[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2140 Introduced in Senate (IS)]
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117th CONGRESS
1st Session
S. 2140
To amend the Internal Revenue Code of 1986 to establish the advanced
solar manufacturing production credit.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 21, 2021
Mr. Ossoff (for himself, Mr. Warnock, Mr. Bennet, and Ms. Stabenow)
introduced the following bill; which was read twice and referred to the
Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to establish the advanced
solar manufacturing production credit.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Solar Energy Manufacturing for
America Act''.
SEC. 2. ADVANCED SOLAR MANUFACTURING PRODUCTION CREDIT.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 36C. ADVANCED SOLAR MANUFACTURING PRODUCTION CREDIT.
``(a) In General.--
``(1) Allowance of credit.--There shall be allowed as a
credit against the tax imposed by this subtitle for any taxable
year an amount equal to the sum of the credit amounts
determined under subsection (b) with respect to each solar
component which is--
``(A) produced by such taxpayer, and
``(B) during the taxable year--
``(i) sold by the taxpayer to--
``(I) an unrelated person, or
``(II) a related person for the use
of such person in their trade or
business (with the exception of any
trade or business related to resale of
such solar component without any
subsequent modification, assembly, or
integration into a project), or
``(ii) placed in service or operation by
the taxpayer or any other person.
``(2) Production and sale must be in trade or business.--
Any solar component produced and sold by the taxpayer shall be
taken into account only if the production and sale described in
paragraph (1) is in a trade or business of the taxpayer.
``(b) Credit Amount.--
``(1) In general.--Subject to paragraph (2), the amount
determined under this subsection with respect to any solar
component shall be equal to--
``(A) in the case of an integrated module, an
amount equal to the product of--
``(i) 11 cents, multiplied by
``(ii) the capacity of such module
(expressed on a per direct current watt basis),
``(B) in the case of a photovoltaic cell, an amount
equal to the product of--
``(i) 4 cents, multiplied by
``(ii) the capacity of such cell (expressed
on a per direct current watt basis),
``(C) in the case of a photovoltaic wafer, $12 per
square meter,
``(D) in the case of solar grade polysilicon, $3
per kilogram, and
``(E) in the case of a solar module which is not an
integrated module, an amount equal to the product of--
``(i) 7 cents, multiplied by
``(ii) the capacity of such module
(expressed on a per direct current watt basis).
``(2) Phase out.--
``(A) In general.--In the case of any solar
component sold after December 31, 2028, the amount
determined under this subsection with respect to such
component shall be equal to the product of--
``(i) the amount determined under paragraph
(1) with respect to such component, as
determined without regard to this paragraph,
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) in the case of a solar component sold
during calendar year 2029, 70 percent,
``(ii) in the case of a solar component
sold during calendar year 2030, 35 percent, and
``(iii) in the case of a solar component
sold after December 31, 2030, 0 percent.
``(c) Definitions and Other Rules.--In this section--
``(1) Solar component.--The term `solar component' means
any property described in paragraph (2).
``(2) Other definitions.--
``(A) Integrated module.--The term `integrated
module' means a solar module produced by a single
manufacturer through the conversion of a photovoltaic
wafer or other semiconductor material into an end
product which is--
``(i) suitable to generate electricity when
exposed to sunlight, and
``(ii) ready for installation without
additional manufacturing processes.
``(B) Photovoltaic cell.--The term `photovoltaic
cell' means the smallest semiconductor element of a
solar module which performs the immediate conversion of
light into electricity.
``(C) Photovoltaic wafer.--The term `photovoltaic
wafer' means a thin slice or sheet of semiconductor
material of at least 240 square centimeters produced by
a single manufacturer--
``(i) either--
``(I) directly from molten solar
grade polysilicon, or
``(II) through formation of an
ingot from molten polysilicon and
subsequent slicing, and
``(ii) which comprises the substrate of a
photovoltaic cell.
``(D) Solar grade polysilicon.--The term `solar
grade polysilicon' means silicon which is--
``(i) suitable for use in photovoltaic
manufacturing, and
``(ii) purified to a minimum purity of
99.999999 percent silicon by mass.
``(E) Solar module.--The term `solar module' means
the connection and lamination of photovoltaic cells
into an environmentally protected final assembly which
is--
``(i) suitable to generate electricity when
exposed to sunlight, and
``(ii) ready for installation without an
additional manufacturing process.
``(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 components to an
unrelated person if such component is sold to such a person by
another member of such group.
``(4) Only production in the united states taken into
account.--Sales shall be taken into account under this section
only with respect to solar components 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)).
``(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.
``(d) Registration.--
``(1) In general.--The Secretary shall require any person
claiming tax benefits under the provisions of this section to
register with the Secretary at such time, in such form and
manner, and subject to such terms and conditions, as the
Secretary may by regulations prescribe. A registration under
this subsection may be used only in accordance with regulations
prescribed under this subsection.
``(2) Registration in event of change in ownership.--Under
regulations prescribed by the Secretary, a person (other than a
corporation the stock of which is regularly traded on an
established securities market) shall be required to re-register
under this subsection if after a transaction (or series of
related transactions) more than 50 percent of ownership
interests in, or assets of, such person are held by persons
other than persons (or persons related thereto) who held more
than 50 percent of such interests or assets before the
transaction (or series of related transactions).
``(3) Denial, revocation, or suspension of registration.--
Rules similar to the rules of section 4222(c) shall apply to
registration under this section.
``(4) Information reporting.--The Secretary may require--
``(A) information reporting by any person
registered under this subsection, and
``(B) information reporting by such other persons
as the Secretary deems necessary to carry out this
section.''.
(b) Conforming Amendments.--
(1) Section 6211(b)(4)(A) of the Internal Revenue Code of
1986 is amended by inserting ``36C,'' after ``36B,''.
(2) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting ``36C,'' after ``36B,''.
(3) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of 1986
is amended by inserting after the item relating to section 36B
the following new item:
``Sec. 36C. Advanced solar manufacturing production credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to components produced and sold after December 31, 2021.
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