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locality as most recently determined by the Sec-
retary of Labor, in accordance with subchapter 
IV of chapter 31 of title 40, United States 
Code. 
‘‘(B) CORRECTION AND PENALTY RELATED 
TO
FAILURE
TO
SATISFY
WAGE
REQUIRE-
MENTS.—Rules similar to the rules of clauses 
(i) through (iv) of section 45(b)(7)(B) shall 
apply. 
‘‘(3) REGULATIONS AND GUIDANCE.—The Sec-
retary shall issue such regulations or other guidance 
as the Secretary determines necessary or appropriate 
to carry out the purposes of this subsection, includ-
ing regulations or other guidance which provides for 
requirements for recordkeeping or information re-
porting for purposes of establishing the requirements 
of this subsection. 
‘‘(e) TERMINATION.—This section shall not apply to 
taxable years beginning after December 31, 2027.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 38(b) of the Internal Revenue Code 
of 1986 is amended— 
(A) in paragraph (32), by striking ‘‘plus’’ 
at the end, 
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(B) in paragraph (33), by striking the pe-
riod at the end and inserting ‘‘, plus’’, and 
(C) by adding at the end the following new 
paragraph: 
‘‘(34) the zero-emission nuclear power produc-
tion credit determined under section 45W(a).’’. 
(2) The table of sections for subpart D of part 
IV of subchapter A of chapter 1 of such Code is 
amended by adding at the end the following new 
item: 
‘‘Sec. 45W. Zero-emission nuclear power production credit.’’. 
(c) ELECTIVE
PAYMENT
OF
CREDIT.—Section 
6417(b), as amended by the preceding provisions of this 
Act, is amended by adding at the end the following new 
paragraph: 
‘‘(7) The zero-emission nuclear power produc-
tion credit determined under section 45W.’’. 
(d) EFFECTIVE DATE.—This section shall apply to 
electricity produced and sold after December 31, 2021, in 
taxable years beginning after such date. 
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PART 2—RENEWABLE FUELS 
SEC. 136201. EXTENSION OF INCENTIVES FOR BIODIESEL, 
RENEWABLE 
DIESEL 
AND 
ALTERNATIVE 
FUELS. 
(a) BIODIESEL AND RENEWABLE DIESEL CREDIT.— 
Section 40A(g) is amended by striking ‘‘December 31, 
2022’’ and inserting ‘‘December 31, 2026’’. 
(b) BIODIESEL MIXTURE CREDIT.— 
(1) 
IN
GENERAL.—Section 
6426(c)(6) 
is 
amended by striking ‘‘December 31, 2022’’ and in-
serting ‘‘December 31, 2026’’. 
(2) FUELS
NOT
USED
FOR
TAXABLE
PUR-
POSES.—Section 6427(e)(6)(B) is amended by strik-
ing ‘‘December 31, 2022’’ and inserting ‘‘December 
31, 2026’’. 
(c) 
ALTERNATIVE
FUEL
CREDIT.—Section 
6426(d)(5) is amended by striking ‘‘December 31, 2021’’ 
and inserting ‘‘December 31, 2026’’. 
(d) ALTERNATIVE FUEL MIXTURE CREDIT.—Section 
6426(e)(3) is amended by striking ‘‘December 31, 2021’’ 
and inserting ‘‘December 31, 2026’’. 
(e) PAYMENTS FOR ALTERNATIVE FUELS.—Section 
6427(e)(6)(C) is amended by striking ‘‘December 31, 
2021’’ and inserting ‘‘December 31, 2026’’. 
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(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to fuel sold or used after December 
31, 2021. 
SEC. 
136202. 
EXTENSION 
OF 
SECOND 
GENERATION 
BIOFUEL INCENTIVES. 
(a) IN GENERAL.—Section 40(b)(6)(J)(i) is amended 
by striking ‘‘2022’’ and inserting ‘‘2027’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to qualified second generation 
biofuel production after December 31, 2021. 
SEC. 136203. SUSTAINABLE AVIATION FUEL CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 is amended by inserting after sec-
tion 40A the following new section: 
‘‘SEC. 40B. SUSTAINABLE AVIATION FUEL CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 38, the 
sustainable aviation fuel credit for the taxable year is, with 
respect to any sale or use of a qualified mixture which 
occurs during such taxable year, an amount equal to the 
product of— 
‘‘(1) the number of gallons of sustainable avia-
tion fuel in such mixture, multiplied by 
‘‘(2) the sum of— 
‘‘(A) $1.25, plus 
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‘‘(B) the applicable supplementary amount 
with respect to such sustainable aviation fuel. 
‘‘(b) APPLICABLE SUPPLEMENTARY AMOUNT.—For 
purposes of this section, the term ‘applicable supple-
mentary amount’ means, with respect to any sustainable 
aviation fuel, an amount equal to $0.01 for each percent-
age point by which the lifecycle greehouse gas emissions 
reduction percentage with respect to such fuel exceeds 50 
percent. In no event shall the applicable supplementary 
amount determined under this subsection exceed $0.50. 
‘‘(c) QUALIFIED MIXTURE.—For purposes of this 
section, the term ‘qualified mixture’ means a mixture of 
sustainable aviation fuel and kerosene if— 
‘‘(1) such mixture is produced by the taxpayer 
in the United States, 
‘‘(2) such mixture is used by the taxpayer (or 
sold by the taxpayer for use) in an aircraft, 
‘‘(3) such sale or use is in the ordinary course 
of a trade or business of the taxpayer, and 
‘‘(4) the transfer of such mixture to the fuel 
tank of such aircraft occurs in the United States. 
‘‘(d) SUSTAINABLE AVIATION FUEL.—For purposes 
of this section, the term ‘sustainable aviation fuel’ means 
liquid fuel which— 
‘‘(1) meets the requirements of— 
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‘‘(A) 
ASTM 
International 
Standard 
D7566, or 
‘‘(B) the Fischer Tropsch provisions of 
ASTM International Standard D1655, Annex 
A1, 
‘‘(2) is not derived from palm fatty acid dis-
tillates or petroleum, and 
‘‘(3) has been certified in accordance with sub-
section (e) as having a lifecycle greenhouse gas emis-
sions reduction percentage of at least 50 percent. 
‘‘(e) LIFECYCLE GREENHOUSE GAS EMISSIONS RE-
DUCTION PERCENTAGE.—For purposes of this section, the 
term ‘lifecycle greenhouse gas emissions reduction per-
centage’ means, with respect to any sustainable aviation 
fuel, the percentage reduction in lifecycle greenhouse gas 
emissions— 
‘‘(1) as defined in accordance with— 
‘‘(A) the most recent Carbon Offsetting 
and Reduction Scheme for International Avia-
tion which has been adopted by the Inter-
national Civil Aviation Organization with the 
agreement of the United States, or 
‘‘(B) any similar methodology which satis-
fies the criteria under section 211(o)(1)(H) of 
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the Clean Air Act (42 U.S.C. 7545(o)(1)(H)), 
and 
‘‘(2) achieved by such fuel as compared with pe-
troleum-based jet fuel. 
‘‘(f) REGISTRATION
OF
SUSTAINABLE
AVIATION 
FUEL PRODUCERS.—No credit shall be allowed under this 
section with respect to any sustainable aviation fuel unless 
the producer of such fuel is registered with the Secretary 
under section 4101 and has provided such other informa-
tion with respect to such fuel as the Secretary may require 
for purposes of carrying out this section. 
‘‘(g) COORDINATION WITH CREDIT AGAINST EXCISE 
TAX.—The amount of the credit determined under this 
section with respect to any sustainable aviation fuel shall, 
under rules prescribed by the Secretary, be properly re-
duced to take into account any benefit provided with re-
spect to such sustainable aviation fuel solely by reason of 
the application of section 6426 or 6427(e). 
‘‘(h) TERMINATION.—This section shall not apply to 
any sale or use after December 31, 2026.’’. 
(b) CREDIT MADE PART OF GENERAL BUSINESS 
CREDIT.— Section 38(b) is amended by striking ‘‘plus’’ 
at the end of paragraph (33), by striking the period at 
the end of paragraph (34) and inserting ‘‘, plus’’, and by 
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inserting after paragraph (34) the following new para-
graph: 
‘‘(35) the sustainable aviation fuel credit deter-
mined under section 40B.’’. 
(c) COORDINATION WITH BIODIESEL INCENTIVES.— 
(1) IN GENERAL.—Section 40A(d)(1) is amend-
ed by inserting ‘‘or 40B’’ after ‘‘determined under 
section 40’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
40A(f) is amended by striking paragraph (4). 
(d) SUSTAINABLE AVIATION FUEL ADDED TO CRED-
IT FOR ALCOHOL FUEL, BIODIESEL, AND ALTERNATIVE 
FUEL MIXTURES.— 
(1) IN GENERAL.—Section 6426 is amended by 
adding at the end the following new subsection: 
‘‘(k) SUSTAINABLE AVIATION FUEL CREDIT.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the sustainable aviation fuel credit for the tax-
able year is, with respect to any sale or use of a 
qualified mixture, an amount equal to the product 
of— 
‘‘(A) the number of gallons of sustainable 
aviation fuel in such mixture, multiplied by 
‘‘(B) the sum of— 
‘‘(i) $1.25, plus 
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‘‘(ii) the applicable supplementary 
amount with respect to such sustainable 
aviation fuel. 
‘‘(2) APPLICABLE SUPPLEMENTARY AMOUNT.— 
For purposes of this subsection, the term ‘applicable 
supplementary amount’ has the meaning given such 
term in section 40B(b). 
‘‘(3) OTHER DEFINITIONS.—Any term used in 
this subsection which is also used in section 40B 
shall have the meaning given such term by section 
40B. 
‘‘(4) REGISTRATION REQUIREMENT.—For pur-
poses of this subsection, rules similar to the rules of 
section 40B(f) shall apply.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 6426 is amended— 
(i) in subsection (a)(1), by striking 
‘‘and (e)’’ and inserting ‘‘(e), and (k)’’, 
and 
(ii) in subsection (h), by striking 
‘‘under section 40 or 40A’’ and inserting 
‘‘under section 40, 40A, or 40B’’. 
(B) Section 6427(e)(6) is amended by 
striking the ‘‘and’’ at the end of subparagraph 
(C), by striking the period at the end of sub-
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paragraph (D) and inserting ‘‘, and’’, and by 
adding at the end the following new subpara-
graph: 
‘‘(E) any qualified mixture of sustainable 
aviation fuel (as defined in section 6426(k)(3)) 
sold or used after December 31, 2026.’’. 
(C) Section 6427(e) is amended in the 
heading by striking ‘‘OR ALTERNATIVE FUEL’’ 
and inserting, ‘‘ALTERNATIVE FUEL, OR SUS-
TAINABLE AVIATION FUEL’’. 
(D) Section 6427(e)(1) is amended by in-
serting ‘‘or the sustainable aviation fuel mixture 
credit’’ after ‘‘alternative fuel mixture credit’’. 
(E) Section 4101(a)(1) is amended by in-
serting ‘‘every person producing sustainable 
aviation fuel (as defined in section 40B or sec-
tion 6426(k)(3)),’’ before ‘‘and every person 
producing second generation biofuel’’. 
(e) GUIDANCE.—Under rules prescribed by the Sec-
retary of the Treasury (or the Secretary’s delegate), the 
amount of the credit allowed under section 40B of the In-
ternal Revenue Code of 1986 (as added by this subsection) 
shall be properly reduced to take into account any benefit 
provided with respect to sustainable aviation fuel (as de-
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fined in such section 40B) by reason of the application 
of section 6426 or section 6427(e). 
(f) AMOUNT OF CREDIT INCLUDED IN GROSS IN-
COME.—Section 87 is amended by striking ‘‘and’’ in para-
graph (1), by striking the period at the end of paragraph 
(2) and inserting ‘‘, and’’, and by adding at the end the 
following new paragraph: 
‘‘(3) the sustainable aviation fuel credit deter-
mined with respect to the taxpayer for the taxable 
year under section 40B(a).’’. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to fuel sold or used after December 
31, 2022. 
SEC. 136204. CLEAN HYDROGEN. 
(a) CREDIT FOR PRODUCTION OF CLEAN HYDRO-
GEN.— 
(1) IN GENERAL.—Subpart D of part IV of 
subchapter A of chapter 1 is amended by adding at 
the end the following new section: 
‘‘SEC. 45X. CREDIT FOR PRODUCTION OF CLEAN HYDRO-
GEN. 
‘‘(a) AMOUNT OF CREDIT.—For purposes of section 
38, the clean hydrogen production credit for any taxable 
year is an amount equal to the product of— 
‘‘(1) the applicable amount, multiplied by 
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‘‘(2) the kilograms of qualified clean hydrogen 
produced by the taxpayer during such taxable year 
at a qualified clean hydrogen production facility dur-
ing the 10-year period beginning on the date such 
facility was originally placed in service. 
‘‘(b) APPLICABLE AMOUNT.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a)(1), the applicable amount shall be an amount 
equal to the applicable percentage of $0.60. If any 
amount as determined 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. 
‘‘(2) APPLICABLE PERCENTAGE.—For purposes 
of paragraph (1), the term ‘applicable percentage’ 
shall be determined as follows: 
‘‘(A) In the case of any qualified clean hy-
drogen which is produced by a facility that is 
placed in service before January 1, 2027 
through a process that results in a lifecycle 
greenhouse gas emissions rate of— 
‘‘(i) not greater than 6 kilograms of 
CO2e per kilogram of hydrogen, and 
‘‘(ii) not less than 4 kilograms of 
CO2e per kilogram of hydrogen, 
the applicable percentage shall be 15 percent. 
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