‘‘(vi) the basis of any qualified emerg-
ing energy property (as defined in section 
48D(b)(1)).’’. 
(3) The table of sections for subpart E of part 
IV of subchapter A of chapter 1 of such Code is 
amended by inserting after the item relating to sec-
tion 48C the following new item: 
‘‘Sec. 48D. Emerging energy technology credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service in 
taxable years beginning after the date of the enactment 
of this Act, under rules similar to the rules of section 
48(m) of the Internal Revenue Code of 1986 (as in effect 
on the day before the date of the enactment of the Rev-
enue Reconciliation Act of 1990). 
SEC. 4. PRODUCTION CREDIT FOR EMERGING ENERGY 
TECHNOLOGY. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 45U. ELECTRICITY PRODUCED FROM EMERGING EN-
ERGY TECHNOLOGY. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
the emerging energy technology production credit deter-
mined under this section for any taxable year beginning 
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in the credit period with respect to a qualified production 
facility of the taxpayer is an amount equal to the applica-
ble percentage of the lesser of— 
‘‘(1) the annual gross receipts of the taxpayer 
from the sale of electricity generated at the qualified 
production facility to an unrelated person (within 
the meaning of section 45(e)(4)) during such taxable 
year, or 
‘‘(2) the product of— 
‘‘(A) 150 percent of the national average 
wholesale price of a kilowatt hour of electricity 
in the calendar year which began 2 years prior 
to the calendar year in which such taxable year 
begins, multiplied by 
‘‘(B) the number of kilowatt hours of elec-
tricity produced at the qualified production fa-
cility and sold to an unrelated person (within 
the meaning of section 45(e)(4)) during such 
taxable year. 
‘‘(b) APPLICABLE PERCENTAGE.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the applicable percentage is— 
‘‘(A) in the case of a tier 1 facility, 60 per-
cent, 
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‘‘(B) in the case of a tier 2 facility, 45 per-
cent, 
‘‘(C) in the case of a tier 3 facility, 30 per-
cent, 
‘‘(D) in the case of a tier 4 facility, 15 per-
cent, and 
‘‘(E) in the case of any other facility, zero 
percent. 
‘‘(2) FACILITY TIERS.— 
‘‘(A) IN GENERAL.—For purposes of this 
section— 
‘‘(i) TIER 1 FACILITY.—The term ‘tier 
1 facility’ means any qualified production 
facility which generates electricity from an 
individual energy production technology— 
‘‘(I) 
described 
in 
subsection 
(d)(2)(A), and 
‘‘(II) for which the market pene-
tration level for the calendar year pre-
ceding the calendar year in which con-
struction of such facility began is less 
than 0.75 percent. 
‘‘(ii) TIER
FACILITY.—The term 
‘tier 2 facility’ has the same meaning given 
the term ‘tier 1 facility’ under clause (i), 
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except that ‘at least 0.75 percent but less 
than 1.5 percent’ shall be substituted for 
‘less than 0.75 percent’. 
‘‘(iii) TIER
FACILITY.—The term 
‘tier 3 facility’ has the same meaning given 
the term ‘tier 1 facility’ under clause (i), 
except that ‘at least 1.5 percent but less 
than 2.25 percent’ shall be substituted for 
‘less than 0.75 percent’. 
‘‘(iv) TIER
FACILITY.—The term 
‘tier 4 facility’ has the same meaning given 
the term ‘tier 1 facility’ under clause (i), 
except that ‘at least 2.25 percent but less 
than 3 percent’ shall be substituted for 
‘less than 0.75 percent’. 
‘‘(B) MARKET PENETRATION LEVEL.—For 
purposes of this paragraph, the term ‘market 
penetration level’ means, with respect to any 
calendar year, the amount equal to the greater 
of— 
‘‘(i) the amount (expressed as a per-
centage) equal to the quotient of— 
‘‘(I) the sum of all electricity pro-
duced (expressed in terawatt hours) 
from the individual energy production 
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technology by all qualified production 
facilities (as defined in subsection 
(d)(1), except that subparagraph (D) 
of such subsection shall not apply) 
during such calendar year (as deter-
mined by the Secretary on the basis of 
data reported by the Energy Informa-
tion Administration), divided by 
‘‘(II) the total domestic power 
sector 
electricity 
production 
(ex-
pressed in terawatt hours) for such 
calendar year, or 
‘‘(ii) the amount determined under 
this subparagraph for the preceding cal-
endar year. 
‘‘(C) CONSTRUCTION
BEGINS.—For pur-
poses of this subsection and section 48D, the 
determination as to whether a facility qualifies 
as a tier 1, 2, 3, or 4 facility shall be— 
‘‘(i) made during the calendar year in 
which construction of such facility begins, 
‘‘(ii) based on the determinations in-
cluded in the report described in subpara-
graph (D)(i)(II) with respect to such cal-
endar year, and 
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‘‘(iii) contingent on the taxpayer 
maintaining a continuous program of con-
struction or continuous efforts to advance 
towards completion of the facility. 
‘‘(D) GUIDANCE AND REPORTS.— 
‘‘(i) REPORTS.— 
‘‘(I) 
ESTIMATES.—During 
the 
month of December of the calendar 
year which includes the date of enact-
ment of this section, and during the 
month of December of each subse-
quent year, the Secretary of Energy 
(in consultation with the Secretary) 
shall publish an annual report which 
contains estimates with respect to the 
applicable market penetration level 
and tier for each individual energy 
production technology described in 
subsection (d)(2)(A) which has been 
used to generate electricity by any 
qualified production facility (as de-
fined in subsection (d)(1), except that 
subparagraph (D) of such subsection 
shall not apply) during such calendar 
year. 
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‘‘(II) FINAL
REPORT.—During 
the month of February of each cal-
endar year beginning after the date of 
enactment of this section, the Sec-
retary of Energy (in consultation with 
the Secretary) shall publish an annual 
report which provides the final deter-
mination with respect to the applica-
ble market penetration level and tier 
for each individual energy production 
technology described in subsection 
(d)(2)(A) which has been used to gen-
erate electricity by any qualified pro-
duction facility (as defined in sub-
section (d)(1), except that subpara-
graph (D) of such subsection shall not 
apply) during the preceding calendar 
year. 
‘‘(III) PREVIOUS YEARS.—In the 
case of a facility which began con-
struction during a calendar year pre-
ceding the calendar year which in-
cludes the date of enactment of this 
section, for purposes of determining 
whether such facility qualifies as a 
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tier 1, 2, 3, or 4 facility under sub-
paragraph (C), the Secretary of En-
ergy (in consultation with the Sec-
retary) shall include, as part of the 
first report described in subclause (II) 
which is published after the date of 
enactment of this section, the final de-
termination with respect to the appli-
cable market penetration level and tier 
for each individual energy production 
technology described in subsection 
(d)(2)(A) which has been used to gen-
erate electricity by any qualified pro-
duction facility (as defined in sub-
section (d)(1), except that subpara-
graph (D) of such subsection shall not 
apply) during such preceding calendar 
years as are determined by the Sec-
retary to be relevant for purposes of 
the administration of this section. 
‘‘(ii) CLASSIFICATION
OF
ENERGY 
PRODUCTION
TECHNOLOGY.—The 
Sec-
retary of Energy (in consultation with the 
Secretary) shall issue such regulations or 
other guidance (as well as any subsequent 
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updates to such regulations or guidance) 
as the Secretary of Energy determines nec-
essary or appropriate to ensure that any 
qualified production facility or technology 
used for the production of electricity is 
classified within a single energy production 
technology for purposes of subsection 
(d)(2). In the case of any technology used 
for the production of electricity which may 
be classified within 2 or more different cat-
egories of energy production technology 
under such subsection, the Secretary of 
Energy shall make the determination as to 
the correct category with respect to such 
technology as rapidly as possible, with such 
determinations to be included in any report 
described in clause (i). 
‘‘(iii) NATIONAL
AVERAGE
WHOLE-
SALE PRICE.—For purposes of determining 
the amount applicable under subsection 
(a)(2)(A) with respect to any calendar 
year, the Secretary of Energy (in consulta-
tion with the Secretary) shall include in 
any report described in clause (i) a deter-
mination with respect to the national aver-
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age wholesale price of a kilowatt hour of 
electricity during such calendar year. 
‘‘(c) CREDIT PERIOD.—For purposes of this section, 
the credit period with respect to any qualified production 
facility is the 10-year period beginning with the date the 
facility was originally placed in service. 
‘‘(d) QUALIFIED PRODUCTION FACILITY.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘qualified production facility’ means 
any electric generating facility which— 
‘‘(A) is located in the United States or a 
possession of the United States (as such terms 
are used in section 638), 
‘‘(B) generates electricity using energy 
production technology, 
‘‘(C) produces such electricity with an 
emissions rate less than 100g CO2-e per kWh, 
and 
‘‘(D) is placed in service after the date of 
enactment of this section. 
‘‘(2) ENERGY PRODUCTION TECHNOLOGY.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), each of the following shall be treated 
as an individual energy production technology: 
‘‘(i) Traditional nuclear fission. 
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‘‘(ii) Light water reactor-based ad-
vanced nuclear fission. 
‘‘(iii) Non-light water reactor-based 
advanced nuclear fission. 
‘‘(iv) Nuclear fusion. 
‘‘(v) 
Concentrating 
solar 
thermal 
power. 
‘‘(vi) Silicon photovoltaic. 
‘‘(vii) Cadmium telluride and copper 
indium gallium selenide solar. 
‘‘(viii) Emerging photovoltaics. 
‘‘(ix) Enhanced geothermal. 
‘‘(x) Hydrothermal. 
‘‘(xi) Marine energy. 
‘‘(xii) Fixed bottom offshore wind. 
‘‘(xiii) Floating offshore wind. 
‘‘(xiv) Traditional onshore wind. 
‘‘(xv) New onshore wind. 
‘‘(xvi) Coal. 
‘‘(xvii) Natural gas. 
‘‘(xviii) Petroleum. 
‘‘(xix) Open-loop biomass. 
‘‘(xx) Closed-loop biomass. 
‘‘(xxi) Hydropower. 
‘‘(B) ADDITIONAL SPECIFICATIONS.— 
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‘‘(i) NUCLEAR FISSION.— 
‘‘(I) TRADITIONAL NUCLEAR FIS-
SION.—For purposes of clause (i) of 
subparagraph (A), the term ‘tradi-
tional nuclear fission’ means any nu-
clear fission which is not described in 
subclause (II) or (III). 
‘‘(II) LIGHT
WATER
REACTOR- 
BASED
ADVANCED
NUCLEAR
FIS-
SION.—For purposes of clause (ii) of 
such subparagraph, the term ‘light 
water reactor-based advanced nuclear 
fission’ shall include small modular 
light water reactors. 
‘‘(III) NON-LIGHT WATER REAC-
TOR-BASED ADVANCED NUCLEAR FIS-
SION.—For purposes of clause (iii) of 
such subparagraph, the term ‘non- 
light water reactor-based advanced 
nuclear fission’ means any advanced 
nuclear fission which is not included 
under clause (ii) of such subpara-
graph. 
‘‘(ii) NUCLEAR
FUSION.—For pur-
poses of clause (iv) of subparagraph (A), 
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only nuclear fusion for which net power is 
produced from the fusion reaction shall be 
included. 
‘‘(iii) EMERGING
PHOTOVOLTAICS.— 
For purposes of clause (viii) of such sub-
paragraph, 
the 
term 
‘emerging 
photovoltaics’ 
includes 
perovskite-based 
and perovskite-enhanced solar, quantum 
dots, organic photovoltaics, multi-junction 
tandem devices, and any photovoltaic solar 
technology not included under clause (vii) 
of such subparagraph. 
‘‘(iv) MARINE
ENERGY.—For pur-
poses of clause (xi) of such subparagraph, 
the term ‘marine energy’ has the same 
meaning given such term under section 
632 of the Energy Independence and Secu-
rity Act of 2007 (42 U.S.C. 17211). 
‘‘(v) TRADITIONAL ONSHORE WIND.— 
For purposes of clause (xiv) of subpara-
graph (A), the term ‘traditional onshore 
wind’ means any energy production tech-
nology of a design which is the same as or 
substantially similar to wind technology 
that has achieved megawatt scale or larger 
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deployment in the United States as of the 
date of enactment of this section. 
‘‘(vi) NEW ONSHORE WIND.—For pur-
poses of clause (xv) of such subparagraph, 
the term ‘new onshore wind’ means any 
energy production technology which is not 
included in clause (xiv) of such subpara-
graph. 
‘‘(vii) 
OPEN-LOOP
BIOMASS.—For 
purposes of clause (xix) of such subpara-
graph, the term ‘open-loop biomass’ has 
the same meaning given such term under 
section 45(c)(3). 
‘‘(viii) CLOSED-LOOP
BIOMASS.—For 
purposes of clause (xx) of such subpara-
graph, the term ‘closed-loop biomass’ has 
the same meaning given such term under 
section 45(c)(2). 
‘‘(3) EMISSIONS RATE.— 
‘‘(A) EXCLUSIONS.—For purposes of para-
graph (1)(C), the emissions rate shall not in-
clude— 
‘‘(i) any emissions which are captured 
using carbon capture equipment, provided 
that any carbon oxide captured using such 
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