II 

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. 

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; ETC. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Clean Energy for America Act’’. 


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1 (b) AMENDMENT OF 1986 CODE.—Except as other2 wise expressly provided, whenever in this Act an amend3 ment or repeal is expressed in terms of an amendment 

4 to, or repeal of, a section or other provision, the reference 

5 shall be considered to be made to a section or other provi6 sion of the Internal Revenue Code of 1986. 

7 (c) TABLE OF CONTENTS.—The table of contents of 

8 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. 


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Sec. 604. Elimination of negative effects on small businesses and certain individual taxpayers. 

1 TITLE I—INCENTIVES FOR 

2 CLEAN ELECTRICITY 

3 SEC. 101. CLEAN ELECTRICITY PRODUCTION CREDIT. 

4 (a) IN GENERAL.—Subpart D of part IV of sub5 chapter A of chapter 1 is amended by adding at the end 

6 the following new section: 

7 ‘‘SEC. 45U. CLEAN ELECTRICITY PRODUCTION CREDIT. 

8 ‘‘(a) AMOUNT OF CREDIT.—For purposes of section 

9 38, the clean electricity production credit for any taxable 

10 year is an amount equal to the product of— 

11 ‘‘(1) subject to subsection (g)(7), 1.5 cents, 

12 multiplied by 

13 ‘‘(2) the kilowatt hours of electricity— 

14 ‘‘(A) produced by the taxpayer at a quali15 fied facility, and 

16 ‘‘(B)(i) sold by the taxpayer to an unre17 lated person during the taxable year, or 

18 ‘‘(ii) in the case of a qualified facility 

19 which is equipped with a metering device which 

20 is owned and operated by an unrelated person, 

21 sold, consumed, or stored by the taxpayer dur22 ing the taxable year. 

23 ‘‘(b) QUALIFIED FACILITY.— 

24 ‘‘(1) IN GENERAL.— 


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1 ‘‘(A) DEFINITION.—Subject to subpara2 graphs (B), (C), and (D), the term ‘qualified 

3 facility’ means a facility owned by the tax4 payer— 

5 ‘‘(i) which is used for the generation 

6 of electricity, 

7 ‘‘(ii) which is originally placed in serv8 ice after December 31, 2022, 

9 ‘‘(iii) for which the greenhouse gas 

10 emissions rate (as determined under para11 graph (2)) is not greater than zero, and 

12 ‘‘(iv) in the case of any facility with a 

13 maximum net output equal to or greater 

14 than 1 megawatt, which— 

15 ‘‘(I) subject to subparagraph (B) 

16 of paragraph (3), satisfies the require17 ments under subparagraph (A) of 

18 such paragraph, and 

19 ‘‘(II) with respect to the con20 struction of such facility, satisfies the 

21 requirements under section 501 of the 

22 Clean Energy for America Act. 

23 ‘‘(B) 10-YEAR PRODUCTION CREDIT.—For 

24 purposes of this section, a facility shall only be 

25 treated as a qualified facility during the 10-year 


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1 period beginning on the date the facility was 

2 originally placed in service. 

3 ‘‘(C) EXPANSION OF FACILITY; INCRE4 MENTAL PRODUCTION.—The term ‘qualified fa5 cility’ shall include either of the following in 

6 connection with a facility described in subpara7 graph (A) (without regard to clause (ii) of such 

8 subparagraph) that was placed in service before 

9 January 1, 2023, but only to the extent of the 

10 increased amount of electricity produced at the 

11 facility by reason of the following: 

12 ‘‘(i) A new unit placed in service after 

13 December 31, 2022. 

14 ‘‘(ii) Any efficiency improvements or 

15 additions of capacity placed in service after 

16 December 31, 2022. 

17 ‘‘(D) COORDINATION WITH OTHER CRED18 ITS.—The term ‘qualified facility’ shall not in19 clude any facility for which a credit determined 

20 under section 45, 45J, 45Q, 48, or 48D is al21 lowed under section 38 for the taxable year or 

22 any prior taxable year. 

23 ‘‘(2) GREENHOUSE GAS EMISSIONS RATE.— 

24 ‘‘(A) IN GENERAL.—For purposes of this 

25 section, the term ‘greenhouse gas emissions 


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1 rate’ means the amount of greenhouse gases 

2 emitted into the atmosphere by a facility in the 

3 production of electricity, expressed as grams of 

4 CO2e per KWh. 

5 ‘‘(B) FUEL COMBUSTION AND GASIFI6 CATION.—In the case of a facility which pro7 duces electricity through combustion or gasifi8 cation, the greenhouse gas emissions rate for 

9 such facility shall be equal to the net rate of 

10 greenhouse gases emitted into the atmosphere 

11 by such facility (taking into account lifecycle 

12 greenhouse gas emissions, as described in sec13 tion 211(o)(1)(H) of the Clean Air Act (42 

14 U.S.C. 7545(o)(1)(H))) in the production of 

15 electricity, expressed as grams of CO2e per 

16 KWh. 

17 ‘‘(C) ESTABLISHMENT OF EMISSIONS

18 RATES FOR FACILITIES.— 

19 ‘‘(i) IN GENERAL.—The Secretary and 

20 the Administrator of the Environmental 

21 Protection Agency shall establish green22 house gas emissions rates for types or cat23 egories of facilities, which a taxpayer shall 

24 use for purposes of this section. 


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1 ‘‘(ii) PUBLISHING EMISSIONS

2 RATES.—The Secretary shall annually pub3 lish a table that sets forth the greenhouse 

4 gas emissions rates for similar types or 

5 categories of facilities. 

6 ‘‘(iii) PROVISIONAL EMISSIONS

7 RATE.— 

8 ‘‘(I) IN GENERAL.—In the case 

9 of any facility for which an emissions 

10 rate has not been established by the 

11 Secretary and the Administrator of 

12 the Environmental Protection Agency, 

13 a taxpayer which owns such facility 

14 may file a petition with the Secretary 

15 and the Administrator of the Environ16 mental Protection Agency for deter17 mination of the emissions rate with 

18 respect to such facility. 

19 ‘‘(II) ESTABLISHMENT OF PROVI20 SIONAL AND FINAL EMISSIONS

21 RATE.—In the case of a facility for 

22 which a petition described in sub23 clause (I) has been filed, the Sec24 retary and the Administrator of the 


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1 Environmental Protection Agency 

2 shall— 

3 ‘‘(aa) not later than 12 

4 months after the date on which 

5 the petition was filed, provide a 

6 provisional emissions rate for 

7 such facility which a taxpayer 

8 shall use for purposes of this sec9 tion, and 

10 ‘‘(bb) not later than 24 

11 months after the date on which 

12 the petition was filed, establish 

13 the emissions rate for such facil14 ity. 

15 ‘‘(D) CARBON CAPTURE AND SEQUESTRA16 TION EQUIPMENT.—For purposes of this sub17 section, the amount of greenhouse gases emit18 ted into the atmosphere by a facility in the pro19 duction of electricity shall not include any quali20 fied carbon dioxide that is captured by the tax21 payer and— 

22 ‘‘(i) pursuant to any regulations es23 tablished under paragraph (2) of section 

24 45Q(f), disposed of by the taxpayer in se25 cure geological storage, or 


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1 ‘‘(ii) utilized by the taxpayer in a 

2 manner described in paragraph (5) of such 

3 section. 

4 ‘‘(3) WAGE REQUIREMENTS.— 

5 ‘‘(A) IN GENERAL.—The requirements de6 scribed in this subparagraph with respect to 

7 any facility are that the taxpayer shall ensure 

8 that any laborers and mechanics employed by 

9 contractors and subcontractors in— 

10 ‘‘(i) the construction of such facility, 

11 or 

12 ‘‘(ii) for any year during the period 

13 described in paragraph (1)(B), the alter14 ation or repair of such facility, 

15 shall be paid wages at rates not less than the 

16 prevailing rates for construction, alteration, or 

17 repair of a similar character in the locality as 

18 determined by the Secretary of Labor, in ac19 cordance with subchapter IV of chapter 31 of 

20 title 40, United States Code. 

21 ‘‘(B) FAILURE TO SATISFY WAGE RE22 QUIREMENTS.— 

23 ‘‘(i) IN GENERAL.—In the case of any 

24 taxpayer which fails to satisfy the require25 ment under subparagraph (A) with respect 


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1 to any facility for any year during the pe2 riod described in paragraph (1)(B), the 

3 amount of the credit which would (but for 

4 this subparagraph) be allowable under this 

5 section with respect to such facility for 

6 such year shall be reduced to zero. 

7 ‘‘(ii) CORRECTION AND PENALTY.— 

8 Clause (i) shall not apply with respect to 

9 any failure by the taxpayer to satisfy the 

10 requirement under subparagraph (A) with 

11 respect to any facility for any year if, with 

12 respect to any laborer or mechanic who 

13 was paid wages at a rate below the rate 

14 described in such subparagraph for any pe15 riod during such year, such taxpayer— 

16 ‘‘(I) makes payment to such la17 borer or mechanic in an amount equal 

18 to the sum of— 

19 ‘‘(aa) an amount equal to 

20 the difference between— 

21 ‘‘(AA) the amount of 

22 wages paid to such laborer 

23 or mechanic during such pe24 riod, and 


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1 ‘‘(BB) the amount of 

2 wages required to be paid to 

3 such laborer or mechanic 

4 pursuant to such subpara5 graph during such period, 

6 plus 

7 ‘‘(bb) interest on the 

8 amount determined under item 

9 (aa) at the underpayment rate 

10 established under section 6621 

11 for the period described in such 

12 item, and 

13 ‘‘(II) makes payment to the Sec14 retary of a penalty in an amount 

15 equal to the product of— 

16 ‘‘(aa) $5,000, multiplied by 

17 ‘‘(bb) the total number of la18 borers and mechanics who were 

19 paid wages at a rate below the 

20 rate described in subparagraph 

21 (A) for any period during such 

22 year. 

23 ‘‘(c) INFLATION ADJUSTMENT.— 

24 ‘‘(1) IN GENERAL.—In the case of a calendar 

25 year beginning after 2021, the 1.5 cent amount in 


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1 paragraph (1) of subsection (a) shall be adjusted by 

2 multiplying such amount by the inflation adjustment 

3 factor for the calendar year in which the sale or use 

4 of the electricity occurs. If any amount as increased 

5 under the preceding sentence is not a multiple of 0.1 

6 cent, such amount shall be rounded to the nearest 

7 multiple of 0.1 cent. 

8 ‘‘(2) ANNUAL COMPUTATION.—The Secretary 

9 shall, not later than April 1 of each calendar year, 

10 determine and publish in the Federal Register the 

11 inflation adjustment factor for such calendar year in 

12 accordance with this subsection. 

13 ‘‘(3) INFLATION ADJUSTMENT FACTOR.—The 

14 term ‘inflation adjustment factor’ means, with re15 spect to a calendar year, a fraction the numerator 

16 of which is the GDP implicit price deflator for the 

17 preceding calendar year and the denominator of 

18 which is the GDP implicit price deflator for the cal19 endar year 1992. The term ‘GDP implicit price 

20 deflator’ means the most recent revision of the im21 plicit price deflator for the gross domestic product 

22 as computed and published by the Department of 

23 Commerce before March 15 of the calendar year. 

24 ‘‘(d) CREDIT PHASE-OUT.— 


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1 ‘‘(1) IN GENERAL.—If the Secretary, the Sec2 retary of Energy, and the Administrator of the En3 vironmental Protection Agency determine that the 

4 annual greenhouse gas emissions from the produc5 tion of electricity in the United States are equal to 

6 or less than 25 percent of the annual greenhouse gas 

7 emissions from the production of electricity in the 

8 United States for calendar year 2021, the amount of 

9 the clean electricity production credit under sub10 section (a) for any qualified facility the construction 

11 of which begins during a calendar year described in 

12 paragraph (2) shall be equal to the product of— 

13 ‘‘(A) the amount of the credit determined 

14 under subsection (a) without regard to this sub15 section, multiplied by 

16 ‘‘(B) the phase-out percentage under para17 graph (2). 

18 ‘‘(2) PHASE-OUT PERCENTAGE.—The phase-out 

19 percentage under this paragraph is equal to— 

20 ‘‘(A) for a facility the construction of 

21 which begins during the first calendar year fol22 lowing the calendar year in which the deter23 mination described in paragraph (1) is made, 

24 100 percent, 


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1 ‘‘(B) for a facility the construction of 

2 which begins during the second calendar year 

3 following such determination year, 75 percent, 

4 ‘‘(C) for a facility the construction of 

5 which begins during the third calendar year fol6 lowing such determination year, 50 percent, and 

7 ‘‘(D) for a facility the construction of 

8 which begins during any calendar year subse9 quent to the year described in subparagraph 

10 (C), 0 percent. 

11 ‘‘(e) DEFINITIONS.—For purposes of this section: 

12 ‘‘(1) CO2e PER KWh.—The term ‘CO2e per 

13 KWh’ means, with respect to any greenhouse gas, 

14 the equivalent carbon dioxide (as determined based 

15 on global warming potential) per kilowatt hour of 

16 electricity produced. 

17 ‘‘(2) GREENHOUSE GAS.—The term ‘greenhouse 

18 gas’ has the same meaning given such term under 

19 section 211(o)(1)(G) of the Clean Air Act (42 

20 U.S.C. 7545(o)(1)(G)), as in effect on the date of 

21 the enactment of this section. 

22 ‘‘(3) QUALIFIED CARBON DIOXIDE.—The term 

23 ‘qualified carbon dioxide’ means carbon dioxide cap24 tured from an industrial source which— 


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1 ‘‘(A) would otherwise be released into the 

2 atmosphere as industrial emission of green3 house gas, 

4 ‘‘(B) is measured at the source of capture 

5 and verified at the point of disposal or utiliza6 tion, and 

7 ‘‘(C) is captured and disposed or utilized 

8 within the United States (within the meaning of 

9 section 638(1)) or a possession of the United 

10 States (within the meaning of section 638(2)). 

11 ‘‘(f) FINAL GUIDANCE.—Not later than January 1, 

12 2023, the Secretary and the Administrator of the Environ13 mental Protection Agency shall issue final guidance re14 garding implementation of this section, including calcula15 tion of greenhouse gas emission rates for qualified facili16 ties and determination of clean electricity production cred17 its under this section. 

18 ‘‘(g) SPECIAL RULES.— 

19 ‘‘(1) ONLY PRODUCTION IN THE UNITED

20 STATES TAKEN INTO ACCOUNT.—Consumption or 

21 sales shall be taken into account under this section 

22 only with respect to electricity the production of 

23 which is within— 

24 ‘‘(A) the United States (within the mean25 ing of section 638(1)), or 


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1 ‘‘(B) a possession of the United States 

2 (within the meaning of section 638(2)). 

3 ‘‘(2) COMBINED HEAT AND POWER SYSTEM

4 PROPERTY.— 

5 ‘‘(A) IN GENERAL.—For purposes of sub6 section (a)— 

7 ‘‘(i) the kilowatt hours of electricity 

8 produced by a taxpayer at a qualified facil9 ity shall include any production in the 

10 form of useful thermal energy by any com11 bined heat and power system property 

12 within such facility, and 

13 ‘‘(ii) the amount of greenhouse gases 

14 emitted into the atmosphere by such facil15 ity in the production of such useful ther16 mal energy shall be included for purposes 

17 of determining the greenhouse gas emis18 sions rate for such facility. 

19 ‘‘(B) COMBINED HEAT AND POWER SYS20 TEM PROPERTY.—For purposes of this para21 graph, the term ‘combined heat and power sys22 tem property’ has the same meaning given such 

23 term by section 48(c)(3) (without regard to 

24 subparagraphs (A)(iv), (B), and (D) thereof). 

25 ‘‘(C) CONVERSION FROM BTU TO KWH.— 


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1 ‘‘(i) IN GENERAL.—For purposes of 

2 subparagraph (A)(i), the amount of kilo3 watt hours of electricity produced in the 

4 form of useful thermal energy shall be 

5 equal to the quotient of— 

6 ‘‘(I) the total useful thermal en7 ergy produced by the combined heat 

8 and power system property within the 

9 qualified facility, divided by 

10 ‘‘(II) the heat rate for such facil11 ity. 

12 ‘‘(ii) HEAT RATE.—For purposes of 

13 this subparagraph, the term ‘heat rate’ 

14 means the amount of energy used by the 

15 qualified facility to generate 1 kilowatt 

16 hour of electricity, expressed as British 

17 thermal units per net kilowatt hour gen18 erated. 

19 ‘‘(3) PRODUCTION ATTRIBUTABLE TO THE TAX20 PAYER.—In the case of a qualified facility in which 

21 more than 1 person has an ownership interest, ex22 cept to the extent provided in regulations prescribed 

23 by the Secretary, production from the facility shall 

24 be allocated among such persons in proportion to 


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1 their respective ownership interests in the gross 

2 sales from such facility. 

3 ‘‘(4) RELATED PERSONS.—Persons shall be 

4 treated as related to each other if such persons 

5 would be treated as a single employer under the reg6 ulations prescribed under section 52(b). In the case 

7 of a corporation which is a member of an affiliated 

8 group of corporations filing a consolidated return, 

9 such corporation shall be treated as selling electricity 

10 to an unrelated person if such electricity is sold to 

11 such a person by another member of such group. 

12 ‘‘(5) PASS-THRU IN THE CASE OF ESTATES AND

13 TRUSTS.—Under regulations prescribed by the Sec14 retary, rules similar to the rules of subsection (d) of 

15 section 52 shall apply. 

16 ‘‘(6) ALLOCATION OF CREDIT TO PATRONS OF

17 AGRICULTURAL COOPERATIVE.— 

18 ‘‘(A) ELECTION TO ALLOCATE.— 

19 ‘‘(i) IN GENERAL.—In the case of an 

20 eligible cooperative organization, any por21 tion of the credit determined under sub22 section (a) for the taxable year may, at the 

23 election of the organization, be apportioned 

24 among patrons of the organization on the 


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1 basis of the amount of business done by 

2 the patrons during the taxable year. 

3 ‘‘(ii) FORM AND EFFECT OF ELEC4 TION.—An election under clause (i) for any 

5 taxable year shall be made on a timely 

6 filed return for such year. Such election, 

7 once made, shall be irrevocable for such 

8 taxable year. Such election shall not take 

9 effect unless the organization designates 

10 the apportionment as such in a written no11 tice mailed to its patrons during the pay12 ment period described in section 1382(d). 

13 ‘‘(B) TREATMENT OF ORGANIZATIONS AND

14 PATRONS.—The amount of the credit appor15 tioned to any patrons under subparagraph 

16 (A)— 

17 ‘‘(i) shall not be included in the 

18 amount determined under subsection (a) 

19 with respect to the organization for the 

20 taxable year, and 

21 ‘‘(ii) shall be included in the amount 

22 determined under subsection (a) for the 

23 first taxable year of each patron ending on 

24 or after the last day of the payment period 

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1 able year of the organization or, if earlier, 

2 for the taxable year of each patron ending 

3 on or after the date on which the patron 

4 receives notice from the cooperative of the 

5 apportionment. 

6 ‘‘(C) SPECIAL RULES FOR DECREASE IN

7 CREDITS FOR TAXABLE YEAR.—If the amount 

8 of the credit of a cooperative organization de9 termined under subsection (a) for a taxable 

10 year is less than the amount of such credit 

11 shown on the return of the cooperative organi12 zation for such year, an amount equal to the 

13 excess of— 

14 ‘‘(i) such reduction, over 

15 ‘‘(ii) the amount not apportioned to 

16 such patrons under subparagraph (A) for 

17 the taxable year, 

18 shall be treated as an increase in tax imposed 

19 by this chapter on the organization. Such in20 crease shall not be treated as tax imposed by 

21 this chapter for purposes of determining the 

22 amount of any credit under this chapter. 

23 ‘‘(D) ELIGIBLE COOPERATIVE DEFINED.— 

24 For purposes of this section, the term ‘eligible 

25 cooperative’ means a cooperative organization 


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1 described in section 1381(a) which is owned 

2 more than 50 percent by agricultural producers 

3 or by entities owned by agricultural producers. 

4 For this purpose an entity owned by an agricul5 tural producer is one that is more than 50 per6 cent owned by agricultural producers. 

7 ‘‘(7) INCREASE IN CREDIT IN CERTAIN

8 CASES.— 

9 ‘‘(A) NASCENT CLEAN ENERGY TECH10 NOLOGY.— 

11 ‘‘(i) IN GENERAL.—In the case of any 

12 qualified facility which generates electricity 

13 using a nascent clean energy technology, 

14 for purposes of determining the amount of 

15 the credit under subsection (a) with re16 spect to any electricity produced by the 

17 taxpayer at such facility using such tech18 nology during the taxable year, the amount 

19 under paragraph (1) of such subsection 

20 shall be increased by an amount equal to 

21 10 percent of the amount otherwise in ef22 fect under such paragraph (without appli23 cation of subparagraph (B) or (C)). 

24 ‘‘(ii) DEFINITION.—For purposes of 

25 this subparagraph, the term ‘nascent clean 


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1 energy technology’ means any technology 

2 or method used for the production of elec3 tricity which, in the calendar year pre4 ceding the calendar year in which construc5 tion of the qualified facility began, 

6 achieved a market penetration level of less 

7 than 3 percent. 

8 ‘‘(iii) MARKET PENETRATION

9 LEVEL.—For purposes of this subpara10 graph, the term ‘market penetration level’ 

11 means, with respect to any calendar year, 

12 the amount equal to the greater of— 

13 ‘‘(I) the amount (expressed as a 

14 percentage) equal to the quotient of— 

15 ‘‘(aa) the sum of all elec16 tricity produced (expressed in 

17 terawatt hours) from the tech18 nology or method used for the 

19 production of electricity by all 

20 electricity generating facilities in 

21 the United States during such 

22 calendar year (as determined by 

23 the Secretary on the basis of 

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1 formation Administration), di2 vided by 

3 ‘‘(bb) the total domestic 

4 power sector electricity produc5 tion (expressed in terawatt 

6 hours) for such calendar year, or 

7 ‘‘(II) the amount determined 

8 under this clause for the preceding 

9 calendar year with respect to such 

10 technology or method. 

11 ‘‘(B) ENERGY COMMUNITIES.— 

12 ‘‘(i) IN GENERAL.—In the case of any 

13 qualified facility which is located in an en14 ergy community, for purposes of deter15 mining the amount of the credit under 

16 subsection (a) with respect to any elec17 tricity produced by the taxpayer at such 

18 facility during the taxable year, the 

19 amount under paragraph (1) of such sub20 section shall be increased by an amount 

21 equal to 10 percent of the amount other22 wise in effect under such paragraph (with23 out application of subparagraph (A) or 

24 (C)). 


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1 ‘‘(ii) ENERGY COMMUNITY.—For pur2 poses of this subparagraph, the term ‘en3 ergy community’ means a census tract— 

4 ‘‘(I) in which— 

5 ‘‘(aa) for the calendar year 

6 in which construction of the 

7 qualified facility began— 

8 ‘‘(AA) not less than 5 

9 percent of the employment 

10 in such tract is within the 

11 oil and gas sector, or 

12 ‘‘(BB) an industrial fa13 cility is located which is 

14 mandated to report emis15 sions of greenhouse gases 

16 under the Greenhouse Gas 

17 Reporting Program estab18 lished under part 98 of title 

19 40, Code of Federal Regula20 tions, 

21 ‘‘(bb) after December 31, 

22 1999, a coal mine has closed, or 

23 ‘‘(cc) after December 31, 

24 2009, a coal-fired electric gener25 ating unit has been retired, or 


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1 ‘‘(II) which is immediately adja2 cent to any census tract described in 

3 subclause (I). 

4 ‘‘(C) DOMESTIC CONTENT.— 

5 ‘‘(i) IN GENERAL.—In the case of any 

6 qualified facility which satisfies the re7 quirement under clause (ii)(I), for pur8 poses of determining the amount of the 

9 credit under subsection (a) with respect to 

10 any electricity produced by the taxpayer at 

11 such facility during the taxable year, the 

12 amount under paragraph (1) of such sub13 section shall be increased by an amount 

14 equal to 10 percent of the amount other15 wise in effect under such paragraph (with16 out application of subparagraph (A) or 

17 (B)). 

18 ‘‘(ii) REQUIREMENT.— 

19 ‘‘(I) IN GENERAL.—Subject to 

20 clause (iii), the requirement described 

21 in this subclause with respect to any 

22 qualified facility is that, prior to the 

23 end of the taxable year in which such 

24 facility is placed in service, the tax25 payer shall certify to the Secretary 


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1 that, any steel, iron, or manufactured 

2 product used in the construction of 

3 such facility was produced in the 

4 United States. 

5 ‘‘(II) STEEL AND IRON.—In the 

6 case of steel or iron, subclause (I) 

7 shall be applied in a manner con8 sistent with section 661.5(b) of title 

9 49, Code of Federal Regulations. 

10 ‘‘(III) MANUFACTURED PROD11 UCT.—For purposes of subclause (I), 

12 a manufactured product shall be 

13 deemed to have been manufactured in 

14 the United States if not less than 55 

15 percent of the total cost of the compo16 nents of such product is attributable 

17 to components which are mined, pro18 duced, or manufactured in the United 

19 States. 

20 ‘‘(iii) INTERNATIONAL AGREE21 MENTS.—This subparagraph shall be ap22 plied in a manner which is consistent with 

23 the obligations of the United States under 

24 international agreements. 


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1 ‘‘(8) CREDIT REDUCED FOR GRANTS, TAX-EX2 EMPT BONDS, SUBSIDIZED ENERGY FINANCING, AND

3 OTHER CREDITS.—Rules similar to the rules under 

4 section 45(b)(3) shall apply for purposes of this sec5 tion. 

6 ‘‘(h) ELECTION FOR DIRECT PAYMENT.— 

7 ‘‘(1) IN GENERAL.—The applicable percentage 

8 of the amount of any credit determined under sub9 section (a) with respect to any qualified facility for 

10 any taxable year during the period described in sub11 section (b)(1)(B) shall, at the election of the tax12 payer, be treated as a payment equal to such 

13 amount which is made by the taxpayer against the 

14 tax imposed by chapter 1 for such taxable year. 

15 ‘‘(2) FORM AND EFFECT OF ELECTION.— 

16 ‘‘(A) IN GENERAL.—An election under 

17 paragraph (1) shall be made prior to the date 

18 on which the qualified facility is placed in serv19 ice and in such manner as the Secretary may 

20 prescribe. Such election, once made, shall— 

21 ‘‘(i) be irrevocable with respect to 

22 such qualified facility for the period de23 scribed in subsection (b)(1)(B), and 

24 ‘‘(ii) for any taxable year during such 

25 period, reduce the amount of the credit 


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1 which would (but for this subsection) be al2 lowable under this section with respect to 

3 such qualified facility for such taxable year 

4 to zero. 

5 ‘‘(B) ADDITIONAL INFORMATION.—For 

6 purposes of an election under paragraph (1), 

7 the Secretary may require such information as 

8 the Secretary deems necessary for purposes of 

9 preventing duplication, fraud, or any improper 

10 payments under this subsection. 

11 ‘‘(3) APPLICATION TO PARTNERSHIPS AND S

12 CORPORATIONS.—In the case of a partnership or S 

13 corporation which makes an election under para14 graph (1)— 

15 ‘‘(A) such paragraph shall apply with re16 spect to such partnership or corporation with17 out regard to the fact that no tax is imposed 

18 by chapter 1 on such partnership or corpora19 tion, and 

20 ‘‘(B)(i) in the case of a partnership, each 

21 partner’s distributive share of the credit deter22 mined under subsection (a) with respect to the 

23 qualified facility shall be deemed to be zero, and 

24 ‘‘(ii) in the case of a S corporation, each 

25 shareholder’s pro rata share of the credit deterVerDate Sep 11 2014 00:26 Jun 22, 2021 Jkt 019200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\S2118.PCS S2118

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1 mined under subsection (a) with respect to the 

2 qualified facility shall be deemed to be zero. 

3 ‘‘(4) CERTAIN ENTITIES TREATED AS TAX4 PAYERS.—In the case of an election under this sub5 section— 

6 ‘‘(A) any State utility with a service obliga7 tion, as such terms are defined in section 217 

8 of the Federal Power Act (as in effect on the 

9 date of the enactment of this subsection), 

10 ‘‘(B) any mutual or cooperative electric 

11 company described in section 501(c)(12) or sec12 tion 1381(a)(2)(C), or 

13 ‘‘(C) an Indian tribal government (as de14 fined in section 139E(c)(1)), 

15 shall be treated as a taxpayer for purposes of this 

16 subsection and determining the amount of any credit 

17 under subsection (a). 

18 ‘‘(5) EXCESS PAYMENT.— 

19 ‘‘(A) IN GENERAL.—In the case of any 

20 payment made to a taxpayer under this sub21 section which the Secretary determines con22 stitutes an excessive payment, the tax imposed 

23 on such taxpayer by chapter 1 for the taxable 

24 year in which such determination is made shall 


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1 be increased by an amount equal to the sum 

2 of— 

3 ‘‘(i) the amount of the excessive pay4 ment, plus 

5 ‘‘(ii) an amount equal to 20 percent of 

6 the excessive payment. 

7 ‘‘(B) REASONABLE CAUSE.—Subparagraph 

8 (A)(ii) shall not apply if the taxpayer dem9 onstrates to the satisfaction of the Secretary 

10 that the excessive payment resulted from rea11 sonable cause. 

12 ‘‘(C) DEFINITION.—For purposes of this 

13 paragraph, the term ‘excessive payment’ means, 

14 with respect to a qualified facility for any tax15 able year, an amount equal to the excess of— 

16 ‘‘(i) the amount of the payment made 

17 to the taxpayer under this subsection with 

18 respect to such facility for such taxable 

19 year, over 

20 ‘‘(ii) the amount of the credit which 

21 (without application of this subsection) is 

22 otherwise allowable under this section with 

23 respect to such facility for such taxable 

24 year. 


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1 ‘‘(6) APPLICABLE PERCENTAGE.—For purposes 

2 of paragraph (1)— 

3 ‘‘(A) IN GENERAL.—In the case of any 

4 qualified facility which satisfies the require5 ments under subsection (g)(7)(C)(ii) with re6 spect to the construction of such facility, the 

7 applicable percentage shall be 100 percent. 

8 ‘‘(B) PHASED DOMESTIC CONTENT RE9 QUIREMENT.—Subject to subparagraph (C), in 

10 the case of any qualified facility which fails to 

11 satisfy the requirements under such subsection 

12 with respect to the construction of such facility, 

13 the applicable percentage shall be— 

14 ‘‘(i) if construction of such facility 

15 began before January 1, 2024, 100 per16 cent, 

17 ‘‘(ii) if construction of such facility 

18 began in calendar year 2024, 90 percent, 

19 ‘‘(iii) if construction of such facility 

20 began in calendar year 2025, 85 percent, 

21 and 

22 ‘‘(iv) if construction of such facility 

23 began after December 31, 2025, 0 percent. 

24 ‘‘(C) EXCEPTION.—If the Secretary deter25 mines that, for purposes of application of the 


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1 requirements under subsection (g)(7)(C)(ii) 

2 with respect to the construction of the qualified 

3 facility— 

4 ‘‘(i) their application would be incon5 sistent with the public interest, 

6 ‘‘(ii) such materials and products are 

7 not produced in the United States in suffi8 cient and reasonably available quantities 

9 and of a satisfactory quality, or 

10 ‘‘(iii) inclusion of domestic material 

11 will increase the cost of the construction of 

12 the qualified facility by more than 25 per13 cent, 

14 the applicable percentage shall be 100 per15 cent.’’. 

16 (b) CONFORMING AMENDMENTS.— 

17 (1) Section 38(b) is amended— 

18 (A) in paragraph (32), by striking ‘‘plus’’ 

19 at the end, 

20 (B) in paragraph (33), by striking the pe21 riod at the end and inserting ‘‘, plus’’, and 

22 (C) by adding at the end the following new 

23 paragraph: 

24 ‘‘(34) the clean electricity production credit de25 termined under section 45U(a).’’. 


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1 (2) The table of sections for subpart D of part 

2 IV of subchapter A of chapter 1 is amended by add3 ing at the end the following new item: 

‘‘Sec. 45U. Clean electricity production credit.’’. 

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

5 this section shall apply to facilities placed in service after 

6 December 31, 2022. 

7 SEC. 102. CLEAN ELECTRICITY INVESTMENT CREDIT. 

8 (a) BUSINESS CREDIT.— 

9 (1) IN GENERAL.—Subpart E of part IV of 

10 subchapter A of chapter 1 is amended by inserting 

11 after section 48C the following new section: 

12 ‘‘SEC. 48D. CLEAN ELECTRICITY INVESTMENT CREDIT. 

13 ‘‘(a) INVESTMENT CREDIT FOR QUALIFIED PROP14 ERTY.— 

15 ‘‘(1) IN GENERAL.—For purposes of section 46, 

16 the clean electricity investment credit for any taxable 

17 year is— 

18 ‘‘(A) except as provided in subparagraph 

19 (B), an amount equal to 30 percent of the 

20 qualified investment for such taxable year with 

21 respect to— 

22 ‘‘(i) any qualified facility, and 

23 ‘‘(ii) any grid improvement property, 

24 and 


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1 ‘‘(B) in the case of a qualified facility 

2 which is a microgrid, an amount equal to the 

3 product of— 

4 ‘‘(i) 30 percent of the qualified invest5 ment for such taxable year with respect to 

6 such microgrid, and 

7 ‘‘(ii) the relative avoided emissions 

8 rate with respect to such microgrid (as de9 termined under subsection (b)(3)(C)(iv)). 

10 ‘‘(2) INCREASE IN CREDIT RATE IN CERTAIN

11 CASES.— 

12 ‘‘(A) DISADVANTAGED AND ENERGY COM13 MUNITIES.— 

14 ‘‘(i) IN GENERAL.—In the case of— 

15 ‘‘(I) any energy storage property 

16 or any qualified investment with re17 spect to a qualified facility (with the 

18 exception of any such facility de19 scribed in section 45U(b)(2)(B))— 

20 ‘‘(aa) which is placed in 

21 service within a disadvantaged 

22 community or an energy commu23 nity (as defined in section 

24 45U(g)(7)(B)(ii)), and 


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1 ‘‘(bb) has a maximum net 

2 output of less than 5 megawatts, 

3 or 

4 ‘‘(II) any qualified property 

5 which is not described in subclause (I) 

6 and is placed in service within an en7 ergy community, 

8 for purposes applying paragraph (1) with 

9 respect to such property or investment, the 

10 percentage under subparagraph (A) of 

11 such paragraph (or, in the case of a 

12 microgrid, subparagraph (B)(i) of such 

13 paragraph), shall be increased by 10 per14 centage points. 

15 ‘‘(ii) DISADVANTAGED COMMUNITY.— 

16 For purposes of this subparagraph, the 

17 term ‘disadvantaged community’ has the 

18 same meaning given the term ‘low-income 

19 community’ in section 45D(e)(1), as ap20 plied by substituting ‘60 percent’ for ‘80 

21 percent’ each place it appears in subpara22 graph (B) thereof. 

23 ‘‘(B) NASCENT CLEAN ENERGY TECH24 NOLOGY.—In the case of any qualified facility 

25 which generates electricity using a nascent 


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1 clean energy technology (as defined in section 

2 45U(g)(7)(A)(ii)), for purposes applying para3 graph (1) with respect to any qualified invest4 ment with respect to such facility, the percent5 age under subparagraph (A) of such paragraph 

6 (or, in the case of a microgrid, subparagraph 

7 (B)(i) of such paragraph), shall be increased by 

8 10 percentage points. 

9 ‘‘(C) DOMESTIC CONTENT.— 

10 ‘‘(i) IN GENERAL.—In the case of any 

11 qualified investment with respect to a 

12 qualified facility or with respect to grid im13 provement property which satisfies the re14 quirement under clause (ii)(I), for pur15 poses of applying paragraph (1) with re16 spect to such qualified investment, the per17 centage under subparagraph (A) of such 

18 paragraph (or, in the case of a qualified in19 vestment with respect to a microgrid, sub20 paragraph (B)(i) of such paragraph), shall 

21 be increased by 10 percentage points. 

22 ‘‘(ii) REQUIREMENTS.— 

23 ‘‘(I) IN GENERAL.—The require24 ment described in this subclause with 

25 respect to any qualified investment 


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1 with respect to a qualified facility or 

2 with respect to grid improvement 

3 property is satisfied if the taxpayer 

4 certifies to the Secretary that— 

5 ‘‘(aa) in the case of a quali6 fied investment with respect to a 

7 qualified facility, any property 

8 used at such facility is composed 

9 of steel, iron, or manufactured 

10 products which were produced in 

11 the United States, and 

12 ‘‘(bb) in the case of a quali13 fied investment with respect to 

14 any grid improvement property, 

15 such property is composed of 

16 steel, iron, or manufactured 

17 products which were produced in 

18 the United States. 

19 ‘‘(II) STEEL AND IRON.—In the 

20 case of steel or iron, subclause (I) 

21 shall be applied in a manner con22 sistent with section 661.5(b) of title 

23 49, Code of Federal Regulations. 

24 ‘‘(III) MANUFACTURED PROD25 UCT.—For purposes of subclause (I), 


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1 a manufactured product shall be 

2 deemed to have been manufactured in 

3 the United States if not less than 55 

4 percent of the total cost of the compo5 nents of such product is attributable 

6 to components which are mined, pro7 duced, or manufactured in the United 

8 States. 

9 ‘‘(iii) INTERNATIONAL AGREE10 MENTS.—This subparagraph shall be ap11 plied in a manner which is consistent with 

12 the obligations of the United States under 

13 international agreements. 

14 ‘‘(D) MAXIMUM CREDIT RATE.—Notwith15 standing any adjustment or increase pursuant 

16 to this paragraph, the percentage under sub17 paragraph (A) or (B)(i) of paragraph (1) shall 

18 not exceed 50 percent. 

19 ‘‘(b) QUALIFIED INVESTMENT WITH RESPECT TO

20 ANY QUALIFIED FACILITY.— 

21 ‘‘(1) IN GENERAL.—For purposes of subsection 

22 (a), the qualified investment with respect to any 

23 qualified facility for any taxable year is the sum 

24 of— 


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1 ‘‘(A) the basis of any qualified property 

2 placed in service by the taxpayer during such 

3 taxable year which is part of a qualified facility, 

4 plus 

5 ‘‘(B) the amount of any expenditures 

6 which are— 

7 ‘‘(i) paid or incurred by the taxpayer 

8 for qualified interconnection property— 

9 ‘‘(I) in connection with a quali10 fied facility which has a maximum net 

11 output of not greater than 5 

12 megawatts, and 

13 ‘‘(II) placed in service during the 

14 taxable year of the taxpayer, and 

15 ‘‘(ii) properly chargeable to capital ac16 count of the taxpayer. 

17 ‘‘(2) QUALIFIED PROPERTY.—The term ‘quali18 fied property’ means property— 

19 ‘‘(A) which is— 

20 ‘‘(i) tangible personal property, or 

21 ‘‘(ii) other tangible property (not in22 cluding a building or its structural compo23 nents), but only if such property is used as 

24 an integral part of the qualified facility, 


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1 ‘‘(B) with respect to which depreciation (or 

2 amortization in lieu of depreciation) is allow3 able, and 

4 ‘‘(C)(i) the construction, reconstruction, or 

5 erection of which is completed by the taxpayer, 

6 or 

7 ‘‘(ii) which is acquired by the taxpayer if 

8 the original use of such property commences 

9 with the taxpayer. 

10 ‘‘(3) QUALIFIED FACILITY.— 

11 ‘‘(A) IN GENERAL.—For purposes of this 

12 section, the term ‘qualified facility’ means a fa13 cility— 

14 ‘‘(i) which is used for the generation 

15 of electricity, 

16 ‘‘(ii) which is originally placed in serv17 ice after December 31, 2022, 

18 ‘‘(iii) for which the anticipated green19 house gas emissions rate (as determined 

20 under subparagraph (B)(ii)) is not greater 

21 than zero, and 

22 ‘‘(iv) in the case of any facility with a 

23 maximum net output equal to or greater 

24 than 1 megawatt, which— 


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1 ‘‘(I) satisfies the requirements of 

2 subparagraph (B)(iii), and 

3 ‘‘(II) with respect to the con4 struction of such facility, satisfies the 

5 requirements under section 501 of the 

6 Clean Energy for America Act. 

7 ‘‘(B) ADDITIONAL RULES.— 

8 ‘‘(i) EXPANSION OF FACILITY; INCRE9 MENTAL PRODUCTION.—Rules similar to 

10 the rules of section 45U(b)(1)(C) shall 

11 apply for purposes of this paragraph. 

12 ‘‘(ii) GREENHOUSE GAS EMISSIONS

13 RATE.—Rules similar to the rules of sec14 tion 45U(b)(2) shall apply for purposes of 

15 this paragraph. 

16 ‘‘(iii) WAGE REQUIREMENTS.— 

17 ‘‘(I) IN GENERAL.—The require18 ments described in this subclause with 

19 respect to any facility are that the 

20 taxpayer shall ensure that any labor21 ers and mechanics employed by con22 tractors and subcontractors in— 

23 ‘‘(aa) the construction of 

24 such facility, or 


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1 ‘‘(bb) for any year during 

2 the 5-year period beginning on 

3 the date the facility is originally 

4 placed in service, the alteration 

5 or repair of such facility, 

6 shall be paid wages at rates not less 

7 than the prevailing rates for construc8 tion, alteration, or repair of a similar 

9 character in the locality as determined 

10 by the Secretary of Labor, in accord11 ance with subchapter IV of chapter 31 

12 of title 40, United States Code. 

13 ‘‘(II) CORRECTION AND PENALTY

14 RELATED TO FAILURE TO SATISFY

15 WAGE REQUIREMENTS.—For purposes 

16 of section 50(a), a taxpayer shall not 

17 be treated as failing to satisfy the re18 quirements of this clause if such tax19 payer meets requirements similar to 

20 the requirements of section 

21 45U(b)(3)(B)(ii). 

22 ‘‘(C) MICROGRIDS.— 

23 ‘‘(i) IN GENERAL.—For purposes of 

24 this section, the term ‘qualified facility’ 

25 shall include any microgrid which satisfies 


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1 the requirements under clauses (i), (ii), 

2 and (iv) of subparagraph (A). 

3 ‘‘(ii) MICROGRID.—For purposes of 

4 this section, the term ‘microgrid’ means an 

5 interconnected system of distributed en6 ergy resources used for the generation of 

7 electricity which— 

8 ‘‘(I) is contained within a clearly 

9 defined electrical boundary and has 

10 the ability to operate as a single and 

11 controllable entity, 

12 ‘‘(II) has the ability to be man13 aged and isolated from the applicable 

14 grid region in order to withstand larg15 er disturbances and maintain the sup16 ply of electricity to connected infra17 structure, and 

18 ‘‘(III) has a maximum net output 

19 of not greater than 20 megawatts. 

20 ‘‘(iii) APPLICABLE GRID REGION.— 

21 For purposes of this subparagraph, the 

22 term ‘applicable grid region’ means a set 

23 of power plants and transmission lines 

24 which are— 


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1 ‘‘(I) under the control of a single 

2 grid operator, and 

3 ‘‘(II) interconnected to the 

4 microgrid. 

5 ‘‘(iv) RELATIVE AVOIDED EMISSIONS

6 RATE.— 

7 ‘‘(I) IN GENERAL.—For purposes 

8 of subsection (a)(1)(B)(ii), the relative 

9 avoided emissions rate shall be the 

10 amount equal to the quotient of— 

11 ‘‘(aa) the amount equal to 

12 the non-baseload output emis13 sions rate for the applicable grid 

14 region minus the greenhouse gas 

15 emissions rate for the microgrid, 

16 divided by 

17 ‘‘(bb) the non-baseload out18 put emissions rate for the appli19 cable grid region. 

20 ‘‘(II) NON-BASELOAD OUTPUT

21 EMISSIONS RATE.— 

22 ‘‘(aa) IN GENERAL.—For 

23 purposes of this subparagraph, 

24 the term ‘non-baseload output 

25 emissions rate’ means the 


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1 amount of greenhouse gases 

2 emitted into the atmosphere by 

3 the applicable grid region for the 

4 production of electricity (ex5 pressed as grams of CO2e per 

6 KWh) above baseload. 

7 ‘‘(bb) DETERMINATION.— 

8 The non-baseload output emis9 sions rate for any applicable grid 

10 region shall be determined by the 

11 Administrator of the Environ12 mental Protection Agency and 

13 the Secretary. 

14 ‘‘(D) EXCLUSION.—The term ‘qualified fa15 cility’ shall not include any facility for which— 

16 ‘‘(i) a renewable electricity production 

17 credit determined under section 45, 

18 ‘‘(ii) an advanced nuclear power facil19 ity production credit determined under sec20 tion 45J, 

21 ‘‘(iii) a carbon oxide sequestration 

22 credit determined under section 45Q, 

23 ‘‘(iv) a clean electricity production 

24 credit determined under section 45U, or 


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1 ‘‘(v) an energy credit determined 

2 under section 48, 

3 is allowed under section 38 for the taxable year 

4 or any prior taxable year. 

5 ‘‘(4) QUALIFIED INTERCONNECTION PROP6 ERTY.—For purposes of this paragraph— 

7 ‘‘(A) IN GENERAL.—The term ‘qualified 

8 interconnection property’ means, with respect to 

9 a qualified facility which is not a microgrid, any 

10 tangible property— 

11 ‘‘(i) which is part of an addition, 

12 modification, or upgrade to a transmission 

13 system which is required at or beyond the 

14 point at which the qualified facility inter15 connects to such transmission system in 

16 order to accommodate such interconnec17 tion, 

18 ‘‘(ii)(I) which is constructed, recon19 structed, or erected by the taxpayer, or 

20 ‘‘(II) for which the cost with respect 

21 to the construction, reconstruction, or erec22 tion of such property is paid or incurred by 

23 such taxpayer, and 


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1 ‘‘(iii) the original use of which, pursu2 ant to an interconnection agreement, com3 mences with the utility. 

4 ‘‘(B) INTERCONNECTION AGREEMENT.— 

5 The term ‘interconnection agreement’ means an 

6 agreement entered into by a utility and the tax7 payer for the purposes of interconnecting the 

8 qualified facility owned by such taxpayer to the 

9 transmission system of such utility. 

10 ‘‘(C) TRANSMISSION SYSTEM.—The term 

11 ‘transmission system’ means the facilities 

12 owned, controlled, or operated by a utility which 

13 are used to provide electric transmission serv14 ice. 

15 ‘‘(D) UTILITY.—The term ‘utility’ means 

16 the owner or operator of an electrical trans17 mission or distribution system which is subject 

18 to the regulatory authority of— 

19 ‘‘(i) the Federal Energy Regulatory 

20 Commission, or 

21 ‘‘(ii) a State public utility commission 

22 or other appropriate State agency. 

23 ‘‘(5) COORDINATION WITH REHABILITATION

24 CREDIT.—The qualified investment with respect to 

25 any qualified facility for any taxable year shall not 


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1 include that portion of the basis of any property 

2 which is attributable to qualified rehabilitation ex3 penditures (as defined in section 47(c)(2)). 

4 ‘‘(6) DEFINITIONS.—For purposes of this sub5 section, the terms ‘CO2e per KWh’ and ‘greenhouse 

6 gas emissions rate’ have the same meaning given 

7 such terms under section 45U(b). 

8 ‘‘(c) QUALIFIED INVESTMENT WITH RESPECT TO

9 GRID IMPROVEMENT PROPERTY.— 

10 ‘‘(1) IN GENERAL.— 

11 ‘‘(A) QUALIFIED INVESTMENT.—For pur12 poses of subsection (a), the qualified investment 

13 with respect to grid improvement property for 

14 any taxable year is the basis of any grid im15 provement property placed in service by the tax16 payer during such taxable year. 

17 ‘‘(B) GRID IMPROVEMENT PROPERTY.— 

18 For purposes of this section, the term ‘grid im19 provement property’ means any energy storage 

20 property or qualified transmission property 

21 which— 

22 ‘‘(i) satisfies the requirements of 

23 paragraph (4), and 

24 ‘‘(ii) with respect to the construction 

25 of such property, satisfies the requirements 


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1 under section 501 of the Clean Energy for 

2 America Act. 

3 ‘‘(2) ENERGY STORAGE PROPERTY.—For pur4 poses of this subsection, the term ‘energy storage 

5 property’ means property— 

6 ‘‘(A) which receives, stores, and delivers 

7 electricity, or energy for conversion to elec8 tricity, provided that such electricity is— 

9 ‘‘(i) sold by the taxpayer to an unre10 lated person, or 

11 ‘‘(ii) stored by the taxpayer for an un12 related person, 

13 ‘‘(B) with respect to which depreciation (or 

14 amortization in lieu of depreciation) is allow15 able, 

16 ‘‘(C)(i) the construction, reconstruction, or 

17 erection of which is completed by the taxpayer, 

18 or 

19 ‘‘(ii) which is acquired by the taxpayer if 

20 the original use of such property commences 

21 with the taxpayer, 

22 ‘‘(D) which has a capacity of not less than 

23 5 kilowatt hours, and 

24 ‘‘(E) which is placed in service after De25 cember 31, 2021. 


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1 ‘‘(3) QUALIFIED TRANSMISSION PROPERTY.— 

2 ‘‘(A) IN GENERAL.—For purposes of this 

3 subsection, the term ‘qualified transmission 

4 property’ means property— 

5 ‘‘(i) which is— 

6 ‘‘(I) an overhead, submarine, or 

7 underground transmission property 

8 which is capable of transmitting elec9 tricity at a voltage of not less than 

10 275 kilovolts, and 

11 ‘‘(II) other equipment necessary 

12 for the operation of property described 

13 in clause (i), including equipment list14 ed as ‘transmission plant’ in the Uni15 form System of Accounts for the Fed16 eral Energy Regulatory Commission 

17 under part 101 of subchapter C of 

18 chapter I of title 18, Code of Federal 

19 Regulations, 

20 ‘‘(ii) which satisfies the requirements 

21 under subparagraphs (B), (C), and (E) of 

22 paragraph (2). 

23 ‘‘(B) EXCLUSION.—The term ‘qualified 

24 transmission property’ shall not include any 


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1 property used for distribution of electricity be2 tween substations and end-use customers. 

3 ‘‘(4) WAGE REQUIREMENTS.— 

4 ‘‘(A) IN GENERAL.—The requirements de5 scribed in this subparagraph with respect to 

6 any property are that the taxpayer shall ensure 

7 that any laborers and mechanics employed by 

8 contractors and subcontractors in— 

9 ‘‘(i) the construction of such property, 

10 or 

11 ‘‘(ii) for any year during the 5-year 

12 period beginning on the date the property 

13 is originally placed in service, the alter14 ation or repair of such property, 

15 shall be paid wages at rates not less than the 

16 prevailing rates for construction, alteration, or 

17 repair of a similar character in the locality as 

18 determined by the Secretary of Labor, in ac19 cordance with subchapter IV of chapter 31 of 

20 title 40, United States Code. 

21 ‘‘(B) CORRECTION AND PENALTY RELATED

22 TO FAILURE TO SATISFY WAGE REQUIRE23 MENTS.—For purposes of section 50(a), a tax24 payer shall not be treated as failing to satisfy 

25 the requirements of this clause if such taxpayer 


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1 meets requirements similar to the requirements 

2 of section 45U(b)(3)(B)(ii). 

3 ‘‘(d) SPECIAL RULES.— 

4 ‘‘(1) CERTAIN PROGRESS EXPENDITURE RULES

5 MADE APPLICABLE.—Rules similar to the rules of 

6 subsections (c)(4) and (d) of section 46 (as in effect 

7 on the day before the date of the enactment of the 

8 Revenue Reconciliation Act of 1990) shall apply for 

9 purposes of subsection (a). 

10 ‘‘(2) SPECIAL RULE FOR PROPERTY FINANCED

11 BY SUBSIDIZED ENERGY FINANCING OR INDUSTRIAL

12 DEVELOPMENT BONDS.—Rules similar to the rules 

13 of section 48(a)(4) shall apply for purposes of this 

14 section. 

15 ‘‘(e) CREDIT PHASE-OUT.— 

16 ‘‘(1) IN GENERAL.—If the Secretary, the Sec17 retary of Energy, and the Administrator of the En18 vironmental Protection Agency determine that the 

19 annual greenhouse gas emissions from the produc20 tion of electricity in the United States are equal to 

21 or less than 25 percent of the annual greenhouse gas 

22 emissions from the production of electricity in the 

23 United States for calendar year 2021, the amount of 

24 the clean electricity investment credit under sub25 section (a) for any qualified investment with respect 


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1 to any qualified facility or grid improvement prop2 erty the construction of which begins during a cal3 endar year described in paragraph (2) shall be equal 

4 to the product of— 

5 ‘‘(A) the amount of the credit determined 

6 under subsection (a) without regard to this sub7 section, multiplied by 

8 ‘‘(B) the phase-out percentage under para9 graph (2). 

10 ‘‘(2) PHASE-OUT PERCENTAGE.—The phase-out 

11 percentage under this paragraph is equal to— 

12 ‘‘(A) for any qualified investment with re13 spect to any qualified facility or grid improve14 ment property the construction of which begins 

15 during the first calendar year following the cal16 endar year in which the determination described 

17 in paragraph (1) is made, 100 percent, 

18 ‘‘(B) for any qualified investment with re19 spect to any qualified facility or grid improve20 ment property the construction of which begins 

21 during the second calendar year following such 

22 determination year, 75 percent, 

23 ‘‘(C) for any qualified investment with re24 spect to any qualified facility or grid improve25 ment property the construction of which begins 


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1 during the third calendar year following such 

2 determination year, 50 percent, and 

3 ‘‘(D) for any qualified investment with re4 spect to any qualified facility or grid improve5 ment property the construction of which begins 

6 during any calendar year subsequent to the 

7 year described in subparagraph (C), 0 percent. 

8 ‘‘(f) GREENHOUSE GAS.—In this section, the term 

9 ‘greenhouse gas’ has the same meaning given such term 

10 under section 45U(e)(2). 

11 ‘‘(g) RECAPTURE OF CREDIT.—For purposes of sec12 tion 50, if the Secretary and the Administrator of the En13 vironmental Protection Agency determine that the green14 house gas emissions rate for a qualified facility is signifi15 cantly higher than the anticipated greenhouse gas emis16 sions rate claimed by the taxpayer for purposes of the 

17 clean electricity investment credit under this section, the 

18 facility or equipment shall cease to be investment credit 

19 property in the taxable year in which the determination 

20 is made. 

21 ‘‘(h) FINAL GUIDANCE.—Not later than January 1, 

22 2023, the Secretary and the Administrator of the Environ23 mental Protection Agency shall issue final guidance re24 garding implementation of this section. 

25 ‘‘(i) ELECTION FOR DIRECT PAYMENT.— 


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1 ‘‘(1) IN GENERAL.—In the case of any qualified 

2 property or grid improvement property placed in 

3 service during any taxable year, the applicable per4 centage of the amount of any credit determined 

5 under subsection (a) with respect to such property 

6 for such taxable year shall, at the election of the tax7 payer, be treated as a payment equal to such 

8 amount which is made by the taxpayer against the 

9 tax imposed by chapter 1 for such taxable year (re10 gardless of whether such tax would have been on 

11 such taxpayer). 

12 ‘‘(2) FORM AND EFFECT OF ELECTION.— 

13 ‘‘(A) IN GENERAL.—An election under 

14 paragraph (1) shall be made prior to the date 

15 on which the qualified property or grid improve16 ment property is placed in service and in such 

17 manner as the Secretary may prescribe. Such 

18 election, once made, shall— 

19 ‘‘(i) be irrevocable with respect to the 

20 qualified property or grid improvement 

21 property to which such election applies, 

22 and 

23 ‘‘(ii) reduce the amount of the credit 

24 which would (but for this subsection) be al25 lowable under this section with respect to 


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1 such property for the taxable year in which 

2 such property is placed in service to zero. 

3 ‘‘(B) ADDITIONAL INFORMATION.—For 

4 purposes of an election under paragraph (1), 

5 the Secretary may require such information as 

6 the Secretary deems necessary for purposes of 

7 preventing duplication, fraud, or any improper 

8 payments under this subsection. 

9 ‘‘(3) APPLICATION TO PARTNERSHIPS AND S

10 CORPORATIONS; EXCESS PAYMENTS.—Rules similar 

11 to the rules of paragraphs (3) and (5) of section 

12 45U(h) shall apply for purposes of this subsection. 

13 ‘‘(4) SPECIAL RULES FOR CERTAIN ENTITIES.— 

14 ‘‘(A) ELIGIBILITY OF CERTAIN PROP15 ERTY.—For purposes of this subsection, para16 graphs (3) and (4) of section 50(b) shall not 

17 apply with respect to— 

18 ‘‘(i) any State utility with a service 

19 obligation, as such terms are defined in 

20 section 217 of the Federal Power Act (as 

21 in effect on the date of the enactment of 

22 this subsection), 

23 ‘‘(ii) any mutual or cooperative elec24 tric company described in section 

25 501(c)(12) or section 1381(a)(2)(C), or 


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1 ‘‘(iii) an Indian tribal government (as 

2 defined in section 139E(c)(1)). 

3 ‘‘(B) CERTAIN ENTITIES TREATED AS TAX4 PAYERS.—In the case of an election under this 

5 subsection, any entity described in clause (i), 

6 (ii), or (iii) of subparagraph (A) shall be treat7 ed as a taxpayer for purposes of this subsection 

8 and determining the amount of any credit 

9 under subsection (a). 

10 ‘‘(5) APPLICABLE PERCENTAGE.—For purposes 

11 of paragraph (1)— 

12 ‘‘(A) IN GENERAL.—In the case of any 

13 property which satisfies the requirements under 

14 subsection (a)(2)(C)(ii) with respect to the con15 struction of such property, the applicable per16 centage shall be 100 percent. 

17 ‘‘(B) PHASED DOMESTIC CONTENT RE18 QUIREMENT.—Subject to subparagraph (C), in 

19 the case of any property which fails to satisfy 

20 the requirements under such subsection with re21 spect to the construction of such property, the 

22 applicable percentage shall be— 

23 ‘‘(i) if construction of such property 

24 began before January 1, 2024, 100 per25 cent, 


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1 ‘‘(ii) if construction of such property 

2 began in calendar year 2024, 90 percent, 

3 ‘‘(iii) if construction of such property 

4 began in calendar year 2025, 85 percent, 

5 and 

6 ‘‘(iv) if construction of such property 

7 began after December 31, 2025, 0 percent. 

8 ‘‘(C) EXCEPTION.—If the Secretary deter9 mines that, for purposes of application of the 

10 requirements under subsection (a)(2)(C)(ii) 

11 with respect to the construction of such prop12 erty— 

13 ‘‘(i) their application would be incon14 sistent with the public interest, 

15 ‘‘(ii) such materials and products are 

16 not produced in the United States in suffi17 cient and reasonably available quantities 

18 and of a satisfactory quality, or 

19 ‘‘(iii) inclusion of domestic material 

20 will increase the cost of the construction of 

21 the property by more than 25 percent, 

22 the applicable percentage shall be 100 per23 cent.’’. 

24 (2) PUBLIC UTILITY PROPERTY.—Section 50(d) 

25 is amended— 


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1 (A) in paragraph (2)— 

2 (i) by adding after the first sentence 

3 the following new sentence: ‘‘At the elec4 tion of a taxpayer, this paragraph shall not 

5 apply to any grid improvement property 

6 (as defined in section 48D(c)(1)(B)), pro7 vided—’’, and 

8 (ii) by adding the following new sub9 paragraphs: 

10 ‘‘(A) no election under this paragraph shall 

11 be permitted if the making of such election is 

12 prohibited by a State or political subdivision 

13 thereof, by any agency or instrumentality of the 

14 United States, or by a public service or public 

15 utility commission or other similar body of any 

16 State or political subdivision that regulates pub17 lic utilities as described in section 

18 7701(a)(33)(A), 

19 ‘‘(B) an election under this paragraph 

20 shall be made separately with respect to each 

21 grid improvement property by the due date (in22 cluding extensions) of the Federal tax return 

23 for the taxable year in which such property is 

24 placed in service by the taxpayer, and once 


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1 made, may be revoked only with the consent of 

2 the Secretary, and 

3 ‘‘(C) an election shall not apply with re4 spect to any energy storage property (as de5 fined in section 48D(c)(2)) if such property has 

6 a maximum capacity equal to or less than 500 

7 kilowatt hours.’’, and 

8 (B) by adding at the end the following: 

9 ‘‘Paragraphs (1)(B) and (2)(B) of the section 

10 46(e) referred to in paragraph (1) of this sub11 section shall not apply to any qualified invest12 ment described in section 48D of a real estate 

13 investment trust.’’ 

14 (3) CONFORMING AMENDMENTS.— 

15 (A) Section 46 is amended— 

16 (i) by striking ‘‘and’’ at the end of 

17 paragraph (5), 

18 (ii) by striking the period at the end 

19 of paragraph (6) and inserting ‘‘, and’’, 

20 and 

21 (iii) by adding at the end the fol22 lowing new paragraph: 

23 ‘‘(7) the clean electricity investment credit.’’. 

24 (B) Section 49(a)(1)(C) is amended— 


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1 (i) by striking ‘‘and’’ at the end of 

2 clause (iv), 

3 (ii) by striking the period at the end 

4 of clause (v) and inserting a comma, and 

5 (iii) by adding at the end the fol6 lowing new clauses: 

7 ‘‘(vi) the basis of any qualified prop8 erty which is part of a qualified facility 

9 under section 48D, and 

10 ‘‘(vii) the basis of any energy storage 

11 property under section 48D.’’. 

12 (C) Section 50(a)(2)(E) is amended by 

13 striking ‘‘or 48C(b)(2)’’ and inserting 

14 ‘‘48C(b)(2), or 48D(e)’’. 

15 (D) The table of sections for subpart E of 

16 part IV of subchapter A of chapter 1 is amend17 ed by inserting after the item relating to section 

18 48C the following new item: 

‘‘48D. Clean electricity investment credit.’’. 

19 (4) EFFECTIVE DATE.—The amendments made 

20 by this subsection shall apply to property placed in 

21 service after December 31, 2021, under rules similar 

22 to the rules of section 48(m) of the Internal Revenue 

23 Code of 1986 (as in effect on the day before the 

24 date of the enactment of the Revenue Reconciliation 

25 Act of 1990). 


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1 (b) INDIVIDUAL CREDIT.— 

2 (1) IN GENERAL.—Subpart A of part IV of sub3 chapter A of chapter 1 is amended by inserting after 

4 section 25D the following: 

5 ‘‘SEC. 25E. RESIDENTIAL CLEAN ELECTRICITY CREDIT. 

6 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in7 dividual, there shall be allowed as a credit against the tax 

8 imposed by this chapter for the taxable year an amount 

9 equal to 30 percent of the expenditures made by the tax10 payer for any qualified property and any energy storage 

11 property which is— 

12 ‘‘(1) for use in connection with a dwelling unit 

13 which is located in the United States and used as a 

14 residence by the taxpayer, and 

15 ‘‘(2) placed in service during such taxable year. 

16 ‘‘(b) QUALIFIED PROPERTY.— 

17 ‘‘(1) IN GENERAL.—The term ‘qualified prop18 erty’ means property— 

19 ‘‘(A) which is tangible personal property, 

20 ‘‘(B) which is used for the generation of 

21 electricity, 

22 ‘‘(C) which is constructed, reconstructed, 

23 erected, or acquired by the taxpayer, 

24 ‘‘(D) the original use of which commences 

25 with the taxpayer, 


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1 ‘‘(E) which is originally placed in service 

2 after December 31, 2022, and 

3 ‘‘(F) for which the anticipated greenhouse 

4 gas emissions rate (as determined under para5 graph (2)) is not greater than zero. 

6 ‘‘(2) ESTABLISHMENT OF EMISSIONS RATES

7 FOR QUALIFIED PROPERTY.— 

8 ‘‘(A) IN GENERAL.—The Secretary and the 

9 Administrator of the Environmental Protection 

10 Agency, shall establish greenhouse gas emis11 sions rates for types or categories of qualified 

12 property which are for use in a dwelling unit, 

13 which a taxpayer shall use for purposes of this 

14 section. 

15 ‘‘(B) PUBLISHING EMISSIONS RATES.— 

16 The Secretary shall publish a table that sets 

17 forth the greenhouse gas emissions rates for 

18 similar types or categories of qualified property. 

19 ‘‘(c) ENERGY STORAGE PROPERTY.—The term ‘en20 ergy storage property’ means property which— 

21 ‘‘(1) receives, stores, and delivers electricity or 

22 energy for conversion to electricity which is con23 sumed or sold by the taxpayer, 

24 ‘‘(2) is equipped with a metering device which 

25 is owned and operated by an unrelated person, 


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1 ‘‘(3) has a capacity of not less than 3 kilowatt 

2 hours, and 

3 ‘‘(4) satisfies the requirements under subpara4 graphs (A), (C), (D), and (E) of subsection (b)(1). 

5 ‘‘(d) CARRYFORWARD OF UNUSED CREDIT.— 

6 ‘‘(1) IN GENERAL.—If the credit allowable 

7 under subsection (a) exceeds the applicable tax limit, 

8 such excess shall be carried to each of the 3 suc9 ceeding taxable years and added to the credit allow10 able under subsection (a) for such succeeding tax11 able year. 

12 ‘‘(2) LIMITATION.—The amount of the unused 

13 credit which may be taken into account under para14 graph (1) for any taxable year shall not exceed the 

15 amount (if any) by which the applicable tax limit for 

16 such taxable year exceeds the sum of— 

17 ‘‘(A) the credit allowable under subsection 

18 (a) for which such taxable year determined 

19 without regard to this subsection, and 

20 ‘‘(B) the amounts which, by reason of this 

21 subsection, are carried to such taxable year and 

22 are attributable to taxable years before the un23 used credit year. 

24 ‘‘(3) APPLICABLE TAX LIMIT.—For purposes of 

25 this subsection, the term ‘applicable tax limit’ means 


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1 the limitation imposed by section 26(a) for such tax2 able year reduced by the sum of the credits allowable 

3 under this subpart (other than this section). 

4 ‘‘(e) CREDIT PHASE-OUT.— 

5 ‘‘(1) IN GENERAL.—If the Secretary, the Sec6 retary of Energy, and the Administrator of the En7 vironmental Protection Agency determine that the 

8 annual greenhouse gas emissions from the produc9 tion of electricity in the United States are equal to 

10 or less than the percentage specified in section 

11 48D(e), the amount of the credit allowable under 

12 subsection (a) for any qualified property or energy 

13 storage property placed in service during a calendar 

14 year described in paragraph (2) shall be equal to the 

15 product of— 

16 ‘‘(A) the amount of the credit determined 

17 under subsection (a) without regard to this sub18 section, multiplied by 

19 ‘‘(B) the phase-out percentage under para20 graph (2). 

21 ‘‘(2) PHASE-OUT PERCENTAGE.—The phase-out 

22 percentage under this paragraph is equal to— 

23 ‘‘(A) for property placed in service during 

24 the first calendar year following the calendar 


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1 year in which the determination described in 

2 paragraph (1) is made, 100 percent, 

3 ‘‘(B) for property placed in service during 

4 the second calendar year following such deter5 mination year, 75 percent, 

6 ‘‘(C) for property placed in service during 

7 the third calendar year following such deter8 mination year, 50 percent, and 

9 ‘‘(D) for property placed in service during 

10 any calendar year subsequent to the year de11 scribed in subparagraph (C), 0 percent. 

12 ‘‘(f) SPECIAL RULES.—For purposes of this section: 

13 ‘‘(1) LABOR COSTS.—Expenditures for labor 

14 costs properly allocable to the onsite preparation, as15 sembly, or original installation of the qualified prop16 erty or energy storage property and for piping or 

17 wiring to interconnect such property to the dwelling 

18 unit shall be taken into account for purposes of this 

19 section. 

20 ‘‘(2) TENANT-STOCKHOLDER IN COOPERATIVE

21 HOUSING CORPORATION.—In the case of an indi22 vidual who is a tenant-stockholder (as defined in sec23 tion 216) in a cooperative housing corporation (as 

24 defined in such section), such individual shall be 

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1 portionate share (as defined in section 216(b)(3)) of 

2 any expenditures of such corporation. 

3 ‘‘(3) CONDOMINIUMS.— 

4 ‘‘(A) IN GENERAL.—In the case of an indi5 vidual who is a member of a condominium man6 agement association with respect to a condo7 minium which the individual owns, such indi8 vidual shall be treated as having made the indi9 vidual’s proportionate share of any expenditures 

10 of such association. 

11 ‘‘(B) CONDOMINIUM MANAGEMENT ASSO12 CIATION.—For purposes of this paragraph, the 

13 term ‘condominium management association’ 

14 means an organization which meets the require15 ments of paragraph (1) of section 528(c) (other 

16 than subparagraph (E) thereof) with respect to 

17 a condominium project substantially all of the 

18 units of which are used as residences. 

19 ‘‘(4) ALLOCATION IN CERTAIN CASES.—If less 

20 than 80 percent of the use of a property is for non21 business purposes, only that portion of the expendi22 tures for such property which is properly allocable to 

23 use for nonbusiness purposes shall be taken into ac24 count. 


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1 ‘‘(5) COORDINATION WITH OTHER CREDITS.— 

2 The terms ‘qualified property’ and ‘energy storage 

3 property’ shall not include any property for which a 

4 credit is allowed under section 25D for any expendi5 ture with respect to such property. 

6 ‘‘(g) BASIS ADJUSTMENT.—For purposes of this sub7 title, if a credit is allowed under this section for any ex8 penditures with respect to any property, the increase in 

9 the basis of such property which would (but for this sub10 section) result from such expenditures shall be reduced by 

11 the amount of the credit so allowed. 

12 ‘‘(h) FINAL GUIDANCE.—Not later than January 1, 

13 2023, the Secretary and the Administrator of the Environ14 mental Protection Agency shall issue final guidance re15 garding implementation of this section, including calcula16 tion of greenhouse gas emission rates for qualified prop17 erty and determination of residential clean electricity 

18 property credits under this section.’’. 

19 (2) CONFORMING AMENDMENTS.— 

20 (A) Section 23(c)(1) is amended by strik21 ing ‘‘and section 25D’’ and inserting ‘‘, section 

22 25D, and section 25E’’. 

23 (B) Section 25(e)(1)(C) is amended by 

24 striking ‘‘and 25D’’ and inserting ‘‘25D, and 

25 25E’’. 


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1 (C) Paragraph (1) of section 45(d) is 

2 amended by striking ‘‘with respect to which’’ 

3 and all that follows through the period and in4 serting the following: ‘‘with respect to which— 

5 ‘‘(A) any qualified small wind energy prop6 erty expenditure (as defined in subsection 

7 (d)(4) of section 25D) is taken into account in 

8 determining the credit under such section, or 

9 ‘‘(B) any expenditures for qualified prop10 erty (as defined in subsection (b) of section 

11 25E) which uses wind to produce electricity is 

12 taken into account in determining the credit 

13 under such section.’’. 

14 (D) Section 1016(a) is amended— 

15 (i) by redesignating paragraphs (35) 

16 through (38) as paragraphs (36) through 

17 (39), respectively, and 

18 (ii) by inserting after paragraph (34) 

19 the following: 

20 ‘‘(35) to the extent provided in section 25E(g), 

21 in the case of amounts with respect to which a credit 

22 has been allowed under section 25E,’’. 

23 (E) The table of contents for subpart A of 

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1 ed by inserting after the item relating to section 

2 25D the following new item: 

‘‘Sec. 25E. Residential clean electricity credit.’’. 

3 (3) EFFECTIVE DATE.—The amendments made 

4 by this subsection shall apply to property placed in 

5 service after December 31, 2022. 

6 SEC. 103. EXTENSIONS, MODIFICATIONS, AND TERMI7 NATIONS OF VARIOUS ENERGY PROVISIONS. 

8 (a) RESIDENTIAL ENERGY EFFICIENT PROPERTY.— 

9 (1) ELIMINATION OF PHASEOUT.—Section 

10 25D(g) is amended to read as follows: 

11 ‘‘(g) APPLICABLE PERCENTAGE.—For purposes of 

12 subsection (a), the applicable percentage shall be 30 per13 cent.’’. 

14 (2) EFFECTIVE DATE.—The amendments made 

15 by this subsection shall apply to property placed in 

16 service after December 31, 2020. 

17 (b) RENEWABLE ELECTRICITY PRODUCTION CRED18 IT.— 

19 (1) CARRYFORWARD OF CREDIT.— 

20 (A) IN GENERAL.—Section 39(a) is 

21 amended by adding at the end the following: 

22 ‘‘(4) 25-YEAR CARRYFORWARD FOR RENEW23 ABLE ELECTRICITY PRODUCTION CREDIT.—In the 

24 case of the renewable electricity production credit— 


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1 ‘‘(A) this section shall be applied sepa2 rately from the business credit (other than the 

3 renewable electricity production credit), and 

4 ‘‘(B) paragraph (2) shall be applied— 

5 ‘‘(i) by substituting ‘26 taxable years’ 

6 for ‘21 taxable years’ in subparagraph (A) 

7 thereof, and 

8 ‘‘(ii) by substituting ‘25 taxable years’ 

9 for ‘20 taxable years’ in subparagraph (B) 

10 thereof.’’. 

11 (B) EFFECTIVE DATE.—The amendment 

12 made by this paragraph shall apply to credit 

13 carryforwards carried to taxable years begin14 ning after the date of enactment of this Act. 

15 (2) ELECTION FOR DIRECT PAYMENT FOR RE16 NEWABLE ELECTRICITY PRODUCTION CREDIT.—Sec17 tion 45 is amended by adding at the end the fol18 lowing: 

19 ‘‘(f) ELECTION FOR DIRECT PAYMENT.— 

20 ‘‘(1) IN GENERAL.—The amount of any credit 

21 determined under subsection (a) with respect to any 

22 qualified facility for any taxable year during the pe23 riod described in subsection (a)(2)(A)(ii) shall, at 

24 the election of the taxpayer, be treated as a payment 

25 equal to such amount which is made by the taxpayer 


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1 against the tax imposed by chapter 1 for such tax2 able year. 

3 ‘‘(2) FORM AND EFFECT OF ELECTION.— 

4 ‘‘(A) IN GENERAL.—An election under 

5 paragraph (1) shall be made prior to the appli6 cable date on and in such manner as the Sec7 retary may prescribe. Such election, once made, 

8 shall— 

9 ‘‘(i) be irrevocable with respect to 

10 such qualified facility for the period de11 scribed in subsection (a)(2)(A)(ii), and 

12 ‘‘(ii) for any taxable year during such 

13 period, reduce the amount of the credit 

14 which would (but for this paragraph) be al15 lowable under this section with respect to 

16 such qualified facility for such taxable year 

17 to zero. 

18 ‘‘(B) ADDITIONAL INFORMATION.—For 

19 purposes of an election under paragraph (1), 

20 the Secretary may require such information as 

21 the Secretary deems necessary for purposes of 

22 preventing duplication, fraud, or any improper 

23 payments under this subsection. 


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1 ‘‘(C) APPLICABLE DATE.—For purposes of 

2 this paragraph, the term ‘applicable date’ 

3 means— 

4 ‘‘(i) in the case of any qualified facil5 ity which is placed in service after Decem6 ber 31, 2020, and before the date of enact7 ment of the Clean Energy for America Act, 

8 the earlier of— 

9 ‘‘(I) the date which is 180 days 

10 after the date of enactment of such 

11 Act, or 

12 ‘‘(II) the end of the taxable year 

13 in which such facility is placed in 

14 service, 

15 ‘‘(ii) in the case of any qualified facil16 ity the construction of which begins before 

17 the date of enactment of the Clean Energy 

18 for America Act and which is not placed in 

19 service before such date, the later of— 

20 ‘‘(I) the date on which such facil21 ity is placed in service, or 

22 ‘‘(II) the date which is 180 days 

23 after the date of enactment of such 

24 Act, or 


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1 ‘‘(iii) in the case of any qualified facil2 ity the construction of which begins on or 

3 after the date of enactment of the Clean 

4 Energy for America Act, the date on which 

5 such facility is placed in service. 

6 ‘‘(3) APPLICATION TO PARTNERSHIPS AND S

7 CORPORATIONS; EXCESS PAYMENT.—Rules similar to 

8 the rules of paragraphs (3) and (5) of section 

9 45U(h) shall apply for purposes of this subsection. 

10 ‘‘(4) CERTAIN ENTITIES TREATED AS TAX11 PAYERS.—In the case of an election under this sub12 section— 

13 ‘‘(A) any State utility with a service obliga14 tion, as such terms are defined in section 217 

15 of the Federal Power Act (as in effect on the 

16 date of the enactment of this subsection), 

17 ‘‘(B) any mutual or cooperative electric 

18 company described in section 501(c)(12) or sec19 tion 1381(a)(2)(C), or 

20 ‘‘(C) an Indian tribal government (as de21 fined in section 139E(c)(1)), 

22 shall be treated as a taxpayer for purposes of this 

23 subsection and determining the amount of any credit 

24 under subsection (a).’’. 


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1 (c) TERMINATION OF ALLOCATION OF UNUTILIZED

2 LIMITATION FOR ADVANCED NUCLEAR POWER FACILI3 TIES.— 

4 (1) IN GENERAL.—Section 45J(b) is amended 

5 by striking paragraph (5). 

6 (2) EFFECTIVE DATE.—The amendment made 

7 by this subsection shall apply to facilities the con8 struction of which begins after the date of enact9 ment of this Act. 

10 (d) MODIFICATION OF CREDIT FOR CARBON DIOX11 IDE SEQUESTRATION.— 

12 (1) IN GENERAL.—Section 45Q is amended— 

13 (A) in subsection (a)(4)(B)(i), by inserting 

14 ‘‘subject to subsection (f)(8),’’ before ‘‘used 

15 by’’, 

16 (B) in subsection (b)(1)— 

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

18 ‘‘The applicable dollar amount’’ and insert19 ing ‘‘Except as provided in subparagraph 

20 (B), the applicable dollar amount’’, 

21 (ii) by redesignating subparagraph 

22 (B) as subparagraph (C), 

23 (iii) by inserting after subparagraph 

24 (A) the following: 


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1 ‘‘(B) APPLICABLE DOLLAR AMOUNT FOR

2 DIRECT AIR CAPTURE FACILITIES.—In the case 

3 of any qualified facility described in subsection 

4 (d)(1)(A) for which construction begins after 

5 the date of enactment of the Clean Energy for 

6 America Act, the applicable dollar amount shall 

7 be an amount equal to— 

8 ‘‘(i) for any taxable year beginning in 

9 a calendar year before 2027— 

10 ‘‘(I) for purposes of paragraph 

11 (3) of subsection (a), $175, and 

12 ‘‘(II) for purposes of paragraph 

13 (4) of such subsection, $150, and 

14 ‘‘(ii) for any taxable year beginning in 

15 a calendar year after 2026— 

16 ‘‘(I) for purposes of paragraph 

17 (3) of subsection (a), an amount equal 

18 to the product of $175 and the infla19 tion adjustment factor for such cal20 endar year determined under section 

21 43(b)(3)(B) for such calendar year, 

22 determined by substituting ‘2025’ for 

23 ‘1990’, and 

24 ‘‘(II) for purposes of paragraph 

25 (4) of such subsection, an amount 


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1 equal to the product of $150 and the 

2 inflation adjustment factor for such 

3 calendar year determined under sec4 tion 43(b)(3)(B) for such calendar 

5 year, determined by substituting 

6 ‘2025’ for ‘1990’.’’, and 

7 (iv) in subparagraph (C), as so redes8 ignated, by inserting ‘‘or (B)’’ after ‘‘sub9 paragraph (A)’’, 

10 (C) by striking subsection (d) and insert11 ing the following: 

12 ‘‘(d) QUALIFIED FACILITY.— 

13 ‘‘(1) IN GENERAL.—For purposes of this sec14 tion, the term ‘qualified facility’ means— 

15 ‘‘(A) any direct air capture facility, and 

16 ‘‘(B) any industrial facility which cap17 tures— 

18 ‘‘(i) in the case of an electricity gener19 ating facility, not less than 75 percent of 

20 the carbon oxide which would otherwise be 

21 released into the atmosphere, or 

22 ‘‘(ii) in the case of an industrial facil23 ity which is not an electricity generating 

24 facility, not less than 50 percent of the 


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1 carbon oxide which would otherwise be re2 leased into the atmosphere. 

3 ‘‘(2) COORDINATION WITH OTHER CREDITS.— 

4 The term ‘qualified facility’ shall not include any fa5 cility for which a credit determined under section 

6 45U or 48D is allowed under section 38 for the tax7 able year or any prior taxable year.’’, 

8 (D) in subsection (f), by adding at the end 

9 the following: 

10 ‘‘(8) ELIMINATION OF USE OF CARBON OXIDE

11 AS TERTIARY INJECTANT.—In the case of any quali12 fied facility the construction of which begins after 

13 December 31, 2026, subsection (a)(4)(B)(i) shall not 

14 apply.’’, 

15 (E) by redesignating subsection (h) as sub16 section (i), and 

17 (F) by inserting after subsection (g) the 

18 following: 

19 ‘‘(h) CREDIT PHASE-OUT.— 

20 ‘‘(1) IN GENERAL.— 

21 ‘‘(A) REDUCTION BASED ON EMISSIONS

22 FROM PRODUCTION OF ELECTRICITY.—Subject 

23 to subparagraphs (B) and (C), if the Secretary 

24 and the Administrator of the Environmental 

25 Protection Agency determine that the annual 


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1 greenhouse gas emissions from the production 

2 of electricity in the United States are equal to 

3 or less than 25 percent of the annual green4 house gas emissions from the production of 

5 electricity in the United States for calendar 

6 year 2021, the amount of the carbon oxide se7 questration credit under subsection (a) for any 

8 qualified facility the construction of which be9 gins during a calendar year described in para10 graph (2) shall be equal to the product of— 

11 ‘‘(i) the amount of the credit deter12 mined under subsection (a) without regard 

13 to this subsection, multiplied by 

14 ‘‘(ii) the phase-out percentage under 

15 paragraph (2). 

16 ‘‘(B) OTHER INDUSTRIAL FACILITIES.—In 

17 the case of any qualified facility described in 

18 subsection (d)(1)(B)(ii) the construction of 

19 which begins during a calendar year described 

20 in paragraph (2), subparagraph (A) shall be ap21 plied by substituting ‘industrial sector’ for ‘pro22 duction of electricity’ each place it appears. 

23 ‘‘(C) DIRECT AIR CAPTURE FACILITIES.— 

24 In the case of any qualified facility described in 


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1 subsection (d)(1)(A), subparagraph (A) shall 

2 not apply. 

3 ‘‘(2) PHASE-OUT PERCENTAGE.—The phase-out 

4 percentage under this paragraph is equal to— 

5 ‘‘(A) for a facility the construction of 

6 which begins during the first calendar year fol7 lowing the calendar year in which the deter8 mination described in paragraph (1)(A) is 

9 made, 100 percent, 

10 ‘‘(B) for a facility the construction of 

11 which begins during the second calendar year 

12 following such determination year, 75 percent, 

13 ‘‘(C) for a facility the construction of 

14 which begins during the third calendar year fol15 lowing such determination year, 50 percent, and 

16 ‘‘(D) for a facility the construction of 

17 which begins during any calendar year subse18 quent to the year described in subparagraph 

19 (C), 0 percent.’’. 

20 (2) WAGE REQUIREMENTS.—Section 45Q(f), as 

21 amended by paragraph (1)(D), is amended by add22 ing at the end the following: 

23 ‘‘(9) WAGE REQUIREMENTS.— 


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1 ‘‘(A) IN GENERAL.—The term ‘qualified 

2 facility’ shall not include any facility which fails 

3 to satisfy— 

4 ‘‘(i) subject to clause (ii) of subpara5 graph (B), the requirements under clause 

6 (i) of such subparagraph, and 

7 ‘‘(ii) with respect to— 

8 ‘‘(I) the construction of any facil9 ity the construction of which begins 

10 after the date of enactment of the 

11 Clean Energy for America Act, and 

12 ‘‘(II) the construction of any car13 bon capture equipment, 

14 the requirements under section 501 of the 

15 Clean Energy for America Act. 

16 ‘‘(B) REQUIREMENTS.— 

17 ‘‘(i) IN GENERAL.—The requirements 

18 described in this clause with respect to any 

19 facility, and any carbon capture equipment 

20 placed in service at such facility, are that 

21 the taxpayer shall ensure that any laborers 

22 and mechanics employed by contractors 

23 and subcontractors in— 

24 ‘‘(I) in the case of any facility 

25 the construction of which begins after 


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1 the date of enactment of the Clean 

2 Energy for America Act, the construc3 tion of such facility, or 

4 ‘‘(II) during the 12-year period 

5 beginning on the date on which car6 bon capture equipment is originally 

7 placed in service at any facility (as de8 scribed in paragraphs (3)(A) and 

9 (4)(A) of subsection (a)), the alter10 ation or repair of such facility or such 

11 equipment, 

12 shall be paid wages at rates not less than 

13 the prevailing rates for construction, alter14 ation, or repair of a similar character in 

15 the locality as determined by the Secretary 

16 of Labor, in accordance with subchapter 

17 IV of chapter 31 of title 40, United States 

18 Code. 

19 ‘‘(ii) FAILURE TO SATISFY WAGE RE20 QUIREMENTS; CORRECTION AND PEN21 ALTY.—In the case of any taxpayer which 

22 fails to satisfy the requirement under 

23 clause (i) with respect to the construction 

24 of any facility or the alteration or repair of 

25 a facility or carbon capture equipment in 


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1 any year during the period described in 

2 clause (i)(II), rules similar to the rules of 

3 clauses (i) and (ii) of section 45U(b)(3)(B) 

4 shall apply for purposes of this subpara5 graph.’’. 

6 (3) ELECTION FOR DIRECT PAYMENT.—Section 

7 45Q, as amended by the preceding paragraphs of 

8 this subsection, is amended— 

9 (A) by redesignating subsection (i) as sub10 section (j), and 

11 (B) by inserting after subsection (h) the 

12 following: 

13 ‘‘(i) ELECTION FOR DIRECT PAYMENT.— 

14 ‘‘(1) IN GENERAL.—The amount of any credit 

15 determined under paragraph (3) or (4) of subsection 

16 (a) with respect to any qualified carbon oxide for 

17 any taxable year during the period described in 

18 paragraph (3)(A) or (4)(A) of such subsection, re19 spectively, shall, at the election of the taxpayer, be 

20 treated as a payment equal to such amount which is 

21 made by the taxpayer against the tax imposed by 

22 chapter 1 for such taxable year. 

23 ‘‘(2) FORM AND EFFECT OF ELECTION.— 

24 ‘‘(A) IN GENERAL.—An election under 

25 paragraph (1) shall be made prior to the appliVerDate Sep 11 2014 00:26 Jun 22, 2021 Jkt 019200 PO 00000 Frm 00083 Fmt 6652 Sfmt 6201 E:\BILLS\S2118.PCS S2118

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1 cable date and in such manner as the Secretary 

2 may prescribe. Such election, once made, 

3 shall— 

4 ‘‘(i) be irrevocable with respect to 

5 such carbon capture equipment for the pe6 riod described in paragraph (3)(A) or 

7 (4)(A) of subsection (a), and 

8 ‘‘(ii) for any taxable year during such 

9 period, reduce the amount of the credit 

10 which would (but for this paragraph) be al11 lowable under this section with respect to 

12 such equipment for such taxable year to 

13 zero. 

14 ‘‘(B) ADDITIONAL INFORMATION.—For 

15 purposes of an election under paragraph (1), 

16 the Secretary may require such information as 

17 the Secretary deems necessary for purposes of 

18 preventing duplication, fraud, or any improper 

19 payments under this subsection. 

20 ‘‘(C) APPLICABLE DATE.—For purposes of 

21 this paragraph, the term ‘applicable date’ 

22 means— 

23 ‘‘(i) in the case of any carbon capture 

24 equipment which is placed in service after 

25 December 31, 2020, and before the date of 


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1 enactment of the Clean Energy for Amer2 ica Act, the earlier of— 

3 ‘‘(I) the date which is 180 days 

4 after the date of enactment of such 

5 Act, or 

6 ‘‘(II) the end of the taxable year 

7 in which such equipment is placed in 

8 service, 

9 ‘‘(ii) in the case of any carbon capture 

10 equipment the construction of which began 

11 before the date of enactment of the Clean 

12 Energy for America Act and which has not 

13 placed in service before such date, the later 

14 of— 

15 ‘‘(I) the date on which such 

16 equipment is placed in service, or 

17 ‘‘(II) the date which is 180 days 

18 after the date of enactment of such 

19 Act, and 

20 ‘‘(iii) in the case of any carbon cap21 ture equipment the construction of which 

22 begins on or after the date of enactment of 

23 the Clean Energy for America Act, the 

24 date on which such equipment is placed in 

25 service. 


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1 ‘‘(3) APPLICATION TO PARTNERSHIPS AND S

2 CORPORATIONS; EXCESS PAYMENT.—Rules similar to 

3 the rules of paragraphs (3) and (5) of section 

4 45U(h) shall apply for purposes of this subsection. 

5 ‘‘(4) CERTAIN ENTITIES TREATED AS TAX6 PAYERS.—In the case of an election under this sub7 section— 

8 ‘‘(A) any State utility with a service obliga9 tion, as such terms are defined in section 217 

10 of the Federal Power Act (as in effect on the 

11 date of the enactment of this subsection), 

12 ‘‘(B) any mutual or cooperative electric 

13 company described in section 501(c)(12) or sec14 tion 1381(a)(2)(C), or 

15 ‘‘(C) an Indian tribal government (as de16 fined in section 139E(c)(1)), 

17 shall be treated as a taxpayer for purposes of this 

18 subsection and determining the amount of any credit 

19 under subsection (a).’’. 

20 (4) CREDIT REDUCED FOR GRANTS, TAX-EX21 EMPT BONDS, SUBSIDIZED ENERGY FINANCING, AND

22 OTHER CREDITS.—Section 45Q(f), as amended by 

23 paragraphs (1)(D) and (2), is amended by adding at 

24 the end the following: 


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1 ‘‘(10) CREDIT REDUCED FOR GRANTS, TAX-EX2 EMPT BONDS, SUBSIDIZED ENERGY FINANCING, AND

3 OTHER CREDITS.—Rules similar to the rules under 

4 section 45(b)(3) shall apply for purposes of this sec5 tion.’’. 

6 (5) EFFECTIVE DATES.— 

7 (A) IN GENERAL.—The amendments made 

8 by paragraph (1) (with the exception of the 

9 amendment made under subparagraph (D) of 

10 such paragraph) shall apply to facilities the 

11 construction of which begins after the date of 

12 enactment of this Act. 

13 (B) ELIMINATION OF USE OF CARBON

14 OXIDE AS TERTIARY INJECTANT.—The amend15 ment made by paragraph (1)(D) shall apply to 

16 facilities the construction of which begins after 

17 December 31, 2026. 

18 (C) WAGE REQUIREMENTS.—The amend19 ments made by paragraph (2) shall apply to fa20 cilities or equipment the construction of which 

21 begins after December 31, 2021. 

22 (D) ELECTION FOR DIRECT PAYMENT.— 

23 The amendments made by paragraph (3) shall 

24 apply to carbon capture equipment which is 

25 placed in service after December 31, 2020. 


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1 (E) CREDIT REDUCED FOR GRANTS, TAX2 EXEMPT BONDS, SUBSIDIZED ENERGY FINANC3 ING, AND OTHER CREDITS.—The amendments 

4 made by paragraph (4) shall apply to taxable 

5 years beginning after the date of enactment of 

6 this Act. 

7 (e) MODIFICATION OF CREDITS FOR ENERGY PROP8 ERTY.— 

9 (1) TERMINATION.— 

10 (A) SOLAR ENERGY PROPERTY.—Section 

11 48(a)(3)(A)(i) is amended by inserting ‘‘but 

12 only with respect to property the construction 

13 of which begins before January 1, 2024,’’ after 

14 ‘‘swimming pool,’’. 

15 (B) GEOTHERMAL ENERGY PROPERTY.— 

16 Section 48(a)(3)(A)(iii) is amended by inserting 

17 ‘‘with respect to property the construction of 

18 which begins before January 1, 2024, and’’ 

19 after ‘‘but only’’. 

20 (C) QUALIFIED OFFSHORE WIND FACILI21 TIES.—Section 48(a)(5)(F) is amended by 

22 striking ‘‘January 1, 2026’’ each place it ap23 pears and inserting ‘‘January 1, 2024’’. 

24 (2) ELIMINATION OF PHASEOUTS.— 


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1 (A) IN GENERAL.—Section 48 is amended 

2 by striking paragraphs (6) and (7). 

3 (B) EFFECTIVE DATE.—The amendments 

4 made by this paragraph shall apply to property 

5 the construction of which begins after Decem6 ber 31, 2020. 

7 (3) INCREASE IN CREDIT RATE FOR GEO8 THERMAL DEPOSITS.— 

9 (A) IN GENERAL.—Section 

10 48(a)(2)(A)(i)(II) is amended by striking 

11 ‘‘paragraph (3)(A)(i)’’ and inserting ‘‘clause (i) 

12 or (iii) of paragraph (3)(A)’’. 

13 (B) EFFECTIVE DATE.—The amendments 

14 made by this paragraph shall apply to property 

15 the construction of which begins after Decem16 ber 31, 2020. 

17 (4) ELECTION FOR DIRECT PAYMENT.— 

18 (A) IN GENERAL.—Section 48, as amended 

19 by paragraph (1), is amended by adding at the 

20 end the following: 

21 ‘‘(e) ELECTION FOR DIRECT PAYMENT.— 

22 ‘‘(1) IN GENERAL.—In the case of any energy 

23 property placed in service during any taxable year, 

24 the amount of any credit determined under sub25 section (a) with respect to such property for such 


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1 taxable year shall, at the election of the taxpayer, be 

2 treated as a payment equal to such amount which is 

3 made by the taxpayer against the tax imposed by 

4 chapter 1 for such taxable year (regardless of wheth5 er such tax would have been on such taxpayer). 

6 ‘‘(2) FORM AND EFFECT OF ELECTION.— 

7 ‘‘(A) IN GENERAL.—An election under 

8 paragraph (1) shall be made prior to the appli9 cable date and in such manner as the Secretary 

10 may prescribe. Such election, once made, 

11 shall— 

12 ‘‘(i) be irrevocable with respect to the 

13 energy property to which such election ap14 plies, and 

15 ‘‘(ii) reduce the amount of the credit 

16 which would (but for this subsection) be al17 lowable under this section with respect to 

18 such property for the taxable year in which 

19 such property is placed in service to zero. 

20 ‘‘(B) ADDITIONAL INFORMATION.—For 

21 purposes of an election under paragraph (1), 

22 the Secretary may require such information as 

23 the Secretary deems necessary for purposes of 

24 preventing duplication, fraud, or any improper 

25 payments under this subsection. 


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1 ‘‘(C) APPLICABLE DATE.—For purposes of 

2 this paragraph, the term ‘applicable date’ 

3 means— 

4 ‘‘(i) in the case of any energy property 

5 which is placed in service after December 

6 31, 2020, and before the date of enact7 ment of the Clean Energy for America Act, 

8 the earlier of— 

9 ‘‘(I) the date which is 180 days 

10 after the date of enactment of such 

11 Act, or 

12 ‘‘(II) the end of the taxable year 

13 in which such property is placed in 

14 service, 

15 ‘‘(ii) in the case of any energy prop16 erty the construction of which began before 

17 the date of enactment of the Clean Energy 

18 for America Act and which has not been 

19 placed in service before such date, the later 

20 of— 

21 ‘‘(I) the date on which such prop22 erty is placed in service, or 

23 ‘‘(II) the date which is 180 days 

24 after the date of enactment of such 

25 Act, or 


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1 ‘‘(iii) in the case of any energy prop2 erty the construction of which begins on or 

3 after the date of enactment of the Clean 

4 Energy for America Act, the date on which 

5 such property is placed in service. 

6 ‘‘(3) APPLICATION TO PARTNERSHIPS AND S

7 CORPORATIONS; EXCESS PAYMENT.—Rules similar to 

8 the rules of paragraphs (3) and (5) of section 

9 45U(h) shall apply for purposes of this subsection. 

10 ‘‘(4) SPECIAL RULES FOR CERTAIN ENTITIES.— 

11 ‘‘(A) ELIGIBILITY OF CERTAIN PROP12 ERTY.—For purposes of this subsection, para13 graphs (3) and (4) of section 50(b) shall not 

14 apply with respect to— 

15 ‘‘(i) any State utility with a service 

16 obligation, as such terms are defined in 

17 section 217 of the Federal Power Act (as 

18 in effect on the date of the enactment of 

19 this subsection), 

20 ‘‘(ii) any mutual or cooperative elec21 tric company described in section 

22 501(c)(12) or section 1381(a)(2)(C), or 

23 ‘‘(iii) an Indian tribal government (as 

24 defined in section 139E(c)(1)). 


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1 ‘‘(B) CERTAIN ENTITIES TREATED AS TAX2 PAYERS.—In the case of an election under this 

3 subsection, any entity described in clause (i), 

4 (ii), or (iii) of subparagraph (A) shall be treat5 ed as a taxpayer for purposes of this subsection 

6 and determining the amount of any credit 

7 under subsection (a).’’. 

8 (B) EFFECTIVE DATE.—The amendment 

9 made by this paragraph shall apply to property 

10 placed in service after December 31, 2020. 

11 (5) ENERGY CREDIT FOR QUALIFIED BIOGAS

12 PROPERTY AND QUALIFIED MANURE RESOURCE RE13 COVERY PROPERTY.— 

14 (A) IN GENERAL.—Section 48(a)(3)(A) is 

15 amended by striking ‘‘or’’ at the end of clause 

16 (vii) and by adding at the end the following new 

17 clauses: 

18 ‘‘(ix) qualified biogas property, or 

19 ‘‘(x) qualified manure resource recov20 ery property,’’. 

21 (B) 30-PERCENT CREDIT.—Section 

22 48(a)(2)(A)(i) is amended by striking ‘‘and’’ at 

23 the end of subclause (IV), by striking ‘‘and’’ at 

24 the end of subclause (V), and by adding at the 

25 end the following new subclauses: 


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1 ‘‘(VI) qualified biogas property, 

2 and 

3 ‘‘(VII) qualified manure resource 

4 recovery property, and’’. 

5 (C) DEFINITIONS.—Section 48(c) is 

6 amended by adding at the end the following 

7 new paragraphs: 

8 ‘‘(6) QUALIFIED BIOGAS PROPERTY.— 

9 ‘‘(A) IN GENERAL.—The term ‘qualified 

10 biogas property’ means property comprising a 

11 system which— 

12 ‘‘(i) uses anaerobic digesters, or other 

13 biological, chemical, thermal, or mechanical 

14 processes (alone or in combination), to 

15 convert biomass (as defined in section 

16 45K(c)(3)) into a gas which consists of not 

17 less than 52 percent methane, and 

18 ‘‘(ii) captures such gas for use as a 

19 fuel. 

20 ‘‘(B) INCLUSION OF CERTAIN CLEANING

21 AND CONDITIONING EQUIPMENT.—Such term 

22 shall include any property which cleans and 

23 conditions the gas referred to in subparagraph 

24 (A) for use as a fuel. 


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1 ‘‘(C) TERMINATION.—No credit shall be 

2 determined under this section with respect to 

3 any qualified biogas property for any period 

4 after December 31, 2023. 

5 ‘‘(7) QUALIFIED MANURE RESOURCE RECOVERY

6 PROPERTY.— 

7 ‘‘(A) IN GENERAL.—The term ‘qualified 

8 manure resource recovery property’ means 

9 property comprising a system which uses phys10 ical, biological, chemical, thermal, or mechanical 

11 processes to recover the nutrients nitrogen and 

12 phosphorus from a non-treated digestate or ani13 mal manure by reducing or separating at least 

14 50 percent of the concentration of such nutri15 ents, excluding any reductions during the incin16 eration, storage, composting, or field application 

17 of the non-treated digestate or animal manure. 

18 ‘‘(B) INCLUSION OF CERTAIN PROCESSING

19 EQUIPMENT.—Such term shall include— 

20 ‘‘(i) any property which is used to re21 cover the nutrients referred to in subpara22 graph (A), such as— 

23 ‘‘(I) biological reactors, 

24 ‘‘(II) crystallizers, 


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1 ‘‘(III) water filtration membrane 

2 systems and other water purifiers, 

3 ‘‘(IV) evaporators, 

4 ‘‘(V) distillers, 

5 ‘‘(VI) decanter centrifuges, and 

6 ‘‘(VII) equipment that facilitates 

7 the process of removing and 

8 dewatering suspended and dissolved 

9 solids, ammonia stripping, gasifi10 cation, or ozonation, and 

11 ‘‘(ii) any thermal drier which treats 

12 the nutrients recovered by the processes re13 ferred to in subparagraph (A). 

14 ‘‘(C) TERMINATION.—No credit shall be 

15 determined under this section with respect to 

16 any qualified manure resource recovery prop17 erty for any period after December 31, 2023.’’. 

18 (D) DENIAL OF DOUBLE BENEFIT FOR

19 QUALIFIED BIOGAS PROPERTY.—Section 45(e) 

20 is amended by adding at the end the following 

21 new paragraph: 

22 ‘‘(12) COORDINATION WITH ENERGY CREDIT

23 FOR QUALIFIED BIOGAS PROPERTY.—The term 

24 ‘qualified facility’ shall not include any facility which 

25 produces electricity from gas produced by qualified 


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1 biogas property (as defined in section 48(c)(6)) if a 

2 credit is determined under section 48 with respect to 

3 such property for the taxable year or any prior tax4 able year.’’. 

5 (E) EFFECTIVE DATE.—The amendments 

6 made by this paragraph shall apply to property 

7 placed in service after December 31, 2020, 

8 under rules similar to the rules of section 48(m) 

9 of such Code (as in effect on the day before the 

10 date of the enactment of the Revenue Reconcili11 ation Act of 1990). 

12 (6) EXPANSION OF ENERGY CREDIT TO IN13 CLUDE CLEAN HYDROGEN PRODUCTION FACILI14 TIES.— 

15 (A) IN GENERAL.—Section 48(a)(5) is 

16 amended— 

17 (i) in subparagraph (A)(ii), by insert18 ing ‘‘subject to subparagraph (G)(i),’’ be19 fore ‘‘the energy percentage’’, 

20 (ii) in subparagraph (B), by inserting 

21 ‘‘or 45X’’ after ‘‘section 45’’, 

22 (iii) in subparagraph (C)— 

23 (I) in clause (i), by inserting ‘‘or, 

24 subject to subparagraph (G)(ii), a 

25 qualified clean hydrogen production 


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1 facility (as defined in section 

2 45X(d)(3))’’ after ‘‘section 45(d)’’, 

3 (II) in clause (ii), by inserting 

4 ‘‘(or, in the case of a qualified clean 

5 hydrogen production facility, which is 

6 placed in service after 2020 and the 

7 construction of which begins before 

8 January 1, 2030)’’ after ‘‘January 1, 

9 2022’’, and 

10 (III) in clause (iii)(I), by insert11 ing ‘‘or 45X’’ after ‘‘section 45’’, and 

12 (iv) by adding at the end the fol13 lowing: 

14 ‘‘(G) QUALIFIED CLEAN HYDROGEN PRO15 DUCTION FACILITIES.— 

16 ‘‘(i) ENERGY PERCENTAGE.— 

17 ‘‘(I) IN GENERAL.—For purposes 

18 of subparagraph (A)(ii), in the case of 

19 a qualified investment credit facility 

20 which is a qualified clean hydrogen 

21 production facility, the energy per22 centage with respect to such facility 

23 shall be an amount (expressed as a 

24 percentage) equal to— 


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1 ‘‘(aa) in the case of a facility 

2 which is estimated to produce 

3 qualified clean hydrogen (as de4 fined in described in section 

5 45X(d)(2)) which is described in 

6 subparagraph (A) of section 

7 45X(b)(2), 20 percent of the en8 ergy percentage otherwise appli9 cable under subparagraph (A)(ii), 

10 ‘‘(bb) in the case of a facil11 ity which is estimated to produce 

12 qualified clean hydrogen which is 

13 described in subparagraph (B) of 

14 section 45X(b)(2), 25 percent of 

15 the energy percentage otherwise 

16 applicable under subparagraph 

17 (A)(ii), 

18 ‘‘(cc) in the case of a facility 

19 which is estimated to produce 

20 qualified clean hydrogen which is 

21 described in subparagraph (C) of 

22 section 45X(b)(2), 34 percent of 

23 the energy percentage otherwise 

24 applicable under subparagraph 

25 (A)(ii), and 


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1 ‘‘(dd) in the case of a facil2 ity which is estimated to produce 

3 qualified clean hydrogen which is 

4 described in subparagraph (D) of 

5 section 45X(b)(2), 100 percent of 

6 the energy percentage otherwise 

7 applicable under subparagraph 

8 (A)(ii). 

9 ‘‘(II) RECAPTURE.—The Sec10 retary shall, by regulations, provide 

11 for recapturing the benefit of any 

12 credit allowable under this section 

13 with respect to any qualified clean hy14 drogen production facility which fails 

15 to produce qualified clean hydrogen 

16 consistent with the applicable percent17 age reduction in lifecycle greenhouse 

18 gas emissions described in section 

19 45X(b)(2) which were estimated for 

20 such facility pursuant to subclause 

21 (I). 

22 ‘‘(ii) NO DOUBLE BENEFIT.—For pur23 poses of this paragraph, the term ‘qualified 

24 investment credit facility’ shall not include 

25 any qualified clean hydrogen production faVerDate Sep 11 2014 00:26 Jun 22, 2021 Jkt 019200 PO 00000 Frm 00100 Fmt 6652 Sfmt 6201 E:\BILLS\S2118.PCS S2118

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1 cility for which a credit is allowed under 

2 section 38 for the taxable year or any prior 

3 taxable year which is properly allocable to 

4 any credit determined under— 

5 ‘‘(I) this section (other than pur6 suant to this paragraph), or 

7 ‘‘(II) section 45, 45J, 45Q, 45U, 

8 45V, or 48D.’’. 

9 (B) EFFECTIVE DATE.—The amendments 

10 made by this paragraph shall apply to property 

11 placed in service after December 31, 2020. 

12 (7) FUEL CELLS USING ELECTROMECHANICAL

13 PROCESSES.— 

14 (A) IN GENERAL.—Section 48(c)(1) is 

15 amended— 

16 (i) in subparagraph (A)(i)— 

17 (I) by inserting ‘‘or 

18 electromechanical’’ after ‘‘electro19 chemical’’, and 

20 (II) by inserting ‘‘(1 kilowatts in 

21 the case of a fuel cell power plant 

22 with a linear generator assembly)’’ 

23 after ‘‘0.5 kilowatt’’, and 

24 (ii) in subparagraph (C)— 


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1 (I) by inserting ‘‘, or linear gen2 erator assembly,’’ after ‘‘a fuel cell 

3 stack assembly’’, and 

4 (II) by inserting ‘‘or 

5 electromechanical’’ after ‘‘electro6 chemical’’. 

7 (B) LINEAR GENERATOR ASSEMBLY LIMI8 TATION.—Section 48(c)(1) is amended by re9 designating subparagraph (D) as subparagraph 

10 (E) and by inserting after subparagraph (C) 

11 the following new subparagraph: 

12 ‘‘(D) LINEAR GENERATOR ASSEMBLY.— 

13 The term ‘linear generator assembly’ does not 

14 include any assembly which contains rotating 

15 parts.’’. 

16 (C) EFFECTIVE DATE.—The amendments 

17 made by this paragraph shall apply to property 

18 the construction of which begins after Decem19 ber 31, 2020. 

20 (f) COST RECOVERY FOR QUALIFIED FACILITIES, 

21 QUALIFIED PROPERTY, AND GRID IMPROVEMENT PROP22 ERTY.— 

23 (1) IN GENERAL.—Section 168(e)(3)(B) is 

24 amended— 


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1 (A) in clause (vi)(III), by striking ‘‘and’’ at 

2 the end, 

3 (B) in clause (vii), by striking the period 

4 at the end and inserting ‘‘, and’’, and 

5 (C) by inserting after clause (vii) the fol6 lowing: 

7 ‘‘(viii) any qualified facility (as de8 fined in section 45U(b)(1)(A)), any quali9 fied property (as defined in subsection 

10 (b)(2) of section 48D), or any grid im11 provement property (as defined in sub12 section (c)(1)(B) of such section).’’. 

13 (2) ALTERNATIVE SYSTEM.—The table con14 tained in section 168(g)(3)(B) is amended by insert15 ing after the item relating to subparagraph (B)(vii) 

16 the following new item: 

‘‘(B)(viii) ................................................................................................. 30’’. 

17 (3) EFFECTIVE DATE.—The amendments made 

18 by this subsection shall apply to facilities and prop19 erty placed in service after December 31, 2022. 

20 TITLE II—INCENTIVES FOR 

21 CLEAN TRANSPORTATION 

22 SEC. 201. CLEAN FUEL PRODUCTION CREDIT. 

23 (a) IN GENERAL.— 

24 (1) ALLOWANCE OF CREDIT.—Subpart D of 

25 part IV of subchapter A of chapter 1, as amended 


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1 by section 101, is amended by adding at the end the 

2 following new section: 

3 ‘‘SEC. 45V. CLEAN FUEL PRODUCTION CREDIT. 

4 ‘‘(a) AMOUNT OF CREDIT.— 

5 ‘‘(1) IN GENERAL.—For purposes of section 38, 

6 the clean fuel production credit for any taxable year 

7 is an amount equal to— 

8 ‘‘(A) for any transportation fuel sold dur9 ing any calendar year ending before January 1, 

10 2030, an amount equal to the product of— 

11 ‘‘(i) $1.00 per gallon (or gallon equiv12 alent) with respect to any transportation 

13 fuel which is— 

14 ‘‘(I) produced by the taxpayer at 

15 a qualified facility, and 

16 ‘‘(II) sold by the taxpayer in a 

17 manner described in paragraph (4), 

18 and 

19 ‘‘(ii) the emissions factor for such fuel 

20 (as determined under subsection (b)), and 

21 ‘‘(B) for any transportation fuel which is 

22 sold during any calendar year beginning after 

23 December 31, 2029, and which has an emis24 sions rate equal to or less than zero, an amount 

25 equal to the applicable amount (as determined 


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1 under paragraph (2)) per gallon (or gallon 

2 equivalent) with respect to any transportation 

3 fuel which is— 

4 ‘‘(i) produced by the taxpayer at a 

5 qualified facility, and 

6 ‘‘(ii) sold by the taxpayer in a manner 

7 described in paragraph (4). 

8 ‘‘(2) APPLICABLE AMOUNT.—For purposes of 

9 paragraph (1)(B), the applicable amount with re10 spect to any transportation fuel shall be an amount 

11 equal to $1.00 increased by 10 cents for every kilo12 gram of CO2e per mmBTU (or fraction thereof) for 

13 which the emissions rate for such fuel is below zero. 

14 ‘‘(3) SPECIAL RATE FOR SUSTAINABLE AVIA15 TION FUEL.— 

16 ‘‘(A) IN GENERAL.—In the case of an 

17 transportation fuel which is sustainable aviation 

18 fuel, paragraphs (1)(A)(i) and (2) shall each be 

19 applied by substituting ‘$2.00’ for ‘$1.00’. 

20 ‘‘(B) SUSTAINABLE AVIATION FUEL.—For 

21 purposes of this subparagraph (A), the term 

22 ‘sustainable aviation fuel’ means liquid fuel 

23 which is sold for use in, or used in, an aircraft 

24 and which— 


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1 ‘‘(i) consists of synthesized hydro2 carbons, 

3 ‘‘(ii) meets the requirements of— 

4 ‘‘(I) ASTM International Stand5 ard D7566, or 

6 ‘‘(II) the Fischer Tropsch provi7 sions of ASTM International Stand8 ard D1655, Annex A1, 

9 ‘‘(iii) is derived from— 

10 ‘‘(I) biomass (as such term is de11 fined in section 45K(c)(3)), or 

12 ‘‘(II) electrolysis powered by re13 newable energy resources, or 

14 ‘‘(III) carbon oxides captured 

15 from an industrial source or from the 

16 ambient air, and 

17 ‘‘(iv) is not derived from palm fatty 

18 acid distillates. 

19 ‘‘(4) SALE.—For purposes of paragraph (1), 

20 the transportation fuel is sold in a manner described 

21 in this paragraph if such fuel is sold by the taxpayer 

22 to an unrelated person— 

23 ‘‘(A) for use by such person in the produc24 tion of a fuel mixture, 


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1 ‘‘(B) for use by such person in a trade or 

2 business, or 

3 ‘‘(C) who sells such fuel at retail to an4 other person and places such fuel in the fuel 

5 tank of such other person. 

6 ‘‘(5) ROUNDING.—If any amount determined 

7 under paragraph (1)(A) or (2) is not a multiple of 

8 0.1 cent, such amount shall be rounded to the near9 est multiple of 0.1 cent. 

10 ‘‘(b) EMISSIONS FACTORS.— 

11 ‘‘(1) EMISSIONS FACTOR.— 

12 ‘‘(A) CALCULATION.— 

13 ‘‘(i) IN GENERAL.—The emissions fac14 tor of a transportation fuel shall be an 

15 amount equal to the quotient of— 

16 ‘‘(I) an amount equal to— 

17 ‘‘(aa) the baseline emissions 

18 rate, minus 

19 ‘‘(bb) the emissions rate for 

20 such fuel, divided by 

21 ‘‘(II) the baseline emissions rate. 

22 ‘‘(B) BASELINE EMISSIONS RATE.—For 

23 purposes of this paragraph, the term ‘baseline 

24 emissions rate’ means— 


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1 ‘‘(i) for any calendar year ending be2 fore January 1, 2026, 75 kilograms of 

3 CO2e per mmBTU, 

4 ‘‘(ii) for calendar years 2026 and 

5 2027, 50 kilograms of CO2e per mmBTU, 

6 and 

7 ‘‘(iii) for calendar years 2028 and 

8 2029, 25 kilograms of CO2e per mmBTU. 

9 ‘‘(C) ESTABLISHMENT OF EMISSIONS

10 RATE.—The Secretary and the Secretary of En11 ergy shall establish the emissions rate for simi12 lar types and categories of transportation fuels 

13 based on the amount of lifecycle greenhouse gas 

14 emissions (as described in section 211(o)(1)(H) 

15 of the Clean Air Act (42 U.S.C. 

16 7545(o)(1)(H)), as in effect on the date of the 

17 enactment of this section) for such fuels, ex18 pressed as kilograms of CO2e per mmBTU, 

19 which a taxpayer shall use for purposes of this 

20 section. 

21 ‘‘(D) ROUNDING OF EMISSIONS RATE.— 

22 The Secretary may round the emissions rates 

23 under subparagraph (B) to the nearest multiple 

24 of 5 kilograms of CO2e per mmBTU, except 

25 that, in the case of an emissions rate that is 


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1 less than 2.5 kilograms of CO2e per mmBTU, 

2 the Secretary may round such rate to zero. 

3 ‘‘(E) PROVISIONAL EMISSIONS RATE.— 

4 ‘‘(i) IN GENERAL.—In the case of any 

5 transportation fuel for which an emissions 

6 rate has not been established by under 

7 subparagraph (C), a taxpayer producing 

8 such fuel may file a petition with the Sec9 retary and the Secretary of Energy for de10 termination of the emissions rate with re11 spect to such fuel. 

12 ‘‘(ii) ESTABLISHMENT OF PROVI13 SIONAL AND FINAL EMISSIONS RATE.—In 

14 the case of a transportation fuel for which 

15 a petition described in clause (i) has been 

16 filed, the Secretary and the Secretary of 

17 Energy shall— 

18 ‘‘(I) not later than 12 months 

19 after the date on which the petition 

20 was filed, provide a provisional emis21 sions rate for such fuel which a tax22 payer shall use for purposes of this 

23 section, and 

24 ‘‘(II) not later than 24 months 

25 after the date on which the petition 


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1 was filed, establish the emissions rate 

2 for such fuel. 

3 ‘‘(F) ROUNDING.—If any amount deter4 mined under subparagraph (A) is not a multiple 

5 of 0.1, such amount shall be rounded to the 

6 nearest multiple of 0.1. 

7 ‘‘(2) PUBLISHING EMISSIONS RATE.—The Sec8 retary shall publish annually a table that sets forth 

9 the emissions rate (as established pursuant to para10 graph (1)) for similar types and categories of trans11 portation fuels. 

12 ‘‘(c) INFLATION ADJUSTMENT.— 

13 ‘‘(1) IN GENERAL.—In the case of calendar 

14 years beginning after 2023, the $1.00 amount in 

15 paragraphs (1)(A)(i) and (2) of subsection (a) and 

16 the $2.00 amount in subsection (a)(3) shall each be 

17 adjusted by multiplying such amount by the inflation 

18 adjustment factor for the calendar year in which the 

19 sale or use of the transportation fuel occurs. If any 

20 amount as increased under the preceding sentence is 

21 not a multiple of 1 cent, such amount shall be 

22 rounded to the nearest multiple of 1 cent. 

23 ‘‘(2) INFLATION ADJUSTMENT FACTOR.—For 

24 purposes of paragraph (1), the inflation adjustment 

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1 mined and published by the Secretary pursuant to 

2 section 45U(c), determined by substituting ‘calendar 

3 year 2022’ for ‘calendar year 1992’ in paragraph (3) 

4 thereof. 

5 ‘‘(d) CREDIT PHASE-OUT.— 

6 ‘‘(1) IN GENERAL.—If the Secretary and the 

7 Administrator of the Environmental Protection 

8 Agency determine that the greenhouse gas emissions 

9 from the transportation of persons and goods annu10 ally in the United States are equal to or less than 

11 25 percent of the greenhouse gas emissions from the 

12 transportation of persons and goods in the United 

13 States during calendar year 2021, the amount of the 

14 clean fuel production credit under this section shall 

15 be determined by substituting the applicable amount 

16 (as determined under paragraph (2)(A)) for the dol17 lar amount applicable under paragraphs (1)(A)(i) 

18 and (2) of subsection (a). 

19 ‘‘(2) APPLICABLE DOLLAR AMOUNT.— 

20 ‘‘(A) IN GENERAL.—The applicable 

21 amount for any taxable year described in sub22 paragraph (B) shall be an amount equal to the 

23 product of— 

24 ‘‘(i) the dollar amount applicable 

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1 section (a) (as adjusted by subsection (c)), 

2 multiplied by 

3 ‘‘(ii) the phase-out percentage under 

4 subparagraph (B). 

5 ‘‘(B) PHASE-OUT PERCENTAGE.—The 

6 phase-out percentage under this subparagraph 

7 is equal to— 

8 ‘‘(i) for any taxable year beginning in 

9 the first calendar year following the cal10 endar year in which the determination de11 scribed in paragraph (1) is made, 100 per12 cent, 

13 ‘‘(ii) for any taxable year beginning in 

14 the second calendar year following such de15 termination year, 75 percent, 

16 ‘‘(iii) for any taxable year beginning 

17 in the third calendar year following such 

18 determination year, 50 percent, and 

19 ‘‘(iv) for any taxable year beginning in 

20 any calendar year subsequent to the year 

21 described in clause (iii), 0 percent. 

22 ‘‘(e) DEFINITIONS.—In this section: 

23 ‘‘(1) mmBTU.—The term ‘mmBTU’ means 

24 1,000,000 British thermal units. 


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1 ‘‘(2) CO2e.—The term ‘CO2e’ means, with re2 spect to any greenhouse gas, the equivalent carbon 

3 dioxide (as determined based on relative global 

4 warming potential). 

5 ‘‘(3) GREENHOUSE GAS.—The term ‘greenhouse 

6 gas’ has the same meaning given that term under 

7 section 211(o)(1)(G) of the Clean Air Act (42 

8 U.S.C. 7545(o)(1)(G)), as in effect on the date of 

9 the enactment of this section. 

10 ‘‘(4) QUALIFIED FACILITY.— 

11 ‘‘(A) IN GENERAL.—The term ‘qualified 

12 facility’ means a facility— 

13 ‘‘(i) used for the production of trans14 portation fuels, and 

15 ‘‘(ii) which— 

16 ‘‘(I) subject to clause (ii) of sub17 paragraph (B), satisfies the require18 ments under clause (i) of such sub19 paragraph, and 

20 ‘‘(II) with respect to the con21 struction of such facility, satisfies the 

22 requirements under section 501 of the 

23 Clean Energy for America Act. 


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1 Clause (ii)(II) shall not apply to any facil2 ity placed in service before January 1, 

3 2023. 

4 ‘‘(B) WAGE REQUIREMENTS.— 

5 ‘‘(i) IN GENERAL.—The requirements 

6 described in this subparagraph with re7 spect to any facility are that the taxpayer 

8 shall ensure that any laborers and mechan9 ics employed by contractors and sub10 contractors in— 

11 ‘‘(I) the construction of such fa12 cility, or 

13 ‘‘(II) for any year described in 

14 subsection (a)(1) for which the credit 

15 under this section is claimed, the al16 teration or repair of such facility, 

17 shall be paid wages at rates not less than 

18 the prevailing rates for construction, alter19 ation, or repair of a similar character in 

20 the locality as determined by the Secretary 

21 of Labor, in accordance with subchapter 

22 IV of chapter 31 of title 40, United States 

23 Code. 

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1 ALTY.—In the case of any taxpayer which 

2 fails to satisfy the requirement under 

3 clause (i) with respect to the construction 

4 of any facility or the alteration or repair of 

5 such facility in any year during the period 

6 described in clause (i)(II), rules similar to 

7 the rules of clauses (i) and (ii) of section 

8 45U(b)(3)(B) shall apply for purposes of 

9 this subparagraph. 

10 ‘‘(iii) SPECIAL RULE FOR FACILITIES

11 PLACED IN SERVICE BEFORE JANUARY 1, 

12 2023.—In the case of any facility placed in 

13 service before January 1, 2023— 

14 ‘‘(I) clause (i)(I) shall not apply, 

15 and 

16 ‘‘(II) clause (ii) shall be applied 

17 without regard to the phrase ‘the con18 struction of any facility or’. 

19 ‘‘(5) TRANSPORTATION FUEL.—The term 

20 ‘transportation fuel’ means a fuel which is suitable 

21 for use as a fuel in a highway vehicle or aircraft. 

22 ‘‘(f) FINAL GUIDANCE.—Not later than January 1, 

23 2023, the Secretary and the Secretary of Energy shall 

24 jointly issue final guidance regarding implementation of 

25 this section, including calculation of emissions factors for 


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1 transportation fuel, the table described in subsection 

2 (b)(2), and the determination of clean fuel production 

3 credits under this section. 

4 ‘‘(g) SPECIAL RULES.— 

5 ‘‘(1) ONLY REGISTERED PRODUCTION IN THE

6 UNITED STATES TAKEN INTO ACCOUNT.— 

7 ‘‘(A) IN GENERAL.—No clean fuel produc8 tion credit shall be determined under subsection 

9 (a) with respect to any transportation fuel un10 less— 

11 ‘‘(i) the taxpayer is registered as a 

12 producer of clean fuel under section 4101 

13 at the time of production, and 

14 ‘‘(ii) such fuel is produced in the 

15 United States. 

16 ‘‘(B) UNITED STATES.—For purposes of 

17 this paragraph, the term ‘United States’ in18 cludes any possession of the United States. 

19 ‘‘(2) PRODUCTION ATTRIBUTABLE TO THE TAX20 PAYER.—In the case of a facility in which more than 

21 1 person has an ownership interest, except to the ex22 tent provided in regulations prescribed by the Sec23 retary, production from the facility shall be allocated 

24 among such persons in proportion to their respective 


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1 ownership interests in the gross sales from such fa2 cility. 

3 ‘‘(3) RELATED PERSONS.—Persons shall be 

4 treated as related to each other if such persons 

5 would be treated as a single employer under the reg6 ulations prescribed under section 52(b). In the case 

7 of a corporation which is a member of an affiliated 

8 group of corporations filing a consolidated return, 

9 such corporation shall be treated as selling fuel to 

10 an unrelated person if such fuel is sold to such a 

11 person by another member of such group. 

12 ‘‘(4) PASS-THRU IN THE CASE OF ESTATES AND

13 TRUSTS.—Under regulations prescribed by the Sec14 retary, rules similar to the rules of subsection (d) of 

15 section 52 shall apply. 

16 ‘‘(5) ALLOCATION OF CREDIT TO PATRONS OF

17 AGRICULTURAL COOPERATIVE.— 

18 ‘‘(A) ELECTION TO ALLOCATE.— 

19 ‘‘(i) IN GENERAL.—In the case of an 

20 eligible cooperative organization, any por21 tion of the credit determined under sub22 section (a) for the taxable year may, at the 

23 election of the organization, be apportioned 

24 among patrons of the organization on the 


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1 basis of the amount of business done by 

2 the patrons during the taxable year. 

3 ‘‘(ii) FORM AND EFFECT OF ELEC4 TION.—An election under clause (i) for any 

5 taxable year shall be made on a timely 

6 filed return for such year. Such election, 

7 once made, shall be irrevocable for such 

8 taxable year. Such election shall not take 

9 effect unless the organization designates 

10 the apportionment as such in a written no11 tice mailed to its patrons during the pay12 ment period described in section 1382(d). 

13 ‘‘(B) TREATMENT OF ORGANIZATIONS AND

14 PATRONS.—The amount of the credit appor15 tioned to any patrons under subparagraph 

16 (A)— 

17 ‘‘(i) shall not be included in the 

18 amount determined under subsection (a) 

19 with respect to the organization for the 

20 taxable year, and 

21 ‘‘(ii) shall be included in the amount 

22 determined under subsection (a) for the 

23 first taxable year of each patron ending on 

24 or after the last day of the payment period 

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1 able year of the organization or, if earlier, 

2 for the taxable year of each patron ending 

3 on or after the date on which the patron 

4 receives notice from the cooperative of the 

5 apportionment. 

6 ‘‘(C) SPECIAL RULES FOR DECREASE IN

7 CREDITS FOR TAXABLE YEAR.—If the amount 

8 of the credit of a cooperative organization de9 termined under subsection (a) for a taxable 

10 year is less than the amount of such credit 

11 shown on the return of the cooperative organi12 zation for such year, an amount equal to the 

13 excess of— 

14 ‘‘(i) such reduction, over 

15 ‘‘(ii) the amount not apportioned to 

16 such patrons under subparagraph (A) for 

17 the taxable year, 

18 shall be treated as an increase in tax imposed 

19 by this chapter on the organization. Such in20 crease shall not be treated as tax imposed by 

21 this chapter for purposes of determining the 

22 amount of any credit under this chapter. 

23 ‘‘(D) ELIGIBLE COOPERATIVE DEFINED.— 

24 For purposes of this section the term ‘eligible 

25 cooperative’ means a cooperative organization 


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1 described in section 1381(a) which is owned 

2 more than 50 percent by agricultural producers 

3 or by entities owned by agricultural producers. 

4 For this purpose an entity owned by an agricul5 tural producer is one that is more than 50 per6 cent owned by agricultural producers.’’. 

7 (2) CONFORMING AMENDMENTS.— 

8 (A) Section 38(b), as amended by section 

9 101, is amended 

10 (i) in paragraph (33), by striking 

11 ‘‘plus’’ at the end, 

12 (ii) in paragraph (34), by striking the 

13 period at the end and inserting ‘‘, plus’’, 

14 and 

15 (iii) by adding at the end the fol16 lowing new paragraph: 

17 ‘‘(35) the clean fuel production credit deter18 mined under section 45V(a).’’. 

19 (B) The table of sections for subpart D of 

20 part IV of subchapter A of chapter 1, as 

21 amended by section 101, is amended by adding 

22 at the end the following new item: 

‘‘Sec. 45V. Clean fuel production credit.’’. 

23 (C) Section 4101(a)(1) is amended by in24 serting ‘‘every person producing a fuel eligible 


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1 for the clean fuel production credit (pursuant to 

2 section 45V),’’ after ‘‘section 6426(b)(4)(A)),’’. 

3 (3) EFFECTIVE DATE.—The amendments made 

4 by this section shall apply to transportation fuel pro5 duced after December 31, 2022. 

6 (b) SUSTAINABLE AVIATION FUEL CREDIT.— 

7 (1) IN GENERAL.—Subpart D of part IV of 

8 subchapter A of chapter 1 is amended by inserting 

9 after section 40A the following new section: 

10 ‘‘SEC. 40B. SUSTAINABLE AVIATION FUEL CREDIT. 

11 ‘‘(a) IN GENERAL.— 

12 ‘‘(1) CREDIT AMOUNT.—For purposes of sec13 tion 38, the sustainable aviation fuel credit for the 

14 taxable year is, with respect to any sale or use of a 

15 qualified mixture which occurs during such taxable 

16 year, an amount equal to the product of— 

17 ‘‘(A) the number of gallons of sustainable 

18 aviation fuel in such mixture, multiplied by 

19 ‘‘(B) the sum of— 

20 ‘‘(i) $1.50, plus 

21 ‘‘(ii) the applicable supplementary 

22 credit amount with respect to the sustain23 able aviation fuel. 

24 ‘‘(2) APPLICABLE SUPPLEMENTARY CREDIT

25 AMOUNT.— 


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1 ‘‘(A) IN GENERAL.—For purposes of this 

2 section, the applicable supplementary credit 

3 amount means, with respect to any sustainable 

4 aviation fuel, an amount equal to $0.01 for 

5 every percentage point by which the lifecycle 

6 greenhouse gas emissions reduction percentage 

7 with respect to such fuel exceeds 50 percent. 

8 ‘‘(B) LIMITATION.—In no event shall the 

9 applicable supplementary credit amount exceed 

10 $0.50. 

11 ‘‘(b) QUALIFIED MIXTURE.—For purposes of this 

12 section— 

13 ‘‘(1) IN GENERAL.—The term ‘qualified mix14 ture’ means a mixture of sustainable aviation fuel 

15 and kerosene if— 

16 ‘‘(A) such mixture is produced in the 

17 United States by a taxpayer, and 

18 ‘‘(B) such mixture is— 

19 ‘‘(i) sold for use in an aircraft, or 

20 ‘‘(ii) used by the taxpayer in an air21 craft. 

22 ‘‘(2) SALE OR USE MUST BE IN TRADE OR

23 BUSINESS, ETC.—Sustainable aviation fuel used in 

24 the production of a qualified mixture shall be taken 

25 into account— 


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1 ‘‘(A) only if the sale or use described in 

2 paragraph (1) is in a trade or business of the 

3 taxpayer, and 

4 ‘‘(B) for the taxable year in which such 

5 sale or use occurs. 

6 ‘‘(3) FUELING MUST BE IN THE UNITED

7 STATES.—A qualified mixture shall not be treated as 

8 used or sold for use in an aircraft unless the trans9 fer of such mixture to the fuel tank of such aircraft 

10 occurs in the United States. 

11 ‘‘(4) UNITED STATES.—For purposes of this 

12 subsection, the term ‘United States’ includes any 

13 possession of the United States. 

14 ‘‘(c) SUSTAINABLE AVIATION FUEL.—For purposes 

15 of this section, the term ‘sustainable aviation fuel’ means 

16 liquid fuel— 

17 ‘‘(1) which— 

18 ‘‘(A) consists of synthesized hydrocarbons, 

19 ‘‘(B) meets the requirements of— 

20 ‘‘(i) ASTM International Standard 

21 D7566, or 

22 ‘‘(ii) the Fischer Tropsch provisions of 

23 ASTM International Standard D1655, 

24 Annex A1, 

25 ‘‘(C) is derived from— 


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1 ‘‘(i) biomass (as such term is defined 

2 in section 45K(c)(3)), or 

3 ‘‘(ii) electrolysis powered by renewable 

4 energy resources, or 

5 ‘‘(iii) carbon oxides captured from an 

6 industrial source or from the ambient air, 

7 and 

8 ‘‘(D) is not derived from palm fatty acid 

9 distillates, and 

10 ‘‘(2) which has been certified by the producer of 

11 such fuel in accordance with subsection (d) as hav12 ing lifecycle greenhouse gas emissions that are equal 

13 to or less than 50 percent of the lifecycle greenhouse 

14 gas emissions for petroleum-based jet fuel. 

15 ‘‘(d) CERTIFICATION REQUIREMENTS.—A certifi16 cation meet the requirements of this subsection if such 

17 certification is based on a method which— 

18 ‘‘(1) demonstrates that the fuel conforms 

19 with— 

20 ‘‘(A) the sustainability criteria of the Car21 bon Offsetting and Reduction Scheme for Inter22 national Aviation, and 

23 ‘‘(B) the traceability and information 

24 transmission requirements approved by the 


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1 International Civil Aviation Organization with 

2 the agreement of the United States, 

3 ‘‘(2) takes into account all elements used to de4 termine lifecycle emissions by the International Civil 

5 Aviation Organization, and 

6 ‘‘(3) is approved by— 

7 ‘‘(A) the International Civil Aviation Orga8 nization, or 

9 ‘‘(B) the Secretary and Administrator of 

10 the Environmental Protection Agency. 

11 ‘‘(e) TIME LIMIT FOR ADOPTION OF NEW SUSTAIN12 ABLE AVIATION FUEL EMISSIONS REDUCTION TEST.— 

13 For purposes of subparagraph (B) of subsection (d)(3), 

14 the Secretary and the Administrator of the Environmental 

15 Protection Agency shall, within 24 months after the date 

16 of the enactment of this section, adopt at least one method 

17 for testing lifecycle greenhouse gas emissions that meets 

18 the requirements of such subsection. 

19 ‘‘(f) CERTIFICATION OF SUSTAINABLE AVIATION

20 FUEL.—No credit shall be allowed under this section with 

21 respect to any sustainable aviation fuel unless the tax22 payer obtains a certification (in such form and manner 

23 as prescribed by the Secretary) from the producer or im24 porter of the sustainable aviation fuel which identifies the 


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1 product produced and the percentage of sustainable avia2 tion fuel in the product. 

3 ‘‘(g) TERMINATION.—This section shall not apply to 

4 any sale or use after December 31, 2022.’’. 

5 (2) CREDIT MADE PART OF GENERAL BUSINESS

6 CREDIT.— Section 38(b), as amended by this Act, is 

7 amended— 

8 (A) in paragraph (34), by striking ‘‘plus’’ 

9 at the end, 

10 (B) in paragraph (35), by striking the pe11 riod at the end and inserting ‘‘, plus’’, and 

12 (C) by adding at the end the following new 

13 paragraph: 

14 ‘‘(36) the sustainable aviation fuel credit deter15 mined under section 40B.’’. 

16 (3) COORDINATION WITH RENEWABLE DIE17 SEL.— 

18 (A) IN GENERAL.—Section 40A(f) is 

19 amended by striking paragraph (4). 

20 (B) OTHER COORDINATION RULES.— 

21 (i) The last sentence of section 

22 40A(d)(1) is amended by inserting ‘‘or 

23 40B’’ after ‘‘40’’. 


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1 (ii) The second sentence of section 

2 40A(f)(3) is amended by inserting ‘‘or 

3 40B’’ after ‘‘40’’. 

4 (C) REGULATIONS.—Under rules pre5 scribed by the Secretary of the Treasury (or the 

6 Secretary’s delegate), the amount of the credit 

7 allowed under section 40B of the Internal Rev8 enue Code of 1986 (as added by this sub9 section) shall be properly reduced to take into 

10 account any benefit provided with respect to 

11 sustainable aviation fuel (as defined in such 

12 section 40B) by reason of the application of 

13 section 6426 or section 6427(e). 

14 (4) EFFECTIVE DATE.— 

15 (A) IN GENERAL.—The amendments made 

16 by this subsection shall apply to taxable years 

17 ending after the date of the enactment of this 

18 Act. 

19 (B) SPECIAL RULE.—The Secretary of the 

20 Treasury (or the Secretary’s delegate) shall es21 tablish rules for the application of the amend22 ments made by paragraph (3)(A) with respect 

23 to credits under section 6426 and payments 

24 under section 6427(e) for calendar quarters 

25 ending after the date of the enactment of this 


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1 Act and before the last taxable year of a tax2 payer which ends after such date of enactment. 

3 SEC. 202. TRANSPORTATION ELECTRIFICATION. 

4 (a) ALTERNATIVE MOTOR VEHICLE CREDIT FOR

5 FUEL CELL MOTOR VEHICLES.— 

6 (1) IN GENERAL.—Section 30B(k) is amend7 ed— 

8 (A) by striking paragraph (1), and 

9 (B) by redesignating paragraphs (2) 

10 through (4) as paragraphs (1) through (3), re11 spectively. 

12 (2) PHASEOUT.—Section 30B is amended by 

13 adding at the end the following: 

14 ‘‘(l) CREDIT PHASE-OUT FOR NEW QUALIFIED FUEL

15 CELL MOTOR VEHICLES.— 

16 ‘‘(1) IN GENERAL.—Following a determination 

17 by the Secretary and the Secretary of Transpor18 tation that total annual sales of new qualified fuel 

19 cell motor vehicles and new qualified plug-in electric 

20 drive motor vehicles (as defined in section 

21 30D(d)(1)) in the United States are greater than 50 

22 percent of total annual sales of new passenger vehi23 cles in the United States, the amount of the new 

24 qualified fuel cell motor vehicle credit under this sec25 tion for any new qualified fuel cell motor vehicle 


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1 purchased during a calendar year described in para2 graph (2) shall be equal to the product of— 

3 ‘‘(A) the amount of the credit determined 

4 under subsection (b) without regard to this sub5 section, multiplied by 

6 ‘‘(B) the phase-out percentage under para7 graph (2). 

8 ‘‘(2) PHASE-OUT PERCENTAGE.—The phase-out 

9 percentage under this paragraph is equal to— 

10 ‘‘(A) for a vehicle purchased during the 

11 first calendar year following the calendar year 

12 in which the determination described in para13 graph (1) is made, 100 percent, 

14 ‘‘(B) for a vehicle purchased during the 

15 second calendar year following such determina16 tion year, 75 percent, 

17 ‘‘(C) for a vehicle purchased during the 

18 third calendar year following such determina19 tion year, 50 percent, and 

20 ‘‘(D) for a vehicle purchased during any 

21 calendar year subsequent to the year described 

22 in subparagraph (C), 0 percent.’’. 

23 (3) EFFECTIVE DATE.—The amendments made 

24 by this subsection shall apply to property purchased 

25 after December 31, 2021. 


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1 (b) ALTERNATIVE FUEL VEHICLE REFUELING

2 PROPERTY CREDIT.— 

3 (1) CREDIT PHASE-OUT.—Section 30C is 

4 amended by striking subsection (g) and inserting the 

5 following: 

6 ‘‘(g) CREDIT PHASE-OUT.— 

7 ‘‘(1) IN GENERAL.—Following a determination 

8 by the Secretary, the Secretary of Transportation, 

9 and the Administrator of the Environmental Protec10 tion Agency under section 45V(d)(1) that the green11 house gas emissions from the transportation of per12 sons and goods annually in the United States are 

13 equal to or less than 25 percent of the greenhouse 

14 gas emissions from the transportation of persons 

15 and goods in the United States during calendar year 

16 2021, the amount of the credit under this section for 

17 any qualified alternative fuel vehicle refueling prop18 erty placed in service during a calendar year de19 scribed in paragraph (2) shall be equal to the prod20 uct of— 

21 ‘‘(A) the amount of the credit allowed 

22 under subsection (a) (as determined without re23 gard to this subsection), multiplied by 

24 ‘‘(B) the phase-out percentage under para25 graph (2). 


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1 ‘‘(2) PHASE-OUT PERCENTAGE.—The phase-out 

2 percentage under this paragraph is equal to— 

3 ‘‘(A) for any property placed in service 

4 during the first calendar year following the cal5 endar year in which the determination described 

6 in paragraph (1) is made, 100 percent, 

7 ‘‘(B) for any property placed in service 

8 during the second calendar year following such 

9 determination year, 75 percent, 

10 ‘‘(C) for any property placed in service 

11 during the third calendar year following such 

12 determination year, 50 percent, and 

13 ‘‘(D) for any property placed in service 

14 during any calendar year subsequent to the 

15 year described in subparagraph (C), 0 per16 cent.’’. 

17 (2) MODIFICATION.— 

18 (A) IN GENERAL.—Section 30C(b) is 

19 amended— 

20 (i) by striking ‘‘with respect to all 

21 qualified alternative fuel vehicle refueling 

22 property placed in service by the taxpayer 

23 during the taxable year at a location’’ and 

24 inserting ‘‘with respect to any single item 

25 of qualified alternative fuel vehicle refuelVerDate Sep 11 2014 00:26 Jun 22, 2021 Jkt 019200 PO 00000 Frm 00131 Fmt 6652 Sfmt 6201 E:\BILLS\S2118.PCS S2118

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1 ing property placed in service by the tax2 payer during the taxable year’’, and 

3 (ii) in paragraph (1), by striking 

4 ‘‘$30,000’’ and inserting ‘‘$200,000’’. 

5 (B) EFFECTIVE DATE.—The amendments 

6 made by this paragraph shall apply to property 

7 placed in service after December 31, 2021. 

8 (3) ADDITIONAL MODIFICATION.— 

9 (A) IN GENERAL.—Section 30C, as amend10 ed by paragraphs (1) and (2), is amended— 

11 (i) in subsection (c)(2)— 

12 (I) in subparagraph (A), by strik13 ing ‘‘one or more’’ and all that follows 

14 through the period and inserting the 

15 following: ‘‘hydrogen or any transpor16 tation fuel for which the clean fuel 

17 production credit is allowed under sec18 tion 45V with respect to the produc19 tion and sale of such fuel.’’, and 

20 (II) by striking subparagraph (B) 

21 and inserting the following: 

22 ‘‘(B) Any mixture— 

23 ‘‘(i) which consists of— 

24 ‘‘(I) any transportation fuel— 


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1 ‘‘(aa) for which the clean 

2 fuel production credit is allowed 

3 under section 45V with respect to 

4 the production and sale of such 

5 fuel, and 

6 ‘‘(bb) which is a liquid fuel, 

7 and 

8 ‘‘(II) any taxable fuel (as defined 

9 in section 4083(a)(1)), and 

10 ‘‘(ii) at least 20 percent of the volume 

11 of which consists of fuel described in 

12 clause (i)(I).’’, and 

13 (ii) in subsection (e), by adding at the 

14 end the following: 

15 ‘‘(7) WAGE REQUIREMENTS.— 

16 ‘‘(A) IN GENERAL.—The term ‘qualified 

17 alternative fuel vehicle refueling property’ shall 

18 not include any property which fails to satisfy— 

19 ‘‘(i) subject to clause (ii) of subpara20 graph (B), the requirements under clause 

21 (i) of such subparagraph, and 

22 ‘‘(ii) with respect to the construction 

23 of such property, the requirements under 

24 section 501 of the Clean Energy for Amer25 ica Act. 


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1 ‘‘(B) REQUIREMENTS.— 

2 ‘‘(i) IN GENERAL.—The requirements 

3 described in this clause with respect to any 

4 property are that the taxpayer shall ensure 

5 that any laborers and mechanics employed 

6 by contractors and subcontractors in the 

7 construction of such property are to be 

8 paid wages at rates not less than the pre9 vailing rates for construction of a similar 

10 character in the locality as determined by 

11 the Secretary of Labor, in accordance with 

12 subchapter IV of chapter 31 of title 40, 

13 United States Code. 

14 ‘‘(ii) CORRECTION AND PENALTY RE15 LATED TO FAILURE TO SATISFY WAGE RE16 QUIREMENTS.—In the case of any taxpayer 

17 which fails to satisfy the requirement 

18 under clause (i) with respect to any prop19 erty, rules similar to the rules of section 

20 45U(b)(3)(B)(ii) shall apply for purposes 

21 of this subparagraph.’’. 

22 (B) EFFECTIVE DATE.—The amendments 

23 made by this paragraph shall apply to property 

24 placed in service after December 31, 2022. 

25 (c) ELECTRIC VEHICLES.— 


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1 (1) 2- AND 3-WHEELED PLUG-IN ELECTRIC VE2 HICLES.— 

3 (A) IN GENERAL.—Section 30D(g)(3)(E) 

4 is amended by striking clause (ii) and inserting 

5 the following: 

6 ‘‘(ii) after December 31, 2014.’’. 

7 (B) EFFECTIVE DATE.—The amendments 

8 made by this paragraph shall apply to vehicles 

9 acquired after December 31, 2020. 

10 (2) ELIMINATION ON LIMITATION ON NUMBER

11 OF VEHICLES ELIGIBLE FOR CREDIT.— 

12 (A) IN GENERAL.—Section 30D is amend13 ed by striking subsection (e). 

14 (B) EFFECTIVE DATE.—The amendment 

15 made by this paragraph shall apply to vehicles 

16 sold after May 24, 2021. 

17 (3) MAKING NEW QUALIFIED PLUG-IN ELEC18 TRIC DRIVE MOTOR VEHICLE CREDIT REFUNDABLE

19 FOR INDIVIDUALS.— 

20 (A) IN GENERAL.—The Internal Revenue 

21 Code of 1986 is amended— 

22 (i) by redesignating section 30D as 

23 section 36C, and 

24 (ii) by moving section 36C (as so re25 designated) from subpart A of part IV of 


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1 subchapter A of chapter 1 to the location 

2 immediately before section 37 in subpart C 

3 of part IV of subchapter A of chapter 1. 

4 (B) CONFORMING AMENDMENTS.— 

5 (i) Section 36C, as amended by para6 graph (2) and as redesignated and moved 

7 by subparagraph (A), is amended— 

8 (I) in subsection (a), by striking 

9 ‘‘There shall be allowed’’ and insert10 ing ‘‘In the case of an individual, 

11 there shall be allowed’’, 

12 (II) by striking subsection (c), 

13 (III) by redesignating subsections 

14 (d), (f), and (g) as subsections (c), 

15 (d), and (e), respectively, 

16 (IV) in subsection (d), as so re17 designated— 

18 (aa) by striking ‘‘(deter19 mined without regard to sub20 section (c))’’ each place it ap21 pears, and 

22 (bb) by striking paragraph 

23 (3), and 

24 (V) in subsection (e)(3)(B), as so 

25 redesignated, by striking ‘‘subsection 


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1 (d)(1)’’ and inserting ‘‘subsection 

2 (c)(1)’’. 

3 (ii) Subsection (l)(1) of section 30B, 

4 as added by subsection (a)(2), is amended 

5 by striking ‘‘section 30D(d)(1)’’ and in6 serting ‘‘section 36C(c)(1)’’. 

7 (iii) Paragraph (37) of section 

8 1016(a) is amended by striking ‘‘section 

9 30D(f)(1)’’ and inserting ‘‘section 

10 36C(d)(1)’’. 

11 (iv) Section 6501(m) is amended by 

12 striking ‘‘30D(e)(4)’’ and inserting 

13 ‘‘36C(d)(6)’’. 

14 (v) Section 166(b)(5)(A)(ii) of title 

15 23, United States Code, is amended by 

16 striking ‘‘section 30D(d)(1)’’ and inserting 

17 ‘‘section 36C(c)(1)’’. 

18 (vi) The table of sections for subpart 

19 C of part IV of subchapter A of chapter 1 

20 is amended by inserting after the item re21 lating to section 36B the following new 

22 item: 

‘‘Sec. 36C. New qualified plug-in electric drive motor vehicles.’’. 

23 (C) EFFECTIVE DATE.—The amendments 

24 made by this paragraph shall apply to vehicles 

25 acquired after December 31, 2021. 


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1 (4) VIN REQUIREMENT.— 

2 (A) IN GENERAL.—Section 36C(c)(1), as 

3 redesignated and moved by paragraph (3), is 

4 amended— 

5 (i) in subparagraph (E), by striking 

6 ‘‘and’’ at the end, 

7 (ii) in subparagraph (F)(ii), by strik8 ing the period at the end and inserting ‘‘, 

9 and’’, and 

10 (iii) by adding at the end the fol11 lowing: 

12 ‘‘(G) for which the taxpayer has provided 

13 the vehicle identification number on the return 

14 of tax for the taxable year, unless, in accord15 ance with applicable rules promulgated by the 

16 Secretary of Transportation, the vehicle is not 

17 assigned such a number.’’. 

18 (B) MATHEMATICAL OR CLERICAL

19 ERROR.—Section 6213(g)(2) is amended— 

20 (i) in subparagraph (P), by striking 

21 ‘‘and’’ at the end, 

22 (ii) in subparagraph (Q), by striking 

23 the period at the end and inserting ‘‘, 

24 and’’, and 


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1 (iii) by adding at the end the fol2 lowing: 

3 ‘‘(R) an omission of a correct vehicle iden4 tification number required under section 

5 36C(c)(1)(G) (relating to credit for new quali6 fied plug-in electric drive motor vehicles) to be 

7 included on a return, or the inclusion of any in8 formation with respect to the credit under sec9 tion 36C which is inconsistent with the report 

10 provided under section 36C(g).’’. 

11 (C) EFFECTIVE DATE.—The amendments 

12 made by this paragraph shall apply to vehicles 

13 acquired after December 31, 2021. 

14 (5) PHASEOUT.—Section 36C, as redesignated, 

15 moved, and amended by the preceding paragraphs of 

16 this subsection, is amended by adding at the end the 

17 following: 

18 ‘‘(f) CREDIT PHASE-OUT.— 

19 ‘‘(1) IN GENERAL.—Following a determination 

20 by the Secretary and the Secretary of Transpor21 tation that total annual sales of new qualified fuel 

22 cell motor vehicles (as defined in section 30B(b)(3)) 

23 and new qualified plug-in electric drive motor vehi24 cles in the United States are greater than 50 per25 cent of total annual sales of new passenger vehicles 


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1 in the United States, the amount of the credit al2 lowed under this section for any new qualified plug3 in electric drive motor vehicle sold or qualified 2- or 

4 3-wheeled plug-in electric vehicle acquired during a 

5 calendar year described in paragraph (2) shall be 

6 equal to the product of— 

7 ‘‘(A) the amount of the credit determined 

8 under subsection (a) without regard to this sub9 section, multiplied by 

10 ‘‘(B) the phase-out percentage under para11 graph (2). 

12 ‘‘(2) PHASE-OUT PERCENTAGE.—The phase-out 

13 percentage under this paragraph is equal to— 

14 ‘‘(A) for a vehicle sold or acquired during 

15 the first calendar year following the calendar 

16 year in which the determination described in 

17 paragraph (1) is made, 100 percent, 

18 ‘‘(B) for a vehicle sold or acquired during 

19 the second calendar year following such deter20 mination year, 75 percent, 

21 ‘‘(C) for a vehicle sold or acquired during 

22 the third calendar year following such deter23 mination year, 50 percent, and 


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1 ‘‘(D) for a vehicle sold or acquired during 

2 any calendar year subsequent to the year de3 scribed in subparagraph (C), 0 percent.’’. 

4 (6) CREDIT INCREASE.— 

5 (A) IN GENERAL.—Subsection (b) of sec6 tion 36C, as redesignated and moved by the 

7 preceding paragraphs of this subsection, is 

8 amended— 

9 (i) by adding at the end the following 

10 new paragraphs: 

11 ‘‘(4) VEHICLES PRODUCED BY LABOR ORGANI12 ZATION FACILITY.—In the case of a vehicle the final 

13 assembly of which is at a facility whose production 

14 workers are members of or represented by a labor 

15 organization, the amount determined under this 

16 paragraph is $2,500. 

17 ‘‘(5) ASSEMBLY IN UNITED STATES.—In the 

18 case of a vehicle— 

19 ‘‘(A) the final assembly of which is at a fa20 cility which is located in the United States, and 

21 ‘‘(B) which is acquired before January 1, 

22 2026, 

23 the amount determined under this paragraph is 

24 $2,500.’’, 


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1 (ii) by striking ‘‘is $2,500.’’ in para2 graph (2) and inserting ‘‘is— 

3 ‘‘(i) $2,500, in the case of a vehicle 

4 sold before January 1, 2026, and 

5 ‘‘(ii) $5,000, in the case of a vehicle 

6 sold after December 31, 2025.’’ and 

7 (iii) by striking ‘‘paragraphs (2) and 

8 (3)’’ in paragraph (1) and inserting ‘‘para9 graphs (2), (3), (4), and (5)’’. 

10 (B) EFFECTIVE DATE.—The amendments 

11 made by this paragraph shall apply to vehicles 

12 acquired after December 31, 2021. 

13 (7) LIMITATION BASED ON PLACE OF ASSEM14 BLY.— 

15 (A) IN GENERAL.—Paragraph (1) of sec16 tion 36C(c), as redesignated, moved, and 

17 amended by the preceding paragraphs of this 

18 subsection, is further amended— 

19 (i) by striking ‘‘and’’ at the end of 

20 subparagraph (F)(ii), 

21 (ii) by striking the period at the end 

22 of subparagraph (G) and inserting ‘‘, 

23 and’’, and 

24 (iii) by adding at the end the fol25 lowing new subparagraph: 


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1 ‘‘(H) in the case of a vehicle sold after De2 cember 31, 2025, the final assembly of which is 

3 at a facility which is located in the United 

4 States.’’. 

5 (B) EFFECTIVE DATE.—The amendments 

6 made by this paragraph shall apply to vehicles 

7 acquired after December 31, 2021. 

8 (8) LIMITATION BASED ON MANUFACTURER’S

9 SUGGESTED RETAIL PRICE.— 

10 (A) IN GENERAL.—Paragraph (1) of sec11 tion 36C(c), as redesignated, moved, and 

12 amended by the preceding paragraphs of this 

13 subsection, is further amended— 

14 (i) by striking ‘‘and’’ at the end of 

15 subparagraph (G), 

16 (ii) by striking the period at the end 

17 of subparagraph (H) and inserting ‘‘, 

18 and’’, and 

19 (iii) by adding at the end the fol20 lowing new subparagraph: 

21 ‘‘(I) the manufacturer’s suggested retail 

22 price for which is not in excess of $80,000.’’. 

23 (B) EFFECTIVE DATE.—The amendments 

24 made by this paragraph shall apply to vehicles 

25 acquired after December 31, 2021. 


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1 (9) REPORTING REQUIREMENT.— 

2 (A) IN GENERAL.—Section 36C, as redes3 ignated, moved, and amended by the preceding 

4 paragraphs of this subsection, is further amend5 ed by adding at the end the following new sub6 section: 

7 ‘‘(g) REPORTING REQUIREMENT.—The person who 

8 sells or leases any new qualified plug-in electric drive 

9 motor vehicle to the taxpayer shall furnish a report to the 

10 taxpayer and to the Secretary, at such time and in such 

11 manner as the Secretary shall provide, containing— 

12 ‘‘(1) the taxpayer’s name and taxpayer identi13 fication number, 

14 ‘‘(2) the vehicle identification number of the ve15 hicle, unless, in accordance with applicable rules pro16 mulgated by the Secretary of Transportation, the ve17 hicle is not assigned such a number, 

18 ‘‘(3) the battery capacity of the vehicle, 

19 ‘‘(4) verification that original use of the vehicle 

20 commences with the taxpayer, and 

21 ‘‘(5) the maximum credit under this section al22 lowable to the taxpayer with respect to the vehicle.’’. 

23 (B) EFFECTIVE DATE.—The amendments 

24 made by this paragraph shall apply to vehicles 

25 acquired after December 31, 2021. 


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1 (10) LIMITATION TO NON-BUSINESS VEHI2 CLES.— 

3 (A) IN GENERAL.—Paragraph (1) of sec4 tion 36C(c), as redesignated, moved, and 

5 amended by the preceding paragraphs of this 

6 subsection, is further amended— 

7 (i) by striking ‘‘and’’ at the end of 

8 subparagraph (H), 

9 (ii) by striking the period at the end 

10 of subparagraph (I) and inserting ‘‘, and’’, 

11 and 

12 (iii) by adding at the end the fol13 lowing new subparagraph: 

14 ‘‘(J) which is not of a character subject to 

15 the allowance for depreciation.’’. 

16 (B) EFFECTIVE DATE.—The amendments 

17 made by this paragraph shall apply to vehicles 

18 acquired after December 31, 2021. 

19 (11) QUALIFIED COMMERCIAL ELECTRIC VEHI20 CLES.— 

21 (A) IN GENERAL.—Subpart D of part IV 

22 of subchapter A of chapter 1, as amended by 

23 sections 101 and 201, is amended by adding at 

24 the end the following new section: 


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1 ‘‘SEC. 45W. CREDIT FOR QUALIFIED COMMERCIAL ELEC2 TRIC VEHICLES. 

3 ‘‘(a) IN GENERAL.—For purposes of section 38, the 

4 qualified commercial electric vehicle credit for any taxable 

5 year is an amount equal to the sum of the credit amounts 

6 determined under subsection (b) with respect to each 

7 qualified commercial electric vehicle placed in service by 

8 the taxpayer during the taxable year. 

9 ‘‘(b) PER VEHICLE AMOUNT.— 

10 ‘‘(1) IN GENERAL.—The amount determined 

11 under this subsection with respect to any qualified 

12 commercial electric vehicle shall be equal to the less13 er of— 

14 ‘‘(A) 30 percent of the basis of such vehi15 cle, or 

16 ‘‘(B) the incremental cost of such vehicle. 

17 ‘‘(2) INCREMENTAL COST.— 

18 ‘‘(A) IN GENERAL.—For purposes of para19 graph (1)(B), the incremental cost of any quali20 fied commercial electric vehicle is an amount 

21 equal to the excess of the purchase price for 

22 such vehicle over such price for a comparable 

23 vehicle. 

24 ‘‘(B) COMPARABLE VEHICLE.—For pur25 poses of this paragraph, the term ‘comparable 

26 vehicle’ means, with respect to any qualified 


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1 commercial electric vehicle, any vehicle which is 

2 powered solely by a gasoline or diesel internal 

3 combustion engine and which is comparable in 

4 weight, size, and use to such vehicle. 

5 ‘‘(C) COMPARATIVE PRICE.— For purposes 

6 of subparagraph (A), the Secretary and the 

7 Secretary of Transportation shall publish an 

8 annual list of prices of various types and classes 

9 of commercial vehicles described in subpara10 graph (B). 

11 ‘‘(3) EXCLUSION.—For purposes of paragraph 

12 (1)(A), the basis of any qualified commercial electric 

13 vehicle which is a qualified electric transportation 

14 option shall not include any cost relating to any 

15 component or feature which— 

16 ‘‘(A) is not integral to the vehicle, or 

17 ‘‘(B) does not contribute to improving the 

18 efficiency or range of the electric propulsion of 

19 the vehicle. 

20 ‘‘(c) QUALIFIED COMMERCIAL ELECTRIC VEHI21 CLE.—For purposes of this section— 

22 ‘‘(1) IN GENERAL.—The term ‘qualified com23 mercial electric vehicle’ means— 

24 ‘‘(A) any vehicle which— 


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1 ‘‘(i) meets the requirements of sub2 paragraphs (A), (B), (C), (D), and (G) of 

3 section 36C(c)(1), 

4 ‘‘(ii) is primarily propelled by an elec5 tric motor which draws electricity from a 

6 battery which— 

7 ‘‘(I) has a capacity of not less 

8 than 10 kilowatt hours, and 

9 ‘‘(II) is capable of being re10 charged from an external source of 

11 electricity, and 

12 ‘‘(iii) is of a character subject to the 

13 allowance for depreciation, and 

14 ‘‘(B) any qualified electric transportation 

15 option. 

16 ‘‘(2) QUALIFIED ELECTRIC TRANSPORTATION

17 OPTION.— 

18 ‘‘(A) IN GENERAL.—The term ‘qualified 

19 electric transportation option’ means any vehi20 cle used in any manner of transportation— 

21 ‘‘(i) the original use of which com22 mences with the taxpayer, 

23 ‘‘(ii) which is acquired for use or lease 

24 by the taxpayer and not for resale, 


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1 ‘‘(iii) which is capable of moving pas2 sengers, cargo, or property, 

3 ‘‘(iv) which is powered by an inte4 grated, on-board electric propulsion system 

5 which— 

6 ‘‘(I) is the primary source of pro7 pulsion, 

8 ‘‘(II) is capable of powering the 

9 vehicle (including any of its compo10 nents and accessories) for not less 

than 2 11 ⁄3 of the maximum operating 

12 period between recharging or refueling 

13 of such vehicle, and 

14 ‘‘(III) in the case of a vehicle 

15 which derives any of its power from 

16 the on-board combustion of a fuel, 

17 uses a renewable fuel, 

18 ‘‘(v) which was manufactured for sale 

19 in commercial quantities with a reasonable 

20 expectation of profit, 

21 ‘‘(vi) which is in compliance with any 

22 applicable safety or air quality standards, 

23 as determined by the Secretary, the Sec24 retary of Transportation, the Secretary of 

25 Homeland Security, and the Administrator 


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1 of the Environmental Protection Agency, 

2 and 

3 ‘‘(vii) which is of a character subject 

4 to the allowance for depreciation. 

5 ‘‘(B) ON-BOARD ELECTRIC PROPULSION

6 SYSTEM.—For purposes of this paragraph, the 

7 term ‘on-board electric propulsion system’ 

8 means— 

9 ‘‘(i) 1 or more on-board traction bat10 teries which— 

11 ‘‘(I) are integrated or swappable, 

12 and 

13 ‘‘(II) have an aggregate capacity 

14 (as defined in subsection (d)(4)) of 

15 not less than 10 kilowatt hours, or 

16 ‘‘(ii) an on-board power source other 

17 than a battery with an electrical output ca18 pacity equivalent of not less than 10 kilo19 watt hours, as determined by the Sec20 retary. 

21 ‘‘(C) RENEWABLE FUEL.—For purposes of 

22 this paragraph, the term ‘renewable fuel’ means 

23 any fuel at least 85 percent of the volume of 

24 which consists of one or more of the following: 

25 ‘‘(i) Ethanol. 


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1 ‘‘(ii) Biodiesel (as defined in section 

2 40A(d)(1)). 

3 ‘‘(iii) Advanced biofuel (as defined in 

4 section 211(o)(1)(B) of the Clean Air Act 

5 (42 U.S.C. 7545(o)(1)(B))). 

6 ‘‘(iv) Renewable natural gas. 

7 ‘‘(v) Hydrogen. 

8 ‘‘(d) SPECIAL RULES.— 

9 ‘‘(1) IN GENERAL.—Rules similar to the rules 

10 under subsection (d) of section 36C shall apply for 

11 purposes of this section. 

12 ‘‘(2) PROPERTY USED BY TAX-EXEMPT ENTI13 TY.—In the case of a vehicle the use of which is de14 scribed in paragraph (3) or (4) of section 50(b) and 

15 which is not subject to a lease, the person who sold 

16 such vehicle to the person or entity using such vehi17 cle shall be treated as the taxpayer that placed such 

18 vehicle in service, but only if such person clearly dis19 closes to such person or entity in a document the 

20 amount of any credit allowable under subsection (a) 

21 with respect to such vehicle. 

22 ‘‘(e) CREDIT PHASE-OUT.— 

23 ‘‘(1) IN GENERAL.—Following a determination 

24 by the Secretary and the Secretary of Transpor25 tation that total annual sales of qualified commercial 


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1 electric vehicles in the United States are greater 

2 than 50 percent of total annual sales of new com3 mercial vehicles in the United States, the amount of 

4 the credit allowed under this section for any quali5 fied commercial electric vehicle acquired during a 

6 calendar year described in paragraph (2) shall be 

7 equal to the product of— 

8 ‘‘(A) the amount of the credit determined 

9 under subsection (a) without regard to this sub10 section, multiplied by 

11 ‘‘(B) the phase-out percentage under para12 graph (2). 

13 ‘‘(2) PHASE-OUT PERCENTAGE.—The phase-out 

14 percentage under this paragraph is equal to— 

15 ‘‘(A) for a vehicle acquired during the first 

16 calendar year following the calendar year in 

17 which the determination described in paragraph 

18 (1) is made, 100 percent, 

19 ‘‘(B) for a vehicle acquired during the sec20 ond calendar year following such determination 

21 year, 75 percent, 

22 ‘‘(C) for a vehicle acquired during the 

23 third calendar year following such determina24 tion year, 50 percent, and 


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1 ‘‘(D) for a vehicle acquired during any cal2 endar year subsequent to the year described in 

3 subparagraph (C), 0 percent. 

4 ‘‘(f) REPORTING REQUIREMENT.—The person who 

5 sells or leases any qualified commercial electric vehicle to 

6 the taxpayer shall furnish a report to the taxpayer and 

7 to the Secretary, at such time and in such manner as the 

8 Secretary shall provide, containing— 

9 ‘‘(1) the taxpayer’s name and taxpayer identi10 fication number, 

11 ‘‘(2) the vehicle identification number of the ve12 hicle, unless, in accordance with applicable rules pro13 mulgated by the Secretary of Transportation, the ve14 hicle is not assigned such a number, 

15 ‘‘(3) the battery capacity of the vehicle, 

16 ‘‘(4) verification that original use of the vehicle 

17 commences with the taxpayer, and 

18 ‘‘(5) the maximum credit under this section al19 lowable to the taxpayer with respect to the vehicle.’’. 

20 (B) MATHEMATICAL OR CLERICAL

21 ERROR.—Section 6213(g)(2), as amended by 

22 paragraph (4), is further amended— 

23 (i) in subparagraph (Q), by striking 

24 ‘‘and’’ at the end, 


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1 (ii) in subparagraph (R), by striking 

2 the period at the end and inserting ‘‘, 

3 and’’, and 

4 (iii) by adding at the end the fol5 lowing: 

6 ‘‘(S) the inclusion of any information for 

7 purposes of the credit under section 45W which 

8 is inconsistent with the report provided under 

9 section 45W(f).’’. 

10 (C) CONFORMING AMENDMENTS.— 

11 (i) Section 38(b), as amended by sec12 tion 201, is further amended by striking 

13 paragraph (30) and inserting the following: 

14 ‘‘(30) the qualified commercial electric vehicle 

15 credit determined under section 45W,’’. 

16 (ii) The table of sections for subpart 

17 D of part IV of subchapter A of chapter 1, 

18 as amended by sections 101 and 102, is 

19 amended by adding at the end the fol20 lowing new item: 

‘‘Sec. 45W. Qualified commercial electric vehicle credit.’’. 

21 (D) EFFECTIVE DATE.—The amendments 

22 made by this paragraph shall apply to vehicles 

23 acquired after December 31, 2021. 

24 (12) CERTIFICATION BY SECRETARY.—No cred25 it shall be allowed under section 36C or section 45W 


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1 of the Internal Revenue Code of 1986 for any vehi2 cle acquired after December 31, 2021, unless the 

3 Secretary of the Treasury certifies that no credit 

4 under either such section will be allowed with respect 

5 to any new qualified plug-in electric drive motor ve6 hicle, any qualified 2- or 3-wheeled plug-in electric 

7 vehicle, or any qualified commercial electric vehicle 

8 the final assembly of which is in the People’s Repub9 lic of China. 

10 SEC. 203. CREDIT FOR PRODUCTION OF CLEAN HYDROGEN. 

11 (a) IN GENERAL.—Subpart D of part IV of sub12 chapter A of chapter 1, as amended by sections 101, 201, 

13 and 202, is amended by adding at the end the following 

14 new section: 

15 ‘‘SEC. 45X. CREDIT FOR PRODUCTION OF CLEAN HYDRO16 GEN. 

17 ‘‘(a) AMOUNT OF CREDIT.—For purposes of section 

18 38, the clean hydrogen production credit for any taxable 

19 year is an amount equal to the product of— 

20 ‘‘(1) the applicable amount, multiplied by 

21 ‘‘(2) the kilograms of qualified clean hydro22 gen— 

23 ‘‘(A) produced by the taxpayer at a quali24 fied clean hydrogen production facility during 


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1 the 10-year period beginning on the date the fa2 cility was placed in service, and 

3 ‘‘(B) sold by the taxpayer to an unrelated 

4 person, or used by the taxpayer, during the tax5 able year. 

6 ‘‘(b) APPLICABLE AMOUNT.— 

7 ‘‘(1) IN GENERAL.—For purposes of subsection 

8 (a)(1), the applicable amount shall be an amount 

9 equal to the applicable percentage of $3.00. If any 

10 amount as determined under the preceding sentence 

11 is not a multiple of 0.1 cent, such amount shall be 

12 rounded to the nearest multiple of 0.1 cent. 

13 ‘‘(2) APPLICABLE PERCENTAGE.—For purposes 

14 of paragraph (1), the term ‘applicable percentage’ 

15 means— 

16 ‘‘(A) in the case of any qualified clean hy17 drogen which is produced through a process 

18 that, as compared to hydrogen produced by 

19 steam-methane reforming, achieves a percent20 age reduction in lifecycle greenhouse gas emis21 sions which is less than 75 percent, 20 percent, 

22 ‘‘(B) in the case of any qualified clean hy23 drogen which is produced through a process 

24 that, as compared to hydrogen produced by 

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1 age reduction in lifecycle greenhouse gas emis2 sions which is not less than 75 percent and less 

3 than 85 percent, 25 percent, 

4 ‘‘(C) in the case of any qualified clean hy5 drogen which is produced through a process 

6 that, as compared to hydrogen produced by 

7 steam-methane reforming, achieves a percent8 age reduction in lifecycle greenhouse gas emis9 sions which is not less than 85 percent and less 

10 than 95 percent, 34 percent, and 

11 ‘‘(D) in the case of any qualified clean hy12 drogen which is produced through a process 

13 that, as compared to hydrogen produced by 

14 steam-methane reforming, achieves a percent15 age reduction in lifecycle greenhouse gas emis16 sions which is not less than 95 percent, 100 

17 percent. 

18 ‘‘(3) INFLATION ADJUSTMENT.—The $3.00 

19 amount in paragraph (1) shall be adjusted by multi20 plying such amount by the inflation adjustment fac21 tor (as determined under section 45(e)(2), deter22 mined by substituting ‘2020’ for ‘1992’ in subpara23 graph (B) thereof) for the calendar year in which 

24 the sale or use of the qualified clean hydrogen oc25 curs. If any amount as increased under the preVerDate Sep 11 2014 00:26 Jun 22, 2021 Jkt 019200 PO 00000 Frm 00157 Fmt 6652 Sfmt 6201 E:\BILLS\S2118.PCS S2118

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1 ceding sentence is not a multiple of 0.1 cent, such 

2 amount shall be rounded to the nearest multiple of 

3 0.1 cent. 

4 ‘‘(c) CREDIT REDUCED FOR GRANTS, TAX-EXEMPT

5 BONDS, SUBSIDIZED ENERGY FINANCING, AND OTHER

6 CREDITS.—The amount of the credit determined under 

7 subsection (a) with respect to any qualified clean hydrogen 

8 production facility for any taxable year shall be reduced 

9 in a manner similar to the reduction applied under section 

10 45(b)(3). 

11 ‘‘(d) DEFINITIONS.—For purposes of this section— 

12 ‘‘(1) LIFECYCLE GREENHOUSE GAS EMIS13 SIONS.—For purposes of this section, the term 

14 ‘lifecycle greenhouse gas emissions’ has the same 

15 meaning given such term under subparagraph (H) of 

16 section 211(o)(1) of the Clean Air Act (42 U.S.C. 

17 7545(o)(1)), as in effect on the date of enactment of 

18 this section. 

19 ‘‘(2) QUALIFIED CLEAN HYDROGEN.— 

20 ‘‘(A) IN GENERAL.—The term ‘qualified 

21 clean hydrogen’ means hydrogen which is pro22 duced through a process that, as compared to 

23 hydrogen produced by steam-methane reforming 

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1 centage reduction in lifecycle greenhouse gas 

2 emissions which is not less than 50 percent. 

3 ‘‘(B) EXCLUSION.—The term ‘qualified 

4 clean hydrogen’ shall not include any hydrogen 

5 for which a credit is allowed for the taxable 

6 year— 

7 ‘‘(i) under section 38 which is prop8 erly allocable to any credit determined 

9 under this part (other than this section), 

10 or 

11 ‘‘(ii) under subchapter B of chapter 

12 65 of subtitle F. 

13 ‘‘(3) QUALIFIED CLEAN HYDROGEN PRODUC14 TION FACILITY.— 

15 ‘‘(A) IN GENERAL.—The term ‘qualified 

16 clean hydrogen production facility’ means— 

17 ‘‘(i) a facility owned by the tax18 payer— 

19 ‘‘(I) which produces qualified 

20 clean hydrogen which, with respect to 

21 any taxable year, is sold by the tax22 payer to an unrelated person or used 

23 by the taxpayer, and 

24 ‘‘(II) which— 


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1 ‘‘(aa) subject to clause (ii) 

2 of subparagraph (B), satisfies the 

3 requirements under clause (i) of 

4 such subparagraph, and 

5 ‘‘(bb) with respect to the 

6 construction of such facility, sat7 isfies the requirements under sec8 tion 501 of the Clean Energy for 

9 America Act, and 

10 ‘‘(ii) in connection with any facility 

11 described in clause (i), any property used 

12 to convert feedstock to hydrogen, including 

13 any equipment or supporting facility 

14 which— 

15 ‘‘(I) accepts or receives feedstock, 

16 ‘‘(II) conditions or stores feed17 stock or hydrogen, or 

18 ‘‘(III) distributes or redistributes 

19 hydrogen. 

20 ‘‘(B) WAGE REQUIREMENTS.— 

21 ‘‘(i) IN GENERAL.—The requirements 

22 described in this subparagraph with re23 spect to any facility are that the taxpayer 

24 shall ensure that any laborers and mechanVerDate Sep 11 2014 00:26 Jun 22, 2021 Jkt 019200 PO 00000 Frm 00160 Fmt 6652 Sfmt 6201 E:\BILLS\S2118.PCS S2118

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1 ics employed by contractors and sub2 contractors in— 

3 ‘‘(I) the construction of such fa4 cility, or 

5 ‘‘(II) for any year described in 

6 subsection (a)(2)(A) for which the 

7 credit under this section is claimed, 

8 the alteration or repair of such facil9 ity, 

10 shall be paid wages at rates not less than 

11 the prevailing rates for construction, alter12 ation, or repair of a similar character in 

13 the locality as determined by the Secretary 

14 of Labor, in accordance with subchapter 

15 IV of chapter 31 of title 40, United States 

16 Code. 

17 ‘‘(ii) FAILURE TO SATISFY WAGE RE18 QUIREMENTS; CORRECTION AND PEN19 ALTY.—In the case of any taxpayer which 

20 fails to satisfy the requirement under 

21 clause (i) with respect to the construction 

22 of any facility or the alteration or repair of 

23 such facility in any year during the period 

24 described in clause (i)(II), rules similar to 

25 the rules of clauses (i) and (ii) of section 


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1 45U(b)(3)(B) shall apply for purposes of 

2 this subparagraph. 

3 ‘‘(4) STEAM-METHANE REFORMING.—The term 

4 ‘steam-methane reforming’ means a hydrogen pro5 duction process in which high-temperature steam is 

6 used to produce hydrogen from natural gas, without 

7 carbon capture and sequestration. 

8 ‘‘(e) SPECIAL RULES.— 

9 ‘‘(1) IN GENERAL.—Rules similar to the rules 

10 of paragraphs (3) and (4) of section 45(e) shall 

11 apply for purposes of this section. 

12 ‘‘(2) PRODUCTION IN THE UNITED STATES.— 

13 No credit shall be allowed under this section with re14 spect to any qualified clean hydrogen which is pro15 duced outside of the United States (as defined in 

16 section 638(1) or any possession of the United 

17 States (as defined in section 638(2)). 

18 ‘‘(f) CREDIT PHASE-OUT.— 

19 ‘‘(1) IN GENERAL.—If the Secretary and the 

20 Administrator of the Environmental Protection 

21 Agency determine that the greenhouse gas emissions 

22 from the transportation of persons and goods annu23 ally in the United States are equal to or less than 

24 25 percent of the greenhouse gas emissions from the 

25 transportation of persons and goods in the United 


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1 States during calendar year 2021, the amount of the 

2 clean hydrogen production credit under this section 

3 shall be determined by substituting the applicable 

4 amount (as determined under paragraph (2)(A)) for 

5 the dollar amount in subsection (b)(1). 

6 ‘‘(2) APPLICABLE DOLLAR AMOUNT.— 

7 ‘‘(A) IN GENERAL.—The applicable 

8 amount for any taxable year described in sub9 paragraph (B) shall be an amount equal to the 

10 product of— 

11 ‘‘(i) the dollar amount in paragraphs 

12 (1) of subsection (b) (as adjusted by para13 graph (3) of such subsection), multiplied 

14 by 

15 ‘‘(ii) the phase-out percentage under 

16 subparagraph (B). 

17 ‘‘(B) PHASE-OUT PERCENTAGE.—The 

18 phase-out percentage under this subparagraph 

19 is equal to— 

20 ‘‘(i) for any taxable year beginning in 

21 the first calendar year following the cal22 endar year in which the determination de23 scribed in paragraph (1) is made, 100 per24 cent, 


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1 ‘‘(ii) for any taxable year beginning in 

2 the second calendar year following such de3 termination year, 75 percent, 

4 ‘‘(iii) for any taxable year beginning 

5 in the third calendar year following such 

6 determination year, 50 percent, and 

7 ‘‘(iv) for any taxable year beginning in 

8 any calendar year subsequent to the year 

9 described in clause (iii), 0 percent. 

10 ‘‘(g) GUIDANCE.—Not later than 1 year after the 

11 date of enactment of this section, the Secretary, the Sec12 retary of Energy, and Administrator of the Environmental 

13 Protection Agency shall publish guidance prescribing 

14 methods for determining the credit based on lifecycle 

15 greenhouse gas emissions.’’. 

16 (b) CONFORMING AMENDMENTS.— 

17 (1) Section 38(b) of the Internal Revenue Code 

18 of 1986, as amended by section 101, 201, and 202, 

19 is amended— 

20 (A) in paragraph (35), by striking ‘‘plus’’ 

21 at the end, 

22 (B) in paragraph (36), by striking the pe23 riod at the end and inserting ‘‘, plus’’, and 

24 (C) by adding at the end the following new 

25 paragraph: 


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1 ‘‘(37) the clean hydrogen production credit de2 termined under section 45X(a).’’. 

3 (2) The table of sections for subpart D of part 

4 IV of subchapter A of chapter 1, as amended by sec5 tions 101, 201, and 202, is amended by adding at 

6 the end the following new item: 

‘‘Sec. 45X. Clean hydrogen production credit.’’. 

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

8 this section shall apply to hydrogen used or sold after De9 cember 31, 2020. 

10 SEC. 204. TEMPORARY EXTENSIONS OF EXISTING FUEL IN11 CENTIVES. 

12 (a) SECOND GENERATION BIOFUEL PRODUCER

13 CREDIT.— 

14 (1) IN GENERAL.—Section 40(b)(6)(J)(i) is 

15 amended by striking ‘‘2022’’ and inserting ‘‘2023’’. 

16 (2) EFFECTIVE DATE.—The amendments made 

17 by this subsection shall apply to qualified second 

18 generation biofuel production after December 31, 

19 2021. 

20 (b) CREDIT FOR ALTERNATIVE FUEL MIXTURES.— 

21 (1) IN GENERAL.—Section 6426 is amended— 

22 (A) in subsection (d)— 

23 (i) in paragraph (2)(D), by striking 

24 ‘‘liquefied’’, and 


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1 (ii) in paragraph (5), by striking 

2 ‘‘2021’’ and inserting ‘‘2022’’, and 

3 (B) in subsection (e)— 

4 (i) in paragraph (2), by inserting 

5 ‘‘nonliquid hydrogen or’’ before ‘‘a fuel de6 scribed’’, and 

7 (ii) in paragraph (3), by striking 

8 ‘‘2021’’ and inserting ‘‘2022’’. 

9 (2) EFFECTIVE DATE.—The amendments made 

10 by this subsection shall apply to fuel sold or used 

11 after December 31, 2021. 

12 (c) ALTERNATIVE FUELS.— 

13 (1) IN GENERAL.—Section 6427(e)(6)(C) is 

14 amended by striking ‘‘2021’’ and inserting ‘‘2022’’. 

15 (2) EFFECTIVE DATE.—The amendments made 

16 by this subsection shall apply to fuel sold or used 

17 after December 31, 2021. 

18 TITLE III—INCENTIVES FOR 

19 ENERGY EFFICIENCY 

20 SEC. 301. CREDIT FOR NEW ENERGY EFFICIENT RESIDEN21 TIAL BUILDINGS. 

22 (a) IN GENERAL.—Section 45L is amended to read 

23 as follows: 


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1 ‘‘SEC. 45L. NEW ENERGY EFFICIENT HOME CREDIT. 

2 ‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec3 tion 38, in the case of an eligible contractor, the new en4 ergy efficient home credit for the taxable year is the appli5 cable amount for each qualified residence which is— 

6 ‘‘(1) constructed by the eligible contractor, and 

7 ‘‘(2) acquired by a person from such eligible 

8 contractor for use as a residence during the taxable 

9 year. 

10 ‘‘(b) APPLICABLE AMOUNT.— 

11 ‘‘(1) IN GENERAL.—For purposes of subsection 

12 (a), the applicable amount shall be an amount equal 

13 to— 

14 ‘‘(A) in the case of a qualified residence 

15 described in subclause (I) of subsection 

16 (c)(3)(A)(iii), $2,500, and 

17 ‘‘(B) in the case of a qualified residence 

18 described in subclause (II) of such subsection, 

19 $5,000. 

20 ‘‘(2) ADJUSTMENT FOR INFLATION.— 

21 ‘‘(A) IN GENERAL.—In the case of a tax22 able year beginning after 2022, the dollar 

23 amounts in paragraph (1) shall each be in24 creased by an amount equal to— 

25 ‘‘(i) such dollar amount, multiplied by 


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1 ‘‘(ii) the cost-of-living adjustment de2 termined under section 1(f)(3) for the cal3 endar year, determined by substituting 

4 ‘calendar year 2021’ for ‘calendar year 

5 2016’ in subparagraph (A)(ii) thereof. 

6 ‘‘(B) ROUNDING.—If any amount as in7 creased under subparagraph (A) is not a mul8 tiple of $100, such amount shall be rounded to 

9 the nearest multiple of $100. 

10 ‘‘(c) DEFINITIONS.—For purposes of this section: 

11 ‘‘(1) CONSTRUCTION.—The term ‘construction’ 

12 does not include substantial reconstruction or reha13 bilitation. 

14 ‘‘(2) ELIGIBLE CONTRACTOR.—The term ‘eligi15 ble contractor’ means— 

16 ‘‘(A) the person who constructed the quali17 fied residence, or 

18 ‘‘(B) in the case of a qualified residence 

19 which is a manufactured home, the manufac20 tured home producer of such residence. 

21 ‘‘(3) QUALIFIED RESIDENCE.— 

22 ‘‘(A) IN GENERAL.—The term ‘qualified 

23 residence’ means a dwelling unit— 

24 ‘‘(i) located in the United States, 


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1 ‘‘(ii) the construction of which is sub2 stantially completed after the date of the 

3 enactment of this section, 

4 ‘‘(iii) which is certified as satisfying 

5 the applicable national program require6 ments under— 

7 ‘‘(I) the Energy Star Residential 

8 New Construction program (or any 

9 successor program, as determined by 

10 the Secretary), as in effect on Janu11 ary 1 of the year in which construc12 tion of the dwelling unit begins, or 

13 ‘‘(II) the Zero Energy Ready 

14 Home program (or any successor pro15 gram, as determined by the Sec16 retary), as in effect on January 1 of 

17 the year in which construction of the 

18 dwelling unit begins, and 

19 ‘‘(iv) in the case of a multifamily 

20 dwelling unit, subject to clause (ii) of sub21 paragraph (B), which satisfies the require22 ments under clause (i) of such subpara23 graph. 

24 ‘‘(B) WAGE REQUIREMENTS.— 


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1 ‘‘(i) IN GENERAL.—The requirements 

2 described in this clause with respect to any 

3 dwelling unit are that the eligible con4 tractor shall ensure that any laborers and 

5 mechanics employed by such contractor 

6 and subcontractors in the construction of 

7 such dwelling unit shall be paid wages at 

8 rates not less than the prevailing rates for 

9 construction of a similar character in the 

10 locality as determined by the Secretary of 

11 Labor, in accordance with subchapter IV 

12 of chapter 31 of title 40, United States 

13 Code. 

14 ‘‘(ii) CORRECTION AND PENALTY RE15 LATED TO FAILURE TO SATISFY WAGE RE16 QUIREMENTS.—In the case of any taxpayer 

17 which fails to satisfy the requirement 

18 under clause (i) with respect to any dwell19 ing unit, rules similar to the rules of sec20 tion 45U(b)(3)(B)(ii) shall apply for pur21 poses of this subparagraph. 

22 ‘‘(C) DENIAL OF DOUBLE BENEFIT.—The 

23 term ‘qualified residence’ does not include any 

24 dwelling unit for which a deduction determined 

25 under section 179D is allowed for the taxable 


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1 year in which the dwelling unit is acquired as 

2 provided in subsection (a)(2). 

3 ‘‘(d) CERTIFICATION.—A certification described in 

4 this section shall be made— 

5 ‘‘(1) by a third party which is accredited by a 

6 certification program approved by the Secretary and 

7 the Secretary of Energy, and 

8 ‘‘(2) in accordance with— 

9 ‘‘(A) any applicable rules under the na10 tional program requirements of the Energy Star 

11 Residential New Construction or Zero Energy 

12 Ready Home programs, as in effect on the date 

13 on which construction of the dwelling unit be14 gins, and 

15 ‘‘(B) guidance prescribed by the Secretary 

16 and the Secretary of Energy. 

17 ‘‘(e) BASIS ADJUSTMENT.—For purposes of this sub18 title, if a credit is allowed under this section in connection 

19 with any expenditure for any property (other than a quali20 fied low-income building, as described in section 42(c)(2)), 

21 the increase in the basis of such property which would (but 

22 for this subsection) result from such expenditure shall be 

23 reduced by the amount of the credit so determined. 

24 ‘‘(f) COORDINATION WITH INVESTMENT CREDITS.— 

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1 count under section 25D or 47 shall not be taken into 

2 account under this section.’’. 

3 (b) EFFECTIVE DATE.—The amendment made by 

4 this section shall apply to any qualified residence acquired 

5 after December 31, 2021. 

6 SEC. 302. ENERGY EFFICIENT HOME IMPROVEMENT CRED7 IT. 

8 (a) IN GENERAL.—Section 25C is amended to read 

9 as follows: 

10 ‘‘SEC. 25C. ENERGY EFFICIENT HOME IMPROVEMENT 

11 CREDIT. 

12 ‘‘(a) IN GENERAL.—In the case of an individual, 

13 there shall be allowed as a credit against the tax imposed 

14 by this chapter for the taxable year an amount equal to 

15 the lesser of— 

16 ‘‘(1) the sum of the applicable qualified prop17 erty amounts for any qualified property placed in 

18 service by the individual during such taxable year, or 

19 ‘‘(2) $1,500. 

20 ‘‘(b) APPLICABLE QUALIFIED PROPERTY AMOUNT.— 

21 ‘‘(1) IN GENERAL.—For any qualified property, 

22 the applicable qualified property amount shall be 

23 equal to the lesser of— 

24 ‘‘(A) 30 percent of the amount paid or in25 curred by the individual for such qualified propVerDate Sep 11 2014 00:26 Jun 22, 2021 Jkt 019200 PO 00000 Frm 00172 Fmt 6652 Sfmt 6201 E:\BILLS\S2118.PCS S2118

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1 erty (including any expenditures for labor costs 

2 properly allocable to the onsite preparation, as3 sembly, or original installation of such prop4 erty), or 

5 ‘‘(B) $600. 

6 ‘‘(2) ADJUSTMENT FOR INFLATION.— 

7 ‘‘(A) IN GENERAL.—In the case of a tax8 able year beginning after 2022, each of the dol9 lar amounts in paragraph (1)(B) (after applica10 tion of subsection (c)(2)) and subsections 

11 (a)(2), (c)(2)(A), and (c)(2)(B)(i)(I) shall be in12 creased by an amount equal to— 

13 ‘‘(i) such dollar amount, multiplied by 

14 ‘‘(ii) the cost-of-living adjustment de15 termined under section 1(f)(3) for the cal16 endar year, determined by substituting 

17 ‘calendar year 2021’ for ‘calendar year 

18 2016’ in subparagraph (A)(ii) thereof. 

19 ‘‘(B) ROUNDING.—If any amount as in20 creased under subparagraph (A) is not a mul21 tiple of $10, such amount shall be rounded to 

22 the nearest multiple of $10. 

23 ‘‘(c) QUALIFIED PROPERTY.— 

24 ‘‘(1) IN GENERAL.—The term ‘qualified prop25 erty’ means a furnace, boiler, condensing water heatVerDate Sep 11 2014 00:26 Jun 22, 2021 Jkt 019200 PO 00000 Frm 00173 Fmt 6652 Sfmt 6201 E:\BILLS\S2118.PCS S2118

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1 er, central air conditioning unit, heat pump, biomass 

2 property, or building envelope improvement which— 

3 ‘‘(A) except as provided in subparagraph 

4 (B), meets or exceeds the requirements of— 

5 ‘‘(i) the highest efficiency tier (not in6 cluding any advanced tier) established by 

7 the Consortium for Energy Efficiency 

8 which are in effect at the time that the 

9 property is placed in service, or 

10 ‘‘(ii) if no standard established by the 

11 Consortium for Energy Efficiency applies 

12 to such property, an equivalent standard 

13 as established by the Secretary and the 

14 Administrator of the Environmental Pro15 tection Agency, 

16 ‘‘(B) in the case of a building envelope im17 provement— 

18 ‘‘(i) except as provided in clause (ii) 

19 or (iii), meets or exceeds the latest applica20 ble requirements of the Energy Star pro21 gram (or any successor program, as deter22 mined by the Secretary), as in effect on 

23 January 1 of the year in which the prop24 erty is placed in service, 


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1 ‘‘(ii) in the case of a window treat2 ment, meets or exceeds the applicable cer3 tification requirements for such product 

4 under the Attachments Energy Rating 

5 Council certification program, or 

6 ‘‘(iii) in the case of insulation de7 scribed in subsection (d)(2)(A), meets the 

8 prescriptive criteria for such material or 

9 system established by the International 

10 Energy Conservation Code, as such Code 

11 (including supplements) is in effect on 

12 January 1 of the calendar year in which 

13 such material or system is installed, 

14 ‘‘(C) is installed according to applicable 

15 Air Conditioning Contractors of America Qual16 ity Installation standards which are in effect at 

17 the time that the property was placed in serv18 ice, 

19 ‘‘(D) is for use in a dwelling unit which is 

20 located in the United States and used as a resi21 dence by the individual, and 

22 ‘‘(E) is reasonably expected to remain in 

23 service in such dwelling unit for not less than 

24 5 years. 


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1 ‘‘(2) SPECIAL RULES FOR CERTAIN HEAT

2 PUMPS.— 

3 ‘‘(A) AIR-SOURCE HEAT PUMPS.—In the 

4 case of any air-source heat pump which satisfies 

5 the requirements under paragraph (1), sub6 section (b)(1)(B) shall be applied by sub7 stituting ‘$800’ for ‘$600’. 

8 ‘‘(B) GROUND SOURCE HEAT PUMP.— 

9 ‘‘(i) IN GENERAL.—In the case of any 

10 qualified geothermal heat pump property 

11 which satisfies the requirements under 

12 subparagraphs (C) through (E) of para13 graph (1)— 

14 ‘‘(I) subsection (b)(1)(B) shall be 

15 applied by substituting ‘$10,000’ for 

16 ‘$600’, and 

17 ‘‘(II) subsection (a)(2) shall be 

18 applied without regard to the applica19 ble qualified property amount for such 

20 property. 

21 ‘‘(ii) QUALIFIED GEOTHERMAL HEAT

22 PUMP PROPERTY.—For purposes of this 

23 subparagraph, the term ‘qualified geo24 thermal heat pump property’ means any 

25 equipment which— 


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1 ‘‘(I) uses the ground or ground 

2 water as a thermal energy source to 

3 heat a dwelling unit located in the 

4 United States and used as a residence 

5 by the taxpayer or as a thermal en6 ergy sink to cool such dwelling unit, 

7 and 

8 ‘‘(II) meets the requirements of 

9 the Energy Star program which are in 

10 effect as of January 1 of the calendar 

11 year in which the expenditure for such 

12 equipment is made. 

13 ‘‘(3) SPECIAL RULE FOR INSULATION.—In the 

14 case of any building envelope improvement described 

15 in subsection (d)(2)(A) which satisfies the applicable 

16 requirements under paragraph (1), subsection (b)(1) 

17 shall be applied without regard to ‘the lesser of’ and 

18 without regard to subparagraph (B). 

19 ‘‘(d) OTHER DEFINITIONS.— 

20 ‘‘(1) BIOMASS PROPERTY.— 

21 ‘‘(A) IN GENERAL.—For purposes of this 

22 section, the term ‘biomass property’ means any 

23 property which— 


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1 ‘‘(i) uses the burning of biomass fuel 

2 to heat a dwelling unit or to heat water for 

3 use in a dwelling unit, and 

4 ‘‘(ii) using the higher heating value, 

5 has a thermal efficiency of not less than 75 

6 percent. 

7 ‘‘(B) BIOMASS FUEL.—For purposes of 

8 subparagraph (A), the term ‘biomass fuel’ 

9 means any plant-derived fuel which is available 

10 on a renewable or recurring basis, including any 

11 such fuel which has been subject to a 

12 densification process (such as wood pellets). 

13 ‘‘(2) BUILDING ENVELOPE IMPROVEMENT.— 

14 For purposes of this section, the term ‘building en15 velope improvement’ means— 

16 ‘‘(A) any insulation material or system, in17 cluding air barrier insulation, which is specifi18 cally and primarily designed to reduce the heat 

19 loss or gain of a dwelling unit when installed in 

20 or on such dwelling unit, and 

21 ‘‘(B) exterior doors and windows (including 

22 skylights). 

23 ‘‘(3) MANUFACTURED HOMES INCLUDED.—For 

24 purposes of this section, the term ‘dwelling unit’ in25 cludes a manufactured home which conforms to FedVerDate Sep 11 2014 00:26 Jun 22, 2021 Jkt 019200 PO 00000 Frm 00178 Fmt 6652 Sfmt 6201 E:\BILLS\S2118.PCS S2118

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1 eral Manufactured Home Construction and Safety 

2 Standards (part 3280 of title 24, Code of Federal 

3 Regulations). 

4 ‘‘(e) DENIAL OF DOUBLE BENEFIT.—No credit shall 

5 be allowed under subsection (a) for any amounts paid or 

6 incurred for which a deduction or credit is allowed under 

7 any other provision of this chapter.’’. 

8 (b) CLERICAL AMENDMENT.—The table of sections 

9 for subpart A of part IV of subchapter A of chapter 1 

10 is amended by striking the item relating to section 25C 

11 and inserting after the item relating to section 25B the 

12 following item: 

‘‘25C. Energy efficient home improvement credit.’’. 

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

14 this section shall apply to qualified property placed in 

15 service after December 31, 2021. 

16 SEC. 303. ENHANCEMENT OF ENERGY EFFICIENT COMMER17 CIAL BUILDINGS DEDUCTION. 

18 (a) MAXIMUM AMOUNT OF DEDUCTION.— 

19 (1) IN GENERAL.—Section 179D is amended— 

20 (A) by striking subsection (b) and insert21 ing the following: 

22 ‘‘(b) MAXIMUM AMOUNT OF DEDUCTION.— 

23 ‘‘(1) IN GENERAL.—The deduction under sub24 section (a) with respect to any building for any tax25 able year shall not exceed the excess (if any) of— 


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1 ‘‘(A) the product of— 

2 ‘‘(i) the applicable dollar value, and 

3 ‘‘(ii) the square footage of the build4 ing, over 

5 ‘‘(B) the aggregate amount of the deduc6 tions under subsection (a) with respect to the 

7 building for the 3 years immediately preceding 

8 such taxable year. 

9 ‘‘(2) APPLICABLE DOLLAR VALUE.—For pur10 poses of paragraph (1)(A)(i), the applicable dollar 

11 value shall be an amount equal to $2.50 increased 

12 (but not above $5.00) by $0.10 for each percentage 

13 point by which the total annual energy and power 

14 costs for the building are certified to be reduced by 

15 a percentage greater than 25 percent.’’, and 

16 (B) in subsection (d)(1)(A)— 

17 (i) by striking ‘‘subsection (b)’’ and 

18 inserting ‘‘subsection (b)(2)’’, and 

19 (ii) by striking ‘‘$1.80’’ and inserting 

20 ‘‘$2.50’’. 

21 (2) INFLATION ADJUSTMENT.—Section 

22 179D(g) is amended to read as follows: 

23 ‘‘(g) INFLATION ADJUSTMENT.— 

24 ‘‘(1) IN GENERAL.—In the case of a taxable 

25 year beginning after 2022, each dollar amount in 


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1 subsection (b)(2) (and the $2.50 amount in sub2 section (d)(1)(A)) shall be increased by an amount 

3 equal to— 

4 ‘‘(A) such dollar amount, multiplied by 

5 ‘‘(B) the cost-of-living adjustment deter6 mined under section 1(f)(3) for the calendar 

7 year in which the taxable year begins, deter8 mined by substituting ‘calendar year 2021’ for 

9 ‘calendar year 2016’ in subparagraph (A)(ii) 

10 thereof. 

11 Any increase determined under the preceding sen12 tence which is not a multiple of 10 cents shall be 

13 rounded to the nearest multiple of 10 cents. 

14 ‘‘(2) PARTIAL ALLOWANCE.—In the case of a 

15 taxable year beginning after 2020, the $.60 amount 

16 in (d)(1)(A) shall be increased by an amount equal 

17 to— 

18 ‘‘(A) such dollar amount, multiplied by 

19 ‘‘(B) the cost-of-living adjustment deter20 mined under section 1(f)(3) for the calendar 

21 year in which the taxable year begins, deter22 mined by substituting ‘calendar year 2019’ for 

23 ‘calendar year 2016’ in subparagraph (A)(ii) 

24 thereof. 


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1 Any increase determined under the preceding sen2 tence which is not a multiple of 1 cent shall be 

3 rounded to the nearest cent.’’. 

4 (b) DEFINITION OF ENERGY EFFICIENT BUILDING

5 PROPERTY.— 

6 (1) ENERGY REDUCTION STANDARD.—Section 

7 179D(c)(1)(D) is amended by striking ‘‘50 percent’’ 

8 and inserting ‘‘25 percent’’. 

9 (2) INCLUSION OF MULTIFAMILY BUILDINGS.— 

10 (A) IN GENERAL.—Subparagraph (B) of 

11 section 179D(c)(1) is amended to read as fol12 lows: 

13 ‘‘(B) which is installed on or in any com14 mercial building or multifamily building which 

15 is located within the United States,’’. 

16 (B) APPLICATION OF STANDARDS.—Sub17 paragraph (D) of section 179D(c) is amended— 

18 (i) by striking ‘‘meets the minimum 

19 requirements of Reference Standard 90.1 

20 using methods of calculation under sub21 section (d)(2)’’ and inserting ‘‘meets— 

22 ‘‘(i) in the case of any property within 

23 the scope of Reference Standard 90.1, the 

24 minimum requirements of Reference 


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1 Standard 90.1 using methods of calcula2 tion under subsection (d)(2), and 

3 ‘‘(ii) in the case of any other property, 

4 the minimum requirements of a com5 parable standard to Reference Standard 

6 90.1 which shall be determined by the Sec7 retary and the Secretary of Energy using 

8 methods of calculation under subsection 

9 (d)(2).’’. 

10 (C) DEFINITIONS.—Subsection (c) of sec11 tion 179D is amended by adding at the end the 

12 following new paragraphs: 

13 ‘‘(3) COMMERCIAL BUILDING.—The term ‘com14 mercial building’ means a building with a primary 

15 use or purpose other than as residential housing. 

16 ‘‘(4) MULTIFAMILY BUILDING.—The term ‘mul17 tifamily building’ means a structure of 5 or more 

18 dwelling units with a primary use as residential 

19 housing, and includes such buildings owned and op20 erated as a condominium, cooperative, or other com21 mon interest community.’’. 

22 (3) WAGE AND WORKFORCE REQUIREMENTS.— 

23 (A) IN GENERAL.—Section 179D(c)(1), as 

24 amended by paragraph (2), is amended— 


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1 (i) in subparagraph (C)(iii), by strik2 ing ‘‘and’’ at the end, 

3 (ii) in subparagraph (D), by striking 

4 the period at the end and inserting ‘‘, 

5 and’’, and 

6 (iii) by adding at the end the fol7 lowing: 

8 ‘‘(E) which satisfies the requirements— 

9 ‘‘(i) subject to subparagraph (B) of 

10 subsection (d)(7), under subparagraph (A) 

11 of such subsection, and 

12 ‘‘(ii) with respect to the construction 

13 of such property, the requirements under 

14 section 501 of the Clean Energy for Amer15 ica Act.’’. 

16 (B) REQUIREMENTS.—Section 179(d) is 

17 amended by adding at the end the following 

18 new paragraph: 

19 ‘‘(7) WAGE REQUIREMENTS.— 

20 ‘‘(A) IN GENERAL.—The requirements de21 scribed in this subparagraph with respect to 

22 any property are that the taxpayer shall ensure 

23 that any laborers and mechanics employed by 

24 contractors and subcontractors in the construc25 tion of such property shall be paid wages at 


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1 rates not less than the prevailing rates for con2 struction of a similar character in the locality 

3 as determined by the Secretary of Labor, in ac4 cordance with subchapter IV of chapter 31 of 

5 title 40, United States Code. 

6 ‘‘(B) CORRECTION AND PENALTY RELATED

7 TO FAILURE TO SATISFY WAGE REQUIRE8 MENTS.—In the case of any taxpayer which 

9 fails to satisfy the requirement under subpara10 graph (A) with respect to any property, rules 

11 similar to the rules of section 45U(b)(3)(B)(ii) 

12 shall apply for purposes of this paragraph.’’. 

13 (4) ELECTION TO USE DIFFERENT STANDARDS

14 FOR RETROFITS.—Section 179D is amended by re15 designating subsection (h) as subsection (i) and by 

16 inserting after subsection (g) the following new sub17 section: 

18 ‘‘(h) ALTERNATIVE METHOD FOR ENERGY EFFI19 CIENT RETROFIT BUILDING PROPERTY.— 

20 ‘‘(1) IN GENERAL.—In the case of a taxpayer 

21 which elects (at such time and in such manner as 

22 the Secretary may provide) the application of this 

23 subsection with respect to any qualified building, the 

24 amount of the deduction allowed under subsection 

25 (a)— 


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1 ‘‘(A) shall be determined— 

2 ‘‘(i) by substituting ‘energy usage in3 tensity’ for ‘total annual energy and power 

4 costs’ in subsection (b)(2), and 

5 ‘‘(ii) without regard to subsection 

6 (c)(1)(D), and 

7 ‘‘(B) shall be allowed for the taxable year 

8 which includes the date of the qualifying final 

9 certification with respect to the qualified ret10 rofit plan of such building in lieu of the taxable 

11 year in which the property is placed in service. 

12 ‘‘(2) QUALIFIED BUILDING.—For purposes of 

13 this subsection, the term ‘qualified building’ means 

14 a commercial building or multifamily building— 

15 ‘‘(A) which is located in the United States, 

16 ‘‘(B) with respect to which a qualified ret17 rofit plan has been established, and 

18 ‘‘(C) which was originally placed in service 

19 not less than 5 years before the establishment 

20 of the qualified retrofit plan with respect to 

21 such building. 

22 ‘‘(3) QUALIFIED RETROFIT PLAN.—For pur23 poses of this subsection, the term ‘qualified retrofit 

24 plan’ means a written plan prepared by a qualified 

25 professional which specifies specific modifications to 


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1 a building which, in the aggregate, are expected to 

2 reduce such building’s energy usage intensity by 25 

3 percent or more in comparison to the baseline en4 ergy usage intensity of such building. Such plan 

5 shall provide for a qualified professional to— 

6 ‘‘(A) as of any date during the 1-year pe7 riod ending on the date of the first certification 

8 described in subparagraph (B), certify the en9 ergy usage intensity of such building as of such 

10 date, 

11 ‘‘(B) certify the status of property installed 

12 pursuant to such plan as meeting the require13 ments of subparagraphs (B) and (C) of sub14 section (c)(1), and 

15 ‘‘(C) as of any date following completion of 

16 the plan, certify— 

17 ‘‘(i) the energy usage intensity of such 

18 building as of such date, and 

19 ‘‘(ii) the portfolio manager score of 

20 such building as of such date. 

21 ‘‘(4) QUALIFYING FINAL CERTIFICATION.—For 

22 purposes of this subsection, the term ‘qualifying 

23 final certification’ means, with respect to any quali24 fied retrofit plan, the certification described in para25 graph (3)(C) if— 


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1 ‘‘(A) the energy usage intensity certified in 

2 such certification is not more than 75 percent 

3 of the baseline energy usage intensity of the 

4 building, and 

5 ‘‘(B) the portfolio manager score certified 

6 in such certification is not less than 50. 

7 ‘‘(5) OTHER DEFINITIONS.—For purposes of 

8 this subsection— 

9 ‘‘(A) BASELINE ENERGY USAGE INTEN10 SITY.—The term ‘baseline energy usage inten11 sity’ means the energy usage intensity certified 

12 under paragraph (3)(A). 

13 ‘‘(B) PORTFOLIO MANAGER SCORE.—The 

14 term ‘portfolio manager score’ means the score 

15 determined under the methodology (as in effect 

16 on the date of the enactment of this Act) devel17 oped by the Administrator of the Environ18 mental Protection Agency for rating a build19 ing’s energy efficiency for purposes of the En20 ergy Star program. Modifications after the date 

21 of the enactment of this paragraph to such 

22 methodology shall be taken into account under 

23 this paragraph as provided by the Secretary 

24 and such Administrator. 


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1 ‘‘(C) ENERGY USAGE INTENSITY.—The 

2 term ‘energy usage intensity’ means energy 

3 usage intensity determined in accordance with 

4 such regulations or other guidance as the Sec5 retary may provide and measured in British 

6 thermal units. 

7 ‘‘(D) QUALIFIED PROFESSIONAL.—The 

8 term ‘qualified professional’ means an indi9 vidual who is a licenced architect or a licenced 

10 engineer and meets such other requirements as 

11 the Secretary may provide. 

12 ‘‘(6) CERTAIN RULES NOT APPLICABLE.—Para13 graphs (1), (5), and (6)(B) of subsection (d) shall 

14 not apply for purposes of this subsection.’’. 

15 (c) OTHER RULES.— 

16 (1) ALLOCATION OF DEDUCTION.—Section 

17 179D(d)(4) is amended to read as follows: 

18 ‘‘(4) ALLOCATION OF DEDUCTION.— 

19 ‘‘(A) IN GENERAL.—In the case of energy 

20 efficient commercial building property installed 

21 on or in property owned by an eligible entity, 

22 the Secretary shall promulgate regulations to 

23 allow the allocation of the deduction to the per24 son primarily responsible for designing the 

25 property in lieu of the owner of such property, 


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1 with such person to be treated as the taxpayer 

2 for purposes of this section. 

3 ‘‘(B) ELIGIBLE ENTITY.—For purposes of 

4 this paragraph, the term ‘eligible entity’ 

5 means— 

6 ‘‘(i) a Federal, State, or local govern7 ment or a political subdivision thereof, 

8 ‘‘(ii) an Indian tribe (as defined in 

9 section 45A(c)(6)), or 

10 ‘‘(iii) an organization described in sec11 tion 501(c) and exempt from tax under 

12 section 501(a).’’. 

13 (2) ELIMINATION OF INTERIM RULE FOR

14 LIGHTING SYSTEMS.—Section 179D, as amended by 

15 subsections (a)(2) and (b)(4), is amended by striking 

16 subsection (f) and by redesignating subsections (g), 

17 (h), and (i) as subsections (f), (g), and (h), respec18 tively. 

19 (3) APPLICATION TO REAL ESTATE INVEST20 MENT TRUST EARNINGS AND PROFITS.—Section 

21 312(k)(3)(B) is amended— 

22 (A) by striking ‘‘For purposes of com23 puting the earnings and profits of a corpora24 tion’’ and inserting the following: 


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1 ‘‘(I) IN GENERAL.—For purposes 

2 of computing the earnings and profits 

3 of a corporation, except as provided in 

4 clause (ii)’’, and 

5 (B) by adding at the end the following new 

6 clause: 

7 ‘‘(II) SPECIAL RULE.—In the 

8 case of a corporation that is a real es9 tate investment trust, any amount de10 ductible under section 179D shall be 

11 allowed in the year in which the prop12 erty giving rise to such deduction is 

13 placed in service.’’. 

14 (d) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to any property placed in service 

16 after December 31, 2021. 

17 SEC. 304. ENHANCEMENT OF ENERGY CREDIT FOR GEO18 THERMAL HEAT PUMPS. 

19 (a) IN GENERAL.—Section 48(a) is amended— 

20 (1) in paragraph (2)(A)(i)(III), by striking 

21 ‘‘paragraph (3)(A)(ii)’’ and inserting ‘‘clause (ii) or 

22 (vii) of paragraph (3)(A)’’, and 

23 (2) in paragraph (3)(A)(vii), by striking ‘‘but 

24 only with respect to property the construction of 

25 which begins before January 1, 2024,’’. 


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

2 this section shall apply to property the construction of 

3 which begins after December 31, 2021. 

4 TITLE IV—TERMINATION OF 

5 CERTAIN FOSSIL FUEL PRO6 VISIONS 

7 SEC. 401. TERMINATION OF PROVISIONS RELATING TO OIL, 

8 GAS, AND OTHER MATERIALS. 

9 (a) AMORTIZATION OF GEOLOGICAL AND GEO10 PHYSICAL EXPENDITURES.—Section 167(h) is amended 

11 by adding at the end the following new paragraph: 

12 ‘‘(6) TERMINATION.—This subsection shall not 

13 apply to any expenses paid or incurred during any 

14 taxable year beginning after the date of the enact15 ment of the Clean Energy for America Act.’’. 

16 (b) ALASKA NATURAL GAS PIPELINES.—Subpara17 graph (B) of section 168(i)(16) is amended to read as fol18 lows: 

19 ‘‘(B) is— 

20 ‘‘(i)(I) placed in service after Decem21 ber 31, 2013, or 

22 ‘‘(II) treated as placed in service on 

23 January 1, 2014, if the taxpayer who 

24 places such system in service before Janu25 ary 1, 2014, elects such treatment, and 


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1 ‘‘(ii) placed in service before the end 

2 of the calendar year in which the date of 

3 the enactment of the Clean Energy for 

4 America Act occurs.’’. 

5 (c) NATURAL GAS GATHERING LINE.—Paragraph 

6 (17) of section 168(i) is amended— 

7 (1) in subparagraph (A), by inserting ‘‘which 

8 are placed in service before the end of the calendar 

9 year in which the date of the enactment of the Clean 

10 Energy for America Act occurs and are’’ after ‘‘pipe, 

11 equipment, and appurtenances’’, and 

12 (2) in subparagraph (B), by inserting ‘‘which 

13 are placed in service before the end of the calendar 

14 year in which the date of the enactment of the Clean 

15 Energy for America Act occurs and are’’ after ‘‘pipe, 

16 equipment, and appurtenances’’. 

17 (d) REPEAL OF DEDUCTION FOR TERTIARY

18 INJECTANTS.—Subsection (c) of section 193 is amend19 ed— 

20 (1) in paragraph (1), by striking ‘‘or’’ at the 

21 end, 

22 (2) in paragraph (2), by striking the period at 

23 the end and inserting ‘‘, or’’, and 

24 (3) by inserting at the end the following: 


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1 ‘‘(3) which is paid or incurred during any tax2 able year beginning after the date of the enactment 

3 of the Clean Energy for America Act.’’. 

4 (e) INTANGIBLE DRILLING AND DEVELOPMENT

5 COSTS.— 

6 (1) IN GENERAL.—Subsection (c) of section 

7 263 is amended to read as follows: 

8 ‘‘(c) INTANGIBLE DRILLING AND DEVELOPMENT

9 COSTS IN THE CASE OF OIL AND GAS WELLS AND GEO10 THERMAL WELLS.— 

11 ‘‘(1) IN GENERAL.—Notwithstanding subsection 

12 (a), and except as provided in subsection (i), regula13 tions shall be prescribed by the Secretary under this 

14 subtitle corresponding to the regulations which 

15 granted the option to deduct as expenses intangible 

16 drilling and development costs in the case of oil and 

17 gas wells and which were recognized and approved 

18 by the Congress in House Concurrent Resolution 50, 

19 Seventy-ninth Congress. Such regulations shall also 

20 grant the option to deduct as expenses intangible 

21 drilling and development costs in the case of wells 

22 drilled for any geothermal deposit (as defined in sec23 tion 613(e)(2)) to the same extent and in the same 

24 manner as such expenses are deductible in the case 

25 of oil and gas wells. This subsection shall not apply 


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1 with respect to any costs to which any deduction is 

2 allowed under section 59(e) or 291. 

3 ‘‘(2) EXCLUSION.— 

4 ‘‘(A) IN GENERAL.—This subsection shall 

5 not apply to amounts paid or incurred by a tax6 payer with regard to any oil or gas well in any 

7 taxable year beginning after the date of the en8 actment of the Clean Energy for America Act. 

9 ‘‘(B) AMORTIZATION OF EXCLUDED

10 AMOUNTS.—The amount not allowable as a de11 duction for any taxable year by reason of sub12 paragraph (A) shall be allowable as a deduction 

13 ratably over the 60-month period beginning 

14 with the month in which the costs are paid or 

15 incurred. For purposes of section 1254, any de16 duction under this subparagraph shall be treat17 ed as a deduction under this subsection.’’. 

18 (2) CONFORMING AMENDMENTS.— 

19 (A) Section 291(b) is amended— 

20 (i) in paragraph (1), by striking 

21 ‘‘without regard to this section)’’ and all 

22 that follows and inserting ‘‘without regard 

23 to this section) under section 616(a) or 

24 617(a) shall be reduced by 30 percent.’’, 


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1 (ii) in paragraph (2), by striking ‘‘sec2 tion 263(c), 616(a), or 617(a)’’ and insert3 ing ‘‘section 616(a) or 617(a)’’, 

4 (iii) by striking paragraph (4), and 

5 (iv) by redesignating paragraph (5) as 

6 paragraph (4). 

7 (B) Section 57(a) is amended by striking 

8 paragraph (2). 

9 (f) PERCENTAGE DEPLETION.— 

10 (1) PERCENTAGE DEPLETION OF OIL AND GAS

11 WELLS, COAL, LIGNITE, AND OIL SHALE.— 

12 (A) IN GENERAL.—Section 613 is amend13 ed— 

14 (i) in subsection (a), by striking ‘‘(100 

15 percent in the case of oil and gas prop16 erties)’’, 

17 (ii) in subsection (b)— 

18 (I) by striking paragraph (2) and 

19 inserting the following: 

20 ‘‘(2) 15 PERCENT.—If from deposits in the 

21 United States, gold, silver, copper, and iron ore.’’, 

22 (II) in paragraph (4), by striking 

23 ‘‘coal, lignite,’’, 


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1 (III) in paragraph (5), by insert2 ing ‘‘(except oil shale)’’ after ‘‘clay 

3 and shale’’, 

4 (IV) in paragraph (6)(A), by 

5 striking ‘‘(except shale described in 

6 paragraph (2)(B) or (5))’’ and insert7 ing ‘‘(except oil shale and shale de8 scribed in paragraph (5))’’, and 

9 (V) in paragraph (7), by striking 

10 ‘‘or’’ at the end of subparagraph (B), 

11 by striking the period at the end of 

12 subparagraph (C) and inserting ‘‘; 

13 or’’, and by adding at the end the fol14 lowing new subparagraph: 

15 ‘‘(D) coal, lignite, and oil shale.’’, 

16 (iii) in subsection (c)(1), striking 

17 ‘‘other than an oil or gas well and’’, 

18 (iv) in subsection (c)(4)— 

19 (I) by striking subparagraphs (A) 

20 and (H), 

21 (II) by inserting ‘‘and’’ at the 

22 end of subparagraph (G), 

23 (III) by redesignating subpara24 graphs (B) through (G) as subparaVerDate Sep 11 2014 00:26 Jun 22, 2021 Jkt 019200 PO 00000 Frm 00197 Fmt 6652 Sfmt 6201 E:\BILLS\S2118.PCS S2118

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1 graphs (A) through (F), respectively, 

2 and 

3 (IV) by redesignating subpara4 graph (I) as subparagraph (G), 

5 (v) in subsection (d), by striking ‘‘Ex6 cept as provided in section 613A, in the 

7 case of’’ and inserting ‘‘In the case of’’, 

8 and 

9 (vi) in subsection (e)(2), by striking 

10 ‘‘or section 613A’’. 

11 (B) CONFORMING AMENDMENTS.— 

12 (i) Section 291(a)(2) is amended by 

13 striking ‘‘and coal (including lignite)’’. 

14 (ii)(I) Part I of subchapter I of chap15 ter 1 is amended by striking section 613A 

16 (and the item relating to such section in 

17 the table of sections). 

18 (II) Section 45H(d) is amended by 

19 striking ‘‘section 613A(d)(3)’’ and insert20 ing ‘‘section 167(h)(5)(C)’’. 

21 (III) Section 57(a)(1) is amended by 

22 striking the last sentence. 

23 (IV) Section 167(h)(5) is amended— 

24 (aa) by striking subparagraph 

25 (B)(iii) and inserting the following: 


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1 ‘‘(iii) which— 

2 ‘‘(I) engages (by itself or with a 

3 related person) in the refining of 

4 crude oil, and 

5 ‘‘(II) together with related per6 sons, has average daily refinery runs 

7 for the taxable year (determined by 

8 dividing the aggregate refinery runs 

9 for the taxable year by the number of 

10 days in the taxable year) in excess of 

11 75,000 barrels.’’, and 

12 (bb) by adding at the end the fol13 lowing new subparagraph: 

14 ‘‘(C) RELATED PERSON.—For purposes of 

15 subparagraph (B)(iii), a person is a related per16 son with respect to the taxpayer if a significant 

17 ownership interest in either the taxpayer or 

18 such person is held by the other, or if a third 

19 person has a significant ownership interest in 

20 both the taxpayer and such person. For pur21 poses of the preceding sentence, the term ‘sig22 nificant ownership interest’ means— 

23 ‘‘(i) with respect to any corporation, 

24 15 percent or more in value of the out25 standing stock of such corporation, 


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1 ‘‘(ii) with respect to a partnership, 15 

2 percent or more interest in the profits or 

3 capital of such partnership, and 

4 ‘‘(iii) with respect to an estate or 

5 trust, 15 percent or more of the beneficial 

6 interests in such estate or trust. 

7 For purposes of determining a significant own8 ership interest, an interest owned by or for a 

9 corporation, partnership, trust, or estate shall 

10 be considered as owned directly both by itself 

11 and proportionately by its shareholders, part12 ners, or beneficiaries, as the case may be.’’. 

13 (V) Section 703(a)(2) is amended by 

14 inserting ‘‘and’’ at the end of subpara15 graph (D), by striking ‘‘, and’’ at the end 

16 of subparagraph (E) and inserting a pe17 riod, and by striking subparagraph (F). 

18 (VI) Section 705(a) is amended by in19 serting ‘‘and’’ at the end of paragraph 

20 (1)(C), by striking ‘‘; and’’ at the end of 

21 paragraph (2)(B) and inserting a period, 

22 and by striking paragraph (3). 

23 (VII) Section 1202(e)(3)(D) is 

24 amended by striking ‘‘or 613A’’. 


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1 (VIII) Section 1367(a)(2) is amended 

2 by inserting ‘‘and’’ at the end of subpara3 graph (C), by striking ‘‘, and’’ at the end 

4 of subparagraph (D) and inserting a pe5 riod, and by striking subparagraph (E). 

6 (iii) Section 993(c)(2)(C) is amended 

7 by striking ‘‘(including oil, gas, coal, or 

8 uranium products) under section 613 or 

9 613A’’ and inserting ‘‘(including uranium 

10 products) under section 613’’. 

11 (iv) Section 1446(c)(2) is amended by 

12 striking ‘‘but the amount of such deduction 

13 shall be determined without regard to sec14 tions 613 and 613A’’. 

15 (2) EFFECTIVE DATE.—The amendments made 

16 by this subsection shall apply to taxable years begin17 ning after the date of the enactment of this Act. 

18 (g) TERMINATION OF CAPITAL GAINS TREATMENT

19 FOR ROYALTIES FROM COAL.— 

20 (1) IN GENERAL.—Subsection (c) of section 

21 631 is amended— 

22 (A) by striking ‘‘coal (including lignite), or 

23 iron ore’’ and inserting ‘‘iron ore’’, 

24 (B) by striking ‘‘coal or iron ore’’ each 

25 place it appears and inserting ‘‘iron ore’’, 


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1 (C) by striking ‘‘iron ore or coal’’ each 

2 place it appears and inserting ‘‘iron ore’’, and 

3 (D) by striking ‘‘COAL OR’’ in the heading. 

4 (2) CONFORMING AMENDMENTS.— 

5 (A) Section 272 is amended by striking 

6 ‘‘coal or’’ each place it appears. 

7 (B) Section 1402(a)(3)(B) is amended by 

8 striking ‘‘coal,’’. 

9 (C)(i) The heading of section 631 is 

10 amended by striking ‘‘, COAL,’’. 

11 (ii) The item relating to section 631 in the 

12 table of sections for part III of subchapter I of 

13 chapter 1 is amended by striking ‘‘, coal,’’. 

14 (3) EFFECTIVE DATE.—The amendments made 

15 by this subsection shall apply to dispositions after 

16 the date of the enactment of this Act. 

17 (h) ENHANCED OIL RECOVERY CREDIT.— 

18 (1) IN GENERAL.—Subpart D of part IV of 

19 subchapter A of chapter 1 is amended by striking 

20 section 43. 

21 (2) CONFORMING AMENDMENTS.— 

22 (A) Section 38(b) is amended by striking 

23 paragraph (6). 

24 (B)(i) Section 45Q(e) is amended by add25 ing at the end the following new paragraph: 


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1 ‘‘(4) INFLATION ADJUSTMENT FACTOR.—The 

2 term ‘inflation adjustment factor’ means, with re3 spect to any calendar year, a fraction the numerator 

4 of which is the GNP implicit price deflator for the 

5 preceding calendar year and the denominator of 

6 which is the GNP implicit price deflator for 2008. 

7 For purposes of the preceding sentence, the term 

8 ‘GNP implicit price deflator’ means the first revision 

9 of the implicit price deflator for the gross national 

10 product as computed and published by the Secretary 

11 of Commerce. Not later than April 1 of any calendar 

12 year, the Secretary shall publish the inflation adjust13 ment factor for the preceding calendar year.’’. 

14 (ii) Section 45Q, as amended by this 

15 Act, is amended in subsection (b)(1) by 

16 striking ‘‘determined under section 

17 43(b)(3)(B) for such calendar year, deter18 mined by substituting ‘2025’ for ‘1990’ ’’ 

19 each place it appears in subparagraph 

20 (A)(ii) and (B)(ii) and inserting ‘‘deter21 mined under subsection (e)(4) by sub22 stituting ‘2025’ for ‘2008’ ’’. 

23 (C) Section 196(c) is amended— 

24 (i) by striking paragraph (5), and 


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1 (ii) by redesignating paragraphs (6) 

2 through (14) as paragraphs (5) through 

3 (13), respectively. 

4 (3) CLERICAL AMENDMENT.—The table of sec5 tions for subpart D of part IV of subchapter A of 

6 chapter 1 is amended by striking the item relating 

7 to section 43. 

8 (4) EFFECTIVE DATE.—The amendments made 

9 by this subsection shall apply to taxable years begin10 ning after the date of the enactment of this Act. 

11 (i) CREDIT FOR PRODUCING OIL AND GAS FROM

12 MARGINAL WELLS.— 

13 (1) IN GENERAL.—Subpart D of part IV of 

14 subchapter A of chapter 1 is amended by striking 

15 section 45I. 

16 (2) CONFORMING AMENDMENT.—Section 38(b) 

17 is amended by striking paragraph (19). 

18 (3) CLERICAL AMENDMENT.—The table of sec19 tions for subpart D of part IV of subchapter A of 

20 chapter 1 is amended by striking the item relating 

21 to section 45I. 

22 (4) EFFECTIVE DATE.—The amendments made 

23 by this subsection shall apply to taxable years begin24 ning after the date of the enactment of this Act. 


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1 (j) QUALIFYING ADVANCED COAL PROJECT CRED2 IT.— 

3 (1) IN GENERAL.—Subpart E of part IV of 

4 subchapter A of chapter 1 is amended by striking 

5 section 48A. 

6 (2) CONFORMING AMENDMENTS.— 

7 (A) Section 46, as amended by section 102 

8 of this Act, is amended by striking paragraph 

9 (3) and redesignating paragraphs (4) through 

10 (7) as paragraphs (3) through (6), respectively. 

11 (B) Section 49(a)(1)(C), as amended by 

12 section 102 of this Act, is amended by striking 

13 clause (iii) and redesignating clauses (iv) 

14 through (vii) as clauses (iii) through (vi), re15 spectively. 

16 (C) Section 50(a)(2)(E), as amended by 

17 section 102 of this Act, is amended by striking 

18 ‘‘48A(b)(3),’’. 

19 (3) CLERICAL AMENDMENT.—The table of sec20 tions for subpart E of part IV of subchapter A of 

21 chapter 1 is amended by striking the item relating 

22 to section 48A. 

23 (4) EFFECTIVE DATE.—The amendments made 

24 by this subsection shall apply to taxable years begin25 ning after the date of the enactment of this Act. 


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1 (k) QUALIFYING GASIFICATION PROJECT CREDIT.— 

2 (1) IN GENERAL.—Subpart E of part IV of 

3 subchapter A of chapter 1 is amended by striking 

4 section 48B. 

5 (2) CONFORMING AMENDMENTS.— 

6 (A) Section 46, as amended by this Act, is 

7 amended by striking paragraph (3) and by re8 designating paragraphs (4), (5), and (6) as 

9 paragraphs (3), (4), and (5), respectively. 

10 (B) Section 49(a)(1)(C), as amended by 

11 this Act, is amended by striking clause (iii) and 

12 redesignating clauses (iv) through (vi) as 

13 clauses (iii) through (v). 

14 (C) Section 50(a)(2)(E), as amended by 

15 this Act, is amended by striking ‘‘48B(b)(3),’’. 

16 (3) CLERICAL AMENDMENT.—The table of sec17 tions for subpart E of part IV of subchapter A of 

18 chapter 1 is amended by striking the item relating 

19 to section 48B. 

20 (4) EFFECTIVE DATE.—The amendments made 

21 by this subsection shall apply to taxable years begin22 ning after the date of the enactment of this Act. 

23 (l) REPEAL OF PASSIVE LOSS EXCEPTION FOR OIL

24 AND GAS INTERESTS.— 


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1 (1) IN GENERAL.—Section 469(c)(3)(A) is 

2 amended— 

3 (A) by striking ‘‘The term’’ and inserting 

4 the following: 

5 ‘‘(i) EXCEPTION.—The term’’. 

6 (B) by adding at the end the following new 

7 clause: 

8 ‘‘(ii) TERMINATION.—Clause (i) shall 

9 not apply to any taxable year beginning 

10 after the date of the enactment of the 

11 Clean Energy for America Act.’’. 

12 (2) CONFORMING AMENDMENT.—Section 

13 469(c)(4) is amended by striking ‘‘Paragraphs (2) 

14 and (3)’’ and inserting ‘‘Paragraphs (2) and 

15 (3)(A)(i)’’. 

16 (m) REPEAL OF CORPORATE INCOME TAX EXEMP17 TION FOR PUBLICLY TRADED PARTNERSHIPS WITH

18 QUALIFYING INCOME AND GAINS FROM ACTIVITIES RE19 LATING TO FOSSIL FUELS.— 

20 (1) IN GENERAL.—Section 7704(d)(1) is 

21 amended— 

22 (A) in subparagraph (E), by striking ‘‘(in23 cluding pipelines transporting gas, oil, or prod24 ucts thereof)’’, and 


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1 (B) in the flush matter at the end, by in2 serting ‘‘or any coal, gas, oil, or products there3 of’’ before the period. 

4 (2) EFFECTIVE DATE.—The amendments made 

5 by this subsection shall apply to taxable years begin6 ning after the date of the enactment of this Act. 

7 SEC. 402. MODIFICATION OF CERTAIN PROVISIONS RELAT8 ING TO OIL, GAS, AND OTHER FOSSIL FUELS. 

9 (a) MODIFICATIONS OF FOREIGN TAX CREDIT

10 RULES APPLICABLE TO MAJOR INTEGRATED OIL COMPA11 NIES WHICH ARE DUAL CAPACITY TAXPAYERS.— 

12 (1) IN GENERAL.—Section 901 is amended by 

13 redesignating subsection (n) as subsection (o) and 

14 by inserting after subsection (m) the following new 

15 subsection: 

16 ‘‘(n) SPECIAL RULES RELATING TO MAJOR INTE17 GRATED OIL COMPANIES WHICH ARE DUAL CAPACITY

18 TAXPAYERS.— 

19 ‘‘(1) GENERAL RULE.—Notwithstanding any 

20 other provision of this chapter, any amount paid or 

21 accrued by a dual capacity taxpayer which is a 

22 major integrated oil company (within the meaning of 

23 section 167(h)(5)) to a foreign country or possession 

24 of the United States for any period shall not be con25 sidered a tax— 


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1 ‘‘(A) if, for such period, the foreign coun2 try or possession does not impose a generally 

3 applicable income tax, or 

4 ‘‘(B) to the extent such amount exceeds 

5 the amount (determined in accordance with reg6 ulations) which— 

7 ‘‘(i) is paid by such dual capacity tax8 payer pursuant to the generally applicable 

9 income tax imposed by the country or pos10 session, or 

11 ‘‘(ii) would be paid if the generally ap12 plicable income tax imposed by the country 

13 or possession were applicable to such dual 

14 capacity taxpayer. 

15 Nothing in this paragraph shall be construed to 

16 imply the proper treatment of any such amount not 

17 in excess of the amount determined under subpara18 graph (B). 

19 ‘‘(2) DUAL CAPACITY TAXPAYER.—For pur20 poses of this subsection, the term ‘dual capacity tax21 payer’ means, with respect to any foreign country or 

22 possession of the United States, a person who— 

23 ‘‘(A) is subject to a levy of such country or 

24 possession, and 


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1 ‘‘(B) receives (or will receive) directly or 

2 indirectly a specific economic benefit (as deter3 mined in accordance with regulations) from 

4 such country or possession. 

5 ‘‘(3) GENERALLY APPLICABLE INCOME TAX.— 

6 For purposes of this subsection— 

7 ‘‘(A) IN GENERAL.—The term ‘generally 

8 applicable income tax’ means an income tax (or 

9 a series of income taxes) which is generally im10 posed under the laws of a foreign country or 

11 possession on income derived from the conduct 

12 of a trade or business within such country or 

13 possession. 

14 ‘‘(B) EXCEPTIONS.—Such term shall not 

15 include a tax unless it has substantial applica16 tion, by its terms and in practice, to— 

17 ‘‘(i) persons who are not dual capacity 

18 taxpayers, and 

19 ‘‘(ii) persons who are citizens or resi20 dents of the foreign country or posses21 sion.’’. 

22 (2) EFFECTIVE DATE.— 

23 (A) IN GENERAL.—The amendments made 

24 by this subsection shall apply to taxes paid or 


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1 accrued in taxable years beginning after the 

2 date of the enactment of this Act. 

3 (B) CONTRARY TREATY OBLIGATIONS

4 UPHELD.—The amendments made by this sub5 section shall not apply to the extent contrary to 

6 any treaty obligation of the United States. 

7 (b) REINSTATEMENT OF TREATMENT OF FOREIGN

8 BASE COMPANY OIL RELATED INCOME AS FOREIGN

9 BASE COMPANY INCOME.— 

10 (1) IN GENERAL.—Section 954(a) is amended 

11 by striking ‘‘and’’ at the end of paragraph (2), by 

12 striking the period at the end of paragraph (3) and 

13 inserting ‘‘, and’’, and by adding at the end the fol14 lowing new paragraph: 

15 ‘‘(4) the foreign base company oil related in16 come for the taxable year (determined under sub17 section (g) and reduced as provided in subsection 

18 (b)(5)).’’. 

19 (2) FOREIGN BASE COMPANY OIL RELATED IN20 COME.—Section 954 is amended by inserting before 

21 subsection (h) the following new subsection: 

22 ‘‘(g) FOREIGN BASE COMPANY OIL RELATED IN23 COME.—For purposes of this section— 

24 ‘‘(1) IN GENERAL.—Except as otherwise pro25 vided in this subsection, the term ‘foreign base comVerDate Sep 11 2014 00:26 Jun 22, 2021 Jkt 019200 PO 00000 Frm 00211 Fmt 6652 Sfmt 6201 E:\BILLS\S2118.PCS S2118

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1 pany oil related income’ means foreign oil related in2 come (within the meaning of paragraphs (2) and (3) 

3 of section 907(c)) other than income derived from a 

4 source within a foreign country in connection with— 

5 ‘‘(A) oil or gas which was extracted from 

6 an oil or gas well located in such foreign coun7 try, or 

8 ‘‘(B) oil, gas, or a primary product of oil 

9 or gas which is sold by the foreign corporation 

10 or a related person for use or consumption 

11 within such country or is loaded in such coun12 try on a vessel or aircraft as fuel for such vessel 

13 or aircraft. 

14 Such term shall not include any foreign personal 

15 holding company income (as defined in subsection 

16 (c)). 

17 ‘‘(2) PARAGRAPH (1) APPLIES ONLY WHERE

18 CORPORATION HAS PRODUCED 1,000 BARRELS PER

19 DAY OR MORE.— 

20 ‘‘(A) IN GENERAL.—The term ‘foreign 

21 base company oil related income’ shall not in22 clude any income of a foreign corporation if 

23 such corporation is not a large oil producer for 

24 the taxable year. 


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1 ‘‘(B) LARGE OIL PRODUCER.—For pur2 poses of subparagraph (A), the term ‘large oil 

3 producer’ means any corporation if, for the tax4 able year or for the preceding taxable year, the 

5 average daily production of foreign crude oil 

6 and natural gas of the related group which in7 cludes such corporation equaled or exceeded 

8 1,000 barrels. 

9 ‘‘(C) RELATED GROUP.—The term ‘related 

10 group’ means a group consisting of the foreign 

11 corporation and any other person who is a re12 lated person with respect to such corporation. 

13 ‘‘(D) AVERAGE DAILY PRODUCTION OF

14 FOREIGN CRUDE OIL AND NATURAL GAS.—For 

15 purposes of this paragraph, the average daily 

16 production of foreign crude oil or natural gas of 

17 any related group for any taxable year (and the 

18 conversion of cubic feet of natural gas into bar19 rels) shall be determined under rules similar to 

20 the rules of section 613A (as in effect on the 

21 day before the date of enactment of the Clean 

22 Energy for America Act) except that only crude 

23 oil or natural gas from a well located outside 

24 the United States shall be taken into account.’’. 

25 (3) CONFORMING AMENDMENTS.— 


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1 (A) Section 952(c)(1)(B)(iii) is amended 

2 by redesignating subclauses (I) through (IV) as 

3 subclauses (II) through (V), respectively, and 

4 by inserting before subclause (II) (as redesig5 nated) the following new subclause: 

6 ‘‘(I) foreign base company oil re7 lated income,’’. 

8 (B) Section 954(b) is amended— 

9 (i) in paragraph (4), by inserting at 

10 the end the following new sentence: ‘‘The 

11 preceding sentence shall not apply to for12 eign base company oil-related income de13 scribed in subsection (a)(4).’’, 

14 (ii) in paragraph (5), by striking ‘‘and 

15 the foreign base company services income’’ 

16 and inserting ‘‘the foreign base company 

17 services income, and the foreign base com18 pany oil related income’’, and 

19 (iii) by adding at the end the fol20 lowing new paragraph: 

21 ‘‘(6) FOREIGN BASE COMPANY OIL RELATED IN22 COME NOT TREATED AS ANOTHER KIND OF BASE

23 COMPANY INCOME.—Income of a corporation which 

24 is foreign base company oil related income shall not 

25 be considered foreign base company income of such 


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1 corporation under paragraph (2) or (3) of subsection 

2 (a).’’. 

3 (4) EFFECTIVE DATE.—The amendments made 

4 by this subsection shall apply to taxable years of for5 eign corporations beginning after the date of the en6 actment of this Act, and to taxable years of United 

7 States shareholders with or within which such tax8 able years of foreign corporations end. 

9 (c) INCLUSION OF FOREIGN OIL AND GAS EXTRAC10 TION INCOME IN TESTED INCOME FOR PURPOSE OF DE11 TERMINING GLOBAL INTANGIBLE LOW-TAXED INCOME.— 

12 (1) IN GENERAL.—Section 951A(c)(2)(A)(i) is 

13 amended by inserting ‘‘and’’ at the end of subclause 

14 (III), by striking ‘‘and’’ at the end of subclause (IV) 

15 and inserting ‘‘over’’, and by striking subclause (V). 

16 (2) EFFECTIVE DATE.—The amendments made 

17 by this subsection shall apply to taxable years of for18 eign corporations beginning after the date of the en19 actment of this Act, and to taxable years of United 

20 States shareholders in which or with which such tax 

21 years of foreign corporations end. 

22 (d) CLARIFICATION OF TAR SANDS AS CRUDE OIL

23 FOR EXCISE TAX PURPOSES.— 

24 (1) IN GENERAL.—Paragraph (1) of section 

25 4612(a) is amended to read as follows: 


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1 ‘‘(1) CRUDE OIL.—The term ‘crude oil’ includes 

2 crude oil condensates, natural gasoline, any bitumen 

3 or bituminous mixture, any oil derived from a bitu4 men or bituminous mixture (including oil derived 

5 from tar sands), and any oil derived from kerogen6 bearing sources (including oil derived from oil 

7 shale).’’. 

8 (2) TECHNICAL AMENDMENT.—Paragraph (2) 

9 of section 4612(a) is amended by striking ‘‘from a 

10 well located’’. 

11 (3) EFFECTIVE DATE.—The amendments made 

12 by this subsection shall apply to oil and petroleum 

13 products received, entered, used, or exported after 

14 December 31, 2021. 

15 TITLE V—WORKFORCE 

16 DEVELOPMENT REQUIREMENTS 

17 SEC. 501. USE OF QUALIFIED APPRENTICES. 

18 (a) IN GENERAL.—All contractors and subcontrac19 tors engaged in the performance of construction, alter20 ation, or repair work on any applicable project shall, sub21 ject to subsection (b), ensure that not less than 15 percent 

22 of the total labor hours of such work be performed by 

23 qualified apprentices. 

24 (b) APPRENTICE-TO-JOURNEYWORKER RATIO.—The 

25 requirement under subsection (a) shall be subject to any 


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1 applicable requirements for apprentice-to-journeyworker 

2 ratios of the Department of Labor or the applicable State 

3 apprenticeship agency. 

4 (c) PARTICIPATION.—Each contractor and subcon5 tractor who employs 4 or more individuals to perform con6 struction, alteration, or repair work on an applicable 

7 project shall employ 1 or more qualified apprentices to 

8 perform such work. 

9 (d) EXCEPTION.—Notwithstanding any other provi10 sion in this section, this section shall not apply in the case 

11 of a taxpayer who— 

12 (1)(A) demonstrates a lack of availability of 

13 qualified apprentices in the geographic area of the 

14 construction, alteration, or repair work; and 

15 (B) makes a good faith effort to comply with 

16 the requirements of this section; or 

17 (2) in the case of any failure by the taxpayer 

18 to satisfy the requirement under subsection (a) with 

19 respect to the construction, alteration, or repair 

20 work on any applicable project to which paragraph 

21 (1) does not apply, makes payment to the Secretary 

22 of the Treasury (or the Secretary’s delegate) of a 

23 penalty in an amount equal to the product of— 

24 (A) $500, multiplied by 


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1 (B) the total labor hours for which the re2 quirement described in such subsection was not 

3 satisfied with respect to the construction, alter4 ation, or repair work on such applicable project. 

5 (e) DEFINITIONS.—In this section: 

6 (1) APPLICABLE PROJECT.—The term ‘‘applica7 ble project’’ means, with respect to— 

8 (A) subsection (e)(7)(A)(ii) of section 30C 

9 of the Internal Revenue Code of 1986, 

10 (B) subsection (f)(9)(A)(ii) of section 45Q 

11 of such Code, 

12 (C) subsection (b)(1)(A)(iv)(II) of section 

13 45U of such Code, 

14 (D) subsection (e)(4)(A)(ii)(II) of section 

15 45V of such Code, 

16 (E) subsection (d)(3)(A)(i)(II)(bb) of sec17 tion 45X of such Code, 

18 (F) subsection (d)(3)(A)(ii)(II) of section 

19 48C of such Code, 

20 (G) subsections (b)(3)(A)(iv)(II) and 

21 (c)(1)(B)(ii) of section 48D of such Code, and 

22 (H) subsection (c)(1)(E)(ii) of section 

23 179D of such Code, 

24 any property, equipment, or facility for which a 

25 credit is allowed or determined under such sections. 


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1 (2) LABOR HOURS.—The term ‘‘labor hours’’— 

2 (A) means the total number of hours de3 voted to the performance of construction, alter4 ation, or repair work by employees of the con5 tractor or subcontractor; and 

6 (B) excludes any hours worked by— 

7 (i) foremen; 

8 (ii) superintendents; 

9 (iii) owners; or 

10 (iv) persons employed in a bona fide 

11 executive, administrative, or professional 

12 capacity (within the meaning of those 

13 terms in part 541 of title 29, Code of Fed14 eral Regulations). 

15 (3) QUALIFIED APPRENTICE.—The term ‘‘quali16 fied apprentice’’ means an individual who is an em17 ployee of the contractor or subcontractor and who is 

18 participating in a registered apprenticeship program, 

19 as defined in section 3131(e)(3)(B) of the Internal 

20 Revenue Code of 1986. 

21 TITLE VI—MISCELLANEOUS 

22 SEC. 601. ADJUSTMENT OF QUALIFYING ADVANCED EN23 ERGY PROJECT CREDIT. 

24 (a) IN GENERAL.—Section 48C is amended— 

25 (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 Clean Energy for America Act, 

19 had no projects which received a certifi20 cation and allocation of credits under sub21 section (d), and 

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

23 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 Clean 

11 Energy for America Act’’, and 

12 (ii) by striking subparagraph (B) and 

13 inserting the following: 

14 ‘‘(B) LIMITATIONS.— 

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

16 amount of credits that may be allocated 

17 under the program prior to the date of en18 actment of the Clean Energy for America 

19 Act shall not exceed $2,300,000,000. 

20 ‘‘(ii) ADDITIONAL ALLOCATION.—The 

21 total amount of credits that may be allo22 cated under the program on or after to the 

23 date of enactment of the Clean Energy for 

24 America Act shall not exceed 

25 $8,000,000,000, of which not greater than 


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1 $4,000,000,000 may be allocated to 

2 projects which are not located in a census 

3 tract described in subparagraph (B) of 

4 subsection (c)(1).’’, 

5 (B) in paragraph (2)— 

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

7 ‘‘2-year’’ and inserting ‘‘3-year’’, 

8 (ii) in subparagraph (B)— 

9 (I) by striking ‘‘1 year’’ and in10 serting ‘‘18 months’’, and 

11 (II) by adding at the end the fol12 lowing new sentence: ‘‘Not later than 

13 180 days after the date on which such 

14 evidence was provided by the appli15 cant, the Secretary shall determine 

16 whether the requirements of the cer17 tification have been met.’’, and 

18 (iii) by adding at the end the fol19 lowing new subparagraph: 

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

21 of an applicant which receives a certification, if 

22 the Secretary determines that the project has 

23 been placed in service at a location which is ma24 terially different than the location specified in 


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1 the application for such project, the certifi2 cation shall no longer be valid.’’, 

3 (C) in paragraph (3)— 

4 (i) by striking subparagraph (A) and 

5 inserting the following: 

6 ‘‘(A) shall take into consideration only 

7 those projects— 

8 ‘‘(i) for which there is a reasonable 

9 expectation of commercial viability, and 

10 ‘‘(ii) which— 

11 ‘‘(I) satisfies the requirements 

12 under paragraph (6), and 

13 ‘‘(II) with respect to the re14 equipping, expansion, or establishment 

15 of an industrial or manufacturing fa16 cility, satisfies the requirements under 

17 section 501 of the Clean Energy for 

18 America Act, and’’, and 

19 (ii) in subparagraph (B)— 

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

21 and inserting the following: 

22 ‘‘(i) will provide the greatest net im23 pact in avoiding or reducing anthropogenic 

24 emissions of greenhouse gases (or, in the 

25 case of a project described in subsection 


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1 (c)(1)(A)(ii), will provide the greatest re2 duction of greenhouse gas emissions as 

3 compared to current best practices), 

4 ‘‘(ii) will provide the greatest domestic 

5 job creation (both direct and indirect) dur6 ing the credit period,’’, 

7 (II) by redesignating clauses (iii) 

8 through (v) as clauses (iv) through 

9 (vi), respectively, and 

10 (III) by inserting after clause (ii) 

11 the following new clause: 

12 ‘‘(iii) will provide the greatest job cre13 ation within the vicinity of the project, par14 ticularly with respect to— 

15 ‘‘(I) low-income communities (as 

16 defined in section 45D(e)), and 

17 ‘‘(II) dislocated workers who 

18 were previously employed in manufac19 turing, coal power plants, or coal min20 ing,’’, 

21 (D) in paragraph (4)— 

22 (i) by striking subparagraph (A) and 

23 inserting the following: 

24 ‘‘(A) REVIEW AND REPORT.—Not later 

25 than 4 years after the date of enactment of the 


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1 Clean Energy for America Act, the Secretary 

2 shall— 

3 ‘‘(i) review the credits allocated under 

4 this section as of such date, and 

5 ‘‘(ii) submit a report regarding the al6 location of such credits to— 

7 ‘‘(I) the Committee on Finance 

8 and the Committee on Energy and 

9 Natural Resources of the Senate, and 

10 ‘‘(II) the Committee on Ways 

11 and Means and the Committee on En12 ergy and Commerce of the House of 

13 Representatives.’’, and 

14 (ii) by adding at the end the following 

15 new subparagraph: 

16 ‘‘(D) SPECIAL RULE.—For purposes of re17 allocating credits pursuant to this paragraph, 

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

19 respect to allocation of credits to projects which 

20 are not located in a census tract described in 

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

22 apply.’’, and 

23 (E) by adding at the end the following: 

24 ‘‘(6) WAGE REQUIREMENTS.— 


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1 ‘‘(A) IN GENERAL.—The requirements de2 scribed in this subparagraph with respect to 

3 any project are that the taxpayer shall ensure 

4 that any laborers and mechanics employed by 

5 contractors and subcontractors in the re-equip6 ping, expansion, or establishment of an indus7 trial or manufacturing facility shall be paid 

8 wages at rates not less than the prevailing rates 

9 for construction or alteration of a similar char10 acter in the locality as determined by the Sec11 retary of Labor, in accordance with subchapter 

12 IV of chapter 31 of title 40, United States 

13 Code. 

14 ‘‘(B) CORRECTION AND PENALTY RELATED

15 TO FAILURE TO SATISFY WAGE REQUIRE16 MENTS.—In the case of any taxpayer which 

17 fails to satisfy the requirement under subpara18 graph (A) with respect to any project— 

19 ‘‘(i) rules similar to the rules of sec20 tion 45U(b)(3)(B)(ii) shall apply for pur21 poses of this paragraph, and 

22 ‘‘(ii) if the failure to satisfy the re23 quirement under subparagraph (A) is not 

24 corrected pursuant to the rules described 


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1 in clause (i), the certification with respect 

2 to such project shall no longer be valid.’’, 

3 (3) in subsection (e), by striking ‘‘48, 48A, or 

4 48B’’ and inserting ‘‘45Q, 48, 48A, 48B, or 48D’’, 

5 and 

6 (4) by adding at the end the following: 

7 ‘‘(f) SPECIAL RULE FOR PROPERTY FINANCED BY

8 SUBSIDIZED ENERGY FINANCING OR INDUSTRIAL DEVEL9 OPMENT BONDS.—Rules similar to the rules in section 

10 48(a)(4) shall apply for purposes of this section. 

11 ‘‘(g) TECHNICAL ASSISTANCE.—For purposes of as12 sisting with applications for certification under subsection 

13 (d), the Secretary of Energy shall provide technical assist14 ance to any State (or political subdivision thereof), tribe, 

15 or economic development organization which, prior to the 

16 date of enactment of the Clean Energy for America Act— 

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

18 such subsection, or 

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

20 projects which received an allocation of credits under 

21 such subsection. 

22 ‘‘(h) ELECTION FOR DIRECT PAYMENT.— 

23 ‘‘(1) IN GENERAL.—In the case of any eligible 

24 property placed in service during any taxable year 

25 which is part of a qualifying advanced energy 


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1 project, the amount of any credit determined under 

2 subsection (a) with respect to such property for such 

3 taxable year shall, at the election of the taxpayer, be 

4 treated as a payment equal to such amount which is 

5 made by the taxpayer against the tax imposed by 

6 chapter 1 for such taxable year (regardless of wheth7 er such tax would have been on such taxpayer). 

8 ‘‘(2) FORM AND EFFECT OF ELECTION.— 

9 ‘‘(A) IN GENERAL.—An election under 

10 paragraph (1) shall be made as part of the ap11 plication for certification under subsection 

12 (d)(2)(A) and in such manner as the Secretary 

13 may prescribe. Such election, once made, 

14 shall— 

15 ‘‘(i) be irrevocable with respect to the 

16 eligible property to which such election ap17 plies, and 

18 ‘‘(ii) reduce the amount of the credit 

19 which would (but for this subsection) be al20 lowable under this section with respect to 

21 such property for the taxable year in which 

22 such property is placed in service to zero. 

23 ‘‘(B) ADDITIONAL INFORMATION.—For 

24 purposes of an election under paragraph (1), 

25 the Secretary may require such information as 


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1 the Secretary deems necessary for purposes of 

2 preventing duplication, fraud, or any improper 

3 payments under this subsection. 

4 ‘‘(3) APPLICATION TO PARTNERSHIPS AND S

5 CORPORATIONS; EXCESS PAYMENTS.—Rules similar 

6 to the rules of paragraphs (3) and (5) of section 

7 45U(h) shall apply for purposes of this subsection. 

8 ‘‘(4) SPECIAL RULES FOR CERTAIN ENTITIES.— 

9 ‘‘(A) ELIGIBILITY OF CERTAIN PROP10 ERTY.—For purposes of this subsection, para11 graphs (3) and (4) of section 50(b) shall not 

12 apply with respect to— 

13 ‘‘(i) any State utility with a service 

14 obligation, as such terms are defined in 

15 section 217 of the Federal Power Act (as 

16 in effect on the date of the enactment of 

17 this subsection), 

18 ‘‘(ii) any mutual or cooperative elec19 tric company described in section 

20 501(c)(12) or section 1381(a)(2)(C), or 

21 ‘‘(iii) an Indian tribal government (as 

22 defined in section 139E(c)(1)). 

23 ‘‘(B) CERTAIN ENTITIES TREATED AS TAX24 PAYERS.—In the case of an election under this 

25 subsection, any entity described in clause (i), 


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1 (ii), or (iii) of subparagraph (A) shall be treat2 ed as a taxpayer for purposes of this subsection 

3 and determining the amount of any credit 

4 under subsection (a).’’. 

5 (b) AUTHORIZATION OF APPROPRIATIONS.—To carry 

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

7 Code of 1986 (as added by subsection (a)(4)), there is au8 thorized to be appropriated to the State Energy Program 

9 of the Department of Energy, out of moneys in the Treas10 ury not otherwise appropriated, $500,000, to remain avail11 able until expended. 

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

13 this section shall apply to property placed in service after 

14 December 31, 2021. 

15 SEC. 602. ISSUANCE OF EXEMPT FACILITY BONDS FOR 

16 QUALIFIED CARBON DIOXIDE CAPTURE FA17 CILITIES. 

18 (a) IN GENERAL.—Section 142 is amended— 

19 (1) in subsection (a)— 

20 (A) in paragraph (14), by striking ‘‘or’’ at 

21 the end, 

22 (B) in paragraph (15), by striking the pe23 riod at the end and inserting ‘‘, or’’, and 

24 (C) by adding at the end the following new 

25 paragraph: 


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1 ‘‘(16) qualified carbon dioxide capture facili2 ties.’’, and 

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

5 ‘‘(n) QUALIFIED CARBON DIOXIDE CAPTURE FACIL6 ITY.— 

7 ‘‘(1) IN GENERAL.—For purposes of subsection 

8 (a)(16), the term ‘qualified carbon dioxide capture 

9 facility’ means— 

10 ‘‘(A) the eligible components of an indus11 trial carbon dioxide facility, and 

12 ‘‘(B) a direct air capture facility (as de13 fined in section 45Q(e)(1)). 

14 ‘‘(2) DEFINITIONS.—In this subsection: 

15 ‘‘(A) ELIGIBLE COMPONENT.— 

16 ‘‘(i) IN GENERAL.—The term ‘eligible 

17 component’ means any equipment installed 

18 in an industrial carbon dioxide facility 

19 which is— 

20 ‘‘(I) used for the purpose of cap21 ture, treatment and purification, com22 pression, transportation, or on-site 

23 storage of carbon dioxide produced by 

24 the industrial carbon dioxide facility, 

25 or 


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1 ‘‘(II) integral or functionally re2 lated and subordinate to a process 

3 which converts a solid or liquid prod4 uct from coal, petroleum residue, bio5 mass, or other materials which are re6 covered for their energy or feedstock 

7 value into a synthesis gas composed 

8 primarily of carbon dioxide and hydro9 gen for direct use or subsequent 

10 chemical or physical conversion. 

11 ‘‘(ii) DEFINITIONS.—For purposes of 

12 this subparagraph— 

13 ‘‘(I) BIOMASS.— 

14 ‘‘(aa) IN GENERAL.—The 

15 term ‘biomass’ means any— 

16 ‘‘(AA) agricultural or 

17 plant waste, 

18 ‘‘(BB) byproduct of 

19 wood or paper mill oper20 ations, including lignin in 

21 spent pulping liquors, and 

22 ‘‘(CC) other products of 

23 forestry maintenance. 

24 ‘‘(bb) EXCLUSION.—The 

25 term ‘biomass’ does not include 


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1 paper which is commonly recy2 cled. 

3 ‘‘(II) COAL.—The term ‘coal’ 

4 means anthracite, bituminous coal, 

5 subbituminous coal, lignite, and peat. 

6 ‘‘(B) INDUSTRIAL CARBON DIOXIDE FACIL7 ITY.— 

8 ‘‘(i) IN GENERAL.—Except as pro9 vided in clause (ii), the term ‘industrial 

10 carbon dioxide facility’ means a facility 

11 that emits carbon dioxide (including from 

12 any fugitive emissions source) that is cre13 ated as a result of any of the following 

14 processes: 

15 ‘‘(I) Fuel combustion. 

16 ‘‘(II) Gasification. 

17 ‘‘(III) Bioindustrial. 

18 ‘‘(IV) Fermentation. 

19 ‘‘(V) Any manufacturing industry 

20 relating to— 

21 ‘‘(aa) chemicals, 

22 ‘‘(bb) fertilizers, 

23 ‘‘(cc) glass, 

24 ‘‘(dd) steel, 

25 ‘‘(ee) petroleum residues, 


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1 ‘‘(ff) forest products, 

2 ‘‘(gg) agriculture, including 

3 feedlots and dairy operations, 

4 and 

5 ‘‘(hh) transportation grade 

6 liquid fuels. 

7 ‘‘(ii) EXCEPTIONS.—For purposes of 

8 clause (i), an industrial carbon dioxide fa9 cility shall not include— 

10 ‘‘(I) any geological gas facility, or 

11 ‘‘(II) any air separation unit 

12 that— 

13 ‘‘(aa) does not qualify as 

14 gasification equipment, or 

15 ‘‘(bb) is not a necessary 

16 component of an oxy-fuel com17 bustion process. 

18 ‘‘(iii) DEFINITIONS.—In this subpara19 graph— 

20 ‘‘(I) PETROLEUM RESIDUE.—The 

21 term ‘petroleum residue’ means the 

22 carbonized product of high-boiling hy23 drocarbon fractions obtained in petro24 leum processing. 


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1 ‘‘(II) GEOLOGICAL GAS FACIL2 ITY.—The term ‘geological gas facil3 ity’ means a facility that— 

4 ‘‘(aa) produces a raw prod5 uct consisting of gas or mixed 

6 gas and liquid from a geological 

7 formation, 

8 ‘‘(bb) transports or removes 

9 impurities from such product, or 

10 ‘‘(cc) separates such product 

11 into its constituent parts. 

12 ‘‘(3) SPECIAL RULE FOR FACILITIES WITH LESS

13 THAN 65 PERCENT CAPTURE AND STORAGE PER14 CENTAGE.— 

15 ‘‘(A) IN GENERAL.—An eligible component 

16 of an industrial carbon dioxide facility with a 

17 capture and storage percentage that is less than 

18 65 percent shall only be treated as a qualified 

19 carbon dioxide facility with respect to the per20 centage of the costs attributable to such eligible 

21 component which is equal to the capture and 

22 storage percentage of such facility. 

23 ‘‘(B) CAPTURE AND STORAGE PERCENT24 AGE.— 


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1 ‘‘(i) IN GENERAL.—Subject to clause 

2 (ii), the capture and storage percentage 

3 shall be an amount, expressed as a per4 centage, equal to the quotient of— 

5 ‘‘(I) the total metric tons of car6 bon dioxide annually captured, trans7 ported, and injected into— 

8 ‘‘(aa) a facility for geologic 

9 storage, or 

10 ‘‘(bb) an enhanced oil or gas 

11 recovery well followed by geologic 

12 storage, divided by 

13 ‘‘(II) the total metric tons of car14 bon dioxide which would otherwise be 

15 released into the atmosphere each 

16 year as industrial emission of green17 house gas if the eligible components 

18 were not installed in the industrial 

19 carbon dioxide facility. 

20 ‘‘(ii) LIMITED APPLICATION OF ELIGI21 BLE COMPONENTS.—In the case of eligible 

22 components that are designed to capture 

23 carbon dioxide solely from specific sources 

24 of emissions or portions thereof within an 

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1 ture and storage percentage under this 

2 subparagraph shall be determined based 

3 only on such specific sources of emissions 

4 or portions thereof. 

5 ‘‘(4) REGULATIONS.—The Secretary shall issue 

6 such regulations or other guidance as are necessary 

7 to carry out the provisions of this subsection, includ8 ing methods for determining costs attributable to an 

9 eligible component for purposes of paragraph 

10 (3)(A).’’. 

11 (b) VOLUME CAP.—Section 146(g)(4) is amended by 

12 striking ‘‘paragraph (11) of section 142(a) (relating to 

13 high-speed intercity rail facilities)’’ and inserting ‘‘para14 graph (11) or (16) of section 142(a)’’. 

15 (c) CLARIFICATION OF PRIVATE BUSINESS USE.— 

16 Section 141(b)(6) is amended by adding at the end the 

17 following new subparagraph: 

18 ‘‘(C) CLARIFICATION RELATING TO QUALI19 FIED CARBON DIOXIDE CAPTURE FACILITIES.— 

20 For purposes of this subsection, the sale of car21 bon dioxide produced by a qualified carbon di22 oxide capture facility (as defined in section 

23 142(n)) which is owned by a governmental unit 

24 shall not constitute private business use.’’. 


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

2 this section shall apply to obligations issued after Decem3 ber 31, 2021. 

4 SEC. 603. LIMITATION ON IMPORTATION OF CERTAIN EN5 ERGY EQUIPMENT AND COMPONENTS. 

6 (a) IN GENERAL.—The importation of an article de7 scribed in subsection (b) is prohibited unless the United 

8 Nations certifies that the article is not mined or otherwise 

9 produced using forced labor or child labor. 

10 (b) ARTICLES DESCRIBED.—An article described in 

11 this subsection is a solar cell, a wind turbine, energy stor12 age equipment, or a component for such equipment. 

13 SEC. 604. ELIMINATION OF NEGATIVE EFFECTS ON SMALL 

14 BUSINESSES AND CERTAIN INDIVIDUAL TAX15 PAYERS. 

16 (a) IN GENERAL.—In the case of any taxable year 

17 beginning after the date of the enactment of this Act, the 

18 Secretary of the Treasury (or the Secretary’s delegate) 

19 shall pay to each applicable eligible taxpayer an amount 

20 equal to the excess (if any) of— 

21 (1) the tax imposed under chapter 1 of the In22 ternal Revenue Code of 1986 (determined after the 

23 application of the amendments made by this Act 

24 which are in effect for such taxable year), over 


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1 (2) the tax imposed under such chapter on such 

2 taxpayer for such taxable year (determined without 

3 regard to the amendments made by this Act). 

4 (b) APPLICABLE ELIGIBLE TAXPAYER.—For pur5 poses of this section— 

6 (1) IN GENERAL.—The term ‘‘applicable eligible 

7 taxpayer’’ means, with respect to any taxable year, 

8 any eligible taxpayer who establishes to the satisfac9 tion of the Secretary of the Treasury (or the Sec10 retary’s delegate) that there is an excess described 

11 in subsection (a) with respect to such taxpayer. 

12 (2) ELIGIBLE TAXPAYER.— 

13 (A) IN GENERAL.—The term ‘‘eligible tax14 payer’’ means, with respect to any taxable 

15 year— 

16 (i) an individual with an adjusted 

17 gross income of not more than $400,000, 

18 and 

19 (ii) any employer that has an average 

20 number of fewer than 500 employees for 

21 the taxable year. 

22 (B) AGGREGATION RULES.—For purposes 

23 of subparagraph (A)(ii), all persons treated as 

24 a single employer under subsection (b), (c), 

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1 enue Code of 1986 shall be treated as one em2 ployer. 

3 (C) SPECIAL RULE FOR PASS-THRU ENTI4 TIES.—In the case of a partnership, S corpora5 tion, or other pass-thru entity that is described 

6 in subparagraph (A)(ii)— 

7 (i) any partner, shareholder, or other 

8 applicable individual who is not described 

9 in subparagraph (A)(i) shall be treated as 

10 an eligible taxpayer, and 

11 (ii) the amount of the excess described 

12 under subsection (a) of such partner, 

13 shareholder, or other applicable individual 

14 shall be determined by only taking into ac15 count the income, gain, loss, deduction, or 

16 credit of such partnership, S corporation, 

17 or other pass-thru entity. 

18 For purposes of the preceding sentence, the 

19 term ‘‘applicable individual’’ means, with re20 spect to any pass-thru entity, any individual to 

21 whom the income, gain, loss, or deduction of 

22 such entity is attributed for tax purposes. 

23 (c) TREATMENT OF PAYMENTS.—The amount of any 

24 payment under subsection (a) shall be treated as a refund 


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1 of taxes due from a provision described in section 

2 1324(b)(2) of title 31, United States Code. 

3 (d) REGULATIONS.—The Secretary of the Treasury 

4 (or the Secretary’s delegate) shall issue such regulations 

5 or other guidance as are necessary to carry out the provi6 sions of this section. 


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kjohnson on DSK79L0C42PROD with BILLS
Calendar No. 78 

117TH CONGRESS 

1ST SESSION S. 2118 

A BILL 

To amend the Internal Revenue Code of 1986 to 

clean energy, and for other purposes. provide tax incentives for increased investment in 

JUNE 21, 2021 

Read the second time and placed on the calendar 


kjohnson on DSK79L0C42PROD with BILLS