1696 
(b) APPLICATION
OF INFLATION ADJUSTMENT.— 
Section 45D(f)(4), as added and amended by the pre-
ceding provisions of this Act, is amended by striking 
‘‘paragraphs (1)(H) and (5)(A)’’ and inserting ‘‘para-
graphs (1)(H), (5)(A), (6)(A)(i), and (6)(A)(ii)’’. 
(c) EFFECTIVE DATES.—The amendments made by 
this section shall apply to new markets tax credit limita-
tion determined for calendar years after December 31, 
2021. 
Subtitle G—Green Energy 
SEC. 136001. AMENDMENT OF 1986 CODE. 
Except as otherwise expressly provided, whenever in 
this subtitle an amendment or repeal is expressed in terms 
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a 
section or other provision of the Internal Revenue Code 
of 1986. 
PART 1—RENEWABLE ELECTRICITY AND 
REDUCING CARBON EMISSIONS 
SEC. 136101. EXTENSION AND MODIFICATION OF CREDIT 
FOR ELECTRICITY PRODUCED FROM CER-
TAIN RENEWABLE RESOURCES. 
(a) IN GENERAL.—The following provisions of sec-
tion 45(d) are each amended by striking ‘‘January 1, 
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2022’’ each place it appears and inserting ‘‘January 1, 
2034’’: 
(1) Paragraph (2)(A). 
(2) Paragraph (3)(A). 
(3) Paragraph (4)(B). 
(4) Paragraph (6). 
(5) Paragraph (7). 
(6) Paragraph (9). 
(7) Paragraph (11)(B). 
(b) APPLICATION OF EXTENSION TO SOLAR.—Sec-
tion 45(d)(4)(A) is amended by striking ‘‘is placed in serv-
ice before January 1, 2006’’ and inserting ‘‘the construc-
tion of which begins before January 1, 2034.’’. 
(c) EXTENSION OF ELECTION TO TREAT QUALIFIED 
FACILITIES
AS
ENERGY
PROPERTY.—Section 
48(a)(5)(C)(ii) is amended by striking ‘‘January 1, 2022’’ 
and inserting ‘‘January 1, 2034’’. 
(d) APPLICATION OF EXTENSION TO WIND FACILI-
TIES.— 
(1) IN GENERAL.—Section 45(d)(1) is amended 
by striking ‘‘January 1, 2022’’ and inserting ‘‘Janu-
ary 1, 2034’’. 
(2) APPLICATION
OF
PHASEOUT
PERCENT-
AGE.— 
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(A) RENEWABLE
ELECTRICITY
PRODUC-
TION CREDIT.—Section 45(b)(5)(D) is amended 
by inserting ‘‘placed in service before January 
1, 2022’’ after ‘‘In the case of any facility’’. 
(B) 
ENERGY
CREDIT.—Section 
48(a)(5)(E)(iv) is amended by inserting ‘‘placed 
in service before January 1, 2022’’ after ‘‘In 
the case of any facility’’. 
(3) QUALIFIED
OFFSHORE
WIND
FACILITIES 
UNDER ENERGY CREDIT.—Section 48(a)(5)(F)(i) is 
amended by striking ‘‘offshore wind facility—’’ and 
all that follows and inserting the following: ‘‘offshore 
wind facility, subparagraph (E) shall not apply.’’. 
(e) PERCENTAGE PHASEOUT OF CREDIT.—Section 
45(b) is amended by adding at the end the following new 
paragraph: 
‘‘(6) PERCENTAGE PHASEOUT OF CREDIT.—In 
the case of any facility, the amount of the credit de-
termined under subsection (a) shall be reduced by— 
‘‘(A) in the case of any facility the con-
struction of which begins after December 31, 
2031 and before January 1, 2033, 20 percent, 
‘‘(B) in the case of any facility the con-
struction of which begins after December 31, 
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2032 and before January 1, 2034, 40 percent, 
and 
‘‘(C) in the case of any facility the con-
struction of which begins after December 31, 
2033, 100 percent.’’. 
(f) WAGE AND APPRENTICESHIP REQUIREMENTS.— 
Section 45(b) is amended by adding at the end the fol-
lowing new paragraphs: 
‘‘(7) BASE CREDIT AMOUNT AND INCREASED 
CREDIT AMOUNT FOR QUALIFIED FACILITIES.— 
‘‘(A) IN
GENERAL.—In the case of any 
qualified facility which does not satisfy the re-
quirements of subparagraph (B), the amount of 
the credit determined under subsection (a) (de-
termined after the application of paragraphs (1) 
through (6)) shall be 20 percent of such 
amount (determined without regard to this sen-
tence). 
‘‘(B) INCREASED CREDIT FOR CERTAIN FA-
CILITIES MEETING PROJECT REQUIREMENTS.— 
‘‘(i) IN GENERAL.—In the case of any 
qualified facility which meets the project 
requirements of this subparagraph, sub-
paragraph (A) shall not apply. 
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‘‘(ii) PROJECT
REQUIREMENTS.—A 
project meets the requirements of this sub-
paragraph if it is one of the following: 
‘‘(I) A project with a maximum 
net output of less than 1 megawatt. 
‘‘(II) A project which commences 
construction prior to the date of the 
enactment of this paragraph. 
‘‘(III) A project which satisfies 
the requirements of paragraphs (8) 
and (9). 
‘‘(8) PREVAILING WAGE REQUIREMENTS.— 
‘‘(A) IN GENERAL.—The requirements de-
scribed in this subparagraph with respect to 
any qualified facility are that the taxpayer shall 
ensure that any laborers and mechanics em-
ployed by contractors and subcontractors in— 
‘‘(i) the construction of such facility, 
and 
‘‘(ii) for the 10-year period beginning 
on the date the facility was originally 
placed in service, the alteration or repair of 
such facility, 
shall be paid wages at rates not less than the 
prevailing rates for construction, alteration, or 
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repair of a similar character in the locality as 
most recently determined by the Secretary 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.— 
‘‘(i) IN GENERAL.—In the case of any 
taxpayer which fails to satisfy the require-
ment under subparagraph (A) with respect 
to the construction of any qualified facility 
or with respect to the alteration or repair 
of a facility in any year during the period 
described in subparagraph (A)(ii), such 
taxpayer shall be deemed to have satisfied 
such requirement under such subparagraph 
with respect to such facility for any year if, 
with respect to any laborer or mechanic 
who was paid wages at a rate below the 
rate described in such subparagraph for 
any period during such year, such tax-
payer— 
‘‘(I) makes payment to such la-
borer or mechanic in an amount equal 
to the sum of— 
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‘‘(aa) an amount equal to 
the 
difference 
between 
the 
amount of wages paid to such la-
borer or mechanic during such 
period, and— 
‘‘(AA) the amount of 
wages required to be paid to 
such laborer or mechanic 
pursuant to such subpara-
graph during such period, 
plus 
‘‘(BB) interest on the 
amount determined under 
item (aa) at the under-
payment 
rate 
established 
under section 6621 for the 
period described in such 
item, and 
‘‘(II) makes payment to the Sec-
retary of a penalty in an amount 
equal to the product of— 
‘‘(aa) $5,000, multiplied by 
‘‘(bb) the total number of la-
borers and mechanics who were 
paid wages at a rate below the 
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rate described in subparagraph 
(A) for any period during such 
year. 
‘‘(ii) PENALTY ASSESSED AS TAX.— 
The penalty described in clause (i)(II) 
shall be treated in the same manner as a 
penalty imposed under subchapter B of 
chapter 68. 
‘‘(9) APPRENTICESHIP
REQUIREMENTS.—The 
requirements described in this subparagraph with re-
spect to the construction of any qualified facility are 
as follows: 
‘‘(A) LABOR HOURS.— 
‘‘(i) PERCENTAGE OF TOTAL LABOR 
HOURS.—All contractors and subcontrac-
tors engaged in the performance of con-
struction, alteration, or repair work on any 
project shall, subject to subparagraph (B), 
ensure that not less than the applicable 
percentage of the total labor hours of such 
work be performed by qualified appren-
tices. 
‘‘(ii) APPLICABLE PERCENTAGE.—For 
purposes of paragraph (1), the applicable 
percentage shall be— 
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‘‘(I) in the case of any applicable 
project the construction of which be-
gins before January 1, 2023, 5 per-
cent, 
‘‘(II) in the case of any applica-
ble project the construction of which 
begins after December 31, 2022, and 
before January 1, 2024, 10 percent, 
and 
‘‘(III) in the case of any applica-
ble project the construction of which 
begins after December 31, 2023, 15 
percent. 
‘‘(B) APPRENTICE
TO
JOURNEYWORKER 
RATIO.—The requirement under subparagraph 
(A)(i) shall be subject to any applicable require-
ments for apprentice-to-journeyworker ratios of 
the Department of Labor or the applicable 
State apprenticeship agency. 
‘‘(C) 
PARTICIPATION.—Each 
contractor 
and subcontractor who employs 4 or more indi-
viduals to perform construction, alteration, or 
repair work on an applicable project shall em-
ploy 1 or more qualified apprentices to perform 
such work. 
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‘‘(D) EXCEPTION.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
any other provision of this paragraph, this 
paragraph shall not apply in the case of a 
taxpayer who— 
‘‘(I) demonstrates a lack of avail-
ability of qualified apprentices in the 
geographic area of the construction, 
alteration, or repair work, and 
‘‘(II) makes a good faith effort to 
comply with the requirements of this 
paragraph, or 
‘‘(ii) GOOD FAITH EFFORT.—For pur-
poses of clause (i), a taxpayer shall be 
deemed to have satisfied the requirements 
under such paragraph with respect to an 
applicable project if such taxpayer has re-
quested qualified apprentices from a reg-
istered apprenticeship program, as defined 
in section 3131(e)(3)(B), and such request 
has been denied, provided that such denial 
is not the result of a refusal by the con-
tractors or subcontractors engaged in the 
performance of construction, alteration, or 
repair work on such applicable project to 
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comply with the established standards and 
requirements of such apprenticeship pro-
gram. 
‘‘(E) DEFINITIONS.—For purposes of this 
paragraph— 
‘‘(i) LABOR HOURS.—The term ‘labor 
hours’— 
‘‘(I) means the total number of 
hours devoted to the performance of 
construction, 
alteration, 
or 
repair 
work by employees of the contractor 
or subcontractor, and 
‘‘(II) excludes any hours worked 
by— 
‘‘(aa) foremen, 
‘‘(bb) superintendents, 
‘‘(cc) owners, or 
‘‘(dd) persons employed in a 
bona fide executive, administra-
tive, 
or 
professional 
capacity 
(within the meaning of those 
terms in part 541 of title 29, 
Code of Federal Regulations). 
‘‘(ii) QUALIFIED
APPRENTICE.—The 
term ‘qualified apprentice’ means an indi-
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vidual who is an employee of the con-
tractor or subcontractor and who is par-
ticipating in a registered apprenticeship 
program, 
as 
defined 
in 
section 
3131(e)(3)(B). 
‘‘(10) DOMESTIC
CONTENT
BONUS
CREDIT 
AMOUNT.— 
‘‘(A) IN
GENERAL.—In the case of any 
qualified facility which satisfies the requirement 
under subparagraph (B), the amount of the 
credit determined under subsection (a) (deter-
mined after the application of paragraphs (1) 
through (9)) shall be increased by an amount 
equal to 10 percent of the amount otherwise in 
effect under such subsection. 
‘‘(B) REQUIREMENT.— 
‘‘(i) IN GENERAL.—Subject to clause 
(iii), the requirement described in this sub-
clause with respect to any qualified facility 
is that, prior to the end of the taxable year 
in which such facility is placed in service, 
the taxpayer shall certify to the Secretary 
that, any steel, iron, or manufactured 
product used in the construction of such 
facility was produced in the United States. 
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‘‘(ii) STEEL AND IRON.—In the case 
of steel or iron, clause (i) shall be applied 
in a manner consistent with section 
661.5(b) of title 49, Code of Federal Regu-
lations. 
‘‘(iii) MANUFACTURED
PRODUCT.— 
For purposes of clause (i), a manufactured 
product shall be deemed to have been man-
ufactured in the United States if not less 
than 55 percent of the total cost of the 
components of such product is attributable 
to components which are mined, produced, 
or manufactured in the United States. 
‘‘(C) INTERNATIONAL AGREEMENTS.—This 
paragraph shall be applied in a manner which 
is consistent with the obligations of the United 
States under international agreements. 
‘‘(11) PENALTY FOR DIRECT PAY.— 
‘‘(A) IN GENERAL.—In the case of a tax-
payer making an election under section 6417 
with respect to a credit under this section, the 
amount of such credit shall be replaced with— 
‘‘(i) the value of such credit (deter-
mined without regard to this paragraph), 
multiplied by 
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