II 

117TH CONGRESS 

1ST SESSION S. 3091 

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

solar manufacturing production credit. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 27, 2021 

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

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 (3), 

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, 


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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 ‘‘(F) in the case of a solar tracker torque 

8 tube, an amount equal to the product of— 

9 ‘‘(i) 87 cents, multiplied by 

10 ‘‘(ii) the mass of such torque tube (ex11 pressed on a per kilogram basis), 

12 ‘‘(G) in the case of a solar tracker longitu13 dinal purlin, an amount equal to the product 

14 of— 

15 ‘‘(i) 87 cents, multiplied by 

16 ‘‘(ii) the mass of such longitudinal 

17 purlin (expressed on a per kilogram basis), 

18 ‘‘(H) in the case of a solar structural fas19 tener, an amount equal to the product of— 

20 ‘‘(i) $2.28, multiplied by 

21 ‘‘(ii) the mass of such structural fas22 tener (expressed on a per kilogram basis), 

23 and 

24 ‘‘(I) in the case of an inverter, an amount 

25 equal to the product of— 


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1 ‘‘(i) the applicable amount, multiplied 

2 by 

3 ‘‘(ii) the capacity of such inverter (ex4 pressed on a per alternating current watt 

5 basis). 

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

7 paragraph (1)(I), the applicable amount with respect 

8 to any inverter shall be— 

9 ‘‘(A) in the case of a central inverter, 0.25 

10 cents, 

11 ‘‘(B) in the case of a utility-scale inverter, 

12 1.5 cents, 

13 ‘‘(C) in the case of a commercial inverter, 

14 2 cents, 

15 ‘‘(D) in the case of a residential inverter, 

16 6.5 cents, and 

17 ‘‘(E) in the case of a microinverter, 11 

18 cents. 

19 ‘‘(3) PHASE OUT.— 

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

21 solar component sold after December 31, 2028, 

22 the amount determined under this subsection 

23 with respect to such component shall be equal 

24 to the product of— 


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1 ‘‘(i) the amount determined under 

2 paragraph (1) with respect to such compo3 nent, as determined without regard to this 

4 paragraph, multiplied by 

5 ‘‘(ii) the phase out percentage under 

6 subparagraph (B). 

7 ‘‘(B) PHASE OUT PERCENTAGE.—The 

8 phase out percentage under this subparagraph 

9 is equal to— 

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

11 sold during calendar year 2029, 70 per12 cent, 

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

14 sold during calendar year 2030, 35 per15 cent, and 

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

17 sold after December 31, 2030, 0 percent. 

18 ‘‘(c) DEFINITIONS AND OTHER RULES.—In this sec19 tion— 

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

21 component’ means any property described in para22 graph (2). 

23 ‘‘(2) OTHER DEFINITIONS.— 

24 ‘‘(A) INTEGRATED MODULE.—The term 

25 ‘integrated module’ means a solar module proVerDate Sep 11 2014 03:59 Oct 28, 2021 Jkt 029200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S3091.IS S3091

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1 duced by a single manufacturer through the 

2 conversion of a photovoltaic wafer or other 

3 semiconductor material into an end product 

4 which is— 

5 ‘‘(i) suitable to generate electricity 

6 when exposed to sunlight, and 

7 ‘‘(ii) ready for installation without ad8 ditional manufacturing processes. 

9 ‘‘(B) PHOTOVOLTAIC CELL.—The term 

10 ‘photovoltaic cell’ means the smallest semicon11 ductor element of a solar module which per12 forms the immediate conversion of light into 

13 electricity. 

14 ‘‘(C) PHOTOVOLTAIC WAFER.—The term 

15 ‘photovoltaic wafer’ means a thin slice or sheet 

16 of semiconductor material of at least 240 

17 square centimeters produced by a single manu18 facturer— 

19 ‘‘(i) either— 

20 ‘‘(I) directly from molten solar 

21 grade polysilicon, or 

22 ‘‘(II) through formation of an 

23 ingot from molten polysilicon and sub24 sequent slicing, and 


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1 ‘‘(ii) which comprises the substrate of 

2 a photovoltaic cell. 

3 ‘‘(D) SOLAR GRADE POLYSILICON.—The 

4 term ‘solar grade polysilicon’ means silicon 

5 which is— 

6 ‘‘(i) suitable for use in photovoltaic 

7 manufacturing, and 

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

9 99.999999 percent silicon by mass. 

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

11 module’ means the connection and lamination 

12 of photovoltaic cells into an environmentally 

13 protected final assembly which is— 

14 ‘‘(i) suitable to generate electricity 

15 when exposed to sunlight, and 

16 ‘‘(ii) ready for installation without an 

17 additional manufacturing process. 

18 ‘‘(F) SOLAR TRACKER COMPONENTS.— 

19 ‘‘(i) IN GENERAL.—The term ‘solar 

20 tracker’ means a structural support ele21 ment which supports and mechanically 

22 moves solar panels to varying angles with 

23 respect to the position of the sun to opti24 mize solar panel output throughout the 

25 day. 


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1 ‘‘(ii) SOLAR TRACKER TORQUE

2 TUBE.—The term ‘solar tracker torque 

3 tube’ means a tubular structural steel sup4 port element of any cross-sectional shape 

5 which— 

6 ‘‘(I) is part of a solar tracker, 

7 ‘‘(II) may be assembled from in8 dividually manufactured segments, 

9 ‘‘(III) spans longitudinally be10 tween foundation posts, 

11 ‘‘(IV) supports a solar panel 

12 (with or without the use of additional 

13 support rails), and 

14 ‘‘(V) is rotated by means of a 

15 drive system. 

16 ‘‘(iii) SOLAR TRACKER LONGITUDINAL

17 PURLIN.—The term ‘solar tracker longitu18 dinal purlin’ means a structural steel sup19 port element which satisfies the conditions 

20 described in subclauses (I) through (V) of 

21 clause (ii). 

22 ‘‘(iv) SOLAR STRUCTURAL FAS23 TENER.—The term ‘solar structural fas24 tener’ means a component which is used to 

25 connect— 


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1 ‘‘(I) segments of a solar tracker 

2 torque tube or solar tracker longitu3 dinal purlin, 

4 ‘‘(II) the mechanical and drive 

5 system components of a solar tracker 

6 to the foundation of such solar track7 er, or 

8 ‘‘(III) solar tracker torque tubes 

9 or solar tracker longitudinal purlins to 

10 drive assemblies. 

11 ‘‘(G) INVERTERS.— 

12 ‘‘(i) IN GENERAL.—The term ‘in13 verter’ means an end product which is suit14 able to convert direct current electricity 

15 into alternating current electricity. 

16 ‘‘(ii) CENTRAL INVERTER.—The term 

17 ‘central inverter’ means an inverter which 

18 is suitable for large utility-scale systems 

19 and has a capacity which is greater than 

20 1,500 kilowatts (expressed on a per alter21 nating current watt basis). 

22 ‘‘(iii) COMMERCIAL INVERTER.—The 

23 term ‘commercial inverter’ means an in24 verter which— 


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1 ‘‘(I) is suitable for commercial 

2 applications, 

3 ‘‘(II) has a rated output of 208, 

4 480, or 600 volt three-phase power, 

5 and 

6 ‘‘(III) has a capacity which is not 

7 less than 20 kilowatts and not greater 

8 than 170 kilowatts (expressed on a 

9 per alternating current watt basis). 

10 ‘‘(iv) MICROINVERTER.—The term 

11 ‘microinverter’ means an inverter which— 

12 ‘‘(I) is suitable to connect with at 

13 least one integrated module or solar 

14 module, 

15 ‘‘(II) has a rated output of 120 

16 volt single-phase power, and 

17 ‘‘(III) has a capacity which is not 

18 greater than 650 watts (expressed on 

19 a per alternating current watt basis). 

20 ‘‘(v) RESIDENTIAL INVERTER.—The 

21 term ‘residential inverter’ means an in22 verter which— 

23 ‘‘(I) is suitable to connect with at 

24 least one integrated module or solar 

25 module for a residence, 


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1 ‘‘(II) has a rated output of 120 

2 volt single-phase power, and 

3 ‘‘(III) has a capacity which is not 

4 greater than 20 kilowatts (expressed 

5 on a per alternating current watt 

6 basis). 

7 ‘‘(vi) UTILITY-SCALE INVERTER.—The 

8 term ‘utility-scale inverter’ means an in9 verter which— 

10 ‘‘(I) is suitable for large utility11 scale systems, 

12 ‘‘(II) has a rated output of not 

13 less than 480 volt three-phase power, 

14 and 

15 ‘‘(III) has a capacity which is 

16 greater than 170 kilowatts and not 

17 greater than 1,500 kilowatts (ex18 pressed on a per alternating current 

19 watt basis). 

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

21 treated as related to each other if such persons 

22 would be treated as a single employer under the reg23 ulations prescribed under section 52(b). In the case 

24 of a corporation which is a member of an affiliated 

25 group of corporations filing a consolidated return, 


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1 such corporation shall be treated as selling compo2 nents to an unrelated person if such component is 

3 sold to such a person by another member of such 

4 group. 

5 ‘‘(4) ONLY PRODUCTION IN THE UNITED

6 STATES TAKEN INTO ACCOUNT.—Sales shall be 

7 taken into account under this section only with re8 spect to solar components the production of which is 

9 within— 

10 ‘‘(A) the United States (within the mean11 ing of section 638(1)), or 

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

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

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

15 TRUSTS.—Under regulations prescribed by the Sec16 retary, rules similar to the rules of subsection (d) of 

17 section 52 shall apply. 

18 ‘‘(d) REGISTRATION.— 

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

20 any person claiming tax benefits under the provi21 sions of this section to register with the Secretary at 

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

23 such terms and conditions, as the Secretary may by 

24 regulations prescribe. A registration under this subVerDate Sep 11 2014 03:59 Oct 28, 2021 Jkt 029200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S3091.IS S3091

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1 section may be used only in accordance with regula2 tions prescribed under this subsection. 

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

4 OWNERSHIP.—Under regulations prescribed by the 

5 Secretary, a person (other than a corporation the 

6 stock of which is regularly traded on an established 

7 securities market) shall be required to re-register 

8 under this subsection if after a transaction (or series 

9 of related transactions) more than 50 percent of 

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

11 held by persons other than persons (or persons re12 lated thereto) who held more than 50 percent of 

13 such interests or assets before the transaction (or 

14 series of related transactions). 

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

16 REGISTRATION.—Rules similar to the rules of sec17 tion 4222(c) shall apply to registration under this 

18 section. 

19 ‘‘(4) INFORMATION REPORTING.—The Sec20 retary may require— 

21 ‘‘(A) information reporting by any person 

22 registered under this subsection, and 

23 ‘‘(B) information reporting by such other 

24 persons as the Secretary deems necessary to 

25 carry out this section.’’. 


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1 (b) CONFORMING AMENDMENTS.— 

2 (1) Section 6211(b)(4)(A) of the Internal Rev3 enue Code of 1986 is amended by inserting ‘‘36C,’’ 

4 after ‘‘36B,’’. 

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

6 31, United States Code, is amended by inserting 

7 ‘‘36C,’’ after ‘‘36B,’’. 

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

9 IV of subchapter A of chapter 1 of the Internal Rev10 enue Code of 1986 is amended by inserting after the 

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

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

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

13 this section shall apply to components produced and sold 

14 after December 31, 2021. 

Æ 


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