[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2118 Placed on Calendar Senate (PCS)]
<DOC>
Calendar No. 78
117th CONGRESS
1st Session
S. 2118
To amend the Internal Revenue Code of 1986 to provide tax incentives
for increased investment in clean energy, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 17, 2021
Mr. Wyden (for himself, Ms. Stabenow, Mr. Menendez, Mr. Carper, Mr.
Cardin, Mr. Brown, Mr. Bennet, Mr. Casey, Mr. Whitehouse, and Ms.
Cortez Masto) introduced the following bill; which was read the first
time
June 21, 2021
Read the second time and placed on the calendar
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide tax incentives
for increased investment in clean energy, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; ETC.
(a) Short Title.--This Act may be cited as the ``Clean Energy for
America Act''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
(c) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; etc.
TITLE I--INCENTIVES FOR CLEAN ELECTRICITY
Sec. 101. Clean electricity production credit.
Sec. 102. Clean electricity investment credit.
Sec. 103. Extensions, modifications, and terminations of various energy
provisions.
TITLE II--INCENTIVES FOR CLEAN TRANSPORTATION
Sec. 201. Clean fuel production credit.
Sec. 202. Transportation electrification.
Sec. 203. Credit for production of clean hydrogen.
Sec. 204. Temporary extensions of existing fuel incentives.
TITLE III--INCENTIVES FOR ENERGY EFFICIENCY
Sec. 301. Credit for new energy efficient residential buildings.
Sec. 302. Energy efficient home improvement credit.
Sec. 303. Enhancement of energy efficient commercial buildings
deduction.
Sec. 304. Enhancement of energy credit for geothermal heat pumps.
TITLE IV--TERMINATION OF CERTAIN FOSSIL FUEL PROVISIONS
Sec. 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 REQUIREMENTS
Sec. 501. Use of qualified apprentices.
TITLE VI--MISCELLANEOUS
Sec. 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.
TITLE I--INCENTIVES FOR CLEAN ELECTRICITY
SEC. 101. CLEAN ELECTRICITY PRODUCTION CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
is amended by adding at the end the following new section:
``SEC. 45U. CLEAN ELECTRICITY PRODUCTION CREDIT.
``(a) Amount of Credit.--For purposes of section 38, the clean
electricity production credit for any taxable year is an amount equal
to the product of--
``(1) subject to subsection (g)(7), 1.5 cents, multiplied
by
``(2) the kilowatt hours of electricity--
``(A) produced by the taxpayer at a qualified
facility, and
``(B)(i) sold by the taxpayer to an unrelated
person during the taxable year, or
``(ii) in the case of a qualified facility which is
equipped with a metering device which is owned and
operated by an unrelated person, sold, consumed, or
stored by the taxpayer during the taxable year.
``(b) Qualified Facility.--
``(1) In general.--
``(A) Definition.--Subject to subparagraphs (B),
(C), and (D), the term `qualified facility' means a
facility owned by the taxpayer--
``(i) which is used for the generation of
electricity,
``(ii) which is originally placed in
service after December 31, 2022,
``(iii) for which the greenhouse gas
emissions rate (as determined under paragraph
(2)) is not greater than zero, and
``(iv) in the case of any facility with a
maximum net output equal to or greater than 1
megawatt, which--
``(I) subject to subparagraph (B)
of paragraph (3), satisfies the
requirements under subparagraph (A) of
such paragraph, and
``(II) with respect to the
construction of such facility,
satisfies the requirements under
section 501 of the Clean Energy for
America Act.
``(B) 10-year production credit.--For purposes of
this section, a facility shall only be treated as a
qualified facility during the 10-year period beginning
on the date the facility was originally placed in
service.
``(C) Expansion of facility; incremental
production.--The term `qualified facility' 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:
``(i) A new unit placed in service after
December 31, 2022.
``(ii) Any efficiency improvements or
additions of capacity placed in service after
December 31, 2022.
``(D) Coordination with other credits.--The term
`qualified facility' shall not include any facility for
which a credit determined under section 45, 45J, 45Q,
48, or 48D is allowed under section 38 for the taxable
year or any prior taxable year.
``(2) Greenhouse gas emissions rate.--
``(A) In general.--For purposes of this section,
the term `greenhouse gas emissions rate' means the
amount of greenhouse gases emitted into the atmosphere
by a facility in the production of electricity,
expressed as grams of CO<INF>2</INF>e per KWh.
``(B) Fuel combustion and gasification.--In the
case of a facility which produces electricity through
combustion or gasification, the greenhouse gas
emissions rate for such facility shall be equal to the
net rate of greenhouse gases emitted into the
atmosphere by such facility (taking into account
lifecycle greenhouse gas emissions, as described in
section 211(o)(1)(H) of the Clean Air Act (42 U.S.C.
7545(o)(1)(H))) in the production of electricity,
expressed as grams of CO<INF>2</INF>e per KWh.
``(C) Establishment of emissions rates for
facilities.--
``(i) In general.--The Secretary 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.
``(ii) Publishing emissions rates.--The
Secretary shall annually publish a table that
sets forth the greenhouse gas emissions rates
for similar types or categories of facilities.
``(iii) Provisional emissions rate.--
``(I) In general.--In the case of
any facility for which an emissions
rate has not been established by the
Secretary 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.
``(II) Establishment of provisional
and final emissions rate.--In the case
of a facility for which a petition
described in subclause (I) has been
filed, the Secretary and the
Administrator of the Environmental
Protection Agency shall--
``(aa) not later than 12
months after the date on which
the petition was filed, provide
a provisional emissions rate
for such facility which a
taxpayer shall use for purposes
of this section, and
``(bb) not later than 24
months after the date on which
the petition was filed,
establish the emissions rate
for such facility.
``(D) Carbon capture and sequestration equipment.--
For purposes of this subsection, the amount of
greenhouse gases emitted into the atmosphere by a
facility in the production of electricity shall not
include any qualified carbon dioxide that is captured
by the taxpayer and--
``(i) pursuant to any regulations
established under paragraph (2) of section
45Q(f), disposed of by the taxpayer in secure
geological storage, or
``(ii) utilized by the taxpayer in a manner
described in paragraph (5) of such section.
``(3) Wage requirements.--
``(A) In general.--The requirements described in
this subparagraph with respect to any facility are that
the taxpayer shall ensure that any laborers and
mechanics employed by contractors and subcontractors
in--
``(i) the construction of such facility, or
``(ii) for any year during the period
described in paragraph (1)(B), the alteration
or repair of such facility,
shall be paid wages at rates not less than the
prevailing rates for construction, alteration, or
repair of a similar character in the locality as
determined by the Secretary of Labor, in accordance
with subchapter IV of chapter 31 of title 40, United
States Code.
``(B) Failure to satisfy wage requirements.--
``(i) In general.--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.
``(ii) Correction and penalty.--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--
``(I) makes payment to such laborer
or mechanic in an amount equal to the
sum of--
``(aa) an amount equal to
the difference between--
``(AA) the amount
of wages paid to such
laborer or mechanic
during such period, and
``(BB) the amount
of wages required to be
paid to such laborer or
mechanic pursuant to
such subparagraph
during such period,
plus
``(bb) interest on the
amount determined under item
(aa) at the underpayment rate
established under section 6621
for the period described in
such item, and
``(II) makes payment to the
Secretary of a penalty in an amount
equal to the product of--
``(aa) $5,000, multiplied
by
``(bb) 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.
``(c) Inflation Adjustment.--
``(1) In general.--In the case of a calendar year beginning
after 2021, the 1.5 cent amount in paragraph (1) of subsection
(a) shall be adjusted by multiplying such amount by the
inflation adjustment factor for the calendar year in which the
sale or use of the electricity occurs. If any amount as
increased under the preceding sentence is not a multiple of 0.1
cent, such amount shall be rounded to the nearest multiple of
0.1 cent.
``(2) Annual computation.--The Secretary shall, not later
than April 1 of each calendar year, determine and publish in
the Federal Register the inflation adjustment factor for such
calendar year in accordance with this subsection.
``(3) Inflation adjustment factor.--The term `inflation
adjustment factor' means, with respect to a calendar year, a
fraction the numerator of which is the GDP implicit price
deflator for the preceding calendar year and the denominator of
which is the GDP implicit price deflator for the calendar year
1992. The term `GDP implicit price deflator' means the most
recent revision of the implicit price deflator for the gross
domestic product as computed and published by the Department of
Commerce before March 15 of the calendar year.
``(d) Credit Phase-Out.--
``(1) In general.--If the Secretary, 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--
``(A) the amount of the credit determined under
subsection (a) without regard to this subsection,
multiplied by
``(B) the phase-out percentage under paragraph (2).
``(2) Phase-out percentage.--The phase-out percentage under
this paragraph is equal to--
``(A) for a facility the construction of which
begins during the first calendar year following the
calendar year in which the determination described in
paragraph (1) is made, 100 percent,
``(B) for a facility the construction of which
begins during the second calendar year following such
determination year, 75 percent,
``(C) for a facility the construction of which
begins during the third calendar year following such
determination year, 50 percent, and
``(D) for a facility the construction of which
begins during any calendar year subsequent to the year
described in subparagraph (C), 0 percent.
``(e) Definitions.--For purposes of this section:
``(1) CO<INF>2</INF>e per KWh.--The term `CO<INF>2</INF>e
per KWh' means, with respect to any greenhouse gas, the
equivalent carbon dioxide (as determined based on global
warming potential) per kilowatt hour of electricity produced.
``(2) Greenhouse gas.--The term `greenhouse gas' has the
same meaning given such term under section 211(o)(1)(G) of the
Clean Air Act (42 U.S.C. 7545(o)(1)(G)), as in effect on the
date of the enactment of this section.
``(3) Qualified carbon dioxide.--The term `qualified carbon
dioxide' means carbon dioxide captured from an industrial
source which--
``(A) would otherwise be released into the
atmosphere as industrial emission of greenhouse gas,
``(B) is measured at the source of capture and
verified at the point of disposal or utilization, and
``(C) is captured and disposed or utilized within
the United States (within the meaning of section
638(1)) or a possession of the United States (within
the meaning of section 638(2)).
``(f) Final Guidance.--Not later than January 1, 2023, the
Secretary 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.
``(g) Special Rules.--
``(1) Only production in the united states taken into
account.--Consumption or sales shall be taken into account
under this section only with respect to electricity the
production of which is within--
``(A) the United States (within the meaning of
section 638(1)), or
``(B) a possession of the United States (within the
meaning of section 638(2)).
``(2) Combined heat and power system property.--
``(A) In general.--For purposes of subsection (a)--
``(i) the kilowatt hours of electricity
produced by a taxpayer at a qualified facility
shall include any production in the form of
useful thermal energy by any combined heat and
power system property within such facility, and
``(ii) the amount of greenhouse gases
emitted into the atmosphere by such facility in
the production of such useful thermal energy
shall be included for purposes of determining
the greenhouse gas emissions rate for such
facility.
``(B) Combined heat and power system property.--For
purposes of this paragraph, the term `combined heat and
power system property' has the same meaning given such
term by section 48(c)(3) (without regard to
subparagraphs (A)(iv), (B), and (D) thereof).
``(C) Conversion from btu to kwh.--
``(i) In general.--For purposes of
subparagraph (A)(i), the amount of kilowatt
hours of electricity produced in the form of
useful thermal energy shall be equal to the
quotient of--
``(I) the total useful thermal
energy produced by the combined heat
and power system property within the
qualified facility, divided by
``(II) the heat rate for such
facility.
``(ii) Heat rate.--For purposes of this
subparagraph, the term `heat rate' means the
amount of energy used by the qualified facility
to generate 1 kilowatt hour of electricity,
expressed as British thermal units per net
kilowatt hour generated.
``(3) Production attributable to the taxpayer.--In the case
of a qualified facility in which more than 1 person has an
ownership interest, except to the extent provided in
regulations prescribed by the Secretary, production from the
facility shall be allocated among such persons in proportion to
their respective ownership interests in the gross sales from
such facility.
``(4) Related persons.--Persons shall be treated as related
to each other if such persons would be treated as a single
employer under the regulations prescribed under section 52(b).
In the case of a corporation which is a member of an affiliated
group of corporations filing a consolidated return, such
corporation shall be treated as selling electricity to an
unrelated person if such electricity is sold to such a person
by another member of such group.
``(5) Pass-thru in the case of estates and trusts.--Under
regulations prescribed by the Secretary, rules similar to the
rules of subsection (d) of section 52 shall apply.
``(6) Allocation of credit to patrons of agricultural
cooperative.--
``(A) Election to allocate.--
``(i) In general.--In the case of an
eligible cooperative organization, any portion
of the credit determined under subsection (a)
for the taxable year may, at the election of
the organization, be apportioned among patrons
of the organization on the basis of the amount
of business done by the patrons during the
taxable year.
``(ii) Form and effect of election.--An
election under clause (i) for any taxable year
shall be made on a timely filed return for such
year. Such election, once made, shall be
irrevocable for such taxable year. Such
election shall not take effect unless the
organization designates the apportionment as
such in a written notice mailed to its patrons
during the payment period described in section
1382(d).
``(B) Treatment of organizations and patrons.--The
amount of the credit apportioned to any patrons under
subparagraph (A)--
``(i) shall not be included in the amount
determined under subsection (a) with respect to
the organization for the taxable year, and
``(ii) shall be included in the amount
determined under subsection (a) for the first
taxable year of each patron ending on or after
the last day of the payment period (as defined
in section 1382(d)) for the taxable year of the
organization or, if earlier, for the taxable
year of each patron ending on or after the date
on which the patron receives notice from the
cooperative of the apportionment.
``(C) Special rules for decrease in credits for
taxable year.--If the amount of the credit of a
cooperative organization determined under subsection
(a) for a taxable year is less than the amount of such
credit shown on the return of the cooperative
organization for such year, an amount equal to the
excess of--
``(i) such reduction, over
``(ii) the amount not apportioned to such
patrons under subparagraph (A) for the taxable
year,
shall be treated as an increase in tax imposed by this
chapter on the organization. Such increase shall not be
treated as tax imposed by this chapter for purposes of
determining the amount of any credit under this
chapter.
``(D) Eligible cooperative defined.--For purposes
of this section, the term `eligible cooperative' means
a cooperative organization described in section 1381(a)
which is owned more than 50 percent by agricultural
producers or by entities owned by agricultural
producers. For this purpose an entity owned by an
agricultural producer is one that is more than 50
percent owned by agricultural producers.
``(7) Increase in credit in certain cases.--
``(A) Nascent clean energy technology.--
``(i) In general.--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)).
``(ii) Definition.--For purposes of this
subparagraph, the term `nascent clean energy
technology' 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.
``(iii) Market penetration level.--For
purposes of this subparagraph, the term `market
penetration level' means, with respect to any
calendar year, the amount equal to the greater
of--
``(I) the amount (expressed as a
percentage) equal to the quotient of--
``(aa) 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
``(bb) the total domestic
power sector electricity
production (expressed in
terawatt hours) for such
calendar year, or
``(II) the amount determined under
this clause for the preceding calendar
year with respect to such technology or
method.
``(B) Energy communities.--
``(i) In general.--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)).
``(ii) Energy community.--For purposes of
this subparagraph, the term `energy community'
means a census tract--
``(I) in which--
``(aa) for the calendar
year in which construction of
the qualified facility began--
``(AA) not less
than 5 percent of the
employment in such
tract is within the oil
and gas sector, or
``(BB) 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,
``(bb) after December 31,
1999, a coal mine has closed,
or
``(cc) after December 31,
2009, a coal-fired electric
generating unit has been
retired, or
``(II) which is immediately
adjacent to any census tract described
in subclause (I).
``(C) Domestic content.--
``(i) In general.--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)).
``(ii) Requirement.--
``(I) In general.--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.
``(II) Steel and iron.--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.
``(III) Manufactured product.--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.
``(iii) International agreements.--This
subparagraph shall be applied in a manner which
is consistent with the obligations of the
United States under international agreements.
``(8) Credit reduced for grants, tax-exempt bonds,
subsidized energy financing, and other credits.--Rules similar
to the rules under section 45(b)(3) shall apply for purposes of
this section.
``(h) Election for Direct Payment.--
``(1) In general.--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.
``(2) Form and effect of election.--
``(A) In general.--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--
``(i) be irrevocable with respect to such
qualified facility for the period described in
subsection (b)(1)(B), and
``(ii) 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.
``(B) Additional information.--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.
``(3) Application to partnerships and s corporations.--In
the case of a partnership or S corporation which makes an
election under paragraph (1)--
``(A) such paragraph shall apply with respect to
such partnership or corporation without regard to the
fact that no tax is imposed by chapter 1 on such
partnership or corporation, and
``(B)(i) in the case of a partnership, each
partner's distributive share of the credit determined
under subsection (a) with respect to the qualified
facility shall be deemed to be zero, and
``(ii) in the case of a S corporation, each
shareholder's pro rata share of the credit determined
under subsection (a) with respect to the qualified
facility shall be deemed to be zero.
``(4) Certain entities treated as taxpayers.--In the case
of an election under this subsection--
``(A) 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),
``(B) any mutual or cooperative electric company
described in section 501(c)(12) or section
1381(a)(2)(C), or
``(C) an Indian tribal government (as defined in
section 139E(c)(1)),
shall be treated as a taxpayer for purposes of this subsection
and determining the amount of any credit under subsection (a).
``(5) Excess payment.--
``(A) In general.--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--
``(i) the amount of the excessive payment,
plus
``(ii) an amount equal to 20 percent of the
excessive payment.
``(B) Reasonable cause.--Subparagraph (A)(ii) shall
not apply if the taxpayer demonstrates to the
satisfaction of the Secretary that the excessive
payment resulted from reasonable cause.
``(C) Definition.--For purposes of this paragraph,
the term `excessive payment' means, with respect to a
qualified facility for any taxable year, an amount
equal to the excess of--
``(i) the amount of the payment made to the
taxpayer under this subsection with respect to
such facility for such taxable year, over
``(ii) 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.
``(6) Applicable percentage.--For purposes of paragraph
(1)--
``(A) In general.--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.
``(B) Phased domestic content requirement.--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--
``(i) if construction of such facility
began before January 1, 2024, 100 percent,
``(ii) if construction of such facility
began in calendar year 2024, 90 percent,
``(iii) if construction of such facility
began in calendar year 2025, 85 percent, and
``(iv) if construction of such facility
began after December 31, 2025, 0 percent.
``(C) Exception.--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--
``(i) their application would be
inconsistent with the public interest,
``(ii) such materials and products are not
produced in the United States in sufficient and
reasonably available quantities and of a
satisfactory quality, or
``(iii) inclusion of domestic material will
increase the cost of the construction of the
qualified facility by more than 25 percent,
the applicable percentage shall be 100 percent.''.
(b) Conforming Amendments.--
(1) Section 38(b) is amended--
(A) in paragraph (32), by striking ``plus'' at the
end,
(B) in paragraph (33), by striking the period at
the end and inserting ``, plus'', and
(C) by adding at the end the following new
paragraph:
``(34) the clean electricity production credit determined
under section 45U(a).''.
(2) The table of sections for subpart D of part IV of
subchapter A of chapter 1 is amended by adding at the end the
following new item:
``Sec. 45U. Clean electricity production credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to facilities placed in service after December 31, 2022.
SEC. 102. CLEAN ELECTRICITY INVESTMENT CREDIT.
(a) Business Credit.--
(1) In general.--Subpart E of part IV of subchapter A of
chapter 1 is amended by inserting after section 48C the
following new section:
``SEC. 48D. CLEAN ELECTRICITY INVESTMENT CREDIT.
``(a) Investment Credit for Qualified Property.--
``(1) In general.--For purposes of section 46, the clean
electricity investment credit for any taxable year is--
``(A) except as provided in subparagraph (B), an
amount equal to 30 percent of the qualified investment
for such taxable year with respect to--
``(i) any qualified facility, and
``(ii) any grid improvement property, and
``(B) in the case of a qualified facility which is
a microgrid, an amount equal to the product of--
``(i) 30 percent of the qualified
investment for such taxable year with respect
to such microgrid, and
``(ii) the relative avoided emissions rate
with respect to such microgrid (as determined
under subsection (b)(3)(C)(iv)).
``(2) Increase in credit rate in certain cases.--
``(A) Disadvantaged and energy communities.--
``(i) In general.--In the case of--
``(I) 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))--
``(aa) which is placed in
service within a disadvantaged
community or an energy
community (as defined in
section 45U(g)(7)(B)(ii)), and
``(bb) has a maximum net
output of less than 5
megawatts, or
``(II) any qualified property which
is not described in subclause (I) and
is placed in service within an energy
community,
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.
``(ii) Disadvantaged community.--For
purposes of this subparagraph, the term
`disadvantaged community' has the same meaning
given the term `low-income community' in
section 45D(e)(1), as applied by substituting
`60 percent' for `80 percent' each place it
appears in subparagraph (B) thereof.
``(B) Nascent clean energy technology.--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.
``(C) Domestic content.--
``(i) In general.--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.
``(ii) Requirements.--
``(I) In general.--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--
``(aa) 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
``(bb) 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.
``(II) Steel and iron.--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.
``(III) Manufactured product.--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.
``(iii) International agreements.--This
subparagraph shall be applied in a manner which
is consistent with the obligations of the
United States under international agreements.
``(D) Maximum credit rate.--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.
``(b) Qualified Investment With Respect to Any Qualified
Facility.--
``(1) In general.--For purposes of subsection (a), the
qualified investment with respect to any qualified facility for
any taxable year is the sum of--
``(A) the basis of any qualified property placed in
service by the taxpayer during such taxable year which
is part of a qualified facility, plus
``(B) the amount of any expenditures which are--
``(i) paid or incurred by the taxpayer for
qualified interconnection property--
``(I) in connection with a
qualified facility which has a maximum
net output of not greater than 5
megawatts, and
``(II) placed in service during the
taxable year of the taxpayer, and
``(ii) properly chargeable to capital
account of the taxpayer.
``(2) Qualified property.--The term `qualified property'
means property--
``(A) which is--
``(i) tangible personal property, or
``(ii) other tangible property (not
including a building or its structural
components), but only if such property is used
as an integral part of the qualified facility,
``(B) with respect to which depreciation (or
amortization in lieu of depreciation) is allowable, and
``(C)(i) the construction, reconstruction, or
erection of which is completed by the taxpayer, or
``(ii) which is acquired by the taxpayer if the
original use of such property commences with the
taxpayer.
``(3) Qualified facility.--
``(A) In general.--For purposes of this section,
the term `qualified facility' means a facility--
``(i) which is used for the generation of
electricity,
``(ii) which is originally placed in
service after December 31, 2022,
``(iii) for which the anticipated
greenhouse gas emissions rate (as determined
under subparagraph (B)(ii)) is not greater than
zero, and
``(iv) in the case of any facility with a
maximum net output equal to or greater than 1
megawatt, which--
``(I) satisfies the requirements of
subparagraph (B)(iii), and
``(II) with respect to the
construction of such facility,
satisfies the requirements under
section 501 of the Clean Energy for
America Act.
``(B) Additional rules.--
``(i) Expansion of facility; incremental
production.--Rules similar to the rules of
section 45U(b)(1)(C) shall apply for purposes
of this paragraph.
``(ii) Greenhouse gas emissions rate.--
Rules similar to the rules of section 45U(b)(2)
shall apply for purposes of this paragraph.
``(iii) Wage requirements.--
``(I) In general.--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--
``(aa) the construction of
such facility, or
``(bb) for any year during
the 5-year period beginning on
the date the facility is
originally placed in service,
the alteration or repair of
such facility,
shall be paid wages at rates not less
than the prevailing rates for
construction, alteration, or repair of
a similar character in the locality as
determined by the Secretary of Labor,
in accordance with subchapter IV of
chapter 31 of title 40, United States
Code.
``(II) Correction and penalty
related to failure to satisfy wage
requirements.--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).
``(C) Microgrids.--
``(i) In general.--For purposes of this
section, the term `qualified facility' shall
include any microgrid which satisfies the
requirements under clauses (i), (ii), and (iv)
of subparagraph (A).
``(ii) Microgrid.--For purposes of this
section, the term `microgrid' means an
interconnected system of distributed energy
resources used for the generation of
electricity which--
``(I) is contained within a clearly
defined electrical boundary and has the
ability to operate as a single and
controllable entity,
``(II) has the ability to be
managed and isolated from the
applicable grid region in order to
withstand larger disturbances and
maintain the supply of electricity to
connected infrastructure, and
``(III) has a maximum net output of
not greater than 20 megawatts.
``(iii) Applicable grid region.--For
purposes of this subparagraph, the term
`applicable grid region' means a set of power
plants and transmission lines which are--
``(I) under the control of a single
grid operator, and
``(II) interconnected to the
microgrid.
``(iv) Relative avoided emissions rate.--
``(I) In general.--For purposes of
subsection (a)(1)(B)(ii), the relative
avoided emissions rate shall be the
amount equal to the quotient of--
``(aa) the amount equal to
the non-baseload output
emissions rate for the
applicable grid region minus
the greenhouse gas emissions
rate for the microgrid, divided
by
``(bb) the non-baseload
output emissions rate for the
applicable grid region.
``(II) Non-baseload output
emissions rate.--
``(aa) In general.--For
purposes of this subparagraph,
the term `non-baseload output
emissions rate' means the
amount of greenhouse gases
emitted into the atmosphere by
the applicable grid region for
the production of electricity
(expressed as grams of
CO<INF>2</INF>e per KWh) above
baseload.
``(bb) Determination.--The
non-baseload output emissions
rate for any applicable grid
region shall be determined by
the Administrator of the
Environmental Protection Agency
and the Secretary.
``(D) Exclusion.--The term `qualified facility'
shall not include any facility for which--
``(i) a renewable electricity production
credit determined under section 45,
``(ii) an advanced nuclear power facility
production credit determined under section 45J,
``(iii) a carbon oxide sequestration credit
determined under section 45Q,
``(iv) a clean electricity production
credit determined under section 45U, or
``(v) an energy credit determined under
section 48,
is allowed under section 38 for the taxable year or any
prior taxable year.
``(4) Qualified interconnection property.--For purposes of
this paragraph--
``(A) In general.--The term `qualified
interconnection property' means, with respect to a
qualified facility which is not a microgrid, any
tangible property--
``(i) 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,
``(ii)(I) which is constructed,
reconstructed, or erected by the taxpayer, or
``(II) for which the cost with respect to
the construction, reconstruction, or erection
of such property is paid or incurred by such
taxpayer, and
``(iii) the original use of which, pursuant
to an interconnection agreement, commences with
the utility.
``(B) Interconnection agreement.--The term
`interconnection agreement' 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.
``(C) Transmission system.--The term `transmission
system' means the facilities owned, controlled, or
operated by a utility which are used to provide
electric transmission service.
``(D) Utility.--The term `utility' means the owner
or operator of an electrical transmission or
distribution system which is subject to the regulatory
authority of--
``(i) the Federal Energy Regulatory
Commission, or
``(ii) a State public utility commission or
other appropriate State agency.
``(5) Coordination with rehabilitation credit.--The
qualified investment with respect to any qualified facility for
any taxable year shall not include that portion of the basis of
any property which is attributable to qualified rehabilitation
expenditures (as defined in section 47(c)(2)).
``(6) Definitions.--For purposes of this subsection, the
terms `CO2e per KWh' and `greenhouse gas emissions rate' have
the same meaning given such terms under section 45U(b).
``(c) Qualified Investment With Respect to Grid Improvement
Property.--
``(1) In general.--
``(A) Qualified investment.--For purposes of
subsection (a), the qualified investment with respect
to grid improvement property for any taxable year is
the basis of any grid improvement property placed in
service by the taxpayer during such taxable year.
``(B) Grid improvement property.--For purposes of
this section, the term `grid improvement property'
means any energy storage property or qualified
transmission property which--
``(i) satisfies the requirements of
paragraph (4), and
``(ii) with respect to the construction of
such property, satisfies the requirements under
section 501 of the Clean Energy for America
Act.
``(2) Energy storage property.--For purposes of this
subsection, the term `energy storage property' means property--
``(A) which receives, stores, and delivers
electricity, or energy for conversion to electricity,
provided that such electricity is--
``(i) sold by the taxpayer to an unrelated
person, or
``(ii) stored by the taxpayer for an
unrelated person,
``(B) with respect to which depreciation (or
amortization in lieu of depreciation) is allowable,
``(C)(i) the construction, reconstruction, or
erection of which is completed by the taxpayer, or
``(ii) which is acquired by the taxpayer if the
original use of such property commences with the
taxpayer,
``(D) which has a capacity of not less than 5
kilowatt hours, and
``(E) which is placed in service after December 31,
2021.
``(3) Qualified transmission property.--
``(A) In general.--For purposes of this subsection,
the term `qualified transmission property' means
property--
``(i) which is--
``(I) an overhead, submarine, or
underground transmission property which
is capable of transmitting electricity
at a voltage of not less than 275
kilovolts, and
``(II) other equipment necessary
for the operation of property described
in clause (i), including equipment
listed as `transmission plant' in the
Uniform System of Accounts for the
Federal Energy Regulatory Commission
under part 101 of subchapter C of
chapter I of title 18, Code of Federal
Regulations,
``(ii) which satisfies the requirements
under subparagraphs (B), (C), and (E) of
paragraph (2).
``(B) Exclusion.--The term `qualified transmission
property' shall not include any property used for
distribution of electricity between substations and
end-use customers.
``(4) Wage requirements.--
``(A) In general.--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--
``(i) the construction of such property, or
``(ii) for any year during the 5-year
period beginning on the date the property is
originally placed in service, the alteration or
repair of such property,
shall be paid wages at rates not less than the
prevailing rates for construction, alteration, or
repair of a similar character in the locality as
determined by the Secretary of Labor, in accordance
with subchapter IV of chapter 31 of title 40, United
States Code.
``(B) Correction and penalty related to failure to
satisfy wage requirements.--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).
``(d) Special Rules.--
``(1) Certain progress expenditure rules made applicable.--
Rules similar to the rules of subsections (c)(4) and (d) of
section 46 (as in effect on the day before the date of the
enactment of the Revenue Reconciliation Act of 1990) shall
apply for purposes of subsection (a).
``(2) Special rule for property financed by subsidized
energy financing or industrial development bonds.--Rules
similar to the rules of section 48(a)(4) shall apply for
purposes of this section.
``(e) Credit Phase-Out.--
``(1) In general.--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--
``(A) the amount of the credit determined under
subsection (a) without regard to this subsection,
multiplied by
``(B) the phase-out percentage under paragraph (2).
``(2) Phase-out percentage.--The phase-out percentage under
this paragraph is equal to--
``(A) for 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,
``(B) 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,
``(C) 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
``(D) 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.
``(f) Greenhouse Gas.--In this section, the term `greenhouse gas'
has the same meaning given such term under section 45U(e)(2).
``(g) Recapture of Credit.--For purposes of section 50, if the
Secretary 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.
``(h) Final Guidance.--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.
``(i) Election for Direct Payment.--
``(1) In general.--In the case of any qualified property or
grid improvement property placed in service during any taxable
year, the 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).
``(2) Form and effect of election.--
``(A) In general.--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--
``(i) be irrevocable with respect to the
qualified property or grid improvement property
to which such election applies, and
``(ii) 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.
``(B) Additional information.--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.
``(3) Application to partnerships and s corporations;
excess payments.--Rules similar to the rules of paragraphs (3)
and (5) of section 45U(h) shall apply for purposes of this
subsection.
``(4) Special rules for certain entities.--
``(A) Eligibility of certain property.--For
purposes of this subsection, paragraphs (3) and (4) of
section 50(b) shall not apply with respect to--
``(i) 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),
``(ii) any mutual or cooperative electric
company described in section 501(c)(12) or
section 1381(a)(2)(C), or
``(iii) an Indian tribal government (as
defined in section 139E(c)(1)).
``(B) Certain entities treated as taxpayers.--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).
``(5) Applicable percentage.--For purposes of paragraph
(1)--
``(A) In general.--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.
``(B) Phased domestic content requirement.--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--
``(i) if construction of such property
began before January 1, 2024, 100 percent,
``(ii) if construction of such property
began in calendar year 2024, 90 percent,
``(iii) if construction of such property
began in calendar year 2025, 85 percent, and
``(iv) if construction of such property
began after December 31, 2025, 0 percent.
``(C) Exception.--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--
``(i) their application would be
inconsistent with the public interest,
``(ii) such materials and products are not
produced in the United States in sufficient and
reasonably available quantities and of a
satisfactory quality, or
``(iii) inclusion of domestic material will
increase the cost of the construction of the
property by more than 25 percent,
the applicable percentage shall be 100 percent.''.
(2) Public utility property.--Section 50(d) is amended--
(A) in paragraph (2)--
(i) by adding after the first sentence the
following new sentence: ``At the election of a
taxpayer, this paragraph shall not apply to any
grid improvement property (as defined in
section 48D(c)(1)(B)), provided--'', and
(ii) by adding the following new
subparagraphs:
``(A) 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),
``(B) an election under this paragraph shall be
made separately with respect to each grid improvement
property by the due date (including extensions) of the
Federal tax return for the taxable year in which such
property is placed in service by the taxpayer, and once
made, may be revoked only with the consent of the
Secretary, and
``(C) an election shall not apply with respect to
any energy storage property (as defined in section
48D(c)(2)) if such property has a maximum capacity
equal to or less than 500 kilowatt hours.'', and
(B) by adding at the end the following:
``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.''
(3) Conforming amendments.--
(A) Section 46 is amended--
(i) by striking ``and'' at the end of
paragraph (5),
(ii) by striking the period at the end of
paragraph (6) and inserting ``, and'', and
(iii) by adding at the end the following
new paragraph:
``(7) the clean electricity investment credit.''.
(B) Section 49(a)(1)(C) is amended--
(i) by striking ``and'' at the end of
clause (iv),
(ii) by striking the period at the end of
clause (v) and inserting a comma, and
(iii) by adding at the end the following
new clauses:
``(vi) the basis of any qualified property
which is part of a qualified facility under
section 48D, and
``(vii) the basis of any energy storage
property under section 48D.''.
(C) Section 50(a)(2)(E) is amended by striking ``or
48C(b)(2)'' and inserting ``48C(b)(2), or 48D(e)''.
(D) The table of sections for subpart E of part IV
of subchapter A of chapter 1 is amended by inserting
after the item relating to section 48C the following
new item:
``48D. Clean electricity investment credit.''.
(4) Effective date.--The amendments made by this subsection
shall apply to property placed in service after December 31,
2021, under rules similar to the rules of section 48(m) of the
Internal Revenue Code of 1986 (as in effect on the day before
the date of the enactment of the Revenue Reconciliation Act of
1990).
(b) Individual Credit.--
(1) In general.--Subpart A of part IV of subchapter A of
chapter 1 is amended by inserting after section 25D the
following:
``SEC. 25E. RESIDENTIAL CLEAN ELECTRICITY CREDIT.
``(a) Allowance of Credit.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this chapter
for the taxable year an amount equal to 30 percent of the expenditures
made by the taxpayer for any qualified property and any energy storage
property which is--
``(1) for use in connection with a dwelling unit which is
located in the United States and used as a residence by the
taxpayer, and
``(2) placed in service during such taxable year.
``(b) Qualified Property.--
``(1) In general.--The term `qualified property' means
property--
``(A) which is tangible personal property,
``(B) which is used for the generation of
electricity,
``(C) which is constructed, reconstructed, erected,
or acquired by the taxpayer,
``(D) the original use of which commences with the
taxpayer,
``(E) which is originally placed in service after
December 31, 2022, and
``(F) for which the anticipated greenhouse gas
emissions rate (as determined under paragraph (2)) is
not greater than zero.
``(2) Establishment of emissions rates for qualified
property.--
``(A) In general.--The Secretary 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.
``(B) Publishing emissions rates.--The Secretary
shall publish a table that sets forth the greenhouse
gas emissions rates for similar types or categories of
qualified property.
``(c) Energy Storage Property.--The term `energy storage property'
means property which--
``(1) receives, stores, and delivers electricity or energy
for conversion to electricity which is consumed or sold by the
taxpayer,
``(2) is equipped with a metering device which is owned and
operated by an unrelated person,
``(3) has a capacity of not less than 3 kilowatt hours, and
``(4) satisfies the requirements under subparagraphs (A),
(C), (D), and (E) of subsection (b)(1).
``(d) Carryforward of Unused Credit.--
``(1) In general.--If the credit allowable under subsection
(a) exceeds the applicable tax limit, such excess shall be
carried to each of the 3 succeeding taxable years and added to
the credit allowable under subsection (a) for such succeeding
taxable year.
``(2) Limitation.--The amount of the unused credit which
may be taken into account under paragraph (1) for any taxable
year shall not exceed the amount (if any) by which the
applicable tax limit for such taxable year exceeds the sum of--
``(A) the credit allowable under subsection (a) for
which such taxable year determined without regard to
this subsection, and
``(B) the amounts which, by reason of this
subsection, are carried to such taxable year and are
attributable to taxable years before the unused credit
year.
``(3) Applicable tax limit.--For purposes of this
subsection, the term `applicable tax limit' means the
limitation imposed by section 26(a) for such taxable year
reduced by the sum of the credits allowable under this subpart
(other than this section).
``(e) Credit Phase-Out.--
``(1) In general.--If the Secretary, 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--
``(A) the amount of the credit determined under
subsection (a) without regard to this subsection,
multiplied by
``(B) the phase-out percentage under paragraph (2).
``(2) Phase-out percentage.--The phase-out percentage under
this paragraph is equal to--
``(A) for property placed in service during the
first calendar year following the calendar year in
which the determination described in paragraph (1) is
made, 100 percent,
``(B) for property placed in service during the
second calendar year following such determination year,
75 percent,
``(C) for property placed in service during the
third calendar year following such determination year,
50 percent, and
``(D) for property placed in service during any
calendar year subsequent to the year described in
subparagraph (C), 0 percent.
``(f) Special Rules.--For purposes of this section:
``(1) Labor costs.--Expenditures for labor costs properly
allocable to the onsite preparation, assembly, or original
installation of the qualified property or energy storage
property and for piping or wiring to interconnect such property
to the dwelling unit shall be taken into account for purposes
of this section.
``(2) Tenant-stockholder in cooperative housing
corporation.--In the case of an individual who is a tenant-
stockholder (as defined in section 216) in a cooperative
housing corporation (as defined in such section), such
individual shall be treated as having made his tenant-
stockholder's proportionate share (as defined in section
216(b)(3)) of any expenditures of such corporation.
``(3) Condominiums.--
``(A) In general.--In the case of an individual who
is a member of a condominium management association
with respect to a condominium which the individual
owns, such individual shall be treated as having made
the individual's proportionate share of any
expenditures of such association.
``(B) Condominium management association.--For
purposes of this paragraph, the term `condominium
management association' means an organization which
meets the requirements of paragraph (1) of section
528(c) (other than subparagraph (E) thereof) with
respect to a condominium project substantially all of
the units of which are used as residences.
``(4) Allocation in certain cases.--If less than 80 percent
of the use of a property is for nonbusiness purposes, only that
portion of the expenditures for such property which is properly
allocable to use for nonbusiness purposes shall be taken into
account.
``(5) Coordination with other credits.--The terms
`qualified property' and `energy storage property' shall not
include any property for which a credit is allowed under
section 25D for any expenditure with respect to such property.
``(g) Basis Adjustment.--For purposes of this subtitle, if a credit
is allowed under this section for any expenditures with respect to any
property, the increase in the basis of such property which would (but
for this subsection) result from such expenditures shall be reduced by
the amount of the credit so allowed.
``(h) Final Guidance.--Not later than January 1, 2023, the
Secretary 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.''.
(2) Conforming amendments.--
(A) Section 23(c)(1) is amended by striking ``and
section 25D'' and inserting ``, section 25D, and
section 25E''.
(B) Section 25(e)(1)(C) is amended by striking
``and 25D'' and inserting ``25D, and 25E''.
(C) Paragraph (1) of section 45(d) is amended by
striking ``with respect to which'' and all that follows
through the period and inserting the following: ``with
respect to which--
``(A) 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
``(B) 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.''.
(D) Section 1016(a) is amended--
(i) by redesignating paragraphs (35)
through (38) as paragraphs (36) through (39),
respectively, and
(ii) by inserting after paragraph (34) the
following:
``(35) 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,''.
(E) The table of contents for subpart A of part IV
of subchapter A of chapter 1 is amended by inserting
after the item relating to section 25D the following
new item:
``Sec. 25E. Residential clean electricity credit.''.
(3) Effective date.--The amendments made by this subsection
shall apply to property placed in service after December 31,
2022.
SEC. 103. EXTENSIONS, MODIFICATIONS, AND TERMINATIONS OF VARIOUS ENERGY
PROVISIONS.
(a) Residential Energy Efficient Property.--
(1) Elimination of phaseout.--Section 25D(g) is amended to
read as follows:
``(g) Applicable Percentage.--For purposes of subsection (a), the
applicable percentage shall be 30 percent.''.
(2) Effective date.--The amendments made by this subsection
shall apply to property placed in service after December 31,
2020.
(b) Renewable Electricity Production Credit.--
(1) Carryforward of credit.--
(A) In general.--Section 39(a) is amended by adding
at the end the following:
``(4) 25-year carryforward for renewable electricity
production credit.--In the case of the renewable electricity
production credit--
``(A) this section shall be applied separately from
the business credit (other than the renewable
electricity production credit), and
``(B) paragraph (2) shall be applied--
``(i) by substituting `26 taxable years'
for `21 taxable years' in subparagraph (A)
thereof, and
``(ii) by substituting `25 taxable years'
for `20 taxable years' in subparagraph (B)
thereof.''.
(B) Effective date.--The amendment made by this
paragraph shall apply to credit carryforwards carried
to taxable years beginning after the date of enactment
of this Act.
(2) Election for direct payment for renewable electricity
production credit.--Section 45 is amended by adding at the end
the following:
``(f) Election for Direct Payment.--
``(1) In general.--The amount of any credit determined
under subsection (a) with respect to any qualified facility for
any taxable year during the period described in subsection
(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.
``(2) Form and effect of election.--
``(A) In general.--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--
``(i) be irrevocable with respect to such
qualified facility for the period described in
subsection (a)(2)(A)(ii), and
``(ii) 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.
``(B) Additional information.--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.
``(C) Applicable date.--For purposes of this
paragraph, the term `applicable date' means--
``(i) in the case of any qualified facility
which is placed in service after December 31,
2020, and before the date of enactment of the
Clean Energy for America Act, the earlier of--
``(I) the date which is 180 days
after the date of enactment of such
Act, or
``(II) the end of the taxable year
in which such facility is placed in
service,
``(ii) in the case of any qualified
facility the construction of which begins
before the date of enactment of the Clean
Energy for America Act and which is not placed
in service before such date, the later of--
``(I) the date on which such
facility is placed in service, or
``(II) the date which is 180 days
after the date of enactment of such
Act, or
``(iii) in the case of any qualified
facility the construction of which begins on or
after the date of enactment of the Clean Energy
for America Act, the date on which such
facility is placed in service.
``(3) Application to partnerships and s corporations;
excess payment.--Rules similar to the rules of paragraphs (3)
and (5) of section 45U(h) shall apply for purposes of this
subsection.
``(4) Certain entities treated as taxpayers.--In the case
of an election under this subsection--
``(A) 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),
``(B) any mutual or cooperative electric company
described in section 501(c)(12) or section
1381(a)(2)(C), or
``(C) an Indian tribal government (as defined in
section 139E(c)(1)),
shall be treated as a taxpayer for purposes of this subsection
and determining the amount of any credit under subsection
(a).''.
(c) Termination of Allocation of Unutilized Limitation for Advanced
Nuclear Power Facilities.--
(1) In general.--Section 45J(b) is amended by striking
paragraph (5).
(2) Effective date.--The amendment made by this subsection
shall apply to facilities the construction of which begins
after the date of enactment of this Act.
(d) Modification of Credit for Carbon Dioxide Sequestration.--
(1) In general.--Section 45Q is amended--
(A) in subsection (a)(4)(B)(i), by inserting
``subject to subsection (f)(8),'' before ``used by'',
(B) in subsection (b)(1)--
(i) in subparagraph (A), by striking ``The
applicable dollar amount'' and inserting
``Except as provided in subparagraph (B), the
applicable dollar amount'',
(ii) by redesignating subparagraph (B) as
subparagraph (C),
(iii) by inserting after subparagraph (A)
the following:
``(B) Applicable dollar amount for direct air
capture facilities.--In the case of any qualified
facility described in subsection (d)(1)(A) for which
construction begins after the date of enactment of the
Clean Energy for America Act, the applicable dollar
amount shall be an amount equal to--
``(i) for any taxable year beginning in a
calendar year before 2027--
``(I) for purposes of paragraph (3)
of subsection (a), $175, and
``(II) for purposes of paragraph
(4) of such subsection, $150, and
``(ii) for any taxable year beginning in a
calendar year after 2026--
``(I) for purposes of paragraph (3)
of subsection (a), an amount equal to
the product of $175 and the inflation
adjustment factor for such calendar
year determined under section
43(b)(3)(B) for such calendar year,
determined by substituting `2025' for
`1990', and
``(II) for purposes of paragraph
(4) of such subsection, an amount equal
to the product of $150 and the
inflation adjustment factor for such
calendar year determined under section
43(b)(3)(B) for such calendar year,
determined by substituting `2025' for
`1990'.'', and
(iv) in subparagraph (C), as so
redesignated, by inserting ``or (B)'' after
``subparagraph (A)'',
(C) by striking subsection (d) and inserting the
following:
``(d) Qualified Facility.--
``(1) In general.--For purposes of this section, the term
`qualified facility' means--
``(A) any direct air capture facility, and
``(B) any industrial facility which captures--
``(i) 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
``(ii) 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.
``(2) Coordination with other credits.--The term `qualified
facility' 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.'',
(D) in subsection (f), by adding at the end the
following:
``(8) Elimination of use of carbon oxide as tertiary
injectant.--In the case of any qualified facility the
construction of which begins after December 31, 2026,
subsection (a)(4)(B)(i) shall not apply.'',
(E) by redesignating subsection (h) as subsection
(i), and
(F) by inserting after subsection (g) the
following:
``(h) Credit Phase-Out.--
``(1) In general.--
``(A) Reduction based on emissions from production
of electricity.--Subject to subparagraphs (B) and (C),
if the Secretary 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--
``(i) the amount of the credit determined
under subsection (a) without regard to this
subsection, multiplied by
``(ii) the phase-out percentage under
paragraph (2).
``(B) Other industrial facilities.--In the case of
any qualified facility described in subsection
(d)(1)(B)(ii) the construction of which begins during a
calendar year described in paragraph (2), subparagraph
(A) shall be applied by substituting `industrial
sector' for `production of electricity' each place it
appears.
``(C) Direct air capture facilities.--In the case
of any qualified facility described in subsection
(d)(1)(A), subparagraph (A) shall not apply.
``(2) Phase-out percentage.--The phase-out percentage under
this paragraph is equal to--
``(A) for a facility the construction of which
begins during the first calendar year following the
calendar year in which the determination described in
paragraph (1)(A) is made, 100 percent,
``(B) for a facility the construction of which
begins during the second calendar year following such
determination year, 75 percent,
``(C) for a facility the construction of which
begins during the third calendar year following such
determination year, 50 percent, and
``(D) for a facility the construction of which
begins during any calendar year subsequent to the year
described in subparagraph (C), 0 percent.''.
(2) Wage requirements.--Section 45Q(f), as amended by
paragraph (1)(D), is amended by adding at the end the
following:
``(9) Wage requirements.--
``(A) In general.--The term `qualified facility'
shall not include any facility which fails to satisfy--
``(i) subject to clause (ii) of
subparagraph (B), the requirements under clause
(i) of such subparagraph, and
``(ii) with respect to--
``(I) the construction of any
facility the construction of which
begins after the date of enactment of
the Clean Energy for America Act, and
``(II) the construction of any
carbon capture equipment,
the requirements under section 501 of the Clean
Energy for America Act.
``(B) Requirements.--
``(i) In general.--The requirements
described in this clause with respect to any
facility, and any carbon capture equipment
placed in service at such facility, are that
the taxpayer shall ensure that any laborers and
mechanics employed by contractors and
subcontractors in--
``(I) in the case of any facility
the construction of which begins after
the date of enactment of the Clean
Energy for America Act, the
construction of such facility, or
``(II) during the 12-year period
beginning on the date on which carbon
capture equipment is originally placed
in service at any facility (as
described in paragraphs (3)(A) and
(4)(A) of subsection (a)), the
alteration or repair of such facility
or such equipment,
shall be paid wages at rates not less than the
prevailing rates for construction, alteration,
or repair of a similar character in the
locality as determined by the Secretary of
Labor, in accordance with subchapter IV of
chapter 31 of title 40, United States Code.
``(ii) Failure to satisfy wage
requirements; correction and penalty.--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.''.
(3) Election for direct payment.--Section 45Q, as amended
by the preceding paragraphs of this subsection, is amended--
(A) by redesignating subsection (i) as subsection
(j), and
(B) by inserting after subsection (h) the
following:
``(i) Election for Direct Payment.--
``(1) In general.--The amount of any credit determined
under paragraph (3) or (4) of subsection (a) with respect to
any qualified carbon oxide for any taxable year during the
period described in paragraph (3)(A) or (4)(A) of such
subsection, respectively, shall, at the election of the
taxpayer, be treated as a payment equal to such amount which is
made by the taxpayer against the tax imposed by chapter 1 for
such taxable year.
``(2) Form and effect of election.--
``(A) In general.--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--
``(i) be irrevocable with respect to such
carbon capture equipment for the period
described in paragraph (3)(A) or (4)(A) of
subsection (a), and
``(ii) 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.
``(B) Additional information.--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.
``(C) Applicable date.--For purposes of this
paragraph, the term `applicable date' means--
``(i) 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 Clean Energy for America Act,
the earlier of--
``(I) the date which is 180 days
after the date of enactment of such
Act, or
``(II) the end of the taxable year
in which such equipment is placed in
service,
``(ii) in the case of any carbon capture
equipment the construction of which began
before the date of enactment of the Clean
Energy for America Act and which has not placed
in service before such date, the later of--
``(I) the date on which such
equipment is placed in service, or
``(II) the date which is 180 days
after the date of enactment of such
Act, and
``(iii) in the case of any carbon capture
equipment the construction of which begins on
or after the date of enactment of the Clean
Energy for America Act, the date on which such
equipment is placed in service.
``(3) Application to partnerships and s corporations;
excess payment.--Rules similar to the rules of paragraphs (3)
and (5) of section 45U(h) shall apply for purposes of this
subsection.
``(4) Certain entities treated as taxpayers.--In the case
of an election under this subsection--
``(A) 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),
``(B) any mutual or cooperative electric company
described in section 501(c)(12) or section
1381(a)(2)(C), or
``(C) an Indian tribal government (as defined in
section 139E(c)(1)),
shall be treated as a taxpayer for purposes of this subsection
and determining the amount of any credit under subsection
(a).''.
(4) Credit reduced for grants, tax-exempt bonds, subsidized
energy financing, and other credits.--Section 45Q(f), as
amended by paragraphs (1)(D) and (2), is amended by adding at
the end the following:
``(10) Credit reduced for grants, tax-exempt bonds,
subsidized energy financing, and other credits.--Rules similar
to the rules under section 45(b)(3) shall apply for purposes of
this section.''.
(5) Effective dates.--
(A) In general.--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.
(B) Elimination of use of carbon oxide as tertiary
injectant.--The amendment made by paragraph (1)(D)
shall apply to facilities the construction of which
begins after December 31, 2026.
(C) Wage requirements.--The amendments made by
paragraph (2) shall apply to facilities or equipment
the construction of which begins after December 31,
2021.
(D) Election for direct payment.--The amendments
made by paragraph (3) shall apply to carbon capture
equipment which is placed in service after December 31,
2020.
(E) Credit reduced for grants, tax-exempt bonds,
subsidized energy financing, and other credits.--The
amendments made by paragraph (4) shall apply to taxable
years beginning after the date of enactment of this
Act.
(e) Modification of Credits for Energy Property.--
(1) Termination.--
(A) Solar energy property.--Section 48(a)(3)(A)(i)
is amended by inserting ``but only with respect to
property the construction of which begins before
January 1, 2024,'' after ``swimming pool,''.
(B) Geothermal energy property.--Section
48(a)(3)(A)(iii) is amended by inserting ``with respect
to property the construction of which begins before
January 1, 2024, and'' after ``but only''.
(C) Qualified offshore wind facilities.--Section
48(a)(5)(F) is amended by striking ``January 1, 2026''
each place it appears and inserting ``January 1,
2024''.
(2) Elimination of phaseouts.--
(A) In general.--Section 48 is amended by striking
paragraphs (6) and (7).
(B) Effective date.--The amendments made by this
paragraph shall apply to property the construction of
which begins after December 31, 2020.
(3) Increase in credit rate for geothermal deposits.--
(A) In general.--Section 48(a)(2)(A)(i)(II) is
amended by striking ``paragraph (3)(A)(i)'' and
inserting ``clause (i) or (iii) of paragraph (3)(A)''.
(B) Effective date.--The amendments made by this
paragraph shall apply to property the construction of
which begins after December 31, 2020.
(4) Election for direct payment.--
(A) In general.--Section 48, as amended by
paragraph (1), is amended by adding at the end the
following:
``(e) Election for Direct Payment.--
``(1) In general.--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).
``(2) Form and effect of election.--
``(A) In general.--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--
``(i) be irrevocable with respect to the
energy property to which such election applies,
and
``(ii) 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.
``(B) Additional information.--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.
``(C) Applicable date.--For purposes of this
paragraph, the term `applicable date' means--
``(i) in the case of any energy property
which is placed in service after December 31,
2020, and before the date of enactment of the
Clean Energy for America Act, the earlier of--
``(I) the date which is 180 days
after the date of enactment of such
Act, or
``(II) the end of the taxable year
in which such property is placed in
service,
``(ii) in the case of any energy property
the construction of which began before the date
of enactment of the Clean Energy for America
Act and which has not been placed in service
before such date, the later of--
``(I) the date on which such
property is placed in service, or
``(II) the date which is 180 days
after the date of enactment of such
Act, or
``(iii) in the case of any energy property
the construction of which begins on or after
the date of enactment of the Clean Energy for
America Act, the date on which such property is
placed in service.
``(3) Application to partnerships and s corporations;
excess payment.--Rules similar to the rules of paragraphs (3)
and (5) of section 45U(h) shall apply for purposes of this
subsection.
``(4) Special rules for certain entities.--
``(A) Eligibility of certain property.--For
purposes of this subsection, paragraphs (3) and (4) of
section 50(b) shall not apply with respect to--
``(i) 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),
``(ii) any mutual or cooperative electric
company described in section 501(c)(12) or
section 1381(a)(2)(C), or
``(iii) an Indian tribal government (as
defined in section 139E(c)(1)).
``(B) Certain entities treated as taxpayers.--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).''.
(B) Effective date.--The amendment made by this
paragraph shall apply to property placed in service
after December 31, 2020.
(5) Energy credit for qualified biogas property and
qualified manure resource recovery property.--
(A) In general.--Section 48(a)(3)(A) is amended by
striking ``or'' at the end of clause (vii) and by
adding at the end the following new clauses:
``(ix) qualified biogas property, or
``(x) qualified manure resource recovery
property,''.
(B) 30-percent credit.--Section 48(a)(2)(A)(i) is
amended by striking ``and'' at the end of subclause
(IV), by striking ``and'' at the end of subclause (V),
and by adding at the end the following new subclauses:
``(VI) qualified biogas property,
and
``(VII) qualified manure resource
recovery property, and''.
(C) Definitions.--Section 48(c) is amended by
adding at the end the following new paragraphs:
``(6) Qualified biogas property.--
``(A) In general.--The term `qualified biogas
property' means property comprising a system which--
``(i) 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
``(ii) captures such gas for use as a fuel.
``(B) Inclusion of certain cleaning and
conditioning equipment.--Such term shall include any
property which cleans and conditions the gas referred
to in subparagraph (A) for use as a fuel.
``(C) Termination.--No credit shall be determined
under this section with respect to any qualified biogas
property for any period after December 31, 2023.
``(7) Qualified manure resource recovery property.--
``(A) In general.--The term `qualified manure
resource recovery property' 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.
``(B) Inclusion of certain processing equipment.--
Such term shall include--
``(i) any property which is used to recover
the nutrients referred to in subparagraph (A),
such as--
``(I) biological reactors,
``(II) crystallizers,
``(III) water filtration membrane
systems and other water purifiers,
``(IV) evaporators,
``(V) distillers,
``(VI) decanter centrifuges, and
``(VII) equipment that facilitates
the process of removing and dewatering
suspended and dissolved solids, ammonia
stripping, gasification, or ozonation,
and
``(ii) any thermal drier which treats the
nutrients recovered by the processes referred
to in subparagraph (A).
``(C) Termination.--No credit shall be determined
under this section with respect to any qualified manure
resource recovery property for any period after
December 31, 2023.''.
(D) Denial of double benefit for qualified biogas
property.--Section 45(e) is amended by adding at the
end the following new paragraph:
``(12) Coordination with energy credit for qualified biogas
property.--The term `qualified facility' 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.''.
(E) Effective date.--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).
(6) Expansion of energy credit to include clean hydrogen
production facilities.--
(A) In general.--Section 48(a)(5) is amended--
(i) in subparagraph (A)(ii), by inserting
``subject to subparagraph (G)(i),'' before
``the energy percentage'',
(ii) in subparagraph (B), by inserting ``or
45X'' after ``section 45'',
(iii) in subparagraph (C)--
(I) in clause (i), by inserting
``or, subject to subparagraph (G)(ii),
a qualified clean hydrogen production
facility (as defined in section
45X(d)(3))'' after ``section 45(d)'',
(II) in clause (ii), by inserting
``(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)'' after ``January 1,
2022'', and
(III) in clause (iii)(I), by
inserting ``or 45X'' after ``section
45'', and
(iv) by adding at the end the following:
``(G) Qualified clean hydrogen production
facilities.--
``(i) Energy percentage.--
``(I) In general.--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--
``(aa) 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),
``(bb) 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),
``(cc) 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
``(dd) 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).
``(II) Recapture.--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).
``(ii) No double benefit.--For purposes of
this paragraph, the term `qualified investment
credit facility' 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--
``(I) this section (other than
pursuant to this paragraph), or
``(II) section 45, 45J, 45Q, 45U,
45V, or 48D.''.
(B) Effective date.--The amendments made by this
paragraph shall apply to property placed in service
after December 31, 2020.
(7) Fuel cells using electromechanical processes.--
(A) In general.--Section 48(c)(1) is amended--
(i) in subparagraph (A)(i)--
(I) by inserting ``or
electromechanical'' after
``electrochemical'', and
(II) by inserting ``(1 kilowatts in
the case of a fuel cell power plant
with a linear generator assembly)''
after ``0.5 kilowatt'', and
(ii) in subparagraph (C)--
(I) by inserting ``, or linear
generator assembly,'' after ``a fuel
cell stack assembly'', and
(II) by inserting ``or
electromechanical'' after
``electrochemical''.
(B) Linear generator assembly limitation.--Section
48(c)(1) is amended by redesignating subparagraph (D)
as subparagraph (E) and by inserting after subparagraph
(C) the following new subparagraph:
``(D) Linear generator assembly.--The term `linear
generator assembly' does not include any assembly which
contains rotating parts.''.
(C) Effective date.--The amendments made by this
paragraph shall apply to property the construction of
which begins after December 31, 2020.
(f) Cost Recovery for Qualified Facilities, Qualified Property, and
Grid Improvement Property.--
(1) In general.--Section 168(e)(3)(B) is amended--
(A) in clause (vi)(III), by striking ``and'' at the
end,
(B) in clause (vii), by striking the period at the
end and inserting ``, and'', and
(C) by inserting after clause (vii) the following:
``(viii) any qualified facility (as defined
in section 45U(b)(1)(A)), any qualified
property (as defined in subsection (b)(2) of
section 48D), or any grid improvement property
(as defined in subsection (c)(1)(B) of such
section).''.
(2) Alternative system.--The table contained in section
168(g)(3)(B) is amended by inserting after the item relating to
subparagraph (B)(vii) the following new item:
``(B)(viii) ................................................ 30''.
(3) Effective date.--The amendments made by this subsection
shall apply to facilities and property placed in service after
December 31, 2022.
TITLE II--INCENTIVES FOR CLEAN TRANSPORTATION
SEC. 201. CLEAN FUEL PRODUCTION CREDIT.
(a) In General.--
(1) Allowance of credit.--Subpart D of part IV of
subchapter A of chapter 1, as amended by section 101, is
amended by adding at the end the following new section:
``SEC. 45V. CLEAN FUEL PRODUCTION CREDIT.
``(a) Amount of Credit.--
``(1) In general.--For purposes of section 38, the clean
fuel production credit for any taxable year is an amount equal
to--
``(A) for any transportation fuel sold during any
calendar year ending before January 1, 2030, an amount
equal to the product of--
``(i) $1.00 per gallon (or gallon
equivalent) with respect to any transportation
fuel which is--
``(I) produced by the taxpayer at a
qualified facility, and
``(II) sold by the taxpayer in a
manner described in paragraph (4), and
``(ii) the emissions factor for such fuel
(as determined under subsection (b)), and
``(B) 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--
``(i) produced by the taxpayer at a
qualified facility, and
``(ii) sold by the taxpayer in a manner
described in paragraph (4).
``(2) Applicable amount.--For purposes of paragraph (1)(B),
the applicable amount with respect to any transportation fuel
shall be an amount equal to $1.00 increased by 10 cents for
every kilogram of CO<INF>2</INF>e per mmBTU (or fraction
thereof) for which the emissions rate for such fuel is below
zero.
``(3) Special rate for sustainable aviation fuel.--
``(A) In general.--In the case of an transportation
fuel which is sustainable aviation fuel, paragraphs
(1)(A)(i) and (2) shall each be applied by substituting
`$2.00' for `$1.00'.
``(B) Sustainable aviation fuel.--For purposes of
this subparagraph (A), the term `sustainable aviation
fuel' means liquid fuel which is sold for use in, or
used in, an aircraft and which--
``(i) consists of synthesized hydrocarbons,
``(ii) meets the requirements of--
``(I) ASTM International Standard
D7566, or
``(II) the Fischer Tropsch
provisions of ASTM International
Standard D1655, Annex A1,
``(iii) is derived from--
``(I) biomass (as such term is
defined in section 45K(c)(3)), or
``(II) electrolysis powered by
renewable energy resources, or
``(III) carbon oxides captured from
an industrial source or from the
ambient air, and
``(iv) is not derived from palm fatty acid
distillates.
``(4) Sale.--For purposes of paragraph (1), the
transportation fuel is sold in a manner described in this
paragraph if such fuel is sold by the taxpayer to an unrelated
person--
``(A) for use by such person in the production of a
fuel mixture,
``(B) for use by such person in a trade or
business, or
``(C) who sells such fuel at retail to another
person and places such fuel in the fuel tank of such
other person.
``(5) Rounding.--If any amount determined under paragraph
(1)(A) or (2) is not a multiple of 0.1 cent, such amount shall
be rounded to the nearest multiple of 0.1 cent.
``(b) Emissions Factors.--
``(1) Emissions factor.--
``(A) Calculation.--
``(i) In general.--The emissions factor of
a transportation fuel shall be an amount equal
to the quotient of--
``(I) an amount equal to--
``(aa) the baseline
emissions rate, minus
``(bb) the emissions rate
for such fuel, divided by
``(II) the baseline emissions rate.
``(B) Baseline emissions rate.--For purposes of
this paragraph, the term `baseline emissions rate'
means--
``(i) for any calendar year ending before
January 1, 2026, 75 kilograms of
CO<INF>2</INF>e per mmBTU,
``(ii) for calendar years 2026 and 2027, 50
kilograms of CO<INF>2</INF>e per mmBTU, and
``(iii) for calendar years 2028 and 2029,
25 kilograms of CO<INF>2</INF>e per mmBTU.
``(C) Establishment of emissions rate.--The
Secretary 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 (42 U.S.C.
7545(o)(1)(H)), as in effect on the date of the
enactment of this section) for such fuels, expressed as
kilograms of CO<INF>2</INF>e per mmBTU, which a
taxpayer shall use for purposes of this section.
``(D) Rounding of emissions rate.--The Secretary
may round the emissions rates under subparagraph (B) to
the nearest multiple of 5 kilograms of CO<INF>2</INF>e
per mmBTU, except that, in the case of an emissions
rate that is less than 2.5 kilograms of CO<INF>2</INF>e
per mmBTU, the Secretary may round such rate to zero.
``(E) Provisional emissions rate.--
``(i) In general.--In the case of any
transportation fuel for which an emissions rate
has not been established by 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.
``(ii) Establishment of provisional and
final emissions rate.--In the case of a
transportation fuel for which a petition
described in clause (i) has been filed, the
Secretary and the Secretary of Energy shall--
``(I) not later than 12 months
after the date on which the petition
was filed, provide a provisional
emissions rate for such fuel which a
taxpayer shall use for purposes of this
section, and
``(II) not later than 24 months
after the date on which the petition
was filed, establish the emissions rate
for such fuel.
``(F) Rounding.--If any amount determined under
subparagraph (A) is not a multiple of 0.1, such amount
shall be rounded to the nearest multiple of 0.1.
``(2) Publishing emissions rate.--The Secretary shall
publish annually a table that sets forth the emissions rate (as
established pursuant to paragraph (1)) for similar types and
categories of transportation fuels.
``(c) Inflation Adjustment.--
``(1) In general.--In the case of calendar years beginning
after 2023, the $1.00 amount in paragraphs (1)(A)(i) and (2) of
subsection (a) 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.
``(2) Inflation adjustment factor.--For purposes of
paragraph (1), the inflation adjustment factor shall be the
inflation adjustment factor determined and published by the
Secretary pursuant to section 45U(c), determined by
substituting `calendar year 2022' for `calendar year 1992' in
paragraph (3) thereof.
``(d) Credit Phase-Out.--
``(1) In general.--If the Secretary 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).
``(2) Applicable dollar amount.--
``(A) In general.--The applicable amount for any
taxable year described in subparagraph (B) shall be an
amount equal to the product of--
``(i) the dollar amount applicable under
paragraphs (1)(A)(i) and (2) of subsection (a)
(as adjusted by subsection (c)), multiplied by
``(ii) the phase-out percentage under
subparagraph (B).
``(B) Phase-out percentage.--The phase-out
percentage under this subparagraph is equal to--
``(i) for any taxable year beginning in the
first calendar year following the calendar year
in which the determination described in
paragraph (1) is made, 100 percent,
``(ii) for any taxable year beginning in
the second calendar year following such
determination year, 75 percent,
``(iii) for any taxable year beginning in
the third calendar year following such
determination year, 50 percent, and
``(iv) for any taxable year beginning in
any calendar year subsequent to the year
described in clause (iii), 0 percent.
``(e) Definitions.--In this section:
``(1) mmBTU.--The term `mmBTU' means 1,000,000 British
thermal units.
``(2) CO<INF>2</INF>e.--The term `CO<INF>2</INF>e' means,
with respect to any greenhouse gas, the equivalent carbon
dioxide (as determined based on relative global warming
potential).
``(3) Greenhouse gas.--The term `greenhouse gas' has the
same meaning given that term under section 211(o)(1)(G) of the
Clean Air Act (42 U.S.C. 7545(o)(1)(G)), as in effect on the
date of the enactment of this section.
``(4) Qualified facility.--
``(A) In general.--The term `qualified facility'
means a facility--
``(i) used for the production of
transportation fuels, and
``(ii) which--
``(I) subject to clause (ii) of
subparagraph (B), satisfies the
requirements under clause (i) of such
subparagraph, and
``(II) with respect to the
construction of such facility,
satisfies the requirements under
section 501 of the Clean Energy for
America Act.
Clause (ii)(II) shall not apply to any facility
placed in service before January 1, 2023.
``(B) Wage requirements.--
``(i) In general.--The requirements
described in this subparagraph with respect to
any facility are that the taxpayer shall ensure
that any laborers and mechanics employed by
contractors and subcontractors in--
``(I) the construction of such
facility, or
``(II) for any year described in
subsection (a)(1) for which the credit
under this section is claimed, the
alteration or repair of such facility,
shall be paid wages at rates not less than the
prevailing rates for construction, alteration,
or repair of a similar character in the
locality as determined by the Secretary of
Labor, in accordance with subchapter IV of
chapter 31 of title 40, United States Code.
``(ii) Failure to satisfy wage
requirements; correction and penalty.--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.
``(iii) Special rule for facilities placed
in service before january 1, 2023.--In the case
of any facility placed in service before
January 1, 2023--
``(I) clause (i)(I) shall not
apply, and
``(II) clause (ii) shall be applied
without regard to the phrase `the
construction of any facility or'.
``(5) Transportation fuel.--The term `transportation fuel'
means a fuel which is suitable for use as a fuel in a highway
vehicle or aircraft.
``(f) Final Guidance.--Not later than January 1, 2023, the
Secretary 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.
``(g) Special Rules.--
``(1) Only registered production in the united states taken
into account.--
``(A) In general.--No clean fuel production credit
shall be determined under subsection (a) with respect
to any transportation fuel unless--
``(i) the taxpayer is registered as a
producer of clean fuel under section 4101 at
the time of production, and
``(ii) such fuel is produced in the United
States.
``(B) United states.--For purposes of this
paragraph, the term `United States' includes any
possession of the United States.
``(2) Production attributable to the taxpayer.--In the case
of a facility in which more than 1 person has an ownership
interest, except to the extent provided in regulations
prescribed by the Secretary, production from the facility shall
be allocated among such persons in proportion to their
respective ownership interests in the gross sales from such
facility.
``(3) Related persons.--Persons shall be treated as related
to each other if such persons would be treated as a single
employer under the regulations prescribed under section 52(b).
In the case of a corporation which is a member of an affiliated
group of corporations filing a consolidated return, such
corporation shall be treated as selling fuel to an unrelated
person if such fuel is sold to such a person by another member
of such group.
``(4) Pass-thru in the case of estates and trusts.--Under
regulations prescribed by the Secretary, rules similar to the
rules of subsection (d) of section 52 shall apply.
``(5) Allocation of credit to patrons of agricultural
cooperative.--
``(A) Election to allocate.--
``(i) In general.--In the case of an
eligible cooperative organization, any portion
of the credit determined under subsection (a)
for the taxable year may, at the election of
the organization, be apportioned among patrons
of the organization on the basis of the amount
of business done by the patrons during the
taxable year.
``(ii) Form and effect of election.--An
election under clause (i) for any taxable year
shall be made on a timely filed return for such
year. Such election, once made, shall be
irrevocable for such taxable year. Such
election shall not take effect unless the
organization designates the apportionment as
such in a written notice mailed to its patrons
during the payment period described in section
1382(d).
``(B) Treatment of organizations and patrons.--The
amount of the credit apportioned to any patrons under
subparagraph (A)--
``(i) shall not be included in the amount
determined under subsection (a) with respect to
the organization for the taxable year, and
``(ii) shall be included in the amount
determined under subsection (a) for the first
taxable year of each patron ending on or after
the last day of the payment period (as defined
in section 1382(d)) for the taxable year of the
organization or, if earlier, for the taxable
year of each patron ending on or after the date
on which the patron receives notice from the
cooperative of the apportionment.
``(C) Special rules for decrease in credits for
taxable year.--If the amount of the credit of a
cooperative organization determined under subsection
(a) for a taxable year is less than the amount of such
credit shown on the return of the cooperative
organization for such year, an amount equal to the
excess of--
``(i) such reduction, over
``(ii) the amount not apportioned to such
patrons under subparagraph (A) for the taxable
year,
shall be treated as an increase in tax imposed by this
chapter on the organization. Such increase shall not be
treated as tax imposed by this chapter for purposes of
determining the amount of any credit under this
chapter.
``(D) Eligible cooperative defined.--For purposes
of this section the term `eligible cooperative' means a
cooperative organization described in section 1381(a)
which is owned more than 50 percent by agricultural
producers or by entities owned by agricultural
producers. For this purpose an entity owned by an
agricultural producer is one that is more than 50
percent owned by agricultural producers.''.
(2) Conforming amendments.--
(A) Section 38(b), as amended by section 101, is
amended
(i) in paragraph (33), by striking ``plus''
at the end,
(ii) in paragraph (34), by striking the
period at the end and inserting ``, plus'', and
(iii) by adding at the end the following
new paragraph:
``(35) the clean fuel production credit determined under
section 45V(a).''.
(B) The table of sections for subpart D of part IV
of subchapter A of chapter 1, as amended by section
101, is amended by adding at the end the following new
item:
``Sec. 45V. Clean fuel production credit.''.
(C) Section 4101(a)(1) is amended by inserting
``every person producing a fuel eligible for the clean
fuel production credit (pursuant to section 45V),''
after ``section 6426(b)(4)(A)),''.
(3) Effective date.--The amendments made by this section
shall apply to transportation fuel produced after December 31,
2022.
(b) Sustainable Aviation Fuel Credit.--
(1) In general.--Subpart D of part IV of subchapter A of
chapter 1 is amended by inserting after section 40A the
following new section:
``SEC. 40B. SUSTAINABLE AVIATION FUEL CREDIT.
``(a) In General.--
``(1) Credit amount.--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--
``(A) the number of gallons of sustainable aviation
fuel in such mixture, multiplied by
``(B) the sum of--
``(i) $1.50, plus
``(ii) the applicable supplementary credit
amount with respect to the sustainable aviation
fuel.
``(2) Applicable supplementary credit amount.--
``(A) In general.--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.
``(B) Limitation.--In no event shall the applicable
supplementary credit amount exceed $0.50.
``(b) Qualified Mixture.--For purposes of this section--
``(1) In general.--The term `qualified mixture' means a
mixture of sustainable aviation fuel and kerosene if--
``(A) such mixture is produced in the United States
by a taxpayer, and
``(B) such mixture is--
``(i) sold for use in an aircraft, or
``(ii) used by the taxpayer in an aircraft.
``(2) Sale or use must be in trade or business, etc.--
Sustainable aviation fuel used in the production of a qualified
mixture shall be taken into account--
``(A) only if the sale or use described in
paragraph (1) is in a trade or business of the
taxpayer, and
``(B) for the taxable year in which such sale or
use occurs.
``(3) Fueling must be in the united states.--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.
``(4) United states.--For purposes of this subsection, the
term `United States' includes any possession of the United
States.
``(c) Sustainable Aviation Fuel.--For purposes of this section, the
term `sustainable aviation fuel' means liquid fuel--
``(1) which--
``(A) consists of synthesized hydrocarbons,
``(B) meets the requirements of--
``(i) ASTM International Standard D7566, or
``(ii) the Fischer Tropsch provisions of
ASTM International Standard D1655, Annex A1,
``(C) is derived from--
``(i) biomass (as such term is defined in
section 45K(c)(3)), or
``(ii) electrolysis powered by renewable
energy resources, or
``(iii) carbon oxides captured from an
industrial source or from the ambient air, and
``(D) is not derived from palm fatty acid
distillates, and
``(2) 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.
``(d) Certification Requirements.--A certification meet the
requirements of this subsection if such certification is based on a
method which--
``(1) demonstrates that the fuel conforms with--
``(A) the sustainability criteria of the Carbon
Offsetting and Reduction Scheme for International
Aviation, and
``(B) the traceability and information transmission
requirements approved by the International Civil
Aviation Organization with the agreement of the United
States,
``(2) takes into account all elements used to determine
lifecycle emissions by the International Civil Aviation
Organization, and
``(3) is approved by--
``(A) the International Civil Aviation
Organization, or
``(B) the Secretary and Administrator of the
Environmental Protection Agency.
``(e) Time Limit for Adoption of New Sustainable Aviation Fuel
Emissions Reduction Test.--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.
``(f) Certification of Sustainable Aviation Fuel.--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.
``(g) Termination.--This section shall not apply to any sale or use
after December 31, 2022.''.
(2) Credit made part of general business credit.-- Section
38(b), as amended by this Act, is amended--
(A) in paragraph (34), by striking ``plus'' at the
end,
(B) in paragraph (35), by striking the period at
the end and inserting ``, plus'', and
(C) by adding at the end the following new
paragraph:
``(36) the sustainable aviation fuel credit determined
under section 40B.''.
(3) Coordination with renewable diesel.--
(A) In general.--Section 40A(f) is amended by
striking paragraph (4).
(B) Other coordination rules.--
(i) The last sentence of section 40A(d)(1)
is amended by inserting ``or 40B'' after
``40''.
(ii) The second sentence of section
40A(f)(3) is amended by inserting ``or 40B''
after ``40''.
(C) Regulations.--Under rules prescribed by the
Secretary of the Treasury (or the Secretary's
delegate), the amount of the credit allowed under
section 40B 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).
(4) Effective date.--
(A) In general.--The amendments made by this
subsection shall apply to taxable years ending after
the date of the enactment of this Act.
(B) Special rule.--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.
SEC. 202. TRANSPORTATION ELECTRIFICATION.
(a) Alternative Motor Vehicle Credit for Fuel Cell Motor
Vehicles.--
(1) In general.--Section 30B(k) is amended--
(A) by striking paragraph (1), and
(B) by redesignating paragraphs (2) through (4) as
paragraphs (1) through (3), respectively.
(2) Phaseout.--Section 30B is amended by adding at the end
the following:
``(l) Credit Phase-out for New Qualified Fuel Cell Motor
Vehicles.--
``(1) In general.--Following a determination by the
Secretary 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--
``(A) the amount of the credit determined under
subsection (b) without regard to this subsection,
multiplied by
``(B) the phase-out percentage under paragraph (2).
``(2) Phase-out percentage.--The phase-out percentage under
this paragraph is equal to--
``(A) for a vehicle purchased during the first
calendar year following the calendar year in which the
determination described in paragraph (1) is made, 100
percent,
``(B) for a vehicle purchased during the second
calendar year following such determination year, 75
percent,
``(C) for a vehicle purchased during the third
calendar year following such determination year, 50
percent, and
``(D) for a vehicle purchased during any calendar
year subsequent to the year described in subparagraph
(C), 0 percent.''.
(3) Effective date.--The amendments made by this subsection
shall apply to property purchased after December 31, 2021.
(b) Alternative Fuel Vehicle Refueling Property Credit.--
(1) Credit phase-out.--Section 30C is amended by striking
subsection (g) and inserting the following:
``(g) Credit Phase-out.--
``(1) In general.--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--
``(A) the amount of the credit allowed under
subsection (a) (as determined without regard to this
subsection), multiplied by
``(B) the phase-out percentage under paragraph (2).
``(2) Phase-out percentage.--The phase-out percentage under
this paragraph is equal to--
``(A) for any property placed in service during the
first calendar year following the calendar year in
which the determination described in paragraph (1) is
made, 100 percent,
``(B) for any property placed in service during the
second calendar year following such determination year,
75 percent,
``(C) for any property placed in service during the
third calendar year following such determination year,
50 percent, and
``(D) for any property placed in service during any
calendar year subsequent to the year described in
subparagraph (C), 0 percent.''.
(2) Modification.--
(A) In general.--Section 30C(b) is amended--
(i) by striking ``with respect to all
qualified alternative fuel vehicle refueling
property placed in service by the taxpayer
during the taxable year at a location'' and
inserting ``with respect to any single item of
qualified alternative fuel vehicle refueling
property placed in service by the taxpayer
during the taxable year'', and
(ii) in paragraph (1), by striking
``$30,000'' and inserting ``$200,000''.
(B) Effective date.--The amendments made by this
paragraph shall apply to property placed in service
after December 31, 2021.
(3) Additional modification.--
(A) In general.--Section 30C, as amended by
paragraphs (1) and (2), is amended--
(i) in subsection (c)(2)--
(I) in subparagraph (A), by
striking ``one or more'' and all that
follows through the period and
inserting the following: ``hydrogen or
any transportation fuel for which the
clean fuel production credit is allowed
under section 45V with respect to the
production and sale of such fuel.'',
and
(II) by striking subparagraph (B)
and inserting the following:
``(B) Any mixture--
``(i) which consists of--
``(I) any transportation fuel--
``(aa) for which the clean
fuel production credit is
allowed under section 45V with
respect to the production and
sale of such fuel, and
``(bb) which is a liquid
fuel, and
``(II) any taxable fuel (as defined
in section 4083(a)(1)), and
``(ii) at least 20 percent of the volume of
which consists of fuel described in clause
(i)(I).'', and
(ii) in subsection (e), by adding at the
end the following:
``(7) Wage requirements.--
``(A) In general.--The term `qualified alternative
fuel vehicle refueling property' shall not include any
property which fails to satisfy--
``(i) subject to clause (ii) of
subparagraph (B), the requirements under clause
(i) of such subparagraph, and
``(ii) with respect to the construction of
such property, the requirements under section
501 of the Clean Energy for America Act.
``(B) Requirements.--
``(i) In general.--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
chapter 31 of title 40, United States Code.
``(ii) Correction and penalty related to
failure to satisfy wage requirements.--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.''.
(B) Effective date.--The amendments made by this
paragraph shall apply to property placed in service
after December 31, 2022.
(c) Electric Vehicles.--
(1) 2- and 3-wheeled plug-in electric vehicles.--
(A) In general.--Section 30D(g)(3)(E) is amended by
striking clause (ii) and inserting the following:
``(ii) after December 31, 2014.''.
(B) Effective date.--The amendments made by this
paragraph shall apply to vehicles acquired after
December 31, 2020.
(2) Elimination on limitation on number of vehicles
eligible for credit.--
(A) In general.--Section 30D is amended by striking
subsection (e).
(B) Effective date.--The amendment made by this
paragraph shall apply to vehicles sold after May 24,
2021.
(3) Making new qualified plug-in electric drive motor
vehicle credit refundable for individuals.--
(A) In general.--The Internal Revenue Code of 1986
is amended--
(i) by redesignating section 30D as section
36C, and
(ii) by moving section 36C (as so
redesignated) from subpart A of part IV of
subchapter A of chapter 1 to the location
immediately before section 37 in subpart C of
part IV of subchapter A of chapter 1.
(B) Conforming amendments.--
(i) Section 36C, as amended by paragraph
(2) and as redesignated and moved by
subparagraph (A), is amended--
(I) in subsection (a), by striking
``There shall be allowed'' and
inserting ``In the case of an
individual, there shall be allowed'',
(II) by striking subsection (c),
(III) by redesignating subsections
(d), (f), and (g) as subsections (c),
(d), and (e), respectively,
(IV) in subsection (d), as so
redesignated--
(aa) by striking
``(determined without regard to
subsection (c))'' each place it
appears, and
(bb) by striking paragraph
(3), and
(V) in subsection (e)(3)(B), as so
redesignated, by striking ``subsection
(d)(1)'' and inserting ``subsection
(c)(1)''.
(ii) Subsection (l)(1) of section 30B, as
added by subsection (a)(2), is amended by
striking ``section 30D(d)(1)'' and inserting
``section 36C(c)(1)''.
(iii) Paragraph (37) of section 1016(a) is
amended by striking ``section 30D(f)(1)'' and
inserting ``section 36C(d)(1)''.
(iv) Section 6501(m) is amended by striking
``30D(e)(4)'' and inserting ``36C(d)(6)''.
(v) Section 166(b)(5)(A)(ii) of title 23,
United States Code, is amended by striking
``section 30D(d)(1)'' and inserting ``section
36C(c)(1)''.
(vi) The table of sections for subpart C of
part IV of subchapter A of chapter 1 is amended
by inserting after the item relating to section
36B the following new item:
``Sec. 36C. New qualified plug-in electric drive motor vehicles.''.
(C) Effective date.--The amendments made by this
paragraph shall apply to vehicles acquired after
December 31, 2021.
(4) VIN requirement.--
(A) In general.--Section 36C(c)(1), as redesignated
and moved by paragraph (3), is amended--
(i) in subparagraph (E), by striking
``and'' at the end,
(ii) in subparagraph (F)(ii), by striking
the period at the end and inserting ``, and'',
and
(iii) by adding at the end the following:
``(G) for which the taxpayer has provided the
vehicle identification number on the return of tax for
the taxable year, unless, in accordance with applicable
rules promulgated by the Secretary of Transportation,
the vehicle is not assigned such a number.''.
(B) Mathematical or clerical error.--Section
6213(g)(2) is amended--
(i) in subparagraph (P), by striking
``and'' at the end,
(ii) in subparagraph (Q), by striking the
period at the end and inserting ``, and'', and
(iii) by adding at the end the following:
``(R) an omission of a correct vehicle
identification number required under section
36C(c)(1)(G) (relating to credit for new qualified
plug-in electric drive motor vehicles) to be included
on a return, 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).''.
(C) Effective date.--The amendments made by this
paragraph shall apply to vehicles acquired after
December 31, 2021.
(5) Phaseout.--Section 36C, as redesignated, moved, and
amended by the preceding paragraphs of this subsection, is
amended by adding at the end the following:
``(f) Credit Phase-out.--
``(1) In general.--Following a determination by the
Secretary 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--
``(A) the amount of the credit determined under
subsection (a) without regard to this subsection,
multiplied by
``(B) the phase-out percentage under paragraph (2).
``(2) Phase-out percentage.--The phase-out percentage under
this paragraph is equal to--
``(A) for a vehicle sold or acquired during the
first calendar year following the calendar year in
which the determination described in paragraph (1) is
made, 100 percent,
``(B) for a vehicle sold or acquired during the
second calendar year following such determination year,
75 percent,
``(C) for a vehicle sold or acquired during the
third calendar year following such determination year,
50 percent, and
``(D) for a vehicle sold or acquired during any
calendar year subsequent to the year described in
subparagraph (C), 0 percent.''.
(6) Credit increase.--
(A) In general.--Subsection (b) of section 36C, as
redesignated and moved by the preceding paragraphs of
this subsection, is amended--
(i) by adding at the end the following new
paragraphs:
``(4) Vehicles produced by labor organization facility.--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.
``(5) Assembly in united states.--In the case of a
vehicle--
``(A) the final assembly of which is at a facility
which is located in the United States, and
``(B) which is acquired before January 1, 2026,
the amount determined under this paragraph is $2,500.'',
(ii) by striking ``is $2,500.'' in
paragraph (2) and inserting ``is--
``(i) $2,500, in the case of a vehicle sold
before January 1, 2026, and
``(ii) $5,000, in the case of a vehicle
sold after December 31, 2025.'' and
(iii) by striking ``paragraphs (2) and
(3)'' in paragraph (1) and inserting
``paragraphs (2), (3), (4), and (5)''.
(B) Effective date.--The amendments made by this
paragraph shall apply to vehicles acquired after
December 31, 2021.
(7) Limitation based on place of assembly.--
(A) In general.--Paragraph (1) of section 36C(c),
as redesignated, moved, and amended by the preceding
paragraphs of this subsection, is further amended--
(i) by striking ``and'' at the end of
subparagraph (F)(ii),
(ii) by striking the period at the end of
subparagraph (G) and inserting ``, and'', and
(iii) by adding at the end the following
new subparagraph:
``(H) 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.''.
(B) Effective date.--The amendments made by this
paragraph shall apply to vehicles acquired after
December 31, 2021.
(8) Limitation based on manufacturer's suggested retail
price.--
(A) In general.--Paragraph (1) of section 36C(c),
as redesignated, moved, and amended by the preceding
paragraphs of this subsection, is further amended--
(i) by striking ``and'' at the end of
subparagraph (G),
(ii) by striking the period at the end of
subparagraph (H) and inserting ``, and'', and
(iii) by adding at the end the following
new subparagraph:
``(I) the manufacturer's suggested retail price for
which is not in excess of $80,000.''.
(B) Effective date.--The amendments made by this
paragraph shall apply to vehicles acquired after
December 31, 2021.
(9) Reporting requirement.--
(A) In general.--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:
``(g) Reporting Requirement.--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--
``(1) the taxpayer's name and taxpayer identification
number,
``(2) 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,
``(3) the battery capacity of the vehicle,
``(4) verification that original use of the vehicle
commences with the taxpayer, and
``(5) the maximum credit under this section allowable to
the taxpayer with respect to the vehicle.''.
(B) Effective date.--The amendments made by this
paragraph shall apply to vehicles acquired after
December 31, 2021.
(10) Limitation to non-business vehicles.--
(A) In general.--Paragraph (1) of section 36C(c),
as redesignated, moved, and amended by the preceding
paragraphs of this subsection, is further amended--
(i) by striking ``and'' at the end of
subparagraph (H),
(ii) by striking the period at the end of
subparagraph (I) and inserting ``, and'', and
(iii) by adding at the end the following
new subparagraph:
``(J) which is not of a character subject to the
allowance for depreciation.''.
(B) Effective date.--The amendments made by this
paragraph shall apply to vehicles acquired after
December 31, 2021.
(11) Qualified commercial electric vehicles.--
(A) In general.--Subpart D of part IV of subchapter
A of chapter 1, as amended by sections 101 and 201, is
amended by adding at the end the following new section:
``SEC. 45W. CREDIT FOR QUALIFIED COMMERCIAL ELECTRIC VEHICLES.
``(a) In General.--For purposes of section 38, the qualified
commercial electric vehicle credit for any taxable year is an amount
equal to the sum of the credit amounts determined under subsection (b)
with respect to each qualified commercial electric vehicle placed in
service by the taxpayer during the taxable year.
``(b) Per Vehicle Amount.--
``(1) In general.--The amount determined under this
subsection with respect to any qualified commercial electric
vehicle shall be equal to the lesser of--
``(A) 30 percent of the basis of such vehicle, or
``(B) the incremental cost of such vehicle.
``(2) Incremental cost.--
``(A) In general.--For purposes of paragraph
(1)(B), the incremental cost of any qualified
commercial electric vehicle is an amount equal to the
excess of the purchase price for such vehicle over such
price for a comparable vehicle.
``(B) Comparable vehicle.--For purposes of this
paragraph, the term `comparable vehicle' means, with
respect to any qualified commercial electric vehicle,
any vehicle which is powered solely by a gasoline or
diesel internal combustion engine and which is
comparable in weight, size, and use to such vehicle.
``(C) Comparative price.-- 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).
``(3) Exclusion.--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--
``(A) is not integral to the vehicle, or
``(B) does not contribute to improving the
efficiency or range of the electric propulsion of the
vehicle.
``(c) Qualified Commercial Electric Vehicle.--For purposes of this
section--
``(1) In general.--The term `qualified commercial electric
vehicle' means--
``(A) any vehicle which--
``(i) meets the requirements of
subparagraphs (A), (B), (C), (D), and (G) of
section 36C(c)(1),
``(ii) is primarily propelled by an
electric motor which draws electricity from a
battery which--
``(I) has a capacity of not less
than 10 kilowatt hours, and
``(II) is capable of being
recharged from an external source of
electricity, and
``(iii) is of a character subject to the
allowance for depreciation, and
``(B) any qualified electric transportation option.
``(2) Qualified electric transportation option.--
``(A) In general.--The term `qualified electric
transportation option' means any vehicle used in any
manner of transportation--
``(i) the original use of which commences
with the taxpayer,
``(ii) which is acquired for use or lease
by the taxpayer and not for resale,
``(iii) which is capable of moving
passengers, cargo, or property,
``(iv) which is powered by an integrated,
on-board electric propulsion system which--
``(I) is the primary source of
propulsion,
``(II) is capable of powering the
vehicle (including any of its
components and accessories) for not
less than \2/3\ of the maximum
operating period between recharging or
refueling of such vehicle, and
``(III) in the case of a vehicle
which derives any of its power from the
on-board combustion of a fuel, uses a
renewable fuel,
``(v) which was manufactured for sale in
commercial quantities with a reasonable
expectation of profit,
``(vi) 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
``(vii) which is of a character subject to
the allowance for depreciation.
``(B) On-board electric propulsion system.--For
purposes of this paragraph, the term `on-board electric
propulsion system' means--
``(i) 1 or more on-board traction batteries
which--
``(I) are integrated or swappable,
and
``(II) have an aggregate capacity
(as defined in subsection (d)(4)) of
not less than 10 kilowatt hours, or
``(ii) 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.
``(C) Renewable fuel.--For purposes of this
paragraph, the term `renewable fuel' means any fuel at
least 85 percent of the volume of which consists of one
or more of the following:
``(i) Ethanol.
``(ii) Biodiesel (as defined in section
40A(d)(1)).
``(iii) Advanced biofuel (as defined in
section 211(o)(1)(B) of the Clean Air Act (42
U.S.C. 7545(o)(1)(B))).
``(iv) Renewable natural gas.
``(v) Hydrogen.
``(d) Special Rules.--
``(1) In general.--Rules similar to the rules under
subsection (d) of section 36C shall apply for purposes of this
section.
``(2) Property used by tax-exempt entity.--In the case of a
vehicle the use of which is described in paragraph (3) or (4)
of section 50(b) and which is not subject to a lease, the
person who sold such vehicle to the person or entity using such
vehicle shall be treated as the taxpayer that placed such
vehicle in service, but only if such person clearly discloses
to such person or entity in a document the amount of any credit
allowable under subsection (a) with respect to such vehicle.
``(e) Credit Phase-out.--
``(1) In general.--Following a determination by the
Secretary 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--
``(A) the amount of the credit determined under
subsection (a) without regard to this subsection,
multiplied by
``(B) the phase-out percentage under paragraph (2).
``(2) Phase-out percentage.--The phase-out percentage under
this paragraph is equal to--
``(A) for a vehicle acquired during the first
calendar year following the calendar year in which the
determination described in paragraph (1) is made, 100
percent,
``(B) for a vehicle acquired during the second
calendar year following such determination year, 75
percent,
``(C) for a vehicle acquired during the third
calendar year following such determination year, 50
percent, and
``(D) for a vehicle acquired during any calendar
year subsequent to the year described in subparagraph
(C), 0 percent.
``(f) Reporting Requirement.--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--
``(1) the taxpayer's name and taxpayer identification
number,
``(2) 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,
``(3) the battery capacity of the vehicle,
``(4) verification that original use of the vehicle
commences with the taxpayer, and
``(5) the maximum credit under this section allowable to
the taxpayer with respect to the vehicle.''.
(B) Mathematical or clerical error.--Section
6213(g)(2), as amended by paragraph (4), is further
amended--
(i) in subparagraph (Q), by striking
``and'' at the end,
(ii) in subparagraph (R), by striking the
period at the end and inserting ``, and'', and
(iii) by adding at the end the following:
``(S) the inclusion of any information for purposes
of the credit under section 45W which is inconsistent
with the report provided under section 45W(f).''.
(C) Conforming amendments.--
(i) Section 38(b), as amended by section
201, is further amended by striking paragraph
(30) and inserting the following:
``(30) the qualified commercial electric vehicle credit
determined under section 45W,''.
(ii) The table of sections for subpart D of
part IV of subchapter A of chapter 1, as
amended by sections 101 and 102, is amended by
adding at the end the following new item:
``Sec. 45W. Qualified commercial electric vehicle credit.''.
(D) Effective date.--The amendments made by this
paragraph shall apply to vehicles acquired after
December 31, 2021.
(12) Certification by secretary.--No credit shall be
allowed under section 36C or section 45W 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.
SEC. 203. CREDIT FOR PRODUCTION OF CLEAN HYDROGEN.
(a) In General.--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:
``SEC. 45X. CREDIT FOR PRODUCTION OF CLEAN HYDROGEN.
``(a) Amount of Credit.--For purposes of section 38, the clean
hydrogen production credit for any taxable year is an amount equal to
the product of--
``(1) the applicable amount, multiplied by
``(2) the kilograms of qualified clean hydrogen--
``(A) 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
``(B) sold by the taxpayer to an unrelated person,
or used by the taxpayer, during the taxable year.
``(b) Applicable Amount.--
``(1) In general.--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.
``(2) Applicable percentage.--For purposes of paragraph
(1), the term `applicable percentage' means--
``(A) 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,
``(B) 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,
``(C) 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
``(D) 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.
``(3) Inflation adjustment.--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 `2020' for `1992' 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.
``(c) Credit Reduced for Grants, Tax-exempt Bonds, Subsidized
Energy Financing, and Other Credits.--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).
``(d) Definitions.--For purposes of this section--
``(1) Lifecycle greenhouse gas emissions.--For purposes of
this section, the term `lifecycle greenhouse gas emissions' has
the same meaning given such term under subparagraph (H) of
section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)(1)),
as in effect on the date of enactment of this section.
``(2) Qualified clean hydrogen.--
``(A) In general.--The term `qualified clean
hydrogen' 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.
``(B) Exclusion.--The term `qualified clean
hydrogen' shall not include any hydrogen for which a
credit is allowed for the taxable year--
``(i) under section 38 which is properly
allocable to any credit determined under this
part (other than this section), or
``(ii) under subchapter B of chapter 65 of
subtitle F.
``(3) Qualified clean hydrogen production facility.--
``(A) In general.--The term `qualified clean
hydrogen production facility' means--
``(i) a facility owned by the taxpayer--
``(I) 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
``(II) which--
``(aa) subject to clause
(ii) of subparagraph (B),
satisfies the requirements
under clause (i) of such
subparagraph, and
``(bb) with respect to the
construction of such facility,
satisfies the requirements
under section 501 of the Clean
Energy for America Act, and
``(ii) in connection with any facility
described in clause (i), any property used to
convert feedstock to hydrogen, including any
equipment or supporting facility which--
``(I) accepts or receives
feedstock,
``(II) conditions or stores
feedstock or hydrogen, or
``(III) distributes or
redistributes hydrogen.
``(B) Wage requirements.--
``(i) In general.--The requirements
described in this subparagraph with respect to
any facility are that the taxpayer shall ensure
that any laborers and mechanics employed by
contractors and subcontractors in--
``(I) the construction of such
facility, or
``(II) for any year described in
subsection (a)(2)(A) for which the
credit under this section is claimed,
the alteration or repair of such
facility,
shall be paid wages at rates not less than the
prevailing rates for construction, alteration,
or repair of a similar character in the
locality as determined by the Secretary of
Labor, in accordance with subchapter IV of
chapter 31 of title 40, United States Code.
``(ii) Failure to satisfy wage
requirements; correction and penalty.--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.
``(4) Steam-methane reforming.--The term `steam-methane
reforming' means a hydrogen production process in which high-
temperature steam is used to produce hydrogen from natural gas,
without carbon capture and sequestration.
``(e) Special Rules.--
``(1) In general.--Rules similar to the rules of paragraphs
(3) and (4) of section 45(e) shall apply for purposes of this
section.
``(2) Production in the united states.--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)).
``(f) Credit Phase-Out.--
``(1) In general.--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).
``(2) Applicable dollar amount.--
``(A) In general.--The applicable amount for any
taxable year described in subparagraph (B) shall be an
amount equal to the product of--
``(i) the dollar amount in paragraphs (1)
of subsection (b) (as adjusted by paragraph (3)
of such subsection), multiplied by
``(ii) the phase-out percentage under
subparagraph (B).
``(B) Phase-out percentage.--The phase-out
percentage under this subparagraph is equal to--
``(i) for any taxable year beginning in the
first calendar year following the calendar year
in which the determination described in
paragraph (1) is made, 100 percent,
``(ii) for any taxable year beginning in
the second calendar year following such
determination year, 75 percent,
``(iii) for any taxable year beginning in
the third calendar year following such
determination year, 50 percent, and
``(iv) for any taxable year beginning in
any calendar year subsequent to the year
described in clause (iii), 0 percent.
``(g) Guidance.--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.''.
(b) Conforming Amendments.--
(1) Section 38(b) of the Internal Revenue Code of 1986, as
amended by section 101, 201, and 202, is amended--
(A) in paragraph (35), by striking ``plus'' at the
end,
(B) in paragraph (36), by striking the period at
the end and inserting ``, plus'', and
(C) by adding at the end the following new
paragraph:
``(37) the clean hydrogen production credit determined
under section 45X(a).''.
(2) 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:
``Sec. 45X. Clean hydrogen production credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to hydrogen used or sold after December 31, 2020.
SEC. 204. TEMPORARY EXTENSIONS OF EXISTING FUEL INCENTIVES.
(a) Second Generation Biofuel Producer Credit.--
(1) In general.--Section 40(b)(6)(J)(i) is amended by
striking ``2022'' and inserting ``2023''.
(2) Effective date.--The amendments made by this subsection
shall apply to qualified second generation biofuel production
after December 31, 2021.
(b) Credit for Alternative Fuel Mixtures.--
(1) In general.--Section 6426 is amended--
(A) in subsection (d)--
(i) in paragraph (2)(D), by striking
``liquefied'', and
(ii) in paragraph (5), by striking ``2021''
and inserting ``2022'', and
(B) in subsection (e)--
(i) in paragraph (2), by inserting
``nonliquid hydrogen or'' before ``a fuel
described'', and
(ii) in paragraph (3), by striking ``2021''
and inserting ``2022''.
(2) Effective date.--The amendments made by this subsection
shall apply to fuel sold or used after December 31, 2021.
(c) Alternative Fuels.--
(1) In general.--Section 6427(e)(6)(C) is amended by
striking ``2021'' and inserting ``2022''.
(2) Effective date.--The amendments made by this subsection
shall apply to fuel sold or used after December 31, 2021.
TITLE III--INCENTIVES FOR ENERGY EFFICIENCY
SEC. 301. CREDIT FOR NEW ENERGY EFFICIENT RESIDENTIAL BUILDINGS.
(a) In General.--Section 45L is amended to read as follows:
``SEC. 45L. NEW ENERGY EFFICIENT HOME CREDIT.
``(a) Allowance of Credit.--For purposes of section 38, in the case
of an eligible contractor, the new energy efficient home credit for the
taxable year is the applicable amount for each qualified residence
which is--
``(1) constructed by the eligible contractor, and
``(2) acquired by a person from such eligible contractor
for use as a residence during the taxable year.
``(b) Applicable Amount.--
``(1) In general.--For purposes of subsection (a), the
applicable amount shall be an amount equal to--
``(A) in the case of a qualified residence
described in subclause (I) of subsection
(c)(3)(A)(iii), $2,500, and
``(B) in the case of a qualified residence
described in subclause (II) of such subsection, $5,000.
``(2) Adjustment for inflation.--
``(A) In general.--In the case of a taxable year
beginning after 2022, the dollar amounts in paragraph
(1) shall each be increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year, determined by substituting
`calendar year 2021' for `calendar year 2016'
in subparagraph (A)(ii) thereof.
``(B) Rounding.--If any amount as increased under
subparagraph (A) is not a multiple of $100, such amount
shall be rounded to the nearest multiple of $100.
``(c) Definitions.--For purposes of this section:
``(1) Construction.--The term `construction' does not
include substantial reconstruction or rehabilitation.
``(2) Eligible contractor.--The term `eligible contractor'
means--
``(A) the person who constructed the qualified
residence, or
``(B) in the case of a qualified residence which is
a manufactured home, the manufactured home producer of
such residence.
``(3) Qualified residence.--
``(A) In general.--The term `qualified residence'
means a dwelling unit--
``(i) located in the United States,
``(ii) the construction of which is
substantially completed after the date of the
enactment of this section,
``(iii) which is certified as satisfying
the applicable national program requirements
under--
``(I) 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
``(II) the Zero Energy Ready Home
program (or any successor program, as
determined by the Secretary), as in
effect on January 1 of the year in
which construction of the dwelling unit
begins, and
``(iv) 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.
``(B) Wage requirements.--
``(i) In general.--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 chapter 31 of title 40, United
States Code.
``(ii) Correction and penalty related to
failure to satisfy wage requirements.--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.
``(C) Denial of double benefit.--The term
`qualified residence' 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).
``(d) Certification.--A certification described in this section
shall be made--
``(1) by a third party which is accredited by a
certification program approved by the Secretary and the
Secretary of Energy, and
``(2) in accordance with--
``(A) 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
``(B) guidance prescribed by the Secretary and the
Secretary of Energy.
``(e) Basis Adjustment.--For purposes of this subtitle, if a credit
is allowed under this section in connection with any expenditure for
any property (other than a qualified low-income building, as described
in section 42(c)(2)), the increase in the basis of such property which
would (but for this subsection) result from such expenditure shall be
reduced by the amount of the credit so determined.
``(f) Coordination With Investment Credits.--For purposes of this
section, expenditures taken into account under section 25D or 47 shall
not be taken into account under this section.''.
(b) Effective Date.--The amendment made by this section shall apply
to any qualified residence acquired after December 31, 2021.
SEC. 302. ENERGY EFFICIENT HOME IMPROVEMENT CREDIT.
(a) In General.--Section 25C is amended to read as follows:
``SEC. 25C. ENERGY EFFICIENT HOME IMPROVEMENT CREDIT.
``(a) In General.--In the case of an individual, there shall be
allowed as a credit against the tax imposed by this chapter for the
taxable year an amount equal to the lesser of--
``(1) the sum of the applicable qualified property amounts
for any qualified property placed in service by the individual
during such taxable year, or
``(2) $1,500.
``(b) Applicable Qualified Property Amount.--
``(1) In general.--For any qualified property, the
applicable qualified property amount shall be equal to the
lesser of--
``(A) 30 percent of the amount paid or incurred by
the individual for such qualified property (including
any expenditures for labor costs properly allocable to
the onsite preparation, assembly, or original
installation of such property), or
``(B) $600.
``(2) Adjustment for inflation.--
``(A) In general.--In the case of a taxable year
beginning after 2022, 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--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year, determined by substituting
`calendar year 2021' for `calendar year 2016'
in subparagraph (A)(ii) thereof.
``(B) Rounding.--If any amount as increased under
subparagraph (A) is not a multiple of $10, such amount
shall be rounded to the nearest multiple of $10.
``(c) Qualified Property.--
``(1) In general.--The term `qualified property' means a
furnace, boiler, condensing water heater, central air
conditioning unit, heat pump, biomass property, or building
envelope improvement which--
``(A) except as provided in subparagraph (B), meets
or exceeds the requirements of--
``(i) 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
``(ii) 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,
``(B) in the case of a building envelope
improvement--
``(i) 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,
``(ii) 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
``(iii) 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,
``(C) 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,
``(D) is for use in a dwelling unit which is
located in the United States and used as a residence by
the individual, and
``(E) is reasonably expected to remain in service
in such dwelling unit for not less than 5 years.
``(2) Special rules for certain heat pumps.--
``(A) Air-source heat pumps.--In the case of any
air-source heat pump which satisfies the requirements
under paragraph (1), subsection (b)(1)(B) shall be
applied by substituting `$800' for `$600'.
``(B) Ground source heat pump.--
``(i) In general.--In the case of any
qualified geothermal heat pump property which
satisfies the requirements under subparagraphs
(C) through (E) of paragraph (1)--
``(I) subsection (b)(1)(B) shall be
applied by substituting `$10,000' for
`$600', and
``(II) subsection (a)(2) shall be
applied without regard to the
applicable qualified property amount
for such property.
``(ii) Qualified geothermal heat pump
property.--For purposes of this subparagraph,
the term `qualified geothermal heat pump
property' means any equipment which--
``(I) uses the ground or ground
water as a thermal energy source to
heat a dwelling unit located in the
United States and used as a residence
by the taxpayer or as a thermal energy
sink to cool such dwelling unit, and
``(II) meets the requirements of
the Energy Star program which are in
effect as of January 1 of the calendar
year in which the expenditure for such
equipment is made.
``(3) Special rule for insulation.--In the case of any
building envelope improvement described in subsection (d)(2)(A)
which satisfies the applicable requirements under paragraph
(1), subsection (b)(1) shall be applied without regard to `the
lesser of' and without regard to subparagraph (B).
``(d) Other Definitions.--
``(1) Biomass property.--
``(A) In general.--For purposes of this section,
the term `biomass property' means any property which--
``(i) uses the burning of biomass fuel to
heat a dwelling unit or to heat water for use
in a dwelling unit, and
``(ii) using the higher heating value, has
a thermal efficiency of not less than 75
percent.
``(B) Biomass fuel.--For purposes of subparagraph
(A), the term `biomass fuel' means any plant-derived
fuel which is available on a renewable or recurring
basis, including any such fuel which has been subject
to a densification process (such as wood pellets).
``(2) Building envelope improvement.--For purposes of this
section, the term `building envelope improvement' means--
``(A) any insulation material or system, 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
``(B) exterior doors and windows (including
skylights).
``(3) Manufactured homes included.--For purposes of this
section, the term `dwelling unit' includes a manufactured home
which conforms to Federal Manufactured Home Construction and
Safety Standards (part 3280 of title 24, Code of Federal
Regulations).
``(e) Denial of Double Benefit.--No credit shall be allowed under
subsection (a) for any amounts paid or incurred for which a deduction
or credit is allowed under any other provision of this chapter.''.
(b) Clerical Amendment.--The table of sections for subpart A of
part IV of subchapter A of chapter 1 is amended by striking the item
relating to section 25C and inserting after the item relating to
section 25B the following item:
``25C. Energy efficient home improvement credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to qualified property placed in service after December 31, 2021.
SEC. 303. ENHANCEMENT OF ENERGY EFFICIENT COMMERCIAL BUILDINGS
DEDUCTION.
(a) Maximum Amount of Deduction.--
(1) In general.--Section 179D is amended--
(A) by striking subsection (b) and inserting the
following:
``(b) Maximum Amount of Deduction.--
``(1) In general.--The deduction under subsection (a) with
respect to any building for any taxable year shall not exceed
the excess (if any) of--
``(A) the product of--
``(i) the applicable dollar value, and
``(ii) the square footage of the building,
over
``(B) the aggregate amount of the deductions under
subsection (a) with respect to the building for the 3
years immediately preceding such taxable year.
``(2) Applicable dollar value.--For purposes of paragraph
(1)(A)(i), the applicable dollar value shall be an amount equal
to $2.50 increased (but not above $5.00) by $0.10 for each
percentage point by which the total annual energy and power
costs for the building are certified to be reduced by a
percentage greater than 25 percent.'', and
(B) in subsection (d)(1)(A)--
(i) by striking ``subsection (b)'' and
inserting ``subsection (b)(2)'', and
(ii) by striking ``$1.80'' and inserting
``$2.50''.
(2) Inflation adjustment.--Section 179D(g) is amended to
read as follows:
``(g) Inflation Adjustment.--
``(1) In general.--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--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, determined by substituting
`calendar year 2021' for `calendar year 2016' in
subparagraph (A)(ii) thereof.
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.
``(2) Partial allowance.--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--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year in which
the taxable year begins, determined by substituting
`calendar year 2019' for `calendar year 2016' in
subparagraph (A)(ii) thereof.
Any increase determined under the preceding sentence which is
not a multiple of 1 cent shall be rounded to the nearest
cent.''.
(b) Definition of Energy Efficient Building Property.--
(1) Energy reduction standard.--Section 179D(c)(1)(D) is
amended by striking ``50 percent'' and inserting ``25
percent''.
(2) Inclusion of multifamily buildings.--
(A) In general.--Subparagraph (B) of section
179D(c)(1) is amended to read as follows:
``(B) which is installed on or in any commercial
building or multifamily building which is located
within the United States,''.
(B) Application of standards.--Subparagraph (D) of
section 179D(c) is amended--
(i) by striking ``meets the minimum
requirements of Reference Standard 90.1 using
methods of calculation under subsection
(d)(2)'' and inserting ``meets--
``(i) 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
``(ii) 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).''.
(C) Definitions.--Subsection (c) of section 179D is
amended by adding at the end the following new
paragraphs:
``(3) Commercial building.--The term `commercial building'
means a building with a primary use or purpose other than as
residential housing.
``(4) Multifamily building.--The term `multifamily
building' 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.''.
(3) Wage and workforce requirements.--
(A) In general.--Section 179D(c)(1), as amended by
paragraph (2), is amended--
(i) in subparagraph (C)(iii), by striking
``and'' at the end,
(ii) in subparagraph (D), by striking the
period at the end and inserting ``, and'', and
(iii) by adding at the end the following:
``(E) which satisfies the requirements--
``(i) subject to subparagraph (B) of
subsection (d)(7), under subparagraph (A) of
such subsection, and
``(ii) with respect to the construction of
such property, the requirements under section
501 of the Clean Energy for America Act.''.
(B) Requirements.--Section 179(d) is amended by
adding at the end the following new paragraph:
``(7) Wage requirements.--
``(A) In general.--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 chapter 31 of title 40, United
States Code.
``(B) Correction and penalty related to failure to
satisfy wage requirements.--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.''.
(4) Election to use different standards for retrofits.--
Section 179D is amended by redesignating subsection (h) as
subsection (i) and by inserting after subsection (g) the
following new subsection:
``(h) Alternative Method for Energy Efficient Retrofit Building
Property.--
``(1) In general.--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)--
``(A) shall be determined--
``(i) by substituting `energy usage
intensity' for `total annual energy and power
costs' in subsection (b)(2), and
``(ii) without regard to subsection
(c)(1)(D), and
``(B) 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.
``(2) Qualified building.--For purposes of this subsection,
the term `qualified building' means a commercial building or
multifamily building--
``(A) which is located in the United States,
``(B) with respect to which a qualified retrofit
plan has been established, and
``(C) which was originally placed in service not
less than 5 years before the establishment of the
qualified retrofit plan with respect to such building.
``(3) Qualified retrofit plan.--For purposes of this
subsection, the term `qualified retrofit plan' 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--
``(A) 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,
``(B) certify the status of property installed
pursuant to such plan as meeting the requirements of
subparagraphs (B) and (C) of subsection (c)(1), and
``(C) as of any date following completion of the
plan, certify--
``(i) the energy usage intensity of such
building as of such date, and
``(ii) the portfolio manager score of such
building as of such date.
``(4) Qualifying final certification.--For purposes of this
subsection, the term `qualifying final certification' means,
with respect to any qualified retrofit plan, the certification
described in paragraph (3)(C) if--
``(A) the energy usage intensity certified in such
certification is not more than 75 percent of the
baseline energy usage intensity of the building, and
``(B) the portfolio manager score certified in such
certification is not less than 50.
``(5) Other definitions.--For purposes of this subsection--
``(A) Baseline energy usage intensity.--The term
`baseline energy usage intensity' means the energy
usage intensity certified under paragraph (3)(A).
``(B) Portfolio manager score.--The term `portfolio
manager score' 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.
``(C) Energy usage intensity.--The term `energy
usage intensity' means energy usage intensity
determined in accordance with such regulations or other
guidance as the Secretary may provide and measured in
British thermal units.
``(D) Qualified professional.--The term `qualified
professional' means an individual who is a licenced
architect or a licenced engineer and meets such other
requirements as the Secretary may provide.
``(6) Certain rules not applicable.--Paragraphs (1), (5),
and (6)(B) of subsection (d) shall not apply for purposes of
this subsection.''.
(c) Other Rules.--
(1) Allocation of deduction.--Section 179D(d)(4) is amended
to read as follows:
``(4) Allocation of deduction.--
``(A) In general.--In the case of energy efficient
commercial building property installed on or in
property owned by an eligible entity, the Secretary
shall promulgate regulations to allow the allocation of
the deduction to the person primarily responsible for
designing the property in lieu of the owner of such
property, with such person to be treated as the
taxpayer for purposes of this section.
``(B) Eligible entity.--For purposes of this
paragraph, the term `eligible entity' means--
``(i) a Federal, State, or local government
or a political subdivision thereof,
``(ii) an Indian tribe (as defined in
section 45A(c)(6)), or
``(iii) an organization described in
section 501(c) and exempt from tax under
section 501(a).''.
(2) Elimination of interim rule for lighting systems.--
Section 179D, 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.
(3) Application to real estate investment trust earnings
and profits.--Section 312(k)(3)(B) is amended--
(A) by striking ``For purposes of computing the
earnings and profits of a corporation'' and inserting
the following:
``(I) In general.--For purposes of
computing the earnings and profits of a
corporation, except as provided in
clause (ii)'', and
(B) by adding at the end the following new clause:
``(II) Special rule.--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.''.
(d) Effective Date.--The amendments made by this section shall
apply to any property placed in service after December 31, 2021.
SEC. 304. ENHANCEMENT OF ENERGY CREDIT FOR GEOTHERMAL HEAT PUMPS.
(a) In General.--Section 48(a) is amended--
(1) in paragraph (2)(A)(i)(III), by striking ``paragraph
(3)(A)(ii)'' and inserting ``clause (ii) or (vii) of paragraph
(3)(A)'', and
(2) in paragraph (3)(A)(vii), by striking ``but only with
respect to property the construction of which begins before
January 1, 2024,''.
(b) Effective Date.--The amendments made by this section shall
apply to property the construction of which begins after December 31,
2021.
TITLE IV--TERMINATION OF CERTAIN FOSSIL FUEL PROVISIONS
SEC. 401. TERMINATION OF PROVISIONS RELATING TO OIL, GAS, AND OTHER
MATERIALS.
(a) Amortization of Geological and Geophysical Expenditures.--
Section 167(h) is amended by adding at the end the following new
paragraph:
``(6) Termination.--This subsection shall not apply to any
expenses paid or incurred during any taxable year beginning
after the date of the enactment of the Clean Energy for America
Act.''.
(b) Alaska Natural Gas Pipelines.--Subparagraph (B) of section
168(i)(16) is amended to read as follows:
``(B) is--
``(i)(I) placed in service after December
31, 2013, or
``(II) treated as placed in service on
January 1, 2014, if the taxpayer who places
such system in service before January 1, 2014,
elects such treatment, and
``(ii) placed in service before the end of
the calendar year in which the date of the
enactment of the Clean Energy for America Act
occurs.''.
(c) Natural Gas Gathering Line.--Paragraph (17) of section 168(i)
is amended--
(1) in subparagraph (A), by inserting ``which are placed in
service before the end of the calendar year in which the date
of the enactment of the Clean Energy for America Act occurs and
are'' after ``pipe, equipment, and appurtenances'', and
(2) in subparagraph (B), by inserting ``which are placed in
service before the end of the calendar year in which the date
of the enactment of the Clean Energy for America Act occurs and
are'' after ``pipe, equipment, and appurtenances''.
(d) Repeal of Deduction for Tertiary Injectants.--Subsection (c) of
section 193 is amended--
(1) in paragraph (1), by striking ``or'' at the end,
(2) in paragraph (2), by striking the period at the end and
inserting ``, or'', and
(3) by inserting at the end the following:
``(3) which is paid or incurred during any taxable year
beginning after the date of the enactment of the Clean Energy
for America Act.''.
(e) Intangible Drilling and Development Costs.--
(1) In general.--Subsection (c) of section 263 is amended
to read as follows:
``(c) Intangible Drilling and Development Costs in the Case of Oil
and Gas Wells and Geothermal Wells.--
``(1) In general.--Notwithstanding subsection (a), and
except as provided in subsection (i), regulations shall be
prescribed by the Secretary under this subtitle corresponding
to the regulations which granted the option to deduct as
expenses intangible drilling and development costs in the case
of oil and gas wells and which were recognized and approved by
the Congress in House Concurrent Resolution 50, Seventy-ninth
Congress. Such regulations shall also grant the option to
deduct as expenses intangible drilling and development costs in
the case of wells drilled for any geothermal deposit (as
defined in section 613(e)(2)) to the same extent and in the
same manner as such expenses are deductible in the case of oil
and gas wells. This subsection shall not apply with respect to
any costs to which any deduction is allowed under section 59(e)
or 291.
``(2) Exclusion.--
``(A) In general.--This subsection shall not apply
to amounts paid or incurred by a taxpayer with regard
to any oil or gas well in any taxable year beginning
after the date of the enactment of the Clean Energy for
America Act.
``(B) Amortization of excluded amounts.--The amount
not allowable as a deduction for any taxable year by
reason of subparagraph (A) shall be allowable as a
deduction ratably over the 60-month period beginning
with the month in which the costs are paid or incurred.
For purposes of section 1254, any deduction under this
subparagraph shall be treated as a deduction under this
subsection.''.
(2) Conforming amendments.--
(A) Section 291(b) is amended--
(i) in paragraph (1), by striking ``without
regard to this section)'' and all that follows
and inserting ``without regard to this section)
under section 616(a) or 617(a) shall be reduced
by 30 percent.'',
(ii) in paragraph (2), by striking
``section 263(c), 616(a), or 617(a)'' and
inserting ``section 616(a) or 617(a)'',
(iii) by striking paragraph (4), and
(iv) by redesignating paragraph (5) as
paragraph (4).
(B) Section 57(a) is amended by striking paragraph
(2).
(f) Percentage Depletion.--
(1) Percentage depletion of oil and gas wells, coal,
lignite, and oil shale.--
(A) In general.--Section 613 is amended--
(i) in subsection (a), by striking ``(100
percent in the case of oil and gas
properties)'',
(ii) in subsection (b)--
(I) by striking paragraph (2) and
inserting the following:
``(2) 15 percent.--If from deposits in the United States,
gold, silver, copper, and iron ore.'',
(II) in paragraph (4), by striking
``coal, lignite,'',
(III) in paragraph (5), by
inserting ``(except oil shale)'' after
``clay and shale'',
(IV) in paragraph (6)(A), by
striking ``(except shale described in
paragraph (2)(B) or (5))'' and
inserting ``(except oil shale and shale
described in paragraph (5))'', and
(V) in paragraph (7), by striking
``or'' at the end of subparagraph (B),
by striking the period at the end of
subparagraph (C) and inserting ``;
or'', and by adding at the end the
following new subparagraph:
``(D) coal, lignite, and oil shale.'',
(iii) in subsection (c)(1), striking
``other than an oil or gas well and'',
(iv) in subsection (c)(4)--
(I) by striking subparagraphs (A)
and (H),
(II) by inserting ``and'' at the
end of subparagraph (G),
(III) by redesignating
subparagraphs (B) through (G) as
subparagraphs (A) through (F),
respectively, and
(IV) by redesignating subparagraph
(I) as subparagraph (G),
(v) in subsection (d), by striking ``Except
as provided in section 613A, in the case of''
and inserting ``In the case of'', and
(vi) in subsection (e)(2), by striking ``or
section 613A''.
(B) Conforming amendments.--
(i) Section 291(a)(2) is amended by
striking ``and coal (including lignite)''.
(ii)(I) Part I of subchapter I of chapter 1
is amended by striking section 613A (and the
item relating to such section in the table of
sections).
(II) Section 45H(d) is amended by striking
``section 613A(d)(3)'' and inserting ``section
167(h)(5)(C)''.
(III) Section 57(a)(1) is amended by
striking the last sentence.
(IV) Section 167(h)(5) is amended--
(aa) by striking subparagraph
(B)(iii) and inserting the following:
``(iii) which--
``(I) engages (by itself or with a
related person) in the refining of
crude oil, and
``(II) 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.'', and
(bb) by adding at the end the
following new subparagraph:
``(C) Related person.--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
`significant ownership interest' means--
``(i) with respect to any corporation, 15
percent or more in value of the outstanding
stock of such corporation,
``(ii) with respect to a partnership, 15
percent or more interest in the profits or
capital of such partnership, and
``(iii) with respect to an estate or trust,
15 percent or more of the beneficial interests
in such estate or trust.
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.''.
(V) Section 703(a)(2) is amended by
inserting ``and'' at the end of subparagraph
(D), by striking ``, and'' at the end of
subparagraph (E) and inserting a period, and by
striking subparagraph (F).
(VI) Section 705(a) is amended by inserting
``and'' at the end of paragraph (1)(C), by
striking ``; and'' at the end of paragraph
(2)(B) and inserting a period, and by striking
paragraph (3).
(VII) Section 1202(e)(3)(D) is amended by
striking ``or 613A''.
(VIII) Section 1367(a)(2) is amended by
inserting ``and'' at the end of subparagraph
(C), by striking ``, and'' at the end of
subparagraph (D) and inserting a period, and by
striking subparagraph (E).
(iii) Section 993(c)(2)(C) is amended by
striking ``(including oil, gas, coal, or
uranium products) under section 613 or 613A''
and inserting ``(including uranium products)
under section 613''.
(iv) Section 1446(c)(2) is amended by
striking ``but the amount of such deduction
shall be determined without regard to sections
613 and 613A''.
(2) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after the date of the
enactment of this Act.
(g) Termination of Capital Gains Treatment for Royalties From
Coal.--
(1) In general.--Subsection (c) of section 631 is amended--
(A) by striking ``coal (including lignite), or iron
ore'' and inserting ``iron ore'',
(B) by striking ``coal or iron ore'' each place it
appears and inserting ``iron ore'',
(C) by striking ``iron ore or coal'' each place it
appears and inserting ``iron ore'', and
(D) by striking ``Coal or'' in the heading.
(2) Conforming amendments.--
(A) Section 272 is amended by striking ``coal or''
each place it appears.
(B) Section 1402(a)(3)(B) is amended by striking
``coal,''.
(C)(i) The heading of section 631 is amended by
striking ``, coal,''.
(ii) The item relating to section 631 in the table
of sections for part III of subchapter I of chapter 1
is amended by striking ``, coal,''.
(3) Effective date.--The amendments made by this subsection
shall apply to dispositions after the date of the enactment of
this Act.
(h) Enhanced Oil Recovery Credit.--
(1) In general.--Subpart D of part IV of subchapter A of
chapter 1 is amended by striking section 43.
(2) Conforming amendments.--
(A) Section 38(b) is amended by striking paragraph
(6).
(B)(i) Section 45Q(e) is amended by adding at the
end the following new paragraph:
``(4) Inflation adjustment factor.--The term `inflation
adjustment factor' 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 `GNP implicit price
deflator' 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.''.
(ii) Section 45Q, as amended by this Act,
is amended in subsection (b)(1) by striking
``determined under section 43(b)(3)(B) for such
calendar year, determined by substituting
`2025' for `1990''' each place it appears in
subparagraph (A)(ii) and (B)(ii) and inserting
``determined under subsection (e)(4) by
substituting `2025' for `2008'''.
(C) Section 196(c) is amended--
(i) by striking paragraph (5), and
(ii) by redesignating paragraphs (6)
through (14) as paragraphs (5) through (13),
respectively.
(3) Clerical amendment.--The table of sections for subpart
D of part IV of subchapter A of chapter 1 is amended by
striking the item relating to section 43.
(4) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after the date of the
enactment of this Act.
(i) Credit for Producing Oil and Gas From Marginal Wells.--
(1) In general.--Subpart D of part IV of subchapter A of
chapter 1 is amended by striking section 45I.
(2) Conforming amendment.--Section 38(b) is amended by
striking paragraph (19).
(3) Clerical amendment.--The table of sections for subpart
D of part IV of subchapter A of chapter 1 is amended by
striking the item relating to section 45I.
(4) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after the date of the
enactment of this Act.
(j) Qualifying Advanced Coal Project Credit.--
(1) In general.--Subpart E of part IV of subchapter A of
chapter 1 is amended by striking section 48A.
(2) Conforming amendments.--
(A) Section 46, as amended by section 102 of this
Act, is amended by striking paragraph (3) and
redesignating paragraphs (4) through (7) as paragraphs
(3) through (6), respectively.
(B) Section 49(a)(1)(C), as amended by section 102
of this Act, is amended by striking clause (iii) and
redesignating clauses (iv) through (vii) as clauses
(iii) through (vi), respectively.
(C) Section 50(a)(2)(E), as amended by section 102
of this Act, is amended by striking ``48A(b)(3),''.
(3) Clerical amendment.--The table of sections for subpart
E of part IV of subchapter A of chapter 1 is amended by
striking the item relating to section 48A.
(4) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after the date of the
enactment of this Act.
(k) Qualifying Gasification Project Credit.--
(1) In general.--Subpart E of part IV of subchapter A of
chapter 1 is amended by striking section 48B.
(2) Conforming amendments.--
(A) Section 46, as amended by this Act, is amended
by striking paragraph (3) and by redesignating
paragraphs (4), (5), and (6) as paragraphs (3), (4),
and (5), respectively.
(B) Section 49(a)(1)(C), as amended by this Act, is
amended by striking clause (iii) and redesignating
clauses (iv) through (vi) as clauses (iii) through (v).
(C) Section 50(a)(2)(E), as amended by this Act, is
amended by striking ``48B(b)(3),''.
(3) Clerical amendment.--The table of sections for subpart
E of part IV of subchapter A of chapter 1 is amended by
striking the item relating to section 48B.
(4) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after the date of the
enactment of this Act.
(l) Repeal of Passive Loss Exception for Oil and Gas Interests.--
(1) In general.--Section 469(c)(3)(A) is amended--
(A) by striking ``The term'' and inserting the
following:
``(i) Exception.--The term''.
(B) by adding at the end the following new clause:
``(ii) Termination.--Clause (i) shall not
apply to any taxable year beginning after the
date of the enactment of the Clean Energy for
America Act.''.
(2) Conforming amendment.--Section 469(c)(4) is amended by
striking ``Paragraphs (2) and (3)'' and inserting ``Paragraphs
(2) and (3)(A)(i)''.
(m) Repeal of Corporate Income Tax Exemption for Publicly Traded
Partnerships With Qualifying Income and Gains From Activities Relating
to Fossil Fuels.--
(1) In general.--Section 7704(d)(1) is amended--
(A) in subparagraph (E), by striking ``(including
pipelines transporting gas, oil, or products
thereof)'', and
(B) in the flush matter at the end, by inserting
``or any coal, gas, oil, or products thereof'' before
the period.
(2) Effective date.--The amendments made by this subsection
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 402. MODIFICATION OF CERTAIN PROVISIONS RELATING TO OIL, GAS, AND
OTHER FOSSIL FUELS.
(a) Modifications of Foreign Tax Credit Rules Applicable to Major
Integrated Oil Companies Which Are Dual Capacity Taxpayers.--
(1) In general.--Section 901 is amended by redesignating
subsection (n) as subsection (o) and by inserting after
subsection (m) the following new subsection:
``(n) Special Rules Relating to Major Integrated Oil Companies
Which Are Dual Capacity Taxpayers.--
``(1) General rule.--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--
``(A) if, for such period, the foreign country or
possession does not impose a generally applicable
income tax, or
``(B) to the extent such amount exceeds the amount
(determined in accordance with regulations) which--
``(i) is paid by such dual capacity
taxpayer pursuant to the generally applicable
income tax imposed by the country or
possession, or
``(ii) would be paid if the generally
applicable income tax imposed by the country or
possession were applicable to such dual
capacity taxpayer.
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).
``(2) Dual capacity taxpayer.--For purposes of this
subsection, the term `dual capacity taxpayer' means, with
respect to any foreign country or possession of the United
States, a person who--
``(A) is subject to a levy of such country or
possession, and
``(B) receives (or will receive) directly or
indirectly a specific economic benefit (as determined
in accordance with regulations) from such country or
possession.
``(3) Generally applicable income tax.--For purposes of
this subsection--
``(A) In general.--The term `generally applicable
income tax' 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.
``(B) Exceptions.--Such term shall not include a
tax unless it has substantial application, by its terms
and in practice, to--
``(i) persons who are not dual capacity
taxpayers, and
``(ii) persons who are citizens or
residents of the foreign country or
possession.''.
(2) Effective date.--
(A) In general.--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.
(B) Contrary treaty obligations upheld.--The
amendments made by this subsection shall not apply to
the extent contrary to any treaty obligation of the
United States.
(b) Reinstatement of Treatment of Foreign Base Company Oil Related
Income as Foreign Base Company Income.--
(1) In general.--Section 954(a) is amended by striking
``and'' at the end of paragraph (2), by striking the period at
the end of paragraph (3) and inserting ``, and'', and by adding
at the end the following new paragraph:
``(4) the foreign base company oil related income for the
taxable year (determined under subsection (g) and reduced as
provided in subsection (b)(5)).''.
(2) Foreign base company oil related income.--Section 954
is amended by inserting before subsection (h) the following new
subsection:
``(g) Foreign Base Company Oil Related Income.--For purposes of
this section--
``(1) In general.--Except as otherwise provided in this
subsection, the term `foreign base company oil related income'
means foreign oil related income (within the meaning of
paragraphs (2) and (3) of section 907(c)) other than income
derived from a source within a foreign country in connection
with--
``(A) oil or gas which was extracted from an oil or
gas well located in such foreign country, or
``(B) oil, gas, or a primary product of oil or gas
which is sold by the foreign corporation or a related
person for use or consumption within such country or is
loaded in such country on a vessel or aircraft as fuel
for such vessel or aircraft.
Such term shall not include any foreign personal holding
company income (as defined in subsection (c)).
``(2) Paragraph (1) applies only where corporation has
produced 1,000 barrels per day or more.--
``(A) In general.--The term `foreign base company
oil related income' shall not include any income of a
foreign corporation if such corporation is not a large
oil producer for the taxable year.
``(B) Large oil producer.--For purposes of
subparagraph (A), the term `large oil producer' means
any corporation if, for the taxable year or for the
preceding taxable year, the average daily production of
foreign crude oil and natural gas of the related group
which includes such corporation equaled or exceeded
1,000 barrels.
``(C) Related group.--The term `related group'
means a group consisting of the foreign corporation and
any other person who is a related person with respect
to such corporation.
``(D) Average daily production of foreign crude oil
and natural gas.--For purposes of this paragraph, the
average daily production of foreign crude oil or
natural gas of any related group for any taxable year
(and the conversion of cubic feet of natural gas into
barrels) shall be determined under rules similar to the
rules of section 613A (as in effect on the day before
the date of enactment of the Clean Energy for America
Act) except that only crude oil or natural gas from a
well located outside the United States shall be taken
into account.''.
(3) Conforming amendments.--
(A) Section 952(c)(1)(B)(iii) is amended by
redesignating subclauses (I) through (IV) as subclauses
(II) through (V), respectively, and by inserting before
subclause (II) (as redesignated) the following new
subclause:
``(I) foreign base company oil
related income,''.
(B) Section 954(b) is amended--
(i) in paragraph (4), by inserting at the
end the following new sentence: ``The preceding
sentence shall not apply to foreign base
company oil-related income described in
subsection (a)(4).'',
(ii) in paragraph (5), by striking ``and
the foreign base company services income'' and
inserting ``the foreign base company services
income, and the foreign base company oil
related income'', and
(iii) by adding at the end the following
new paragraph:
``(6) Foreign base company oil related income not treated
as another kind of base company income.--Income of a
corporation which is foreign base company oil related income
shall not be considered foreign base company income of such
corporation under paragraph (2) or (3) of subsection (a).''.
(4) Effective date.--The amendments made by this subsection
shall apply to taxable years of foreign corporations beginning
after the date of the enactment of this Act, and to taxable
years of United States shareholders with or within which such
taxable years of foreign corporations end.
(c) Inclusion of Foreign Oil and Gas Extraction Income in Tested
Income for Purpose of Determining Global Intangible Low-taxed Income.--
(1) In general.--Section 951A(c)(2)(A)(i) is amended by
inserting ``and'' at the end of subclause (III), by striking
``and'' at the end of subclause (IV) and inserting ``over'',
and by striking subclause (V).
(2) Effective date.--The amendments made by this subsection
shall apply to taxable years of foreign corporations beginning
after the date of the enactment of this Act, and to taxable
years of United States shareholders in which or with which such
tax years of foreign corporations end.
(d) Clarification of Tar Sands as Crude Oil for Excise Tax
Purposes.--
(1) In general.--Paragraph (1) of section 4612(a) is
amended to read as follows:
``(1) Crude oil.--The term `crude oil' 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).''.
(2) Technical amendment.--Paragraph (2) of section 4612(a)
is amended by striking ``from a well located''.
(3) Effective date.--The amendments made by this subsection
shall apply to oil and petroleum products received, entered,
used, or exported after December 31, 2021.
TITLE V--WORKFORCE DEVELOPMENT REQUIREMENTS
SEC. 501. USE OF QUALIFIED APPRENTICES.
(a) In General.--All contractors and subcontractors engaged in the
performance of construction, alteration, or repair work on any
applicable project shall, subject to subsection (b), ensure that not
less than 15 percent of the total labor hours of such work be performed
by qualified apprentices.
(b) Apprentice-to-journeyworker Ratio.--The requirement under
subsection (a) shall be subject to any applicable requirements for
apprentice-to-journeyworker ratios of the Department of Labor or the
applicable State apprenticeship agency.
(c) Participation.--Each contractor and subcontractor who employs 4
or more individuals to perform construction, alteration, or repair work
on an applicable project shall employ 1 or more qualified apprentices
to perform such work.
(d) Exception.--Notwithstanding any other provision in this
section, this section shall not apply in the case of a taxpayer who--
(1)(A) demonstrates a lack of availability of qualified
apprentices in the geographic area of the construction,
alteration, or repair work; and
(B) makes a good faith effort to comply with the
requirements of this section; or
(2) 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--
(A) $500, multiplied by
(B) 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.
(e) Definitions.--In this section:
(1) Applicable project.--The term ``applicable project''
means, with respect to--
(A) subsection (e)(7)(A)(ii) of section 30C of the
Internal Revenue Code of 1986,
(B) subsection (f)(9)(A)(ii) of section 45Q of such
Code,
(C) subsection (b)(1)(A)(iv)(II) of section 45U of
such Code,
(D) subsection (e)(4)(A)(ii)(II) of section 45V of
such Code,
(E) subsection (d)(3)(A)(i)(II)(bb) of section 45X
of such Code,
(F) subsection (d)(3)(A)(ii)(II) of section 48C of
such Code,
(G) subsections (b)(3)(A)(iv)(II) and (c)(1)(B)(ii)
of section 48D of such Code, and
(H) subsection (c)(1)(E)(ii) of section 179D of
such Code,
any property, equipment, or facility for which a credit is
allowed or determined under such sections.
(2) Labor hours.--The term ``labor hours''--
(A) means the total number of hours devoted to the
performance of construction, alteration, or repair work
by employees of the contractor or subcontractor; and
(B) excludes any hours worked by--
(i) foremen;
(ii) superintendents;
(iii) owners; or
(iv) persons employed in a bona fide
executive, administrative, or professional
capacity (within the meaning of those terms in
part 541 of title 29, Code of Federal
Regulations).
(3) Qualified apprentice.--The term ``qualified
apprentice'' means an individual who is an employee of the
contractor or subcontractor and who is participating in a
registered apprenticeship program, as defined in section
3131(e)(3)(B) of the Internal Revenue Code of 1986.
TITLE VI--MISCELLANEOUS
SEC. 601. ADJUSTMENT OF QUALIFYING ADVANCED ENERGY PROJECT CREDIT.
(a) In General.--Section 48C is amended--
(1) in subsection (c)(1)--
(A) in subparagraph (A)--
(i) by inserting ``, any portion of the
qualified investment of which is certified by
the Secretary under subsection (d) as eligible
for a credit under this section'' after ``means
a project'',
(ii) in clause (i)--
(I) by striking ``a manufacturing
facility for the production of'' and
inserting ``an industrial or
manufacturing facility for the
production or recycling of'',
(II) in clause (I), by inserting
``water,'' after ``sun,'',
(III) in clause (II), by striking
``an energy storage system for use with
electric or hybrid-electric motor
vehicles'' and inserting ``energy
storage systems and components'',
(IV) in clause (III), by striking
``grids to support the transmission of
intermittent sources of renewable
energy, including storage of such
energy'' and inserting ``grid
modernization equipment or
components'',
(V) in subclause (IV), by striking
``and sequester carbon dioxide
emissions'' and inserting ``, remove,
use, or sequester carbon oxide
emissions'',
(VI) by striking subclause (V) and
inserting the following:
``(V) equipment designed to refine,
electrolyze, or blend any fuel,
chemical, or product which is--
``(aa) renewable, or
``(bb) low-carbon and low-
emission,'',
(VII) by striking subclause (VI),
(VIII) by redesignating subclause
(VII) as subclause (IX),
(IX) by inserting after subclause
(V) the following new subclauses:
``(VI) property designed to produce
energy conservation technologies
(including residential, commercial, and
industrial applications),
``(VII) light-, medium-, or heavy-
duty electric or fuel cell vehicles, as
well as--
``(aa) technologies,
components, or materials for
such vehicles, and
``(bb) associated charging
or refueling infrastructure,
``(VIII) 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'', and
(X) in subclause (IX), as so
redesignated, by striking ``and'' at
the end and inserting ``or'', and
(iii) by striking clause (ii) and inserting
the following:
``(ii) 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--
``(I) low- or zero-carbon process
heat systems,
``(II) carbon capture, transport,
utilization and storage systems,
``(III) energy efficiency and
reduction in waste from industrial
processes, or
``(IV) any industrial technology
which significantly reduces greenhouse
gas emissions, as determined by the
Secretary.''.
(B) by redesignating subparagraph (B) as
subparagraph (C), and
(C) by inserting after subparagraph (A) the
following new subparagraph:
``(B) Additional qualifying advanced energy
projects.--The term `qualifying advanced energy
project' shall also include any project described in
subparagraph (A) which is located in a census tract--
``(i) which, prior to the date of enactment
of the Clean Energy for America Act, had no
projects which received a certification and
allocation of credits under subsection (d), and
``(ii)(I) in which, after December 31,
1999, a coal mine has closed,
``(II) in which, after December 31, 2009, a
coal-fired electric generating unit has been
retired, or
``(III) which is immediately adjacent to a
census tract described in subclause (I) or
(II).'',
(2) in subsection (d)--
(A) in paragraph (1)--
(i) in subparagraph (A), by striking ``this
section'' and inserting ``the Clean Energy for
America Act'', and
(ii) by striking subparagraph (B) and
inserting the following:
``(B) Limitations.--
``(i) Initial allocation.--The total amount
of credits that may be allocated under the
program prior to the date of enactment of the
Clean Energy for America Act shall not exceed
$2,300,000,000.
``(ii) Additional allocation.--The total
amount of credits that may be allocated under
the program on or after to the date of
enactment of the Clean Energy for America Act
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).'',
(B) in paragraph (2)--
(i) in subparagraph (A), by striking ``2-
year'' and inserting ``3-year'',
(ii) in subparagraph (B)--
(I) by striking ``1 year'' and
inserting ``18 months'', and
(II) by adding at the end the
following new sentence: ``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.'', and
(iii) by adding at the end the following
new subparagraph:
``(D) Location of project.--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.'',
(C) in paragraph (3)--
(i) by striking subparagraph (A) and
inserting the following:
``(A) shall take into consideration only those
projects--
``(i) for which there is a reasonable
expectation of commercial viability, and
``(ii) which--
``(I) satisfies the requirements
under paragraph (6), and
``(II) with respect to the re-
equipping, expansion, or establishment
of an industrial or manufacturing
facility, satisfies the requirements
under section 501 of the Clean Energy
for America Act, and'', and
(ii) in subparagraph (B)--
(I) by striking clauses (i) and
(ii) and inserting the following:
``(i) 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),
``(ii) will provide the greatest domestic
job creation (both direct and indirect) during
the credit period,'',
(II) by redesignating clauses (iii)
through (v) as clauses (iv) through
(vi), respectively, and
(III) by inserting after clause
(ii) the following new clause:
``(iii) will provide the greatest job
creation within the vicinity of the project,
particularly with respect to--
``(I) low-income communities (as
defined in section 45D(e)), and
``(II) dislocated workers who were
previously employed in manufacturing,
coal power plants, or coal mining,'',
(D) in paragraph (4)--
(i) by striking subparagraph (A) and
inserting the following:
``(A) Review and report.--Not later than 4 years
after the date of enactment of the Clean Energy for
America Act, the Secretary shall--
``(i) review the credits allocated under
this section as of such date, and
``(ii) submit a report regarding the
allocation of such credits to--
``(I) the Committee on Finance and
the Committee on Energy and Natural
Resources of the Senate, and
``(II) the Committee on Ways and
Means and the Committee on Energy and
Commerce of the House of
Representatives.'', and
(ii) by adding at the end the following new
subparagraph:
``(D) Special rule.--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.'', and
(E) by adding at the end the following:
``(6) Wage requirements.--
``(A) In general.--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 chapter 31 of title
40, United States Code.
``(B) Correction and penalty related to failure to
satisfy wage requirements.--In the case of any taxpayer
which fails to satisfy the requirement under
subparagraph (A) with respect to any project--
``(i) rules similar to the rules of section
45U(b)(3)(B)(ii) shall apply for purposes of
this paragraph, and
``(ii) 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.'',
(3) in subsection (e), by striking ``48, 48A, or 48B'' and
inserting ``45Q, 48, 48A, 48B, or 48D'', and
(4) by adding at the end the following:
``(f) Special Rule for Property Financed by Subsidized Energy
Financing or Industrial Development Bonds.--Rules similar to the rules
in section 48(a)(4) shall apply for purposes of this section.
``(g) Technical Assistance.--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 Clean Energy for America
Act--
``(1) had no applicants for certification under such
subsection, or
``(2) had less than 2 qualifying advanced energy projects
which received an allocation of credits under such subsection.
``(h) Election for Direct Payment.--
``(1) In general.--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).
``(2) Form and effect of election.--
``(A) In general.--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--
``(i) be irrevocable with respect to the
eligible property to which such election
applies, and
``(ii) 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.
``(B) Additional information.--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.
``(3) Application to partnerships and s corporations;
excess payments.--Rules similar to the rules of paragraphs (3)
and (5) of section 45U(h) shall apply for purposes of this
subsection.
``(4) Special rules for certain entities.--
``(A) Eligibility of certain property.--For
purposes of this subsection, paragraphs (3) and (4) of
section 50(b) shall not apply with respect to--
``(i) 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),
``(ii) any mutual or cooperative electric
company described in section 501(c)(12) or
section 1381(a)(2)(C), or
``(iii) an Indian tribal government (as
defined in section 139E(c)(1)).
``(B) Certain entities treated as taxpayers.--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).''.
(b) Authorization of Appropriations.--To carry out subsection (f)
of section 48C 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.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after December 31, 2021.
SEC. 602. ISSUANCE OF EXEMPT FACILITY BONDS FOR QUALIFIED CARBON
DIOXIDE CAPTURE FACILITIES.
(a) In General.--Section 142 is amended--
(1) in subsection (a)--
(A) in paragraph (14), by striking ``or'' at the
end,
(B) in paragraph (15), by striking the period at
the end and inserting ``, or'', and
(C) by adding at the end the following new
paragraph:
``(16) qualified carbon dioxide capture facilities.'', and
(2) by adding at the end the following new subsection:
``(n) Qualified Carbon Dioxide Capture Facility.--
``(1) In general.--For purposes of subsection (a)(16), the
term `qualified carbon dioxide capture facility' means--
``(A) the eligible components of an industrial
carbon dioxide facility, and
``(B) a direct air capture facility (as defined in
section 45Q(e)(1)).
``(2) Definitions.--In this subsection:
``(A) Eligible component.--
``(i) In general.--The term `eligible
component' means any equipment installed in an
industrial carbon dioxide facility which is--
``(I) 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
``(II) 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.
``(ii) Definitions.--For purposes of this
subparagraph--
``(I) Biomass.--
``(aa) In general.--The
term `biomass' means any--
``(AA) agricultural
or plant waste,
``(BB) byproduct of
wood or paper mill
operations, including
lignin in spent pulping
liquors, and
``(CC) other
products of forestry
maintenance.
``(bb) Exclusion.--The term
`biomass' does not include
paper which is commonly
recycled.
``(II) Coal.--The term `coal' means
anthracite, bituminous coal,
subbituminous coal, lignite, and peat.
``(B) Industrial carbon dioxide facility.--
``(i) In general.--Except as provided in
clause (ii), the term `industrial carbon
dioxide facility' 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:
``(I) Fuel combustion.
``(II) Gasification.
``(III) Bioindustrial.
``(IV) Fermentation.
``(V) Any manufacturing industry
relating to--
``(aa) chemicals,
``(bb) fertilizers,
``(cc) glass,
``(dd) steel,
``(ee) petroleum residues,
``(ff) forest products,
``(gg) agriculture,
including feedlots and dairy
operations, and
``(hh) transportation grade
liquid fuels.
``(ii) Exceptions.--For purposes of clause
(i), an industrial carbon dioxide facility
shall not include--
``(I) any geological gas facility,
or
``(II) any air separation unit
that--
``(aa) does not qualify as
gasification equipment, or
``(bb) is not a necessary
component of an oxy-fuel
combustion process.
``(iii) Definitions.--In this
subparagraph--
``(I) Petroleum residue.--The term
`petroleum residue' means the
carbonized product of high-boiling
hydrocarbon fractions obtained in
petroleum processing.
``(II) Geological gas facility.--
The term `geological gas facility'
means a facility that--
``(aa) produces a raw
product consisting of gas or
mixed gas and liquid from a
geological formation,
``(bb) transports or
removes impurities from such
product, or
``(cc) separates such
product into its constituent
parts.
``(3) Special rule for facilities with less than 65 percent
capture and storage percentage.--
``(A) In general.--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.
``(B) Capture and storage percentage.--
``(i) In general.--Subject to clause (ii),
the capture and storage percentage shall be an
amount, expressed as a percentage, equal to the
quotient of--
``(I) the total metric tons of
carbon dioxide annually captured,
transported, and injected into--
``(aa) a facility for
geologic storage, or
``(bb) an enhanced oil or
gas recovery well followed by
geologic storage, divided by
``(II) 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.
``(ii) Limited application of eligible
components.--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.
``(4) Regulations.--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).''.
(b) Volume Cap.--Section 146(g)(4) is amended by striking
``paragraph (11) of section 142(a) (relating to high-speed intercity
rail facilities)'' and inserting ``paragraph (11) or (16) of section
142(a)''.
(c) Clarification of Private Business Use.--Section 141(b)(6) is
amended by adding at the end the following new subparagraph:
``(C) Clarification relating to qualified carbon
dioxide capture facilities.--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.''.
(d) Effective Date.--The amendments made by this section shall
apply to obligations issued after December 31, 2021.
SEC. 603. LIMITATION ON IMPORTATION OF CERTAIN ENERGY EQUIPMENT AND
COMPONENTS.
(a) In General.--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.
(b) Articles Described.--An article described in this subsection is
a solar cell, a wind turbine, energy storage equipment, or a component
for such equipment.
SEC. 604. ELIMINATION OF NEGATIVE EFFECTS ON SMALL BUSINESSES AND
CERTAIN INDIVIDUAL TAXPAYERS.
(a) In General.--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--
(1) the tax imposed under chapter 1 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
(2) the tax imposed under such chapter on such taxpayer for
such taxable year (determined without regard to the amendments
made by this Act).
(b) Applicable Eligible Taxpayer.--For purposes of this section--
(1) In general.--The term ``applicable eligible taxpayer''
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.
(2) Eligible taxpayer.--
(A) In general.--The term ``eligible taxpayer''
means, with respect to any taxable year--
(i) an individual with an adjusted gross
income of not more than $400,000, and
(ii) any employer that has an average
number of fewer than 500 employees for the
taxable year.
(B) Aggregation rules.--For purposes of
subparagraph (A)(ii), all persons treated as a single
employer under subsection (b), (c), (m), or (o) of
section 414 of the Internal Revenue Code of 1986 shall
be treated as one employer.
(C) Special rule for pass-thru entities.--In the
case of a partnership, S corporation, or other pass-
thru entity that is described in subparagraph (A)(ii)--
(i) any partner, shareholder, or other
applicable individual who is not described in
subparagraph (A)(i) shall be treated as an
eligible taxpayer, and
(ii) 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.
For purposes of the preceding sentence, the term
``applicable individual'' 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.
(c) Treatment of Payments.--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.
(d) Regulations.--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.
Calendar No. 78
117th CONGRESS
1st Session
S. 2118
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide tax incentives
for increased investment in clean energy, and for other purposes.
_______________________________________________________________________
June 21, 2021
Read the second time and placed on the calendar