American Clean Energy Investment Act of 2015

To amend the Internal Revenue Code of 1986 to permanently extend certain energy tax provisions. 1. Short title; table of contents (a) Short title This Act may be cited as the American Clean Energy Investment Act of 2015 (b) Table of contents The table of contents of this Act is as follows: Sec. 1. Short title; table of contents. TITLE I—Reducing carbon pollution and creating jobs by transitioning to sustainable energy sources Sec. 101. Permanent extension and modification of credits with respect to facilities producing energy from certain renewable resources. Sec. 102. Permanent extension and modification of energy credit. Sec. 103. Permanent extension of qualifying advanced energy project credit. Sec. 104. Promoting access to renewable energy and energy efficiency for tax-exempt organizations. TITLE II—Saving consumers and businesses money by promoting energy efficiency Sec. 201. Permanent extension of energy efficient commercial buildings deduction. Sec. 202. Permanent extension of new energy efficient home credit. Sec. 203. Permanent extension and refundability of credit for nonbusiness energy property. Sec. 204. Permanent extension, modification, and refundability of credit for residential energy efficient property. TITLE III—Helping Americans move beyond oil Sec. 301. Permanent extension, increase, and refundability of credit for qualified new plug in electric drive motor vehicles. Sec. 302. Permanent extension of credit for hybrid medium- and heavy-duty trucks. Sec. 303. Extension of second generation biofuel producer credit. Sec. 304. Extension of incentives for biodiesel and renewable diesel. Sec. 305. Extension of special allowance for second generation biofuel plant property. Sec. 306. Extension and modification of the alternative fuel vehicle refueling property credit. Sec. 307. Permanent extension of parity of exclusion from income for employer-provided mass transit and parking benefits. I Reducing carbon pollution and creating jobs by transitioning to sustainable energy sources 101. Permanent extension and modification of credits with respect to facilities producing energy from certain renewable resources (a) Extension for qualified facilities other than biomass facilities Section 45(d) (1) in paragraph (1), by striking , and the construction of which begins before January 1, 2015 (2) in paragraph (4), by striking and which and, in the case of a facility using solar energy, which is placed in service before January 1, 2006. (3) in paragraph (6), by striking and the construction of which begins before January 1, 2015 (4) in paragraph (7), by striking and the construction of which begins before January 1, 2015 (5) in paragraph (9)(A)— (A) in clause (i), by striking and before January 1, 2015 (B) in clause (ii), by striking and the construction of which begins before January 1, 2015 (6) in paragraph (11)(B), by striking and the construction of which begins before January 1, 2015 (b) Extension of election To treat qualified facilities other than biomass facilities as energy property (1) In general Clause (ii) of section 48(a)(5)(C) and the construction of which begins before January 1, 2015 (2) Exclusion of biomass facilities Clause (i) of section 48(a)(5)(C) is amended by striking (2), (3), (c) Limitation on credit for wind facilities Section 45(b) (5) Limitation for wind facilities (A) In general In the case of any qualified facility described in subsection (d)(1) the construction of which begins after calendar year after 2021, subsection (a) shall be applied by substituting the applicable amount 1.5 cents (B) Applicable amount For purposes of subparagraph (A), the applicable amount shall be determined as follows: In the case of a facility the construction of which begins— The applicable amount is— in 2022 2.0 cents in 2023 1.7 cents in 2024 1.4 cents after 2024 1.1 cents. (C) Inflation adjustment The applicable amount determined under subparagraph (B) for any facility shall be adjusted by the inflation adjustment factor for the calendar year in which the sale occurs. If any amount as increased under the preceding sentence is not a multiple of 0.1 cent, such amount shall be rounded to the nearest multiple of 0.1 cent. . (d) Effective dates The amendments made by this section shall take effect on January 1, 2015. 102. Permanent extension and modification of energy credit (a) In general Section 48 (1) in subsection (a)— (A) in paragraph (2)(A)(i)(II), by striking but only with respect to periods ending before January 1, 2017 (B) in paragraph (3)(A)— (i) in clause (ii), by striking but only with respect to periods ending before January 1, 2017 (ii) in clause (vii), by striking , but only with respect to periods ending before January 1, 2017 (2) in subsection (c)— (A) in paragraph (1), by striking subparagraph (D), (B) in paragraph (2), by striking subparagraph (D), (C) in paragraph (3)(A), by inserting and , and (D) in paragraph (4), by striking subparagraph (C). (b) Extension of 30-Percent investment credit for offshore wind energy facilities (1) In general (A) In general Clause (i) of section 48(a)(2)(A) and (V) qualified offshore wind energy property, and . (B) Qualified offshore wind energy property defined Subsection (c) of section 48 of such Code is amended by adding at the end the following new paragraph: (5) Qualified offshore wind energy property (A) In general The term qualified offshore wind energy property (B) Qualified offshore wind facility For purposes of subparagraph (A), the term qualified offshore wind facility (i) uses wind to generate electricity, and (ii) is located in— (I) the inland navigable waters of the United States, including the Great Lakes, or (II) the coastal waters of the United States, including the territorial seas of the United States, the exclusive economic zone of the United States, and the outer Continental Shelf of the United States. . (C) Conforming amendment Subparagraph (A) of section 48(a)(3) of such Code is amended by striking or or (viii) qualified offshore wind energy property, . (D) Coordination with credit for other wind facilities Section 48(a)(5)(C) of such Code is amended by adding at the end the following new sentence: Such term shall not include any facility which is a qualified offshore wind facility (as defined in subsection (c)(5)). (c) Limitation on credit for onshore wind facilities Paragraph (5) of section 48(a) (E) Limitation for onshore wind facilities In the case of a qualified investment credit facility described in section 45(d)(1), the credit otherwise determined under the section with respect to qualified property which is part of such facility shall not exceed an amount equal to $200 for each kilowatt hour of capacity of such facility. . (d) Effective date The amendments made by this section shall apply to periods after December 31, 2015, under rules similar to the rules of section 48(m) 103. Permanent extension of qualifying advanced energy project credit (a) In general Section 48C(d)(1)(B) (1) by inserting in any calendar year allocated under the program (2) by striking $2,300,000,000 $1,000,000,000 (b) Conforming amendments (1) Section 48C(d)(2)(A) of such Code is amended by striking during the 2-year period beginning on the date the Secretary establishes the program under paragraph (1) (2) Section 48C(d)(4) of such Code is amended by striking subparagraphs (A) and (B) and inserting the following: (A) Review Not later than 4 years after the close of any calendar year for which allocations were made under this section, the Secretary shall review the credits allocated under this section for such calendar year. (B) Redistribution The Secretary may reallocate credits awarded under this section for a calendar year if the Secretary determines that any certification made pursuant to paragraph (2) has been revoked pursuant to paragraph (2)(B) because the project subject to the certification has been delayed as a result of third-party opposition or litigation to the proposed project. . (3) Section 48C(d)(4)(C) of such Code is amended by striking the Secretary is authorized to conduct an additional program for applications for certification notwithstanding paragraph (2)(A), the Secretary is authorized to accept additional applications for certification with respect to such amounts. 104. Promoting access to renewable energy and energy efficiency for tax-exempt organizations (a) In general Upon application, the Secretary of the Treasury shall, subject to the requirements of this section, provide a grant to each eligible entity who places in service specified energy property to reimburse such person for a portion of the expense of such property as provided in subsection (b). No grant shall be made under this section with respect to any property unless such property is placed in service after 2015. (b) Grant Amount (1) In general The amount of the grant under subsection (a) with respect to any specified energy property shall be the applicable percentage of the basis of such property. (2) Applicable percentage For purposes of paragraph (1), the term applicable percentage (A) 30 percent in the case of any property described in paragraphs (1) through (4) of subsection (d), and (B) 10 percent in the case of any other property. (3) Dollar limitations In the case of property described in paragraph (1), (2), (6), or (7) of subsection (d), the amount of any grant under this section with respect to such property shall not exceed the limitation described in section 48(a)(5)(E), 48(c)(1)(B), 48(c)(2)(B), or 48(c)(3)(B) of the Internal Revenue Code of 1986, respectively, with respect to such property. (c) Time for Payment of Grant The Secretary of the Treasury shall make payment of any grant under subsection (a) during the 60-day period beginning on the later of— (1) the date of the application for such grant, or (2) the date the specified energy property for which the grant is being made is placed in service. (d) Specified Energy Property For purposes of this section, the term specified energy property (1) Qualified facilities Any qualified property (as defined in section 48(a)(5)(D) (2) Qualified fuel cell property Any qualified fuel cell property (as defined in section 48(c)(1) of such Code). (3) Solar property Any property described in clause (i) or (ii) of section 48(a)(3)(A) of such Code. (4) Qualified small wind energy property Any qualified small wind energy property (as defined in section 48(c)(4) of such Code). (5) Geothermal property Any property described in clause (iii) of section 48(a)(3)(A) of such Code. (6) Qualified microturbine property Any qualified microturbine property (as defined in section 48(c)(2) of such Code). (7) Combined heat and power system property Any combined heat and power system property (as defined in section 48(c)(3) of such Code). (8) Geothermal heat pump property Any property described in clause (vii) of section 48(a)(3)(A) of such Code. Such term shall not include any property unless depreciation (or amortization in lieu of depreciation) is allowable with respect to such property. (e) Application of certain rules In making grants under this section, the Secretary of the Treasury shall apply rules similar to the rules of section 50 (f) Eligible entity For purposes of this section, the term eligible entity section 501(c) (g) Definitions Terms used in this section which are also used in section 45 or 48 of the Internal Revenue Code of 1986 shall have the same meaning for purposes of this section as when used in such section 45 or 48. Any reference in this section to the Secretary of the Treasury shall be treated as including the Secretary's delegate. (h) Appropriations There is hereby appropriated to the Secretary of the Treasury such sums as may be necessary to carry out this section. II Saving consumers and businesses money by promoting energy efficiency 201. Permanent extension of energy efficient commercial buildings deduction (a) In general Section 179D (b) Update of standard (1) In general Section 179D Standard 90.1-2001 the applicable ASHRAE standard (2) Applicable ASHRAE standard Section 179D(c)(2) of such Code is amended to read as follows: (2) Applicable ASHRAE standard The term applicable ASHRAE standard (A) Standard 90.1–2013 of the American Society of Heating, Refrigerating, and Air Conditioning Engineers and the Illuminating Engineering Society of North America, or (B) in the case of any subsequent standard adopted by the American Society of Heating, Refrigerating, and Air Conditioning Engineers which supersedes the standard described in subparagraph (A), such subsequent standard. . (c) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2014. 202. Permanent extension of new energy efficient home credit (a) In general Section 45L (b) Update of standard (1) In general Section 45L the standards of chapter 4 of the 2006 International Energy Conservation Code, as such Code (including supplements) is in effect on January 1, 2006 the applicable standards (2) Applicable standards Section 45L of such Code, as amended by subsection (a), is amended by adding at the end the following new subsection: (h) Applicable standards For purposes of this section, the term applicable standards . (c) Effective date The amendments made by this section shall apply to homes acquired after December 31, 2014. 203. Permanent extension and refundability of credit for nonbusiness energy property (a) Permanent extension Section 25C (b) Update of standards (1) Qualified energy efficiency improvements (A) In general Section 25C(c)(1) the prescriptive criteria for such component established by the 2009 International Energy Conservation Code, as such Code (including supplements) is in effect on the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009 the applicable IECC standards (B) Applicable IECC standards Section 25C(c) of such Code is amended by adding at the end the following new paragraph: (4) Applicable IECC standards For purposes of this section, the term applicable IECC standards . (2) Energy efficient property (A) Heat pumps and air conditioners (i) In general Section 25C(d)(3) the Consortium for Energy Efficiency, as in effect on January 1, 2009 the applicable CEE standards (ii) Applicable CEE standards Section 25C(d) of such Code is amended by adding at the end the following new paragraph: (7) Applicable CEE standards For purposes of this section, the term applicable CEE standards . (B) Other energy efficient building property Paragraph (3) of section 25C(d) of such Code is amended— (i) in subparagraph (A), by inserting and meets Energy Star program certification requirements as of the first day of the taxable year in which the property placed in service procedure (ii) in subparagraph (C), by inserting and meets Energy Star program certification requirements as of the first day of the taxable year in which the property placed in service 90 percent (iii) in subparagraph (E)— (I) by striking and which which (II) by inserting , and which meets Energy Star program certification requirements as of the first day of the taxable year in which the property placed in service 75 percent (C) Furnaces and hot water boilers Paragraph (4) of section 25C(d) of such Code is amended by inserting and meets Energy Star program certification requirements as of the first day of the taxable year in which the property placed in service 95 (D) Advanced main air circulating fans Paragraph (5) of section 25C(d) of such Code is amended— (i) by striking and which , which (ii) by inserting , and which meets Energy Star program certification requirements as of the first day of the taxable year in which the property placed in service test procedures) (c) Credit made refundable (1) Credit moved to subpart relating to refundable credits The Internal Revenue Code of 1986 is amended— (A) by redesignating section 25C as section 36C, and (B) by moving section 36C (as amended by subsections (a) and (b) and as redesignated by subparagraph (A)) from subpart A of part IV of subchapter A of chapter 1 to the location immediately before section 37 in subpart C of part IV of subchapter A of chapter 1. (2) Conforming amendments (A) Section 1016(a)(33) of such Code is amended— (i) by striking section 25C(f) section 36C(f) (ii) by striking under section 25C under section 36C (B) The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by striking the item relating to section 25C. (C) Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting 36C, 36B, (D) The table of sections for subpart C of part IV of subchapter A of chapter 1 36C. Nonbusiness energy property. . (d) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2014. 204. Permanent extension, modification, and refundability of credit for residential energy efficient property (a) Permanent extension Section 25D (b) Credit allowed for energy storage property (1) In general Section 25D(a) (6) 30 percent of the qualified energy storage property expenditures made by the taxpayer during the taxable year. . (2) Qualified energy storage property expenditures Section 25D(d) of such Code is amended by adding at the end the following new paragraph: (6) Qualified energy storage property expenditure The term qualified energy storage property expenditure (A) which is— (i) located in a dwelling unit located in the United States and used by the taxpayer as a residence, (ii) directly connected to the electrical grid, and (iii) designed to receive electrical energy, to store such energy, and— (I) to convert such energy to electricity and deliver such electricity for sale, or (II) to use such energy to provide improved reliability or economic benefits to the grid, or (B) which is— (i) part of a dwelling unit located in the United States which is— (I) connected to the electrical grid, and (II) used by the taxpayer as a residence, (ii) connected to— (I) qualified solar electric property, or (II) qualified small wind energy property, and (iii) designed to receive electrical energy, store such energy, and to convert such energy to electricity for use by the taxpayer. . (c) Credit allowed for biomass fuel property (1) In general Section 25D(a) (7) 30 percent of the qualified biomass fuel property expenditures made by the taxpayer during the taxable year. . (2) Qualified energy storage property expenditures Section 25D(d) of such Code, as amended by subsection (b), is amended by adding at the end the following new paragraph: (7) Qualified biomass fuel property expenditure (A) In general The term qualified biomass fuel property expenditure (i) which uses the burning of biomass fuel to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit, and (ii) which has a thermal efficiency rating of at least 75 percent (measured by the higher heating value of the fuel) and meets Energy Star program certification requirements as of the first day of the taxable year in which the property placed in service. (B) Biomass fuel For purposes of this section, the term biomass fuel . (3) Coordination with credit for nonbusiness energy property (A) In general Section 25D(e) (9) No double benefit No credit shall be allowed under this section with respect to any property which is described in subsection (d)(7)(A) and for which a credit is allowed under section 25C. (10) Election A taxpayer may elect not to have this section apply with respect to any expenditure described in subsection (a). . (B) Application of election to credit for nonbusiness energy property Section 25C(e)(1) is amended by striking and (8) (8), and (10) (d) Credit made refundable (1) Credit moved to subpart relating to refundable credits The Internal Revenue Code of 1986 is amended— (A) by redesignating section 25D as section 36D, and (B) by moving section 36D (as amended by subsections (a) and (b) and as redesignated by subparagraph (A)) from subpart A of part IV of subchapter A of chapter 1 to the location immediately before section 37 in subpart C of part IV of subchapter A of chapter 1 (as amended by section 203). (2) Conforming amendments (A) Section 36C(e)(1) 25D(e) 36D(e) (B) Section 45(d)(1) of such Code is amended by striking section 25D section 36D (C) Section 1016(a)(34) of such Code is amended— (i) by striking section 25D(f) section 36D(f) (ii) by striking under section 25D under section 36D (D) The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by striking the item relating to section 25D. (E) Paragraph (2) of section 1324(b) of title 31, United States Code, as amended by this Act, is amended by inserting 36D, 36C, (F) The table of sections for subpart C of part IV of subchapter A of chapter 1 36D. Residential energy efficient property. . (e) Effective date The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act. III Helping Americans move beyond oil 301. Permanent extension, increase, and refundability of credit for qualified new plug in electric drive motor vehicles (a) Repeal of phaseout Section 30D (b) Extension for 2- and 3-Wheeled vehicles Section 30D(g)(3)(E) and before January 1, 2014 (c) Increase in dollar limitation for battery capacity Paragraph (3) of section 30D(b) $5,000 $7,500 (d) Personal credit made refundable (1) In general Section 30D(c)(2) subpart A subpart C (2) Technical amendment Paragraph (2) of section 1324(b) of title 31, United States Code, as amended by this Act, is amended by inserting 30D(c)(2), 36D, (e) Effective date The amendments made by this section shall apply to vehicles acquired after December 31, 2014. 302. Permanent extension of credit for hybrid medium- and heavy-duty trucks (a) In general Section 30B(k) (1) by striking after (2) by inserting after December (3) in paragraph (3), by inserting and before the date of the enactment of the American Clean Energy Investment Act of 2015 December 31, 2009, (b) Effective date The amendments made by this section shall apply to property purchased after the date of the enactment of this Act. 303. Extension of second generation biofuel producer credit (a) In general Clause (i) of section 40(b)(6)(J) January 1, 2015 January 1, 2023 (b) Effective date The amendment made by this subsection shall apply to qualified second generation biofuel production after December 31, 2014. 304. Extension and reform of biodiesel tax incentives (a) Income tax credit (1) Extension (A) Credits for biodiesel and renewable diesel used as fuel Subsection (g) of section 40A is amended by striking December 31, 2014 December 31, 2022 (B) Effective date The amendment made by this paragraph shall apply to fuel sold or used after December 31, 2014. (2) Reform of income tax credit (A) In general So much of section 40A as precedes subsection (c) is amended to read as follows: 40A. Biodiesel fuels credit (a) In general For purposes of section 38, in the case of an eligible taxpayer, the biodiesel fuels credit determined under this section for the taxable year is $1.00 for each gallon of biodiesel produced by the taxpayer which during the taxable year— (1) is sold by the producer of such biodiesel to another person— (A) for use by such other person’s trade or business as a fuel or in the production of a biodiesel mixture (other than casual off-farm production), or (B) who sells such biodiesel at retail to another person and places such biodiesel in the fuel tank of such other person, or (2) is used by such producer for any purpose described in paragraph (1). (b) Increased credit for small producers (1) In general In the case of any eligible small biodiesel producer, subsection (a) shall be applied by increasing the dollar amount contained therein by 10 cents. (2) Limitation Paragraph (1) shall only apply with respect to the first 15,000,000 gallons of biodiesel produced by any eligible small biodiesel producer during any taxable year. . (B) Definitions and special rules Section 40A(d) is amended by striking all that follows paragraph (1) and inserting the following: (2) Eligible taxpayer (A) In general The term eligible taxpayer (B) Special rule for eligible discretionary blenders For purposes of this section (other than subsection (b)), an eligible discretionary blender shall be treated as the producer of any gallon of biodiesel which is used to make a qualified biodiesel mixture if— (i) the producer of such biodiesel (determined without regard to this subparagraph)— (I) did not pay the tax imposed under section 4081 with respect to such gallon, and (II) assigns the credit allowed under this section to the eligible discretionary blender in such form and manner as provided by the Secretary, and (ii) such eligible discretionary blender pays the tax imposed under section 4081 with respect to such gallon. For purposes of the preceding sentence, an eligible discretionary blender shall be treated as producing a gallon of biodiesel in the taxable year in which the sale or use of the qualified biodiesel mixture occurs. (C) Eligible discretionary blender For purposes of subparagraph (B), the term eligible discretionary blender (i) is registered under section 4101 as a blender of qualified biodiesel mixtures, and (ii) has used 10,000,000 or more gallons of biodiesel in the production of qualified biodiesel mixtures in the preceding taxable year. (3) Biodiesel mixture; qualified biodiesel mixture (A) Biodiesel mixture The term biodiesel mixture (B) Qualified biodiesel mixture (i) In general The term qualified biodiesel mixture (I) sold by such eligible discretionary blender to any person for use as a fuel, or (II) used by such eligible discretionary blender as a fuel. (ii) Sale or use must be in trade or business, etc A biodiesel mixture shall not be treated as a qualified biodiesel mixture unless the sale or use described in clause (i) is in a trade or business of the eligible discretionary blender. (4) Biodiesel not used for a qualified purpose If— (A) any credit was determined with respect to any biodiesel under this section, and (B) any person uses such biodiesel for a purpose not described in subsection (a), then there is hereby imposed on such person a tax equal to the product of the rate applicable under subsection (a) and the number of gallons of such biodiesel. (5) Pass-thru in the case of estates and trusts Under regulations prescribed by the Secretary, rules similar to the rules of subsection (d) of section 52 shall apply. (6) Limitation to biodiesel with connection to the united states No credit shall be determined under subsection (a) with respect to biodiesel unless such biodiesel is produced in the United States. For purposes of this paragraph, the term United States . (C) Rules for small biodiesel producers (i) In general Section 40A(e) is amended— (I) by striking agri-biodiesel biodiesel (II) by striking subsection (b)(4)(C) subsection (b)(2) (III) by striking subsection (a)(3) subsection (b) (ii) The heading for subsection (e) of section 40A is amended by striking agri-biodiesel biodiesel (iii) The headings for paragraphs (1) and (6) of section 40A(e) are each amended by striking agri-biodiesel biodiesel (D) Conforming amendments related to renewable diesel Section 40A(f) is amended— (i) by striking Subsection (b)(4) Subsection (b) (ii) by striking paragraph (4) and inserting the following: (4) Certain aviation fuel Except as provided in the last 3 sentences of paragraph (2), the term renewable diesel . (E) Registration of eligible discretionary blenders Section 4101(a)(1) is amended— (i) by striking and every person producing second generation biofuel (ii) by inserting , and every person producing qualified biodiesel mixtures (as defined in section 40A(d)(3)) section 40(b)(6)(E)) in excess of 10,000,000 gallons per year (F) Clerical amendment The table of sections for subpart D of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 40A and inserting the following new item: Sec. 40A. Biodiesel fuels credit. . (G) Effective date The amendments made by this paragraph shall apply to fuel sold or used after December 31, 2015. (b) Excise tax incentives (1) Extension (A) In general Paragraph (6) of section 6426(c) is amended by striking December 31, 2014 December 31, 2022 (B) Payments Subparagraph (B) of section 6427(e)(6) is amended by striking December 31, 2014 December 31, 2022 (C) Effective date The amendments made by this paragraph shall apply to fuel sold or used after December 31, 2014. (D) Special rule for certain periods during 2015 Notwithstanding any other provision of law, in the case of any biodiesel mixture credit properly determined under section 6426(c) (2) Reform of excise tax credit (A) In general Subsection (c) of section 6426 is amended— (i) by striking all that precedes paragraph (6) and inserting the following: (c) Biodiesel production credit (1) In general For purposes of this section, in the case of an eligible taxpayer, the biodiesel production credit is $1.00 for each gallon of biodiesel produced by the taxpayer and which— (A) is sold by such producer to another person— (i) for use by such other person’s trade or business as a fuel or in the production of a biodiesel mixture (other than casual off-farm production), or (ii) who sells such biodiesel at retail to another person and places such biodiesel in the fuel tank of such other person, or (B) is used by such producer for any purpose described in subparagraph (A). (2) Special rule for eligible discretionary blenders For purposes of this subsection and section 6427(e)(3), an eligible discretionary blender shall be treated as the producer of any gallon of biodiesel which is used to make a qualified biodiesel mixture if— (A) the producer of such biodiesel (determined without regard to this subparagraph)— (i) did not pay the tax imposed under section 4081 with respect to such gallon, and (ii) assigns the credit allowed under this section to the eligible discretionary blender in such form and manner as provided by the Secretary, and (B) such eligible discretionary blender pays the tax imposed under section 4081 with respect to such gallon. For purposes of the preceding sentence, an eligible discretionary blender shall not be treated as producing a gallon of biodiesel before the date on which the sale or use of the qualified biodiesel mixture occurs. (3) Definitions Any term used in this subsection which is also used in section 40A shall have the meaning given such term by section 40A. , and (ii) by redesignating paragraph (6), as amended by paragraph (1)(A), as paragraph (4). (B) Producer registration requirement Subsection (a) of section 6426 is amended by striking subsections (d) and (e) subsections (c), (d), and (e) (C) Recapture (i) In general Subsection (f) of section 6426 is amended— (I) by striking or biodiesel (II) by striking or biodiesel mixture (III) by redesignating paragraph (2) as paragraph (3) and by inserting after paragraph (1) the following new paragraph: (2) Biodiesel If any credit was determined under this section or paid pursuant to section 6427(e) with respect to the production of any biodiesel and any person uses such biodiesel for a purpose not described in subsection (c)(1), then there is hereby imposed on such person a tax equal to $1.00 for each gallon of such biodiesel. . (ii) Conforming amendments (I) Paragraph (3) of section 6426(f), as redesignated by clause (i)(III), is amended by inserting or (2) paragraph (1) (II) The heading for paragraph (1) of section 6426(f) is amended by striking Imposition of tax In general (D) Limitation Section 6426(i) is amended— (i) in paragraph (2)— (I) by striking biodiesel or (II) by striking Biodiesel and (ii) by inserting after paragraph (2) the following new paragraph: (3) Biodiesel No credit shall be determined under this section with respect to biodiesel unless such biodiesel is produced in the United States. . (E) Clerical amendments (i) The heading of section 6426 is amended by striking alcohol fuel, biodiesel, and alternative fuel mixtures alcohol fuel mixtures, biodiesel production, and alternative fuel mixtures (ii) The item relating to section 6426 in the table of sections for subchapter B of chapter 65 is amended by striking alcohol fuel, biodiesel, and alternative fuel mixtures alcohol fuel mixtures, biodiesel production, and alternative fuel mixtures (F) Effective date The amendments made by this paragraph shall apply to fuel sold or used after December 31, 2015. (3) Reform of excise payments of credit (A) In general Subsection (e) of section 6427, as amended by paragraph (1)(B), is amended— (i) by striking or the biodiesel mixture credit (ii) by redesignating paragraphs (3) through (6) as paragraphs (4) through (7), respectively, and by inserting after paragraph (2) the following new paragraph: (3) Biodiesel production credit If any person produces biodiesel and sells or uses such biodiesel as provided in section 6426(c)(1), the Secretary shall pay (without interest) to such person an amount equal to the biodiesel production credit with respect to such biodiesel. , (iii) by striking paragraph (1) or (2) paragraph (1), (2), or (3) (iv) by striking alternative fuel fuel (v) by striking biodiesel mixture (as defined in section 6426(c)(3)) biodiesel (within the meaning of section 40A) (B) Effective date The amendments made by this paragraph shall apply to fuel sold or used after December 31, 2015. (c) Treatment of biodiesel as a taxable fuel (1) In general (A) Taxable fuel includes biodiesel Paragraph (1) of section 4083(a) is amended by striking and , and (D) biodiesel. . (B) Biodiesel defined Subsection (a) of section 4083 is amended by adding at the end the following new paragraph: (4) Biodiesel The term biodiesel . (2) Biodiesel production facilities treated as refineries (A) In general Subsection (a) of section 4081 is amended by adding at the end the following new paragraph: (5) Biodiesel production facilities and blending facilities treated as refineries For purposes of this part— (A) any facility which is used to produce biodiesel, and (B) any biodiesel blending facility, shall be treated as a refinery with respect to biodiesel. . (B) Biodiesel blending facility defined Section 4083 is amended by adding at the end the following new subsection: (e) Biodiesel blending facility For purposes of this subpart, the term biodiesel blending facility . (C) Bulk transfers Subparagraph (B) of section 4081(a)(1) is amended by adding at the end the following new clause: (iii) Special rules for biodiesel The tax imposed by this paragraph shall not apply to the removal or entry of biodiesel to any refinery or terminal if the person removing or entering the biodiesel and the operator of the refinery or terminal are registered under section 4101. . (3) Rate of tax Subparagraph (A)(iii) of section 4081(a)(2) is amended by striking diesel fuel or kerosene diesel fuel, kerosene, or biodiesel (4) Exemptions (A) In general Section 4082 is amended by striking diesel fuel and kerosene diesel fuel, kerosene, and biodiesel (B) Conforming amendment Subparagraph (A) of section 4082(d)(1) is amended by inserting biodiesel, diesel fuel, (5) Other conforming amendments (A) The heading for paragraph (1) of section 4041(a) is amended by striking diesel fuel and kerosene diesel fuel, kerosene, and biodiesel (B) Paragraph (2) of section 6416(b) is amended by striking diesel fuel or kerosene diesel fuel, kerosene, or biodiesel (C) Section 6427(l) is amended— (i) by striking diesel fuel or kerosene diesel fuel, kerosene, or biodiesel (ii) by striking diesel fuel and kerosene diesel fuel, kerosene, and biodiesel (iii) by striking diesel fuel or kerosene diesel fuel, kerosene, or biodiesel (D) Section 6715(c)(1) is amended by striking diesel fuel or kerosene diesel fuel, kerosene, or biodiesel (6) Effective date The amendments made by this subsection shall apply to biodiesel sold or used after December 31, 2015. 305. Extension of special allowance for second generation biofuel plant property (a) In general Subparagraph (D) of section 168(l)(2) (D) the construction of which begins before January 1, 2023. . (b) Effective date The amendment made by this section shall apply to property placed in service after December 31, 2014. 306. Extension and modification of the alternative fuel vehicle refueling property credit (a) In general Section 30C (1) by amending subsection (c) to read as follows: (c) Qualified alternative fuel vehicle refueling property For purposes of this section, the term qualified alternative fuel vehicle refueling property (1) A pump or blender pump that is capable of dispensing a fuel mixture that is at least 50 percent ethanol. (2) A pump or blender pump that is capable of dispensing a fuel mixture that is at least 50 percent biodiesel or renewable diesel. (3) A pump that is capable of dispensing a biofuel and petroleum blend, at least 50 percent of which is a renewable fuel (as defined in section 211(o)(1) of the Clean Air Act ( 42 U.S.C. 7545(o)(1) (4) A direct current electric charging station with a power rating of at least 40 kilowatts. (5) An alternating current electric charging station with a voltage rating between 208 volts and 240 volts and a power rating between 2.5 kilowatts and 20 kilowatts. (6) Hydrogen fuel-cell refilling infrastructure. (7) Any other infrastructure that the Administrator may prescribe by regulation that is capable of dispensing a fuel that is not less than a 50-percent mixture of a renewable fuel (as defined in section 211(o)(1) of the Clean Air Act ( 42 U.S.C. 7545(o)(1) , (2) in subsection (e)— (A) by striking paragraphs (5) through (7), and (B) by inserting after paragraph (4) the following new paragraph: (5) Recapture rules The Secretary shall, by regulations, provide for recapturing the benefit of any credit allowable under subsection (a) with respect to any property which ceases to be property eligible for such credit. , and (3) by amending subsection (g) to read as follows: (g) Termination This section shall not apply to any property placed in service after December 31, 2022. . (4) Effective date The amendments made by this section shall apply to property placed in service after December 31, 2014. 307. Permanent extension of parity of exclusion from income for employer-provided mass transit and parking benefits (a) In general Section 132(f)(2) (1) by striking $100 $250 (2) by striking $175 $250 (3) by striking the last sentence. (b) Inflation adjustment conforming amendments Subparagraph (A) of section 132(f)(6) is amended— (1) by striking the last sentence, (2) by striking 1999 2015 (3) by striking 1998 2014 (c) Effective date The amendments made by this section shall apply to taxable years beginning after 2014.

Summary: American Clean Energy Investment Act of 2015 This bill amends the Internal Revenue Code to extend and modify tax provisions relating to energy. TITLE I--REDUCING CARBON POLLUTION AND CREATING JOBS BY TRANSITIONING TO SUSTAINABLE ENERGY SOURCES This title makes permanent: (1) the tax credit for producing electricity from renewable resources, (2) the energy tax credit, and (3) the qualifying advanced energy project credit. The Department of the Treasury must provide grants to tax-exempt organizations for investment in specified energy property, including qualified fuel cell property, solar property, qualified small wind energy property, geothermal property, qualified microturbine property, combined heat and power system property, and geothermal heat pump property. The title expands the energy tax credit to allow a 30% credit for investment in offshore wind energy facilities. TITLE II--SAVING CONSUMERS AND BUSINESSES MONEY BY PROMOTING ENERGY EFFICIENCY This title makes permanent the tax deduction for energy efficient commercial buildings and updates the energy standard applicable to such buildings. Also made permanent are the tax credits for new energy efficient homes, for nonbusiness energy property, and for residential energy efficient property. TITLE III--HELPING AMERICANS MOVE BEYOND OIL This title: (1) eliminates the phaseout of the applicable percentage for the tax credit for investment in new qualified plug-in electric drive motor vehicles, (2) makes permanent the credit for two and three-wheeled plug-in electric vehicles, (3) increases the dollar limitation on the battery capacity for such vehicles from $5,000 to $7,500, and (4) makes the personal tax credit allowed for investment in such vehicles refundable. The title makes permanent: (1) the tax credit for investment in hybrid medium and heavy-duty trucks, and (2) the parity at $250 of the tax exclusion for employer-provided mass transit and parking benefits. The title extends through 2022: (1) the second generation biofuel producer credit, and (2) the income and excise tax credits for biodiesel and renewable diesel, (3) the special depreciation allowance for second generation biofuel plant property, and (4) the tax credit for alternative vehicle refueling property expenditures. New income and excise tax credits at $1.00 per gallon are allowed for the production of biodiesel and an increased credit is allowed for small biodiesel producers.