178 
discount rate such applicable Federal rate. For pur-
poses of the preceding sentence, the rate of interest 
on any financing shall be determined by treating in-
terest to the extent of government subsidies as not 
payable. 
‘‘(4) FAILURE TO FULLY REPAY.— 
‘‘(A) IN GENERAL.—To the extent that the 
requirements of paragraph (2)(D) are not met, 
then the taxpayer’s tax under this chapter for 
the taxable year in which such failure occurs 
shall be increased by an amount equal to the 
applicable portion of the credit under this sec-
tion with respect to such building, increased by 
an amount of interest for the period— 
‘‘(i) beginning with the due date for 
the filing of the return of tax imposed by 
chapter 1 for the 1st taxable year for 
which such credit was allowable, and 
‘‘(ii) ending with the due date for the 
taxable year in which such failure occurs, 
determined by using the underpayment rate and 
method under section 6621. 
‘‘(B) APPLICABLE
PORTION.—For pur-
poses of subparagraph (A), the term ‘applicable 
portion’ means the aggregate decrease in the 
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credits allowed to a taxpayer under section 38 
for all prior taxable years which would have re-
sulted if the eligible basis of the building were 
reduced by the amount of financing which does 
not meet requirements of paragraph (2)(D). 
‘‘(C) CERTAIN
RULES
TO
APPLY.—Rules 
similar to the rules of subparagraphs (A) and 
(D) of section 42(j)(4) shall apply for purposes 
of this subsection. 
‘‘(k) CERTIFICATIONS AND OTHER REPORTS TO SEC-
RETARY.— 
‘‘(1) CERTIFICATION
WITH
RESPECT
TO
1ST 
YEAR OF CREDIT PERIOD.—Following the close of 
the 1st taxable year in the credit period with respect 
to any qualified middle-income building, the tax-
payer shall certify to the Secretary (at such time 
and in such form and in such manner as the Sec-
retary prescribes)— 
‘‘(A) the taxable year, and calendar year, 
in which such building was placed in service, 
‘‘(B) the adjusted basis and eligible basis 
of such building as of the close of the 1st year 
of the credit period, 
‘‘(C) the maximum applicable percentage 
and qualified basis permitted to be taken into 
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account by the appropriate housing credit agen-
cy under subsection (h), and 
‘‘(D) such other information as the Sec-
retary may require. 
In the case of a failure to make the certification re-
quired by the preceding sentence on the date pre-
scribed therefor, unless it is shown that such failure 
is due to reasonable cause and not to willful neglect, 
no credit shall be allowable by reason of subsection 
(a) with respect to such building for any taxable 
year ending before such certification is made. 
‘‘(2) ANNUAL REPORTS TO THE SECRETARY.— 
The Secretary may require taxpayers to submit an 
information return (at such time and in such form 
and manner as the Secretary prescribes) for each 
taxable year setting forth— 
‘‘(A) the qualified basis for the taxable 
year of each qualified middle-income building of 
the taxpayer, 
‘‘(B) the information described in para-
graph (1)(C) for the taxable year, and 
‘‘(C) such other information as the Sec-
retary may require. 
The penalty under section 6652(j) shall apply to any 
failure to submit the return required by the Sec-
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retary under the preceding sentence on the date pre-
scribed therefor. 
‘‘(3) ANNUAL REPORTS FROM HOUSING CREDIT 
AGENCIES.—Each agency which allocates any hous-
ing credit amount to any building for any calendar 
year shall submit to the Secretary (at such time and 
in such manner as the Secretary shall prescribe) an 
annual report specifying— 
‘‘(A) the amount of housing credit amount 
allocated to each building for such year, 
‘‘(B) sufficient information to identify each 
such building and the taxpayer with respect 
thereto, and 
‘‘(C) such other information as the Sec-
retary may require. 
The penalty under section 6652(j) shall apply to any 
failure to submit the report required by the pre-
ceding sentence on the date prescribed therefor. 
‘‘(l) RESPONSIBILITIES OF HOUSING CREDIT AGEN-
CIES.— 
‘‘(1) PLANS
FOR
ALLOCATION
OF
CREDIT 
AMONG PROJECTS.— 
‘‘(A) IN GENERAL.—Notwithstanding any 
other provision of this section, the housing cred-
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it dollar amount with respect to any building 
shall be zero unless— 
‘‘(i) such amount was allocated pursu-
ant to a qualified allocation plan of the 
housing credit agency which is approved by 
the governmental unit (in accordance with 
rules similar to the rules of section 
42(m)(1)) of which such agency is a part, 
‘‘(ii) a comprehensive market study of 
the housing needs of middle-income indi-
viduals in the area to be served by the 
project is conducted before the credit allo-
cation is made and at the developer’s ex-
pense by a disinterested party who is ap-
proved by such agency, and 
‘‘(iii) a written explanation is available 
to the general public for any allocation of 
a housing credit dollar amount which is 
not made in accordance with established 
priorities and selection criteria of the hous-
ing credit agency. 
‘‘(B) QUALIFIED ALLOCATION PLAN.—For 
purposes of this paragraph, the term ‘qualified 
allocation plan’ means any plan— 
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‘‘(i) which sets forth selection criteria 
to be used to determine housing priorities 
of the housing credit agency which are ap-
propriate to local conditions, 
‘‘(ii) which also gives preference in al-
locating housing credit dollar amounts 
among selected projects to— 
‘‘(I) projects obligated to serve 
qualified tenants for the longest peri-
ods, 
‘‘(II) projects in areas with insuf-
ficient supply of housing affordable to 
median income households, 
‘‘(III) projects which target hous-
ing to tenants at a range of incomes 
between 60 and 100 percent of area 
median gross income, and 
‘‘(IV) projects located near tran-
sit hubs, and 
‘‘(iii) which provides a procedure that 
the agency (or an agent or other private 
contractor of such agency) will follow in 
monitoring for noncompliance with the 
provisions of this section and in notifying 
the Internal Revenue Service of such non-
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compliance which such agency becomes 
aware of and in monitoring for noncompli-
ance with habitability standards through 
regular site visits. 
‘‘(C) CERTAIN SELECTION CRITERIA MUST 
BE USED.—The selection criteria set forth in a 
qualified allocation plan must include— 
‘‘(i) project location, 
‘‘(ii) housing needs characteristics, 
‘‘(iii) project characteristics, including 
whether the project includes the use of ex-
isting housing as part of a community revi-
talization plan, 
‘‘(iv) sponsor characteristics, 
‘‘(v) tenant populations with special 
housing needs, 
‘‘(vi) tenant populations of individuals 
with children, 
‘‘(vii) projects intended for eventual 
tenant ownership, 
‘‘(viii) the energy efficiency of the 
project, and 
‘‘(ix) the historic nature of the 
project. 
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185 
‘‘(D) CERTAIN SELECTION CRITERIA PRO-
HIBITED.—The selection criteria set forth in a 
qualified allocation plan shall not include a re-
quirement of local approval or local contribu-
tions, either as a threshold qualification re-
quirement or as part of a point system to be 
considered for allocations of housing credit dol-
lar amount. 
‘‘(2) CREDIT ALLOCATED TO BUILDING NOT TO 
EXCEED AMOUNT NECESSARY TO ASSURE PROJECT 
FEASIBILITY.— 
‘‘(A) IN
GENERAL.—The housing credit 
dollar amount allocated to a project shall not 
exceed the amount the housing credit agency 
determines is necessary for the financial feasi-
bility of the project and its viability as a quali-
fied middle-income housing project throughout 
the credit period. 
‘‘(B) AGENCY
EVALUATION.—In making 
the determination under subparagraph (A), the 
housing credit agency shall consider— 
‘‘(i) the sources and uses of funds and 
the total financing planned for the project, 
‘‘(ii) any proceeds or receipts expected 
to be generated by reason of tax benefits, 
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186 
‘‘(iii) the percentage of the housing 
credit dollar amount used for project costs 
other than the cost of intermediaries, and 
‘‘(iv) the reasonableness of the devel-
opmental and operational costs of the 
project. 
Clause (iii) shall not be applied so as to impede 
the development of projects in hard-to-develop 
areas. Such a determination shall not be con-
strued to be a representation or warranty as to 
the feasibility or viability of the project. 
‘‘(C) DETERMINATION MADE WHEN CRED-
IT AMOUNT APPLIED FOR AND WHEN BUILDING 
PLACED IN SERVICE.— 
‘‘(i) IN
GENERAL.—A determination 
under subparagraph (A) shall be made as 
of each of the following times: 
‘‘(I) The application for the 
housing credit dollar amount. 
‘‘(II) The allocation of the hous-
ing credit dollar amount. 
‘‘(III) The date the building is 
placed in service. 
‘‘(ii) CERTIFICATION AS TO AMOUNT 
OF OTHER SUBSIDIES.—Prior to each de-
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termination under clause (i), the taxpayer 
shall certify to the housing credit agency 
the full extent of all Federal, State, and 
local subsidies which apply (or which the 
taxpayer expects to apply) with respect to 
the building. 
‘‘(m) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary or appropriate to 
carry out the purposes of this section, including— 
‘‘(1) regulations dealing with— 
‘‘(A) projects which include more than 1 
building or only a portion of a building, or 
‘‘(B) buildings which are placed in service 
in portions, 
‘‘(2) regulations providing for the application of 
this section to short taxable years, 
‘‘(3) regulations preventing the avoidance of the 
rules of this section, 
‘‘(4) regulations providing the opportunity for 
housing credit agencies to correct administrative er-
rors and omissions with respect to allocations and 
record keeping within a reasonable period after their 
discovery, taking into account the availability of reg-
ulations and other administrative guidance from the 
Secretary, and 
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‘‘(5) in consultation with the Secretary of 
Housing and Urban Development, regulations or 
guidance to promote uniform definitions and to 
streamline requirements for with respect to qualified 
middle-income buildings which receive funding from 
programs administrated by the Department of Hous-
ing and Urban Development, including programs au-
thorized by Native American Housing Assistance 
and Self-Determination Act of 1996.’’. 
(b) TREATMENT AS PART OF GENERAL BUSINESS 
CREDIT.—Section 38(b), as amended by the preceding 
provisions of this Act, is amended by striking ‘‘plus’’ at 
the end of paragraph (41), by striking the period at the 
end of paragraph (42) and inserting ‘‘, plus’’, and by add-
ing at the end the following new paragraph: 
‘‘(43) the middle-income housing credit deter-
mined under section 42A(a).’’. 
(c) REDUCTION
IN
BASIS.—Section 1016(a) is 
amended by striking ‘‘and’’ at the end of paragraph (37), 
by striking the period at the end of paragraph (38) and 
inserting ‘‘, and’’, and by adding at the end the following 
new paragraph: 
‘‘(39) to the extent provided in section 
42A(i)(8).’’. 
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(d) TREATMENT UNDER BASE EROSION MINIMUM 
TAX.—Section 59A(b)(4) is amended by redesignating 
subparagraphs (B) and (C) as subparagraphs (C) and 
(D), respectively, and by inserting after subparagraphs 
(A) the following new subparagraph: 
‘‘(B) the middle-income housing credit de-
termined under section 42A(a),’’. 
(e) CONFORMING AMENDMENTS RELATING TO LOW- 
INCOME HOUSING TAX CREDIT.—Section 42(n) is amend-
ed— 
(1) by striking ‘‘regulations’’ in the matter pre-
ceding paragraph (1), 
(2) by inserting ‘‘regulations’’ before ‘‘dealing 
with’’ in paragraph (1), 
(3) by inserting ‘‘regulations’’ before ‘‘pro-
viding’’ in paragraphs (2) and (4), 
(4) by inserting ‘‘regulations’’ before ‘‘pre-
venting’’ in paragraph (3), 
(5) by striking ‘‘and’’ at the end of paragraph 
(3), 
(6) by striking the period at the end of para-
graph (4) and inserting ‘‘, and’’, and 
(7) by adding at the end the following new 
paragraph: 
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‘‘(5) in consultation with the Secretary of 
Housing and Urban Development, regulations or 
guidance to promote uniform definitions and to 
streamline requirements for with respect to qualified 
low-income buildings which receive funding from 
programs administrated by the Department of Hous-
ing and Urban Development, including programs au-
thorized by Native American Housing Assistance 
and Self-Determination Act of 1996.’’. 
(f) CONFORMING AMENDMENTS.— 
(1) Section 45L(e) is amended by inserting ‘‘or 
42A’’ after ‘‘42’’. 
(2) Section 50(c)(3)(C) is amended by inserting 
‘‘or 42A’’ after ‘‘42’’. 
(3) Section 55(c)(1) is amended by inserting 
‘‘42A(j),’’ before ‘‘45(e)(11)(C)’’. 
(4) Subsections (i)(3)(C), (i)(6)(B)(i), and 
(k)(1) of section 469 are each amended by inserting 
‘‘or 42A’’ after ‘‘42’’. 
(5) The table of sections for subpart D of part 
IV of subchapter A of chapter 1 is amended by in-
serting after the item relating to section 42 the fol-
lowing new item: 
‘‘Sec. 42A. Middle-income housing credit.’’. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to buildings placed in service after 
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December 31, 2025, in taxable years ending after such 
date. 
Subtitle C—Affording the American 
Dream 
SEC. 13001. FIRST-TIME HOMEBUYER REFUNDABLE TAX 
CREDIT. 
(a) IN GENERAL.—Section 36 is amended to read as 
follows: 
‘‘SEC. 36. FIRST-TIME HOMEBUYER CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual who is a first-time homebuyer of a principal resi-
dence in the United States during a taxable year, there 
shall be allowed as a credit against the tax imposed by 
this subtitle for such taxable year an amount equal to 10 
percent of the purchase price of the residence. 
‘‘(b) LIMITATIONS.— 
‘‘(1) DOLLAR LIMITATION.— 
‘‘(A) IN GENERAL.—Except as otherwise 
provided in this paragraph, the credit allowed 
under subsection (a) shall not exceed $15,000. 
‘‘(B) MARRIED INDIVIDUALS FILING SEPA-
RATELY.—In the case of a married individual 
filing a separate return, subparagraph (A) shall 
be 
applied 
by 
substituting 
‘$7,500’ 
for 
‘$15,000’. 
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‘‘(C) OTHER INDIVIDUALS.—If 2 or more 
individuals who are not married purchase a 
principal residence, the amount of the credit al-
lowed under subsection (a) shall be allocated 
among such individuals in such manner as the 
Secretary may prescribe, except that the total 
amount of the credits allowed to all such indi-
viduals shall not exceed $15,000. 
‘‘(2) PHASEOUT BASED ON AREA MEDIAN IN-
COME.— 
‘‘(A) IN GENERAL.—The amount allowable 
as a credit under subsection (a) (determined 
without regard to this paragraph) shall be re-
duced (but not below zero) by the amount 
which bears the same ratio to the amount which 
is so allowable as— 
‘‘(i) the excess (if any) of— 
‘‘(I) the modified adjusted gross 
income of the taxpayer for the taxable 
year, over 
‘‘(II) 150 percent of the applica-
ble Area Medium Income, bears to 
‘‘(ii) 20 percent of the applicable Area 
Median Income. 
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‘‘(B) MODIFIED
ADJUSTED
GROSS
IN-
COME.—For purposes of subparagraph (A), the 
term ‘modified adjusted gross income’ means 
the adjusted gross income of the taxpayer for 
the taxable year increased by any amount ex-
cluded from gross income under section 911, 
931, or 933. 
‘‘(C) 
APPLICABLE
AREA
MEDIAN
IN-
COME.—For purposes of subparagraph (A), the 
term ‘applicable Area Median Income’ means 
the Area Median Income set by the Secretary of 
Housing and Urban Development with respect 
to— 
‘‘(i) the area in which the principal 
residence is located, 
‘‘(ii) the size of the household of the 
taxpayer, and 
‘‘(iii) the calendar year in which the 
principal residence is purchased. 
‘‘(D) REGULATIONS AND GUIDANCE.—The 
Secretary, after consultation with the Secretary 
of Housing and Urban Development, shall issue 
such regulations and guidance as are necessary 
to carry out the purposes of this subparagraph. 
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‘‘(3) LIMITATION BASED ON AREA MEDIAN PUR-
CHASE PRICE.— 
‘‘(A) IN GENERAL.—The amount allowable 
as a credit under subsection (a) (determined 
without regard to this paragraph) shall be re-
duced (but not below zero) by the amount 
which bears the same ratio to the amount which 
is so allowable as— 
‘‘(i) the excess (if any) of— 
‘‘(I) the purchase price of the 
principal residence, over 
‘‘(II) the amount which is equal 
to 110 percent of the area median 
purchase price, bears to 
‘‘(ii) the amount which is equal to 15 
percent of the area median purchase price. 
‘‘(B) AREA MEDIAN PURCHASE PRICE.— 
For purposes of this paragraph, the term ‘area 
median purchase price’ means the median pur-
chase price for a home in both the area and the 
calendar year in which the purchase of the prin-
cipal residence takes place. 
‘‘(C) REGULATIONS AND GUIDANCE.—The 
Secretary, after consultation with the Secretary 
of Housing and Urban Development, shall pro-
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mulgate such regulations and guidance as are 
necessary to carry out the purposes of this sub-
paragraph, including for determining the area 
median purchase price with respect to different 
localities. 
‘‘(4) INFLATION ADJUSTMENT.—In the case of 
any taxable year beginning in a calendar year after 
2026, each of the dollar amounts in paragraph (1) 
shall be increased by an amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2025’ for 
‘calendar year 2016’ in subparagraph (A)(ii) 
thereof. 
Any increase determined under the preceding sen-
tence shall be rounded to the nearest multiple of 
$100. 
‘‘(5) AGE LIMITATION.—No credit shall be al-
lowed under subsection (a) with respect to the pur-
chase of any residence unless the taxpayer has at-
tained age 18 as of the date of such purchase. In 
the case of any taxpayer who is married (within the 
meaning of section 7703), the taxpayer shall be 
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196 
treated as meeting the age requirement of the pre-
ceding sentence if the taxpayer or the taxpayer’s 
spouse meets such age requirement. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) 
FIRST-TIME
HOMEBUYER.—The 
term 
‘first-time homebuyer’ means any individual if such 
individual 
(and 
if 
married, 
such 
individual’s 
spouse)— 
‘‘(A) has no present ownership interest in 
any residence during the 3-year period ending 
on the date of the purchase of the principal res-
idence to which this section applies, and 
‘‘(B) has not taken the credit under this 
section in any other taxable year. 
‘‘(2) PRINCIPAL RESIDENCE.—The term ‘prin-
cipal residence’ has the same meaning as when used 
in section 121. 
‘‘(3) PURCHASE.— 
‘‘(A) IN GENERAL.—The term ‘purchase’ 
means any acquisition, but only if— 
‘‘(i) the property is not acquired from 
a person related to the person acquiring 
such property (or, if married, such individ-
ual’s spouse), 
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‘‘(ii) 
the 
acquisition 
is 
financed 
through a federally backed mortgage loan 
(as defined in section 4022 of the CARES 
Act), and 
‘‘(iii) the basis of the property in the 
hands of the person acquiring such prop-
erty is not determined— 
‘‘(I) in whole or in part by ref-
erence to the adjusted basis of such 
property in the hands of the person 
from whom acquired, or 
‘‘(II) under section 1014(a) (re-
lating to property acquired from a de-
cedent). 
‘‘(B) CONSTRUCTION.—A residence which 
is constructed by the taxpayer shall be treated 
as purchased by the taxpayer on the date the 
taxpayer first occupies such residence. 
‘‘(4) PURCHASE
PRICE.—The term ‘purchase 
price’ means the adjusted basis of the principal resi-
dence on the date such residence is purchased. 
‘‘(5) RELATED
PERSONS.—A person shall be 
treated as related to another person if the relation-
ship between such persons would result in the dis-
allowance of losses under section 267 or 707(b). 
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‘‘(d) EXCEPTIONS.—No credit under subsection (a) 
shall be allowed to any taxpayer for any taxable year with 
respect to the purchase of a residence if— 
‘‘(1) the taxpayer disposes of such residence (or 
such residence ceases to be the principal residence of 
the taxpayer (and, if married, the taxpayer’s 
spouse)) before the close of such taxable year, 
‘‘(2) a deduction under section 151 with respect 
to such taxpayer is allowable to another taxpayer for 
such taxable year, or 
‘‘(3) the taxpayer fails to attach to the return 
of tax for such taxable year a properly executed copy 
of the settlement statement used to complete such 
purchase. 
‘‘(e) REPORTING.—If the Secretary requires informa-
tion reporting under section 6045 by a person described 
in subsection (e)(2) thereof to verify the eligibility of tax-
payers for the credit allowable by this section, the excep-
tion provided by section 6045(e)(5) shall not apply. 
‘‘(f) RECAPTURE OF CREDIT.— 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, if, during any taxable year 
before the close of the recapture period, a taxpayer 
disposes of the principal residence with respect to 
which a credit was allowed under subsection (a) (or 
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199 
such residence ceases to be the principal residence of 
the taxpayer), the tax imposed by this chapter for 
such taxable year shall be increased by the recover-
able amount determined in paragraph (2). 
‘‘(2) RECOVERABLE AMOUNT.—For purposes of 
paragraph (1), the recoverable amount is the prod-
uct of— 
‘‘(A) 25 percent of the amount of the cred-
it allowed under subsection (a), multiplied by 
‘‘(B) the number of taxable years remain-
ing in the recapture period as of the beginning 
of the taxable year in which the taxpayer dis-
poses of the principal residence. 
‘‘(3) LIMITATION BASED ON GAIN.—In the case 
of the sale of the principal residence to a person who 
is not related to the taxpayer, the increase in tax de-
termined under paragraph (1) shall not exceed the 
amount of gain (if any) on such sale. Solely for pur-
poses of the preceding sentence, the adjusted basis 
of such residence shall be reduced by the amount of 
the credit allowed under subsection (a). 
‘‘(4) EXCEPTIONS.— 
‘‘(A) DEATH OF A TAXPAYER.—Paragraph 
(1) shall not apply to any taxable year ending 
after the date of the taxpayer’s death. 
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‘‘(B) INVOLUNTARY
CONVERSION.—Para-
graph (1) shall not apply in the case of a resi-
dence which is compulsorily or involuntarily 
converted (within the meaning of section 
1033(a)) if the taxpayer acquires a new prin-
cipal residence during the 2-year period begin-
ning on the date of the disposition or cessation 
referred to in paragraph (1). Paragraph (1) 
shall apply to such new principal residence dur-
ing the recapture period in the same manner as 
if such new principal residence were the con-
verted residence. 
‘‘(C) TRANSFERS BETWEEN SPOUSES OR 
INCIDENT TO DIVORCE.—In the case of a trans-
fer of a residence to which section 1041(a) ap-
plies— 
‘‘(i) paragraph (1) shall not apply to 
such transfer, and 
‘‘(ii) in the case of taxable years end-
ing after such transfer, paragraph (1) shall 
apply to the transferee in the same manner 
as if such transferee were the transferor 
(and shall not apply to the transferor). 
‘‘(D) SPECIAL
RULE
FOR
MEMBERS
OF 
THE ARMED FORCES, ETC.— 
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‘‘(i) IN GENERAL.—In the case of the 
disposition of a principal residence by an 
individual (or a cessation referred to in 
paragraph (1)) after the date of the enact-
ment of this section, in connection with 
Government orders received by such indi-
vidual, or such individual’s spouse, for 
qualified official extended duty service, 
paragraph (1) and subsection (d)(2) shall 
not apply to such disposition (or ces-
sation). 
‘‘(ii) QUALIFIED OFFICIAL EXTENDED 
DUTY SERVICE.—For purposes of this sec-
tion, the term ‘qualified official extended 
duty service’ means service on qualified of-
ficial extended duty as— 
‘‘(I) a member of the uniformed 
services, 
‘‘(II) a member of the Foreign 
Service of the United States, or 
‘‘(III) an employee of the intel-
ligence community. 
‘‘(iii) DEFINITIONS.—Any term used 
in this subparagraph which is also used in 
paragraph (9) of section 121(d) shall have 
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the same meaning as when used in such 
paragraph. 
‘‘(E) DISPOSITION OF RESIDENCE IN CON-
NECTION WITH CHANGE OF EMPLOYMENT.—In 
the case of the disposition of a principal resi-
dence by an individual (or a cessation referred 
to in paragraph (1)) after December 31, 2022, 
in connection with a change of employment 
which meets the conditions described in section 
217(c), paragraph (1) shall not apply to such 
disposition (or cessation). 
‘‘(5) JOINT RETURNS.—In the case of a credit 
allowed under subsection (a) with respect to a joint 
return, half of such credit shall be treated as having 
been allowed to each individual filing such return for 
purposes of this subsection. 
‘‘(6) RETURN REQUIREMENT.—If the tax im-
posed by this chapter for the taxable year is in-
creased under this subsection, the taxpayer shall, 
notwithstanding section 6012, be required to file a 
return with respect to the taxes imposed under this 
subtitle. 
‘‘(7) RECAPTURE
PERIOD.—For purposes of 
this subsection, the term ‘recapture period’ means 
the 4 taxable years beginning with the taxable year 
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in which the purchase of the principal residence for 
which a credit is allowed under subsection (a) was 
made. 
‘‘(g) ELECTION TO TREAT PURCHASE
IN PRIOR 
YEAR.—In the case of a purchase of a principal residence 
after December 31, 2026, a taxpayer may elect to treat 
such purchase as made on December 31 of the calendar 
year preceding such purchase for purposes of this section 
(other than subsections (b)(4), (c), and (h)). 
‘‘(h) TRANSFER OF CREDIT.— 
‘‘(1) IN GENERAL.—Subject to such regulations 
and other guidance as the Secretary determines nec-
essary, a taxpayer may elect that the credit which 
would (but for this subsection) be allowed to such 
taxpayer with respect to the purchase of a principal 
residence shall be allowed to the mortgage lender 
with respect to such purchase and not to such tax-
payer. 
‘‘(2) ELIGIBLE ENTITY.—For purposes of this 
subsection, the term ‘eligible entity’ means, with re-
spect to the purchase of the principal residence for 
which the credit is allowed under subsection (a), the 
mortgage lender which provides the mortgage to the 
taxpayer and has— 
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‘‘(A) registered with the Secretary for pur-
poses 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 purchase, disclosed to the taxpayer making 
such purchase— 
‘‘(i) the value of the credit allowed 
under subsection (a), and 
‘‘(ii) the amount provided by the 
mortgage lender to such taxpayer as a con-
dition of the election described in para-
graph (1). 
‘‘(C) not later than at the time of such 
purchase, made payment to such taxpayer 
(whether in cash or in the form of a partial 
payment or down payment for the purchase of 
such principal residence) in an amount equal to 
the credit otherwise allowable to such taxpayer, 
and 
‘‘(D) with respect to any incentive other-
wise available for taking a mortgage for which 
a credit is allowed under this section, including 
any incentive in the form of a rebate or dis-
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count provided by the mortgage lender, ensured 
that— 
‘‘(i) the availability or use of such in-
centive shall not limit the ability of a tax-
payer 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 para-
graph (1) shall be made by the taxpayer not later 
than the date on which the purchase of the principal 
residence with respect to which the credit under sub-
section (a) is allowed is made. 
‘‘(4) REVOCATION
OF
REGISTRATION.—Upon 
determination by the Secretary that a mortgage 
lender has failed to comply with the requirements 
described in paragraph (2), the Secretary may re-
voke the registration (as described in subparagraph 
(A) of such paragraph) of such mortgage lender. 
‘‘(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 in-
come of the taxpayer, and 
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‘‘(B) with respect to the mortgage lender, 
shall not be deductible under this title. 
‘‘(6) ADVANCE PAYMENT TO MORTGAGE LEND-
ERS.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
establish a program 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 mortgages 
issued by such entity for which an election de-
scribed in paragraph (1) has been made. 
‘‘(B) EXCESSIVE PAYMENTS.—Rules simi-
lar to the rules of section 6417(d)(6) shall 
apply for purposes of this paragraph. 
‘‘(C) TREATMENT
OF
ADVANCE
PAY-
MENTS.—For purposes of section 1324 of title 
31, United States Code, the payments 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. 
‘‘(7) RECAPTURE.—In the case of any taxpayer 
who has made an election described in paragraph (1) 
with respect to the purchase of a principal residence 
and received a payment described in paragraph 
(2)(C) from an eligible entity, such principal resi-
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dence shall be treated as a principal residence with 
respect to which a credit was allowed under sub-
section (a) for purposes of subsection (f).’’. 
(b) CERTAIN ERRORS WITH RESPECT TO FIRST- 
TIME HOMEBUYER TAX CREDIT TREATED AS MATHE-
MATICAL OR CLERICAL ERRORS.—Paragraph (2) of sec-
tion 6213(g), as amended by Public Law 119–21, is 
amended by striking ‘‘and’’ at the end of subparagraph 
(Z), by striking the period at the end of subparagraph 
(AA) and inserting ‘‘, and’’, and by inserting after sub-
paragraph (AA) the following new subparagraph: 
‘‘(BB) an entry on a return claiming the 
credit under section 36 if— 
‘‘(i) the Secretary obtains information 
from the person issuing the TIN of the 
taxpayer that indicates that the taxpayer 
does not meet the age requirement of sec-
tion 36(b)(4), 
‘‘(ii) information provided to the Sec-
retary by the taxpayer on an income tax 
return for at least one of the 2 preceding 
taxable years is inconsistent with eligibility 
for such credit, or 
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‘‘(iii) the taxpayer fails to attach to 
the return the form described in section 
36(d)(3).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to principal residences 
purchased after the date of the enactment of this Act. 
SEC. 13002. REFUNDABLE CREDIT FOR RENT PAID FOR 
PRINCIPAL RESIDENCE. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 is amended by inserting after sec-
tion 36B the following new section: 
‘‘SEC. 36C. RENTER TAX CREDIT. 
‘‘(a) IN GENERAL.—In the case of an individual who 
leases the individual’s principal residence (within the 
meaning of section 121) during the taxable year and who 
pays rent with respect to such residence in excess of 30 
percent of the taxpayer’s adjusted gross income for such 
taxable year, there shall be allowed as a credit against the 
tax imposed by this subtitle for such taxable year an 
amount equal to the applicable percentage of such excess. 
‘‘(b) CREDIT LIMITED BY 100 PERCENT OF SMALL 
AREA FAIR MARKET RENT.—Solely for purposes of deter-
mining the amount of the credit allowed under subsection 
(a) with respect to a residence for the taxable year, there 
shall not be taken into account rent in excess of an 
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amount equal to 100 percent of the small area fair market 
rent (including the utility allowance) applicable to the resi-
dence involved (as most recently published, as of the be-
ginning of the taxable year, by the Department of Housing 
and Urban Development). 
‘‘(c) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
‘‘(1) APPLICABLE
PERCENTAGE.—The term 
‘applicable percentage’ means the percentage deter-
mined in accordance with the following table: 
The applicable 
‘‘If the taxpayer’s adjusted gross 
income is: 
percentage is: 
Not over $25,000 ..............................................................
100 percent
Over $25,000, but not over $50,000 ................................
75 percent
Over $50,000, but not over $75,000 ................................
50 percent
Over $75,000, but not over $100,000 ..............................
25 percent
Over $100,000 ..................................................................
0 percent. 
‘‘(2) PARTIAL
YEAR
RESIDENCE.—The Sec-
retary shall prescribe such rules as are necessary to 
carry out the purposes of this section for taxpayers 
with respect to whom a residence is a principal resi-
dence for only a portion of the taxable year. 
‘‘(3) RENT.—The term ‘rent’ includes any 
amount paid for utilities of a type taken into ac-
count for purposes of determining the utility allow-
ance under section 42(g)(2)(B)(ii). 
‘‘(4) MARRIED INDIVIDUALS FILING SEPARATE 
RETURNS.—In the case of individuals who are mar-
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ried to each other, have the same principal resi-
dence, and do not file a joint return for the taxable 
year, the credit determined under this section with 
respect to each such individual shall be 50 percent 
of the amount of the credit which would be deter-
mined under this section if such individuals filed a 
joint return, unless such individuals agree on a dif-
ferent division of such credit (in such manner as the 
Secretary may provide) which does not aggregate to 
more 100 percent of such amount. 
‘‘(d) RECONCILIATION
OF CREDIT
AND ADVANCE 
PAYMENTS.—The amount of the credit allowed under this 
section for any taxable year shall be reduced (but not 
below zero) by the aggregate amount of any advance pay-
ments of such credit under section 7527B for such taxable 
year.’’. 
(b) ADVANCE PAYMENT.—Chapter 77 is amended by 
inserting after section 7527A the following new section: 
‘‘SEC. 7527B. ADVANCE PAYMENT OF RENTER TAX CREDIT. 
‘‘(a) IN GENERAL.—Not later than 6 months after 
the date of the enactment of this section, the Secretary 
shall establish a program for making advance payments 
of the credit allowed under section 36C on a monthly basis 
to any taxpayer who— 
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‘‘(1) the Secretary has determined will be al-
lowed such credit for the taxable year, and 
‘‘(2) has made an election under subsection (c). 
‘‘(b) AMOUNT OF ADVANCE PAYMENT.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the amount of the monthly advance payment of 
the credit provided to a taxpayer during the applica-
ble period shall be equal to the lesser of— 
‘‘(A) an amount equal to— 
‘‘(i) the amount of the credit which 
the Secretary has determined will be al-
lowed to such taxpayer under section 36C 
for the taxable year ending in such applica-
ble period, divided by 
‘‘(ii) 12, or 
‘‘(B) such other amount as is elected by 
the taxpayer. 
‘‘(2) APPLICABLE
PERIOD.—For purposes of 
this section, the term ‘applicable period’ means the 
12-month period from the month of July of the tax-
able year through the month of June of the subse-
quent taxable year. 
‘‘(c) ELECTION OF ADVANCE PAYMENT.—A taxpayer 
may elect to receive an advance payment of the credit al-
lowed under section 36C for any taxable year by including 
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such election on a timely filed return for the preceding 
taxable year. 
‘‘(d) INTERNAL
REVENUE
SERVICE
NOTIFICA-
TION.—The Internal Revenue Service shall take such 
steps as may be appropriate to ensure that taxpayers who 
are eligible to receive the credit under section 36C are 
aware of the availability of the advance payment of such 
credit under this section. 
‘‘(e) TREATMENT OF PAYMENTS.—For purposes of 
section 1324 of title 31, United States Code, the payments 
under this section shall be treated in the same manner 
as a refund due from a credit provision referred to in sub-
section (b)(2) of such section. 
‘‘(f) REGULATIONS.—The Secretary may prescribe 
such regulations or other guidance as may be necessary 
or appropriate to carry out the purposes this section.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 6211(b)(4)(A) is amended by insert-
ing ‘‘36C,’’ after ‘‘36B,’’. 
(2) Section 1324(b)(2) of title 31, United 
States Code, is amended by inserting ‘‘36C,’’ after 
‘‘36B,’’. 
(3) The table of sections for subpart C of part 
IV of subchapter A of chapter 1 is amended by in-
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serting after the item relating to section 36B the fol-
lowing new item: 
‘‘Sec. 36C. Renter tax credit.’’. 
(4) The table of sections for chapter 77 is 
amended by inserting after the item relating to sec-
tion 7527A the following new item: 
‘‘Sec. 7527B. Advance payment of renter tax credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to taxable years begin-
ning after December 31, 2025. 
(e) COMMUNITY OUTREACH.—Immediately upon the 
enactment of this Act, in addition to amounts otherwise 
available, there are appropriated out of any money in the 
Treasury not otherwise appropriated $50,000,000 to re-
main available until 5 years after the enactment of this 
Act for necessary expenses for the Internal Revenue Serv-
ice to support efforts to increase enrollment of eligible 
households in the Renter Tax Credit allowed under section 
36C of the Internal Revenue Code of 1986 (including the 
advance payment of such credit under section 7527B of 
such Code), including but not limited to program out-
reach, costs of data sharing arrangements, systems 
changes, forms changes, and related efforts, and efforts 
by Federal agencies to facilitate the cross-enrollment of 
beneficiaries of other programs in such Renter Tax Credit, 
including by establishing intergovernmental cooperative 
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agreements with States and local governments, tribal gov-
ernments, and possessions of the United States: Provided, 
that such amount shall be available in addition to any 
amounts otherwise available: Provided further, that these 
funds may be awarded by Federal agencies to State and 
local governments, tribal governments, and possessions of 
the United States, and private entities, including organiza-
tions dedicated to free tax return preparation. 
TITLE II—LOWERING ENERGY 
COSTS 
Subtitle 
A—Lowering 
Costs 
Through an All-of-the-above En-
ergy Policy 
SEC. 21001. CLEAN ENERGY PRODUCTION CREDIT. 
(a) 
RESTORATION
OF
PHASE-OUT.—Section 
45Y(d)(3) is amended by striking ‘‘calendar year 2032.’’ 
and inserting ‘‘means the later of— 
‘‘(A) the calendar year in which the Sec-
retary determines 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 emis-
sions from the production of electricity in the 
United States for calendar year 2022, or 
‘‘(B) 2032.’’. 
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215 
(b) RESTORATION OF CREDIT FOR WIND AND SOLAR 
FACILITIES.—Section 45Y(d) is amended— 
(1) in paragraph (1), by striking ‘‘Subject to 
paragraph (4), the amount’’ and inserting ‘‘The 
amount’’, and 
(2) by striking paragraph (4). 
(c) RESTORATION OF CREDIT FOR WIND AND SOLAR 
LEASING ARRANGEMENTS.—Section 45Y is amended by 
striking subsection (h). 
(d) REPEAL OF PROVISION FOR EXISTING STUD-
IES.—Section 45Y(b)(2)(C) is amended by striking clause 
(iii). 
(e) EFFECTIVE DATES.—The amendments made by 
this section shall take effect as if included in section 
70512 of Public Law 119–21. 
SEC. 21002. CLEAN ELECTRICITY INVESTMENT CREDIT. 
(a) REPEAL OF TERMINATION FOR WIND AND SOLAR 
FACILITIES.—Section 48E(e) is amended— 
(1) in paragraph (1), by striking ‘‘Subject to 
paragraph (4), the amount’’ and inserting ‘‘The 
amount’’, and 
(2) by striking paragraph (4). 
(b) RESTORATION OF CREDIT FOR EXPENDITURES 
FOR WIND AND SOLAR LEASING ARRANGEMENTS.— 
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(1) IN GENERAL.—Section 48E is amended by 
striking subsection (i) and by redesignating sub-
sections (j) and (k) as subsections (i) and (j), re-
spectively. 
(2) CONFORMING RULE REPEAL.—Section 50 is 
amended by striking subsection (e). 
(c) RESTORATION OF CREDIT FOR CERTAIN ENERGY 
PROPERTY.—Section 48(a)(2)(A)(ii) is amended by strik-
ing ‘‘0 percent’’ and inserting ‘‘2 percent’’. 
(d) EFFECTIVE DATES.—The amendments made by 
this section shall take effect as if included in section 
70513 of Public Law 119–21. 
SEC. 21003. ADVANCED MANUFACTURING PRODUCTION 
CREDIT. 
(a) REPEAL
OF INCLUSION
OF METALLURGICAL 
COAL AS AN APPLICABLE CRITICAL MINERAL.—Section 
45X(c)(6) is amended by striking subparagraph (R) and 
by redesignating subparagraphs (S) through (AA) as sub-
paragraphs (R) through (ZZ), respectively. 
(b) REPEAL OF TERMINATION FOR WIND ENERGY 
COMPONENTS.—Section 45X(b)(3) is amended by striking 
subparagraph (D). 
(c) CONFORMING AMENDMENTS.— 
(1) Section 45X(b)(1)(M) is amended by strik-
ing ‘‘(2.5 percent in the case of metallurgical coal)’’. 
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(2) The heading of section 45X(b)(3) is amend-
ed by striking ‘‘AND TERMINATION’’. 
(3) Section 45X(b)(3)(A) is amended by strik-
ing ‘‘subparagraphs (C) and (D)’’ and inserting 
‘‘subparagraph (C)’’. 
(4) The heading of section 45X(b)(3)(C) is 
amended by striking ‘‘OTHER THAN METALLURGICAL 
COAL’’. 
(5) The heading of section 45X(b)(3)(C)(ii) is 
amended by striking ‘‘OTHER THAN METALLURGICAL 
COAL’’. 
(6) Section 45X(b)(3) is amended by striking 
subparagraph (E). 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in section 
70514 of Public Law 119–21. 
SEC. 21004. REPEAL OF RESTRICTION ON THE EXTENSION 
OF ADVANCE ENERGY PROJECT CREDIT PRO-
GRAM. 
(a) IN GENERAL.—Section 48C(e)(3)(C) is amended 
by striking ‘‘shall not be increased’’ and inserting ‘‘shall 
be increased’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect as if included in section 
70515 of Public Law 119–21. 
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SEC. 21005. REVERSION OF CONSTRUCTION DATE FOR 
CLEAN HYDROGEN PRODUCTION CREDIT. 
(a) IN GENERAL.—Section 45V(c)(3)(C) is amended 
by striking ‘‘January 1, 2028’’ and inserting ‘‘January 1, 
2033’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect as if included in section 
70511 of Public Law 119–21. 
SEC. 21006. REVERSION OF TERMINATION FOR RESIDEN-
TIAL CLEAN ENERGY CREDIT. 
(a) IN GENERAL.—Section 25D(h) is amended by 
striking ‘‘with respect to any expenditures made after De-
cember 31, 2025’’ and inserting ‘‘to property placed in 
service after December 31, 2034’’. 
(b) CONFORMING AMENDMENT.—Section 25D(g) is 
amended by striking ‘‘and’’ at the end of paragraph (2), 
by striking ‘‘30 percent.’’ at the end of paragraph (3) and 
inserting ‘‘and before January 1, 2033, 30 percent,’’ and 
by adding at the end the following new paragraphs: 
‘‘(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.’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in section 
70506 of Public Law 119–21. 
SEC. 21007. REINSTATEMENT OF SPECIAL RATE FOR SUS-
TAINABLE AVIATION FUEL. 
(a) IN GENERAL.—Section 45Z(a)(3) is amended to 
read as follows: 
‘‘(3) SPECIAL RATE FOR SUSTAINABLE AVIA-
TION FUEL.— 
‘‘(A) IN GENERAL.—In the case of a trans-
portation 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 subparagraph (A), the term ‘sus-
tainable 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— 
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‘‘(I) ASTM International Stand-
ard D7566, or 
‘‘(II) the Fischer Tropsch provi-
sions of ASTM International Stand-
ard D1655, Annex A1, and 
‘‘(ii) is not derived from palm fatty 
acid distillates or petroleum.’’. 
(b) CONFORMING AMENDMENT.—Section 45Z(c)(1) 
is amended by striking ‘‘and the $1.00 amount in sub-
section (a)(2)(B)’’ and inserting ‘‘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)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in section 
70521 of Public Law 119–21. 
Subtitle B—Lowering Costs 
Through Energy Efficiency 
SEC. 22001. ENERGY EFFICIENT HOME IMPROVEMENT 
CREDIT. 
(a) RESTORING PRODUCT IDENTIFICATION NUMBER 
REQUIREMENT.—Section 25C(h) is amended to read as 
follows: 
‘‘(h) PRODUCT IDENTIFICATION NUMBER REQUIRE-
MENT.— 
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‘‘(1) IN GENERAL.—No credit shall be allowed 
under subsection (a) with respect to any item of 
specified property placed in service after December 
31, 2025, unless— 
‘‘(A) such item is produced by a qualified 
manufacturer, and 
‘‘(B) the taxpayer includes the qualified 
product identification 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 identification number’ means, with 
respect to any item of specified property, the prod-
uct identification number assigned to such item by 
the qualified manufacturer pursuant to the method-
ology referred to in paragraph (3). 
‘‘(3) QUALIFIED
MANUFACTURER.—For pur-
poses of this section, the term ‘qualified manufac-
turer’ 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 num-
ber to each item of specified property produced 
by such manufacturer utilizing a methodology 
that will ensure that such number (including 
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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 iden-
tification 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. 
‘‘(4) SPECIFIED PROPERTY.—For purposes of 
this subsection, the term ‘specified property’ means 
any qualified energy property and any property de-
scribed in subparagraph (B) or (C) of subsection 
(c)(3).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect as if included in the enact-
ment of section 70505 of Public Law 119–21. 
SEC. 22002. NEW ENERGY EFFICIENT HOME CREDIT. 
(a) IN GENERAL.—Section 45L(h) is amended by 
striking ‘‘acquired after June 30, 2026’’ and inserting 
‘‘acquired after December 31, 2032’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect as if included in section 
70508 of Public Law 119–21. 
SEC. 22003. REPEAL OF TERMINATION OF NEW ENERGY EF-
FICIENT COMMERCIAL BUILDINGS DEDUC-
TION. 
(a) IN GENERAL.—Section 179D is amended by 
striking subsection (i). 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect as if included in section 
70507 of Public Law 119–21. 
SEC. 22004. RESTORATION OF COST RECOVERY FOR EN-
ERGY PROPERTY. 
(a) IN
GENERAL.—Section 168(e)(3)(B)(vi) is 
amended— 
(1) by redesignating subclauses (I) and (II) as 
subclauses (II) and (III), respectively, and 
(2) by inserting before subclause (II) (as so re-
designated) the following subclause: 
‘‘(I) is described in subparagraph 
(A) of section 48(a)(3) (or would be 
so described if ‘solar or wind energy’ 
were substituted for ‘solar energy’ in 
clause (i) thereof and the last sen-
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tence of such section did not apply to 
such subparagraph),’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect as if included in section 
70509 of Public Law 119–21. 
Subtitle 
C—Lowering 
Costs 
for 
Electric Vehicles and Charging 
Infrastructure 
SEC. 23001. REVERSION OF TERMINATION DATE FOR PRE-
VIOUSLY-OWNED VEHICLE CREDIT. 
(a) IN GENERAL.—Section 25E(g) is amended by 
striking ‘‘acquired after September 30, 2025’’ and insert-
ing ‘‘acquired after December 31, 2032’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect as if included in section 
70501 of Public Law 119–21. 
SEC. 23002. REVERSION OF TERMINATION DATE FOR 
CLEAN VEHICLE CREDIT. 
(a) IN GENERAL.—Section 30D(h) is amended by 
striking ‘‘acquired after September 30, 2025’’ and insert-
ing ‘‘placed in service after December 31, 2032’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 30D(e)(1)(B) is amended by strik-
ing ‘‘and’’ at the end of clause (iii), by striking the 
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identification number assigned to such bicycle 
or tricycle by such manufacturer, 
‘‘(E) with respect to which the aggregate 
amount paid for such acquisition does not ex-
ceed $8,000, 
‘‘(F) which is a class 1 electric bicycle or 
tricycle, a class 2 electric bicycle or tricycle, or 
a class 3 electric bicycle or tricycle, 
‘‘(G) which is equipped with— 
‘‘(i) fully operable pedals, 
‘‘(ii) a saddle or seat for the rider, 
and 
‘‘(iii) an electric motor of less than 
750 watts which is designed to provide as-
sistance in propelling the bicycle or tricycle 
and— 
‘‘(I) does not provide such assist-
ance if the bicycle or tricycle is mov-
ing in excess of 20 miles per hour, or 
‘‘(II) if such motor only provides 
such assistance when the rider is ped-
aling, does not provide such assistance 
if the bicycle or tricycle is moving in 
excess of 28 miles per hour, 
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with respect to such qualified electric bicycle shall be 
allowed to the eligible entity specified in such elec-
tion (and not to such taxpayer). 
‘‘(2) ELIGIBLE ENTITY.—For purposes of this 
paragraph, the term ‘eligible entity’ means, with re-
spect to the qualified electric bicycle for which the 
credit is allowed under subsection (a), the retailer 
which sold such qualified electric bicycle to the tax-
payer and has— 
‘‘(A) subject to paragraph (4), registered 
with the Secretary for purposes of this para-
graph, at such time, and in such form and 
manner, as the Secretary may prescribe, 
‘‘(B) prior to the election described in 
paragraph (1) and no later than at the time of 
such sale, disclosed to the taxpayer purchasing 
such qualified electric bicycle— 
‘‘(i) the retail price, 
‘‘(ii) the value of the credit allowed or 
other incentive available for the purchase 
of such qualified electric bicycle, 
‘‘(iii) all fees associated with the pur-
chase of such qualified electric bicycle, and 
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