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‘‘(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 qualified elec-
tric bicycles sold by such entity for which an 
election described in paragraph (1) has been 
made. 
‘‘(B) EXCESSIVE PAYMENTS.—Rules simi-
lar to the rules of section 6417(c)(7) shall apply 
for purposes of this paragraph. 
‘‘(8) RETAILER.—For purposes of this sub-
section, the term ‘retailer’ means a person engaged 
in the trade or business of selling qualified electric 
bicycles in a State, the District of Columbia, the 
Commonwealth of Puerto Rico, any other territory 
or possession of the United States, an Indian tribal 
government (as defined in section 48(e)(4)(F)(ii)), 
or any Alaska Native Corporation (as defined in sec-
tion 3 of the Alaska Native Claims Settlement Act 
(43 U.S.C. 1602(m)). 
‘‘(h) TERMINATION.—This section shall not apply to 
bicycles placed in service after December 31, 2025.’’. 
(b) CONFORMING AMENDMENTS.— 
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(1) Section 1016(a) is amended by striking 
‘‘and’’ at the end of paragraph (38), by striking the 
period at the end of paragraph (39) and inserting ‘‘, 
and’’, and by adding at the end the following new 
paragraph: 
‘‘(40) to the extent provided in section 
36E(f)(1).’’. 
(2) Section 6211(b)(4)(A) of such Code is 
amended by inserting ‘‘36E by reason of subsection 
(c)(2) thereof,’’ before ‘‘32,’’. 
(3) Section 6213(g)(2), as amended by the pre-
ceding provisions of this Act, is amended— 
(A) in subparagraph (U), by striking 
‘‘and’’ at the end, 
(B) in subparagraph (V), by striking the 
period at the end and inserting ‘‘, and’’, and 
(C) by adding at the end the following: 
‘‘(W) an omission of a correct vehicle iden-
tification number required under section 36E(d) 
(relating to electric bicycles credit) to be in-
cluded on a return.’’. 
(4) Section 6501(m) is amended by inserting 
‘‘36E(f)(4),’’ after ‘‘35(g)(11),’’. 
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(5) Section 1324(b)(2) of title 31, United 
States Code, is amended by inserting ‘‘36E,’’ after 
‘‘36D,’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart B of part IV of subchapter A of chapter 1 
is amended by adding at the end the following new item: 
‘‘Sec. 36E. Electric bicycles.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2021, in taxable years ending after such 
date. 
PART 5—INVESTMENT IN THE GREEN 
WORKFORCE AND MANUFACTURING 
SEC. 136501. EXTENSION OF THE ADVANCED ENERGY 
PROJECT CREDIT. 
(a) EXTENSION OF CREDIT.—Section 48C is amend-
ed by redesignating subsection (e) as subsection (f) and 
by inserting after subsection (d) the following new sub-
section: 
‘‘(e) ADDITIONAL ALLOCATIONS.— 
‘‘(1) IN GENERAL.—Not later than 270 days 
after the date of enactment of this subsection, the 
Secretary shall establish a program to consider and 
award certifications for qualified investments eligible 
for credits under this section to qualifying advanced 
energy project sponsors. 
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‘‘(2) ANNUAL LIMITATION.— 
‘‘(A) IN GENERAL.—The amount of credits 
that may be allocated under this subsection 
during any calendar year shall not exceed the 
annual credit limitation with respect to such 
year. 
‘‘(B) ANNUAL CREDIT LIMITATION.— 
‘‘(i) IN
GENERAL.—For purposes of 
this subsection, the term ‘annual credit 
limitation’ means $5,000,000,000 for each 
of calendar years 2022 through 2023, 
$1,875,000,000 for each of calendar years 
2024 through 2031, and zero thereafter. 
‘‘(ii) AMOUNT SET ASIDE FOR AUTO-
MOTIVE COMMUNITIES.— 
‘‘(I) IN GENERAL.—For purposes 
of clause (i), $800,000,000 of the an-
nual credit limitation for each of cal-
endar years 2022 through 2023 and 
$300,000,000 for each of calendar 
years 2024 through 2031 shall be al-
located to qualified investments lo-
cated within automotive communities. 
‘‘(II) 
AUTOMOTIVE
COMMU-
NITIES.—For purposes of this clause, 
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the term ‘automotive communities’ 
means a census tract and any directly 
adjoining census tract, including a no- 
population census tract, that has ex-
perienced major job losses in the auto-
motive manufacturing sector since 
January 1, 1994, as determined by 
the Secretary. 
‘‘(iii) AMOUNT
SET
ASIDE
FOR
EN-
ERGY
COMMUNITIES.—For purposes of 
clause (i), $800,000,000 of the annual 
credit limitation for each of calendar years 
2022 through 2023 and $300,000,000 for 
each of calendar years 2024 through 2031 
shall be allocated to qualified investments 
located within energy communities (as de-
fined in section 45(b)(11)(B)). 
‘‘(C) CARRYOVER
OF
UNUSED
LIMITA-
TION.—If the annual credit limitation for any 
calendar year exceeds the aggregate amount 
designated for such year under this subsection, 
such limitation for the succeeding calendar year 
shall be increased by the amount of such excess. 
No amount may be carried under the preceding 
sentence to any calendar year after 2036. 
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‘‘(3) CERTIFICATIONS.— 
‘‘(A) APPLICATION REQUIREMENT.—Each 
applicant for certification under this subsection 
shall submit an application at such time and 
containing such information as the Secretary 
may require. 
‘‘(B) TIME TO MEET CRITERIA FOR CER-
TIFICATION.—Each applicant for certification 
shall have 2 years from the date of acceptance 
by the Secretary of the application during 
which to provide to the Secretary evidence that 
the requirements of the certification have been 
met. 
‘‘(C) PERIOD OF ISSUANCE.—An applicant 
which receives a certification shall have 2 years 
from the date of issuance of the certification in 
order to place the project in service and to no-
tify the Secretary that such project has been so 
placed in service, and if such project is not 
placed in service (and the Secretary so notified) 
by that time period, then the certification shall 
no longer be valid. If any certification is re-
voked under this subparagraph, the amount of 
the annual credit limitation under paragraph 
(2) for the calendar year in which such certifi-
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cation is revoked shall be increased by the 
amount of the credit with respect to such re-
voked certification. 
‘‘(4) SELECTION CRITERIA.—Selection criteria 
similar to those in subsection (d)(3) shall apply, ex-
cept that in determining designations under this 
subsection, the Secretary shall— 
‘‘(A) in addition to the factors described in 
subsection (d)(3)(B), take into consideration 
which projects— 
‘‘(i) will provide the greatest net im-
pact in avoiding or reducing anthropogenic 
emissions of greenhouse gases, as deter-
mined by the Secretary, 
‘‘(ii) will provide the greatest domestic 
job creation (both direct and indirect) dur-
ing the credit period, 
‘‘(iii) will provide the greatest job cre-
ation within the vicinity of the project, par-
ticularly with respect to— 
‘‘(I) low-income communities (as 
described in section 45D(e)), and 
‘‘(II) dislocated workers who 
were previously employed in manufac-
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turing, coal power plants, or coal min-
ing, and 
‘‘(iv) will provide the greatest job cre-
ation in areas with a population that is at 
risk of experiencing higher or more adverse 
human health or environmental effects and 
a significant portion of such population is 
comprised of communities of color, low-in-
come communities, Tribal and Indigenous 
communities, or individuals formerly em-
ployed in the fossil fuel industry, and 
‘‘(B) give the highest priority to projects 
which— 
‘‘(i) manufacture (other than pri-
marily assembly of components) property 
described in a subclause of subsection 
(c)(1)(A)(i) (or components thereof), and 
‘‘(ii) have the greatest potential for 
commercial deployment of new applica-
tions. 
‘‘(5) DISCLOSURE OF ALLOCATIONS.—The Sec-
retary shall, upon allocating a credit under this sub-
section, publicly disclose the identity of the appli-
cant, the amount of the credit with respect to such 
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applicant, and the project location for which such 
credit was allocated. 
‘‘(6) CREDIT CONDITIONED UPON WAGE AND 
APPRENTICESHIP REQUIREMENTS.— 
‘‘(A) BASE RATE.—For purposes of alloca-
tions under this subsection, the amount of the 
credit determined under subsection (a) shall be 
determined by substituting ‘6 percent’ for ‘30 
percent’. 
‘‘(B) ALTERNATIVE RATE.—In the case of 
any project which satisfies the requirements of 
paragraphs (7) and (8), the amount of the cred-
it determined under subsection (a) (after appli-
cation of subparagraph (A)) shall be equal to 
such amount multiplied by 5. 
‘‘(7) PREVAILING WAGE REQUIREMENTS.— 
‘‘(A) IN GENERAL.—The requirements de-
scribed in this paragraph with respect to a 
project are that the taxpayer shall ensure that 
any laborers and mechanics employed by con-
tractors and subcontractors in the re-equipping, 
expansion, or establishment of a manufacturing 
facility shall be paid wages at rates not less 
than the prevailing rates for construction, alter-
ation, or repair of a similar character in the lo-
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cality as most recently determined by the Sec-
retary of Labor, in accordance with subchapter 
IV of chapter 31 of title 40, United States 
Code. 
‘‘(B) CORRECTION AND PENALTY RELATED 
TO
FAILURE
TO
SATISFY
WAGE
REQUIRE-
MENTS.—In the case of any taxpayer which 
fails to satisfy the requirement under subpara-
graph (A) with respect to any project— 
‘‘(i) rules similar to the rules of 
clauses 
(i) 
through 
(iv) 
of 
section 
45(b)(7)(B) shall apply, and 
‘‘(ii) if the failure to satisfy the re-
quirement under subparagraph (A) is not 
corrected pursuant to the rules described 
in clause (i), the certification with respect 
to the re-equipping, expansion, or estab-
lishment of a manufacturing facility shall 
no longer be valid. 
‘‘(8) APPRENTICESHIP REQUIREMENTS.—Rules 
similar to the rules of section 45(b)(8) shall apply.’’. 
(b) MODIFICATION OF QUALIFYING ADVANCED EN-
ERGY PROJECTS.— 
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(1) INCLUSION OF WATER AS A RENEWABLE 
RESOURCE.—Section 48C(c)(1)(A)(i)(I) is amended 
by inserting ‘‘water,’’ after ‘‘sun,’’. 
(2) 
ENERGY
STORAGE
SYSTEMS.—Section 
48C(c)(1)(A)(i)(II) is amended by striking ‘‘an en-
ergy storage system for use with electric or hybrid- 
electric motor vehicles’’ and inserting ‘‘energy stor-
age systems and components’’. 
(3) MODIFICATION OF QUALIFYING ELECTRIC 
GRID
PROPERTY.—Section 48C(c)(1)(A)(i)(III) is 
amended to read as follows: 
‘‘(III) electric grid modernization 
equipment or components,’’. 
(4) USE
OF
CAPTURED
CARBON.—Section 
48C(c)(1)(A)(i)(IV) is amended by striking ‘‘seques-
ter’’ and insert ‘‘use or sequester’’. 
(5) ELECTRIC VEHICLES AND BICYCLES.—Sec-
tion 48C(c)(1)(A)(i)(VI) is amended— 
(A) by striking ‘‘new qualified plug-in elec-
tric drive motor vehicles (as defined by section 
30D)’’ and inserting ‘‘vehicles described in sec-
tions 36C and 45Y, and bicycles described in 
section 36E’’, and 
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(B) and striking ‘‘and power control units’’ 
and inserting ‘‘power control units, and equip-
ment used for charging or refueling’’. 
(6) PROPERTY
FOR
PRODUCTION
OF
HYDRO-
GEN.—Section 48C(c)(1)(A)(i) is amended by strik-
ing ‘‘or’’ at the end of subclause (VI), by redesig-
nating subclause (VII) as subclause (VIII), an by in-
serting after subclause (VI) the following new sub-
clause: 
‘‘(VII) property designed to be 
used to produce qualified clean hydro-
gen (as defined in section 45X), or’’. 
(7) RECYCLING OF ADVANCED ENERGY PROP-
ERTY.—Section 48C(c)(1) is amended by adding at 
the end the following new subparagraph: 
‘‘(C) SPECIAL RULE FOR CERTAIN RECY-
CLING
FACILITIES.—A facility which recycles 
batteries or similar energy storage property de-
scribed in subparagraph (A)(i) shall be treated 
as part of a manufacturing facility described in 
such subparagraph.’’. 
(c) DENIAL OF DOUBLE BENEFIT.—48C(f), as re-
designated by this section, is amended by striking ‘‘or 
48B’’ and inserting ‘‘48B, 48F, 45Q, or 45X’’. 
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(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on January 1, 2022. 
SEC. 136502. LABOR COSTS OF INSTALLING MECHANICAL 
INSULATION PROPERTY. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1, as amended by the preceding pro-
visions of this Act, is further amended by adding at the 
end the following new section: 
‘‘SEC. 45Z. LABOR COSTS OF INSTALLING MECHANICAL IN-
SULATION PROPERTY. 
‘‘(a) IN GENERAL.—For purposes of section 38, the 
mechanical insulation labor costs credit determined under 
this section for any taxable year is an amount equal to 
2 percent of the mechanical insulation labor costs paid or 
incurred by the taxpayer during such taxable year. 
‘‘(b) MECHANICAL INSULATION LABOR COSTS.—For 
purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘mechanical insu-
lation labor costs’ means the labor cost of installing 
mechanical insulation property with respect to a me-
chanical system referred to in paragraph (2)(A) 
which was originally placed in service not less than 
1 year before the date on which such mechanical in-
sulation property is installed. 
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‘‘(2) MECHANICAL
INSULATION
PROPERTY.— 
The term ‘mechanical insulation property’ means in-
sulation materials, and facings and accessory prod-
ucts installed in connection to such insulation mate-
rials— 
‘‘(A) placed in service in connection with a 
mechanical system which— 
‘‘(i) is located in the United States, 
‘‘(ii) is of a character subject to an al-
lowance for depreciation, and 
‘‘(iii) meets the requirements of sec-
tion 434.403 of title 10, Code of Federal 
Regulations (as in effect on the date of en-
actment of this section), and 
‘‘(B) which result in a reduction in energy 
loss from the mechanical system which is great-
er than the expected reduction from the instal-
lation of insulation materials which meet the 
minimum requirements of Reference Standard 
90.1 (as defined in section 179D(c)(2)). 
‘‘(c) 
WAGE
AND
APPRENTICESHIP
REQUIRE-
MENTS.— 
‘‘(1) IN GENERAL.—In the case of any project 
which meets the prevailing wage and apprenticeship 
requirements of this subsection, the amount of credit 
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determined under subsection (a) shall be multiplied 
by 5. 
‘‘(2) WAGE REQUIREMENTS.—Rules similar to 
the rules of section 45(b)(7)(A) and clauses (i) 
through (iv) of section 45(b)(7)(B) shall apply. 
‘‘(3) APPRENTICESHIP REQUIREMENTS.—Rules 
similar to the rules of section 45(b)(8) shall apply. 
‘‘(d) TERMINATION.—This section shall not apply to 
mechanical insulation labor costs paid or incurred after 
December 31, 2025.’’. 
(b) CREDIT ALLOWED AS PART OF GENERAL BUSI-
NESS CREDIT.—Section 38(b), as amended by the pre-
ceding provisions of this Act, is further amended by strik-
ing ‘‘plus’’ at the end of paragraph (36), by striking the 
period at the end of paragraph (37) and inserting ‘‘, plus’’, 
and by adding at the end the following new paragraph: 
‘‘(38) the mechanical insulation labor costs 
credit determined under section 45Z(a).’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 280C is amended by adding at the 
end the following new subsection: 
‘‘(i) MECHANICAL INSULATION LABOR COSTS CRED-
IT.— 
‘‘(1) IN GENERAL.—No deduction shall be al-
lowed for that portion of the mechanical insulation 
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labor costs (as defined in section 45Z(b)) otherwise 
allowable as deduction for the taxable year which is 
equal to the amount of the credit determined for 
such taxable year under section 45Z(a). 
‘‘(2) SIMILAR
RULE
WHERE
TAXPAYER
CAP-
ITALIZES RATHER THAN DEDUCTS EXPENSES.—If— 
‘‘(A) the amount of the credit determined 
for the taxable year under section 45Z(a), ex-
ceeds 
‘‘(B) the amount of allowable as a deduc-
tion for such taxable year for mechanical insu-
lation labor costs (determined without regard to 
paragraph (1)), 
the amount chargeable to capital account for the 
taxable year for such costs shall be reduced by the 
amount of such excess.’’. 
(2) The table of sections for subpart D of part 
IV of subchapter A of chapter 1, as amended by the 
preceding provisions of this Act, is further amended 
by adding at the end the following new item: 
‘‘Sec. 45Z. Labor costs of installing mechanical insulation property.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred after 
December 31, 2021, in taxable years ending after such 
date. 
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SEC. 136503. ADVANCED MANUFACTURING INVESTMENT 
CREDIT. 
(a) IN GENERAL.—Subpart E of part IV of sub-
chapter A of chapter 1 is amended by inserting after sec-
tion 48D the following new section: 
‘‘SEC. 
48E. 
ADVANCED 
MANUFACTURING 
INVESTMENT 
CREDIT. 
‘‘(a) ESTABLISHMENT OF CREDIT.— 
‘‘(1) IN GENERAL.—For purposes of section 46, 
the advanced manufacturing investment credit for 
any taxable year is an amount equal to the applica-
ble percentage of the qualified investment for such 
taxable year with respect to any advanced manufac-
turing facility. 
‘‘(2) APPLICABLE PERCENTAGE.— 
‘‘(A) BASE AMOUNT.—In the case of any 
advanced manufacturing facility which does not 
satisfy the requirements described in clauses (i) 
and (ii) of subparagraph (B), the applicable 
percentage shall be 5 percent. 
‘‘(B) ALTERNATIVE AMOUNT.—In the case 
of any advanced manufacturing facility which— 
‘‘(i) subject to subparagraph (B) of 
subsection (c)(2), satisfies the require-
ments under subparagraph (A) of such 
subsection, and 
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‘‘(ii) with respect to the construction 
of such facility, satisfies the apprenticeship 
requirements under subsection (c)(3), 
the applicable percentage shall be 25 percent. 
‘‘(b) QUALIFIED INVESTMENT.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a)(1), the qualified investment with respect to any 
advanced manufacturing facility for any taxable year 
is the basis of any qualified property placed in serv-
ice by the taxpayer during such taxable year which 
is part of an advanced manufacturing facility. 
‘‘(2) QUALIFIED PROPERTY.— 
‘‘(A) IN GENERAL.—For purposes of this 
subsection, the term ‘qualified property’ means 
property— 
‘‘(i) which is tangible property, 
‘‘(ii) with respect to which deprecia-
tion (or amortization in lieu of deprecia-
tion) is allowable, 
‘‘(iii) which is— 
‘‘(I) constructed, reconstructed, 
or erected by the taxpayer, or 
‘‘(II) acquired by the taxpayer if 
the original use of such property com-
mences with the taxpayer, and 
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‘‘(iv) which is integral to the operation 
of the advanced manufacturing facility. 
‘‘(B) BUILDINGS AND STRUCTURAL COM-
PONENTS.— 
‘‘(i) IN GENERAL.—The term ‘quali-
fied property’ includes any building or its 
structural components which otherwise sat-
isfy the requirements under subparagraph 
(A). 
‘‘(ii) EXCEPTION.—Clause (i) shall 
not apply with respect to a building or por-
tion of a building used for offices, adminis-
trative services or other functions unre-
lated to manufacturing. 
‘‘(3) ADVANCED MANUFACTURING FACILITY.— 
For purposes of this subpart, the term ‘advanced 
manufacturing facility’ means a facility for which 
the primary purpose is the manufacturing of semi-
conductors or semiconductor tooling equipment. 
‘‘(4) COORDINATION
WITH
REHABILITATION 
CREDIT.—The qualified investment with respect to 
any advanced manufacturing facility for any taxable 
year shall not include that portion of the basis of 
any property which is attributable to qualified reha-
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bilitation 
expenditures 
(as 
defined 
in 
section 
47(c)(2)). 
‘‘(c) SPECIAL RULES.— 
‘‘(1) CERTAIN PROGRESS EXPENDITURE RULES 
MADE APPLICABLE.—Rules similar to the rules of 
subsections (c)(4) and (d) of section 46 (as in effect 
on the day before the date of the enactment of the 
Revenue Reconciliation Act of 1990) shall apply for 
purposes of subsection (a). 
‘‘(2) WAGE REQUIREMENTS.— 
‘‘(A) IN GENERAL.—The requirements de-
scribed in this subparagraph with respect to 
any facility are that the taxpayer shall ensure 
that any laborers and mechanics employed by 
contractors and subcontractors in— 
‘‘(i) the construction of such facility, 
and 
‘‘(ii) for any year during the 5-year 
period beginning on the date the facility is 
originally placed in service, the alteration 
or repair of such facility, 
shall be paid wages at rates not less than the 
prevailing rates for construction, alteration, or 
repair of a similar character in the locality as 
most recently determined by the Secretary of 
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Labor, in accordance with subchapter IV of 
chapter 31 of title 40, United States Code. 
‘‘(B) CORRECTION AND PENALTY RELATED 
TO
FAILURE
TO
SATISFY
WAGE
REQUIRE-
MENTS.—Rules similar to the rules of clauses 
(i) through (iv) of section 45(b)(7)(B) shall 
apply. 
‘‘(C) RECAPTURE.—The Secretary shall, 
by regulations or other guidance, provide for re-
capturing the benefit of any increase in the 
credit allowed under paragraph (2)(B) of sub-
section (a), with respect to any project which 
does not satisfy the requirements under sub-
paragraph (A) (after application of subpara-
graph (B)) for the period described in clause 
(ii) of subparagraph (A) (but which does not 
cease to be investment credit property within 
the meaning of section 50(a)). The period and 
percentage of such recapture shall be deter-
mined under rules similar to the rules of section 
50(a). 
‘‘(3) APPRENTICESHIP REQUIREMENTS.—Rules 
similar to the rules of section 45(b)(8) shall apply. 
‘‘(4) REGULATIONS AND GUIDANCE.—The Sec-
retary shall issue such regulations or other guidance 
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as the Secretary determines necessary or appropriate 
to carry out the purposes of this section, including 
regulations or other guidance which provides for re-
quirements for recordkeeping or information report-
ing for purposes of establishing the requirements of 
this section. 
‘‘(d) TERMINATION OF CREDIT.—The credit allowed 
under this section shall not apply to facilities or property 
the construction of which begins after December 31, 
2025.’’. 
(b) ELECTIVE
PAYMENT
OF
CREDIT.—Section 
6417(b), as amended by the preceding provisions of this 
Act, is amended by adding at the end the following new 
paragraph: 
‘‘(10) The advanced manufacturing investment 
credit determined under section 48E.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 46 is amended— 
(A) by striking ‘‘and’’ at the end of para-
graph (6), 
(B) by striking the period at the end of 
paragraph (7) and inserting ‘‘, and’’, and 
(C) by adding at the end the following new 
paragraph: 
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‘‘(8) the advanced manufacturing investment 
credit.’’. 
(2) Section 49(a)(1)(C) is amended— 
(A) by striking ‘‘and’’ at the end of clause 
(vi), 
(B) by striking the period at the end of 
clause (vii) and inserting ‘‘, and’’, and 
(C) by adding at the end the following new 
clause: 
‘‘(viii) the basis of any qualified prop-
erty (as defined in section 48E(b)(2)) 
which is part of an advanced manufac-
turing facility.’’. 
(3) Section 50(a)(2)(E) is amended by striking 
‘‘or 48D(e)’’ and inserting ‘‘48D(e), or 48E(c)(1)’’. 
(4) The table of sections for subpart E of part 
IV of subchapter A of chapter 1 is amended by in-
serting after the item relating to section 48D the 
following new item: 
‘‘48E. Advanced manufacturing investment credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2021 and, for any property the construction 
of which begins prior to January 1, 2022, only to the ex-
tent of the basis thereof attributable to the construction, 
reconstruction, or erection after December 31, 2021. 
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SEC. 136504. ADVANCED MANUFACTURING PRODUCTION 
CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 is amended by adding at the end 
the following new section: 
‘‘SEC. 45AA. ADVANCED MANUFACTURING PRODUCTION 
CREDIT. 
‘‘(a) IN GENERAL.— 
‘‘(1) ALLOWANCE OF CREDIT.—For purposes of 
section 38, the advanced manufacturing production 
credit for any taxable year is an amount equal to the 
sum of the credit amounts determined under sub-
section (b) with respect to each eligible component 
which is— 
‘‘(A) produced by such taxpayer, and 
‘‘(B) during the taxable year, sold by the 
taxpayer to an unrelated person. 
‘‘(2) PRODUCTION
AND
SALE
MUST
BE
IN 
TRADE OR BUSINESS.—Any eligible component pro-
duced and sold by the taxpayer shall be taken into 
account only if the production and sale described in 
paragraph (1) is in a trade or business of the tax-
payer. 
‘‘(3) UNRELATED
PERSON.—For purposes of 
this subsection, a taxpayer shall be treated as selling 
components to an unrelated person if such compo-
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nent is sold to such person by a person related to 
the taxpayer. 
‘‘(b) CREDIT AMOUNT.— 
‘‘(1) IN GENERAL.—Subject to paragraph (3), 
the amount determined under this subsection with 
respect to any eligible component, including any eli-
gible component it incorporates, shall be equal to— 
‘‘(A) in the case of a thin photovoltaic cell 
or a crystalline photovoltaic cell, an amount 
equal to the product of— 
‘‘(i) 4 cents, multiplied by 
‘‘(ii) the capacity of such cell (ex-
pressed on a per direct current watt basis), 
‘‘(B) in the case of a photovoltaic wafer, 
$12 per square meter, 
‘‘(C) in the case of solar grade polysilicon, 
$3 per kilogram, 
‘‘(D) in the case of a solar module, an 
amount equal to the product of— 
‘‘(i) 7 cents, multiplied by 
‘‘(ii) the capacity of such module (ex-
pressed on a per direct current watt basis), 
and 
‘‘(E) in the case of a wind energy compo-
nent, an amount equal to the product of— 
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‘‘(i) the applicable amount with re-
spect to such component, multiplied by 
‘‘(ii) the total rated capacity (ex-
pressed on a per watt basis) of the com-
pleted wind turbine for which such compo-
nent is designed. 
‘‘(2) APPLICABLE AMOUNT.—For purposes of 
paragraph (1)(E), the applicable amount with re-
spect to any wind energy component shall be— 
‘‘(A) in the case of a blade, 2 cents, 
‘‘(B) in the case of a nacelle, 5 cents, 
‘‘(C) in the case of a tower, 3 cents, and 
‘‘(D) in the case of an offshore wind foun-
dation— 
‘‘(i) which uses a fixed platform, 2 
cents, or 
‘‘(ii) which uses a floating platform, 4 
cents. 
‘‘(3) PHASE OUT.— 
‘‘(A) IN GENERAL.—In the case of any eli-
gible component sold after December 31, 2026, 
the amount determined under this subsection 
with respect to such component shall be equal 
to the product of— 
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‘‘(i) any solar energy component, and 
‘‘(ii) any wind energy component. 
‘‘(B) APPLICATION
WITH
OTHER
CRED-
ITS.—The term ‘eligible component’ shall not 
include any property which is produced at a fa-
cility if the basis of any property which is part 
of such facility is taken into account for pur-
poses of the credit allowed under section 48C or 
48E after the date of the enactment of this sec-
tion. 
‘‘(2) SOLAR ENERGY COMPONENT.— 
‘‘(A) IN GENERAL.—The term ‘solar en-
ergy component’ means any of the following: 
‘‘(i) Solar modules. 
‘‘(ii) Photovoltaic cells. 
‘‘(iii) Photovoltaic wafers. 
‘‘(iv) Solar grade polysilicon. 
‘‘(B) ASSOCIATED DEFINITIONS.— 
‘‘(i) PHOTOVOLTAIC CELL.—The term 
‘photovoltaic cell’ means the smallest semi-
conductor element of a solar module which 
performs the immediate conversion of light 
into electricity. 
‘‘(ii) PHOTOVOLTAIC
WAFER.—The 
term ‘photovoltaic wafer’ means a thin 
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slice, sheet, or layer of semiconductor ma-
terial of at least 240 square centimeters 
produced by a single manufacturer— 
‘‘(I) either— 
‘‘(aa) directly from molten 
or 
evaporated 
solar 
grade 
polysilicon or deposition of solar 
grade thin film semiconductor 
photon absorber layer, or 
‘‘(bb) through formation of 
an ingot from molten polysilicon 
and subsequent slicing, and 
‘‘(II) which comprises the sub-
strate or absorber layer of one or 
more photovoltaic cells. 
‘‘(iii) SOLAR GRADE POLYSILICON.— 
The term ‘solar grade polysilicon’ means 
silicon which is— 
‘‘(I) suitable for use in photo-
voltaic manufacturing, and 
‘‘(II) purified to a minimum pu-
rity of 99.999999 percent silicon by 
mass. 
‘‘(iv) SOLAR
MODULE.—The term 
‘solar module’ means the connection and 
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lamination of photovoltaic cells into an en-
vironmentally protected final assembly 
which is— 
‘‘(I) suitable to generate elec-
tricity when exposed to sunlight, and 
‘‘(II) ready for installation with-
out an additional manufacturing proc-
ess. 
‘‘(3) WIND ENERGY COMPONENT.— 
‘‘(A) IN GENERAL.—The term ‘wind en-
ergy component’ means any of the following: 
‘‘(i) Blades. 
‘‘(ii) Nacelles. 
‘‘(iii) Towers. 
‘‘(iv) Offshore wind foundations. 
‘‘(B) ASSOCIATED DEFINITIONS.— 
‘‘(i) BLADE.—The term ‘blade’ means 
an airfoil-shaped blade which is responsible 
for converting wind energy to low-speed ro-
tational energy. 
‘‘(ii) 
OFFSHORE
WIND
FOUNDA-
TION.—The term ‘offshore wind founda-
tion’ means the component which secures 
an offshore wind tower and any above- 
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water turbine components to the seafloor 
using— 
‘‘(I) fixed platforms, such as off-
shore wind monopiles, jackets, or 
gravity-based foundations, or 
‘‘(II) floating platforms and asso-
ciated mooring systems. 
‘‘(iii) NACELLE.—The term ‘nacelle’ 
means the assembly of the drivetrain and 
other tower-top components of a wind tur-
bine (with the exception of the blades and 
the hub) within their cover housing. 
‘‘(iv) 
TOWER.—The 
term 
‘tower’ 
means a tubular or lattice structure which 
supports the nacelle and rotor of a wind 
turbine. 
‘‘(d) SPECIAL RULES.—In this section— 
‘‘(1) RELATED
PERSONS.—Persons shall be 
treated as related to each other if such persons 
would be treated as a single employer under the reg-
ulations prescribed under section 52(b). 
‘‘(2) ONLY
PRODUCTION
IN
THE
UNITED 
STATES
TAKEN
INTO
ACCOUNT.—Sales shall be 
taken into account under this section only with re-
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spect to eligible components the production of which 
is within— 
‘‘(A) the United States (within the mean-
ing of section 638(1)), or 
‘‘(B) a possession of the United States 
(within the meaning of section 638(2)). 
‘‘(3) PASS-THRU IN THE CASE OF ESTATES AND 
TRUSTS.—Under regulations prescribed by the Sec-
retary, rules similar to the rules of subsection (d) of 
section 52 shall apply. 
‘‘(4) CREDIT EQUAL TO 10 PERCENT OF THE 
CREDIT
AMOUNT
FOR
UNION
FACILITIES.—In the 
case of a facility operating under a collective bar-
gaining agreement negotiated by an employee orga-
nization (as defined in section 412(c)(4)), deter-
mined 
in 
a 
manner 
consistent 
with 
section 
7701(a)(46), for purposes of determining the 
amount of the credit under subsection (a) with re-
spect to eligible components produced by such facil-
ity, the applicable amount under subsection (b) of 
such subsection shall be increased by an amount 
equal to 10 percent of the amount otherwise in ef-
fect under such subsection. 
‘‘(5) SALE
OF
INTEGRATED
COMPONENTS.— 
For purposes of this section, a person shall be treat-
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ed as having sold an eligible component if such com-
ponent is integrated, incorporated, or assembled into 
another eligible component which is sold to an unre-
lated person.’’. 
(b) ELECTIVE
PAYMENT
OF
CREDIT.—Section 
6417(b), as amended by the preceding provisions of this 
Act, is amended by adding at the end the following new 
paragraph: 
‘‘(11) The credit for advanced manufacturing 
production under section 45AA.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 38(b) of the Internal Revenue Code 
of 1986 is amended— 
(A) in paragraph (37), by striking ‘‘plus’’ 
at the end, 
(B) in paragraph (38), by striking the pe-
riod at the end and inserting ‘‘, plus’’, and 
(C) by adding at the end the following new 
paragraph: 
‘‘(39) the advanced manufacturing production 
credit determined under section 45AA(a).’’. 
(2) The table of sections for subpart D of part 
IV of subchapter A of chapter 1 is amended by add-
ing at the end the following new item: 
‘‘Sec. 45AA. Advanced manufacturing production credit.’’. 
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(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to components produced and sold 
after December 31, 2021. 
PART 6—ENVIRONMENTAL JUSTICE 
SEC. 136601. QUALIFIED ENVIRONMENTAL JUSTICE PRO-
GRAM CREDIT. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1, as amended by the preceding pro-
visions of this Act, is amended by inserting after section 
36F the following new section: 
‘‘SEC. 36G. QUALIFIED ENVIRONMENTAL JUSTICE PRO-
GRAMS. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli-
gible educational institution, there shall be allowed as a 
credit against the tax imposed by this subtitle for any tax-
able year an amount equal to the applicable percentage 
of the amounts paid or incurred by such taxpayer during 
such taxable year which are necessary for a qualified envi-
ronmental justice program. 
‘‘(b) QUALIFIED ENVIRONMENTAL JUSTICE PRO-
GRAM.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified envi-
ronmental justice program’ means a program con-
ducted by one or more eligible educational institu-
tions that is designed to address, or improve data 
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about, qualified environmental stressors for the pri-
mary purpose of improving, or facilitating the im-
provement of, health and economic outcomes of indi-
viduals residing in low-income areas or areas that 
experience, or are at risk of experiencing, multiple 
exposures to qualified environmental stressors. 
‘‘(2) QUALIFIED ENVIRONMENTAL STRESSOR.— 
The term ‘qualified environmental stressor’ means, 
with respect to an area, a contamination of the air, 
water, soil, or food with respect to such area or a 
change relative to historical norms of the weather 
conditions of such area, including— 
‘‘(A) toxic pollutants (such as lead, pes-
ticides, or fine particulate matter) in air, soil, 
food, or water, 
‘‘(B) high rates of asthma prevalence and 
incidence, and 
‘‘(C) such other adverse human health or 
environmental effects as are identified by the 
Secretary. 
‘‘(c) ELIGIBLE EDUCATIONAL INSTITUTION.—For 
purposes of this section, the term ‘eligible educational in-
stitution’ means an institution of higher education (as 
such term is defined in section 101 or 102(c) of the High-
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er Education Act of 1965) that is eligible to participate 
in a program under title IV of such Act. 
‘‘(d) APPLICABLE PERCENTAGE.—For purposes of 
this section, the term ‘applicable percentage’ means— 
‘‘(1) in the case of a program involving material 
participation of faculty and students of an institu-
tion described in section 371(a) of the Higher Edu-
cation Act of 1965, 30 percent, and 
‘‘(2) in all other cases, 20 percent. 
‘‘(e) CREDIT ALLOCATION.— 
‘‘(1) ALLOCATION.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
allocate credit dollar amounts under this section 
to eligible educational institutions, for qualified 
environmental justice programs, that— 
‘‘(i) submit applications at such time 
and in such manner as the Secretary may 
provide, and 
‘‘(ii) are selected by the Secretary 
under subparagraph (B). 
‘‘(B) SELECTION
CRITERIA.—The Sec-
retary shall select applications on the basis of 
the following criteria: 
‘‘(i) The extent of participation of fac-
ulty and students of an institution de-
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scribed in section 371(a) of the Higher 
Education Act of 1965. 
‘‘(ii) The extent of the expected effect 
on the health or economic outcomes of in-
dividuals residing in areas within the 
United States that are low-income areas or 
areas that experience, or are at risk of ex-
periencing, multiple exposures to qualified 
environmental stressors. 
‘‘(iii) The creation or significant ex-
pansion of qualified environmental justice 
programs. 
‘‘(2) LIMITATIONS.— 
‘‘(A) IN
GENERAL.—The amount of the 
credit determined under this section for any 
taxable year to any eligible educational institu-
tion for any qualified environmental justice pro-
gram shall not exceed the excess of— 
‘‘(i) the credit dollar amount allocated 
to such institution for such program under 
this subsection, over 
‘‘(ii) the credits previously claimed by 
such institution for such program under 
this section. 
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‘‘(B) 
FIVE-YEAR
LIMITATION.—No 
amounts paid or incurred after the 5-year pe-
riod beginning on the date a credit dollar 
amount is allocated to an eligible educational 
institution for a qualified environmental justice 
program shall be taken into account under sub-
section (a) with respect to such institution for 
such program. 
‘‘(C) ALLOCATION LIMITATION.—The total 
amount of credits that may be allocated under 
the program shall not exceed— 
‘‘(i) $1,000,000,000 for each of tax-
able years 2022 through 2031, and 
‘‘(ii) $0 for each subsequent year. 
‘‘(D) CARRYOVER
OF
UNUSED
LIMITA-
TION.—If the annual credit limitation for any 
calendar year exceeds the aggregate amount 
designated for such year under this subsection, 
such limitation for the succeeding calendar year 
shall be increased by the amount of such excess. 
No amount may be carried under the preceding 
sentence to any calendar year after 2036. 
‘‘(f) REQUIREMENTS.— 
‘‘(1) IN GENERAL.—An eligible educational in-
stitution that has been allocated credit dollar 
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amounts under this section for a qualified environ-
mental justice project for a taxable year shall— 
‘‘(A) make publicly available the applica-
tion submitted to the Secretary under sub-
section (e) with respect to such project, and 
‘‘(B) submit an annual report to the Sec-
retary that describes the amounts paid or in-
curred for, and expected impact of, such 
project. 
‘‘(2) FAILURE TO COMPLY.—In the case of an 
eligible educations institution that has failed to com-
ply with the requirements of this subsection, the 
credit dollar amount allocated to such institution 
under this section is deemed to be $0. 
‘‘(g) PUBLIC DISCLOSURE.—The Secretary, upon 
making an allocation of credit dollar amounts under this 
section, shall publicly disclose— 
‘‘(1) the identity of the eligible educational in-
stitution receiving the allocation, and 
‘‘(2) the amount of such allocation.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 6211(b)(4)(A), as amended by the 
preceding provisions of this Act, is amended by in-
serting ‘‘36G,’’ after ‘‘36F,’’. 
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(2) Paragraph (2) of section 1324(b) of title 
31, United States Code, as amended by the pre-
ceding provisions of this Act, is amended by insert-
ing ‘‘36G,’’ after ‘‘36F,’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for subpart C of part IV of subchapter A of chapter 1, 
as amended by the preceding provisions of this Act, is 
amended by inserting after the item relating to section 
36F the following new item: 
‘‘Sec. 36G. Qualified environmental justice programs.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on January 1, 2022. 
PART 7—SUPERFUND 
SEC. 136701. REINSTATEMENT OF SUPERFUND. 
(a) HAZARDOUS SUBSTANCE SUPERFUND FINANC-
ING RATE.— 
(1) EXTENSION.—Section 4611(e) is amended 
to read as follows: 
‘‘(e) APPLICATION
OF
HAZARDOUS
SUBSTANCE 
SUPERFUND FINANCING RATE.—The Hazardous Sub-
stance Superfund financing rate under this section shall 
apply after June 30, 2022.’’. 
(2) ADJUSTMENT FOR INFLATION.— 
(A) Section 4611(c)(2)(A) is amended by 
striking ‘‘9.7 cents’’ and inserting ‘‘16.4 cents’’. 
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(B) Section 4611(c) is amended by adding 
at the end the following: 
‘‘(3) ADJUSTMENT FOR INFLATION.— 
‘‘(A) IN GENERAL.—In the case of a year 
beginning after 2022, the amount in paragraph 
(2)(A) shall be increased by an amount equal 
to— 
‘‘(i) such amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year, determined by substituting 
‘calendar year 2021’ for ‘calendar year 
2016’ in subparagraph (A)(ii) thereof. 
‘‘(B) ROUNDING.—If any amount as ad-
justed under subparagraph (A) is not a multiple 
of $0.01, such amount shall be rounded to the 
next lowest multiple of $0.01.’’. 
(b) 
AUTHORITY
FOR
ADVANCES.—Section 
9507(d)(3)(B) is amended by striking ‘‘December 31, 
1995’’ and inserting ‘‘December 31, 2031’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on July 1, 2022. 
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PART 8—INCENTIVES FOR CLEAN ELECTRICITY 
AND CLEAN TRANSPORTATION 
SEC. 136801. CLEAN ELECTRICITY PRODUCTION CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 is amended by adding at the end 
the following new section: 
‘‘SEC. 45BB. CLEAN ELECTRICITY PRODUCTION CREDIT. 
‘‘(a) AMOUNT OF CREDIT.— 
‘‘(1) IN GENERAL.—For purposes of section 38, 
the clean electricity production credit for any taxable 
year is an amount equal to the product of— 
‘‘(A) the kilowatt hours of electricity— 
‘‘(i) produced by the taxpayer at a 
qualified facility, and 
‘‘(ii)(I) sold by the taxpayer to an un-
related person during the taxable year, or 
‘‘(II) in the case of a qualified facility 
which is equipped with a metering device 
which is owned and operated by an unre-
lated person, sold, consumed, or stored by 
the taxpayer during the taxable year, mul-
tiplied by 
‘‘(B) the applicable amount with respect to 
such qualified facility. 
‘‘(2) APPLICABLE AMOUNT.— 
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‘‘(A) BASE
AMOUNT.—Subject to sub-
section (g)(7), in the case of any qualified facil-
ity which is not described in clause (i) of sub-
paragraph (B) and does not satisfy the require-
ments described in clause (ii) of such subpara-
graph, the applicable amount shall be 0.3 cents. 
‘‘(B) ALTERNATIVE AMOUNT.—Subject to 
subsection (g)(7), in the case of any qualified 
facility— 
‘‘(i) with a maximum net output of 
less than 1 megawatt, or 
‘‘(ii) which— 
‘‘(I) satisfies the requirements 
under paragraph (9) of subsection (g), 
and 
‘‘(II) with respect to the con-
struction of such facility, satisfies the 
requirements under paragraph (10) of 
subsection (g), 
the applicable amount shall be 1.5 cents. 
‘‘(b) QUALIFIED FACILITY.— 
‘‘(1) IN GENERAL.— 
‘‘(A) DEFINITION.—Subject to subpara-
graphs (B), (C), and (D), the term ‘qualified 
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facility’ means a facility owned by the tax-
payer— 
‘‘(i) which is used for the generation 
of electricity, 
‘‘(ii) the construction of which begins 
after December 31, 2026, and 
‘‘(iii) for which the greenhouse gas 
emissions rate (as determined under para-
graph (2)) is not greater than zero. 
‘‘(B) 10-YEAR PRODUCTION CREDIT.—For 
purposes of this section, a facility shall only be 
treated as a qualified facility during the 10-year 
period beginning on the date the facility was 
originally placed in service. 
‘‘(C) EXPANSION
OF
FACILITY; INCRE-
MENTAL PRODUCTION.—The term ‘qualified fa-
cility’ shall include either of the following in 
connection with a facility described in subpara-
graph (A) (without regard to clause (ii) of such 
subparagraph) the construction of which begins 
before January 1, 2027, but only to the extent 
of the increased amount of electricity produced 
at the facility by reason of the following: 
‘‘(i) A new unit the construction of 
which begins after December 31, 2026. 
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‘‘(ii) Any additions of capacity the 
construction of which begins after Decem-
ber 31, 2026. 
‘‘(D) COORDINATION WITH OTHER CRED-
ITS.—The term ‘qualified facility’ shall not in-
clude any facility for which a credit determined 
under section 45, 45J, 45Q, 48, 48A, or 48F 
is allowed under section 38 for the taxable year 
or any prior taxable year. 
‘‘(2) GREENHOUSE GAS EMISSIONS RATE.— 
‘‘(A) IN GENERAL.—For purposes of this 
section, the term ‘greenhouse gas emissions 
rate’ means the amount of greenhouse gases 
emitted into the atmosphere by a facility in the 
production of electricity, expressed as grams of 
CO2e per KWh. 
‘‘(B) FUEL
COMBUSTION
AND
GASIFI-
CATION.—In the case of a facility which pro-
duces electricity through combustion or gasifi-
cation, the greenhouse gas emissions rate for 
such facility shall be equal to the net rate of 
greenhouse gases emitted into the atmosphere 
by such facility (taking into account lifecycle 
greenhouse gas emissions, as described in sec-
tion 211(o)(1)(H) of the Clean Air Act (42 
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U.S.C. 7545(o)(1)(H))) in the production of 
electricity, expressed as grams of CO2e per 
KWh. 
‘‘(C) 
ESTABLISHMENT
OF
EMISSIONS 
RATES FOR FACILITIES.— 
‘‘(i) PUBLISHING EMISSIONS RATES.— 
The Secretary shall annually publish a 
table that sets forth the greenhouse gas 
emissions rates for types or categories of 
facilities, which a taxpayer shall use for 
purposes of this section. 
‘‘(ii) 
PROVISIONAL
EMISSIONS 
RATE.—In the case of any facility for 
which an emissions rate has not been es-
tablished by the Secretary, a taxpayer 
which owns such facility may file a petition 
with the Secretary for determination of the 
emissions rate with respect to such facility. 
‘‘(D) CARBON CAPTURE AND SEQUESTRA-
TION EQUIPMENT.—For purposes of this sub-
section, the amount of greenhouse gases emit-
ted into the atmosphere by a facility in the pro-
duction of electricity shall not include any quali-
fied carbon dioxide that is captured by the tax-
payer and— 
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‘‘(i) pursuant to any regulations es-
tablished under paragraph (2) of section 
45Q(f), disposed of by the taxpayer in se-
cure geological storage, or 
‘‘(ii) utilized by the taxpayer in a 
manner described in paragraph (5) of such 
section. 
‘‘(c) INFLATION ADJUSTMENT.— 
‘‘(1) IN GENERAL.—In the case of a calendar 
year beginning after 2021, the 0.3 cent amount in 
paragraph (2)(A) of subsection (a) and the 1.5 cent 
amount in paragraph (2)(B) of such subsection shall 
each be adjusted by multiplying such amount by the 
inflation adjustment factor for the calendar year in 
which the sale or use of the electricity occurs. If the 
0.3 cent amount as increased under this paragraph 
is not a multiple of 0.05 cent, such amount shall be 
rounded to the nearest multiple of 0.05 cent. If the 
1.5 cent amount as increased under this paragraph 
is not a multiple of 0.1 cent, such amount shall be 
rounded to the nearest multiple of 0.1 cent. 
‘‘(2) ANNUAL
COMPUTATION.—The Secretary 
shall, not later than April 1 of each calendar year, 
determine and publish in the Federal Register the 
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inflation adjustment factor for such calendar year in 
accordance with this subsection. 
‘‘(3) INFLATION
ADJUSTMENT
FACTOR.—The 
term ‘inflation adjustment factor’ means, with re-
spect to a calendar year, a fraction the numerator 
of which is the GDP implicit price deflator for the 
preceding calendar year and the denominator of 
which is the GDP implicit price deflator for the cal-
endar year 1992. The term ‘GDP implicit price 
deflator’ means the most recent revision of the im-
plicit price deflator for the gross domestic product 
as computed and published by the Department of 
Commerce before March 15 of the calendar year. 
‘‘(d) CREDIT PHASE-OUT.— 
‘‘(1) IN GENERAL.—The amount of the clean 
electricity production credit under subsection (a) for 
any qualified facility the construction of which be-
gins during a calendar year described in paragraph 
(2) shall be equal to the product of— 
‘‘(A) the amount of the credit determined 
under subsection (a) without regard to this sub-
section, multiplied by 
‘‘(B) the phase-out percentage under para-
graph (2). 
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‘‘(2) PHASE-OUT PERCENTAGE.—The phase-out 
percentage under this paragraph is equal to— 
‘‘(A) for a facility the construction of 
which begins during the first calendar year fol-
lowing the applicable year, 100 percent, 
‘‘(B) for a facility the construction of 
which begins during the second calendar year 
following the applicable year, 75 percent, 
‘‘(C) for a facility the construction of 
which begins during the third calendar year fol-
lowing the applicable year, 50 percent, and 
‘‘(D) for a facility the construction of 
which begins during any calendar year subse-
quent to the calendar year described in sub-
paragraph (C), 0 percent. 
‘‘(3) APPLICABLE YEAR.—For purposes of this 
subsection, the term ‘applicable year’ means the 
later of— 
‘‘(A) the calendar year in which the 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 2021, or 
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‘‘(B) 2031. 
‘‘(e) DEFINITIONS.—For purposes of this section: 
‘‘(1) CO2e PER KWh.—The term ‘CO2e per 
KWh’ means, with respect to any greenhouse gas, 
the equivalent carbon dioxide (as determined based 
on global warming potential) per kilowatt hour of 
electricity produced. 
‘‘(2) GREENHOUSE GAS.—The term ‘greenhouse 
gas’ has the same meaning given such term under 
section 211(o)(1)(G) of the Clean Air Act (42 
U.S.C. 7545(o)(1)(G)), as in effect on the date of 
the enactment of this section. 
‘‘(3) QUALIFIED CARBON DIOXIDE.—The term 
‘qualified carbon dioxide’ means carbon dioxide cap-
tured from an industrial source which— 
‘‘(A) would otherwise be released into the 
atmosphere as industrial emission of green-
house gas, 
‘‘(B) is measured at the source of capture 
and verified at the point of disposal or utiliza-
tion, and 
‘‘(C) is captured and disposed or utilized 
within the United States (within the meaning of 
section 638(1)) or a possession of the United 
States (within the meaning of section 638(2)). 
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energy community (as defined in section 
45(b)(11)(B)), for purposes of determining the 
amount of the credit under subsection (a) with 
respect to any electricity produced by the tax-
payer at such facility during the taxable year, 
the applicable amount under paragraph (2) of 
such subsection shall be increased by an 
amount equal to 10 percent of the amount oth-
erwise in effect under such paragraph (without 
application of subparagraph (B)). 
‘‘(B) DOMESTIC CONTENT.—Rules similar 
to the rules of section 45(b)(9) shall apply. 
‘‘(8) CREDIT
REDUCED
FOR
TAX-EXEMPT 
BONDS.—Rules similar to the rules of section 
45(b)(3) shall apply. 
‘‘(9) WAGE REQUIREMENTS.—Rules similar to 
the rules of section 45(b)(7)(A) and clauses (i) 
through (iv) of section 45(b)(7)(B) shall apply. 
‘‘(10) 
APPRENTICESHIP
REQUIREMENTS.— 
Rules similar to the rules of section 45(b)(8) shall 
apply. 
‘‘(11) DOMESTIC CONTENT REQUIREMENT FOR 
ELECTIVE PAYMENT.—Rules similar to the rules of 
section 45(b)(10) shall apply.’’. 
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