SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Limit, Save, Grow Act 
of 2023’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
Sec. 3. References. 
DIVISION A—LIMIT FEDERAL SPENDING 
TITLE I—DISCRETIONARY SPENDING LIMITS FOR 
DISCRETIONARY CATEGORY 
Sec. 101. Discretionary spending limits. 
DIVISION B—SAVE TAXPAYER DOLLARS 
TITLE I—RESCISSION OF UNOBLIGATED FUNDS 
Sec. 201. Rescission of unobligated coronavirus funds. 
Sec. 202. Rescission of Inflation Reduction Act funds. 
TITLE II—PROHIBIT UNFAIR STUDENT LOAN GIVEAWAYS 
Sec. 211. Nullification of certain executive actions and rules relating to Federal 
student loans. 
Sec. 212. Limitation on authority of Secretary to propose or issue regulations 
and executive actions. 
TITLE III—REPEAL MARKET DISTORTING GREEN TAX CREDITS 
Sec. 221. Amendment of 1986 Code. 
Sec. 222. Modification of credit for electricity produced from certain renewable 
resources. 
Sec. 223. Modification of energy credit. 
Sec. 224. Repeal of increase in energy credit for solar and wind facilities placed 
in service in connection with low-income communities. 
Sec. 225. Zero-emission nuclear power production credit repealed. 
Sec. 226. Repeal of sustainable aviation fuel credit. 
Sec. 227. Clean hydrogen repeals. 
Sec. 228. Nonbusiness energy property credit. 
Sec. 229. Residential clean energy credit reverted to credit for residential en-
ergy efficient property. 
Sec. 230. Energy efficient commercial buildings deduction. 
Sec. 231. Modifications to new energy efficient home credit. 
Sec. 232. Clean vehicle credit. 
Sec. 233. Repeal of credit for previously-owned clean vehicles. 
Sec. 234. Repeal of credit for qualified commercial clean vehicles. 
Sec. 235. Alternative fuel refueling property credit. 
Sec. 236. Advanced energy project credit extension reversed. 
Sec. 237. Repeal of advanced manufacturing production credit.
Sec. 238. Repeal of clean electricity production credit. 
Sec. 239. Repeal of clean electricity investment credit. 
Sec. 240. Cost recovery for qualified facilities, qualified property, and energy 
storage technology removed. 
Sec. 241. Repeal of clean fuel production credit. 
Sec. 242. Repeal of sections relating to elective payment for energy property 
and electricity produced from certain renewable resources; 
transfer of credits. 
Sec. 243. Transition rule. 
TITLE IV—FAMILY AND SMALL BUSINESS TAXPAYER 
PROTECTION 
Sec. 251. Rescission of certain balances made available to the Internal Revenue 
Service. 
DIVISION C—GROW THE ECONOMY 
TITLE I—TEMPORARY ASSISTANCE TO NEEDY FAMILIES 
Sec. 301. Recalibration of the caseload reduction credit. 
Sec. 302. Eliminating excess maintenance of effort spending in determining 
caseload reduction credit. 
Sec. 303. Elimination of small checks scheme. 
Sec. 304. Reporting of work outcomes. 
Sec. 305. Effective date. 
TITLE II—SNAP EXEMPTIONS 
Sec. 311. Age-related exemption from work requirement to receive SNAP. 
Sec. 312. Rule of construction for exemption adjustment. 
Sec. 313. Supplemental nutrition assistance program under the Food and Nu-
trition Act of 2008. 
TITLE III—COMMUNITY ENGAGEMENT REQUIREMENT FOR 
APPLICABLE INDIVIDUALS 
Sec. 321. Community engagement requirement for applicable individuals. 
TITLE IV—REGULATIONS FROM THE EXECUTIVE IN NEED OF 
SCRUTINY 
Sec. 331. Short title. 
Sec. 332. Purpose. 
Sec. 333. Congressional review of agency rulemaking. 
Sec. 334. Budgetary effects of rules subject to section 802 of title 5, United 
States Code. 
Sec. 335. Government Accountability Office study of rules. 
DIVISION D—H.R. 1, THE LOWER ENERGY COSTS ACT 
TITLE I—INCREASING AMERICAN ENERGY PRODUCTION, EX-
PORTS, INFRASTRUCTURE, AND CRITICAL MINERALS PROC-
ESSING 
Sec. 10001. Securing America’s critical minerals supply. 
Sec. 10002. Protecting American energy production.
Sec. 10003. Researching Efficient Federal Improvements for Necessary Energy 
Refining. 
Sec. 10004. Promoting cross-border energy infrastructure. 
Sec. 10005. Sense of Congress expressing disapproval of the revocation of the 
Presidential permit for the Keystone XL pipeline. 
Sec. 10006. Sense of Congress opposing restrictions on the export of crude oil 
or other petroleum products. 
Sec. 10007. Unlocking our domestic LNG potential. 
Sec. 10008. Sense of Congress expressing disapproval of the denial of Jordan 
Cove permits. 
Sec. 10009. Promoting interagency coordination for review of natural gas pipe-
lines. 
Sec. 10010. Interim hazardous waste permits for critical energy resource facili-
ties. 
Sec. 10011. Flexible air permits for critical energy resource facilities. 
Sec. 10012. National security or energy security waivers to produce critical en-
ergy resources. 
Sec. 10013. Natural gas tax repeal. 
Sec. 10014. Repeal of greenhouse gas reduction fund. 
Sec. 10015. Ending future delays in chemical substance review for critical en-
ergy resources. 
Sec. 10016. Keeping America’s refineries operating. 
Sec. 10017. Homeowner energy freedom. 
Sec. 10018. Study. 
Sec. 10019. State primary enforcement responsibility. 
Sec. 10020. Use of index-based pricing in acquisition of petroleum products for 
the SPR. 
Sec. 10021. Prohibition on certain exports. 
Sec. 10022. Sense of Congress expressing disapproval of the proposed tax hikes 
on the oil and natural gas industry in the President’s fiscal 
year 2024 budget request. 
Sec. 10023. Domestic Energy Independence report. 
Sec. 10024. GAO study. 
Sec. 10025. Gas kitchen ranges and ovens. 
TITLE II—TRANSPARENCY, ACCOUNTABILITY, PERMITTING, AND 
PRODUCTION OF AMERICAN RESOURCES 
Sec. 20001. Short title. 
Subtitle A—Onshore and Offshore Leasing and Oversight 
Sec. 20101. Onshore oil and gas leasing. 
Sec. 20102. Lease reinstatement. 
Sec. 20103. Protested lease sales. 
Sec. 20104. Suspension of operations. 
Sec. 20105. Administrative protest process reform. 
Sec. 20106. Leasing and permitting transparency. 
Sec. 20107. Offshore oil and gas leasing. 
Sec. 20108. Five-year plan for offshore oil and gas leasing. 
Sec. 20109. Geothermal leasing. 
Sec. 20110. Leasing for certain qualified coal applications. 
Sec. 20111. Future coal leasing. 
Sec. 20112. Staff planning report. 
Sec. 20113. Prohibition on Chinese communist party ownership interest. 
Sec. 20114. Effect on other law.
Sec. 20115. Requirement for GAO report on wind energy impacts. 
Sec. 20116. Sense of Congress on wind energy development supply chain. 
Sec. 20117. Sense of Congress on oil and gas royalty rates. 
Sec. 20118. Offshore wind environmental review process study. 
Sec. 20119. GAO report on wind energy impacts. 
Subtitle B—Permitting Streamlining 
Sec. 20201. Definitions. 
Sec. 20202. BUILDER Act. 
Sec. 20203. Codification of National Environmental Policy Act regulations. 
Sec. 20204. Non-major Federal actions. 
Sec. 20205. No net loss determination for existing rights-of-way. 
Sec. 20206. Determination of National Environmental Policy Act adequacy. 
Sec. 20207. Determination regarding rights-of-way. 
Sec. 20208. Terms of rights-of-way. 
Sec. 20209. Funding to process permits and develop information technology. 
Sec. 20210. Offshore geological and geophysical survey licensing. 
Sec. 20211. Deferral of applications for permits to drill. 
Sec. 20212. Processing and terms of applications for permits to drill. 
Sec. 20213. Amendments to the Energy Policy Act of 2005. 
Sec. 20214. Access to Federal energy resources from non-Federal surface es-
tate. 
Sec. 20215. Scope of environmental reviews for oil and gas leases. 
Sec. 20216. Expediting approval of gathering lines. 
Sec. 20217. Lease sale litigation. 
Sec. 20218. Limitation on claims. 
Sec. 20219. Government Accountability Office report on permits to drill. 
Sec. 20220. E–NEPA. 
Sec. 20221. Limitations on claims. 
Sec. 20222. One Federal decision for pipelines. 
Sec. 20223. Exemption of certain wildfire mitigation activities from certain en-
vironmental requirements. 
Sec. 20224. Vegetation management, facility inspection, and operation and 
maintenance relating to electric transmission and distribution 
facility rights of way. 
Sec. 20225. Categorical exclusion for electric utility lines rights-of-way. 
Sec. 20226. Staffing plans. 
Subtitle C—Permitting for Mining Needs 
Sec. 20301. Definitions. 
Sec. 20302. Minerals supply chain and reliability. 
Sec. 20303. Federal register process improvement. 
Sec. 20304. Designation of mining as a covered sector for Federal permitting 
improvement purposes. 
Sec. 20305. Treatment of actions under presidential determination 2022–11 for 
Federal permitting improvement purposes. 
Sec. 20306. Notice for mineral exploration activities with limited surface dis-
turbance. 
Sec. 20307. Use of mining claims for ancillary activities. 
Sec. 20308. Ensuring consideration of uranium as a critical mineral. 
Sec. 20309. Barring foreign bad actors from operating on Federal lands. 
Sec. 20310. Permit process for projects relating to extraction, recovery, or 
processing of critical materials. 
Sec. 20311. National strategy to re-shore mineral supply chains.
Subtitle D—Federal Land Use Planning 
Sec. 20401. Federal land use planning and withdrawals. 
Sec. 20402. Prohibitions on delay of mineral development of certain Federal 
land. 
Sec. 20403. Definitions. 
Subtitle E—Ensuring Competitiveness on Federal Lands 
Sec. 20501. Incentivizing domestic production. 
Subtitle F—Energy Revenue Sharing 
Sec. 20601. Gulf of Mexico Outer Continental Shelf revenue. 
Sec. 20602. Parity in offshore wind revenue sharing. 
Sec. 20603. Elimination of administrative fee under the Mineral Leasing Act. 
Sec. 20604. Sunset. 
TITLE III—WATER QUALITY CERTIFICATION AND ENERGY 
PROJECT IMPROVEMENT 
Sec. 30001. Short title. 
Sec. 30002. Certification. 
Sec. 30003. Federal general permits. 
DIVISION E—INCREASE IN DEBT LIMIT 
Sec. 40001. Limited suspension of debt ceiling. 
SEC. 3. REFERENCES. 
Except as expressly provided otherwise, any reference 
to ‘‘this Act’’ contained in any division of this Act shall 
be treated as referring only to the provisions of that divi-
sion.
DIVISION A—LIMIT FEDERAL 
SPENDING 
TITLE 
I—DISCRETIONARY 
SPENDING LIMITS FOR DIS-
CRETIONARY CATEGORY 
SEC. 101. DISCRETIONARY SPENDING LIMITS. 
(a) IN GENERAL.—Section 251(c) of the Balanced 
Budget and Emergency Deficit Control Act of 1985 (2 
U.S.C. 901(c)) is amended— 
(1) in paragraph (7)(B), by striking ‘‘and’’ at 
the end; and 
(2) by inserting after paragraph (8) the fol-
lowing: 
‘‘(9) for fiscal year 2024, for the discretionary 
category, $1,470,979,000,000 in new budget author-
ity; 
‘‘(10) for fiscal year 2025, for the discretionary 
category, $1,485,689,000,000 in new budget author-
ity; 
‘‘(11) for fiscal year 2026, for the discretionary 
category, $1,500,546,000,000 in new budget author-
ity; 
‘‘(12) for fiscal year 2027, for the discretionary 
category, $1,515,551,000,000 in new budget author-
ity;
‘‘(13) for fiscal year 2028, for the discretionary 
category, $1,530,707,000,000 in new budget author-
ity; 
‘‘(14) for fiscal year 2029, for the discretionary 
category, $1,546,014,000,000 in new budget author-
ity; 
‘‘(15) for fiscal year 2030, for the discretionary 
category, $1,561,474,000,000 in new budget author-
ity; 
‘‘(16) for fiscal year 2031, for the discretionary 
category, $1,577,089,000,000 in new budget author-
ity; 
‘‘(17) for fiscal year 2032, for the discretionary 
category, $1,592,859,000,000 in new budget author-
ity; and 
‘‘(18) for fiscal year 2033, for the discretionary 
category, $1,608,788,000,000 in new budget author-
ity;’’. 
(b) 
CONFORMING
AMENDMENTS
TO
ADJUST-
MENTS.— 
(1) CONTINUING
DISABILITY
REVIEWS
AND 
REDERMINATIONS.—Section 251(b)(2)(B)(i) of the 
Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended—
(A) in subclause (IX), by striking ‘‘and’’ at 
the end; 
(B) in subclause (X), by striking the pe-
riod and inserting a semicolon; and 
(C) by inserting after subclause (X) the 
following: 
‘‘(XI) 
for 
fiscal 
year 
2024, 
$1,578,000,000 in additional new budget 
authority; 
‘‘(XII) 
for 
fiscal 
year 
2025, 
$1,630,000,000 in additional new budget 
authority; 
‘‘(XIII) 
for 
fiscal 
year 
2026, 
$1,682,000,000 in additional new budget 
authority; 
‘‘(XIV) 
for 
fiscal 
year 
2027, 
$1,734,000,000 in additional new budget 
authority; 
‘‘(XV) 
for 
fiscal 
year 
2028, 
$1,788,000,000 in additional new budget 
authority; 
‘‘(XVI) 
for 
fiscal 
year 
2029, 
$1,842,000,000 in additional new budget 
authority;
‘‘(XVII) 
for 
fiscal 
year 
2030, 
$1,898,000,000 in additional new budget 
authority; 
‘‘(XVIII) 
for 
fiscal 
year 
2031, 
$1,955,000,000 in additional new budget 
authority; 
‘‘(XIX) 
for 
fiscal 
year 
2032, 
$2,014,000,000 in additional new budget 
authority; and 
‘‘(XX) 
for 
fiscal 
year 
2033, 
$2,076,000,000 in additional new budget 
authority.’’. 
(2) HEALTH
CARE
FRAUD
AND
ABUSE
CON-
TROL.—Section 251(b)(2)(C)(i) of such Act is 
amended— 
(A) in subclause (IX), by striking ‘‘and’’ at 
the end; 
(B) in subclause (X), by striking the pe-
riod and inserting a semicolon; and 
(C) by inserting after subclause (X) the 
following: 
‘‘(XI) 
for 
fiscal 
year 
2024, 
$604,000,000 in additional new budget au-
thority;
‘‘(XII) 
for 
fiscal 
year 
2025, 
$630,000,000 in additional new budget au-
thority; 
‘‘(XIII) 
for 
fiscal 
year 
2026, 
$658,000,000 in additional new budget au-
thority; 
‘‘(XIV) 
for 
fiscal 
year 
2027, 
$686,000,000 in additional new budget au-
thority; 
‘‘(XV) 
for 
fiscal 
year 
2028, 
$714,000,000 in additional new budget au-
thority; 
‘‘(XVI) 
for 
fiscal 
year 
2029, 
$743,000,000 in additional new budget au-
thority; 
‘‘(XVII) 
for 
fiscal 
year 
2030, 
$771,000,000 in additional new budget au-
thority; 
‘‘(XVIII) 
for 
fiscal 
year 
2031, 
$798,000,000 in additional new budget au-
thority; 
‘‘(XIX) 
for 
fiscal 
year 
2032, 
$826,000,000 in additional new budget au-
thority; and
‘‘(XX) 
for 
fiscal 
year 
2033, 
$853,000,000 in additional new budget au-
thority.’’. 
(3) 
DISASTER
FUNDING.—Section 
251(b)(2)(D)(i) of such Act is amended by inserting 
after ‘‘2021’’ the following: ‘‘and fiscal years 2024 
through 2033’’. 
(4) REEMPLOYMENT
SERVICES
AND
ELIGI-
BILITY
ASSESSMENTS.—Section 251(b)(2)(E)(i) of 
such Act is amended— 
(A) in subclause (III), by striking ‘‘and’’ at 
the end; 
(B) in subclause (IV), by striking the pe-
riod and inserting a semicolon; and 
(C) by inserting after subclause (IV) the 
following: 
‘‘(V) 
for 
fiscal 
year 
2024, 
$265,000,000 in additional new budg-
et authority; 
‘‘(VI) 
for 
fiscal 
year 
2025, 
$271,000,000 in additional new budg-
et authority; 
‘‘(VII) for fiscal year 2026, 
$276,000,000 in additional new budg-
et authority;
‘‘(VIII) for fiscal year 2027, 
$282,000,000 in additional new budg-
et authority; 
‘‘(IX) 
for 
fiscal 
year 
2028, 
$288,000,000 in additional new budg-
et authority; 
‘‘(X) 
for 
fiscal 
year 
2029, 
$293,000,000 in additional new budg-
et authority; 
‘‘(XI) 
for 
fiscal 
year 
2030, 
$299,000,000 in additional new budg-
et authority; 
‘‘(XII) for fiscal year 2031, 
$305,000,000 in additional new budg-
et authority; 
‘‘(XIII) for fiscal year 2032, 
$311,000,000 in additional new budg-
et authority; and 
‘‘(XIV) for fiscal year 2033, 
$317,000,000 in additional new budg-
et authority.’’. 
(5) 
WILDFIRE
SUPPRESSION.—Section 
251(b)(2)(F)(i) of such Act is amended— 
(A) by striking ‘‘through 2027’’ and insert-
ing ‘‘through 2033’’;
(B) in subclause (VII), by striking ‘‘and’’ 
at the end; 
(C) in subclause (VIII), by striking the pe-
riod and inserting a semicolon; and 
(D) by inserting after subclause (VIII) the 
following: 
‘‘(IX) 
for 
fiscal 
year 
2028, 
$2,957,000,000 in additional new 
budget authority; 
‘‘(X) 
for 
fiscal 
year 
2029, 
$3,036,000,000 in additional new 
budget authority; 
‘‘(XI) 
for 
fiscal 
year 
2030, 
$3,118,000,000 in additional new 
budget authority; 
‘‘(XII) for fiscal year 2031, 
$3,202,000,000 in additional new 
budget authority; 
‘‘(XIII) for fiscal year 2032, 
$3,287,000,000 in additional new 
budget authority; and 
‘‘(XIV) for fiscal year 2033, 
$3,376,000,000 in additional new 
budget authority.’’.
(c) CONFORMING AMENDMENTS RELATING TO SE-
QUESTRATION REPORTS.—Section 254 of the Balanced 
Budget and Emergency Deficit Control Act of 1985 (2 
U.S.C. 904) is amended— 
(1) in subsection (c)(2), by striking ‘‘2021’’ and 
inserting ‘‘2033’’; and 
(2) in subsection (f)(2)(A), by striking ‘‘2021’’ 
and inserting ‘‘2033’’. 
DIVISION B—SAVE TAXPAYER 
DOLLARS 
TITLE I—RESCISSION OF 
UNOBLIGATED FUNDS 
SEC. 201. RESCISSION OF UNOBLIGATED CORONAVIRUS 
FUNDS. 
The unobligated balances of amounts appropriated or 
otherwise made available by the American Rescue Plan 
Act of 2021 (Public Law 117–2), and by each of Public 
Laws 116–123, 116–127, 116–136, and 116–139 and di-
visions M and N of Public Law 116–260, are hereby per-
manently rescinded. 
SEC. 202. RESCISSION OF INFLATION REDUCTION ACT 
FUNDS. 
The unobligated balances of amounts appropriated or 
otherwise made available by each of the following provi-
sions of Public Law 117–169 (commonly referred to as
the ‘‘Inflation Reduction Act’’) are hereby permanently re-
scinded: 
(1) Section 50131. 
(2) Section 50144. 
(3) Section 50224. 
(4) Section 60114. 
(5) Section 60501. 
TITLE II—PROHIBIT UNFAIR 
STUDENT LOAN GIVEAWAYS 
SEC. 211. NULLIFICATION OF CERTAIN EXECUTIVE AC-
TIONS AND RULES RELATING TO FEDERAL 
STUDENT LOANS. 
(a) IN GENERAL.—The following shall have no force 
or effect: 
(1) The waivers and modifications of statutory 
and regulatory provisions relating to an extension of 
the suspension of payments on certain loans and 
waivers of interest on such loans under section 3513 
of the CARES Act (20 U.S.C. 1001 note)— 
(A) described by the Department of Edu-
cation in the Federal Register on October 12, 
2022 (87 Fed. Reg. 61513 et seq.); and 
(B) issued on or after the date of enact-
ment of this Act.
(2) The modifications of statutory and regu-
latory provisions relating to debt discharge described 
by the Department of Education in the Federal Reg-
ister on October 12, 2022 (87 Fed. Reg. 61514). 
(3) A final rule that is substantially similar to 
the proposed rule on ‘‘Improving Income-Driven Re-
payment for the William D. Ford Federal Direct 
Loan Program’’ published by the Department of 
Education in the Federal Register on January 11, 
2023 (88 Fed. Reg. 1894 et seq.). 
(b) PROHIBITION.—The Secretary of Education may 
not implement any executive action or rule specified in 
paragraph (1), (2), or (3) of subsection (a) (or a substan-
tially similar executive action or rule), except as expressly 
authorized by an Act of Congress. 
SEC. 212. LIMITATION ON AUTHORITY OF SECRETARY TO 
PROPOSE OR ISSUE REGULATIONS AND EX-
ECUTIVE ACTIONS. 
Part G of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1088 et seq.) is amended by inserting 
after section 492 the following:
‘‘(2) would result in an increase in a subsidy 
cost resulting from a loan modification. 
‘‘(c) RELATIONSHIP TO OTHER REQUIREMENTS.— 
The analyses required under subsections (a) and (b) shall 
be in addition to any other cost analysis required under 
law for a regulation implementing this title, including any 
cost analysis that may be required pursuant to Executive 
Order 12866 (58 Fed. Reg. 51735; relating to regulatory 
planning and review), Executive Order 13563 (76 Fed. 
Reg. 3821; relating to improving regulation and regu-
latory review), or any related or successor orders. 
‘‘(d) DEFINITION.—In this section, the term ‘eco-
nomically significant’, when used with respect to a draft, 
proposed, or final regulation or executive action, means 
that the regulation or executive action is likely, as deter-
mined by the Secretary— 
‘‘(1) to have an annual effect on the economy 
of $100,000,000 or more; or 
‘‘(2) adversely to affect in a material way the 
economy, a sector of the economy, productivity, com-
petition, jobs, the environment, public health or safe-
ty, or State, local, or tribal governments or commu-
nities.’’.
TITLE III—REPEAL MARKET DIS-
TORTING GREEN TAX CRED-
ITS 
SEC. 221. AMENDMENT OF 1986 CODE. 
Except as otherwise expressly provided, whenever in 
this title an amendment or repeal is expressed in terms 
of an amendment to, or repeal of, a section or other provi-
sion, the reference shall be considered to be made to a 
section or other provision of the Internal Revenue Code 
of 1986. 
SEC. 222. MODIFICATION OF CREDIT FOR ELECTRICITY 
PRODUCED FROM CERTAIN RENEWABLE RE-
SOURCES. 
(a) IN GENERAL.—The following provisions of sec-
tion 45(d) are each amended by striking ‘‘January 1, 
2025’’ each place it appears and inserting ‘‘January 1, 
2022’’: 
(1) Paragraph (2)(A). 
(2) Paragraph (3)(A). 
(3) Paragraph (6). 
(4) Paragraph (7). 
(5) Paragraph (9). 
(6) Paragraph (11)(B). 
(b) BASE CREDIT AMOUNT.—Section 45 is amend-
ed—
(1) in subsection (a)(1), by striking ‘‘0.3 cents’’ 
and inserting ‘‘1.5 cents’’, and 
(2) in subsection (b)(2), by striking ‘‘0.3 cent’’ 
each place it appears and inserting ‘‘1.5 cent’’. 
(c) APPLICATION TO GEOTHERMAL AND SOLAR.— 
Section 45(d)(4) is amended by striking ‘‘and the con-
struction of which begins before January 1, 2025’’ and 
all that follows and inserting ‘‘and which— 
‘‘(A) in the case of a facility using solar 
energy, is placed in service before January 1, 
2006, or 
‘‘(B) in the case of a facility using geo-
thermal energy, the construction of which be-
gins before January 1, 2022. 
Such term shall not include any property described 
in section 48(a)(3) the basis of which is taken into 
account by the taxpayer for purposes of determining 
the energy credit under section 48.’’. 
(d) ELECTION TO TREAT QUALIFIED FACILITIES AS 
ENERGY PROPERTY.—Section 48(a)(5)(C)(ii) is amended 
by striking ‘‘January 1, 2025’’ and inserting ‘‘January 1, 
2022’’. 
(e) WIND FACILITIES.—
(1) IN GENERAL.—Section 45(d)(1) is amended 
by striking ‘‘January 1, 2025’’ and inserting ‘‘Janu-
ary 1, 2022’’. 
(2) APPLICATION
OF
PHASEOUT
PERCENT-
AGE.— 
(A) RENEWABLE
ELECTRICITY
PRODUC-
TION CREDIT.—Section 45(b)(5) is amended by 
striking ‘‘which is placed in service before Jan-
uary 1, 2022’’. 
(B) 
ENERGY
CREDIT.—Section 
48(a)(5)(E) is amended by striking ‘‘placed in 
service before January 1, 2022, and’’. 
(3) QUALIFIED
OFFSHORE
WIND
FACILITIES 
UNDER ENERGY CREDIT.—Section 48(a)(5)(F)(i) is 
amended by striking ‘‘offshore wind facility, sub-
paragraph (E) shall not apply.’’ and inserting ‘‘off-
shore wind facility— 
‘‘(I) subparagraph (C)(ii) shall be 
applied by substituting ‘January 1, 
2026’ for ‘January 1, 2022’, 
‘‘(II) subparagraph (E) shall not 
apply, and 
‘‘(III) for purposes of this para-
graph, section 45(d)(1) shall be ap-
plied by substituting ‘January 1, 
2026’ for ‘January 1, 2022’.’’. 
(f) WAGE AND APPRENTICESHIP REQUIREMENTS.— 
Section 45(b) is amended by striking paragraphs (6), (7), 
and (8). 
(g) DOMESTIC CONTENT, PHASEOUT, AND ENERGY 
COMMUNITIES.—Section 45(b) is amended by striking 
paragraphs (9), (10), (11), and (12). 
(h) CREDIT REDUCED FOR GRANTS, TAX-EXEMPT 
BONDS, SUBSIDIZED ENERGY FINANCING, AND OTHER 
CREDITS.—Section 45(b)(3) is amended to read as fol-
lows: 
‘‘(3) CREDIT REDUCED FOR GRANTS, TAX-EX-
EMPT BONDS, SUBSIDIZED ENERGY FINANCING, AND 
OTHER CREDITS.—The amount of the credit deter-
mined under subsection (a) with respect to any 
project for any taxable year (determined after the 
application of paragraphs (1) and (2)) shall be re-
duced by the amount which is the product of the 
amount so determined for such year and the lesser 
of 1⁄2 or a fraction— 
‘‘(A) the numerator of which is the sum, 
for the taxable year and all prior taxable years, 
of—
‘‘(i) grants provided by the United 
States, a State, or a political subdivision of 
a State for use in connection with the 
project, 
‘‘(ii) proceeds of an issue of State or 
local government obligations used to pro-
vide financing for the project the interest 
on which is exempt from tax under section 
103, 
‘‘(iii) the aggregate amount of sub-
sidized energy financing provided (directly 
or indirectly) under a Federal, State, or 
local program provided in connection with 
the project, and 
‘‘(iv) the amount of any other credit 
allowable with respect to any property 
which is part of the project, and 
‘‘(B) the denominator of which is the ag-
gregate amount of additions to the capital ac-
count for the project for the taxable year and 
all prior taxable years. 
The amounts under the preceding sentence for any 
taxable year shall be determined as of the close of 
the taxable year. This paragraph shall not apply
with respect to any facility described in subsection 
(d)(2)(A)(ii).’’. 
(i) ROUNDING ADJUSTMENT.— 
(1) IN GENERAL.—Section 45(b)(2) is amended 
to read as follows: 
‘‘(2) CREDIT
AND
PHASEOUT
ADJUSTMENT 
BASED
ON
INFLATION.—The 1.5 cent amount in 
subsection (a), the 8 cent amount in paragraph (1), 
the $4.375 amount in subsection (e)(8)(A), the $2 
amount in subsection (e)(8)(D)(ii)(I), and in sub-
section (e)(8)(B)(i) the reference price of fuel used 
as a feedstock (within the meaning of subsection 
(c)(7)(A)) in 2002 shall each be adjusted by multi-
plying such amount by the inflation adjustment fac-
tor for the calendar year in which the sale occurs. 
If any amount as increased under the preceding sen-
tence is not a multiple of 0.1 cent, such amount 
shall be rounded to the nearest multiple of 0.1 
cent.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
45(b)(4)(A) is amended by striking ‘‘last two sen-
tences’’ and inserting ‘‘last sentence’’. 
(j) HYDROPOWER.— 
(1) CREDIT RATE REDUCTION FOR QUALIFIED 
HYDROELECTRIC
PRODUCTION
AND
MARINE
AND
HYDROKINETIC
RENEWABLE
ENERGY.—Section 
45(b)(4)(A) is amended by striking ‘‘or (7)’’ and in-
serting ‘‘(7), (9), or (11)’’. 
(2) MARINE AND HYDROKINETIC RENEWABLE 
ENERGY.—Section 45 is amended— 
(A) in subsection (c)(10)(A)— 
(i) in clause (iii), by adding ‘‘or’’ at 
the end, 
(ii) in clause (iv), by striking ‘‘, or’’ 
and inserting a period, and 
(iii) by striking clause (v), and 
(B) in subsection (d)(11)(A), by striking 
‘‘25’’ and inserting ‘‘150’’. 
(k) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), the amendments made by this 
section shall apply to facilities placed in service after 
December 31, 2021. 
(2) CREDIT
REDUCED
FOR
GRANTS, TAX-EX-
EMPT BONDS, SUBSIDIZED ENERGY FINANCING, AND 
OTHER
CREDITS.—The amendment made by sub-
section (h) shall apply to facilities the construction 
of which begins after August 16, 2022. 
(3) DOMESTIC CONTENT, PHASEOUT, ENERGY 
COMMUNITIES.—The amendments made by sub-
sections (g) and (j) shall apply to facilities placed in 
service after December 31, 2022. 
SEC. 223. MODIFICATION OF ENERGY CREDIT. 
(a) IN GENERAL.—The following provisions of sec-
tion 48 are each amended by striking ‘‘January 1, 2025’ ’’ 
each place it appears and inserting ‘‘January 1, 2024’’: 
(1) Subsection (a)(2)(A)(i)(II). 
(2) Subsection (a)(3)(A)(ii). 
(3) Subsection (c)(1)(E). 
(4) Subsection (c)(2)(D). 
(5) Subsection (c)(3)(A)(iv). 
(6) Subsection (c)(4)(C). 
(7) Subsection (c)(5)(D). 
(b) 
CERTAIN
ENERGY
PROPERTY.—Section 
48(a)(3)(A)(vii) is amended by striking ‘‘January 1, 
2035’’ and inserting ‘‘January 1, 2024’’. 
(c) PHASEOUT OF CREDIT.—Section 48(a) is amend-
ed by striking paragraphs (6) and (7) and inserting the 
following new paragraphs: 
‘‘(6) PHASEOUT
FOR
SOLAR
ENERGY
PROP-
ERTY.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), in the case of any energy property 
described in paragraph (3)(A)(i) the construc-
tion of which begins before January 1, 2024,
the energy percentage determined under para-
graph (2) shall be equal to— 
‘‘(i) in the case of any property the 
construction of which begins after Decem-
ber 31, 2019, and before January 1, 2023, 
26 percent, and 
‘‘(ii) in the case of any property the 
construction of which begins after Decem-
ber 31, 2022, and before January 1, 2024, 
22 percent. 
‘‘(B) PLACED IN SERVICE DEADLINE.—In 
the case of any energy property described in 
paragraph (3)(A)(i) the construction of which 
begins before January 1, 2024, and which is 
not placed in service before January 1, 2026, 
the energy percentage determined under para-
graph (2) shall be equal to 10 percent. 
‘‘(7) PHASEOUT FOR CERTAIN OTHER ENERGY 
PROPERTY.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (B), in the case of any qualified fuel cell 
property, qualified small wind property, waste 
energy recovery property, or energy property 
described in paragraph (3)(A)(ii), the energy
percentage determined under paragraph (2) 
shall be equal to— 
‘‘(i) in the case of any property the 
construction of which begins after Decem-
ber 31, 2019, and before January 1, 2023, 
26 percent, and 
‘‘(ii) in the case of any property the 
construction of which begins after Decem-
ber 31, 2022, and before January 1, 2024, 
22 percent. 
‘‘(B) PLACED IN SERVICE DEADLINE.—In 
the case of any energy property described in 
subparagraph (A) which is not placed in service 
before January 1, 2026, the energy percentage 
determined under paragraph (2) shall be equal 
to 0 percent.’’. 
(d) BASE ENERGY PERCENTAGE AMOUNT.—Section 
48(a) is amended— 
(1) in paragraph (2)(A)— 
(A) in clause (i), by striking ‘‘6 percent’’ 
and inserting ‘‘30 percent’’, and 
(B) in clause (ii), by striking ‘‘2 percent’’ 
and inserting ‘‘10 percent’’, and 
(2) in paragraph (5)(A)(ii), by striking ‘‘6 per-
cent’’ and inserting ‘‘30 percent’’.
(e) 
CREDIT
FOR
GEOTHERMAL.—Section 
48(a)(2)(A)(i)(II) is amended by striking ‘‘clause (i) or 
(iii) of paragraph (3)(A)’’ and inserting ‘‘paragraph 
(3)(A)(i)’’. 
(f) ENERGY STORAGE TECHNOLOGIES, QUALIFIED 
BIOGAS
PROPERTY; MICROGRID
CONTROLLERS
RE-
MOVED.— 
(1) IN
GENERAL.—Section 48(a)(3)(A) is 
amended by inserting ‘‘or’’ at the end of clause (vii) 
and by striking clauses (ix), (x), and (xi). 
(2) CONFORMING CHANGES.— 
(A) Section 48(a)(2)(A)(i) is amended by 
inserting ‘‘and’’ at the end of subclauses (IV) 
and (V) and by striking subclauses (VI), (VII), 
(VIII), and (IX). 
(B) Section 48(c) is amended by striking 
paragraphs (6), (7), and (8). 
(C) Section 45(e) is amended by striking 
paragraph (12). 
(D) Section 50(d)(2) is amended by strik-
ing ‘‘At the election of a taxpayer’’ and all that 
follows through ‘‘equal to or less than 500 kilo-
watt hours.’’ 
(g) FUEL
CELLS
USING
ELECTROMECHANICAL 
PROCESSES.—
(1) IN GENERAL.—Section 48(c)(1) is amend-
ed— 
(A) in subparagraph (A)(i)— 
(i) by striking ‘‘or electromechanical’’, 
and 
(ii) by striking ‘‘(1 kilowatt in the 
case of a fuel cell power plant with a linear 
generator assembly)’’, and 
(B) in subparagraph (C)— 
(i) by striking ‘‘, or linear generator 
assembly’’, and 
(ii) 
by 
striking 
‘‘or 
electromechanical’’. 
(2) LINEAR
GENERATOR
ASSEMBLY
LIMITA-
TION.—Section 48(c)(1) is amended by striking sub-
paragraph (D) and by redesignating subparagraph 
(E) as subparagraph (D). 
(h) DYNAMIC
GLASS.—Section 48(a)(3)(A)(ii) is 
amended by striking ‘‘or electrochromic glass which uses 
electricity to change its light transmittance properties in 
order to heat or cool a structure,’’. 
(i) COORDINATION RULE REMOVED.—Paragraph (3) 
of section 50(c) is amended— 
(1) by inserting ‘‘and’’ at the end of subpara-
graph (A),
(2) by striking ‘‘, and’’ at the end of subpara-
graph (B) and inserting a period, and 
(3) by striking subparagraph (C). 
(j) INTERCONNECTION PROPERTY.—Section 48(a) is 
amended by striking paragraph (8). 
(k) ENERGY PROJECTS, WAGE REQUIREMENTS, AND 
APPRENTICESHIP
REQUIREMENTS.—Section 48(a) is 
amended by striking paragraphs (9), (10), and (11). 
(l) DOMESTIC CONTENT, PHASEOUT FOR ELECTIVE 
PAYMENT.—Section 48(a) is amended by striking para-
graphs (12) and (13). 
(m) RULE FOR PROPERTY FINANCED BY TAX-EX-
EMPT BONDS REMOVED; TEXT OF SPECIAL RULE FOR 
PROPERTY FINANCED BY SUBSIDIZED ENERGY FINANC-
ING
OR
INDUSTRIAL
DEVELOPMENT
BONDS
RE-
STORED.—Section 48(a)(4) is amended to read as follows: 
‘‘(4) SPECIAL RULE FOR PROPERTY FINANCED 
BY SUBSIDIZED ENERGY FINANCING OR INDUSTRIAL 
DEVELOPMENT BONDS.— 
‘‘(A) REDUCTION OF BASIS.—For purposes 
of applying the energy percentage to any prop-
erty, if such property is financed in whole or in 
part by— 
‘‘(i) subsidized energy financing, or
‘‘(ii) the proceeds of a private activity 
bond (within the meaning of section 141) 
the interest on which is exempt from tax 
under section 103, 
the amount taken into account as the basis of 
such property shall not exceed the amount 
which (but for this subparagraph) would be so 
taken into account multiplied by the fraction 
determined under subparagraph (B). 
‘‘(B) DETERMINATION OF FRACTION.—For 
purposes of subparagraph (A), the fraction de-
termined under this subparagraph is 1 reduced 
by a fraction— 
‘‘(i) the numerator of which is that 
portion of the basis of the property which 
is allocable to such financing or proceeds, 
and 
‘‘(ii) the denominator of which is the 
basis of the property. 
‘‘(C) SUBSIDIZED
ENERGY
FINANCING.— 
For purposes of subparagraph (A), the term 
‘subsidized energy financing’ means financing 
provided under a Federal, State, or local pro-
gram a principal purpose of which is to provide
subsidized financing for projects designed to 
conserve or produce energy. 
‘‘(D) 
TERMINATION.—This 
paragraph 
shall not apply to periods after December 31, 
2008, under rules similar to the rules of section 
48(m) (as in effect on the day before the date 
of the enactment of the Revenue Reconciliation 
Act of 1990).’’. 
(n) TREATMENT OF CONTRACTS INVOLVING ENERGY 
STORAGE.—Section 7701(e) is amended— 
(1) in paragraph (3)— 
(A) in subparagraph (A)(i), by inserting 
‘‘or’’ at the end of subclause (II), by striking 
‘‘or’’ at the end of subclause (III) and inserting 
‘‘and’’, and by striking subclause (IV), and 
(B) by striking subparagraph (F), and 
(2) in paragraph (4), by striking ‘‘water treat-
ment works facility, or storage facility’’ and insert-
ing ‘‘or water treatment works facility’’. 
(o) REMOVAL OF INCREASED CREDIT RATE FOR EN-
ERGY COMMUNITIES.—Section 48(a) is amended by strik-
ing paragraph (14). 
(p) REGULATIONS.—Section 48(a) is amended by 
striking paragraph (15). 
(q) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), the amendments made by this 
section shall apply to property placed in service after 
December 31, 2021. 
(2) 
OTHER
PROPERTY.—The 
amendments 
made by subsections (f), (g), (h), (i), (j), (l), (n), 
and (o) shall apply to property placed in service 
after December 31, 2022. 
(3) REMOVAL
OF
RULE
FOR
PROPERTY
FI-
NANCED BY TAX EXEMPT BONDS.—The amendment 
made by subsection (m) shall apply to property the 
construction of which begins after August 16, 2022. 
SEC. 224. REPEAL OF INCREASE IN ENERGY CREDIT FOR 
SOLAR AND WIND FACILITIES PLACED IN 
SERVICE IN CONNECTION WITH LOW-INCOME 
COMMUNITIES. 
(a) IN GENERAL.—Section 48 is amended by striking 
subsection (e). 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on January 1, 2023. 
SEC. 225. ZERO-EMISSION NUCLEAR POWER PRODUCTION 
CREDIT REPEALED. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 is amended by striking section 45U
(and by striking the item relating to such section in the 
table of sections for such subpart). 
(b) CONFORMING AMENDMENTS.—Section 38(b) is 
amended— 
(1) in paragraph (32), by adding ‘‘plus’’ at the 
end, 
(2) in paragraph (33), by striking the comma 
at the end and inserting a period, and 
(3) by striking paragraph (34). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to electricity produced and sold 
after December 31, 2023, in taxable years beginning after 
such date. 
SEC. 226. REPEAL OF SUSTAINABLE AVIATION FUEL CRED-
IT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 is amended by striking section 40B 
(and by striking the item relating to such section in the 
table of sections for such subpart). 
(b) CONFORMING AMENDMENT.—Section 38(b) is 
amended by striking paragraph (35). 
(c) COORDINATION WITH BIODIESEL REMOVED.— 
(1) IN GENERAL.—Section 40A(d)(1) is amend-
ed by striking ‘‘or 40B’’.
(2) 
CONFORMING
AMENDMENT.—Section 
40A(f) is amended by adding at the end the fol-
lowing: 
‘‘(4) CERTAIN AVIATION FUEL.— 
‘‘(A) IN GENERAL.—Except as provided in 
the last 3 sentences of paragraph (3), the term 
‘renewable diesel’ shall include fuel derived from 
biomass which meets the requirements of a De-
partment of Defense specification for military 
jet fuel or an American Society of Testing and 
Materials specification for aviation turbine fuel. 
‘‘(B) APPLICATION
OF
MIXTURE
CRED-
ITS.—In the case of fuel which is treated as re-
newable diesel solely by reason of subparagraph 
(A), subsection (b)(1) and section 6426(c) shall 
be applied with respect to such fuel by treating 
kerosene as though it were diesel fuel.’’. 
(3) SUSTAINABLE AVIATION FUEL CREDIT PRO-
VISIONS
REMOVED.—Section 6426 is amended by 
striking subsection (k). 
(d) CONFORMING AMENDMENTS.— 
(1) Section 6426 is amended— 
(A) in subsection (a)(1), by striking ‘‘(e), 
and (k)’’ and inserting ‘‘and (e)’’, and
(B) in subsection (h), by striking ‘‘under 
section 40, 40A, or 40B’’ and inserting ‘‘under 
section 40 or 40A’’. 
(2) Section 6427(e) is amended— 
(A) in the heading, by striking ‘‘ALTER-
NATIVE
FUEL, OR
SUSTAINABLE
AVIATION 
FUEL’’ 
and 
inserting 
‘‘OR
ALTERNATIVE 
FUEL’’, 
(B) in paragraph (1), by striking ‘‘or the 
sustainable aviation fuel mixture credit’’, and 
(C) in paragraph (6)— 
(i) in subparagraph (C), by adding 
‘‘and’’ at the end, 
(ii) in subparagraph (D), by striking 
‘‘, and’’ and inserting a period, and 
(iii) by striking subparagraph (E). 
(3) Section 4101(a)(1) is amended by striking 
‘‘every person producing or importing sustainable 
aviation fuel (as defined in section 40B),’’. 
(4) Section 87 is amended— 
(A) in paragraph (1), by adding ‘‘and’’ at 
the end, 
(B) in paragraph (2), by striking ‘‘, and’’ 
and inserting a period, and 
(C) by striking paragraph (3).
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to fuel sold or used after December 
31, 2022. 
SEC. 227. CLEAN HYDROGEN REPEALS. 
(a) CREDIT FOR PRODUCTION OF CLEAN HYDROGEN 
REPEALED.— 
(1) IN GENERAL.—Subpart D of part IV of 
subchapter A of chapter 1 is amended by striking 
section 45V (and by striking the item relating to 
such section in the table of sections for such sub-
part). 
(2) CONFORMING AMENDMENT.—Section 38(b) 
is amended by striking paragraph (36). 
(3) EFFECTIVE DATE.—The amendments made 
by this section shall apply to hydrogen produced 
after December 31, 2022. 
(b) CREDIT FOR ELECTRICITY PRODUCED FROM RE-
NEWABLE RESOURCES ALLOWED
IF ELECTRICITY IS 
USED TO PRODUCE CLEAN HYDROGEN.— 
(1) IN GENERAL.—Section 45(e) is amended by 
striking paragraph (13). 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to electricity produced 
after December 31, 2022.
(c) ELECTION TO TREAT CLEAN HYDROGEN PRO-
DUCTION FACILITIES AS ENERGY PROPERTY.— 
(1) IN GENERAL.—Section 48(a) is amended by 
striking paragraph (15) and by redesignating para-
graph (16) as paragraph (15). 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to property placed in 
service after December 31, 2022. 
(d) REINSTATEMENT OF ALTERNATIVE FUEL CRED-
IT FOR LIQUEFIED HYDROGEN.— 
(1) 
IN
GENERAL.—Section 
6426(d)(2) 
is 
amended by redesignating subparagraphs (D), (E), 
and (F) as subparagraphs (E), (F), and (G), respec-
tively, and by inserting after subparagraph (C) the 
following: 
‘‘(D) liquefied hydrogen,’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
6426(e)(2) is amended by striking ‘‘(E)’’ and insert-
ing ‘‘(F)’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to fuel sold or used 
after December 31, 2022. 
SEC. 228. NONBUSINESS ENERGY PROPERTY CREDIT. 
(a) IN GENERAL.—Section 25C is amended to read 
as follows:
‘‘SEC. 25C. NONBUSINESS ENERGY PROPERTY. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual, there shall be allowed as a credit against the tax 
imposed by this chapter for the taxable year an amount 
equal to the sum of— 
‘‘(1) 10 percent of the amount paid or incurred 
by the taxpayer for qualified energy efficiency im-
provements installed during such taxable year, and 
‘‘(2) the amount of the residential energy prop-
erty expenditures paid or incurred by the taxpayer 
during such taxable year. 
‘‘(b) LIMITATIONS.— 
‘‘(1) LIFETIME
LIMITATION.—The credit al-
lowed under this section with respect to any tax-
payer for any taxable year shall not exceed the ex-
cess (if any) of $500 over the aggregate credits al-
lowed under this section with respect to such tax-
payer for all prior taxable years ending after Decem-
ber 31, 2005. 
‘‘(2) WINDOWS.—In the case of amounts paid 
or incurred for components described in subsection 
(c)(3)(B) by any taxpayer for any taxable year, the 
credit allowed under this section with respect to such 
amounts for such year shall not exceed the excess (if 
any) of $200 over the aggregate credits allowed 
under this section with respect to such amounts for
all prior taxable years ending after December 31, 
2005. 
‘‘(3) LIMITATION
ON
RESIDENTIAL
ENERGY 
PROPERTY
EXPENDITURES.—The amount of the 
credit allowed under this section by reason of sub-
section (a)(2) shall not exceed— 
‘‘(A) $50 for any advanced main air circu-
lating fan, 
‘‘(B) $150 for any qualified natural gas, 
propane, or oil furnace or hot water boiler, and 
‘‘(C) $300 for any item of energy-efficient 
building property. 
‘‘(c) QUALIFIED ENERGY EFFICIENCY IMPROVE-
MENTS.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified energy 
efficiency improvements’ means any energy efficient 
building envelope component, if— 
‘‘(A) such component is installed in or on 
a dwelling unit located in the United States and 
owned and used by the taxpayer as the tax-
payer’s principal residence (within the meaning 
of section 121), 
‘‘(B) the original use of such component 
commences with the taxpayer, and
‘‘(C) such component reasonably can be ex-
pected to remain in use for at least 5 years. 
‘‘(2) ENERGY EFFICIENT BUILDING ENVELOPE 
COMPONENT.—The term ‘energy efficient building 
envelope component’ means a building envelope com-
ponent which meets— 
‘‘(A) applicable Energy Star program re-
quirements, in the case of a roof or roof prod-
ucts, 
‘‘(B) version 6.0 Energy Star program re-
quirements, in the case of an exterior window, 
a skylight, or an exterior door, and 
‘‘(C) the prescriptive criteria for such com-
ponent established by the 2009 International 
Energy Conservation Code, as such Code (in-
cluding supplements) is in effect on the date of 
the enactment of the American Recovery and 
Reinvestment Tax Act of 2009, in the case of 
any other component. 
‘‘(3) BUILDING ENVELOPE COMPONENT.—The 
term ‘building envelope component’ means— 
‘‘(A) any insulation material or system 
which is specifically and primarily designed to 
reduce the heat loss or gain of a dwelling unit 
when installed in or on such dwelling unit,
‘‘(B) exterior windows (including sky-
lights), 
‘‘(C) exterior doors, and 
‘‘(D) any metal roof or asphalt roof in-
stalled on a dwelling unit, but only if such roof 
has appropriate pigmented coatings or cooling 
granules which are specifically and primarily 
designed to reduce the heat gain of such dwell-
ing unit. 
‘‘(4) MANUFACTURED HOMES INCLUDED.—The 
term ‘dwelling unit’ includes a manufactured home 
which conforms to Federal Manufactured Home 
Construction and Safety Standards (part 3280 of 
title 24, Code of Federal Regulations). 
‘‘(d) RESIDENTIAL ENERGY PROPERTY EXPENDI-
TURES.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘residential en-
ergy 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 
owned and used by the taxpayer as the tax-
payer’s principal residence (within the meaning 
of section 121), and
‘‘(B) originally placed in service by the tax-
payer. 
Such term includes expenditures for labor costs 
properly allocable to the onsite preparation, assem-
bly, or original installation of the property. 
‘‘(2) QUALIFIED ENERGY PROPERTY.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
energy property’ means— 
‘‘(i) energy-efficient building property, 
‘‘(ii) a qualified natural gas, propane, 
or oil furnace or hot water boiler, or 
‘‘(iii) an advanced main air circulating 
fan. 
‘‘(B) PERFORMANCE AND QUALITY STAND-
ARDS.—Property described under subparagraph 
(A) shall meet the performance and quality 
standards, and the certification requirements (if 
any), which— 
‘‘(i) have been prescribed by the Sec-
retary by regulations (after consultation 
with the Secretary of Energy or the Ad-
ministrator of the Environmental Protec-
tion Agency, as appropriate), and 
‘‘(ii) are in effect at the time of the 
acquisition of the property, or at the time
of the completion of the construction, re-
construction, or erection of the property, 
as the case may be. 
‘‘(C) REQUIREMENTS
AND
STANDARDS 
FOR AIR CONDITIONERS AND HEAT PUMPS.— 
The standards and requirements prescribed by 
the Secretary under subparagraph (B) with re-
spect to the energy efficiency ratio (EER) for 
central air conditioners and electric heat 
pumps— 
‘‘(i) shall require measurements to be 
based on published data which is tested by 
manufacturers at 95 degrees Fahrenheit, 
and 
‘‘(ii) may be based on the certified 
data of the Air Conditioning and Refrig-
eration Institute that are prepared in part-
nership with the Consortium for Energy 
Efficiency. 
‘‘(3) 
ENERGY-EFFICIENT
BUILDING
PROP-
ERTY.—The term ‘energy-efficient building property’ 
means— 
‘‘(A) an electric heat pump water heater 
which yields a Uniform Energy Factor of at
least 2.2 in the standard Department of Energy 
test procedure, 
‘‘(B) an electric heat pump which achieves 
the highest efficiency tier established by the 
Consortium for Energy Efficiency, as in effect 
on January 1, 2009, 
‘‘(C) a central air conditioner which 
achieves the highest efficiency tier established 
by the Consortium for Energy Efficiency, as in 
effect on January 1, 2009, and 
‘‘(D) a natural gas, propane, or oil water 
heater which has either a Uniform Energy Fac-
tor of at least 0.82 or a thermal efficiency of 
at least 90 percent. 
‘‘(4) QUALIFIED NATURAL GAS, PROPANE, OR 
OIL FURNACE OR HOT WATER BOILER.—The term 
‘qualified natural gas, propane, or oil furnace or hot 
water boiler’ means a natural gas, propane, or oil 
furnace or hot water boiler which achieves an annual 
fuel utilization efficiency rate of not less than 95. 
‘‘(5) ADVANCED MAIN AIR CIRCULATING FAN.— 
The term ‘advanced main air circulating fan’ means 
a fan used in a natural gas, propane, or oil furnace 
and which has an annual electricity use of no more 
than 2 percent of the total annual energy use of the
furnace (as determined in the standard Department 
of Energy test procedures). 
‘‘(e) SPECIAL RULES.—For purposes of this sec-
tion— 
‘‘(1) APPLICATION OF RULES.—Rules similar to 
the rules under paragraphs (4), (5), (6), (7), and (8) 
of section 25D(e) shall apply. 
‘‘(2) JOINT OWNERSHIP OF ENERGY ITEMS.— 
‘‘(A) IN GENERAL.—Any expenditure oth-
erwise qualifying as an expenditure under this 
section shall not be treated as failing to so 
qualify merely because such expenditure was 
made with respect to two or more dwelling 
units. 
‘‘(B) LIMITS
APPLIED
SEPARATELY.—In 
the case of any expenditure described in sub-
paragraph (A), the amount of the credit allow-
able under subsection (a) shall (subject to para-
graph (1)) be computed separately with respect 
to the amount of the expenditure made for each 
dwelling unit. 
‘‘(3) PROPERTY FINANCED BY SUBSIDIZED EN-
ERGY FINANCING.—For purposes of determining the 
amount of expenditures made by any individual with 
respect to any property, there shall not be taken into
account expenditures which are made from sub-
sidized energy financing (as defined in section 
48(a)(4)(C)). 
‘‘(f) BASIS ADJUSTMENTS.—For purposes of this 
subtitle, if a credit is allowed under this section for any 
expenditure with respect to any property, the increase in 
the basis of such property which would (but for this sub-
section) result from such expenditure shall be reduced by 
the amount of the credit so allowed. 
‘‘(g) TERMINATION.—This section shall not apply 
with respect to any property placed in service— 
‘‘(1) after December 31, 2007, and before Jan-
uary 1, 2009, or 
‘‘(2) after December 31, 2021.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 1016(a)(33) is amended by striking 
‘‘section 25C(g)’’ and inserting ‘‘25C(f)’’. 
(2) Section 6213(g)(2) is amended— 
(A) by adding ‘‘and’’ at the end of sub-
paragraph (P), 
(B) by striking the comma at the end of 
subparagraph (Q) and inserting a period, and 
(C) by striking subparagraphs (R) and (S).
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2021. 
SEC. 229. RESIDENTIAL CLEAN ENERGY CREDIT REVERTED 
TO CREDIT FOR RESIDENTIAL ENERGY EFFI-
CIENT PROPERTY. 
(a) EXTENSION REVERSED.— 
(1) IN GENERAL.—Section 25D(h) is amended 
by striking ‘‘December 31, 2034’’ and inserting 
‘‘December 31, 2023’’. 
(2) PHASEOUT RESTORED.—Section 25D(g) is 
amended— 
(A) in paragraph (1), by adding ‘‘and’’ at 
the end, 
(B) in paragraph (2), by striking ‘‘before 
January 1, 2022, 26 percent,’’ and inserting 
‘‘before January 1, 2023, 26 percent, and’’, 
(C) in paragraph (3), by striking ‘‘Decem-
ber 31, 2021, and before January 1, 2033, 30 
percent,’’ and inserting ‘‘December 31, 2022, 
and before January 1, 2024, 22 percent.’’, and 
(D) by striking paragraphs (4) and (5). 
(b) RESIDENTIAL CLEAN ENERGY CREDIT FOR BAT-
TERY STORAGE TECHNOLOGY REMOVED; BIOMASS EX-
PENDITURE PROVISIONS RESTORED.—
(1) IN
GENERAL.—Paragraph (6) of section 
25D(a) is amended to read as follows: 
‘‘(6) the qualified biomass fuel property expend-
itures,’’, 
(2) DEFINITION OF QUALIFIED BIOMASS FUEL 
PROPERTY
EXPENDITURES
RESTORED.—Paragraph 
(6) of section 25D(d) is amended to read as follows: 
‘‘(6) QUALIFIED BIOMASS FUEL PROPERTY EX-
PENDITURE.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
biomass fuel property expenditure’ means an 
expenditure for property— 
‘‘(i) which uses the burning of bio-
mass 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) which has a thermal efficiency 
rating of at least 75 percent (measured by 
the higher heating value of the fuel). 
‘‘(B) BIOMASS
FUEL.—For purposes of 
this section, the term ‘biomass fuel’ means any 
plant-derived fuel available on a renewable or 
recurring basis.’’. 
(c) CONFORMING AMENDMENTS.—
(1) Section 25D(d)(3) is amended by striking ‘‘, 
without regard to subparagraph (D) thereof’’. 
(2) The heading for section 25D is amended by 
striking ‘‘CLEAN ENERGY CREDIT’’ and inserting 
‘‘ENERGY EFFICIENT PROPERTY’’. 
(3) The table of sections for subpart A of part 
IV of subchapter A of chapter 1 is amended by 
striking the item relating to section 25D and insert-
ing the following: 
‘‘Sec. 25D. Residential energy efficient property.’’ 
(d) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to expenditures made after December 31, 
2021. 
(2) RESIDENTIAL CLEAN ENERGY CREDIT FOR 
BATTERY
STORAGE
TECHNOLOGY
REMOVED; BIO-
MASS
EXPENDITURE
PROVISIONS
RESTORED.—The 
amendments made by subsection (b) shall apply to 
expenditures made after December 31, 2022. 
SEC. 230. ENERGY EFFICIENT COMMERCIAL BUILDINGS DE-
DUCTION. 
(a) IN GENERAL.— 
(1) MAXIMUM AMOUNT OF DEDUCTION RULES 
RESTORED.—Section 179D(b) is amended to read as 
follows:
‘‘(b) MAXIMUM AMOUNT OF DEDUCTION.—The de-
duction under subsection (a) with respect to any building 
for any taxable year shall not exceed the excess (if any) 
of— 
‘‘(1) the product of— 
‘‘(A) $1.80, and 
‘‘(B) the square footage of the building, 
over 
‘‘(2) the aggregate amount of the deductions 
under subsection (a) with respect to the building for 
all prior taxable years.’’. 
(2) MODIFICATION
OF
EFFICIENCY
STAND-
ARD.—Section 179D(c)(1)(D) is amended by strik-
ing ‘‘25 percent’’ and inserting ‘‘50 percent’’. 
(3) 
REFERENCE
STANDARD.—Section 
179D(c)(2) is amended to read as follows: 
‘‘(2) REFERENCE STANDARD 90.1.—The term 
‘Reference Standard 90.1’ means, with respect to 
any property, the most recent Standard 90.1 pub-
lished by the American Society of Heating, Refrig-
erating, and Air Conditioning Engineers and the Il-
luminating Engineering Society of North America 
which has been affirmed by the Secretary, after con-
sultation with the Secretary of Energy, for purposes 
of this section not later than the date that is 2 years
before the date that construction of such property 
begins.’’. 
(4) PARTIAL ALLOWANCE.— 
(A) IN
GENERAL.—Section 179D(d) is 
amended— 
(i) by redesignating paragraphs (1) 
through (5) as paragraphs (2) through (6), 
respectively, and 
(ii) by inserting before paragraph (2) 
the following: 
‘‘(1) PARTIAL ALLOWANCE.— 
‘‘(A) IN GENERAL.—Except as provided in 
subsection (f), if— 
‘‘(i) the requirement of subsection 
(c)(1)(D) is not met, but 
‘‘(ii) there is a certification in accord-
ance with paragraph (6) that any system 
referred to in subsection (c)(1)(C) satisfies 
the energy-savings targets established by 
the Secretary under subparagraph (B) 
with respect to such system, 
then the requirement of subsection (c)(1)(D) 
shall be treated as met with respect to such sys-
tem, and the deduction under subsection (a) 
shall be allowed with respect to energy efficient
commercial building property installed as part 
of such system and as part of a plan to meet 
such targets, except that subsection (b) shall be 
applied to such property by substituting ‘$.60’ 
for ‘$1.80’. 
‘‘(B) REGULATIONS.—The Secretary, after 
consultation with the Secretary of Energy, shall 
establish a target for each system described in 
subsection (c)(1)(C) such that, if such targets 
were met for all such systems, the building 
would meet the requirements of subsection 
(c)(1)(D).’’. 
(B) CONFORMING AMENDMENTS.— 
(i) Section 179D(c)(1)(D) is amend-
ed— 
(I) 
by 
striking 
‘‘subsection 
(d)(5)’’ and inserting ‘‘subsection 
(d)(6)’’, and 
(II) 
by 
striking 
‘‘subsection 
(d)(1)’’ and inserting ‘‘subsection 
(d)(2)’’. 
(ii) Paragraph (3)(A) of section 
179D(d), as redesignated by subparagraph 
(A), is amended by striking ‘‘paragraph 
(1)’’ and inserting ‘‘paragraph (2)’’.
(iii) 
Paragraph 
(5) 
of 
section 
179D(d), as redesignated by subparagraph 
(A), is amended by striking ‘‘paragraph 
(2)(B)(iii)’’ 
and 
inserting 
‘‘paragraph 
(3)(B)(iii)’’. 
(iv) Section 179D(h)(2) is amended 
by inserting ‘‘or (d)(1)(A)’’ after ‘‘sub-
section (c)(1)(D)’’. 
(5) ALLOCATION OF DEDUCTION FOR PUBLIC 
PROPERTY.—Paragraph (4) of section 179D(d), as 
redesignated by paragraph (4)(A), is amended to 
read as follows: 
‘‘(4) ALLOCATION OF DEDUCTION FOR PUBLIC 
PROPERTY.—In the case of energy efficient commer-
cial building property installed on or in property 
owned by a Federal, State, or local government or 
a political subdivision thereof, the Secretary shall 
promulgate a regulation 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 tax-
payer for purposes of this section.’’. 
(6) ALTERNATIVE DEDUCTION FOR ENERGY EF-
FICIENT
BUILDING
RETROFIT
PROPERTY
RE-
PEALED.—
(A) 
IN
GENERAL.—Section 
179D 
is 
amended by striking subsection (f). 
(B) RESTORATION OF TEXT RELATING TO 
INTERIM RULES FOR LIGHTING SYSTEMS.—Sec-
tion 179D is amended by inserting after sub-
section (e) the following: 
‘‘(f) INTERIM RULES
FOR LIGHTING SYSTEMS.— 
Until such time as the Secretary issues final regulations 
under subsection (d)(1)(B) with respect to property which 
is part of a lighting system— 
‘‘(1) IN GENERAL.—The lighting system target 
under subsection (d)(1)(A)(ii) shall be a reduction in 
lighting power density of 25 percent (50 percent in 
the case of a warehouse) of the minimum require-
ments in Table 9.5.1 or Table 9.6.1 (not including 
additional interior lighting power allowances) of 
Standard 90.1–2007. 
‘‘(2) REDUCTION IN DEDUCTION IF REDUCTION 
LESS THAN 40 PERCENT.— 
‘‘(A) IN GENERAL.—If, with respect to the 
lighting system of any building other than a 
warehouse, the reduction in lighting power den-
sity of the lighting system is not at least 40 
percent, only the applicable percentage of the 
amount of deduction otherwise allowable under
this section with respect to such property shall 
be allowed. 
‘‘(B) 
APPLICABLE
PERCENTAGE.—For 
purposes of subparagraph (A), the applicable 
percentage is the number of percentage points 
(not greater than 100) equal to the sum of— 
‘‘(i) 50, and 
‘‘(ii) the amount which bears the same 
ratio to 50 as the excess of the reduction 
of lighting power density of the lighting 
system over 25 percentage points bears to 
15. 
‘‘(C) EXCEPTIONS.—This subsection shall 
not apply to any system— 
‘‘(i) the controls and circuiting of 
which do not comply fully with the manda-
tory and prescriptive requirements of 
Standard 90.1–2007 and which do not in-
clude provision for bilevel switching in all 
occupancies except hotel and motel guest 
rooms, store rooms, restrooms, and public 
lobbies, or 
‘‘(ii) which does not meet the min-
imum requirements for calculated lighting 
levels as set forth in the Illuminating Engi-
neering Society of North America Lighting 
Handbook, Performance and Application, 
Ninth Edition, 2000.’’. 
(7) 
INFLATION
ADJUSTMENT.—Section 
179D(g) is amended— 
(A) by inserting ‘‘or subsection (d)(1)(A)’’ 
after ‘‘subsection (b)’’, 
(B) by striking ‘‘2022’’ and inserting 
‘‘2020’’, and 
(C) by striking ‘‘calendar year 2021’’ and 
inserting ‘‘calendar year 2019’’. 
(b) SPECIAL RULE FOR REAL ESTATE INVESTMENT 
TRUSTS REMOVED.—Section 312(k)(3)(B) is amended to 
read as follows: 
‘‘(B) TREATMENT OF AMOUNTS DEDUCT-
IBLE UNDER SECTION 179, 179B, 179C, 179D, OR 
179E.—For purposes of computing the earnings 
and profits of a corporation, any amount de-
ductible under section 179, 179B, 179C, 179D, 
or 179E shall be allowed as a deduction ratably 
over the period of 5 taxable years (beginning 
with the taxable year for which such amount is 
deductible under section 179, 179B, 179C, 
179D, or 179E, as the case may be).’’.
(c) CONFORMING AMENDMENT.—Paragraph (2) of 
section 179D(d), as redesignated by subsection (a)(4)(A), 
is amended by striking ‘‘not later than the date that is 
4 years before the date such property is placed in service’’ 
and inserting ‘‘not later than the date that is 2 years be-
fore the date that construction of such property begins’’. 
(d) EFFECTIVE DATES.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2022. 
SEC. 231. MODIFICATIONS TO NEW ENERGY EFFICIENT 
HOME CREDIT. 
(a) EXTENSION
REVERSED.—Section 45L(h) is 
amended by striking ‘‘December 31, 2032’’ and inserting 
‘‘December 31, 2021’’. 
(b) DECREASE
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 de-
scribed in paragraph (1) or (2) of subsection 
(c), $2,000, and 
‘‘(B) in the case of a dwelling unit de-
scribed in paragraph (3) of subsection (c), 
$1,000.’’.
(c) REVERSAL OF MODIFICATION OF ENERGY SAV-
ING REQUIREMENTS.—Section 45L(c) is amended to read 
as follows: 
‘‘(c) ENERGY SAVING REQUIREMENTS.—A dwelling 
unit meets the energy saving requirements of this sub-
section if such unit is— 
‘‘(1) certified— 
‘‘(A) to have a level of annual heating and 
cooling energy consumption which is at least 50 
percent below the annual level of heating and 
cooling energy consumption of a comparable 
dwelling unit— 
‘‘(i) which is constructed in accord-
ance with the standards of chapter 4 of the 
2006 International Energy Conservation 
Code, as such Code (including supple-
ments) is in effect on January 1, 2006, 
and 
‘‘(ii) for which the heating and cooling 
equipment efficiencies correspond to the 
minimum allowed under the regulations es-
tablished by the Department of Energy 
pursuant to the National Appliance Energy 
Conservation Act of 1987 and in effect at 
the time of completion of construction, and
‘‘(B) to have building envelope component 
improvements account for at least 1⁄5 of such 
50 percent, 
‘‘(2) a manufactured home which conforms to 
Federal Manufactured Home Construction and Safe-
ty Standards (part 3280 of title 24, Code of Federal 
Regulations) and which meets the requirements of 
paragraph (1), or 
‘‘(3) a manufactured home which conforms to 
Federal Manufactured Home Construction and Safe-
ty Standards (part 3280 of title 24, Code of Federal 
Regulations) and which— 
‘‘(A) meets the requirements of paragraph 
(1) applied by substituting ‘30 percent’ for ‘50 
percent’ both places it appears therein and by 
substituting ‘1⁄3’ for ‘1⁄5’ in subparagraph (B) 
thereof, or 
‘‘(B) meets the requirements established 
by the Administrator of the Environmental Pro-
tection Agency under the Energy Star Labeled 
Homes program.’’. 
(d) PREVAILING WAGE REQUIREMENT REMOVED.— 
Section 45L is amended by striking subsection (g) and 
redesignating subsection (h) as subsection (g).
(e) BASIS ADJUSTMENT.—Section 45L(e) is amended 
by striking ‘‘This subsection shall not apply for purposes 
of determining the adjusted basis of any building under 
section 42’’. 
(f) EFFECTIVE DATES.—The amendments made by 
this section shall apply to dwelling units acquired after 
December 31, 2021. 
SEC. 232. CLEAN VEHICLE CREDIT. 
(a) PER VEHICLE DOLLAR LIMITATION.—Section 
30D(b) is amended by striking paragraphs (2) and (3) and 
inserting the following: 
‘‘(2) BASE AMOUNT.—The amount determined 
under this paragraph is $2,500. 
‘‘(3) BATTERY CAPACITY.—In the case of a ve-
hicle which draws propulsion energy from a battery 
with not less than 5 kilowatt hours of capacity, the 
amount determined under this paragraph is $417, 
plus $417 for each kilowatt hour of capacity in ex-
cess of 5 kilowatt hours. The amount determined 
under this paragraph shall not exceed $5,000.’’. 
(b) FINAL ASSEMBLY.—Section 30D(d) is amend-
ed— 
(1) in paragraph (1)— 
(A) in subparagraph (E), by adding ‘‘and’’ 
at the end,
(B) in subparagraph (F)(ii), by striking 
the comma at the end and inserting a period, 
and 
(C) by striking subparagraph (G), and 
(2) by striking paragraph (5). 
(c) DEFINITION.— 
(1) IN GENERAL.—Section 30D(d), as amended 
by subsection (b), is amended— 
(A) in the heading, by striking ‘‘CLEAN’’ 
and inserting ‘‘QUALIFIED PLUG-IN ELECTRIC 
DRIVE MOTOR’’, 
(B) in paragraph (1)— 
(i) in the matter preceding subpara-
graph (A), by striking ‘‘clean’’ and insert-
ing ‘‘qualified plug-in electric drive motor’’, 
(ii) in subparagraph (C), by striking 
‘‘qualified’’ before ‘‘manufacturer’’, 
(iii) in subparagraph (F)(i), by strik-
ing ‘‘7’’ and inserting ‘‘4’’, and 
(iv) by striking subparagraph (H), 
(C) in paragraph (3)— 
(i) in the heading, by striking ‘‘QUALI-
FIED
MANUFACTURER’’ 
and 
inserting 
‘‘MANUFACTURER’’, and
(ii) by striking ‘‘The term ‘qualified 
manufacturer’ means’’ and all that follows 
through the period and inserting ‘‘The 
term ‘manufacturer’ has the meaning given 
such term in regulations prescribed by the 
Administrator of the Environmental Pro-
tection Agency for purposes of the admin-
istration of title II of the Clean Air Act 
(42 U.S.C. 7521 et seq.).’’, and 
(D) by striking paragraph (6). 
(2) CONFORMING AMENDMENTS.—Section 30D 
is amended— 
(A) in subsection (a), by striking ‘‘new 
clean vehicle’’ and inserting ‘‘new qualified 
plug-in electric drive motor vehicle’’, and 
(B) in subsection (b)(1), by striking ‘‘new 
clean vehicle’’ and inserting ‘‘new qualified 
plug-in electric drive motor vehicle’’. 
(d) 
CRITICAL
MINERAL
REQUIREMENTS
RE-
MOVED.—Section 30D is amended by striking subsection 
(e). 
(e) LIMITATION ON NUMBER OF VEHICLES ELIGIBLE 
FOR CREDIT RESTORED.— 
(1) IN GENERAL.—Section 30D is amended by 
inserting after subsection (d) the following:
‘‘(e) LIMITATION ON NUMBER OF NEW QUALIFIED 
PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES ELIGIBLE 
FOR CREDIT.— 
‘‘(1) IN GENERAL.—In the case of a new quali-
fied plug-in electric drive motor vehicle sold during 
the phaseout period, only the applicable percentage 
of the credit otherwise allowable under subsection 
(a) shall be allowed. 
‘‘(2) PHASEOUT PERIOD.—For purposes of this 
subsection, the phaseout period is the period begin-
ning with the second calendar quarter following the 
calendar quarter which includes the first date on 
which the number of new qualified plug-in electric 
drive motor vehicles manufactured by the manufac-
turer of the vehicle referred to in paragraph (1) sold 
for use in the United States after December 31, 
2009, is at least 200,000. 
‘‘(3) APPLICABLE PERCENTAGE.—For purposes 
of paragraph (1), the applicable percentage is— 
‘‘(A) 50 percent for the first 2 calendar 
quarters of the phaseout period, 
‘‘(B) 25 percent for the 3rd and 4th cal-
endar quarters of the phaseout period, and (C) 
‘‘(C) 0 percent for each calendar quarter 
thereafter.
‘‘(4) CONTROLLED GROUPS.—Rules similar to 
the rules of section 30B(f)(4) shall apply for pur-
poses of this subsection.’’. 
(2) EXCLUDED ENTITIES.—Section 30D(d), as 
amended by Public Law 117–169, is amended by 
striking paragraph (7). 
(f) SPECIAL RULES REPEALED.—Section 30D(f) is 
amended by striking paragraphs (8), (9), (10), and (11). 
(g) TRANSFER OF CREDIT REPEALED.— 
(1) IN GENERAL.—Section 30D is amended by 
striking subsection (g). 
(2) RESTORATION
OF
TEXT
RELATING
TO 
PLUG-IN
ELECTRIC
VEHICLES.—Section 30D is 
amended by inserting after subsection (f) the fol-
lowing: 
‘‘(g) CREDIT ALLOWED
FOR 2- AND 3-WHEELED 
PLUG-IN ELECTRIC VEHICLES.— 
‘‘(1) IN GENERAL.—In the case of a qualified 
2- or 3-wheeled plug-in electric vehicle— 
‘‘(A) there shall be allowed as a credit 
against the tax imposed by this chapter for the 
taxable year an amount equal to the sum of the 
applicable amount with respect to each such 
qualified 2- or 3-wheeled plug-in electric vehicle
placed in service by the taxpayer during the 
taxable year, and 
‘‘(B) the amount of the credit allowed 
under subparagraph (A) shall be treated as a 
credit allowed under subsection (a). 
‘‘(2) APPLICABLE AMOUNT.—For purposes of 
paragraph (1), the applicable amount is an amount 
equal to the lesser of— 
‘‘(A) 10 percent of the cost of the qualified 
2- or 3-wheeled plug-in electric vehicle, or 
‘‘(B) $2,500. 
‘‘(3) QUALIFIED
2- OR
3-WHEELED
PLUG-IN 
ELECTRIC VEHICLE.—The term ‘qualified 2- or 3- 
wheeled plug-in electric vehicle’ means any vehicle 
which— 
‘‘(A) has 2 or 3 wheels, 
‘‘(B) meets the requirements of subpara-
graphs (A), (B), (C), (E), and (F) of subsection 
(d)(1) (determined by substituting ‘2.5 kilowatt 
hours’ for ‘4 kilowatt hours’ in subparagraph 
(F)(i)), 
‘‘(C) is manufactured primarily for use on 
public streets, roads, and highways, 
‘‘(D) is capable of achieving a speed of 45 
miles per hour or greater, and
‘‘(E) is acquired— 
‘‘(i) after December 31, 2011, and be-
fore January 1, 2014, or 
‘‘(ii) in the case of a vehicle that has 
2 wheels, after December 31, 2014, and 
before January 1, 2022.’’. 
(3) CONFORMING AMENDMENTS REVERSED.— 
Section 30D(f), as amended by Public Law 117– 
169, is amended— 
(A) by inserting after paragraph (2) the 
following: 
‘‘(3) PROPERTY USED BY TAX-EXEMPT ENTITY.— 
In the case of a vehicle the use of which is described in 
paragraph (3) or (4) of section 50(b) and which is not 
subject to a lease, the person who sold such vehicle to the 
person or entity using such vehicle shall be treated as the 
taxpayer that placed such vehicle in service, but only if 
such person clearly discloses to such person or entity in 
a document the amount of any credit allowable under sub-
section (a) with respect to such vehicle (determined with-
out regard to subsection (c)). For purposes of subsection 
(c), property to which this paragraph applies shall be 
treated as of a character subject to an allowance for depre-
ciation.’’, and
(B) in paragraph (8), by striking ‘‘, includ-
ing any vehicle with respect to which the tax-
payer elects the application of subsection (g)’’. 
(h) TERMINATION
REPEALED.—Section 30D is 
amended by striking subsection (h). 
(i) ADDITIONAL CONFORMING AMENDMENTS.— 
(1) The heading of section 30D is amended by 
striking ‘‘CLEAN VEHICLE CREDIT’’ and inserting 
‘‘NEW
QUALIFIED
PLUG-IN
ELECTRIC
DRIVE 
MOTOR VEHICLES’’. 
(2) Section 30B is amended— 
(A) in subsection (h)(8) by inserting ‘‘, ex-
cept 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 elec-
tric drive motor vehicle’’, before the period at 
the end, and 
(B) by inserting after subsection (h) the 
following subsection: 
‘‘(i) PLUG-IN CONVERSION CREDIT.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the plug-in conversion credit determined under 
this subsection with respect to any motor vehicle 
which is converted to a qualified plug-in electric 
drive motor vehicle is 10 percent of so much of the
cost of the converting such vehicle as does not ex-
ceed $40,000. 
‘‘(2) QUALIFIED
PLUG-IN
ELECTRIC
DRIVE 
MOTOR VEHICLE.—For purposes of this subsection, 
the term ‘qualified plug-in electric drive motor vehi-
cle’ means any new qualified plug-in electric drive 
motor vehicle (as defined in section 30D, determined 
without regard to whether such vehicle is made by 
a manufacturer or whether the original use of such 
vehicle commences with the taxpayer). 
‘‘(3) CREDIT ALLOWED IN ADDITION TO OTHER 
CREDITS.—The credit allowed under this subsection 
shall be allowed with respect to a motor vehicle not-
withstanding whether a credit has been allowed with 
respect to such motor vehicle under this section 
(other than this subsection) in any preceding taxable 
year. 
‘‘(4) TERMINATION.—This subsection shall not 
apply to conversions made after December 31, 
2011.’’. 
(3) Section 38(b)(30) is amended by striking 
‘‘clean’’ and inserting ‘‘qualified plug-in electric 
drive motor’’. 
(4) Section 6213(g)(2) is amended by striking 
subparagraph (T).
(5) Section 6501(m) is amended by striking 
‘‘30D(f)(6)’’ and inserting ‘‘30D(e)(4)’’. 
(6) The table of sections for subpart B of part 
IV of subchapter A of chapter 1 is amended by 
striking the item relating to section 30D and insert-
ing after the item relating to section 30C the fol-
lowing item: 
‘‘Sec. 30D. New qualified plug-in electric drive motor vehicles.’’. 
(j) GROSS UP REPEALED.—Section 13401 of Public 
Law 117–169 is amended by striking subsection (j). 
(k) TRANSITION RULE REPEALED.—Section 13401 
of Public Law 117–169 is amended by striking subsection 
(l). 
(l) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graphs (2), (3), (4), and (5), the amendments made 
by this section shall apply to vehicles placed in serv-
ice after December 31, 2022. 
(2) FINAL ASSEMBLY.—The amendments made 
by subsection (b) shall apply to vehicles sold after 
August 16, 2022. 
(3) MANUFACTURER LIMITATION.—The amend-
ment made by subsections (d) and (e) shall apply to 
vehicles sold after December 31, 2022.
(4) TRANSFER OF CREDIT.—The amendments 
made by subsection (g) shall apply to vehicles placed 
in service after December 31, 2023. 
(5) TRANSITION RULE.—The amendment made 
by subsection (k) shall take effect as if included in 
Public Law 117–169. 
SEC. 233. REPEAL OF CREDIT FOR PREVIOUSLY-OWNED 
CLEAN VEHICLES. 
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 is amended by striking section 25E 
(and by striking the item relating to such section in the 
table of sections for such subpart). 
(b) CONFORMING AMENDMENT.—Section 6213(g)(2) 
is amended by striking subparagraph (U). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to vehicles acquired after Decem-
ber 31, 2022. 
SEC. 234. REPEAL OF CREDIT FOR QUALIFIED COMMER-
CIAL CLEAN VEHICLES. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 is amended by striking section 45W 
(and by striking the item relating to such section in the 
table of sections for such subpart). 
(b) CONFORMING AMENDMENTS.—