H. R. 5376—119 
‘‘SEC. 45V. CREDIT FOR PRODUCTION OF CLEAN HYDROGEN. 
‘‘(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 kilograms of qualified clean hydrogen produced 
by the taxpayer during such taxable year at a qualified clean 
hydrogen production facility during the 10-year period begin-
ning on the date such facility was originally placed in service, 
multiplied by 
‘‘(2) the applicable amount (as determined under subsection 
(b)) with respect to such hydrogen. 
‘‘(b) APPLICABLE AMOUNT.— 
‘‘(1) IN GENERAL.—For purposes of subsection (a)(2), 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 applicable percentage shall be determined as follows: 
‘‘(A) In the case of any qualified clean hydrogen which 
is produced through a process that results in a lifecycle 
greenhouse gas emissions rate of— 
‘‘(i) not greater than 4 kilograms of CO2e per kilo-
gram of hydrogen, and 
‘‘(ii) not less than 2.5 kilograms of CO2e per kilo-
gram of hydrogen, 
the applicable percentage shall be 20 percent. 
‘‘(B) In the case of any qualified clean hydrogen which 
is produced through a process that results in a lifecycle 
greenhouse gas emissions rate of— 
‘‘(i) less than 2.5 kilograms of CO2e per kilogram 
of hydrogen, and 
‘‘(ii) not less than 1.5 kilograms of CO2e per kilo-
gram of hydrogen, 
the applicable percentage shall be 25 percent. 
‘‘(C) In the case of any qualified clean hydrogen which 
is produced through a process that results in a lifecycle 
greenhouse gas emissions rate of— 
‘‘(i) less than 1.5 kilograms of CO2e per kilogram 
of hydrogen, and 
‘‘(ii) not less than 0.45 kilograms of CO2e per 
kilogram of hydrogen, 
the applicable percentage shall be 33.4 percent. 
‘‘(D) In the case of any qualified clean hydrogen which 
is produced through a process that results in a lifecycle 
greenhouse gas emissions rate of less than 0.45 kilograms 
of CO2e per kilogram of hydrogen, the applicable percent-
age shall be 100 percent. 
‘‘(3) INFLATION ADJUSTMENT.—The $0.60 amount in para-
graph (1) shall be adjusted by multiplying such amount by 
the inflation adjustment factor (as determined under section 
45(e)(2), determined by substituting ‘2022’ for ‘1992’ in subpara-
graph (B) thereof) for the calendar year in which the qualified 
clean hydrogen is produced. If any amount as increased 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. 
‘‘(c) DEFINITIONS.—For purposes of this section—
H. R. 5376—120 
‘‘(1) LIFECYCLE GREENHOUSE GAS EMISSIONS.— 
‘‘(A) IN GENERAL.—Subject to subparagraph (B), the 
term ‘lifecycle greenhouse gas emissions’ has the same 
meaning given such term under subparagraph (H) of sec-
tion 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)(1)), 
as in effect on the date of enactment of this section. 
‘‘(B) GREET MODEL.—The term ‘lifecycle greenhouse 
gas emissions’ shall only include emissions through the 
point of production (well-to-gate), as determined under the 
most recent Greenhouse gases, Regulated Emissions, and 
Energy use in Transportation model (commonly referred 
to as the ‘GREET model’) developed by Argonne National 
Laboratory, or a successor model (as determined by the 
Secretary). 
‘‘(2) QUALIFIED CLEAN HYDROGEN.— 
‘‘(A) IN GENERAL.—The term ‘qualified clean hydrogen’ 
means hydrogen which is produced through a process that 
results in a lifecycle greenhouse gas emissions rate of not 
greater than 4 kilograms of CO2e per kilogram of hydrogen. 
‘‘(B) ADDITIONAL REQUIREMENTS.—Such term shall not 
include any hydrogen unless— 
‘‘(i) such hydrogen is produced— 
‘‘(I) in the United States (as defined in section 
638(1)) or a possession of the United States (as 
defined in section 638(2)), 
‘‘(II) in the ordinary course of a trade or busi-
ness of the taxpayer, and 
‘‘(III) for sale or use, and 
‘‘(ii) the production and sale or use of such 
hydrogen is verified by an unrelated party. 
‘‘(C) PROVISIONAL EMISSIONS RATE.—In the case of any 
hydrogen for which a lifecycle greenhouse gas emissions 
rate has not been determined for purposes of this section, 
a taxpayer producing such hydrogen may file a petition 
with the Secretary for determination of the lifecycle green-
house gas emissions rate with respect to such hydrogen. 
‘‘(3) QUALIFIED CLEAN HYDROGEN PRODUCTION FACILITY.— 
The term ‘qualified clean hydrogen production facility’ means 
a facility— 
‘‘(A) owned by the taxpayer, 
‘‘(B) which produces qualified clean hydrogen, and 
‘‘(C) the construction of which begins before January 
1, 2033. 
‘‘(d) SPECIAL RULES.— 
‘‘(1) TREATMENT OF FACILITIES OWNED BY MORE THAN 1 
TAXPAYER.—Rules similar to the rules section 45(e)(3) shall 
apply for purposes of this section. 
‘‘(2) COORDINATION WITH CREDIT FOR CARBON OXIDE SEQUES-
TRATION.—No credit shall be allowed under this section with 
respect to any qualified clean hydrogen produced at a facility 
which includes carbon capture equipment for which a credit 
is allowed to any taxpayer under section 45Q for the taxable 
year or any prior taxable year. 
‘‘(e) INCREASED
CREDIT
AMOUNT
FOR
QUALIFIED
CLEAN 
HYDROGEN PRODUCTION FACILITIES.— 
‘‘(1) IN
GENERAL.—In the case of any qualified clean 
hydrogen production facility which satisfies the requirements
H. R. 5376—121 
of paragraph (2), the amount of the credit determined under 
subsection (a) with respect to qualified clean hydrogen described 
in subsection (b)(2) shall be equal to such amount (determined 
without regard to this sentence) multiplied by 5. 
‘‘(2) REQUIREMENTS.—A facility meets the requirements of 
this paragraph if it is one of the following: 
‘‘(A) A facility— 
‘‘(i) the construction of which begins prior to the 
date that is 60 days after the Secretary publishes 
guidance with respect to the requirements of para-
graphs (3)(A) and (4), and 
‘‘(ii) which meets the requirements of paragraph 
(3)(A) with respect to alteration or repair of such 
facility which occurs after such date. 
‘‘(B) A facility which satisfies the requirements of para-
graphs (3)(A) and (4). 
‘‘(3) PREVAILING WAGE REQUIREMENTS.— 
‘‘(A) IN GENERAL.—The requirements described in this 
subparagraph with respect to any qualified clean hydrogen 
production facility are that the taxpayer shall ensure that 
any laborers and mechanics employed by the taxpayer or 
any contractor or subcontractor in— 
‘‘(i) the construction of such facility, and 
‘‘(ii) with respect to any taxable year, for any por-
tion of such taxable year which is within the period 
described in subsection (a)(2), the alteration or repair 
of such facility, 
shall be paid wages at rates not less than the prevailing 
rates for construction, alteration, or repair of a similar 
character in the locality in which such facility is located 
as most recently determined by the Secretary of Labor, 
in accordance with subchapter IV of chapter 31 of title 
40, United States Code. For purposes of determining an 
increased credit amount under paragraph (1) for a taxable 
year, the requirement under clause (ii) of this subparagraph 
is applied to such taxable year in which the alteration 
or repair of qualified facility occurs. 
‘‘(B) CORRECTION AND PENALTY RELATED TO FAILURE 
TO
SATISFY
WAGE
REQUIREMENTS.—Rules similar to the 
rules of section 45(b)(7)(B) shall apply. 
‘‘(4) APPRENTICESHIP REQUIREMENTS.—Rules similar to the 
rules of section 45(b)(8) shall apply. 
‘‘(5) REGULATIONS
AND
GUIDANCE.—The Secretary shall 
issue such regulations or other guidance as the Secretary deter-
mines necessary to carry out the purposes of this subsection, 
including regulations or other guidance which provides for 
requirements for recordkeeping or information reporting for 
purposes of administering the requirements of this subsection. 
‘‘(f) REGULATIONS.—Not later than 1 year after the date of 
enactment of this section, the Secretary shall issue regulations 
or other guidance to carry out the purposes of this section, including 
regulations or other guidance for determining lifecycle greenhouse 
gas emissions.’’. 
(2) CREDIT
REDUCED
FOR
TAX-EXEMPT
BONDS.—Section 
45V(d), as added by this section, is amended by adding at 
the end the following new paragraph:
H. R. 5376—122 
‘‘(3) CREDIT
REDUCED
FOR
TAX-EXEMPT
BONDS.—Rules 
similar to the rule under section 45(b)(3) shall apply for pur-
poses of this section.’’. 
(3) MODIFICATION OF EXISTING FACILITIES.—Section 45V(d), 
as added and amended by the preceding provisions of this 
section, is amended by adding at the end the following new 
paragraph: 
‘‘(4) MODIFICATION OF EXISTING FACILITIES.—For purposes 
of subsection (a)(1), in the case of any facility which— 
‘‘(A) was originally placed in service before January 
1, 2023, and, prior to the modification described in subpara-
graph (B), did not produce qualified clean hydrogen, and 
‘‘(B) after the date such facility was originally placed 
in service— 
‘‘(i) is modified to produce qualified clean hydrogen, 
and 
‘‘(ii) amounts paid or incurred with respect to such 
modification are properly chargeable to capital account 
of the taxpayer, 
such facility shall be deemed to have been originally placed 
in service as of the date that the property required to complete 
the modification described in subparagraph (B) is placed in 
service.’’. 
(4) CONFORMING AMENDMENTS.— 
(A) Section 38(b), as amended by the preceding provi-
sions of this Act, is amended— 
(i) in paragraph (34), by striking ‘‘plus’’ at the 
end, 
(ii) in paragraph (35), by striking the period at 
the end and inserting ‘‘, plus’’, and 
(iii) by adding at the end the following new para-
graph: 
‘‘(36) the clean hydrogen production credit determined 
under section 45V(a).’’. 
(B) The table of sections for subpart D of part IV 
of subchapter A of chapter 1, as amended by the preceding 
provisions of this Act, is amended by adding at the end 
the following new item: 
‘‘Sec. 45V. Credit for production of clean hydrogen.’’. 
(5) EFFECTIVE DATES.— 
(A) IN
GENERAL.—The amendments made by para-
graphs (1) and (4) of this subsection shall apply to hydrogen 
produced after December 31, 2022. 
(B) CREDIT
REDUCED
FOR
TAX-EXEMPT
BONDS.—The 
amendment made by paragraph (2) shall apply to facilities 
the construction of which begins after the date of enactment 
of this Act. 
(C) 
MODIFICATION
OF
EXISTING
FACILITIES.—The 
amendment made by paragraph (3) shall apply to modifica-
tions made after December 31, 2022. 
(b) CREDIT
FOR ELECTRICITY PRODUCED FROM RENEWABLE 
RESOURCES ALLOWED IF ELECTRICITY IS USED TO PRODUCE CLEAN 
HYDROGEN.— 
(1) IN GENERAL.—Section 45(e), as amended by the pre-
ceding provisions of this Act, is amended by adding at the 
end the following new paragraph:
H. R. 5376—123 
‘‘(13) SPECIAL RULE FOR ELECTRICITY USED AT A QUALIFIED 
CLEAN HYDROGEN PRODUCTION FACILITY.—Electricity produced 
by the taxpayer shall be treated as sold by such taxpayer 
to an unrelated person during the taxable year if— 
‘‘(A) such electricity is used during such taxable year 
by the taxpayer or a person related to the taxpayer at 
a qualified clean hydrogen production facility (as defined 
in section 45V(c)(3)) to produce qualified clean hydrogen 
(as defined in section 45V(c)(2)), and 
‘‘(B) such use and production is verified (in such form 
or manner as the Secretary may prescribe) by an unrelated 
third party.’’. 
(2) SIMILAR
RULE
FOR
ZERO-EMISSION
NUCLEAR
POWER 
PRODUCTION CREDIT.—Subsection (c)(2) of section 45U, as added 
by section 13105 of this Act, is amended by striking ‘‘and 
(5)’’ and inserting ‘‘(5), and (13)’’. 
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to electricity produced after December 31, 
2022. 
(c) ELECTION TO TREAT CLEAN HYDROGEN PRODUCTION FACILI-
TIES AS ENERGY PROPERTY.— 
(1) IN GENERAL.—Section 48(a), as amended by the pre-
ceding provisions of this Act, is amended— 
(A) by redesignating paragraph (15) as paragraph (16), 
and 
(B) by inserting after paragraph (14) the following 
new paragraph: 
‘‘(15) ELECTION TO TREAT CLEAN HYDROGEN PRODUCTION 
FACILITIES AS ENERGY PROPERTY.— 
‘‘(A) IN GENERAL.—In the case of any qualified property 
(as defined in paragraph (5)(D)) which is part of a specified 
clean hydrogen production facility— 
‘‘(i) such property shall be treated as energy prop-
erty for purposes of this section, and 
‘‘(ii) the energy percentage with respect to such 
property is— 
‘‘(I) in the case of a facility which is designed 
and reasonably expected to produce qualified clean 
hydrogen which is described in a subparagraph 
(A) of section 45V(b)(2), 1.2 percent, 
‘‘(II) in the case of a facility which is designed 
and reasonably expected to produce qualified clean 
hydrogen which is described in a subparagraph 
(B) of such section, 1.5 percent, 
‘‘(III) in the case of a facility which is designed 
and reasonably expected to produce qualified clean 
hydrogen which is described in a subparagraph 
(C) of such section, 2 percent, and 
‘‘(IV) in the case of a facility which is designed 
and reasonably expected to produce qualified clean 
hydrogen which is described in subparagraph (D) 
of such section, 6 percent. 
‘‘(B) DENIAL OF PRODUCTION CREDIT.—No credit shall 
be allowed under section 45V or section 45Q for any taxable 
year with respect to any specified clean hydrogen produc-
tion facility or any carbon capture equipment included 
at such facility.
H. R. 5376—124 
‘‘(C) 
SPECIFIED
CLEAN
HYDROGEN
PRODUCTION 
FACILITY.—For purposes of this paragraph, the term ‘speci-
fied clean hydrogen production facility’ means any qualified 
clean hydrogen production facility (as defined in section 
45V(c)(3))— 
‘‘(i) which is placed in service after December 31, 
2022, 
‘‘(ii) with respect to which— 
‘‘(I) no credit has been allowed under section 
45V or 45Q, and 
‘‘(II) the taxpayer makes an irrevocable elec-
tion to have this paragraph apply, and 
‘‘(iii) for which an unrelated third party has 
verified (in such form or manner as the Secretary 
may prescribe) that such facility produces hydrogen 
through a process which results in lifecycle greenhouse 
gas emissions which are consistent with the hydrogen 
that such facility was designed and expected to produce 
under subparagraph (A)(ii). 
‘‘(D) QUALIFIED
CLEAN
HYDROGEN.—For purposes of 
this paragraph, the term ‘qualified clean hydrogen’ has 
the meaning given such term by section 45V(c)(2). 
‘‘(E) REGULATIONS.—The Secretary shall issue such 
regulations or other guidance as the Secretary determines 
necessary to carry out the purposes of this section, 
including regulations or other guidance which recaptures 
so much of any credit allowed under this section as exceeds 
the amount of the credit which would have been allowed 
if the expected production were consistent with the actual 
verified production (or all of the credit so allowed in the 
absence of such verification).’’. 
(2) CONFORMING AMENDMENT.—Paragraph (9)(A)(i) of sec-
tion 48(a), as added by section 13102, is amended by inserting 
‘‘and paragraph (15)’’ after ‘‘paragraphs (1) through (8)’’. 
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to property placed in service after December 
31, 2022, and, for any property the construction of which begins 
prior to January 1, 2023, only to the extent of the basis thereof 
attributable to the construction, reconstruction, or erection after 
December 31, 2022. 
(d) TERMINATION
OF EXCISE TAX CREDIT
FOR HYDROGEN.— 
(1) IN GENERAL.—Section 6426(d)(2) is amended by striking 
subparagraph (D) and by redesignating subparagraphs (E), (F), 
and (G) as subparagraphs (D), (E), and (F), respectively. 
(2) 
CONFORMING
AMENDMENT.—Section 
6426(e)(2) 
is 
amended by striking ‘‘(F)’’ and inserting ‘‘(E)’’. 
(3) EFFECTIVE DATE.—The amendments made by this sub-
section shall apply to fuel sold or used after December 31, 
2022. 
PART 3—CLEAN ENERGY AND EFFICIENCY 
INCENTIVES FOR INDIVIDUALS 
SEC. 13301. EXTENSION, INCREASE, AND MODIFICATIONS OF NONBUSI-
NESS ENERGY PROPERTY CREDIT. 
(a) EXTENSION OF CREDIT.—Section 25C(g)(2) is amended by 
striking ‘‘December 31, 2021’’ and inserting ‘‘December 31, 2032’’.
H. R. 5376—125 
(b) ALLOWANCE OF CREDIT.—Section 25C(a) is amended to read 
as follows: 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to 30 percent of the sum 
of— 
‘‘(1) the amount paid or incurred by the taxpayer for quali-
fied energy efficiency improvements installed during such tax-
able year, and 
‘‘(2) the amount of the residential energy property expendi-
tures paid or incurred by the taxpayer during such taxable 
year.’’. 
(c) APPLICATION OF ANNUAL LIMITATION IN LIEU OF LIFETIME 
LIMITATION.—Section 25C(b) is amended to read as follows: 
‘‘(b) LIMITATIONS.— 
‘‘(1) IN GENERAL.—The credit allowed under this section 
with respect to any taxpayer for any taxable year shall not 
exceed $1,200. 
‘‘(2) ENERGY PROPERTY.—The credit allowed under this sec-
tion by reason of subsection (a)(2) with respect to any taxpayer 
for any taxable year shall not exceed, with respect to any 
item of qualified energy property, $600. 
‘‘(3) WINDOWS.—The credit allowed under this section by 
reason of subsection (a)(1) with respect to any taxpayer for 
any taxable year shall not exceed, in the aggregate with respect 
to all exterior windows and skylights, $600. 
‘‘(4) DOORS.—The credit allowed under this section by rea-
son of subsection (a)(1) with respect to any taxpayer for any 
taxable year shall not exceed— 
‘‘(A) $250 in the case of any exterior door, and 
‘‘(B) $500 in the aggregate with respect to all exterior 
doors. 
‘‘(5) HEAT PUMP AND HEAT PUMP WATER HEATERS; BIOMASS 
STOVES AND BOILERS.—Notwithstanding paragraphs (1) and (2), 
the credit allowed under this section by reason of subsection 
(a)(2) with respect to any taxpayer for any taxable year shall 
not, in the aggregate, exceed $2,000 with respect to amounts 
paid or incurred for property described in clauses (i) and (ii) 
of subsection (d)(2)(A) and in subsection (d)(2)(B).’’. 
(d) MODIFICATIONS RELATED TO QUALIFIED ENERGY EFFICIENCY 
IMPROVEMENTS.— 
(1) STANDARDS FOR ENERGY EFFICIENT BUILDING ENVELOPE 
COMPONENTS.—Section 25C(c)(2) is amended by striking 
‘‘meets—’’ and all that follows through the period at the end 
and inserting the following: ‘‘meets— 
‘‘(A) in the case of an exterior window or skylight, 
Energy Star most efficient certification requirements, 
‘‘(B) in the case of an exterior door, applicable Energy 
Star requirements, and 
‘‘(C) in the case of any other component, the prescrip-
tive criteria for such component established by the most 
recent International Energy Conservation Code standard 
in effect as of the beginning of the calendar year which 
is 2 years prior to the calendar year in which such compo-
nent is placed in service.’’. 
(2) ROOFS NOT TREATED AS BUILDING ENVELOPE COMPO-
NENTS.—Section 25C(c)(3) is amended by adding ‘‘and’’ at the
H. R. 5376—126 
end of subparagraph (B), by striking ‘‘, and’’ at the end of 
subparagraph (C) and inserting a period, and by striking 
subparagraph (D). 
(3) AIR
SEALING
INSULATION
ADDED
TO
DEFINITION
OF 
BUILDING
ENVELOPE
COMPONENT.—Section 25C(c)(3)(A) is 
amended by inserting ‘‘, including air sealing material or 
system,’’ after ‘‘material or system’’. 
(e) MODIFICATION OF RESIDENTIAL ENERGY PROPERTY EXPENDI-
TURES.—Section 25C(d) is amended to read as follows: 
‘‘(d) RESIDENTIAL ENERGY PROPERTY EXPENDITURES.—For pur-
poses of this section— 
‘‘(1) IN GENERAL.—The term ‘residential energy property 
expenditures’ means expenditures made by the taxpayer for 
qualified energy property which is— 
‘‘(A) installed on or in connection with a dwelling unit 
located in the United States and used as a residence by 
the taxpayer, and 
‘‘(B) originally placed in service by the taxpayer. 
Such term includes expenditures for labor costs properly allo-
cable to the onsite preparation, assembly, or original installa-
tion of the property. 
‘‘(2) QUALIFIED
ENERGY
PROPERTY.—The term ‘qualified 
energy property’ means any of the following: 
‘‘(A) Any of the following which meet or exceed the 
highest efficiency tier (not including any advanced tier) 
established by the Consortium for Energy Efficiency which 
is in effect as of the beginning of the calendar year in 
which the property is placed in service: 
‘‘(i) An electric or natural gas heat pump water 
heater. 
‘‘(ii) An electric or natural gas heat pump. 
‘‘(iii) A central air conditioner. 
‘‘(iv) A natural gas, propane, or oil water heater. 
‘‘(v) A natural gas, propane, or oil furnace or hot 
water boiler. 
‘‘(B) A biomass stove or boiler which— 
‘‘(i) uses the burning of biomass fuel to heat a 
dwelling unit located in the United States and used 
as a residence by the taxpayer, or to heat water for 
use in such a dwelling unit, and 
‘‘(ii) has a thermal efficiency rating of at least 
75 percent (measured by the higher heating value of 
the fuel). 
‘‘(C) Any oil furnace or hot water boiler which— 
‘‘(i) is placed in service after December 31, 2022, 
and before January 1, 2027, and— 
‘‘(I) meets or exceeds 2021 Energy Star effi-
ciency criteria, and 
‘‘(II) is rated by the manufacturer for use with 
fuel blends at least 20 percent of the volume of 
which consists of an eligible fuel, or 
‘‘(ii) is placed in service after December 31, 2026, 
and— 
‘‘(I) achieves an annual fuel utilization effi-
ciency rate of not less than 90, and
H. R. 5376—127 
‘‘(II) is rated by the manufacturer for use with 
fuel blends at least 50 percent of the volume of 
which consists of an eligible fuel. 
‘‘(D) Any improvement to, or replacement of, a panel-
board, sub-panelboard, branch circuits, or feeders which— 
‘‘(i) is installed in a manner consistent with the 
National Electric Code, 
‘‘(ii) has a load capacity of not less than 200 amps, 
‘‘(iii) is installed in conjunction with— 
‘‘(I) any qualified energy efficiency improve-
ments, or 
‘‘(II) any qualified energy property described 
in subparagraphs (A) through (C) for which a credit 
is allowed under this section for expenditures with 
respect to such property, and 
‘‘(iv) enables the installation and use of any prop-
erty described in subclause (I) or (II) of clause (iii). 
‘‘(3) ELIGIBLE FUEL.—For purposes of paragraph (2), the 
term ‘eligible fuel’ means— 
‘‘(A) biodiesel and renewable diesel (within the meaning 
of section 40A), and 
‘‘(B) second generation biofuel (within the meaning 
of section 40).’’. 
(f) HOME ENERGY AUDITS.— 
(1) IN GENERAL.—Section 25C(a), as amended by subsection 
(b), is amended by striking ‘‘and’’ at the end of paragraph 
(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 amount paid or incurred by the taxpayer during 
the taxable year for home energy audits.’’. 
(2) LIMITATION.—Section 25C(b), as amended by subsection 
(c), is amended adding at the end the following new paragraph: 
‘‘(6) HOME ENERGY AUDITS.— 
‘‘(A) DOLLAR LIMITATION.—The amount of the credit 
allowed under this section by reason of subsection (a)(3) 
shall not exceed $150. 
‘‘(B) SUBSTANTIATION REQUIREMENT.—No credit shall 
be allowed under this section by reason of subsection (a)(3) 
unless the taxpayer includes with the taxpayer’s return 
of tax such information or documentation as the Secretary 
may require.’’. 
(3) HOME ENERGY AUDITS.— 
(A) IN GENERAL.—Section 25C is amended by redesig-
nating subsections (e), (f), and (g), as subsections (f), (g), 
and (h), respectively, and by inserting after subsection 
(d) the following new subsection: 
‘‘(e) HOME ENERGY AUDITS.—For purposes of this section, the 
term ‘home energy audit’ means an inspection and written report 
with respect to a dwelling unit located in the United States and 
owned or used by the taxpayer as the taxpayer’s principal residence 
(within the meaning of section 121) which— 
‘‘(1) identifies the most significant and cost-effective energy 
efficiency improvements with respect to such dwelling unit, 
including an estimate of the energy and cost savings with 
respect to each such improvement, and
H. R. 5376—128 
‘‘(2) is conducted and prepared by a home energy auditor 
that meets the certification or other requirements specified 
by the Secretary in regulations or other guidance (as prescribed 
by the Secretary not later than 365 days after the date of 
the enactment of this subsection).’’. 
(B) CONFORMING AMENDMENT.—Section 1016(a)(33) is 
amended by striking ‘‘section 25C(f)’’ and inserting ‘‘section 
25C(g)’’. 
(4) LACK OF SUBSTANTIATION TREATED AS MATHEMATICAL 
OR CLERICAL ERROR.—Section 6213(g)(2) is amended— 
(A) in subparagraph (P), by striking ‘‘and’’ at the end, 
(B) in subparagraph (Q), by striking the period at 
the end and inserting ‘‘, and’’, and 
(C) by inserting after subparagraph (Q) the following: 
‘‘(R) an omission of information or documentation 
required under section 25C(b)(6)(B) (relating to home 
energy audits) to be included on a return.’’. 
(g) IDENTIFICATION NUMBER REQUIREMENT.— 
(1) IN GENERAL.—Section 25C, as amended by this section, 
is amended by redesignating subsection (h) as subsection (i) 
and by inserting after subsection (g) the following new sub-
section: 
‘‘(h) PRODUCT IDENTIFICATION NUMBER REQUIREMENT.— 
‘‘(1) IN GENERAL.—No credit shall be allowed under sub-
section (a) with respect to any item of specified property placed 
in service after December 31, 2024, unless— 
‘‘(A) such item is produced by a qualified manufacturer, 
and 
‘‘(B) the taxpayer includes the qualified product identi-
fication number of such item on the return of tax for 
the taxable year. 
‘‘(2) QUALIFIED
PRODUCT
IDENTIFICATION
NUMBER.—For 
purposes of this section, the term ‘qualified product identifica-
tion number’ means, with respect to any item of specified 
property, the product identification number assigned to such 
item by the qualified manufacturer pursuant to the method-
ology referred to in paragraph (3). 
‘‘(3) QUALIFIED MANUFACTURER.—For purposes of this sec-
tion, the term ‘qualified manufacturer’ means any manufacturer 
of specified property which enters into an agreement with the 
Secretary which provides that such manufacturer will— 
‘‘(A) assign a product identification number to each 
item of specified property produced by such manufacturer 
utilizing a methodology that will ensure that such number 
(including any alphanumeric) is unique to each such item 
(by utilizing numbers or letters which are unique to such 
manufacturer or by such other method as the Secretary 
may provide), 
‘‘(B) label such item with such number in such manner 
as the Secretary may provide, and 
‘‘(C) make periodic written reports to the Secretary 
(at such times and in such manner as the Secretary may 
provide) of the product identification numbers so assigned 
and including such information as the Secretary may 
require with respect to the item of specified property to 
which such number was so assigned.
H. R. 5376—129 
‘‘(4) SPECIFIED PROPERTY.—For purposes of this subsection, 
the term ‘specified property’ means any qualified energy prop-
erty and any property described in subparagraph (B) or (C) 
of subsection (c)(3).’’. 
(2) OMISSION OF CORRECT PRODUCT IDENTIFICATION NUMBER 
TREATED
AS
MATHEMATICAL
OR
CLERICAL
ERROR.—Section 
6213(g)(2), as amended by the preceding provisions of this 
Act, is amended— 
(A) in subparagraph (Q), by striking ‘‘and’’ at the end, 
(B) in subparagraph (R), by striking the period at 
the end and inserting ‘‘, and’’, and 
(C) by inserting after subparagraph (R) the following: 
‘‘(S) an omission of a correct product identification 
number required under section 25C(h) (relating to credit 
for nonbusiness energy property) to be included on a 
return.’’. 
(h) ENERGY EFFICIENT HOME IMPROVEMENT CREDIT.— 
(1) IN GENERAL.—The heading for section 25C is amended 
by striking ‘‘NONBUSINESS ENERGY PROPERTY’’ and inserting 
‘‘ENERGY EFFICIENT HOME IMPROVEMENT CREDIT’’. 
(2) CLERICAL AMENDMENT.—The table of sections for sub-
part A of part IV of subchapter A of chapter 1 is amended 
by striking the item relating to section 25C and inserting 
after the item relating to section 25B the following item: 
‘‘Sec. 25C. Energy efficient home improvement credit.’’. 
(i) EFFECTIVE DATES.— 
(1) IN
GENERAL.—Except as otherwise provided by this 
subsection, the amendments made by this section shall apply 
to property placed in service after December 31, 2022. 
(2) EXTENSION OF CREDIT.—The amendments made by sub-
section (a) shall apply to property placed in service after 
December 31, 2021. 
(3) IDENTIFICATION
NUMBER
REQUIREMENT.—The amend-
ments made by subsection (g) shall apply to property placed 
in service after December 31, 2024. 
SEC. 13302. RESIDENTIAL CLEAN ENERGY CREDIT. 
(a) EXTENSION OF CREDIT.— 
(1) IN GENERAL.—Section 25D(h) is amended by striking 
‘‘December 31, 2023’’ and inserting ‘‘December 31, 2034’’. 
(2) 
APPLICATION
OF
PHASEOUT.—Section 
25D(g) 
is 
amended— 
(A) in paragraph (2), by striking ‘‘before January 1, 
2023, 26 percent, and’’ and inserting ‘‘before January 1, 
2022, 26 percent,’’, and 
(B) by striking paragraph (3) and by inserting after 
paragraph (2) the following new paragraphs: 
‘‘(3) in the case of property placed in service after December 
31, 2021, and before January 1, 2033, 30 percent, 
‘‘(4) in the case of property placed in service after December 
31, 2032, and before January 1, 2034, 26 percent, and 
‘‘(5) in the case of property placed in service after December 
31, 2033, and before January 1, 2035, 22 percent.’’. 
(b) RESIDENTIAL CLEAN ENERGY CREDIT FOR BATTERY STORAGE 
TECHNOLOGY; CERTAIN EXPENDITURES DISALLOWED.— 
(1) ALLOWANCE OF CREDIT.—Paragraph (6) of section 25D(a) 
is amended to read as follows:
H. R. 5376—130 
‘‘(6) the qualified battery storage technology expenditures,’’. 
(2) DEFINITION
OF
QUALIFIED
BATTERY
STORAGE
TECH-
NOLOGY
EXPENDITURE.—Paragraph (6) of section 25D(d) is 
amended to read as follows: 
‘‘(6) QUALIFIED
BATTERY
STORAGE
TECHNOLOGY
EXPENDI-
TURE.—The term ‘qualified battery storage technology expendi-
ture’ means an expenditure for battery storage technology 
which— 
‘‘(A) is installed in connection with a dwelling unit 
located in the United States and used as a residence by 
the taxpayer, and 
‘‘(B) has a capacity of not less than 3 kilowatt hours.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 25D(d)(3) is amended by inserting ‘‘, without 
regard to subparagraph (D) thereof’’ after ‘‘section 48(c)(1)’’. 
(2) The heading for section 25D is amended by striking 
‘‘ENERGY EFFICIENT PROPERTY’’ and inserting ‘‘CLEAN ENERGY 
CREDIT’’. 
(3) The table of sections for subpart A of part IV of sub-
chapter A of chapter 1 is amended by striking the item relating 
to section 25D and inserting the following: 
‘‘Sec. 25D. Residential clean energy credit.’’. 
(d) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendments made by this section shall apply to expenditures 
made after December 31, 2021. 
(2) RESIDENTIAL CLEAN ENERGY CREDIT FOR BATTERY STOR-
AGE TECHNOLOGY; CERTAIN EXPENDITURES DISALLOWED.—The 
amendments made by subsection (b) shall apply to expenditures 
made after December 31, 2022. 
SEC. 13303. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION. 
(a) IN GENERAL.— 
(1) MAXIMUM AMOUNT OF DEDUCTION.—Subsection (b) of 
section 179D is amended to read as follows: 
‘‘(b) MAXIMUM AMOUNT OF DEDUCTION.— 
‘‘(1) IN GENERAL.—The deduction under subsection (a) with 
respect to any building for any taxable year shall not exceed 
the excess (if any) of— 
‘‘(A) the product of— 
‘‘(i) the applicable dollar value, and 
‘‘(ii) the square footage of the building, over 
‘‘(B) the aggregate amount of the deductions under 
subsections (a) and (f) with respect to the building for 
the 3 taxable years immediately preceding such taxable 
year (or, in the case of any such deduction allowable to 
a person other than the taxpayer, for any taxable year 
ending during the 4-taxable-year period ending with such 
taxable year). 
‘‘(2) APPLICABLE
DOLLAR
VALUE.—For purposes of para-
graph (1)(A)(i), the applicable dollar value shall be an amount 
equal to $0.50 increased (but not above $1.00) by $0.02 for 
each percentage point by which the total annual energy and 
power costs for the building are certified to be reduced by 
a percentage greater than 25 percent. 
‘‘(3) INCREASED
DEDUCTION
AMOUNT
FOR
CERTAIN
PROP-
ERTY.—
H. R. 5376—131 
‘‘(A) IN GENERAL.—In the case of any property which 
satisfies the requirements of subparagraph (B), paragraph 
(2) shall be applied by substituting ‘$2.50’ for ‘$0.50’, ‘$.10’ 
for ‘$.02’, and ‘$5.00’ for ‘$1.00’. 
‘‘(B) PROPERTY
REQUIREMENTS.—In the case of any 
energy efficient commercial building property, energy effi-
cient building retrofit property, or property installed pursu-
ant to a qualified retrofit plan, such property shall meet 
the requirements of this subparagraph if — 
‘‘(i) installation of such property begins prior to 
the date that is 60 days after the Secretary publishes 
guidance with respect to the requirements of para-
graphs (4)(A) and (5), or 
‘‘(ii) installation of such property satisfies the 
requirements of paragraphs (4)(A) and (5). 
‘‘(4) PREVAILING WAGE REQUIREMENTS.— 
‘‘(A) IN GENERAL.—The requirements described in this 
subparagraph with respect to any property are that the 
taxpayer shall ensure that any laborers and mechanics 
employed by the taxpayer or any contractor or subcon-
tractor in the installation of any property shall be paid 
wages at rates not less than the prevailing rates for 
construction, alteration, or repair of a similar character 
in the locality in which such property is located as most 
recently determined by the Secretary of Labor, in accord-
ance with subchapter IV of chapter 31 of title 40, United 
States Code. 
‘‘(B) CORRECTION AND PENALTY RELATED TO FAILURE 
TO
SATISFY
WAGE
REQUIREMENTS.—Rules similar to the 
rules of section 45(b)(7)(B) shall apply. 
‘‘(5) APPRENTICESHIP REQUIREMENTS.—Rules similar to the 
rules of section 45(b)(8) shall apply. 
‘‘(6) REGULATIONS.—The Secretary shall issue such regula-
tions or other guidance as the Secretary determines necessary 
to carry out the purposes of this subsection, including regula-
tions or other guidance which provides for requirements for 
recordkeeping or information reporting for purposes of admin-
istering the requirements of this subsection.’’. 
(2) MODIFICATION
OF
EFFICIENCY
STANDARD.—Section 
179D(c)(1)(D) is amended by striking ‘‘50 percent’’ and inserting 
‘‘25 percent’’. 
(3) REFERENCE STANDARD.—Section 179D(c)(2) is amended 
by striking ‘‘the most recent’’ and inserting the following: ‘‘the 
more recent of— 
‘‘(A) Standard 90.1-2007 published by the American 
Society of Heating, Refrigerating, and Air Conditioning 
Engineers and the Illuminating Engineering Society of 
North America, or 
‘‘(B) the most recent’’. 
(4) FINAL DETERMINATION; EXTENSION OF PERIOD; PLACED 
IN SERVICE DEADLINE.—Subparagraph (B) of section 179D(c)(2), 
as amended by paragraph (3), is amended— 
(A) by inserting ‘‘for which the Department of Energy 
has issued a final determination and’’ before ‘‘which has 
been affirmed’’, 
(B) by striking ‘‘2 years’’ and inserting ‘‘4 years’’, and
H. R. 5376—132 
(C) by striking ‘‘that construction of such property 
begins’’ and inserting ‘‘such property is placed in service’’. 
(5) ELIMINATION OF PARTIAL ALLOWANCE.— 
(A) IN GENERAL.—Section 179D(d) is amended— 
(i) by striking paragraph (1), and 
(ii) by redesignating paragraphs (2) through (6) 
as paragraphs (1) through (5), respectively. 
(B) CONFORMING AMENDMENTS.— 
(i) Section 179D(c)(1)(D) is amended— 
(I) by striking ‘‘subsection (d)(6)’’ and inserting 
‘‘subsection (d)(5)’’, and 
(II) 
by 
striking 
‘‘subsection 
(d)(2)’’ 
and 
inserting ‘‘subsection (d)(1)’’. 
(ii) Paragraph (2)(A) of section 179D(d), as redesig-
nated by subparagraph (A), is amended by striking 
‘‘paragraph (2)’’ and inserting ‘‘paragraph (1)’’. 
(iii) Paragraph (4) of section 179D(d), as redesig-
nated by subparagraph (A), is amended by striking 
‘‘paragraph 
(3)(B)(iii)’’ 
and 
inserting 
‘‘paragraph 
(2)(B)(iii)’’. 
(iv) Section 179D is amended by striking sub-
section (f). 
(v) Section 179D(h) is amended by striking ‘‘or 
(d)(1)(A)’’. 
(6) ALLOCATION
OF
DEDUCTION
BY
CERTAIN
TAX-EXEMPT 
ENTITIES.—Paragraph (3) of section 179D(d), as redesignated 
by paragraph (5)(A), is amended to read as follows: 
‘‘(3) ALLOCATION OF DEDUCTION BY CERTAIN TAX-EXEMPT 
ENTITIES.— 
‘‘(A) IN
GENERAL.—In the case of energy efficient 
commercial building property installed on or in property 
owned by a specified tax-exempt entity, the Secretary shall 
promulgate regulations or guidance to allow the allocation 
of the deduction to the person primarily responsible for 
designing the property in lieu of the owner of such property. 
Such person shall be treated as the taxpayer for purposes 
of this section. 
‘‘(B) SPECIFIED TAX-EXEMPT ENTITY.—For purposes of 
this paragraph, the term ‘specified tax-exempt entity’ 
means— 
‘‘(i) the United States, any State or political sub-
division thereof, any possession of the United States, 
or any agency or instrumentality of any of the fore-
going, 
‘‘(ii) an Indian tribal government (as defined in 
section 30D(g)(9)) or Alaska Native Corporation (as 
defined in section 3 of the Alaska Native Claims Settle-
ment Act (43 U.S.C. 1602(m)), and 
‘‘(iii) any organization exempt from tax imposed 
by this chapter.’’. 
(7) ALTERNATIVE
DEDUCTION
FOR
ENERGY
EFFICIENT 
BUILDING RETROFIT PROPERTY.—Section 179D, as amended by 
the preceding provisions of this section, is amended by inserting 
after subsection (e) the following new subsection: 
‘‘(f) ALTERNATIVE DEDUCTION FOR ENERGY EFFICIENT BUILDING 
RETROFIT PROPERTY.—
H. R. 5376—133 
‘‘(1) IN GENERAL.—In the case of a taxpayer which elects 
(at such time and in such manner as the Secretary may provide) 
the application of this subsection with respect to any qualified 
building, there shall be allowed as a deduction for the taxable 
year which includes the date of the qualifying final certification 
with respect to the qualified retrofit plan of such building, 
an amount equal to the lesser of— 
‘‘(A) the excess described in subsection (b) (determined 
by substituting ‘energy use intensity’ for ‘total annual 
energy and power costs’ in paragraph (2) thereof), or 
‘‘(B) the aggregate adjusted basis (determined after 
taking into account all adjustments with respect to such 
taxable year other than the reduction under subsection 
(e)) of energy efficient building retrofit property placed 
in service by the taxpayer pursuant to such qualified ret-
rofit plan. 
‘‘(2) QUALIFIED RETROFIT PLAN.—For purposes of this sub-
section, the term ‘qualified retrofit plan’ means a written plan 
prepared by a qualified professional which specifies modifica-
tions to a building which, in the aggregate, are expected to 
reduce such building’s energy use intensity by 25 percent or 
more in comparison to the baseline energy use intensity of 
such building. Such plan shall provide for a qualified profes-
sional to— 
‘‘(A) as of any date during the 1-year period ending 
on the date on which the property installed pursuant to 
such plan is placed in service, certify the energy use inten-
sity of such building as of such date, 
‘‘(B) certify the status of property installed pursuant 
to such plan as meeting the requirements of subparagraphs 
(B) and (C) of paragraph (3), and 
‘‘(C) as of any date that is more than 1 year after 
the date on which the property installed pursuant to such 
plan is placed in service, certify the energy use intensity 
of such building as of such date. 
‘‘(3) ENERGY EFFICIENT BUILDING RETROFIT PROPERTY.—For 
purposes of this subsection, the term ‘energy efficient building 
retrofit property’ means property— 
‘‘(A) with respect to which depreciation (or amortization 
in lieu of depreciation) is allowable, 
‘‘(B) which is installed on or in any qualified building, 
‘‘(C) which is installed as part of— 
‘‘(i) the interior lighting systems, 
‘‘(ii) the heating, cooling, ventilation, and hot water 
systems, or 
‘‘(iii) the building envelope, and 
‘‘(D) which is certified in accordance with paragraph 
(2)(B) as meeting the requirements of subparagraphs (B) 
and (C). 
‘‘(4) QUALIFIED BUILDING.—For purposes of this subsection, 
the term ‘qualified building’ means any building which— 
‘‘(A) is located in the United States, and 
‘‘(B) was originally placed in service not less than 
5 years before the establishment of the qualified retrofit 
plan with respect to such building. 
‘‘(5) QUALIFYING
FINAL
CERTIFICATION.—For purposes of 
this subsection, the term ‘qualifying final certification’ means,
H. R. 5376—134 
with respect to any qualified retrofit plan, the certification 
described in paragraph (2)(C) if the energy use intensity cer-
tified in such certification is not more than 75 percent of 
the baseline energy use intensity of the building. 
‘‘(6) BASELINE ENERGY USE INTENSITY.— 
‘‘(A) IN GENERAL.—For purposes of this subsection, the 
term ‘baseline energy use intensity’ means the energy use 
intensity certified under paragraph (2)(A), as adjusted to 
take into account weather. 
‘‘(B) DETERMINATION OF ADJUSTMENT.—For purposes 
of subparagraph (A), the adjustments described in such 
subparagraph shall be determined in such manner as the 
Secretary may provide. 
‘‘(7) OTHER DEFINITIONS.—For purposes of this subsection— 
‘‘(A) ENERGY USE INTENSITY.—The term ‘energy use 
intensity’ means the annualized, measured site energy use 
intensity determined in accordance with such regulations 
or other guidance as the Secretary may provide and meas-
ured in British thermal units. 
‘‘(B) QUALIFIED
PROFESSIONAL.—The term ‘qualified 
professional’ means an individual who is a licensed 
architect or a licensed engineer and meets such other 
requirements as the Secretary may provide. 
‘‘(8) COORDINATION WITH DEDUCTION OTHERWISE ALLOWED 
UNDER SUBSECTION (a).— 
‘‘(A) IN GENERAL.—In the case of any building with 
respect to which an election is made under paragraph 
(1), the term ‘energy efficient commercial building property’ 
shall not include any energy efficient building retrofit prop-
erty with respect to which a deduction is allowable under 
this subsection. 
‘‘(B) CERTAIN RULES NOT APPLICABLE.— 
‘‘(i) IN
GENERAL.—Except as provided in clause 
(ii), subsection (d) shall not apply for purposes of this 
subsection. 
‘‘(ii) ALLOCATION OF DEDUCTION BY CERTAIN TAX- 
EXEMPT ENTITIES.—Rules similar to subsection (d)(3) 
shall apply for purposes of this subsection.’’. 
(8) INFLATION ADJUSTMENT.—Section 179D(g) is amended— 
(A) by striking ‘‘2020’’ and inserting ‘‘2022’’, 
(B) by striking ‘‘or subsection (d)(1)(A)’’, and 
(C) by striking ‘‘2019’’ and inserting ‘‘2021’’. 
(b) APPLICATION TO REAL ESTATE INVESTMENT TRUST EARNINGS 
AND PROFITS.—Section 312(k)(3)(B) is amended— 
(1) by striking ‘‘For purposes of computing the earnings 
and profits of a corporation’’ and inserting the following: 
‘‘(i) IN GENERAL.—For purposes of computing the 
earnings and profits of a corporation, except as pro-
vided in clause (ii)’’, and 
(2) by adding at the end the following new clause: 
‘‘(ii) SPECIAL RULE.—In the case of a corporation 
that is a real estate investment trust, any amount 
deductible under section 179D shall be allowed in the 
year in which the property giving rise to such deduction 
is placed in service (or, in the case of energy efficient 
building retrofit property, the year in which the quali-
fying final certification is made).’’.
H. R. 5376—135 
(c) CONFORMING
AMENDMENT.—Paragraph (1) of section 
179D(d), as redesignated by subsection (a)(5)(A), is amended by 
striking ‘‘not later than the date that is 2 years before the date 
that construction of such property begins’’ and inserting ‘‘not later 
than the date that is 4 years before the date such property is 
placed in service’’. 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as otherwise provided in this sub-
section, the amendments made by this section shall apply to 
taxable years beginning after December 31, 2022. 
(2) ALTERNATIVE
DEDUCTION
FOR
ENERGY
EFFICIENT 
BUILDING RETROFIT PROPERTY.—Subsection (f) of section 179D 
of the Internal Revenue Code of 1986 (as amended by this 
section), and any other provision of such section solely for 
purposes of applying such subsection, shall apply to property 
placed in service after December 31, 2022 (in taxable years 
ending after such date) if such property is placed in service 
pursuant to qualified retrofit plan (within the meaning of such 
section) established after such date. 
SEC. 13304. EXTENSION, INCREASE, AND MODIFICATIONS OF NEW 
ENERGY EFFICIENT HOME CREDIT. 
(a) EXTENSION
OF CREDIT.—Section 45L(g) is amended by 
striking ‘‘December 31, 2021’’ and inserting ‘‘December 31, 2032’’. 
(b) INCREASE IN CREDIT AMOUNTS.—Paragraph (2) of section 
45L(a) is amended to read as follows: 
‘‘(2) APPLICABLE AMOUNT.—For purposes of paragraph (1), 
the applicable amount is an amount equal to— 
‘‘(A) in the case of a dwelling unit which is eligible 
to participate in the Energy Star Residential New Construc-
tion Program or the Energy Star Manufactured New Homes 
program— 
‘‘(i) which meets the requirements of subsection 
(c)(1)(A) (and which does not meet the requirements 
of subsection (c)(1)(B)), $2,500, and 
‘‘(ii) which meets the requirements of subsection 
(c)(1)(B), $5,000, and 
‘‘(B) in the case of a dwelling unit which is part of 
a building eligible to participate in the Energy Star Multi-
family New Construction Program— 
‘‘(i) which meets the requirements of subsection 
(c)(1)(A) (and which does not meet the requirements 
of subsection (c)(1)(B)), $500, and 
‘‘(ii) which meets the requirements of subsection 
(c)(1)(B), $1,000.’’. 
(c) MODIFICATION OF ENERGY SAVING REQUIREMENTS.—Section 
45L(c) is amended to read as follows: 
‘‘(c) ENERGY SAVING REQUIREMENTS.— 
‘‘(1) IN GENERAL.— 
‘‘(A) IN GENERAL.—A dwelling unit meets the require-
ments of this subparagraph if such dwelling unit meets 
the requirements of paragraph (2) or (3) (whichever is 
applicable). 
‘‘(B) ZERO ENERGY READY HOME PROGRAM.—A dwelling 
unit meets the requirements of this subparagraph if such 
dwelling unit is certified as a zero energy ready home
H. R. 5376—136 
under the zero energy ready home program of the Depart-
ment of Energy as in effect on January 1, 2023 (or any 
successor program determined by the Secretary). 
‘‘(2) SINGLE-FAMILY HOME REQUIREMENTS.—A dwelling unit 
meets the requirements of this paragraph if— 
‘‘(A) such dwelling unit meets— 
‘‘(i)(I) in the case of a dwelling unit acquired before 
January 1, 2025, the Energy Star Single-Family New 
Homes National Program Requirements 3.1, or 
‘‘(II) in the case of a dwelling unit acquired after 
December 31, 2024, the Energy Star Single-Family 
New Homes National Program Requirements 3.2, and 
‘‘(ii) the most recent Energy Star Single-Family 
New Homes Program Requirements applicable to the 
location of such dwelling unit (as in effect on the latter 
of January 1, 2023, or January 1 of two calendar 
years prior to the date the dwelling unit was acquired), 
or 
‘‘(B) such dwelling unit meets the most recent Energy 
Star Manufactured Home National program requirements 
as in effect on the latter of January 1, 2023, or January 
1 of two calendar years prior to the date such dwelling 
unit is acquired. 
‘‘(3) MULTI-FAMILY HOME REQUIREMENTS.—A dwelling unit 
meets the requirements of this paragraph if— 
‘‘(A) such dwelling unit meets the most recent Energy 
Star Multifamily New Construction National Program 
Requirements (as in effect on either January 1, 2023, or 
January 1 of three calendar years prior to the date the 
dwelling was acquired, whichever is later), and 
‘‘(B) such dwelling unit meets the most recent Energy 
Star Multifamily New Construction Regional Program 
Requirements applicable to the location of such dwelling 
unit (as in effect on either January 1, 2023, or January 
1 of three calendar years prior to the date the dwelling 
was acquired, whichever is later).’’. 
(d) PREVAILING WAGE REQUIREMENT.—Section 45L is amended 
by redesignating subsection (g) as subsection (h) and by inserting 
after subsection (f) the following new subsection: 
‘‘(g) PREVAILING WAGE REQUIREMENT.— 
‘‘(1) IN GENERAL.—In the case of a qualifying residence 
described in subsection (a)(2)(B) meeting the prevailing wage 
requirements of paragraph (2)(A), the credit amount allowed 
with respect to such residence shall be— 
‘‘(A) $2,500 in the case of a residence which meets 
the requirements of subparagraph (A) of subsection (c)(1) 
(and which does not meet the requirements of subpara-
graph (B) of such subsection), and 
‘‘(B) $5,000 in the case of a residence which meets 
the requirements of subsection (c)(1)(B). 
‘‘(2) PREVAILING WAGE REQUIREMENTS.— 
‘‘(A) IN GENERAL.—The requirements described in this 
subparagraph with respect to any qualified residence are 
that the taxpayer shall ensure that any laborers and 
mechanics employed by the taxpayer or any contractor 
or subcontractor in the construction of such residence shall 
be paid wages at rates not less than the prevailing rates
H. R. 5376—137 
for construction, alteration, or repair of a similar character 
in the locality in which such residence is located as most 
recently determined by the Secretary of Labor, in accord-
ance with subchapter IV of chapter 31 of title 40, United 
States Code. 
‘‘(B) CORRECTION AND PENALTY RELATED TO FAILURE 
TO
SATISFY
WAGE
REQUIREMENTS.—Rules similar to the 
rules of section 45(b)(7)(B) shall apply. 
‘‘(3) REGULATIONS
AND
GUIDANCE.—The Secretary shall 
issue such regulations or other guidance as the Secretary deter-
mines necessary to carry out the purposes of this subsection, 
including regulations or other guidance which provides for 
requirements for recordkeeping or information reporting for 
purposes of administering the requirements of this subsection.’’. 
(e) BASIS ADJUSTMENT.—Section 45L(e) is amended by inserting 
after the first sentence the following: ‘‘This subsection shall not 
apply for purposes of determining the adjusted basis of any building 
under section 42.’’. 
(f) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendments made by this section shall apply to dwelling units 
acquired after December 31, 2022. 
(2) EXTENSION OF CREDIT.—The amendments made by sub-
section (a) shall apply to dwelling units acquired after December 
31, 2021. 
PART 4—CLEAN VEHICLES 
SEC. 13401. CLEAN VEHICLE CREDIT. 
(a) PER
VEHICLE
DOLLAR
LIMITATION.—Section 30D(b) is 
amended by striking paragraphs (2) and (3) and inserting the 
following: 
‘‘(2) CRITICAL
MINERALS.—In the case of a vehicle with 
respect to which the requirement described in subsection 
(e)(1)(A) is satisfied, the amount determined under this para-
graph is $3,750. 
‘‘(3) BATTERY COMPONENTS.—In the case of a vehicle with 
respect to which the requirement described in subsection 
(e)(2)(A) is satisfied, the amount determined under this para-
graph is $3,750.’’. 
(b) FINAL ASSEMBLY.—Section 30D(d) is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (E), by striking ‘‘and’’ at the end, 
(B) in subparagraph (F)(ii), by striking the period at 
the end and inserting ‘‘, and’’, and 
(C) by adding at the end the following: 
‘‘(G) the final assembly of which occurs within North 
America.’’, 
(2) by adding at the end the following: 
‘‘(5) FINAL ASSEMBLY.—For purposes of paragraph (1)(G), 
the term ‘final assembly’ means the process by which a manu-
facturer produces a new clean vehicle at, or through the use 
of, a plant, factory, or other place from which the vehicle 
is delivered to a dealer or importer with all component parts 
necessary for the mechanical operation of the vehicle included 
with the vehicle, whether or not the component parts are 
permanently installed in or on the vehicle.’’.
H. R. 5376—138 
(c) DEFINITION OF NEW CLEAN VEHICLE.— 
(1) IN GENERAL.—Section 30D(d), as amended by the pre-
ceding provisions of this section, is amended— 
(A) in the heading, by striking ‘‘QUALIFIED PLUG-IN 
ELECTRIC DRIVE MOTOR’’ and inserting ‘‘CLEAN’’, 
(B) in paragraph (1)— 
(i) in the matter preceding subparagraph (A), by 
striking ‘‘qualified plug-in electric drive motor’’ and 
inserting ‘‘clean’’, 
(ii) in subparagraph (C), by inserting ‘‘qualified’’ 
before ‘‘manufacturer’’, 
(iii) in subparagraph (F)— 
(I) in clause (i), by striking ‘‘4’’ and inserting 
‘‘7’’, and 
(II) in clause (ii), by striking ‘‘and’’ at the 
end, 
(iv) in subparagraph (G), by striking the period 
at the end and inserting ‘‘, and’’, and 
(v) by adding at the end the following: 
‘‘(H) for which the person who sells any vehicle to 
the taxpayer furnishes a report to the taxpayer and to 
the Secretary, at such time and in such manner as the 
Secretary shall provide, containing— 
‘‘(i) the name and taxpayer identification number 
of the taxpayer, 
‘‘(ii) the vehicle identification number of the 
vehicle, unless, in accordance with any applicable rules 
promulgated by the Secretary of Transportation, the 
vehicle is not assigned such a number, 
‘‘(iii) the battery capacity of the vehicle, 
‘‘(iv) verification that original use of the vehicle 
commences with the taxpayer, and 
‘‘(v) the maximum credit under this section allow-
able to the taxpayer with respect to the vehicle.’’, 
(C) in paragraph (3)— 
(i) in the heading, by striking ‘‘MANUFACTURER’’ 
and inserting ‘‘QUALIFIED MANUFACTURER’’, 
(ii) by striking ‘‘The term ‘manufacturer’ has the 
meaning given such term in’’ and inserting ‘‘The term 
‘qualified manufacturer’ means any manufacturer 
(within the meaning of the’’, and 
(iii) by inserting ‘‘) which enters into a written 
agreement with the Secretary under which such manu-
facturer agrees to make periodic written reports to 
the Secretary (at such times and in such manner as 
the Secretary may provide) providing vehicle identifica-
tion numbers and such other information related to 
each vehicle manufactured by such manufacturer as 
the Secretary may require’’ before the period at the 
end, and 
(D) by adding at the end the following: 
‘‘(6) NEW QUALIFIED FUEL CELL MOTOR VEHICLE.—For pur-
poses of this section, the term ‘new clean vehicle’ shall include 
any new qualified fuel cell motor vehicle (as defined in section 
30B(b)(3)) which meets the requirements under subparagraphs 
(G) and (H) of paragraph (1).’’. 
(2) CONFORMING AMENDMENTS.—Section 30D is amended—
H. R. 5376—139 
(A) in subsection (a), by striking ‘‘new qualified plug- 
in electric drive motor vehicle’’ and inserting ‘‘new clean 
vehicle’’, and 
(B) in subsection (b)(1), by striking ‘‘new qualified plug- 
in electric drive motor vehicle’’ and inserting ‘‘new clean 
vehicle’’. 
(d) ELIMINATION
OF LIMITATION
ON NUMBER
OF VEHICLES 
ELIGIBLE FOR CREDIT.—Section 30D is amended by striking sub-
section (e). 
(e) CRITICAL MINERAL
AND BATTERY COMPONENT REQUIRE-
MENTS.— 
(1) IN GENERAL.—Section 30D, as amended by the preceding 
provisions of this section, is amended by inserting after sub-
section (d) the following: 
‘‘(e) CRITICAL MINERAL
AND BATTERY COMPONENT REQUIRE-
MENTS.— 
‘‘(1) CRITICAL MINERALS REQUIREMENT.— 
‘‘(A) IN GENERAL.—The requirement described in this 
subparagraph with respect to a vehicle is that, with respect 
to the battery from which the electric motor of such vehicle 
draws electricity, the percentage of the value of the 
applicable critical minerals (as defined in section 45X(c)(6)) 
contained in such battery that were— 
‘‘(i) extracted or processed— 
‘‘(I) in the United States, or 
‘‘(II) in any country with which the United 
States has a free trade agreement in effect, or 
‘‘(ii) recycled in North America, 
is equal to or greater than the applicable percentage (as 
certified by the qualified manufacturer, in such form or 
manner as prescribed by the Secretary). 
‘‘(B) 
APPLICABLE
PERCENTAGE.—For 
purposes 
of 
subparagraph (A), the applicable percentage shall be— 
‘‘(i) in the case of a vehicle placed in service after 
the date on which the proposed guidance described 
in paragraph (3)(B) is issued by the Secretary and 
before January 1, 2024, 40 percent, 
‘‘(ii) in the case of a vehicle placed in service during 
calendar year 2024, 50 percent, 
‘‘(iii) in the case of a vehicle placed in service 
during calendar year 2025, 60 percent, 
‘‘(iv) in the case of a vehicle placed in service 
during calendar year 2026, 70 percent, and 
‘‘(v) in the case of a vehicle placed in service after 
December 31, 2026, 80 percent. 
‘‘(2) BATTERY COMPONENTS.— 
‘‘(A) IN GENERAL.—The requirement described in this 
subparagraph with respect to a vehicle is that, with respect 
to the battery from which the electric motor of such vehicle 
draws electricity, the percentage of the value of the compo-
nents contained in such battery that were manufactured 
or assembled in North America is equal to or greater than 
the applicable percentage (as certified by the qualified 
manufacturer, in such form or manner as prescribed by 
the Secretary). 
‘‘(B) 
APPLICABLE
PERCENTAGE.—For 
purposes 
of 
subparagraph (A), the applicable percentage shall be—
H. R. 5376—140 
‘‘(i) in the case of a vehicle placed in service after 
the date on which the proposed guidance described 
in paragraph (3)(B) is issued by the Secretary and 
before January 1, 2024, 50 percent, 
‘‘(ii) in the case of a vehicle placed in service during 
calendar year 2024 or 2025, 60 percent, 
‘‘(iii) in the case of a vehicle placed in service 
during calendar year 2026, 70 percent, 
‘‘(iv) in the case of a vehicle placed in service 
during calendar year 2027, 80 percent, 
‘‘(v) in the case of a vehicle placed in service during 
calendar year 2028, 90 percent, 
‘‘(vi) in the case of a vehicle placed in service 
after December 31, 2028, 100 percent. 
‘‘(3) REGULATIONS AND GUIDANCE.— 
‘‘(A) IN GENERAL.—The Secretary shall issue such regu-
lations or other guidance as the Secretary determines nec-
essary to carry out the purposes of this subsection, 
including regulations or other guidance which provides for 
requirements for recordkeeping or information reporting 
for purposes of administering the requirements of this sub-
section. 
‘‘(B) DEADLINE
FOR
PROPOSED
GUIDANCE.—Not later 
than December 31, 2022, the Secretary shall issue proposed 
guidance with respect to the requirements under this sub-
section.’’. 
(2) EXCLUDED ENTITIES.—Section 30D(d), as amended by 
the preceding provisions of this section, is amended by adding 
at the end the following: 
‘‘(7) EXCLUDED ENTITIES.—For purposes of this section, the 
term ‘new clean vehicle’ shall not include— 
‘‘(A) any vehicle placed in service after December 31, 
2024, with respect to which any of the applicable critical 
minerals contained in the battery of such vehicle (as 
described in subsection (e)(1)(A)) were extracted, processed, 
or recycled by a foreign entity of concern (as defined in 
section 40207(a)(5) of the Infrastructure Investment and 
Jobs Act (42 U.S.C. 18741(a)(5))), or 
‘‘(B) any vehicle placed in service after December 31, 
2023, with respect to which any of the components con-
tained in the battery of such vehicle (as described in sub-
section (e)(2)(A)) were manufactured or assembled by a 
foreign entity of concern (as so defined).’’. 
(f) SPECIAL RULES.—Section 30D(f) is amended by adding at 
the end the following: 
‘‘(8) ONE CREDIT PER VEHICLE.—In the case of any vehicle, 
the credit described in subsection (a) shall only be allowed 
once with respect to such vehicle, as determined based upon 
the vehicle identification number of such vehicle. 
‘‘(9) VIN REQUIREMENT.—No credit shall be allowed under 
this section with respect to any vehicle unless the taxpayer 
includes the vehicle identification number of such vehicle on 
the return of tax for the taxable year. 
‘‘(10) LIMITATION
BASED
ON
MODIFIED
ADJUSTED
GROSS 
INCOME.— 
‘‘(A) IN GENERAL.—No credit shall be allowed under 
subsection (a) for any taxable year if—
H. R. 5376—141 
‘‘(i) the lesser of— 
‘‘(I) the modified adjusted gross income of the 
taxpayer for such taxable year, or 
‘‘(II) the modified adjusted gross income of 
the taxpayer for the preceding taxable year, 
exceeds 
‘‘(ii) the threshold amount. 
‘‘(B) THRESHOLD AMOUNT.—For purposes of subpara-
graph (A)(ii), the threshold amount shall be— 
‘‘(i) in the case of a joint return or a surviving 
spouse (as defined in section 2(a)), $300,000, 
‘‘(ii) in the case of a head of household (as defined 
in section 2(b)), $225,000, and 
‘‘(iii) in the case of a taxpayer not described in 
clause (i) or (ii), $150,000. 
‘‘(C) MODIFIED ADJUSTED GROSS INCOME.—For purposes 
of this paragraph, the term ‘modified adjusted gross income’ 
means adjusted gross income increased by any amount 
excluded from gross income under section 911, 931, or 
933. 
‘‘(11) MANUFACTURER’S
SUGGESTED
RETAIL
PRICE
LIMITA-
TION.— 
‘‘(A) IN GENERAL.—No credit shall be allowed under 
subsection (a) for a vehicle with a manufacturer’s suggested 
retail price in excess of the applicable limitation. 
‘‘(B) APPLICABLE LIMITATION.—For purposes of subpara-
graph (A), the applicable limitation for each vehicle classi-
fication is as follows: 
‘‘(i) VANS.—In the case of a van, $80,000. 
‘‘(ii) SPORT UTILITY VEHICLES.—In the case of a 
sport utility vehicle, $80,000. 
‘‘(iii) PICKUP
TRUCKS.—In the case of a pickup 
truck, $80,000. 
‘‘(iv) OTHER.—In the case of any other vehicle, 
$55,000. 
‘‘(C) REGULATIONS
AND
GUIDANCE.—For purposes of 
this paragraph, the Secretary shall prescribe such regula-
tions or other guidance as the Secretary determines nec-
essary for determining vehicle classifications using criteria 
similar to that employed by the Environmental Protection 
Agency and the Department of the Energy to determine 
size and class of vehicles.’’. 
(g) TRANSFER OF CREDIT.— 
(1) IN GENERAL.—Section 30D is amended by striking sub-
section (g) and inserting the following: 
‘‘(g) TRANSFER OF CREDIT.— 
‘‘(1) IN GENERAL.—Subject to such regulations or other guid-
ance as the Secretary determines necessary, if the taxpayer 
who acquires a new clean vehicle elects the application of 
this subsection with respect to such vehicle, the credit which 
would (but for this subsection) be allowed to such taxpayer 
with respect to such vehicle shall be allowed to the eligible 
entity specified in such election (and not to such taxpayer). 
‘‘(2) ELIGIBLE ENTITY.—For purposes of this subsection, the 
term ‘eligible entity’ means, with respect to the vehicle for 
which the credit is allowed under subsection (a), the dealer 
which sold such vehicle to the taxpayer and has—
H. R. 5376—142 
‘‘(A) subject to paragraph (4), registered with the Sec-
retary for purposes of this paragraph, at such time, and 
in such form and manner, as the Secretary may prescribe, 
‘‘(B) prior to the election described in paragraph (1) 
and not later than at the time of such sale, disclosed 
to the taxpayer purchasing such vehicle— 
‘‘(i) the manufacturer’s suggested retail price, 
‘‘(ii) the value of the credit allowed and any other 
incentive available for the purchase of such vehicle, 
and 
‘‘(iii) the amount provided by the dealer to such 
taxpayer as a condition of the election described in 
paragraph (1), 
‘‘(C) not later than at the time of such sale, made 
payment to such taxpayer (whether in cash or in the form 
of a partial payment or down payment for the purchase 
of such vehicle) in an amount equal to the credit otherwise 
allowable to such taxpayer, and 
‘‘(D) with respect to any incentive otherwise available 
for the purchase of a vehicle for which a credit is allowed 
under this section, including any incentive in the form 
of a rebate or discount provided by the dealer or manufac-
turer, ensured that— 
‘‘(i) the availability or use of such incentive shall 
not limit the ability of a taxpayer to make an election 
described in paragraph (1), and 
‘‘(ii) such election shall not limit the value or use 
of such incentive. 
‘‘(3) TIMING.—An election described in paragraph (1) shall 
be made by the taxpayer not later than the date on which 
the vehicle for which the credit is allowed under subsection 
(a) is purchased. 
‘‘(4) REVOCATION OF REGISTRATION.—Upon determination 
by the Secretary that a dealer has failed to comply with the 
requirements described in paragraph (2), the Secretary may 
revoke the registration (as described in subparagraph (A) of 
such paragraph) of such dealer. 
‘‘(5) TAX TREATMENT OF PAYMENTS.—With respect to any 
payment described in paragraph (2)(C), such payment— 
‘‘(A) shall not be includible in the gross income of 
the taxpayer, and 
‘‘(B) with respect to the dealer, shall not be deductible 
under this title. 
‘‘(6) APPLICATION OF CERTAIN OTHER REQUIREMENTS.—In 
the case of any election under paragraph (1) with respect to 
any vehicle— 
‘‘(A) the requirements of paragraphs (1) and (2) of 
subsection (f) shall apply to the taxpayer who acquired 
the vehicle in the same manner as if the credit determined 
under this section with respect to such vehicle were allowed 
to such taxpayer, 
‘‘(B) paragraph (6) of such subsection shall not apply, 
and 
‘‘(C) the requirement of paragraph (9) of such sub-
section (f) shall be treated as satisfied if the eligible entity 
provides the vehicle identification number of such vehicle
H. R. 5376—143 
to the Secretary in such manner as the Secretary may 
provide. 
‘‘(7) ADVANCE PAYMENT TO REGISTERED DEALERS.— 
‘‘(A) IN GENERAL.—The Secretary shall establish a pro-
gram to make advance payments to any eligible entity 
in an amount equal to the cumulative amount of the credits 
allowed under subsection (a) with respect to any vehicles 
sold by such entity for which an election described in 
paragraph (1) has been made. 
‘‘(B) EXCESSIVE PAYMENTS.—Rules similar to the rules 
of section 6417(d)(6) shall apply for purposes of this para-
graph. 
‘‘(C) TREATMENT OF ADVANCE PAYMENTS.—For purposes 
of section 1324 of title 31, United States Code, the pay-
ments under subparagraph (A) shall be treated in the 
same manner as a refund due from a credit provision 
referred to in subsection (b)(2) of such section. 
‘‘(8) DEALER.—For purposes of this subsection, the term 
‘dealer’ means a person licensed by a State, the District of 
Columbia, the Commonwealth of Puerto Rico, any other terri-
tory or possession of the United States, an Indian tribal govern-
ment, or any Alaska Native Corporation (as defined in section 
3 of the Alaska Native Claims Settlement Act (43 U.S.C. 
1602(m)) to engage in the sale of vehicles. 
‘‘(9) INDIAN TRIBAL GOVERNMENT.—For purposes of this sub-
section, the term ‘Indian tribal government’ means the recog-
nized governing body of any Indian or Alaska Native tribe, 
band, nation, pueblo, village, community, component band, or 
component reservation, individually identified (including par-
enthetically) in the list published most recently as of the date 
of enactment of this subsection pursuant to section 104 of 
the Federally Recognized Indian Tribe List Act of 1994 (25 
U.S.C. 5131). 
‘‘(10) RECAPTURE.—In the case of any taxpayer who has 
made an election described in paragraph (1) with respect to 
a new clean vehicle and received a payment described in para-
graph (2)(C) from an eligible entity, if the credit under sub-
section (a) would otherwise (but for this subsection) not be 
allowable to such taxpayer pursuant to the application of sub-
section (f)(10), the tax imposed on such taxpayer under this 
chapter for the taxable year in which such vehicle was placed 
in service shall be increased by the amount of the payment 
received by such taxpayer.’’. 
(2) CONFORMING AMENDMENTS.—Section 30D, as amended 
by the preceding provisions of this section, is amended— 
(A) in subsection (d)(1)(H) of such section— 
(i) in clause (iv), by striking ‘‘and’’ at the end, 
(ii) in clause (v), by striking the period at the 
end and inserting ‘‘, and’’, and 
(iii) by adding at the end the following: 
‘‘(vi) in the case of a taxpayer who makes an elec-
tion under subsection (g)(1), any amount described in 
subsection (g)(2)(C) which has been provided to such 
taxpayer.’’, and 
(B) in subsection (f)— 
(i) by striking paragraph (3), and
H. R. 5376—144 
(ii) in paragraph (8), by inserting ‘‘, including any 
vehicle with respect to which the taxpayer elects the 
application of subsection (g)’’ before the period at the 
end. 
(h) TERMINATION.—Section 30D is amended by adding at the 
end the following: 
‘‘(h) TERMINATION.—No credit shall be allowed under this sec-
tion with respect to any vehicle placed in service after December 
31, 2032.’’. 
(i) ADDITIONAL CONFORMING AMENDMENTS.— 
(1) The heading of section 30D is amended by striking 
‘‘NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES’’ 
and inserting ‘‘CLEAN VEHICLE CREDIT’’. 
(2) Section 30B is amended— 
(A) in subsection (h)(8), by striking ‘‘, except that no 
benefit shall be recaptured if such property ceases to be 
eligible for such credit by reason of conversion to a qualified 
plug-in electric drive motor vehicle’’, and 
(B) by striking subsection (i). 
(3) Section 38(b)(30) is amended by striking ‘‘qualified plug- 
in electric drive motor’’ and inserting ‘‘clean’’. 
(4) Section 6213(g)(2), as amended by the preceding provi-
sions of this Act, is amended— 
(A) in subparagraph (R), by striking ‘‘and’’ at the end, 
(B) in subparagraph (S), by striking the period at the 
end and inserting ‘‘, and’’, and 
(C) by inserting after subparagraph (S) the following: 
‘‘(T) an omission of a correct vehicle identification 
number required under section 30D(f)(9) (relating to credit 
for new clean vehicles) to be included on a return.’’. 
(5) Section 6501(m) is amended by striking ‘‘30D(e)(4)’’ 
and inserting ‘‘30D(f)(6)’’. 
(6) The table of sections for subpart B of part IV of sub-
chapter A of chapter 1 is amended by striking the item relating 
to section 30D and inserting after the item relating to section 
30C the following item: 
‘‘Sec. 30D. Clean vehicle credit.’’. 
(j) GROSS-UP OF DIRECT SPENDING.—Beginning in fiscal year 
2023 and each fiscal year thereafter, the portion of any credit 
allowed to an eligible entity (as defined in section 30D(g)(2) of 
the Internal Revenue Code of 1986) pursuant to an election made 
under section 30D(g) of the Internal Revenue Code of 1986 that 
is direct spending shall be increased by 6.0445 percent. 
(k) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in paragraphs (2), 
(3), (4), and (5), the amendments made by this section shall 
apply to vehicles placed in service after December 31, 2022. 
(2) FINAL ASSEMBLY.—The amendments made by subsection 
(b) shall apply to vehicles sold after the date of enactment 
of this Act. 
(3) PER VEHICLE DOLLAR LIMITATION AND RELATED REQUIRE-
MENTS.—The amendments made by subsections (a) and (e) shall 
apply to vehicles placed in service after the date on which 
the proposed guidance described in paragraph (3)(B) of section 
30D(e) of the Internal Revenue Code of 1986 (as added by 
subsection (e)) is issued by the Secretary of the Treasury (or 
the Secretary’s delegate).
H. R. 5376—145 
(4) TRANSFER OF CREDIT.—The amendments made by sub-
section (g) shall apply to vehicles placed in service after 
December 31, 2023. 
(5) ELIMINATION
OF
MANUFACTURER
LIMITATION.—The 
amendment made by subsection (d) shall apply to vehicles 
sold after December 31, 2022. 
(l) TRANSITION RULE.—Solely for purposes of the application 
of section 30D of the Internal Revenue Code of 1986, in the case 
of a taxpayer that— 
(1) after December 31, 2021, and before the date of enact-
ment of this Act, purchased, or entered into a written binding 
contract to purchase, a new qualified plug-in electric drive 
motor vehicle (as defined in section 30D(d)(1) of the Internal 
Revenue Code of 1986, as in effect on the day before the 
date of enactment of this Act), and 
(2) placed such vehicle in service on or after the date 
of enactment of this Act, 
such taxpayer may elect (at such time, and in such form and 
manner, as the Secretary of the Treasury, or the Secretary’s dele-
gate, may prescribe) to treat such vehicle as having been placed 
in service on the day before the date of enactment of this Act. 
SEC. 13402. CREDIT FOR PREVIOUSLY-OWNED CLEAN VEHICLES. 
(a) IN GENERAL.—Subpart A of part IV of subchapter A of 
chapter 1 is amended by inserting after section 25D the following 
new section: 
‘‘SEC. 25E. PREVIOUSLY-OWNED CLEAN VEHICLES. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of a qualified buyer 
who during a taxable year places in service a previously-owned 
clean vehicle, there shall be allowed as a credit against the tax 
imposed by this chapter for the taxable year an amount equal 
to the lesser of— 
‘‘(1) $4,000, or 
‘‘(2) the amount equal to 30 percent of the sale price with 
respect to such vehicle. 
‘‘(b) LIMITATION
BASED
ON
MODIFIED
ADJUSTED
GROSS 
INCOME.— 
‘‘(1) IN GENERAL.—No credit shall be allowed under sub-
section (a) for any taxable year if— 
‘‘(A) the lesser of— 
‘‘(i) the modified adjusted gross income of the tax-
payer for such taxable year, or 
‘‘(ii) the modified adjusted gross income of the tax-
payer for the preceding taxable year, exceeds 
‘‘(B) the threshold amount. 
‘‘(2) THRESHOLD
AMOUNT.—For purposes of paragraph 
(1)(B), the threshold amount shall be— 
‘‘(A) in the case of a joint return or a surviving spouse 
(as defined in section 2(a)), $150,000, 
‘‘(B) in the case of a head of household (as defined 
in section 2(b)), $112,500, and 
‘‘(C) in the case of a taxpayer not described in subpara-
graph (A) or (B), $75,000. 
‘‘(3) MODIFIED ADJUSTED GROSS INCOME.—For purposes of 
this subsection, the term ‘modified adjusted gross income’ 
means adjusted gross income increased by any amount excluded 
from gross income under section 911, 931, or 933.
H. R. 5376—146 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) PREVIOUSLY-OWNED CLEAN VEHICLE.—The term ‘pre-
viously-owned clean vehicle’ means, with respect to a taxpayer, 
a motor vehicle— 
‘‘(A) the model year of which is at least 2 years earlier 
than the calendar year in which the taxpayer acquires 
such vehicle, 
‘‘(B) the original use of which commences with a person 
other than the taxpayer, 
‘‘(C) which is acquired by the taxpayer in a qualified 
sale, and 
‘‘(D) which— 
‘‘(i) meets the requirements of subparagraphs (C), 
(D), (E), (F), and (H) (except for clause (iv) thereof) 
of section 30D(d)(1), or 
‘‘(ii) is a motor vehicle which— 
‘‘(I) satisfies the requirements under subpara-
graphs (A) and (B) of section 30B(b)(3), and 
‘‘(II) has a gross vehicle weight rating of less 
than 14,000 pounds. 
‘‘(2) QUALIFIED SALE.—The term ‘qualified sale’ means a 
sale of a motor vehicle— 
‘‘(A) by a dealer (as defined in section 30D(g)(8)), 
‘‘(B) for a sale price which does not exceed $25,000, 
and 
‘‘(C) which is the first transfer since the date of the 
enactment of this section to a qualified buyer other than 
the person with whom the original use of such vehicle 
commenced. 
‘‘(3) QUALIFIED BUYER.—The term ‘qualified buyer’ means, 
with respect to a sale of a motor vehicle, a taxpayer— 
‘‘(A) who is an individual, 
‘‘(B) who purchases such vehicle for use and not for 
resale, 
‘‘(C) with respect to whom no deduction is allowable 
with respect to another taxpayer under section 151, and 
‘‘(D) who has not been allowed a credit under this 
section for any sale during the 3-year period ending on 
the date of the sale of such vehicle. 
‘‘(4) MOTOR VEHICLE; CAPACITY.—The terms ‘motor vehicle’ 
and ‘capacity’ have the meaning given such terms in paragraphs 
(2) and (4) of section 30D(d), respectively. 
‘‘(d) VIN NUMBER REQUIREMENT.—No credit shall be allowed 
under subsection (a) with respect to any vehicle unless the taxpayer 
includes the vehicle identification number of such vehicle on the 
return of tax for the taxable year. 
‘‘(e) APPLICATION
OF CERTAIN RULES.—For purposes of this 
section, rules similar to the rules of section 30D(f) (without regard 
to paragraph (10) or (11) thereof) shall apply for purposes of this 
section. 
‘‘(f) TERMINATION.—No credit shall be allowed under this section 
with respect to any vehicle acquired after December 31, 2032.’’. 
(b) TRANSFER OF CREDIT.—Section 25E, as added by subsection 
(a), is amended— 
(1) by redesignating subsection (f) as subsection (g), and 
(2) by inserting after subsection (e) the following:
H. R. 5376—147 
‘‘(f) TRANSFER OF CREDIT.—Rules similar to the rules of section 
30D(g) shall apply.’’. 
(c) CONFORMING AMENDMENTS.—Section 6213(g)(2), as amended 
by the preceding provisions of this Act, is amended— 
(1) in subparagraph (S), by striking ‘‘and’’ at the end, 
(2) in subparagraph (T), by striking the period at the end 
and inserting ‘‘, and’’, and 
(3) by inserting after subparagraph (T) the following: 
‘‘(U) an omission of a correct vehicle identification 
number required under section 25E(d) (relating to credit 
for previously-owned clean vehicles) to be included on a 
return.’’. 
(d) CLERICAL AMENDMENT.—The table of sections for subpart 
A of part IV of subchapter A of chapter 1 is amended by inserting 
after the item relating to section 25D the following new item: 
‘‘Sec. 25E. Previously-owned clean vehicles.’’. 
(e) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendments made by this section shall apply to vehicles 
acquired after December 31, 2022. 
(2) TRANSFER OF CREDIT.—The amendments made by sub-
section (b) shall apply to vehicles acquired after December 
31, 2023. 
SEC. 13403. QUALIFIED COMMERCIAL CLEAN VEHICLES. 
(a) IN GENERAL.—Subpart D of part IV of subchapter A of 
chapter 1, as amended by the preceding provisions of this Act, 
is amended by adding at the end the following new section: 
‘‘SEC. 45W. CREDIT FOR QUALIFIED COMMERCIAL CLEAN VEHICLES. 
‘‘(a) IN GENERAL.—For purposes of section 38, the qualified 
commercial clean vehicle credit for any taxable year is an amount 
equal to the sum of the credit amounts determined under subsection 
(b) with respect to each qualified commercial clean vehicle placed 
in service by the taxpayer during the taxable year. 
‘‘(b) PER VEHICLE AMOUNT.— 
‘‘(1) IN GENERAL.—Subject to paragraph (4), the amount 
determined under this subsection with respect to any qualified 
commercial clean vehicle shall be equal to the lesser of— 
‘‘(A) 15 percent of the basis of such vehicle (30 percent 
in the case of a vehicle not powered by a gasoline or 
diesel internal combustion engine), or 
‘‘(B) the incremental cost of such vehicle. 
‘‘(2) INCREMENTAL COST.—For purposes of paragraph (1)(B), 
the incremental cost of any qualified commercial clean vehicle 
is an amount equal to the excess of the purchase price for 
such vehicle over such price of a comparable vehicle. 
‘‘(3) COMPARABLE
VEHICLE.—For purposes of this sub-
section, the term ‘comparable vehicle’ means, with respect to 
any qualified commercial clean vehicle, any vehicle which is 
powered solely by a gasoline or diesel internal combustion 
engine and which is comparable in size and use to such vehicle. 
‘‘(4) LIMITATION.—The amount determined under this sub-
section with respect to any qualified commercial clean vehicle 
shall not exceed— 
‘‘(A) in the case of a vehicle which has a gross vehicle 
weight rating of less than 14,000 pounds, $7,500, and
H. R. 5376—148 
‘‘(B) in the case of a vehicle not described in subpara-
graph (A), $40,000. 
‘‘(c) QUALIFIED COMMERCIAL CLEAN VEHICLE.—For purposes 
of this section, the term ‘qualified commercial clean vehicle’ means 
any vehicle which— 
‘‘(1) meets the requirements of section 30D(d)(1)(C) and 
is acquired for use or lease by the taxpayer and not for resale, 
‘‘(2) either— 
‘‘(A) meets the requirements of subparagraph (D) of 
section 30D(d)(1) and is manufactured primarily for use 
on public streets, roads, and highways (not including a 
vehicle operated exclusively on a rail or rails), or 
‘‘(B) is mobile machinery, as defined in section 4053(8) 
(including vehicles that are not designed to perform a func-
tion of transporting a load over the public highways), 
‘‘(3) either— 
‘‘(A) is propelled to a significant extent by an electric 
motor which draws electricity from a battery which has 
a capacity of not less than 15 kilowatt hours (or, in the 
case of a vehicle which has a gross vehicle weight rating 
of less than 14,000 pounds, 7 kilowatt hours) and is capable 
of being recharged from an external source of electricity, 
or 
‘‘(B) is a motor vehicle which satisfies the requirements 
under subparagraphs (A) and (B) of section 30B(b)(3), and 
‘‘(4) is of a character subject to the allowance for deprecia-
tion. 
‘‘(d) SPECIAL RULES.— 
‘‘(1) IN GENERAL.—Rules similar to the rules under sub-
section (f) of section 30D (without regard to paragraph (10) 
or (11) thereof) shall apply for purposes of this section. 
‘‘(2) VEHICLES
PLACED
IN
SERVICE
BY
TAX-EXEMPT
ENTI-
TIES.—Subsection (c)(4) shall not apply to any vehicle which 
is not subject to a lease and which is placed in service by 
a tax-exempt entity described in clause (i), (ii), or (iv) of section 
168(h)(2)(A). 
‘‘(3) NO DOUBLE BENEFIT.—No credit shall be allowed under 
this section with respect to any vehicle for which a credit 
was allowed under section 30D. 
‘‘(e) VIN NUMBER REQUIREMENT.—No credit shall be deter-
mined under subsection (a) with respect to any vehicle unless 
the taxpayer includes the vehicle identification number of such 
vehicle on the return of tax for the taxable year. 
‘‘(f) REGULATIONS AND GUIDANCE.—The Secretary shall issue 
such regulations or other guidance as the Secretary determines 
necessary to carry out the purposes of this section, including regula-
tions or other guidance relating to determination of the incremental 
cost of any qualified commercial clean vehicle. 
‘‘(g) TERMINATION.—No credit shall be determined under this 
section with respect to any vehicle acquired after December 31, 
2032.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 38(b), as amended by the preceding provisions 
of this Act, is amended— 
(A) in paragraph (35), by striking ‘‘plus’’ at the end, 
(B) in paragraph (36), by striking the period at the 
end and inserting ‘‘, plus’’, and
H. R. 5376—149 
(C) by adding at the end the following new paragraph: 
‘‘(37) the qualified commercial clean vehicle credit deter-
mined under section 45W.’’. 
(2) Section 6213(g)(2), as amended by the preceding provi-
sions of this Act, is amended— 
(A) in subparagraph (T), by striking ‘‘and’’ at the end, 
(B) in subparagraph (U), by striking the period at 
the end and inserting ‘‘, and’’, and 
(C) by inserting after subparagraph (U) the following: 
‘‘(V) an omission of a correct vehicle identification 
number required under section 45W(e) (relating to commer-
cial clean vehicle credit) to be included on a return.’’. 
(3) The table of sections for subpart D of part IV of sub-
chapter A of chapter 1, as amended by the preceding provisions 
of this Act, is amended by adding at the end the following 
new item: 
‘‘Sec. 45W. Qualified commercial clean vehicle credit.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to vehicles acquired after December 31, 2022. 
SEC. 13404. ALTERNATIVE FUEL REFUELING PROPERTY CREDIT. 
(a) IN
GENERAL.—Section 30C(g) is amended by striking 
‘‘December 31, 2021’’ and inserting ‘‘December 31, 2032’’. 
(b) CREDIT FOR PROPERTY OF A CHARACTER SUBJECT TO DEPRE-
CIATION.— 
(1) IN GENERAL.—Section 30C(a) is amended by inserting 
‘‘(6 percent in the case of property of a character subject to 
depreciation)’’ after ‘‘30 percent’’. 
(2) MODIFICATION OF CREDIT LIMITATION.—Subsection (b) 
of section 30C is amended— 
(A) in the matter preceding paragraph (1)— 
(i) by striking ‘‘with respect to all’’ and inserting 
‘‘with respect to any single item of’’, and 
(ii) by striking ‘‘at a location’’, and 
(B) in paragraph (1), by striking ‘‘$30,000 in the case 
of a property’’ and inserting ‘‘$100,000 in the case of any 
such item of property’’. 
(3) BIDIRECTIONAL
CHARGING
EQUIPMENT
INCLUDED
AS 
QUALIFIED ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY.— 
Section 30C(c) is amended to read as follows: 
‘‘(c) QUALIFIED ALTERNATIVE FUEL VEHICLE REFUELING PROP-
ERTY.—For purposes of this section— 
‘‘(1) IN
GENERAL.—The term ‘qualified alternative fuel 
vehicle refueling property’ has the same meaning as the term 
‘qualified clean-fuel vehicle refueling property’ would have 
under section 179A if— 
‘‘(A) paragraph (1) of section 179A(d) did not apply 
to property installed on property which is used as the 
principal residence (within the meaning of section 121) 
of the taxpayer, and 
‘‘(B) only the following were treated as clean-burning 
fuels for purposes of section 179A(d): 
‘‘(i) Any fuel at least 85 percent of the volume 
of which consists of one or more of the following: eth-
anol, natural gas, compressed natural gas, liquified 
natural gas, liquefied petroleum gas, or hydrogen. 
‘‘(ii) Any mixture—
H. R. 5376—150 
‘‘(I) which consists of two or more of the fol-
lowing: biodiesel (as defined in section 40A(d)(1)), 
diesel fuel (as defined in section 4083(a)(3)), or 
kerosene, and 
‘‘(II) at least 20 percent of the volume of which 
consists of biodiesel (as so defined) determined 
without regard to any kerosene in such mixture. 
‘‘(iii) Electricity. 
‘‘(2) BIDIRECTIONAL CHARGING EQUIPMENT.—Property shall 
not fail to be treated as qualified alternative fuel vehicle 
refueling property solely because such property— 
‘‘(A) is capable of charging the battery of a motor 
vehicle propelled by electricity, and 
‘‘(B) allows discharging electricity from such battery 
to an electric load external to such motor vehicle.’’. 
(c) CERTAIN ELECTRIC CHARGING STATIONS INCLUDED AS QUALI-
FIED ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY.—Section 
30C is amended by redesignating subsections (f) and (g) as sub-
sections (g) and (h), respectively, and by inserting after subsection 
(e) the following: 
‘‘(f) SPECIAL RULE FOR ELECTRIC CHARGING STATIONS FOR CER-
TAIN VEHICLES WITH 2 OR 3 WHEELS.—For purposes of this sec-
tion— 
‘‘(1) IN
GENERAL.—The term ‘qualified alternative fuel 
vehicle refueling property’ includes any property described in 
subsection (c) for the recharging of a motor vehicle described 
in paragraph (2), but only if such property— 
‘‘(A) meets the requirements of subsection (a)(2), and 
‘‘(B) is of a character subject to depreciation. 
‘‘(2) MOTOR VEHICLE.—A motor vehicle is described in this 
paragraph if the motor vehicle— 
‘‘(A) is manufactured primarily for use on public 
streets, roads, or highways (not including a vehicle operated 
exclusively on a rail or rails), 
‘‘(B) has 2 or 3 wheels, and 
‘‘(C) is propelled by electricity.’’. 
(d) WAGE AND APPRENTICESHIP REQUIREMENTS.—Section 30C, 
as amended by this section, is further amended by redesignating 
subsections (g) and (h) as subsections (h) and (i) and by inserting 
after subsection (f) the following new subsection: 
‘‘(g) WAGE AND APPRENTICESHIP REQUIREMENTS.— 
‘‘(1) INCREASED CREDIT AMOUNT.— 
‘‘(A) IN GENERAL.—In the case of any qualified alter-
native fuel vehicle refueling project which satisfies the 
requirements of subparagraph (C), the amount of the credit 
determined under subsection (a) for any qualified alter-
native fuel vehicle refueling property of a character subject 
to an allowance for depreciation which is part of such 
project shall be equal to such amount (determined without 
regard to this sentence) multiplied by 5. 
‘‘(B) QUALIFIED ALTERNATIVE FUEL VEHICLE REFUELING 
PROJECT.—For purposes of this subsection, the term ‘quali-
fied alternative fuel vehicle refueling project’ means a 
project consisting of one or more properties that are part 
of a single project.
H. R. 5376—151 
‘‘(C) PROJECT
REQUIREMENTS.—A project meets the 
requirements of this subparagraph if it is one of the fol-
lowing: 
‘‘(i) A project the construction of which begins prior 
to the date that is 60 days after the Secretary publishes 
guidance with respect to the requirements of para-
graphs (2)(A) and (3). 
‘‘(ii) A project which satisfies the requirements 
of paragraphs (2)(A) and (3). 
‘‘(2) PREVAILING WAGE REQUIREMENTS.— 
‘‘(A) IN GENERAL.—The requirements described in this 
subparagraph with respect to any qualified alternative fuel 
vehicle refueling project are that the taxpayer shall ensure 
that any laborers and mechanics employed by the taxpayer 
or any contractor or subcontractor in the construction of 
any qualified alternative fuel vehicle refueling property 
which is part of such project shall be paid wages at rates 
not less than the prevailing rates for construction, alter-
ation, or repair of a similar character in the locality in 
which such project is located 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
REQUIREMENTS.—Rules similar to the 
rules of section 45(b)(7)(B) shall apply. 
‘‘(3) APPRENTICESHIP REQUIREMENTS.—Rules similar to the 
rules of section 45(b)(8) shall apply. 
‘‘(4) REGULATIONS
AND
GUIDANCE.—The Secretary shall 
issue such regulations or other guidance as the Secretary deter-
mines necessary to carry out the purposes of this subsection, 
including regulations or other guidance which provides for 
requirements for recordkeeping or information reporting for 
purposes of administering the requirements of this subsection.’’. 
(e) ELIGIBLE CENSUS TRACTS.—Subsection (c) of section 30C, 
as amended by subsection (b)(3), is amended by adding at the 
end the following: 
‘‘(3) PROPERTY
REQUIRED
TO
BE
LOCATED
IN
ELIGIBLE 
CENSUS TRACTS.— 
‘‘(A) IN GENERAL.—Property shall not be treated as 
qualified alternative fuel vehicle refueling property unless 
such property is placed in service in an eligible census 
tract. 
‘‘(B) ELIGIBLE CENSUS TRACT.— 
‘‘(i) IN GENERAL.—For purposes of this paragraph, 
the term ‘eligible census tract’ means any population 
census tract which— 
‘‘(I) is described in section 45D(e), or 
‘‘(II) is not an urban area. 
‘‘(ii) URBAN AREA.—For purposes of clause (i)(II), 
the term ‘urban area’ means a census tract (as defined 
by the Bureau of the Census) which, according to the 
most recent decennial census, has been designated as 
an urban area by the Secretary of Commerce.’’. 
(f) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendments made by this section shall apply to property placed 
in service after December 31, 2022.
H. R. 5376—152 
(2) EXTENSION.—The amendments made by subsection (a) 
shall apply to property placed in service after December 31, 
2021. 
PART 5—INVESTMENT IN CLEAN ENERGY 
MANUFACTURING AND ENERGY SECURITY 
SEC. 13501. EXTENSION OF THE ADVANCED ENERGY PROJECT CREDIT. 
(a) EXTENSION OF CREDIT.—Section 48C is amended by redesig-
nating subsection (e) as subsection (f) and by inserting after sub-
section (d) the following new subsection: 
‘‘(e) ADDITIONAL ALLOCATIONS.— 
‘‘(1) IN GENERAL.—Not later than 180 days after the date 
of enactment of this subsection, the Secretary shall establish 
a program to consider and award certifications for qualified 
investments eligible for credits under this section to qualifying 
advanced energy project sponsors. 
‘‘(2) LIMITATION.—The total amount of credits which may 
be allocated under the program established under paragraph 
(1) shall not exceed $10,000,000,000, of which not greater than 
$6,000,000,000 may be allocated to qualified investments which 
are not located within a census tract which— 
‘‘(A) is described in clause (iii) of section 45(b)(11)(B), 
and 
‘‘(B) prior to the date of enactment of this subsection, 
had no project which received a certification and allocation 
of credits under subsection (d). 
‘‘(3) CERTIFICATIONS.— 
‘‘(A) APPLICATION REQUIREMENT.—Each applicant for 
certification under this subsection shall submit an applica-
tion at such time and containing such information as the 
Secretary may require. 
‘‘(B) TIME TO MEET CRITERIA FOR CERTIFICATION.—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 require-
ments of the certification have been met. 
‘‘(C) PERIOD OF ISSUANCE.—An applicant which receives 
a certification shall have 2 years from the date of issuance 
of the certification in order to place the project in service 
and to notify the Secretary that such project has been 
so placed in service, and if such project is not placed 
in service by that time period, then the certification shall 
no longer be valid. If any certification is revoked under 
this subparagraph, the amount of the limitation under 
paragraph (2) shall be increased by the amount of the 
credit with respect to such revoked certification. 
‘‘(D) LOCATION OF PROJECT.—In the case of an applicant 
which receives a certification, if the Secretary determines 
that the project has been placed in service at a location 
which is materially different than the location specified 
in the application for such project, the certification shall 
no longer be valid. 
‘‘(4) 
CREDIT
RATE
CONDITIONED
UPON
WAGE
AND 
APPRENTICESHIP REQUIREMENTS.— 
‘‘(A) BASE
RATE.—For purposes of allocations under 
this subsection, the amount of the credit determined under
H. R. 5376—153 
subsection (a) shall be determined by substituting ‘6 per-
cent’ for ‘30 percent’. 
‘‘(B) ALTERNATIVE RATE.—In the case of any project 
which satisfies the requirements of paragraphs (5)(A) and 
(6), subparagraph (A) shall not apply. 
‘‘(5) PREVAILING WAGE REQUIREMENTS.— 
‘‘(A) IN GENERAL.—The requirements described in this 
subparagraph with respect to a project are that the tax-
payer shall ensure that any laborers and mechanics 
employed by the taxpayer or any contractor or subcon-
tractor in the re-equipping, expansion, or establishment 
of a manufacturing facility shall be paid wages at rates 
not less than the prevailing rates for construction, alter-
ation, or repair of a similar character in the locality in 
which such project is located 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
REQUIREMENTS.—Rules similar to the 
rules of section 45(b)(7)(B) shall apply. 
‘‘(6) APPRENTICESHIP REQUIREMENTS.—Rules similar to the 
rules of section 45(b)(8) shall apply. 
‘‘(7) DISCLOSURE
OF
ALLOCATIONS.—The Secretary shall, 
upon making a certification under this subsection, publicly 
disclose the identity of the applicant and the amount of the 
credit with respect to such applicant.’’. 
(b) 
MODIFICATION
OF
QUALIFYING
ADVANCED
ENERGY 
PROJECTS.—Section 48C(c)(1)(A) is amended— 
(1) by inserting ‘‘, any portion of the qualified investment 
of which is certified by the Secretary under subsection (e) 
as eligible for a credit under this section’’ after ‘‘means a 
project’’, 
(2) in clause (i)— 
(A) by striking ‘‘a manufacturing facility for the produc-
tion of’’ and inserting ‘‘an industrial or manufacturing 
facility for the production or recycling of’’, 
(B) in clause (I), by inserting ‘‘water,’’ after ‘‘sun,’’, 
(C) in clause (II), by striking ‘‘an energy storage system 
for use with electric or hybrid-electric motor vehicles’’ and 
inserting ‘‘energy storage systems and components’’, 
(D) in clause (III), by striking ‘‘grids to support the 
transmission of intermittent sources of renewable energy, 
including storage of such energy’’ and inserting ‘‘grid mod-
ernization equipment or components’’, 
(E) in subclause (IV), by striking ‘‘and sequester carbon 
dioxide emissions’’ and inserting ‘‘, remove, use, or 
sequester carbon oxide emissions’’, 
(F) by striking subclause (V) and inserting the fol-
lowing: 
‘‘(V) equipment designed to refine, electrolyze, 
or blend any fuel, chemical, or product which is— 
‘‘(aa) renewable, or 
‘‘(bb) low-carbon and low-emission,’’, 
(G) by striking subclause (VI), 
(H) by redesignating subclause (VII) as subclause (IX), 
(I) by inserting after subclause (V) the following new 
subclauses:
H. R. 5376—154 
‘‘(VI) property designed to produce energy con-
servation 
technologies 
(including 
residential, 
commercial, and industrial applications), 
‘‘(VII) light-, medium-, or heavy-duty electric 
or fuel cell vehicles, as well as— 
‘‘(aa) technologies, components, or mate-
rials for such vehicles, and 
‘‘(bb) associated charging or refueling 
infrastructure, 
‘‘(VIII) hybrid vehicles with a gross vehicle 
weight rating of not less than 14,000 pounds, as 
well as technologies, components, or materials for 
such vehicles, or’’, and 
(J) in subclause (IX), as so redesignated, by striking 
‘‘and’’ at the end, and 
(3) by striking clause (ii) and inserting the following: 
‘‘(ii) which re-equips an industrial or manufac-
turing facility with equipment designed to reduce 
greenhouse gas emissions by at least 20 percent 
through the installation of— 
‘‘(I) low- or zero-carbon process heat systems, 
‘‘(II) carbon capture, transport, utilization and 
storage systems, 
‘‘(III) energy efficiency and reduction in waste 
from industrial processes, or 
‘‘(IV) any other industrial technology designed 
to reduce greenhouse gas emissions, as determined 
by the Secretary, or 
‘‘(iii) which re-equips, expands, or establishes an 
industrial facility for the processing, refining, or 
recycling of critical materials (as defined in section 
7002(a) of the Energy Act of 2020 (30 U.S.C. 1606(a)).’’. 
(c) CONFORMING AMENDMENT.—Subparagraph (A) of section 
48C(c)(2) is amended to read as follows: 
‘‘(A) which is necessary for— 
‘‘(i) the production or recycling of property 
described in clause (i) of paragraph (1)(A), 
‘‘(ii) re-equipping an industrial or manufacturing 
facility described in clause (ii) of such paragraph, or 
‘‘(iii) re-equipping, expanding, or establishing an 
industrial facility described in clause (iii) of such para-
graph,’’. 
(d) DENIAL OF DOUBLE BENEFIT.—48C(f), as redesignated by 
this section, is amended by striking ‘‘or 48B’’ and inserting ‘‘48B, 
48E, 45Q, or 45V’’. 
(e) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on January 1, 2023. 
SEC. 13502. ADVANCED MANUFACTURING PRODUCTION CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of subchapter A of 
chapter 1, as amended by the preceding provisions of this Act, 
is amended by adding at the end the following new section: 
‘‘SEC. 45X. ADVANCED MANUFACTURING PRODUCTION CREDIT. 
‘‘(a) IN GENERAL.— 
‘‘(1) ALLOWANCE OF CREDIT.—For purposes of section 38, 
the advanced manufacturing production credit for any taxable 
year is an amount equal to the sum of the credit amounts
H. R. 5376—155 
determined under subsection (b) with respect to each eligible 
component which is— 
‘‘(A) produced by the taxpayer, and 
‘‘(B) during the taxable year, sold by such taxpayer 
to an unrelated person. 
‘‘(2) PRODUCTION AND SALE MUST BE IN TRADE OR BUSI-
NESS.—Any eligible component produced and sold by the tax-
payer shall be taken into account only if the production and 
sale described in paragraph (1) is in a trade or business of 
the taxpayer. 
‘‘(3) UNRELATED PERSON.— 
‘‘(A) IN GENERAL.—For purposes of this subsection, a 
taxpayer shall be treated as selling components to an unre-
lated person if such component is sold to such person 
by a person related to the taxpayer. 
‘‘(B) ELECTION.— 
‘‘(i) IN GENERAL.—At the election of the taxpayer 
(in such form and manner as the Secretary may pre-
scribe), a sale of components by such taxpayer to a 
related person shall be deemed to have been made 
to an unrelated person. 
‘‘(ii) REQUIREMENT.—As a condition of, and prior 
to, any election described in clause (i), the Secretary 
may require such information or registration as the 
Secretary deems necessary for purposes of preventing 
duplication, fraud, or any improper or excessive 
amount determined under paragraph (1). 
‘‘(b) CREDIT AMOUNT.— 
‘‘(1) IN GENERAL.—Subject to paragraph (3), the amount 
determined under this subsection with respect to any eligible 
component, including any eligible component it incorporates, 
shall be equal to— 
‘‘(A) in the case of a thin film photovoltaic cell or 
a crystalline photovoltaic cell, an amount equal to the 
product of— 
‘‘(i) 4 cents, multiplied by 
‘‘(ii) the capacity of such cell (expressed on a per 
direct current watt basis), 
‘‘(B) in the case of a photovoltaic wafer, $12 per square 
meter, 
‘‘(C) in the case of solar grade polysilicon, $3 per kilo-
gram, 
‘‘(D) in the case of a polymeric backsheet, 40 cents 
per square meter, 
‘‘(E) in the case of a solar module, an amount equal 
to the product of— 
‘‘(i) 7 cents, multiplied by 
‘‘(ii) the capacity of such module (expressed on 
a per direct current watt basis), 
‘‘(F) in the case of a wind energy component— 
‘‘(i) if such component is a related offshore wind 
vessel, an amount equal to 10 percent of the sales 
price of such vessel, and 
‘‘(ii) if such component is not described in clause 
(i), an amount equal to the product of—
H. R. 5376—156 
‘‘(I) the applicable amount with respect to such 
component 
(as 
determined 
under 
paragraph 
(2)(A)), multiplied by 
‘‘(II) the total rated capacity (expressed on a 
per watt basis) of the completed wind turbine for 
which such component is designed, 
‘‘(G) in the case of a torque tube, 87 cents per kilogram, 
‘‘(H) in the case of a structural fastener, $2.28 per 
kilogram, 
‘‘(I) in the case of an inverter, an amount equal to 
the product of— 
‘‘(i) the applicable amount with respect to such 
inverter (as determined under paragraph (2)(B)), multi-
plied by 
‘‘(ii) the capacity of such inverter (expressed on 
a per alternating current watt basis), 
‘‘(J) in the case of electrode active materials, an amount 
equal to 10 percent of the costs incurred by the taxpayer 
with respect to production of such materials, 
‘‘(K) in the case of a battery cell, an amount equal 
to the product of— 
‘‘(i) $35, multiplied by 
‘‘(ii) subject to paragraph (4), the capacity of such 
battery cell (expressed on a kilowatt-hour basis), 
‘‘(L) in the case of a battery module, an amount equal 
to the product of— 
‘‘(i) $10 (or, in the case of a battery module which 
does not use battery cells, $45), multiplied by 
‘‘(ii) subject to paragraph (4), the capacity of such 
battery module (expressed on a kilowatt-hour basis), 
and 
‘‘(M) in the case of any applicable critical mineral, 
an amount equal to 10 percent of the costs incurred by 
the taxpayer with respect to production of such mineral. 
‘‘(2) APPLICABLE AMOUNTS.— 
‘‘(A) WIND
ENERGY
COMPONENTS.—For purposes of 
paragraph (1)(F)(ii), the applicable amount with respect 
to any wind energy component shall be— 
‘‘(i) in the case of a blade, 2 cents, 
‘‘(ii) in the case of a nacelle, 5 cents, 
‘‘(iii) in the case of a tower, 3 cents, and 
‘‘(iv) in the case of an offshore wind foundation— 
‘‘(I) which uses a fixed platform, 2 cents, or 
‘‘(II) which uses a floating platform, 4 cents. 
‘‘(B) INVERTERS.—For purposes of paragraph (1)(I), the 
applicable amount with respect to any inverter shall be— 
‘‘(i) in the case of a central inverter, 0.25 cents, 
‘‘(ii) in the case of a utility inverter, 1.5 cents, 
‘‘(iii) in the case of a commercial inverter, 2 cents, 
‘‘(iv) in the case of a residential inverter, 6.5 cents, 
and 
‘‘(v) in the case of a microinverter or a distributed 
wind inverter, 11 cents. 
‘‘(3) PHASE OUT.— 
‘‘(A) IN GENERAL.—Subject to subparagraph (C), in the 
case of any eligible component sold after December 31, 
2029, the amount determined under this subsection with
H. R. 5376—157 
respect to such component shall be equal to the product 
of— 
‘‘(i) the amount determined under paragraph (1) 
with respect to such component, as determined without 
regard to this paragraph, multiplied by 
‘‘(ii) the phase out percentage under subparagraph 
(B). 
‘‘(B) PHASE OUT PERCENTAGE.—The phase out percent-
age under this subparagraph is equal to— 
‘‘(i) in the case of an eligible component sold during 
calendar year 2030, 75 percent, 
‘‘(ii) in the case of an eligible component sold 
during calendar year 2031, 50 percent, 
‘‘(iii) in the case of an eligible component sold 
during calendar year 2032, 25 percent, 
‘‘(iv) in the case of an eligible component sold 
after December 31, 2032, 0 percent. 
‘‘(C) EXCEPTION.—For purposes of determining the 
amount under this subsection with respect to any 
applicable critical mineral, this paragraph shall not apply. 
‘‘(4) LIMITATION ON CAPACITY OF BATTERY CELLS AND BAT-
TERY MODULES.— 
‘‘(A) IN GENERAL.—For purposes of subparagraph (K)(ii) 
or (L)(ii) of paragraph (1), the capacity determined under 
either subparagraph with respect to a battery cell or bat-
tery module shall not exceed a capacity-to-power ratio of 
100:1. 
‘‘(B) CAPACITY-TO-POWER RATIO.—For purposes of this 
paragraph, the term ‘capacity-to-power ratio’ means, with 
respect to a battery cell or battery module, the ratio of 
the capacity of such cell or module to the maximum dis-
charge amount of such cell or module. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) ELIGIBLE COMPONENT.— 
‘‘(A) IN
GENERAL.—The term ‘eligible component’ 
means— 
‘‘(i) any solar energy component, 
‘‘(ii) any wind energy component, 
‘‘(iii) any inverter described in subparagraphs (B) 
through (G) of paragraph (2), 
‘‘(iv) any qualifying battery component, and 
‘‘(v) any applicable critical mineral. 
‘‘(B) APPLICATION
WITH
OTHER
CREDITS.—The term 
‘eligible component’ shall not include any property which 
is produced at a facility if the basis of any property which 
is part of such facility is taken into account for purposes 
of the credit allowed under section 48C after the date 
of the enactment of this section. 
‘‘(2) INVERTERS.— 
‘‘(A) IN GENERAL.—The term ‘inverter’ means an end 
product which is suitable to convert direct current elec-
tricity from 1 or more solar modules or certified distributed 
wind energy systems into alternating current electricity. 
‘‘(B) CENTRAL INVERTER.—The term ‘central inverter’ 
means an inverter which is suitable for large utility-scale 
systems and has a capacity which is greater than 1,000
H. R. 5376—158 
kilowatts (expressed on a per alternating current watt 
basis). 
‘‘(C) COMMERCIAL
INVERTER.—The term ‘commercial 
inverter’ means an inverter which— 
‘‘(i) is suitable for commercial or utility-scale 
applications, 
‘‘(ii) has a rated output of 208, 480, 600, or 800 
volt three-phase power, and 
‘‘(iii) has a capacity which is not less than 20 
kilowatts 
and 
not 
greater 
than 
125 
kilowatts 
(expressed on a per alternating current watt basis). 
‘‘(D) DISTRIBUTED WIND INVERTER.— 
‘‘(i) IN
GENERAL.—The term ‘distributed wind 
inverter’ means an inverter which— 
‘‘(I) is used in a residential or non-residential 
system which utilizes 1 or more certified distrib-
uted wind energy systems, and 
‘‘(II) has a rated output of not greater than 
150 kilowatts. 
‘‘(ii) 
CERTIFIED
DISTRIBUTED
WIND
ENERGY 
SYSTEM.—The term ‘certified distributed wind energy 
system’ means a wind energy system which is certified 
by an accredited certification agency to meet Standard 
9.1-2009 of the American Wind Energy Association 
(including any subsequent revisions to or modifications 
of such Standard which have been approved by the 
American National Standards Institute). 
‘‘(E) MICROINVERTER.—The term ‘microinverter’ means 
an inverter which— 
‘‘(i) is suitable to connect with one solar module, 
‘‘(ii) has a rated output of— 
‘‘(I) 120 or 240 volt single-phase power, or 
‘‘(II) 208 or 480 volt three-phase power, and 
‘‘(iii) has a capacity which is not greater than 
650 watts (expressed on a per alternating current watt 
basis). 
‘‘(F) RESIDENTIAL
INVERTER.—The term ‘residential 
inverter’ means an inverter which— 
‘‘(i) is suitable for a residence, 
‘‘(ii) has a rated output of 120 or 240 volt single- 
phase power, and 
‘‘(iii) has a capacity which is not greater than 
20 kilowatts (expressed on a per alternating current 
watt basis). 
‘‘(G) UTILITY
INVERTER.—The term ‘utility inverter’ 
means an inverter which— 
‘‘(i) is suitable for commercial or utility-scale sys-
tems, 
‘‘(ii) has a rated output of not less than 600 volt 
three-phase power, and 
‘‘(iii) has a capacity which is greater than 125 
kilowatts and not greater than 1000 kilowatts 
(expressed on a per alternating current watt basis) 
‘‘(3) SOLAR ENERGY COMPONENT.— 
‘‘(A) IN GENERAL.—The term ‘solar energy component’ 
means any of the following: 
‘‘(i) Solar modules.
H. R. 5376—159 
‘‘(ii) Photovoltaic cells. 
‘‘(iii) Photovoltaic wafers. 
‘‘(iv) Solar grade polysilicon. 
‘‘(v) Torque tubes or structural fasteners. 
‘‘(vi) Polymeric backsheets. 
‘‘(B) ASSOCIATED DEFINITIONS.— 
‘‘(i) PHOTOVOLTAIC CELL.—The term ‘photovoltaic 
cell’ means the smallest semiconductor element of a 
solar module which performs the immediate conversion 
of light into electricity. 
‘‘(ii) PHOTOVOLTAIC
WAFER.—The term ‘photo-
voltaic wafer’ means a thin slice, sheet, or layer of 
semiconductor material of at least 240 square centi-
meters— 
‘‘(I) produced by a single manufacturer 
either— 
‘‘(aa) directly from molten or evaporated 
solar grade polysilicon or deposition of solar 
grade thin film semiconductor photon absorber 
layer, or 
‘‘(bb) through formation of an ingot from 
molten polysilicon and subsequent slicing, and 
‘‘(II) which comprises the substrate or absorber 
layer of one or more photovoltaic cells. 
‘‘(iii) POLYMERIC BACKSHEET.—The term ‘polymeric 
backsheet’ means a sheet on the back of a solar module 
which acts as an electric insulator and protects the 
inner components of such module from the surrounding 
environment. 
‘‘(iv) SOLAR GRADE POLYSILICON.—The term ‘solar 
grade polysilicon’ means silicon which is— 
‘‘(I) suitable for use in photovoltaic manufac-
turing, and 
‘‘(II) 
purified 
to 
a 
minimum 
purity 
of 
99.999999 percent silicon by mass. 
‘‘(v) SOLAR
MODULE.—The term ‘solar module’ 
means the connection and lamination of photovoltaic 
cells into an environmentally protected final assembly 
which is— 
‘‘(I) suitable to generate electricity when 
exposed to sunlight, and 
‘‘(II) ready for installation without an addi-
tional manufacturing process. 
‘‘(vi) SOLAR
TRACKER.—The term ‘solar tracker’ 
means a mechanical system that moves solar modules 
according to the position of the sun and to increase 
energy output. 
‘‘(vii) SOLAR TRACKER COMPONENTS.— 
‘‘(I) TORQUE
TUBE.—The term ‘torque tube’ 
means 
a 
structural 
steel 
support 
element 
(including longitudinal purlins) which— 
‘‘(aa) is part of a solar tracker, 
‘‘(bb) is of any cross-sectional shape, 
‘‘(cc) may be assembled from individually 
manufactured segments, 
‘‘(dd) 
spans 
longitudinally 
between 
foundation posts,
H. R. 5376—160 
‘‘(ee) supports solar panels and is con-
nected to a mounting attachment for solar 
panels (with or without separate module inter-
face rails), and 
‘‘(ff) is rotated by means of a drive system. 
‘‘(II) STRUCTURAL FASTENER.—The term ‘struc-
tural fastener’ means a component which is used— 
‘‘(aa) to connect the mechanical and drive 
system components of a solar tracker to the 
foundation of such solar tracker, 
‘‘(bb) to connect torque tubes to drive 
assemblies, or 
‘‘(cc) to connect segments of torque tubes 
to one another. 
‘‘(4) WIND ENERGY COMPONENT.— 
‘‘(A) IN GENERAL.—The term ‘wind energy component’ 
means any of the following: 
‘‘(i) Blades. 
‘‘(ii) Nacelles. 
‘‘(iii) Towers. 
‘‘(iv) Offshore wind foundations. 
‘‘(v) Related offshore wind vessels. 
‘‘(B) ASSOCIATED DEFINITIONS.— 
‘‘(i) BLADE.—The term ‘blade’ means an airfoil- 
shaped blade which is responsible for converting wind 
energy to low-speed rotational energy. 
‘‘(ii) OFFSHORE WIND FOUNDATION.—The term ‘off-
shore 
wind 
foundation’ 
means 
the 
component 
(including transition piece) which secures an offshore 
wind tower and any above-water turbine components 
to the seafloor using— 
‘‘(I) fixed platforms, such as offshore wind 
monopiles, jackets, or gravity-based foundations, 
or 
‘‘(II) floating platforms and associated mooring 
systems. 
‘‘(iii) NACELLE.—The term ‘nacelle’ means the 
assembly of the drivetrain and other tower-top compo-
nents of a wind turbine (with the exception of the 
blades and the hub) within their cover housing. 
‘‘(iv) RELATED OFFSHORE WIND VESSEL.—The term 
‘related offshore wind vessel’ means any vessel which 
is purpose-built or retrofitted for purposes of the 
development, transport, installation, operation, or 
maintenance of offshore wind energy components. 
‘‘(v) TOWER.—The term ‘tower’ means a tubular 
or lattice structure which supports the nacelle and 
rotor of a wind turbine. 
‘‘(5) QUALIFYING BATTERY COMPONENT.— 
‘‘(A) IN GENERAL.—The term ‘qualifying battery compo-
nent’ means any of the following: 
‘‘(i) Electrode active materials. 
‘‘(ii) Battery cells. 
‘‘(iii) Battery modules. 
‘‘(B) ASSOCIATED DEFINITIONS.— 
‘‘(i) ELECTRODE ACTIVE MATERIAL.—The term ‘elec-
trode active material’ means cathode materials, anode
H. R. 5376—161 
materials, anode foils, and electrochemically active 
materials, including solvents, additives, and electrolyte 
salts that contribute to the electrochemical processes 
necessary for energy storage . 
‘‘(ii) BATTERY CELL.—The term ‘battery cell’ means 
an electrochemical cell— 
‘‘(I) comprised of 1 or more positive electrodes 
and 1 or more negative electrodes, 
‘‘(II) with an energy density of not less than 
100 watt-hours per liter, and 
‘‘(III) capable of storing at least 12 watt-hours 
of energy. 
‘‘(iii) BATTERY MODULE.—The term ‘battery module’ 
means a module— 
‘‘(I)(aa) in the case of a module using battery 
cells, with 2 or more battery cells which are config-
ured electrically, in series or parallel, to create 
voltage or current, as appropriate, to a specified 
end use, or 
‘‘(bb) with no battery cells, and 
‘‘(II) with an aggregate capacity of not less 
than 7 kilowatt-hours (or, in the case of a module 
for a hydrogen fuel cell vehicle, not less than 1 
kilowatt-hour). 
‘‘(6) APPLICABLE CRITICAL MINERALS.—The term ‘applicable 
critical mineral’ means any of the following: 
‘‘(A) ALUMINUM.—Aluminum which is— 
‘‘(i) converted from bauxite to a minimum purity 
of 99 percent alumina by mass, or 
‘‘(ii) purified to a minimum purity of 99.9 percent 
aluminum by mass. 
‘‘(B) ANTIMONY.—Antimony which is— 
‘‘(i) converted to antimony trisulfide concentrate 
with a minimum purity of 90 percent antimony 
trisulfide by mass, or 
‘‘(ii) purified to a minimum purity of 99.65 percent 
antimony by mass. 
‘‘(C) BARITE.—Barite which is barium sulfate purified 
to a minimum purity of 80 percent barite by mass. 
‘‘(D) BERYLLIUM.—Beryllium which is— 
‘‘(i) converted to copper-beryllium master alloy, or 
‘‘(ii) purified to a minimum purity of 99 percent 
beryllium by mass. 
‘‘(E) CERIUM.—Cerium which is— 
‘‘(i) converted to cerium oxide which is purified 
to a minimum purity of 99.9 percent cerium oxide 
by mass, or 
‘‘(ii) purified to a minimum purity of 99 percent 
cerium by mass. 
‘‘(F) CESIUM.—Cesium which is— 
‘‘(i) converted to cesium formate or cesium car-
bonate, or 
‘‘(ii) purified to a minimum purity of 99 percent 
cesium by mass. 
‘‘(G) CHROMIUM.—Chromium which is— 
‘‘(i) converted to ferrochromium consisting of not 
less than 60 percent chromium by mass, or
H. R. 5376—162 
‘‘(ii) purified to a minimum purity of 99 percent 
chromium by mass. 
‘‘(H) COBALT.—Cobalt which is— 
‘‘(i) converted to cobalt sulfate, or 
‘‘(ii) purified to a minimum purity of 99.6 percent 
cobalt by mass. 
‘‘(I) DYSPROSIUM.—Dysprosium which is— 
‘‘(i) converted to not less than 99 percent pure 
dysprosium iron alloy by mass, or 
‘‘(ii) purified to a minimum purity of 99 percent 
dysprosium by mass. 
‘‘(J) EUROPIUM.—Europium which is— 
‘‘(i) converted to europium oxide which is purified 
to a minimum purity of 99.9 percent europium oxide 
by mass, or 
‘‘(ii) purified to a minimum purity of 99 percent 
by mass. 
‘‘(K) FLUORSPAR.—Fluorspar which is— 
‘‘(i) converted to fluorspar which is purified to a 
minimum purity of 97 percent calcium fluoride by 
mass, or 
‘‘(ii) purified to a minimum purity of 99 percent 
fluorspar by mass. 
‘‘(L) GADOLINIUM.—Gadolinium which is— 
‘‘(i) converted to gadolinium oxide which is purified 
to a minimum purity of 99.9 percent gadolinium oxide 
by mass, or 
‘‘(ii) purified to a minimum purity of 99 percent 
gadolinium by mass. 
‘‘(M) GERMANIUM.—Germanium which is— 
‘‘(i) converted to germanium tetrachloride, or 
‘‘(ii) purified to a minimum purity of 99.99 percent 
germanium by mass. 
‘‘(N) GRAPHITE.—Graphite which is purified to a min-
imum purity of 99.9 percent graphitic carbon by mass. 
‘‘(O) INDIUM.—Indium which is— 
‘‘(i) converted to— 
‘‘(I) indium tin oxide, or 
‘‘(II) indium oxide which is purified to a min-
imum purity of 99.9 percent indium oxide by mass, 
or 
‘‘(ii) purified to a minimum purity of 99 percent 
indium by mass. 
‘‘(P) LITHIUM.—Lithium which is— 
‘‘(i) converted to lithium carbonate or lithium 
hydroxide, or 
‘‘(ii) purified to a minimum purity of 99.9 percent 
lithium by mass. 
‘‘(Q) MANGANESE.—Manganese which is— 
‘‘(i) converted to manganese sulphate, or 
‘‘(ii) purified to a minimum purity of 99.7 percent 
manganese by mass. 
‘‘(R) NEODYMIUM.—Neodymium which is— 
‘‘(i) converted to neodymium-praseodymium oxide 
which is purified to a minimum purity of 99 percent 
neodymium-praseodymium oxide by mass,
H. R. 5376—163 
‘‘(ii) converted to neodymium oxide which is puri-
fied to a minimum purity of 99.5 percent neodymium 
oxide by mass 
‘‘(iii) purified to a minimum purity of 99.9 percent 
neodymium by mass. 
‘‘(S) NICKEL.—Nickel which is— 
‘‘(i) converted to nickel sulphate, or 
‘‘(ii) purified to a minimum purity of 99 percent 
nickel by mass. 
‘‘(T) NIOBIUM.—Niobium which is— 
‘‘(i) converted to ferronibium, or 
‘‘(ii) purified to a minimum purity of 99 percent 
niobium by mass. 
‘‘(U) TELLURIUM.—Tellurium which is— 
‘‘(i) converted to cadmium telluride, or 
‘‘(ii) purified to a minimum purity of 99 percent 
tellurium by mass. 
‘‘(V) TIN.—Tin which is purified to low alpha emitting 
tin which— 
‘‘(i) has a purity of greater than 99.99 percent 
by mass, and 
‘‘(ii) possesses an alpha emission rate of not greater 
than 0.01 counts per hour per centimeter square. 
‘‘(W) TUNGSTEN.—Tungsten which is converted to 
ammonium paratungstate or ferrotungsten. 
‘‘(X) VANADIUM.—Vanadium which is converted to 
ferrovanadium or vanadium pentoxide. 
‘‘(Y) YTTRIUM.—Yttrium which is— 
‘‘(i) converted to yttrium oxide which is purified 
to a minimum purity of 99.999 percent yttrium oxide 
by mass, or 
‘‘(ii) purified to a minimum purity of 99.9 percent 
yttrium by mass. 
‘‘(Z) OTHER MINERALS.—Any of the following minerals, 
provided that such mineral is purified to a minimum purity 
of 99 percent by mass: 
‘‘(i) Arsenic. 
‘‘(ii) Bismuth. 
‘‘(iii) Erbium. 
‘‘(iv) Gallium. 
‘‘(v) Hafnium. 
‘‘(vi) Holmium. 
‘‘(vii) Iridium. 
‘‘(viii) Lanthanum. 
‘‘(ix) Lutetium. 
‘‘(x) Magnesium. 
‘‘(xi) Palladium. 
‘‘(xii) Platinum. 
‘‘(xiii) Praseodymium. 
‘‘(xiv) Rhodium. 
‘‘(xv) Rubidium. 
‘‘(xvi) Ruthenium. 
‘‘(xvii) Samarium. 
‘‘(xviii) Scandium. 
‘‘(xix) Tantalum. 
‘‘(xx) Terbium. 
‘‘(xxi) Thulium.
H. R. 5376—164 
‘‘(xxii) Titanium. 
‘‘(xxiii) Ytterbium. 
‘‘(xxiv) Zinc. 
‘‘(xxv) Zirconium. 
‘‘(d) SPECIAL RULES.—In this section— 
‘‘(1) RELATED PERSONS.—Persons shall be treated as related 
to each other if such persons would be treated as a single 
employer under the regulations prescribed under section 52(b). 
‘‘(2) ONLY PRODUCTION IN THE UNITED STATES TAKEN INTO 
ACCOUNT.—Sales shall be taken into account under this section 
only with respect to eligible components the production of which 
is within— 
‘‘(A) the United States (within the meaning of section 
638(1)), or 
‘‘(B) a possession of the United States (within the 
meaning of section 638(2)). 
‘‘(3) PASS-THRU IN THE CASE OF ESTATES AND TRUSTS.— 
Under regulations prescribed by the Secretary, rules similar 
to the rules of subsection (d) of section 52 shall apply. 
‘‘(4) SALE OF INTEGRATED COMPONENTS.—For purposes of 
this section, a person shall be treated as having sold an eligible 
component to an unrelated person if such component is 
integrated, incorporated, or assembled into another eligible 
component which is sold to an unrelated person.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 38(b) of the Internal Revenue Code of 1986, 
as amended by the preceding provisions of this Act, is 
amended— 
(A) in paragraph (36), by striking ‘‘plus’’ at the end, 
(B) in paragraph (37), by striking the period at the 
end and inserting ‘‘, plus’’, and 
(C) by adding at the end the following new paragraph: 
‘‘(38) the advanced manufacturing production credit deter-
mined under section 45X(a).’’. 
(2) The table of sections for subpart D of part IV of sub-
chapter A of chapter 1, as amended by the preceding provisions 
of this Act, is amended by adding at the end the following 
new item: 
‘‘Sec. 45X. Advanced manufacturing production credit.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to components produced and sold after December 31, 
2022. 
PART 6—SUPERFUND 
SEC. 13601. REINSTATEMENT OF SUPERFUND. 
(a) HAZARDOUS SUBSTANCE SUPERFUND FINANCING RATE.— 
(1) EXTENSION.—Section 4611 is amended by striking sub-
section (e). 
(2) ADJUSTMENT FOR INFLATION.— 
(A) Section 4611(c)(2)(A) is amended by striking ‘‘9.7 
cents’’ and inserting ‘‘16.4 cents’’. 
(B) Section 4611(c) is amended by adding at the end 
the following: 
‘‘(3) ADJUSTMENT FOR INFLATION.—
H. R. 5376—165 
‘‘(A) IN
GENERAL.—In the case of a year beginning 
after 2023, the amount in paragraph (2)(A) shall be 
increased by an amount equal to— 
‘‘(i) such amount, multiplied by 
‘‘(ii) the cost-of-living adjustment determined 
under section 1(f)(3) for the calendar year, determined 
by substituting ‘calendar year 2022’ for ‘calendar year 
2016’ in subparagraph (A)(ii) thereof. 
‘‘(B) ROUNDING.—If any amount as adjusted under 
subparagraph (A) is not a multiple of $0.01, such amount 
shall be rounded to the next lowest multiple of $0.01.’’. 
(b) AUTHORITY
FOR
ADVANCES.—Section 9507(d)(3)(B) is 
amended by striking ‘‘December 31, 1995’’ and inserting ‘‘December 
31, 2032’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on January 1, 2023. 
PART 7—INCENTIVES FOR CLEAN 
ELECTRICITY AND CLEAN TRANSPORTATION 
SEC. 13701. CLEAN ELECTRICITY PRODUCTION CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of subchapter A of 
chapter 1, as amended by the preceding provisions of this Act, 
is amended by adding at the end the following new section: 
‘‘SEC. 45Y. CLEAN ELECTRICITY PRODUCTION CREDIT. 
‘‘(a) AMOUNT OF CREDIT.— 
‘‘(1) IN GENERAL.—For purposes of section 38, the clean 
electricity production credit for any taxable year is an amount 
equal to the product of— 
‘‘(A) the kilowatt hours of electricity— 
‘‘(i) produced by the taxpayer at a qualified facility, 
and 
‘‘(ii)(I) sold by the taxpayer to an unrelated person 
during the taxable year, or 
‘‘(II) in the case of a qualified facility which is 
equipped with a metering device which is owned and 
operated by an unrelated person, sold, consumed, or 
stored by the taxpayer during the taxable year, multi-
plied by 
‘‘(B) the applicable amount with respect to such quali-
fied facility. 
‘‘(2) APPLICABLE AMOUNT.— 
‘‘(A) BASE
AMOUNT.—Subject to subsection (g)(7), in 
the case of any qualified facility which is not described 
in clause (i) or (ii) of subparagraph (B) and does not satisfy 
the requirements described in clause (iii) of such subpara-
graph, the applicable amount shall be 0.3 cents. 
‘‘(B) ALTERNATIVE
AMOUNT.—Subject to subsection 
(g)(7), in the case of any qualified facility— 
‘‘(i) with a maximum net output of less than 1 
megawatt (as measured in alternating current), 
‘‘(ii) the construction of which begins prior to the 
date that is 60 days after the Secretary publishes 
guidance with respect to the requirements of para-
graphs (9) and (10) of subsection (g), or 
‘‘(iii) which—
H. R. 5376—166 
‘‘(I) satisfies the requirements under para-
graph (9) of subsection (g), and 
‘‘(II) with respect to the construction of such 
facility, satisfies the requirements under para-
graph (10) of subsection (g), 
the applicable amount shall be 1.5 cents. 
‘‘(b) QUALIFIED FACILITY.— 
‘‘(1) IN GENERAL.— 
‘‘(A) DEFINITION.—Subject to subparagraphs (B), (C), 
and (D), the term ‘qualified facility’ means a facility owned 
by the taxpayer— 
‘‘(i) which is used for the generation of electricity, 
‘‘(ii) which is placed in service after December 31, 
2024, and 
‘‘(iii) for which the greenhouse gas emissions rate 
(as determined under paragraph (2)) is not greater 
than zero. 
‘‘(B) 10-YEAR PRODUCTION CREDIT.—For purposes of this 
section, a facility shall only be treated as a qualified facility 
during the 10-year period beginning on the date the facility 
was originally placed in service. 
‘‘(C) EXPANSION
OF
FACILITY; INCREMENTAL
PRODUC-
TION.—The term ‘qualified facility’ shall include either of 
the following in connection with a facility described in 
subparagraph (A) (without regard to clause (ii) of such 
subparagraph) which was placed in service before January 
1, 2025, but only to the extent of the increased amount 
of electricity produced at the facility by reason of the fol-
lowing: 
‘‘(i) A new unit which is placed in service after 
December 31, 2024. 
‘‘(ii) Any additions of capacity which are placed 
in service after December 31, 2024. 
‘‘(D) COORDINATION WITH OTHER CREDITS.—The term 
‘qualified facility’ shall not include any facility for which 
a credit determined under section 45, 45J, 45Q, 45U, 48, 
48A, or 48E is allowed under section 38 for the taxable 
year or any prior taxable year. 
‘‘(2) GREENHOUSE GAS EMISSIONS RATE.— 
‘‘(A) IN GENERAL.—For purposes of this section, the 
term ‘greenhouse gas emissions rate’ means the amount 
of greenhouse gases emitted into the atmosphere by a 
facility in the production of electricity, expressed as grams 
of CO2e per KWh. 
‘‘(B) FUEL COMBUSTION AND GASIFICATION.—In the case 
of a facility which produces electricity through combustion 
or gasification, the greenhouse gas emissions rate for such 
facility shall be equal to the net rate of greenhouse gases 
emitted into the atmosphere by such facility (taking into 
account lifecycle greenhouse gas emissions, as described 
in section 211(o)(1)(H) of the Clean Air Act (42 U.S.C. 
7545(o)(1)(H))) in the production of electricity, expressed 
as grams of CO2e per KWh. 
‘‘(C) ESTABLISHMENT OF EMISSIONS RATES FOR FACILI-
TIES.—
H. R. 5376—167 
‘‘(i) PUBLISHING EMISSIONS RATES.—The Secretary 
shall annually publish a table that sets forth the green-
house gas emissions rates for types or categories of 
facilities, which a taxpayer shall use for purposes of 
this section. 
‘‘(ii) PROVISIONAL EMISSIONS RATE.—In the case of 
any facility for which an emissions rate has not been 
established by the Secretary, a taxpayer which owns 
such facility may file a petition with the Secretary 
for determination of the emissions rate with respect 
to such facility. 
‘‘(D) CARBON
CAPTURE
AND
SEQUESTRATION
EQUIP-
MENT.—For purposes of this subsection, the amount of 
greenhouse gases emitted into the atmosphere by a facility 
in the production of electricity shall not include any quali-
fied carbon dioxide that is captured by the taxpayer and— 
‘‘(i) pursuant to any regulations established under 
paragraph (2) of section 45Q(f), disposed of by the 
taxpayer in secure geological storage, or 
‘‘(ii) utilized by the taxpayer in a manner described 
in paragraph (5) of such section. 
‘‘(c) INFLATION ADJUSTMENT.— 
‘‘(1) IN GENERAL.—In the case of a calendar year beginning 
after 2024, the 0.3 cent amount in paragraph (2)(A) of sub-
section (a) and the 1.5 cent amount in paragraph (2)(B) of 
such subsection shall each be adjusted by multiplying such 
amount by the inflation adjustment factor for the calendar 
year in which the sale, consumption, or storage of the electricity 
occurs. If the 0.3 cent amount as increased under this para-
graph is not a multiple of 0.05 cent, such amount shall be 
rounded to the nearest multiple of 0.05 cent. If the 1.5 cent 
amount as increased under this paragraph is not a multiple 
of 0.1 cent, such amount shall be rounded to the nearest mul-
tiple of 0.1 cent. 
‘‘(2) ANNUAL COMPUTATION.—The Secretary shall, not later 
than April 1 of each calendar year, determine and publish 
in the Federal Register the inflation adjustment factor for such 
calendar year in accordance with this subsection. 
‘‘(3) INFLATION ADJUSTMENT FACTOR.—The term ‘inflation 
adjustment factor’ means, with respect to a calendar year, 
a fraction the numerator of which is the GDP implicit price 
deflator for the preceding calendar year and the denominator 
of which is the GDP implicit price deflator for the calendar 
year 1992. The term ‘GDP implicit price deflator’ means the 
most recent revision of the implicit price deflator for the gross 
domestic product as computed and published by the Department 
of Commerce before March 15 of the calendar year. 
‘‘(d) CREDIT PHASE-OUT.— 
‘‘(1) IN
GENERAL.—The amount of the clean electricity 
production credit under subsection (a) for any qualified facility 
the construction of which begins during a calendar year 
described in paragraph (2) shall be equal to the product of— 
‘‘(A) the amount of the credit determined under sub-
section (a) without regard to this subsection, multiplied 
by 
‘‘(B) the phase-out percentage under paragraph (2).
H. R. 5376—168 
‘‘(2) PHASE-OUT
PERCENTAGE.—The phase-out percentage 
under this paragraph is equal to— 
‘‘(A) for a facility the construction of which begins 
during the first calendar year following the applicable year, 
100 percent, 
‘‘(B) for a facility the construction of which begins 
during the second calendar year following the applicable 
year, 75 percent, 
‘‘(C) for a facility the construction of which begins 
during the third calendar year following the applicable 
year, 50 percent, and 
‘‘(D) for a facility the construction of which begins 
during any calendar year subsequent to the calendar year 
described in subparagraph (C), 0 percent. 
‘‘(3) APPLICABLE YEAR.—For purposes of this subsection, 
the term ‘applicable year’ means the later of— 
‘‘(A) the calendar year in which the Secretary deter-
mines that the annual greenhouse gas emissions from the 
production of electricity in the United States are equal 
to or less than 25 percent of the annual greenhouse gas 
emissions from the production of electricity in the United 
States for calendar year 2022, or 
‘‘(B) 2032. 
‘‘(e) DEFINITIONS.—For purposes of this section: 
‘‘(1) CO2e PER KWh.—The term ‘CO2e per KWh’ means, 
with respect to any greenhouse gas, the equivalent carbon 
dioxide (as determined based on global warming potential) per 
kilowatt hour of electricity produced. 
‘‘(2) GREENHOUSE GAS.—The term ‘greenhouse gas’ has the 
same meaning given such term under section 211(o)(1)(G) of 
the Clean Air Act (42 U.S.C. 7545(o)(1)(G)), as in effect on 
the date of the enactment of this section. 
‘‘(3) QUALIFIED
CARBON
DIOXIDE.—The term ‘qualified 
carbon dioxide’ means carbon dioxide captured from an indus-
trial source which— 
‘‘(A) would otherwise be released into the atmosphere 
as industrial emission of greenhouse gas, 
‘‘(B) is measured at the source of capture and verified 
at the point of disposal or utilization, and 
‘‘(C) is captured and disposed or utilized within the 
United States (within the meaning of section 638(1)) or 
a possession of the United States (within the meaning 
of section 638(2)). 
‘‘(f) GUIDANCE.—Not later than January 1, 2025, the Secretary 
shall issue guidance regarding implementation of this section, 
including calculation of greenhouse gas emission rates for qualified 
facilities and determination of clean electricity production credits 
under this section. 
‘‘(g) SPECIAL RULES.— 
‘‘(1) ONLY PRODUCTION IN THE UNITED STATES TAKEN INTO 
ACCOUNT.—Consumption, sales, or storage shall be taken into 
account under this section only with respect to electricity the 
production of which is within— 
‘‘(A) the United States (within the meaning of section 
638(1)), or 
‘‘(B) a possession of the United States (within the 
meaning of section 638(2)).
H. R. 5376—169 
‘‘(2) COMBINED HEAT AND POWER SYSTEM PROPERTY.— 
‘‘(A) IN
GENERAL.—For purposes of subsection (a)— 
‘‘(i) the kilowatt hours of electricity produced by 
a taxpayer at a qualified facility shall include any 
production in the form of useful thermal energy by 
any combined heat and power system property within 
such facility, and 
‘‘(ii) the amount of greenhouse gases emitted into 
the atmosphere by such facility in the production of 
such useful thermal energy shall be included for pur-
poses of determining the greenhouse gas emissions 
rate for such facility. 
‘‘(B) COMBINED HEAT AND POWER SYSTEM PROPERTY.— 
For purposes of this paragraph, the term ‘combined heat 
and power system property’ has the same meaning given 
such term by section 48(c)(3) (without regard to subpara-
graphs (A)(iv), (B), and (D) thereof). 
‘‘(C) CONVERSION FROM BTU TO KWH.— 
‘‘(i) IN GENERAL.—For purposes of subparagraph 
(A)(i), the amount of kilowatt hours of electricity pro-
duced in the form of useful thermal energy shall be 
equal to the quotient of— 
‘‘(I) the total useful thermal energy produced 
by the combined heat and power system property 
within the qualified facility, divided by 
‘‘(II) the heat rate for such facility. 
‘‘(ii) HEAT RATE.—For purposes of this subpara-
graph, the term ‘heat rate’ means the amount of energy 
used by the qualified facility to generate 1 kilowatt 
hour of electricity, expressed as British thermal units 
per net kilowatt hour generated. 
‘‘(3) PRODUCTION ATTRIBUTABLE TO THE TAXPAYER.—In the 
case of a qualified facility in which more than 1 person has 
an ownership interest, except to the extent provided in regula-
tions prescribed by the Secretary, production from the facility 
shall be allocated among such persons in proportion to their 
respective ownership interests in the gross sales from such 
facility. 
‘‘(4) RELATED PERSONS.—Persons shall be treated as related 
to each other if such persons would be treated as a single 
employer under the regulations prescribed under section 52(b). 
In the case of a corporation which is a member of an affiliated 
group of corporations filing a consolidated return, such corpora-
tion shall be treated as selling electricity to an unrelated person 
if such electricity is sold to such a person by another member 
of such group. 
‘‘(5) PASS-THRU IN THE CASE OF ESTATES AND TRUSTS.— 
Under regulations prescribed by the Secretary, rules similar 
to the rules of subsection (d) of section 52 shall apply. 
‘‘(6) ALLOCATION OF CREDIT TO PATRONS OF AGRICULTURAL 
COOPERATIVE.— 
‘‘(A) ELECTION TO ALLOCATE.— 
‘‘(i) IN GENERAL.—In the case of an eligible coopera-
tive organization, any portion of the credit determined 
under subsection (a) for the taxable year may, at the 
election of the organization, be apportioned among 
patrons of the organization on the basis of the amount
H. R. 5376—170 
of business done by the patrons during the taxable 
year. 
‘‘(ii) FORM AND EFFECT OF ELECTION.—An election 
under clause (i) for any taxable year shall be made 
on a timely filed return for such year. Such election, 
once made, shall be irrevocable for such taxable year. 
Such election shall not take effect unless the organiza-
tion designates the apportionment as such in a written 
notice mailed to its patrons during the payment period 
described in section 1382(d). 
‘‘(B) TREATMENT
OF
ORGANIZATIONS
AND
PATRONS.— 
The amount of the credit apportioned to any patrons under 
subparagraph (A)— 
‘‘(i) shall not be included in the amount determined 
under subsection (a) with respect to the organization 
for the taxable year, and 
‘‘(ii) shall be included in the amount determined 
under subsection (a) for the first taxable year of each 
patron ending on or after the last day of the payment 
period (as defined in section 1382(d)) for the taxable 
year of the organization or, if earlier, for the taxable 
year of each patron ending on or after the date on 
which the patron receives notice from the cooperative 
of the apportionment. 
‘‘(C) SPECIAL RULES FOR DECREASE IN CREDITS FOR TAX-
ABLE YEAR.—If the amount of the credit of a cooperative 
organization determined under subsection (a) for a taxable 
year is less than the amount of such credit shown on 
the return of the cooperative organization for such year, 
an amount equal to the excess of— 
‘‘(i) such reduction, over 
‘‘(ii) the amount not apportioned to such patrons 
under subparagraph (A) for the taxable year, 
shall be treated as an increase in tax imposed by this 
chapter on the organization. Such increase shall not be 
treated as tax imposed by this chapter for purposes of 
determining the amount of any credit under this chapter. 
‘‘(D) ELIGIBLE COOPERATIVE DEFINED.—For purposes of 
this section, the term ‘eligible cooperative’ means a coopera-
tive organization described in section 1381(a) which is 
owned more than 50 percent by agricultural producers 
or by entities owned by agricultural producers. For this 
purpose an entity owned by an agricultural producer is 
one that is more than 50 percent owned by agricultural 
producers. 
‘‘(7) INCREASE IN CREDIT IN ENERGY COMMUNITIES.—In the 
case of any qualified facility which is located in an energy 
community (as defined in section 45(b)(11)(B)), for purposes 
of determining the amount of the credit under subsection (a) 
with respect to any electricity produced by the taxpayer at 
such facility during the taxable year, the applicable amount 
under paragraph (2) of such subsection shall be increased by 
an amount equal to 10 percent of the amount otherwise in 
effect under such paragraph. 
‘‘(8) CREDIT
REDUCED
FOR
TAX-EXEMPT
BONDS.—Rules 
similar to the rules of section 45(b)(3) shall apply.
H. R. 5376—171 
‘‘(9) WAGE REQUIREMENTS.—Rules similar to the rules of 
section 45(b)(7) shall apply. 
‘‘(10) APPRENTICESHIP REQUIREMENTS.—Rules similar to the 
rules of section 45(b)(8) shall apply. 
‘‘(11) DOMESTIC CONTENT BONUS CREDIT AMOUNT.— 
‘‘(A) IN GENERAL.—In the case of any qualified facility 
which satisfies the requirement under subparagraph (B)(i), 
the amount of the credit determined under subsection (a) 
shall be increased by an amount equal to 10 percent of 
the amount so determined (as determined without applica-
tion of paragraph (7)). 
‘‘(B) REQUIREMENT.— 
‘‘(i) IN GENERAL.—The requirement described in 
this subclause is satisfied with respect to any qualified 
facility if the taxpayer certifies to the Secretary (at 
such time, and in such form and manner, as the Sec-
retary may prescribe) that any steel, iron, or manufac-
tured product which is a component of such facility 
(upon completion of construction) was produced in the 
United States (as determined under section 661 of 
title 49, Code of Federal Regulations). 
‘‘(ii) STEEL AND IRON.—In the case of steel or iron, 
clause (i) shall be applied in a manner consistent with 
section 661.5 of title 49, Code of Federal Regulations. 
‘‘(iii) MANUFACTURED PRODUCT.—For purposes of 
clause (i), the manufactured products which are compo-
nents of a qualified facility upon completion of 
construction shall be deemed to have been produced 
in the United States if not less than the adjusted 
percentage (as determined under subparagraph (C)) 
of the total costs of all such manufactured products 
of such facility are attributable to manufactured prod-
ucts (including components) which are mined, pro-
duced, or manufactured in the United States. 
‘‘(C) ADJUSTED PERCENTAGE.— 
‘‘(i) IN GENERAL.—Subject to subclause (ii), for pur-
poses of subparagraph (B)(iii), the adjusted percentage 
shall be— 
‘‘(I) in the case of a facility the construction 
of which begins before January 1, 2025, 40 percent, 
‘‘(II) in the case of a facility the construction 
of which begins after December 31, 2024, and 
before January 1, 2026, 45 percent, 
‘‘(III) in the case of a facility the construction 
of which begins after December 31, 2025, and 
before January 1, 2027, 50 percent, and 
‘‘(IV) in the case of a facility the construction 
of which begins after December 31, 2026, 55 per-
cent. 
‘‘(ii) OFFSHORE WIND FACILITY.—For purposes of 
subparagraph (B)(iii), in the case of a qualified facility 
which is an offshore wind facility, the adjusted percent-
age shall be— 
‘‘(I) in the case of a facility the construction 
of which begins before January 1, 2025, 20 percent,
H. R. 5376—172 
‘‘(II) in the case of a facility the construction 
of which begins after December 31, 2024, and 
before January 1, 2026, 27.5 percent, 
‘‘(III) in the case of a facility the construction 
of which begins after December 31, 2025, and 
before January 1, 2027, 35 percent, 
‘‘(IV) in the case of a facility the construction 
of which begins after December 31, 2026, and 
before January 1, 2028, 45 percent, and 
‘‘(V) in the case of a facility the construction 
of which begins after December 31, 2027, 55 per-
cent. 
‘‘(12) PHASEOUT FOR ELECTIVE PAYMENT.— 
‘‘(A) IN GENERAL.—In the case of a taxpayer 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 (determined without 
regard to this paragraph), multiplied by 
‘‘(ii) the applicable percentage. 
‘‘(B) 100 PERCENT APPLICABLE PERCENTAGE FOR CER-
TAIN QUALIFIED FACILITIES.—In the case of any qualified 
facility— 
‘‘(i) which satisfies the requirements under para-
graph (11)(B), or 
‘‘(ii) with a maximum net output of less than 1 
megawatt (as measured in alternating current), 
the applicable percentage shall be 100 percent. 
‘‘(C) PHASED DOMESTIC CONTENT REQUIREMENT.—Sub-
ject to subparagraph (D), in the case of any qualified facility 
which is not described in subparagraph (B), the applicable 
percentage shall be— 
‘‘(i) if construction of such facility began before 
January 1, 2024, 100 percent, 
‘‘(ii) if construction of such facility began in cal-
endar year 2024, 90 percent, 
‘‘(iii) if construction of such facility began in cal-
endar year 2025, 85 percent, and 
‘‘(iv) if construction of such facility began after 
December 31, 2025, 0 percent. 
‘‘(D) EXCEPTION.— 
‘‘(i) IN GENERAL.—For purposes of this paragraph, 
the Secretary shall provide exceptions to the require-
ments under this paragraph if— 
‘‘(I) the inclusion of steel, iron, or manufac-
tured products which are produced in the United 
States increases the overall costs of construction 
of qualified facilities by more than 25 percent, 
or 
‘‘(II) relevant steel, iron, or manufactured 
products are not produced in the United States 
in sufficient and reasonably available quantities 
or of a satisfactory quality. 
‘‘(ii) APPLICABLE
PERCENTAGE.—In any case in 
which the Secretary provides an exception pursuant 
to clause (i), the applicable percentage shall be 100 
percent.’’.
H. R. 5376—173 
(b) CONFORMING AMENDMENTS.— 
(1) Section 38(b), as amended by the preceding provisions 
of this Act, is amended— 
(A) in paragraph (37), by striking ‘‘plus’’ at the end, 
(B) in paragraph (38), by striking the period at the 
end and inserting ‘‘, plus’’, and 
(C) by adding at the end the following new paragraph: 
‘‘(39) the clean electricity production credit determined 
under section 45Y(a).’’. 
(2) The table of sections for subpart D of part IV of sub-
chapter A of chapter 1, as amended by the preceding provisions 
of this Act, is amended by adding at the end the following 
new item: 
‘‘Sec. 45Y. Clean electricity production credit.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to facilities placed in service after December 31, 2024. 
SEC. 13702. CLEAN ELECTRICITY INVESTMENT CREDIT. 
(a) IN GENERAL.—Subpart E of part IV of subchapter A of 
chapter 1, as amended by section 107(a) of the CHIPS Act of 
2022, is amended by inserting after section 48D the following new 
section: 
‘‘SEC. 48E. CLEAN ELECTRICITY INVESTMENT CREDIT. 
‘‘(a) INVESTMENT CREDIT FOR QUALIFIED PROPERTY.— 
‘‘(1) IN GENERAL.—For purposes of section 46, the clean 
electricity investment credit for any taxable year is an amount 
equal to the applicable percentage of the qualified investment 
for such taxable year with respect to— 
‘‘(A) any qualified facility, and 
‘‘(B) any energy storage technology. 
‘‘(2) APPLICABLE PERCENTAGE.— 
‘‘(A) QUALIFIED FACILITIES.—Subject to paragraph (3)— 
‘‘(i) BASE
RATE.—In the case of any qualified 
facility which is not described in subclause (I) or (II) 
of clause (ii) and does not satisfy the requirements 
described in subclause (III) of such clause, the 
applicable percentage shall be 6 percent. 
‘‘(ii) ALTERNATIVE RATE.—In the case of any quali-
fied facility— 
‘‘(I) with a maximum net output of less than 
1 megawatt (as measured in alternating current), 
‘‘(II) the construction of which begins prior 
to the date that is 60 days after the Secretary 
publishes guidance with respect to the require-
ments of paragraphs (3) and (4) of subsection (d), 
or 
‘‘(III) which— 
‘‘(aa) satisfies the requirements of sub-
section (d)(3), and 
‘‘(bb) with respect to the construction of 
such facility, satisfies the requirements of sub-
section (d)(4), 
the applicable percentage shall be 30 percent. 
‘‘(B) ENERGY STORAGE TECHNOLOGY.—Subject to para-
graph (3)—
H. R. 5376—174 
‘‘(i) BASE RATE.—In the case of any energy storage 
technology which is not described in subclause (I) or 
(II) of clause (ii) and does not satisfy the requirements 
described in subclause (III) of such clause, the 
applicable percentage shall be 6 percent. 
‘‘(ii) ALTERNATIVE RATE.—In the case of any energy 
storage technology— 
‘‘(I) with a capacity of less than 1 megawatt, 
‘‘(II) the construction of which begins prior 
to the date that is 60 days after the Secretary 
publishes guidance with respect to the require-
ments of paragraphs (3) and (4) of subsection (d), 
or 
‘‘(III) which— 
‘‘(aa) satisfies the requirements of sub-
section (d)(3), and 
‘‘(bb) with respect to the construction of 
such property, satisfies the requirements of 
subsection (d)(4), 
the applicable percentage shall be 30 percent. 
‘‘(3) INCREASE IN CREDIT RATE IN CERTAIN CASES.— 
‘‘(A) ENERGY COMMUNITIES.— 
‘‘(i) IN
GENERAL.—In the case of any qualified 
investment with respect to a qualified facility or with 
respect to energy storage technology which is placed 
in service within an energy community (as defined 
in section 45(b)(11)(B)), for purposes of applying para-
graph (2) with respect to such property or investment, 
the applicable percentage shall be increased by the 
applicable credit rate increase. 
‘‘(ii) APPLICABLE CREDIT RATE INCREASE.—For pur-
poses of clause (i), the applicable credit rate increase 
shall be an amount equal to— 
‘‘(I) in the case of any qualified investment 
with respect to a qualified facility described in 
paragraph (2)(A)(i) or with respect to energy stor-
age technology described in paragraph (2)(B)(i), 
2 percentage points, and 
‘‘(II) in the case of any qualified investment 
with respect to a qualified facility described in 
paragraph (2)(A)(ii) or with respect to energy stor-
age technology described in paragraph (2)(B)(ii), 
10 percentage points. 
‘‘(B) DOMESTIC CONTENT.—Rules similar to the rules 
of section 48(a)(12) shall apply. 
‘‘(b) QUALIFIED INVESTMENT WITH RESPECT TO A QUALIFIED 
FACILITY.— 
‘‘(1) IN GENERAL.—For purposes of subsection (a), the quali-
fied investment with respect to any qualified facility for any 
taxable year is the sum of— 
‘‘(A) the basis of any qualified property placed in service 
by the taxpayer during such taxable year which is part 
of a qualified facility, plus 
‘‘(B) the amount of any expenditures which are— 
‘‘(i) paid or incurred by the taxpayer for qualified 
interconnection property—
H. R. 5376—175 
‘‘(I) in connection with a qualified facility 
which has a maximum net output of not greater 
than 5 megawatts (as measured in alternating cur-
rent), and 
‘‘(II) placed in service during the taxable year 
of the taxpayer, and 
‘‘(ii) properly chargeable to capital account of the 
taxpayer. 
‘‘(2) QUALIFIED PROPERTY.—For purposes of this section, 
the term ‘qualified property’ means property— 
‘‘(A) which is— 
‘‘(i) tangible personal property, or 
‘‘(ii) other tangible property (not including a 
building or its structural components), but only if such 
property is used as an integral part of the qualified 
facility, 
‘‘(B) with respect to which depreciation (or amortization 
in lieu of depreciation) is allowable, and 
‘‘(C)(i) the construction, reconstruction, or erection of 
which is completed by the taxpayer, or 
‘‘(ii) which is acquired by the taxpayer if the original 
use of such property commences with the taxpayer. 
‘‘(3) QUALIFIED FACILITY.— 
‘‘(A) IN GENERAL.—For purposes of this section, the 
term ‘qualified facility’ means a facility— 
‘‘(i) which is used for the generation of electricity, 
‘‘(ii) which is placed in service after December 31, 
2024, and 
‘‘(iii) for which the anticipated greenhouse gas 
emissions rate (as determined under subparagraph 
(B)(ii)) is not greater than zero. 
‘‘(B) ADDITIONAL RULES.— 
‘‘(i) EXPANSION OF FACILITY; INCREMENTAL PRODUC-
TION.—Rules similar to the rules of section 45Y(b)(1)(C) 
shall apply for purposes of this paragraph. 
‘‘(ii) GREENHOUSE
GAS
EMISSIONS
RATE.—Rules 
similar to the rules of section 45Y(b)(2) shall apply 
for purposes of this paragraph. 
‘‘(C) EXCLUSION.—The term ‘qualified facility’ shall not 
include any facility for which— 
‘‘(i) a renewable electricity production credit deter-
mined under section 45, 
‘‘(ii) an advanced nuclear power facility production 
credit determined under section 45J, 
‘‘(iii) a carbon oxide sequestration credit deter-
mined under section 45Q, 
‘‘(iv) a zero-emission nuclear power production 
credit determined under section 45U, 
‘‘(v) a clean electricity production credit determined 
under section 45Y, 
‘‘(vi) an energy credit determined under section 
48, or 
‘‘(vii) a qualifying advanced coal project credit 
under section 48A, 
is allowed under section 38 for the taxable year or any 
prior taxable year.
H. R. 5376—176 
‘‘(4) QUALIFIED INTERCONNECTION PROPERTY.—For purposes 
of this paragraph, the term ‘qualified interconnection property’ 
has the meaning given such term in section 48(a)(8)(B). 
‘‘(5) COORDINATION
WITH
REHABILITATION
CREDIT.—The 
qualified investment with respect to any qualified facility for 
any taxable year shall not include that portion of the basis 
of any property which is attributable to qualified rehabilitation 
expenditures (as defined in section 47(c)(2)). 
‘‘(6) DEFINITIONS.—For purposes of this subsection, the 
terms ‘CO2e per KWh’ and ‘greenhouse gas emissions rate’ 
have the same meaning given such terms under section 45Y. 
‘‘(c) QUALIFIED INVESTMENT WITH RESPECT TO ENERGY STORAGE 
TECHNOLOGY.— 
‘‘(1) QUALIFIED INVESTMENT.—For purposes of subsection 
(a), the qualified investment with respect to energy storage 
technology for any taxable year is the basis of any energy 
storage technology placed in service by the taxpayer during 
such taxable year. 
‘‘(2) ENERGY STORAGE TECHNOLOGY.—For purposes of this 
section, the term ‘energy storage technology’ has the meaning 
given such term in section 48(c)(6) (except that subparagraph 
(D) of such section shall not apply). 
‘‘(d) SPECIAL RULES.— 
‘‘(1) 
CERTAIN
PROGRESS
EXPENDITURE
RULES
MADE 
APPLICABLE.—Rules similar to the rules of subsections (c)(4) 
and (d) of section 46 (as in effect on the day before the date 
of the enactment of the Revenue Reconciliation Act of 1990) 
shall apply for purposes of subsection (a). 
‘‘(2) SPECIAL RULE FOR PROPERTY FINANCED BY SUBSIDIZED 
ENERGY FINANCING OR PRIVATE ACTIVITY BONDS.—Rules similar 
to the rules of section 45(b)(3) shall apply. 
‘‘(3) PREVAILING
WAGE
REQUIREMENTS.—Rules similar to 
the rules of section 48(a)(10) shall apply. 
‘‘(4) APPRENTICESHIP REQUIREMENTS.—Rules similar to the 
rules of section 45(b)(8) shall apply. 
‘‘(5) DOMESTIC CONTENT REQUIREMENT FOR ELECTIVE PAY-
MENT.—In the case of a taxpayer making an election under 
section 6417 with respect to a credit under this section, rules 
similar to the rules of section 45Y(g)(12) shall apply. 
‘‘(e) CREDIT PHASE-OUT.— 
‘‘(1) IN
GENERAL.—The amount of the clean electricity 
investment credit under subsection (a) for any qualified invest-
ment with respect to any qualified facility or energy storage 
technology the construction of which begins during a calendar 
year described in paragraph (2) shall be equal to the product 
of— 
‘‘(A) the amount of the credit determined under sub-
section (a) without regard to this subsection, multiplied 
by 
‘‘(B) the phase-out percentage under paragraph (2). 
‘‘(2) PHASE-OUT
PERCENTAGE.—The phase-out percentage 
under this paragraph is equal to— 
‘‘(A) for any qualified investment with respect to any 
qualified facility or energy storage technology the construc-
tion of which begins during the first calendar year following 
the applicable year, 100 percent,
H. R. 5376—177 
‘‘(B) for any qualified investment with respect to any 
qualified facility or energy storage technology the construc-
tion of which begins during the second calendar year fol-
lowing the applicable year, 75 percent, 
‘‘(C) for any qualified investment with respect to any 
qualified facility or energy storage technology the construc-
tion of which begins during the third calendar year fol-
lowing the applicable year, 50 percent, and 
‘‘(D) for any qualified investment with respect to any 
qualified facility or energy storage technology the construc-
tion of which begins during any calendar year subsequent 
to the calendar year described in subparagraph (C), 0 per-
cent. 
‘‘(3) APPLICABLE YEAR.—For purposes of this subsection, 
the term ‘applicable year’ has the same meaning given such 
term in section 45Y(d)(3). 
‘‘(f) GREENHOUSE GAS.—In this section, the term ‘greenhouse 
gas’ has the same meaning given such term under section 45Y(e)(2). 
‘‘(g) RECAPTURE
OF CREDIT.—For purposes of section 50, if 
the Secretary determines that the greenhouse gas emissions rate 
for a qualified facility is greater than 10 grams of CO2e per KWh, 
any property for which a credit was allowed under this section 
with respect to such facility shall cease to be investment credit 
property in the taxable year in which the determination is made. 
‘‘(h) SPECIAL RULES FOR CERTAIN FACILITIES PLACED IN SERVICE 
IN CONNECTION WITH LOW-INCOME COMMUNITIES.— 
‘‘(1) IN GENERAL.—In the case of any applicable facility 
with respect to which the Secretary makes an allocation of 
environmental justice capacity limitation under paragraph (4)— 
‘‘(A) the applicable percentage otherwise determined 
under subsection (a)(2) with respect to any eligible property 
which is part of such facility shall be increased by— 
‘‘(i) in the case of a facility described in subclause 
(I) of paragraph (2)(A)(iii) and not described in sub-
clause (II) of such paragraph, 10 percentage points, 
and 
‘‘(ii) in the case of a facility described in subclause 
(II) of paragraph (2)(A)(iii), 20 percentage points, and 
‘‘(B) the increase in the credit determined under sub-
section (a) by reason of this subsection for any taxable 
year with respect to all property which is part of such 
facility shall not exceed the amount which bears the same 
ratio to the amount of such increase (determined without 
regard to this subparagraph) as— 
‘‘(i) the environmental justice capacity limitation 
allocated to such facility, bears to 
‘‘(ii) the total megawatt nameplate capacity of such 
facility, as measured in direct current. 
‘‘(2) APPLICABLE
FACILITY.—For purposes of this sub-
section— 
‘‘(A) IN GENERAL.—The term ‘applicable facility’ means 
any qualified facility— 
‘‘(i) which is not described in section 45Y(b)(2)(B), 
‘‘(ii) which has a maximum net output of less than 
5 megawatts (as measured in alternating current), and 
‘‘(iii) which—
H. R. 5376—178 
‘‘(I) is located in a low-income community (as 
defined in section 45D(e)) or on Indian land (as 
defined in section 2601(2) of the Energy Policy 
Act of 1992 (25 U.S.C. 3501(2))), or 
‘‘(II) is part of a qualified low-income residen-
tial building project or a qualified low-income eco-
nomic benefit project. 
‘‘(B) QUALIFIED
LOW-INCOME
RESIDENTIAL
BUILDING 
PROJECT.—A facility shall be treated as part of a qualified 
low-income residential building project if— 
‘‘(i) such facility is installed on a residential rental 
building which participates in a covered housing pro-
gram (as defined in section 41411(a) of the Violence 
Against Women Act of 1994 (34 U.S.C. 12491(a)(3)), 
a housing assistance program administered by the 
Department of Agriculture under title V of the Housing 
Act of 1949, a housing program administered by a 
tribally designated housing entity (as defined in section 
4(22) of the Native American Housing Assistance and 
Self-Determination Act of 1996 (25 U.S.C. 4103(22))) 
or such other affordable housing programs as the Sec-
retary may provide, and 
‘‘(ii) the financial benefits of the electricity pro-
duced by such facility are allocated equitably among 
the occupants of the dwelling units of such building. 
‘‘(C) 
QUALIFIED
LOW-INCOME
ECONOMIC
BENEFIT 
PROJECT.—A facility shall be treated as part of a qualified 
low-income economic benefit project if at least 50 percent 
of the financial benefits of the electricity produced by such 
facility are provided to households with income of— 
‘‘(i) less than 200 percent of the poverty line (as 
defined in section 36B(d)(3)(A)) applicable to a family 
of the size involved, or 
‘‘(ii) less than 80 percent of area median gross 
income (as determined under section 142(d)(2)(B)). 
‘‘(D) FINANCIAL
BENEFIT.—For purposes of subpara-
graphs (B) and (C), electricity acquired at a below-market 
rate shall not fail to be taken into account as a financial 
benefit. 
‘‘(3) ELIGIBLE PROPERTY.—For purposes of this subsection, 
the term ‘eligible property’ means a qualified investment with 
respect to any applicable facility. 
‘‘(4) ALLOCATIONS.— 
‘‘(A) IN GENERAL.—Not later than January 1, 2025, 
the Secretary shall establish a program to allocate amounts 
of environmental justice capacity limitation to applicable 
facilities. In establishing such program and to carry out 
the purposes of this subsection, the Secretary shall provide 
procedures to allow for an efficient allocation process, 
including, when determined appropriate, consideration of 
multiple projects in a single application if such projects 
will be placed in service by a single taxpayer. 
‘‘(B) LIMITATION.—The amount of environmental justice 
capacity limitation allocated by the Secretary under 
subparagraph (A) during any calendar year shall not exceed 
the annual capacity limitation with respect to such year.
H. R. 5376—179 
‘‘(C) ANNUAL CAPACITY LIMITATION.—For purposes of 
this paragraph, the term ‘annual capacity limitation’ means 
1.8 gigawatts of direct current capacity for each calendar 
year during the period beginning on January 1, 2025, and 
ending on December 31 of the applicable year (as defined 
in section 45Y(d)(3)), and zero thereafter. 
‘‘(D) CARRYOVER OF UNUSED LIMITATION.— 
‘‘(i) IN GENERAL.—If the annual capacity limitation 
for any calendar year exceeds the aggregate amount 
allocated for such year under this paragraph, such 
limitation for the succeeding calendar year shall be 
increased by the amount of such excess. No amount 
may be carried under the preceding sentence to any 
calendar year after the third calendar year following 
the applicable year (as defined in section 45Y(d)(3)). 
‘‘(ii) CARRYOVER FROM SECTION 48 FOR CALENDAR 
YEAR 2025.—If the annual capacity limitation for cal-
endar year 2024 under section 48(e)(4)(D) exceeds the 
aggregate amount allocated for such year under such 
section, such excess amount may be carried over and 
applied to the annual capacity limitation under this 
subsection for calendar year 2025. The annual capacity 
limitation for calendar year 2025 shall be increased 
by the amount of such excess. 
‘‘(E) PLACED IN SERVICE DEADLINE.— 
‘‘(i) IN GENERAL.—Paragraph (1) shall not apply 
with respect to any property which is placed in service 
after the date that is 4 years after the date of the 
allocation with respect to the facility of which such 
property is a part. 
‘‘(ii) APPLICATION OF CARRYOVER.—Any amount of 
environmental justice capacity limitation which expires 
under clause (i) during any calendar year shall be 
taken into account as an excess described in subpara-
graph (D)(i) (or as an increase in such excess) for 
such calendar year, subject to the limitation imposed 
by the last sentence of such subparagraph. 
‘‘(5) RECAPTURE.—The Secretary shall, by regulations or 
other guidance, provide for recapturing the benefit of any 
increase in the credit allowed under subsection (a) by reason 
of this subsection with respect to any property which ceases 
to be property eligible for such increase (but which does not 
cease to be investment credit property within the meaning 
of section 50(a)). The period and percentage of such recapture 
shall be determined under rules similar to the rules of section 
50(a). To the extent provided by the Secretary, such recapture 
may not apply with respect to any property if, within 12 months 
after the date the taxpayer becomes aware (or reasonably 
should have become aware) of such property ceasing to be 
property eligible for such increase, the eligibility of such prop-
erty for such increase is restored. The preceding sentence shall 
not apply more than once with respect to any facility. 
‘‘(i) GUIDANCE.—Not later than January 1, 2025, the Secretary 
shall issue guidance regarding implementation of this section.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 46, as amended by section 107(d) of the CHIPS 
Act of 2022, is amended—
H. R. 5376—180 
(A) in paragraph (5), by striking ‘‘and’’ at the end, 
(B) in paragraph (6), by striking the period at the 
end and inserting ‘‘, and’’, and 
(C) by adding at the end the following: 
‘‘(7) the clean electricity investment credit.’’. 
(2) Section 49(a)(1)(C), as amended by section 107(d) of 
the CHIPS Act of 2022, is amended— 
(A) by striking ‘‘and’’ at the end of clause (v), 
(B) by striking the period at the end of clause (vi) 
and inserting a comma, and 
(C) by adding at the end the following new clauses: 
‘‘(vii) the basis of any qualified property which 
is part of a qualified facility under section 48E, and 
‘‘(viii) the basis of any energy storage technology 
under section 48E.’’. 
(3) Section 50(a)(2)(E), as amended by section 107(d) of 
the CHIPS Act of 2022, is amended by striking ‘‘or 48D(b)(5)’’ 
and inserting ‘‘48D(b)(5), or 48E(e)’’. 
(4) Section 50(c)(3) is amended by inserting ‘‘or clean elec-
tricity investment credit’’ after ‘‘In the case of any energy 
credit’’. 
(5) The table of sections for subpart E of part IV of sub-
chapter A of chapter 1, as amended by section 107(d) of the 
CHIPS Act of 2022, is amended by inserting after the item 
relating to section 48D the following new item: 
‘‘48E. Clean electricity investment credit.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to property placed in service after December 31, 2024. 
SEC. 13703. COST RECOVERY FOR QUALIFIED FACILITIES, QUALIFIED 
PROPERTY, AND ENERGY STORAGE TECHNOLOGY. 
(a) IN GENERAL.—Section 168(e)(3)(B) is amended— 
(1) in clause (vi)(III), by striking ‘‘and’’ at the end, 
(2) in clause (vii), by striking the period at the end and 
inserting ‘‘, and’’, and 
(3) by inserting after clause (vii) the following: 
‘‘(viii) any qualified facility (as defined in section 
45Y(b)(1)(A)), any qualified property (as defined in sub-
section (b)(2) of section 48E) which is a qualified invest-
ment (as defined in subsection (b)(1) of such section), 
or any energy storage technology (as defined in sub-
section (c)(2) of such section).’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to facilities and property placed in service after 
December 31, 2024. 
SEC. 13704. CLEAN FUEL PRODUCTION CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of subchapter A of 
chapter 1, as amended by the preceding provisions of this Act, 
is amended by adding at the end the following new section: 
‘‘SEC. 45Z. CLEAN FUEL PRODUCTION CREDIT. 
‘‘(a) AMOUNT OF CREDIT.— 
‘‘(1) IN GENERAL.—For purposes of section 38, the clean 
fuel production credit for any taxable year is an amount equal 
to the product of—
H. R. 5376—181 
‘‘(A) the applicable amount per gallon (or gallon equiva-
lent) with respect to any transportation fuel which is— 
‘‘(i) produced by the taxpayer at a qualified facility, 
and 
‘‘(ii) sold by the taxpayer in a manner described 
in paragraph (4) during the taxable year, and 
‘‘(B) the emissions factor for such fuel (as determined 
under subsection (b)). 
‘‘(2) APPLICABLE AMOUNT.— 
‘‘(A) BASE AMOUNT.—In the case of any transportation 
fuel produced at a qualified facility which does not satisfy 
the requirements described in subparagraph (B), the 
applicable amount shall be 20 cents. 
‘‘(B) ALTERNATIVE
AMOUNT.—In the case of any 
transportation fuel produced at a qualified facility which 
satisfies the requirements under paragraphs (6) and (7) 
of subsection (f), the applicable amount shall be $1.00. 
‘‘(3) SPECIAL RATE FOR SUSTAINABLE AVIATION FUEL.— 
‘‘(A) IN GENERAL.—In the case of a transportation fuel 
which is sustainable aviation fuel, paragraph (2) shall be 
applied— 
‘‘(i) in the case of fuel produced at a qualified 
facility described in paragraph (2)(A), by substituting 
‘35 cents’ for ‘20 cents’, and 
‘‘(ii) in the case of fuel produced at a qualified 
facility described in paragraph (2)(B), by substituting 
‘$1.75’ for ‘$1.00’. 
‘‘(B) SUSTAINABLE AVIATION FUEL.—For purposes of this 
subparagraph (A), the term ‘sustainable aviation fuel’ 
means liquid fuel, the portion of which is not kerosene, 
which is sold for use in an aircraft and which— 
‘‘(i) meets the requirements of— 
‘‘(I) ASTM International Standard D7566, or 
‘‘(II) the Fischer Tropsch provisions of ASTM 
International Standard D1655, Annex A1, and 
‘‘(ii) is not derived from palm fatty acid distillates 
or petroleum. 
‘‘(4) SALE.—For purposes of paragraph (1), the transpor-
tation fuel is sold in a manner described in this paragraph 
if such fuel is sold by the taxpayer to an unrelated person— 
‘‘(A) for use by such person in the production of a 
fuel mixture, 
‘‘(B) for use by such person in a trade or business, 
or 
‘‘(C) who sells such fuel at retail to another person 
and places such fuel in the fuel tank of such other person. 
‘‘(5) ROUNDING.—If any amount determined under para-
graph (1) is not a multiple of 1 cent, such amount shall be 
rounded to the nearest cent. 
‘‘(b) EMISSIONS FACTORS.— 
‘‘(1) EMISSIONS FACTOR.— 
‘‘(A) CALCULATION.— 
‘‘(i) IN
GENERAL.—The emissions factor of a 
transportation fuel shall be an amount equal to the 
quotient of— 
‘‘(I) an amount equal to—
H. R. 5376—182 
‘‘(aa) 50 kilograms of CO2e per mmBTU, 
minus 
‘‘(bb) the emissions rate for such fuel, 
divided by 
‘‘(II) 50 kilograms of CO2e per mmBTU. 
‘‘(B) ESTABLISHMENT OF EMISSIONS RATE.— 
‘‘(i) IN GENERAL.—Subject to clauses (ii) and (iii), 
the Secretary shall annually publish a table which 
sets forth the emissions rate for similar types and 
categories of transportation fuels based on the amount 
of lifecycle greenhouse gas emissions (as described in 
section 211(o)(1)(H) of the Clean Air Act (42 U.S.C. 
7545(o)(1)(H)), as in effect on the date of the enactment 
of this section) for such fuels, expressed as kilograms 
of CO2e per mmBTU, which a taxpayer shall use for 
purposes of this section. 
‘‘(ii) NON-AVIATION
FUEL.—In the case of any 
transportation fuel which is not a sustainable aviation 
fuel, the lifecycle greenhouse gas emissions of such 
fuel shall be based on the most recent determinations 
under the Greenhouse gases, Regulated Emissions, and 
Energy use in Transportation model developed by 
Argonne National Laboratory, or a successor model 
(as determined by the Secretary). 
‘‘(iii) AVIATION FUEL.—In the case of any transpor-
tation fuel which is a sustainable aviation fuel, the 
lifecycle greenhouse gas emissions of such fuel shall 
be determined in accordance with— 
‘‘(I) the most recent Carbon Offsetting and 
Reduction Scheme for International Aviation which 
has been adopted by the International Civil Avia-
tion Organization with the agreement of the 
United States, or 
‘‘(II) any similar methodology which satisfies 
the criteria under section 211(o)(1)(H) of the Clean 
Air Act (42 U.S.C. 7545(o)(1)(H)), as in effect on 
the date of enactment of this section. 
‘‘(C) ROUNDING OF EMISSIONS RATE.— 
‘‘(i) IN GENERAL.—Subject to clause (ii), the Sec-
retary may round the emissions rates under subpara-
graph (B) to the nearest multiple of 5 kilograms of 
CO2e per mmBTU. 
‘‘(ii) EXCEPTION.—In the case of an emissions rate 
that is between 2.5 kilograms of CO2e per mmBTU 
and -2.5 kilograms of CO2e per mmBTU, the Secretary 
may round such rate to zero. 
‘‘(D) PROVISIONAL EMISSIONS RATE.—In the case of any 
transportation fuel for which an emissions rate has not 
been established under subparagraph (B), a taxpayer pro-
ducing such fuel may file a petition with the Secretary 
for determination of the emissions rate with respect to 
such fuel. 
‘‘(2) ROUNDING.—If any amount determined under para-
graph (1)(A) is not a multiple of 0.1, such amount shall be 
rounded to the nearest multiple of 0.1. 
‘‘(c) INFLATION ADJUSTMENT.—
H. R. 5376—183 
‘‘(1) IN GENERAL.—In the case of calendar years beginning 
after 2024, the 20 cent amount in subsection (a)(2)(A), the 
$1.00 amount in subsection (a)(2)(B), the 35 cent amount in 
subsection (a)(3)(A)(i), and the $1.75 amount in subsection 
(a)(3)(A)(ii) shall each be adjusted by multiplying such amount 
by the inflation adjustment factor for the calendar year in 
which the sale of the transportation fuel occurs. If any amount 
as increased under the preceding sentence is not a multiple 
of 1 cent, such amount shall be rounded to the nearest multiple 
of 1 cent. 
‘‘(2) INFLATION ADJUSTMENT FACTOR.—For purposes of para-
graph (1), the inflation adjustment factor shall be the inflation 
adjustment factor determined and published by the Secretary 
pursuant to section 45Y(c), determined by substituting ‘calendar 
year 2022’ for ‘calendar year 1992’ in paragraph (3) thereof. 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) mmBTU.—The term ‘mmBTU’ means 1,000,000 British 
thermal units. 
‘‘(2) CO2e.—The term ‘CO2e’ means, with respect to any 
greenhouse gas, the equivalent carbon dioxide (as determined 
based on relative global warming potential). 
‘‘(3) GREENHOUSE GAS.—The term ‘greenhouse gas’ has the 
same meaning given that term under section 211(o)(1)(G) of 
the Clean Air Act (42 U.S.C. 7545(o)(1)(G)), as in effect on 
the date of the enactment of this section. 
‘‘(4) QUALIFIED FACILITY.—The term ‘qualified facility’— 
‘‘(A) means a facility used for the production of 
transportation fuels, and 
‘‘(B) does not include any facility for which one of 
the following credits is allowed under section 38 for the 
taxable year: 
‘‘(i) The credit for production of clean hydrogen 
under section 45V. 
‘‘(ii) The credit determined under section 46 to 
the extent that such credit is attributable to the energy 
credit determined under section 48 with respect to 
any specified clean hydrogen production facility for 
which an election is made under subsection (a)(15) 
of such section. 
‘‘(iii) The credit for carbon oxide sequestration 
under section 45Q. 
‘‘(5) TRANSPORTATION FUEL.— 
‘‘(A) IN
GENERAL.—The term ‘transportation fuel’ 
means a fuel which— 
‘‘(i) is suitable for use as a fuel in a highway 
vehicle or aircraft, 
‘‘(ii) has an emissions rate which is not greater 
than 50 kilograms of CO2e per mmBTU, and 
‘‘(iii) is not derived from coprocessing an applicable 
material (or materials derived from an applicable mate-
rial) with a feedstock which is not biomass. 
‘‘(B) DEFINITIONS.—In this paragraph— 
‘‘(i) APPLICABLE MATERIAL.—The term ‘applicable 
material’ means— 
‘‘(I) 
monoglycerides, 
diglycerides, 
and 
triglycerides, 
‘‘(II) free fatty acids, and
H. R. 5376—184 
‘‘(III) fatty acid esters. 
‘‘(ii) BIOMASS.—The term ‘biomass’ has the same 
meaning given such term in section 45K(c)(3). 
‘‘(e) GUIDANCE.—Not later than January 1, 2025, the Secretary 
shall issue guidance regarding implementation of this section, 
including calculation of emissions factors for transportation fuel, 
the table described in subsection (b)(1)(B)(i), and the determination 
of clean fuel production credits under this section. 
‘‘(f) SPECIAL RULES.— 
‘‘(1) ONLY REGISTERED PRODUCTION IN THE UNITED STATES 
TAKEN INTO ACCOUNT.— 
‘‘(A) IN GENERAL.—No clean fuel production credit shall 
be determined under subsection (a) with respect to any 
transportation fuel unless— 
‘‘(i) the taxpayer— 
‘‘(I) is registered as a producer of clean fuel 
under section 4101 at the time of production, and 
‘‘(II) in the case of any transportation fuel 
which is a sustainable aviation fuel, provides— 
‘‘(aa) certification (in such form and 
manner as the Secretary shall prescribe) from 
an unrelated party demonstrating compliance 
with— 
‘‘(AA) 
any 
general 
requirements, 
supply chain traceability requirements, 
and information transmission require-
ments established under the Carbon Off-
setting and Reduction Scheme for Inter-
national Aviation described in subclause 
(I) of subsection (b)(1)(B)(iii), or 
‘‘(BB) in the case of any methodology 
described in subclause (II) of such sub-
section, 
requirements 
similar 
to 
the 
requirements described in subitem (AA), 
and 
‘‘(bb) such other information with respect 
to such fuel as the Secretary may require for 
purposes of carrying out this section, and 
‘‘(ii) such fuel is produced in the United States. 
‘‘(B) UNITED STATES.—For purposes of this paragraph, 
the term ‘United States’ includes any possession of the 
United States. 
‘‘(2) PRODUCTION ATTRIBUTABLE TO THE TAXPAYER.—In the 
case of a facility in which more than 1 person has an ownership 
interest, except to the extent provided in regulations prescribed 
by the Secretary, production from the facility shall be allocated 
among such persons in proportion to their respective ownership 
interests in the gross sales from such facility. 
‘‘(3) RELATED PERSONS.—Persons shall be treated as related 
to each other if such persons would be treated as a single 
employer under the regulations prescribed under section 52(b). 
In the case of a corporation which is a member of an affiliated 
group of corporations filing a consolidated return, such corpora-
tion shall be treated as selling fuel to an unrelated person 
if such fuel is sold to such a person by another member of 
such group.
H. R. 5376—185 
‘‘(4) PASS-THRU IN THE CASE OF ESTATES AND TRUSTS.— 
Under regulations prescribed by the Secretary, rules similar 
to the rules of subsection (d) of section 52 shall apply. 
‘‘(5) ALLOCATION OF CREDIT TO PATRONS OF AGRICULTURAL 
COOPERATIVE.—Rules similar to the rules of section 45Y(g)(6) 
shall apply. 
‘‘(6) PREVAILING WAGE REQUIREMENTS.— 
‘‘(A) IN GENERAL.—Subject to subparagraph (B), rules 
similar to the rules of section 45(b)(7) shall apply. 
‘‘(B) SPECIAL RULE FOR FACILITIES PLACED IN SERVICE 
BEFORE JANUARY 1, 2025.—For purposes of subparagraph 
(A), in the case of any qualified facility placed in service 
before January 1, 2025— 
‘‘(i) clause (i) of section 45(b)(7)(A) shall not apply, 
and 
‘‘(ii) clause (ii) of such section shall be applied 
by substituting ‘with respect to any taxable year begin-
ning after December 31, 2024, for which the credit 
is allowed under this section’ for ‘with respect to any 
taxable year, for any portion of such taxable year which 
is 
within 
the 
period 
described 
in 
subsection 
(a)(2)(A)(ii)’. 
‘‘(7) APPRENTICESHIP REQUIREMENTS.—Rules similar to the 
rules of section 45(b)(8) shall apply. 
‘‘(g) TERMINATION.—This section shall not apply to transpor-
tation fuel sold after December 31, 2027.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 25C(d)(3), as amended by the preceding provi-
sions of this Act, is amended— 
(A) in subparagraph (A), by striking ‘‘and’’ at the end, 
(B) in subparagraph (B), by striking the period at 
the end and inserting ‘‘, and’’, and 
(C) by adding at the end the following new subpara-
graph: 
‘‘(C) 
transportation 
fuel 
(as 
defined 
in 
section 
45Z(d)(5)).’’. 
(2) Section 30C(c)(1)(B), as amended by the preceding provi-
sions of this Act, is amended by adding at the end the following 
new clause: 
‘‘(iv) Any transportation fuel (as defined in section 
45Z(d)(5)).’’. 
(3) Section 38(b), as amended by the preceding provisions 
of this Act, is amended— 
(A) in paragraph (38), by striking ‘‘plus’’ at the end, 
(B) in paragraph (39), by striking the period at the 
end and inserting ‘‘, plus’’, and 
(C) by adding at the end the following new paragraph: 
‘‘(40) the clean fuel production credit determined under 
section 45Z(a).’’. 
(4) The table of sections for subpart D of part IV of sub-
chapter A of chapter 1, as amended by the preceding provisions 
of this Act, is amended by adding at the end the following 
new item: 
‘‘Sec. 45Z. Clean fuel production credit.’’.
H. R. 5376—186 
(5) Section 4101(a)(1), as amended by the preceding provi-
sions of this Act, is amended by inserting ‘‘every person pro-
ducing a fuel eligible for the clean fuel production credit (pursu-
ant to section 45Z),’’ after ‘‘section 6426(k)(3)),’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to transportation fuel produced after December 31, 
2024. 
PART 8—CREDIT MONETIZATION AND 
APPROPRIATIONS 
SEC. 13801. ELECTIVE PAYMENT FOR ENERGY PROPERTY AND ELEC-
TRICITY 
PRODUCED 
FROM 
CERTAIN 
RENEWABLE 
RESOURCES, ETC. 
(a) IN GENERAL.—Subchapter B of chapter 65 is amended by 
inserting after section 6416 the following new section: 
‘‘SEC. 6417. ELECTIVE PAYMENT OF APPLICABLE CREDITS. 
‘‘(a) IN GENERAL.—In the case of an applicable entity making 
an election (at such time and in such manner as the Secretary 
may provide) under this section with respect to any applicable 
credit determined with respect to such entity, such entity shall 
be treated as making a payment against the tax imposed by subtitle 
A (for the taxable year with respect to which such credit was 
determined) equal to the amount of such credit. 
‘‘(b) APPLICABLE CREDIT.—The term ‘applicable credit’ means 
each of the following: 
‘‘(1) So much of the credit for alternative fuel vehicle 
refueling property allowed under section 30C which, pursuant 
to subsection (d)(1) of such section, is treated as a credit listed 
in section 38(b). 
‘‘(2) So much of the renewable electricity production credit 
determined under section 45(a) as is attributable to qualified 
facilities which are originally placed in service after December 
31, 2022. 
‘‘(3) So much of the credit for carbon oxide sequestration 
determined under section 45Q(a) as is attributable to carbon 
capture equipment which is originally placed in service after 
December 31, 2022. 
‘‘(4) The zero-emission nuclear power production credit 
determined under section 45U(a). 
‘‘(5) So much of the credit for production of clean hydrogen 
determined under section 45V(a) as is attributable to qualified 
clean hydrogen production facilities which are originally placed 
in service after December 31, 2012. 
‘‘(6) In the case of a tax-exempt entity described in clause 
(i), (ii), or (iv) of section 168(h)(2)(A), the credit for qualified 
commercial vehicles determined under section 45W by reason 
of subsection (d)(3) thereof. 
‘‘(7) The credit for advanced manufacturing production 
under section 45X(a). 
‘‘(8) The clean electricity production credit determined 
under section 45Y(a). 
‘‘(9) The clean fuel production credit determined under 
section 45Z(a). 
‘‘(10) The energy credit determined under section 48.
H. R. 5376—187 
‘‘(11) The qualifying advanced energy project credit deter-
mined under section 48C. 
‘‘(12) The clean electricity investment credit determined 
under section 48E. 
‘‘(c) APPLICATION
TO PARTNERSHIPS
AND S CORPORATIONS.— 
‘‘(1) IN GENERAL.—In the case of any applicable credit deter-
mined with respect to any facility or property held directly 
by a partnership or S corporation, any election under subsection 
(a) shall be made by such partnership or S corporation. If 
such partnership or S corporation makes an election under 
such subsection (in such manner as the Secretary may provide) 
with respect to such credit— 
‘‘(A) the Secretary shall make a payment to such part-
nership or S corporation equal to the amount of such credit, 
‘‘(B) subsection (e) shall be applied with respect to 
such credit before determining any partner’s distributive 
share, or shareholder’s pro rata share, of such credit, 
‘‘(C) any amount with respect to which the election 
in subsection (a) is made shall be treated as tax exempt 
income for purposes of sections 705 and 1366, and 
‘‘(D) a partner’s distributive share of such tax exempt 
income shall be based on such partner’s distributive share 
of the otherwise applicable credit for each taxable year. 
‘‘(2) COORDINATION
WITH
APPLICATION
AT
PARTNER
OR 
SHAREHOLDER LEVEL.—In the case of any facility or property 
held directly by a partnership or S corporation, no election 
by any partner or shareholder shall be allowed under subsection 
(a) with respect to any applicable credit determined with respect 
to such facility or property. 
‘‘(3) TREATMENT OF PAYMENTS TO PARTNERSHIPS AND S COR-
PORATIONS.—For purposes of section 1324 of title 31, United 
States Code, the payments under paragraph (1)(A) shall be 
treated in the same manner as a refund due from a credit 
provision referred to in subsection (b)(2) of such section. 
‘‘(d) SPECIAL RULES.—For purposes of this section— 
‘‘(1) APPLICABLE ENTITY.— 
‘‘(A) IN GENERAL.—The term ‘applicable entity’ means— 
‘‘(i) any organization exempt from the tax imposed 
by subtitle A, 
‘‘(ii) any State or political subdivision thereof, 
‘‘(iii) the Tennessee Valley Authority, 
‘‘(iv) an Indian tribal government (as defined in 
section 30D(g)(9)), 
‘‘(v) any Alaska Native Corporation (as defined 
in section 3 of the Alaska Native Claims Settlement 
Act (43 U.S.C. 1602(m)), or 
‘‘(vi) any corporation operating on a cooperative 
basis which is engaged in furnishing electric energy 
to persons in rural areas. 
‘‘(B) ELECTION WITH RESPECT TO CREDIT FOR PRODUC-
TION OF CLEAN HYDROGEN.—If a taxpayer other than an 
entity described in subparagraph (A) makes an election 
under this subparagraph with respect to any taxable year 
in which such taxpayer has placed in service a qualified 
clean hydrogen production facility (as defined in section 
45V(c)(3)), such taxpayer shall be treated as an applicable 
entity for purposes of this section for such taxable year,
H. R. 5376—188 
but only with respect to the credit described in subsection 
(b)(5). 
‘‘(C) ELECTION WITH RESPECT TO CREDIT FOR CARBON 
OXIDE SEQUESTRATION.—If a taxpayer other than an entity 
described in subparagraph (A) makes an election under 
this subparagraph with respect to any taxable year in 
which such taxpayer has, after December 31, 2022, placed 
in service carbon capture equipment at a qualified facility 
(as defined in section 45Q(d)), such taxpayer shall be 
treated as an applicable entity for purposes of this section 
for such taxable year, but only with respect to the credit 
described in subsection (b)(3). 
‘‘(D) ELECTION WITH RESPECT TO ADVANCED MANUFAC-
TURING PRODUCTION CREDIT.— 
‘‘(i) IN
GENERAL.—If a taxpayer other than an 
entity described in subparagraph (A) makes an election 
under this subparagraph with respect to any taxable 
year in which such taxpayer has, after December 31, 
2022, produced eligible components (as defined in sec-
tion 45X(c)(1)), such taxpayer shall be treated as an 
applicable entity for purposes of this section for such 
taxable year, but only with respect to the credit 
described in subsection (b)(7). 
‘‘(ii) LIMITATION.— 
‘‘(I) IN GENERAL.—Except as provided in sub-
clause (II), if a taxpayer makes an election under 
this subparagraph with respect to any taxable 
year, such taxpayer shall be treated as having 
made such election for each of the 4 succeeding 
taxable years ending before January 1, 2033. 
‘‘(II) EXCEPTION.—A taxpayer may elect to 
revoke the application of the election made under 
this subparagraph to any taxable year described 
in subclause (I). Any such election, if made, shall 
apply to the applicable year specified in such elec-
tion and each subsequent taxable year within the 
period described in subclause (I). Any election 
under this subclause may not be subsequently 
revoked. 
‘‘(iii) PROHIBITION ON TRANSFER.—For any taxable 
year described in clause (ii)(I), no election may be 
made by the taxpayer under section 6418(a) for such 
taxable year with respect to eligible components for 
purposes of the credit described in subsection (b)(7). 
‘‘(E) OTHER RULES.— 
‘‘(i) IN GENERAL.—An election made under subpara-
graph (B), (C), or (D) shall be made at such time 
and in such manner as the Secretary may provide. 
‘‘(ii) LIMITATION.—No election may be made under 
subparagraph (B), (C), or (D) with respect to any tax-
able year beginning after December 31, 2032. 
‘‘(2) APPLICATION.—In the case of any applicable entity 
which makes the election described in subsection (a), any 
applicable credit shall be determined— 
‘‘(A) without regard to paragraphs (3) and (4)(A)(i) 
of section 50(b), and
H. R. 5376—189 
‘‘(B) by treating any property with respect to which 
such credit is determined as used in a trade or business 
of the applicable entity. 
‘‘(3) ELECTIONS.— 
‘‘(A) IN GENERAL.— 
‘‘(i) 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. 
‘‘(ii) ADDITIONAL RULES.—Any election under sub-
section (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. 
‘‘(B) RENEWABLE ELECTRICITY PRODUCTION CREDIT.— 
In the case of the credit described in subsection (b)(2), 
any election under subsection (a) shall— 
‘‘(i) apply separately with respect to each qualified 
facility, 
‘‘(ii) be made for the taxable year in which such 
qualified facility is originally placed in service, and 
‘‘(iii) shall apply to such taxable year and to any 
subsequent taxable year which is within the period 
described in subsection (a)(2)(A)(ii) of section 45 with 
respect to such qualified facility. 
‘‘(C) CREDIT FOR CARBON OXIDE SEQUESTRATION.— 
‘‘(i) IN
GENERAL.—In the case of the credit 
described in subsection (b)(3), any election under sub-
section (a) shall— 
‘‘(I) apply separately with respect to the carbon 
capture equipment originally placed in service by 
the applicable entity during a taxable year, and 
‘‘(II)(aa) in the case of a taxpayer who makes 
an election described in paragraph (1)(C), apply 
to the taxable year in which such equipment is 
placed in service and the 4 subsequent taxable 
years with respect to such equipment which end 
before January 1, 2033, and 
‘‘(bb) in any other case, apply to such taxable 
year and to any subsequent taxable year which 
is within the period described in paragraph (3)(A) 
or (4)(A) of section 45Q(a) with respect to such 
equipment. 
‘‘(ii) PROHIBITION ON TRANSFER.—For any taxable 
year described in clause (i)(II)(aa) with respect to 
carbon capture equipment, no election may be made 
by the taxpayer under section 6418(a) for such taxable 
year with respect to such equipment for purposes of 
the credit described in subsection (b)(3).
H. R. 5376—190 
‘‘(iii) REVOCATION
OF
ELECTION.—In the case of 
a taxpayer who makes an election described in para-
graph (1)(C) with respect to carbon capture equipment, 
such taxpayer may, at any time during the period 
described in clause (i)(II)(aa), revoke the application 
of such election with respect to such equipment for 
any subsequent taxable years during such period. Any 
such election, if made, shall apply to the applicable 
year specified in such election and each subsequent 
taxable year within the period described in clause 
(i)(II)(aa). Any election under this subclause may not 
be subsequently revoked. 
‘‘(D) CREDIT FOR PRODUCTION OF CLEAN HYDROGEN.— 
‘‘(i) IN
GENERAL.—In the case of the credit 
described in subsection (b)(5), any election under sub-
section (a) shall— 
‘‘(I) apply separately with respect to each 
qualified clean hydrogen production facility, 
‘‘(II) be made for the taxable year in which 
such facility is placed in service (or within the 
1-year period subsequent to the date of enactment 
of this section in the case of facilities placed in 
service before December 31, 2022), and 
‘‘(III)(aa) in the case of a taxpayer who makes 
an election described in paragraph (1)(B), apply 
to such taxable year and the 4 subsequent taxable 
years with respect to such facility which end before 
January 1, 2033, and 
‘‘(bb) in any other case, apply to such taxable 
year and all subsequent taxable years with respect 
to such facility. 
‘‘(ii) PROHIBITION ON TRANSFER.—For any taxable 
year described in clause (i)(III)(aa) with respect to a 
qualified clean hydrogen production facility, no election 
may be made by the taxpayer under section 6418(a) 
for such taxable year with respect to such facility for 
purposes of the credit described in subsection (b)(5). 
‘‘(iii) REVOCATION
OF
ELECTION.—In the case of 
a taxpayer who makes an election described in para-
graph (1)(B) with respect to a qualified clean hydrogen 
production facility, such taxpayer may, at any time 
during the period described in clause (i)(III)(aa), revoke 
the application of such election with respect to such 
facility for any subsequent taxable years during such 
period. Any such election, if made, shall apply to the 
applicable year specified in such election and each 
subsequent taxable year within the period described 
in clause (i)(II)(aa). Any election under this subclause 
may not be subsequently revoked. 
‘‘(E) CLEAN ELECTRICITY PRODUCTION CREDIT.—In the 
case of the credit described in subsection (b)(8), any election 
under subsection (a) shall— 
‘‘(i) apply separately with respect to each qualified 
facility, 
‘‘(ii) be made for the taxable year in which such 
facility is placed in service, and
H. R. 5376—191 
‘‘(iii) shall apply to such taxable year and to any 
subsequent taxable year which is within the period 
described in subsection (b)(1)(B) of section 45Y with 
respect to such facility. 
‘‘(4) TIMING.—The payment described in subsection (a) shall 
be treated as made on— 
‘‘(A) in the case of any government, or political subdivi-
sion, described in paragraph (1) and for which no return 
is required under section 6011 or 6033(a), the later of 
the date that a return would be due under section 6033(a) 
if such government or subdivision were described in that 
section or the date on which such government or subdivi-
sion submits a claim for credit or refund (at such time 
and in such manner as the Secretary shall provide), and 
‘‘(B) in any other case, the later of the due date (deter-
mined without regard to extensions) of the return of tax 
for the taxable year or the date on which such return 
is filed. 
‘‘(5) ADDITIONAL INFORMATION.—As a condition of, and prior 
to, any amount being treated as a payment which is made 
by an applicable entity under subsection (a), the Secretary 
may require such information or registration as the Secretary 
deems necessary for purposes of preventing duplication, fraud, 
improper payments, or excessive payments under this section. 
‘‘(6) EXCESSIVE PAYMENT.— 
‘‘(A) IN GENERAL.—In the case of any amount treated 
as a payment which is made by the applicable entity under 
subsection (a), or the amount of the payment made pursu-
ant to subsection (c), which the Secretary determines con-
stitutes an excessive payment, the tax imposed on such 
entity by chapter 1 (regardless of whether such entity 
would otherwise be subject to tax under such chapter) 
for the taxable year in which such determination is made 
shall be increased by an amount equal to the sum of— 
‘‘(i) the amount of such excessive payment, plus 
‘‘(ii) an amount equal to 20 percent of such exces-
sive payment. 
‘‘(B) REASONABLE CAUSE.—Subparagraph (A)(ii) shall 
not apply if the applicable entity demonstrates to the satis-
faction of the Secretary that the excessive payment resulted 
from reasonable cause. 
‘‘(C) EXCESSIVE PAYMENT DEFINED.—For purposes of 
this paragraph, the term ‘excessive payment’ means, with 
respect to a facility or property for which an election is 
made under this section for any taxable year, an amount 
equal to the excess of— 
‘‘(i) the amount treated as a payment which is 
made by the applicable entity under subsection (a), 
or the amount of the payment made pursuant to sub-
section (c), with respect to such facility or property 
for such taxable year, over 
‘‘(ii) the amount of the credit which, without 
application of this section, would be otherwise allow-
able (as determined pursuant to paragraph (2) and 
without regard to section 38(c)) under this title with 
respect to such facility or property for such taxable 
year.
H. R. 5376—192 
‘‘(e) DENIAL OF DOUBLE BENEFIT.—In the case of an applicable 
entity making an election under this section with respect to an 
applicable credit, such credit shall be reduced to zero and shall, 
for any other purposes under this title, be deemed to have been 
allowed to such entity for such taxable year. 
‘‘(f) MIRROR CODE POSSESSIONS.—In the case of any possession 
of the United States with a mirror code tax system (as defined 
in section 24(k)), this section shall not be treated as part of the 
income tax laws of the United States for purposes of determining 
the income tax law of such possession unless such possession elects 
to have this section be so treated. 
‘‘(g) BASIS REDUCTION AND RECAPTURE.—Except as otherwise 
provided in subsection (c)(2)(A), rules similar to the rules of section 
50 shall apply for purposes of this section. 
‘‘(h) REGULATIONS.—The Secretary shall issue such regulations 
or other guidance as may be necessary to carry out the purposes 
of this section, including guidance to ensure that the amount of 
the payment or deemed payment made under this section is 
commensurate with the amount of the credit that would be other-
wise allowable (determined without regard to section 38(c)).’’. 
(b) TRANSFER OF CERTAIN CREDITS.—Subchapter B of chapter 
65, as amended by subsection (a), is amended by inserting after 
section 6417 the following new section: 
‘‘SEC. 6418. TRANSFER OF CERTAIN CREDITS. 
‘‘(a) IN GENERAL.—In the case of an eligible taxpayer which 
elects to transfer all (or any portion specified in the election) of 
an eligible credit determined with respect to such taxpayer for 
any taxable year to a taxpayer (referred to in this section as 
the ‘transferee taxpayer’) which is not related (within the meaning 
of section 267(b) or 707(b)(1)) to the eligible taxpayer, the transferee 
taxpayer specified in such election (and not the eligible taxpayer) 
shall be treated as the taxpayer for purposes of this title with 
respect to such credit (or such portion thereof). 
‘‘(b) TREATMENT
OF PAYMENTS MADE
IN CONNECTION WITH 
TRANSFER.—With respect to any amount paid by a transferee tax-
payer to an eligible taxpayer as consideration for a transfer 
described in subsection (a), such consideration— 
‘‘(1) shall be required to be paid in cash, 
‘‘(2) shall not be includible in gross income of the eligible 
taxpayer, and 
‘‘(3) with respect to the transferee taxpayer, shall not be 
deductible under this title. 
‘‘(c) APPLICATION
TO PARTNERSHIPS
AND S CORPORATIONS.— 
‘‘(1) IN GENERAL.—In the case of any eligible credit deter-
mined with respect to any facility or property held directly 
by a partnership or S corporation, if such partnership or S 
corporation makes an election under subsection (a) (in such 
manner as the Secretary may provide) with respect to such 
credit— 
‘‘(A) any amount received as consideration for a 
transfer described in such subsection shall be treated as 
tax exempt income for purposes of sections 705 and 1366, 
and 
‘‘(B) a partner’s distributive share of such tax exempt 
income shall be based on such partner’s distributive share 
of the otherwise eligible credit for each taxable year.