrevocable with respect to the qualified 
                property or grid improvement property to which such 
                election applies, and
                    ``(B) reduce the amount of the credit which would 
                (but for this subsection) be allowable under this 
                section with respect to such property for the taxable 
                year in which such property is placed in service to 
                zero.
            ``(3) Application to partnerships and s corporations.--
        Rules similar to the rules of section 45U(h)(3) shall apply for 
        purposes of this subsection.''.
            (2) Public utility property.--Paragraph (2) of section 
        50(d) is amended--
                    (A) by adding after the first sentence the 
                following new sentence: ``At the election of a 
                taxpayer, this paragraph shall not apply to any grid 
                improvement property (as defined in section 
                48D(c)(1)(B)), provided--'', and
                    (B) by adding the following new subparagraphs:
                    ``(A) no election under this paragraph shall be 
                permitted if the making of such election is prohibited 
                by, or required 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),
                    ``(B) an election under this paragraph shall be 
                made separately with respect to each grid improvement 
                property by the due date (including extensions) of the 
                Federal tax return for the taxable year in which such 
                property is placed in service by the taxpayer, and once 
                made, may be revoked only with the consent of the 
                Secretary, and
                    ``(C) an election shall not apply with respect to 
                any energy storage property (as defined in section 
                48D(c)(2)) if such property has a maximum capacity 
                equal to or less than 500 kilowatt hours.''.
            (3) Conforming amendments.--
                    (A) Section 46 is amended--
                            (i) by striking ``and'' at the end of 
                        paragraph (5),
                            (ii) by striking the period at the end of 
                        paragraph (6) and inserting ``, and'', and
                            (iii) by adding at the end the following 
                        new paragraph:
            ``(7) the clean electricity investment credit.''.
                    (B) Section 49(a)(1)(C) is amended--
                            (i) by striking ``and'' at the end of 
                        clause (iv),
                            (ii) by striking the period at the end of 
                        clause (v) and inserting a comma, and
                            (iii) by adding at the end the following 
                        new clauses:
                            ``(vi) the basis of any qualified property 
                        which is part of a qualified facility under 
                        section 48D, and
                            ``(vii) the basis of any energy storage 
                        property under section 48D.''.
                    (C) Section 50(a)(2)(E) is amended by striking ``or 
                48C(b)(2)'' and inserting ``48C(b)(2), or 48D(e)''.
                    (D) The table of sections for subpart E of part IV 
                of subchapter A of chapter 1 is amended by inserting 
                after the item relating to section 48C the following 
                new item:

``48D. Clean electricity investment credit.''.
            (4) Effective date.--The amendments made by this subsection 
        shall apply to property placed in service after December 31, 
        2022, under rules similar to the rules of section 48(m) of the 
        Internal Revenue Code of 1986 (as in effect on the day before 
        the date of the enactment of the Revenue Reconciliation Act of 
        1990).
    (b) Individual Credit.--
            (1) In general.--Section 25D is amended to read as follows:

``SEC. 25D. RESIDENTIAL CLEAN ELECTRICITY CREDIT.

    ``(a) Allowance of Credit.--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 expenditures 
made by the taxpayer for any qualified property and any energy storage 
property which is--
            ``(1) for use in connection with a dwelling unit which is 
        located in the United States and used as a residence by the 
        taxpayer, and
            ``(2) placed in service during such taxable year.
    ``(b) Qualified Property.--
            ``(1) In general.--The term `qualified property' means 
        property--
                    ``(A) which is tangible personal property,
                    ``(B) which is used for the generation of 
                electricity,
                    ``(C) which is constructed, reconstructed, erected, 
                or acquired by the taxpayer,
                    ``(D) the original use of which commences with the 
                taxpayer,
                    ``(E) which is originally placed in service after 
                December 31, 2022, and
                    ``(F) for which the anticipated greenhouse gas 
                emissions rate (as determined under paragraph (2)) is 
                not greater than zero.
            ``(2) Establishment of emissions rates for qualified 
        property.--
                    ``(A) In general.--The Secretary, in consultation 
                with the Administrator of the Environmental Protection 
                Agency, shall establish greenhouse gas emissions rates 
                for types or categories of qualified property which are 
                for use in a dwelling unit, which a taxpayer shall use 
                for purposes of this section.
                    ``(B) Publishing emissions rates.--The Secretary 
                shall publish a table that sets forth the greenhouse 
                gas emissions rates for similar types or categories of 
                qualified property.
    ``(c) Energy Storage Property.--The term `energy storage property' 
means property which--
            ``(1) receives, stores, and delivers electricity or energy 
        for conversion to electricity which is consumed or sold by the 
        taxpayer,
            ``(2) is equipped with a metering device which is owned and 
        operated by an unrelated person, and
            ``(3) has a capacity of not less than 3 kilowatt hours.
    ``(d) Carryforward of Unused Credit.--
            ``(1) In general.--If the credit allowable under subsection 
        (a) exceeds the applicable tax limit, such excess shall be 
        carried to each of the 3 succeeding taxable years and added to 
        the credit allowable under subsection (a) for such succeeding 
        taxable year.
            ``(2) Limitation.--The amount of the unused credit which 
        may be taken into account under paragraph (1) for any taxable 
        year shall not exceed the amount (if any) by which the 
        applicable tax limit for such taxable year exceeds the sum of--
                    ``(A) the credit allowable under subsection (a) for 
                which such taxable year determined without regard to 
                this subsection, and
                    ``(B) the amounts which, by reason of this 
                subsection, are carried to such taxable year and are 
                attributable to taxable years before the unused credit 
                year.
            ``(3) Applicable tax limit.--For purposes of this 
        subsection, the term `applicable tax limit' means the 
        limitation imposed by section 26(a) for such taxable year 
        reduced by the sum of the credits allowable under this subpart 
        (other than this section).
    ``(e) Credit Phase-Out.--
            ``(1) In general.--If the Secretary determines that the 
        annual greenhouse gas emissions from the production of 
        electricity in the United States are equal to or less than the 
        percentage specified in section 48D(e), the amount of the 
        credit allowable under subsection (a) for any qualified 
        property or energy storage property placed in service during a 
        calendar year described in paragraph (2) shall be equal to the 
        product of--
                    ``(A) the amount of the credit determined under 
                subsection (a) without regard to this subsection, 
                multiplied by
                    ``(B) the phase-out percentage under paragraph (2).
            ``(2) Phase-out percentage.--The phase-out percentage under 
        this paragraph is equal to--
                    ``(A) for property placed in service during the 
                first calendar year following the calendar year in 
                which the determination described in paragraph (1) is 
                made, 100 percent,
                    ``(B) for property placed in service during the 
                second calendar year following such determination year, 
                75 percent,
                    ``(C) for property placed in service during the 
                third calendar year following such determination year, 
                50 percent, and
                    ``(D) for property placed in service during any 
                calendar year subsequent to the year described in 
                subparagraph (C), 0 percent.
    ``(f) Special Rules.--For purposes of this section:
            ``(1) Labor costs.--Expenditures for labor costs properly 
        allocable to the onsite preparation, assembly, or original 
        installation of the qualified property or energy storage 
        property and for piping or wiring to interconnect such property 
        to the dwelling unit shall be taken into account for purposes 
        of this section.
            ``(2) Tenant-stockholder in cooperative housing 
        corporation.--In the case of an individual who is a tenant-
        stockholder (as defined in section 216) in a cooperative 
        housing corporation (as defined in such section), such 
        individual shall be treated as having made his tenant-
        stockholder's proportionate share (as defined in section 
        216(b)(3)) of any expenditures of such corporation.
            ``(3) Condominiums.--
                    ``(A) In general.--In the case of an individual who 
                is a member of a condominium management association 
                with respect to a condominium which the individual 
                owns, such individual shall be treated as having made 
                the individual's proportionate share of any 
                expenditures of such association.
                    ``(B) Condominium management association.--For 
                purposes of this paragraph, the term `condominium 
                management association' means an organization which 
                meets the requirements of paragraph (1) of section 
                528(c) (other than subparagraph (E) thereof) with 
                respect to a condominium project substantially all of 
                the units of which are used as residences.
            ``(4) Allocation in certain cases.--If less than 80 percent 
        of the use of a property is for nonbusiness purposes, only that 
        portion of the expenditures for such property which is properly 
        allocable to use for nonbusiness purposes shall be taken into 
        account.
    ``(g) Basis Adjustment.--For purposes of this subtitle, if a credit 
is allowed under this section for any expenditures with respect to any 
property, the increase in the basis of such property which would (but 
for this subsection) result from such expenditures shall be reduced by 
the amount of the credit so allowed.
    ``(h) Final Guidance.--Not later than January 1, 2023, the 
Secretary, in consultation with the Administrator of the Environmental 
Protection Agency, shall issue final guidance regarding implementation 
of this section, including calculation of greenhouse gas emission rates 
for qualified property and determination of residential clean 
electricity property credits under this section.''.
            (2) Conforming amendments.--
                    (A) Paragraph (1) of section 45(d) is amended by 
                striking ``Such term'' and all that follows through the 
                period and inserting the following: ``Such term shall 
                not include any facility with respect to which any 
                expenditures for qualified property (as defined in 
                subsection (b) of section 25D) which uses wind to 
                produce electricity is taken into account in 
                determining the credit under such section.''.
                    (B) Paragraph (34) of section 1016(a) is amended by 
                striking ``section 25D(f)'' and inserting ``section 
                25D(g)''.
                    (C) The item relating to section 25D in the table 
                of contents for subpart A of part IV of subchapter A of 
                chapter 1 is amended to read as follows:

``Sec. 25D. Residential clean electricity credit.''.
            (3) Effective date.--The amendments made by this section 
        shall apply to property placed in service after December 31, 
        2022.

SEC. 103. EXTENSIONS, MODIFICATIONS, AND TERMINATIONS OF VARIOUS ENERGY 
              PROVISIONS.

    (a) Residential Energy Efficient Property.--
            (1) In general.--Section 25D(h) is amended by striking 
        ``December 31, 2023'' and inserting ``December 31, 2022''.
            (2) Elimination of phase-out.--Section 25D(g) is amended--
                    (A) in paragraph (1), by adding ``and'' at the end,
                    (B) in paragraph (2), by striking ``, and'' and 
                inserting a period, and
                    (C) by striking paragraph (3).
            (3) Effective date.--The amendments made by this subsection 
        shall apply to property placed in service after the date of 
        enactment of this Act.
    (b) Termination of Allocation of Unutilized Limitation for Advanced 
Nuclear Power Facilities.--Section 45J(b) is amended by striking 
paragraph (5).
    (c) Modification of Credit for Carbon Dioxide Sequestration.--
            (1) In general.--Section 45Q is amended--
                    (A) in subsection (a)(4)(B)(i), by inserting 
                ``subject to subsection (f)(8),'' before ``used by'',
                    (B) in subsection (b)(1)--
                            (i) in subparagraph (A), by striking ``The 
                        applicable dollar amount'' and inserting 
                        ``Except as provided in subparagraph (B), the 
                        applicable dollar amount'',
                            (ii) by redesignating subparagraph (B) as 
                        subparagraph (C),
                            (iii) by inserting after subparagraph (A) 
                        the following:
                    ``(B) Applicable dollar amount for direct air 
                capture facilities.--In the case of any qualified 
                facility described in subsection (d)(1) for which 
                construction begins after the date of enactment of the 
                Clean Energy for America Act, the applicable dollar 
                amount shall be an amount equal to--
                            ``(i) for any taxable year beginning in a 
                        calendar year before 2027--
                                    ``(I) for purposes of paragraph (3) 
                                of subsection (a), $175, and
                                    ``(II) for purposes of paragraph 
                                (4) of such subsection, $150, and
                            ``(ii) for any taxable year beginning in a 
                        calendar year after 2026--
                                    ``(I) for purposes of paragraph (3) 
                                of subsection (a), an amount equal to 
                                the product of $175 and the inflation 
                                adjustment factor for such calendar 
                                year determined under section 
                                43(b)(3)(B) for such calendar year, 
                                determined by substituting `2025' for 
                                `1990', and
                                    ``(II) for purposes of paragraph 
                                (4) of such subsection, an amount equal 
                                to the product of $150 and the 
                                inflation adjustment factor for such 
                                calendar year determined under section 
                                43(b)(3)(B) for such calendar year, 
                                determined by substituting `2025' for 
                                `1990'.'', and
                            (iv) in subparagraph (C), as so 
                        redesignated, by inserting ``or (B)'' after 
                        ``subparagraph (A)'',
                    (C) by striking subsection (d) and inserting the 
                following:
    ``(d) Qualified Facility.--For purposes of this section, the term 
`qualified facility' means--
            ``(1) any direct air capture facility, and
            ``(2) any industrial facility which captures--
                    ``(A) in the case of an electricity generating 
                facility, not less than 75 percent of the carbon oxide 
                which would otherwise be released into the atmosphere, 
                or
                    ``(B) in the case of an industrial facility which 
                is not an electricity generating facility, not less 
                than 50 percent of the carbon oxide which would 
                otherwise be released into the atmosphere.'',
                    (D) in subsection (f), by adding at the end the 
                following:
            ``(8) Elimination of use of carbon oxide as tertiary 
        injectant.--In the case of any qualified facility the 
        construction of which begins after the date of enactment of the 
        Clean Energy for America Act, subsection (a)(4)(B)(i) shall not 
        apply.'',
                    (E) by redesignating subsection (h) as subsection 
                (i), and
                    (F) by inserting after subsection (g) the 
                following:
    ``(h) Credit Phase-Out.--
            ``(1) In general.--
                    ``(A) Reduction based on emissions from production 
                of electricity.--Subject to subparagraphs (B) and (C), 
                if the Secretary, in consultation with the Secretary of 
                Energy and the Administrator of the Environmental 
                Protection Agency, 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 2021, the amount of the carbon oxide 
                sequestration 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--
                            ``(i) the amount of the credit determined 
                        under subsection (a) without regard to this 
                        subsection, multiplied by
                            ``(ii) the phase-out percentage under 
                        paragraph (2).
                    ``(B) Other industrial facilities.--In the case of 
                any qualified facility described in subsection 
                (d)(2)(B) the construction of which begins during a 
                calendar year described in paragraph (2), subparagraph 
                (A) shall be applied by substituting `industrial 
                sector' for `production of electricity' each place it 
                appears.
                    ``(C) Direct air capture facilities.--In the case 
                of any qualified facility described in subsection 
                (d)(1), subparagraph (A) shall not apply.
            ``(2) Phase-out percentage.--The phase-out percentage under 
        this paragraph is equal to--
                    ``(A) for a facility the construction of which 
                begins during the first calendar year following the 
                calendar year in which the determination described in 
                paragraph (1)(A) is made, 100 percent,
                    ``(B) for a facility the construction of which 
                begins during the second calendar year following such 
                determination year, 75 percent,
                    ``(C) for a facility the construction of which 
                begins during the third calendar year following such 
                determination year, 50 percent, and
                    ``(D) for a facility the construction of which 
                begins during any calendar year subsequent to the year 
                described in subparagraph (C), 0 percent.''.
            (2) Elimination of election for applicable facilities.--
                    (A) In general.--Section 45Q(f), as amended by 
                paragraph (1)(C), is amended--
                            (i) by striking paragraph (6), and
                            (ii) by redesignating paragraphs (7) and 
                        (8) as paragraphs (6) and (7), respectively.
                    (B) Conforming amendment.--Section 45Q(a)(4)(B)(i), 
                as amended by paragraph (1)(A), is amended by striking 
                ``subsection (f)(8)'' and inserting ``subsection 
                (f)(7)''.
            (3) Wage requirements.--Section 45Q(f), as amended by 
        paragraphs (1)(C) and (2), is amended by adding at the end the 
        following:
            ``(8) Wage requirements.--
                    ``(A) In general.--The term `qualified facility' 
                shall not include any facility which fails to satisfy--
                            ``(i) the requirements under subparagraph 
                        (B), and
                            ``(ii) with respect to--
                                    ``(I) the construction of any 
                                facility the construction of which 
                                begins after the date of enactment of 
                                the Clean Energy for America Act, and
                                    ``(II) the construction of any 
                                carbon capture equipment,
                        the requirements under section 601 of the Clean 
                        Energy for America Act.
                    ``(B) Requirements.--The requirements described in 
                this clause with respect to any 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 contractors and 
                subcontractors in--
                            ``(i) in the case of any facility the 
                        construction of which begins after the date of 
                        enactment of the Clean Energy for America Act, 
                        the construction of such facility, or
                            ``(ii) during the 12-year period beginning 
                        on the date on which carbon capture equipment 
                        is originally placed in service at any facility 
                        (as described in paragraphs (3)(A) and (4)(A) 
                        of subsection (a)), the alteration or repair of 
                        such facility or such equipment,
                shall be paid wages at rates not less than the 
                prevailing rates for construction, alteration, or 
                repair of a similar character in the locality as 
                determined by the Secretary of Labor, in accordance 
                with subchapter IV of chapter 31 of title 40, United 
                States Code.''.
            (4) Election for direct payment.--Section 45Q, as amended 
        by the preceding paragraphs of this subsection, is amended--
                    (A) by redesignating subsection (i) as subsection 
                (j), and
                    (B) by inserting after subsection (h) the 
                following:
    ``(i) Election for Direct Payment.--
            ``(1) In general.--The amount of any credit determined 
        under paragraph (3) or (4) of subsection (a) with respect to 
        any qualified carbon oxide for any taxable year during the 
        period described in paragraph (3)(A) or (4)(A) of such 
        subsection, respectively, shall, at the election of the 
        taxpayer, be treated as a payment equal to such amount which is 
        made by the taxpayer against the tax imposed by chapter 1 for 
        such taxable year.
            ``(2) Form and effect of election.--An election under 
        paragraph (1) shall be made prior to the date on which 
        construction of the carbon capture equipment begins and in such 
        manner as the Secretary may prescribe. Such election, once 
        made, shall--
                    ``(A) be irrevocable with respect to such carbon 
                capture equipment for the period described in paragraph 
                (3)(A) or (4)(A) of subsection (a), and
                    ``(B) for any taxable year during such period, 
                reduce the amount of the credit which would (but for 
                this paragraph) be allowable under this section with 
                respect to such equipment for such taxable year to 
                zero.
            ``(3) Application to partnerships and s corporations.--
        Rules similar to the rules of section 45U(h)(3) shall apply for 
        purposes of this subsection.''.
            (5) Effective dates.--
                    (A) In general.--The amendments made by paragraph 
                (1) shall apply to facilities the construction of which 
                begins after the date of enactment of this Act.
                    (B) Elimination of election for applicable 
                facilities.--The amendments made by paragraph (2) shall 
                take effect on the date of enactment of this Act.
                    (C) Wage requirements.--The amendments made by 
                paragraph (3) shall apply to facilities or equipment 
                the construction of which begins after December 31, 
                2021.
                    (D) Election for direct payment.--The amendments 
                made by paragraph (4) shall apply to equipment the 
                construction of which begins after December 31, 2021.
    (d) Modification of Credits for Energy Property.--
            (1) Solar energy property.--Subclause (II) of section 
        48(a)(2)(A)(i) is amended by striking ``January 1, 2024'' and 
        inserting ``January 1, 2023''.
            (2) Phase-outs.--Section 48(a) is amended--
                    (A) in paragraph (6)--
                            (i) by striking subparagraph (A) and 
                        inserting the following:
                    ``(A) In general.--Subject to subparagraph (B), in 
                the case of any energy property described in paragraph 
                (3)(A)(i) the construction of which begins after 
                December 31, 2019, before January 1, 2023, the energy 
                percentage determined under paragraph (2) shall be 
                equal to 26 percent.'', and
                            (ii) in subparagraph (B), by striking 
                        ``January 1, 2024'' and inserting ``January 1, 
                        2023'', and
                    (B) in paragraph (7), by striking subparagraph (A) 
                and inserting the following:
                    ``(A) In general.--Subject to subparagraph (B), in 
                the case of any qualified fuel cell property, qualified 
                small wind property, waste energy recovery property, or 
                energy property described in paragraph (3)(A)(ii) the 
                construction of which begins after December 31, 2019, 
                and before January 1, 2023, the energy percentage 
                determined under paragraph (2) shall be equal to 26 
                percent.''.
            (3) Effective date.--The amendments made by this subsection 
        shall take effect on the date of enactment of this Act.
    (e) Energy Credit.--
            (1) Solar energy property.--Section 48(a)(3)(A) is 
        amended--
                    (A) in clause (i), by inserting ``but only with 
                respect to property the construction of which begins 
                before January 1, 2023,'' after ``swimming pool,'', and
                    (B) in clause (ii), by striking ``January 1, 2024'' 
                and inserting ``January 1, 2023''.
            (2) Geothermal energy property.--Section 48(a)(3)(A)(iii) 
        is amended by inserting ``with respect to property the 
        construction of which begins before January 1, 2023, and'' 
        after ``but only''.
            (3) Qualified offshore wind facilities.--Section 
        48(a)(5)(F) is amended by striking ``January 1, 2026'' each 
        place it appears and inserting ``January 1, 2023''.
            (4) Qualified fuel cell property.--Section 48(c)(1)(D) is 
        amended by striking ``January 1, 2024'' and inserting ``January 
        1, 2023''.
            (5) Qualified microturbine property.--Section 48(c)(2)(D) 
        is amended by striking ``January 1, 2024'' and inserting 
        ``January 1, 2023''.
            (6) Combined heat and power system property.--Section 
        48(c)(3)(A)(iv) is amended by striking ``January 1, 2024'' and 
        inserting ``January 1, 2023''.
            (7) Qualified small wind energy property.--Section 
        48(c)(4)(C) is amended by striking ``January 1, 2024'' and 
        inserting ``January 1, 2023''.
            (8) Waste energy recovery property.--Section 48(c)(5)(D) is 
        amended by striking ``January 1, 2024'' and inserting ``January 
        1, 2023''.
    (f) Cost Recovery for Qualified Facilities, Qualified Property, and 
Grid Improvement Property.--
            (1) In general.--Section 168(e)(3)(B) is amended--
                    (A) in clause (vi)(III), by striking ``and'' at the 
                end,
                    (B) in clause (vii), by striking the period at the 
                end and inserting ``, and'', and
                    (C) by inserting after clause (vii) the following:
                            ``(viii) any qualified facility (as defined 
                        in section 45U(b)(1)(A)), any qualified 
                        property (as defined in subsection (b)(2) of 
                        section 48D), or any grid improvement property 
                        (as defined in subsection (c)(1)(B) of such 
                        section).''.
            (2) Alternative system.--The table contained in section 
        168(g)(3)(B) is amended by inserting after the item relating to 
        subparagraph (B)(vii) the following new item:

``(B)(viii) ................................................      30''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to facilities and property placed in service after 
        December 31, 2022.

             TITLE II--INCENTIVES FOR CLEAN TRANSPORTATION

SEC. 201. CLEAN FUEL PRODUCTION CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1, 
as amended by section 101, is amended by adding at the end the 
following new section:

``SEC. 45V. CLEAN FUEL PRODUCTION CREDIT.

    ``(a) Amount of Credit.--
            ``(1) In general.--For purposes of section 38, the clean 
        fuel production credit for any taxable year is an amount equal 
        to--
                    ``(A) for any transportation fuel sold during any 
                calendar year ending before January 1, 2030, and amount 
                equal to the product of--
                            ``(i) $1.00 per gallon (or gallon 
                        equivalent) with respect to any transportation 
                        fuel which is--
                                    ``(I) produced by the taxpayer at a 
                                qualified facility, and
                                    ``(II) sold by the taxpayer in a 
                                manner described in paragraph (3), and
                            ``(ii) the emissions factor for such fuel 
                        (as determined under subsection (b)), and
                    ``(B) for any transportation fuel sold during any 
                calendar year beginning after December 31, 2029, an 
                amount equal to the applicable amount (as determined 
                under paragraph (2)) per gallon (or gallon equivalent) 
                with respect to any transportation fuel which is--
                            ``(i) produced by the taxpayer at a 
                        qualified facility, and
                            ``(ii) sold by the taxpayer in a manner 
                        described in paragraph (3).
            ``(2) Applicable amount.--For purposes of paragraph (1)(B), 
        the applicable amount with respect to any transportation fuel 
        shall be an amount equal to $1.00 increased by 10 cents for 
        every kilogram of CO<INF>2</INF>e per mmBTU (or fraction 
        thereof) for which the emissions rate for such fuel is below 
        zero.
            ``(3) Sale.--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--
                    ``(A) for use by such person in the production of a 
                fuel mixture,
                    ``(B) for use by such person in a trade or 
                business, or
                    ``(C) who sells such fuel at retail to another 
                person and places such fuel in the fuel tank of such 
                other person.
            ``(4) Rounding.--If any amount determined under paragraph 
        (1)(A) or (2) is not a multiple of 0.1 cent, such amount shall 
        be rounded to the nearest multiple of 0.1 cent.
    ``(b) Emissions Factors.--
            ``(1) Emissions factor.--
                    ``(A) Calculation.--
                            ``(i) In general.--The emissions factor of 
                        a transportation fuel shall be an amount equal 
                        to the quotient of--
                                    ``(I) an amount equal to--
                                            ``(aa) the baseline 
                                        emissions rate, minus
                                            ``(bb) the emissions rate 
                                        for such fuel, divided by
                                    ``(II) the baseline emissions rate.
                    ``(B) Baseline emissions rate.--For purposes of 
                this paragraph, the term `baseline emissions rate' 
                means--
                            ``(i) for any calendar year ending before 
                        January 1, 2026, 75 kilograms of 
                        CO<INF>2</INF>e per mmBTU,
                            ``(ii) for calendar years 2026 and 2027, 50 
                        kilograms of CO<INF>2</INF>e per mmBTU, and
                            ``(iii) for calendar years 2028 and 2029, 
                        25 kilograms of CO<INF>2</INF>e per mmBTU.
                    ``(C) Establishment of emissions rate.--The 
                Secretary, in consultation with the Administrator of 
                the Environmental Protection Agency, shall establish 
                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 (42 U.S.C. 
                7545(o)(1)(H)), as in effect on the date of the 
                enactment of this section) for such fuels, expressed as 
                kilograms of CO<INF>2</INF>e per mmBTU, which a 
                taxpayer shall use for purposes of this section.
                    ``(D) Rounding of emissions rate.--The Secretary 
                may round the emissions rates under subparagraph (B) to 
                the nearest multiple of 5 kilograms of CO<INF>2</INF>e 
                per mmBTU, except that, in the case of an emissions 
                rate that is less than 2.5 kilograms of CO<INF>2</INF>e 
                per mmBTU, the Secretary may round such rate to zero.
                    ``(E) Provisional emissions rate.--
                            ``(i) In general.--In the case of any 
                        transportation fuel for which an emissions rate 
                        has not been established by the Secretary, a 
                        taxpayer producing such fuel may file a 
                        petition with the Secretary for determination 
                        of the emissions rate with respect to such 
                        fuel.
                            ``(ii) Establishment of provisional and 
                        final emissions rate.--In the case of a 
                        transportation fuel for which a petition 
                        described in clause (i) has been filed, the 
                        Secretary, in consultation with the 
                        Administrator of the Environmental Protection 
                        Agency, shall--
                                    ``(I) not later than 12 months 
                                after the date on which the petition 
                                was filed, provide a provisional 
                                emissions rate for such fuel which a 
                                taxpayer shall use for purposes of this 
                                section, and
                                    ``(II) not later than 24 months 
                                after the date on which the petition 
                                was filed, establish the emissions rate 
                                for such fuel.
                    ``(F) Rounding.--If any amount determined under 
                subparagraph (A) is not a multiple of 0.1, such amount 
                shall be rounded to the nearest multiple of 0.1.
            ``(2) Publishing emissions rate.--The Secretary shall 
        publish a table that sets forth the emissions rate (as 
        established pursuant to paragraph (1)) for similar types and 
        categories of transportation fuels.
    ``(c) Inflation Adjustment.--
            ``(1) In general.--In the case of calendar years beginning 
        after 2023, the $1.00 amount in paragraphs (1)(A)(i) and (2) of 
        subsection (a) shall be adjusted by multiplying such amount by 
        the inflation adjustment factor for the calendar year in which 
        the sale or use 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.
            ``(2) Inflation adjustment factor.--For purposes of 
        paragraph (1), the inflation adjustment factor shall be the 
        inflation adjustment factor determined and published by the 
        Secretary pursuant to section 45U(c), determined by 
        substituting `calendar year 2022' for `calendar year 1992' in 
        paragraph (3) thereof.
    ``(d) Credit Phase-Out.--
            ``(1) In general.--If the Secretary, in consultation with 
        the Secretary of Energy and the Administrator of the 
        Environmental Protection Agency, determines that the greenhouse 
        gas emissions from the transportation of persons and goods 
        annually in the United States are equal to or less than 25 
        percent of the greenhouse gas emissions from the transportation 
        of persons and goods in the United States during calendar year 
        2021, the amount of the clean fuel production credit under this 
        section shall be determined by substituting the applicable 
        amount (as determined under paragraph (2)(A)) for the dollar 
        amount in paragraphs (1)(A)(i) and (2) of subsection (a).
            ``(2) Applicable dollar amount.--
                    ``(A) In general.--The applicable amount for any 
                taxable year described in subparagraph (B) shall be an 
                amount equal to the product of--
                            ``(i) the dollar amount in paragraphs 
                        (1)(A)(i) and (2) of subsection (a) (as 
                        adjusted by subsection (c)), multiplied by
                            ``(ii) the phase-out percentage under 
                        subparagraph (B).
                    ``(B) Phase-out percentage.--The phase-out 
                percentage under this subparagraph is equal to--
                            ``(i) for any taxable year beginning in the 
                        first calendar year following the calendar year 
                        in which the determination described in 
                        paragraph (1) is made, 100 percent,
                            ``(ii) for any taxable year beginning in 
                        the second calendar year following such 
                        determination year, 75 percent,
                            ``(iii) for any taxable year beginning in 
                        the third calendar year following such 
                        determination year, 50 percent, and
                            ``(iv) for any taxable year beginning in 
                        any calendar year subsequent to the year 
                        described in clause (iii), 0 percent.
    ``(e) Definitions.--In this section:
            ``(1) mmBTU.--The term `mmBTU' means 1,000,000 British 
        thermal units.
            ``(2) CO<INF>2</INF>e.--The term `CO<INF>2</INF>e' means, 
        with respect to any greenhouse gas, the equivalent carbon 
        dioxide (as determined based on relative global warming 
        potential).
            ``(3) Greenhouse gas.--The term `greenhouse gas' has the 
        same meaning given that term under section 211(o)(1)(G) of the 
        Clean Air Act (42 U.S.C. 7545(o)(1)(G)), as in effect on the 
        date of the enactment of this section.
            ``(4) Qualified facility.--
                    ``(A) In general.--The term `qualified facility' 
                means a facility--
                            ``(i) used for the production of 
                        transportation fuels, and
                            ``(ii) which--
                                    ``(I) satisfies the requirements 
                                under subparagraph (B), and
                                    ``(II) with respect to the 
                                construction of such facility, 
                                satisfies the requirements under 
                                section 601 of the Clean Energy for 
                                America Act.
                    ``(B) Wage requirements.--The requirements 
                described in this subparagraph with respect to any 
                facility are that the taxpayer shall ensure that any 
                laborers and mechanics employed by contractors and 
                subcontractors in--
                            ``(i) the construction of such facility, or
                            ``(ii) for any year described in subsection 
                        (a)(1) for which the credit under this section 
                        is claimed, the alteration or repair of such 
                        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 as 
                determined by the Secretary of Labor, in accordance 
                with subchapter IV of chapter 31 of title 40, United 
                States Code.
            ``(5) Transportation fuel.--The term `transportation fuel' 
        means a fuel which is suitable for use as a fuel in a highway 
        vehicle or aircraft.
    ``(f) Final Guidance.--Not later than January 1, 2023, the 
Secretary, in consultation with the Administrator of the Environmental 
Protection Agency, shall issue final guidance regarding implementation 
of this section, including calculation of emissions factors for 
transportation fuel, the table described in subsection (b)(2), and the 
determination of clean fuel production credits under this section.
    ``(g) Special Rules.--
            ``(1) Only registered production in the united states taken 
        into account.--
                    ``(A) In general.--No clean fuel production credit 
                shall be determined under subsection (a) with respect 
                to any transportation fuel unless--
                            ``(i) the taxpayer is registered as a 
                        producer of clean fuel under section 4101 at 
                        the time of production, and
                            ``(ii) such fuel is produced in the United 
                        States.
                    ``(B) United states.--For purposes of this 
                paragraph, the term `United States' includes any 
                possession of the United States.
            ``(2) Production attributable to the taxpayer.--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.
            ``(3) Related persons.--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.
            ``(4) Pass-thru in the case of estates and trusts.--Under 
        regulations prescribed by the Secretary, rules similar to the 
        rules of subsection (d) of section 52 shall apply.
            ``(5) Allocation of credit to patrons of agricultural 
        cooperative.--
                    ``(A) Election to allocate.--
                            ``(i) In general.--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.
                            ``(ii) Form and effect of election.--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).
                    ``(B) Treatment of organizations and patrons.--The 
                amount of the credit apportioned to any patrons under 
                subparagraph (A)--
                            ``(i) shall not be included in the amount 
                        determined under subsection (a) with respect to 
                        the organization for the taxable year, and
                            ``(ii) 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.
                    ``(C) Special rules for decrease in credits for 
                taxable year.--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--
                            ``(i) such reduction, over
                            ``(ii) the amount not apportioned to such 
                        patrons under subparagraph (A) for the taxable 
                        year,
                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.
                    ``(D) Eligible cooperative defined.--For purposes 
                of this section the term `eligible cooperative' 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.''.
    (b) Conforming Amendments.--
            (1) Section 38(b), as amended by section 101, is amended--
                    (A) in paragraph (33), by striking ``plus'' at the 
                end,
                    (B) in paragraph (34), by striking the period at 
                the end and inserting ``, plus'', and
                    (C) by adding at the end the following new 
                paragraph:
            ``(35) the clean fuel production credit determined under 
        section 45V(a).''.
            (2) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1, as amended by section 101, is 
        amended by adding at the end the following new item:

``Sec. 45V. Clean fuel production credit.''.
            (3) Section 4101(a)(1) is amended by inserting ``every 
        person producing a fuel eligible for the clean fuel production 
        credit (pursuant to section 45V),'' after ``section 
        6426(b)(4)(A)),''.
    (c) Effective Date.--The amendments made by this section shall 
apply to transportation fuel produced after December 31, 2022.

SEC. 202. TRANSPORTATION ELECTRIFICATION.

    (a) Alternative Motor Vehicle Credit for Fuel Cell Motor 
Vehicles.--
            (1) In general.--Section 30B(k) is amended--
                    (A) by striking paragraph (1), and
                    (B) by redesignating paragraphs (2) through (4) as 
                paragraphs (1) through (3), respectively.
            (2) Phase-out.--Section 30B is amended by adding at the end 
        the following:
    ``(l) Credit Phase-Out for New Qualified Fuel Cell Motor 
Vehicles.--
            ``(1) In general.--Following a determination by the 
        Secretary, in consultation with the Secretary of 
        Transportation, that total annual sales of new qualified fuel 
        cell motor vehicles and new qualified plug-in electric drive 
        motor vehicles (as defined in section 30D(d)(1)) in the United 
        States are greater than 50 percent of total annual sales of new 
        passenger vehicles in the United States, the amount of the new 
        qualified fuel cell motor vehicle credit under this section for 
        any new qualified fuel cell motor vehicle purchased during a 
        calendar year described in paragraph (2) shall be equal to the 
        product of--
                    ``(A) the amount of the credit determined under 
                subsection (b) without regard to this subsection, 
                multiplied by
                    ``(B) the phase-out percentage under paragraph (2).
            ``(2) Phase-out percentage.--The phase-out percentage under 
        this paragraph is equal to--
                    ``(A) for a vehicle purchased during the first 
                calendar year following the calendar year in which the 
                determination described in paragraph (1) is made, 100 
                percent,
                    ``(B) for a vehicle purchased during the second 
                calendar year following such determination year, 75 
                percent,
                    ``(C) for a vehicle purchased during the third 
                calendar year following such determination year, 50 
                percent, and
                    ``(D) for a vehicle purchased during any calendar 
                year subsequent to the year described in subparagraph 
                (C), 0 percent.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to property purchased after December 31, 2021.
    (b) Alternative Fuel Vehicle Refueling Property Credit.--
            (1) Extension and modification.--
                    (A) In general.--Section 30C is amended--
                            (i) in subsection (b)--
                                    (I) by striking ``with respect to 
                                all qualified alternative fuel vehicle 
                                refueling property placed in service by 
                                the taxpayer during the taxable year at 
                                a location'' and inserting ``with 
                                respect to any single item of qualified 
                                alternative fuel vehicle refueling 
                                property placed in service by the 
                                taxpayer during the taxable year'', and
                                    (II) in paragraph (1), by striking 
                                ``$30,000'' and inserting ``$200,000'',
                            (ii) in subsection (e), by adding at the 
                        end the following:
            ``(7) Wage requirements.--
                    ``(A) In general.--The term `qualified alternative 
                fuel vehicle refueling property' shall not include any 
                property which fails to satisfy--
                            ``(i) the requirements under subparagraph 
                        (B), and
                            ``(ii) with respect to the construction of 
                        such property, the requirements under section 
                        601 of the Clean Energy for America Act.
                    ``(B) Requirements.--The requirements described in 
                this subparagraph with respect to any property are that 
                the taxpayer shall ensure that any laborers and 
                mechanics employed by contractors and subcontractors in 
                the construction of such property are to be paid wages 
                at rates not less than the prevailing rates for 
                construction of a similar character in the locality as 
                determined by the Secretary of Labor, in accordance 
                with subchapter IV of chapter 31 of title 40, United 
                States Code.'', and
                            (iii) in subsection (g), by striking 
                        ``December 31, 2021'' and inserting ``December 
                        31, 2022''.
                    (B) Effective date.--The amendments made by this 
                paragraph shall apply to property placed in service 
                after December 31, 2021.
            (2) Additional modification.--
                    (A) In general.--Section 30C, as amended by 
                paragraph (1), is amended--
                            (i) in subsection (c)(2)--
                                    (I) in subparagraph (A), by 
                                striking ``one or more'' and all that 
                                follows through the period and 
                                inserting the following: ``hydrogen or 
                                any transportation fuel for which the 
                                clean fuel production credit is allowed 
                                under section 45V with respect to the 
                                production and sale of such fuel.'', 
                                and
                                    (II) by striking subparagraph (B) 
                                and inserting the following:
                    ``(B) Any mixture--
                            ``(i) which consists of--
                                    ``(I) any transportation fuel--
                                            ``(aa) for which the clean 
                                        fuel production credit is 
                                        allowed under section 45V with 
                                        respect to the production and 
                                        sale of such fuel, and
                                            ``(bb) which is a liquid 
                                        fuel, and
                                    ``(II) any taxable fuel (as defined 
                                in section 4083(a)(1)), and
                            ``(ii) at least 20 percent of the volume of 
                        which consists of fuel described in clause 
                        (i)(I).'', and
                            (ii) by striking subsection (g) and 
                        inserting the following:
    ``(g) Credit Phase-Out.--
            ``(1) In general.--Following a determination by the 
        Secretary under section 45V(d)(1) that the greenhouse gas 
        emissions from the transportation of persons and goods annually 
        in the United States are equal to or less than 25 percent of 
        the greenhouse gas emissions from the transportation of persons 
        and goods in the United States during calendar year 2021, the 
        amount of the credit under this section for any qualified 
        alternative fuel vehicle refueling property placed in service 
        during a calendar year described in paragraph (2) shall be 
        equal to the product of--
                    ``(A) the amount of the credit allowed under 
                subsection (a) (as determined without regard to this 
                subsection), multiplied by
                    ``(B) the phase-out percentage under paragraph (2).
            ``(2) Phase-out percentage.--The phase-out percentage under 
        this paragraph is equal to--
                    ``(A) for any property placed in service during the 
                first calendar year following the calendar year in 
                which the determination described in paragraph (1) is 
                made, 100 percent,
                    ``(B) for any property placed in service during the 
                second calendar year following such determination year, 
                75 percent,
                    ``(C) for any property placed in service during the 
                third calendar year following such determination year, 
                50 percent, and
                    ``(D) for any property placed in service during any 
                calendar year subsequent to the year described in 
                subparagraph (C), 0 percent.''.
    (c) Electric Vehicles.--
            (1) 2- and 3-wheeled plug-in electric vehicles.--
                    (A) In general.--Section 30D(g)(3)(E) is amended by 
                striking clause (ii) and inserting the following:
                            ``(ii) after December 31, 2014.''.
                    (B) Effective date.--The amendments made by this 
                paragraph shall apply to vehicles acquired after 
                December 31, 2020.
            (2) Elimination on limitation on number of vehicles 
        eligible for credit.--
                    (A) In general.--Section 30D is amended by striking 
                subsection (e).
                    (B) Effective date.--The amendment made by this 
                paragraph shall apply to vehicles sold after the date 
                of the enactment of this Act.
            (3) Making new qualified plug-in electric drive motor 
        vehicle credit refundable for individuals.--
                    (A) In general.--The Internal Revenue Code of 1986 
                is amended--
                            (i) by redesignating section 30D as section 
                        36C, and
                            (ii) by moving section 36C (as so 
                        redesignated) from subpart A of part IV of 
                        subchapter A of chapter 1 to the location 
                        immediately before section 37 in subpart C of 
                        part IV of subchapter A of chapter 1.
                    (B) Conforming amendments.--
                            (i) Section 36C, as amended by paragraph 
                        (2) and as redesignated and moved by 
                        subparagraph (A), is amended--
                                    (I) in subsection (a), by striking 
                                ``There shall be allowed'' and 
                                inserting ``In the case of an 
                                individual, there shall be allowed'',
                                    (II) by striking subsection (c),
                                    (III) by redesignating subsections 
                                (d), (f), and (g) as subsections (c), 
                                (d), and (e), respectively,
                                    (IV) in subsection (d), as so 
                                redesignated--
                                            (aa) by striking 
                                        ``(determined without regard to 
                                        subsection (c))'' each place it 
                                        appears, and
                                            (bb) by striking paragraph 
                                        (3), and
                                    (V) in subsection (e)(3)(B), as so 
                                redesignated, by striking ``subsection 
                                (d)(1)'' and inserting ``subsection 
                                (c)(1)''.
                            (ii) Subsection (l)(1) of section 30B, as 
                        added by subsection (a)(2), is amended by 
                        striking ``section 30D(d)(1)'' and inserting 
                        ``section 36C(c)(1)''.
                            (iii) Paragraph (37) of section 1016(a) is 
                        amended by striking ``section 30D(f)(1)'' and 
                        inserting ``section 36C(d)(1)''.
                            (iv) Section 6501(m) is amended by striking 
                        ``30D(e)(4)'' and inserting ``36C(d)(6)''.
                            (v) Section 166(b)(5)(A)(ii) of title 23, 
                        United States Code, is amended by striking 
                        ``section 30D(d)(1)'' and inserting ``section 
                        36C(c)(1)''.
                            (vi) The table of sections for subpart C of 
                        part IV of subchapter A of chapter 1 is amended 
                        by inserting after the item relating to section 
                        36B the following new item:

``Sec. 36C. New qualified plug-in electric drive motor vehicles.''.
                    (C) Effective date.--The amendments made by this 
                paragraph shall apply to vehicles acquired after 
                December 31, 2021.
            (4) VIN requirement.--
                    (A) In general.--Section 36C(c)(1), as redesignated 
                and moved by paragraph (3), is amended--
                            (i) in subparagraph (E), by striking 
                        ``and'' at the end,
                            (ii) in subparagraph (F)(ii), by striking 
                        the period at the end and inserting ``, and'', 
                        and
                            (iii) by adding at the end the following:
                    ``(G) for which the taxpayer has provided the 
                vehicle identification number on the return of tax for 
                the taxable year.''.
                    (B) Mathematical or clerical error.--Section 
                6213(g)(2) is amended--
                            (i) in subparagraph (P), by striking 
                        ``and'' at the end,
                            (ii) in subparagraph (Q), by striking the 
                        period at the end and inserting ``, and'', and
                            (iii) by adding at the end the following:
                    ``(R) an omission of a correct vehicle 
                identification number required under section 
                36C(c)(1)(G) (relating to credit for new qualified 
                plug-in electric drive motor vehicles) to be included 
                on a return.''.
                    (C) Effective date.--The amendments made by this 
                paragraph shall apply to vehicles acquired after 
                December 31, 2021.
            (5) Phase-out.--Section 36C, as redesignated, moved, and 
        amended by the preceding paragraphs of this subsection, is 
        amended by adding at the end the following:
    ``(f) Credit Phase-Out.--
            ``(1) In general.--Following a determination by the 
        Secretary, in consultation with the Secretary of 
        Transportation, that total annual sales of new qualified fuel 
        cell motor vehicles (as defined in section 30B(b)(3)) and new 
        qualified plug-in electric drive motor vehicles in the United 
        States are greater than 50 percent of total annual sales of new 
        passenger vehicles in the United States, the amount of the 
        credit allowed under this section for any new qualified plug-in 
        electric drive motor vehicle sold or qualified 2- or 3-wheeled 
        plug-in electric vehicle acquired during a calendar year 
        described in paragraph (2) shall be equal to the product of--
                    ``(A) the amount of the credit determined under 
                subsection (a) without regard to this subsection, 
                multiplied by
                    ``(B) the phase-out percentage under paragraph (2).
            ``(2) Phase-out percentage.--The phase-out percentage under 
        this paragraph is equal to--
                    ``(A) for a vehicle sold or acquired during the 
                first calendar year following the calendar year in 
                which the determination described in paragraph (1) is 
                made, 100 percent,
                    ``(B) for a vehicle sold or acquired during the 
                second calendar year following such determination year, 
                75 percent,
                    ``(C) for a vehicle sold or acquired during the 
                third calendar year following such determination year, 
                50 percent, and
                    ``(D) for a vehicle sold or acquired during any 
                calendar year subsequent to the year described in 
                subparagraph (C), 0 percent.''.
            (6) Qualified commercial electric vehicles.--
                    (A) In general.--Subpart D of part IV of subchapter 
                A of chapter 1, as amended by sections 101 and 201, is 
                amended by adding at the end the following new section:

``SEC. 45W. CREDIT FOR QUALIFIED COMMERCIAL ELECTRIC VEHICLES.

    ``(a) In General.--For purposes of section 38, the qualified 
commercial electric 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 electric vehicle placed in 
service by the taxpayer during the taxable year.
    ``(b) Per Vehicle Amount.--
            ``(1) In general.--The amount determined under this 
        subsection with respect to any qualified commercial electric 
        vehicle shall be equal the lesser of--
                    ``(A) 30 percent of the basis of such vehicle, or
                    ``(B) the incremental cost of such vehicle.
            ``(2) Incremental cost.--
                    ``(A) In general.--For purposes of paragraph 
                (1)(B), the incremental cost of any qualified 
                commercial electric vehicle is an amount equal to the 
                excess of the manufacturer's suggested retail price for 
                such vehicle over such price for a comparable vehicle.
                    ``(B) Comparable vehicle.--For purposes of this 
                paragraph, the term `comparable vehicle' means, with 
                respect to any qualified commercial electric vehicle, 
                any vehicle which is powered solely by a gasoline or 
                diesel internal combustion engine and which is 
                comparable in weight, size, and use to such vehicle.
    ``(c) Qualified Commercial Electric Vehicle.--For purposes of this 
section, the term `qualified commercial electric vehicle' means any 
vehicle which--
            ``(1) meets the requirements of subparagraphs (A), (B), 
        (C), (D), and (G) of section 36C(c)(1),
            ``(2) is primarily propelled by an electric motor which 
        draws electricity from a battery which--
                    ``(A) has a capacity of not less than 10 kilowatt 
                hours, and
                    ``(B) is capable of being recharged from an 
                external source of electricity, and
            ``(3) is of a character subject to the allowance for 
        depreciation.
    ``(d) Special Rules.--
            ``(1) In general.--Rules similar to the rules under 
        subsections (d) of section 36C shall apply for purposes of this 
        section.
            ``(2) Property used by tax-exempt entity.--In the case of a 
        vehicle the use of which is described in paragraph (3) or (4) 
        of section 50(b) and which is not subject to a lease, the 
        person who sold such vehicle to the person or entity using such 
        vehicle shall be treated as the taxpayer that placed such 
        vehicle in service, but only if such person clearly discloses 
        to such person or entity in a document the amount of any credit 
        allowable under subsection (a) with respect to such vehicle.
    ``(e) Credit Phase-Out.--
            ``(1) In general.--Following a determination by the 
        Secretary, in consultation with the Secretary of 
        Transportation, that total annual sales of qualified commercial 
        electric vehicles in the United States are greater than 50 
        percent of total annual sales of new commercial vehicles in the 
        United States, the amount of the credit allowed under this 
        section for any qualified commercial electric vehicle acquired 
        during a calendar year described in paragraph (2) shall be 
        equal to the product of--
                    ``(A) the amount of the credit determined under 
                subsection (a) without regard to this subsection, 
                multiplied by
                    ``(B) the phase-out percentage under paragraph (2).
            ``(2) Phase-out percentage.--The phase-out percentage under 
        this paragraph is equal to--
                    ``(A) for a vehicle acquired during the first 
                calendar year following the calendar year in which the 
                determination described in paragraph (1) is made, 100 
                percent,
                    ``(B) for a vehicle acquired during the second 
                calendar year following such determination year, 75 
                percent,
                    ``(C) for a vehicle acquired during the third 
                calendar year following such determination year, 50 
                percent, and
                    ``(D) for a vehicle acquired during any calendar 
                year subsequent to the year described in subparagraph 
                (C), 0 percent.''.
                    (B) Conforming amendments.--
                            (i) Section 38(b) is amended by striking 
                        paragraph (30) and inserting the following:
            ``(30) the qualified commercial electric vehicle credit 
        determined under section 45W,''.
                            (ii) The table of sections for subpart D of 
                        part IV of subchapter A of chapter 1, as 
                        amended by sections 101 and 102, is amended by 
                        adding at the end the following new item:

``Sec. 45W. Credit for qualified commercial electric vehicles.''.
                    (C) Effective date.--The amendments made by this 
                paragraph shall apply to vehicles acquired after 
                December 31, 2021.

SEC. 203. TEMPORARY EXTENSIONS OF EXISTING FUEL INCENTIVES.

    (a) Second Generation Biofuel Producer Credit.--
            (1) In general.--Section 40(b)(6)(J)(i) is amended by 
        striking ``2022'' and inserting ``2023''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to qualified second generation biofuel production 
        after December 31, 2021.
    (b) Credit for Alternative Fuel Mixtures.--
            (1) In general.--Section 6426 is amended--
                    (A) in subsection (d)--
                            (i) in paragraph (2)(D), by striking 
                        ``liquefied'', and
                            (ii) in paragraph (5), by striking ``2021'' 
                        and inserting ``2022'', and
                    (B) in subsection (e)--
                            (i) in paragraph (2), by inserting 
                        ``nonliquid hydrogen or'' before ``a fuel 
                        described'', and
                            (ii) in paragraph (3), by striking ``2021'' 
                        and inserting ``2022''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to fuel sold or used after December 31, 2021.
    (c) Biodiesel, Biodiesel Mixtures, and Alternative Fuels.--
            (1) In general.--Section 6427(e)(6)(C) is amended by 
        striking ``2021'' and inserting ``2022''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to fuel sold or used after December 31, 2021.

              TITLE III--INCENTIVES FOR ENERGY EFFICIENCY

SEC. 301. CREDIT FOR NEW ENERGY EFFICIENT RESIDENTIAL BUILDINGS.

    (a) In General.--Section 45L is amended to read as follows:

``SEC. 45L. NEW ENERGY EFFICIENT HOME CREDIT.

    ``(a) Allowance of Credit.--For purposes of section 38, in the case 
of an eligible contractor, the new energy efficient home credit for the 
taxable year is the applicable amount for each qualified residence 
which is--
            ``(1) constructed by the eligible contractor, and
            ``(2) acquired by a person from such eligible contractor 
        for use as a residence during the taxable year.
    ``(b) Applicable Amount.--
            ``(1) In general.--For purposes of subsection (a), the 
        applicable amount shall be an amount equal to--
                    ``(A) in the case of a qualified residence 
                described in subclause (I) of subsection 
                (c)(3)(A)(iii), $2,500, and
                    ``(B) in the case of a qualified residence 
                described in subclause (II) of such subsection, $5,000.
            ``(2) Adjustment for inflation.--
                    ``(A) In general.--In the case of a taxable year 
                beginning after 2022, the dollar amounts in paragraph 
                (1) shall each be increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year, determined by substituting 
                        `calendar year 2021' for `calendar year 2016' 
                        in subparagraph (A)(ii) thereof.
                    ``(B) Rounding.--If any amount as increased under 
                subparagraph (A) is not a multiple of $100, such amount 
                shall be rounded to the nearest multiple of $100.
    ``(c) Definitions.--For purposes of this section:
            ``(1) Construction.--The term `construction' does not 
        include substantial reconstruction or rehabilitation.
            ``(2) Eligible contractor.--The term `eligible contractor' 
        means--
                    ``(A) the person who constructed the qualified 
                residence, or
                    ``(B) in the case of a qualified residence which is 
                a manufactured home, the manufactured home producer of 
                such residence.
            ``(3) Qualified residence.--
                    ``(A) In general.--The term `qualified residence' 
                means a dwelling unit--
                            ``(i) located in the United States,
                            ``(ii) the construction of which is 
                        substantially completed after the date of the 
                        enactment of this section,
                            ``(iii) which is certified as satisfying 
                        the requirements for new residential 
                        construction under--
                                    ``(I) the Energy Star program (or 
                                any successor program, as determined by 
                                the Secretary), as in effect on January 
                                1 of the year in which construction of 
                                the dwelling unit begins, or
                                    ``(II) the Zero Energy Ready Home 
                                program (or any successor program, as 
                                determined by the Secretary), as in 
                                effect on January 1 of the year in 
                                which construction of the dwelling unit 
                                begins, and
                            ``(iv) which satisfies the requirements 
                        under subparagraph (B).
                    ``(B) Wage requirements.--The requirements 
                described in this subparagraph with respect to any 
                dwelling unit are that the eligible contractor shall 
                ensure that any laborers and mechanics employed by such 
                contractor and subcontractors in the construction of 
                such dwelling unit shall be paid wages at rates not 
                less than the prevailing rates for construction of a 
                similar character in the locality as determined by the 
                Secretary of Labor, in accordance with subchapter IV of 
                chapter 31 of title 40, United States Code.
    ``(d) Certification.--A certification described in this section 
shall be made--
            ``(1) by a third party which is accredited by a 
        certification program approved by the Secretary, in 
        consultation with the Secretary of Energy, and
            ``(2) in accordance with--
                    ``(A) any applicable rules under the Energy Star or 
                Zero Energy Ready Home programs, as in effect on the 
                date on which construction of the dwelling unit begins, 
                and
                    ``(B) guidance prescribed by the Secretary, in 
                consultation with the Secretary of Energy.
    ``(e) Basis Adjustment.--For purposes of this subtitle, if a credit 
is allowed under this section in connection with any expenditure for 
any property (other than a qualified low-income building, as described 
in section 42(c)(2)), the increase in the basis of such property which 
would (but for this subsection) result from such expenditure shall be 
reduced by the amount of the credit so determined.
    ``(f) Coordination With Investment Credits.--For purposes of this 
section, expenditures taken into account under section 25D or 47 shall 
not be taken into account under this section.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to any qualified residence acquired after December 31, 2021.

SEC. 302. ENERGY EFFICIENT HOME IMPROVEMENT CREDIT.

    (a) In General.--Section 25C is amended to read as follows:

``SEC. 25C. ENERGY EFFICIENT HOME IMPROVEMENT CREDIT.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a credit against the tax imposed by this chapter for the 
taxable year an amount equal to the lesser of--
            ``(1) the sum of the applicable qualified property amounts 
        for any qualified property placed in service by the individual 
        during such taxable year, or
            ``(2) $1,500.
    ``(b) Applicable Qualified Property Amount.--
            ``(1) In general.--For any qualified property, the 
        applicable qualified property amount shall be equal to the 
        lesser of--
                    ``(A) 30 percent of the amount paid or incurred by 
                the individual for such qualified property (including 
                any expenditures for labor costs properly allocable to 
                the onsite preparation, assembly, or original 
                installation of such property), or
                    ``(B) $600.
            ``(2) Adjustment for inflation.--
                    ``(A) In general.--In the case of a taxable year 
                beginning after 2022, the dollar amount in paragraph 
                (1)(B) shall be increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year, determined by substituting 
                        `calendar year 2021' for `calendar year 2016' 
                        in subparagraph (A)(ii) thereof.
                    ``(B) Rounding.--If any amount as increased under 
                subparagraph (A) is not a multiple of $10, such amount 
                shall be rounded to the nearest multiple of $10.
    ``(c) Qualified Property.--
            ``(1) In general.--The term `qualified property' means a 
        furnace, boiler, condensing water heater, central air 
        conditioning unit, heat pump, biomass property, or building 
        envelope improvement which--
                    ``(A) except in the case of a building envelope 
                improvement, meets or exceeds the requirements of the 
                highest efficiency tier (not including any advanced 
                tier) established by the Consortium for Energy 
                Efficiency which are in effect at the time that the 
                property is placed in service,
                    ``(B) is installed according to applicable Air 
                Conditioning Contractors of America Quality 
                Installation standards which are in effect at the time 
                that the property was placed in service,
                    ``(C) is for use in a dwelling unit which is 
                located in the United States and used as a residence by 
                the individual, and
                    ``(D) is reasonably expected to remain in service 
                in such dwelling unit for not less than 5 years.
            ``(2) Special rules for certain heat pumps.--
                    ``(A) Air-source heat pumps.--In the case of any 
                air-source heat pump which satisfies the requirements 
                under paragraph (1), subsection (b)(1)(B) shall be 
                applied by substituting `$800' for `$600'.
                    ``(B) Ground source heat pump.--
                            ``(i) In general.--In the case of any 
                        qualified geothermal heat pump property which 
                        satisfies the requirements under subparagraphs 
                        (B) through (D) of paragraph (1)--
                                    ``(I) subsection (b)(1)(B) shall be 
                                applied by substituting `$10,000' for 
                                `$600', and
                                    ``(II) subsection (a)(2) shall not 
                                apply.
                            ``(ii) Qualified geothermal heat pump 
                        property.--For purposes of this subparagraph, 
                        the term `qualified geothermal heat pump 
                        property' means any equipment which--
                                    ``(I) uses the ground or ground 
                                water as a thermal energy source to 
                                heat a dwelling unit located in the 
                                United States and used as a residence 
                                by the taxpayer or as a thermal energy 
                                sink to cool such dwelling unit, and
                                    ``(II) meets the requirements of 
                                the Energy Star program which are in 
                                effect at the time that the expenditure 
                                for such equipment is made.
            ``(3) Special rule for insulation.--In the case of any 
        building envelope improvement described in subsection (d)(2)(A) 
        which satisfies the requirements under paragraph (1), 
        subsection (b)(1)(B) shall not apply.
    ``(d) Other Definitions.--
            ``(1) Biomass property.--
                    ``(A) In general.--For purposes of this section, 
                the term `biomass property' means any property which--
                            ``(i) uses the burning of biomass fuel to 
                        heat a dwelling unit or to heat water for use 
                        in a dwelling unit, and
                            ``(ii) using the higher heating value, has 
                        a thermal efficiency of not less than 75 
                        percent.
                    ``(B) Biomass fuel.--For purposes of subparagraph 
                (A), the term `biomass fuel' means any plant-derived 
                fuel which is available on a renewable or recurring 
                basis, including any such fuel which has been subject 
                to a densification process (such as wood pellets).
            ``(2) Building envelope improvement.--For purposes of this 
        section, the term `building envelope improvement' means--
                    ``(A) any insulation material or system which--
                            ``(i) is specifically and primarily 
                        designed to reduce the heat loss or gain of a 
                        dwelling unit when installed in or on such 
                        dwelling unit, and
                            ``(ii) meets the prescriptive criteria for 
                        such material or system established by the 
                        International Energy Conservation Code, as such 
                        Code (including supplements) is in effect on 
                        January 1 of the calendar year in which such 
                        material or system is installed, and
                    ``(B) exterior doors and windows (including 
                skylights) which received the most efficient 
                certification under applicable Energy Star program 
                requirements which are in effect on January 1 of the 
                calendar year in which the property is placed in 
                service.
            ``(3) Manufactured homes included.--For purposes of this 
        section, the term `dwelling unit' includes a manufactured home 
        which conforms to Federal Manufactured Home Construction and 
        Safety Standards (part 3280 of title 24, Code of Federal 
        Regulations).
    ``(e) Denial of Double Benefit.--No credit shall be allowed under 
subsection (a) for any amounts paid or incurred for which a deduction 
or credit is allowed under any other provision of this chapter.''.
    (b) Clerical Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 is amended by striking the item 
relating to section 25C and inserting after the item relating to 
section 25B the following item:

``25C. Energy efficient home improvement credit.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to qualified property placed in service after December 31, 2021.

SEC. 303. ENHANCEMENT OF ENERGY EFFICIENT COMMERCIAL BUILDINGS 
              DEDUCTION.

    (a) In General.--Section 179D is amended--
            (1) by striking subsection (b) and inserting the following:
    ``(b) Maximum Amount of Deduction.--
            ``(1) In general.--The deduction under subsection (a) with 
        respect to any building for any taxable year shall not exceed 
        the excess (if any) of--
                    ``(A) the product of--
                            ``(i) the applicable dollar value, and
                            ``(ii) the square footage of the building, 
                        over
                    ``(B) the aggregate amount of the deductions under 
                subsection (a) with respect to the building for all 
                prior taxable years.
            ``(2) Applicable dollar value.--For purposes of paragraph 
        (1)(A)(i), the applicable dollar value shall be an amount equal 
        to $2.50 increased (but not above $5.00) by $0.10 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.'',
            (2) in subsection (c)(1)--
                    (A) in subparagraph (C)(iii), by striking ``and'' 
                at the end,
                    (B) in subparagraph (D)--
                            (i) by striking ``50 percent'' and 
                        inserting ``25 percent'', and
                            (ii) by striking the period at the end and 
                        inserting ``, and'', and
                    (C) by adding at the end the following:
                    ``(E) which satisfies the requirements--
                            ``(i) under subsection (d)(7), and
                            ``(ii) with respect to the construction of 
                        such property, the requirements under section 
                        601 of the Clean Energy for America Act.'',
            (3) in subsection (d)--
                    (A) by striking paragraph (1),
                    (B) by striking paragraph (4) and inserting the 
                following:
            ``(4) Allocation of deduction.--
                    ``(A) In general.--In the case of energy efficient 
                commercial building property installed on or in 
                property owned by an eligible entity, the Secretary 
                shall promulgate regulations to allow the allocation of 
                the deduction to the person primarily responsible for 
                designing the property in lieu of the owner of such 
                property, with such person to be treated as the 
                taxpayer for purposes of this section.
                    ``(B) Eligible entity.--For purposes of this 
                paragraph, the term `eligible entity' means--
                            ``(i) a Federal, State, or local government 
                        or a political subdivision thereof,
                            ``(ii) an Indian tribe (as defined in 
                        section 45A(c)(6)), or
                            ``(iii) an organization described in 
                        section 501(c) and exempt from tax under 
                        section 501(a).'', and
                    (C) by adding at the end the following:
            ``(7) Wage requirements.--The requirements described in 
        this paragraph with respect to any property are that the 
        taxpayer shall ensure that any laborers and mechanics employed 
        by contractors and subcontractors in the construction of such 
        property shall be paid wages at rates not less than the 
        prevailing rates for construction of a similar character in the 
        locality as determined by the Secretary of Labor, in accordance 
        with subchapter IV of chapter 31 of title 40, United States 
        Code.'',
            (4) by striking subsection (f), and
            (5) in subsection (g)--
                    (A) by striking ``2020, each dollar amount in 
                subsection (b) or subsection (d)(1)(A)'' and inserting 
                ``2022, each dollar amount in subsection (b)(2)'',
                    (B) in paragraph (2), by striking ``2019'' and 
                inserting ``2021'', and
                    (C) in the flush matter at the end, by striking ``a 
                multiple of 1 cent shall be rounded to the nearest 
                cent'' and inserting ``a multiple of 10 cents shall be 
                rounded to the nearest multiple of 10 cents''.
    (b) Conforming Amendments.--Section 179D, as amended by subsection 
(a), is amended--
            (1) in subsection (c)(1)(D)--
                    (A) by striking ``subsection (d)(6)'' and inserting 
                ``subsection (d)(5)'', and
                    (B) by striking ``subsection (d)(2)'' and inserting 
                ``subsection (d)(1)'',
            (2) in subsection (d)--
                    (A) by redesignating paragraphs (2) through (6) as 
                paragraphs (1) through (5), respectively,
                    (B) in paragraph (2), as so redesignated, by 
                striking ``paragraph (2)'' and inserting ``paragraph 
                (1)'', and
                    (C) in paragraph (4), as so redesignated, by 
                striking ``paragraph (3)(B)(iii)'' and inserting 
                ``paragraph (2)(B)(iii)'',
            (3) by redesignating subsections (g) and (h) as subsections 
        (f) and (g), respectively, and
            (4) in subsection (g)(2), as so redesignated, by striking 
        ``or (d)(1)(A)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to any property placed in service after December 31, 2021.

SEC. 304. ENHANCEMENT OF ENERGY CREDIT FOR GEOTHERMAL HEAT PUMPS.

    (a) In General.--Section 48(a) is amended--
            (1) in paragraph (2)(A)(i)(III), by striking ``paragraph 
        (3)(A)(ii)'' and inserting ``clause (ii) or (vii) of paragraph 
        (3)(A)'', and
            (2) in paragraph (3)(A)(vii), by striking ``but only with 
        respect to property the construction of which begins before 
        January 1, 2024,''.
    (b) Effective Date.--The amendments made by this section shall 
apply to property the construction of which begins after December 31, 
2021.

               TITLE IV--CLEAN ELECTRICITY AND FUEL BONDS

SEC. 401. CLEAN ENERGY BONDS.

    (a) In General.--Part IV of subchapter A of chapter 1 is amended by 
inserting after subpart G the following new subpart:

                    ``Subpart H--Clean Energy Bonds

``Sec. 54. Clean energy bonds.

``SEC. 54. CLEAN ENERGY BONDS.

    ``(a) In General.--If a taxpayer holds a clean energy bond on one 
or more interest payment dates of the bond during any taxable year, 
there shall be allowed as a credit against the tax imposed by this 
chapter for the taxable year an amount equal to the sum of the credits 
determined under subsection (b) with respect to such dates.
    ``(b) Amount of Credit.--
            ``(1) In general.--The amount of the credit determined 
        under this subsection with respect to any interest payment date 
        for a clean energy bond is the applicable percentage (as 
        determined under paragraph (2)) of the amount of interest 
        payable by the issuer with respect to such date.
            ``(2) Applicable percentage.--
                    ``(A) In general.--
                            ``(i) Maximum percentage.--Except as 
                        provided in clause (ii), the applicable 
                        percentage is 70 percent.
                            ``(ii) Reduction of credit based on 
                        greenhouse gas emission rate.--In the case of a 
                        qualified facility described in subsection 
                        (e)(4) of section 45V, the applicable 
                        percentage shall be reduced (but not below 
                        zero) by an amount which bears the same ratio 
                        to the percentage in effect under clause (i) as 
                        the anticipated average emissions rate for all 
                        transportation fuel produced by such facility 
                        bears to the baseline emissions rate (as 
                        determined under subsection (b)(1)(B) of such 
                        section).
                    ``(B) Rounding.--If any applicable percentage 
                determined under subparagraph (A) is not a whole 
                percentage point, such percentage shall be rounded to 
                the nearest whole percentage point.
                    ``(C) Published emissions rules.--Rules similar to 
                the rules of section 45V(b) shall apply for purposes of 
                this section.
    ``(c) Limitation Based on Amount of Tax.--
            ``(1) In general.--The credit allowed under subsection (a) 
        for any taxable year shall not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowable under this 
                part (other than subpart C and this subpart).
            ``(2) Carryover of unused credit.--If the credit allowable 
        under subsection (a) exceeds the limitation imposed by 
        paragraph (1) for such taxable year, such excess shall be 
        carried to the succeeding taxable year and added to the credit 
        allowable under subsection (a) for such taxable year 
        (determined before the application of paragraph (1) for such 
        succeeding taxable year).
    ``(d) Clean Energy Bond.--
            ``(1) In general.--For purposes of this section, the term 
        `clean energy bond' means any bond issued as part of an issue 
        if--
                    ``(A) 100 percent of the excess of the available 
                project proceeds of such issue over the amounts in a 
                reasonably required reserve (within the meaning of 
                section 150(a)(3)) with respect to such issue are to be 
                used for capital expenditures incurred by an entity 
                described in subparagraph (B) for--
                            ``(i) 1 or more qualified facilities, or
                            ``(ii) grid improvement property (as 
                        defined in section 48D(c)(1)(B)),
                    ``(B) the bond is issued by--
                            ``(i) a governmental body,
                            ``(ii) a public power provider, or
                            ``(iii) a cooperative electric company, and
                    ``(C) the issuer makes an irrevocable election to 
                have this section apply.
            ``(2) Applicable rules.--For purposes of applying paragraph 
        (1)--
                    ``(A) for purposes of section 149(b), a clean 
                energy bond shall not be treated as federally 
                guaranteed by reason of the credit allowed under 
                subsection (a) or section 6431,
                    ``(B) for purposes of section 148, the yield on a 
                clean energy bond shall be determined without regard to 
                the credit allowed under subsection (a), and
                    ``(C) a bond shall not be treated as a clean energy 
                bond if the issue price has more than a de minimis 
                amount (determined under rules similar to the rules of 
                section 1273(a)(3)) of premium over the stated 
                principal amount of the bond.
    ``(e) Definitions.--In this section:
            ``(1) Available project proceeds.--The term `available 
        project proceeds' means--
                    ``(A) the excess of--
                            ``(i) the proceeds from the sale of an 
                        issue, over
                            ``(ii) the issuance costs financed by the 
                        issue (to the extent that such costs do not 
                        exceed 2 percent of such proceeds), and
                    ``(B) the proceeds from any investment of the 
                excess described in subparagraph (A).
            ``(2) Cooperative electric company.--The term `cooperative 
        electric company' means a mutual or cooperative electric 
        company described in section 501(c)(12) or section 
        1381(a)(2)(C).
            ``(3) Governmental body.--The term `governmental body' 
        means any State or Indian tribal government, or any political 
        subdivision thereof.
            ``(4) Interest payment date.--The term `interest payment 
        date' means any date on which the holder of record of the clean 
        energy bond is entitled to a payment of interest under such 
        bond.
            ``(5) Public power provider.--The term `public power 
        provider' means a State utility with a service obligation, as 
        such terms are defined in section 217 of the Federal Power Act 
        (as in effect on the date of the enactment of this paragraph).
            ``(6) Qualified facility.--The term `qualified facility' 
        means a facility which--
                    ``(A) is described in section 45U(b)(1)(A) and 
                satisfies the requirements under clause (iv) of such 
                section, or
                    ``(B)(i) is described in subsection (e)(4) of 
                section 45V and satisfies the requirements under 
                subparagraph (B) of such subsection, and
                    ``(ii) only produces transportation fuel which has 
                an emissions rate of less than 75 kilograms of 
                CO<INF>2</INF>e per mmBTU (as such terms are defined in 
                subsections (b) and (e) of section 45V).
    ``(f) Credit Phase-Out.--
            ``(1) Electrical production and energy storage property.--
        In the case of a clean energy bond for which the proceeds are 
        used for capital expenditures incurred by an entity for a 
        qualified facility described in subsection (e)(6)(A) or any 
        property described in subsection (d)(1)(A)(ii), if the 
        Secretary, in consultation with the Secretary of Energy and the 
        Administrator of the Environmental Protection Agency, 
        determines that the annual greenhouse gas emissions from the 
        production of electricity in the United States are equal to or 
        less than the percentage specified in section 45U(d)(1), the 
        amount of the credit determined under subsection (b) with 
        respect to any clean energy bond issued during a calendar year 
        described in paragraph (3) shall be equal to the product of--
                    ``(A) the amount determined under subsection (b) 
                without regard to this subsection, multiplied by
                    ``(B) the phase-out percentage under paragraph (3).
            ``(2) Fuel production.--In the case of a clean energy bond 
        for which the proceeds are used for capital expenditures 
        incurred by an entity for a qualified facility described in 
        subsection (e)(6)(B), if the Secretary, in consultation with 
        the Secretary of Energy and the Administrator of the 
        Environmental Protection Agency, determines that the annual 
        greenhouse gas emissions from the transportation of persons and 
        goods annually in the United States are equal to or less than 
        the percentage specified in section 45V(d)(1), the amount of 
        the credit determined under subsection (b) with respect to any 
        clean energy bond issued during a calendar year described in 
        paragraph (3) shall be equal to the product of--
                    ``(A) the amount determined under subsection (b) 
                without regard to this subsection, multiplied by
                    ``(B) the phase-out percentage under paragraph (3).
            ``(3) Phase-out percentage.--The phase-out percentage under 
        this paragraph is equal to--
                    ``(A) for any bond issued during the first calendar 
                year following the calendar year in which the 
                determination described in paragraph (1) or (2) is 
                made, 100 percent,
                    ``(B) for any bond issued during the second 
                calendar year following such determination year, 75 
                percent,
                    ``(C) for any bond issued during the third calendar 
                year following such determination year, 50 percent, and
                    ``(D) for any bond issued during any calendar year 
                subsequent to the year described in subparagraph (C), 0 
                percent.
    ``(g) Special Rules.--
            ``(1) Interest on clean energy bonds includible in gross 
        income for federal income tax purposes.--For purposes of this 
        title, interest on any clean energy bond shall be includible in 
        gross income.
            ``(2) S corporations and partnerships.--In the case of a 
        clean energy bond held by an S corporation or partnership, the 
        allocation of the credit allowed by this section to the 
        shareholders of such corporation or partners of such 
        partnership shall be treated as a distribution.
            ``(3) Bonds held by real estate investment trusts.--If any 
        clean energy bond is held by a real estate investment trust, 
        the credit determined under subsection (a) shall be allowed to 
        beneficiaries of such trust (and any gross income included 
        under paragraph (1) with respect to such credit shall be 
        distributed to such beneficiaries) under procedures prescribed 
        by the Secretary.
            ``(4) Credits may be stripped.--Under regulations 
        prescribed by the Secretary--
                    ``(A) In general.--There may be a separation 
                (including at issuance) of the ownership of a clean 
                energy bond and the entitlement to the credit under 
                this section with respect to such bond. In case of any 
                such separation, the credit under this section shall be 
                allowed to the person who on the credit allowance date 
                holds the instrument evidencing the entitlement to the 
                credit and not to the holder of the bond.
                    ``(B) Certain rules to apply.--In the case of a 
                separation described in subparagraph (A), the rules of 
                section 1286 shall apply to the clean energy bond as if 
                it were a stripped bond and to the credit under this 
                section as if it were a stripped coupon.
    ``(h) Regulations.--The Secretary may prescribe such regulations 
and other guidance as may be necessary or appropriate to carry out this 
section and section 6431.''.
    (b) Credit for Qualified Clean Energy Bonds Allowed to Issuer.--
Subchapter B of chapter 65 of subtitle F is amended by adding at the 
end the following new section:

``SEC. 6431. CREDIT FOR QUALIFIED CLEAN ENERGY BONDS ALLOWED TO ISSUER.

    ``(a) In General.--The issuer of a qualified clean energy bond 
shall be allowed a credit with respect to each interest payment under 
such bond which shall be payable by the Secretary as provided in 
subsection (b).
    ``(b) Payment of Credit.--
            ``(1) In general.--The Secretary shall pay 
        (contemporaneously with each interest payment date under such 
        bond) to the issuer of such bond (or to any person who makes 
        such interest payments on behalf of the issuer) the applicable 
        percentage (as determined under section 54(b)) of the interest 
        payable under such bond on such date.
            ``(2) Interest payment date.--For purposes of this 
        subsection, the term `interest payment date' means each date on 
        which interest is payable by the issuer under the terms of the 
        bond.
    ``(c) Application of Arbitrage Rules.--For purposes of section 148, 
the yield on a qualified clean energy bond shall be reduced by the 
credit allowed under this section.
    ``(d) Qualified Clean Energy Bond.--For purposes of this section, 
the term `qualified clean energy bond' means a clean energy bond (as 
defined in section 54(d)) issued as part of an issue if the issuer, in 
lieu of any credit allowed under section 54(a) with respect to such 
bond, makes an irrevocable election to have this section apply.''.
    (c) Conforming Amendments.--
            (1) The table of subparts for part IV of subchapter A of 
        chapter 1 is amended by inserting after the item relating to 
        subpart G the following:

                   ``subpart h--clean energy bonds''.

            (2) The table of sections for subchapter B of chapter 65 of 
        subtitle F is amended by adding at the end the following new 
        item:

``Sec. 6431. Credit for qualified clean energy bonds allowed to 
                            issuer.''.
            (3) Subparagraph (A) of section 6211(b)(4) is amended by 
        striking ``and 6428A'' and inserting ``6428A, and 6431''.
    (d) Gross-Up of Payment to Issuers in Case of Sequestration.--
            (1) In general.--In the case of any payment under 
        subsection (b) of section 6431 of the Internal Revenue Code of 
        1986 (as added by this Act) made after the date of the 
        enactment of this Act to which sequestration applies, the 
        amount of such payment shall be increased to an amount equal 
        to--
                    (A) such payment (determined before such 
                sequestration), multiplied by
                    (B) the quotient obtained by dividing 1 by the 
                amount by which 1 exceeds the percentage reduction in 
                such payment pursuant to such sequestration.
            (2) Sequestration.--For purposes of this subsection, the 
        term ``sequestration'' means any reduction in direct spending 
        ordered by the President under the Balanced Budget and 
        Emergency Deficit Control Act of 1985 or the Statutory Pay-As-
        You-Go Act of 2010.
    (e) Effective Date.--The amendments made by this section shall 
apply to obligations issued after December 31, 2022.

         TITLE V--TERMINATION OF CERTAIN FOSSIL FUEL PROVISIONS

SEC. 501 TERMINATION OF PROVISIONS RELATING TO OIL, GAS, AND OTHER 
              MATERIALS.

    (a) Amortization of Geological and Geophysical Expenditures.--
Section 167(h) is amended by adding at the end the following new 
paragraph:
            ``(6) Termination.--This subsection shall not apply to any 
        expenses paid or incurred during any taxable year beginning 
        after the date of the enactment of the Clean Energy for America 
        Act.''.
    (b) Alaska Natural Gas Pipelines.--Subparagraph (B) of section 
168(i)(16) is amended to read as follows:
                    ``(B) is--
                            ``(i)(I) placed in service after December 
                        31, 2013, or
                            ``(II) treated as placed in service on 
                        January 1, 2014, if the taxpayer who places 
                        such system in service before January 1, 2014, 
                        elects such treatment, and
                            ``(ii) placed in service before the end of 
                        the calendar year in which the Clean Energy for 
                        America Act is enacted.''.
    (c) Natural Gas Gathering Line.--Paragraph (17) of section 168(i) 
is amended--
            (1) in subparagraph (A), by inserting ``which are placed in 
        service before the end of the calendar year in which the Clean 
        Energy for America Act is enacted and are'' after ``pipe, 
        equipment, and appurtenances'', and
            (2) in subparagraph (B), by inserting ``which are placed in 
        service before the end of the calendar year in which the Clean 
        Energy for America Act is enacted and are'' after ``pipe, 
        equipment, and appurtenances''.
    (d) Repeal of Deduction for Tertiary Injectants.--Subsection (c) of 
section 193 is amended--
            (1) in paragraph (1), by striking ``or'' at the end,
            (2) in paragraph (2), by striking the period at the end and 
        inserting ``, or'', and
            (3) by inserting at the end the following:
            ``(3) which is paid or incurred during any taxable year 
        beginning after the date of the enactment of the Clean Energy 
        for America Act.''.
    (e) Intangible Drilling and Development Costs.--Subsection (c) of 
section 263 is amended to read as follows:
    ``(c) Intangible Drilling and Development Costs in the Case of Oil 
and Gas Wells and Geothermal Wells.--
            ``(1) In general.--Notwithstanding subsection (a), and 
        except as provided in subsection (i), regulations shall be 
        prescribed by the Secretary under this subtitle corresponding 
        to the regulations which granted the option to deduct as 
        expenses intangible drilling and development costs in the case 
        of oil and gas wells and which were recognized and approved by 
        the Congress in House Concurrent Resolution 50, Seventy-ninth 
        Congress. Such regulations shall also grant the option to 
        deduct as expenses intangible drilling and development costs in 
        the case of wells drilled for any geothermal deposit (as 
        defined in section 613(e)(2)) to the same extent and in the 
        same manner as such expenses are deductible in the case of oil 
        and gas wells. This subsection shall not apply with respect to 
        any costs to which any deduction is allowed under section 59(e) 
        or 291.
            ``(2) Exclusion.--
                    ``(A) In general.--This subsection shall not apply 
                to amounts paid or incurred by a taxpayer with regard 
                to any oil or gas well in any taxable year beginning 
                after the date of the enactment of the Clean Energy for 
                America Act.
                    ``(B) Amortization of excluded amounts.--The amount 
                not allowable as a deduction for any taxable year by 
                reason of subparagraph (A) shall be allowable as a 
                deduction ratably over the 60-month period beginning 
                with the month in which the costs are paid or incurred. 
                For purposes of section 1254, any deduction under this 
                subparagraph shall be treated as a deduction under this 
                subsection.''.
    (f) Percentage Depletion.--
            (1) Percentage depletion of oil and gas wells, coal, 
        lignite, and oil shale.--Section 613 is amended--
                    (A) in subsection (a), by striking ``(100 percent 
                in the case of oil and gas properties)'',
                    (B) in subsection (b)--
                            (i) by striking paragraph (2) and inserting 
                        the following:
            ``(2) 15 percent.--If from deposits in the United States, 
        gold, silver, copper, and iron ore.'',
                            (ii) in paragraph (4), by striking ``coal, 
                        lignite,'',
                            (iii) in paragraph (5), by inserting 
                        ``(except oil shale)'' after ``Clay and 
                        shale'', and
                            (iv) in paragraph (6)(A), by striking 
                        ``(except shale described in paragraph (2)(B) 
                        or (5))'' and inserting ``(except oil shale and 
                        shale described in paragraph (5))'',
                    (C) in subsection (c)(4)--
                            (i) by striking subparagraphs (A) and (H),
                            (ii) by inserting ``and'' at the end of 
                        subparagraph (G),
                            (iii) by redesignating subparagraphs (B) 
                        through (G) as subparagraphs (A) through (F), 
                        respectively, and
                            (iv) by redesignating subparagraph (I) as 
                        subparagraph (G),
                    (D) in subsection (d), by striking ``Except as 
                provided in section 613A, in the case of'' and 
                inserting ``In the case of'', and
                    (E) in subsection (e)(2), by striking ``or section 
                613A''.
            (2) Oil and gas wells.--Section 613A is amended by adding 
        at the end the following new subsection:
    ``(f) Termination.--This section shall not apply to any taxable 
year beginning after the date of the enactment of the Clean Energy for 
America Act.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after the date of the 
        enactment of this Act.
    (g) Termination of Capital Gains Treatment for Royalties From 
Coal.--
            (1) In general.--Subsection (c) of section 631 is amended--
                    (A) by striking ``coal (including lignite), or iron 
                ore'' and inserting ``iron ore'',
                    (B) by striking ``coal or iron ore'' each place it 
                appears and inserting ``iron ore'',
                    (C) by striking ``iron ore or coal'' each place it 
                appears and inserting ``iron ore'', and
                    (D) by striking ``Coal or'' in the heading.
            (2) Conforming amendment.--The heading of section 631 of 
        the Internal Revenue Code of 1986 is amended by striking ``, 
        coal,''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after the date of the 
        enactment of this Act.
    (h) Enhanced Oil Recovery Credit.--
            (1) In general.--Subpart D of part IV of subchapter A of 
        chapter 1 is amended by striking section 43.
            (2) Conforming amendments.--
                    (A) Section 38(b) is amended by striking paragraph 
                (6).
                    (B) Section 45Q is amended--
                            (i) by striking ``section 43(b)(3)(B)'' 
                        each place it appears and inserting ``section 
                        43(b)(3)(B) (as in effect on the day before the 
                        date of the enactment of the Clean Energy for 
                        America Act)'', and
                            (ii) in subsection (e)(2), by inserting 
                        ``(as in effect on the day before the date of 
                        the enactment of the Clean Energy for America 
                        Act)'' after ``section 43(c)(2)''.
                    (C) Section 196(c) is amended--
                            (i) by striking paragraph (5), and
                            (ii) by redesignating paragraphs (6) 
                        through (14) as paragraphs (5) through (13), 
                        respectively.
            (3) Clerical amendment.--The table of sections for subpart 
        D of part IV of subchapter A of chapter 1 is amended by 
        striking the item relating to section 43.
            (4) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after the date of the 
        enactment of this Act.
    (i) Credit for Producing Oil and Gas From Marginal Wells.--
            (1) In general.--Subpart D of part IV of subchapter A of 
        chapter 1 is amended by striking section 45I.
            (2) Conforming amendment.--Section 38(b) is amended by 
        striking paragraph (19).
            (3) Clerical amendment.--The table of sections for subpart 
        D of part IV of subchapter A of chapter 1 is amended by 
        striking the item relating to section 45I.
            (4) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after the date of the 
        enactment of this Act.
    (j) Qualifying Advanced Coal Project Credit.--
            (1) In general.--Subpart E of part IV of subchapter A of 
        chapter 1 is amended by striking section 48A.
            (2) Conforming amendments.--
                    (A) Section 46, as amended by section 102 of this 
                Act, is amended by striking paragraph (3) and 
                redesignating paragraphs (4) through (7) as paragraphs 
                (3) through (6), respectively.
                    (B) Section 49(a)(1)(C), as amended by section 102 
                of this Act, is amended by striking clause (iii) and 
                redesignating clauses (iv) through (vii) as clauses 
                (iii) through (vi), respectively.
                    (C) Section 50(a)(2)(E), as amended by section 102 
                of this Act, is amended by striking ``48A(b)(3),''.
            (3) Clerical amendment.--The table of sections for subpart 
        E of part IV of subchapter A of chapter 1 is amended by 
        striking the item relating to section 48A.
            (4) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after the date of the 
        enactment of this Act.
    (k) Qualifying Gasification Project Credit.--
            (1) In general.--Subpart E of part IV of subchapter A of 
        chapter 1 is amended by striking section 48B.
            (2) Conforming amendments.--
                    (A) Section 46, as amended by this Act, is amended 
                by striking paragraph (3) and by redesignating 
                paragraphs (4), (5), and (6) as paragraphs (3), (4), 
                and (5), respectively.
                    (B) Section 49(a)(1)(C), as amended by this Act, is 
                amended by striking clause (iii) and redesignating 
                clauses (iv) through (vi) as clauses (iii) through (v).
                    (C) Section 50(a)(2)(E), as amended by this Act, is 
                amended by striking ``48B(b)(3),''.
            (3) Clerical amendment.--The table of sections for subpart 
        E of part IV of subchapter A of chapter 1 is amended by 
        striking the item relating to section 48B.
            (4) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after the date of the 
        enactment of this Act.
    (l) Reinstatement of Treatment of Foreign Base Company Oil Related 
Income as Foreign Base Company Income.--
            (1) In general.--Section 954(a) is amended by striking 
        ``and'' at the end of paragraph (2), by striking the period at 
        the end of paragraph (3) and inserting ``, and'', and by adding 
        at the end the following new paragraph:
            ``(4) the foreign base company oil related income for the 
        taxable year (determined under subsection (g) and reduced as 
        provided in subsection (b)(5)).''.
            (2) Foreign base company oil related income.--Section 954 
        is amended by inserting before subsection (h) the following new 
        subsection:
    ``(g) Foreign Base Company Oil Related Income.--For purposes of 
this section--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, the term `foreign base company oil related income' 
        means foreign oil related income (within the meaning of 
        paragraphs (2) and (3) of section 907(c)) other than income 
        derived from a source within a foreign country in connection 
        with--
                    ``(A) oil or gas which was extracted from an oil or 
                gas well located in such foreign country, or
                    ``(B) oil, gas, or a primary product of oil or gas 
                which is sold by the foreign corporation or a related 
                person for use or consumption within such country or is 
                loaded in such country on a vessel or aircraft as fuel 
                for such vessel or aircraft.
        Such term shall not include any foreign personal holding 
        company income (as defined in subsection (c)).
            ``(2) Paragraph (1) applies only where corporation has 
        produced 1,000 barrels per day or more.--
                    ``(A) In general.--The term `foreign base company 
                oil related income' shall not include any income of a 
                foreign corporation if such corporation is not a large 
                oil producer for the taxable year.
                    ``(B) Large oil producer.--For purposes of 
                subparagraph (A), the term `large oil producer' means 
                any corporation if, for the taxable year or for the 
                preceding taxable year, the average daily production of 
                foreign crude oil and natural gas of the related group 
                which includes such corporation equaled or exceeded 
                1,000 barrels.
                    ``(C) Related group.--The term `related group' 
                means a group consisting of the foreign corporation and 
                any other person who is a related person with respect 
                to such corporation.
                    ``(D) Average daily production of foreign crude oil 
                and natural gas.--For purposes of this paragraph, the 
                average daily production of foreign crude oil or 
                natural gas of any related group for any taxable year 
                (and the conversion of cubic feet of natural gas into 
                barrels) shall be determined under rules similar to the 
                rules of section 613A except that only crude oil or 
                natural gas from a well located outside the United 
                States shall be taken into account.''.
            (3) Conforming amendments.--
                    (A) Section 952(c)(1)(B)(iii) is amended by 
                redesignating subclauses (I) through (IV) as subclauses 
                (II) through (V), respectively, and by inserting before 
                subclause (II) (as redesignated) the following new 
                subclause:
                                    ``(I) foreign base company oil 
                                related income,''.
                    (B) Section 954(b) is amended--
                            (i) in paragraph (4), by inserting at the 
                        end the following new sentence: ``The preceding 
                        sentence shall not apply to foreign base 
                        company oil-related income described in 
                        subsection (a)(4).'',
                            (ii) in paragraph (5), by striking ``and 
                        the foreign base company services income'' and 
                        inserting ``the foreign base company services 
                        income, and the foreign base company oil 
                        related income'', and
                            (iii) by adding at the end the following 
                        new paragraph:
            ``(6) Foreign base company oil related income not treated 
        as another kind of base company income.--Income of a 
        corporation which is foreign base company oil related income 
        shall not be considered foreign base company income of such 
        corporation under paragraph (2) or (3) of subsection (a).''.
            (4) Effective date.--The amendments made by this subsection 
        shall apply to taxable years of foreign corporations beginning 
        after the date of the enactment of this Act, and to taxable 
        years of United States shareholders with or within which such 
        taxable years of foreign corporations end.
    (m) Inclusion of Foreign Oil and Gas Extraction Income in Tested 
Income for Purpose of Determining Global Intangible Low-Taxed Income.--
            (1) In general.--Section 951A(c)(2)(A)(i) is amended by 
        inserting ``and'' at the end of subclause (III), by striking 
        ``and'' at the end of subclause (IV) and inserting ``over'', 
        and by striking subclause (V).
            (2) Effective date.--The amendments made by this subsection 
        shall apply to taxable years of foreign corporations beginning 
        after the date of the enactment of this Act, and to taxable 
        years of United States shareholders in which or with which such 
        tax years of foreign corporations end.
    (n) Repeal of Corporate Income Tax Exemption for Publicly Traded 
Partnerships With Qualifying Income and Gains From Activities Relating 
to Fossil Fuels.--
            (1) In general.--Section 7704(d)(1) is amended--
                    (A) in subparagraph (E), by striking ``(including 
                pipelines transporting gas, oil, or products 
                thereof)'', and
                    (B) in the flush matter at the end, by inserting 
                ``or any coal, gas, oil, or products thereof'' before 
                the period.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to taxable years beginning after the date of the 
        enactment of this Act.

              TITLE VI--WORKFORCE DEVELOPMENT REQUIREMENTS

SEC. 601. USE OF QUALIFIED APPRENTICES.

    (a) In General.--All contractors and subcontractors engaged in the 
performance of construction, alteration, or repair work on any 
applicable project shall, subject to subsection (b), ensure that not 
less than 15 percent of the total labor hours of such work be performed 
by qualified apprentices.
    (b) Apprentice-to-Journeyworker Ratio.--The requirement under 
subsection (a) shall be subject to any applicable requirements for 
apprentice-to-journeyworker ratios of the Department of Labor or the 
applicable State apprenticeship agency.
    (c) Participation.--Each contractor and subcontractor who employs 4 
or more individuals to perform construction, alteration, or repair work 
on an applicable project shall employ 1 or more qualified apprentices 
to perform such work.
    (d) Exception.--Notwithstanding any other provision in this 
section, this section shall not apply in the case of a taxpayer who--
            (1) demonstrates a lack of availability of qualified 
        apprentices in the geographic area of the construction, 
        alteration, or repair work; and
            (2) makes a good faith effort, and its contractors and 
        subcontractors make a good faith effort, to comply with the 
        requirements of this section.
    (e) Definitions.--In this section:
            (1) Applicable project.--The term ``applicable project'' 
        means, with respect to--
                    (A) subsection (e)(7)(A)(ii) of section 30C of the 
                Internal Revenue Code of 1986,
                    (B) subsection (f)(8)(A)(ii) of section 45Q of such 
                Code,
                    (C) subsection (b)(1)(A)(iv)(II) of section 45U of 
                such Code,
                    (D) subsections (b)(3)(A)(iv)(II) and (c)(1)(B)(ii) 
                of section 48D of such Code, and
                    (E) subsection 9c)(1)(E)(ii) of section 179D of 
                such Code,
        any property, equipment, or facility for which a credit is 
        allowed under such sections.
            (2) Labor hours.--The term ``labor hours''--
                    (A) means the total number of hours devoted to the 
                performance of construction, alteration, or repair work 
                by employees of the contractor or subcontractor; and
                    (B) excludes any hours worked by--
                            (i) foremen;
                            (ii) superintendents;
                            (iii) owners; or
                            (iv) 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).
            (3) Qualified apprentice.--The term ``qualified 
        apprentice'' means an individual who is an employee of the 
        contractor or subcontractor and who is participating in a 
        registered apprenticeship program, as defined in section 
        3131(e)(3)(B) of the Internal Revenue Code of 1986.
                                 <all>