II 

117TH CONGRESS 

1ST SESSION S. 622 

To amend the Internal Revenue Code of 1986 to enhance the qualifying 

advanced energy project credit. 

IN THE SENATE OF THE UNITED STATES 

MARCH 9, 2021 

Mr. MANCHIN (for himself, Ms. STABENOW, and Mr. DAINES) 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 enhance 

the qualifying advanced energy project credit. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘American Jobs in En5 ergy Manufacturing Act of 2021’’. 

6 SEC. 2. ADJUSTMENT OF QUALIFYING ADVANCED ENERGY 

7 PROJECT CREDIT. 

8 (a) IN GENERAL.—Section 48C of the Internal Rev9 enue Code of 1986 is amended— 

10 (1) in subsection (c)(1)— 


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1 (A) in subparagraph (A)— 

2 (i) by inserting ‘‘, any portion of the 

3 qualified investment of which is certified 

4 by the Secretary under subsection (d) as 

5 eligible for a credit under this section’’ 

6 after ‘‘means a project’’, 

7 (ii) in clause (i)— 

8 (I) by striking ‘‘a manufacturing 

9 facility for the production of’’ and in10 serting ‘‘an industrial or manufac11 turing facility for the production or 

12 recycling of’’, 

13 (II) in clause (I), by inserting 

14 ‘‘water,’’ after ‘‘sun,’’, 

15 (III) in clause (II), by striking 

16 ‘‘an energy storage system for use 

17 with electric or hybrid-electric motor 

18 vehicles’’ and inserting ‘‘energy stor19 age systems and components’’, 

20 (IV) in clause (III), by striking 

21 ‘‘grids to support the transmission of 

22 intermittent sources of renewable en23 ergy, including storage of such en24 ergy’’ and inserting ‘‘grid moderniza25 tion equipment or components’’, 


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1 (V) in subclause (IV), by striking 

2 ‘‘and sequester carbon dioxide emis3 sions’’ and inserting ‘‘, remove, use, 

4 or sequester carbon oxide emissions’’, 

5 (VI) by striking subclause (V) 

6 and inserting the following: 

7 ‘‘(V) equipment designed to re8 fine, electrolyze, or blend any fuel, 

9 chemical, or product which is— 

10 ‘‘(aa) renewable, or 

11 ‘‘(bb) low-carbon and low12 emission,’’, 

13 (VII) by striking subclause (VI), 

14 (VIII) by redesignating subclause 

15 (VII) as subclause (IX), 

16 (IX) by inserting after subclause 

17 (V) the following new subclauses: 

18 ‘‘(VI) property designed to 

19 produce energy conservation tech20 nologies (including residential, com21 mercial, and industrial applications), 

22 ‘‘(VII) light-, medium-, or heavy23 duty electric or fuel cell vehicles, as 

24 well as— 


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1 ‘‘(aa) technologies, compo2 nents, or materials for such vehi3 cles, and 

4 ‘‘(bb) associated charging or 

5 refueling infrastructure, 

6 ‘‘(VIII) hybrid vehicles with a 

7 gross vehicle weight rating of not less 

8 than 14,000 pounds, as well as tech9 nologies, components, or materials for 

10 such vehicles, or’’, and 

11 (X) in subclause (IX), as so re12 designated, by striking ‘‘and’’ at the 

13 end and inserting ‘‘or’’, and 

14 (iii) by striking clause (ii) and insert15 ing the following: 

16 ‘‘(ii) which re-equips an industrial or 

17 manufacturing facility with equipment de18 signed to reduce its greenhouse gas emis19 sions well below current best practices 

20 through the installation of— 

21 ‘‘(I) low- or zero-carbon process 

22 heat systems, 

23 ‘‘(II) carbon capture, transport, 

24 utilization and storage systems, 


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1 ‘‘(III) energy efficiency and re2 duction in waste from industrial proc3 esses, or 

4 ‘‘(IV) any industrial technology 

5 which significantly reduces greenhouse 

6 gas emissions, as determined by the 

7 Secretary.’’. 

8 (B) by redesignating subparagraph (B) as 

9 subparagraph (C), and 

10 (C) by inserting after subparagraph (A) 

11 the following new subparagraph: 

12 ‘‘(B) ADDITIONAL QUALIFYING ADVANCED

13 ENERGY PROJECTS.—The term ‘qualifying ad14 vanced energy project’ shall also include any 

15 project described in subparagraph (A) which is 

16 located in a census tract— 

17 ‘‘(i) which, prior to the date of enact18 ment of the American Jobs in Energy 

19 Manufacturing Act of 2021, had no 

20 projects which received a certification and 

21 allocation of credits under subsection (d), 

22 and 

23 ‘‘(ii)(I) in which, after December 31, 

24 1999, a coal mine has closed, 


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1 ‘‘(II) in which, after December 31, 

2 2009, a coal-fired electric generating unit 

3 has been retired, or 

4 ‘‘(III) which is immediately adjacent 

5 to a census tract described in subclause (I) 

6 or (II).’’, 

7 (2) in subsection (d)— 

8 (A) in paragraph (1)— 

9 (i) in subparagraph (A), by striking 

10 ‘‘this section’’ and inserting ‘‘the American 

11 Jobs in Energy Manufacturing Act of 

12 2021’’, and 

13 (ii) by striking subparagraph (B) and 

14 inserting the following: 

15 ‘‘(B) LIMITATIONS.— 

16 ‘‘(i) INITIAL ALLOCATION.—The total 

17 amount of credits that may be allocated 

18 under the program prior to the date of en19 actment of the American Jobs in Energy 

20 Manufacturing Act of 2021 shall not ex21 ceed $2,300,000,000. 

22 ‘‘(ii) ADDITIONAL ALLOCATION.—The 

23 total amount of credits that may be allo24 cated under the program on or after to the 

25 date of enactment of the American Jobs in 


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1 Energy Manufacturing Act of 2021 shall 

2 not exceed $8,000,000,000, of which not 

3 greater than $4,000,000,000 may be allo4 cated to projects which are not located in 

5 a census tract described in subparagraph 

6 (B) of subsection (c)(1).’’, 

7 (B) in paragraph (2)— 

8 (i) in subparagraph (A), by striking 

9 ‘‘2-year’’ and inserting ‘‘3-year’’, 

10 (ii) in subparagraph (B)— 

11 (I) by striking ‘‘1 year’’ and in12 serting ‘‘18 months’’, and 

13 (II) by adding at the end the fol14 lowing new sentence: ‘‘Not later than 

15 180 days after the date on which such 

16 evidence was provided by the appli17 cant, the Secretary shall determine 

18 whether the requirements of the cer19 tification have been met.’’, and 

20 (iii) by adding at the end the fol21 lowing new subparagraph: 

22 ‘‘(D) LOCATION OF PROJECT.—In the case 

23 of an applicant which receives a certification, if 

24 the Secretary determines that the project has 

25 been placed in service at a location which is maVerDate Sep 11 2014 21:53 Apr 03, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S622.IS S622

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1 terially different than the location specified in 

2 the application for such project, the certifi3 cation shall no longer be valid.’’, 

4 (C) in paragraph (3)— 

5 (i) by striking subparagraph (A) and 

6 inserting the following: 

7 ‘‘(A) shall take into consideration only 

8 those projects— 

9 ‘‘(i) where there is a reasonable expec10 tation of commercial viability, and 

11 ‘‘(ii) which will ensure laborers and 

12 mechanics employed by contractors and 

13 subcontractors in the performance of any 

14 qualifying advanced energy project shall be 

15 paid wages at rates not less than the pre16 vailing rates on projects of a similar char17 acter in the locality as determined by the 

18 Secretary of Labor, in accordance with 

19 subchapter IV of chapter 31 of title 40, 

20 United States Code, and’’, and 

21 (ii) in subparagraph (B)— 

22 (I) by striking clauses (i) and (ii) 

23 and inserting the following: 

24 ‘‘(i) will provide the greatest net im25 pact in avoiding or reducing anthropogenic 


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1 emissions of greenhouse gases (or, in the 

2 case of a project described in subsection 

3 (c)(1)(A)(ii), will provide the greatest re4 duction of greenhouse gas emissions as 

5 compared to current best practices), 

6 ‘‘(ii) will provide the greatest domestic 

7 job creation (both direct and indirect) dur8 ing the credit period,’’, 

9 (II) by redesignating clauses (iii) 

10 through (v) as clauses (iv) through 

11 (vi), respectively, and 

12 (III) by inserting after clause (ii) 

13 the following new clause: 

14 ‘‘(iii) will provide the greatest job cre15 ation within the vicinity of the project, par16 ticularly with respect to— 

17 ‘‘(I) low-income communities (as 

18 described in section 45D(e)), and 

19 ‘‘(II) dislocated workers who 

20 were previously employed in manufac21 turing, coal power plants, or coal min22 ing,’’, and 

23 (D) in paragraph (4)— 

24 (i) by striking subparagraph (A) and 

25 inserting the following: 


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1 ‘‘(A) REVIEW AND REPORT.—Not later 

2 than 4 years after the date of enactment of the 

3 American Jobs in Energy Manufacturing Act of 

4 2021, the Secretary shall— 

5 ‘‘(i) review the credits allocated under 

6 this section as of such date, and 

7 ‘‘(ii) submit a report regarding the al8 location of such credits to— 

9 ‘‘(I) the Committee on Finance 

10 and the Committee on Energy and 

11 Natural Resources of the Senate, and 

12 ‘‘(II) the Committee on Ways 

13 and Means and the Committee on En14 ergy and Commerce of the House of 

15 Representatives.’’, and 

16 (ii) by adding at the end the following 

17 new subparagraph: 

18 ‘‘(D) SPECIAL RULE.—For purposes of re19 allocating credits pursuant to this paragraph, 

20 the limitation under paragraph (1)(B)(ii) with 

21 respect to allocation of credits to projects which 

22 are not located in a census tract described in 

23 subparagraph (B) of subsection (c)(1) shall not 

24 apply.’’, 


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1 (3) in subsection (e), by inserting ‘‘45Q,’’ after 

2 ‘‘section’’, and 

3 (4) by adding at the end the following new sub4 section: 

5 ‘‘(f) TECHNICAL ASSISTANCE.—For purposes of as6 sisting with applications for certification under subsection 

7 (d), the Secretary of Energy shall provide technical assist8 ance to any State (or political subdivision thereof), tribe, 

9 or economic development organization which, prior to the 

10 date of enactment of the American Jobs in Energy Manu11 facturing Act of 2021— 

12 ‘‘(1) had no applicants for certification under 

13 such subsection, or 

14 ‘‘(2) had less than 2 qualifying advanced energy 

15 projects which received an allocation of credits under 

16 such subsection.’’. 

17 (b) AUTHORIZATION OF APPROPRIATIONS.—To carry 

18 out subsection (f) of section 48C of the Internal Revenue 

19 Code of 1986 (as added by subsection (a)(4)), there is au20 thorized to be appropriated to the State Energy Program 

21 of the Department of Energy, out of moneys in the Treas22 ury not otherwise appropriated, $500,000, to remain avail23 able until expended. 


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1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to property placed in service after 

3 December 31, 2021. 

Æ 


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