Restoring Energy Market Freedom Act

To amend the Internal Revenue Code of 1986 to repeal certain credits. 1. Short title This Act may be cited as the Restoring Energy Market Freedom Act 2. Repeal of credits (a) In general Subpart D of part IV of subchapter A of chapter 1 (b) General business credit Section 38 of such Code is amended— (1) in subsection (b), by striking paragraphs (8), (21), (29), (36), (37), (38), and (39) and redesignating paragraphs (9)–(20), (22)–(28), (30)–(35), and (40)–(41) as paragraphs (8)–(19), (20)–(26), (27)–(32), and (33)–(34), respectively, and (2) in subsection (c)(4)(B), by striking clauses (iv), (v), and (x) and redesignating clauses (vi)–(ix) and (xi)–(xii) as clauses (iv)–(vii) and (viii)–(ix), respectively. (c) Conforming amendments (1) Section 25(e)(3) of such Code is amended by adding (as in effect immediately before its repeal) (2) Section 30C of such Code is amended— (A) in subsection (g)(2)(B), by inserting (as in effect immediately prior to its repeal) section 45(b)(7)(B) (B) in subsection (g)(3), by inserting (as in effect immediately prior to its repeal) section 45(b)(8) (3) Section 45K(b)(3) of such Code is amended by striking (within the meaning of section 48(a)(4)(C)) (within the meaning of section 48(a)(4)(C) as in effect immediately before its repeal) (4) Section 45K(g)(2) of such Code is amended by striking subparagraph (E). (5) Section 45L(g)(2)(B) of such Code is amended by inserting (as in effect immediately prior to its repeal) section 45(b)(7)(B) (6) Section 45Z of such Code is amended— (A) in subsection (c), by inserting (as in effect immediately prior to its repeal) pursuant to section 45Y(c) (B) by amending subsection (d)(4) to read as follows: (4) Qualified facility The term qualified facility , and (C) in subsection (f)— (i) in paragraph (5), by inserting (as in effect immediately prior to its repeal) section 45Y(g)(6) (ii) in paragraph (6), by inserting (as in effect immediately prior to its repeal) section 45(b)(7) (iii) in paragraph (7), by inserting (as in effect immediately prior to its repeal) section 45(b)(8) (7) Section 49(a)(C) of such Code is amended by adding and (8) Section 50(a)(2)(E) of such Code is amended by striking section 48(b) (9) Section 50(a) of such Code is amended— (A) in paragraph (2), by striking subparagraph (E), and (B) by striking paragraph (3). (10) Section 56A(c) of such Code is amended by striking paragraph (9). (11) Section 59A(b)(4) of such Code is amended by striking properly allocable to properly allocable to the low-income housing credit determined under section 42(a). (12) Section 142(o) of such Code is amended by inserting as in effect immediately prior to its repeal (as defined in section 45Q(e)(3) (13) Section 168(e)(3)(B) of such Code is amended— (A) in clause (v), by adding and (B) by striking clause (vi). (14) Section 179D(b) of such Code is amended— (A) in paragraph (4)(B), by inserting (as in effect immediately prior to its repeal) section 45(b)(7)(B) (B) in paragraph (5), by inserting (as in effect immediately prior to its repeal) section 45(b)(8) (15) Section 409 of such Code is amended— (A) in subsection (g), by striking section 48(n)(1) or section 48(n)(1) and (B) in subsection (m), by striking , or subparagraph (A) or (B) of section 48(n)(1) (16) Section 501(c)(12) of such Code is amended by striking subparagraph (I) and by redesignating subparagraph (J) as subparagraph (I). (17) Section 6417 of such Code is amended— (A) in subsection (b), by striking paragraphs (2), (3), (4), (5), (7), (8), (10), (11), and (12) and by redesignating paragraphs (6) and (9) as paragraphs (2) and (3), respectively, and (B) in subsection (d)— (i) by amending paragraph (1) to read as follows: (1) Applicable entity The term applicable entity (A) any organization exempt from the tax imposed by subtitle A, (B) any State or political subdivision thereof, (C) the Tennessee Valley Authority, (D) an Indian tribal government (as defined in section 30D(g)(9)), (E) any Alaska Native Corporation (as defined in section 3 of the Alaska Native Claims Settlement Act ( 43 U.S.C. 1602(m) (F) any corporation operating on a cooperative basis which is engaged in furnishing electric energy to persons in rural areas. , and (ii) by amending paragraph (3) to read as follows: (3) Elections (A) Due date Any election under subsection (a) shall be made not later than— (i) in the case of any government, or political subdivision, described in paragraph (1) and for which no return is required under section 6011 or 6033(a), such date as is determined appropriate by the Secretary, or (ii) in any other case, the due date (including extensions of time) for the return of tax for the taxable year for which the election is made, but in no event earlier than 180 days after the date of the enactment of this section. (B) Additional rules Any election under subsection (a), once made, shall be irrevocable and shall apply (except as otherwise provided in this paragraph) with respect to any credit for the taxable year for which the election is made. . (18) Section 6418(f)(1) of such Code is amended— (A) in subparagraph (A), by striking clauses (ii)–(vii) and (ix)–(xi) and by redesignating clause (viii) as clause (ii), (B) by striking subparagraph (B), and (C) by redesignating subparagraph (C) as subparagraph (B). (d) Effective date The amendments made by this subsection shall apply to taxable years beginning after December 31, 2022.

Summary: Restoring Energy Market Freedom Act This bill repeals specified business tax credits related to electricity produced from certain renewable resources and alternative energy and investment credits related to energy projects. Specifically, the bill repeals tax credits (i.e., money that can be offset against a tax liability) for businesses for (1) electricity produced from certain renewable resources (e.g., solar energy); (2) production of electricity from advanced nuclear power facilities; (3) carbon dioxide sequestration; (4) zero-emission nuclear power production; (5) production of clean hydrogen; (6) production and sale of specified components, such as solar energy components; and (7) production of clean electricity. The bill also repeals tax credits for investments related to certain energy projects, including credits for (1) geothermal energy property placed in service, (2) qualifying coal projects, (3) qualifying advanced energy projects, (4) advanced manufacturing investments, and (5) clean electricity investments.