I 
117TH CONGRESS 
1ST SESSION H. R. 5423 
To amend the Internal Revenue Code of 1986 to establish the advanced 
solar manufacturing production credit. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 29, 2021 
Mr. KILDEE (for himself, Mr. BLUMENAUER, Ms. DELBENE, Mr. RYAN, Mr. 
SCHNEIDER, Ms. BOURDEAUX, Mr. KRISHNAMOORTHI, Mr. CLEAVER, 
Mr. HIGGINS of New York, and Mr. SWALWELL) introduced the following 
bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to establish 
the advanced solar manufacturing production credit. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Solar Energy Manufac-
turing for America Act’’. 
SEC. 2. ADVANCED SOLAR MANUFACTURING PRODUCTION 
CREDIT. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
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1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 36C. ADVANCED SOLAR MANUFACTURING PRODUC-
TION CREDIT. 
‘‘(a) IN GENERAL.— 
‘‘(1) ALLOWANCE OF CREDIT.—There shall be 
allowed as a credit against the tax imposed by this 
subtitle for any taxable year an amount equal to the 
sum of the credit amounts determined under sub-
section (b) with respect to each solar component 
which is— 
‘‘(A) produced by such taxpayer, and 
‘‘(B) during the taxable year— 
‘‘(i) sold by the taxpayer to— 
‘‘(I) an unrelated person, or 
‘‘(II) a related person for the use 
of such person in their trade or busi-
ness (with the exception of any trade 
or business related to resale of such 
solar component without any subse-
quent modification, assembly, or inte-
gration into a project), or 
‘‘(ii) placed in service or operation by 
the taxpayer or any other person. 
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‘‘(2) PRODUCTION
AND
SALE
MUST
BE
IN 
TRADE
OR
BUSINESS.—Any solar component pro-
duced and sold by the taxpayer shall be taken into 
account only if the production and sale described in 
paragraph (1) is in a trade or business of the tax-
payer. 
‘‘(b) CREDIT AMOUNT.— 
‘‘(1) IN GENERAL.—Subject to paragraph (3), 
the amount determined under this subsection with 
respect to any solar component shall be equal to— 
‘‘(A) in the case of an integrated module, 
an amount equal to the product of— 
‘‘(i) 11 cents, multiplied by 
‘‘(ii) the capacity of such module (ex-
pressed on a per direct current watt basis), 
‘‘(B) in the case of a photovoltaic cell, an 
amount equal to the product of— 
‘‘(i) 4 cents, multiplied by 
‘‘(ii) the capacity of such cell (ex-
pressed on a per direct current watt basis), 
‘‘(C) in the case of a photovoltaic wafer, 
$12 per square meter, 
‘‘(D) in the case of solar grade polysilicon, 
$3 per kilogram, 
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‘‘(E) in the case of a solar module which 
is not an integrated module, an amount equal 
to the product of— 
‘‘(i) 7 cents, multiplied by 
‘‘(ii) the capacity of such module (ex-
pressed on a per direct current watt basis), 
‘‘(F) in the case of a solar tracker torque 
tube, an amount equal to the product of— 
‘‘(i) 87 cents, multiplied by 
‘‘(ii) the mass of such torque tube (ex-
pressed on a per kilogram basis), 
‘‘(G) in the case of a solar tracker longitu-
dinal purlin, an amount equal to the product 
of— 
‘‘(i) 87 cents, multiplied by 
‘‘(ii) the mass of such longitudinal 
purlin (expressed on a per kilogram basis), 
‘‘(H) in the case of a solar structural fas-
tener, an amount equal to the product of— 
‘‘(i) $2.28, multiplied by 
‘‘(ii) the mass of such structural fas-
tener (expressed on a per kilogram basis), 
and 
‘‘(I) in the case of an inverter, an amount 
equal to the product of— 
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‘‘(i) the applicable amount, multiplied 
by 
‘‘(ii) the capacity of such inverter (ex-
pressed on a per alternating current watt 
basis). 
‘‘(2) APPLICABLE AMOUNT.—For purposes of 
paragraph (1)(I), the applicable amount with respect 
to any inverter shall be— 
‘‘(A) in the case of a central inverter, 0.25 
cents, 
‘‘(B) in the case of a utility-scale inverter, 
1.5 cents, 
‘‘(C) in the case of a commercial inverter, 
2 cents, 
‘‘(D) in the case of a residential inverter, 
6.5 cents, and 
‘‘(E) in the case of a microinverter, 11 
cents. 
‘‘(3) PHASE OUT.— 
‘‘(A) IN
GENERAL.—In the case of any 
solar component sold after December 31, 2028, 
the amount determined under this subsection 
with respect to such component shall be equal 
to the product of— 
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‘‘(i) the amount determined under 
paragraph (1) with respect to such compo-
nent, as determined without regard to this 
paragraph, multiplied by 
‘‘(ii) the phase out percentage under 
subparagraph (B). 
‘‘(B) 
PHASE
OUT
PERCENTAGE.—The 
phase out percentage under this subparagraph 
is equal to— 
‘‘(i) in the case of a solar component 
sold during calendar year 2029, 70 per-
cent, 
‘‘(ii) in the case of a solar component 
sold during calendar year 2030, 35 per-
cent, and 
‘‘(iii) in the case of a solar component 
sold after December 31, 2030, 0 percent. 
‘‘(c) DEFINITIONS AND OTHER RULES.—In this sec-
tion— 
‘‘(1) SOLAR
COMPONENT.—The term ‘solar 
component’ means any property described in para-
graph (2). 
‘‘(2) OTHER DEFINITIONS.— 
‘‘(A) INTEGRATED
MODULE.—The term 
‘integrated module’ means a solar module pro-
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