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‘‘(A) IN
GENERAL.—Not later than 180 
days after the date of enactment of this section, 
the Secretary, in consultation with the Secretary 
of Energy, shall establish a qualifying advanced 
energy project program to consider and award 
certifications for qualified investments eligible 
for credits under this section to qualifying ad-
vanced energy project sponsors. 
‘‘(B) LIMITATION.—The total amount of 
credits that may be allocated under the program 
shall not exceed $2,000,000,000. 
‘‘(2) CERTIFICATION.— 
‘‘(A) APPLICATION
PERIOD.—Each appli-
cant for certification under this paragraph shall 
submit an application containing such informa-
tion as the Secretary may require during the 3- 
year period beginning on the date the Secretary 
establishes the program under paragraph (1). 
‘‘(B) TIME TO MEET CRITERIA FOR CER-
TIFICATION.—Each applicant for certification 
shall have 2 years from the date of acceptance by 
the Secretary of the application during which to 
provide to the Secretary evidence that the re-
quirements of the certification have been met. 
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‘‘(C) PERIOD OF ISSUANCE.—An applicant 
which receives a certification shall have 5 years 
from the date of issuance of the certification in 
order to place the project in service and if such 
project is not placed in service by that time pe-
riod then the certification shall no longer be 
valid. 
‘‘(3) SELECTION
CRITERIA.—In determining 
which qualifying advanced energy projects to certify 
under this section, the Secretary— 
‘‘(A) shall take into consideration only those 
projects where there is a reasonable expectation 
of commercial viability, and 
‘‘(B) shall take into consideration which 
projects— 
‘‘(i) will provide the greatest domestic 
job creation (both direct and indirect) dur-
ing the credit period, 
‘‘(ii) will provide the greatest net im-
pact in avoiding or reducing air pollutants 
or anthropogenic emissions of greenhouse 
gases, 
‘‘(iii) have the greatest readiness for 
commercial employment, replication, and 
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further commercial use in the United 
States, 
‘‘(iv) will provide the greatest benefit 
in terms of newness in the commercial mar-
ket, 
‘‘(v) have the lowest levelized cost of 
generated or stored energy, or of measured 
reduction in energy consumption or green-
house gas emission (based on costs of the 
full supply chain), and 
‘‘(vi) have the shortest project time 
from certification to completion. 
‘‘(4) REVIEW AND REDISTRIBUTION.— 
‘‘(A) REVIEW.—Not later than 6 years after 
the date of enactment of this section, the Sec-
retary shall review the credits allocated under 
this section as of the date which is 6 years after 
the date of enactment of this section. 
‘‘(B) 
REDISTRIBUTION.—The 
Secretary 
may reallocate credits awarded under this sec-
tion if the Secretary determines that— 
‘‘(i) there is an insufficient quantity of 
qualifying applications for certification 
pending at the time of the review, or 
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‘‘(ii) any certification made pursuant 
to paragraph (2) has been revoked pursuant 
to paragraph (2)(B) because the project sub-
ject to the certification has been delayed as 
a result of third party opposition or litiga-
tion to the proposed project. 
‘‘(C) REALLOCATION.—If the Secretary de-
termines that credits under this section are 
available for reallocation pursuant to the re-
quirements set forth in paragraph (2), the Sec-
retary is authorized to conduct an additional 
program for applications for certification. 
‘‘(5) DISCLOSURE OF ALLOCATIONS.—The Sec-
retary shall, upon making a certification under this 
subsection, publicly disclose the identity of the appli-
cant and the amount of the credit with respect to such 
applicant. 
‘‘(e) DENIAL OF DOUBLE BENEFIT.—A credit shall not 
be allowed under this section for any qualified investment 
for which a credit is allowed under section 48, 48A, or 
48B.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 49(a)(1)(C) is amended by striking 
‘‘and’’ at the end of clause (iii), by striking the period 
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at the end of clause (iv) and inserting ‘‘, and’’, and 
by adding after clause (iv) the following new clause: 
‘‘(v) the basis of any property which is 
part of a qualifying advanced energy 
project under section 48C.’’. 
(2) The table of sections for subpart E of part IV 
of subchapter A of chapter 1 is amended by inserting 
after the item relating to section 48B the following 
new item: 
‘‘48C. Qualifying advanced energy project credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to periods after the date of the enactment 
of this Act, under rules similar to the rules of section 48(m) 
of the Internal Revenue Code of 1986 (as in effect on the 
day before the date of the enactment of the Revenue Rec-
onciliation Act of 1990). 
SEC. 1303. INCENTIVES FOR MANUFACTURING FACILITIES 
PRODUCING 
PLUG-IN 
ELECTRIC 
DRIVE 
MOTOR VEHICLES AND COMPONENTS. 
(a) DEDUCTION FOR MANUFACTURING FACILITIES.— 
Part VI of subchapter B of chapter 1 (relating to itemized 
deductions for individuals and corporations) is amended by 
inserting after section 179E the following new section: 
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‘‘SEC. 179F. ELECTION TO EXPENSE MANUFACTURING FA-
CILITIES 
PRODUCING 
PLUG-IN 
ELECTRIC 
DRIVE MOTOR VEHICLES AND COMPONENTS. 
‘‘(a) TREATMENT AS EXPENSES.—A taxpayer may 
elect to treat the applicable percentage of the cost of any 
qualified plug-in electric drive motor vehicle manufacturing 
facility property as an expense which is not chargeable to 
a capital account. Any cost so treated shall be allowed as 
a deduction for the taxable year in which the qualified man-
ufacturing facility property is placed in service. 
‘‘(b) APPLICABLE PERCENTAGE.—For purposes of sub-
section (a), the applicable percentage is— 
‘‘(1) 100 percent, in the case of qualified plug- 
in electric drive motor vehicle manufacturing facility 
property which is placed in service before January 1, 
2012, and 
‘‘(2) 50 percent, in the case of qualified plug-in 
electric drive motor vehicle manufacturing facility 
property which is placed in service after December 31, 
2011, and before January 1, 2015. 
‘‘(c) ELECTION.— 
‘‘(1) IN GENERAL.—An election under this sec-
tion for any taxable year shall be made on the tax-
payer’s return of the tax imposed by this chapter for 
the taxable year. Such election shall be made in such 
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manner as the Secretary may by regulations pre-
scribe. 
‘‘(2) ELECTION
IRREVOCABLE.—Any election 
made under this section may not be revoked except 
with the consent of the Secretary. 
‘‘(d) QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR 
VEHICLE
MANUFACTURING
FACILITY
PROPERTY.—For 
purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified plug-in 
electric drive motor vehicle manufacturing facility 
property’ means any qualified property— 
‘‘(A) the original use of which commences 
with the taxpayer, 
‘‘(B) which is placed in service by the tax-
payer after the date of the enactment of this sec-
tion and before January 1, 2015, and 
‘‘(C) no written binding contract for the 
construction of which was in effect on or before 
the date of the enactment of this section. 
‘‘(2) QUALIFIED PROPERTY.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
property’ means any property which is a facility 
or a portion of a facility used for the production 
of— 
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‘‘(i) any new qualified plug-in electric 
drive motor vehicle (as defined by section 
30D(c)), or 
‘‘(ii) any eligible component. 
‘‘(B) ELIGIBLE COMPONENT.—The term ‘eli-
gible component’ means any battery, any electric 
motor or generator, or any power control unit 
which is designed specifically for use with a new 
qualified plug-in electric drive motor vehicle (as 
so defined). 
‘‘(e) SPECIAL RULE FOR DUAL USE PROPERTY.—In 
the case of any qualified plug-in electric drive motor vehicle 
manufacturing facility property which is used to produce 
both qualified property and other property which is not 
qualified property, the amount of costs taken into account 
under subsection (a) shall be reduced by an amount equal 
to— 
‘‘(1) the total amount of such costs (determined 
before the application of this subsection), multiplied 
by 
‘‘(2) the percentage of property expected to be 
produced which is not qualified property. 
‘‘(f) ELECTION TO RECEIVE LOAN IN LIEU OF DEDUC-
TION.— 
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‘‘(1) IN GENERAL.—If a taxpayer elects to have 
this subsection apply for any taxable year— 
‘‘(A) subsection (a) shall not apply to any 
qualified plug-in electric drive motor vehicle 
manufacturing facility property placed in serv-
ice by the taxpayer, 
‘‘(B) such taxpayer shall receive a loan 
from the Secretary in an amount and under 
such terms as provided in section 1303(b) of the 
American Recovery and Reinvestment Tax Act of 
2009, and 
‘‘(C) in the taxable year in which such 
qualified loan is repaid, each of the limitations 
described in paragraph (2) shall be increased by 
the qualified plug-in electric drive motor vehicle 
manufacturing facility amount which is— 
‘‘(i) determined under paragraph (3), 
and 
‘‘(ii) allocated to such limitation under 
paragraph (4). 
‘‘(2) LIMITATIONS TO BE INCREASED.—The limi-
tations described in this paragraph are— 
‘‘(A) the limitation imposed by section 
38(c), and 
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‘‘(B) the limitation imposed by section 
53(c). 
‘‘(3) 
QUALIFIED
PLUG-IN
ELECTRIC
DRIVE 
MOTOR
VEHICLE
MANUFACTURING
FACILITY 
AMOUNT.—For purposes of this paragraph— 
‘‘(A) IN GENERAL.—The qualified plug-in 
electric drive motor vehicle manufacturing facil-
ity amount is an amount equal to the applicable 
percentage of any qualified plug-in electric drive 
motor vehicle manufacturing facility which is 
placed in service during the taxable year. 
‘‘(B) APPLICABLE PERCENTAGE.—For pur-
poses of subparagraph (A), the applicable per-
centage is— 
‘‘(i) 35 percent, in the case of qualified 
plug-in electric drive motor vehicle manu-
facturing facility property which is placed 
in service before January 1, 2012, and 
‘‘(ii) 17.5 percent, in the case of quali-
fied plug-in electric drive motor vehicle 
manufacturing facility property which is 
placed in service after December 31, 2011, 
and before January 1, 2015. 
‘‘(C) SPECIAL RULE FOR DUAL USE PROP-
ERTY.—In the case of any qualified plug-in elec-
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tric drive motor vehicle manufacturing facility 
property which is used to produce both qualified 
property and other property which is not quali-
fied property, the amount of costs taken into ac-
count under subparagraph (A) shall be reduced 
by an amount equal to— 
‘‘(i) the total amount of such costs (de-
termined before the application of this sub-
paragraph), multiplied by 
‘‘(ii) the percentage of property ex-
pected to be produced which is not qualified 
property. 
‘‘(4) ALLOCATION OF QUALIFIED PLUG-IN ELEC-
TRIC DRIVE MOTOR VEHICLE MANUFACTURING FACIL-
ITY AMOUNT.—The taxpayer shall, at such time and 
in such manner as the Secretary may prescribe, speci-
fy the portion (if any) of the qualified plug-in electric 
drive motor vehicle manufacturing facility amount 
for the taxable year which is to be allocated to each 
of the limitations described in paragraph (2) for such 
taxable year. 
‘‘(5) ELECTION.— 
‘‘(A) IN GENERAL.—An election under this 
subsection for any taxable year shall be made on 
the taxpayer’s return of the tax imposed by this 
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chapter for the taxable year. Such election shall 
be made in such manner as the Secretary may 
by regulations prescribe. 
‘‘(B) ELECTION
IRREVOCABLE.—Any elec-
tion made under this subsection may not be re-
voked except with the consent of the Secretary.’’. 
(b) LOAN PROGRAM.— 
(1) IN GENERAL.—The Secretary of the Treasury 
(or the Secretary’s delegate) shall provide a loan to 
any person who is allowed a deduction under section 
179F of the Internal Revenue Code and who makes an 
election under section 179F(f) of such Code in an 
amount equal to the qualified plug-in electric drive 
motor vehicle manufacturing facility amount (as de-
fined in such section 179F(f)). 
(2) TERM.—Such loan shall be in the form of a 
senior note issued by the taxpayer to the Secretary of 
the Treasury, secured by the qualified plug-in electric 
drive motor vehicle manufacturing facility property 
(as defined in section 179F of the Internal Revenue 
Code of 1986) of the taxpayer, and having a term of 
20 years and interest payable at the applicable Fed-
eral rate (as determined under section 1274(d) of the 
Internal Revenue Code of 1986). 
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