117 S2118 PCS: Clean Energy for America Act
U.S. Senate
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.
1.(a)This Act may be cited as the Clean Energy for America Act
.(b)Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.(c)The table of contents 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 TransportationSec. 201. Clean fuel production credit.Sec. 202. Transportation electrification.Sec. 203. Credit for production of clean hydrogen.Sec. 204. Temporary extensions of existing fuel incentives.TITLE III—Incentives for Energy EfficiencySec. 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—Termination of certain fossil fuel provisionsSec. 401. Termination of provisions relating to oil, gas, and other materials.Sec. 402. Modification of certain provisions relating to oil, gas, and other fossil fuels.TITLE V—Workforce development requirementsSec. 501. Use of qualified apprentices.TITLE VI—MiscellaneousSec. 601. Adjustment of qualifying advanced energy project credit.Sec. 602. Issuance of exempt facility bonds for qualified carbon dioxide capture facilities.Sec. 603. Limitation on importation of certain energy equipment and components.Sec. 604. Elimination of negative effects on small businesses and certain individual taxpayers.<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>subject to subsection (g)(7), 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 owned by the taxpayer—</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 maximum net output equal to or greater than 1 megawatt, which—</text><subclause id="idEB71E8A77D1846DFBC47955EC0718E3C"><enum>(I)</enum><text>subject to subparagraph (B) of paragraph (3), satisfies the requirements under subparagraph (A) of such paragraph, and</text></subclause><subclause id="idD90FA2A9D05747258BADF11914D1BB2D"><enum>(II)</enum><text>with respect to the construction of such facility, satisfies the requirements under section 501 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>The term <term>qualified facility</term> shall include either of the following in connection with a facility described in subparagraph (A) (without regard to clause (ii) of such subparagraph) 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, 45Q, 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 and 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 annually 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 and the Administrator of the Environmental Protection Agency, a taxpayer which owns such facility may file a petition with the Secretary and the Administrator of the Environmental Protection Agency 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 and 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><subparagraph commented="no" id="idAEB9F503DFFD4C1CAE9368534606522D"><enum>(A)</enum><header>In general</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="id1E581C9CF8764B60B1EEA97721FD00EC"><enum>(i)</enum><text>the construction of such facility, or</text></clause><clause commented="no" id="id7BC2489892DA4AD0BF394A436850F9B4"><enum>(ii)</enum><text>for any year during the period described in paragraph (1)(B), 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><subparagraph id="idB716BDE33A6640CCA462EE10B7723750"><enum>(B)</enum><header>Failure to satisfy wage requirements</header><clause id="id2CEBDABD5D6644B8A78120F5ECCA374B"><enum>(i)</enum><header>In general</header><text>In the case of any taxpayer which fails to satisfy the requirement under subparagraph (A) with respect to any facility for any year during the period described in paragraph (1)(B), the amount of the credit which would (but for this subparagraph) be allowable under this section with respect to such facility for such year shall be reduced to zero.</text></clause><clause id="id0EB665D8F6DF4F10A3E360698CFA75BA"><enum>(ii)</enum><header>Correction and penalty</header><text>Clause (i) shall not apply with respect to any failure by the taxpayer to satisfy the requirement under subparagraph (A) with respect to any facility for any year if, with respect to any laborer or mechanic who was paid wages at a rate below the rate described in such subparagraph for any period during such year, such taxpayer—</text><subclause id="idC7EEA85E4C7945D8B84EFBC422444F14"><enum>(I)</enum><text>makes payment to such laborer or mechanic in an amount equal to the sum of—</text><item id="id8C15F89EC1F94DE8B339B3BC3B432D2F"><enum>(aa)</enum><text>an amount equal to the difference between—</text><subitem id="id07328D2EBD8E49C2AD8B95989220D082"><enum>(AA)</enum><text>the amount of wages paid to such laborer or mechanic during such period, and</text></subitem><subitem id="idD90DFA0891F74321B96C305D8554EF1D"><enum>(BB)</enum><text>the amount of wages required to be paid to such laborer or mechanic pursuant to such subparagraph during such period, plus</text></subitem></item><item id="id9BCB9837B5F94B848FB576F019B34FF3"><enum>(bb)</enum><text>interest on the amount determined under item (aa) at the underpayment rate established under section 6621 for the period described in such item, and</text></item></subclause><subclause id="id92BF4DD581984A109E9410E04DAEF0F5"><enum>(II)</enum><text>makes payment to the Secretary of a penalty in an amount equal to the product of—</text><item id="idFDFABC19A9E54D9EBAFB4633CF67F710"><enum>(aa)</enum><text>$5,000, multiplied by</text></item><item id="idDE382A0BF3044669ABB101A193B02260"><enum>(bb)</enum><text>the total number of laborers and mechanics who were paid wages at a rate below the rate described in subparagraph (A) for any period during such year.</text></item></subclause></clause></subparagraph></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, the Secretary of Energy, and the Administrator of the Environmental Protection Agency determine 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 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="idBF974D03870545B89A471DB20B3199EE"><enum>(e)</enum><header>Definitions</header><text>For purposes of 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 and 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" commented="no"><enum>(ii)</enum><text>the amount of greenhouse gases emitted into the atmosphere by such facility in the production of such useful thermal energy shall be included for purposes of determining the greenhouse gas emissions rate for such facility.</text></clause></subparagraph><subparagraph id="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><paragraph id="idC38A05774AB64AD9AB8890BF058AB022"><enum>(7)</enum><header>Increase in credit in certain cases</header><subparagraph id="id2B07D1DA5A784858828059F9D16B542E"><enum>(A)</enum><header>Nascent clean energy technology</header><clause id="id3E0922DBD5DD4C118175779740D57698"><enum>(i)</enum><header>In general</header><text>In the case of any qualified facility which generates electricity using a nascent clean energy technology, for purposes of determining the amount of the credit under subsection (a) with respect to any electricity produced by the taxpayer at such facility using such technology during the taxable year, the amount under paragraph (1) of such subsection shall be increased by an amount equal to 10 percent of the amount otherwise in effect under such paragraph (without application of subparagraph (B) or (C)).</text></clause><clause id="idF4134C4796D44E1EA808B97631BDB264"><enum>(ii)</enum><header>Definition</header><text>For purposes of this subparagraph, the term <term>nascent clean energy technology</term> means any technology or method used for the production of electricity which, in the calendar year preceding the calendar year in which construction of the qualified facility began, achieved a market penetration level of less than 3 percent.</text></clause><clause id="id347860D7AAFA4EDE87F4CF7D723B9246"><enum>(iii)</enum><header>Market penetration level</header><text>For purposes of this subparagraph, the term <term>market penetration level</term> means, with respect to any calendar year, the amount equal to the greater of—</text><subclause id="idF794231C3B2C414AAE67B6AA9A1EECA4"><enum>(I)</enum><text>the amount (expressed as a percentage) equal to the quotient of—</text><item id="id6BB8A762726941F2BE62441732144D26"><enum>(aa)</enum><text>the sum of all electricity produced (expressed in terawatt hours) from the technology or method used for the production of electricity by all electricity generating facilities in the United States during such calendar year (as determined by the Secretary on the basis of data reported by the Energy Information Administration), divided by</text></item><item id="id715CEC6966864F74AFCA332873D984A7"><enum>(bb)</enum><text>the total domestic power sector electricity production (expressed in terawatt hours) for such calendar year, or</text></item></subclause><subclause id="id3C2D3C2DBA5E400BAEBFB785E1D02BE1"><enum>(II)</enum><text>the amount determined under this clause for the preceding calendar year with respect to such technology or method.</text></subclause></clause></subparagraph><subparagraph id="id2D58FB1A6FE04435A886C83F3C45D066"><enum>(B)</enum><header>Energy communities</header><clause id="id2F1D358375954207A26A17F84BDBA69E"><enum>(i)</enum><header>In general</header><text>In the case of any qualified facility which is located in an energy community, for purposes of determining the amount of the credit under subsection (a) with respect to any electricity produced by the taxpayer at such facility during the taxable year, the amount under paragraph (1) of such subsection shall be increased by an amount equal to 10 percent of the amount otherwise in effect under such paragraph (without application of subparagraph (A) or (C)).</text></clause><clause id="id1D062F84CAA74B2DB5A89CF039CBCF9B"><enum>(ii)</enum><header>Energy community</header><text>For purposes of this subparagraph, the term <term>energy community</term> means a census tract—</text><subclause id="idB0F3558BAD994294BC383D5224ABF2CD"><enum>(I)</enum><text>in which—</text><item id="id35B20B17B00649FDB0318742800E5A6F"><enum>(aa)</enum><text>for the calendar year in which construction of the qualified facility began—</text><subitem id="idACB17B0FDC794D4B839658843D2BB949"><enum>(AA)</enum><text>not less than 5 percent of the employment in such tract is within the oil and gas sector, or</text></subitem><subitem id="idD48FFC272BF34367A00CE751ACFF1E64"><enum>(BB)</enum><text>an industrial facility is located which is mandated to report emissions of greenhouse gases under the Greenhouse Gas Reporting Program established under part 98 of title 40, Code of Federal Regulations,</text></subitem></item><item id="id02312DEEB3234118956BBAF9EADC693E"><enum>(bb)</enum><text>after December 31, 1999, a coal mine has closed, or</text></item><item id="id8C142CC45BF34F109AA630A92C0E32FE"><enum>(cc)</enum><text>after December 31, 2009, a coal-fired electric generating unit has been retired, or</text></item></subclause><subclause id="idCE6E351A48EB43AE99D7CAF11F15F75E"><enum>(II)</enum><text>which is immediately adjacent to any census tract described in subclause (I).</text></subclause></clause></subparagraph><subparagraph id="idE7693187B83E43FBA1E70FDD9813C7FC"><enum>(C)</enum><header>Domestic content</header><clause id="id3074603F3E814CED9C4A77834C4433F3"><enum>(i)</enum><header>In general</header><text>In the case of any qualified facility which satisfies the requirement under clause (ii)(I), for purposes of determining the amount of the credit under subsection (a) with respect to any electricity produced by the taxpayer at such facility during the taxable year, the amount under paragraph (1) of such subsection shall be increased by an amount equal to 10 percent of the amount otherwise in effect under such paragraph (without application of subparagraph (A) or (B)).</text></clause><clause id="idF61B994A03B244AD8B677F315748C1DC"><enum>(ii)</enum><header>Requirement</header><subclause id="id88603E7E4F9C45B6A8913D3BBEA6A091"><enum>(I)</enum><header>In general</header><text>Subject to clause (iii), the requirement described in this subclause with respect to any qualified facility is that, prior to the end of the taxable year in which such facility is placed in service, the taxpayer shall certify to the Secretary that, any steel, iron, or manufactured product used in the construction of such facility was produced in the United States.</text></subclause><subclause id="id9B269EB623C448E29B9F3FF77B79853D"><enum>(II)</enum><header>Steel and iron</header><text>In the case of steel or iron, subclause (I) shall be applied in a manner consistent with section 661.5(b) of title 49, Code of Federal Regulations.</text></subclause><subclause id="id4445A95E39454AAC86A7F1E46EDDD7DA"><enum>(III)</enum><header>Manufactured product</header><text>For purposes of subclause (I), a manufactured product shall be deemed to have been manufactured in the United States if not less than 55 percent of the total cost of the components of such product is attributable to components which are mined, produced, or manufactured in the United States.</text></subclause></clause><clause id="id8A59C436CCC244848DE8B652150210F4"><enum>(iii)</enum><header>International agreements</header><text>This subparagraph shall be applied in a manner which is consistent with the obligations of the United States under international agreements.</text></clause></subparagraph></paragraph><paragraph id="id65816D731D2C4030A0FDDF72808227CE"><enum>(8)</enum><header>Credit reduced for grants, tax-exempt bonds, subsidized energy financing, and other credits</header><text>Rules similar to the rules under section 45(b)(3) shall apply for purposes of this section.</text></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 applicable percentage of 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><subparagraph id="id2121F28653754ADBA89B3C9C77474882"><enum>(A)</enum><header>In general</header><text>An election under paragraph (1) shall be made prior to the date on which the qualified facility is placed in service and in such manner as the Secretary may prescribe. Such election, once made, shall—</text><clause id="id389CE85E80524723A92FAFE6E038215E"><enum>(i)</enum><text>be irrevocable with respect to such qualified facility for the period described in subsection (b)(1)(B), and</text></clause><clause id="id47AB8DD421E34EBEBF9AD2A0E4365D2C"><enum>(ii)</enum><text>for any taxable year during such period, reduce the amount of the credit which would (but for this subsection) be allowable under this section with respect to such qualified facility for such taxable year to zero.</text></clause></subparagraph><subparagraph id="idD44841EE29384CEB8CF166F664D008F5"><enum>(B)</enum><header>Additional information</header><text>For purposes of an election under paragraph (1), the Secretary may require such information as the Secretary deems necessary for purposes of preventing duplication, fraud, or any improper payments under this subsection.</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><paragraph commented="no" id="idE393EED33CB34EA9AF2C34E9F41034F0"><enum>(4)</enum><header>Certain entities treated as taxpayers</header><text>In the case of an election under this subsection—</text><subparagraph id="id8D9B05220DFB4A5FA93EE676776944D2" commented="no"><enum>(A)</enum><text>any 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 subsection),</text></subparagraph><subparagraph id="idCB7FAF671AB7409892F0CDFC9A11AD35" commented="no"><enum>(B)</enum><text>any mutual or cooperative electric company described in section 501(c)(12) or section 1381(a)(2)(C), or</text></subparagraph><subparagraph id="id2C8C424CD2F94D46B405322CF0B173F9" commented="no"><enum>(C)</enum><text>an Indian tribal government (as defined in section 139E(c)(1)),</text></subparagraph><continuation-text continuation-text-level="paragraph" commented="no">shall be treated as a taxpayer for purposes of this subsection and determining the amount of any credit under subsection (a).</continuation-text></paragraph><paragraph id="id30921A2377E748DA961BB51A9D1406A7"><enum>(5)</enum><header>Excess payment</header><subparagraph id="idB92BA2ACE0C5412EB0849BDE5794677D"><enum>(A)</enum><header>In general</header><text>In the case of any payment made to a taxpayer under this subsection which the Secretary determines constitutes an excessive payment, the tax imposed on such taxpayer by chapter 1 for the taxable year in which such determination is made shall be increased by an amount equal to the sum of—</text><clause id="id870985AE9D0841ACB8F614F26BD4098C"><enum>(i)</enum><text>the amount of the excessive payment, plus</text></clause><clause id="id408F212444C549EEA6F10673DF010373"><enum>(ii)</enum><text>an amount equal to 20 percent of the excessive payment.</text></clause></subparagraph><subparagraph id="id5B26855979394A1B8A0F1C8A88960DA9"><enum>(B)</enum><header>Reasonable cause</header><text>Subparagraph (A)(ii) shall not apply if the taxpayer demonstrates to the satisfaction of the Secretary that the excessive payment resulted from reasonable cause.</text></subparagraph><subparagraph id="id1D1EB4CC866B4D9A9DD4CEAF86C7E60B"><enum>(C)</enum><header>Definition</header><text>For purposes of this paragraph, the term <term>excessive payment</term> means, with respect to a qualified facility for any taxable year, an amount equal to the excess of—</text><clause id="id40F119F477B145A8890DC20543C45B6F"><enum>(i)</enum><text>the amount of the payment made to the taxpayer under this subsection with respect to such facility for such taxable year, over</text></clause><clause id="idA4431B1368DD4F94A1F415188DD37C12"><enum>(ii)</enum><text>the amount of the credit which (without application of this subsection) is otherwise allowable under this section with respect to such facility for such taxable year.</text></clause></subparagraph></paragraph><paragraph id="id2E96986DA6E2485FAE7C9DFE3B761AE9"><enum>(6)</enum><header>Applicable percentage</header><text>For purposes of paragraph (1)—</text><subparagraph id="id2B0B58C6A6864A47830DE89872EE1101"><enum>(A)</enum><header>In general</header><text>In the case of any qualified facility which satisfies the requirements under subsection (g)(7)(C)(ii) with respect to the construction of such facility, the applicable percentage shall be 100 percent.</text></subparagraph><subparagraph id="id221A468183264B178309C1962A8F70F6"><enum>(B)</enum><header>Phased domestic content requirement</header><text>Subject to subparagraph (C), in the case of any qualified facility which fails to satisfy the requirements under such subsection with respect to the construction of such facility, the applicable percentage shall be—</text><clause id="id2325765608C04388A63499C97E3A3FF9"><enum>(i)</enum><text>if construction of such facility began before January 1, 2024, 100 percent,</text></clause><clause id="id948DF27E328A42FEB13EB4D7E71F2B02"><enum>(ii)</enum><text>if construction of such facility began in calendar year 2024, 90 percent,</text></clause><clause id="id2F6614BFC95D4E84B3483D1502824E87"><enum>(iii)</enum><text>if construction of such facility began in calendar year 2025, 85 percent, and</text></clause><clause id="idFE58A0C7E88F412FB96CC2BAECB45EBF"><enum>(iv)</enum><text>if construction of such facility began after December 31, 2025, 0 percent.</text></clause></subparagraph><subparagraph id="id599341DA17A64D5AA0EEB2724C112B9E"><enum>(C)</enum><header>Exception</header><text>If the Secretary determines that, for purposes of application of the requirements under subsection (g)(7)(C)(ii) with respect to the construction of the qualified facility—</text><clause id="id0A9EB4AED3694DF89C82A335CD670E86"><enum>(i)</enum><text>their application would be inconsistent with the public interest,</text></clause><clause id="id8F143B4099634C6CB3C1A1DECCFE1148"><enum>(ii)</enum><text>such materials and products are not produced in the United States in sufficient and reasonably available quantities and of a satisfactory quality, or</text></clause><clause id="id491624A4F15140AEA1FF1A9C7E31BAD0"><enum>(iii)</enum><text>inclusion of domestic material will increase the cost of the construction of the qualified facility by more than 25 percent,</text></clause><continuation-text continuation-text-level="subparagraph">the applicable percentage shall be 100 percent.</continuation-text></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>Increase in credit rate in certain cases</header><subparagraph id="idFE56CF85CD93441B834F74194FEEDFA1"><enum>(A)</enum><header>Disadvantaged and energy communities</header><clause id="id90BBA13E6D3C4A1B840BE862BE314B2D"><enum>(i)</enum><header>In general</header><text>In the case of—</text><subclause id="id7F54C92FAEEF4CC8B89B2D26B95B3732"><enum>(I)</enum><text>any energy storage property or any qualified investment with respect to a qualified facility (with the exception of any such facility described in section 45U(b)(2)(B))—</text><item id="idEFC44E3C57A240BCB6DBA513D7BBFBE8"><enum>(aa)</enum><text>which is placed in service within a disadvantaged community or an energy community (as defined in section 45U(g)(7)(B)(ii)), and</text></item><item id="id13C114BF506E4BBD98999F3CC42A94C6"><enum>(bb)</enum><text>has a maximum net output of less than 5 megawatts, or</text></item></subclause><subclause id="idB8DB9957B78C4B16B96D88CE2FD92389"><enum>(II)</enum><text>any qualified property which is not described in subclause (I) and is placed in service within an energy community,</text></subclause><continuation-text continuation-text-level="clause">for purposes applying paragraph (1) with respect to such property or investment, the percentage under subparagraph (A) of such paragraph (or, in the case of a microgrid, subparagraph (B)(i) of such paragraph), shall be increased by 10 percentage points.</continuation-text></clause><clause id="id51257F47721F42F781E9102F1802C9E7"><enum>(ii)</enum><header>Disadvantaged community</header><text>For purposes of this subparagraph, the term <term>disadvantaged community</term> has the same meaning given the term <term>low-income community</term> in section 45D(e)(1), as applied by substituting <quote>60 percent</quote> for <quote>80 percent</quote> each place it appears in subparagraph (B) thereof.</text></clause></subparagraph><subparagraph id="id440C0AFBD94F4CBE8CDFAABEA254A8D4"><enum>(B)</enum><header>Nascent clean energy technology</header><text>In the case of any qualified facility which generates electricity using a nascent clean energy technology (as defined in section 45U(g)(7)(A)(ii)), for purposes applying paragraph (1) with respect to any qualified investment with respect to such facility, the percentage under subparagraph (A) of such paragraph (or, in the case of a microgrid, subparagraph (B)(i) of such paragraph), shall be increased by 10 percentage points.</text></subparagraph><subparagraph id="idA388A463051C433081CD71ED8323504E"><enum>(C)</enum><header>Domestic content</header><clause id="id4EDCA3AD26A444A6BDE28ABD7608C3F3"><enum>(i)</enum><header>In general</header><text>In the case of any qualified investment with respect to a qualified facility or with respect to grid improvement property which satisfies the requirement under clause (ii)(I), for purposes of applying paragraph (1) with respect to such qualified investment, the percentage under subparagraph (A) of such paragraph (or, in the case of a qualified investment with respect to a microgrid, subparagraph (B)(i) of such paragraph), shall be increased by 10 percentage points.</text></clause><clause id="id24E94D01A8DC44D4B32CEFE419755AED"><enum>(ii)</enum><header>Requirements</header><subclause id="idA86B5885ED1E42ABB42A7FBABD83AC5A"><enum>(I)</enum><header>In general</header><text>The requirement described in this subclause with respect to any qualified investment with respect to a qualified facility or with respect to grid improvement property is satisfied if the taxpayer certifies to the Secretary that—</text><item id="id4EC5FD927EF6466494E5D40F79C7F0CC"><enum>(aa)</enum><text>in the case of a qualified investment with respect to a qualified facility, any property used at such facility is composed of steel, iron, or manufactured products which were produced in the United States, and</text></item><item id="idF588B3154B0E40A5A715326C4E2B1B06"><enum>(bb)</enum><text>in the case of a qualified investment with respect to any grid improvement property, such property is composed of steel, iron, or manufactured products which were produced in the United States.</text></item></subclause><subclause id="idB1FFF03C9CA4484B99C44EA6703F12F3"><enum>(II)</enum><header>Steel and iron</header><text>In the case of steel or iron, subclause (I) shall be applied in a manner consistent with section 661.5(b) of title 49, Code of Federal Regulations.</text></subclause><subclause id="id052BD6F15E45437398DE5442A11AC832"><enum>(III)</enum><header>Manufactured product</header><text>For purposes of subclause (I), a manufactured product shall be deemed to have been manufactured in the United States if not less than 55 percent of the total cost of the components of such product is attributable to components which are mined, produced, or manufactured in the United States.</text></subclause></clause><clause id="id0FCA0E07DE654EF48C683399EDFDA5E8"><enum>(iii)</enum><header>International agreements</header><text>This subparagraph shall be applied in a manner which is consistent with the obligations of the United States under international agreements. </text></clause></subparagraph><subparagraph id="id57207EF695A04185A5FAFAE2A4407215"><enum>(D)</enum><header>Maximum credit rate</header><text>Notwithstanding any adjustment or increase pursuant to this paragraph, the percentage under subparagraph (A) or (B)(i) of paragraph (1) shall not exceed 50 percent.</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 sum of—</text><subparagraph id="id8D395B8FE4C14E468FB44B34E0911191"><enum>(A)</enum><text>the basis of any qualified property placed in service by the taxpayer during such taxable year which is part of a qualified facility, plus</text></subparagraph><subparagraph id="id273917D60C9D43858A702E5D823FA7A9"><enum>(B)</enum><text>the amount of any expenditures which are—</text><clause id="id1C41BD9426CC48A693C50498FA60B467"><enum>(i)</enum><text>paid or incurred by the taxpayer for qualified interconnection property—</text><subclause id="id444023E0CB394A41B0309A66E11BBC31"><enum>(I)</enum><text>in connection with a qualified facility which has a maximum net output of not greater than 5 megawatts, and</text></subclause><subclause id="id3E8BBBCFC4164C5EAFAE214C4F6DC084"><enum>(II)</enum><text>placed in service during the taxable year of the taxpayer, and</text></subclause></clause><clause id="idC6B1139BACB341AFA3FF50C686246F92"><enum>(ii)</enum><text>properly chargeable to capital account of the taxpayer.</text></clause></subparagraph></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, and</text></subparagraph><subparagraph id="id1C58F2B26E524345A1CCF559681D658D" commented="no"><enum>(C)</enum><clause commented="no" display-inline="yes-display-inline" id="id878C6568EDB94C199735E9527BE7ADA3"><enum>(i)</enum><text>the construction, reconstruction, or erection of which is completed by the taxpayer, or</text></clause><clause indent="up1" id="idFAF8C958C9A6479794543A8B1C3427FC" commented="no"><enum>(ii)</enum><text>which is acquired by the taxpayer if the original use of such property commences with the taxpayer.</text></clause></subparagraph></paragraph><paragraph commented="no" id="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 subparagraph (B)(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 maximum net output equal to or greater than 1 megawatt, which—</text><subclause commented="no" id="id9D71C080633C4BD0B5135671631D1546"><enum>(I)</enum><text>satisfies the requirements of 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 501 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)(C) shall apply for purposes of this paragraph.</text></clause><clause commented="no" id="id524EEC4E5C274772BE853AC52BA97E35"><enum>(ii)</enum><header>Greenhouse gas emissions rate</header><text>Rules similar to the rules of section 45U(b)(2) shall apply for purposes of this paragraph.</text></clause><clause commented="no" id="id44685A5CA76146F98904A812D5FCF906"><enum>(iii)</enum><header>Wage requirements</header><subclause commented="no" id="idD10244F051B442D8B04538E26AF0E784"><enum>(I)</enum><header>In general</header><text>The requirements described in this subclause with respect to any facility are that the taxpayer shall ensure that any laborers and mechanics employed by contractors and subcontractors in—</text><item commented="no" id="id38ADB33058F24C0ABEAA90ABE8A7FFCD"><enum>(aa)</enum><text>the construction of such facility, or</text></item><item commented="no" id="idCB2D921970B448EEAA142A24ACB2688B"><enum>(bb)</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></item><continuation-text continuation-text-level="subclause">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></subclause><subclause id="id964F537D212F46029468925817DAAC09"><enum>(II)</enum><header>Correction and penalty related to failure to satisfy wage requirements</header><text>For purposes of section 50(a), a taxpayer shall not be treated as failing to satisfy the requirements of this clause if such taxpayer meets requirements similar to the requirements of section 45U(b)(3)(B)(ii).</text></subclause></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 which satisfies the requirements under clauses (i), (ii), and (iv) of subparagraph (A).</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 infrastructure, and</text></subclause><subclause id="idA5323863357B4BB38E0802F76026EE41"><enum>(III)</enum><text>has a maximum net output of not greater than 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 and the Secretary.</text></item></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—</text><clause commented="no" id="id38B2FA1D61BB4595BE5E8EDC7AFD1B2A"><enum>(i)</enum><text>a renewable electricity production credit determined under section 45, </text></clause><clause commented="no" id="id8319BFEF75D04D388EA588AF573591C0"><enum>(ii)</enum><text>an advanced nuclear power facility production credit determined under section 45J, </text></clause><clause commented="no" id="id0B4644DD865845988CBAF79399322603"><enum>(iii)</enum><text>a carbon oxide sequestration credit determined under section 45Q,</text></clause><clause commented="no" id="idFB56E672AD6741548FD5B41CC77FA25F"><enum>(iv)</enum><text>a clean electricity production credit determined under section 45U, or</text></clause><clause commented="no" id="idF64B75584F9D431A86D614D33F3AB478"><enum>(v)</enum><text>an energy credit determined under section 48,</text></clause><continuation-text continuation-text-level="subparagraph">is allowed under section 38 for the taxable year or any prior taxable year.</continuation-text></subparagraph></paragraph><paragraph commented="no" id="id8FBA286CC94246D6AD219448E6EA11CC"><enum>(4)</enum><header>Qualified interconnection property</header><text>For purposes of this paragraph—</text><subparagraph commented="no" id="idDCA2CE7B416A4384B1DF73A6D86B8C60"><enum>(A)</enum><header>In general</header><text>The term <term>qualified interconnection property</term> means, with respect to a qualified facility which is not a microgrid, any tangible property—</text><clause commented="no" id="idD18875B3B1F74510BD219477D06EA82D"><enum>(i)</enum><text>which is part of an addition, modification, or upgrade to a transmission system which is required at or beyond the point at which the qualified facility interconnects to such transmission system in order to accommodate such interconnection,</text></clause><clause id="id05D7B057858240D5B4AB436B8FF47F33"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="idC53D6DB096974B57807E98384FA10E8C"><enum>(I)</enum><text>which is constructed, reconstructed, or erected by the taxpayer, or</text></subclause><subclause id="id6A53E1DB79CB4A29AEE9DB14A5ADAC96" indent="up1"><enum>(II)</enum><text>for which the cost with respect to the construction, reconstruction, or erection of such property is paid or incurred by such taxpayer, and</text></subclause></clause><clause id="id86C3069F07F34B858DEDFB82C03D5EC9"><enum>(iii)</enum><text>the original use of which, pursuant to an interconnection agreement, commences with the utility.</text></clause></subparagraph><subparagraph id="idF6DFFF43A6DF4550948D8ED9EE035A6B"><enum>(B)</enum><header>Interconnection agreement</header><text>The term <term>interconnection agreement</term> means an agreement entered into by a utility and the taxpayer for the purposes of interconnecting the qualified facility owned by such taxpayer to the transmission system of such utility.</text></subparagraph><subparagraph id="idCFB683B615984B3D932AE1F51E200D3F"><enum>(C)</enum><header>Transmission system</header><text>The term <term>transmission system</term> means the facilities owned, controlled, or operated by a utility which are used to provide electric transmission service.</text></subparagraph><subparagraph id="id8D008EF094E64A099E0C946B60B9AE65"><enum>(D)</enum><header>Utility</header><text>The term <term>utility</term> means the owner or operator of an electrical transmission or distribution system which is subject to the regulatory authority of—</text><clause id="idEC65AE191E594E28A41F1A8931B9AF29"><enum>(i)</enum><text>the Federal Energy Regulatory Commission, or </text></clause><clause id="id57C8534DFBDF4AC9A0BAEC336BF1E8A1"><enum>(ii)</enum><text>a State public utility commission or other appropriate State agency. </text></clause></subparagraph></paragraph><paragraph id="id67A4149C4857407F9F80411D5BE3B4FC"><enum>(5)</enum><header>Coordination with rehabilitation credit</header><text>The qualified investment with respect to any qualified facility for any taxable year shall not include that portion of the basis of any property which is attributable to qualified rehabilitation expenditures (as defined in section 47(c)(2)).</text></paragraph><paragraph id="id99F0F229AC944A3397823C5992C1762D"><enum>(6)</enum><header>Definitions</header><text>For purposes of this subsection, the terms <term>CO2e per KWh</term> and <term>greenhouse gas emissions rate</term> have the same meaning given such terms under section 45U(b). </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 of 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 501 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>stored by the taxpayer for an unrelated person,</text></clause></subparagraph><subparagraph commented="no" id="id745CEE00A8494ABFBDB6B1138249823C"><enum>(B)</enum><text>with respect to which depreciation (or amortization in lieu of depreciation) is allowable,</text></subparagraph><subparagraph id="idD93F01CADD78447688A61C71527058BF" commented="no"><enum>(C)</enum><clause commented="no" display-inline="yes-display-inline" id="id095AD81F3925431B8C0F162114C1E194"><enum>(i)</enum><text>the construction, reconstruction, or erection of which is completed by the taxpayer, or</text></clause><clause indent="up1" id="idD05BF25B582D44F48F1A94B3221003A4" commented="no"><enum>(ii)</enum><text>which is acquired by the taxpayer if the original use of such property commences with the taxpayer,</text></clause></subparagraph><subparagraph commented="no" id="id62EE6E3F81094BC1881BDC4A24C01A11"><enum>(D)</enum><text>which has a capacity of not less than 5 kilowatt hours, and</text></subparagraph><subparagraph commented="no" id="id081956975C0B48628D10C80471030728"><enum>(E)</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 property—</text><clause commented="no" id="id3C0B15A36C9740779EFE1F05D05ED59F"><enum>(i)</enum><text>which is—</text><subclause commented="no" id="idF5655AE402BC4DD8A86C7C41D8105280"><enum>(I)</enum><text>an overhead, submarine, or underground transmission property which is capable of transmitting electricity at a voltage of not less than 275 kilovolts, and</text></subclause><subclause commented="no" id="id945CC5E369E643C2888B5533F4EA3B65"><enum>(II)</enum><text>other equipment necessary for the operation of property described in clause (i), 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></subclause></clause><clause commented="no" id="id4DDB534ADEA74D5892AAA54833697169"><enum>(ii)</enum><text>which satisfies the requirements under subparagraphs (B), (C), and (E) of paragraph (2).</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 between substations and end-use customers.</text></subparagraph></paragraph><paragraph commented="no" id="idBDEDD10086584F1EA9BCAD7D7A36AA84"><enum>(4)</enum><header>Wage requirements</header><subparagraph commented="no" id="id7781843E30484E50A55E9E55E727E01D"><enum>(A)</enum><header>In general</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—</text><clause commented="no" id="id144D17F637D548548FC719714690DB1E"><enum>(i)</enum><text>the construction of such property, or</text></clause><clause commented="no" id="id6F0C3F83358C40FB85A4088BE8C618FA"><enum>(ii)</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></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><subparagraph id="id5DEC16B113A84919A629A5C0B12D76D9"><enum>(B)</enum><header>Correction and penalty related to failure to satisfy wage requirements</header><text>For purposes of section 50(a), a taxpayer shall not be treated as failing to satisfy the requirements of this clause if such taxpayer meets requirements similar to the requirements of section 45U(b)(3)(B)(ii).</text></subparagraph></paragraph></subsection><subsection id="id78D32C9F48A9403EAA7632E2A0B17071"><enum>(d)</enum><header>Special rules</header><paragraph id="idE0961F8374A7480897B1C028791E0CA9"><enum>(1)</enum><header>Certain progress expenditure rules made applicable</header><text>Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of subsection (a).</text></paragraph><paragraph id="id4FB2E11EEEA24F5FA71356FEA287DD64"><enum>(2)</enum><header>Special rule for property financed by subsidized energy financing or industrial development bonds</header><text>Rules similar to the rules of section 48(a)(4) shall apply for purposes of this section.</text></paragraph></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, the Secretary of Energy, and the Administrator of the Environmental Protection Agency determine 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 investment with respect to any qualified facility 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 any qualified investment with respect to any qualified facility or grid improvement 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 any qualified investment with respect to any qualified facility or grid improvement 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 any qualified investment with respect to any qualified facility or grid improvement 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 any qualified investment with respect to any qualified facility or grid improvement 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 and the Administrator of the Environmental Protection Agency determine 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 and 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 applicable percentage of 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><subparagraph id="id42E14031C7484524B2574F3DED64AEED"><enum>(A)</enum><header>In general</header><text>An election under paragraph (1) shall be made prior to the date on which the qualified property or grid improvement property is placed in service and in such manner as the Secretary may prescribe. Such election, once made, shall—</text><clause id="id5A411F720666488AA7863D495C2784C1"><enum>(i)</enum><text>be irrevocable with respect to the qualified property or grid improvement property to which such election applies, and</text></clause><clause id="id8DD0880EC9554061BE0F66F85D9E3431"><enum>(ii)</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></clause></subparagraph><subparagraph id="id895EB5F140164A2BA08B9C646242C046"><enum>(B)</enum><header>Additional information</header><text>For purposes of an election under paragraph (1), the Secretary may require such information as the Secretary deems necessary for purposes of preventing duplication, fraud, or any improper payments under this subsection.</text></subparagraph></paragraph><paragraph id="idD33250F4063D4C12BC3CE159DBB74C65"><enum>(3)</enum><header>Application to partnerships and S corporations; excess payments</header><text>Rules similar to the rules of paragraphs (3) and (5) of section 45U(h) shall apply for purposes of this subsection.</text></paragraph><paragraph id="idA7C6BDE55C25476CAFA4DF676B39A543"><enum>(4)</enum><header>Special rules for certain entities</header><subparagraph id="idD1D030FB41F241728449A91A65FA11E6"><enum>(A)</enum><header>Eligibility of certain property</header><text>For purposes of this subsection, paragraphs (3) and (4) of section 50(b) shall not apply with respect to—</text><clause id="id6A149B55ABCD43968C3291792CB4A68B"><enum>(i)</enum><text>any 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 subsection),</text></clause><clause id="id1C99C55858F24DBAA546571DCB46CA2A"><enum>(ii)</enum><text>any mutual or cooperative electric company described in section 501(c)(12) or section 1381(a)(2)(C), or</text></clause><clause id="id13E1828A307F4704AAB18D0BE2AF08D9" commented="no"><enum>(iii)</enum><text>an Indian tribal government (as defined in section 139E(c)(1)).</text></clause></subparagraph><subparagraph commented="no" id="id7B9EB55AE6244DD199BEFA9207C31CB9"><enum>(B)</enum><header>Certain entities treated as taxpayers</header><text>In the case of an election under this subsection, any entity described in clause (i), (ii), or (iii) of subparagraph (A) shall be treated as a taxpayer for purposes of this subsection and determining the amount of any credit under subsection (a).</text></subparagraph></paragraph><paragraph id="idA521E909EA2048FDA5C91586D2377E1C"><enum>(5)</enum><header>Applicable percentage</header><text>For purposes of paragraph (1)—</text><subparagraph id="id459C188A6B644B79983A4B003E69A8C1"><enum>(A)</enum><header>In general</header><text>In the case of any property which satisfies the requirements under subsection (a)(2)(C)(ii) with respect to the construction of such property, the applicable percentage shall be 100 percent.</text></subparagraph><subparagraph id="id7D8C3DC6DFDC4F8BB03FCE1C71888CF6"><enum>(B)</enum><header>Phased domestic content requirement</header><text>Subject to subparagraph (C), in the case of any property which fails to satisfy the requirements under such subsection with respect to the construction of such property, the applicable percentage shall be—</text><clause id="idC31DA79178EC44198DF8D6B65BD63265"><enum>(i)</enum><text>if construction of such property began before January 1, 2024, 100 percent,</text></clause><clause id="id181A7CCBFDEA4566B1F9649FED987C5A"><enum>(ii)</enum><text>if construction of such property began in calendar year 2024, 90 percent,</text></clause><clause id="id00D1A877B5AD4C85AE49F05493F2DD40"><enum>(iii)</enum><text>if construction of such property began in calendar year 2025, 85 percent, and</text></clause><clause id="idCC043ADC16204B0BA0223C0EF28829A5"><enum>(iv)</enum><text>if construction of such property began after December 31, 2025, 0 percent.</text></clause></subparagraph><subparagraph id="id64ECA7D8982D411A9A0BC484E7C26DD3"><enum>(C)</enum><header>Exception</header><text>If the Secretary determines that, for purposes of application of the requirements under subsection (a)(2)(C)(ii) with respect to the construction of such property—</text><clause id="idEAFA0E0C259041ABA6C955B6E9D5EB4F"><enum>(i)</enum><text>their application would be inconsistent with the public interest,</text></clause><clause id="id4225B63A3BBA41FCA64B08348AF2DB3E"><enum>(ii)</enum><text>such materials and products are not produced in the United States in sufficient and reasonably available quantities and of a satisfactory quality, or</text></clause><clause id="id98E5A35E742F44478FC5358C13FF8662"><enum>(iii)</enum><text>inclusion of domestic material will increase the cost of the construction of the property by more than 25 percent,</text></clause><continuation-text continuation-text-level="subparagraph">the applicable percentage shall be 100 percent.</continuation-text></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="HF60E690C5B90476B84E503DCAF0B98D9"><enum>(2)</enum><header>Public utility property</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/50">Section 50(d)</external-xref> is amended—</text><subparagraph id="idF6EB7541695B4704AD5123EB5869123C"><enum>(A)</enum><text>in paragraph (2)—</text><clause id="H6105F89795274720A1373C6BB91BF371"><enum>(i)</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></clause><clause id="H7F18D3FDB3BF4EFBA46AA90E0B7F6582"><enum>(ii)</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 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>, and</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="idB91EEFB6CFC4412EBA79092B6EA338B8"><enum>(B)</enum><text>by adding at the end the following: <quote>Paragraphs (1)(B) and (2)(B) of the section 46(e) referred to in paragraph (1) of this subsection shall not apply to any qualified investment described in section 48D of a real estate investment trust.</quote></text></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, 2021, 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>Subpart A of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after section 25D the following:</text><quoted-block display-inline="no-display-inline" id="id4756BE2E3BD740499BB7C7A1EE75184D" style="OLC"><section id="idD5FCC0EF02DD4993B0A38979D085C112"><enum>25E.</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 and 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,</text></paragraph><paragraph id="idC70EA50A149D4431A2E882A255B9CA10"><enum>(3)</enum><text>has a capacity of not less than 3 kilowatt hours, and</text></paragraph><paragraph id="id7FC5C82397704652B4F2C0217A856AF5"><enum>(4)</enum><text>satisfies the requirements under subparagraphs (A), (C), (D), and (E) of subsection (b)(1).</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, the Secretary of Energy, and the Administrator of the Environmental Protection Agency determine 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><paragraph id="id1D00E33D6FC2467196C8F0D84B711E9C"><enum>(5)</enum><header>Coordination with other credits</header><text>The terms <term>qualified property</term> and <term>energy storage property</term> shall not include any property for which a credit is allowed under section 25D for any expenditure with respect to such property.</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 and 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><external-xref legal-doc="usc" parsable-cite="usc/26/23">Section 23(c)(1)</external-xref> is amended by striking <quote>and section 25D</quote> and inserting <quote>, section 25D, and section 25E</quote>.</text></subparagraph><subparagraph id="id80FA0FBCA55F41CB83F4F574FD961FB9"><enum>(B)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/25">Section 25(e)(1)(C)</external-xref> is amended by striking <quote>and 25D</quote> and inserting <quote>25D, and 25E</quote>.</text></subparagraph><subparagraph id="idC0B0C6C80AA74129A597CC89E61732D0"><enum>(C)</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>with respect to which</quote> and all that follows through the period and inserting the following: </text><quoted-block style="OLC" display-inline="yes-display-inline" id="idF874457EA75C414ABAD68D190ACFA2E6"><text>with respect to which—</text><subparagraph id="idA03C28218CCB4A4EB62FD64D0F44769D"><enum>(A)</enum><text>any qualified small wind energy property expenditure (as defined in subsection (d)(4) of section 25D) is taken into account in determining the credit under such section, or</text></subparagraph><subparagraph id="idF9ED758772F74F45A984DEBEE27CD589"><enum>(B)</enum><text>any expenditures for qualified property (as defined in subsection (b) of section 25E) which uses wind to produce electricity is taken into account in determining the credit under such section.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph id="id790230ACB8D341599F6CBA9A3B054AFD"><enum>(D)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/1016">Section 1016(a)</external-xref> is amended—</text><clause id="id3DC2DA35B36949A38C6DE0063E74044F"><enum>(i)</enum><text>by redesignating paragraphs (35) through (38) as paragraphs (36) through (39), respectively, and</text></clause><clause id="id17D56B5B813B48ACA5318AB2A541E23B"><enum>(ii)</enum><text>by inserting after paragraph (34) the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idE00DF06033034F5C93A58ADA7548CF4D"><paragraph id="id2DB826FBBA5349C89A2CDE4DADFC58FA"><enum>(35)</enum><text>to the extent provided in section 25E(g), in the case of amounts with respect to which a credit has been allowed under section 25E,</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="idC2427E2A350E4D56AEC3F26F832A1926"><enum>(E)</enum><text>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 by inserting after the item relating to section 25D the following new item:</text><quoted-block display-inline="no-display-inline" id="id42A588A3A87B45D6B5DC1FD817127804" style="OLC"><toc><toc-entry bold="off" level="section">Sec. 25E. 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 subsection 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="idF8A1CD8BAB2F4368B3B80F6643DAD823"><enum>(1)</enum><header>Elimination of phaseout</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/25D">Section 25D(g)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id861E822977074B459B7BFD577A7E7241"><subsection commented="no" id="id9BCC07ABF98848B8A20C1D5FA33D7417"><enum>(g)</enum><header>Applicable percentage</header><text>For purposes of subsection (a), the applicable percentage shall be 30 percent.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id637829C8674B449B90450FF37B3B83B5" commented="no" display-inline="no-display-inline"><enum>(2)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to property placed in service after December 31, 2020.</text></paragraph></subsection><subsection commented="no" id="idF7AE38EAC76745688300ECD8CAA389C1"><enum>(b)</enum><header>Renewable electricity production credit</header><paragraph commented="no" id="id2728C13B06C644C781CF46B5E99130BD"><enum>(1)</enum><header>Carryforward of credit</header><subparagraph commented="no" id="id7CDDF3C4819D447CBEA788933281B800"><enum>(A)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/39">Section 39(a)</external-xref> is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id34EA18B44BD54FD0B776B17B58E544DD"><paragraph commented="no" id="id54ED05B8D90F4901BC709A3CD82C3349"><enum>(4)</enum><header>25-year carryforward for renewable electricity production credit</header><text>In the case of the renewable electricity production credit—</text><subparagraph commented="no" id="idA8B611F948764528ADFE6432EFD5D267"><enum>(A)</enum><text>this section shall be applied separately from the business credit (other than the renewable electricity production credit), and</text></subparagraph><subparagraph commented="no" id="id0CBA13EB83AB4C0EBE1848DA7B9C7C82"><enum>(B)</enum><text>paragraph (2) shall be applied—</text><clause commented="no" id="id4A484F4764B346B5A4A639051FDA3917"><enum>(i)</enum><text>by substituting <quote>26 taxable years</quote> for <quote>21 taxable years</quote> in subparagraph (A) thereof, and</text></clause><clause commented="no" id="idD6A36B543DA1471DB6244EDF761FB092"><enum>(ii)</enum><text>by substituting <quote>25 taxable years</quote> for <quote>20 taxable years</quote> in subparagraph (B) thereof.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph commented="no" id="idCBFDCCAA89AD4200A47B588D258CB338"><enum>(B)</enum><header>Effective date</header><text>The amendment made by this paragraph shall apply to credit carryforwards carried to taxable years beginning after the date of enactment of this Act.</text></subparagraph></paragraph><paragraph commented="no" id="idEA290C1A56394B62871FF91D6B8A58D5"><enum>(2)</enum><header>Election for direct payment for renewable electricity production credit</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45">Section 45</external-xref> is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idA475A1D3FC2845EE8FB0E2FDE7432886"><subsection id="id8FF46E414BDD41C881DD9FDBD9C687D3"><enum>(f)</enum><header>Election for direct payment</header><paragraph id="idDD98BEF432B04770999279BF14AA5FDA"><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 (a)(2)(A)(ii) 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="id8F7183348BA34CFD9E9F01C941E37E05"><enum>(2)</enum><header>Form and effect of election</header><subparagraph id="id242D8C3229A747C595B37D987A76119F"><enum>(A)</enum><header>In general</header><text>An election under paragraph (1) shall be made prior to the applicable date on and in such manner as the Secretary may prescribe. Such election, once made, shall—</text><clause id="id8547DF59EDFA4A18B071F9F2DFD9ECE8"><enum>(i)</enum><text>be irrevocable with respect to such qualified facility for the period described in subsection (a)(2)(A)(ii), and</text></clause><clause id="id184341028A4944819D671A72DBDC56FE"><enum>(ii)</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></clause></subparagraph><subparagraph id="id8A15767E34E24D0AA4AE805DB6C3E816"><enum>(B)</enum><header>Additional information</header><text>For purposes of an election under paragraph (1), the Secretary may require such information as the Secretary deems necessary for purposes of preventing duplication, fraud, or any improper payments under this subsection.</text></subparagraph><subparagraph id="id6B96513ED3044D869023B5F6AA5BCAE5"><enum>(C)</enum><header>Applicable date</header><text>For purposes of this paragraph, the term <term>applicable date</term> means—</text><clause id="idD1CE7166BEFE473D8A69B766104AAEF2"><enum>(i)</enum><text>in the case of any qualified facility which is placed in service after December 31, 2020, and before the date of enactment of the <short-title>Clean Energy for America Act</short-title>, the earlier of—</text><subclause id="idDE2DBED5117E49B582453BD87D348117"><enum>(I)</enum><text>the date which is 180 days after the date of enactment of such Act, or</text></subclause><subclause id="id8006A3D20BBD4560A0AC870D0AFF17E6"><enum>(II)</enum><text>the end of the taxable year in which such facility is placed in service,</text></subclause></clause><clause id="id526C4922EA9B40BF8B05F957BDE022EA"><enum>(ii)</enum><text>in the case of any qualified facility the construction of which begins before the date of enactment of the <short-title>Clean Energy for America Act</short-title> and which is not placed in service before such date, the later of—</text><subclause id="id2A155FBFA1444AEA9447058CE4E66BE9"><enum>(I)</enum><text>the date on which such facility is placed in service, or</text></subclause><subclause id="id6E8173918F99455EB85177D2C583AF25"><enum>(II)</enum><text>the date which is 180 days after the date of enactment of such Act, or</text></subclause></clause><clause id="id96415AC0279749D9B3A1FFBB5CA51F01"><enum>(iii)</enum><text>in the case of any qualified facility the construction of which begins on or after the date of enactment of the <short-title>Clean Energy for America Act</short-title>, the date on which such facility is placed in service.</text></clause></subparagraph></paragraph><paragraph id="idF9BE05E5196440BA8927680EAC96CF79"><enum>(3)</enum><header>Application to partnerships and S corporations; excess payment</header><text>Rules similar to the rules of paragraphs (3) and (5) of section 45U(h) shall apply for purposes of this subsection.</text></paragraph><paragraph commented="no" id="idDFFDAB93E36D405CBC4A1AC3B0D21471"><enum>(4)</enum><header>Certain entities treated as taxpayers</header><text>In the case of an election under this subsection—</text><subparagraph id="id8917F4A753FA40CCB0904E8810D8A040"><enum>(A)</enum><text>any 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 subsection),</text></subparagraph><subparagraph id="id96A18D0B317146D0839010282B37B6B9"><enum>(B)</enum><text>any mutual or cooperative electric company described in section 501(c)(12) or section 1381(a)(2)(C), or</text></subparagraph><subparagraph id="id0FBE977E27B74FFCB59623C05BE5A974" commented="no"><enum>(C)</enum><text>an Indian tribal government (as defined in section 139E(c)(1)),</text></subparagraph><continuation-text continuation-text-level="paragraph">shall be treated as a taxpayer for purposes of this subsection and determining the amount of any credit under subsection (a).</continuation-text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection commented="no" id="idC6481D4EC32E47ED8B90191704B6796E"><enum>(c)</enum><header>Termination of allocation of unutilized limitation for advanced nuclear power facilities</header><paragraph commented="no" id="id8972F8D496BC4006819E2FCB9D98CC7D"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45J">Section 45J(b)</external-xref> is amended by striking paragraph (5).</text></paragraph><paragraph commented="no" id="id350323C21C53420294516AB014EE648C"><enum>(2)</enum><header>Effective date</header><text>The amendment made by this subsection shall apply to facilities the construction of which begins after the date of enactment of this Act.</text></paragraph></subsection><subsection commented="no" id="idA8568A0F1D34461B8F7418C07A91EBE0"><enum>(d)</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)(A) 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><paragraph commented="no" id="id408C1C852C4C4ECDB6E2350E72198F57"><enum>(1)</enum><header>In general</header><text>For purposes of this section, the term <term>qualified facility</term> means—</text><subparagraph commented="no" id="id5368E93917744304BC5066CE6914C326"><enum>(A)</enum><text>any direct air capture facility, and</text></subparagraph><subparagraph commented="no" id="idED966194091646558E620607C6F75B2A"><enum>(B)</enum><text>any industrial facility which captures—</text><clause commented="no" id="idE7CC841E05854B2F8F0AACCC9032DBBF"><enum>(i)</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></clause><clause commented="no" id="idF9CAD15DA81C4195B1EBB20A35B843EF"><enum>(ii)</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></clause></subparagraph></paragraph><paragraph commented="no" id="id0B4712CF942C4E77A971AF88900DDE40"><enum>(2)</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 45U or 48D is allowed under section 38 for the taxable year or any prior taxable year.</text></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 December 31, 2026, 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 and the Administrator of the Environmental Protection Agency determine 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)(1)(B)(ii) 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)(A), 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="idB6C7DE395C614721AC126681FAB23B6E"><enum>(2)</enum><header>Wage requirements</header><text>Section 45Q(f), as amended by paragraph (1)(D), is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id9A3E5667140F4F9A928F220CBDF22BB4"><paragraph commented="no" id="idFFE3B1D6D91F4961A6FBE77BF4ACDC4C"><enum>(9)</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>subject to clause (ii) of subparagraph (B), the requirements under clause (i) of such subparagraph, 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 501 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><clause commented="no" id="id5F5093FA8FDF4376A855ED111C89A6D0"><enum>(i)</enum><header>In general</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><subclause 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></subclause><subclause 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></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><clause id="id56C8850515434FABAF6B602969BC6B88"><enum>(ii)</enum><header>Failure to satisfy wage requirements; correction and penalty</header><text>In the case of any taxpayer which fails to satisfy the requirement under clause (i) with respect to the construction of any facility or the alteration or repair of a facility or carbon capture equipment in any year during the period described in clause (i)(II), rules similar to the rules of clauses (i) and (ii) of section 45U(b)(3)(B) shall apply for purposes of this subparagraph.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph commented="no" id="idAB4DA1CC386F44638A3CDB178B8470A5"><enum>(3)</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><subparagraph id="id9D68395008B34FA28F91CE49407F65A1"><enum>(A)</enum><header>In general</header><text>An election under paragraph (1) shall be made prior to the applicable date and in such manner as the Secretary may prescribe. Such election, once made, shall—</text><clause id="id9D71C75CB7904C01807BD1FDD0BF7DDD"><enum>(i)</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></clause><clause id="id7AC20C1009D24B4382571D5366519444"><enum>(ii)</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></clause></subparagraph><subparagraph id="id27514E06A7064BB9A4E127F57E04CC1C"><enum>(B)</enum><header>Additional information</header><text>For purposes of an election under paragraph (1), the Secretary may require such information as the Secretary deems necessary for purposes of preventing duplication, fraud, or any improper payments under this subsection.</text></subparagraph><subparagraph id="id920A21AE5F2548F2B2772B2E34AB5D12"><enum>(C)</enum><header>Applicable date</header><text>For purposes of this paragraph, the term <term>applicable date</term> means—</text><clause id="id5F56BBEEEB024DBD872728E7A7492A8C"><enum>(i)</enum><text>in the case of any carbon capture equipment which is placed in service after December 31, 2020, and before the date of enactment of the <short-title>Clean Energy for America Act</short-title>, the earlier of—</text><subclause id="id75200973E0C442D8AF7AC80A6ECBC0FC"><enum>(I)</enum><text>the date which is 180 days after the date of enactment of such Act, or</text></subclause><subclause id="idD9A4DD2543704ED2BC43F9F606548619"><enum>(II)</enum><text>the end of the taxable year in which such equipment is placed in service,</text></subclause></clause><clause id="idC5811CE33C334F258E6335377C5DCD37"><enum>(ii)</enum><text>in the case of any carbon capture equipment the construction of which began before the date of enactment of the <short-title>Clean Energy for America Act</short-title> and which has not placed in service before such date, the later of—</text><subclause id="id8A98AA0586544BE09BA6144FBB69455A"><enum>(I)</enum><text>the date on which such equipment is placed in service, or</text></subclause><subclause id="id60D6E9641C1F4CF4A30A0556AFFBF646"><enum>(II)</enum><text>the date which is 180 days after the date of enactment of such Act, and</text></subclause></clause><clause id="id8357EBC40C0B44CAB20A95A3BE11B901"><enum>(iii)</enum><text>in the case of any carbon capture equipment the construction of which begins on or after the date of enactment of the <short-title>Clean Energy for America Act</short-title>, the date on which such equipment is placed in service.</text></clause></subparagraph></paragraph><paragraph id="idE2FBAE6FCE7446B0B471EF4FF9AA1977"><enum>(3)</enum><header>Application to partnerships and S corporations; excess payment</header><text>Rules similar to the rules of paragraphs (3) and (5) of section 45U(h) shall apply for purposes of this subsection.</text></paragraph><paragraph commented="no" id="id767C4B9BF7BF464A9747F61E62B88E8B"><enum>(4)</enum><header>Certain entities treated as taxpayers</header><text>In the case of an election under this subsection—</text><subparagraph id="idD65D36586E27428BBE3D4D813B3EE2E7"><enum>(A)</enum><text>any 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 subsection),</text></subparagraph><subparagraph id="id543B30B359B042D3BE2BD6B5D61AAD27"><enum>(B)</enum><text>any mutual or cooperative electric company described in section 501(c)(12) or section 1381(a)(2)(C), or</text></subparagraph><subparagraph id="idEAEB4FE8CAAE4F6594406AC1606F7D90" commented="no"><enum>(C)</enum><text>an Indian tribal government (as defined in section 139E(c)(1)),</text></subparagraph><continuation-text continuation-text-level="paragraph">shall be treated as a taxpayer for purposes of this subsection and determining the amount of any credit under subsection (a).</continuation-text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="idCD86CBE7D59F44B5B423EECBB37952E8"><enum>(4)</enum><header>Credit reduced for grants, tax-exempt bonds, subsidized energy financing, and other credits</header><text>Section 45Q(f), as amended by paragraphs (1)(D) and (2), is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idE0762AB2679C436781113DB68315C6ED"><paragraph id="idB18E46246175446AB127078714D5D849"><enum>(10)</enum><header>Credit reduced for grants, tax-exempt bonds, subsidized energy financing, and other credits</header><text>Rules similar to the rules under section 45(b)(3) shall apply for purposes of this section.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph commented="no" id="id1342B6A2C37448FDB72F943B6ACF7D90"><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) (with the exception of the amendment made under subparagraph (D) of such paragraph) shall apply to facilities the construction of which begins after the date of enactment of this Act.</text></subparagraph><subparagraph commented="no" id="id4572E52420F44410BE1E7DFF1CCBA463"><enum>(B)</enum><header>Elimination of use of carbon oxide as tertiary injectant</header><text>The amendment made by paragraph (1)(D) shall apply to facilities the construction of which begins after December 31, 2026.</text></subparagraph><subparagraph commented="no" id="idB63B03A4D4F44900947BBE840E8042A6"><enum>(C)</enum><header>Wage requirements</header><text>The amendments made by paragraph (2) 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 (3) shall apply to carbon capture equipment which is placed in service after December 31, 2020.</text></subparagraph><subparagraph commented="no" id="id013568659BCF4A29AAB0251787FCE818"><enum>(E)</enum><header>Credit reduced for grants, tax-exempt bonds, subsidized energy financing, and other credits</header><text>The amendments made by paragraph (4) shall apply to taxable years beginning after the date of enactment of this Act.</text></subparagraph></paragraph></subsection><subsection id="id5416450A2A814DE1A423A83DBC18CA5F"><enum>(e)</enum><header>Modification of credits for energy property</header><paragraph commented="no" id="id4BB913FB466540029D0AACBD512045B2"><enum>(1)</enum><header>Termination</header><subparagraph commented="no" id="id91B766401DB04AE3A3E640660630285A"><enum>(A)</enum><header>Solar energy property</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(3)(A)(i)</external-xref> is amended by inserting <quote>but only with respect to property the construction of which begins before January 1, 2024,</quote> after <quote>swimming pool,</quote>.</text></subparagraph><subparagraph commented="no" id="id3E120E74ED3142F4AB174AF61473FEF5"><enum>(B)</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, 2024, and</quote> after <quote>but only</quote>.</text></subparagraph><subparagraph commented="no" id="idCBB9D1CC7E43412E8A12E5CA1988B779"><enum>(C)</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, 2024</quote>.</text></subparagraph></paragraph><paragraph commented="no" id="id4729AA2AA58A4A09862839ED09F67458"><enum>(2)</enum><header>Elimination of phaseouts</header><subparagraph commented="no" id="idD0BEE19EC18A4506AA6029E382650665"><enum>(A)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48</external-xref> is amended by striking paragraphs (6) and (7).</text></subparagraph><subparagraph commented="no" id="idD6951C2037954A38A82BAAC5E7EDB575"><enum>(B)</enum><header>Effective date</header><text>The amendments made by this paragraph shall apply to property the construction of which begins after December 31, 2020.</text></subparagraph></paragraph><paragraph commented="no" id="id07ED58EB145140268128795D9272BEF7"><enum>(3)</enum><header>Increase in credit rate for geothermal deposits</header><subparagraph commented="no" id="id8A53106877724542BFE7F8105934C66D"><enum>(A)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(2)(A)(i)(II)</external-xref> is amended by striking <quote>paragraph (3)(A)(i)</quote> and inserting <quote>clause (i) or (iii) of paragraph (3)(A)</quote>.</text></subparagraph><subparagraph commented="no" id="idBD80EF1E17E049B8B2C1C9CCC2854727"><enum>(B)</enum><header>Effective date</header><text>The amendments made by this paragraph shall apply to property the construction of which begins after December 31, 2020.</text></subparagraph></paragraph><paragraph commented="no" id="idC792A5FF7BFE46A0A6FF6B3456A10CE5"><enum>(4)</enum><header>Election for direct payment</header><subparagraph commented="no" id="id0C2C56F55E754E598853039B7A8EE0BE"><enum>(A)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48</external-xref>, as amended by paragraph (1), is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id2110E75F185043308716D1F37688BDA2"><subsection id="idE631373FDFF74D10BA15007CD0B566CD"><enum>(e)</enum><header>Election for direct payment</header><paragraph id="idBD7D2402C63E423391F60C74931D01B0"><enum>(1)</enum><header>In general</header><text>In the case of any energy 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="id042F2C69767A4094A7939D121C3190CE"><enum>(2)</enum><header>Form and effect of election</header><subparagraph id="id89D8F46DF8AC440E94F9D22428575030"><enum>(A)</enum><header>In general</header><text>An election under paragraph (1) shall be made prior to the applicable date and in such manner as the Secretary may prescribe. Such election, once made, shall—</text><clause id="id49AE5911D933421AA452EB039B222AC5"><enum>(i)</enum><text>be irrevocable with respect to the energy property to which such election applies, and</text></clause><clause id="id97CB48CA9ADA4EFE9BD024A21CA646C1"><enum>(ii)</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></clause></subparagraph><subparagraph id="id71F8EFF0F0FC40AFA1BE260BEA3678C2"><enum>(B)</enum><header>Additional information</header><text>For purposes of an election under paragraph (1), the Secretary may require such information as the Secretary deems necessary for purposes of preventing duplication, fraud, or any improper payments under this subsection.</text></subparagraph><subparagraph id="id399A6DB78C6B4AA994586E033B3B6D38"><enum>(C)</enum><header>Applicable date</header><text>For purposes of this paragraph, the term <term>applicable date</term> means—</text><clause id="id2E4EAF5DDE4E46239DB1F57910CA644E"><enum>(i)</enum><text>in the case of any energy property which is placed in service after December 31, 2020, and before the date of enactment of the <short-title>Clean Energy for America Act</short-title>, the earlier of—</text><subclause id="id7E27209C0DF84DCBB6110FB4855FB2EE"><enum>(I)</enum><text>the date which is 180 days after the date of enactment of such Act, or</text></subclause><subclause id="id420E2819C966479EAF7F93A47585AC20"><enum>(II)</enum><text>the end of the taxable year in which such property is placed in service,</text></subclause></clause><clause id="idA7828BE88B5F432BBD1C1D0191CDB9A9"><enum>(ii)</enum><text>in the case of any energy property the construction of which began before the date of enactment of the <short-title>Clean Energy for America Act</short-title> and which has not been placed in service before such date, the later of—</text><subclause id="id31C100917F22458E8333E89E48DA2F6F"><enum>(I)</enum><text>the date on which such property is placed in service, or</text></subclause><subclause id="id1EBB967C2707493FB708C52C3EFF211B"><enum>(II)</enum><text>the date which is 180 days after the date of enactment of such Act, or</text></subclause></clause><clause id="idAEAEAEE33D1B4C0E855D43CB12A565D9"><enum>(iii)</enum><text>in the case of any energy property the construction of which begins on or after the date of enactment of the <short-title>Clean Energy for America Act</short-title>, the date on which such property is placed in service.</text></clause></subparagraph></paragraph><paragraph id="id951F03C407BD45E59FA1E99513EB686C"><enum>(3)</enum><header>Application to partnerships and S corporations; excess payment</header><text>Rules similar to the rules of paragraphs (3) and (5) of section 45U(h) shall apply for purposes of this subsection.</text></paragraph><paragraph id="id47C7CD5EF395422AB739A46F56F313C6" commented="no"><enum>(4)</enum><header>Special rules for certain entities</header><subparagraph id="id25D64781E6B24196AED213DDD9261050" commented="no"><enum>(A)</enum><header>Eligibility of certain property</header><text>For purposes of this subsection, paragraphs (3) and (4) of section 50(b) shall not apply with respect to—</text><clause id="idC389F787379A472188A0B54D71B10EB0" commented="no"><enum>(i)</enum><text>any 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 subsection),</text></clause><clause id="id91C327918DEC482A810C75B926F246D8" commented="no"><enum>(ii)</enum><text>any mutual or cooperative electric company described in section 501(c)(12) or section 1381(a)(2)(C), or</text></clause><clause id="idD8E0ED5A08364CF3A9069DE1C0EFD883" commented="no"><enum>(iii)</enum><text>an Indian tribal government (as defined in section 139E(c)(1)).</text></clause></subparagraph><subparagraph commented="no" id="idEEADF81E279A44A3AE6361907C6E0040"><enum>(B)</enum><header>Certain entities treated as taxpayers</header><text>In the case of an election under this subsection, any entity described in clause (i), (ii), or (iii) of subparagraph (A) shall be treated as a taxpayer for purposes of this subsection and determining the amount of any credit under subsection (a).</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph commented="no" id="idAFBA61DD42C84F1AAE2DBB2FAA2AEB9E"><enum>(B)</enum><header>Effective date</header><text>The amendment made by this paragraph shall apply to property placed in service after December 31, 2020.</text></subparagraph></paragraph><paragraph id="HB49BA0C466AE47628933C256CE85E069"><enum>(5)</enum><header>Energy credit for qualified biogas property and qualified manure resource recovery property</header><subparagraph id="HF17A3310C9984D1A9C6585E225064CF2"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(3)(A)</external-xref> is amended by striking <quote>or</quote> at the end of clause (vii) and by adding at the end the following new clauses:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H1B043DDE391E44DFB036A1A7147CD662"><clause id="HF381E26C698D4BCCABCFCAF8853AEEA9"><enum>(ix)</enum><text display-inline="yes-display-inline">qualified biogas property, or</text></clause><clause id="H9CA47599018649FEA34589621AAB19EB"><enum>(x)</enum><text>qualified manure resource recovery property,</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph id="HF167AD2C9EA9485985DE2B97D4E061D6"><enum>(B)</enum><header>30-Percent credit</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(2)(A)(i)</external-xref> is amended by striking <quote>and</quote> at the end of subclause (IV), by striking <quote>and</quote> at the end of subclause (V), and by adding at the end the following new subclauses:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H8FC83DC06D654CDABD64774E55303861"><subclause id="H74D26992EBD141D5A6674C6D40404483"><enum>(VI)</enum><text display-inline="yes-display-inline">qualified biogas property, and</text></subclause><subclause id="H9B2BA43F3C57410E88F079C76CC32E66"><enum>(VII)</enum><text>qualified manure resource recovery property, and</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph id="HB71B85F32E434EE8A91342376979E8BA"><enum>(C)</enum><header>Definitions</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(c)</external-xref> is amended by adding at the end the following new paragraphs:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H60672CEDC3674F5E8B401063E9707B6E"><paragraph id="H3600158790CD46C08731DE9F27E41B3A"><enum>(6)</enum><header>Qualified biogas property</header><subparagraph id="HE24D969996CE4D8C8A08E5334FDB759A"><enum>(A)</enum><header>In general</header><text>The term <term>qualified biogas property</term> means property comprising a system which—</text><clause id="HF7A070E716164D4985A0D41B44C2E828"><enum>(i)</enum><text display-inline="yes-display-inline">uses anaerobic digesters, or other biological, chemical, thermal, or mechanical processes (alone or in combination), to convert biomass (as defined in section 45K(c)(3)) into a gas which consists of not less than 52 percent methane, and</text></clause><clause id="H5FF266B177404016839C7A44DF8E3D8A"><enum>(ii)</enum><text>captures such gas for use as a fuel.</text></clause></subparagraph><subparagraph id="H1C9916FC0CE5455B875AB3C1EE42A3B6"><enum>(B)</enum><header>Inclusion of certain cleaning and conditioning equipment</header><text>Such term shall include any property which cleans and conditions the gas referred to in subparagraph (A) for use as a fuel.</text></subparagraph><subparagraph commented="no" id="HD630EED3D0B44BDD841B3074AA3AB826"><enum>(C)</enum><header>Termination</header><text>No credit shall be determined under this section with respect to any qualified biogas property for any period after December 31, 2023.</text></subparagraph></paragraph><paragraph id="HCAFFBD90583D4929B17ADE62A164D737"><enum>(7)</enum><header>Qualified manure resource recovery property</header><subparagraph id="HC5ABD8273DB2495C93BF425CF7EC935D"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>qualified manure resource recovery property</term> means property comprising a system which uses physical, biological, chemical, thermal, or mechanical processes to recover the nutrients nitrogen and phosphorus from a non-treated digestate or animal manure by reducing or separating at least 50 percent of the concentration of such nutrients, excluding any reductions during the incineration, storage, composting, or field application of the non-treated digestate or animal manure.</text></subparagraph><subparagraph id="H2E4DCAA0E62C43C8987EEAD3E7D3D13C"><enum>(B)</enum><header>Inclusion of certain processing equipment</header><text>Such term shall include—</text><clause id="H4C4A74EF12FB46FA9C593CDD20C45947"><enum>(i)</enum><text>any property which is used to recover the nutrients referred to in subparagraph (A), such as—</text><subclause id="H5DBA3B7170DA4DC888594A95CC40B145"><enum>(I)</enum><text>biological reactors,</text></subclause><subclause id="HAF7B9392F5C641C587B3AAFCB7652EC5"><enum>(II)</enum><text>crystallizers,</text></subclause><subclause id="H31F45B43FF1941F09CCDE70705883A9D"><enum>(III)</enum><text>water filtration membrane systems and other water purifiers,</text></subclause><subclause id="H57ED9522C9C84D4C86B9BBA6857A97B4"><enum>(IV)</enum><text>evaporators,</text></subclause><subclause id="HB5617CDAD80E4945B7A5821D062D81E4"><enum>(V)</enum><text>distillers,</text></subclause><subclause id="H647811A6D5084810B23C9D89B3B3B73F"><enum>(VI)</enum><text>decanter centrifuges, and</text></subclause><subclause id="H4BE5AAC9E4D841AE9E9434DF3CB2CFD2"><enum>(VII)</enum><text>equipment that facilitates the process of removing and dewatering suspended and dissolved solids, ammonia stripping, gasification, or ozonation, and</text></subclause></clause><clause id="H717F8077D89647CB90A344CE12F57963"><enum>(ii)</enum><text>any thermal drier which treats the nutrients recovered by the processes referred to in subparagraph (A).</text></clause></subparagraph><subparagraph commented="no" id="H3903843CCD984CD6A51BD29A3BD0B164"><enum>(C)</enum><header>Termination</header><text display-inline="yes-display-inline">No credit shall be determined under this section with respect to any qualified manure resource recovery property for any period after December 31, 2023.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph id="H6BBF29B1DCDD4FA6BE976B12A93C6A30"><enum>(D)</enum><header>Denial of double benefit for qualified biogas property</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45">Section 45(e)</external-xref> is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HFC44A8D2603941F99ED664FAAE26D385"><paragraph id="H6C7E82CF757C471EA0347B198754D835"><enum>(12)</enum><header>Coordination with energy credit for qualified biogas property</header><text display-inline="yes-display-inline">The term <term>qualified facility</term> shall not include any facility which produces electricity from gas produced by qualified biogas property (as defined in section 48(c)(6)) if a credit is determined under section 48 with respect to such property for the taxable year or any prior taxable year.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph commented="no" id="H4333AE373728402F8ADBC8E328739676"><enum>(E)</enum><header>Effective date</header><text>The amendments made by this paragraph shall apply to property placed in service after December 31, 2020, under rules similar to the rules of section 48(m) of such Code (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990). </text></subparagraph></paragraph><paragraph id="idDA5A473C5D4343C483E44CA458D8AFA2"><enum>(6)</enum><header>Expansion of energy credit to include clean hydrogen production facilities</header><subparagraph id="idF0A90BE3ABCB4EED899B900C39BC3C70"><enum>(A)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(a)(5)</external-xref> is amended—</text><clause id="id491E1DF136954BC397D245136692DFD5"><enum>(i)</enum><text>in subparagraph (A)(ii), by inserting <quote>subject to subparagraph (G)(i),</quote> before <quote>the energy percentage</quote>,</text></clause><clause id="idDDC070FB738A43CD932EF8A81A0E7ED2"><enum>(ii)</enum><text>in subparagraph (B), by inserting <quote>or 45X</quote> after <quote>section 45</quote>, </text></clause><clause id="id224190FEE2B047D6B6A2379E6D12B7D1"><enum>(iii)</enum><text>in subparagraph (C)—</text><subclause id="id355F8497FBB94A029D655D4B419BD49D"><enum>(I)</enum><text>in clause (i), by inserting <quote>or, subject to subparagraph (G)(ii), a qualified clean hydrogen production facility (as defined in section 45X(d)(3))</quote> after <quote>section 45(d)</quote>,</text></subclause><subclause id="id5F232AC374BA4AEEA7B81CDD31C2584A"><enum>(II)</enum><text>in clause (ii), by inserting <quote>(or, in the case of a qualified clean hydrogen production facility, which is placed in service after 2020 and the construction of which begins before January 1, 2030)</quote> after <quote>January 1, 2022</quote>, and</text></subclause><subclause id="id87365F414ED34C35B8E2BE2EDC82A586"><enum>(III)</enum><text>in clause (iii)(I), by inserting <quote>or 45X</quote> after <quote>section 45</quote>, and</text></subclause></clause><clause id="id1FEB89870D8A4074BCF9D3B90433755B"><enum>(iv)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id3E27DB4118A045B0A15FF6CBCCE5E873"><subparagraph id="id4CF2E49B3CC241FABF59A3E1E287156D"><enum>(G)</enum><header>Qualified clean hydrogen production facilities</header><clause id="idFD34A1E50C304AC195D0296DE520714C"><enum>(i)</enum><header>Energy percentage</header><subclause id="idDFABA74E7FE2438591C585A42FE1073C"><enum>(I)</enum><header>In general</header><text>For purposes of subparagraph (A)(ii), in the case of a qualified investment credit facility which is a qualified clean hydrogen production facility, the energy percentage with respect to such facility shall be an amount (expressed as a percentage) equal to—</text><item id="id844BBC7B07194773A05A122BC69E0AAA"><enum>(aa)</enum><text>in the case of a facility which is estimated to produce qualified clean hydrogen (as defined in described in section 45X(d)(2)) which is described in subparagraph (A) of section 45X(b)(2), 20 percent of the energy percentage otherwise applicable under subparagraph (A)(ii),</text></item><item id="id86181CC475B445FDB1A1DB79E22B012D"><enum>(bb)</enum><text>in the case of a facility which is estimated to produce qualified clean hydrogen which is described in subparagraph (B) of section 45X(b)(2), 25 percent of the energy percentage otherwise applicable under subparagraph (A)(ii),</text></item><item id="id281504B4B43047C39EF97F8E41D4FEAD"><enum>(cc)</enum><text>in the case of a facility which is estimated to produce qualified clean hydrogen which is described in subparagraph (C) of section 45X(b)(2), 34 percent of the energy percentage otherwise applicable under subparagraph (A)(ii), and</text></item><item id="id9A35044346024D2E813DBC0E3DBC2FC0"><enum>(dd)</enum><text>in the case of a facility which is estimated to produce qualified clean hydrogen which is described in subparagraph (D) of section 45X(b)(2), 100 percent of the energy percentage otherwise applicable under subparagraph (A)(ii).</text></item></subclause><subclause id="idA94B124A75B04320B50A558BF7B4613D"><enum>(II)</enum><header>Recapture</header><text>The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under this section with respect to any qualified clean hydrogen production facility which fails to produce qualified clean hydrogen consistent with the applicable percentage reduction in lifecycle greenhouse gas emissions described in section 45X(b)(2) which were estimated for such facility pursuant to subclause (I).</text></subclause></clause><clause id="idDEF9F12DB7674A848259549BACC37BD4"><enum>(ii)</enum><header>No double benefit</header><text>For purposes of this paragraph, the term <term>qualified investment credit facility</term> shall not include any qualified clean hydrogen production facility for which a credit is allowed under section 38 for the taxable year or any prior taxable year which is properly allocable to any credit determined under—</text><subclause id="idB99E646DA3CE4014AB08C8CBA9BE4A07"><enum>(I)</enum><text>this section (other than pursuant to this paragraph), or</text></subclause><subclause id="id68564735A62F421988CEBF1ED2803E99"><enum>(II)</enum><text>section 45, 45J, 45Q, 45U, 45V, or 48D.</text></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="idD034D76522E34B6789C0E4FEFF5F50BC"><enum>(B)</enum><header>Effective date</header><text>The amendments made by this paragraph shall apply to property placed in service after December 31, 2020. </text></subparagraph></paragraph><paragraph id="HBAE603CC9220467AA04B50084932BCC6"><enum>(7)</enum><header>Fuel cells using electromechanical processes</header><subparagraph id="H4FAA84BD591D43E0BAAD392B179BAEEE"><enum>(A)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(c)(1)</external-xref> is amended—</text><clause id="H050A7EE2B3DC46CCB501C699163E8A6A"><enum>(i)</enum><text>in subparagraph (A)(i)—</text><subclause id="H07C95916A1A9423BAF926EBEF76B427E"><enum>(I)</enum><text>by inserting <quote>or electromechanical</quote> after <quote>electrochemical</quote>, and</text></subclause><subclause id="HC4785DE96E4E490F9D92BF6C22881F26" commented="no"><enum>(II)</enum><text>by inserting <quote>(1 kilowatts in the case of a fuel cell power plant with a linear generator assembly)</quote> after <quote>0.5 kilowatt</quote>, and</text></subclause></clause><clause id="H6856DBC1C5904026AA5A77498569289F"><enum>(ii)</enum><text>in subparagraph (C)—</text><subclause id="HFD480E9E55E644EEA0A0D0BC490D558D"><enum>(I)</enum><text>by inserting <quote>, or linear generator assembly,</quote> after <quote>a fuel cell stack assembly</quote>, and </text></subclause><subclause id="HEF3F1062A2654777BC2D92B0C7BE7837"><enum>(II)</enum><text>by inserting <quote>or electromechanical</quote> after <quote>electrochemical</quote>.</text></subclause></clause></subparagraph><subparagraph id="H2DC5797ADFA64FC0AB00AD2985804161"><enum>(B)</enum><header>Linear generator assembly limitation</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48">Section 48(c)(1)</external-xref> is amended by redesignating subparagraph (D) as subparagraph (E) and by inserting after subparagraph (C) the following new subparagraph: </text><quoted-block style="OLC" id="H9B60424A30C74DF784947EFDF9F81033" display-inline="no-display-inline"><subparagraph id="HA73C5F6AE6794E1CBB4E73C6DF716E95" commented="no"><enum>(D)</enum><header>Linear generator assembly</header><text display-inline="yes-display-inline">The term <term>linear generator assembly</term> does not include any assembly which contains rotating parts.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph id="id21C967EC4127415C9369CE600F48A6AE"><enum>(C)</enum><header>Effective date</header><text>The amendments made by this paragraph shall apply to property the construction of which begins after December 31, 2020.</text></subparagraph></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><paragraph id="idDBC8ED457D6E4347AAC484058BD5F78E"><enum>(1)</enum><header>Allowance of credit</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, an 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 (4), 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 which is sold during any calendar year beginning after December 31, 2029, and which has an emissions rate equal to or less than zero, 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 (4).</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="id1C7310B7E47345AD9680CC879DDA9E43" commented="no"><enum>(3)</enum><header>Special rate for sustainable aviation fuel</header><subparagraph id="id6361C0A307FF4340AD568B13D07C08DD" commented="no"><enum>(A)</enum><header>In general</header><text>In the case of an transportation fuel which is sustainable aviation fuel, paragraphs (1)(A)(i) and (2) shall each be applied by substituting <quote>$2.00</quote> for <quote>$1.00</quote>.</text></subparagraph><subparagraph id="idDEE439D72EF34735A357749CA1485EBD" commented="no"><enum>(B)</enum><header>Sustainable aviation fuel</header><text display-inline="yes-display-inline">For purposes of this subparagraph (A), the term <term>sustainable aviation fuel</term> means liquid fuel which is sold for use in, or used in, an aircraft and which—</text><clause id="id89D05B3543CC42FB9447E4792A6EE3B9" commented="no"><enum>(i)</enum><text>consists of synthesized hydrocarbons, </text></clause><clause id="id14D0CBF31FDC4736954378072DBADC91" commented="no"><enum>(ii)</enum><text display-inline="yes-display-inline">meets the requirements of—</text><subclause id="id70046673E9B540A9BE138446E8D87343" commented="no"><enum>(I)</enum><text>ASTM International Standard D7566, or</text></subclause><subclause id="idA6BB647EB1B04291830DECD7EE9EB24B" commented="no"><enum>(II)</enum><text display-inline="yes-display-inline">the Fischer Tropsch provisions of ASTM International Standard D1655, Annex A1,</text></subclause></clause><clause id="id5E002BB1ECB34279BB5E314C3E6F5F5D"><enum>(iii)</enum><text>is derived from—</text><subclause id="id644872B1AA7846CEA75F07BD95745B19"><enum>(I)</enum><text>biomass (as such term is defined in section 45K(c)(3)), or</text></subclause><subclause id="id1240F217E9034ECBB1397777D9ED6354"><enum>(II)</enum><text>electrolysis powered by renewable energy resources, or</text></subclause><subclause id="id55A195CC224342F8A69ED452F7F0C8B2"><enum>(III)</enum><text>carbon oxides captured from an industrial source or from the ambient air, and</text></subclause></clause><clause id="id9A029135C5CA42EBBC61ED88EB0F0490" commented="no"><enum>(iv)</enum><text display-inline="yes-display-inline">is not derived from palm fatty acid distillates.</text></clause></subparagraph></paragraph><paragraph id="id725658571414400F9003605E6540D6CE" commented="no"><enum>(4)</enum><header>Sale</header><text>For purposes of paragraph (1), the transportation fuel is sold in a manner described in this paragraph if such fuel is sold by the taxpayer to an unrelated person—</text><subparagraph id="id59975DFF99DF45558E3F80E1FAB7104C" commented="no"><enum>(A)</enum><text>for use by such person in the production of a fuel mixture,</text></subparagraph><subparagraph id="idEED7A7CD58B248F3B99D5CC1366AED69" commented="no"><enum>(B)</enum><text>for use by such person in a trade or business, or</text></subparagraph><subparagraph id="idB78FB191D1594C1EA42024910E01689C" commented="no"><enum>(C)</enum><text>who sells such fuel at retail to another person and places such fuel in the fuel tank of such other person.</text></subparagraph></paragraph><paragraph id="id93794ABF91474324855895F7E1A60710" commented="no"><enum>(5)</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 and the Secretary of Energy 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 under subparagraph (C), a taxpayer producing such fuel may file a petition with the Secretary and the Secretary of Energy 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 and the Secretary of Energy 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 annually 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) and the $2.00 amount in subsection (a)(3) shall each 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 and the Administrator of the Environmental Protection Agency determine 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 applicable under 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 applicable under 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" commented="no"><enum>(4)</enum><header>Qualified facility</header><subparagraph id="id64A4A3B9CFFA477D8A91A2AB494C0BB5" commented="no"><enum>(A)</enum><header>In general</header><text>The term <term>qualified facility</term> means a facility—</text><clause id="idFE45A326734E4585B6BDDB30CCCA6F5E" commented="no"><enum>(i)</enum><text>used for the production of transportation fuels, and</text></clause><clause id="idBC178D0CC154489780C013BA15D4D75A" commented="no"><enum>(ii)</enum><text>which—</text><subclause id="idF88B03D8D98A4D5CBECA2FFABF0EE4E8" commented="no"><enum>(I)</enum><text>subject to clause (ii) of subparagraph (B), satisfies the requirements under clause (i) of such subparagraph, and</text></subclause><subclause id="id5A69347577654C38A97E0F33348C9D8D" commented="no"><enum>(II)</enum><text>with respect to the construction of such facility, satisfies the requirements under section 501 of the <short-title>Clean Energy for America Act</short-title>.</text></subclause><continuation-text continuation-text-level="clause" commented="no">Clause (ii)(II) shall not apply to any facility placed in service before January 1, 2023.</continuation-text></clause></subparagraph><subparagraph commented="no" id="id143AE9CFDA9C41F6B5579C284F0B9EAE"><enum>(B)</enum><header>Wage requirements</header><clause commented="no" id="id57AB98F4B1A94C3BB8D618532330A9F2"><enum>(i)</enum><header>In general</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><subclause commented="no" id="id44BC961F72304CF581537DE6F04F185A"><enum>(I)</enum><text>the construction of such facility, or</text></subclause><subclause 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></subclause><continuation-text continuation-text-level="clause" commented="no">shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality 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><clause id="idC74A2880ACEB4A0D92878FC6403A042C" commented="no"><enum>(ii)</enum><header>Failure to satisfy wage requirements; correction and penalty</header><text>In the case of any taxpayer which fails to satisfy the requirement under clause (i) with respect to the construction of any facility or the alteration or repair of such facility in any year during the period described in clause (i)(II), rules similar to the rules of clauses (i) and (ii) of section 45U(b)(3)(B) shall apply for purposes of this subparagraph.</text></clause><clause id="id14FC44BC5FAB42C18F6507E9D38761BF" commented="no"><enum>(iii)</enum><header>Special rule for facilities placed in service before January 1, 2023</header><text>In the case of any facility placed in service before January 1, 2023—</text><subclause id="id972AB856D2104DCB9535575ACE4A8C16" commented="no"><enum>(I)</enum><text>clause (i)(I) shall not apply, and</text></subclause><subclause id="id85ACA34E847F43D682B7AF973AA96573" commented="no"><enum>(II)</enum><text>clause (ii) shall be applied without regard to the phrase <quote>the construction of any facility or</quote>.</text></subclause></clause></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 and the Secretary of Energy shall jointly 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></paragraph><paragraph id="id016150F02F2643B1AFD3296F0CCA5492"><enum>(2)</enum><header>Conforming amendments</header><subparagraph id="id0F12260C0F2D445C85B67D76467769CF"><enum>(A)</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><clause id="id32B1E375ADF747728272459EE4092ADD"><enum>(i)</enum><text>in paragraph (33), by striking <quote>plus</quote> at the end,</text></clause><clause id="idC53BC2BA6CF14C5CB6631843D0A08A19"><enum>(ii)</enum><text>in paragraph (34), by striking the period at the end and inserting <quote>, plus</quote>, and</text></clause><clause id="id8BBDF180C35D432A8DC9AC53DE5157F0"><enum>(iii)</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></clause></subparagraph><subparagraph id="id4BD9C8AF664F44F7A7C591C64DAD3DD4"><enum>(B)</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></subparagraph><subparagraph commented="no" id="id96FBDCE30E374E9CA0C68254F3D94A0E"><enum>(C)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/4101">Section 4101(a)(1)</external-xref> is amended by inserting <quote>every person producing a fuel eligible for the clean fuel production credit (pursuant to section 45V),</quote> after <quote>section 6426(b)(4)(A)),</quote>.</text></subparagraph></paragraph><paragraph id="idFB3FFF70C67445E9B98F09ED3E37B4EC" commented="no" display-inline="no-display-inline"><enum>(3)</enum><header>Effective date</header><text>The amendments made by this section shall apply to transportation fuel produced after December 31, 2022.</text></paragraph></subsection><subsection id="HF1EA0385257D4552AF609EC0EF32C539"><enum>(b)</enum><header>Sustainable aviation fuel credit</header><paragraph id="HBEB2E4ECF9944CA5BD7880C2DD41B907"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Subpart D of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after section 40A the following new section: </text><quoted-block style="OLC" display-inline="no-display-inline" id="H1CE2856831EC47A7930D028B45DCCFDC"><section id="H6B568057B3F94DE9AA57CCCAC05E9834"><enum>40B.</enum><header>Sustainable aviation fuel credit</header><subsection commented="no" id="H75BCE3263C1E4B26939C064CD373EE3C"><enum>(a)</enum><header>In general</header><paragraph commented="no" id="H744824214BB3472E90EEF684CFB759D2"><enum>(1)</enum><header>Credit amount</header><text>For purposes of section 38, the sustainable aviation fuel credit for the taxable year is, with respect to any sale or use of a qualified mixture which occurs during such taxable year, an amount equal to the product of—</text><subparagraph commented="no" id="idCFB4A7F40A734F8091522A1B33112C69"><enum>(A)</enum><text>the number of gallons of sustainable aviation fuel in such mixture, multiplied by</text></subparagraph><subparagraph commented="no" id="idA18756F17D2B44328011179C9DA7AEF4"><enum>(B)</enum><text>the sum of— </text><clause commented="no" id="H2412EA0D37E649AFB95832B792F4A493"><enum>(i)</enum><text>$1.50, plus</text></clause><clause commented="no" id="HA92CBBD603654AF29B624208716D4DA6"><enum>(ii)</enum><text>the applicable supplementary credit amount with respect to the sustainable aviation fuel.</text></clause></subparagraph></paragraph><paragraph commented="no" id="HB69CF3EF34D948AFBE5F2B238CBA8083"><enum>(2)</enum><header>Applicable supplementary credit amount</header><subparagraph id="H2510DC33D3A84C5CA866D08F0A6CE930"><enum>(A)</enum><header>In general</header><text>For purposes of this section, the applicable supplementary credit amount means, with respect to any sustainable aviation fuel, an amount equal to $0.01 for every percentage point by which the lifecycle greenhouse gas emissions reduction percentage with respect to such fuel exceeds 50 percent. </text></subparagraph><subparagraph id="H253103FD21A643AFB4F09890C102857E"><enum>(B)</enum><header>Limitation</header><text>In no event shall the applicable supplementary credit amount exceed $0.50.</text></subparagraph></paragraph></subsection><subsection id="HC8E80020517F4774AAED711EF3D74DF7"><enum>(b)</enum><header>Qualified mixture</header><text display-inline="yes-display-inline">For purposes of this section—</text><paragraph id="id4B71F5608B86451C82D4AD4D12A2B16B"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>qualified mixture</term> means a mixture of sustainable aviation fuel and kerosene if—</text><subparagraph id="idbbd97de7620d4b0886712104a674731e"><enum>(A)</enum><text>such mixture is produced in the United States by a taxpayer, and</text></subparagraph><subparagraph id="id4ef91964d9af483c8217f72598887f34"><enum>(B)</enum><text>such mixture is—</text><clause id="idC1433CC0EB014C2885DF13965B291774"><enum>(i)</enum><text>sold for use in an aircraft, or</text></clause><clause id="idCFFD846691664E57B6471B33EAF98740"><enum>(ii)</enum><text>used by the taxpayer in an aircraft.</text></clause></subparagraph></paragraph><paragraph id="idEA8DBE70E7BF492798714992A8BA68FB"><enum>(2)</enum><header>Sale or use must be in trade or business, etc</header><text display-inline="yes-display-inline">Sustainable aviation fuel used in the production of a qualified mixture shall be taken into account—</text><subparagraph id="HCC87FF0CB07F42D5B5557F43D2F5510A"><enum>(A)</enum><text display-inline="yes-display-inline">only if the sale or use described in paragraph (1) is in a trade or business of the taxpayer, and</text></subparagraph><subparagraph id="H353DA54DECB549BEAE9498137ADD2216"><enum>(B)</enum><text display-inline="yes-display-inline">for the taxable year in which such sale or use occurs.</text></subparagraph></paragraph><paragraph id="id11E376FCAEF347EEA7202204E6F28CD1" commented="no"><enum>(3)</enum><header>Fueling must be in the United States</header><text>A qualified mixture shall not be treated as used or sold for use in an aircraft unless the transfer of such mixture to the fuel tank of such aircraft occurs in the United States.</text></paragraph><paragraph id="idC9B12DF77E844E3EB4EE188A1E7CF5CD"><enum>(4)</enum><header>United States</header><text>For purposes of this subsection, the term <term>United States</term> includes any possession of the United States. </text></paragraph></subsection><subsection id="HDCE8C16BBD80485B82A0C0CBD99D1116"><enum>(c)</enum><header>Sustainable aviation fuel</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>sustainable aviation fuel</term> means liquid fuel—</text><paragraph id="H140FA831920943888110D3B58892EED9"><enum>(1)</enum><text>which—</text><subparagraph id="HAE6C993301894ED3AC830E809E607E3A"><enum>(A)</enum><text>consists of synthesized hydrocarbons, </text></subparagraph><subparagraph id="HFED3F43EFE7B425EA9ADE5CB6FBBB38E"><enum>(B)</enum><text display-inline="yes-display-inline">meets the requirements of—</text><clause id="HBFB83BA733FF4F22A5912065A6D7A644"><enum>(i)</enum><text>ASTM International Standard D7566, or</text></clause><clause id="H19B51736AEC54EC2A62C0906B73F27E7"><enum>(ii)</enum><text display-inline="yes-display-inline">the Fischer Tropsch provisions of ASTM International Standard D1655, Annex A1, </text></clause></subparagraph><subparagraph id="HA844CE1521654286814367EF491AB15D"><enum>(C)</enum><text>is derived from—</text><clause id="idC3C6A99E15554331BAEE8BE8C1DAB463"><enum>(i)</enum><text>biomass (as such term is defined in section 45K(c)(3)), or</text></clause><clause id="id7A801EB7F0B648D8A166798EF6AD043A"><enum>(ii)</enum><text>electrolysis powered by renewable energy resources, or</text></clause><clause id="id852E13A855514C0798C676375A52A29D"><enum>(iii)</enum><text>carbon oxides captured from an industrial source or from the ambient air, and</text></clause></subparagraph><subparagraph id="HC9D71F87FA5442A39695048A592E2803"><enum>(D)</enum><text display-inline="yes-display-inline">is not derived from palm fatty acid distillates, and</text></subparagraph></paragraph><paragraph id="H8C61CCBCF08649709C03B334EDDDDFC0"><enum>(2)</enum><text>which has been certified by the producer of such fuel in accordance with subsection (d) as having lifecycle greenhouse gas emissions that are equal to or less than 50 percent of the lifecycle greenhouse gas emissions for petroleum-based jet fuel.</text></paragraph></subsection><subsection commented="no" id="HFC2B14C66B174F21833DF12912BA634E"><enum>(d)</enum><header>Certification requirements</header><text>A certification meet the requirements of this subsection if such certification is based on a method which—</text><paragraph commented="no" id="id7659BFCC322044FCBC2DA732C1BDC900"><enum>(1)</enum><text>demonstrates that the fuel conforms with—</text><subparagraph commented="no" id="id16053E0B761F4E76862E8486EBAAE70F"><enum>(A)</enum><text>the sustainability criteria of the Carbon Offsetting and Reduction Scheme for International Aviation, and </text></subparagraph><subparagraph commented="no" id="id807B0A5AAD404FD9A1915DC6559BD3DD"><enum>(B)</enum><text>the traceability and information transmission requirements approved by the International Civil Aviation Organization with the agreement of the United States, </text></subparagraph></paragraph><paragraph commented="no" id="idB245B4EA8FB245E0A19F4E18D3AE8870"><enum>(2)</enum><text>takes into account all elements used to determine lifecycle emissions by the International Civil Aviation Organization, and</text></paragraph><paragraph commented="no" id="id7A32E7CFE9E1472E965DF309E3C5EF43"><enum>(3)</enum><text>is approved by—</text><subparagraph commented="no" id="id4DD8BF76EE164651AF8FC953B571DB9D"><enum>(A)</enum><text>the International Civil Aviation Organization, or</text></subparagraph><subparagraph commented="no" id="idA9E5458333E545A28CEAF9378AD02BD0"><enum>(B)</enum><text>the Secretary and Administrator of the Environmental Protection Agency.</text></subparagraph></paragraph></subsection><subsection commented="no" id="HD21C9DD0F4764C8BAACD980AB9143DBF"><enum>(e)</enum><header>Time limit for adoption of new sustainable aviation fuel emissions reduction test</header><text display-inline="yes-display-inline">For purposes of subparagraph (B) of subsection (d)(3), the Secretary and the Administrator of the Environmental Protection Agency shall, within 24 months after the date of the enactment of this section, adopt at least one method for testing lifecycle greenhouse gas emissions that meets the requirements of such subsection. </text></subsection><subsection id="idb83c43a6c67645518b0a77f1196ef225" commented="no"><enum>(f)</enum><header>Certification of sustainable aviation fuel</header><text>No credit shall be allowed under this section with respect to any sustainable aviation fuel unless the taxpayer obtains a certification (in such form and manner as prescribed by the Secretary) from the producer or importer of the sustainable aviation fuel which identifies the product produced and the percentage of sustainable aviation fuel in the product.</text></subsection><subsection id="HB23790B4BEE944D3A0E6515DA78DC3CE"><enum>(g)</enum><header>Termination</header><text>This section shall not apply to any sale or use after December 31, 2022.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H9F5B6F9A8AD8410AA71BAE0AD792B231"><enum>(2)</enum><header>Credit made part of general business credit</header><text display-inline="yes-display-inline"> Section 38(b), as amended by this Act, is amended—</text><subparagraph id="id66977F5EE72441ADA2A3033963396559"><enum>(A)</enum><text>in paragraph (34), by striking <quote>plus</quote> at the end,</text></subparagraph><subparagraph id="idE5CC2D502F88408C8355838DA1B7B867"><enum>(B)</enum><text>in paragraph (35), by striking the period at the end and inserting <quote>, plus</quote>, and</text></subparagraph><subparagraph id="id6163963375834644903443699FFDD39F"><enum>(C)</enum><text>by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HA4EFA6B4F3B542DBB2410ACEA49A9707"><paragraph id="H21DF1E9D24DF450AA7B944D1C7D705A7"><enum>(36)</enum><text display-inline="yes-display-inline">the sustainable aviation fuel credit determined under section 40B.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="HED91F0C7641F4D93911C87ADB7FA67C1" commented="no"><enum>(3)</enum><header>Coordination with renewable diesel</header><subparagraph commented="no" id="id5C6F0D298DFC44C68A381C6CDB192310"><enum>(A)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/40A">Section 40A(f)</external-xref> is amended by striking paragraph (4).</text></subparagraph><subparagraph commented="no" id="id85DACE3A70C54B309981C9CEEE304CE1"><enum>(B)</enum><header>Other coordination rules</header><clause id="id3B8C83FE66644CB994063B1ECACC8424" commented="no"><enum>(i)</enum><text>The last sentence of <external-xref legal-doc="usc" parsable-cite="usc/26/40A">section 40A(d)(1)</external-xref> is amended by inserting <quote>or 40B</quote> after <quote>40</quote>.</text></clause><clause id="id63FD3DD54C8540C6A3A98775A4370067" commented="no"><enum>(ii)</enum><text>The second sentence of <external-xref legal-doc="usc" parsable-cite="usc/26/40A">section 40A(f)(3)</external-xref> is amended by inserting <quote>or 40B</quote> after <quote>40</quote>.</text></clause></subparagraph><subparagraph commented="no" id="id892FC454782C4C829AB4EDEA5EDF7B5C"><enum>(C)</enum><header>Regulations</header><text>Under rules prescribed by the Secretary of the Treasury (or the Secretary's delegate), the amount of the credit allowed under <external-xref legal-doc="usc" parsable-cite="usc/26/40B">section 40B</external-xref> of the Internal Revenue Code of 1986 (as added by this subsection) shall be properly reduced to take into account any benefit provided with respect to sustainable aviation fuel (as defined in such section 40B) by reason of the application of section 6426 or section 6427(e). </text></subparagraph></paragraph><paragraph id="H955DA15CA3D54E3281FCC0E88F86AFDB" commented="no" display-inline="no-display-inline"><enum>(4)</enum><header>Effective date</header><subparagraph commented="no" display-inline="no-display-inline" id="idB0B08F805BA846619BFFAF7BDE4CF3BB"><enum>(A)</enum><header>In general</header><text>The amendments made by this subsection shall apply to taxable years ending after the date of the enactment of this Act. </text></subparagraph><subparagraph display-inline="no-display-inline" commented="no" id="id132E31EB7E20475EA789BECCA5F3A615"><enum>(B)</enum><header>Special rule</header><text>The Secretary of the Treasury (or the Secretary's delegate) shall establish rules for the application of the amendments made by paragraph (3)(A) with respect to credits under section 6426 and payments under section 6427(e) for calendar quarters ending after the date of the enactment of this Act and before the last taxable year of a taxpayer which ends after such date of enactment.</text></subparagraph></paragraph></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>Phaseout</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 and 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="idF7A6618602A5416183212108B22CF08E"><enum>(1)</enum><header>Credit phase-out</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/30C">Section 30C</external-xref> is amended 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, the Secretary of Transportation, and the Administrator of the Environmental Protection Agency 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></paragraph><paragraph id="id378C56984FC0487E9EAF6B94D133685E"><enum>(2)</enum><header>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(b)</external-xref> is amended—</text><clause 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></clause><clause id="id02579D5E225C49A3ACCEE2813657777A"><enum>(ii)</enum><text>in paragraph (1), by striking <quote>$30,000</quote> and inserting <quote>$200,000</quote>.</text></clause></subparagraph><subparagraph id="id310AB602CB5340B38AFDAA85E032F9DC" commented="no" display-inline="no-display-inline"><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>(3)</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 paragraphs (1) and (2), 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="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>subject to clause (ii) of subparagraph (B), the requirements under clause (i) of such subparagraph, and</text></clause><clause commented="no" id="id99755686156845E787BF9FCB4D5E5A7E"><enum>(ii)</enum><text>with respect to the construction of such property, the requirements under section 501 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><clause commented="no" id="id5E3DEE0189894BC4A8AF10FDD54AF650"><enum>(i)</enum><header>In general</header><text>The requirements described in this clause 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></clause><clause commented="no" id="id4AE7D168F141483496E434741E82D9FB"><enum>(ii)</enum><header>Correction and penalty related to failure to satisfy wage requirements</header><text>In the case of any taxpayer which fails to satisfy the requirement under clause (i) with respect to any property, rules similar to the rules of section 45U(b)(3)(B)(ii) shall apply for purposes of this subparagraph.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="idA5F1DF0B183F4E648D13C97348679A7F"><enum>(B)</enum><header>Effective date</header><text>The amendments made by this paragraph shall apply to property placed in service after December 31, 2022.</text></subparagraph></paragraph></subsection><subsection id="id745D91174E1442A19FD69296A68DA813"><enum>(c)</enum><header>Electric vehicles</header><paragraph id="id32E34E097FDC4BE0A8C55571D75CBAE0"><enum>(1)</enum><header>2- 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 May 24, 2021. </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" commented="no" display-inline="no-display-inline"><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, unless, in accordance with applicable rules promulgated by the Secretary of Transportation, the vehicle is not assigned such a number.</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, or the inclusion of any information with respect to the credit under section 36C which is inconsistent with the report provided under section 36C(g).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="idF7A6887AE28B45DDB5D301656B679AB8" commented="no" display-inline="no-display-inline"><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>Phaseout</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 and 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="id2982F6F7B2BA49B6BADD10E95A921F42"><enum>(6)</enum><header>Credit increase</header><subparagraph id="id06655B7EE0DC4B0DA56FC567CE2B6E55"><enum>(A)</enum><header>In general</header><text>Subsection (b) of <external-xref legal-doc="usc" parsable-cite="usc/26/36C">section 36C</external-xref>, as redesignated and moved by the preceding paragraphs of this subsection, is amended—</text><clause id="id310F3C952B59447E823EDCCF75B8D314"><enum>(i)</enum><text>by adding at the end the following new paragraphs:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idD8647E3F78224F24AA43471C063D432F"><paragraph id="id5CD02E50B75D4A8B8470CB5C4D0A41A0" commented="no"><enum>(4)</enum><header>Vehicles produced by labor organization facility</header><text>In the case of a vehicle the final assembly of which is at a facility whose production workers are members of or represented by a labor organization, the amount determined under this paragraph is $2,500.</text></paragraph><paragraph id="idD0461B56FE704283AB84E017B093551F"><enum>(5)</enum><header>Assembly in United States</header><text>In the case of a vehicle—</text><subparagraph id="idD1FFA12096F24C639B1F1AE4DE99400B"><enum>(A)</enum><text>the final assembly of which is at a facility which is located in the United States, and</text></subparagraph><subparagraph id="id4D147C1FF91B481DA19664769AFE3D98"><enum>(B)</enum><text>which is acquired before January 1, 2026,</text></subparagraph><continuation-text continuation-text-level="paragraph">the amount determined under this paragraph is $2,500.</continuation-text></paragraph><after-quoted-block>,</after-quoted-block></quoted-block></clause><clause id="id2E8BA72E030947128CF8FFF573463B4D"><enum>(ii)</enum><text>by striking <quote>is $2,500.</quote> in paragraph (2) and inserting “is—</text><quoted-block style="OLC" display-inline="no-display-inline" id="idA2CFBFAEB6F34651A0241C0EB584FCF0"><clause id="id681498731BC943A2BE1AFAA0FCA31209"><enum>(i)</enum><text> $2,500, in the case of a vehicle sold before January 1, 2026, and</text></clause><clause id="id5326ABD13DFF4CD2BB8D442472513A04"><enum>(ii)</enum><text>$5,000, in the case of a vehicle sold after December 31, 2025.</text></clause><after-quoted-block> and</after-quoted-block></quoted-block></clause><clause id="idC68068F6078F4307BA9764F8C69E5B20"><enum>(iii)</enum><text>by striking <quote>paragraphs (2) and (3)</quote> in paragraph (1) and inserting <quote>paragraphs (2), (3), (4), and (5)</quote>.</text></clause></subparagraph><subparagraph id="id1FF28208189C49BCAB29303FE85357D2"><enum>(B)</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="id3312A5962BE64F16A3FDC06CE5DA2618"><enum>(7)</enum><header>Limitation based on place of assembly</header><subparagraph id="id9B89F71AAC604C4F9FD8ECFBC112BB42"><enum>(A)</enum><header>In general</header><text>Paragraph (1) of section 36C(c), as redesignated, moved, and amended by the preceding paragraphs of this subsection, is further amended—</text><clause id="id97C5878D3E6448ED9421C09F5C93F9BC"><enum>(i)</enum><text>by striking <quote>and</quote> at the end of subparagraph (F)(ii),</text></clause><clause id="id9AD8E1D4896744B7A3E2F0621E32CC9D"><enum>(ii)</enum><text>by striking the period at the end of subparagraph (G) and inserting <quote>, and</quote>, and</text></clause><clause id="id10C4944B6B8E46BFBAE47F76F37246B7"><enum>(iii)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id2DCDD3D0A7CB4CE4B5D0B9F6715A18BC"><subparagraph id="id14E4A1D180D14910A0F24045EE0DDB14"><enum>(H)</enum><text>in the case of a vehicle sold after December 31, 2025, the final assembly of which is at a facility which is located in the United States.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="id945186362C8746D697A46DCDC473436D"><enum>(B)</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="id1BB92C4F0EBE487B82E379CBA83D9247"><enum>(8)</enum><header>Limitation based on manufacturer's suggested retail price</header><subparagraph id="idD33A07CED0474F5F851F97ABD9489758"><enum>(A)</enum><header>In general</header><text>Paragraph (1) of section 36C(c), as redesignated, moved, and amended by the preceding paragraphs of this subsection, is further amended—</text><clause id="idA8FE41B3E6E746D4AD2BC6AB0E662DB1"><enum>(i)</enum><text>by striking <quote>and</quote> at the end of subparagraph (G),</text></clause><clause id="idB1720189E32C497FAE538B3D9E6FB616"><enum>(ii)</enum><text>by striking the period at the end of subparagraph (H) and inserting <quote>, and</quote>, and</text></clause><clause id="id9ED7318FBCF7434893A0E24FC54F84D4"><enum>(iii)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idA8A0AD77A48D419BAFFF8573151A936A"><subparagraph id="idFC05A36047684DA8AE0583A64ABA5B21"><enum>(I)</enum><text>the manufacturer's suggested retail price for which is not in excess of $80,000.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="id5CB3AF3B33714CD0B9395F3E21123083"><enum>(B)</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="id2217C700229149AEBD18A06C5E9EB3E8"><enum>(9)</enum><header>Reporting requirement</header><subparagraph id="idB247ABFB25F8438E9A97717FE84A37F7"><enum>(A)</enum><header>In general</header><text>Section 36C, as redesignated, moved, and amended by the preceding paragraphs of this subsection, is further amended by adding at the end the following new subsection:</text><quoted-block id="idBD8CFD8B90CD4655BBD8C59B04701670" display-inline="no-display-inline" style="OLC"><subsection commented="no" id="idAFB0348BDB814D3986176056954AA4E0"><enum>(g)</enum><header>Reporting requirement</header><text>The person who sells or leases any new qualified plug-in electric drive motor vehicle to the taxpayer shall furnish a report to the taxpayer and to the Secretary, at such time and in such manner as the Secretary shall provide, containing— </text><paragraph commented="no" id="idEC2653A5D5774F28A494110A22C9AA44"><enum>(1)</enum><text>the taxpayer’s name and taxpayer identification number,</text></paragraph><paragraph commented="no" id="id77D1325321AC479AA0FB7F98DA9BD665"><enum>(2)</enum><text>the vehicle identification number of the vehicle, unless, in accordance with applicable rules promulgated by the Secretary of Transportation, the vehicle is not assigned such a number,</text></paragraph><paragraph commented="no" id="id8594A8B5934C4AF78AAB9E24F1101077"><enum>(3)</enum><text>the battery capacity of the vehicle,</text></paragraph><paragraph commented="no" id="idBE6AA2D1FCCA45C08EB800DB97D64233"><enum>(4)</enum><text>verification that original use of the vehicle commences with the taxpayer, and</text></paragraph><paragraph id="idBD248DD1CD14453B8C945C022648B32C" commented="no" display-inline="no-display-inline"><enum>(5)</enum><text>the maximum credit under this section allowable to the taxpayer with respect to the vehicle.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph id="idCD456D58D6714E23867538FE09FE5F7A" commented="no" display-inline="no-display-inline"><enum>(B)</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="idF47C8380FDCB42B7A1177EA0BB49F4CD"><enum>(10)</enum><header>Limitation to non-business vehicles</header><subparagraph id="id7D15AB717D5D4109A16A3F937E42E072"><enum>(A)</enum><header>In general</header><text>Paragraph (1) of section 36C(c), as redesignated, moved, and amended by the preceding paragraphs of this subsection, is further amended—</text><clause id="idF0724DAD2C4E4300A90A3FBA27411CC0"><enum>(i)</enum><text>by striking <quote>and</quote> at the end of subparagraph (H),</text></clause><clause id="idC74DDF78D60141BBB2B5803AB777BDC9"><enum>(ii)</enum><text>by striking the period at the end of subparagraph (I) and inserting <quote>, and</quote>, and</text></clause><clause id="id6398DE98E18649FFAF6671EF82804EE0"><enum>(iii)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idD94698F812F146AD8D7D3A36269061F6"><subparagraph id="id0AF88D170DD14913A249321752D3C80C"><enum>(J)</enum><text>which is not of a character subject to the allowance for depreciation.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="idB22AEDB7440245DAB2BED4EEF307240C" commented="no" display-inline="no-display-inline"><enum>(B)</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="id400A7D7B686743C5A1106B5280E60B22"><enum>(11)</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 to 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 purchase 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><subparagraph id="id09c8e4e19e084f1bb87fcf15879d4a15"><enum>(C)</enum><header>Comparative price</header><text> For purposes of subparagraph (A), the Secretary and the Secretary of Transportation shall publish an annual list of prices of various types and classes of commercial vehicles described in subparagraph (B).</text></subparagraph></paragraph><paragraph commented="no" id="id49744D0B01BB4153A60B7F3600995776"><enum>(3)</enum><header>Exclusion</header><text>For purposes of paragraph (1)(A), the basis of any qualified commercial electric vehicle which is a qualified electric transportation option shall not include any cost relating to any component or feature which—</text><subparagraph id="id1BB8B19D3BA244699DE3345967A95A9E"><enum>(A)</enum><text>is not integral to the vehicle, or</text></subparagraph><subparagraph id="id12C2C0C6B8ED4F3889B59F160322782A"><enum>(B)</enum><text>does not contribute to improving the efficiency or range of the electric propulsion of the vehicle. </text></subparagraph></paragraph></subsection><subsection id="idBABE6FD936924E5BB91AB966B0D97DE0"><enum>(c)</enum><header>Qualified commercial electric vehicle</header><text>For purposes of this section—</text><paragraph id="idF9BDA219AB2849B597249CB47A4E9DDA"><enum>(1)</enum><header>In general</header><text>The term <term>qualified commercial electric vehicle</term> means—</text><subparagraph id="id127B764E15DA4B9280F8A25F0612B1CC"><enum>(A)</enum><text>any vehicle which—</text><clause id="id4869A49614A04E308EC61DF9D998AECD"><enum>(i)</enum><text>meets the requirements of subparagraphs (A), (B), (C), (D), and (G) of section 36C(c)(1),</text></clause><clause id="id8FA2D81BB474421DAF747EB3168FD7A8"><enum>(ii)</enum><text>is primarily propelled by an electric motor which draws electricity from a battery which—</text><subclause id="idB1E0062D99904424828950DAB1C3ED30"><enum>(I)</enum><text>has a capacity of not less than 10 kilowatt hours, and</text></subclause><subclause id="id145FD34C51FB48B19C5B35B235C12EF6"><enum>(II)</enum><text>is capable of being recharged from an external source of electricity, and</text></subclause></clause><clause id="id887D03B3E36E4345A541508D2B684FA9"><enum>(iii)</enum><text>is of a character subject to the allowance for depreciation, and</text></clause></subparagraph><subparagraph id="idD9A7298D7ADB4AF99703FD2EE0F3174A"><enum>(B)</enum><text>any qualified electric transportation option.</text></subparagraph></paragraph><paragraph id="idAA4A77622FCC4500830E9CD0EAA904A0"><enum>(2)</enum><header>Qualified electric transportation option</header><subparagraph id="id866D6BCDDE6F4DE6890E34DC513C2CDA" commented="no" display-inline="no-display-inline"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The term <term>qualified electric transportation option</term> means any vehicle used in any manner of transportation—</text><clause commented="no" id="id0B40F3E21DB549F7B97B7D44A228902B"><enum>(i)</enum><text>the original use of which commences with the taxpayer,</text></clause><clause commented="no" id="id41D5FE967C8B44A28C3B8DA25D650BBC"><enum>(ii)</enum><text>which is acquired for use or lease by the taxpayer and not for resale,</text></clause><clause id="id8BA30C967D9E4346A188452A87731840"><enum>(iii)</enum><text>which is capable of moving passengers, cargo, or property,</text></clause><clause id="id3FCB60CDEBD740678B5E31EA09063C65"><enum>(iv)</enum><text>which is powered by an integrated, on-board electric propulsion system which—</text><subclause id="id40FEC926A65D4710AB80E2CC8F9A1BD4"><enum>(I)</enum><text>is the primary source of propulsion,</text></subclause><subclause id="id277E865718234CBB83579170887F7585"><enum>(II)</enum><text>is capable of powering the vehicle (including any of its components and accessories) for not less than <fraction>2/3</fraction> of the maximum operating period between recharging or refueling of such vehicle, and</text></subclause><subclause id="idCFF7C583890743C29ADD60C9D8E16423"><enum>(III)</enum><text>in the case of a vehicle which derives any of its power from the on-board combustion of a fuel, uses a renewable fuel,</text></subclause></clause><clause id="id3F4B5C6FCEC3480886ADF1D5B7E2B1C7"><enum>(v)</enum><text>which was manufactured for sale in commercial quantities with a reasonable expectation of profit,</text></clause><clause id="id43AF0F9AE56E4315BD416F0388703E8A" commented="no" display-inline="no-display-inline"><enum>(vi)</enum><text display-inline="yes-display-inline">which is in compliance with any applicable safety or air quality standards, as determined by the Secretary, the Secretary of Transportation, the Secretary of Homeland Security, and the Administrator of the Environmental Protection Agency, and</text></clause><clause commented="no" id="idF4B5633013514E4EA35BBB318FA3AB88"><enum>(vii)</enum><text>which is of a character subject to the allowance for depreciation.</text></clause></subparagraph><subparagraph id="id77989664B00F48C58E4441332572612C"><enum>(B)</enum><header>On-board electric propulsion system</header><text>For purposes of this paragraph, the term <term>on-board electric propulsion system</term> means—</text><clause id="idA54A5187735F4827900A5BFFC10FA486"><enum>(i)</enum><text>1 or more on-board traction batteries which—</text><subclause id="idF5232DF7F17F4DB4BB3A703A267D1C3A"><enum>(I)</enum><text>are integrated or swappable, and </text></subclause><subclause id="idF52DDDB3EF824225B0681BC4429EB3B7"><enum>(II)</enum><text>have an aggregate capacity (as defined in subsection (d)(4)) of not less than 10 kilowatt hours, or</text></subclause></clause><clause id="id8B8F06D71F6E46A69681CB39969F9DD3"><enum>(ii)</enum><text>an on-board power source other than a battery with an electrical output capacity equivalent of not less than 10 kilowatt hours, as determined by the Secretary.</text></clause></subparagraph><subparagraph id="id2082334C027B46269C5D1FDD4E9213B8"><enum>(C)</enum><header>Renewable fuel</header><text>For purposes of this paragraph, the term <term>renewable fuel</term> means any fuel at least 85 percent of the volume of which consists of one or more of the following:</text><clause id="id7B804722E4CF46C184FE36C317D9AF9A"><enum>(i)</enum><text>Ethanol.</text></clause><clause id="idB5965E4C3E5442C5B2B14F76859218F4"><enum>(ii)</enum><text>Biodiesel (as defined in section 40A(d)(1)).</text></clause><clause id="idBC94D5551D6648279096C9D303048E98"><enum>(iii)</enum><text>Advanced biofuel (as defined in section 211(o)(1)(B) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(1)(B)</external-xref>)).</text></clause><clause id="id74C7F2F87FDB45A7B6765FA9178730C6"><enum>(iv)</enum><text>Renewable natural gas.</text></clause><clause id="id12258CB1FBD74B9390FDEA2232AE3FA5"><enum>(v)</enum><text>Hydrogen. </text></clause></subparagraph></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 subsection (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 and 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><subsection commented="no" id="id439D40F10D114F5398A498A09E31D3C3"><enum>(f)</enum><header>Reporting requirement</header><text>The person who sells or leases any qualified commercial electric vehicle to the taxpayer shall furnish a report to the taxpayer and to the Secretary, at such time and in such manner as the Secretary shall provide, containing—</text><paragraph commented="no" id="idC039CBBFB9D947B399587021ABCD1151"><enum>(1)</enum><text>the taxpayer’s name and taxpayer identification number,</text></paragraph><paragraph commented="no" id="idEF0D3DBFD2D34D6BB343F9BF4CC2454B"><enum>(2)</enum><text>the vehicle identification number of the vehicle, unless, in accordance with applicable rules promulgated by the Secretary of Transportation, the vehicle is not assigned such a number,</text></paragraph><paragraph commented="no" id="idC2394B597E8744618B368B48C71232CC"><enum>(3)</enum><text>the battery capacity of the vehicle,</text></paragraph><paragraph commented="no" id="id03B72E1DD5884EC0B1AFB6C95A6A7B63"><enum>(4)</enum><text>verification that original use of the vehicle commences with the taxpayer, and</text></paragraph><paragraph id="id828542C36B9F4FF2AF443BBBBC1E4FC1"><enum>(5)</enum><text>the maximum credit under this section allowable to the taxpayer with respect to the vehicle.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph id="id9A911A9BCB49467982DC5FBF2A03BF66"><enum>(B)</enum><header>Mathematical or clerical error</header><text>Section 6213(g)(2), as amended by paragraph (4), is further amended—</text><clause id="id04E113507A3D412981C2844B998E2561"><enum>(i)</enum><text>in subparagraph (Q), by striking <quote>and</quote> at the end,</text></clause><clause id="id15F53C7235A34008A5270223889A96F3"><enum>(ii)</enum><text>in subparagraph (R), by striking the period at the end and inserting <quote>, and</quote>, and</text></clause><clause id="idED89F93F2B8E4A40B6E7FF84B348E156"><enum>(iii)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id7ABE969C827B4BF2989A5832EC640CC1"><subparagraph id="idD3A03C41882346EA8E07AA69B9D33004"><enum>(S)</enum><text>the inclusion of any information for purposes of the credit under section 45W which is inconsistent with the report provided under section 45W(f).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="id4CB9A5F726B141948AD6BEFA29211078"><enum>(C)</enum><header>Conforming amendments</header><clause id="id89525C6F681B45C8BC4AB591C9F7F5CC"><enum>(i)</enum><text>Section 38(b), as amended by section 201, is further 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. Qualified commercial electric vehicle credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="id92508895C2744523945E21EED11E4985" commented="no" display-inline="no-display-inline"><enum>(D)</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="id9A0D3C3EFA7B4BF68EEF94117CC96462" commented="no" display-inline="no-display-inline"><enum>(12)</enum><header display-inline="yes-display-inline">Certification by Secretary</header><text display-inline="yes-display-inline">No credit shall be allowed under section 36C or <external-xref legal-doc="usc" parsable-cite="usc/26/45W">section 45W</external-xref> of the Internal Revenue Code of 1986 for any vehicle acquired after December 31, 2021, unless the Secretary of the Treasury certifies that no credit under either such section will be allowed with respect to any new qualified plug-in electric drive motor vehicle, any qualified 2- or 3-wheeled plug-in electric vehicle, or any qualified commercial electric vehicle the final assembly of which is in the People's Republic of China. </text></paragraph></subsection></section><section id="id6D549F387AB84609813BF1D5E09213D9"><enum>203.</enum><header>Credit for production of clean hydrogen</header><subsection id="idD72FEB00A98A41C1A96E432E052BDCD9"><enum>(a)</enum><header>In general</header><text>Subpart D of part IV of subchapter A of chapter 1, as amended by sections 101, 201, and 202, is amended by adding at the end the following new section:</text><quoted-block display-inline="no-display-inline" id="idDBE50CF98F9746F4810E096DBDFD4829" style="OLC"><section id="idEE3EC2FFE79144EDA8D4EF4FF8459A0E"><enum>45X.</enum><header>Credit for production of clean hydrogen</header><subsection id="idDA2CC53AC7CC47BCB9B4C40132C69CB7"><enum>(a)</enum><header>Amount of credit</header><text>For purposes of section 38, the clean hydrogen production credit for any taxable year is an amount equal to the product of—</text><paragraph id="id09B55D47C146465EAD59177C9E7ACA10"><enum>(1)</enum><text>the applicable amount, multiplied by</text></paragraph><paragraph id="id50CAEF593E3A485FA4EC3BE935423475"><enum>(2)</enum><text>the kilograms of qualified clean hydrogen—</text><subparagraph id="idFEB5E812A7D0457986A50A1AF0C41C0F"><enum>(A)</enum><text>produced by the taxpayer at a qualified clean hydrogen production facility during the 10-year period beginning on the date the facility was placed in service, and</text></subparagraph><subparagraph id="idBF7DED092966480D8ED6BC8E84FF77DF"><enum>(B)</enum><text>sold by the taxpayer to an unrelated person, or used by the taxpayer, during the taxable year.</text></subparagraph></paragraph></subsection><subsection id="idC773298FB3BA41B4990CFA3E0624734C"><enum>(b)</enum><header>Applicable amount</header><paragraph id="idB3217C64B6684D068ADDE325D80E9CE7"><enum>(1)</enum><header>In general</header><text>For purposes of subsection (a)(1), the applicable amount shall be an amount equal to the applicable percentage of $3.00. If any amount as determined under the preceding sentence is not a multiple of 0.1 cent, such amount shall be rounded to the nearest multiple of 0.1 cent.</text></paragraph><paragraph id="id79C912449F9A47EF8C38BACD2CE49A70"><enum>(2)</enum><header>Applicable percentage</header><text>For purposes of paragraph (1), the term <term>applicable percentage</term> means—</text><subparagraph id="id446848F448334CF393549B32597C0F50"><enum>(A)</enum><text>in the case of any qualified clean hydrogen which is produced through a process that, as compared to hydrogen produced by steam-methane reforming, achieves a percentage reduction in lifecycle greenhouse gas emissions which is less than 75 percent, 20 percent,</text></subparagraph><subparagraph id="id5BD45CFD60D44081971AA9315B91A709"><enum>(B)</enum><text>in the case of any qualified clean hydrogen which is produced through a process that, as compared to hydrogen produced by steam-methane reforming, achieves a percentage reduction in lifecycle greenhouse gas emissions which is not less than 75 percent and less than 85 percent, 25 percent,</text></subparagraph><subparagraph id="id2CDCF4991AF6451F9D44C3C8F1750D58"><enum>(C)</enum><text>in the case of any qualified clean hydrogen which is produced through a process that, as compared to hydrogen produced by steam-methane reforming, achieves a percentage reduction in lifecycle greenhouse gas emissions which is not less than 85 percent and less than 95 percent, 34 percent, and</text></subparagraph><subparagraph id="id62919792AB8C4D4EAA62BACAB0E3DC32"><enum>(D)</enum><text>in the case of any qualified clean hydrogen which is produced through a process that, as compared to hydrogen produced by steam-methane reforming, achieves a percentage reduction in lifecycle greenhouse gas emissions which is not less than 95 percent, 100 percent.</text></subparagraph></paragraph><paragraph id="idF4946107680C4CECB21B3B45E16CABE0"><enum>(3)</enum><header>Inflation adjustment</header><text>The $3.00 amount in paragraph (1) shall be adjusted by multiplying such amount by the inflation adjustment factor (as determined under section 45(e)(2), determined by substituting <quote>2020</quote> for <quote>1992</quote> in subparagraph (B) thereof) for the calendar year in which the sale or use of the qualified clean hydrogen 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></subsection><subsection id="id936ACD96C50E4C438886B631E0760CFF"><enum>(c)</enum><header>Credit reduced for grants, tax-exempt bonds, subsidized energy financing, and other credits</header><text>The amount of the credit determined under subsection (a) with respect to any qualified clean hydrogen production facility for any taxable year shall be reduced in a manner similar to the reduction applied under section 45(b)(3).</text></subsection><subsection id="id6D850D5DD08941BC8243972EB96E5E85"><enum>(d)</enum><header>Definitions</header><text>For purposes of this section—</text><paragraph id="idA0DF74EF7F914A0784E35F6534655628"><enum>(1)</enum><header>Lifecycle greenhouse gas emissions</header><text>For purposes of this section, the term <term>lifecycle greenhouse gas emissions</term> has the same meaning given such term under subparagraph (H) of section 211(o)(1) of the Clean Air Act (<external-xref legal-doc="usc" parsable-cite="usc/42/7545">42 U.S.C. 7545(o)(1)</external-xref>), as in effect on the date of enactment of this section.</text></paragraph><paragraph id="idFDD97498A72C4D68A5A9B8AB09B77A5B"><enum>(2)</enum><header>Qualified clean hydrogen</header><subparagraph id="id03AEBE71D3024A43950E3FDF550BC50D"><enum>(A)</enum><header>In general</header><text>The term <term>qualified clean hydrogen</term> means hydrogen which is produced through a process that, as compared to hydrogen produced by steam-methane reforming of non-renewable natural gas, achieves a percentage reduction in lifecycle greenhouse gas emissions which is not less than 50 percent.</text></subparagraph><subparagraph id="id118F7F0C6C104B6B9F8263E7A4D3BE31"><enum>(B)</enum><header>Exclusion</header><text>The term <term>qualified clean hydrogen</term> shall not include any hydrogen for which a credit is allowed for the taxable year—</text><clause id="id34DA7362106542B1AD32DFFC71E3B449"><enum>(i)</enum><text>under section 38 which is properly allocable to any credit determined under this part (other than this section), or</text></clause><clause id="id425DE747642040A489D4AC36F50A3D68"><enum>(ii)</enum><text>under subchapter B of chapter 65 of subtitle F.</text></clause></subparagraph></paragraph><paragraph id="id8D7714C1C0BD46EC9AFBD55189488FD4"><enum>(3)</enum><header>Qualified clean hydrogen production facility</header><subparagraph id="id27D443ABDD7F453C83CBF439ADC2F89D"><enum>(A)</enum><header>In general</header><text>The term <term>qualified clean hydrogen production facility</term> means—</text><clause id="id9B4EDCF8C4CA4F2692E86B18D16B1CEC"><enum>(i)</enum><text>a facility owned by the taxpayer—</text><subclause id="idFB571E3D638C47B9B699A2C4BD6DD35C"><enum>(I)</enum><text>which produces qualified clean hydrogen which, with respect to any taxable year, is sold by the taxpayer to an unrelated person or used by the taxpayer, and</text></subclause><subclause id="idC1DEEE20FC104E59BEF855EEEAE43C33"><enum>(II)</enum><text>which—</text><item id="id6F46B25F099144AF831766815A24B283"><enum>(aa)</enum><text>subject to clause (ii) of subparagraph (B), satisfies the requirements under clause (i) of such subparagraph, and</text></item><item id="id6B867A0818D94B289C65F9406B920C44"><enum>(bb)</enum><text>with respect to the construction of such facility, satisfies the requirements under section 501 of the <short-title>Clean Energy for America Act</short-title>, and</text></item></subclause></clause><clause id="idA1DF4B77524D4B0FBAD5BBDD238FF99F"><enum>(ii)</enum><text>in connection with any facility described in clause (i), any property used to convert feedstock to hydrogen, including any equipment or supporting facility which—</text><subclause id="id9E232B0760114B8888E6AE9DDFC76C2F"><enum>(I)</enum><text>accepts or receives feedstock,</text></subclause><subclause id="idE4F6D0CFAD6E46D3B49FC3177FC29D63"><enum>(II)</enum><text>conditions or stores feedstock or hydrogen, or</text></subclause><subclause id="id62ABAFD4BC60489F821F86D31990647D"><enum>(III)</enum><text>distributes or redistributes hydrogen. </text></subclause></clause></subparagraph><subparagraph commented="no" id="id587F81A62D644420AF2AD9D2D50B5966"><enum>(B)</enum><header>Wage requirements</header><clause commented="no" id="idBEDA492A91BB483B8F79B9DCA8F63893"><enum>(i)</enum><header>In general</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><subclause commented="no" id="id6BF358A1A92F49928679BB502383F625"><enum>(I)</enum><text>the construction of such facility, or</text></subclause><subclause commented="no" id="id3D0EC9A89B194540811F2A3F2BFA9ED3"><enum>(II)</enum><text>for any year described in subsection (a)(2)(A) for which the credit under this section is claimed, 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><clause id="idBE418D6286BE4FB398829B7C50454E0E"><enum>(ii)</enum><header>Failure to satisfy wage requirements; correction and penalty</header><text>In the case of any taxpayer which fails to satisfy the requirement under clause (i) with respect to the construction of any facility or the alteration or repair of such facility in any year during the period described in clause (i)(II), rules similar to the rules of clauses (i) and (ii) of section 45U(b)(3)(B) shall apply for purposes of this subparagraph. </text></clause></subparagraph></paragraph><paragraph id="idD412D8EA6AEB4E4A9BACF93F49CC2CF0"><enum>(4)</enum><header>Steam-methane reforming</header><text>The term <term>steam-methane reforming</term> means a hydrogen production process in which high-temperature steam is used to produce hydrogen from natural gas, without carbon capture and sequestration.</text></paragraph></subsection><subsection id="id8D578346F05541B7AA7DF064306F1039"><enum>(e)</enum><header>Special rules</header><paragraph id="id09DE7F58D4FB41FA98A3D8C557002F59"><enum>(1)</enum><header>In general</header><text>Rules similar to the rules of paragraphs (3) and (4) of section 45(e) shall apply for purposes of this section.</text></paragraph><paragraph id="idF6642E5726C44083959659154EBEC686"><enum>(2)</enum><header>Production in the United States</header><text>No credit shall be allowed under this section with respect to any qualified clean hydrogen which is produced outside of the United States (as defined in section 638(1) or any possession of the United States (as defined in section 638(2)).</text></paragraph></subsection><subsection commented="no" id="id02F7710429B7428290DDB425E8DCF8D9"><enum>(f)</enum><header>Credit phase-Out</header><paragraph commented="no" id="id64B9AD59352D4E68BA86FC8AFD30A4EA"><enum>(1)</enum><header>In general</header><text>If the Secretary and the Administrator of the Environmental Protection Agency determine 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 hydrogen production credit under this section shall be determined by substituting the applicable amount (as determined under paragraph (2)(A)) for the dollar amount in subsection (b)(1). </text></paragraph><paragraph commented="no" id="id7D15DA5BC9D244EEB4C5CAAE533BC27B"><enum>(2)</enum><header>Applicable dollar amount</header><subparagraph commented="no" id="idE2A0FA4AB90F4C9B8F45D1DC4A1BC319"><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="id4BE4B019010A42299061ACB00E74BC6C"><enum>(i)</enum><text>the dollar amount in paragraphs (1) of subsection (b) (as adjusted by paragraph (3) of such subsection), multiplied by</text></clause><clause commented="no" id="idE19CD4FF65494347A923E1564461DBFE"><enum>(ii)</enum><text>the phase-out percentage under subparagraph (B).</text></clause></subparagraph><subparagraph id="id25FC7DA88DB3466E8AEA6434F4252532"><enum>(B)</enum><header>Phase-out percentage</header><text>The phase-out percentage under this subparagraph is equal to—</text><clause id="idC300A3641D23471C89DAC591389C4C1F"><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="idF1D5EEB369BC4C80A0849AAB476F5053"><enum>(ii)</enum><text>for any taxable year beginning in the second calendar year following such determination year, 75 percent,</text></clause><clause id="idF4AA19DBD3084CB181E9BC8986BA404D"><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="id8A6692F81B9749D9990722A785744855"><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="id03F7CF1AFFC14BBFB33CB5727EE1B1BF"><enum>(g)</enum><header>Guidance</header><text>Not later than 1 year after the date of enactment of this section, the Secretary, the Secretary of Energy, and Administrator of the Environmental Protection Agency shall publish guidance prescribing methods for determining the credit based on lifecycle greenhouse gas emissions.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id1941354AD2EF4C1898BDF03E25A2C0AB"><enum>(b)</enum><header>Conforming amendments</header><paragraph id="idD67F466782934521A568029C2019016B"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/38">Section 38(b)</external-xref> of the Internal Revenue Code of 1986, as amended by section 101, 201, and 202, is amended—</text><subparagraph id="id1EBAEAC506904672954FEE10DB805B23"><enum>(A)</enum><text>in paragraph (35), by striking <quote>plus</quote> at the end,</text></subparagraph><subparagraph id="id65933982B32645829497B242F2DE24AA"><enum>(B)</enum><text>in paragraph (36), by striking the period at the end and inserting <quote>, plus</quote>, and</text></subparagraph><subparagraph id="id5768633AC3004D3A9B4583963EB66F12"><enum>(C)</enum><text>by adding at the end the following new paragraph:</text><quoted-block display-inline="no-display-inline" id="id781FF58B9BAE4D929F19E131475D6788" style="OLC"><paragraph id="id67B3C6696CCB4EB4A6A5FA4EB023361F"><enum>(37)</enum><text>the clean hydrogen production credit determined under section 45X(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="id8B3FD9D926074F308DA0C1244346C56E"><enum>(2)</enum><text>The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by sections 101, 201, and 202, is amended by adding at the end the following new item:</text><quoted-block display-inline="no-display-inline" id="idD07B16C9EF3B4A85BFE9EB914A9E9DB7" style="OLC"><toc><toc-entry bold="off" level="section">Sec. 45X. Clean hydrogen production credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="idD7A8190525F14F4685CC4EBA560614A9"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to hydrogen used or sold after December 31, 2020. </text></subsection></section><section id="id48A72A70C8024FD9BDD67F45A9667029"><enum>204.</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>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 applicable national program requirements under—</text><subclause id="id15FB0F61A20B4CFFB0B5094F79F45F11"><enum>(I)</enum><text>the Energy Star Residential New Construction 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>in the case of a multifamily dwelling unit, subject to clause (ii) of subparagraph (B), which satisfies the requirements under clause (i) of such subparagraph.</text></clause></subparagraph><subparagraph commented="no" id="idE4255C1639184016ABB3406517255BF9"><enum>(B)</enum><header>Wage requirements</header><clause commented="no" id="idF84A30A2C85B490581352EBB782B805E"><enum>(i)</enum><header>In general</header><text>The requirements described in this clause 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></clause><clause id="id02A04A679ED547A1BFC7512706BAA2F8"><enum>(ii)</enum><header>Correction and penalty related to failure to satisfy wage requirements</header><text>In the case of any taxpayer which fails to satisfy the requirement under clause (i) with respect to any dwelling unit, rules similar to the rules of section 45U(b)(3)(B)(ii) shall apply for purposes of this subparagraph.</text></clause></subparagraph><subparagraph commented="no" id="idDBAD4097181B41D9A6EAC4703FCEA370"><enum>(C)</enum><header>Denial of double benefit</header><text>The term <term>qualified residence</term> does not include any dwelling unit for which a deduction determined under section 179D is allowed for the taxable year in which the dwelling unit is acquired as provided in subsection (a)(2).</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 and the Secretary of Energy, and</text></paragraph><paragraph id="id19460BA97AC445ADBDB07835713DAB04"><enum>(2)</enum><text>in accordance with—</text><subparagraph id="idD5985C812BD14557AF1984E536F57279" commented="no" display-inline="no-display-inline"><enum>(A)</enum><text display-inline="yes-display-inline">any applicable rules under the national program requirements of the Energy Star Residential New Construction 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 and 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, each of the dollar amounts in paragraph (1)(B) (after application of subsection (c)(2)) and subsections (a)(2), (c)(2)(A), and (c)(2)(B)(i)(I) 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 as provided in subparagraph (B), meets or exceeds the requirements of—</text><clause commented="no" id="idA8C8149364FD433FBEA6DD6B8FC8FCE2"><enum>(i)</enum><text>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, or</text></clause><clause id="idb323aa34e9e34123bf7e9d6c8f37806a"><enum>(ii)</enum><text>if no standard established by the Consortium for Energy Efficiency applies to such property, an equivalent standard as established by the Secretary and the Administrator of the Environmental Protection Agency,</text></clause></subparagraph><subparagraph commented="no" id="idC533BE3A263F493E8C0668181DB063F2"><enum>(B)</enum><text>in the case of a building envelope improvement—</text><clause commented="no" id="id1A53F3F892AB40D889443A59D1AD443B"><enum>(i)</enum><text>except as provided in clause (ii) or (iii), meets or exceeds the latest applicable requirements of the Energy Star program (or any successor program, as determined by the Secretary), as in effect on January 1 of the year in which the property is placed in service,</text></clause><clause commented="no" id="id3318EC8D2D7E415F8E002E145B7E006D"><enum>(ii)</enum><text>in the case of a window treatment, meets or exceeds the applicable certification requirements for such product under the Attachments Energy Rating Council certification program, or</text></clause><clause commented="no" id="id51B5B2FDC6DA4BF9BD94AA2F123DDAD7"><enum>(iii)</enum><text>in the case of insulation described in subsection (d)(2)(A), 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,</text></clause></subparagraph><subparagraph id="idAB87DD4E8CEE4B62BD05542DE0CDB125"><enum>(C)</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>(D)</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>(E)</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 (C) through (E) 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 be applied without regard to the applicable qualified property amount for such property.</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 as of January 1 of the calendar year in which 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 applicable requirements under paragraph (1), subsection (b)(1) shall be applied without regard to <quote>the lesser of</quote> and without regard to subparagraph (B).</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, including air barrier insulation, which 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></subparagraph><subparagraph id="idD3094C5D2B374711A2BF9077DB2757A1"><enum>(B)</enum><text>exterior doors and windows (including skylights).</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" commented="no" display-inline="no-display-inline"><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>Maximum amount of deduction</header><paragraph id="idE6BFBA98E0AD4BC8B6FEC4D7C148A757"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D</external-xref> is amended—</text><subparagraph id="id6B5518BAE65344DE9820CAA2E6010EEE"><enum>(A)</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 the 3 years immediately preceding such taxable year.</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>, and</after-quoted-block></quoted-block></subparagraph><subparagraph id="idC603E3EFBB34430B938B0A4B47A47233"><enum>(B)</enum><text>in subsection (d)(1)(A)—</text><clause id="id27A86444659C4F2EB236E53259DE523A"><enum>(i)</enum><text>by striking <quote>subsection (b)</quote> and inserting <quote>subsection (b)(2)</quote>, and</text></clause><clause id="idDF1F4C85C3B348389EB4B355E103173D"><enum>(ii)</enum><text>by striking <quote>$1.80</quote> and inserting <quote>$2.50</quote>.</text></clause></subparagraph></paragraph><paragraph commented="no" id="id182B9CFE805E4F09BA890BFBA3A37FBB"><enum>(2)</enum><header>Inflation adjustment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D(g)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id58F9C4D1CA0E4C2882C2B6C3C5207440"><subsection commented="no" id="idC161A0AD16F24B73B2046D3CF3D72B85"><enum>(g)</enum><header>Inflation adjustment</header><paragraph id="id1f19b79158f342759b7685b8bb4fd035"><enum>(1)</enum><header>In general</header><text>In the case of a taxable year beginning after 2022, each dollar amount in subsection (b)(2) (and the $2.50 amount in subsection (d)(1)(A)) shall be increased by an amount equal to—</text><subparagraph id="ida40dc3efec7441e584613fd8e2b59b03"><enum>(A)</enum><text>such dollar amount, multiplied by</text></subparagraph><subparagraph id="id41941ab5a4104f35b0c4ab0e02444eb9"><enum>(B)</enum><text>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting <quote>calendar year 2021</quote> for <quote>calendar year 2016</quote> in subparagraph (A)(ii) thereof.</text></subparagraph><continuation-text continuation-text-level="paragraph">Any increase determined under the preceding sentence which is not a multiple of 10 cents shall be rounded to the nearest multiple of 10 cents.</continuation-text></paragraph><paragraph id="idA6BD6BB1CF6644DA82959F8C790FAD19"><enum>(2)</enum><header>Partial allowance</header><text>In the case of a taxable year beginning after 2020, the $.60 amount in (d)(1)(A) shall be increased by an amount equal to—</text><subparagraph id="idCF9C97F392E64297A78DDC818C2DB6E0"><enum>(A)</enum><text>such dollar amount, multiplied by</text></subparagraph><subparagraph id="idB006C884ABF94D82A1364F988B6FE89A"><enum>(B)</enum><text>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting <quote>calendar year 2019</quote> for <quote>calendar year 2016</quote> in subparagraph (A)(ii) thereof.</text></subparagraph><continuation-text continuation-text-level="paragraph">Any increase determined under the preceding sentence which is not a multiple of 1 cent shall be rounded to the nearest cent.</continuation-text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="id81218C49A22E4B2BAD65349A5C926133"><enum>(b)</enum><header>Definition of energy efficient building property</header><paragraph id="idF833FD3CBEF54DA48ED2C11C1311CD89"><enum>(1)</enum><header>Energy reduction standard</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D(c)(1)(D)</external-xref> is amended by striking <quote>50 percent</quote> and inserting <quote>25 percent</quote>.</text></paragraph><paragraph id="id56CC84226C684AB7B566A736917CF2C5"><enum>(2)</enum><header>Inclusion of multifamily buildings</header><subparagraph id="idF3BBF3A744244ACB875102E70373EDB0"><enum>(A)</enum><header>In general</header><text>Subparagraph (B) of <external-xref legal-doc="usc" parsable-cite="usc/26/179D">section 179D(c)(1)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id6C36DEF7F3B944F7B6AA0470681B041C"><subparagraph id="idB098C496448E452289E63121EF584469"><enum>(B)</enum><text>which is installed on or in any commercial building or multifamily building which is located within the United States,</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph id="id89F0488161C7486CBDB972D5CBD89414"><enum>(B)</enum><header>Application of standards</header><text>Subparagraph (D) of <external-xref legal-doc="usc" parsable-cite="usc/26/179D">section 179D(c)</external-xref> is amended—</text><clause id="id2CD893ACB5CD4F3A8BBFE0DA592EE024"><enum>(i)</enum><text>by striking <quote>meets the minimum requirements of Reference Standard 90.1 using methods of calculation under subsection (d)(2)</quote> and inserting </text><quoted-block style="OLC" display-inline="yes-display-inline" id="id9B19C85F0D8C49779FBDADA75E0C44C3"><text>meets—</text><clause id="id7F993B389EA94C5B86DB4DC3AAAB3B6A"><enum>(i)</enum><text>in the case of any property within the scope of Reference Standard 90.1, the minimum requirements of Reference Standard 90.1 using methods of calculation under subsection (d)(2), and</text></clause><clause id="id277789CBB79C4292B651F43CC1B7EDCF"><enum>(ii)</enum><text>in the case of any other property, the minimum requirements of a comparable standard to Reference Standard 90.1 which shall be determined by the Secretary and the Secretary of Energy using methods of calculation under subsection (d)(2).</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="idB6F9E05C9D6841BCBD687431BA811C99"><enum>(C)</enum><header>Definitions</header><text>Subsection (c) of <external-xref legal-doc="usc" parsable-cite="usc/26/179D">section 179D</external-xref> is amended by adding at the end the following new paragraphs:</text><quoted-block id="idF176D365ABCE45278A231B5901CC0AAD" display-inline="no-display-inline" style="OLC"><paragraph id="id4453A5B9A3524B95B45F3CE7AB7DB06B"><enum>(3)</enum><header>Commercial building</header><text>The term <term>commercial building</term> means a building with a primary use or purpose other than as residential housing.</text></paragraph><paragraph id="idF89115E1900B4A2AA53F0FFAA5A4B787" commented="no" display-inline="no-display-inline"><enum>(4)</enum><header>Multifamily building</header><text>The term <term>multifamily building</term> means a structure of 5 or more dwelling units with a primary use as residential housing, and includes such buildings owned and operated as a condominium, cooperative, or other common interest community.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="idB18A88BD53A4441B98B5F96955A1F752" commented="no"><enum>(3)</enum><header>Wage and workforce requirements</header><subparagraph id="id9A67FA0070A14A3494631DC945A375B6" commented="no"><enum>(A)</enum><header>In general</header><text>Section 179D(c)(1), as amended by paragraph (2), is amended—</text><clause id="id386E7A864116403986E2A7240A655E3F" commented="no"><enum>(i)</enum><text>in subparagraph (C)(iii), by striking <quote>and</quote> at the end,</text></clause><clause id="idAFB7B743983E41ABB3149BA78C42505A" commented="no"><enum>(ii)</enum><text>in subparagraph (D), by striking the period at the end and inserting <quote>, and</quote>, and</text></clause><clause id="id6DE1BAC5D9384C0782944D246A19DB75" commented="no"><enum>(iii)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idFB62FEAE54724E1681073F065159E635"><subparagraph id="id55B573EF38D94CC0B9C75A071395F8CB" commented="no"><enum>(E)</enum><text>which satisfies the requirements—</text><clause id="idD2853843F94E4907919963F8CFF7D410" commented="no"><enum>(i)</enum><text>subject to subparagraph (B) of subsection (d)(7), under subparagraph (A) of such subsection, and</text></clause><clause id="idFA9A9A558A6E468DB8E3793448F138A5" commented="no"><enum>(ii)</enum><text>with respect to the construction of such property, the requirements under section 501 of the <short-title>Clean Energy for America Act</short-title>.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="id416530B9BD0B4653B233EE5E30F5854F" commented="no"><enum>(B)</enum><header>Requirements</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/179">Section 179(d)</external-xref> is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id15D7F0C5F57644F6A777EF24E2623BDF"><paragraph id="idD69E4EC4533045F988BE8A5044148F5F" commented="no" display-inline="no-display-inline"><enum>(7)</enum><header display-inline="yes-display-inline">Wage requirements</header><subparagraph commented="no" display-inline="no-display-inline" id="idF4CF9645991D4D008C2E591D8F3253B8"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The requirements described in this subparagraph with respect to any property are that the taxpayer shall ensure that any laborers and mechanics employed by 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></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id91AF2DEF9C7F48AFA20D4D4105D1A35D"><enum>(B)</enum><header>Correction and penalty related to failure to satisfy wage requirements</header><text display-inline="yes-display-inline">In the case of any taxpayer which fails to satisfy the requirement under subparagraph (A) with respect to any property, rules similar to the rules of section 45U(b)(3)(B)(ii) shall apply for purposes of this paragraph.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="id9A4E34548A7E41B4A7571D7541A4A7FA" commented="no"><enum>(4)</enum><header>Election to use different standards for retrofits</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D</external-xref> is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id72C0E4B97F344AC486BE1CB7F652ABEB"><subsection id="HDAC7A7467792413692460BF2CEACB34C"><enum>(h)</enum><header>Alternative method for energy efficient retrofit building property</header><paragraph id="H04F98BB3C8E84455AFBBABD3B43C5DAA"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of a taxpayer which elects (at such time and in such manner as the Secretary may provide) the application of this subsection with respect to any qualified building, the amount of the deduction allowed under subsection (a)—</text><subparagraph id="idD84E0D5AB31B42E1A59A9F6A93AE5396"><enum>(A)</enum><text display-inline="yes-display-inline">shall be determined—</text><clause id="id289A0B6EB5074A6CB8B745AA6D702C0D"><enum>(i)</enum><text display-inline="yes-display-inline">by substituting <quote>energy usage intensity</quote> for <quote>total annual energy and power costs</quote> in subsection (b)(2), and</text></clause><clause id="idCAF2D3D4C45D4B86BC1F3BB7414FA20A"><enum>(ii)</enum><text display-inline="yes-display-inline">without regard to subsection (c)(1)(D), and</text></clause></subparagraph><subparagraph id="id0758D57DA4D34659BC1112CD5C2DE087"><enum>(B)</enum><text display-inline="yes-display-inline">shall be allowed for the taxable year which includes the date of the qualifying final certification with respect to the qualified retrofit plan of such building in lieu of the taxable year in which the property is placed in service.</text></subparagraph></paragraph><paragraph id="id66723DEFFA174BCE90A827388071E560"><enum>(2)</enum><header>Qualified building</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <term>qualified building</term> means a commercial building or multifamily building—</text><subparagraph id="id8BC5773788144C6EA5812219187F40A2"><enum>(A)</enum><text>which is located in the United States, </text></subparagraph><subparagraph id="idB29924B70EB246A4951F8E6F934F5080"><enum>(B)</enum><text>with respect to which a qualified retrofit plan has been established, and</text></subparagraph><subparagraph id="id4A49FF619381468198B028338C1952C1"><enum>(C)</enum><text>which was originally placed in service not less than 5 years before the establishment of the qualified retrofit plan with respect to such building.</text></subparagraph></paragraph><paragraph id="HAAD3A2AA42F64440AB1085C60A95F59D"><enum>(3)</enum><header>Qualified retrofit plan</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <term>qualified retrofit plan</term> means a written plan prepared by a qualified professional which specifies specific modifications to a building which, in the aggregate, are expected to reduce such building’s energy usage intensity by 25 percent or more in comparison to the baseline energy usage intensity of such building. Such plan shall provide for a qualified professional to—</text><subparagraph id="H56C2F500DF4C462DB5C1DBB88D262664"><enum>(A)</enum><text>as of any date during the 1-year period ending on the date of the first certification described in subparagraph (B), certify the energy usage intensity of such building as of such date,</text></subparagraph><subparagraph id="HA69CA5947F02454396139D75A0C2D2CA"><enum>(B)</enum><text>certify the status of property installed pursuant to such plan as meeting the requirements of subparagraphs (B) and (C) of subsection (c)(1), and</text></subparagraph><subparagraph id="H01844D7EC10B42CFAA1F8FBB30DA26E9"><enum>(C)</enum><text>as of any date following completion of the plan, certify—</text><clause id="H907242013201416987F26E6ACD5C85BD"><enum>(i)</enum><text>the energy usage intensity of such building as of such date, and</text></clause><clause id="H360588F302694387BCEEF951BF81CC91"><enum>(ii)</enum><text>the portfolio manager score of such building as of such date.</text></clause></subparagraph></paragraph><paragraph id="H8C6A744150894DE4B971DD0A7F460967"><enum>(4)</enum><header>Qualifying final certification</header><text>For purposes of this subsection, the term <term>qualifying final certification</term> means, with respect to any qualified retrofit plan, the certification described in paragraph (3)(C) if—</text><subparagraph id="H090B516A48924C89977D5A24AAD45DEA"><enum>(A)</enum><text>the energy usage intensity certified in such certification is not more than 75 percent of the baseline energy usage intensity of the building, and</text></subparagraph><subparagraph id="HA5694C6F3AB54FDABA4290A92A3529F0"><enum>(B)</enum><text>the portfolio manager score certified in such certification is not less than 50.</text></subparagraph></paragraph><paragraph id="HEDB47F1320C043FC945248EFC337544A"><enum>(5)</enum><header>Other definitions</header><text display-inline="yes-display-inline">For purposes of this subsection—</text><subparagraph id="HCA3E46AEA0B04D079691C3C5D40C8621"><enum>(A)</enum><header>Baseline energy usage intensity</header><text display-inline="yes-display-inline">The term <term>baseline energy usage intensity</term> means the energy usage intensity certified under paragraph (3)(A).</text></subparagraph><subparagraph id="H87A7D8F159584AE38782871A7FFE4D20"><enum>(B)</enum><header>Portfolio manager score</header><text>The term <term>portfolio manager score</term> means the score determined under the methodology (as in effect on the date of the enactment of this Act) developed by the Administrator of the Environmental Protection Agency for rating a building’s energy efficiency for purposes of the Energy Star program. Modifications after the date of the enactment of this paragraph to such methodology shall be taken into account under this paragraph as provided by the Secretary and such Administrator.</text></subparagraph><subparagraph id="H3F75E52458F04958AD6B589BDD1AE605"><enum>(C)</enum><header>Energy usage intensity</header><text>The term <term>energy usage intensity</term> means energy usage intensity determined in accordance with such regulations or other guidance as the Secretary may provide and measured in British thermal units.</text></subparagraph><subparagraph id="HAF4EE11FC2654651B7FA72B56B11929D"><enum>(D)</enum><header>Qualified professional</header><text>The term <term>qualified professional</term> means an individual who is a licenced architect or a licenced engineer and meets such other requirements as the Secretary may provide.</text></subparagraph></paragraph><paragraph id="HF6307EDCDAD64FBC8C5A0BDC4C06245E"><enum>(6)</enum><header>Certain rules not applicable</header><text>Paragraphs (1), (5), and (6)(B) of subsection (d) shall not apply for purposes of this subsection.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection commented="no" id="id3B7249C58807465FB2996FE1A0B120AA"><enum>(c)</enum><header>Other rules</header><paragraph commented="no" id="id2F5CCAC8D6B840C7868CE9E2793D5F75"><enum>(1)</enum><header>Allocation of deduction</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D(d)(4)</external-xref> is amended to read as follows:</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>.</after-quoted-block></quoted-block></paragraph><paragraph commented="no" id="id371B77E72EC14DCEA44AB15743EA62BE"><enum>(2)</enum><header>Elimination of interim rule for lighting systems</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/179D">Section 179D</external-xref>, as amended by subsections (a)(2) and (b)(4), is amended by striking subsection (f) and by redesignating subsections (g), (h), and (i) as subsections (f), (g), and (h), respectively.</text></paragraph><paragraph commented="no" id="id5414ECB81B974297A809EACF4DF53B53"><enum>(3)</enum><header>Application to real estate investment trust earnings and profits</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/312">Section 312(k)(3)(B)</external-xref> is amended—</text><subparagraph commented="no" id="id0650304BA1B04E7BBC3E88FE854A5EF4"><enum>(A)</enum><text>by striking <quote>For purposes of computing the earnings and profits of a corporation</quote> and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id92A4B5E1E76747DB9E80C61923592FAE"><subclause commented="no" id="idF5B9790299524AE09B2D1A755B273213"><enum>(I)</enum><header>In general</header><text>For purposes of computing the earnings and profits of a corporation, except as provided in clause (ii)</text></subclause><after-quoted-block>, and</after-quoted-block></quoted-block></subparagraph><subparagraph commented="no" id="id892B998B83F042919C2FFB99EB0159A4"><enum>(B)</enum><text>by adding at the end the following new clause:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id944B23A5F01E45A1B883940D76A7A318"><subclause commented="no" id="id8E89895C685E4F98A21857FB2DF4B3F0"><enum>(II)</enum><header>Special rule</header><text>In the case of a corporation that is a real estate investment trust, any amount deductible under section 179D shall be allowed in the year in which the property giving rise to such deduction is placed in service.</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph></subsection><subsection id="idCC642DA5BC8F42EDA01B87B39F9C99A4" commented="no" display-inline="no-display-inline"><enum>(d)</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" commented="no" display-inline="no-display-inline"><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>Termination of certain fossil fuel provisions</header><section id="id6198C39847B34ACABF265F3B8A18FE70"><enum>401.</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 date of the enactment of the <short-title>Clean Energy for America Act</short-title> occurs.</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 date of the enactment of the <short-title>Clean Energy for America Act</short-title> occurs 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 date of the enactment of the <short-title>Clean Energy for America Act</short-title> occurs 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><paragraph display-inline="no-display-inline" id="id384562D19BB54FF98676B548705CDFF2"><enum>(1)</enum><header>In general</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></paragraph><paragraph display-inline="no-display-inline" id="id17E9730F07AB40258CFE5EF8B8E87840"><enum>(2)</enum><header>Conforming amendments</header><subparagraph display-inline="no-display-inline" id="id1BB5BB038DBD48EC8C29323B853C4DD4" commented="no"><enum>(A)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/291">Section 291(b)</external-xref> is amended—</text><clause display-inline="no-display-inline" id="id2DDDB36A23644153B3A4415E5EDA7C01" commented="no"><enum>(i)</enum><text>in paragraph (1), by striking <quote>without regard to this section)</quote> and all that follows and inserting <quote>without regard to this section) under section 616(a) or 617(a) shall be reduced by 30 percent.</quote>, </text></clause><clause display-inline="no-display-inline" id="id4BF7701AE2144745932012D8CDFCE63D" commented="no"><enum>(ii)</enum><text>in paragraph (2), by striking <quote>section 263(c), 616(a), or 617(a)</quote> and inserting <quote>section 616(a) or 617(a)</quote>,</text></clause><clause display-inline="no-display-inline" commented="no" id="idD295920B4C6147A38FE5FF3D0817EDD2"><enum>(iii)</enum><text>by striking paragraph (4), and</text></clause><clause display-inline="no-display-inline" commented="no" id="id83599147CBB8419F836757976675752F"><enum>(iv)</enum><text>by redesignating paragraph (5) as paragraph (4).</text></clause></subparagraph><subparagraph display-inline="no-display-inline" commented="no" id="idE752033DC4844DC2970A3A3E77699649"><enum>(B)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/57">Section 57(a)</external-xref> is amended by striking paragraph (2).</text></subparagraph></paragraph></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><subparagraph display-inline="no-display-inline" id="idF52451A7D0B64DB4809E7FB902F1386F"><enum>(A)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/613">Section 613</external-xref> is amended—</text><clause display-inline="no-display-inline" id="idD0497B3DB4684F78854E723A610A0ECF"><enum>(i)</enum><text>in subsection (a), by striking <quote>(100 percent in the case of oil and gas properties)</quote>,</text></clause><clause display-inline="no-display-inline" id="id830827EB95134FEBA5906EDDB877E143"><enum>(ii)</enum><text>in subsection (b)—</text><subclause display-inline="no-display-inline" id="id638517C8A4EA4BAA9D80B93459198BD7"><enum>(I)</enum><text>by striking paragraph (2) and inserting the following:</text><quoted-block display-inline="no-display-inline" id="idC4D3B0A7055C4AE4A88704947F9AFDBF" style="OLC"><paragraph display-inline="no-display-inline" id="idDF474CB23ACD4C91B117E8D70D15971F"><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></subclause><subclause display-inline="no-display-inline" id="id01A4F4E5E50A45CBBC4A367DAEDF5EEB"><enum>(II)</enum><text>in paragraph (4), by striking <quote>coal, lignite,</quote>,</text></subclause><subclause display-inline="no-display-inline" id="idBE67FC4E878E4CB3836FFE593A77DA91"><enum>(III)</enum><text>in paragraph (5), by inserting <quote>(except oil shale)</quote> after <quote>clay and shale</quote>, </text></subclause><subclause display-inline="no-display-inline" id="id8B78F6457E694587B122330CC44A058C"><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>, and</text></subclause><subclause display-inline="no-display-inline" id="idDECE364EAD5A494395EFDA9C8CC2094B"><enum>(V)</enum><text>in paragraph (7), by striking <quote>or</quote> at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting <quote>; or</quote>, and by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id06BA6C445374456B93196EDDE0B78AC3"><subparagraph display-inline="no-display-inline" id="id88CAC11E9A1B4CC69B86FB2AC6529CE4"><enum>(D)</enum><text>coal, lignite, and oil shale.</text></subparagraph><after-quoted-block>,</after-quoted-block></quoted-block></subclause></clause><clause display-inline="no-display-inline" id="id564D86867ABC447981E1DAA12E0B477A"><enum>(iii)</enum><text>in subsection (c)(1), striking <quote>other than an oil or gas well and</quote>,</text></clause><clause display-inline="no-display-inline" id="idF259D1B5B40D4685B9C9F2BBBF90E454"><enum>(iv)</enum><text>in subsection (c)(4)—</text><subclause display-inline="no-display-inline" id="id919857C1F52D4CF9BCBAF7C272B041C4"><enum>(I)</enum><text>by striking subparagraphs (A) and (H),</text></subclause><subclause display-inline="no-display-inline" id="id3E034BBE3C3A4467BB8B56FFD673D835"><enum>(II)</enum><text>by inserting <quote>and</quote> at the end of subparagraph (G),</text></subclause><subclause display-inline="no-display-inline" id="id41F4B97C41D142DAA14648D02955B882"><enum>(III)</enum><text>by redesignating subparagraphs (B) through (G) as subparagraphs (A) through (F), respectively, and</text></subclause><subclause display-inline="no-display-inline" id="id9D9DC226445C405197C0B510B534E40C"><enum>(IV)</enum><text>by redesignating subparagraph (I) as subparagraph (G),</text></subclause></clause><clause display-inline="no-display-inline" id="id7F8DC145C8E640DD84F636F3E8D25F99"><enum>(v)</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></clause><clause id="id86C2EDD037FB4C55B311D63D1BF75FD3" commented="no" display-inline="no-display-inline"><enum>(vi)</enum><text>in subsection (e)(2), by striking <quote>or section 613A</quote>. </text></clause></subparagraph><subparagraph display-inline="no-display-inline" id="idDA38B47B278C41689E811FFDF502D8FC"><enum>(B)</enum><header>Conforming amendments</header><clause display-inline="no-display-inline" id="id275EB976D6EE461AA1CDDDC1221ACB61"><enum>(i)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/291">Section 291(a)(2)</external-xref> is amended by striking <quote>and coal (including lignite)</quote>. </text></clause><clause display-inline="no-display-inline" id="idD6C7267F4A5C4F45B1EC0D8C703A9D59"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="id4BA9C2207EC74459B9EA33908B717FCE"><enum>(I)</enum><text>Part I of subchapter I of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by striking section 613A (and the item relating to such section in the table of sections).</text></subclause><subclause display-inline="no-display-inline" indent="up1" id="idC86E012860494C84A4E327B3C4502521"><enum>(II)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/45H">Section 45H(d)</external-xref> is amended by striking <quote>section 613A(d)(3)</quote> and inserting <quote>section 167(h)(5)(C)</quote>.</text></subclause><subclause display-inline="no-display-inline" id="id927F4559608142B3BC672ACABAED54C3" indent="up1"><enum>(III)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/57">Section 57(a)(1)</external-xref> is amended by striking the last sentence.</text></subclause><subclause display-inline="no-display-inline" id="id85A8E42022A74F5F93AF8C19AC8ECE3E" indent="up1" commented="no"><enum>(IV)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/167">Section 167(h)(5)</external-xref> is amended—</text><item display-inline="no-display-inline" id="idDF2A7DB785A1403592749E361D4D0972" commented="no"><enum>(aa)</enum><text>by striking subparagraph (B)(iii) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id7EA50C6623494FD8AFCF0C0D1BAAAB5A"><clause id="id328ca5f24c3d48efba8063d2c50dd2ba" commented="no"><enum>(iii)</enum><text>which—</text><subclause id="id3E4865F290FB471EB3EF9E0357777A64" commented="no"><enum>(I)</enum><text>engages (by itself or with a related person) in the refining of crude oil, and </text></subclause><subclause id="id7ED71533F95B4635A7A2B37B000EE565" commented="no"><enum>(II)</enum><text>together with related persons, has average daily refinery runs for the taxable year (determined by dividing the aggregate refinery runs for the taxable year by the number of days in the taxable year) in excess of 75,000 barrels.</text></subclause></clause><after-quoted-block>, and</after-quoted-block></quoted-block></item><item display-inline="no-display-inline" id="idD1CB3B937A1549D2B1C62CA45B562C86" commented="no"><enum>(bb)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id4C337E52D4384FE1AF755C0B27A3DFE2"><subparagraph id="idBB7DCDF5786B4291BF373C7BC66FB388" commented="no"><enum>(C)</enum><header>Related person</header><text>For purposes of subparagraph (B)(iii), a person is a related person with respect to the taxpayer if a significant ownership interest in either the taxpayer or such person is held by the other, or if a third person has a significant ownership interest in both the taxpayer and such person. For purposes of the preceding sentence, the term <term>significant ownership interest</term> means—</text><clause id="id9BFC56AEC9CE4EA6AF9A6E3A02F07712" commented="no"><enum>(i)</enum><text>with respect to any corporation, 15 percent or more in value of the outstanding stock of such corporation,</text></clause><clause id="id7043E6CE53274450BFAB17D336B25AD1" commented="no"><enum>(ii)</enum><text> with respect to a partnership, 15 percent or more interest in the profits or capital of such partnership, and</text></clause><clause id="id4173C8A0F1684505B9A4AE2FCEA6A596" commented="no"><enum>(iii)</enum><text>with respect to an estate or trust, 15 percent or more of the beneficial interests in such estate or trust.</text></clause><continuation-text continuation-text-level="subparagraph" commented="no">For purposes of determining a significant ownership interest, an interest owned by or for a corporation, partnership, trust, or estate shall be considered as owned directly both by itself and proportionately by its shareholders, partners, or beneficiaries, as the case may be. </continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></item></subclause><subclause display-inline="no-display-inline" id="idC27FE0C8463247968687017AFF50115C" commented="no" indent="up1"><enum>(V)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/703">Section 703(a)(2)</external-xref> is amended by inserting <quote>and</quote> at the end of subparagraph (D), by striking <quote>, and</quote> at the end of subparagraph (E) and inserting a period, and by striking subparagraph (F).</text></subclause><subclause display-inline="no-display-inline" commented="no" indent="up1" id="id1F62069AC55F4D8EB61B824D2FE428E0"><enum>(VI)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/705">Section 705(a)</external-xref> is amended by inserting <quote>and</quote> at the end of paragraph (1)(C), by striking <quote>; and</quote> at the end of paragraph (2)(B) and inserting a period, and by striking paragraph (3). </text></subclause><subclause display-inline="no-display-inline" id="id33A97A60FF85443F90469E346B20AF08" commented="no" indent="up1"><enum>(VII)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/1202">Section 1202(e)(3)(D)</external-xref> is amended by striking <quote>or 613A</quote>.</text></subclause><subclause display-inline="no-display-inline" id="id4767AC364EC64357991138199AAE7996" commented="no" indent="up1"><enum>(VIII)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/1367">Section 1367(a)(2)</external-xref> is amended by inserting <quote>and</quote> at the end of subparagraph (C), by striking <quote>, and</quote> at the end of subparagraph (D) and inserting a period, and by striking subparagraph (E).</text></subclause></clause><clause display-inline="no-display-inline" id="id3D6B3CC057D642D394E36E09CA855046" commented="no"><enum>(iii)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/993">Section 993(c)(2)(C)</external-xref> is amended by striking <quote>(including oil, gas, coal, or uranium products) under section 613 or 613A</quote> and inserting <quote>(including uranium products) under section 613</quote>. </text></clause><clause display-inline="no-display-inline" id="id19528EB068A84A81AAB54A0B8C6F7D56" commented="no"><enum>(iv)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/1446">Section 1446(c)(2)</external-xref> is amended by striking <quote>but the amount of such deduction shall be determined without regard to sections 613 and 613A</quote>.</text></clause></subparagraph></paragraph><paragraph display-inline="no-display-inline" id="id2ED2663B58104FD4B37AFCE1662CF94C"><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><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 amendments</header><subparagraph id="id59867A77B8D1433493CDE1B098315B49"><enum>(A)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/272">Section 272</external-xref> is amended by striking <quote>coal or</quote> each place it appears.</text></subparagraph><subparagraph id="idC58271A0E5644F77AA4F742D8995609E"><enum>(B)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/1402">Section 1402(a)(3)(B)</external-xref> is amended by striking <quote>coal,</quote>.</text></subparagraph><subparagraph id="id56265C9618BC4087912CF52637D5B02D"><enum>(C)</enum><clause commented="no" display-inline="yes-display-inline" id="id8A3D3A7D3CEA4929BCD7426FE7CA8071"><enum>(i)</enum><text>The heading of <external-xref legal-doc="usc" parsable-cite="usc/26/631">section 631</external-xref> is amended by striking <quote><header-in-text level="section" style="OLC">, coal,</header-in-text></quote>.</text></clause><clause indent="up1" id="id3D8BBB8FAF51420AA77C51116EA7E6FB"><enum>(ii)</enum><text>The item relating to section 631 in the table of sections for part III of subchapter I of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by striking <quote>, coal,</quote>.</text></clause></subparagraph></paragraph><paragraph id="H773506BBF7FD4F22B6BDC3D522878B9B"><enum>(3)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to dispositions 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="id096E8F3BEC934EB9B164416BD41814D7"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="idB90E5080420347F39DBF85D8C05BCF1B"><enum>(i)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/45Q">Section 45Q(e)</external-xref> is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id6D46CF044A974BF8B3E3A53173A0A3ED"><paragraph id="idB699D51CF49C4A9093A3F3AF5BDF03D6"><enum>(4)</enum><header>Inflation adjustment factor</header><text>The term <term>inflation adjustment factor</term> means, with respect to any calendar year, a fraction the numerator of which is the GNP implicit price deflator for the preceding calendar year and the denominator of which is the GNP implicit price deflator for 2008. For purposes of the preceding sentence, the term <term>GNP implicit price deflator</term> means the first revision of the implicit price deflator for the gross national product as computed and published by the Secretary of Commerce. Not later than April 1 of any calendar year, the Secretary shall publish the inflation adjustment factor for the preceding calendar year.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></clause><clause id="id0C732361C398444F9024459069721D01"><enum>(ii)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/45Q">Section 45Q</external-xref>, as amended by this Act, is amended in subsection (b)(1) by striking <quote>determined under section 43(b)(3)(B) for such calendar year, determined by substituting <quote>2025</quote> for <quote>1990</quote></quote> each place it appears in subparagraph (A)(ii) and (B)(ii) and inserting <quote>determined under subsection (e)(4) by substituting <quote>2025</quote> for <quote>2008</quote></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 display-inline="no-display-inline" commented="no" id="id873E504A5ADE433E93D13EC7EC9814F5"><enum>(l)</enum><header>Repeal of passive loss exception for oil and gas interests</header><paragraph display-inline="no-display-inline" commented="no" id="id91524DC2A3C8481BA4027032E97B3486"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/469">Section 469(c)(3)(A)</external-xref> is amended—</text><subparagraph display-inline="no-display-inline" commented="no" id="id8DCD012BA1744A368EE9F66790CF1E67"><enum>(A)</enum><text>by striking <quote>The term</quote> and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id4D5BF4844A3645F0B701877167D3495C"><clause display-inline="no-display-inline" commented="no" id="id13C5D933BBE14E109779E8BC37983A73"><enum>(i)</enum><header>Exception</header><text>The term</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph><subparagraph display-inline="no-display-inline" commented="no" id="id411789BB5B464C66B3D81C9C958E2A50"><enum>(B)</enum><text>by adding at the end the following new clause:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id49FECD1A34CC476F84F4EEE901F3EB59"><clause display-inline="no-display-inline" commented="no" id="id99C94B62833B4F05895EE9837A274EE0"><enum>(ii)</enum><header>Termination</header><text>Clause (i) shall not apply to any taxable year beginning after the date of the enactment of the Clean Energy for America Act.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph display-inline="no-display-inline" commented="no" id="idCADB53853BBC4D348A2A4D1957799B56"><enum>(2)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/469">Section 469(c)(4)</external-xref> is amended by striking <quote>Paragraphs (2) and (3)</quote> and inserting <quote>Paragraphs (2) and (3)(A)(i)</quote>.</text></paragraph></subsection><subsection commented="no" id="id0049B4C6C5844D3AA27ECD6D92E0A00A"><enum>(m)</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 id="id0972F07CC158425F9BC38C7476C893F0" commented="no" display-inline="no-display-inline"><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><section display-inline="no-display-inline" commented="no" id="idE455DFD37AD44816BD2F3D09CFEFF717"><enum>402.</enum><header>Modification of certain provisions relating to oil, gas, and other fossil fuels</header><subsection commented="no" display-inline="no-display-inline" id="id85C40D5C4E7C454E86A56B984305EA75"><enum>(a)</enum><header>Modifications of foreign tax credit rules applicable to major integrated oil companies which are dual capacity taxpayers</header><paragraph commented="no" display-inline="no-display-inline" id="id870C10B6A3A9401B8D2647B1A0E15EC0"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/901">Section 901</external-xref> is amended by redesignating subsection (n) as subsection (o) and by inserting after subsection (m) the following new subsection:</text><quoted-block display-inline="no-display-inline" id="id59B4564047054D9F8EFB25B05BC5AF1E" style="OLC"><subsection commented="no" display-inline="no-display-inline" id="id832013D669AB496E9217A5D70E41E716"><enum>(n)</enum><header>Special rules relating to major integrated oil companies which are dual capacity taxpayers</header><paragraph commented="no" display-inline="no-display-inline" id="idA86BDC3205EF48378545D9D088E03443"><enum>(1)</enum><header>General rule</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this chapter, any amount paid or accrued by a dual capacity taxpayer which is a major integrated oil company (within the meaning of section 167(h)(5)) to a foreign country or possession of the United States for any period shall not be considered a tax—</text><subparagraph commented="no" display-inline="no-display-inline" id="idCE1206A91A254CEFA030EAF1D94F610A"><enum>(A)</enum><text display-inline="yes-display-inline">if, for such period, the foreign country or possession does not impose a generally applicable income tax, or</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id1430720C4FEC4AF1BAEDD845D4A2DE7E"><enum>(B)</enum><text display-inline="yes-display-inline">to the extent such amount exceeds the amount (determined in accordance with regulations) which—</text><clause commented="no" display-inline="no-display-inline" id="id3616EAF2E4174061B78DB6C614CBB2C4"><enum>(i)</enum><text display-inline="yes-display-inline">is paid by such dual capacity taxpayer pursuant to the generally applicable income tax imposed by the country or possession, or</text></clause><clause commented="no" display-inline="no-display-inline" id="idBBD48C80AE584E7AAE22BC2F3F750626"><enum>(ii)</enum><text display-inline="yes-display-inline">would be paid if the generally applicable income tax imposed by the country or possession were applicable to such dual capacity taxpayer.</text></clause></subparagraph><continuation-text commented="no" continuation-text-level="paragraph">Nothing in this paragraph shall be construed to imply the proper treatment of any such amount not in excess of the amount determined under subparagraph (B).</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2BE54CFB0E9F46AEABB5E04C1E1553D1"><enum>(2)</enum><header>Dual capacity taxpayer</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <term>dual capacity taxpayer</term> means, with respect to any foreign country or possession of the United States, a person who—</text><subparagraph commented="no" display-inline="no-display-inline" id="id114FA007ACB04E589C34FD9AE707FF40"><enum>(A)</enum><text display-inline="yes-display-inline">is subject to a levy of such country or possession, and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB48A3E58EACB4262A062681509EBC2D3"><enum>(B)</enum><text display-inline="yes-display-inline">receives (or will receive) directly or indirectly a specific economic benefit (as determined in accordance with regulations) from such country or possession.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4221398EC1FE4603A1915AC3F6F4FF31"><enum>(3)</enum><header>Generally applicable income tax</header><text display-inline="yes-display-inline">For purposes of this subsection—</text><subparagraph commented="no" display-inline="no-display-inline" id="id9A25BF879E264980B24CFC517824B854"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>generally applicable income tax</term> means an income tax (or a series of income taxes) which is generally imposed under the laws of a foreign country or possession on income derived from the conduct of a trade or business within such country or possession.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6008C386B2034848BC16753211264648"><enum>(B)</enum><header>Exceptions</header><text display-inline="yes-display-inline">Such term shall not include a tax unless it has substantial application, by its terms and in practice, to—</text><clause commented="no" display-inline="no-display-inline" id="id8EFBAC16675449C2ABDBF167616DBFA1"><enum>(i)</enum><text display-inline="yes-display-inline">persons who are not dual capacity taxpayers, and</text></clause><clause commented="no" display-inline="no-display-inline" id="idFE15C6C70615499EB6717AE075351274"><enum>(ii)</enum><text display-inline="yes-display-inline">persons who are citizens or residents of the foreign country or possession.</text></clause></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2003AD9F498E450E87059BCEDDDD5689"><enum>(2)</enum><header>Effective Date</header><subparagraph commented="no" display-inline="no-display-inline" id="id2C2A93FA1BB14247A7D590BFFC676441"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The amendments made by this subsection shall apply to taxes paid or accrued in taxable years beginning after the date of the enactment of this Act.</text></subparagraph><subparagraph id="idF5637FD489954B729A309CFCDB650390" commented="no" display-inline="no-display-inline"><enum>(B)</enum><header>Contrary treaty obligations upheld</header><text display-inline="yes-display-inline">The amendments made by this subsection shall not apply to the extent contrary to any treaty obligation of the United States. </text></subparagraph></paragraph></subsection><subsection id="idEEB1BDB8249F427383411D50A8B6BBB5"><enum>(b)</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 <enum-in-header>(1)</enum-in-header> 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 (as in effect on the day before the date of enactment of the <short-title>Clean Energy for America Act</short-title>) 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>(c)</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 id="H6CD9C91934954228BE78656AD6595D28"><enum>(d)</enum><header>Clarification of tar sands as crude oil for excise tax purposes</header><paragraph id="H24089440696D45A383A13B3721601F51"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/26/4612">section 4612(a)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idED989E2E007A47A9AA54B18F9BBD4006"><paragraph id="idEC84E005D5A34B98BCF8EDC38A6452E4"><enum>(1)</enum><header>Crude oil</header><text>The term <term>crude oil</term> includes crude oil condensates, natural gasoline, any bitumen or bituminous mixture, any oil derived from a bitumen or bituminous mixture (including oil derived from tar sands), and any oil derived from kerogen-bearing sources (including oil derived from oil shale).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id87F311E0431148449FB648A8730220DB" commented="no"><enum>(2)</enum><header>Technical amendment</header><text>Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/4612">section 4612(a)</external-xref> is amended by striking <quote>from a well located</quote>.</text></paragraph><paragraph id="HD65DC30CF0084918B0BEA547EDC50E67" commented="no" display-inline="no-display-inline"><enum>(3)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to oil and petroleum products received, entered, used, or exported after December 31, 2021. </text></paragraph></subsection></section><enum>V</enum><header>Workforce development requirements</header><section id="id93C51D9C24E84E139FFAFD133A463177"><enum>501.</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><subparagraph commented="no" display-inline="yes-display-inline" id="id14068FAFCB8F47B08A21009438D93CE5"><enum>(A)</enum><text>demonstrates a lack of availability of qualified apprentices in the geographic area of the construction, alteration, or repair work; and </text></subparagraph><subparagraph id="idCA31B2935D0444029F6D6970B200E293" indent="up1"><enum>(B)</enum><text>makes a good faith effort to comply with the requirements of this section; or</text></subparagraph></paragraph><paragraph id="id80F4501D41894D9081CF316CBD2FDB81"><enum>(2)</enum><text>in the case of any failure by the taxpayer to satisfy the requirement under subsection (a) with respect to the construction, alteration, or repair work on any applicable project to which paragraph (1) does not apply, makes payment to the Secretary of the Treasury (or the Secretary's delegate) of a penalty in an amount equal to the product of—</text><subparagraph id="idD34F557ACDB4495A9B981A38F1F1B2C8"><enum>(A)</enum><text>$500, multiplied by</text></subparagraph><subparagraph id="id5DDB12C5842E4707BC0EC669AEBBD6EA"><enum>(B)</enum><text>the total labor hours for which the requirement described in such subsection was not satisfied with respect to the construction, alteration, or repair work on such applicable project. </text></subparagraph></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)(9)(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>subsection (e)(4)(A)(ii)(II) of section 45V of such Code,</text></subparagraph><subparagraph id="id0AEF156D91514CB39CA58D9F3BD33A31"><enum>(E)</enum><text>subsection (d)(3)(A)(i)(II)(bb) of section 45X of such Code,</text></subparagraph><subparagraph id="id067B196C44F54CA0A3A4E3EE1DA4790A"><enum>(F)</enum><text>subsection (d)(3)(A)(ii)(II) of section 48C of such Code,</text></subparagraph><subparagraph id="idBDDE582EC4E943849AAF80276F8CB8FC"><enum>(G)</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>(H)</enum><text>subsection (c)(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 or determined 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><enum>VI</enum><header>Miscellaneous</header><section commented="no" id="idB5B153C4AAA14FC89A56C4900BD3E8C6"><enum>601.</enum><header>Adjustment of qualifying advanced energy project credit</header><subsection commented="no" id="idF894C4DA2C8B463E9F136F7CB18D1E25"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/48C">Section 48C</external-xref> is amended—</text><paragraph commented="no" id="idF15BB4E74DB045F7B9F9A79E0C47ED04"><enum>(1)</enum><text>in subsection (c)(1)—</text><subparagraph commented="no" id="idEFF20086F82B496AB382F827417B9BB0"><enum>(A)</enum><text>in subparagraph (A)—</text><clause commented="no" id="id5C2F645B1A664B32AF144272B1294680"><enum>(i)</enum><text>by inserting <quote>, any portion of the qualified investment of which is certified by the Secretary under subsection (d) as eligible for a credit under this section</quote> after <quote>means a project</quote>,</text></clause><clause commented="no" id="id88351213FE874800AEA383459D2CD101"><enum>(ii)</enum><text>in clause (i)—</text><subclause commented="no" id="id799F782C894E48C9B6DF924CFAA81243"><enum>(I)</enum><text>by striking <quote>a manufacturing facility for the production of</quote> and inserting <quote>an industrial or manufacturing facility for the production or recycling of</quote>,</text></subclause><subclause commented="no" id="id1CFC1B438D1D4AB2B248FA34D2D40833"><enum>(II)</enum><text>in clause (I), by inserting <quote>water,</quote> after <quote>sun,</quote>,</text></subclause><subclause commented="no" id="idFC2A8F2A43AB42B18BAD2114FC6EB92A"><enum>(III)</enum><text>in clause (II), by striking <quote>an energy storage system for use with electric or hybrid-electric motor vehicles</quote> and inserting <quote>energy storage systems and components</quote>,</text></subclause><subclause commented="no" id="id08D1772FDE35401FB5A0CD7C5E821FC6"><enum>(IV)</enum><text>in clause (III), by striking <quote>grids to support the transmission of intermittent sources of renewable energy, including storage of such energy</quote> and inserting <quote>grid modernization equipment or components</quote>,</text></subclause><subclause commented="no" id="idF6D90D44C4914309A7BD082D8E938C1F"><enum>(V)</enum><text>in subclause (IV), by striking <quote>and sequester carbon dioxide emissions</quote> and inserting <quote>, remove, use, or sequester carbon oxide emissions</quote>,</text></subclause><subclause commented="no" id="id2DCC49B992034E22990827511D41BBC9"><enum>(VI)</enum><text>by striking subclause (V) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id5774521C61C54979BF4C1EFE4B4E95C9"><subclause commented="no" id="id432FC812C42F4897AE3867E3FD87E64A"><enum>(V)</enum><text>equipment designed to refine, electrolyze, or blend any fuel, chemical, or product which is—</text><item commented="no" id="id6A443FD12BFB4A1CA8639EB24C842D6B"><enum>(aa)</enum><text>renewable, or</text></item><item commented="no" id="id87938C771EDC45D99B17029AA89C4566"><enum>(bb)</enum><text>low-carbon and low-emission,</text></item></subclause><after-quoted-block>,</after-quoted-block></quoted-block></subclause><subclause commented="no" id="idD35307901ED24563A43B68BA5D9DDC88"><enum>(VII)</enum><text>by striking subclause (VI),</text></subclause><subclause commented="no" id="idEAEDDCC1C2D443A5AF91C4FC6F1FA0C8"><enum>(VIII)</enum><text>by redesignating subclause (VII) as subclause (IX),</text></subclause><subclause commented="no" id="id34754A7D772F4B2CBED0D1BE7AF132F3"><enum>(IX)</enum><text>by inserting after subclause (V) the following new subclauses:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id2B735509B7CE4FF1B627E5854D2D05AE"><subclause commented="no" id="id879171FCB41D46668C39EFBE6A4F2091"><enum>(VI)</enum><text>property designed to produce energy conservation technologies (including residential, commercial, and industrial applications),</text></subclause><subclause commented="no" id="idCB77419D439F48058037D9DE15D7C779"><enum>(VII)</enum><text>light-, medium-, or heavy-duty electric or fuel cell vehicles, as well as—</text><item commented="no" id="idF371491750F8477E8FCA40CABF5FC210"><enum>(aa)</enum><text>technologies, components, or materials for such vehicles, and</text></item><item commented="no" id="idF2B5553613894C51ADB945B6604BCC62"><enum>(bb)</enum><text>associated charging or refueling infrastructure,</text></item></subclause><subclause commented="no" id="id40D6300996724F07918F952994EAD93B"><enum>(VIII)</enum><text>hybrid vehicles with a gross vehicle weight rating of not less than 14,000 pounds, as well as technologies, components, or materials for such vehicles, or</text></subclause><after-quoted-block>, and</after-quoted-block></quoted-block></subclause><subclause commented="no" id="idA31577F54FBC458FB07D4F23DC4360C1"><enum>(X)</enum><text>in subclause (IX), as so redesignated, by striking <quote>and</quote> at the end and inserting <quote>or</quote>, and</text></subclause></clause><clause commented="no" id="id8D2547AA1E6040619522DFB689F5DEC6"><enum>(iii)</enum><text>by striking clause (ii) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idB146240BCD7D49E4A9C0F44D4C09CDC2"><clause commented="no" id="id41ABDC9A97A24DDD876D9F6D776536F8"><enum>(ii)</enum><text>which re-equips an industrial or manufacturing facility with equipment designed to reduce its greenhouse gas emissions well below current best practices through the installation of—</text><subclause commented="no" id="id8F0303DABB4140068506AD8D0F9999FC"><enum>(I)</enum><text>low- or zero-carbon process heat systems,</text></subclause><subclause commented="no" id="id214CD6A0EEDB4A2685DDE7FAC5676ED2"><enum>(II)</enum><text>carbon capture, transport, utilization and storage systems,</text></subclause><subclause commented="no" id="id2A69BD3ABE21441BB03B513ECC4551F4"><enum>(III)</enum><text>energy efficiency and reduction in waste from industrial processes, or</text></subclause><subclause commented="no" id="id3154BDA014724A9A809E6D9099F28FD3"><enum>(IV)</enum><text>any industrial technology which significantly reduces greenhouse gas emissions, as determined by the Secretary.</text></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph commented="no" id="idB04A449DC1EA4C7294887F6916C105A0"><enum>(B)</enum><text>by redesignating subparagraph (B) as subparagraph (C), and</text></subparagraph><subparagraph commented="no" id="id96388E9CF15940458FB185762B6F4A26"><enum>(C)</enum><text>by inserting after subparagraph (A) the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id7F303AE4319447199F6E2F117D30DE82"><subparagraph commented="no" id="id781E35CF15F44F588047E555CFAC3467"><enum>(B)</enum><header>Additional qualifying advanced energy projects</header><text>The term <term>qualifying advanced energy project</term> shall also include any project described in subparagraph (A) which is located in a census tract—</text><clause commented="no" id="id906B0C7B824140F6BD6A987F894724AD"><enum>(i)</enum><text>which, prior to the date of enactment of the <short-title>Clean Energy for America Act</short-title>, had no projects which received a certification and allocation of credits under subsection (d), and</text></clause><clause commented="no" id="id97B2375F80474027B908B24D300C520E"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="id5A22D4DDD2924468B3EE71109371FD50"><enum>(I)</enum><text>in which, after December 31, 1999, a coal mine has closed,</text></subclause><subclause commented="no" indent="up1" id="id454CCCED2C2D4FE6AE935FC5B240EF58"><enum>(II)</enum><text>in which, after December 31, 2009, a coal-fired electric generating unit has been retired, or</text></subclause><subclause commented="no" indent="up1" id="id1CA6E08471A84124B4274A3B3601714F"><enum>(III)</enum><text>which is immediately adjacent to a census tract described in subclause (I) or (II).</text></subclause></clause></subparagraph><after-quoted-block>,</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph commented="no" id="id8C5C558DB72B4A8FB0B0EA379162C93C"><enum>(2)</enum><text>in subsection (d)—</text><subparagraph commented="no" id="id512F3FEFBE7E4052A70B8090E3B7A250"><enum>(A)</enum><text>in paragraph (1)—</text><clause commented="no" id="id53795B0397754C4ABCE49E612BAE7625"><enum>(i)</enum><text>in subparagraph (A), by striking <quote>this section</quote> and inserting <quote>the <short-title>Clean Energy for America Act</short-title></quote>, and</text></clause><clause commented="no" id="idB4E8F16F0C424DA993586AE0F876F896"><enum>(ii)</enum><text>by striking subparagraph (B) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idA3A1E937615343B0BC476934EE5487D0"><subparagraph commented="no" id="id91B1D5BE44E54809AD31A32D981895BB"><enum>(B)</enum><header>Limitations</header><clause commented="no" id="id90D409CCF5F2430492A26C095589A4DF"><enum>(i)</enum><header>Initial allocation</header><text>The total amount of credits that may be allocated under the program prior to the date of enactment of the <short-title>Clean Energy for America Act</short-title> shall not exceed $2,300,000,000.</text></clause><clause commented="no" id="id5F7391F0CE39419FACF500C36E7EFED7"><enum>(ii)</enum><header>Additional allocation</header><text>The total amount of credits that may be allocated under the program on or after to the date of enactment of the <short-title>Clean Energy for America Act</short-title> shall not exceed $8,000,000,000, of which not greater than $4,000,000,000 may be allocated to projects which are not located in a census tract described in subparagraph (B) of subsection (c)(1).</text></clause></subparagraph><after-quoted-block>,</after-quoted-block></quoted-block></clause></subparagraph><subparagraph commented="no" id="idDECCC3ECCAB440B386E630F27BFC09BC"><enum>(B)</enum><text>in paragraph (2)—</text><clause commented="no" id="id69A8064BEF8D458FB5D151FCA81228C8"><enum>(i)</enum><text>in subparagraph (A), by striking <quote>2-year</quote> and inserting <quote>3-year</quote>,</text></clause><clause commented="no" id="idEE94BC5B46A34DCDB57F23F0D03C6F12"><enum>(ii)</enum><text>in subparagraph (B)—</text><subclause commented="no" id="idDA75E23561B24F1BBE476A9526CAEB98"><enum>(I)</enum><text>by striking <quote>1 year</quote> and inserting <quote>18 months</quote>, and</text></subclause><subclause commented="no" id="id7B47B324AF4E4F2E85F3971B94BFFB1B"><enum>(II)</enum><text>by adding at the end the following new sentence: <quote>Not later than 180 days after the date on which such evidence was provided by the applicant, the Secretary shall determine whether the requirements of the certification have been met.</quote>, and</text></subclause></clause><clause commented="no" id="id353CD49FF6B34811B4BDB53A18A6D897"><enum>(iii)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idDD26E167F6604D2E9E9DEDC1182B9676"><subparagraph commented="no" id="id7FC2221B43D641C3B5A83E98D6CA4DC8"><enum>(D)</enum><header>Location of project</header><text>In the case of an applicant which receives a certification, if the Secretary determines that the project has been placed in service at a location which is materially different than the location specified in the application for such project, the certification shall no longer be valid.</text></subparagraph><after-quoted-block>,</after-quoted-block></quoted-block></clause></subparagraph><subparagraph commented="no" id="id61419E85B0D7431183C3FDD11CB70B56"><enum>(C)</enum><text>in paragraph (3)—</text><clause commented="no" id="id82C3A781EA4D4C8383989FF379CD4266"><enum>(i)</enum><text>by striking subparagraph (A) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idC42C056ABBF341059E19406943078536"><subparagraph commented="no" id="id7A473480B5794D1B96D5257A25F34B41"><enum>(A)</enum><text>shall take into consideration only those projects—</text><clause commented="no" id="id0DDC43B198C44E54B47A781D5DE48C2E"><enum>(i)</enum><text>for which there is a reasonable expectation of commercial viability, and</text></clause><clause commented="no" id="id70A66D907C7A4860936DD4955AB4EE33"><enum>(ii)</enum><text>which—</text><subclause commented="no" id="id0856F7B4EC194491B37A767DBBB3113F"><enum>(I)</enum><text>satisfies the requirements under paragraph (6), and</text></subclause><subclause commented="no" id="idFAD7D46E84794EFB823A4AC98D14C20D"><enum>(II)</enum><text>with respect to the re-equipping, expansion, or establishment of an industrial or manufacturing facility, satisfies the requirements under section 501 of the <short-title>Clean Energy for America Act</short-title>, and</text></subclause></clause></subparagraph><after-quoted-block>, and</after-quoted-block></quoted-block></clause><clause commented="no" id="id30CCF7B8C0EA4EA6B5F57D55BA28CE7B"><enum>(ii)</enum><text>in subparagraph (B)—</text><subclause commented="no" id="idE617E327F63346DA93C270B13B2AF668"><enum>(I)</enum><text>by striking clauses (i) and (ii) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id5FDEFBE4671F48BC8C58A60C0ACFED1B"><clause commented="no" id="idD114692C744344478D09EC3B957AE1C0"><enum>(i)</enum><text>will provide the greatest net impact in avoiding or reducing anthropogenic emissions of greenhouse gases (or, in the case of a project described in subsection (c)(1)(A)(ii), will provide the greatest reduction of greenhouse gas emissions as compared to current best practices),</text></clause><clause commented="no" id="idF3D54B1DF926454CAE0F15B04E02851B"><enum>(ii)</enum><text>will provide the greatest domestic job creation (both direct and indirect) during the credit period,</text></clause><after-quoted-block>,</after-quoted-block></quoted-block></subclause><subclause commented="no" id="id332352C6798347029078B12108A94003"><enum>(II)</enum><text>by redesignating clauses (iii) through (v) as clauses (iv) through (vi), respectively, and</text></subclause><subclause commented="no" id="idFD2B1ECDB9E94D608BF2BC3EDEA97E47"><enum>(III)</enum><text>by inserting after clause (ii) the following new clause:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id656A7DC7FD6D4AD1AC6ABC0ECFE1C788"><clause commented="no" id="id7C6A351DEC5C409F9046004BDE54C633"><enum>(iii)</enum><text>will provide the greatest job creation within the vicinity of the project, particularly with respect to—</text><subclause commented="no" id="id50C90DD794C74D71BBACCDC98BA3B93C"><enum>(I)</enum><text>low-income communities (as defined in section 45D(e)), and</text></subclause><subclause commented="no" id="id9B9F846F6BDC497587A33056D1D03A6E"><enum>(II)</enum><text>dislocated workers who were previously employed in manufacturing, coal power plants, or coal mining,</text></subclause></clause><after-quoted-block>,</after-quoted-block></quoted-block></subclause></clause></subparagraph><subparagraph commented="no" id="idE40FFF79BCEE4AE6805F2821E61B6DCC"><enum>(D)</enum><text>in paragraph (4)—</text><clause commented="no" id="id05D17463BA464AE6A3A6A824A4ED813F"><enum>(i)</enum><text>by striking subparagraph (A) and inserting the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id18B334A99DA94288AD36FFE546C482FE"><subparagraph commented="no" id="id6607BDBECE87463F973003BF8FF6A9F1"><enum>(A)</enum><header>Review and report</header><text>Not later than 4 years after the date of enactment of the <short-title>Clean Energy for America Act</short-title>, the Secretary shall—</text><clause commented="no" id="id7607DD59AC0347CB8C97AB1D81CDC905"><enum>(i)</enum><text>review the credits allocated under this section as of such date, and</text></clause><clause commented="no" id="id409695C08A2A46A28A1FFC30C50205BF"><enum>(ii)</enum><text>submit a report regarding the allocation of such credits to—</text><subclause commented="no" id="id0D44B4ACADE64244BD1B29DC6F997BA0"><enum>(I)</enum><text>the Committee on Finance and the Committee on Energy and Natural Resources of the Senate, and</text></subclause><subclause commented="no" id="idCBA027A591D8462EB535F6C24D437812"><enum>(II)</enum><text>the Committee on Ways and Means and the Committee on Energy and Commerce of the House of Representatives.</text></subclause></clause></subparagraph><after-quoted-block>, and</after-quoted-block></quoted-block></clause><clause commented="no" id="idEC59C914C93D4B4DBCA0EB7C59F2E707"><enum>(ii)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idEB53BA3072934BE2872A79407DF6B329"><subparagraph commented="no" id="id070A45F358384E20B44D5264177F84F7"><enum>(D)</enum><header>Special rule</header><text>For purposes of reallocating credits pursuant to this paragraph, the limitation under paragraph (1)(B)(ii) with respect to allocation of credits to projects which are not located in a census tract described in subparagraph (B) of subsection (c)(1) shall not apply.</text></subparagraph><after-quoted-block>, and</after-quoted-block></quoted-block></clause></subparagraph><subparagraph commented="no" id="idADBAD08F0EFE43348E25849E2FC24F48"><enum>(E)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id853E254E3BFD4D74B001E7C5D243A888"><paragraph commented="no" id="idD6A9AE3B2C3A434E905E937EBA3F3C90"><enum>(6)</enum><header>Wage requirements</header><subparagraph commented="no" id="idE8E00AEADE0D48A69113DB975D848DA1"><enum>(A)</enum><header>In general</header><text>The requirements described in this subparagraph with respect to any project are that the taxpayer shall ensure that any laborers and mechanics employed by contractors and subcontractors in the re-equipping, expansion, or establishment of an industrial or manufacturing facility shall be paid wages at rates not less than the prevailing rates for construction or alteration 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><subparagraph id="id4D7E9E5A4FD64C48A4A449371914F2CE"><enum>(B)</enum><header>Correction and penalty related to failure to satisfy wage requirements</header><text>In the case of any taxpayer which fails to satisfy the requirement under subparagraph (A) with respect to any project—</text><clause id="id702F82552FBA4081980847218BB3FE6D"><enum>(i)</enum><text>rules similar to the rules of section 45U(b)(3)(B)(ii) shall apply for purposes of this paragraph, and</text></clause><clause id="idB7762B4940884FB882C4A39504BE4674"><enum>(ii)</enum><text>if the failure to satisfy the requirement under subparagraph (A) is not corrected pursuant to the rules described in clause (i), the certification with respect to such project shall no longer be valid.</text></clause></subparagraph></paragraph><after-quoted-block>,</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph commented="no" id="idF134A49FCE4144868EAE2BAECAAA388A"><enum>(3)</enum><text>in subsection (e), by striking <quote>48, 48A, or 48B</quote> and inserting <quote>45Q, 48, 48A, 48B, or 48D</quote>, and</text></paragraph><paragraph commented="no" id="id6EF02A1F9F874838B4C09674346C84F5"><enum>(4)</enum><text>by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idA9A3B34064BA4E948C94CF5AA7DA43C8"><subsection commented="no" id="idC3BC9BBE7AC54088BAE41CB7DD7B5E4D"><enum>(f)</enum><header>Special rule for property financed by subsidized energy financing or industrial development bonds</header><text>Rules similar to the rules in section 48(a)(4) shall apply for purposes of this section.</text></subsection><subsection commented="no" id="idAF701B86515A4E9B8BC96668CA093129"><enum>(g)</enum><header>Technical assistance</header><text>For purposes of assisting with applications for certification under subsection (d), the Secretary of Energy shall provide technical assistance to any State (or political subdivision thereof), tribe, or economic development organization which, prior to the date of enactment of the <short-title>Clean Energy for America Act</short-title>—</text><paragraph commented="no" id="idEC5B1989014748D9AFBB2A99E215BB37"><enum>(1)</enum><text>had no applicants for certification under such subsection, or</text></paragraph><paragraph commented="no" id="id7B5074396CBB45F3B790F1B1ABF753EF"><enum>(2)</enum><text>had less than 2 qualifying advanced energy projects which received an allocation of credits under such subsection.</text></paragraph></subsection><subsection id="id20C0B96D309540C393A44D0B21CEB67E"><enum>(h)</enum><header>Election for direct payment</header><paragraph id="idC66C2F684A00416EA4E29DFF3E93B6F1"><enum>(1)</enum><header>In general</header><text>In the case of any eligible property placed in service during any taxable year which is part of a qualifying advanced energy project, 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="id80A357E4C1D946CBBDDE62BF23BF7758"><enum>(2)</enum><header>Form and effect of election</header><subparagraph id="id62066944F7664073AF730EC6611B7A48"><enum>(A)</enum><header>In general</header><text>An election under paragraph (1) shall be made as part of the application for certification under subsection (d)(2)(A) and in such manner as the Secretary may prescribe. Such election, once made, shall—</text><clause id="idE126077BF9B74BF0BB589F285779A406"><enum>(i)</enum><text>be irrevocable with respect to the eligible property to which such election applies, and</text></clause><clause id="id0DDFB65F7782474CADBC5C45FE086A80"><enum>(ii)</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></clause></subparagraph><subparagraph id="id4CBB4CA100F2487EA7B27CAD1297CDA6"><enum>(B)</enum><header>Additional information</header><text>For purposes of an election under paragraph (1), the Secretary may require such information as the Secretary deems necessary for purposes of preventing duplication, fraud, or any improper payments under this subsection.</text></subparagraph></paragraph><paragraph id="id94D9D36376CA4A1DB7CAFF55E7A173F7"><enum>(3)</enum><header>Application to partnerships and S corporations; excess payments</header><text>Rules similar to the rules of paragraphs (3) and (5) of section 45U(h) shall apply for purposes of this subsection.</text></paragraph><paragraph id="id7F68228FA4D045A08D624E84AFC9B2DD"><enum>(4)</enum><header>Special rules for certain entities</header><subparagraph id="id2E74CEAF040D4E9F822C3FF4FBA3E4D3"><enum>(A)</enum><header>Eligibility of certain property</header><text>For purposes of this subsection, paragraphs (3) and (4) of section 50(b) shall not apply with respect to—</text><clause id="id6384414812B7400391726151C0AD1C33"><enum>(i)</enum><text>any 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 subsection),</text></clause><clause id="id30770CF335204AA98ECDCAB3345FDCBC"><enum>(ii)</enum><text>any mutual or cooperative electric company described in section 501(c)(12) or section 1381(a)(2)(C), or</text></clause><clause id="idF58554E78EA241E4ACFC36A4F6F3A00E" commented="no"><enum>(iii)</enum><text>an Indian tribal government (as defined in section 139E(c)(1)).</text></clause></subparagraph><subparagraph commented="no" id="id9D049EDB23414ADFAAEE46A62F0D849E"><enum>(B)</enum><header>Certain entities treated as taxpayers</header><text>In the case of an election under this subsection, any entity described in clause (i), (ii), or (iii) of subparagraph (A) shall be treated as a taxpayer for purposes of this subsection and determining the amount of any credit under subsection (a).</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection commented="no" id="idE1A8C441C04048F8BCF6313459C922A3"><enum>(b)</enum><header>Authorization of appropriations</header><text>To carry out subsection (f) of <external-xref legal-doc="usc" parsable-cite="usc/26/48C">section 48C</external-xref> of the Internal Revenue Code of 1986 (as added by subsection (a)(4)), there is authorized to be appropriated to the State Energy Program of the Department of Energy, out of moneys in the Treasury not otherwise appropriated, $500,000, to remain available until expended.</text></subsection><subsection commented="no" id="id1553644BDC9D4A2B9A4143E340F082DD"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after December 31, 2021.</text></subsection></section><section id="idBF5F1A6759F74819A7AC0D00A6C9D30B"><enum>602.</enum><header>Issuance of exempt facility bonds for qualified carbon dioxide capture facilities</header><subsection id="id9346ABCC509145519B2607E3E3BC032C"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/142">Section 142</external-xref> is amended—</text><paragraph id="id85091D41ACC446A39380C6DEA00EA961"><enum>(1)</enum><text>in subsection (a)—</text><subparagraph id="idE3B39471032F4FDD9E7B75702AC91623"><enum>(A)</enum><text>in paragraph (14), by striking <quote>or</quote> at the end,</text></subparagraph><subparagraph id="id9C188699E94A418893F00A65FAB56A09"><enum>(B)</enum><text>in paragraph (15), by striking the period at the end and inserting <quote>, or</quote>, and</text></subparagraph><subparagraph id="id293479F608E34B7093E65A0E71698FC9"><enum>(C)</enum><text>by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id0C52B6DAE20048D8A271C83A1A8BA99F"><paragraph id="id985CF444B82F4627B46717C1DC248F4C"><enum>(16)</enum><text>qualified carbon dioxide capture facilities.</text></paragraph><after-quoted-block>, and</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="id53D7C804664F4DEB831CDD0E8C9F073E"><enum>(2)</enum><text>by adding at the end the following new subsection:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idB857BC0D978847978378482A9A83D836"><subsection id="idD19F3DE474174B34B33ED01317727E30"><enum>(n)</enum><header>Qualified carbon dioxide capture facility</header><paragraph id="idBEF0C111A6CE4D37A1E4F360287583F4"><enum>(1)</enum><header>In general</header><text>For purposes of subsection (a)(16), the term <term>qualified carbon dioxide capture facility</term> means—</text><subparagraph id="id6AE4956D19E14F11895126170465EDE9"><enum>(A)</enum><text>the eligible components of an industrial carbon dioxide facility, and</text></subparagraph><subparagraph id="idB4DE573E4C9F4298AB6DA097D01829F7"><enum>(B)</enum><text>a direct air capture facility (as defined in section 45Q(e)(1)).</text></subparagraph></paragraph><paragraph id="idECE362F462BE457E9225263CA8AF00DD"><enum>(2)</enum><header>Definitions</header><text>In this subsection:</text><subparagraph id="id87756B0F875F4244AE92FF3FDC88B021"><enum>(A)</enum><header>Eligible component</header><clause id="id7521DAB5A1F7409E9D4C614414127A04"><enum>(i)</enum><header>In general</header><text>The term <term>eligible component</term> means any equipment installed in an industrial carbon dioxide facility which is—</text><subclause id="id3EE16BC16BE0407D8B5EE880101064BE"><enum>(I)</enum><text>used for the purpose of capture, treatment and purification, compression, transportation, or on-site storage of carbon dioxide produced by the industrial carbon dioxide facility, or</text></subclause><subclause id="id7A820E170CCC49E291C9FA65DBCFB8F8"><enum>(II)</enum><text>integral or functionally related and subordinate to a process which converts a solid or liquid product from coal, petroleum residue, biomass, or other materials which are recovered for their energy or feedstock value into a synthesis gas composed primarily of carbon dioxide and hydrogen for direct use or subsequent chemical or physical conversion.</text></subclause></clause><clause id="idB03F59354B414AFCA49F3FAE9F180DC8"><enum>(ii)</enum><header>Definitions</header><text>For purposes of this subparagraph—</text><subclause id="id4AC1F298B5304B0EA14FCC8E5B123391"><enum>(I)</enum><header>Biomass</header><item id="id78DFB6DD98784F2187E317565AACCABB"><enum>(aa)</enum><header>In general</header><text>The term <term>biomass</term> means any—</text><subitem id="idA1F2A3021E6645B09641C426F8D275E7"><enum>(AA)</enum><text>agricultural or plant waste,</text></subitem><subitem id="id11677F9F27D448F5921671D63EFF5E5B"><enum>(BB)</enum><text>byproduct of wood or paper mill operations, including lignin in spent pulping liquors, and</text></subitem><subitem id="id092890E09CC244BBBAEA4E72B99D75B8"><enum>(CC)</enum><text>other products of forestry maintenance.</text></subitem></item><item id="idD8DCD81EFE5B46F7B79FA4F3808FDF8A"><enum>(bb)</enum><header>Exclusion</header><text>The term <term>biomass</term> does not include paper which is commonly recycled.</text></item></subclause><subclause id="idE1B3608648CB44C5852492DF7B557F46"><enum>(II)</enum><header>Coal</header><text>The term <term>coal</term> means anthracite, bituminous coal, subbituminous coal, lignite, and peat.</text></subclause></clause></subparagraph><subparagraph id="id29207774763B4E4FB1597A6450341051"><enum>(B)</enum><header>Industrial carbon dioxide facility</header><clause id="id7255CB63CD3C45A793A1FD364EE2D084"><enum>(i)</enum><header>In general</header><text>Except as provided in clause (ii), the term <term>industrial carbon dioxide facility</term> means a facility that emits carbon dioxide (including from any fugitive emissions source) that is created as a result of any of the following processes:</text><subclause id="id369E82721A9D4DDBB2EB31274D70516F"><enum>(I)</enum><text>Fuel combustion.</text></subclause><subclause id="id7B550600329A4188A24EFD0B33639CA6"><enum>(II)</enum><text>Gasification.</text></subclause><subclause id="idD2FF71F2FE1948EFA36983147C659F6B"><enum>(III)</enum><text>Bioindustrial.</text></subclause><subclause id="id3705FF18AD66449A9A8556D303F49799"><enum>(IV)</enum><text>Fermentation.</text></subclause><subclause id="id94F64CF54DF8410092C2B3F12BCEC284"><enum>(V)</enum><text>Any manufacturing industry relating to—</text><item id="id973BC70601AE49A1A224402F299096EF"><enum>(aa)</enum><text>chemicals,</text></item><item id="idE41C37778C894A94BA51E4BF00692548"><enum>(bb)</enum><text>fertilizers,</text></item><item id="idD5C71CEF65ED4A85B7AA7B8B20091579"><enum>(cc)</enum><text>glass,</text></item><item id="id096E3ACABFDB4FAE905026E304411ADB"><enum>(dd)</enum><text>steel,</text></item><item id="idE40C28A5A7334F87B85CC19DBFD07D2E"><enum>(ee)</enum><text>petroleum residues,</text></item><item id="id13A45EF03A204B9A89A9E83846C13795"><enum>(ff)</enum><text>forest products,</text></item><item id="idD12D8968F1B947418519ACE78FAAE5F9"><enum>(gg)</enum><text>agriculture, including feedlots and dairy operations, and</text></item><item id="idB600EB6291D54E78A031025D82DB67B9"><enum>(hh)</enum><text>transportation grade liquid fuels.</text></item></subclause></clause><clause id="id5A2E4FD836A442DD8497ADFFE52843AA"><enum>(ii)</enum><header>Exceptions</header><text>For purposes of clause (i), an industrial carbon dioxide facility shall not include—</text><subclause id="idD8FD7BF4E3DB459E9D8E39DFA68452A5"><enum>(I)</enum><text>any geological gas facility, or</text></subclause><subclause id="id9980C05F1E734F9EA819D5DFC5CD373D"><enum>(II)</enum><text>any air separation unit that—</text><item id="id42CEF41FBB56441A9AB974665A2EF99F"><enum>(aa)</enum><text>does not qualify as gasification equipment, or</text></item><item id="id0044BBAFB31B4D7F9DC1798DE9F6F925"><enum>(bb)</enum><text>is not a necessary component of an oxy-fuel combustion process.</text></item></subclause></clause><clause id="id6C7AAC2F7B324747BAB4527AC55B3CE1"><enum>(iii)</enum><header>Definitions</header><text>In this subparagraph—</text><subclause id="id424C69582ED3410B918599C2A1A2D914"><enum>(I)</enum><header>Petroleum residue</header><text>The term <term>petroleum residue</term> means the carbonized product of high-boiling hydrocarbon fractions obtained in petroleum processing.</text></subclause><subclause id="idBB3BF590FCED465EB1D6211A7271950B"><enum>(II)</enum><header>Geological gas facility</header><text>The term <term>geological gas facility</term> means a facility that—</text><item id="idB9AC6092AD0E4A588D5132E6C664679C"><enum>(aa)</enum><text>produces a raw product consisting of gas or mixed gas and liquid from a geological formation,</text></item><item id="id7A0A33AC1D534CF2BBB8E6BC3B18A51C"><enum>(bb)</enum><text>transports or removes impurities from such product, or</text></item><item id="id5F90229955C143B6B7AAE66EFFA3E756"><enum>(cc)</enum><text>separates such product into its constituent parts.</text></item></subclause></clause></subparagraph></paragraph><paragraph id="id36A0F6DD03C34780978EF18952180BBC"><enum>(3)</enum><header>Special rule for facilities with less than 65 percent capture and storage percentage</header><subparagraph id="idA65AAB91EA15416AB1502BD5143401BD" commented="no"><enum>(A)</enum><header>In general</header><text>An eligible component of an industrial carbon dioxide facility with a capture and storage percentage that is less than 65 percent shall only be treated as a qualified carbon dioxide facility with respect to the percentage of the costs attributable to such eligible component which is equal to the capture and storage percentage of such facility.</text></subparagraph><subparagraph id="id202824331F2C4B9AA5E81C175DA356DE"><enum>(B)</enum><header>Capture and storage percentage</header><clause id="idABDB0A21A429433FBF5C56FFA1B170DE"><enum>(i)</enum><header>In general</header><text>Subject to clause (ii), the capture and storage percentage shall be an amount, expressed as a percentage, equal to the quotient of—</text><subclause id="idFD47FCB3A97045B3BE007B0D7A47790E"><enum>(I)</enum><text>the total metric tons of carbon dioxide annually captured, transported, and injected into—</text><item id="id32D734526E444CF4A50229D676DFADD0"><enum>(aa)</enum><text>a facility for geologic storage, or</text></item><item id="id8657E01E490A422884F57130DB1CB641"><enum>(bb)</enum><text>an enhanced oil or gas recovery well followed by geologic storage, divided by</text></item></subclause><subclause id="idC7ECDC69F7944F04B4753C41BC44F3CE"><enum>(II)</enum><text>the total metric tons of carbon dioxide which would otherwise be released into the atmosphere each year as industrial emission of greenhouse gas if the eligible components were not installed in the industrial carbon dioxide facility.</text></subclause></clause><clause id="id80B1B96CE4FC462C83357ADEEE2EE947"><enum>(ii)</enum><header>Limited application of eligible components</header><text>In the case of eligible components that are designed to capture carbon dioxide solely from specific sources of emissions or portions thereof within an industrial carbon dioxide facility, the capture and storage percentage under this subparagraph shall be determined based only on such specific sources of emissions or portions thereof.</text></clause></subparagraph></paragraph><paragraph id="id9447E966D9E248B39BBCBD641BDD0DD3"><enum>(4)</enum><header>Regulations</header><text>The Secretary shall issue such regulations or other guidance as are necessary to carry out the provisions of this subsection, including methods for determining costs attributable to an eligible component for purposes of paragraph (3)(A).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="id9A40833222F1425DA0D675939C0D3158"><enum>(b)</enum><header>Volume cap</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/146">Section 146(g)(4)</external-xref> is amended by striking <quote>paragraph (11) of section 142(a) (relating to high-speed intercity rail facilities)</quote> and inserting <quote>paragraph (11) or (16) of section 142(a)</quote>.</text></subsection><subsection id="idFC7E970B95134FDBA23D49D9D26A5FB4"><enum>(c)</enum><header>Clarification of private business use</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/141">Section 141(b)(6)</external-xref> is amended by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id70CBA956FA1D4D7FB37E0AD241180F15"><subparagraph id="id4514229ECB2248B99545C51869A9323E"><enum>(C)</enum><header>Clarification relating to qualified carbon dioxide capture facilities</header><text>For purposes of this subsection, the sale of carbon dioxide produced by a qualified carbon dioxide capture facility (as defined in section 142(n)) which is owned by a governmental unit shall not constitute private business use.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id0D91F80691854B099E8A2E33574898AC"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to obligations issued after December 31, 2021. </text></subsection></section><section id="idBFFA20200C4C4F95B7C843B681E77F22"><enum>603.</enum><header>Limitation on importation of certain energy equipment and components</header><subsection id="idA8287D5BC8EA4E81A6A9412071F8569F"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The importation of an article described in subsection (b) is prohibited unless the United Nations certifies that the article is not mined or otherwise produced using forced labor or child labor.</text></subsection><subsection id="id78A29856507F4607B68BABF7E8C03F85"><enum>(b)</enum><header>Articles described</header><text>An article described in this subsection is a solar cell, a wind turbine, energy storage equipment, or a component for such equipment. </text></subsection></section><section id="idE1E702207B494FEA852A82BBBA140040"><enum>604.</enum><header>Elimination of negative effects on small businesses and certain individual taxpayers</header><subsection id="id31E0DECA369D4D43A9F24CECE7626534"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any taxable year beginning after the date of the enactment of this Act, the Secretary of the Treasury (or the Secretary's delegate) shall pay to each applicable eligible taxpayer an amount equal to the excess (if any) of—</text><paragraph id="idD21EE464E38645EA8D442265C3F86EC1"><enum>(1)</enum><text display-inline="yes-display-inline">the tax imposed under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 (determined after the application of the amendments made by this Act which are in effect for such taxable year), over</text></paragraph><paragraph id="id985A66BE740B4994803B41BDAED8F416"><enum>(2)</enum><text display-inline="yes-display-inline">the tax imposed under such chapter on such taxpayer for such taxable year (determined without regard to the amendments made by this Act).</text></paragraph></subsection><subsection id="id8136317483B24356ADEA02606E56A75C"><enum>(b)</enum><header>Applicable eligible taxpayer</header><text display-inline="yes-display-inline">For purposes of this section—</text><paragraph id="idA17481A7E6C04A6BB607BC5752273E78"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>applicable eligible taxpayer</term> means, with respect to any taxable year, any eligible taxpayer who establishes to the satisfaction of the Secretary of the Treasury (or the Secretary's delegate) that there is an excess described in subsection (a) with respect to such taxpayer.</text></paragraph><paragraph id="idF1279DCBD2A64F0DB4F38DA51877B1DD"><enum>(2)</enum><header>Eligible taxpayer</header><subparagraph id="id32C6B9ECE2244FD59218FCCC821F05F6"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>eligible taxpayer</term> means, with respect to any taxable year—</text><clause id="id68C88A51100F48C3B5635848F6AB906E"><enum>(i)</enum><text display-inline="yes-display-inline">an individual with an adjusted gross income of not more than $400,000, and</text></clause><clause id="idE1BC75F40D184A6B811ACF98E047CC6F"><enum>(ii)</enum><text display-inline="yes-display-inline">any employer that has an average number of fewer than 500 employees for the taxable year.</text></clause></subparagraph><subparagraph id="idD2384318BCED47F6BE917E5076294106"><enum>(B)</enum><header>Aggregation rules</header><text>For purposes of subparagraph (A)(ii), all persons treated as a single employer under subsection (b), (c), (m), or (o) of <external-xref legal-doc="usc" parsable-cite="usc/26/414">section 414</external-xref> of the Internal Revenue Code of 1986 shall be treated as one employer.</text></subparagraph><subparagraph id="idD37406229A4849B7ABBE60CE119530DD"><enum>(C)</enum><header>Special rule for pass-thru entities</header><text>In the case of a partnership, S corporation, or other pass-thru entity that is described in subparagraph (A)(ii)—</text><clause id="id9EE344ED7B024923BE4D75E76A7D9242"><enum>(i)</enum><text>any partner, shareholder, or other applicable individual who is not described in subparagraph (A)(i) shall be treated as an eligible taxpayer, and</text></clause><clause id="idAEE6648F60A34400A8A9AD1CF9BA79C6"><enum>(ii)</enum><text>the amount of the excess described under subsection (a) of such partner, shareholder, or other applicable individual shall be determined by only taking into account the income, gain, loss, deduction, or credit of such partnership, S corporation, or other pass-thru entity. </text></clause><continuation-text continuation-text-level="subparagraph">For purposes of the preceding sentence, the term <term>applicable individual</term> means, with respect to any pass-thru entity, any individual to whom the income, gain, loss, or deduction of such entity is attributed for tax purposes.</continuation-text></subparagraph></paragraph></subsection><subsection id="id5DE91B939B2941058B9C796437978508"><enum>(c)</enum><header>Treatment of payments</header><text>The amount of any payment under subsection (a) shall be treated as a refund of taxes due from a provision described in section 1324(b)(2) of title 31, United States Code. </text></subsection><subsection id="id54CB99AFCB774048B4CD81AD5CDD732C" commented="no" display-inline="no-display-inline"><enum>(d)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Secretary of the Treasury (or the Secretary's delegate) shall issue such regulations or other guidance as are necessary to carry out the provisions of this section. </text></subsection></section>June 21, 2021Read the second time and placed on the calendar