II 

117TH CONGRESS 

1ST SESSION S. 2140 

To amend the Internal Revenue Code of 1986 to establish the advanced 

solar manufacturing production credit. 

IN THE SENATE OF THE UNITED STATES 

JUNE 21, 2021 

Mr. OSSOFF (for himself, Mr. WARNOCK, Mr. BENNET, and Ms. STABENOW) 

introduced the following bill; which was read twice and referred to the 

Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to establish 

the advanced solar manufacturing production credit. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Solar Energy Manufac5 turing for America Act’’. 

6 SEC. 2. ADVANCED SOLAR MANUFACTURING PRODUCTION 

7 CREDIT. 

8 (a) IN GENERAL.—Subpart C of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of 


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1 1986 is amended by adding at the end the following new 

2 section: 

3 ‘‘SEC. 36C. ADVANCED SOLAR MANUFACTURING PRODUC4 TION CREDIT. 

5 ‘‘(a) IN GENERAL.— 

6 ‘‘(1) ALLOWANCE OF CREDIT.—There shall be 

7 allowed as a credit against the tax imposed by this 

8 subtitle for any taxable year an amount equal to the 

9 sum of the credit amounts determined under sub10 section (b) with respect to each solar component 

11 which is— 

12 ‘‘(A) produced by such taxpayer, and 

13 ‘‘(B) during the taxable year— 

14 ‘‘(i) sold by the taxpayer to— 

15 ‘‘(I) an unrelated person, or 

16 ‘‘(II) a related person for the use 

17 of such person in their trade or busi18 ness (with the exception of any trade 

19 or business related to resale of such 

20 solar component without any subse21 quent modification, assembly, or inte22 gration into a project), or 

23 ‘‘(ii) placed in service or operation by 

24 the taxpayer or any other person. 


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1 ‘‘(2) PRODUCTION AND SALE MUST BE IN

2 TRADE OR BUSINESS.—Any solar component pro3 duced and sold by the taxpayer shall be taken into 

4 account only if the production and sale described in 

5 paragraph (1) is in a trade or business of the tax6 payer. 

7 ‘‘(b) CREDIT AMOUNT.— 

8 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

9 the amount determined under this subsection with 

10 respect to any solar component shall be equal to— 

11 ‘‘(A) in the case of an integrated module, 

12 an amount equal to the product of— 

13 ‘‘(i) 11 cents, multiplied by 

14 ‘‘(ii) the capacity of such module (ex15 pressed on a per direct current watt basis), 

16 ‘‘(B) in the case of a photovoltaic cell, an 

17 amount equal to the product of— 

18 ‘‘(i) 4 cents, multiplied by 

19 ‘‘(ii) the capacity of such cell (ex20 pressed on a per direct current watt basis), 

21 ‘‘(C) in the case of a photovoltaic wafer, 

22 $12 per square meter, 

23 ‘‘(D) in the case of solar grade polysilicon, 

24 $3 per kilogram, and 


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1 ‘‘(E) in the case of a solar module which 

2 is not an integrated module, an amount equal 

3 to the product of— 

4 ‘‘(i) 7 cents, multiplied by 

5 ‘‘(ii) the capacity of such module (ex6 pressed on a per direct current watt basis). 

7 ‘‘(2) PHASE OUT.— 

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

9 solar component sold after December 31, 2028, 

10 the amount determined under this subsection 

11 with respect to such component shall be equal 

12 to the product of— 

13 ‘‘(i) the amount determined under 

14 paragraph (1) with respect to such compo15 nent, as determined without regard to this 

16 paragraph, multiplied by 

17 ‘‘(ii) the phase out percentage under 

18 subparagraph (B). 

19 ‘‘(B) PHASE OUT PERCENTAGE.—The 

20 phase out percentage under this subparagraph 

21 is equal to— 

22 ‘‘(i) in the case of a solar component 

23 sold during calendar year 2029, 70 per24 cent, 


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1 ‘‘(ii) in the case of a solar component 

2 sold during calendar year 2030, 35 per3 cent, and 

4 ‘‘(iii) in the case of a solar component 

5 sold after December 31, 2030, 0 percent. 

6 ‘‘(c) DEFINITIONS AND OTHER RULES.—In this sec7 tion— 

8 ‘‘(1) SOLAR COMPONENT.—The term ‘solar 

9 component’ means any property described in para10 graph (2). 

11 ‘‘(2) OTHER DEFINITIONS.— 

12 ‘‘(A) INTEGRATED MODULE.—The term 

13 ‘integrated module’ means a solar module pro14 duced by a single manufacturer through the 

15 conversion of a photovoltaic wafer or other 

16 semiconductor material into an end product 

17 which is— 

18 ‘‘(i) suitable to generate electricity 

19 when exposed to sunlight, and 

20 ‘‘(ii) ready for installation without ad21 ditional manufacturing processes. 

22 ‘‘(B) PHOTOVOLTAIC CELL.—The term 

23 ‘photovoltaic cell’ means the smallest semicon24 ductor element of a solar module which perVerDate Sep 11 2014 06:34 Jun 24, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S2140.IS S2140

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1 forms the immediate conversion of light into 

2 electricity. 

3 ‘‘(C) PHOTOVOLTAIC WAFER.—The term 

4 ‘photovoltaic wafer’ means a thin slice or sheet 

5 of semiconductor material of at least 240 

6 square centimeters produced by a single manu7 facturer— 

8 ‘‘(i) either— 

9 ‘‘(I) directly from molten solar 

10 grade polysilicon, or 

11 ‘‘(II) through formation of an 

12 ingot from molten polysilicon and sub13 sequent slicing, and 

14 ‘‘(ii) which comprises the substrate of 

15 a photovoltaic cell. 

16 ‘‘(D) SOLAR GRADE POLYSILICON.—The 

17 term ‘solar grade polysilicon’ means silicon 

18 which is— 

19 ‘‘(i) suitable for use in photovoltaic 

20 manufacturing, and 

21 ‘‘(ii) purified to a minimum purity of 

22 99.999999 percent silicon by mass. 

23 ‘‘(E) SOLAR MODULE.—The term ‘solar 

24 module’ means the connection and lamination 


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1 of photovoltaic cells into an environmentally 

2 protected final assembly which is— 

3 ‘‘(i) suitable to generate electricity 

4 when exposed to sunlight, and 

5 ‘‘(ii) ready for installation without an 

6 additional manufacturing process. 

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

8 treated as related to each other if such persons 

9 would be treated as a single employer under the reg10 ulations prescribed under section 52(b). In the case 

11 of a corporation which is a member of an affiliated 

12 group of corporations filing a consolidated return, 

13 such corporation shall be treated as selling compo14 nents to an unrelated person if such component is 

15 sold to such a person by another member of such 

16 group. 

17 ‘‘(4) ONLY PRODUCTION IN THE UNITED

18 STATES TAKEN INTO ACCOUNT.—Sales shall be 

19 taken into account under this section only with re20 spect to solar components the production of which is 

21 within— 

22 ‘‘(A) the United States (within the mean23 ing of section 638(1)), or 

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

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


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

2 TRUSTS.—Under regulations prescribed by the Sec3 retary, rules similar to the rules of subsection (d) of 

4 section 52 shall apply. 

5 ‘‘(d) REGISTRATION.— 

6 ‘‘(1) IN GENERAL.—The Secretary shall require 

7 any person claiming tax benefits under the provi8 sions of this section to register with the Secretary at 

9 such time, in such form and manner, and subject to 

10 such terms and conditions, as the Secretary may by 

11 regulations prescribe. A registration under this sub12 section may be used only in accordance with regula13 tions prescribed under this subsection. 

14 ‘‘(2) REGISTRATION IN EVENT OF CHANGE IN

15 OWNERSHIP.—Under regulations prescribed by the 

16 Secretary, a person (other than a corporation the 

17 stock of which is regularly traded on an established 

18 securities market) shall be required to re-register 

19 under this subsection if after a transaction (or series 

20 of related transactions) more than 50 percent of 

21 ownership interests in, or assets of, such person are 

22 held by persons other than persons (or persons re23 lated thereto) who held more than 50 percent of 

24 such interests or assets before the transaction (or 

25 series of related transactions). 


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1 ‘‘(3) DENIAL, REVOCATION, OR SUSPENSION OF

2 REGISTRATION.—Rules similar to the rules of sec3 tion 4222(c) shall apply to registration under this 

4 section. 

5 ‘‘(4) INFORMATION REPORTING.—The Sec6 retary may require— 

7 ‘‘(A) information reporting by any person 

8 registered under this subsection, and 

9 ‘‘(B) information reporting by such other 

10 persons as the Secretary deems necessary to 

11 carry out this section.’’. 

12 (b) CONFORMING AMENDMENTS.— 

13 (1) Section 6211(b)(4)(A) of the Internal Rev14 enue Code of 1986 is amended by inserting ‘‘36C,’’ 

15 after ‘‘36B,’’. 

16 (2) Paragraph (2) of section 1324(b) of title 

17 31, United States Code, is amended by inserting 

18 ‘‘36C,’’ after ‘‘36B,’’. 

19 (3) The table of sections for subpart C of part 

20 IV of subchapter A of chapter 1 of the Internal Rev21 enue Code of 1986 is amended by inserting after the 

22 item relating to section 36B the following new item: 

‘‘Sec. 36C. Advanced solar manufacturing production credit.’’. 


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

2 this section shall apply to components produced and sold 

3 after December 31, 2021. 

Æ 


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