117 S1298 IS: Clean Energy for America Act U.S. Senate 2021-04-22 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
II 117th CONGRESS1st Session S. 1298 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.
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.
<enum>I</enum><header>Incentives for Clean Electricity </header> <section id="id8CF986F0039F4DB2A2E2DF0472EE3813"><enum>101.</enum><header>Clean electricity production credit</header> <subsection id="idB333CABC2D6649DCABCC973636CB5DED"><enum>(a)</enum><header>In general</header><text>Subpart D of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by adding at the end the following new section:</text> <quoted-block display-inline="no-display-inline" id="id9FE98C5D538D4C8BB50686DDEA683D5A" style="OLC"> <section id="id2C44178BC7AA4F97B7262FFB750CA979"><enum>45U.</enum><header>Clean electricity production credit</header> <subsection id="id3B7A7C767C23403EA205E76C86A0CD81"><enum>(a)</enum><header>Amount of credit</header><text>For purposes of section 38, the clean electricity production credit for any taxable year is an amount equal to the product of—</text> <paragraph id="id5F768BEACD6D4E949A52FD94FFD792AE"><enum>(1)</enum><text>1.5 cents, multiplied by</text></paragraph> <paragraph id="idDE709C8F2E9244CEAAE4FAEC18EF4A7C"><enum>(2)</enum><text>the kilowatt hours of electricity—</text> <subparagraph id="idB090AB3CF7FC47F8A74F593802499B66"><enum>(A)</enum><text>produced by the taxpayer at a qualified facility, and</text></subparagraph> <subparagraph id="id1ED5E7E06801475E9594D719BEBE9863"><enum>(B)</enum> <clause commented="no" display-inline="yes-display-inline" id="id5476CE43C1E6490383647CF031A2C446"><enum>(i)</enum><text>sold by the taxpayer to an unrelated person during the taxable year, or</text></clause> <clause id="idFDCC0D25BFB3487C91BB82DD6CDD9FAC" indent="up1"><enum>(ii)</enum><text>in the case of a qualified facility which is equipped with a metering device which is owned and operated by an unrelated person, sold, consumed, or stored by the taxpayer during the taxable year.</text></clause></subparagraph></paragraph></subsection> <subsection id="idCA3F7A4D741D4BA3A1EDE226D84404F0"><enum>(b)</enum><header>Qualified facility</header> <paragraph id="id1D012B43FD6D4AFA87CE800D1F6870C8"><enum>(1)</enum><header>In general</header> <subparagraph id="id495C6F26CD0744D1BFCC9E5E2E474508"><enum>(A)</enum><header>Definition</header><text>Subject to subparagraphs (B), (C), and (D), the term <term>qualified facility</term> means a facility—</text> <clause id="idC7B757B8A9464E0E9C3A6181EC0C9183"><enum>(i)</enum><text>which is used for the generation of electricity,</text></clause> <clause id="idDCD05F90F1584CE0AA2F6A83DDC3BAAB"><enum>(ii)</enum><text>which is originally placed in service after December 31, 2022,</text></clause> <clause id="id7CEB38F5D71C42E5A6CB268F4CD95173"><enum>(iii)</enum><text>for which the greenhouse gas emissions rate (as determined under paragraph (2)) is not greater than zero, and</text></clause> <clause id="idEC610B5082C64A228DB200E44DFD0AD2"><enum>(iv)</enum><text>in the case of any facility with a total nameplate capacity equal to or greater than 1 megawatt, which—</text> <subclause id="idEB71E8A77D1846DFBC47955EC0718E3C"><enum>(I)</enum><text>satisfies the requirements under paragraph (3), and</text></subclause> <subclause id="idD90FA2A9D05747258BADF11914D1BB2D"><enum>(II)</enum><text>with respect to the construction of such facility, satisfies the requirements under section 601 of the <short-title>Clean Energy for America Act</short-title>.</text></subclause></clause></subparagraph> <subparagraph id="idD56C6D4124B446DEA37B76A4924D255F"><enum>(B)</enum><header>10-year production credit</header><text>For purposes of this section, a facility shall only be treated as a qualified facility during the 10-year period beginning on the date the facility was originally placed in service.</text></subparagraph> <subparagraph commented="no" id="id512A5F3105D940319600C8D82C2648B6"><enum>(C)</enum><header>Expansion of facility; incremental production</header><text>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:</text> <clause commented="no" id="id73F9CDFD3FF0491EA181949DA9908271"><enum>(i)</enum><text>A new unit placed in service after December 31, 2022.</text></clause> <clause commented="no" id="idA6DE4B23ED8D4864B91179B13CDB5AEC"><enum>(ii)</enum><text>Any efficiency improvements or additions of capacity placed in service after December 31, 2022.</text></clause></subparagraph> <subparagraph id="idD2ADBCE23E484760B3BBA6FBA95A1F23"><enum>(D)</enum><header>Coordination with other credits</header><text>The term <term>qualified facility</term> shall not include any facility for which a credit determined under section 45, 45J, 48, or 48D is allowed under section 38 for the taxable year or any prior taxable year.</text></subparagraph></paragraph> <paragraph id="id0CDD31660A7945C194FF3396650E291D"><enum>(2)</enum><header>Greenhouse gas emissions rate</header> <subparagraph id="idC6BFFF301CF34343AA8DDD4A54D31C2C"><enum>(A)</enum><header>In general</header><text>For purposes of this section, the term <term>greenhouse gas emissions rate</term> means the amount of greenhouse gases emitted into the atmosphere by a facility in the production of electricity, expressed as grams of CO<subscript>2</subscript>e per KWh.</text></subparagraph> <subparagraph id="id88BFB90B38CD4E7D89FF78D74CE49B49"><enum>(B)</enum><header>Fuel combustion and gasification</header><text>In the case of a facility which produces electricity through combustion or gasification, the greenhouse gas emissions rate for such facility shall be equal to the net rate of greenhouse gases emitted into the atmosphere by such facility (taking into account lifecycle greenhouse gas emissions, as described in section 211(o)(1)(H) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(1)(H)</external-xref>)) in the production of electricity, expressed as grams of CO<subscript>2</subscript>e per KWh.</text></subparagraph> <subparagraph commented="no" id="id6EE4A061CD924E5A84CAB317C6FF17E3"><enum>(C)</enum><header>Establishment of emissions rates for facilities</header> <clause commented="no" id="id8CCCA178F8E34EB49AD91F49FA2F8E64"><enum>(i)</enum><header>In general</header><text>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.</text></clause> <clause commented="no" id="id592973CFCAE34C7D9351B220532EB0B9"><enum>(ii)</enum><header>Publishing emissions rates</header><text>The Secretary shall publish a table that sets forth the greenhouse gas emissions rates for similar types or categories of facilities.</text></clause> <clause id="id844B37D3A5CE4BEFB19B17C8753DC53B"><enum>(iii)</enum><header>Provisional emissions rate</header> <subclause id="idD4B631AD45A04AC894BBCD8ECCE0C063"><enum>(I)</enum><header>In general</header><text>In the case of any facility for which an emissions rate has not been established by the Secretary, a taxpayer which owns such facility may file a petition with the Secretary for determination of the emissions rate with respect to such facility.</text></subclause> <subclause id="idAE11F5D36D9E4B1E84FF207EE3A2F363"><enum>(II)</enum><header>Establishment of provisional and final emissions rate</header><text>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—</text> <item id="idB38167A4460A412CA076244AB46A2BEF"><enum>(aa)</enum><text>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</text></item> <item id="idD3414AD4FFE34AC1BDABB7BF0A264A02"><enum>(bb)</enum><text>not later than 24 months after the date on which the petition was filed, establish the emissions rate for such facility. </text></item></subclause></clause></subparagraph> <subparagraph commented="no" id="idAFF3B0B02D06426DAEF3BA87A9108932"><enum>(D)</enum><header>Carbon capture and sequestration equipment</header><text>For purposes of this subsection, the amount of greenhouse gases emitted into the atmosphere by a facility in the production of electricity shall not include any qualified carbon dioxide that is captured by the taxpayer and—</text> <clause commented="no" id="idC474AB32FF484458B48232106477DD68"><enum>(i)</enum><text>pursuant to any regulations established under paragraph (2) of section 45Q(f), disposed of by the taxpayer in secure geological storage, or</text></clause> <clause commented="no" id="idCF5275A381CA4891A3EBD0B17884A65C"><enum>(ii)</enum><text>utilized by the taxpayer in a manner described in paragraph (5) of such section.</text></clause></subparagraph></paragraph> <paragraph commented="no" id="idA5859ED4F6F74D9BA247B55ABED1AA96"><enum>(3)</enum><header>Wage requirements</header><text>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—</text> <subparagraph commented="no" id="id1E581C9CF8764B60B1EEA97721FD00EC"><enum>(A)</enum><text>the construction of such facility, or</text></subparagraph> <subparagraph commented="no" id="id7BC2489892DA4AD0BF394A436850F9B4"><enum>(B)</enum><text>for any year during the period described in paragraph (1)(B), the alteration or repair of such facility,</text></subparagraph><continuation-text continuation-text-level="paragraph">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 <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code.</continuation-text></paragraph></subsection> <subsection id="idCBDA9906A862427A98636CF622FA9B09"><enum>(c)</enum><header>Inflation adjustment</header> <paragraph id="id1C001A021B0A464291214CD2834F29FE"><enum>(1)</enum><header>In general</header><text>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.</text></paragraph> <paragraph id="id86D00342C00E437DAA27EDFFCD80C611"><enum>(2)</enum><header>Annual computation</header><text>The Secretary shall, not later than April 1 of each calendar year, determine and publish in the Federal Register the inflation adjustment factor for such calendar year in accordance with this subsection.</text></paragraph> <paragraph id="idA5A4E7E5EEFE4685A6B0AB4BB7C95BF6"><enum>(3)</enum><header>Inflation adjustment factor</header><text>The term <quote>inflation adjustment factor</quote> means, with respect to a calendar year, a fraction the numerator of which is the GDP implicit price deflator for the preceding calendar year and the denominator of which is the GDP implicit price deflator for the calendar year 1992. The term <term>GDP implicit price deflator</term> means the most recent revision of the implicit price deflator for the gross domestic product as computed and published by the Department of Commerce before March 15 of the calendar year.</text></paragraph></subsection> <subsection id="id60D25611BEAC4D438FD309CBAFF4D876"><enum>(d)</enum><header>Credit phase-Out</header> <paragraph id="id0526BD5CEDF843B19689E960E14C92EC"><enum>(1)</enum><header>In general</header><text>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—</text> <subparagraph id="id2310A2695A494EA093E7914F1B329291"><enum>(A)</enum><text>the amount of the credit determined under subsection (a) without regard to this subsection, multiplied by</text></subparagraph> <subparagraph id="id98775845731F4838861CAA94F1DCA101"><enum>(B)</enum><text>the phase-out percentage under paragraph (2).</text></subparagraph></paragraph> <paragraph id="id277F0AF9F2B94C3E9B0C9F61E91E5966"><enum>(2)</enum><header>Phase-out percentage</header><text>The phase-out percentage under this paragraph is equal to—</text> <subparagraph id="id1AE3BD6830244BA7BA9FFB55E6300909"><enum>(A)</enum><text>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,</text></subparagraph> <subparagraph id="id65E2C33B947945E4A54D44B5E3663751"><enum>(B)</enum><text>for a facility the construction of which begins during the second calendar year following such determination year, 75 percent,</text></subparagraph> <subparagraph id="idBCADE3D66A434BBFB073DDE6B051DA95"><enum>(C)</enum><text>for a facility the construction of which begins during the third calendar year following such determination year, 50 percent, and</text></subparagraph> <subparagraph commented="no" id="id8A5F35A960144684B8850A72C04B4397"><enum>(D)</enum><text>for a facility placed in service during any calendar year subsequent to the year described in subparagraph (C), 0 percent.</text></subparagraph></paragraph></subsection> <subsection id="idBF974D03870545B89A471DB20B3199EE"><enum>(e)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="id9C7E63B8DB704A61A5E30C608B701DF5"><enum>(1)</enum><header>CO<subscript>2</subscript><enum-in-header>e</enum-in-header> per <enum-in-header>KWh</enum-in-header></header><text>The term <term>CO<subscript>2</subscript>e per KWh</term> means, with respect to any greenhouse gas, the equivalent carbon dioxide (as determined based on global warming potential) per kilowatt hour of electricity produced.</text></paragraph> <paragraph id="id192A2EBFE2094972AB5A1DBF33864BF2"><enum>(2)</enum><header>Greenhouse gas</header><text>The term <term>greenhouse gas</term> has the same meaning given such term under section 211(o)(1)(G) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(1)(G)</external-xref>), as in effect on the date of the enactment of this section.</text></paragraph> <paragraph commented="no" id="id056539824E5B4DBF9A14DA9283621A6B"><enum>(3)</enum><header>Qualified carbon dioxide</header><text>The term <term>qualified carbon dioxide</term> means carbon dioxide captured from an industrial source which—</text> <subparagraph commented="no" id="id271C72CD9B2049689AEB3EB9B49F7863"><enum>(A)</enum><text>would otherwise be released into the atmosphere as industrial emission of greenhouse gas,</text></subparagraph> <subparagraph commented="no" id="idA2190BA042424EA5BAAD32ACE06FFF92"><enum>(B)</enum><text>is measured at the source of capture and verified at the point of disposal or utilization, and</text></subparagraph> <subparagraph commented="no" id="id8ADCEA4807984992AD32B027B86FC512"><enum>(C)</enum><text>is captured and disposed or utilized within the United States (within the meaning of section 638(1)) or a possession of the United States (within the meaning of section 638(2)).</text></subparagraph></paragraph></subsection> <subsection id="id91F0951EC1294CD59BE71B8506B6385A"><enum>(f)</enum><header>Final guidance</header><text>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.</text></subsection> <subsection id="id0FFB3454A1484825A2F7B38807A8D5F1"><enum>(g)</enum><header>Special rules</header> <paragraph id="id5E4997CBBB044C3E9D3DDBD7AA075781"><enum>(1)</enum><header>Only production in the United States taken into account</header><text>Consumption or sales shall be taken into account under this section only with respect to electricity the production of which is within—</text> <subparagraph id="id6CE766619D3A4834901C257D70B1F2E9"><enum>(A)</enum><text>the United States (within the meaning of section 638(1)), or</text></subparagraph> <subparagraph id="idDA2F945BAAF84223AEAD387E35126221"><enum>(B)</enum><text>a possession of the United States (within the meaning of section 638(2)).</text></subparagraph></paragraph> <paragraph id="id7B6B08D170AA47CB8B450BBFA340359D"><enum>(2)</enum><header>Combined heat and power system property</header> <subparagraph id="idC1D51134273840C1862FB4A365D82E86"><enum>(A)</enum><header>In general</header><text>For purposes of subsection (a)—</text> <clause id="id75D7D96E1CA245B1ACDE5FBDD3FA1385"><enum>(i)</enum><text>the kilowatt hours of electricity produced by a taxpayer at a qualified facility shall include any production in the form of useful thermal energy by any combined heat and power system property within such facility, and</text></clause> <clause id="id3BDF86D1FD674A1385810CD66BC243DD"><enum>(ii)</enum><text>the amount of greenhouse gases emitted into the atmosphere by such facility in the production of such useful thermal energy shall be included for purposes of determining the greenhouse gas emissions rate for such facility.</text></clause></subparagraph> <subparagraph id="id740B855B5C1849068AEBFDFCEEADCBC0"><enum>(B)</enum><header>Combined heat and power system property</header><text>For purposes of this paragraph, the term <term>combined heat and power system property</term> has the same meaning given such term by section 48(c)(3) (without regard to subparagraphs (A)(iv), (B), and (D) thereof).</text></subparagraph> <subparagraph id="id998034ABE6AE4EAB856A0B6E832AF9F6"><enum>(C)</enum><header>Conversion from BTU to KWh</header> <clause id="id7BEB2315F1A547938F41CE129C38F087"><enum>(i)</enum><header>In general</header><text>For purposes of subparagraph (A)(i), the amount of kilowatt hours of electricity produced in the form of useful thermal energy shall be equal to the quotient of—</text> <subclause id="id0536EC5BFA0F407EA8F91C9A66DE1E45"><enum>(I)</enum><text>the total useful thermal energy produced by the combined heat and power system property within the qualified facility, divided by</text></subclause> <subclause id="idA6D2D9BC309A45C1A2BFADD856AA2A80"><enum>(II)</enum><text>the heat rate for such facility.</text></subclause></clause> <clause id="id802BB2EB650D4A3B8A0D6C42425EA78D"><enum>(ii)</enum><header>Heat rate</header><text>For purposes of this subparagraph, the term <term>heat rate</term> means the amount of energy used by the qualified facility to generate 1 kilowatt hour of electricity, expressed as British thermal units per net kilowatt hour generated.</text></clause></subparagraph></paragraph> <paragraph id="id7C05BC240E494BAABDA23706065E8FDF"><enum>(3)</enum><header>Production attributable to the taxpayer</header><text>In the case of a qualified facility in which more than 1 person has an ownership interest, except to the extent provided in regulations prescribed by the Secretary, production from the facility shall be allocated among such persons in proportion to their respective ownership interests in the gross sales from such facility.</text></paragraph> <paragraph id="id720752742A494C499D04AB50FD265647"><enum>(4)</enum><header>Related persons</header><text>Persons shall be treated as related to each other if such persons would be treated as a single employer under the regulations prescribed under section 52(b). In the case of a corporation which is a member of an affiliated group of corporations filing a consolidated return, such corporation shall be treated as selling electricity to an unrelated person if such electricity is sold to such a person by another member of such group.</text></paragraph> <paragraph id="id3829B9C69AFA4C1EA6C727A31556E3AD"><enum>(5)</enum><header>Pass-thru in the case of estates and trusts</header><text>Under regulations prescribed by the Secretary, rules similar to the rules of subsection (d) of section 52 shall apply.</text></paragraph> <paragraph id="idCAE95EF5107D4A0FBD6EE26C12ED3CC6"><enum>(6)</enum><header>Allocation of credit to patrons of agricultural cooperative</header> <subparagraph id="idA77D7561D0494612A34DAB16F5D3A317"><enum>(A)</enum><header>Election to allocate</header> <clause id="id85F70D408A9F4DD6AC1874F0B7B59B2A"><enum>(i)</enum><header>In general</header><text>In the case of an eligible cooperative organization, any portion of the credit determined under subsection (a) for the taxable year may, at the election of the organization, be apportioned among patrons of the organization on the basis of the amount of business done by the patrons during the taxable year.</text></clause> <clause id="id3A333E3BD8AB46A585A4B6293399E703"><enum>(ii)</enum><header>Form and effect of election</header><text>An election under clause (i) for any taxable year shall be made on a timely filed return for such year. Such election, once made, shall be irrevocable for such taxable year. Such election shall not take effect unless the organization designates the apportionment as such in a written notice mailed to its patrons during the payment period described in section 1382(d).</text></clause></subparagraph> <subparagraph id="id3B915593326349D3A28875DCFC207756"><enum>(B)</enum><header>Treatment of organizations and patrons</header><text>The amount of the credit apportioned to any patrons under subparagraph (A)—</text> <clause id="id2AC2346EEAFA46CC914ECD919317D8F6"><enum>(i)</enum><text>shall not be included in the amount determined under subsection (a) with respect to the organization for the taxable year, and</text></clause> <clause id="id1062C4BCDC214A669699CDBA1FD56B2B"><enum>(ii)</enum><text>shall be included in the amount determined under subsection (a) for the first taxable year of each patron ending on or after the last day of the payment period (as defined in section 1382(d)) for the taxable year of the organization or, if earlier, for the taxable year of each patron ending on or after the date on which the patron receives notice from the cooperative of the apportionment.</text></clause></subparagraph> <subparagraph id="id2B9921039572429A8B5F162A6C138737"><enum>(C)</enum><header>Special rules for decrease in credits for taxable year</header><text>If the amount of the credit of a cooperative organization determined under subsection (a) for a taxable year is less than the amount of such credit shown on the return of the cooperative organization for such year, an amount equal to the excess of—</text> <clause id="idB43C9CD4C1A34033BB58D68AE6B2D2F5"><enum>(i)</enum><text>such reduction, over</text></clause> <clause id="id4F9DBE1ECF704B7EB24215DEC2E8FA5C"><enum>(ii)</enum><text>the amount not apportioned to such patrons under subparagraph (A) for the taxable year,</text></clause><continuation-text continuation-text-level="subparagraph">shall be treated as an increase in tax imposed by this chapter on the organization. Such increase shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit under this chapter.</continuation-text></subparagraph> <subparagraph id="idA84B76DC7565481386C7BAE60850C36E"><enum>(D)</enum><header>Eligible cooperative defined</header><text>For purposes of this section, the term <term>eligible cooperative</term> means a cooperative organization described in section 1381(a) which is owned more than 50 percent by agricultural producers or by entities owned by agricultural producers. For this purpose an entity owned by an agricultural producer is one that is more than 50 percent owned by agricultural producers.</text></subparagraph></paragraph></subsection> <subsection id="idEF0D3F8F1AD94484918F9F64553CD02A"><enum>(h)</enum><header>Election for direct payment</header> <paragraph id="id3F45B5269FF74C21A09D0E5A13C435BB"><enum>(1)</enum><header>In general</header><text>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. </text></paragraph> <paragraph id="idA6ADC307FAA1467DB5532468F0625C92"><enum>(2)</enum><header>Form and effect of election</header><text>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—</text> <subparagraph id="id389CE85E80524723A92FAFE6E038215E"><enum>(A)</enum><text>be irrevocable with respect to such qualified facility for the period described in subsection (b)(1)(B), and</text></subparagraph> <subparagraph id="id47AB8DD421E34EBEBF9AD2A0E4365D2C"><enum>(B)</enum><text>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.</text></subparagraph></paragraph> <paragraph id="id4533FCCEA1224832A526AF68C5D108EB"><enum>(3)</enum><header>Application to partnerships and S corporations</header><text>In the case of a partnership or S corporation which makes an election under paragraph (1)—</text> <subparagraph id="id9F1B17A3C634471084172384CDF82D94"><enum>(A)</enum><text>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</text></subparagraph> <subparagraph id="id5A58B1EEEC374222BCC2762351F57365"><enum>(B)</enum> <clause commented="no" display-inline="yes-display-inline" id="idCFD6886E7F84474DB3A919696E56C3C9"><enum>(i)</enum><text>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</text></clause> <clause id="idEB3A969195444FE8ABFF74660A5525E5" indent="up1"><enum>(ii)</enum><text>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.</text></clause></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="idD982B4ED721948CB8BCFDA11B3DAF456"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="id736DD5CB0B7C48E99D010FBC9DEBAF62"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/38">Section 38(b)</external-xref> is amended—</text> <subparagraph id="id88EA017C938041FDAEC9DF6681E7C826"><enum>(A)</enum><text>in paragraph (32), by striking <quote>plus</quote> at the end,</text></subparagraph> <subparagraph id="idA7A8E4A2B28E46C294A9FAAE039ABBE5"><enum>(B)</enum><text>in paragraph (33), by striking the period at the end and inserting <quote>, plus</quote>, and</text></subparagraph> <subparagraph id="idDBF668B6762A45648AF0A321BA4D2EF3"><enum>(C)</enum><text>by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="idED954F33077440F28155F9964A078052" style="OLC"> <paragraph id="id76AB637E06C0416AA49A59C75E017A71"><enum>(34)</enum><text>the clean electricity production credit determined under section 45U(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="id302A6D42123E492F898F5DFB11AF8359"><enum>(2)</enum><text>The table of sections for subpart D of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by adding at the end the following new item:</text> <quoted-block display-inline="no-display-inline" id="idC66E3C9E44E844A7B64F190326189FD5" style="OLC"> <toc> <toc-entry bold="off" level="section">Sec. 45U. Clean electricity production credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection id="idFB95AB9C328A4C01A66A83E84A75B228"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to facilities placed in service after December 31, 2022.</text></subsection></section> <section id="idFB872ED45D87455F9E209ECE6461FF51"><enum>102.</enum><header>Clean electricity investment credit</header> <subsection id="idC8CF8C95DD28495BAFA0717235FB9AA3"><enum>(a)</enum><header>Business credit</header> <paragraph id="idEA36917D180D40589468BBA34DE51AF1"><enum>(1)</enum><header>In general</header><text>Subpart E of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after section 48C the following new section:</text> <quoted-block display-inline="no-display-inline" id="id7B8635356FB444D49337F3A6042970B6" style="OLC"> <section id="idB07991BF630B4348AF2918029C3BF3FA"><enum>48D.</enum><header>Clean electricity investment credit</header> <subsection id="id9687787E5C6B47B4809A5185B447C9B1"><enum>(a)</enum><header>Investment credit for qualified property</header> <paragraph id="id45FB3B4FE0544A778220CA3BF5AE9C01"><enum>(1)</enum><header>In general</header><text>For purposes of section 46, the clean electricity investment credit for any taxable year is—</text> <subparagraph id="id4A9AB379ACD142DDB1978553FC6C5972"><enum>(A)</enum><text>except as provided in subparagraph (B), an amount equal to 30 percent of the qualified investment for such taxable year with respect to—</text> <clause id="idA714A1A27A7240EA9F9206DDDBB5331B"><enum>(i)</enum><text>any qualified facility, and </text></clause> <clause id="idD51DB19CAE6A41AF819D31689EE7D66A"><enum>(ii)</enum><text>any grid improvement property, and</text></clause></subparagraph> <subparagraph id="idF049AF285E4445E69A1A527A1DA6D401"><enum>(B)</enum><text>in the case of a qualified facility which is a microgrid, an amount equal to the product of—</text> <clause id="idD45B952C282D4775BD629A55C3B61294"><enum>(i)</enum><text>30 percent of the qualified investment for such taxable year with respect to such microgrid, and</text></clause> <clause id="id500D7BC49CE24D3A9D00E0A23576E1AC"><enum>(ii)</enum><text>the relative avoided emissions rate with respect to such microgrid (as determined under subsection (b)(3)(C)(iv)).</text></clause></subparagraph></paragraph> <paragraph id="idD61D361E00354ACB86371A57E8B98849"><enum>(2)</enum><header>Disadvantaged communities</header> <subparagraph id="id90BBA13E6D3C4A1B840BE862BE314B2D"><enum>(A)</enum><header>In general</header><text>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 <quote>40 percent</quote> for <quote>30 percent</quote>.</text></subparagraph> <subparagraph id="id51257F47721F42F781E9102F1802C9E7"><enum>(B)</enum><header>Disadvantaged community</header><text>For purposes of this paragraph, the term <term>disadvantaged community</term> has the same meaning given the term <term>low-income community</term> in section 45D(e)(1).</text></subparagraph></paragraph></subsection> <subsection id="id06B80D367C3B41D8A1508900CD88808F"><enum>(b)</enum><header>Qualified investment with respect to any qualified facility</header> <paragraph id="id2747F23C4B994463B6473A89403E3C28"><enum>(1)</enum><header>In general</header><text>For purposes of subsection (a), the qualified investment with respect to any qualified facility for any taxable year is the basis of any qualified property placed in service by the taxpayer during such taxable year which is part of a qualified facility.</text></paragraph> <paragraph id="idED297A935E854E3BA8FA00EC7CA16C56"><enum>(2)</enum><header>Qualified property</header><text>The term <term>qualified property</term> means property—</text> <subparagraph id="idD4244F60D4474ECDA06DEE045C43B711"><enum>(A)</enum><text>which is—</text> <clause id="id41252B9825FE49D6BAFFAB520751C5F3"><enum>(i)</enum><text>tangible personal property, or</text></clause> <clause id="id89DA87556E794619A517AE4022059F1C"><enum>(ii)</enum><text>other tangible property (not including a building or its structural components), but only if such property is used as an integral part of the qualified facility,</text></clause></subparagraph> <subparagraph id="id965D30A3168B48779A51B8CFDAFE41E8"><enum>(B)</enum><text>with respect to which depreciation (or amortization in lieu of depreciation) is allowable,</text></subparagraph> <subparagraph id="id1C58F2B26E524345A1CCF559681D658D"><enum>(C)</enum><text>which is constructed, reconstructed, erected, or acquired by the taxpayer, and</text></subparagraph> <subparagraph id="id9C1DC0C4E7EC4A269F76728F3561D036"><enum>(D)</enum><text>the original use of which commences with the taxpayer.</text></subparagraph></paragraph> <paragraph commented="no" id="id50EFAC86145E4B2FA6DCADDB92D6C324"><enum>(3)</enum><header>Qualified facility</header> <subparagraph commented="no" id="id0DD72732BA6A457D9491AFAE21510678"><enum>(A)</enum><header>In general</header><text>For purposes of this section, the term <term>qualified facility</term> means a facility—</text> <clause commented="no" id="idDEF662C7BD2D454F89F60AB3BE746955"><enum>(i)</enum><text>which is used for the generation of electricity,</text></clause> <clause commented="no" id="id8837901CD6FA4369AB9EB459D92B73D4"><enum>(ii)</enum><text>which is originally placed in service after December 31, 2022, </text></clause> <clause commented="no" id="id1AA6486FD7B6483DB5B422E59FB84999"><enum>(iii)</enum><text>for which the anticipated greenhouse gas emissions rate (as determined under clause (ii)) is not greater than zero, and</text></clause> <clause commented="no" id="id9C942E94B9AE42AEB9C2B05E1DBDD6F6"><enum>(iv)</enum><text>in the case of any facility with a total nameplate capacity equal to or greater than 1 megawatt, which—</text> <subclause commented="no" id="id9D71C080633C4BD0B5135671631D1546"><enum>(I)</enum><text>satisfies the requirements under subparagraph (B)(iii), and</text></subclause> <subclause commented="no" id="id058837F1BA5B455E81CE6B2AC8354DD6"><enum>(II)</enum><text>with respect to the construction of such facility, satisfies the requirements under section 601 of the <short-title>Clean Energy for America Act</short-title>.</text></subclause></clause></subparagraph> <subparagraph commented="no" id="idECA9F006A4554B6D937FAD3E4742A114"><enum>(B)</enum><header>Additional rules</header> <clause commented="no" id="id5F4510D1D7294B70BD674244F9E084E7"><enum>(i)</enum><header>Expansion of facility; incremental production</header><text>Rules similar to the rules of section 45U(b)(1)(B) shall apply for purposes of this paragraph.</text></clause> <clause commented="no" id="id524EEC4E5C274772BE853AC52BA97E35"><enum>(ii)</enum><header>Establishment of emissions rates for qualified facilities</header> <subclause commented="no" id="idA8AFCC6485A94C8EAD496FF263FB2FC6"><enum>(I)</enum><header>In general</header><text>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.</text></subclause> <subclause commented="no" id="idBFF5D4FB397645E78A1D68D61558FDB2"><enum>(II)</enum><header>Publishing emissions rates</header><text>The Secretary shall publish a table that sets forth the greenhouse gas emissions rates for similar types or categories of facilities. </text></subclause></clause> <clause commented="no" id="id44685A5CA76146F98904A812D5FCF906"><enum>(iii)</enum><header>Wage requirements</header><text>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—</text> <subclause commented="no" id="id38ADB33058F24C0ABEAA90ABE8A7FFCD"><enum>(I)</enum><text>the construction of such facility, or</text></subclause> <subclause commented="no" id="idCB2D921970B448EEAA142A24ACB2688B"><enum>(II)</enum><text>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,</text></subclause><continuation-text continuation-text-level="clause">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 <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code. </continuation-text></clause></subparagraph> <subparagraph commented="no" id="idF80261CE27F34535A95486457AF66936"><enum>(C)</enum><header>Microgrids</header> <clause commented="no" id="idAA4FE4CC245244CE8EECCBEE4B2FA7EE"><enum>(i)</enum><header>In general</header><text>For purposes of this section, the term <term>qualified facility</term> shall include any microgrid.</text></clause> <clause id="id7264FCDAEC2A45608371D6F79E167208"><enum>(ii)</enum><header>Microgrid</header><text>For purposes of this section, the term <term>microgrid</term> means an interconnected system of distributed energy resources used for the generation of electricity which—</text> <subclause id="id4E23914296C742849826A1CC142C50BB"><enum>(I)</enum><text>is contained within a clearly defined electrical boundary and has the ability to operate as a single and controllable entity,</text></subclause> <subclause id="id2513F5AB314E4539A8B569C2FA6ACFF9"><enum>(II)</enum><text>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</text></subclause> <subclause id="idA5323863357B4BB38E0802F76026EE41"><enum>(III)</enum><text>has no point of interconnection to the applicable grid region with a throughput capacity in excess of 20 megawatts.</text></subclause></clause> <clause id="id8D8201CBB80D46B18AFA9E8ED14A0E61"><enum>(iii)</enum><header>Applicable grid region</header><text>For purposes of this subparagraph, the term <term>applicable grid region</term> means a set of power plants and transmission lines which are—</text> <subclause id="id45555A55B0D64547AE57550CCAF032F7"><enum>(I)</enum><text>under the control of a single grid operator, and</text></subclause> <subclause id="idD4E05CB97D4A4D3C93109ADD5A88837F"><enum>(II)</enum><text>interconnected to the microgrid. </text></subclause></clause> <clause id="idBA72F81EBE8B4BF5824E63144997ED11"><enum>(iv)</enum><header>Relative avoided emissions rate</header> <subclause id="idEFB821D8815241B497D83DA297D5689F"><enum>(I)</enum><header>In general</header><text>For purposes of subsection (a)(1)(B)(ii), the relative avoided emissions rate shall be the amount equal to the quotient of—</text> <item id="id67F7C446C8BD451A9E98238015AEBDF2"><enum>(aa)</enum><text>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</text></item> <item id="idF63DEAC10CBA4E07A108FE3A9B55D981"><enum>(bb)</enum><text>the non-baseload output emissions rate for the applicable grid region.</text></item></subclause> <subclause id="id186F69CCC3C44329B0405EE18733F849"><enum>(II)</enum><header>Non-baseload output emissions rate</header> <item id="id0D06913BEC5E4612BB80FBCA37EEE5EA"><enum>(aa)</enum><header>In general</header><text>For purposes of this subparagraph, the term <term>non-baseload output emissions rate</term> 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<subscript>2</subscript>e per KWh) above baseload.</text></item> <item id="id596472CB85BB4A9BBF799075D1BFA71C"><enum>(bb)</enum><header>Determination</header><text>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.</text></item></subclause> <subclause id="idB96920E0005D4272A8127951F0239B4E"><enum>(III)</enum><header>Greenhouse gas emissions rate</header><text>For purposes of this subparagraph, the term <term>greenhouse gas emissions rate</term> has the same meaning given such term under section 45U(b)(2).</text></subclause></clause></subparagraph> <subparagraph commented="no" id="id58720FEC4F764B5F85519BA3398A273F"><enum>(D)</enum><header>Exclusion</header><text>The term <term>qualified facility</term> 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.</text></subparagraph></paragraph> <paragraph commented="no" id="id8FBA286CC94246D6AD219448E6EA11CC"><enum>(4)</enum><header>Coordination with rehabilitation credit</header><text>The qualified investment with respect to any qualified facility for any taxable year shall not include that portion of the basis of any property which is attributable to qualified rehabilitation expenditures (as defined in section 47(c)(2)).</text></paragraph></subsection> <subsection id="id3ADE7BD2A3A34DC4AD359CA8F6C03B22"><enum>(c)</enum><header>Qualified investment with respect to grid improvement property</header> <paragraph id="id615FDC935F9F4FD2966A39E9EA647CAD"><enum>(1)</enum><header>In general</header> <subparagraph id="idAF7EC8AB6EAE4D929A1BE2F0A430CDFD"><enum>(A)</enum><header>Qualified investment</header><text>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.</text></subparagraph> <subparagraph id="id3C559F3146B74BCD8CC12FF73F95EB9C"><enum>(B)</enum><header>Grid improvement property</header><text>For purposes of this section, the term <term>grid improvement property</term> means any energy storage property or qualified transmission property which—</text> <clause id="id001CEAA00E244661B5A4E7C9BDEA959D"><enum>(i)</enum><text>satisfies the requirements under paragraph (4), and</text></clause> <clause id="id6CFBAD7572DD4DD1B14BE87E52659FD3"><enum>(ii)</enum><text>with respect to the construction of such property, satisfies the requirements under section 601 of the <short-title>Clean Energy for America Act</short-title>.</text></clause></subparagraph></paragraph> <paragraph id="idD28FDE046E724AD79277CA1DDCB8E0DC"><enum>(2)</enum><header>Energy storage property</header><text>For purposes of this subsection, the term <term>energy storage property</term> means property—</text> <subparagraph id="id23E424455E0B4A01BF95C28C01921DCB"><enum>(A)</enum><text>which receives, stores, and delivers electricity, or energy for conversion to electricity, provided that such electricity is—</text> <clause id="idDFBE4BCB0DD2453D97A1F0F8353AB54E"><enum>(i)</enum><text>sold by the taxpayer to an unrelated person, or</text></clause> <clause id="id2D87F3AA51684ADEAA0D1065119CB9C9"><enum>(ii)</enum><text>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,</text></clause></subparagraph> <subparagraph commented="no" id="id745CEE00A8494ABFBDB6B1138249823C"><enum>(B)</enum><text>with respect to which depreciation is allowable,</text></subparagraph> <subparagraph commented="no" id="id97B4B1A2E18B433588F8D82944B7FA1B"><enum>(C)</enum><text>which is constructed, reconstructed, erected, or acquired by the taxpayer,</text></subparagraph> <subparagraph commented="no" id="id19090AAFA2EE48F8AEC68B3E134D8BDB"><enum>(D)</enum><text>the original use of which commences with the taxpayer,</text></subparagraph> <subparagraph commented="no" id="id62EE6E3F81094BC1881BDC4A24C01A11"><enum>(E)</enum><text>which has a capacity of not less than 5 kilowatt hours, and</text></subparagraph> <subparagraph commented="no" id="id081956975C0B48628D10C80471030728"><enum>(F)</enum><text>which is placed in service after December 31, 2021.</text></subparagraph></paragraph> <paragraph commented="no" id="idDD7D48E142814591961A0C4720AF2125"><enum>(3)</enum><header>Qualified transmission property</header> <subparagraph commented="no" id="id1F071FEBF51A4EB5A82BF4862807968F"><enum>(A)</enum><header>In general</header><text>For purposes of this subsection, the term <term>qualified transmission property</term> means—</text> <clause commented="no" id="id3C0B15A36C9740779EFE1F05D05ED59F"><enum>(i)</enum><text>any overhead, submarine, or underground transmission property which is capable of transmitting electricity at a voltage of not less than 275 kilovolts, and</text></clause> <clause commented="no" id="id5278A2AFE7BF42D99659447D88319C4D"><enum>(ii)</enum><text>any other equipment necessary for the operation of a new circuit, including equipment listed as <quote>transmission plant</quote> 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.</text></clause></subparagraph> <subparagraph commented="no" id="idA8C158FEA3904403AAA1003A2DE9102F"><enum>(B)</enum><header>Exclusion</header><text>The term <term>qualified transmission property</term> shall not include any property used for distribution of electricity.</text></subparagraph></paragraph> <paragraph commented="no" id="idBDEDD10086584F1EA9BCAD7D7A36AA84"><enum>(4)</enum><header>Wage requirements</header><text>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—</text> <subparagraph commented="no" id="id144D17F637D548548FC719714690DB1E"><enum>(A)</enum><text>the construction of such property, or</text></subparagraph> <subparagraph commented="no" id="id6F0C3F83358C40FB85A4088BE8C618FA"><enum>(B)</enum><text>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,</text></subparagraph><continuation-text continuation-text-level="paragraph">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 <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code. </continuation-text></paragraph></subsection> <subsection id="id78D32C9F48A9403EAA7632E2A0B17071"><enum>(d)</enum><header>Certain progress expenditure rules made applicable</header><text>Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of subsection (a).</text></subsection> <subsection id="idC9D883B3ADEA4FC2AA10CD8C6B063C83"><enum>(e)</enum><header>Credit phase-Out</header> <paragraph id="id8DD686E9ABCA4A688903A99F8E2D633A"><enum>(1)</enum><header>In general</header><text>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—</text> <subparagraph id="id701E1DF6DCF445E18E1FBD79B09610DC"><enum>(A)</enum><text>the amount of the credit determined under subsection (a) without regard to this subsection, multiplied by</text></subparagraph> <subparagraph id="idB381C8D0DE5A4E5DB689158CC9EB750B"><enum>(B)</enum><text>the phase-out percentage under paragraph (2).</text></subparagraph></paragraph> <paragraph id="idC1E8416BF3C1419CA2843E137C804DB2"><enum>(2)</enum><header>Phase-out percentage</header><text>The phase-out percentage under this paragraph is equal to—</text> <subparagraph id="id5146EF4F8DE844F79C54BED05791C2BC"><enum>(A)</enum><text>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,</text></subparagraph> <subparagraph id="id5242EDE3D363496990C206D671B7C395"><enum>(B)</enum><text>for property the construction of which begins during the second calendar year following such determination year, 75 percent,</text></subparagraph> <subparagraph id="idE788E118C0564A39B9A3C2923C533F60"><enum>(C)</enum><text>for property the construction of which begins during the third calendar year following such determination year, 50 percent, and</text></subparagraph> <subparagraph commented="no" id="idFBD8A0BC321A4AB1874C78CAF24F7F49"><enum>(D)</enum><text>for property the construction of which begins during any calendar year subsequent to the year described in subparagraph (C), 0 percent.</text></subparagraph></paragraph></subsection> <subsection id="id2A6807C4C84441CDB10DF671674E6682" commented="no"><enum>(f)</enum><header>Greenhouse gas</header><text>In this section, the term <term>greenhouse gas</term> has the same meaning given such term under section 45U(e)(2).</text></subsection> <subsection commented="no" id="id6B484413E78D4A30AD487D6D53980253"><enum>(g)</enum><header>Recapture of credit</header><text>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.</text></subsection> <subsection id="id6BAEA496185540DD9ECF38FD451BE3A3"><enum>(h)</enum><header>Final guidance</header><text>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.</text></subsection> <subsection id="id6A9769378F4846319C3A02F04CCC23D2"><enum>(i)</enum><header>Election for direct payment</header> <paragraph id="id9B5F57FB94AF40929EA5A47A0C44BF19"><enum>(1)</enum><header>In general</header><text>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).</text></paragraph> <paragraph id="id8DA301366B064D8D93A1784FA8092C40"><enum>(2)</enum><header>Form and effect of election</header><text>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—</text> <subparagraph id="id5A411F720666488AA7863D495C2784C1"><enum>(A)</enum><text>be irrevocable with respect to the qualified property or grid improvement property to which such election applies, and</text></subparagraph> <subparagraph id="id8DD0880EC9554061BE0F66F85D9E3431"><enum>(B)</enum><text>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.</text></subparagraph></paragraph> <paragraph id="idD33250F4063D4C12BC3CE159DBB74C65"><enum>(3)</enum><header>Application to partnerships and S corporations</header><text>Rules similar to the rules of section 45U(h)(3) shall apply for purposes of this subsection.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="HF60E690C5B90476B84E503DCAF0B98D9"><enum>(2)</enum><header>Public utility property</header><text>Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/50">section 50(d)</external-xref> is amended—</text> <subparagraph id="H6105F89795274720A1373C6BB91BF371"><enum>(A)</enum><text>by adding after the first sentence the following new sentence: <quote>At the election of a taxpayer, this paragraph shall not apply to any grid improvement property (as defined in section 48D(c)(1)(B)), provided—</quote>, and</text></subparagraph> <subparagraph id="H7F18D3FDB3BF4EFBA46AA90E0B7F6582"><enum>(B)</enum><text>by adding the following new subparagraphs:</text> <quoted-block id="H893AFA84A9E14394BA51526729D79D66" style="OLC"> <subparagraph id="H8D0C288117B54C85B485BFC13033CC04"><enum>(A)</enum><text>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),</text></subparagraph> <subparagraph id="H75A10F93A5204BC1B9119A43944B7CA3"><enum>(B)</enum><text>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</text></subparagraph> <subparagraph id="HD86551B92F7C408DB9500DCD67A7900C"><enum>(C)</enum><text>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.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="id8781D955902146CD8FE67D1937737CBC"><enum>(3)</enum><header>Conforming amendments</header> <subparagraph id="id845610CA0691489492FCFA81C43D5CC5"><enum>(A)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/46">Section 46</external-xref> is amended—</text> <clause id="idD9332381A77D4512B850056A3E8F7404"><enum>(i)</enum><text>by striking “and” at the end of paragraph (5),</text></clause> <clause id="id5345A7DF6DA946488A15EE816DD511C8"><enum>(ii)</enum><text>by striking the period at the end of paragraph (6) and inserting “, and”, and</text></clause> <clause id="idFAF43DC751694CA3BFB9DA21B22773D7"><enum>(iii)</enum><text>by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="id4382DFCC6D31463D85BC8895CB01CDDE" style="OLC"> <paragraph id="idAC133AF182F642908D4C042A5EFF5C85"><enum>(7)</enum><text>the clean electricity investment credit.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph> <subparagraph id="idCB6CDB97A3D4408EBCEA8485BD721D93"><enum>(B)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/49">Section 49(a)(1)(C)</external-xref> is amended—</text> <clause id="id9D8BB3240A244DF0BDE328B41A437B35"><enum>(i)</enum><text>by striking “and” at the end of clause (iv),</text></clause> <clause id="id8D6BE6ABA5F642ECA73C63CF248AC2B8"><enum>(ii)</enum><text>by striking the period at the end of clause (v) and inserting a comma, and</text></clause> <clause id="id0E2744E545E54EC9976F52798597B348"><enum>(iii)</enum><text>by adding at the end the following new clauses:</text> <quoted-block display-inline="no-display-inline" id="id373F5241DA4840DA9DE30320ACB87E89" style="OLC"> <clause id="id93BED6C037B34C8F97B1503E0CF650EF"><enum>(vi)</enum><text>the basis of any qualified property which is part of a qualified facility under section 48D, and</text></clause> <clause id="id63D545B5EA2B44E392B559BA2D2CC51C"><enum>(vii)</enum><text>the basis of any energy storage property under section 48D.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph> <subparagraph id="id78267879F469487F81B68867D0CDC5C8"><enum>(C)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/50">Section 50(a)(2)(E)</external-xref> is amended by striking <quote>or 48C(b)(2)</quote> and inserting <quote>48C(b)(2), or 48D(e)</quote>.</text></subparagraph> <subparagraph id="id39A61BFEAFE545398BB47A9D5BBAD327"><enum>(D)</enum><text>The table of sections for subpart E of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after the item relating to section 48C the following new item:</text> <quoted-block display-inline="no-display-inline" id="id254F448ACD20498EB6A5BA9F9718AC8C" style="OLC"> <toc> <toc-entry bold="off" level="section">48D. Clean electricity investment credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="id06EA1F3C37AB40F8B860C5E47F7EE419"><enum>(4)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to property placed in service after December 31, 2022, under rules similar to the rules of <external-xref legal-doc="usc" parsable-cite="usc/26/48">section 48(m)</external-xref> of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).</text></paragraph></subsection> <subsection id="id77FC4DF43609448B8DD491AB47D94CBF"><enum>(b)</enum><header>Individual credit</header> <paragraph id="id55014D67995D417E8ADE1610ED6EEFC2"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25D">Section 25D</external-xref> is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="id4756BE2E3BD740499BB7C7A1EE75184D" style="OLC"> <section id="idD5FCC0EF02DD4993B0A38979D085C112"><enum>25D.</enum><header>Residential clean electricity credit</header> <subsection id="id5E97CE7691B345CFB0E73D3DEE40A9DF"><enum>(a)</enum><header>Allowance of credit</header><text>In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 30 percent of the expenditures made by the taxpayer for any qualified property and any energy storage property which is—</text> <paragraph id="idAF2951FA62D04A89B45A2EE7204F4529"><enum>(1)</enum><text>for use in connection with a dwelling unit which is located in the United States and used as a residence by the taxpayer, and</text></paragraph> <paragraph id="id9D659EF25114425891B0E78F85E6AD9F"><enum>(2)</enum><text>placed in service during such taxable year.</text></paragraph></subsection> <subsection id="id1F38449B54E64323BF86E8090ACCA15D"><enum>(b)</enum><header>Qualified property</header> <paragraph id="id5822DF5D996C49A388FF53CD21C75132"><enum>(1)</enum><header>In general</header><text>The term <term>qualified property</term> means property—</text> <subparagraph id="id436126C4FBC74503806D1C0384EB6492"><enum>(A)</enum><text>which is tangible personal property,</text></subparagraph> <subparagraph id="id371EF50D9C7D4575848280324C6F8EC4"><enum>(B)</enum><text>which is used for the generation of electricity,</text></subparagraph> <subparagraph id="id6BEB370BC2374F2BBB9F9F42749AC2FE"><enum>(C)</enum><text>which is constructed, reconstructed, erected, or acquired by the taxpayer,</text></subparagraph> <subparagraph id="idB1A9B84832084C04831D8AC4D6117C15"><enum>(D)</enum><text>the original use of which commences with the taxpayer,</text></subparagraph> <subparagraph id="idCCBBE6F0298E4FCD8081507E52D117F9"><enum>(E)</enum><text>which is originally placed in service after December 31, 2022, and</text></subparagraph> <subparagraph id="idEE94777955794FC9A88DDC469726B16B"><enum>(F)</enum><text>for which the anticipated greenhouse gas emissions rate (as determined under paragraph (2)) is not greater than zero.</text></subparagraph></paragraph> <paragraph commented="no" id="id43514B327DEA492EB0729BE1A10BEEC1"><enum>(2)</enum><header>Establishment of emissions rates for qualified property</header> <subparagraph commented="no" id="id2C846AB56592476FBB61420C243247BC"><enum>(A)</enum><header>In general</header><text>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.</text></subparagraph> <subparagraph commented="no" id="id69DD6106CBCB426A8B4C61BDD825C635"><enum>(B)</enum><header>Publishing emissions rates</header><text>The Secretary shall publish a table that sets forth the greenhouse gas emissions rates for similar types or categories of qualified property. </text></subparagraph></paragraph></subsection> <subsection id="id3D83BBE644A4441CB038EB2819D3D54F"><enum>(c)</enum><header>Energy storage property</header><text>The term <term>energy storage property</term> means property which—</text> <paragraph id="id48C0B0F672854492B0A10D8576B8A95C"><enum>(1)</enum><text>receives, stores, and delivers electricity or energy for conversion to electricity which is consumed or sold by the taxpayer,</text></paragraph> <paragraph id="id92C3B615FFCD4EABB3CBACC7B312FA8A"><enum>(2)</enum><text>is equipped with a metering device which is owned and operated by an unrelated person, and</text></paragraph> <paragraph id="idC70EA50A149D4431A2E882A255B9CA10"><enum>(3)</enum><text>has a capacity of not less than 3 kilowatt hours.</text></paragraph></subsection> <subsection commented="no" id="idC77B234BB6EA439AB016BDF508C57733"><enum>(d)</enum><header>Carryforward of unused credit</header> <paragraph commented="no" id="idED451E4C5212430AB2ADBB2DAD865939"><enum>(1)</enum><header>In general</header><text>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.</text></paragraph> <paragraph commented="no" id="idD62FBAAF32A442538CF2CEC17AE125CC"><enum>(2)</enum><header>Limitation</header><text>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—</text> <subparagraph commented="no" id="id621A743D7B2149E4B12F9C316617E95A"><enum>(A)</enum><text>the credit allowable under subsection (a) for which such taxable year determined without regard to this subsection, and</text></subparagraph> <subparagraph commented="no" id="id5584678A44964A19BA84946A9A4F3723"><enum>(B)</enum><text>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.</text></subparagraph></paragraph> <paragraph commented="no" id="id6C857A93BFA748E7A30C5C660E758AF3"><enum>(3)</enum><header>Applicable tax limit</header><text>For purposes of this subsection, the term <term>applicable tax limit</term> 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).</text></paragraph></subsection> <subsection id="idA20CE8A5B0254DFAB326F05C0D1FE0B6"><enum>(e)</enum><header>Credit phase-Out</header> <paragraph id="id497C09A699BF406A815E4F8256B88FA6"><enum>(1)</enum><header>In general</header><text>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—</text> <subparagraph id="id99A670ABA21C4D3481FBE27CF32F8CBA"><enum>(A)</enum><text>the amount of the credit determined under subsection (a) without regard to this subsection, multiplied by</text></subparagraph> <subparagraph id="id91B4E6712585424A86BB56F4FCB8882F"><enum>(B)</enum><text>the phase-out percentage under paragraph (2).</text></subparagraph></paragraph> <paragraph id="idC6AAC0149DC54D11B0DDA8F13EE3AE62"><enum>(2)</enum><header>Phase-out percentage</header><text>The phase-out percentage under this paragraph is equal to—</text> <subparagraph id="idA22AAC3BA46943D9B19E525B36FA6803"><enum>(A)</enum><text>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,</text></subparagraph> <subparagraph id="idFB8E26CB6DC743A8B7A7BB5C7B391437"><enum>(B)</enum><text>for property placed in service during the second calendar year following such determination year, 75 percent,</text></subparagraph> <subparagraph id="idEE3BE467645448148389C7C10714AC5B"><enum>(C)</enum><text>for property placed in service during the third calendar year following such determination year, 50 percent, and</text></subparagraph> <subparagraph commented="no" id="id8DA3AF2D3076425BBF9529592022F96E"><enum>(D)</enum><text>for property placed in service during any calendar year subsequent to the year described in subparagraph (C), 0 percent.</text></subparagraph></paragraph></subsection> <subsection id="idCCFABD05AF534C739C168C435AFE0DE1"><enum>(f)</enum><header>Special rules</header><text>For purposes of this section:</text> <paragraph id="id16F5E92FC12345B6BD37CACFD1F67A8E"><enum>(1)</enum><header>Labor costs</header><text>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.</text></paragraph> <paragraph id="idE48F85DB9DE44BF0866E20DE430F32A1"><enum>(2)</enum><header>Tenant-stockholder in cooperative housing corporation</header><text>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.</text></paragraph> <paragraph id="id9A580100995A4CA08895C9C7D7BAEEEB"><enum>(3)</enum><header>Condominiums</header> <subparagraph id="idC56D5D11697A4944A7E34243653F6FA0"><enum>(A)</enum><header>In general</header><text>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.</text></subparagraph> <subparagraph id="id4FC3BC91FB0C4BDFA1D0B959D0B8040D"><enum>(B)</enum><header>Condominium management association</header><text>For purposes of this paragraph, the term <term>condominium management association</term> 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.</text></subparagraph></paragraph> <paragraph id="id989E008D08184A61B777E247FFF429BC"><enum>(4)</enum><header>Allocation in certain cases</header><text>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.</text></paragraph></subsection> <subsection id="id2F489207526E4209B2C6A15160B8B596"><enum>(g)</enum><header>Basis adjustment</header><text>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.</text></subsection> <subsection id="id94F5DE124EBA40369BBA36F0D9D8366B"><enum>(h)</enum><header>Final guidance</header><text>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.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="idFD0DB0EF3CEE4E898AE3587452372350"><enum>(2)</enum><header>Conforming amendments</header> <subparagraph id="idB1A7606D07AB4737963EE951D4CCC12C"><enum>(A)</enum><text>Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/26/45">section 45(d)</external-xref> is amended by striking <quote>Such term</quote> and all that follows through the period and inserting the following: <quote>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.</quote>.</text></subparagraph> <subparagraph id="id790230ACB8D341599F6CBA9A3B054AFD"><enum>(B)</enum><text>Paragraph (34) of <external-xref legal-doc="usc" parsable-cite="usc/26/1016">section 1016(a)</external-xref> is amended by striking <quote>section 25D(f)</quote> and inserting <quote>section 25D(g)</quote>.</text></subparagraph> <subparagraph id="idC2427E2A350E4D56AEC3F26F832A1926"><enum>(C)</enum><text>The item relating to section 25D in the table of contents for subpart A of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="id42A588A3A87B45D6B5DC1FD817127804" style="OLC"> <toc> <toc-entry bold="off" level="section">Sec. 25D. Residential clean electricity credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="idB5C52BD1825B4EC58BAC068644287EAD"><enum>(3)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after December 31, 2022.</text></paragraph></subsection></section> <section id="id0BBCE77AEAC84D3FA9CA9D200E9F529B"><enum>103.</enum><header>Extensions, modifications, and terminations of various energy provisions</header> <subsection commented="no" id="idD2E396881CEC4AF0BA4FE2D6A472DAD0"><enum>(a)</enum><header>Residential energy efficient property</header> <paragraph commented="no" id="id8623AB69F21A47558FCDBF7B623C43BB"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25D">Section 25D(h)</external-xref> is amended by striking <quote>December 31, 2023</quote> and inserting <quote>December 31, 2022</quote>.</text></paragraph> <paragraph commented="no" id="idF8A1CD8BAB2F4368B3B80F6643DAD823"><enum>(2)</enum><header>Elimination of phase-out</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25D">Section 25D(g)</external-xref> is amended—</text> <subparagraph id="id5B53BDDEFD084EE0929FFF941F9281AB"><enum>(A)</enum><text>in paragraph (1), by adding <quote>and</quote> at the end, </text></subparagraph> <subparagraph id="idA4C06FD704D544978482A7AE69500934"><enum>(B)</enum><text>in paragraph (2), by striking <quote>, and</quote> and inserting a period, and</text></subparagraph> <subparagraph id="id2D013395F00E44F69811CCE49870F1B2"><enum>(C)</enum><text>by striking paragraph (3).</text></subparagraph></paragraph> <paragraph id="id637829C8674B449B90450FF37B3B83B5"><enum>(3)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to property placed in service after the date of enactment of this Act.</text></paragraph></subsection> <subsection commented="no" id="idC6481D4EC32E47ED8B90191704B6796E"><enum>(b)</enum><header>Termination of allocation of unutilized limitation for advanced nuclear power facilities</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45J">Section 45J(b)</external-xref> is amended by striking paragraph (5).</text></subsection> <subsection commented="no" id="idA8568A0F1D34461B8F7418C07A91EBE0"><enum>(c)</enum><header>Modification of credit for carbon dioxide sequestration</header> <paragraph commented="no" id="idD52D07EE95AE45FEA5A9B8AB3E8574CB"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45Q">Section 45Q</external-xref> is amended—</text> <subparagraph commented="no" id="id5F99CCBD27234C2F899F01694B9D13CC"><enum>(A)</enum><text>in subsection (a)(4)(B)(i), by inserting <quote>subject to subsection (f)(8),</quote> before <quote>used by</quote>,</text></subparagraph> <subparagraph commented="no" id="idED2B62D3EEFA4A0C83455EF0F772EDDA"><enum>(B)</enum><text>in subsection (b)(1)—</text> <clause commented="no" id="idCD36AFF9F3AB42F4BE5ABB4C2DA76227"><enum>(i)</enum><text>in subparagraph (A), by striking <quote>The applicable dollar amount</quote> and inserting <quote>Except as provided in subparagraph (B), the applicable dollar amount</quote>,</text></clause> <clause commented="no" id="idF27D49B8F7634D5E9FABB8B8137EC91C"><enum>(ii)</enum><text>by redesignating subparagraph (B) as subparagraph (C),</text></clause> <clause commented="no" id="idD3EB16BEFA4D4BF0BA8518D1F3AC2B95"><enum>(iii)</enum><text>by inserting after subparagraph (A) the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="id2B84A3DEDBC546BF965A3FC7A7DB309F"> <subparagraph commented="no" id="idB02D717A98C845E2BACE23D83EB81451"><enum>(B)</enum><header>Applicable dollar amount for direct air capture facilities</header><text>In the case of any qualified facility described in subsection (d)(1) for which construction begins after the date of enactment of the <short-title>Clean Energy for America Act</short-title>, the applicable dollar amount shall be an amount equal to—</text> <clause commented="no" id="id3C453814408F49969366EBEDE8F31309"><enum>(i)</enum><text>for any taxable year beginning in a calendar year before 2027—</text> <subclause commented="no" id="idB5CE944CE7354B219DC3D5BAEA4F52A4"><enum>(I)</enum><text>for purposes of paragraph (3) of subsection (a), $175, and</text></subclause> <subclause commented="no" id="id4165B1B34B2141B6B5B03C0F680082EB"><enum>(II)</enum><text>for purposes of paragraph (4) of such subsection, $150, and</text></subclause></clause> <clause commented="no" id="id493BDFAA7EFA4D919A1FEDAD37FD0C54"><enum>(ii)</enum><text>for any taxable year beginning in a calendar year after 2026—</text> <subclause commented="no" id="idC09D32D665E74B3BB70C7C5D1F95E8EB"><enum>(I)</enum><text>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 <quote>2025</quote> for <quote>1990</quote>, and</text></subclause> <subclause commented="no" id="id13B5C728EEC34350B24107C64F7A4060"><enum>(II)</enum><text>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 <quote>2025</quote> for <quote>1990</quote>.</text></subclause></clause></subparagraph><after-quoted-block>, and</after-quoted-block></quoted-block></clause> <clause commented="no" id="idBCE8168790674AD5B0CF5EC3BBD33D66"><enum>(iv)</enum><text>in subparagraph (C), as so redesignated, by inserting <quote>or (B)</quote> after <quote>subparagraph (A)</quote>,</text></clause></subparagraph> <subparagraph commented="no" id="idC5BF50CCFE604912A1682077CDCD4D5C"><enum>(C)</enum><text>by striking subsection (d) and inserting the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="id87B416837D8F4BDBB6E7D0D0B19E63A7"> <subsection commented="no" id="idB9E2516A7C4F4B9684F5D826B6CB770E"><enum>(d)</enum><header>Qualified facility</header><text>For purposes of this section, the term <term>qualified facility</term> means—</text> <paragraph commented="no" id="id5368E93917744304BC5066CE6914C326"><enum>(1)</enum><text>any direct air capture facility, and</text></paragraph> <paragraph commented="no" id="idED966194091646558E620607C6F75B2A"><enum>(2)</enum><text>any industrial facility which captures—</text> <subparagraph commented="no" id="idE7CC841E05854B2F8F0AACCC9032DBBF"><enum>(A)</enum><text>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</text></subparagraph> <subparagraph commented="no" id="idF9CAD15DA81C4195B1EBB20A35B843EF"><enum>(B)</enum><text>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.</text></subparagraph></paragraph></subsection><after-quoted-block>,</after-quoted-block></quoted-block></subparagraph> <subparagraph commented="no" id="id1682F22182EB4892B7515B195ED323B6"><enum>(D)</enum><text>in subsection (f), by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="idBE5E87E4058A4616AA9323569E204316"> <paragraph commented="no" id="id0411A05C342C41F7AAAC3B78C0B49DE3"><enum>(8)</enum><header>Elimination of use of carbon oxide as tertiary injectant</header><text>In the case of any qualified facility the construction of which begins after the date of enactment of the <short-title>Clean Energy for America Act</short-title>, subsection (a)(4)(B)(i) shall not apply.</text></paragraph><after-quoted-block>, </after-quoted-block></quoted-block></subparagraph> <subparagraph commented="no" id="id4564EF22F18B4FE8945EE0D5B649A4EE"><enum>(E)</enum><text>by redesignating subsection (h) as subsection (i), and</text></subparagraph> <subparagraph commented="no" id="idEBFA45E0CCA449799BA682FDBCFB05B4"><enum>(F)</enum><text>by inserting after subsection (g) the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="id7A16768188D349EDBABA63A109B18F52"> <subsection id="id76AC8A475DB84D04B212824468A9B752"><enum>(h)</enum><header>Credit phase-Out</header> <paragraph id="idF3037000B67343C4A984FAE7C6C0CF0C"><enum>(1)</enum><header>In general</header> <subparagraph id="id7E4C7A3CE07349F1A6B589854C2B3D6D"><enum>(A)</enum><header>Reduction based on emissions from production of electricity</header><text>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—</text> <clause id="idE3B93A78EE9F4B3B9DC655029073F022"><enum>(i)</enum><text>the amount of the credit determined under subsection (a) without regard to this subsection, multiplied by</text></clause> <clause id="id2F7F2ABD32C24BE5AE1DCF146F3DB40A"><enum>(ii)</enum><text>the phase-out percentage under paragraph (2).</text></clause></subparagraph> <subparagraph id="idD0DAFD3050C84DE59C041B25C2006998"><enum>(B)</enum><header>Other industrial facilities</header><text>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 <quote>industrial sector</quote> for <quote>production of electricity</quote> each place it appears.</text></subparagraph> <subparagraph id="id39CF2563F65B48898D8AE9423D3BF55D"><enum>(C)</enum><header>Direct air capture facilities</header><text>In the case of any qualified facility described in subsection (d)(1), subparagraph (A) shall not apply.</text></subparagraph></paragraph> <paragraph id="id58096A5DD8434851B77BB16FCD0DD130"><enum>(2)</enum><header>Phase-out percentage</header><text>The phase-out percentage under this paragraph is equal to—</text> <subparagraph id="idD215C51A4B3A4642B8371E532F9E042F"><enum>(A)</enum><text>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,</text></subparagraph> <subparagraph id="id47804FEAD6C34B11A21B79AE6BC1A787"><enum>(B)</enum><text>for a facility the construction of which begins during the second calendar year following such determination year, 75 percent,</text></subparagraph> <subparagraph id="id9F0DF1950F45428BB031FFA2647383AE"><enum>(C)</enum><text>for a facility the construction of which begins during the third calendar year following such determination year, 50 percent, and</text></subparagraph> <subparagraph commented="no" id="id7C741370633C40228B27A08E30D7A9BE"><enum>(D)</enum><text>for a facility the construction of which begins during any calendar year subsequent to the year described in subparagraph (C), 0 percent.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph commented="no" id="id7A1CC129B08044EC9D3EF34D3727518E"><enum>(2)</enum><header>Elimination of election for applicable facilities</header> <subparagraph commented="no" id="id49492C43AB10454DBC0B6A61CEA00406"><enum>(A)</enum><header>In general</header><text>Section 45Q(f), as amended by paragraph (1)(C), is amended—</text> <clause commented="no" id="id70FD2AD87EE242CEAA63B6992BB6FBB5"><enum>(i)</enum><text>by striking paragraph (6), and</text></clause> <clause commented="no" id="id7B7594CB590A45CBA3FFFC92519C7FD6"><enum>(ii)</enum><text>by redesignating paragraphs (7) and (8) as paragraphs (6) and (7), respectively.</text></clause></subparagraph> <subparagraph commented="no" id="idF153CC7609324DD59AC6B15501F49EF6"><enum>(B)</enum><header>Conforming amendment</header><text>Section 45Q(a)(4)(B)(i), as amended by paragraph (1)(A), is amended by striking <quote>subsection (f)(8)</quote> and inserting <quote>subsection (f)(7)</quote>.</text></subparagraph></paragraph> <paragraph commented="no" id="idB6C7DE395C614721AC126681FAB23B6E"><enum>(3)</enum><header>Wage requirements</header><text>Section 45Q(f), as amended by paragraphs (1)(C) and (2), is amended by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="id0D21BC39E65E4882A836F19E73E188FF"> <paragraph commented="no" id="idFFE3B1D6D91F4961A6FBE77BF4ACDC4C"><enum>(8)</enum><header>Wage requirements</header> <subparagraph commented="no" id="id4099C165DED74491806D469BEC467BB1"><enum>(A)</enum><header>In general</header><text>The term <term>qualified facility</term> shall not include any facility which fails to satisfy—</text> <clause commented="no" id="id136A359C5EE640D88350BF9BC3DFEA65"><enum>(i)</enum><text>the requirements under subparagraph (B), and</text></clause> <clause commented="no" id="id4F6F8613B592453C8964E092049B5CC3"><enum>(ii)</enum><text>with respect to—</text> <subclause commented="no" id="idFAAD3F263C2841FB969952D828BBD4ED"><enum>(I)</enum><text>the construction of any facility the construction of which begins after the date of enactment of the <short-title>Clean Energy for America Act</short-title>, and</text></subclause> <subclause commented="no" id="idE660538BBA084B1B93B264FC5C8F4FAB"><enum>(II)</enum><text>the construction of any carbon capture equipment,</text></subclause><continuation-text continuation-text-level="clause">the requirements under section 601 of the <short-title>Clean Energy for America Act</short-title>.</continuation-text></clause></subparagraph> <subparagraph commented="no" id="idCEDA335AD8E64C4E99C78B15C790C62B"><enum>(B)</enum><header>Requirements</header><text>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— </text> <clause commented="no" id="idE97578230623434D988F50973364B4D4"><enum>(i)</enum><text>in the case of any facility the construction of which begins after the date of enactment of the <short-title>Clean Energy for America Act</short-title>, the construction of such facility, or</text></clause> <clause commented="no" id="idEEDB0CFC7EA24870AB5E99B81359D342"><enum>(ii)</enum><text>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,</text></clause><continuation-text continuation-text-level="subparagraph">shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality as determined by the Secretary of Labor, in accordance with subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code.</continuation-text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph commented="no" id="idAB4DA1CC386F44638A3CDB178B8470A5"><enum>(4)</enum><header>Election for direct payment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45Q">Section 45Q</external-xref>, as amended by the preceding paragraphs of this subsection, is amended—</text> <subparagraph commented="no" id="id0041F6265AFE4C618A92C5A29CACCE8E"><enum>(A)</enum><text>by redesignating subsection (i) as subsection (j), and</text></subparagraph> <subparagraph commented="no" id="id368DDC441B9D432684F62CFFCDEEA1C3"><enum>(B)</enum><text>by inserting after subsection (h) the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="id0D61002CFB8D4EB8A60B49BBB6467FEC"> <subsection id="idB05D3AA7C3DA48D28087B51D0E7E4E5B"><enum>(i)</enum><header>Election for direct payment</header> <paragraph id="id68D63769239447D2B1E8221E6D2C0916"><enum>(1)</enum><header>In general</header><text>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. </text></paragraph> <paragraph id="idC4DDB97AAEE544CA8D5A1358C1FE83D6"><enum>(2)</enum><header>Form and effect of election</header><text>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—</text> <subparagraph id="id9D71C75CB7904C01807BD1FDD0BF7DDD"><enum>(A)</enum><text>be irrevocable with respect to such carbon capture equipment for the period described in paragraph (3)(A) or (4)(A) of subsection (a), and</text></subparagraph> <subparagraph id="id7AC20C1009D24B4382571D5366519444"><enum>(B)</enum><text>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.</text></subparagraph></paragraph> <paragraph id="idE2FBAE6FCE7446B0B471EF4FF9AA1977"><enum>(3)</enum><header>Application to partnerships and S corporations</header><text>Rules similar to the rules of section 45U(h)(3) shall apply for purposes of this subsection.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph commented="no" id="id3A655AC5C0F04564ABC0F78BEBA700B1"><enum>(5)</enum><header>Effective dates</header> <subparagraph commented="no" id="id7AB82C52CA034E789DC06071A0859F7A"><enum>(A)</enum><header>In general</header><text>The amendments made by paragraph (1) shall apply to facilities the construction of which begins after the date of enactment of this Act.</text></subparagraph> <subparagraph commented="no" id="idDFB79F4864C84229BC072B2359620D9C"><enum>(B)</enum><header>Elimination of election for applicable facilities</header><text>The amendments made by paragraph (2) shall take effect on the date of enactment of this Act.</text></subparagraph> <subparagraph commented="no" id="id4572E52420F44410BE1E7DFF1CCBA463"><enum>(C)</enum><header>Wage requirements</header><text>The amendments made by paragraph (3) shall apply to facilities or equipment the construction of which begins after December 31, 2021.</text></subparagraph> <subparagraph commented="no" id="id5B6FF43999624CAA8E8400A4BF2FEEBF"><enum>(D)</enum><header>Election for direct payment</header><text>The amendments made by paragraph (4) shall apply to equipment the construction of which begins after December 31, 2021.</text></subparagraph></paragraph></subsection> <subsection id="id5416450A2A814DE1A423A83DBC18CA5F"><enum>(d)</enum><header>Modification of credits for energy property</header> <paragraph id="idC85186455C8E4E7C88028407376148DD"><enum>(1)</enum><header>Solar energy property</header><text>Subclause (II) of <external-xref legal-doc="usc" parsable-cite="usc/26/48">section 48(a)(2)(A)(i)</external-xref> is amended by striking <quote>January 1, 2024</quote> and inserting <quote>January 1, 2023</quote>.</text></paragraph> <paragraph id="id86DC292F2212464FB4AF7205D285BF0C"><enum>(2)</enum><header>Phase-outs</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)</external-xref> is amended—</text> <subparagraph id="id50D8212ECE3343DD8819C74204A5DE46"><enum>(A)</enum><text>in paragraph (6)—</text> <clause id="id57EE4DCB7BE140A4A0D2F81A3C237E01"><enum>(i)</enum><text>by striking subparagraph (A) and inserting the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="id5F6B17D3D54E475C884192B178B2535F"> <subparagraph id="id485949B433ED4C16A74E20F2275A9CB0"><enum>(A)</enum><header>In general</header><text>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.</text></subparagraph><after-quoted-block>, and</after-quoted-block></quoted-block></clause> <clause id="id6259605D7CE54C55871CBC8E8CD429AD"><enum>(ii)</enum><text>in subparagraph (B), by striking <quote>January 1, 2024</quote> and inserting <quote>January 1, 2023</quote>, and</text></clause></subparagraph> <subparagraph id="idB73B4F711FA6402087051338288C5EAD"><enum>(B)</enum><text>in paragraph (7), by striking subparagraph (A) and inserting the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="idA2070B663B0A4B11ADD0114126018B5C"> <subparagraph id="id5C3B5C5123CE4908982108DBEDDE7D48"><enum>(A)</enum><header>In general</header><text>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.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="id3B00AF5AF17143E68121C00057BCF237"><enum>(3)</enum><header>Effective date</header><text>The amendments made by this subsection shall take effect on the date of enactment of this Act.</text></paragraph></subsection> <subsection commented="no" id="HD1C9C9269AB246218F46748686FF736C"><enum>(e)</enum><header>Energy credit</header> <paragraph commented="no" id="id91B766401DB04AE3A3E640660630285A"><enum>(1)</enum><header>Solar energy property</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(3)(A)</external-xref> is amended—</text> <subparagraph commented="no" id="idBF903793C76D4C64B1F2F3B9A4C2D76C"><enum>(A)</enum><text>in clause (i), by inserting <quote>but only with respect to property the construction of which begins before January 1, 2023,</quote> after <quote>swimming pool,</quote>, and</text></subparagraph> <subparagraph commented="no" id="id3AD400D813254FD995984D9901B79B03"><enum>(B)</enum><text>in clause (ii), by striking <quote>January 1, 2024</quote> and inserting <quote>January 1, 2023</quote>.</text></subparagraph></paragraph> <paragraph commented="no" id="id3E120E74ED3142F4AB174AF61473FEF5"><enum>(2)</enum><header>Geothermal energy property</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(3)(A)(iii)</external-xref> is amended by inserting <quote>with respect to property the construction of which begins before January 1, 2023, and</quote> after <quote>but only</quote>.</text></paragraph> <paragraph commented="no" id="idCBB9D1CC7E43412E8A12E5CA1988B779"><enum>(3)</enum><header>Qualified offshore wind facilities</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(5)(F)</external-xref> is amended by striking <quote>January 1, 2026</quote> each place it appears and inserting <quote>January 1, 2023</quote>.</text></paragraph> <paragraph commented="no" id="H023C5CD72C1E41E3935E7CC45C570052"><enum>(4)</enum><header>Qualified fuel cell property</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(c)(1)(D)</external-xref> is amended by striking <quote>January 1, 2024</quote> and inserting <quote>January 1, 2023</quote>.</text></paragraph> <paragraph commented="no" id="H40170BC0F87449B6B0CF15D5F9FB8E0C"><enum>(5)</enum><header>Qualified microturbine property</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(c)(2)(D)</external-xref> is amended by striking <quote>January 1, 2024</quote> and inserting <quote>January 1, 2023</quote>.</text></paragraph> <paragraph commented="no" id="H677F680D0CEE4E0AB03ED5A11141383B"><enum>(6)</enum><header>Combined heat and power system property</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(c)(3)(A)(iv)</external-xref> is amended by striking <quote>January 1, 2024</quote> and inserting <quote>January 1, 2023</quote>.</text></paragraph> <paragraph commented="no" id="HE3E1C973E82247CDA2861FAE8AE9DBD8"><enum>(7)</enum><header>Qualified small wind energy property</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(c)(4)(C)</external-xref> is amended by striking <quote>January 1, 2024</quote> and inserting <quote>January 1, 2023</quote>.</text></paragraph> <paragraph commented="no" id="idA9B1E72DCABC45E796990B208A2C4D6F"><enum>(8)</enum><header>Waste energy recovery property</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(c)(5)(D)</external-xref> is amended by striking <quote>January 1, 2024</quote> and inserting <quote>January 1, 2023</quote>.</text></paragraph></subsection> <subsection commented="no" id="idE1826FAF51404AA989CB5F11480B2252"><enum>(f)</enum><header>Cost recovery for qualified facilities, qualified property, and grid improvement property</header> <paragraph commented="no" id="idC92F7500ECA843959B0D2080242F30AD"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/168">Section 168(e)(3)(B)</external-xref> is amended—</text> <subparagraph commented="no" id="id4253C9CF7B4A4D11A2F5320FDC8E153F"><enum>(A)</enum><text>in clause (vi)(III), by striking <quote>and</quote> at the end,</text></subparagraph> <subparagraph commented="no" id="idFCF0B72CA67042358045E10AAAAD3966"><enum>(B)</enum><text>in clause (vii), by striking the period at the end and inserting <quote>, and</quote>, and</text></subparagraph> <subparagraph commented="no" id="id796058237D66421FBEBB254254BF9D48"><enum>(C)</enum><text>by inserting after clause (vii) the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="idB330780D919D4BEAA4FF7A8395574C3B"> <clause commented="no" id="idFC4329672A0F4BF48BDCD5310563A594"><enum>(viii)</enum><text>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).</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="HEEA3BC4A56A44F23BDB279EE1C8549F3"><enum>(2)</enum><header>Alternative system</header><text>The table contained in <external-xref legal-doc="usc" parsable-cite="usc/26/168">section 168(g)(3)(B)</external-xref> is amended by inserting after the item relating to subparagraph (B)(vii) the following new item:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H37474A6DEA5E413C8068FBB37CCEA1D1"> <toc> <multi-column-toc-entry bold="off" level="section"><toc-enum>(B)(viii)</toc-enum><level-header level="section"></level-header><target>30</target></multi-column-toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph commented="no" id="idD23F149AF21146C5AF4406707DCB218A"><enum>(3)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to facilities and property placed in service after December 31, 2022.</text></paragraph></subsection></section> <enum>II</enum><header>Incentives for Clean Transportation</header> <section id="idF63F4D3D53ED4E56ADB4BC57BD62DB0C"><enum>201.</enum><header>Clean fuel production credit</header> <subsection id="id3A68FFF1F2744B76AFEF0E099CDDA670"><enum>(a)</enum><header>In general</header><text>Subpart D of part IV of subchapter A of chapter 1, as amended by <external-xref legal-doc="usc" parsable-cite="usc/26/101">section 101,</external-xref> is amended by adding at the end the following new section:</text> <quoted-block display-inline="no-display-inline" id="id15D4597ABBD849BC83914BD2616E9511" style="OLC"> <section id="id9A8404470C1B498799CB85C70DE76B77"><enum>45V.</enum><header>Clean fuel production credit</header> <subsection id="idF282084DA5E5474EB2DF8A6DE3BD5885"><enum>(a)</enum><header>Amount of credit</header> <paragraph id="idAB6C852FFECF48479BE5F3F0EFE5E829"><enum>(1)</enum><header>In general</header><text>For purposes of section 38, the clean fuel production credit for any taxable year is an amount equal to—</text> <subparagraph id="id0412727565ED469088386A36E9A34789"><enum>(A)</enum><text>for any transportation fuel sold during any calendar year ending before January 1, 2030, and amount equal to the product of—</text> <clause id="idF84442CF564D4B96B89BD3EC5B85C4D7"><enum>(i)</enum><text>$1.00 per gallon (or gallon equivalent) with respect to any transportation fuel which is—</text> <subclause id="id0DFDA70691F74D5EB37B8DFF4DDE5474"><enum>(I)</enum><text>produced by the taxpayer at a qualified facility, and</text></subclause> <subclause id="id3BFF3968B3F5490684285EBA1AB6926F"><enum>(II)</enum><text>sold by the taxpayer in a manner described in paragraph (3), and</text></subclause></clause> <clause id="id9E11940351964C8E88CC781F9D92778B"><enum>(ii)</enum><text>the emissions factor for such fuel (as determined under subsection (b)), and</text></clause></subparagraph> <subparagraph id="id638328336E0E4E01B79801706974BD91"><enum>(B)</enum><text>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—</text> <clause id="idF2C7572577C34DA39620BC915AB10541"><enum>(i)</enum><text>produced by the taxpayer at a qualified facility, and</text></clause> <clause id="id07AC217110F94901A2BC320230AEA2A0"><enum>(ii)</enum><text>sold by the taxpayer in a manner described in paragraph (3).</text></clause></subparagraph></paragraph> <paragraph id="id832C815396EB46FD9890918F58967D05"><enum>(2)</enum><header>Applicable amount</header><text>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<subscript>2</subscript>e per mmBTU (or fraction thereof) for which the emissions rate for such fuel is below zero.</text></paragraph> <paragraph id="id725658571414400F9003605E6540D6CE"><enum>(3)</enum><header>Sale</header><text>For purposes of paragraph (1), the transportation fuel is sold in a manner described in this paragraph if such fuel is sold by the taxpayer to an unrelated person—</text> <subparagraph id="id59975DFF99DF45558E3F80E1FAB7104C"><enum>(A)</enum><text>for use by such person in the production of a fuel mixture,</text></subparagraph> <subparagraph id="idEED7A7CD58B248F3B99D5CC1366AED69"><enum>(B)</enum><text>for use by such person in a trade or business, or</text></subparagraph> <subparagraph id="idB78FB191D1594C1EA42024910E01689C"><enum>(C)</enum><text>who sells such fuel at retail to another person and places such fuel in the fuel tank of such other person.</text></subparagraph></paragraph> <paragraph id="id93794ABF91474324855895F7E1A60710" commented="no"><enum>(4)</enum><header>Rounding</header><text>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.</text></paragraph></subsection> <subsection id="id6E8FAEF82115445999102F58A79B7F06"><enum>(b)</enum><header>Emissions factors</header> <paragraph id="id5BCB914C502344ECA53EFC02BBBF2FA6"><enum>(1)</enum><header>Emissions factor</header> <subparagraph id="idB237794FD8D742DEB2D97534ED7870AD"><enum>(A)</enum><header>Calculation</header> <clause id="idCB4D06942C1A4AD5B86B3D64021822C6"><enum>(i)</enum><header>In general</header><text>The emissions factor of a transportation fuel shall be an amount equal to the quotient of—</text> <subclause id="id9678A868804A40788B9A330C91FC6598"><enum>(I)</enum><text>an amount equal to—</text> <item id="id7518FAABB92441DC84A857E32E8423DE"><enum>(aa)</enum><text>the baseline emissions rate, minus</text></item> <item id="id084F485F68FE4ECE9F33777AD6C96AFE"><enum>(bb)</enum><text>the emissions rate for such fuel, divided by</text></item></subclause> <subclause id="idF306F4848FE24EE2A2048A58C92C6BBB"><enum>(II)</enum><text>the baseline emissions rate.</text></subclause></clause></subparagraph> <subparagraph id="idE401FED0A7F24860A56BCC5DC587A0B4"><enum>(B)</enum><header>Baseline emissions rate</header><text>For purposes of this paragraph, the term <term>baseline emissions rate</term> means—</text> <clause id="id945F68A0121E45078897939C8A93A0FD"><enum>(i)</enum><text>for any calendar year ending before January 1, 2026, 75 kilograms of CO<subscript>2</subscript>e per mmBTU,</text></clause> <clause id="idF8EEC0970DE8424790CC9D3B25BC9262"><enum>(ii)</enum><text>for calendar years 2026 and 2027, 50 kilograms of CO<subscript>2</subscript>e per mmBTU, and</text></clause> <clause id="id27C1BCD95D604D9E81F582A730061451"><enum>(iii)</enum><text>for calendar years 2028 and 2029, 25 kilograms of CO<subscript>2</subscript>e per mmBTU.</text></clause></subparagraph> <subparagraph id="id48187881C0464961994685FFFD06F2EF"><enum>(C)</enum><header>Establishment of emissions rate</header><text>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 (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(1)(H)</external-xref>), as in effect on the date of the enactment of this section) for such fuels, expressed as kilograms of CO<subscript>2</subscript>e per mmBTU, which a taxpayer shall use for purposes of this section.</text></subparagraph> <subparagraph id="idEF20072269774E57B7C2D728C3424329"><enum>(D)</enum><header>Rounding of emissions rate</header><text>The Secretary may round the emissions rates under subparagraph (B) to the nearest multiple of 5 kilograms of CO<subscript>2</subscript>e per mmBTU, except that, in the case of an emissions rate that is less than 2.5 kilograms of CO<subscript>2</subscript>e per mmBTU, the Secretary may round such rate to zero.</text></subparagraph> <subparagraph id="id94E71D597A924FE3BCD0BB9186F884D8"><enum>(E)</enum><header>Provisional emissions rate</header> <clause id="id599886505586401382D783E83BCC48AD"><enum>(i)</enum><header>In general</header><text>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.</text></clause> <clause id="id92098C5529D74D41B4F5D95147E0B83A"><enum>(ii)</enum><header>Establishment of provisional and final emissions rate</header><text>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—</text> <subclause id="id50A22E3209194791AF2D8EEB50D967AF"><enum>(I)</enum><text>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</text></subclause> <subclause id="id0385C837848C4720A03C88A3DD47B6E1"><enum>(II)</enum><text>not later than 24 months after the date on which the petition was filed, establish the emissions rate for such fuel.</text></subclause></clause></subparagraph> <subparagraph id="id4E633B6FF6A543DEAC309C755CED9943"><enum>(F)</enum><header>Rounding</header><text>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.</text></subparagraph></paragraph> <paragraph id="id5C50A5B8EE744E4088FC8ED28EC5255E"><enum>(2)</enum><header>Publishing emissions rate</header><text>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.</text></paragraph></subsection> <subsection id="id344AD8638BF04B5781DF3D9477353C94"><enum>(c)</enum><header>Inflation adjustment</header> <paragraph id="id9711B375F4D542D6A644DF86F149A92B"><enum>(1)</enum><header>In general</header><text>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.</text></paragraph> <paragraph id="id759C64FF462144249F59EEB721CF1F13"><enum>(2)</enum><header>Inflation adjustment factor</header><text>For purposes of paragraph (1), the inflation adjustment factor shall be the inflation adjustment factor determined and published by the Secretary pursuant to section 45U(c), determined by substituting <quote>calendar year 2022</quote> for <quote>calendar year 1992</quote> in paragraph (3) thereof.</text></paragraph></subsection> <subsection commented="no" id="id106E382DFD2F43F19A6E38BCE90F0A16"><enum>(d)</enum><header>Credit phase-Out</header> <paragraph commented="no" id="id0D66E74CE6D64ED099FAEEC6127BCE4A"><enum>(1)</enum><header>In general</header><text>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). </text></paragraph> <paragraph commented="no" id="idB43122FFEBC2422BB436E5940C41F313"><enum>(2)</enum><header>Applicable dollar amount</header> <subparagraph commented="no" id="id8AD8E2630B05424382DB6337DB5605F4"><enum>(A)</enum><header>In general</header><text>The applicable amount for any taxable year described in subparagraph (B) shall be an amount equal to the product of—</text> <clause commented="no" id="id64670E0AAD5B45F581C51841D7DF4487"><enum>(i)</enum><text>the dollar amount in paragraphs (1)(A)(i) and (2) of subsection (a) (as adjusted by subsection (c)), multiplied by</text></clause> <clause commented="no" id="id9A083AB0F79F463E8BDB37C4988371C5"><enum>(ii)</enum><text>the phase-out percentage under subparagraph (B).</text></clause></subparagraph> <subparagraph id="id0F0836C9F1054CB8B2923CAE729DE1FF"><enum>(B)</enum><header>Phase-out percentage</header><text>The phase-out percentage under this subparagraph is equal to—</text> <clause id="id690032875E1B423A88C47620C9A63D62"><enum>(i)</enum><text>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,</text></clause> <clause id="id1AD8D4A4EAE3493C860B1D4352D7B2BD"><enum>(ii)</enum><text>for any taxable year beginning in the second calendar year following such determination year, 75 percent,</text></clause> <clause id="id27F9E67C79F847E0A9DB1A6F833AB2B7"><enum>(iii)</enum><text>for any taxable year beginning in the third calendar year following such determination year, 50 percent, and</text></clause> <clause commented="no" id="idDEA89097C626495CA77CCB6585D11B7A"><enum>(iv)</enum><text>for any taxable year beginning in any calendar year subsequent to the year described in clause (iii), 0 percent.</text></clause></subparagraph></paragraph></subsection> <subsection id="id4350009A6C234C56964F9708528473A1"><enum>(e)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="id088D965D8E0C4D128EAAC480956EDD09"><enum>(1)</enum><header><enum-in-header>mm</enum-in-header>BTU</header><text>The term <term>mmBTU</term> means 1,000,000 British thermal units.</text></paragraph> <paragraph id="id1D089DFEA0FE4670B92B1B0E04053229"><enum>(2)</enum><header>CO<subscript>2</subscript><enum-in-header>e</enum-in-header></header><text>The term <term>CO<subscript>2</subscript>e</term> means, with respect to any greenhouse gas, the equivalent carbon dioxide (as determined based on relative global warming potential).</text></paragraph> <paragraph id="idE62E187658F14A13A6DD51CC3C71BB63"><enum>(3)</enum><header>Greenhouse gas</header><text>The term <term>greenhouse gas</term> has the same meaning given that term under section 211(o)(1)(G) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(1)(G)</external-xref>), as in effect on the date of the enactment of this section.</text></paragraph> <paragraph id="id790EA99184B7479E83090FC683F445E9"><enum>(4)</enum><header>Qualified facility</header> <subparagraph id="id64A4A3B9CFFA477D8A91A2AB494C0BB5"><enum>(A)</enum><header>In general</header><text>The term <term>qualified facility</term> means a facility—</text> <clause id="idFE45A326734E4585B6BDDB30CCCA6F5E"><enum>(i)</enum><text>used for the production of transportation fuels, and</text></clause> <clause id="idBC178D0CC154489780C013BA15D4D75A"><enum>(ii)</enum><text>which—</text> <subclause id="idF88B03D8D98A4D5CBECA2FFABF0EE4E8"><enum>(I)</enum><text>satisfies the requirements under subparagraph (B), and</text></subclause> <subclause id="id5A69347577654C38A97E0F33348C9D8D"><enum>(II)</enum><text>with respect to the construction of such facility, satisfies the requirements under section 601 of the <short-title>Clean Energy for America Act</short-title>. </text></subclause></clause></subparagraph> <subparagraph commented="no" id="id143AE9CFDA9C41F6B5579C284F0B9EAE"><enum>(B)</enum><header>Wage requirements</header><text>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—</text> <clause commented="no" id="id44BC961F72304CF581537DE6F04F185A"><enum>(i)</enum><text>the construction of such facility, or</text></clause> <clause commented="no" id="idF269FA125A494A39861DFE00A12E85C7"><enum>(ii)</enum><text>for any year described in subsection (a)(1) for which the credit under this section is claimed, the alteration or repair of such facility,</text></clause><continuation-text continuation-text-level="subparagraph">shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality as determined by the Secretary of Labor, in accordance with subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code. </continuation-text></subparagraph></paragraph> <paragraph commented="no" id="id27B10A78F7A246EF807A97D4427D02A4"><enum>(5)</enum><header>Transportation fuel</header><text>The term <term>transportation fuel</term> means a fuel which is suitable for use as a fuel in a highway vehicle or aircraft.</text></paragraph></subsection> <subsection id="id399E7B36EF3144D2BEB0E3AEA8DE0880"><enum>(f)</enum><header>Final guidance</header><text>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.</text></subsection> <subsection id="idF0DB6E6D859C42ED93EFFFE4DF575096"><enum>(g)</enum><header>Special rules</header> <paragraph id="id6582DAB9801E48E1BB1AEE88072ED5FE"><enum>(1)</enum><header>Only registered production in the United States taken into account</header> <subparagraph id="idD0023398A3224F1C80C9E6FB9D631865"><enum>(A)</enum><header>In general</header><text>No clean fuel production credit shall be determined under subsection (a) with respect to any transportation fuel unless—</text> <clause commented="no" id="id2496EE6D63DF4AD3927D8778CB238263"><enum>(i)</enum><text>the taxpayer is registered as a producer of clean fuel under section 4101 at the time of production, and</text></clause> <clause id="id770CD7D7D5C445C3A961BC2136FE0606"><enum>(ii)</enum><text>such fuel is produced in the United States.</text></clause></subparagraph> <subparagraph id="id02D181225D1F41349AF700240C5B75FF"><enum>(B)</enum><header>United States</header><text>For purposes of this paragraph, the term <quote>United States</quote> includes any possession of the United States.</text></subparagraph></paragraph> <paragraph id="idDEE084DCAAE840F0B7B1CE414B5E6836"><enum>(2)</enum><header>Production attributable to the taxpayer</header><text>In the case of a facility in which more than 1 person has an ownership interest, except to the extent provided in regulations prescribed by the Secretary, production from the facility shall be allocated among such persons in proportion to their respective ownership interests in the gross sales from such facility.</text></paragraph> <paragraph id="idFD999E9E41E74A85AAB2C1855BDE81EB"><enum>(3)</enum><header>Related persons</header><text>Persons shall be treated as related to each other if such persons would be treated as a single employer under the regulations prescribed under section 52(b). In the case of a corporation which is a member of an affiliated group of corporations filing a consolidated return, such corporation shall be treated as selling fuel to an unrelated person if such fuel is sold to such a person by another member of such group.</text></paragraph> <paragraph id="idEE875FE19A6E4CAC9315E7F6AD5A3BF8"><enum>(4)</enum><header>Pass-thru in the case of estates and trusts</header><text>Under regulations prescribed by the Secretary, rules similar to the rules of subsection (d) of section 52 shall apply.</text></paragraph> <paragraph id="idDB1752A2667844CAA3DF4CAE873AA866" commented="no"><enum>(5)</enum><header>Allocation of credit to patrons of agricultural cooperative</header> <subparagraph id="id1BC53D4B4F8947D79BD0EC905677F674" commented="no"><enum>(A)</enum><header>Election to allocate</header> <clause id="id9D8640685A1449CE9D5281C9F0B4750C" commented="no"><enum>(i)</enum><header>In general</header><text>In the case of an eligible cooperative organization, any portion of the credit determined under subsection (a) for the taxable year may, at the election of the organization, be apportioned among patrons of the organization on the basis of the amount of business done by the patrons during the taxable year.</text></clause> <clause id="idE10E4E7C8F8A4C83AC44CBBAC508180B" commented="no"><enum>(ii)</enum><header>Form and effect of election</header><text>An election under clause (i) for any taxable year shall be made on a timely filed return for such year. Such election, once made, shall be irrevocable for such taxable year. Such election shall not take effect unless the organization designates the apportionment as such in a written notice mailed to its patrons during the payment period described in section 1382(d).</text></clause></subparagraph> <subparagraph id="idD979019EB3E84E29ACF320953F75DF00" commented="no"><enum>(B)</enum><header>Treatment of organizations and patrons</header><text>The amount of the credit apportioned to any patrons under subparagraph (A)—</text> <clause id="id68FB880619E3435DA0F2CD6833D73BD0" commented="no"><enum>(i)</enum><text>shall not be included in the amount determined under subsection (a) with respect to the organization for the taxable year, and</text></clause> <clause id="id88E9DF167D914339AD35A625D78F55CA" commented="no"><enum>(ii)</enum><text>shall be included in the amount determined under subsection (a) for the first taxable year of each patron ending on or after the last day of the payment period (as defined in section 1382(d)) for the taxable year of the organization or, if earlier, for the taxable year of each patron ending on or after the date on which the patron receives notice from the cooperative of the apportionment.</text></clause></subparagraph> <subparagraph id="idB7228EBB13E747CC8737817965F9DEA0" commented="no"><enum>(C)</enum><header>Special rules for decrease in credits for taxable year</header><text>If the amount of the credit of a cooperative organization determined under subsection (a) for a taxable year is less than the amount of such credit shown on the return of the cooperative organization for such year, an amount equal to the excess of—</text> <clause id="idF05D7634C28046BEB38E89B7681A2AD2" commented="no"><enum>(i)</enum><text>such reduction, over</text></clause> <clause id="id2779C66CF5554545914F7CEE126978EF" commented="no"><enum>(ii)</enum><text>the amount not apportioned to such patrons under subparagraph (A) for the taxable year,</text></clause><continuation-text continuation-text-level="subparagraph" commented="no">shall be treated as an increase in tax imposed by this chapter on the organization. Such increase shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit under this chapter.</continuation-text></subparagraph> <subparagraph id="idEB6002F5F23B434383091386E7272BDE" commented="no"><enum>(D)</enum><header>Eligible cooperative defined</header><text>For purposes of this section the term <term>eligible cooperative</term> means a cooperative organization described in section 1381(a) which is owned more than 50 percent by agricultural producers or by entities owned by agricultural producers. For this purpose an entity owned by an agricultural producer is one that is more than 50 percent owned by agricultural producers.</text></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="id016150F02F2643B1AFD3296F0CCA5492"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="id0F12260C0F2D445C85B67D76467769CF"><enum>(1)</enum><text>Section 38(b), as amended by <external-xref legal-doc="usc" parsable-cite="usc/26/101">section 101,</external-xref> is amended—</text> <subparagraph id="id32B1E375ADF747728272459EE4092ADD"><enum>(A)</enum><text>in paragraph (33), by striking <quote>plus</quote> at the end,</text></subparagraph> <subparagraph id="idC53BC2BA6CF14C5CB6631843D0A08A19"><enum>(B)</enum><text>in paragraph (34), by striking the period at the end and inserting <quote>, plus</quote>, and</text></subparagraph> <subparagraph id="id8BBDF180C35D432A8DC9AC53DE5157F0"><enum>(C)</enum><text>by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="idA6F684DDCBCE403ABB1585A2F6F94F3C" style="OLC"> <paragraph id="id35966F5553B2467A9B8CC6C84705B5B0"><enum>(35)</enum><text>the clean fuel production credit determined under section 45V(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="id4BD9C8AF664F44F7A7C591C64DAD3DD4"><enum>(2)</enum><text>The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by <external-xref legal-doc="usc" parsable-cite="usc/26/101">section 101,</external-xref> is amended by adding at the end the following new item:</text> <quoted-block display-inline="no-display-inline" id="idC181DB1309D149C3BE21856F35F19A71" style="OLC"> <toc> <toc-entry bold="off" level="section">Sec. 45V. Clean fuel production credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph commented="no" id="id96FBDCE30E374E9CA0C68254F3D94A0E"><enum>(3)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/4101">Section 4101(a)(1)</external-xref> is amended by inserting <quote>every person producing a fuel eligible for the clean fuel production credit (pursuant to section 45V),</quote> after <quote>section 6426(b)(4)(A)),</quote>.</text></paragraph></subsection> <subsection id="idFB3FFF70C67445E9B98F09ED3E37B4EC"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to transportation fuel produced after December 31, 2022.</text></subsection></section> <section id="id522A6D0A768341FCB03C7CEEEEEECFA5"><enum>202.</enum><header>Transportation electrification</header> <subsection id="id8D652A5822224D00A3471DF7250B1BCE"><enum>(a)</enum><header>Alternative motor vehicle credit for fuel cell motor vehicles</header> <paragraph id="idEC82D094FDD3443795BE12A8901DEEFC"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30B">Section 30B(k)</external-xref> is amended—</text> <subparagraph id="idA038026781E1454F86E059AECC9F2567"><enum>(A)</enum><text>by striking paragraph (1), and</text></subparagraph> <subparagraph id="idB2B8A5B8FF2B48AEAD4ED194662EB4D1"><enum>(B)</enum><text>by redesignating paragraphs (2) through (4) as paragraphs (1) through (3), respectively.</text></subparagraph></paragraph> <paragraph id="id21F7189C00914E499CB5E03FBBF69849"><enum>(2)</enum><header>Phase-out</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30B">Section 30B</external-xref> is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id393104991DE64B8A8C9C9E290992ED7F" style="OLC"> <subsection commented="no" id="id9F6F35A4F7014B28A24EE5279476AC26"><enum>(l)</enum><header>Credit phase-Out for new qualified fuel cell motor vehicles</header> <paragraph commented="no" id="id7A7FB95081DD4D029500126342F69433"><enum>(1)</enum><header>In general</header><text>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—</text> <subparagraph commented="no" id="idB97913B5E66A46F4BDD509AEEAA43119"><enum>(A)</enum><text>the amount of the credit determined under subsection (b) without regard to this subsection, multiplied by</text></subparagraph> <subparagraph commented="no" id="idDEAD57A718D943DFAE1B8CDBD18E1EBC"><enum>(B)</enum><text>the phase-out percentage under paragraph (2).</text></subparagraph></paragraph> <paragraph id="id0602A117E02A420C8E3021A901FBB97F"><enum>(2)</enum><header>Phase-out percentage</header><text>The phase-out percentage under this paragraph is equal to—</text> <subparagraph id="idC01CD25BEBE94F8F881F4381DA730912"><enum>(A)</enum><text>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,</text></subparagraph> <subparagraph id="id21767838A3F446FD8BB309E43BFFA1CD"><enum>(B)</enum><text>for a vehicle purchased during the second calendar year following such determination year, 75 percent,</text></subparagraph> <subparagraph id="idFEB3BD1F7A84405CA4AD0D52FA23CE89"><enum>(C)</enum><text>for a vehicle purchased during the third calendar year following such determination year, 50 percent, and</text></subparagraph> <subparagraph commented="no" id="idEDC702C80ACE41C8AE1EB879F408C9F2"><enum>(D)</enum><text>for a vehicle purchased during any calendar year subsequent to the year described in subparagraph (C), 0 percent.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="id9847905D8D0043DDB46465A6042EBB27"><enum>(3)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to property purchased after December 31, 2021.</text></paragraph></subsection> <subsection id="id7CBBBCA12D42400DA4F1C74DE7C182A9"><enum>(b)</enum><header>Alternative fuel vehicle refueling property credit</header> <paragraph id="id378C56984FC0487E9EAF6B94D133685E"><enum>(1)</enum><header>Extension and modification</header> <subparagraph id="idBF2B5E4A63FD47BC821F985410C20F34"><enum>(A)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30C">Section 30C</external-xref> is amended—</text> <clause id="id3543A31914CD4440AD65C930395AEC22"><enum>(i)</enum><text>in subsection (b)—</text> <subclause id="id7054391CFE9A4E2FBC20BB3429660C43"><enum>(I)</enum><text>by striking <quote>with respect to all qualified alternative fuel vehicle refueling property placed in service by the taxpayer during the taxable year at a location</quote> and inserting <quote>with respect to any single item of qualified alternative fuel vehicle refueling property placed in service by the taxpayer during the taxable year</quote>, and</text></subclause> <subclause id="id02579D5E225C49A3ACCEE2813657777A"><enum>(II)</enum><text>in paragraph (1), by striking <quote>$30,000</quote> and inserting <quote>$200,000</quote>,</text></subclause></clause> <clause id="id8E4B62B79AB14139B333AE6760320B80"><enum>(ii)</enum><text>in subsection (e), by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="id91954F1D1C9F4CCF8AF1E184A8BC59DF"> <paragraph commented="no" id="idFEB2B212E5704522B124656DBEB07C39"><enum>(7)</enum><header>Wage requirements</header> <subparagraph commented="no" id="idE7D7C7F0E7BB4E94ABD77F0D4D9CE5DD"><enum>(A)</enum><header>In general</header><text>The term <term>qualified alternative fuel vehicle refueling property</term> shall not include any property which fails to satisfy—</text> <clause commented="no" id="id9439B7A7E57345C29A877D593D3EC5BF"><enum>(i)</enum><text>the requirements under subparagraph (B), and</text></clause> <clause commented="no" id="id99755686156845E787BF9FCB4D5E5A7E"><enum>(ii)</enum><text>with respect to the construction of such property, the requirements under section 601 of the <short-title>Clean Energy for America Act</short-title>.</text></clause></subparagraph> <subparagraph commented="no" id="idDFA898AA4A83414ABF517304BAA2AA69"><enum>(B)</enum><header>Requirements</header><text>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 <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code.</text></subparagraph></paragraph><after-quoted-block>, and</after-quoted-block></quoted-block></clause> <clause id="id371D3F9FEE874E61A1443770179624E0"><enum>(iii)</enum><text>in subsection (g), by striking <quote>December 31, 2021</quote> and inserting <quote>December 31, 2022</quote>.</text></clause></subparagraph> <subparagraph id="id310AB602CB5340B38AFDAA85E032F9DC"><enum>(B)</enum><header>Effective date</header><text>The amendments made by this paragraph shall apply to property placed in service after December 31, 2021.</text></subparagraph></paragraph> <paragraph id="id85B73BC0413B4E80950F6F5AFD89B2E6"><enum>(2)</enum><header>Additional modification</header> <subparagraph id="idA6A20D3814BD4C0F87B8143F8ECE785B"><enum>(A)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30C">Section 30C</external-xref>, as amended by paragraph (1), is amended—</text> <clause id="idBB22400DAC174BB88EA5C6FD8E6C41E4"><enum>(i)</enum><text>in subsection (c)(2)—</text> <subclause id="idF57C0CE29A3B464E965B4F71D1C906C4"><enum>(I)</enum><text>in subparagraph (A), by striking <quote>one or more</quote> and all that follows through the period and inserting the following: <quote>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.</quote>, and</text></subclause> <subclause id="idAEDB44E056FD47EEADC1D3670ECB68AD"><enum>(II)</enum><text>by striking subparagraph (B) and inserting the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="id52BD1683E73146F7A9ADACE5438F772F"> <subparagraph id="idA56C2796755F4DACA141CD4F697E8743"><enum>(B)</enum><text>Any mixture—</text> <clause id="id20BF3716F76C4B7584255664911BB21B"><enum>(i)</enum><text>which consists of—</text> <subclause id="id7E2B45368213488E998A925D4F9EEF79"><enum>(I)</enum><text>any transportation fuel—</text> <item id="idEA99363652E24A13911A1D1C4E188E31"><enum>(aa)</enum><text>for which the clean fuel production credit is allowed under section 45V with respect to the production and sale of such fuel, and</text></item> <item id="id63CEA0A4C71D4736AA7BCAAB903C1617"><enum>(bb)</enum><text>which is a liquid fuel, and</text></item></subclause> <subclause id="id28F6BED7C681469E96F27D7B4DA642EE"><enum>(II)</enum><text>any taxable fuel (as defined in section 4083(a)(1)), and</text></subclause></clause> <clause id="id26B64F35363E4B5E94F197A51202B022"><enum>(ii)</enum><text>at least 20 percent of the volume of which consists of fuel described in clause (i)(I).</text></clause></subparagraph><after-quoted-block>, and</after-quoted-block></quoted-block></subclause></clause> <clause id="idEA175A9A8FCE494794EF16E9622DAE5F"><enum>(ii)</enum><text>by striking subsection (g) and inserting the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="id0F1183681631455AB0C223CF78C9C88D"> <subsection commented="no" id="id3102D5E9DF6C437CA0C9D3F609C39BA6"><enum>(g)</enum><header>Credit phase-Out</header> <paragraph commented="no" id="id515B58B002ED4C8FB14487E9212F6BB6"><enum>(1)</enum><header>In general</header><text>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—</text> <subparagraph commented="no" id="id897832C332EF4AF9B889D7D4295D0BE1"><enum>(A)</enum><text>the amount of the credit allowed under subsection (a) (as determined without regard to this subsection), multiplied by</text></subparagraph> <subparagraph commented="no" id="idBB2EDBC59EDA4E3D9AD7374C7585E86B"><enum>(B)</enum><text>the phase-out percentage under paragraph (2).</text></subparagraph></paragraph> <paragraph id="id98A62F33B62F4C37AD37C873A13A5A0A"><enum>(2)</enum><header>Phase-out percentage</header><text>The phase-out percentage under this paragraph is equal to—</text> <subparagraph id="id9CC9EDFB5DC24C6F9E106A4DE8BC4797"><enum>(A)</enum><text>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,</text></subparagraph> <subparagraph id="id5C70EE37C20D4537A4823235B0C991BB"><enum>(B)</enum><text>for any property placed in service during the second calendar year following such determination year, 75 percent,</text></subparagraph> <subparagraph id="id4093C20CB2AE4CD187DFD945698FC4DC"><enum>(C)</enum><text>for any property placed in service during the third calendar year following such determination year, 50 percent, and</text></subparagraph> <subparagraph commented="no" id="idBECB1B0721474825B342A4735B18F678"><enum>(D)</enum><text>for any property placed in service during any calendar year subsequent to the year described in subparagraph (C), 0 percent.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph></paragraph></subsection> <subsection id="id745D91174E1442A19FD69296A68DA813"><enum>(c)</enum><header>Electric vehicles</header> <paragraph id="id32E34E097FDC4BE0A8C55571D75CBAE0"><enum>(1)</enum><header><enum-in-header>2-</enum-in-header> and 3-wheeled plug-in electric vehicles</header> <subparagraph id="idE355CBEB75AE4A5F9AF175A1E85A8CDA"><enum>(A)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30D">Section 30D(g)(3)(E)</external-xref> is amended by striking clause (ii) and inserting the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="id698CEDED66BD4EB2B81DDAE75E82C76A"> <clause id="idB7568EF3516B4F879D2490DE0FDC6632"><enum>(ii)</enum><text>after December 31, 2014.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph> <subparagraph id="id3FA5E49FF2554E4B9406AD0B1845E383"><enum>(B)</enum><header>Effective date</header><text>The amendments made by this paragraph shall apply to vehicles acquired after December 31, 2020.</text></subparagraph></paragraph> <paragraph id="id519475A5B19A4DDEA6EBC66D10B2D760"><enum>(2)</enum><header>Elimination on limitation on number of vehicles eligible for credit</header> <subparagraph id="idE603FD632C084EAA9E17B4BC2451E984"><enum>(A)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30D">Section 30D</external-xref> is amended by striking subsection (e).</text></subparagraph> <subparagraph id="idE95E20790D864DBD9D08E3D37E92C365"><enum>(B)</enum><header>Effective date</header><text>The amendment made by this paragraph shall apply to vehicles sold after the date of the enactment of this Act. </text></subparagraph></paragraph> <paragraph id="id26651F2F726B42E895AD38D170E9C4D3"><enum>(3)</enum><header>Making new qualified plug-in electric drive motor vehicle credit refundable for individuals</header> <subparagraph id="id02132147F9334BFAA817053455FE2022"><enum>(A)</enum><header>In general</header><text>The Internal Revenue Code of 1986 is amended—</text> <clause id="id8C9A1D31C0B541EEB28408A3160B5D6A"><enum>(i)</enum><text>by redesignating section 30D as section 36C, and</text></clause> <clause id="idEB1D5A0C23A3451C8A86BD038D5C8F01"><enum>(ii)</enum><text>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. </text></clause></subparagraph> <subparagraph id="id36219AF0C72D4AF19450A7B0914F180D"><enum>(B)</enum><header>Conforming amendments</header> <clause id="id92A1B4A7A3C74F3C87D5A5F2EC985580"><enum>(i)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/36C">Section 36C</external-xref>, as amended by paragraph (2) and as redesignated and moved by subparagraph (A), is amended— </text> <subclause id="idE4EDFF519A0E4C26BC63FC5057C4ABF0"><enum>(I)</enum><text>in subsection (a), by striking <quote>There shall be allowed</quote> and inserting <quote>In the case of an individual, there shall be allowed</quote>,</text></subclause> <subclause id="idB066C6B56E814C23A9EBBE486B6E2615"><enum>(II)</enum><text>by striking subsection (c),</text></subclause> <subclause id="idF7CC3231E0694033A07C30960DBF1E8F"><enum>(III)</enum><text>by redesignating subsections (d), (f), and (g) as subsections (c), (d), and (e), respectively,</text></subclause> <subclause id="idE9365CA8F1ED41FBADED884C9AEC9C59"><enum>(IV)</enum><text>in subsection (d), as so redesignated—</text> <item id="id358A1760E8034E29BD49AAAD2CE227E9"><enum>(aa)</enum><text>by striking <quote>(determined without regard to subsection (c))</quote> each place it appears, and</text></item> <item id="idA77B1D45685B4E3AA99C4DB635CBA2F1"><enum>(bb)</enum><text>by striking paragraph (3), and</text></item></subclause> <subclause id="id4220BAE410D44D2FA7A404D30B48E1E9"><enum>(V)</enum><text>in subsection (e)(3)(B), as so redesignated, by striking <quote>subsection (d)(1)</quote> and inserting <quote>subsection (c)(1)</quote>.</text></subclause></clause> <clause commented="no" id="idADE6CC271E674F9E9652C89F98B22523"><enum>(ii)</enum><text>Subsection (l)(1) of <external-xref legal-doc="usc" parsable-cite="usc/26/30B">section 30B</external-xref>, as added by subsection (a)(2), is amended by striking <quote>section 30D(d)(1)</quote> and inserting <quote>section 36C(c)(1)</quote>.</text></clause> <clause commented="no" id="idC35BCF29FEF44292AEC23AF979959294"><enum>(iii)</enum><text>Paragraph (37) of <external-xref legal-doc="usc" parsable-cite="usc/26/1016">section 1016(a)</external-xref> is amended by striking <quote>section 30D(f)(1)</quote> and inserting <quote>section 36C(d)(1)</quote>. </text></clause> <clause id="idCA7478F62A7240EA9CB1E5171A667EC0"><enum>(iv)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/6501">Section 6501(m)</external-xref> is amended by striking <quote>30D(e)(4)</quote> and inserting <quote>36C(d)(6)</quote>.</text></clause> <clause id="idB874C3328985455FBA4ADC79EE1D0C3A"><enum>(v)</enum><text>Section 166(b)(5)(A)(ii) of title 23, United States Code, is amended by striking <quote>section 30D(d)(1)</quote> and inserting <quote>section 36C(c)(1)</quote>.</text></clause> <clause id="idF68A68F372F546B082E28EA08FFE8594"><enum>(vi)</enum><text>The table of sections for subpart C of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after the item relating to section 36B the following new item:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="idDA84FB8B193147C0B896ADDFB780C971"> <toc> <toc-entry level="section" bold="off">Sec. 36C. New qualified plug-in electric drive motor vehicles.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph> <subparagraph id="idBD99EDD6B1D2470BBB7ABC8D456A4877"><enum>(C)</enum><header>Effective date</header><text>The amendments made by this paragraph shall apply to vehicles acquired after December 31, 2021.</text></subparagraph></paragraph> <paragraph id="id74BD287BD07C4AEEBD4F4345FC20FEE6"><enum>(4)</enum><header>VIN requirement</header> <subparagraph id="id155D3ED150F349D2B408915EB3C0BE97"><enum>(A)</enum><header>In general</header><text>Section 36C(c)(1), as redesignated and moved by paragraph (3), is amended—</text> <clause id="id1F00FC53E3294EB1A9F045869A9DEB7F"><enum>(i)</enum><text>in subparagraph (E), by striking <quote>and</quote> at the end,</text></clause> <clause id="id01FBB44DE9C048CB9088C15501CE4149"><enum>(ii)</enum><text>in subparagraph (F)(ii), by striking the period at the end and inserting <quote>, and</quote>, and</text></clause> <clause id="idBB62A31F0E4F4A2A83B37190B8F94BDA"><enum>(iii)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="id5851B09ED19E4528A8997DBD59029340"> <subparagraph id="id99C86AA6ADAC49CA9085E5DE3A6AB45B"><enum>(G)</enum><text>for which the taxpayer has provided the vehicle identification number on the return of tax for the taxable year.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph> <subparagraph id="id212E75EF7F51466184100EC35D2657A4"><enum>(B)</enum><header>Mathematical or clerical error</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6213">Section 6213(g)(2)</external-xref> is amended—</text> <clause id="id865C87434A70473FB19285D18E3AAC8B"><enum>(i)</enum><text>in subparagraph (P), by striking <quote>and</quote> at the end,</text></clause> <clause id="id9F9A3E38E1C14C29A43ACF0DA3812D29"><enum>(ii)</enum><text>in subparagraph (Q), by striking the period at the end and inserting <quote>, and</quote>, and</text></clause> <clause id="id607CF3A91F8147ED866FFC4334BAE683"><enum>(iii)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="id72228C400A9D4077A8B929F025D30FAA"> <subparagraph id="idD160FEB6773947069BCCBBDA6600F544"><enum>(R)</enum><text>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.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph> <subparagraph id="idF7A6887AE28B45DDB5D301656B679AB8"><enum>(C)</enum><header>Effective date</header><text>The amendments made by this paragraph shall apply to vehicles acquired after December 31, 2021.</text></subparagraph></paragraph> <paragraph id="id5AA07E2186B7404EB049B8BFD5674564"><enum>(5)</enum><header>Phase-out</header><text>Section 36C, as redesignated, moved, and amended by the preceding paragraphs of this subsection, is amended by adding at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id6808E265CE184F5DBAC6A53A9E5F017B" style="OLC"> <subsection commented="no" id="id8964ABF64E944C1A83EEE9E5281BA51B"><enum>(f)</enum><header>Credit phase-Out</header> <paragraph commented="no" id="id8029E58A407345408174DFBFF1FF6E76"><enum>(1)</enum><header>In general</header><text>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—</text> <subparagraph commented="no" id="id8640C6A9CAFC45F58960B62A69467E1A"><enum>(A)</enum><text>the amount of the credit determined under subsection (a) without regard to this subsection, multiplied by</text></subparagraph> <subparagraph commented="no" id="id0297DC060B7B4819AEFFA3FDAC833BCD"><enum>(B)</enum><text>the phase-out percentage under paragraph (2).</text></subparagraph></paragraph> <paragraph id="idAAEBE46473AA4E19BFDC45F23B964541"><enum>(2)</enum><header>Phase-out percentage</header><text>The phase-out percentage under this paragraph is equal to—</text> <subparagraph id="id9D4A15EE0C9D41908874BE5D04BC6355"><enum>(A)</enum><text>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,</text></subparagraph> <subparagraph id="id8033B3552FDE43BF9013DCAB35B34B46"><enum>(B)</enum><text>for a vehicle sold or acquired during the second calendar year following such determination year, 75 percent,</text></subparagraph> <subparagraph id="id6A80A98A16B944ABA7C1D8B47F7BA70E"><enum>(C)</enum><text>for a vehicle sold or acquired during the third calendar year following such determination year, 50 percent, and</text></subparagraph> <subparagraph commented="no" id="idF2356DD4A97B435E99F5B2A534804929"><enum>(D)</enum><text>for a vehicle sold or acquired during any calendar year subsequent to the year described in subparagraph (C), 0 percent.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="id400A7D7B686743C5A1106B5280E60B22"><enum>(6)</enum><header>Qualified commercial electric vehicles</header> <subparagraph id="idD8AA047A173C4CBD94491B95BAFD0BE0"><enum>(A)</enum><header>In general</header><text>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:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="id8724284E9BF2417A85B63DD895765A43"> <section id="id69015CFF6ABF4B5CB7900B1FD6CA1020"><enum>45W.</enum><header>Credit for qualified commercial electric vehicles</header> <subsection id="idEFFBDE83CC954B8B90F346F8B653AB29"><enum>(a)</enum><header>In general</header><text>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.</text></subsection> <subsection id="id48BCE4A3E24346D3851994BBE85A2289"><enum>(b)</enum><header>Per vehicle amount</header> <paragraph id="id8582373E1DB24F55B504CAB68461C339"><enum>(1)</enum><header>In general</header><text>The amount determined under this subsection with respect to any qualified commercial electric vehicle shall be equal the lesser of—</text> <subparagraph id="id83C3CAA3DEF94E4FA3105081DAC3456D"><enum>(A)</enum><text>30 percent of the basis of such vehicle, or</text></subparagraph> <subparagraph id="id8A3BFAE0C7C049BC8184900FEDEB2C49"><enum>(B)</enum><text>the incremental cost of such vehicle.</text></subparagraph></paragraph> <paragraph id="idEE3C8845ABFD4E488F59D2162A775ADE"><enum>(2)</enum><header>Incremental cost</header> <subparagraph id="id27D4FFBB982D4EB2826BBFF726EE91C9"><enum>(A)</enum><header>In general</header><text>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.</text></subparagraph> <subparagraph id="idA02BC5E8A1D64121A0A8C8BE437F2288"><enum>(B)</enum><header>Comparable vehicle</header><text>For purposes of this paragraph, the term <term>comparable vehicle</term> 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.</text></subparagraph></paragraph></subsection> <subsection id="idBABE6FD936924E5BB91AB966B0D97DE0"><enum>(c)</enum><header>Qualified commercial electric vehicle</header><text>For purposes of this section, the term <term>qualified commercial electric vehicle</term> means any vehicle which—</text> <paragraph id="id4869A49614A04E308EC61DF9D998AECD"><enum>(1)</enum><text>meets the requirements of subparagraphs (A), (B), (C), (D), and (G) of section 36C(c)(1),</text></paragraph> <paragraph id="id8FA2D81BB474421DAF747EB3168FD7A8"><enum>(2)</enum><text>is primarily propelled by an electric motor which draws electricity from a battery which—</text> <subparagraph id="idB1E0062D99904424828950DAB1C3ED30"><enum>(A)</enum><text>has a capacity of not less than 10 kilowatt hours, and</text></subparagraph> <subparagraph id="id145FD34C51FB48B19C5B35B235C12EF6"><enum>(B)</enum><text>is capable of being recharged from an external source of electricity, and</text></subparagraph></paragraph> <paragraph id="id887D03B3E36E4345A541508D2B684FA9"><enum>(3)</enum><text>is of a character subject to the allowance for depreciation.</text></paragraph></subsection> <subsection id="id76B5D2D8901540AE92EB3E000524BC99"><enum>(d)</enum><header>Special rules</header> <paragraph id="id3FBA942EDE7041F28820749ACEF020D1"><enum>(1)</enum><header>In general</header><text>Rules similar to the rules under subsections (d) of section 36C shall apply for purposes of this section.</text></paragraph> <paragraph id="idCB2C3A5E4CD44B138ED88798302301FF"><enum>(2)</enum><header>Property used by tax-exempt entity</header><text>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.</text></paragraph></subsection> <subsection id="id941FE9AAF48243ACAA1034511C556A4D"><enum>(e)</enum><header>Credit phase-Out</header> <paragraph commented="no" id="idF0EE9118280D445AA6E351D9A8875768"><enum>(1)</enum><header>In general</header><text>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—</text> <subparagraph commented="no" id="idAD1424A97A7A456A847A15AD9BA0C694"><enum>(A)</enum><text>the amount of the credit determined under subsection (a) without regard to this subsection, multiplied by</text></subparagraph> <subparagraph commented="no" id="id296E435B44074076AE12F6B80B19E254"><enum>(B)</enum><text>the phase-out percentage under paragraph (2).</text></subparagraph></paragraph> <paragraph id="id6407367D11764C2EBE5B38272B101C11"><enum>(2)</enum><header>Phase-out percentage</header><text>The phase-out percentage under this paragraph is equal to—</text> <subparagraph id="id793CBE5CBC1544DF84CC99232E6A2F58"><enum>(A)</enum><text>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,</text></subparagraph> <subparagraph id="idEBB70A7C77754213854DA699F1FB9B04"><enum>(B)</enum><text>for a vehicle acquired during the second calendar year following such determination year, 75 percent,</text></subparagraph> <subparagraph id="id66F393F865424CF88653F32B9460F853"><enum>(C)</enum><text>for a vehicle acquired during the third calendar year following such determination year, 50 percent, and</text></subparagraph> <subparagraph commented="no" id="id4FF4042D18F14779BA9714BFB728A4D1"><enum>(D)</enum><text>for a vehicle acquired during any calendar year subsequent to the year described in subparagraph (C), 0 percent.</text></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph> <subparagraph id="id4CB9A5F726B141948AD6BEFA29211078"><enum>(B)</enum><header>Conforming amendments</header> <clause id="id89525C6F681B45C8BC4AB591C9F7F5CC"><enum>(i)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/38">Section 38(b)</external-xref> is amended by striking paragraph (30) and inserting the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="id3BE16E22FC3745B3A8D6E6F91E6B71E8"> <paragraph id="idB13E0F159CDF45A481FEE4D110A1742F"><enum>(30)</enum><text>the qualified commercial electric vehicle credit determined under section 45W,</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></clause> <clause id="id47CFD2AA5D654067B4220E91138104CD"><enum>(ii)</enum><text>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:</text> <quoted-block display-inline="no-display-inline" id="idD364C8059D024C39A438ED5AF8F065A5" style="OLC"> <toc> <toc-entry bold="off" level="section">Sec. 45W. Credit for qualified commercial electric vehicles.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph> <subparagraph id="id92508895C2744523945E21EED11E4985"><enum>(C)</enum><header>Effective date</header><text>The amendments made by this paragraph shall apply to vehicles acquired after December 31, 2021.</text></subparagraph></paragraph></subsection></section> <section id="id48A72A70C8024FD9BDD67F45A9667029"><enum>203.</enum><header>Temporary extensions of existing fuel incentives</header> <subsection id="id7513F083960D4A17AF7CBEAB2A7C4C15"><enum>(a)</enum><header>Second generation biofuel producer credit</header> <paragraph id="idC6226C6C8A2048479E66D30C84E00BB1"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/40">Section 40(b)(6)(J)(i)</external-xref> is amended by striking <quote>2022</quote> and inserting <quote>2023</quote>.</text></paragraph> <paragraph id="idFB3D590D796645D7BBC6176240B3E6B2"><enum>(2)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to qualified second generation biofuel production after December 31, 2021.</text></paragraph></subsection> <subsection id="idB0C2D715BE3D4B7A9D69DFDE5C1267FB"><enum>(b)</enum><header>Credit for alternative fuel mixtures</header> <paragraph id="id1AFB82E696104C6EA21FEFFE308C557E"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6426">Section 6426</external-xref> is amended—</text> <subparagraph id="id8103579C592742D8AC6554DC96417566"><enum>(A)</enum><text>in subsection (d)—</text> <clause id="id0BD7BE4229DA4B7CA1AF8FD6D5977845"><enum>(i)</enum><text>in paragraph (2)(D), by striking <quote>liquefied</quote>, and</text></clause> <clause id="idFF0C5AD72E674C388F5C407F62AA0605"><enum>(ii)</enum><text>in paragraph (5), by striking <quote>2021</quote> and inserting <quote>2022</quote>, and</text></clause></subparagraph> <subparagraph id="id91EFA9213EA24C9D88F4A4F7F6340E00"><enum>(B)</enum><text>in subsection (e)—</text> <clause id="id19B9C287DE784B6D9336265A29BEC0F5"><enum>(i)</enum><text>in paragraph (2), by inserting <quote>nonliquid hydrogen or</quote> before <quote>a fuel described</quote>, and</text></clause> <clause id="id55A25BE5A68B4D8794BC8E0D5191E57A"><enum>(ii)</enum><text>in paragraph (3), by striking <quote>2021</quote> and inserting <quote>2022</quote>.</text></clause></subparagraph></paragraph> <paragraph id="idE4BC6D3CEC8844B4A67AD44FC4B5976C"><enum>(2)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to fuel sold or used after December 31, 2021.</text></paragraph></subsection> <subsection id="idC1A713D3479D47DBB53105CC59F65E46"><enum>(c)</enum><header>Biodiesel, biodiesel mixtures, and alternative fuels</header> <paragraph id="idD878A60BAC1B465F92C320D53056C20C"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6427">Section 6427(e)(6)(C)</external-xref> is amended by striking <quote>2021</quote> and inserting <quote>2022</quote>.</text></paragraph> <paragraph id="idAFA0891C8D2A4B71A5F7591B517A2599"><enum>(2)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to fuel sold or used after December 31, 2021.</text></paragraph></subsection></section> <enum>III</enum><header>Incentives for Energy Efficiency</header> <section id="idD486FBCEF82A43E1B4644999E63B7E50"><enum>301.</enum><header>Credit for new energy efficient residential buildings</header> <subsection id="idDF88F00964F74B3994F9BD6129D536C4"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45L">Section 45L</external-xref> is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="id9D61A4CF88AB49ED9D486D52416AA0F9" style="OLC"> <section id="id118845F6E8AC4E018D6A4B15B223D868"><enum>45L.</enum><header>New energy efficient home credit</header> <subsection id="id1CF1940915814D5B9BB09F124DC0E50C"><enum>(a)</enum><header>Allowance of credit</header><text>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—</text> <paragraph id="id36F912738C8542D4B9E836B3286C69CF"><enum>(1)</enum><text>constructed by the eligible contractor, and</text></paragraph> <paragraph id="id8A8E2B6D13AD4021BBEF2CE75346B227"><enum>(2)</enum><text>acquired by a person from such eligible contractor for use as a residence during the taxable year.</text></paragraph></subsection> <subsection id="id145B08EB2B3F4984B5948A82779A183F"><enum>(b)</enum><header>Applicable amount</header> <paragraph id="idD7F96A334249442B862513E15C9D4A9F"><enum>(1)</enum><header>In general</header><text>For purposes of subsection (a), the applicable amount shall be an amount equal to—</text> <subparagraph id="id83C97AF6BD1C4A748121FF21E576E30E"><enum>(A)</enum><text>in the case of a qualified residence described in subclause (I) of subsection (c)(3)(A)(iii), $2,500, and</text></subparagraph> <subparagraph id="id881791DBDC3243BDA1EBFFA67A4C7928"><enum>(B)</enum><text>in the case of a qualified residence described in subclause (II) of such subsection, $5,000.</text></subparagraph></paragraph> <paragraph id="id91FB9964811B4D2BAC3B02B80BBCB8A4"><enum>(2)</enum><header>Adjustment for inflation</header> <subparagraph id="idDCBB055EC55242BCBEC5D4A85FD6A2BE"><enum>(A)</enum><header>In general</header><text>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—</text> <clause id="idB67B1208DD3E4258A21BF09C3918E7E5"><enum>(i)</enum><text>such dollar amount, multiplied by</text></clause> <clause id="id28584AD431D3422F95570B74F1D525CF"><enum>(ii)</enum><text>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting <quote>calendar year 2021</quote> for <quote>calendar year 2016</quote> in subparagraph (A)(ii) thereof.</text></clause></subparagraph> <subparagraph id="id1A28A1C133554D1EB10A3FAD63709816"><enum>(B)</enum><header>Rounding</header><text>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. </text></subparagraph></paragraph></subsection> <subsection id="idC8C96793949242B19076207DE7178889"><enum>(c)</enum><header>Definitions</header><text>For purposes of this section:</text> <paragraph id="id78CB3A5A3B2E404497528FDD7F6500EA"><enum>(1)</enum><header>Construction</header><text>The term <term>construction</term> does not include substantial reconstruction or rehabilitation.</text></paragraph> <paragraph id="id8304CE9C307241AE9C04631F706BA8CF"><enum>(2)</enum><header>Eligible contractor</header><text>The term <term>eligible contractor</term> means—</text> <subparagraph id="id2D198554771F4D6285419D12B935136D"><enum>(A)</enum><text>the person who constructed the qualified residence, or</text></subparagraph> <subparagraph id="idDF4A61D794AD422FACA0DB98B2FFAE56"><enum>(B)</enum><text>in the case of a qualified residence which is a manufactured home, the manufactured home producer of such residence.</text></subparagraph></paragraph> <paragraph id="id16F0C5E32F2E44BAAC31933BBD4304FD"><enum>(3)</enum><header>Qualified residence</header> <subparagraph id="idE462B33417F74445975FB979BB16057C"><enum>(A)</enum><header>In general</header><text>The term <term>qualified residence</term> means a dwelling unit—</text> <clause id="idCF5001BE556147EFB832594211DC5E55"><enum>(i)</enum><text>located in the United States,</text></clause> <clause id="id9FBA356B3F9D49C997B2EB8BA3B6D583"><enum>(ii)</enum><text>the construction of which is substantially completed after the date of the enactment of this section,</text></clause> <clause id="idFA566CF78D6A490CA713C25C7A6CEC72"><enum>(iii)</enum><text>which is certified as satisfying the requirements for new residential construction under—</text> <subclause id="id15FB0F61A20B4CFFB0B5094F79F45F11"><enum>(I)</enum><text>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</text></subclause> <subclause id="idA98077854418498981EB6F0A2E3D1156"><enum>(II)</enum><text>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</text></subclause></clause> <clause id="id3C8172163D8F468BA9CC150A5A7D8DA5"><enum>(iv)</enum><text>which satisfies the requirements under subparagraph (B).</text></clause></subparagraph> <subparagraph commented="no" id="id959FE1C1CEFC427980160D72A6864972"><enum>(B)</enum><header>Wage requirements</header><text>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 <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code. </text></subparagraph></paragraph></subsection> <subsection id="id6E3615E84723462B8EB8780E3FF353B2"><enum>(d)</enum><header>Certification</header><text>A certification described in this section shall be made—</text> <paragraph id="id9D79CEEA2C3843AF807DC31CEFCC4D16"><enum>(1)</enum><text>by a third party which is accredited by a certification program approved by the Secretary, in consultation with the Secretary of Energy, and</text></paragraph> <paragraph id="id19460BA97AC445ADBDB07835713DAB04"><enum>(2)</enum><text>in accordance with—</text> <subparagraph id="id15C631FE657B410DB8432674F72C9254"><enum>(A)</enum><text>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</text></subparagraph> <subparagraph id="id9F50686E0F764B908FF39DDC6A18B656"><enum>(B)</enum><text>guidance prescribed by the Secretary, in consultation with the Secretary of Energy.</text></subparagraph></paragraph></subsection> <subsection id="id0C7FB384A2A94045953E33C98AA640D4"><enum>(e)</enum><header>Basis adjustment</header><text>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.</text></subsection> <subsection id="id406E25723B294850BFA32A75BA4D03E7"><enum>(f)</enum><header>Coordination with investment credits</header><text>For purposes of this section, expenditures taken into account under section 25D or 47 shall not be taken into account under this section.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="id401F607249D947ECA2E302657FF2F19F"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to any qualified residence acquired after December 31, 2021.</text></subsection></section> <section id="id404059E1608247009D0B88142230A598"><enum>302.</enum><header>Energy efficient home improvement credit</header> <subsection id="id8DE9E391958647A49FEC14F0209F908F"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25C">Section 25C</external-xref> is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="idBA0B68A7F9D14A64A8D76C183C5F14D4" style="OLC"> <section id="idB909D2962C994CF5A1164A13A1B49D15"><enum>25C.</enum><header>Energy efficient home improvement credit</header> <subsection id="id8522BB02392549548733D4A96F319165"><enum>(a)</enum><header>In general</header><text>In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the lesser of—</text> <paragraph id="idA874D8CA1B9C4625A6F5FDEAFD627DAE"><enum>(1)</enum><text>the sum of the applicable qualified property amounts for any qualified property placed in service by the individual during such taxable year, or</text></paragraph> <paragraph id="idBAF828F4A2D949108084CCC4006731DA"><enum>(2)</enum><text>$1,500.</text></paragraph></subsection> <subsection id="id9B254C23E200492A8CDC058FA7394039"><enum>(b)</enum><header>Applicable qualified property amount</header> <paragraph id="id77AC27893C304EF3B13A88241C60CF62"><enum>(1)</enum><header>In general</header><text>For any qualified property, the applicable qualified property amount shall be equal to the lesser of—</text> <subparagraph id="id9F6759B3D68E495EA37017ED2C2CC54F"><enum>(A)</enum><text>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</text></subparagraph> <subparagraph id="idDA452702ADD542A081E2315266FA37D2"><enum>(B)</enum><text>$600.</text></subparagraph></paragraph> <paragraph id="idA2387C472C484B30B755A3F3331FFE5E"><enum>(2)</enum><header>Adjustment for inflation</header> <subparagraph id="id9260B53577A24462827E715D3A50AEB8"><enum>(A)</enum><header>In general</header><text>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—</text> <clause id="id4A46D44AC4EB4711B69FB0C0C7FFFD5A"><enum>(i)</enum><text>such dollar amount, multiplied by</text></clause> <clause id="id0D3F7199210C434BB4C335B788DD31FD"><enum>(ii)</enum><text>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting <quote>calendar year 2021</quote> for <quote>calendar year 2016</quote> in subparagraph (A)(ii) thereof.</text></clause></subparagraph> <subparagraph id="idF147A05B889B4EA7B23AF9E50E126D4D"><enum>(B)</enum><header>Rounding</header><text>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. </text></subparagraph></paragraph></subsection> <subsection id="idCD1C84ED1BF24F38AC8771E7BE5A5971"><enum>(c)</enum><header>Qualified property</header> <paragraph id="id983F3A5A236D42EAB83582E822D987CA"><enum>(1)</enum><header>In general</header><text>The term <term>qualified property</term> means a furnace, boiler, condensing water heater, central air conditioning unit, heat pump, biomass property, or building envelope improvement which—</text> <subparagraph id="idFCCD237FDB1A45BCA56D42F312CDFA4B" commented="no"><enum>(A)</enum><text>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,</text></subparagraph> <subparagraph id="idAB87DD4E8CEE4B62BD05542DE0CDB125"><enum>(B)</enum><text>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,</text></subparagraph> <subparagraph id="id55B9D303CFDF4D81ACEFBDBE5E09E38D"><enum>(C)</enum><text>is for use in a dwelling unit which is located in the United States and used as a residence by the individual, and</text></subparagraph> <subparagraph id="id5F975B2133194E92A62BBAE9A756EA1F"><enum>(D)</enum><text>is reasonably expected to remain in service in such dwelling unit for not less than 5 years.</text></subparagraph></paragraph> <paragraph id="id823E2A7CB9CB4894BD261F7DEDF40E00"><enum>(2)</enum><header>Special rules for certain heat pumps</header> <subparagraph id="id4CCDA5EA0F394747AE3A630929EE6B74"><enum>(A)</enum><header>Air-source heat pumps</header><text>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 <quote>$800</quote> for <quote>$600</quote>.</text></subparagraph> <subparagraph id="id6486C734968E4F32988B312F83048296"><enum>(B)</enum><header>Ground source heat pump</header> <clause id="id584E420FC68545BC9CE8DB59DB0FDCB6"><enum>(i)</enum><header>In general</header><text>In the case of any qualified geothermal heat pump property which satisfies the requirements under subparagraphs (B) through (D) of paragraph (1)—</text> <subclause id="idFA9AF740C4484D28ADACBCF14351EBEA"><enum>(I)</enum><text>subsection (b)(1)(B) shall be applied by substituting <quote>$10,000</quote> for <quote>$600</quote>, and</text></subclause> <subclause id="idF66DFA6A580C4C6CB71AD30F7E0BE8FB"><enum>(II)</enum><text>subsection (a)(2) shall not apply.</text></subclause></clause> <clause id="id74C3FBDB07DB4B2CA3319110E9D6D56C"><enum>(ii)</enum><header>Qualified geothermal heat pump property</header><text>For purposes of this subparagraph, the term <term>qualified geothermal heat pump property</term> means any equipment which—</text> <subclause id="id7F2BF4EFC58B4B499921FB51F70DDCDF"><enum>(I)</enum><text>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</text></subclause> <subclause id="id16983BF72CDF4F4FAAD3747B6D3F2013"><enum>(II)</enum><text>meets the requirements of the Energy Star program which are in effect at the time that the expenditure for such equipment is made.</text></subclause></clause></subparagraph></paragraph> <paragraph id="id5C944FE3BBE44C1AB6684FC0827C8087"><enum>(3)</enum><header>Special rule for insulation</header><text>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.</text></paragraph></subsection> <subsection id="id8C80D143E21E4BF6AD9F890BD4B52685"><enum>(d)</enum><header>Other definitions</header> <paragraph id="id59CA19651B7140AAA50A2FB3308292E6"><enum>(1)</enum><header>Biomass property</header> <subparagraph id="id2C6FD6506E154667B4B5983A09FD2AA9"><enum>(A)</enum><header>In general</header><text>For purposes of this section, the term <term>biomass property</term> means any property which—</text> <clause id="id79CB6B4A665E4FD59E71239BFF4235CE"><enum>(i)</enum><text>uses the burning of biomass fuel to heat a dwelling unit or to heat water for use in a dwelling unit, and</text></clause> <clause id="id4283BC2796EA480CBCA04C4AA89BD009"><enum>(ii)</enum><text>using the higher heating value, has a thermal efficiency of not less than 75 percent.</text></clause></subparagraph> <subparagraph id="id742A35D333F34E359101A67C87942CF5"><enum>(B)</enum><header>Biomass fuel</header><text>For purposes of subparagraph (A), the term <term>biomass fuel</term> 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).</text></subparagraph></paragraph> <paragraph id="id2BE74FC90C6645D1B232B57C654EBF8D"><enum>(2)</enum><header>Building envelope improvement</header><text>For purposes of this section, the term <term>building envelope improvement</term> means—</text> <subparagraph id="idA3206BD6596C40CABD85BC864A3F82E7"><enum>(A)</enum><text>any insulation material or system which—</text> <clause id="id0F8357DD3B0E4E7CB17FF86CD2A65AEC"><enum>(i)</enum><text>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</text></clause> <clause id="id4B610D300A754681B485D756BC039B61"><enum>(ii)</enum><text>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</text></clause></subparagraph> <subparagraph id="idD3094C5D2B374711A2BF9077DB2757A1"><enum>(B)</enum><text>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.</text></subparagraph></paragraph> <paragraph id="id25C065D4F9024B7D845355F2252504BE"><enum>(3)</enum><header>Manufactured homes included</header><text>For purposes of this section, the term <term>dwelling unit</term> includes a manufactured home which conforms to Federal Manufactured Home Construction and Safety Standards (part 3280 of title 24, Code of Federal Regulations).</text></paragraph></subsection> <subsection id="id2193CD018CE748D68D9CC7539A7C7CE8"><enum>(e)</enum><header>Denial of double benefit</header><text>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.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="id2CD491EDCA8C454480F38A22ABC8A507"><enum>(b)</enum><header>Clerical amendment</header><text>The table of sections for subpart A of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by striking the item relating to section 25C and inserting after the item relating to section 25B the following item:</text> <quoted-block display-inline="no-display-inline" id="id4D5F6EEF353D4B8994EE03719D950959" style="OLC"> <toc> <toc-entry bold="off" level="section">25C. Energy efficient home improvement credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="id5279FBA613804B5B9365E76BAD9F8D9E"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to qualified property placed in service after December 31, 2021.</text></subsection></section> <section id="id56942482A82B4996BDFAA944CB8AB255"><enum>303.</enum><header>Enhancement of energy efficient commercial buildings deduction</header> <subsection id="id017493AB165E45D6AE5D32501E0116FB"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D</external-xref> is amended—</text> <paragraph id="id6B5518BAE65344DE9820CAA2E6010EEE"><enum>(1)</enum><text>by striking subsection (b) and inserting the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="id99978FC2D34246C29DB48369DF2B37CE"> <subsection id="idD35F9F6585434A85ABEFE269AF8D5445"><enum>(b)</enum><header>Maximum amount of deduction</header> <paragraph id="id45BDD2E0D3984FD5AC05CBAEB842B022"><enum>(1)</enum><header>In general</header><text>The deduction under subsection (a) with respect to any building for any taxable year shall not exceed the excess (if any) of—</text> <subparagraph id="id258A37D6975F4F0197C9802BF3200FC8"><enum>(A)</enum><text>the product of—</text> <clause id="id2CED2AEEBBF442CFA0E2BDD1EEFE1481"><enum>(i)</enum><text>the applicable dollar value, and</text></clause> <clause id="id542721CC6AFA4C0A8007EB0BA57047B6"><enum>(ii)</enum><text>the square footage of the building, over</text></clause></subparagraph> <subparagraph id="idE6844E2260FA4196A4B288CB2E728434"><enum>(B)</enum><text>the aggregate amount of the deductions under subsection (a) with respect to the building for all prior taxable years.</text></subparagraph></paragraph> <paragraph id="idB742C2BA320C4160A78EF45AA49F65CA"><enum>(2)</enum><header>Applicable dollar value</header><text>For purposes of paragraph (1)(A)(i), the applicable dollar value shall be an amount equal to $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.</text></paragraph></subsection><after-quoted-block>,</after-quoted-block></quoted-block></paragraph> <paragraph id="id28DE184EFCA54485B6C002E33152982C"><enum>(2)</enum><text>in subsection (c)(1)—</text> <subparagraph id="id386E7A864116403986E2A7240A655E3F"><enum>(A)</enum><text>in subparagraph (C)(iii), by striking <quote>and</quote> at the end,</text></subparagraph> <subparagraph id="idAFB7B743983E41ABB3149BA78C42505A"><enum>(B)</enum><text>in subparagraph (D)—</text> <clause id="id1B40929A7D844A5B895C4EAE337C1C00"><enum>(i)</enum><text>by striking <quote>50 percent</quote> and inserting <quote>25 percent</quote>, and</text></clause> <clause id="idE216085DB8764B1294BDD4A3089437F8"><enum>(ii)</enum><text>by striking the period at the end and inserting <quote>, and</quote>, and</text></clause></subparagraph> <subparagraph id="id6DE1BAC5D9384C0782944D246A19DB75"><enum>(C)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="idFB62FEAE54724E1681073F065159E635"> <subparagraph id="id55B573EF38D94CC0B9C75A071395F8CB"><enum>(E)</enum><text>which satisfies the requirements—</text> <clause id="idD2853843F94E4907919963F8CFF7D410"><enum>(i)</enum><text>under subsection (d)(7), and</text></clause> <clause id="idFA9A9A558A6E468DB8E3793448F138A5"><enum>(ii)</enum><text>with respect to the construction of such property, the requirements under section 601 of the <short-title>Clean Energy for America Act</short-title>.</text></clause></subparagraph><after-quoted-block>,</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="id865DDA9BF2C64DB3BBE292863A59FD53"><enum>(3)</enum><text>in subsection (d)—</text> <subparagraph id="id2831C386884E4D30B474CA1D8E3C1FBD"><enum>(A)</enum><text>by striking paragraph (1),</text></subparagraph> <subparagraph id="idE33861844DAE4855987B5AFE56E55E68"><enum>(B)</enum><text>by striking paragraph (4) and inserting the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="id3DAB717DD5F0410E83A2C27F9EFC5E1D"> <paragraph id="idF29EB55C8A754570A9C138107670F581"><enum>(4)</enum><header>Allocation of deduction</header> <subparagraph id="idA081FC3286674A02B1A5B755F44A35EC"><enum>(A)</enum><header>In general</header><text>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.</text></subparagraph> <subparagraph id="idA4E5DFE19D454E099FBAF537355AAE09"><enum>(B)</enum><header>Eligible entity</header><text>For purposes of this paragraph, the term <term>eligible entity</term> means—</text> <clause id="idC81ABCE8E6D7405FA2A3BE65FC69BFDC"><enum>(i)</enum><text>a Federal, State, or local government or a political subdivision thereof,</text></clause> <clause id="idF7412C765C8C4EACB46DC3BD0830BBEA"><enum>(ii)</enum><text>an Indian tribe (as defined in section 45A(c)(6)), or</text></clause> <clause id="id0A94B869578B4597BA2A4EFDCF740584"><enum>(iii)</enum><text>an organization described in section 501(c) and exempt from tax under section 501(a).</text></clause></subparagraph></paragraph><after-quoted-block>, and</after-quoted-block></quoted-block></subparagraph> <subparagraph id="id87F13B1DA2BF442CB8BACFE9449E1B6D"><enum>(C)</enum><text>by adding at the end the following:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="id92E16E365430426380044FB422E7DF7F"> <paragraph commented="no" id="id20817F6DFAD34DFCAEC1773ED2AE8269"><enum>(7)</enum><header>Wage requirements</header><text>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 <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/40/31">chapter 31</external-xref> of title 40, United States Code.</text></paragraph><after-quoted-block>,</after-quoted-block></quoted-block></subparagraph></paragraph> <paragraph id="id7EAC5F073C3B47F68F81B8F710316F62"><enum>(4)</enum><text>by striking subsection (f), and</text></paragraph> <paragraph id="idB759A31DE94F40B08DEB7A4E78823EB2"><enum>(5)</enum><text>in subsection (g)—</text> <subparagraph id="id1D28066EA0A643F0AF51489A1C084079"><enum>(A)</enum><text>by striking <quote>2020, each dollar amount in subsection (b) or subsection (d)(1)(A)</quote> and inserting <quote>2022, each dollar amount in subsection (b)(2)</quote>,</text></subparagraph> <subparagraph id="id641FE355439E48609E31635D038586A3"><enum>(B)</enum><text>in paragraph (2), by striking <quote>2019</quote> and inserting <quote>2021</quote>, and</text></subparagraph> <subparagraph id="id7835A3FA677649128E607D8A35F3C495"><enum>(C)</enum><text>in the flush matter at the end, by striking <quote>a multiple of 1 cent shall be rounded to the nearest cent</quote> and inserting <quote>a multiple of 10 cents shall be rounded to the nearest multiple of 10 cents</quote>.</text></subparagraph></paragraph></subsection> <subsection id="id0D41FBE73F6D44269F0517E6F70A06A8"><enum>(b)</enum><header>Conforming amendments</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D</external-xref>, as amended by subsection (a), is amended—</text> <paragraph id="id6B4C1F3A61C7491E93ADA3F74BCB60F6"><enum>(1)</enum><text>in subsection (c)(1)(D)—</text> <subparagraph id="id1663C2A4EE024735A00230DCB8833251"><enum>(A)</enum><text>by striking <quote>subsection (d)(6)</quote> and inserting <quote>subsection (d)(5)</quote>, and</text></subparagraph> <subparagraph id="id88583648074D4F08B21979F6FE03B3CD"><enum>(B)</enum><text>by striking <quote>subsection (d)(2)</quote> and inserting <quote>subsection (d)(1)</quote>,</text></subparagraph></paragraph> <paragraph id="idEE6B50BB0A9F4514B930C0CB35FC1256"><enum>(2)</enum><text>in subsection (d)—</text> <subparagraph id="id86BE9EC2DC0F4E70A40493F62BBEF636"><enum>(A)</enum><text>by redesignating paragraphs (2) through (6) as paragraphs (1) through (5), respectively,</text></subparagraph> <subparagraph id="id9885F83634D44A9BB7590CC90DB24342"><enum>(B)</enum><text>in paragraph (2), as so redesignated, by striking <quote>paragraph (2)</quote> and inserting <quote>paragraph (1)</quote>, and</text></subparagraph> <subparagraph id="id03357A949A9D4CE3B949318DA31BFD42"><enum>(C)</enum><text>in paragraph (4), as so redesignated, by striking <quote>paragraph (3)(B)(iii)</quote> and inserting <quote>paragraph (2)(B)(iii)</quote>,</text></subparagraph></paragraph> <paragraph id="id075A74A490944694A750C3889195C50A"><enum>(3)</enum><text>by redesignating subsections (g) and (h) as subsections (f) and (g), respectively, and</text></paragraph> <paragraph id="id3E68F768C3C64ED1B8390B72BB5AFE75"><enum>(4)</enum><text>in subsection (g)(2), as so redesignated, by striking <quote>or (d)(1)(A)</quote>.</text></paragraph></subsection> <subsection id="idCC642DA5BC8F42EDA01B87B39F9C99A4"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to any property placed in service after December 31, 2021.</text></subsection></section> <section id="id08F2D7EA95DB49D48F278DD43707E5E3"><enum>304.</enum><header>Enhancement of energy credit for geothermal heat pumps</header> <subsection id="idD6939FCD94DE4F1ABA0931D2B2AE6BD1"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)</external-xref> is amended—</text> <paragraph id="idFA568991E1984134920F5A8B4831F65F"><enum>(1)</enum><text>in paragraph (2)(A)(i)(III), by striking <quote>paragraph (3)(A)(ii)</quote> and inserting <quote>clause (ii) or (vii) of paragraph (3)(A)</quote>, and</text></paragraph> <paragraph id="idF28A6EC68DEC432AB9D9691C8974428B"><enum>(2)</enum><text>in paragraph (3)(A)(vii), by striking <quote>but only with respect to property the construction of which begins before January 1, 2024,</quote>.</text></paragraph></subsection> <subsection id="id5ECA2DAE33ED48D5AF92F51554D7E118"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property the construction of which begins after December 31, 2021.</text></subsection></section> <enum>IV</enum><header>Clean electricity and fuel bonds</header> <section id="idDF764F6A2436427EABE4F487D099D6E6"><enum>401.</enum><header>Clean energy bonds</header> <subsection commented="no" id="id6E78C94BE9714464AA5C0D9A782BA85C"><enum>(a)</enum><header>In general</header><text>Part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after subpart G the following new subpart:</text> <quoted-block display-inline="no-display-inline" id="id3FDCCB311396441A938D076B913FC32D" style="OLC"> <subpart id="id88715A7D02C8498FBBF75C51850A45FC" style="OLC"><enum>H</enum><header>Clean energy bonds</header> <toc> <toc-entry bold="off" level="section">Sec. 54. Clean energy bonds.</toc-entry></toc> <section id="idEB779F292636478B80F08BCF9A54DA6A"><enum>54.</enum><header>Clean energy bonds</header> <subsection id="idBCD87E84825A4C96AFB4D98857E076A3"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text></subsection> <subsection id="id05519EA336CF407D9B53D89F3280B621"><enum>(b)</enum><header>Amount of credit</header> <paragraph id="id946FCD48C47141E8AA3BF7560FFDD924"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">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.</text></paragraph> <paragraph id="id6AD15147E43842D4B86FBE49B099DA17"><enum>(2)</enum><header>Applicable percentage</header> <subparagraph id="id556BB121A7F34C188F6B2C0E98977DEB"><enum>(A)</enum><header>In general</header> <clause id="idEC777AC2D50B4C2DB16A7EED643CC565"><enum>(i)</enum><header>Maximum percentage</header><text>Except as provided in clause (ii), the applicable percentage is 70 percent.</text></clause> <clause id="id0755E77FF7024C61B70B8F3413087821"><enum>(ii)</enum><header>Reduction of credit based on greenhouse gas emission rate</header><text>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).</text></clause></subparagraph> <subparagraph id="id4A866982FA1B445DAD5B986163C6F56F"><enum>(B)</enum><header>Rounding</header><text>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.</text></subparagraph> <subparagraph id="id58BAFF7017E640B3BD0BA6B30E06BD6F"><enum>(C)</enum><header>Published emissions rules</header><text>Rules similar to the rules of section 45V(b) shall apply for purposes of this section.</text></subparagraph></paragraph></subsection> <subsection id="id133643F0B67B4F27AE2AF36E51E1C65D"><enum>(c)</enum><header>Limitation based on amount of tax</header> <paragraph id="id623431944FBF4278977B03467F94DA1A"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The credit allowed under subsection (a) for any taxable year shall not exceed the excess of—</text> <subparagraph id="id12BDB5659DFD4139B3078A8EA2D11B87"><enum>(A)</enum><text display-inline="yes-display-inline">the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over</text></subparagraph> <subparagraph id="id063B96F382044B40B9506ABCF7353937"><enum>(B)</enum><text display-inline="yes-display-inline">the sum of the credits allowable under this part (other than subpart C and this subpart).</text></subparagraph></paragraph> <paragraph id="idB15D2EA2F88742F6AA7C8DE7785460C7"><enum>(2)</enum><header>Carryover of unused credit</header><text display-inline="yes-display-inline">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).</text></paragraph></subsection> <subsection id="id9FAC1BA637F449B19CDA36B691ADC09D"><enum>(d)</enum><header>Clean energy bond</header> <paragraph id="id4B04B62B62EB49BB983462750CC83EBF"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>clean energy bond</term> means any bond issued as part of an issue if—</text> <subparagraph id="id26C0B8E39019447ABF2132EEEF1DD95B"><enum>(A)</enum><text>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—</text> <clause id="id183FBFA3ECC24AC9944954C371A01FEF"><enum>(i)</enum><text>1 or more qualified facilities, or</text></clause> <clause id="id2EFFC233AE6845BEADDA5834F494A7B7"><enum>(ii)</enum><text>grid improvement property (as defined in section 48D(c)(1)(B)),</text></clause></subparagraph> <subparagraph id="idBB957A132EF1480A9A30E9A68583BB86"><enum>(B)</enum><text>the bond is issued by—</text> <clause commented="no" id="idC0BEBCE931B74FAE9B2360CC4339FB97"><enum>(i)</enum><text>a governmental body,</text></clause> <clause commented="no" id="id734EDCDEC4D741F5BB2888CCB40DA055"><enum>(ii)</enum><text>a public power provider, or</text></clause> <clause commented="no" id="id30DF4928440E44F8BC41D3B3CE218A9F"><enum>(iii)</enum><text>a cooperative electric company, and</text></clause></subparagraph> <subparagraph id="id6FA2283015204C8B9EC6B55369D7709D"><enum>(C)</enum><text>the issuer makes an irrevocable election to have this section apply.</text></subparagraph></paragraph> <paragraph id="idB49F0806E9BC42589D4575945C928608"><enum>(2)</enum><header>Applicable rules</header><text>For purposes of applying paragraph (1)—</text> <subparagraph id="id34FD17A1A5BE467092353DA7819D9C4F"><enum>(A)</enum><text>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,</text></subparagraph> <subparagraph id="id6C34B6212AD34831B14EA03A4ADA9068"><enum>(B)</enum><text>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</text></subparagraph> <subparagraph id="idE4ADE51BA5CA4508AE406240DDE3B39B"><enum>(C)</enum><text>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.</text></subparagraph></paragraph></subsection> <subsection id="id8C629DE21A814AE2BDDA88ED80516FFD"><enum>(e)</enum><header>Definitions</header><text>In this section:</text> <paragraph commented="no" id="idF75A20EDCA454086ABCD92673193F94E"><enum>(1)</enum><header>Available project proceeds</header><text>The term <term>available project proceeds</term> means—</text> <subparagraph commented="no" id="idECC77873AB694556A68C7CE26E8AD098"><enum>(A)</enum><text>the excess of—</text> <clause commented="no" id="id3F5B0F71943A4B8CAB7528E1DCE960BF"><enum>(i)</enum><text>the proceeds from the sale of an issue, over</text></clause> <clause commented="no" id="id7CF38868288347E2BD8D00969E5335AF"><enum>(ii)</enum><text>the issuance costs financed by the issue (to the extent that such costs do not exceed 2 percent of such proceeds), and</text></clause></subparagraph> <subparagraph commented="no" id="id2FA12CA19A58405BAD173F3CD5FEC38C"><enum>(B)</enum><text>the proceeds from any investment of the excess described in subparagraph (A).</text></subparagraph></paragraph> <paragraph commented="no" id="id8289DC99F4E04AD1BA213915D607637D"><enum>(2)</enum><header>Cooperative electric company</header><text>The term <term>cooperative electric company</term> means a mutual or cooperative electric company described in section 501(c)(12) or section 1381(a)(2)(C).</text></paragraph> <paragraph commented="no" id="id034C6FAF220A43409FD37E282D7BE2F4"><enum>(3)</enum><header>Governmental body</header><text>The term <term>governmental body</term> means any State or Indian tribal government, or any political subdivision thereof.</text></paragraph> <paragraph commented="no" id="id796FC47EF93748C29F17098F30576876"><enum>(4)</enum><header>Interest payment date</header><text>The term <term>interest payment date</term> means any date on which the holder of record of the clean energy bond is entitled to a payment of interest under such bond.</text></paragraph> <paragraph commented="no" id="idEDE5BD83CEAC48D4B3FE4C1CA1B18148"><enum>(5)</enum><header>Public power provider</header><text>The term <term>public power provider</term> 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).</text></paragraph> <paragraph commented="no" id="id6381B45C4B0F4AC392AE64D969077A69"><enum>(6)</enum><header>Qualified facility</header><text>The term <term>qualified facility</term> means a facility which—</text> <subparagraph commented="no" id="idD14F8720DD824E569C4B352BB369E9E3"><enum>(A)</enum><text>is described in section 45U(b)(1)(A) and satisfies the requirements under clause (iv) of such section, or</text></subparagraph> <subparagraph commented="no" id="idE712C18302DB4C9BBBEA5D18B3E680AB"><enum>(B)</enum> <clause commented="no" display-inline="yes-display-inline" id="idBED1D7AEC2BC4A1590AE61AC1E6C4CED"><enum>(i)</enum><text>is described in subsection (e)(4) of section 45V and satisfies the requirements under subparagraph (B) of such subsection, and </text></clause> <clause commented="no" id="id77A16847557E4737A6E87AB891120733" indent="up1"><enum>(ii)</enum><text>only produces transportation fuel which has an emissions rate of less than 75 kilograms of CO<subscript>2</subscript>e per mmBTU (as such terms are defined in subsections (b) and (e) of section 45V).</text></clause></subparagraph></paragraph></subsection> <subsection id="idC5843751D2984B81B9BD38E9D502DE9B"><enum>(f)</enum><header>Credit phase-Out</header> <paragraph id="id510F5898CBF749C6AD54EF84DE9C42E8"><enum>(1)</enum><header>Electrical production and energy storage property</header><text>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—</text> <subparagraph id="id63CB34363859432D8F6925B801281056"><enum>(A)</enum><text>the amount determined under subsection (b) without regard to this subsection, multiplied by</text></subparagraph> <subparagraph id="id8A3DDDCDE39648C988AF1B6B0E321355"><enum>(B)</enum><text>the phase-out percentage under paragraph (3).</text></subparagraph></paragraph> <paragraph id="id1AAA1561644E4AC3A5D38A9DDCFB0EDB"><enum>(2)</enum><header>Fuel production</header><text>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—</text> <subparagraph id="idC30A5518532B4A04BBCE66646B652A6C"><enum>(A)</enum><text>the amount determined under subsection (b) without regard to this subsection, multiplied by</text></subparagraph> <subparagraph id="idDF5DFCAA9A5D41EB8BA5C3FF59EA3AD5"><enum>(B)</enum><text>the phase-out percentage under paragraph (3).</text></subparagraph></paragraph> <paragraph id="id349F563F75064DCF98518A02C7492215"><enum>(3)</enum><header>Phase-out percentage</header><text>The phase-out percentage under this paragraph is equal to—</text> <subparagraph id="id7969B0FC738347CE8A325FCB7186C3D8"><enum>(A)</enum><text>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,</text></subparagraph> <subparagraph id="id5C06131432A94871A35C00E29A580CF8"><enum>(B)</enum><text>for any bond issued during the second calendar year following such determination year, 75 percent,</text></subparagraph> <subparagraph id="id27369FFCF48142DCBDB4ECB051277B22"><enum>(C)</enum><text>for any bond issued during the third calendar year following such determination year, 50 percent, and</text></subparagraph> <subparagraph commented="no" id="idFE7A0F17D71A4BCD934E70152604BD5E"><enum>(D)</enum><text>for any bond issued during any calendar year subsequent to the year described in subparagraph (C), 0 percent.</text></subparagraph></paragraph></subsection> <subsection commented="no" id="id15CA8EF1F94D4A97812A16DF3BA136A2"><enum>(g)</enum><header>Special rules</header> <paragraph commented="no" id="id19E61191A832435A85186BE871789C24"><enum>(1)</enum><header>Interest on clean energy bonds includible in gross income for Federal income tax purposes</header><text>For purposes of this title, interest on any clean energy bond shall be includible in gross income.</text></paragraph> <paragraph commented="no" id="id6718CB5596004F3B88BDBFD000E644C2"><enum>(2)</enum><header>S corporations and partnerships</header><text>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.</text></paragraph> <paragraph commented="no" id="idD7F41E831C47400DBCACA2D6A4F32018"><enum>(3)</enum><header>Bonds held by real estate investment trusts</header><text>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.</text></paragraph> <paragraph commented="no" id="id8D3DAE0802E4455A890C7D94D26949D7"><enum>(4)</enum><header>Credits may be stripped</header><text>Under regulations prescribed by the Secretary—</text> <subparagraph commented="no" id="id6ED715B4BB3648E9ACE553030886876A"><enum>(A)</enum><header>In general</header><text>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.</text></subparagraph> <subparagraph commented="no" id="id5022CEEC94B94BCFA5C21DC0284419AB"><enum>(B)</enum><header>Certain rules to apply</header><text>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.</text></subparagraph></paragraph></subsection> <subsection commented="no" id="idC9FD0DFBF47B4279B12FBD292D923B05"><enum>(h)</enum><header>Regulations</header><text>The Secretary may prescribe such regulations and other guidance as may be necessary or appropriate to carry out this section and section 6431.</text></subsection></section></subpart><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="id2009544EC8EF4ED4A20B692FCFCAEBFE"><enum>(b)</enum><header>Credit for qualified clean energy bonds allowed to issuer</header><text>Subchapter B of chapter 65 of subtitle F is amended by adding at the end the following new section:</text> <quoted-block display-inline="no-display-inline" id="id816FE72F2BEA404CABA269C6D0E6BF4F" style="OLC"> <section id="idC6DB8FF65450484FA13F334EC402310C"><enum>6431.</enum><header>Credit for qualified clean energy bonds allowed to issuer</header> <subsection id="id7F24C039BF0E42639E9AD46EEB680C2E"><enum>(a)</enum><header>In general</header><text>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).</text></subsection> <subsection id="idE69B2EDE7A5A46C9B44F196C4D8C41A8"><enum>(b)</enum><header>Payment of credit</header> <paragraph id="id9F590030FE534EBBB852D11A44ECE0FF"><enum>(1)</enum><header>In general</header><text>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.</text></paragraph> <paragraph id="idDDCAD5BFB01F495FBB509C940875D5B7"><enum>(2)</enum><header>Interest payment date</header><text>For purposes of this subsection, the term <term>interest payment date</term> means each date on which interest is payable by the issuer under the terms of the bond.</text></paragraph></subsection> <subsection id="idE9EA320865694ADEB651A999461199FA"><enum>(c)</enum><header>Application of arbitrage rules</header><text>For purposes of section 148, the yield on a qualified clean energy bond shall be reduced by the credit allowed under this section.</text></subsection> <subsection id="id8C6A013796634874B5553B7B1A095EFD"><enum>(d)</enum><header>Qualified clean energy bond</header><text>For purposes of this section, the term <term>qualified clean energy bond</term> 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.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="idB9C7B15F0F9746CBBF5ACE0A7F824CAB"><enum>(c)</enum><header>Conforming amendments</header> <paragraph commented="no" id="idBBBAF6DE2F854ECFA45031DC6D312379"><enum>(1)</enum><text>The table of subparts for part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after the item relating to subpart G the following:</text> <toc> <toc-entry bold="off" level="subpart"><quote>Subpart H—Clean Energy Bonds</quote>.</toc-entry></toc></paragraph> <paragraph id="id762E7F49B1C2425DB257A79424C6BFA6"><enum>(2)</enum><text>The table of sections for subchapter B of chapter 65 of subtitle F is amended by adding at the end the following new item:</text> <quoted-block display-inline="no-display-inline" id="id04CC2505FF224D34A9F79DE773131674" style="OLC"> <toc> <toc-entry bold="off" level="section">Sec. 6431. Credit for qualified clean energy bonds allowed to issuer.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="idBBFDE77EF2484C998E28C6765581A688"><enum>(3)</enum><text>Subparagraph (A) of <external-xref legal-doc="usc" parsable-cite="usc/26/6211">section 6211(b)(4)</external-xref> is amended by striking <quote>and 6428A</quote> and inserting <quote>6428A, and 6431</quote>.</text></paragraph></subsection> <subsection id="id1A73FFFBBE0F44B08D709878CF325EF7"><enum>(d)</enum><header>Gross-Up of payment to issuers in case of sequestration</header> <paragraph id="id98C57C20BAD540618A47219F6FE46774"><enum>(1)</enum><header>In general</header><text>In the case of any payment under subsection (b) of <external-xref legal-doc="usc" parsable-cite="usc/26/6431">section 6431</external-xref> 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—</text> <subparagraph id="id0A9D30E888CC467499DBEC29D7DA8830"><enum>(A)</enum><text>such payment (determined before such sequestration), multiplied by</text></subparagraph> <subparagraph id="idA8B662570CB54B54A4844BFF971A57DF"><enum>(B)</enum><text>the quotient obtained by dividing 1 by the amount by which 1 exceeds the percentage reduction in such payment pursuant to such sequestration.</text></subparagraph></paragraph> <paragraph id="idF38A12F256054B6F9B08C7CDBC5DC1E8"><enum>(2)</enum><header>Sequestration</header><text>For purposes of this subsection, the term <term>sequestration</term> 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.</text></paragraph></subsection> <subsection id="idE0EEB0113C864AFDA83197622074FCEC"><enum>(e)</enum><header>Effective date</header><text>The amendments made by this section shall apply to obligations issued after December 31, 2022.</text></subsection></section> <enum>V</enum><header>Termination of certain fossil fuel provisions</header> <section id="id6198C39847B34ACABF265F3B8A18FE70"><enum>501</enum><header>Termination of provisions relating to oil, gas, and other materials</header> <subsection id="id66C5F90542154A1182C31FC32354BA39"><enum>(a)</enum><header>Amortization of geological and geophysical expenditures</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/167">Section 167(h)</external-xref> is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="id05E94F0BB65B47E186ACD619400F2459" style="OLC"> <paragraph id="id9CFD9BC028EB4DE7A97566A3503B10B1"><enum>(6)</enum><header>Termination</header><text>This subsection shall not apply to any expenses paid or incurred during any taxable year beginning after the date of the enactment of the <short-title>Clean Energy for America Act</short-title>.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="idA4647B620CAA4387B5F012533E65E9DE"><enum>(b)</enum><header>Alaska natural gas pipelines</header><text>Subparagraph (B) of <external-xref legal-doc="usc" parsable-cite="usc/26/168">section 168(i)(16)</external-xref> is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="id4444AF94E40C48B59C353E2E3BFCA7C9" style="OLC"> <subparagraph id="idA5C111FE3976431795A10E46C13F72B0"><enum>(B)</enum><text>is—</text> <clause id="id1252CE45415B42D09FCAD3D2D0ABBD3F"><enum>(i)</enum> <subclause commented="no" display-inline="yes-display-inline" id="id6245A8446BE142C0AE8CDE2A0CFBA1E8"><enum>(I)</enum><text>placed in service after December 31, 2013, or</text></subclause> <subclause id="id287AFAE6A6BA4EBFB00D55C445A984B3" indent="up1"><enum>(II)</enum><text>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</text></subclause></clause> <clause id="id3176AC7E4AE648B3A6358BDA8058AF06"><enum>(ii)</enum><text>placed in service before the end of the calendar year in which the <short-title>Clean Energy for America Act</short-title> is enacted.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection id="idDAF6ED65543C4135A32700CFABEF393D"><enum>(c)</enum><header>Natural gas gathering line</header><text>Paragraph (17) of <external-xref legal-doc="usc" parsable-cite="usc/26/168">section 168(i)</external-xref> is amended—</text> <paragraph id="id154D7F7437D54C95B7A9DFAB4EF91416"><enum>(1)</enum><text>in subparagraph (A), by inserting <quote>which are placed in service before the end of the calendar year in which the <short-title>Clean Energy for America Act</short-title> is enacted and are</quote> after <quote>pipe, equipment, and appurtenances</quote>, and</text></paragraph> <paragraph id="id336873FC61DF4A0C9C89F0D92CC0ED4E"><enum>(2)</enum><text>in subparagraph (B), by inserting <quote>which are placed in service before the end of the calendar year in which the <short-title>Clean Energy for America Act</short-title> is enacted and are</quote> after <quote>pipe, equipment, and appurtenances</quote>.</text></paragraph></subsection> <subsection display-inline="no-display-inline" id="HBBE8370840FB40D3A0F90FBE16898287"><enum>(d)</enum><header>Repeal of deduction for tertiary injectants</header><text>Subsection (c) of <external-xref legal-doc="usc" parsable-cite="usc/26/193">section 193</external-xref> is amended—</text> <paragraph display-inline="no-display-inline" id="idAABDF98CD978458093523488137C7CBD"><enum>(1)</enum><text>in paragraph (1), by striking <quote>or</quote> at the end,</text></paragraph> <paragraph display-inline="no-display-inline" id="idD156435DEB6E447AA82DD28E62C9D948"><enum>(2)</enum><text>in paragraph (2), by striking the period at the end and inserting <quote>, or</quote>, and</text></paragraph> <paragraph display-inline="no-display-inline" id="id9BECDC1991604E51A8DF17354637130F"><enum>(3)</enum><text>by inserting at the end the following:</text> <quoted-block display-inline="no-display-inline" id="id43C710F7952C4202ABDA8B61682A4ECA" style="OLC"> <paragraph display-inline="no-display-inline" id="id8291ADBA921048AC9E065336B4147A74"><enum>(3)</enum><text>which is paid or incurred during any taxable year beginning after the date of the enactment of the <short-title>Clean Energy for America Act</short-title>.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection> <subsection display-inline="no-display-inline" id="id19367569151445A8B457276AD140EC16"><enum>(e)</enum><header>Intangible drilling and development costs</header><text>Subsection (c) of <external-xref legal-doc="usc" parsable-cite="usc/26/263">section 263</external-xref> is amended to read as follows:</text> <quoted-block display-inline="no-display-inline" id="id9257079683764619A4C3F6223165F099" style="OLC"> <subsection display-inline="no-display-inline" id="id8338170A78EA4D83A43CED3B708510CB"><enum>(c)</enum><header>Intangible drilling and development costs in the case of oil and gas wells and geothermal wells</header> <paragraph display-inline="no-display-inline" id="id2455201F8ADB49C291F511D1B92AEA98"><enum>(1)</enum><header>In general</header><text>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.</text></paragraph> <paragraph display-inline="no-display-inline" id="id4F3611F79C3C41E0B93BDCE0C8BBE300"><enum>(2)</enum><header>Exclusion</header> <subparagraph display-inline="no-display-inline" id="id994E59D19AD24C02902FA9C084277113"><enum>(A)</enum><header>In general</header><text>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 <short-title>Clean Energy for America Act</short-title>.</text></subparagraph> <subparagraph display-inline="no-display-inline" id="id7EEE75BD1CD14594A707F5A1B159D3AC"><enum>(B)</enum><header>Amortization of excluded amounts</header><text>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.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection> <subsection display-inline="no-display-inline" id="id29FFAEFEFA2343C39F986F3D8CB3035A"><enum>(f)</enum><header>Percentage depletion</header> <paragraph display-inline="no-display-inline" id="idD4E6F4103A1A409B8CE7A2491B3A3683"><enum>(1)</enum><header>Percentage depletion of oil and gas wells, coal, lignite, and oil shale</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/613">Section 613</external-xref> is amended—</text> <subparagraph display-inline="no-display-inline" id="idD0497B3DB4684F78854E723A610A0ECF"><enum>(A)</enum><text>in subsection (a), by striking <quote>(100 percent in the case of oil and gas properties)</quote>,</text></subparagraph> <subparagraph display-inline="no-display-inline" id="id830827EB95134FEBA5906EDDB877E143"><enum>(B)</enum><text>in subsection (b)—</text> <clause display-inline="no-display-inline" id="id407F94E130364330A6785A697E466BCE"><enum>(i)</enum><text>by striking paragraph (2) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="idCB813A9993C04106BFCBDADA9122018F" style="OLC"> <paragraph display-inline="no-display-inline" id="idB7EC75F2D56A444D80F05064CA47F978"><enum>(2)</enum><header>15 percent</header><text>If from deposits in the United States, gold, silver, copper, and iron ore.</text></paragraph><after-quoted-block>,</after-quoted-block></quoted-block></clause> <clause display-inline="no-display-inline" id="id4D22912C4AC4455CB7C4F7DB83F6CB60"><enum>(ii)</enum><text>in paragraph (4), by striking <quote>coal, lignite,</quote>,</text></clause> <clause display-inline="no-display-inline" id="idFA1E7C14508B4DB987461E5F4CD56836"><enum>(iii)</enum><text>in paragraph (5), by inserting <quote>(except oil shale)</quote> after <quote>Clay and shale</quote>, and</text></clause> <clause display-inline="no-display-inline" id="id021DDA8D549345FDA78A4121B52C57C9"><enum>(iv)</enum><text>in paragraph (6)(A), by striking <quote>(except shale described in paragraph (2)(B) or (5))</quote> and inserting <quote>(except oil shale and shale described in paragraph (5))</quote>,</text></clause></subparagraph> <subparagraph display-inline="no-display-inline" id="idF259D1B5B40D4685B9C9F2BBBF90E454"><enum>(C)</enum><text>in subsection (c)(4)—</text> <clause display-inline="no-display-inline" id="id376A305C60F1449BBE4F641A8ED985FE"><enum>(i)</enum><text>by striking subparagraphs (A) and (H),</text></clause> <clause display-inline="no-display-inline" id="id9B86C582BD6D41ECB51F8F71644D11EA"><enum>(ii)</enum><text>by inserting <quote>and</quote> at the end of subparagraph (G),</text></clause> <clause display-inline="no-display-inline" id="id003016A180194807ACCD0D3260E06F55"><enum>(iii)</enum><text>by redesignating subparagraphs (B) through (G) as subparagraphs (A) through (F), respectively, and</text></clause> <clause display-inline="no-display-inline" id="idCFFC7E08CAA349FEAE3832FC3AF36BF1"><enum>(iv)</enum><text>by redesignating subparagraph (I) as subparagraph (G),</text></clause></subparagraph> <subparagraph display-inline="no-display-inline" id="id7F8DC145C8E640DD84F636F3E8D25F99"><enum>(D)</enum><text>in subsection (d), by striking <quote>Except as provided in section 613A, in the case of</quote> and inserting <quote>In the case of</quote>, and</text></subparagraph> <subparagraph display-inline="no-display-inline" id="id86C2EDD037FB4C55B311D63D1BF75FD3"><enum>(E)</enum><text>in subsection (e)(2), by striking <quote>or section 613A</quote>.</text></subparagraph></paragraph> <paragraph display-inline="no-display-inline" id="id6AD11BB85EF243D994E8797EA5C85E95"><enum>(2)</enum><header>Oil and gas wells</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/613A">Section 613A</external-xref> is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="id9A7D41540CAA47BAA6E419ACD67C9231" style="OLC"> <subsection display-inline="no-display-inline" id="idE748FA76E5EF4F60B1E46F9E256221CC"><enum>(f)</enum><header>Termination</header><text>This section shall not apply to any taxable year beginning after the date of the enactment of the <short-title>Clean Energy for America Act</short-title>.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph display-inline="no-display-inline" id="id2ED2663B58104FD4B37AFCE1662CF94C"><enum>(3)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to taxable years beginning after the date of the enactment of this Act.</text></paragraph></subsection> <subsection id="H8C9709CFC3774D359B5D53F7C5E11E2F"><enum>(g)</enum><header>Termination of capital gains treatment for royalties from coal</header> <paragraph id="H31BF26FC55924C7BB6B8B22EAFEC046F"><enum>(1)</enum><header>In general</header><text>Subsection (c) of <external-xref legal-doc="usc" parsable-cite="usc/26/631">section 631</external-xref> is amended—</text> <subparagraph id="H8EEF19DC1510483291750574803EFA40"><enum>(A)</enum><text>by striking <quote>coal (including lignite), or iron ore</quote> and inserting <quote>iron ore</quote>,</text></subparagraph> <subparagraph id="H69CF136908FB4882838D26B4588AF0B1"><enum>(B)</enum><text>by striking <quote>coal or iron ore</quote> each place it appears and inserting <quote>iron ore</quote>,</text></subparagraph> <subparagraph id="H46059B7EAEF1442FAB54CB524666F044"><enum>(C)</enum><text>by striking <quote>iron ore or coal</quote> each place it appears and inserting <quote>iron ore</quote>, and</text></subparagraph> <subparagraph id="H53E5A2B207F34482ACADBC592E01B7C3"><enum>(D)</enum><text>by striking <quote><header-in-text level="subsection" style="OLC">coal or</header-in-text></quote> in the heading.</text></subparagraph></paragraph> <paragraph id="HFDBC60AE80B64E1E8DB93B839A813447"><enum>(2)</enum><header>Conforming amendment</header><text>The heading of <external-xref legal-doc="usc" parsable-cite="usc/26/631">section 631</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote><header-in-text level="section" style="OLC">, coal,</header-in-text></quote>.</text></paragraph> <paragraph id="H773506BBF7FD4F22B6BDC3D522878B9B"><enum>(3)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to taxable years beginning after the date of the enactment of this Act.</text></paragraph></subsection> <subsection id="id9093C196F86845F2ABF7A3A5BC337137"><enum>(h)</enum><header>Enhanced oil recovery credit</header> <paragraph id="idE9C0EBB00E9B4021A8E0914A0E158EFD"><enum>(1)</enum><header>In general</header><text>Subpart D of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by striking section 43.</text></paragraph> <paragraph id="id84C37C220C3745E8B53657D0E38D0FAD"><enum>(2)</enum><header>Conforming amendments</header> <subparagraph id="id99B50677768C4C92B7EDB1D3AED2A53E"><enum>(A)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/38">Section 38(b)</external-xref> is amended by striking paragraph (6).</text></subparagraph> <subparagraph id="idC3BDECB6870F4329AB242554169EE4BD"><enum>(B)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/45Q">Section 45Q</external-xref> is amended—</text> <clause id="id01370C6CF607425CB63AB701585B1135"><enum>(i)</enum><text>by striking <quote>section 43(b)(3)(B)</quote> each place it appears and inserting <quote>section 43(b)(3)(B) (as in effect on the day before the date of the enactment of the <short-title>Clean Energy for America Act</short-title>)</quote>, and</text></clause> <clause id="id3E6F0BCACDB549CEB97827F6A9D6CD40"><enum>(ii)</enum><text>in subsection (e)(2), by inserting <quote>(as in effect on the day before the date of the enactment of the <short-title>Clean Energy for America Act</short-title>)</quote> after <quote>section 43(c)(2)</quote>.</text></clause></subparagraph> <subparagraph id="id7F5FB99F43314ADF994BB9893028A3FC"><enum>(C)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/196">Section 196(c)</external-xref> is amended—</text> <clause id="id272C54AA9DE246669C97DC697ADF5D91"><enum>(i)</enum><text>by striking paragraph (5), and</text></clause> <clause id="idF1EE90FE377447919109ED5FAEE721CD"><enum>(ii)</enum><text>by redesignating paragraphs (6) through (14) as paragraphs (5) through (13), respectively.</text></clause></subparagraph></paragraph> <paragraph id="id801E49CE85C14AF3AC41B21CF8E9A3C0"><enum>(3)</enum><header>Clerical amendment</header><text>The table of sections for subpart D of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by striking the item relating to section 43.</text></paragraph> <paragraph id="id9C39A04FFD4145FEB136143645C10AE1"><enum>(4)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to taxable years beginning after the date of the enactment of this Act.</text></paragraph></subsection> <subsection id="idB78E607493B64FA494E6F3A0C462F468"><enum>(i)</enum><header>Credit for producing oil and gas from marginal wells</header> <paragraph id="idE5E38B9968584C4BB32056EAF15657EC"><enum>(1)</enum><header>In general</header><text>Subpart D of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by striking section 45I.</text></paragraph> <paragraph id="id85BEC4B076F1450788D16A809C5D7343"><enum>(2)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/38">Section 38(b)</external-xref> is amended by striking paragraph (19).</text></paragraph> <paragraph id="id08058635350849C38C456ED366675F94"><enum>(3)</enum><header>Clerical amendment</header><text>The table of sections for subpart D of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by striking the item relating to section 45I.</text></paragraph> <paragraph id="id196C360598D4420C8B5ED317220F7545"><enum>(4)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to taxable years beginning after the date of the enactment of this Act.</text></paragraph></subsection> <subsection id="id72C259CF2FB64AD1BDFFA8BC428FFC7C"><enum>(j)</enum><header>Qualifying advanced coal project credit</header> <paragraph id="id612B6464F97741F3BCA813D1D828A659"><enum>(1)</enum><header>In general</header><text>Subpart E of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by striking section 48A.</text></paragraph> <paragraph id="idC6D1EE0A247740089755D3FBA7DD9EA2"><enum>(2)</enum><header>Conforming amendments</header> <subparagraph id="id621EFBBB14F44E2D96ADB51234231693"><enum>(A)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/46">Section 46</external-xref>, 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.</text></subparagraph> <subparagraph id="idFDEADD6F51BC4B06A0276C550121D69A"><enum>(B)</enum><text>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.</text></subparagraph> <subparagraph id="idA4DE4F904B3A42A284F3BB91BB4E4296"><enum>(C)</enum><text>Section 50(a)(2)(E), as amended by section 102 of this Act, is amended by striking <quote>48A(b)(3),</quote>.</text></subparagraph></paragraph> <paragraph id="idF73AF0B9830F4157AFB12A00B170EADE"><enum>(3)</enum><header>Clerical amendment</header><text>The table of sections for subpart E of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by striking the item relating to section 48A.</text></paragraph> <paragraph id="id71DCA59BAE4E4FC9A5757224145BF669"><enum>(4)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to taxable years beginning after the date of the enactment of this Act.</text></paragraph></subsection> <subsection id="idFC07BA75DBF14DA7952747B26EE8788F"><enum>(k)</enum><header>Qualifying gasification project credit</header> <paragraph id="idE347EF459B96473CBAEC900BB09B9EC2"><enum>(1)</enum><header>In general</header><text>Subpart E of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by striking section 48B.</text></paragraph> <paragraph id="id08E720B2944A49D8A3667583E1E53837"><enum>(2)</enum><header>Conforming amendments</header> <subparagraph id="id174450CAC66E48F1BE328079B19C3C92"><enum>(A)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/46">Section 46</external-xref>, 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.</text></subparagraph> <subparagraph id="id78A87501F0D840A595E89D0A67B7891D"><enum>(B)</enum><text>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).</text></subparagraph> <subparagraph id="id1BF6F70F6E4B45A98749AFAE095F0F0C"><enum>(C)</enum><text>Section 50(a)(2)(E), as amended by this Act, is amended by striking <quote>48B(b)(3),</quote>.</text></subparagraph></paragraph> <paragraph id="id5CA7EF0B5979473F9E8B9121E5ABA0E0"><enum>(3)</enum><header>Clerical amendment</header><text>The table of sections for subpart E of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by striking the item relating to section 48B.</text></paragraph> <paragraph id="idD0C3BF998B11454FA2C358D303EF15D6"><enum>(4)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to taxable years beginning after the date of the enactment of this Act.</text></paragraph></subsection> <subsection id="idEEB1BDB8249F427383411D50A8B6BBB5"><enum>(l)</enum><header>Reinstatement of treatment of foreign base company oil related income as foreign base company income</header> <paragraph id="id9E7B649F4EC44F75A2A1C52CE1C98A2C"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/954">Section 954(a)</external-xref> is amended by striking <quote>and</quote> at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting <quote>, and</quote>, and by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="id481E89B7E77E467CACE016DDF931F4DC" style="OLC"> <paragraph id="id3e7bf713d3a84006b49f8d47cf158c04"><enum>(4)</enum><text>the foreign base company oil related income for the taxable year (determined under subsection (g) and reduced as provided in subsection (b)(5)).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="id5AC3E0CE0C3D4185A636B50242C50544"><enum>(2)</enum><header>Foreign base company oil related income</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/954">Section 954</external-xref> is amended by inserting before subsection (h) the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="idDBFC4CFC44704FBE99913F4344342221" style="OLC"> <subsection id="id4f415f54aa334c94ac4100aa8009cfd6"><enum>(g)</enum><header>Foreign base company oil related income</header><text>For purposes of this section—</text> <paragraph id="id776ca36c6cc8402abd2a34c288a8526d"><enum>(1)</enum><header>In general</header><text>Except as otherwise provided in this subsection, the term <term>foreign base company oil related income</term> 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—</text> <subparagraph id="id326007050dab40e59995ecdebf81c761"><enum>(A)</enum><text>oil or gas which was extracted from an oil or gas well located in such foreign country, or</text></subparagraph> <subparagraph id="id5e74fe719b284544a3762c9eac68aedb"><enum>(B)</enum><text>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.</text></subparagraph><continuation-text continuation-text-level="paragraph">Such term shall not include any foreign personal holding company income (as defined in subsection (c)).</continuation-text></paragraph> <paragraph id="idaa0943c0c4b2416a90020ea1a74a898f"><enum>(2)</enum><header>Paragraph (1) applies only where corporation has produced 1,000 barrels per day or more</header> <subparagraph id="id319b60d3fe40405aae7d8b980da1d24b"><enum>(A)</enum><header>In general</header><text>The term <term>foreign base company oil related income</term> shall not include any income of a foreign corporation if such corporation is not a large oil producer for the taxable year.</text></subparagraph> <subparagraph id="id69214d97b53c48e5813d2859ba99afe3"><enum>(B)</enum><header>Large oil producer</header><text>For purposes of subparagraph (A), the term <term>large oil producer</term> 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.</text></subparagraph> <subparagraph id="id91679f7fd7dc41ebb59190b8d22995ee"><enum>(C)</enum><header>Related group</header><text>The term <term>related group</term> means a group consisting of the foreign corporation and any other person who is a related person with respect to such corporation.</text></subparagraph> <subparagraph id="id6684f1bfcb3b4c66a895ad5dd50cd7b2"><enum>(D)</enum><header>Average daily production of foreign crude oil and natural gas</header><text>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.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph> <paragraph id="id8A40D0A9D4D242CF8A45395FBD2025A2"><enum>(3)</enum><header>Conforming amendments</header> <subparagraph id="id5E513806BE3A41D18252B9A1CAD4A06A"><enum>(A)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/952">Section 952(c)(1)(B)(iii)</external-xref> 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:</text> <quoted-block display-inline="no-display-inline" id="id9D85620620B44EC9A421057F27FFCACD" style="OLC"> <subclause id="id789C79301A624047B29D22E25C3E67A7"><enum>(I)</enum><text>foreign base company oil related income,</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph> <subparagraph id="id544386CEBF1744B5B1698EC4AEB4DA33"><enum>(B)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/954">Section 954(b)</external-xref> is amended—</text> <clause id="id30CC5C728A744AB3A87EA02A8D1CBCC0"><enum>(i)</enum><text>in paragraph (4), by inserting at the end the following new sentence: <quote>The preceding sentence shall not apply to foreign base company oil-related income described in subsection (a)(4).</quote>,</text></clause> <clause id="id63BF688E341347838FC6923349331E95"><enum>(ii)</enum><text>in paragraph (5), by striking <quote>and the foreign base company services income</quote> and inserting <quote>the foreign base company services income, and the foreign base company oil related income</quote>, and</text></clause> <clause id="id8E23C70F63DF40E3880B95A0FD4809FA"><enum>(iii)</enum><text>by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="idE878135B34ED4FF18FF5D7E20A28F580" style="OLC"> <paragraph id="id56701890454c4911854e7d4e825110a6"><enum>(6)</enum><header>Foreign base company oil related income not treated as another kind of base company income</header><text>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).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph></paragraph> <paragraph id="id115263AF90F4493D9925CDF8E6DEE915"><enum>(4)</enum><header>Effective date</header><text>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.</text></paragraph></subsection> <subsection id="idD8302BD3D83641B3A02168D99114CF31"><enum>(m)</enum><header>Inclusion of foreign oil and gas extraction income in tested income for purpose of determining global intangible low-Taxed income</header> <paragraph id="id4295AF126F284E8E8B67E73A4AB6F9FC"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/951A">Section 951A(c)(2)(A)(i)</external-xref> is amended by inserting <quote>and</quote> at the end of subclause (III), by striking <quote>and</quote> at the end of subclause (IV) and inserting <quote>over</quote>, and by striking subclause (V).</text></paragraph> <paragraph id="id380620D0FBC54CE88352FDF78D31E20F"><enum>(2)</enum><header>Effective date</header><text>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.</text></paragraph></subsection> <subsection commented="no" id="id0049B4C6C5844D3AA27ECD6D92E0A00A"><enum>(n)</enum><header>Repeal of corporate income tax exemption for publicly traded partnerships with qualifying income and gains from activities relating to fossil fuels</header> <paragraph commented="no" id="idDC01C60F93484FE287B8C10FF82484A6"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/7704">Section 7704(d)(1)</external-xref> is amended—</text> <subparagraph commented="no" id="id292BA8403740480693ACEB8E04A0706E"><enum>(A)</enum><text>in subparagraph (E), by striking <quote>(including pipelines transporting gas, oil, or products thereof)</quote>, and</text></subparagraph> <subparagraph commented="no" id="id473112FA24714FF98CFE635A2FA72F16"><enum>(B)</enum><text>in the flush matter at the end, by inserting <quote>or any coal, gas, oil, or products thereof</quote> before the period.</text></subparagraph></paragraph> <paragraph commented="no" id="id0972F07CC158425F9BC38C7476C893F0"><enum>(2)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to taxable years beginning after the date of the enactment of this Act.</text></paragraph></subsection></section> <enum>VI</enum><header>Workforce development requirements</header> <section id="id93C51D9C24E84E139FFAFD133A463177"><enum>601.</enum><header>Use of qualified apprentices</header> <subsection id="id487740666E634AD5B5E8B29DFB05FEA8"><enum>(a)</enum><header>In general</header><text>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.</text></subsection> <subsection id="id8FBC4183DED746BB9BFE4DB30B3DF2EE"><enum>(b)</enum><header>Apprentice-to-Journeyworker ratio</header><text>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.</text></subsection> <subsection id="idC57C39F228354F6CB10DF47C4ED40725"><enum>(c)</enum><header>Participation</header><text>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.</text></subsection> <subsection id="id72D5FBA3F23E4D8181ED17CBC8CE8F8E"><enum>(d)</enum><header>Exception</header><text>Notwithstanding any other provision in this section, this section shall not apply in the case of a taxpayer who—</text> <paragraph id="id88051B3135C14312BD17F39C74FB8513"><enum>(1)</enum><text>demonstrates a lack of availability of qualified apprentices in the geographic area of the construction, alteration, or repair work; and </text></paragraph> <paragraph id="id6BDDD0E364C0440A9222AD3D778929A9"><enum>(2)</enum><text>makes a good faith effort, and its contractors and subcontractors make a good faith effort, to comply with the requirements of this section. </text></paragraph></subsection> <subsection id="idF1635480D14C4289843A63D4FBD9D98A"><enum>(e)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="id0eb8801145314a26b88de07045aea4ef"><enum>(1)</enum><header>Applicable project</header><text>The term <term>applicable project</term> means, with respect to—</text> <subparagraph id="idD386F6AAB64341EB8EF39D9A77563453"><enum>(A)</enum><text>subsection (e)(7)(A)(ii) of <external-xref legal-doc="usc" parsable-cite="usc/26/30C">section 30C</external-xref> of the Internal Revenue Code of 1986,</text></subparagraph> <subparagraph id="id711621252E32480F9A4CAE05E77FA4AC"><enum>(B)</enum><text>subsection (f)(8)(A)(ii) of section 45Q of such Code,</text></subparagraph> <subparagraph id="id7DF2B3B6CEFA47A4A145CB8C9F91E3B6"><enum>(C)</enum><text>subsection (b)(1)(A)(iv)(II) of section 45U of such Code,</text></subparagraph> <subparagraph id="idB4E1175D258F4546960B3AA704C17A3E"><enum>(D)</enum><text>subsections (b)(3)(A)(iv)(II) and (c)(1)(B)(ii) of section 48D of such Code, and</text></subparagraph> <subparagraph id="id84F5E1B76D834AEE954BC1B6C98CC7B8"><enum>(E)</enum><text>subsection 9c)(1)(E)(ii) of section 179D of such Code,</text></subparagraph><continuation-text continuation-text-level="paragraph">any property, equipment, or facility for which a credit is allowed under such sections.</continuation-text></paragraph> <paragraph id="id0FECEBB450694F14AAE408B4920A4AE1"><enum>(2)</enum><header>Labor hours</header><text>The term <term>labor hours</term>—</text> <subparagraph id="id37C0E99627F64F5CA8065E98C6FE3B2D"><enum>(A)</enum><text>means the total number of hours devoted to the performance of construction, alteration, or repair work by employees of the contractor or subcontractor; and</text></subparagraph> <subparagraph id="id04F264F27D5A4FE292BE0BED77C9B813"><enum>(B)</enum><text>excludes any hours worked by—</text> <clause id="id709F56410AA945229E5E2880CB1DFD70"><enum>(i)</enum><text>foremen; </text></clause> <clause id="id5C26BD118C5C44A788BEE6F0CAE18F2E"><enum>(ii)</enum><text>superintendents; </text></clause> <clause id="id2496DCED6D6949389915E091986E6A48"><enum>(iii)</enum><text>owners; or </text></clause> <clause id="id5A1B83929B5E4A31938E5DACC238F681"><enum>(iv)</enum><text>persons employed in a bona fide executive, administrative, or professional capacity (within the meaning of those terms in part 541 of title 29, Code of Federal Regulations).</text></clause></subparagraph></paragraph> <paragraph id="idf2303d30ed1e4461bbc6e1714eeecb10"><enum>(3)</enum><header>Qualified apprentice</header><text>The term <term>qualified apprentice</term> means an individual who is an employee of the contractor or subcontractor and who is participating in a registered apprenticeship program, as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/3131">section 3131(e)(3)(B)</external-xref> of the Internal Revenue Code of 1986. </text></paragraph></subsection></section>