2528 
sisted or subsidized to any significant 
extent by the Federal Government; or 
‘‘(II) philanthropic or private-sec-
tor funds. 
‘‘(I) REPORT.—Not later than 6 months 
after the last day of the grant period, a State 
receiving a grant under this paragraph shall 
submit a report to the Secretary as described in 
subparagraph (D)— 
‘‘(i) to determine the effects of the 
grant in constructing, renovating, or im-
proving child care facilities, including any 
changes in response to the COVID–19 
pandemic and any effects on access to and 
quality of child care; and 
‘‘(ii) to provide such other information 
as the Secretary may require. 
‘‘(J) AMOUNT LIMIT.—The annual amount 
of a grant under this paragraph may not exceed 
$35,000,000. 
‘‘(2) GRANTS
TO
INTERMEDIARY
ORGANIZA-
TIONS.— 
‘‘(A) IN
GENERAL.—The Secretary may 
award grants to intermediary organizations, 
such as certified community development finan-
2529 
cial institutions, tribal organizations, or other 
organizations with demonstrated experience in 
child care facilities financing, for the purpose of 
providing technical assistance, capacity build-
ing, and financial products to develop or finance 
child care facilities. 
‘‘(B) APPLICATION.—A grant under this 
paragraph may be made only to intermediary 
organizations that submit to the Secretary an 
application at such time, in such manner, and 
containing such information as the Secretary 
may require. 
‘‘(C) PRIORITY.—In selecting intermediary 
organizations for grants under this subsection, 
the Secretary shall prioritize intermediary orga-
nizations that— 
‘‘(i) demonstrate experience in child 
care facility financing or related commu-
nity facility financing; 
‘‘(ii) demonstrate the capacity to as-
sist States and local governments in devel-
oping child care facilities and programs; 
‘‘(iii) demonstrate the ability to lever-
age grant funding to support financing 
tools to build the capacity of child care
2530 
providers, such as through credit enhance-
ments; 
‘‘(iv) propose to meet a diversity of 
needs across States and across urban, sub-
urban, and rural areas at varying types of 
center-based, home-based, and other child 
care settings, including early care pro-
grams located in freestanding buildings or 
in mixed-use properties; and 
‘‘(v) propose to focus on child care fa-
cilities primarily serving low-income popu-
lations and children who have not attained 
the age of 5 years. 
‘‘(D) AMOUNT LIMIT.—The amount of a 
grant under this paragraph may not exceed 
$10,000,000. 
‘‘(3) LABOR STANDARDS FOR ALL GRANTS.— 
The Secretary shall require that each entity, includ-
ing grantees and subgrantees, that applies for an in-
frastructure grant for constructing, renovating, or 
improving child care facilities, including adapting, 
reconfiguring, or expanding such facilities, which is 
funded in whole or in part under this section, shall 
include in its application written assurance that all 
laborers and mechanics employed by contractors or
2531 
subcontractors in the performance of construction, 
alternation or repair, as part of such project, shall 
be paid wages at rates not less than those prevailing 
on similar work in the locality as determined by the 
Secretary of Labor in accordance with subchapter 
IV of chapter 31 of part A of subtitle II of title 40, 
United States Code (commonly referred to as the 
‘Davis-Bacon Act’), and with respect to the labor 
standards specified in such subchapter the Secretary 
of Labor shall have the authority and functions set 
forth in Reorganization Plan Numbered 14 of 1950 
(15 Fed. Reg. 3176; 5 U.S.C. App.) and section 2 
of the Act of June 13, 1934 (40 U.S.C. 276c). 
‘‘(4) REPORT.—Not later than the end of fiscal 
year 2024, the Secretary shall submit to the Con-
gress a report on the effects of the grants provided 
under this subsection, and make the report pub-
lically accessible. 
‘‘(d) LIMITATIONS ON AUTHORIZATION OF APPRO-
PRIATIONS.— 
‘‘(1) IN GENERAL.—To carry out this section, 
there 
is 
authorized 
to 
be 
appropriated 
$10,000,000,000 for fiscal year 2020, which shall 
remain available through fiscal year 2024. 
‘‘(2) RESERVATIONS OF FUNDS.—
2532 
‘‘(A) INDIAN TRIBES.—The Secretary shall 
reserve 3 percent of the total amount made 
available to carry out this section, for payments 
to Indian tribes. 
‘‘(B) TERRITORIES.—The Secretary shall 
reserve 3 percent of the total amount made 
available to carry out this section, for payments 
to territories. 
‘‘(3) GRANTS
FOR
INTERMEDIARY
ORGANIZA-
TIONS.—Not less than 10 percent and not more 
than 15 percent of the total amount made available 
to carry out this section may be used to carry out 
subsection (c)(2). 
‘‘(4) LIMITATION
ON
USE
OF
FUNDS
FOR 
NEEDS ASSESSMENTS.—Not more than $5,000,000 
of the amounts made available to carry out this sec-
tion may be used to carry out subsection (b). 
‘‘(5) LABOR STANDARDS FOR ALL GRANTS.— 
The Secretary of Health and Human Services shall 
require that each entity, including grantees and sub-
grantees, that applies for an infrastructure grant for 
constructing, renovating, or improving child care fa-
cilities, including adapting, reconfiguring, or expand-
ing such facilities, which is funded in whole or in 
part under this section, shall include in its applica-
2533 
tion written assurance that all laborers and mechan-
ics employed by contractors or subcontractors in the 
performance of construction, alternation or repair, 
as part of such project, shall be paid wages at rates 
not less than those prevailing on similar work in the 
locality as determined by the Secretary of Labor in 
accordance with subchapter IV of chapter 31 of part 
A of subtitle II of title 40, United States Code (com-
monly referred to as the ‘Davis-Bacon Act’), and 
with respect to the labor standards specified in such 
subchapter the Secretary of Labor shall have the au-
thority and functions set forth in Reorganization 
Plan Numbered 14 of 1950 (15 Fed. Reg. 3176; 5 
U.S.C. App.) and section 2 of the Act of June 13, 
1934 (40 U.S.C. 276c). 
‘‘(e) DEFINITION OF STATE.—In this section, the 
term ‘State’ has the meaning provided in section 419, ex-
cept that it includes the Commonwealth of the Northern 
Mariana Islands and any Indian tribe.’’. 
(b) EXEMPTION OF TERRITORY GRANTS FROM LIMI-
TATION ON TOTAL PAYMENTS TO THE TERRITORIES.— 
Section 1108(a)(2) of such Act (42 U.S.C. 1308(a)(2)) 
is amended by inserting ‘‘418A(c),’’ after ‘‘413(f),’’.
2534 
TITLE II—NEW MARKETS TAX 
CREDIT 
SEC. 90201. IMPROVEMENT AND PERMANENT EXTENSION 
OF NEW MARKETS TAX CREDIT. 
(a) PERMANENT EXTENSION.— 
(1) IN GENERAL.—Section 45D(f)(1) is amend-
ed by striking subparagraphs (G) and (H) and in-
serting the following new subparagraphs: 
‘‘(G) $3,500,000,000 for each of calendar 
years 2010 through 2018, 
‘‘(H) $4,000,000,000 for calendar year 
2019, 
‘‘(I) $7,000,000,000 for calendar year 
2020, 
‘‘(J) $6,000,000,000 for calendar year 
2021, and 
‘‘(K) $5,000,000,000 for calendar year 
2022 and each calendar year thereafter.’’. 
(2) INFLATION ADJUSTMENT.—Section 45D(f) 
is amended by adding at the end the following new 
paragraph: 
‘‘(4) INFLATION ADJUSTMENT.— 
‘‘(A) IN GENERAL.—In the case of any cal-
endar year beginning after 2022, the dollar
2535 
amount in paragraph (1)(I) shall be increased 
by an amount equal to— 
‘‘(i) such dollar 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
RULE.—Any increase 
under subparagraph (A) which is not a multiple 
of $1,000,000 shall be rounded to the nearest 
multiple of $1,000,000.’’. 
(3) 
CONFORMING
AMENDMENT.—Section 
45D(f)(3) is amended by striking the last sentence. 
(b) ALTERNATIVE MINIMUM TAX RELIEF.—Sub-
paragraph (B) of section 38(c)(4) is amended— 
(1) by redesignating clauses (v) through (xii) as 
clauses (vi) through (xiii), respectively, and 
(2) by inserting after clause (iv) the following 
new clause: 
‘‘(v) the credit determined under sec-
tion 45D, but only with respect to credits 
determined with respect to qualified equity 
investments (as defined in section 45D(b)) 
initially made after December 31, 2020,’’.
2536 
(c) EFFECTIVE DATES.— 
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the amendments made by 
this section shall apply to new markets tax credit 
limitation determined for calendar years after 2020. 
(2) ALTERNATIVE MINIMUM TAX RELIEF.—The 
amendments made by subsection (b) shall apply to 
credits determined with respect to qualified equity 
investments (as defined in section 45D(b) of the In-
ternal Revenue Code of 1986) initially made after 
December 31, 2020. 
(3) SPECIAL
RULE
FOR
ALLOCATION
OF
IN-
CREASED 2019 LIMITATION.—The amount of the in-
crease in the new market tax credit limitation for 
calendar year 2019 by reason of the amendments 
made by subsection (a) shall be allocated in accord-
ance with section 45D(f)(2) of the Internal Revenue 
Code of 1986 to qualified community development 
entities (as defined in section 45D(c) of such Code) 
which— 
(A) submitted an allocation application 
with respect to calendar year 2019, and 
(B) either— 
(i) did not receive an allocation for 
such calendar year, or
2537 
(ii) received an allocation for such cal-
endar year in an amount less than the 
amount requested in the allocation applica-
tion. 
TITLE III—REHABILITATION TAX 
CREDIT 
SEC. 90301. INCREASE IN REHABILITATION CREDIT. 
(a) IN GENERAL.—Section 47(a)(2) is amended by 
striking ‘‘20 percent’’ and inserting ‘‘the applicable per-
centage’’. 
(b) APPLICABLE PERCENTAGE.—Section 47(a) is 
amended by adding at the end the following new para-
graph: 
‘‘(3) APPLICABLE PERCENTAGE.—For purposes 
of this subsection, the term ‘applicable percentage’ 
means the percentage determined in accordance with 
the following table: 
‘‘In the case of a taxable year 
The applicable 
beginning in: 
percentage is: 
2020 through 2024 ...........................................................
30 percent
2025 ..................................................................................
26 percent
2026 ..................................................................................
23 percent
2027 and thereafter ..........................................................
20 percent’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2019.
2538 
SEC. 90302. INCREASE IN THE REHABILITATION CREDIT 
FOR CERTAIN SMALL PROJECTS. 
(a) IN GENERAL.—Section 47 is amended by adding 
at the end the following new subsection: 
‘‘(e) SPECIAL RULE REGARDING CERTAIN SMALLER 
PROJECTS.— 
‘‘(1) IN GENERAL.—In the case of any smaller 
project— 
‘‘(A) the applicable percentage determined 
under subsection (a)(3) shall not be less than 
30 percent, and 
‘‘(B) the qualified rehabilitation expendi-
tures taken into account under this section with 
respect to such project shall not exceed 
$2,500,000. 
‘‘(2) SMALLER PROJECT.—For purposes of this 
subsection, the term ‘smaller project’ means the re-
habilitation of any qualified rehabilitated building 
if— 
‘‘(A) the qualified rehabilitation expendi-
tures taken into account under this section (or 
which would be so taken into account but for 
paragraph (1)(B)) with respect to such rehabili-
tation do not exceed $3,750,000, 
‘‘(B) no credit was allowed under this sec-
tion with respect to such building to any tax-
2539 
payer for either of the 2 taxable years imme-
diately preceding the first taxable year in which 
expenditures described in subparagraph (A) 
were paid or incurred, and 
‘‘(C) the taxpayer elects (at such time and 
manner as the Secretary may provide) to have 
this subsection apply with respect to such reha-
bilitation.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2019. 
SEC. 90303. MODIFICATION OF DEFINITION OF SUBSTAN-
TIALLY REHABILITATED. 
(a) IN
GENERAL.—Section 47(c)(1)(B)(i)(I) is 
amended by inserting ‘‘50 percent of’’ before ‘‘the ad-
justed basis’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to determinations with respect 
to 24-month periods (referred to in clause (i) of section 
47(c)(1)(B) of the Internal Revenue Code of 1986) and 
60-month periods (referred to in clause (ii) of such sec-
tion) which begin after the date of the enactment of this 
Act.
2540 
SEC. 90304. TEMPORARY EXTENSION OF PERIOD FOR COM-
PLETING REHABILITATION. 
(a) IN GENERAL.—Section 47(c)(1)(B) is amended 
by adding at the end the following new clause: 
‘‘(iv) TEMPORARY EXTENSION OF PE-
RIOD
FOR
COMPLETING
REHABILITA-
TION.—In the case of any period selected 
by a taxpayer which includes March 13, 
2020 (determined without regard to this 
clause), this subparagraph (and section 
13402(b)(2) of Public Law 115–97) shall 
be applied— 
‘‘(I) by substituting ‘36-month’ 
for ‘24-month’ each place it appears 
therein, and 
‘‘(II) by substituting ‘72-month’ 
for ‘60-month’ each place it appears 
therein.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to periods which include March 13, 
2020 (determined without regard to such amendment). 
SEC. 90305. ELIMINATION OF REHABILITATION CREDIT 
BASIS ADJUSTMENT. 
(a) IN GENERAL.—Section 50(c) is amended by add-
ing at the end the following new paragraph:
2541 
‘‘(6) EXCEPTION FOR REHABILITATION CRED-
IT.—In the case of the rehabilitation credit, para-
graph (1) shall not apply.’’. 
(b) TREATMENT IN CASE OF CREDIT ALLOWED TO 
LESSEE.—Section 50(d) is amended by adding at the end 
the following: ‘‘In the case of the rehabilitation credit, 
paragraph (5)(B) of the section 48(d) referred to in para-
graph (5) of this subsection shall not apply.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
SEC. 90306. MODIFICATIONS REGARDING CERTAIN TAX-EX-
EMPT USE PROPERTY. 
(a) IN GENERAL.—Section 47(c)(2)(B)(v) is amend-
ed by adding at the end the following new subclause: 
‘‘(III) 
DISQUALIFIED
LEASE 
RULES TO APPLY ONLY IN CASE OF 
GOVERNMENT ENTITY.—For purposes 
of subclause (I), except in the case of 
a tax-exempt entity described in sec-
tion 168(h)(2)(A)(i) (determined with-
out regard to the last sentence of sec-
tion 168(h)(2)(A)), the determination 
of whether property is tax-exempt use 
property shall be made under section
2542 
168(h) without regard to whether the 
property is leased in a disqualified 
lease 
(as 
defined 
in 
section 
168(h)(1)(B)(ii)).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to leases entered into after the date 
of the enactment of this Act. 
SEC. 90307. QUALIFICATION OF REHABILITATION EXPENDI-
TURES FOR PUBLIC SCHOOL BUILDINGS FOR 
REHABILITATION CREDIT. 
(a) IN GENERAL.—Section 47(c)(2)(B)(v) is amend-
ed by adding at the end the following new subclause: 
‘‘(III) CLAUSE NOT TO APPLY TO 
PUBLIC SCHOOLS.—This clause shall 
not apply in the case of the rehabilita-
tion of any building which was used 
as a qualified public educational facil-
ity (as defined in section 142(k)(1), 
determined without regard to sub-
paragraph (B) thereof) at any time 
during the 5-year period ending on 
the date that such rehabilitation be-
gins and which is used as such a facil-
ity immediately after such rehabilita-
tion.’’.
2543 
(b) REPORT.—Not later than the date which is 5 
years after the date of the enactment of this Act, the Sec-
retary of the Treasury, after consultation with the heads 
of appropriate Federal agencies, shall report to Congress 
on the effects resulting from the amendment made by sub-
section (a). 
(c) EFFECTIVE DATE.—The amendment made by 
this section shall apply to property placed in service after 
the date of the enactment of this Act. 
TITLE IV—GREEN ENERGY 
SEC. 90400. SHORT TITLE. 
This title may be cited as the ‘‘Growing Renewable 
Energy and Efficiency Now Act of 2020’’ or the ‘‘GREEN 
Act of 2020’’. 
Subtitle A—Renewable Electricity 
and Reducing Carbon Emissions 
SEC. 90401. EXTENSION OF CREDIT FOR ELECTRICITY PRO-
DUCED 
FROM 
CERTAIN 
RENEWABLE 
RE-
SOURCES. 
(a) IN GENERAL.—The following provisions of sec-
tion 45(d) are each amended by striking ‘‘January 1, 
2021’’ each place it appears and inserting ‘‘January 1, 
2026’’: 
(1) Paragraph (2)(A). 
(2) Paragraph (3)(A).
2544 
(3) Paragraph (6). 
(4) Paragraph (7). 
(5) Paragraph (9). 
(6) Paragraph (11)(B). 
(b) EXTENSION OF ELECTION TO TREAT QUALIFIED 
FACILITIES
AS
ENERGY
PROPERTY.—Section 
48(a)(5)(C)(ii) is amended by striking ‘‘January 1, 2021’’ 
and inserting ‘‘January 1, 2026’’. 
(c) APPLICATION OF EXTENSION TO WIND FACILI-
TIES.— 
(1) IN GENERAL.—Section 45(d)(1) is amended 
by striking ‘‘January 1, 2021’’ and inserting ‘‘Janu-
ary 1, 2026’’. 
(2) APPLICATION
OF
PHASEOUT
PERCENT-
AGE.— 
(A) RENEWABLE
ELECTRICITY
PRODUC-
TION CREDIT.—Sections 45(b)(5)(D) is amend-
ed by striking ‘‘and before January 1, 2021,’’. 
(B) 
ENERGY
CREDIT.—Section 
48(a)(5)(E)(iv) is amended by striking ‘‘and be-
fore January 1, 2021,’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to facilities the construction of 
which begins after December 31, 2020.
2545 
SEC. 90402. EXTENSION AND MODIFICATION OF ENERGY 
CREDIT. 
(a) EXTENSION OF CREDIT.—The following provi-
sions of section 48 are each amended by striking ‘‘January 
1, 2022’’ each place it appears and inserting ‘‘January 
1, 2027’’: 
(1) Subsection (a)(3)(A)(ii). 
(2) Subsection (a)(3)(A)(vii). 
(3) Subsection (c)(1)(D). 
(4) Subsection (c)(2)(D). 
(5) Subsection (c)(3)(A)(iv). 
(6) Subsection (c)(4)(C). 
(b) PHASEOUT OF CREDIT.—Section 48(a) is amend-
ed— 
(1) by striking ‘‘December 31, 2019’’ in para-
graphs (6)(A)(i) and (7)(A)(i) and inserting ‘‘De-
cember 31, 2025’’, 
(2) by striking ‘‘December 31, 2020’’ in para-
graphs (6)(A)(ii) and (7)(A)(ii) and inserting ‘‘De-
cember 31, 2026’’, 
(3) by striking ‘‘January 1, 2021’’ in para-
graphs (6)(A)(i) and (7)(A)(i) and inserting ‘‘Janu-
ary 1, 2027’’, 
(4) by striking ‘‘January 1, 2022’’ each place 
it appears in paragraphs (6)(A), (6)(B), and (7)(A) 
and inserting ‘‘January 1, 2028’’, and
2546 
(5) by striking ‘‘January 1, 2024’’ in para-
graphs (6)(B) and (7)(B) and inserting ‘‘January 1, 
2030’’. 
(c) 30 PERCENT CREDIT
FOR SOLAR
AND GEO-
THERMAL.— 
(1) 
EXTENSION
FOR
SOLAR.—Section 
48(a)(2)(A)(i)(II) is amended by striking ‘‘January 
1, 2022’’ and inserting ‘‘January 1, 2028’’. 
(2) APPLICATION TO GEOTHERMAL.— 
(A) 
IN
GENERAL.—Paragraphs 
(2)(A)(i)(II), (6)(A), and (6)(B) of section 
48(a) are each amended by striking ‘‘paragraph 
(3)(A)(i)’’ and inserting ‘‘clause (i) or (iii) of 
paragraph (3)(A)’’. 
(B) 
CONFORMING
AMENDMENT.—The 
heading of section 48(a)(6) is amended by in-
serting ‘‘AND GEOTHERMAL’’ after ‘‘SOLAR EN-
ERGY’’. 
(d) ENERGY STORAGE TECHNOLOGIES; WASTE EN-
ERGY RECOVERY PROPERTY; QUALIFIED BIOGAS PROP-
ERTY.— 
(1) IN
GENERAL.—Section 48(a)(3)(A) is 
amended by striking ‘‘or’’ at the end of clause (vi), 
and by adding at the end the following new clauses: 
‘‘(viii) energy storage technology,
2547 
‘‘(ix) waste energy recovery property, 
or 
‘‘(x) qualified biogas property,’’. 
(2) APPLICATION
OF
PERCENT
CREDIT.— 
Section 48(a)(2)(A)(i) is amended by striking ‘‘and’’ 
at the end of subclauses (III) and (IV) and adding 
at the end the following new subclauses: 
‘‘(V) energy storage technology, 
‘‘(VI) 
waste 
energy 
recovery 
property, and 
‘‘(VII) qualified biogas property, 
and’’. 
(3) 
APPLICATION
OF
PHASEOUT.—Section 
48(a)(7) is amended— 
(A) by inserting ‘‘energy storage tech-
nology, waste energy recovery property, quali-
fied biogas property,’’ after ‘‘qualified small 
wind property,’’, and 
(B) by striking ‘‘FIBER-OPTIC
SOLAR, 
QUALIFIED FUEL CELL, AND QUALIFIED SMALL 
WIND’’ in the heading thereof and inserting 
‘‘CERTAIN OTHER’’. 
(4) DEFINITIONS.—Section 48(c) is amended 
by adding at the end the following new paragraphs: 
‘‘(5) ENERGY STORAGE TECHNOLOGY.—
2548 
‘‘(A) IN
GENERAL.—The term ‘energy 
storage technology’ means equipment (other 
than equipment primarily used in the transpor-
tation of goods or individuals and not for the 
production of electricity) which— 
‘‘(i) uses batteries, compressed air, 
pumped hydropower, hydrogen storage (in-
cluding hydrolysis and electrolysis), ther-
mal energy storage, regenerative fuel cells, 
flywheels, 
capacitors, 
superconducting 
magnets, or other technologies identified 
by the Secretary, after consultation with 
the Secretary of Energy, to store energy 
for conversion to electricity and has a ca-
pacity of not less than 5 kilowatt hours, or 
‘‘(ii) stores thermal energy to heat or 
cool (or provide hot water for use in) a 
structure (other than for use in a swim-
ming pool). 
‘‘(B) TERMINATION.—The term ‘energy 
storage technology’ shall not include any prop-
erty the construction of which does not begin 
before January 1, 2028. 
‘‘(6) WASTE ENERGY RECOVERY PROPERTY.—
2549 
‘‘(A) IN GENERAL.—The term ‘waste en-
ergy recovery property’ means property that 
generates electricity solely from heat from 
buildings or equipment if the primary purpose 
of such building or equipment is not the genera-
tion of electricity. 
‘‘(B) CAPACITY
LIMITATION.—The term 
‘waste energy recovery property’ shall not in-
clude any property which has a capacity in ex-
cess of 50 megawatts. 
‘‘(C) NO
DOUBLE
BENEFIT.—Any waste 
energy recovery property (determined without 
regard to this subparagraph) which is part of a 
system which is a combined heat and power sys-
tem property shall not be treated as waste en-
ergy recovery property for purposes of this sec-
tion unless the taxpayer elects to not treat such 
system as a combined heat and power system 
property for purposes of this section. 
‘‘(D) TERMINATION.—The term ‘waste en-
ergy recovery property’ shall not include any 
property the construction of which does not 
begin before January 1, 2028. 
‘‘(7) QUALIFIED BIOGAS PROPERTY.—
2550 
‘‘(A) IN
GENERAL.—The term ‘qualified 
biogas property’ means property comprising a 
system which— 
‘‘(i) converts biomass (as defined in 
section 45K(c)(3)) into a gas which— 
‘‘(I) consists of not less than 52 
percent methane, or 
‘‘(II) is concentrated by such sys-
tem into a gas which consists of not 
less than 52 percent methane, and 
‘‘(ii) captures such gas for productive 
use. 
‘‘(B) INCLUSION OF CLEANING AND CON-
DITIONING
PROPERTY.—The term ‘qualified 
biogas property’ includes any property which is 
part of such system which cleans or conditions 
such gas. 
‘‘(C) TERMINATION.—The term ‘qualified 
biogas property’ shall not include any property 
the construction of which does not begin before 
January 1, 2028.’’. 
(5) DENIAL OF DOUBLE BENEFIT FOR QUALI-
FIED BIOGAS PROPERTY.—Section 45(e) is amended 
by adding at the end the following new paragraph:
2551 
‘‘(12) COORDINATION
WITH
ENERGY
CREDIT 
FOR
QUALIFIED
BIOGAS
PROPERTY.—The term 
‘qualified facility’ shall not include any facility which 
produces electricity from gas produced by qualified 
biogas property (as defined in section 48(c)(7)) if a 
credit is determined under section 48 with respect to 
such property for the taxable year or any prior tax-
able year.’’. 
(e) FUEL
CELLS
USING
ELECTROMECHANICAL 
PROCESSES.— 
(1) IN GENERAL.—Section 48(c)(1) is amend-
ed— 
(A) in subparagraph (A)(i)— 
(i) by inserting ‘‘or electromechanical’’ 
after ‘‘electrochemical’’, and 
(ii) by inserting ‘‘(1 kilowatts in the 
case of a fuel cell power plant with a linear 
generator assembly)’’ after ‘‘0.5 kilowatt’’, 
and 
(B) in subparagraph (C)— 
(i) by inserting ‘‘, or linear generator 
assembly,’’ after ‘‘a fuel cell stack assem-
bly’’, and 
(ii) 
by 
inserting 
‘‘or 
electromechanical’’ after ‘‘electrochemical’’.
2552 
(2) LINEAR
GENERATOR
ASSEMBLY
LIMITA-
TION.—Section 48(c)(1) is amended by redesig-
nating subparagraph (D) as subparagraph (E) and 
by inserting after subparagraph (C) the following 
new subparagraph: 
‘‘(D) LINEAR
GENERATOR
ASSEMBLY.— 
The term ‘linear generator assembly’ does not 
include any assembly which contains rotating 
parts.’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to periods after December 31, 
2020, under rules similar to the rules of section 48(m) 
as in effect on the day before the date of the enactment 
of the Revenue Reconciliation Act of 1990. 
SEC. 90403. EXTENSION OF CREDIT FOR CARBON OXIDE SE-
QUESTRATION. 
(a) IN GENERAL.—Section 45Q(d)(1) is amended by 
striking ‘‘January 1, 2024’’ and inserting ‘‘January 1, 
2026’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section applies to facilities the construction of which 
begins after December 31, 2023.
2553 
SEC. 90404. ELECTIVE PAYMENT FOR ENERGY PROPERTY 
AND ELECTRICITY PRODUCED FROM CER-
TAIN RENEWABLE RESOURCES, ETC. 
(a) IN GENERAL.—Subchapter B of chapter 65 is 
amended by adding at the end the following new section: 
‘‘SEC. 6431. ELECTIVE PAYMENT FOR ENERGY PROPERTY, 
ELECTRICITY PRODUCED FROM CERTAIN RE-
NEWABLE RESOURCES, ETC, AND CARBON 
OXIDE SEQUESTRATION. 
‘‘(a) ENERGY PROPERTY.—In the case of a taxpayer 
making an election (at such time and in such manner as 
the Secretary may provide) under this section with respect 
to any portion of an applicable credit, such taxpayer shall 
be treated as making a payment against the tax imposed 
by subtitle A for the taxable year equal to— 
‘‘(1) in the case of an Indian tribal government, 
the amount of such portion, and 
‘‘(2) in the case of any other taxpayer, 85 per-
cent of such amount. 
‘‘(b) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
‘‘(1) GOVERNMENTAL
ENTITIES
TREATED
AS 
TAXPAYERS.—In the case of an election under this 
section— 
‘‘(A) any State or local government, or a 
political subdivision thereof, or
2554 
‘‘(B) an Indian tribal government, 
shall be treated as a taxpayer for purposes of this 
section and determining any applicable credit. 
‘‘(2) APPLICABLE CREDIT.—The term ‘applica-
ble credit’ means each of the following credits that 
would (without regard to this section) be determined 
with respect to the taxpayer: 
‘‘(A) A energy credit under section 48. 
‘‘(B) A renewable electricity production 
credit under section 45. 
‘‘(C) A carbon oxide sequestration credit 
under section 45Q. 
‘‘(3) INDIAN TRIBAL GOVERNMENT.—The term 
‘Indian tribal government’ shall have the meaning 
given such term by section 139E. 
‘‘(4) TIMING.—The payment described in sub-
paragraph (A) shall be treated as made on— 
‘‘(A) in the case of any government, or po-
litical subdivision, to which paragraph (1) ap-
plies and for which no return is required under 
section 6011 or 6033(a), the later of the date 
that a return would be due under section 
6033(a) if such government or subdivision were 
described in that section or the date on which 
such government or subdivision submits a claim
2555 
for credit or refund (at such time and in such 
manner as the Secretary shall provide), and 
‘‘(B) in any other case, the later of the due 
date of the return of tax for the taxable year 
or the date on which such return is filed. 
‘‘(5) WAIVER OF SPECIAL RULES.—In the case 
of an election under this section, the determination 
of any applicable credit shall be without regard to 
paragraphs (3) and (4)(A)(i) of section 50(b). 
‘‘(c) EXCLUSION FROM GROSS INCOME.—Gross in-
come of the taxpayer shall be determined without regard 
to this section. 
‘‘(d) DENIAL OF DOUBLE BENEFIT.—Solely for pur-
poses of section 38, in the case of a taxpayer making an 
election under this section, the energy credit determined 
under section 45 or the renewable electricity production 
credit determined under section 48 shall be reduced by 
the amount of the portion of such credit with respect to 
which the taxpayer makes such election.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subchapter B of chapter 65 is amended by adding at 
the end the following new item: 
‘‘Sec. 6431. Elective payment for energy property and electricity produced from 
certain renewable resources, etc.’’.
2556 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property originally placed in 
service after the date of the enactment of this Act. 
SEC. 90405. EXTENSION OF ENERGY CREDIT FOR OFF-
SHORE WIND FACILITIES. 
(a) IN GENERAL.—Section 48(a)(5) is amended by 
adding at the end the following new subparagraph: 
‘‘(F) QUALIFIED OFFSHORE WIND FACILI-
TIES.— 
‘‘(i) IN GENERAL.—In the case of any 
qualified offshore wind facility— 
‘‘(I) subparagraph (C)(ii) shall be 
applied by substituting ‘January 1 of 
the applicable year (as determined 
under subparagraph (F)(ii))’ for ‘Jan-
uary 1, 2026’, 
‘‘(II) subparagraph (E) shall not 
apply, and 
‘‘(III) for purposes of this para-
graph, section 45(d)(1) shall be ap-
plied by substituting ‘January 1 of 
the applicable year (as determined 
under section 48(a)(5)(F)(ii))’’ for 
‘January 1, 2026’.
2557 
‘‘(ii) APPLICABLE
YEAR.—For pur-
poses of this subparagraph, the term ‘ap-
plicable year’ means the later of— 
‘‘(I) calendar year 2025, or 
‘‘(II) the calendar year subse-
quent to the first calendar year in 
which the Secretary, after consulta-
tion with the Secretary of Energy, de-
termines that the United States has 
increased its offshore wind capacity by 
not less than 3,000 megawatts as 
compared to such capacity on January 
1, 2021. 
For purposes of subclause (II), the Sec-
retary shall not include any increase in off-
shore wind capacity which is attributable 
to any facility the construction of which 
began before January 1, 2021. 
‘‘(iii) QUALIFIED OFFSHORE WIND FA-
CILITY.—For purposes of this subpara-
graph, the term ‘qualified offshore wind fa-
cility’ means a qualified facility (within the 
meaning of section 45) described in para-
graph (1) of section 45(d) (determined 
without regard to any date by which the
2558 
construction of the facility is required to 
begin) which is located in the inland navi-
gable waters of the United States or in the 
coastal waters of the United States. 
‘‘(iv) REPORT
ON
OFFSHORE
WIND 
CAPACITY.—On January 15, 2024, and an-
nually thereafter until the calendar year 
described in clause (ii)(II), the Secretary, 
after consultation with the Secretary of 
Energy, shall issue a report to be made 
available to the public which discloses the 
increase in the offshore wind capacity of 
the United States, as measured in total 
megawatts, since January 1, 2020.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to periods after December 31, 
2016, under rules similar to the rules of section 48(m) 
of the Internal Revenue Code of 1986 (as in effect on the 
day before the date of the enactment of the Revenue Rec-
onciliation Act of 1990). 
SEC. 90406. GREEN ENERGY PUBLICLY TRADED PARTNER-
SHIPS. 
(a) IN GENERAL.—Section 7704(d)(1)(E) is amend-
ed—
2559 
(1) by striking ‘‘income and gains derived from 
the exploration’’ and inserting ‘‘income and gains 
derived from— 
‘‘(i) the exploration’’, 
(2) 
by 
inserting 
‘‘or’’ 
before 
‘‘industrial 
source’’, and 
(3) by striking ‘‘, or the transportation or stor-
age’’ and all that follows and inserting the following: 
‘‘(ii) the generation of electric power 
or thermal energy exclusively using any 
qualified energy resource (as defined in 
section 45(c)(1)), 
‘‘(iii) the operation of energy property 
(as defined in section 48(a)(3), determined 
without regard to any date by which the 
construction of the facility is required to 
begin), 
‘‘(iv) in the case of a facility described 
in paragraph (3) or (7) of section 45(d) 
(determined without regard to any placed 
in service date or date by which construc-
tion of the facility is required to begin), 
the accepting or processing of open-loop 
biomass or municipal solid waste,
2560 
‘‘(v) the storage of electric power or 
thermal energy exclusively using energy 
property that is energy storage property 
(as defined in section 48(c)(5)), 
‘‘(vi) the generation, storage, or dis-
tribution of electric power or thermal en-
ergy exclusively using energy property that 
is combined heat and power system prop-
erty (as defined in section 48(c)(3), deter-
mined without regard to subparagraph 
(B)(iii) thereof and without regard to any 
date by which the construction of the facil-
ity is required to begin), 
‘‘(vii) the transportation or storage of 
any fuel described in subsection (b), (c), 
(d), or (e) of section 6426, 
‘‘(viii) the conversion of renewable bio-
mass (as defined in subparagraph (I) of 
section 211(o)(1) of the Clean Air Act (as 
in effect on the date of the enactment of 
this clause)) into renewable fuel (as de-
fined in subparagraph (J) of such section 
as so in effect), or the storage or transpor-
tation of such fuel,
2561 
‘‘(ix) the production, storage, or 
transportation of any fuel which— 
‘‘(I) uses as its primary feedstock 
carbon oxides captured from an an-
thropogenic source or the atmosphere, 
‘‘(II) does not use as its primary 
feedstock carbon oxide which is delib-
erately released from naturally occur-
ring subsurface springs, and 
‘‘(III) is determined by the Sec-
retary, after consultation with the 
Secretary of Energy and the Adminis-
trator of the Environmental Protec-
tion Agency, to achieve a reduction of 
not less than a 60 percent in lifecycle 
greenhouse gas emissions (as defined 
in section 211(o)(1)(H) of the Clean 
Air Act, as in effect on the date of the 
enactment of this clause) compared to 
baseline lifecycle greenhouse gas emis-
sions 
(as 
defined 
in 
section 
211(o)(1)(C) of such Act, as so in ef-
fect), 
‘‘(x) the generation of electric power 
from, a qualifying gasification project (as
2562 
defined in section 48B(c)(1) without re-
gard to subparagraph (C)) that is de-
scribed in section 48(d)(1)(B), or 
‘‘(xi) in the case of a qualified facility 
(as defined in section 45Q(d), without re-
gard to any date by which construction of 
the facility is required to begin) not less 
than 50 percent (30 percent in the case of 
a facility placed in service before January 
1, 2021) of the total carbon oxide produc-
tion of which is qualified carbon oxide (as 
defined in section 45Q(c))— 
‘‘(I) the generation, availability 
for such generation, or storage of elec-
tric power at such facility, or 
‘‘(II) the capture of carbon diox-
ide by such facility,’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section apply to taxable years beginning after Decem-
ber 31, 2020. 
Subtitle B—Renewable Fuels 
SEC. 90411. BIODIESEL AND RENEWABLE DIESEL. 
(a) INCOME TAX CREDIT.—Section 40A(g) is amend-
ed to read as follows: 
‘‘(g) PHASE OUT; TERMINATION.—
2563 
‘‘(1) PHASE OUT.—In the case of any sale or 
use after December 31, 2022, subsections (b)(1)(A) 
and (b)(2)(A) shall be applied by substituting for 
‘$1.00’— 
‘‘(A) ‘$.75’, if such sale or use is before 
January 1, 2024, 
‘‘(B) ‘$.50’, if such sale or use is after De-
cember 31, 2023, and before January 1, 2025, 
and 
‘‘(C) ‘$.33’, if such sale or use is after De-
cember 31, 2024, and before January 1, 2026. 
‘‘(2) TERMINATION.—This section shall not 
apply to any sale or use after December 31, 2025.’’. 
(b) EXCISE TAX INCENTIVES.— 
(1) PHASE OUT.—Section 6426(c)(2) is amend-
ed to read as follows: 
‘‘(2) APPLICABLE AMOUNT.—For purposes of 
this subsection, the applicable amount is— 
‘‘(A) $1.00 in the case of any sale or use 
for any period before January 1, 2023, 
‘‘(B) $.75 in the case of any sale or use for 
any period after December 31, 2022, and before 
January 1, 2024,
2564 
‘‘(C) $.50 in the case of any sale or use for 
any period after December 31, 2023, and before 
January 1, 2025, and 
‘‘(D) $.33 in the case of any sale or use 
for any period after December 31, 2024, and 
before January 1, 2026.’’. 
(2) TERMINATION.— 
(A) IN GENERAL.—Section 6426(c)(6) is 
amended by striking ‘‘December 31, 2022’’ and 
inserting ‘‘December 31, 2025’’. 
(B) PAYMENTS.—Section 6427(e)(6)(B) is 
amended by striking ‘‘December 31, 2022’’ and 
inserting ‘‘December 31, 2025’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to fuel sold or used after December 
31, 2022. 
SEC. 90412. EXTENSION OF EXCISE TAX CREDITS RELATING 
TO ALTERNATIVE FUELS. 
(a) EXTENSION AND PHASEOUT OF ALTERNATIVE 
FUEL CREDIT.— 
(1) 
IN
GENERAL.—Section 
6426(d)(1) 
is 
amended by striking ‘‘50 cents’’ and inserting ‘‘the 
applicable amount’’. 
(2) APPLICABLE AMOUNT AND TERMINATION.— 
Section 6426(d)(5) is amended to read as follows:
2565 
‘‘(5) PHASEOUT AND TERMINATION.— 
‘‘(A) PHASEOUT.—For purposes of this 
subsection, the applicable amount is— 
‘‘(i) 50 cents in the case of any sale 
or use for any period before January 1, 
2023, 
‘‘(ii) 38 cents in the case of any sale 
or use for any period after December 31, 
2022, and before January 1, 2024, 
‘‘(iii) 25 cents in the case of any sale 
or use for any period after December 31, 
2023, and before January 1, 2025, and 
‘‘(iv) 17 cents in the case of any sale 
or use for any period after December 31, 
2024, and before January 1, 2026. 
‘‘(B) 
TERMINATION.—This 
subsection 
shall not apply to any sale or use for any period 
after December 31, 2025.’’. 
(b) ALTERNATIVE FUEL MIXTURE CREDIT.— 
(1) 
IN
GENERAL.—Section 
6426(e)(3) 
is 
amended by striking ‘‘December 31, 2020’’ and in-
serting ‘‘December 31, 2025’’. 
(2) PHASEOUT.—Section 6426(e)(1) is amend-
ed by striking ‘‘50 cents’’ and inserting ‘‘the applica-
ble amount (as defined in subsection (d)(5)(A))’’.
2566 
(c) PAYMENTS FOR ALTERNATIVE FUELS.—Section 
6427(e)(6)(C) is amended by striking ‘‘December 31, 
2020’’ and inserting ‘‘December 31, 2025’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to fuel sold or used after December 
31, 2020. 
SEC. 90413. EXTENSION OF SECOND GENERATION BIOFUEL 
INCENTIVES. 
(a) IN GENERAL.—Section 40(b)(6)(J)(i) is amended 
by striking ‘‘2021’’ and inserting ‘‘2026’’. 
(b) EXTENSION OF SPECIAL ALLOWANCE FOR DE-
PRECIATION OF SECOND GENERATION BIOFUEL PLANT 
PROPERTY.—Section 168(l)(2)(D) is amended by striking 
‘‘2021’’ and inserting ‘‘2026’’. 
(c) EFFECTIVE DATE.— 
(1) IN
GENERAL.—The amendment made by 
subsection (a) shall apply to qualified second genera-
tion biofuel production after December 31, 2020. 
(2) SECOND
GENERATION
BIOFUEL
PLANT 
PROPERTY.—The amendment made by subsection 
(b) shall apply to property placed in service after 
December 31, 2020.
2567 
Subtitle C—Green Energy and Effi-
ciency Incentives for Individ-
uals 
SEC. 90421. EXTENSION, INCREASE, AND MODIFICATIONS 
OF NONBUSINESS ENERGY PROPERTY CRED-
IT. 
(a) EXTENSION OF CREDIT.—Section 25C(g)(2) is 
amended by striking ‘‘December 31, 2020’’ and inserting 
‘‘December 31, 2025’’. 
(b) INCREASE IN CREDIT PERCENTAGE FOR QUALI-
FIED
ENERGY
EFFICIENCY
IMPROVEMENTS.—Section 
25C(a)(1) is amended by striking ‘‘10 percent’’ and insert-
ing ‘‘15 percent’’. 
(c) INCREASE IN LIFETIME LIMITATION OF CRED-
IT.—Section 25C(b)(1) is amended— 
(1) by striking ‘‘$500’’ and inserting ‘‘$1,200’’, 
and 
(2) by striking ‘‘December 31, 2005’’ and in-
serting ‘‘December 31, 2020’’. 
(d) LIMITATIONS.—Section 25C(b) is amended by 
striking paragraphs (2) and (3) and inserting the fol-
lowing: 
‘‘(2) LIMITATION ON QUALIFIED ENERGY EFFI-
CIENCY IMPROVEMENTS.—The credit allowed under 
this section by reason of subsection (a)(1), with re-
2568 
spect to costs paid or incurred by a taxpayer for a 
taxable year, shall not exceed— 
‘‘(A) for components described in sub-
section (c)(3)(A), the excess (if any) of $600 
over the aggregate credits allowed under this 
section with respect to such components for all 
prior taxable years ending after December 31, 
2020, 
‘‘(B) for components described in sub-
section (c)(3)(B)— 
‘‘(i) in the case of components which 
are not described in clause (ii), the excess 
(if any) of $200 over the aggregate credits 
allowed under this section with respect to 
such components for all prior taxable years 
ending after December 31, 2020, and 
‘‘(ii) in the case of components which 
meet the standards for most efficient cer-
tification under applicable Energy Star 
program requirements, the excess (if any) 
of $600 over the aggregate credits allowed 
under this section with respect to such 
components for all prior taxable years end-
ing after December 31, 2020, or with re-
2569 
spect to components described in clause (i) 
for such taxable year, and 
‘‘(C) for components described in sub-
section (c)(3)(C) by any taxpayer for any tax-
able year, the credit allowed under this section 
with respect to such amounts for such year 
shall not exceed the lesser of— 
‘‘(i) the excess (if any) of $500 over 
the aggregate credits allowed under this 
section with respect to such amounts for 
all prior taxable years ending after Decem-
ber 31, 2020, or 
‘‘(ii) $250 for each exterior door. 
‘‘(3) LIMITATION
ON
RESIDENTIAL
ENERGY 
PROPERTY
EXPENDITURES.—The credit allowed 
under this section by reason of subsection (a)(2) 
shall not, with respect to an item of property, ex-
ceed— 
‘‘(A) in the case of property described in 
subparagraph (A), (B), or (C) of subsection 
(d)(3), $600, 
‘‘(B) for the case of property described in 
subparagraph (D) of subsection (d)(3), $400, 
‘‘(C) in the case of a hot water boiler, 
$600, and
2570 
‘‘(D) in the case of a furnace, an amount 
equal to the sum of— 
‘‘(i) $300, plus 
‘‘(ii) if the taxpayer is converting 
from a non-condensing furnace to a con-
densing furnace, $300.’’. 
(e) STANDARDS FOR ENERGY EFFICIENT BUILDING 
ENVELOPE COMPONENTS.—Section 25C(c)(2) is amended 
by striking ‘‘meets—’’ and all that follows through the pe-
riod at the end and inserting the following: ‘‘meets— 
‘‘(A) in the case of an exterior window, a 
skylight, or an exterior door, applicable Energy 
Star program requirements, and 
‘‘(B) in the case of any other component, 
the prescriptive criteria for such component es-
tablished by the 2018 IECC (as such term is 
defined in section 45L(b)(5)).’’. 
(f) ROOFS
NOT
BUILDING
ENVELOPE
COMPO-
NENTS.—Section 25C(c)(3) is amended by adding ‘‘and’’ 
at the end of subparagraph (B), by striking ‘‘, and’’ at 
the end of subparagraph (C) and inserting a period, and 
by striking subparagraph (D). 
(g) ADVANCED MAIN AIR CIRCULATING FANS NOT 
QUALIFIED ENERGY PROPERTY.—
2571 
(1) IN
GENERAL.—Section 25C(d)(2)(A) is 
amended by adding ‘‘or’’ at the end of clause (i), by 
striking ‘‘, or’’ at the end of clause (ii) and inserting 
a period, and by striking clause (iii). 
(2) 
CONFORMING
AMENDMENT.—Section 
25C(d) is amended by striking paragraph (5) and 
redesignating paragraph (6) as paragraph (5). 
(h) INCREASE IN STANDARD FOR ELECTRIC HEAT 
PUMP WATER HEATER.—Section 25C(d)(3)(A) is amend-
ed by striking ‘‘an energy factor of at least 2.0’’ and in-
serting ‘‘a uniform energy factor of at least 3.0’’. 
(i) UPDATE OF STANDARDS FOR CERTAIN ENERGY- 
EFFICIENT BUILDING PROPERTY.—Section 25C(d)(3) is 
amended— 
(1) by striking ‘‘January 1, 2009’’ each place 
such term appears and inserting ‘‘November 1, 
2019’’, and 
(2) by striking subparagraph (D) and inserting 
the following: 
‘‘(D) a natural gas, propane, or oil water 
heater which, in the standard Department of 
Energy test procedure, yields— 
‘‘(i) in the case of a storage tank 
water heater—
2572 
‘‘(I) in the case of a medium- 
draw water heater, a uniform energy 
factor of not less than 0.78, and 
‘‘(II) in the case of a high-draw 
water heater, a uniform energy factor 
of not less than 0.80, and 
‘‘(ii) in the case of a tankless water 
heater— 
‘‘(I) in the case of a medium- 
draw water heater, a uniform energy 
factor of not less than 0.87, and 
‘‘(II) in the case of a high-draw 
water heater, a uniform energy factor 
of not less than 0.90, and’’. 
(j) INCREASE IN STANDARD FOR FURNACES.—Sec-
tion 25C(d)(4) is amended by striking by striking ‘‘not 
less than 95.’’ and inserting the following: ‘‘not less 
than— 
‘‘(A) in the case of a furnace, 97 percent, 
and 
‘‘(B) in the case of a hot water boiler, 95 
percent.’’. 
(k) HOME ENERGY AUDITS.— 
(1) IN GENERAL.—Section 25C(a) is amended 
by striking ‘‘and’’ at the end of paragraph (1), by
2573 
striking the period at the end of paragraph (2) and 
inserting ‘‘, and’’, and by adding at the end the fol-
lowing new paragraph: 
‘‘(3) 30 percent of the amount paid or incurred 
by the taxpayer during the taxable year for home en-
ergy audits.’’. 
(2) LIMITATION.—Section 25C(b) is amended 
adding at the end the following new paragraph: 
‘‘(4) HOME ENERGY AUDITS.—The amount of 
the credit allowed under this section by reason of 
subsection (a)(3) shall not exceed $150.’’. 
(3) HOME ENERGY AUDITS.—Section 25C, as 
amended by subsections (a), is amended by redesig-
nating subsections (e), (f), and (g), as subsections 
(f), (g), and (h), respectively, and by inserting after 
subsection (d) the following new subsection: 
‘‘(e) HOME ENERGY AUDITS.—For purposes of this 
section, the term ‘home energy audit’ means an inspection 
and written report with respect to a dwelling unit located 
in the United States and owned or used by the taxpayer 
as the taxpayer’s principal residence (within the meaning 
of section 121) which— 
‘‘(1) identifies the most significant and cost-ef-
fective energy efficiency improvements with respect 
to such dwelling unit, including an estimate of the
2574 
energy and cost savings with respect to each such 
improvement, and 
‘‘(2) is conducted and prepared by a home en-
ergy auditor that meets the certification or other re-
quirements specified by the Secretary (after con-
sultation with the Secretary of Energy, and not later 
than 180 days after the date of the enactment of 
this subsection) in regulations or other guidance.’’. 
(4) 
CONFORMING
AMENDMENT.—Section 
1016(a)(33) is amended by striking ‘‘section 25C(f)’’ 
and inserting ‘‘section 25C(g)’’. 
(l) EFFECTIVE DATES.— 
(1) INCREASE
AND
MODERNIZATION.—Except 
as otherwise provided by this subsection, the amend-
ments made by this section shall apply to property 
placed in service after December 31, 2020. 
(2) EXTENSION.—The amendments made by 
subsection (a) shall apply to property placed in serv-
ice after December 31, 2020. 
(3) HOME ENERGY AUDITS.—The amendments 
made by subsection (k) shall apply to amounts paid 
or incurred after December 31, 2020. 
SEC. 90422. RESIDENTIAL ENERGY EFFICIENT PROPERTY. 
(a) EXTENSION OF CREDIT.—
2575 
(1) IN GENERAL.—Section 25D(h) is amended 
by striking ‘‘December 31, 2021’’ and inserting 
‘‘December 31, 2027’’. 
(2) 
APPLICATION
OF
PHASEOUT.—Section 
25D(g) is amended— 
(A) in paragraph (1), by striking ‘‘January 
1, 2020’’ and inserting ‘‘January 1, 2026’’, 
(B) in paragraph (2)— 
(i) by striking ‘‘December 31, 2019’’ 
and inserting ‘‘December 31, 2025’’, and 
(ii) by striking ‘‘January 1, 2021’’ 
and inserting ‘‘January 1, 2027’’, and 
(C) in paragraph (3)— 
(i) by striking ‘‘December 31, 2020’’ 
and inserting ‘‘December 31, 2026’’, and 
(ii) by striking ‘‘January 1, 2022’’ 
and inserting ‘‘January 1, 2028’’. 
(b) QUALIFIED BIOMASS FUEL PROPERTY EXPENDI-
TURES; RESIDENTIAL ENERGY EFFICIENT PROPERTY 
CREDIT FOR BATTERY STORAGE TECHNOLOGY.— 
(1) IN GENERAL.—Section 25D(a) is amended 
by striking ‘‘and’’ at the end of paragraph (4) and 
by inserting after paragraph (5) the following new 
paragraphs:
2576 
‘‘(6) the qualified biomass fuel property expend-
itures, and 
‘‘(7) the qualified battery storage technology ex-
penditures,’’. 
(2) QUALIFIED BIOMASS FUEL PROPERTY EX-
PENDITURES; 
RESIDENTIAL
ENERGY
EFFICIENT 
PROPERTY CREDIT FOR BATTERY STORAGE TECH-
NOLOGY.—Section 25D(d) is amended by adding at 
the end the following new paragraphs: 
‘‘(6) QUALIFIED BIOMASS FUEL PROPERTY EX-
PENDITURE.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
biomass fuel property expenditure’ means an 
expenditure for property— 
‘‘(i) which uses the burning of bio-
mass fuel to heat a dwelling unit located in 
the United States and used as a residence 
by the taxpayer, or to heat water for use 
in such a dwelling unit, and 
‘‘(ii) which has a thermal efficiency 
rating of at least 75 percent (measured by 
the higher heating value of the fuel). 
‘‘(B) BIOMASS
FUEL.—For purposes of 
this section, the term ‘biomass fuel’ means any
2577 
plant-derived fuel available on a renewable or 
recurring basis. 
‘‘(7) QUALIFIED
BATTERY
STORAGE
TECH-
NOLOGY
EXPENDITURE.—The term ‘qualified bat-
tery storage technology expenditure’ means an ex-
penditure for battery storage technology which— 
‘‘(A) is installed in connection with a 
dwelling unit located in the United States and 
used as a residence by the taxpayer, and 
‘‘(B) has a capacity of not less than 3 kilo-
watt hours.’’. 
(3) DENIAL OF DOUBLE BENEFIT FOR BIOMASS 
STOVES.— 
(A) IN
GENERAL.—Section 25C(d)(3) is 
amended by adding ‘‘and’’ at the end of sub-
paragraph (C), by striking ‘‘, and’’ at the end 
of subparagraph (D) and inserting a period, 
and by striking subparagraph (E). 
(B) CONFORMING
AMENDMENT.—Section 
25C(d), as amended by the preceding provisions 
of this Act, is amended by striking paragraph 
(5). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenditures made after the 
date of the enactment of this Act.
2578 
SEC. 90423. ENERGY EFFICIENT COMMERCIAL BUILDINGS 
DEDUCTION. 
(a) EXTENSION.—Section 179D(h) is amended by 
striking ‘‘December 31, 2020’’ and inserting ‘‘December 
31, 2025’’. 
(b) INCREASE IN THE MAXIMUM AMOUNT OF DE-
DUCTION.— 
(1) IN GENERAL.—Section 179D(b) is amended 
by striking ‘‘$1.80’’ and inserting ‘‘$3’’. 
(2) INFLATION
ADJUSTMENT.—Section 179D, 
as amended by this Act, is amended by redesig-
nating subsection (h) as subsection (i) and by insert-
ing after subsection (g) the following new subsection: 
‘‘(h) INFLATION ADJUSTMENT.—In the case of a tax-
able year beginning after 2020, each dollar amount in sub-
section (b) or subsection (d)(1)(A) shall be increased by 
an amount equal to— 
‘‘(1) such dollar amount, multiplied by 
‘‘(2) the cost-of-living adjustment determined 
under section 1(f)(3) for the calendar year in which 
the taxable year begins, determined by substituting 
‘calendar year 2019’ for ‘calendar year 2016’ in sub-
paragraph (A)(ii) thereof.’’. 
(3) 
CONFORMING
AMENDMENT.—Section 
179D(d)(1)(A) is amended by striking ‘‘by sub-
2579 
stituting ‘$.60’ for ‘$1.80’ ’’ and inserting ‘‘by sub-
stituting ‘$1’ for ‘$3’ ’’. 
(c) LIMIT ON DEDUCTION LIMITED TO THREE-YEAR 
PERIOD.—Section 179D(b)(2) is amended by striking ‘‘for 
all prior taxable years’’ and inserting ‘‘for the 3 years im-
mediately preceding such taxable year’’. 
(d) UPDATE OF STANDARDS.— 
(1) ASHRAE STANDARDS.—Section 179D(c) is 
amended— 
(A) in paragraphs (1)(B)(ii) and (1)(D), 
by striking ‘‘Standard 90.1–2007’’ and insert-
ing ‘‘Reference Standard 90.1’’, and 
(B) by amending paragraph (2) to read as 
follows: 
‘‘(2) REFERENCE STANDARD 90.1.—The term 
‘Reference Standard 90.1’ means, with respect to 
property, the Standard 90.1 most recently adopted 
(as of the date that is 2 years before the date that 
construction of such property begins) by the Amer-
ican Society of Heating, Refrigerating, and Air Con-
ditioning Engineers and the Illuminating Engineer-
ing Society of North America.’’. 
(2) 
CALIFORNIA
NONRESIDENTIAL
ALTER-
NATIVE
CALCULATION
METHOD
APPROVAL
MAN-
2580 
UAL.—Section 179D(d)(2) is amended by striking 
‘‘2005’’ and inserting ‘‘2019’’. 
(e) CHANGE IN EFFICIENCY STANDARDS.—Section 
179D(c)(1)(D) is amended by striking ‘‘50’’ and inserting 
‘‘30’’. 
(f) DEADWOOD.—Section 179D, as amended by sub-
section (a), is amended by striking subsection (f) and re-
designating subsections (g) and (h) as subsections (f) and 
(g), respectively. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to property placed in service after 
December 31, 2020. 
SEC. 90424. EXTENSION, INCREASE, AND MODIFICATIONS 
OF NEW ENERGY EFFICIENT HOME CREDIT. 
(a) EXTENSION
OF CREDIT.—Section 45L(g) is 
amended by striking ‘‘December 31, 2020’’ and inserting 
‘‘December 31, 2025’’. 
(b) INCREASE IN CREDIT FOR CERTAIN DWELLING 
UNITS.—Section 45L(a)(2)(A) is amended by striking 
‘‘$2,000’’ and inserting ‘‘$2,500’’. 
(c) INCREASE
IN STANDARD
FOR HEATING
AND 
COOLING REDUCTION
FOR CERTAIN UNITS.—Section 
45L(c)(1) is amended by striking ‘‘50 percent’’ each place 
such term appears and inserting ‘‘60 percent’’.
2581 
(d) ENERGY SAVING REQUIREMENTS MODIFICA-
TIONS.— 
(1) ALL ENERGY STAR LABELED HOMES ELIGI-
BLE; NO REDUCTION IN STANDARD.—Section 45L(c) 
is amended by amending paragraph (3) to read as 
follows: 
‘‘(3) a unit which meets the requirements estab-
lished by the Administrator of the Environmental 
Protection Agency under the Energy Star Labeled 
Homes program and, in the case of a manufactured 
home, which conforms to Federal Manufactured 
Home Construction and Safety Standards (part 
3280 of title 24, Code of Federal Regulations).’’. 
(2) UNITS
CONSTRUCTED
IN
ACCORDANCE 
WITH
2018
IECC
STANDARDS.—Section 45L(c), as 
amended by paragraph (1), is further amended by 
striking ‘‘or’’ at the end of paragraph (2), by strik-
ing the period at the end of paragraph (3) and in-
serting ‘‘, or’’, and by adding at the end the fol-
lowing new paragraph: 
‘‘(4) certified— 
‘‘(A) to have a level of annual energy con-
sumption which is at least 15 percent below the 
annual level of energy consumption of a com-
parable dwelling unit—
2582 
‘‘(i) which is constructed in accord-
ance with the standards of chapter 4 of the 
2018 IECC (without taking into account 
on-site energy generation), and 
‘‘(ii) which meets the requirements de-
scribed in paragraph (1)(A)(ii), and 
‘‘(B) to have building envelope component 
improvements account for at least 1/5 of such 
15 percent.’’. 
(3) CONFORMING AMENDMENTS.— 
(A) Section 45L(c)(2) is amended by in-
serting ‘‘or (4)’’ after ‘‘paragraph (1)’’. 
(B) Section 45L(a)(2)(A) is amended by 
striking ‘‘or (2)’’ and inserting ‘‘, (2), or (4)’’. 
(C) Section 45L(b) is amended by adding 
at the end the following: 
‘‘(5) 2018 
IECC.—The term ‘2018 IECC’ 
means the 2018 International Energy Conservation 
Code, as such Code (including supplements) is in ef-
fect on November 1, 2018.’’. 
(e) EFFECTIVE DATES.—The amendments made by 
this section shall apply to dwelling units acquired after 
December 31, 2020.
2583 
SEC. 90425. MODIFICATIONS TO INCOME EXCLUSION FOR 
CONSERVATION SUBSIDIES. 
(a) IN GENERAL.—Section 136(a) is amended— 
(1) by striking ‘‘any subsidy provided’’ and in-
serting ‘‘any subsidy— 
‘‘(1) provided’’, 
(2) by striking the period at the end and insert-
ing a comma, and 
(3) by adding at the end the following new 
paragraphs: 
‘‘(2) provided (directly or indirectly) by a public 
utility to a customer, or by a State or local govern-
ment to a resident of such State or locality, for the 
purchase or installation of any water conservation or 
efficiency measure, 
‘‘(3) provided (directly or indirectly) by a storm 
water management provider to a customer, or by a 
State or local government to a resident of such State 
or locality, for the purchase or installation of any 
storm water management measure, or 
‘‘(4) provided (directly or indirectly) by a State 
or local government to a resident of such State or 
locality for the purchase or installation of any waste-
water management measure, but only if such meas-
ure is with respect to the taxpayer’s principal resi-
dence.’’.
2584 
(b) CONFORMING AMENDMENTS.— 
(1) DEFINITION OF WATER CONSERVATION OR 
EFFICIENCY MEASURE AND STORM WATER MANAGE-
MENT MEASURE.—Section 136(c) is amended— 
(A) by striking ‘‘ENERGY CONSERVATION 
MEASURE’’ in the heading thereof and inserting 
‘‘DEFINITIONS’’, 
(B) by striking ‘‘IN
GENERAL’’ in the 
heading of paragraph (1) and inserting ‘‘EN-
ERGY CONSERVATION MEASURE’’, and 
(C) by redesignating paragraph (2) as 
paragraph (5) and by inserting after paragraph 
(1) the following: 
‘‘(2) WATER
CONSERVATION
OR
EFFICIENCY 
MEASURE.—For purposes of this section, the term 
‘water conservation or efficiency measure’ means any 
evaluation of water use, or any installation or modi-
fication of property, the primary purpose of which is 
to reduce consumption of water or to improve the 
management of water demand with respect to one or 
more dwelling units. 
‘‘(3) STORM WATER MANAGEMENT MEASURE.— 
For purposes of this section, the term ‘storm water 
management measure’ means any installation or 
modification of property primarily designed to re-
2585 
duce or manage amounts of storm water with re-
spect to one or more dwelling units. 
‘‘(4) WASTEWATER MANAGEMENT MEASURE.— 
For purposes of this section, the term ‘wastewater 
management measure’ means any installation or 
modification of property primarily designed to man-
age wastewater (including septic tanks and cess-
pools) with respect to one or more dwelling units.’’. 
(2) DEFINITION OF PUBLIC UTILITY.—Section 
136(c)(5) (as redesignated by paragraph (1)(C)) is 
amended by striking subparagraph (B) and inserting 
the following: 
‘‘(B) PUBLIC UTILITY.—The term ‘public 
utility’ means a person engaged in the sale of 
electricity, natural gas, or water to residential, 
commercial, or industrial customers for use by 
such customers. 
‘‘(C) STORM
WATER
MANAGEMENT
PRO-
VIDER.—The term ‘storm water management 
provider’ means a person engaged in the provi-
sion of storm water management measures to 
the public. 
‘‘(D) PERSON.—For purposes of subpara-
graphs (B) and (C), the term ‘person’ includes 
the Federal Government, a State or local gov-
2586 
ernment or any political subdivision thereof, or 
any instrumentality of any of the foregoing.’’. 
(3) CLERICAL AMENDMENTS.— 
(A) The heading for section 136 is amend-
ed— 
(i) by inserting ‘‘AND WATER’’ after 
‘‘ENERGY’’, and 
(ii) by striking ‘‘PROVIDED BY PUB-
LIC UTILITIES’’. 
(B) The item relating to section 136 in the 
table of sections of part III of subchapter B of 
chapter 1 is amended— 
(i) by inserting ‘‘and water’’ after 
‘‘energy’’, and 
(ii) by striking ‘‘provided by public 
utilities’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts received after Decem-
ber 31, 2018. 
(d) NO INFERENCE.—Nothing in this Act or the 
amendments made by this Act shall be construed to create 
any inference with respect to the proper tax treatment of 
any subsidy received directly or indirectly from a public 
utility, a storm water management provider, or a State 
or local government for any water conservation measure
2587 
or storm water management measure before January 1, 
2021. 
Subtitle D—Greening the Fleet and 
Alternative Vehicles 
SEC. 90431. MODIFICATION OF LIMITATIONS ON NEW 
QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR 
VEHICLE CREDIT. 
(a) IN GENERAL.—Section 30D(e) is amended to 
read as follows: 
‘‘(e) LIMITATION ON NUMBER OF NEW QUALIFIED 
PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES ELIGIBLE 
FOR CREDIT.— 
‘‘(1) IN
GENERAL.—In the case of any new 
qualified plug-in electric drive motor vehicle sold 
after the date of the enactment of the GREEN Act 
of 2020— 
‘‘(A) if such vehicle is sold during the tran-
sition period, the amount determined under 
subsection (b)(2) shall be reduced by $500, and 
‘‘(B) if such vehicle is sold during the 
phaseout period, only the applicable percentage 
of the credit otherwise allowable under sub-
section (a) shall be allowed. 
‘‘(2) TRANSITION
PERIOD.—For purposes of 
this subsection, the transition period is the period
2588 
subsequent to the first date on which the number of 
new qualified plug-in electric drive motor vehicles 
manufactured by the manufacturer of the vehicle re-
ferred to in paragraph (1) sold for use in the United 
States after December 31, 2009, is at least 200,000. 
‘‘(3) PHASEOUT PERIOD.— 
‘‘(A) IN GENERAL.—For purposes of this 
subsection, the phaseout period is the period be-
ginning with the second calendar quarter fol-
lowing the calendar quarter which includes the 
first date on which the number of new qualified 
plug-in electric drive motor vehicles manufac-
tured by the manufacturer of the vehicle re-
ferred to in paragraph (1) sold for use in the 
United States after December 31, 2009, is at 
least 600,000. 
‘‘(B) 
APPLICABLE
PERCENTAGE.—For 
purposes of paragraph (1)(B), the applicable 
percentage is— 
‘‘(i) 50 percent for the first calendar 
quarter of the phaseout period, and 
‘‘(ii) 0 percent for each calendar quar-
ter thereafter. 
‘‘(C) EXCLUSION OF SALE OF CERTAIN VE-
HICLES.—
2589 
‘‘(i) IN
GENERAL.—For purposes of 
subparagraph (A), any new qualified plug- 
in electric drive motor vehicle manufac-
tured by the manufacturer of the vehicle 
referred to in paragraph (1) which was 
sold during the exclusion period shall not 
be included for purposes of determining 
the number of such vehicles sold. 
‘‘(ii) EXCLUSION PERIOD.—For pur-
poses of this subparagraph, the exclusion 
period is the period— 
‘‘(I) beginning on the first date 
on which the number of new qualified 
plug-in electric drive motor vehicles 
manufactured by the manufacturer of 
the vehicle referred to in paragraph 
(1) sold for use in the United States 
after December 31, 2009, is at least 
200,000, and 
‘‘(II) ending on the date of the 
enactment of the GREEN Act of 
2020. 
‘‘(4) CONTROLLED GROUPS.—Rules similar to 
the rules of section 30B(f)(4) shall apply for pur-
poses of this subsection.’’.
2590 
(b) EXTENSION FOR 2- AND 3-WHEELED PLUG-IN 
ELECTRIC VEHICLES.—Section 30D(g)(3)(E) is amended 
to read as follows: 
‘‘(E) is acquired after December 31, 2020, 
and before January 1, 2026.’’. 
(c) EFFECTIVE DATE.— 
(1) LIMITATION.—The amendment made by 
subsection (a) shall apply to vehicles sold after the 
date of the enactment of this Act. 
(2) EXTENSION.—The amendment made by 
subsection (b) shall apply to vehicles sold after De-
cember 31, 2020. 
SEC. 90432. CREDIT FOR PREVIOUSLY-OWNED QUALIFIED 
PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES. 
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 is amended by inserting after sec-
tion 25D the following new section: 
‘‘SEC. 25E. PREVIOUSLY-OWNED QUALIFIED PLUG-IN ELEC-
TRIC DRIVE MOTOR VEHICLES. 
‘‘(a) ALLOWANCE
OF CREDIT.—In the case of a 
qualified buyer who during a taxable year places in service 
a previously-owned qualified plug-in electric drive motor 
vehicle, there shall be allowed as a credit against the tax 
imposed by this chapter for the taxable year an amount 
equal to the sum of—
2591 
‘‘(1) $1,250, plus 
‘‘(2) in the case of a vehicle which draws pro-
pulsion energy from a battery which exceeds 4 kilo-
watt hours of capacity (determined at the time of 
sale), the lesser of— 
‘‘(A) $1,250, and 
‘‘(B) the product of $208.50 and such ex-
cess kilowatt hours. 
‘‘(b) LIMITATIONS.— 
‘‘(1) SALE PRICE.—The credit allowed under 
subsection (a) with respect to sale of a vehicle shall 
not exceed 30 percent of the sale price. 
‘‘(2) ADJUSTED GROSS INCOME.—The amount 
which would (but for this paragraph) be allowed as 
a credit under subsection (a) shall be reduced (but 
not below zero) by $250 for each $1,000 (or fraction 
thereof) by which the taxpayer’s adjusted gross in-
come exceeds $30,000 (twice such amount in the 
case of a joint return). 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) PREVIOUSLY-OWNED QUALIFIED PLUG-IN 
ELECTRIC DRIVE MOTOR VEHICLE.—The term ‘pre-
viously-owned qualified plug-in electric drive motor 
vehicle’ means, with respect to a taxpayer, a motor 
vehicle—
2592 
‘‘(A) the model year of which is at least 2 
earlier than the calendar year in which the tax-
payer acquires such vehicle, 
‘‘(B) the original use of which commences 
with a person other than the taxpayer, 
‘‘(C) which is acquired by the taxpayer in 
a qualified sale, 
‘‘(D) registered by the taxpayer for oper-
ation in a State or possession of the United 
States, and 
‘‘(E) which meets the requirements of sub-
paragraphs (C), (D), (E), and (F) of section 
30D(d)(1). 
‘‘(2) QUALIFIED
SALE.—The term ‘qualified 
sale’ means a sale of a motor vehicle— 
‘‘(A) by a person who holds such vehicle in 
inventory (within the meaning of section 471) 
for sale or lease, 
‘‘(B) for a sale price of less than $25,000, 
and 
‘‘(C) which is the first transfer since the 
date of the enactment of this section to a per-
son other than the person with whom the origi-
nal use of such vehicle commenced.
2593 
‘‘(3) QUALIFIED BUYER.—The term ‘qualified 
buyer’ means, with respect to a sale of a motor vehi-
cle, a taxpayer— 
‘‘(A) who is an individual, 
‘‘(B) who purchases such vehicle for use 
and not for resale, 
‘‘(C) with respect to whom no deduction is 
allowable with respect to another taxpayer 
under section 151, 
‘‘(D) who has not been allowed a credit 
under this section for any sale during the 3- 
year period ending on the date of the sale of 
such vehicle, and 
‘‘(E) who possesses a certificate issued by 
the seller that certifies— 
‘‘(i) that the vehicle is a previously- 
owned qualified plug-in electric drive motor 
vehicle, 
‘‘(ii) the capacity of the battery at 
time of sale, and 
‘‘(iii) such other information as the 
Secretary may require. 
‘‘(4) MOTOR VEHICLE; CAPACITY.—The terms 
‘motor vehicle’ and ‘capacity’ have the meaning
2594 
given such terms in paragraphs (2) and (4) of sec-
tion 30D(d), respectively. 
‘‘(d) APPLICATION OF CERTAIN RULES.—For pur-
poses of this section, rules similar to the rules of para-
graphs (1), (2), (4), (5), (6) and (7) of section 30D(f) 
shall apply for purposes of this section. 
‘‘(e) CERTIFICATE SUBMISSION REQUIREMENT.— 
The Secretary may require that the issuer of the certifi-
cate described in subsection (c)(3)(E) submit such certifi-
cate to the Secretary at the time and in the manner re-
quired by the Secretary. 
‘‘(f) TERMINATION.—No credit shall be allowed 
under this section with respect to sales after December 
31, 2025.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subpart A of part IV of subchapter A of chapter 1 
is amended by inserting after the item relating to section 
25D the following new item: 
‘‘Sec. 25E. Previously-owned qualified plug-in electric drive motor vehicles.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to sales after the date of the enact-
ment of this Act.
2595 
SEC. 90433. CREDIT FOR ZERO-EMISSION HEAVY VEHICLES 
AND ZERO-EMISSION BUSES. 
(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. 45U. ZERO-EMISSION HEAVY VEHICLE CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec-
tion 38, in the case of a manufacturer of a zero-emission 
heavy vehicle, the zero-emission heavy vehicle credit deter-
mined under this section for a taxable year is an amount 
equal to 10 percent of the sum of the sale price of each 
zero-emission heavy vehicle sold by such taxpayer during 
such taxable year. 
‘‘(b) LIMITATION.—The sale price of a zero-emission 
heavy vehicle may not be taken into account under sub-
section (a) to the extent such price exceeds $1,000,000. 
‘‘(c) ZERO-EMISSION HEAVY VEHICLE.—For pur-
poses of this section— 
‘‘(1) IN
GENERAL.—The term ‘zero-emission 
heavy vehicle’ means a motor vehicle which— 
‘‘(A) has a gross vehicle weight rating of 
not less than 14,000 pounds, 
‘‘(B) is not powered or charged by an in-
ternal combustion engine, and
2596 
‘‘(C) is propelled solely by an electric 
motor which draws electricity from a battery or 
fuel cell. 
‘‘(2) MOTOR VEHICLE; MANUFACTURER.—The 
term ‘motor vehicle’ and ‘manufacturer’ have the 
meaning given such terms in paragraphs (2) and (3) 
of section 30D(d), respectively. 
‘‘(d) SPECIAL RULES.— 
‘‘(1) SALE PRICE.—For purposes of this sec-
tion, the sale price of a zero-emission heavy vehicle 
shall be reduced by any rebate or other incentive 
given before, on, or after the date of the sale. 
‘‘(2) DOMESTIC USE.—No credit shall be al-
lowed under subsection (a) with respect to a zero- 
emission heavy vehicle to a manufacturer who knows 
or has reason to know that such vehicle will not be 
used primarily in the United States or a possession 
of the United States. 
‘‘(3) REGULATIONS.—The Secretary shall pre-
scribe such regulations as may be necessary or ap-
propriate to carry out the purposes of this section. 
‘‘(e) TERMINATION.—This section shall not apply to 
sales after December 31, 2025.’’. 
(b) CREDIT MADE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38 is amended by
2597 
striking ‘‘plus’’ at the end of paragraph (32), by striking 
the period at the end of paragraph (33) and inserting ‘‘, 
plus’’, and by adding at the end the following new para-
graph: 
‘‘(34) the zero-emission heavy vehicle credit de-
termined under section 45U.’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
is amended by adding at the end the following new item: 
‘‘Sec. 45U. Zero-emission heavy vehicle credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to sales after the date of the enact-
ment of this Act. 
SEC. 90434. QUALIFIED FUEL CELL MOTOR VEHICLES. 
(a) IN GENERAL.—Section 30B(k)(1) is amended by 
striking ‘‘December 31, 2020’’ and inserting ‘‘December 
31, 2025’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to property placed in service after 
December 31, 2020. 
SEC. 90435. ALTERNATIVE FUEL REFUELING PROPERTY 
CREDIT. 
(a) IN GENERAL.—Section 30C(g) is amended by 
striking ‘‘December 31, 2020’’ and inserting ‘‘December 
31, 2025’’.
2598 
(b) ADDITIONAL CREDIT FOR CERTAIN ELECTRIC 
CHARGING PROPERTY.— 
(1) IN GENERAL.—Section 30C(a) is amend-
ed— 
(A) by striking ‘‘equal to 30 percent’’ and 
inserting the following: ‘‘equal to the sum of— 
‘‘(1) 30 percent’’, 
(B) by striking the period at the end and 
inserting ‘‘, plus’’, and 
(C) by adding at the end the following new 
paragraph: 
‘‘(2) 20 percent of so much of such cost as ex-
ceeds the limitation under subsection (b)(1) that 
does not exceed the amount of cost attributable to 
qualified alternative vehicle refueling property (de-
termined without regard to paragraphs (1), (2)(A), 
and (2)(B) of subsection (c)) which— 
‘‘(A) is intended for general public use and 
recharges motor vehicle batteries with no asso-
ciated fee or payment arrangement, 
‘‘(B) is intended for general public use and 
accepts payment via a credit card reader, or 
‘‘(C) is intended for use exclusively by 
fleets of commercial or governmental vehicles.’’.
2599 
(2) 
CONFORMING
AMENDMENT.—Section 
30C(b) is amended— 
(A) by striking ‘‘The credit allowed under 
subsection (a)’’ and inserting ‘‘The amount of 
cost taken into account under subsection 
(a)(1)’’, 
(B) by striking ‘‘$30,000’’ and inserting 
‘‘$100,000’’, and 
(C) by striking ‘‘$1,000’’ and inserting 
‘‘$3,333.33’’. 
(c) EFFECTIVE DATE.—The amendment made by 
this section shall apply to property placed in service after 
December 31, 2020. 
SEC. 
90436. 
MODIFICATION 
OF 
EMPLOYER-PROVIDED 
FRINGE 
BENEFITS 
FOR 
BICYCLE 
COM-
MUTING. 
(a) REPEAL OF SUSPENSION OF EXCLUSION FOR 
QUALIFIED BICYCLE COMMUTING REIMBURSEMENT.— 
Section 132(f) is amended by striking paragraph (8). 
(b) COMMUTING FRINGE INCLUDES BIKESHARE.— 
(1) 
IN
GENERAL.—Clause 
(i) 
of 
section 
132(f)(5)(F) is amended by striking ‘‘a bicycle’’ and 
all that follows and inserting ‘‘bikeshare, a bicycle, 
and bicycle improvements, repair, and storage, if the 
employee regularly uses such bikeshare or bicycle for
2600 
travel between the employee’s residence and place of 
employment or mass transit facility that connects an 
employee to their place of employment.’’. 
(2) 
BIKESHARE.—Section 
132(f)(5)(F) 
is 
amended by adding at the end the following: 
‘‘(iv) 
BIKESHARE.—The 
term 
‘bikeshare’ means a bicycle rental oper-
ation at which bicycles are made available 
to customers to pick up and drop off for 
point-to-point use within a defined geo-
graphic area.’’. 
(c) 
LOW-SPEED
ELECTRIC
BICYCLES.—Section 
132(f)(5)(F), as amended by subsection (b)(2), is amend-
ed by adding at the end the following: 
‘‘(v) LOW-SPEED
ELECTRIC
BICY-
CLES.—The term ‘bicycle’ includes a two- 
or three-wheeled vehicle with fully operable 
pedals and an electric motor of less than 
750 watts (1 h.p.), whose maximum speed 
on a paved level surface, when powered 
solely by such a motor while ridden by an 
operator who weighs 170 pounds, is less 
than 20 mph.’’.
2601 
(d) MODIFICATION RELATING
TO BICYCLE COM-
MUTING MONTH.—Clause (iii) of section 132(f)(5)(F) is 
amended to read as follows: 
‘‘(iii) 
QUALIFIED
BICYCLE
COM-
MUTING MONTH.—The term ‘qualified bi-
cycle commuting month’ means, with re-
spect to any employee, any month during 
which such employee regularly uses a bicy-
cle for a portion of the travel between the 
employee’s residence and place of employ-
ment.’’. 
(e) LIMITATION ON EXCLUSION.— 
(1) IN GENERAL.—Subparagraph (C) of section 
132(f)(2) is amended by striking ‘‘applicable annual 
limitation’’ and inserting ‘‘applicable monthly limita-
tion’’. 
(2) APPLICABLE
MONTHLY
LIMITATION
DE-
FINED.—Clause (ii) of section 132(f)(5)(F) is 
amended to read as follows: 
‘‘(ii) APPLICABLE MONTHLY LIMITA-
TION.—The term ‘applicable monthly limi-
tation’, with respect to any employee for 
any month, means an amount equal to 20 
percent of the dollar amount in effect for 
the month under paragraph (2)(B).’’.
2602 
(3) AGGREGATE
LIMITATION.—Subparagraph 
(B) of section 132(f)(2) is amended by inserting 
‘‘and the applicable monthly limitation in the case of 
any qualified bicycle commuting benefit’’. 
(f) NO CONSTRUCTIVE RECEIPT.—Paragraph (4) of 
section 132(f) is amended by striking ‘‘(other than a quali-
fied bicycle commuting reimbursement)’’. 
(g) 
CONFORMING
AMENDMENTS.—Paragraphs 
(1)(D), (2)(C), and (5)(F) of section 132(f) are each 
amended by striking ‘‘reimbursement’’ each place it ap-
pears and inserting ‘‘benefit’’. 
(h) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2020. 
Subtitle E—Investment in the 
Green Workforce 
SEC. 90441. EXTENSION OF THE ADVANCED ENERGY 
PROJECT CREDIT. 
(a) IN GENERAL.—Section 48C is amended by redes-
ignating subsection (e) as subsection (f) and by inserting 
after subsection (d) the following new subsection: 
‘‘(e) ADDITIONAL ALLOCATIONS.— 
‘‘(1) IN GENERAL.—Not later than 180 days 
after the date of enactment of this paragraph, the 
Secretary, after consultation with the Secretary of
2603 
Energy, shall establish a program to designate 
amounts of qualifying advanced project credit limita-
tion to qualifying advanced energy projects. 
‘‘(2) ANNUAL LIMITATION.— 
‘‘(A) IN GENERAL.—The amount of quali-
fying advanced project credit limitation that 
may be designated under this subsection during 
any calendar year shall not exceed the annual 
credit limitation with respect to such year. 
‘‘(B) ANNUAL
CREDIT
LIMITATION.—For 
purposes of this subsection, the term ‘annual 
credit limitation’ means $2,500,000,000 for 
each of calendar years 2021, 2022, 2023, 2024, 
and 2025, and zero thereafter. 
‘‘(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 2025. 
‘‘(3) PLACED IN SERVICE DEADLINE.—No cred-
it shall be determined under subsection (a) with re-
spect to any property which is placed in service after
2604 
the date that is 4 years after the date of the des-
ignation under this subsection relating to such prop-
erty. 
‘‘(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, after consultation with the 
Secretary of Energy, shall— 
‘‘(A) require that applicants provide writ-
ten assurances to the Secretary that all laborers 
and mechanics employed by contractors and 
subcontractors in the performance of construc-
tion, alteration or repair work on a qualifying 
advanced energy project shall be paid wages at 
rates not less than those prevailing on projects 
of a similar character in the locality as deter-
mined by the Secretary of Labor in accordance 
with subchapter IV of chapter 31 of title 40, 
United States Code, 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
2605 
‘‘(ii) have the greatest potential for 
commercial deployment of new applica-
tions. 
‘‘(5) DISCLOSURE
OF
DESIGNATIONS.—Rules 
similar to the rules of subsection (d)(5) shall apply 
for purposes of this subsection.’’. 
(b) 
CLARIFICATION
WITH
RESPECT
TO 
ELECTROCHROMATIC
GLASS.—Section 
48C(c)(1)((A)(i)(V) is amended— 
(1) by striking ‘‘and smart grid’’ and inserting 
‘‘, smart grid’’, and 
(2) by inserting ‘‘, and electrochromatic glass’’ 
before the comma at the end. 
(c) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on the date of the enactment 
of this Act. 
(d) PROGRESS REPORT.—During the 30-day period 
ending on December 31, 2025, the Secretary of the Treas-
ury (or the Secretary’s delegate), after consultation with 
the Secretary of Labor, shall submit a report to Congress 
on the domestic job creation, wages associated with such 
jobs, and the amount of such wages paid as described in 
section 48C(e)(4)(B) of the Internal Revenue Code of 
1986, attributable to the amendment made by this section.
2606 
SEC. 90442. LABOR COSTS OF INSTALLING MECHANICAL IN-
SULATION 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. 45V. 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 
10 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. 
‘‘(2) MECHANICAL
INSULATION
PROPERTY.— 
The term ‘mechanical insulation property’ means in-
sulation materials, and facings and accessory prod-
2607 
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, 
and 
‘‘(ii) is of a character subject to an al-
lowance for depreciation, 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) 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 (33), by striking the 
period at the end of paragraph (34) and inserting ‘‘, plus’’, 
and by adding at the end the following new paragraph: 
‘‘(35) the mechanical insulation labor costs 
credit determined under section 45V(a).’’.
2608 
(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 
labor costs (as defined in section 45V(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 45V(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 45V(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
2609 
preceding provisions of this Act, is further amended 
by adding at the end the following new item: 
‘‘Sec. 45V. 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, 2020, in taxable years ending after such 
date. 
SEC. 90443. LABOR STANDARDS FOR CERTAIN ENERGY 
JOBS. 
(a) DEPARTMENT
OF LABOR CERTIFICATION
OF 
QUALIFIED ENTITIES.— 
(1) DEFINITIONS.—In this subsection— 
(A) 
APPLICABLE
CONSTRUCTION 
PROJECT.—The term ‘‘applicable construction 
project’’ means, with respect to any entity— 
(i) the installation of any qualified al-
ternative fuel vehicle refueling property (as 
defined in section 30C(c) of the Internal 
Revenue Code of 1986), 
(ii) the installation of any qualified 
energy 
property 
described 
in 
section 
48D(a)(1) of such Code, 
(iii) the installation of any qualified 
property referred to in paragraph (2) of 
section 48D(a) of such Code as part of any
2610 
qualified investment credit facility de-
scribed in such paragraph, and 
(iv) the installation of any energy effi-
cient commercial building property (as de-
fined in section 179D(c)(1) of such Code). 
(B) COVERED
PROJECT
LABOR
AGREE-
MENT.—The term ‘‘covered project labor agree-
ment’’ means a project labor agreement that— 
(i) binds all contractors and sub-
contractors on the construction project 
through the inclusion of appropriate speci-
fications in all relevant solicitation provi-
sions and contract documents, 
(ii) allows all contractors and sub-
contractors to compete for contracts and 
subcontracts without regard to whether 
they are otherwise a party to a collective 
bargaining agreement, 
(iii) 
contains 
guarantees 
against 
strikes, lockouts, and other similar job dis-
ruptions, 
(iv) sets forth effective, prompt, and 
mutually binding procedures for resolving 
labor disputes arising during the covered 
project labor agreement, and
2611 
(v) provides other mechanisms for 
labor-management cooperation on matters 
of mutual interest and concern, including 
productivity, quality of work, safety, and 
health. 
(C) PROJECT
LABOR
AGREEMENT.—The 
term ‘‘project labor agreement’’ means a pre- 
hire collective bargaining agreement with one or 
more labor organizations that establishes the 
terms and conditions of employment for a spe-
cific construction project and is described in 
section 8(f) of the National Labor Relations 
Act (29 U.S.C. 158(f)). 
(D) INSTALLATION
INCLUDES
ON-SITE 
CONSTRUCTION.—Any reference in this sub-
section to the installation of any property shall 
include the construction of such property if 
such construction is performed on the site 
where such property is installed. 
(E) 
QUALIFIED
ENTITY.—The 
term 
‘‘qualified entity’’ means an entity that the Sec-
retary of Labor certifies as a qualified entity in 
accordance with paragraph (2). 
(F) REGISTERED
APPRENTICESHIP
PRO-
GRAM.—The term ‘‘registered apprenticeship
2612 
program’’ means an apprenticeship program 
registered under the Act of August 16, 1937 
(commonly known as the ‘‘National Apprentice-
ship Act’’; 50 Stat. 664, chapter 663; 29 
U.S.C. 50 et seq.), including any requirement, 
standard, or rule promulgated under such Act, 
as such requirement, standard, or rule was in 
effect on December 30, 2019. 
(2) CERTIFICATION OF QUALIFIED ENTITIES.— 
(A) IN GENERAL.—The Secretary of Labor 
shall establish a process for certifying entities 
that submit an application under subparagraph 
(B) as qualified entities with respect to applica-
ble construction projects for purposes of the 
amendments made by subsections (b), (c), and 
(d). 
(B) APPLICATION PROCESS.— 
(i) IN GENERAL.—An entity seeking 
certification as a qualified entity under this 
paragraph shall submit an application to 
the Secretary of Labor at such time, in 
such manner, and containing such infor-
mation as the Secretary may reasonably 
require, including information to dem-
2613 
onstrate compliance with the requirements 
under subparagraph (C). 
(ii) REQUESTS FOR ADDITIONAL IN-
FORMATION.—Not later than 1 year after 
receiving an application from an entity 
under clause (i)— 
(I) the Secretary of Labor may 
request additional information from 
the entity in order to determine 
whether the entity is in compliance 
with the requirements under subpara-
graph (C), and 
(II) the entity shall provide such 
additional information. 
(iii) DETERMINATION
DEADLINE.— 
The Secretary of Labor shall make a de-
termination on whether to certify an entity 
under this subsection not later than— 
(I) in a case in which the Sec-
retary requests additional information 
described in paragraph (2)(B)(ii), 1 
year after the Secretary receives such 
additional information from the enti-
ty, or
2614 
(II) in a case that is not de-
scribed in subclause (I), 1 year after 
the date on which the entity submits 
the application under clause (i). 
(iv) PRECERTIFICATION REMEDIES.— 
The Secretary shall consider any corrective 
actions taken by an entity seeking certifi-
cation under this paragraph to remedy an 
administrative merits determination, arbi-
tral award or decision, or civil judgment 
identified under subparagraph (C)(iii) and 
shall impose as a condition of certification 
any additional remedies necessary to avoid 
further or repeated violations. 
(C) LABOR STANDARDS REQUIREMENTS.— 
The Secretary of Labor shall require an entity, 
as a condition of certification under this sub-
section, to satisfy each of the following require-
ments: 
(i) The entity shall ensure that all la-
borers and mechanics employed by contrac-
tors and subcontractors in the performance 
of any applicable construction project shall 
be paid wages at rates not less than those 
prevailing on projects of a similar char-
2615 
acter in the locality as determined by the 
Secretary of Labor in accordance with sub-
chapter IV of chapter 31 of title 40, 
United States Code (commonly known as 
the ‘‘Davis-Bacon Act’’). 
(ii) In the case of any applicable con-
struction project the cost of which exceeds 
$25,000,000, the entity shall be a party to, 
or require contractors and subcontractors 
in the performance of such applicable con-
struction project to consent to, a covered 
project labor agreement. 
(iii) The entity, and all contractors 
and subcontractors in performance of any 
applicable construction project, shall rep-
resent in the application submitted under 
subparagraph (B) (and periodically there-
after during the performance of the appli-
cable construction project as the Secretary 
of Labor may require) whether there has 
been any administrative merits determina-
tion, arbitral award or decision, or civil 
judgment, as defined in guidance issued by 
the Secretary of Labor, rendered against 
the entity in the preceding 3 years (or, in
2616 
the case of disclosures after the initial dis-
closure, during such period as the Sec-
retary of Labor may provide) for violations 
of— 
(I) the Fair Labor Standards Act 
of 1938 (29 U.S.C. 201 et seq.), 
(II) the Occupational Safety and 
Health Act of 1970 (29 U.S.C. 651 et 
seq.), 
(III) the Migrant and Seasonal 
Agricultural Worker Protection Act 
(29 U.S.C. 1801 et seq.), 
(IV) the National Labor Rela-
tions Act (29 U.S.C. 151 et seq.), 
(V) subchapter IV of chapter 31 
of title 40, United States Code (com-
monly known as the ‘‘Davis-Bacon 
Act’’), 
(VI) chapter 67 of title 41, 
United States Code (commonly known 
as the ‘‘Service Contract Act’’), 
(VII) Executive Order No. 11246 
(42 U.S.C. 2000e note; relating to 
equal employment opportunity),
2617 
(VIII) section 503 of the Reha-
bilitation Act of 1973 (29 U.S.C. 
793), 
(IX) section 4212 of title 38, 
United States Code, 
(X) the Family and Medical 
Leave Act of 1993 (29 U.S.C. 2601 et 
seq.), 
(XI) title VII of the Civil Rights 
Act of 1964 (42 U.S.C. 2000e et 
seq.), 
(XII) the Americans with Dis-
abilities Act of 1990 (42 U.S.C. 
12101 et seq.), 
(XIII) the Age Discrimination in 
Employment Act of 1967 (29 U.S.C. 
621 et seq.), 
(XIV) 
Federal 
Government 
standards establishing a minimum 
wage for contractors, or 
(XV) equivalent State laws, as 
defined in guidance issued by the Sec-
retary of Labor. 
(iv) The entity, and all contractors 
and subcontractors in the performance of
2618 
any applicable construction project, shall 
not require mandatory arbitration for any 
dispute involving a worker engaged in a 
service for the entity unless such worker is 
covered by a collective bargaining agree-
ment that provides otherwise. 
(v) The entity, and all contractors and 
subcontractors in the performance of any 
applicable construction project, shall con-
sider an individual performing any service 
in such performance as an employee (and 
not an independent contractor) of the enti-
ty, contractor, or subcontractor, respec-
tively, unless— 
(I) the individual is free from 
control and direction in connection 
with the performance of the service, 
both under the contract for the per-
formance of the service and in fact, 
(II) the service is performed out-
side the usual course of the business 
of the entity, contractor, or subcon-
tractor, respectively, and 
(III) the individual is customarily 
engaged in an independently estab-
2619 
lished trade, occupation, profession, or 
business of the same nature as that 
involved in such service. 
(vi) The entity shall prohibit all con-
tractors and subcontractors in the per-
formance of any applicable construction 
project from hiring employees through a 
temporary staffing agency unless the rel-
evant State workforce agency certifies that 
temporary employees are necessary to ad-
dress an acute, short-term labor demand. 
(vii) The entity shall require all con-
tractors, subcontractors, successors in in-
terest of the entity, and other entities that 
may acquire the entity, in the performance 
or acquisition of any applicable construc-
tion project, to have an explicit neutrality 
policy on any issue involving the organiza-
tion of employees of the entity, and all con-
tractors and subcontractors in the per-
formance of any applicable construction 
project, for purposes of collective bar-
gaining. 
(viii) The entity shall require all con-
tractors and subcontractors to participate
2620 
in a registered apprenticeship program for 
each skilled craft employed on any applica-
ble construction project. 
(ix) The entity, and all contractors 
and subcontractors in the performance of 
any applicable construction project, shall 
not request or otherwise consider the 
criminal history of an applicant for em-
ployment before extending a conditional 
offer to the applicant, unless— 
(I) a background check is other-
wise required by law, 
(II) the position is for a Federal 
law enforcement officer (as defined in 
section 115(c)(1) of title 18, United 
States Code) position, or 
(III) the Secretary of Labor, 
after consultation with the Secretary 
of Energy, certifies that precluding 
criminal history prior to the condi-
tional offer would pose a threat to na-
tional security. 
(D) DAVIS-BACON ACT.—The Secretary of 
Labor shall have, with respect to the labor 
standards described in subparagraph (C)(i), the
2621 
authority and functions set forth in Reorganiza-
tion Plan Numbered 14 of 1950 (64 Stat. 
1267; 5 U.S.C. App.) and section 3145 of title 
40, United States Code. 
(E) PERIOD
OF
VALIDITY
FOR
CERTIFI-
CATIONS.—A certification made under this sub-
section shall be in effect for a period of 5 years. 
An entity may reapply to the Secretary of 
Labor for an additional certification under this 
subsection in accordance with the application 
process under paragraph (2)(B). 
(F) REVOCATION
OF
QUALIFIED
ENTITY 
STATUS.—The Secretary of Labor may revoke 
the certification of an entity under this sub-
section as a qualified entity at any time in 
which the Secretary reasonably determines the 
entity is no longer in compliance with para-
graph (2)(C). 
(G) CERTIFICATION
MAY
COVER
MORE 
THAN
ONE
SUBSTANTIALLY
SIMILAR 
PROJECT.—The Secretary of Labor may make 
certifications under this paragraph which apply 
with respect to more than one project if the 
projects to which such certification apply are 
substantially similar projects which meet the re-
2622 
quirements of this subsection. Such projects 
shall be treated as a specific construction 
project for purposes of paragraph (1)(C). 
(3) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to carry out 
this section $10,000,000 for fiscal year 2020 and 
each fiscal year thereafter. 
(b) JOBS IN ENERGY CREDIT.— 
(1) IN GENERAL.—Subpart E of part IV of 
subchapter A of chapter 1 of the Internal Revenue 
Code of 1986 is amended by inserting after section 
48C the following new section: 
‘‘SEC. 48D. JOBS IN ENERGY CREDIT. 
‘‘(a) INVESTMENT CREDIT FOR QUALIFIED PROP-
ERTY.—For purposes of section 46, the jobs in energy 
credit for any taxable year is an amount equal to 10 per-
cent of the basis of any qualified energy property placed 
in service by the taxpayer during such taxable year if the 
installation of such property is performed by a qualified 
entity with respect to such property. 
‘‘(b) QUALIFIED ENERGY PROPERTY.—For purposes 
of this section, the term ‘qualified energy property’ 
means— 
‘‘(1) energy property (as defined in section 
48(a)(3)), or
2623 
‘‘(2) qualified property which is part of a quali-
fied investment credit facility (as defined in section 
48(a)(5) without regard to clause (a)(5)(C)(iii)) 
which is originally placed in service after December 
31, 2020. 
‘‘(c) QUALIFIED ENTITY.—For purposes of this sec-
tion— 
‘‘(1) IN GENERAL.—The term ‘qualified entity’ 
means, with respect to the installation of any quali-
fied energy property, an entity which is certified by 
the Secretary of Labor as being in compliance with 
all of the applicable requirements under section 
90443(a) of the GREEN Act of 2020 with respect 
to such installation at all times during the period be-
ginning on the date on which the installation of such 
property begins and ending on the date on which 
such property is placed in service. 
‘‘(2) CERTIFICATION OF FACILITY REQUIRED.— 
In the case of any qualified property referred to in 
subsection (b)(2), an entity shall be treated as a 
qualified entity with respect to the installation of 
such property only if the Secretary of Labor has cer-
tified that the construction of the qualified invest-
ment credit facility of which such qualified property 
is a part as being in compliance with all of the appli-
2624 
cable requirements under section 90443(a) of the 
GREEN Act of 2020 for the period referred to in 
paragraph (1). 
‘‘(d) SPECIAL RULES.— 
‘‘(1) CERTAIN PROGRESS EXPENDITURE RULES 
MADE APPLICABLE.—Rules similar to the rules of 
subsections (c)(4) and (d) of section 46 (as in effect 
on the day before the date of the enactment of the 
Revenue Reconciliation Act of 1990) shall apply for 
purposes of subsection (a). 
‘‘(2) SPECIAL RULE FOR PROPERTY FINANCED 
BY SUBSIDIZED ENERGY FINANCING OR INDUSTRIAL 
DEVELOPMENT BONDS.—For purposes of subsection 
(a), rules similar to the rules of section 48(a)(4) 
shall apply for purposes of determining the basis of 
any qualified energy property. 
‘‘(3) INSTALLATION
INCLUDES
ON-SITE
CON-
STRUCTION.—Any reference in this section to the in-
stallation of any property shall include the construc-
tion of such property if such construction is per-
formed on the site where such property is installed. 
‘‘(4) RECAPTURE.—If the Secretary of Labor 
revokes the certification of a qualified entity with re-
spect to the installation of any property, the tax im-
posed under this chapter on the taxpayer to whom
2625 
the credit determined under this section is allowed 
shall be increased for the taxable year which in-
cludes the date of such revocation by an amount 
equal to the aggregate decrease in the credits al-
lowed under section 38 for all prior taxable years 
which would have resulted solely from reducing to 
zero any credit determined under this section with 
respect to such property. 
‘‘(5) 
ELECTION
NOT
TO
HAVE
SECTION 
APPLY.—This section shall not apply with respect to 
any taxpayer for any taxable year if such taxpayer 
elects (at such time and in such manner as the Sec-
retary may prescribe) not to have this section 
apply.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 46 of such Code is amended by 
striking ‘‘and’’ at the end of paragraph (5), by 
striking the period at the end of paragraph (6) 
and inserting ‘‘, and’’, and by adding at the end 
the following new paragraph: 
‘‘(7) the jobs in energy credit.’’. 
(B) Section 49(a)(1)(C) of such Code is 
amended by striking ‘‘and’’ at the end of clause 
(iv), by striking the period at the end of clause
2626 
(v) and inserting a comma, and by adding at 
the end the following new clause: 
‘‘(vi) the basis of any qualified energy 
property under section 48D.’’. 
(C) Section 50(a)(2)(E) of such Code is 
amended by striking ‘‘ or 48C(b)(2)’’ and in-
serting ‘‘48C(b)(2), or 48D(d)(1)’’. 
(D) The table of sections for subpart E of 
part IV of subchapter A of chapter 1 of such 
Code is amended by inserting after the item re-
lating to section 48C the following new item: 
‘‘Sec. 48D. Jobs in energy credit.’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to periods after De-
cember 31, 2020, under rules similar to the rules of 
section 48(m) of the Internal Revenue Code of 1986 
(as in effect on the day before the date of the enact-
ment of the Revenue Reconciliation Act of 1990). 
(c) INCREASE IN ENERGY EFFICIENT COMMERCIAL 
BUILDING DEDUCTION FOR INSTALLATION BY QUALI-
FIED ENTITIES.— 
(1) IN GENERAL.—Section 179D(d) of the In-
ternal Revenue Code of 1986 is amended by adding 
at the end the following: 
‘‘(7) ADJUSTMENT FOR QUALIFIED ENTITIES.— 
In the case of any energy efficient commercial build-
2627 
ing property which was installed (within the mean-
ing of section 48D(d)(3)) by an entity which is cer-
tified by the Secretary of Labor as being in compli-
ance with all of the applicable requirements under 
section 90443(a) of the GREEN Act of 2020 with 
respect to such installation, subsection (b)(1)(A) 
shall be applied by substituting ‘$3.20’ for ‘$3’.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
179D(d)(1)(A) of such Code is amended by inserting 
‘‘(or, in the case of property to which paragraph (7) 
applies, by substituting ‘$1.07’ for ‘$3.20’ in such 
paragraph)’’ before the period at the end. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to property placed in 
service after December 31, 2020. 
(d) INCREASE IN ALTERNATIVE FUEL VEHICLE RE-
FUELING PROPERTY CREDIT
FOR INSTALLATION
BY 
QUALIFIED ENTITIES.— 
(1) IN GENERAL.—Section 30C(a), as amended 
by the preceding provisions of this Act, is amended 
by striking ‘‘plus’’ at the end of paragraph (1), by 
striking the period at the end of paragraph (2) and 
inserting ‘‘, plus’’, and by adding at the end the fol-
lowing new paragraph:
2628 
‘‘(3) in the case of any qualified alternative fuel 
vehicle refueling property which was installed (within 
the meaning of section 48D(d)(3)) by an entity 
which is certified by the Secretary of Labor as being 
in compliance with all of the applicable requirements 
under section 90443(a) of the GREEN Act of 2020 
with respect to such installation, 10 percent of the 
amount of costs taken into account under paragraph 
(1) with respect to such property.’’. 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to property placed in 
service after December 31, 2020. 
Subtitle F—Environmental Justice 
SEC. 90451. QUALIFIED ENVIRONMENTAL JUSTICE PRO-
GRAM CREDIT. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 is amended by adding at the end 
the following new section: 
‘‘SEC. 36C. 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
2629 
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 
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 popu-
lated disproportionately by racial or ethnic minori-
ties. 
‘‘(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. 
‘‘(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-
2630 
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, after consultation with the Secretary of 
Energy, the Secretary of Education, the Sec-
retary of Health and Human Services, and the 
Administrator of the Environmental Protection
2631 
Agency, shall select applications on the basis of 
the following criteria: 
‘‘(i) The extent of participation of fac-
ulty and students of an institution de-
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 populated disproportionately by ra-
cial or ethnic minorities. 
‘‘(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
2632 
‘‘(ii) the credits previously claimed by 
such institution for such program under 
this section. 
‘‘(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 2021, 
2022, 2023, 2024, and 2025, and 
‘‘(ii) $0 for each subsequent year. 
‘‘(f) REQUIREMENTS.— 
‘‘(1) IN GENERAL.—An eligible educational in-
stitution that has been allocated credit dollar 
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
2633 
‘‘(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.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 6211(b)(4)(A) is amended by insert-
ing ‘‘36C,’’ after ‘‘36B,’’. 
(2) Paragraph (2) of section 1324(b) of title 
31, United States Code, is amended by inserting 
‘‘36C,’’ after ‘‘36B,’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart C of part IV of subchapter A of chapter 1 
is amended by inserting after the item relating to section 
36B the following new item: 
‘‘Sec. 36C. Qualified environmental justice programs.’’.
2634 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
Subtitle G—Treasury Report on 
Data From the Greenhouse Gas 
Reporting Program 
SEC. 90461. REPORT ON GREENHOUSE GAS REPORTING 
PROGRAM. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of the 
Treasury (or the Secretary’s delegate) shall submit a re-
port to Congress on the utility of the data from the Green-
house Gas Reporting Program for determining the amount 
of greenhouse gases emitted by each taxpayer for the pur-
pose of imposing a fee on such taxpayers with respect to 
such emissions. Such report shall include a detailed de-
scription and analysis of any administrative or other chal-
lenges associated with using such data for such purpose. 
(b) GREENHOUSE GAS REPORTING PROGRAM.—For 
purposes of this section, the term ‘‘Greenhouse Gas Re-
porting Program’’ means the reporting program estab-
lished by the Administrator of the Environmental Protec-
tion Agency under title II of division F of the Consolidated 
Appropriations Act, 2008.
2635 
TITLE V—DISASTER AND 
RESILIENCY 
SEC. 90501. EXCLUSION OF AMOUNTS RECEIVED FROM 
STATE-BASED CATASTROPHE LOSS MITIGA-
TION PROGRAMS. 
(a) IN GENERAL.—Section 139 of the Internal Rev-
enue Code of 1986 is amended by redesignating subsection 
(h) as subsection (i) and by inserting after subsection (g) 
the following new subsection: 
‘‘(h) STATE-BASED CATASTROPHE LOSS MITIGATION 
PROGRAMS.— 
‘‘(1) IN GENERAL.—Gross income shall not in-
clude any amount received by an individual as a 
qualified catastrophe mitigation payment under a 
program established by a State, or a political sub-
division or instrumentality thereof, for the purpose 
of making such payments. 
‘‘(2) QUALIFIED
CATASTROPHE
MITIGATION 
PAYMENT.—For purposes of this section, the term 
‘qualified catastrophe mitigation payment’ means 
any amount which is received by an individual to 
make improvements to such individual’s residence 
for the sole purpose of reducing the damage that 
would be done to such residence by a windstorm, 
earthquake, or wildfire.
2636 
‘‘(3) NO INCREASE IN BASIS.—Rules similar to 
the rules of subsection (g)(3) shall apply in the case 
of this subsection.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 139(d) is amended by striking ‘‘and 
qualified’’ and inserting ‘‘, qualified catastrophe 
mitigation payments, and qualified’’. 
(2) Section 139(i) (as redesignated by sub-
section (a)) is amended by striking ‘‘or qualified’’ 
and inserting ‘‘, qualified catastrophe mitigation 
payment, or qualified’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2019. 
SEC. 90502. REPEAL OF TEMPORARY LIMITATION ON PER-
SONAL CASUALTY LOSSES. 
(a) IN GENERAL.—Section 165(h) is amended by 
striking paragraph (5). 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to losses incurred in taxable years 
beginning after December 31, 2017. 
(c) REGULATIONS.—The Secretary of the Treasury, 
or the Secretary’s designee, shall issue regulations or other 
guidance consistent with Revenue Procedure 2017–60 to 
implement the amendment made by this section.
2637 
TITLE VI—HOUSING 
Subtitle A—Low-Income Housing 
Tax Credit Improvements 
SEC. 90601. EXTENSION OF PERIOD FOR REHABILITATION 
EXPENDITURES. 
(a) IN GENERAL.—Clause (ii) of section 42(e)(3)(A) 
is amended by inserting ‘‘(any 36-month period, in the 
case of buildings receiving an allocation of housing credit 
dollar amount before January 1, 2022)’’ after ‘‘24-month 
period’’. 
(b) CONFORMING AMENDMENT.—Subparagraph (A) 
of section 42(e)(4) is amended by inserting ‘‘(or 36-month 
period, if applicable)’’ after ‘‘24-month period’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to buildings receiving an allocation 
of housing credit dollar amount after December 31, 2016. 
SEC. 90602. EXTENSION OF BASIS EXPENDITURE DEADLINE. 
(a) IN GENERAL.—Clause (i) of section 42(h)(1)(E) 
is amended by inserting ‘‘(the third calendar year, in the 
case of an allocation made before January 1, 2022)’’ after 
‘‘second calendar year’’. 
(b) QUALIFIED BUILDING.—Clause (ii) of section 
42(h)(1)(E) is amended—
2638 
(1) by striking ‘‘the date which is 1 year after 
the date that the allocation was made’’ and inserting 
‘‘the applicable date’’, 
(2) by inserting ‘‘(or third, if applicable)’’ after 
‘‘second’’ in the first sentence, 
(3) by inserting ‘‘(or third)’’ after ‘‘second’’ in 
the second sentence, 
(4) by striking ‘‘BUILDING.—For purposes of’’ 
and inserting ‘‘BUILDING.— 
‘‘(I) IN GENERAL.—For purposes 
of’’, and 
(5) by adding at the end the following new sub-
clause: 
‘‘(II) APPLICABLE
DATE.—For 
purposes of subclause (I), the applica-
ble date is 1 year after the date that 
the allocation was made with respect 
to the building (2 years, in the case of 
allocations made before January 1, 
2022).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to buildings receiving an allocation 
of housing credit dollar amount after December 31, 2016.
2639 
SEC. 90603. TAX-EXEMPT BOND FINANCING REQUIREMENT. 
(a) IN GENERAL.—Subparagraph (B) of section 
42(h)(4) is amended by adding at the end the following: 
‘‘In the case of buildings financed by an obligation issued 
in calendar years ending before January 1, 2022, the pre-
ceding sentence shall be applied by substituting ‘25 per-
cent’ for ‘50 percent’.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to buildings placed in service in 
taxable years beginning after December 31, 2019. 
SEC. 90604. MINIMUM CREDIT RATE. 
(a) IN GENERAL.—Subsection (b) of section 42 is 
amended— 
(1) by redesignating paragraph (3) as para-
graph (4), and 
(2) by inserting after paragraph (2) the fol-
lowing new paragraph: 
‘‘(3) MINIMUM CREDIT RATE.—In the case of 
any new or existing building to which paragraph (2) 
does not apply, the applicable percentage shall not 
be less than 4 percent.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to buildings which receive alloca-
tions of housing credit dollar amount or, in the case of 
projects financed by tax-exempt bonds as described in sec-
tion 42(h)(4) of the Internal Revenue Code of 1986, which
2640 
are placed in service by the taxpayer after January 20, 
2020. 
SEC. 90605. INCREASES IN STATE ALLOCATIONS. 
(a) IN GENERAL.—Clause (ii) of section 42(h)(3)(C) 
is amended— 
(1) by striking ‘‘$1.75’’ in subclause (I) and in-
serting ‘‘$4.56 ($3.58 in the case of calendar year 
2021)’’, and 
(2) by striking ‘‘$2,000,000’’ in subclause (II) 
and inserting ‘‘$5,214,051 ($4,097,486 in the case 
of calendar year 2021)’’. 
(b) COST-OF-LIVING ADJUSTMENT.—Subparagraph 
(H) of section 42(h)(3) is amended— 
(1) by striking ‘‘2002’’ in clause (i) and insert-
ing ‘‘2020’’, 
(2) by striking ‘‘the $2,000,000 and $1.75 
amounts in subparagraph (C)’’ in clause (i) and in-
serting ‘‘the dollar amounts applicable to such cal-
endar year under subclauses (I) and (II) of subpara-
graph (C)(ii)’’, 
(3) by striking ‘‘2001’’ in clause (i)(II) and in-
serting ‘‘2019’’, 
(4) by striking ‘‘$2,000,000 amount’’ in clause 
(ii)(I) and inserting ‘‘amount under subparagraph 
(C)(ii)(II)’’, and
2641 
(5) by striking ‘‘$1.75 amount’’ in clause 
(ii)(II) and inserting ‘‘amount under subparagraph 
(C)(ii)(I)’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to calendar years beginning after 
December 31, 2020. 
SEC. 90606. INCREASE IN CREDIT FOR CERTAIN PROJECTS 
DESIGNATED TO SERVE EXTREMELY LOW-IN-
COME HOUSEHOLDS. 
(a) IN GENERAL.—Paragraph (5) of section 42(d) is 
amended by adding at the end the following new subpara-
graph: 
‘‘(C) INCREASE IN CREDIT FOR PROJECTS 
DESIGNATED
TO
SERVE
EXTREMELY
LOW-IN-
COME HOUSEHOLDS.—In the case of any build-
ing— 
‘‘(i) 20 percent or more of the resi-
dential units in which are rent-restricted 
(determined as if the imputed income limi-
tation applicable to such units were 30 
percent of area median gross income) and 
are designated by the taxpayer for occu-
pancy by households the aggregate house-
hold income of which does not exceed the 
greater of—
2642 
‘‘(I) 30 percent of area median 
gross income, or 
‘‘(II) 100 percent of an amount 
equal to the Federal poverty line 
(within 
the 
meaning 
of 
section 
36B(d)(3)), and 
‘‘(ii) which is designated by the hous-
ing credit agency as requiring the increase 
in credit under this subparagraph in order 
for such building to be financially feasible 
as part of a qualified low-income housing 
project, 
subparagraph (B) shall not apply to the portion 
of such building which is comprised of such 
units, and the eligible basis of such portion of 
the building shall be 150 percent of such basis 
determined without regard to this subpara-
graph.’’. 
(b) RESERVED STATE ALLOCATION.—Subparagraph 
(C) of section 42(h)(3) is amended— 
(1) by striking ‘‘plus’’ at the end of clause (iii), 
(2) by striking the period at the end of clause 
(iv) and inserting ‘‘, plus’’, 
(3) by inserting after clause (iv) the following 
new clause:
2643 
‘‘(v) an amount equal to 10 percent of 
the sum of the amounts determined under 
clauses (i), (ii), (iii), and (iv) (if any).’’, 
and 
(4) by adding at the end the following: ‘‘Any 
amount allocated pursuant to clause (v) shall be ac-
counted for separately and shall be allocated only to 
buildings to which subsection (d)(5)(C) applies.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to buildings which receive alloca-
tions of housing credit dollar amount or, in the case of 
projects financed by tax-exempt bonds as described in sec-
tion 42(h)(4) of the Internal Revenue Code of 1986, which 
receive a determination of housing credit dollar amount, 
after the date of the enactment of this Act. 
SEC. 90607. INCLUSION OF INDIAN AREAS AS DIFFICULT 
DEVELOPMENT AREAS FOR PURPOSES OF 
CERTAIN BUILDINGS. 
(a) 
IN
GENERAL.—Subclause 
(I) 
of 
section 
42(d)(5)(B)(iii) is amended by inserting before the period 
the following: ‘‘, and any Indian area’’. 
(b) 
INDIAN
AREA.—Clause 
(iii) 
of 
section 
42(d)(5)(B) is amended by redesignating subclause (II) 
as subclause (IV) and by inserting after subclause (I) the 
following new subclauses:
2644 
‘‘(II) INDIAN
AREA.—For pur-
poses of subclause (I), the term ‘In-
dian area’ means any Indian area (as 
defined in section 4(11) of the Native 
American Housing Assistance and 
Self Determination Act of 1996 (25 
U.S.C. 4103(11))). 
‘‘(III) 
SPECIAL
RULE
FOR 
BUILDINGS IN INDIAN AREAS.—In the 
case of an area which is a difficult de-
velopment area solely because it is an 
Indian area, a building shall not be 
treated as located in such area unless 
such building is assisted or financed 
under the Native American Housing 
Assistance and Self Determination 
Act of 1996 (25 U.S.C. 4101 et seq.) 
or the project sponsor is an Indian 
tribe 
(as 
defined 
in 
section 
45A(c)(6)), a tribally designated hous-
ing entity (as defined in section 4(22) 
of such Act (25 U.S.C. 4103(22))), or 
wholly owned or controlled by such an 
Indian tribe or tribally designated 
housing entity.’’.
2645 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to buildings placed in service after 
December 31, 2019. 
SEC. 90608. INCLUSION OF RURAL AREAS AS DIFFICULT DE-
VELOPMENT AREAS. 
(a) 
IN
GENERAL.—Subclause 
(I) 
of 
section 
42(d)(5)(B)(iii), as amended by the preceding sections of 
this Act, is amended by inserting ‘‘, any rural area’’ after 
‘‘median gross income’’. 
(b) 
RURAL
AREA.—Clause 
(iii) 
of 
section 
42(d)(5)(B), as amended by the preceding sections of this 
Act, is further amended by redesignating subclause (IV) 
as subclause (V) and by inserting after subclause (III) the 
following new subclause: 
‘‘(IV) RURAL
AREA.—For pur-
poses of subclause (I), the term ‘rural 
area’ means any non-metropolitan 
area, or any rural area as defined by 
section 520 of the Housing Act of 
1949, which is identified by the quali-
fied allocation plan under subsection 
(m)(1)(B).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to buildings placed in service after 
December 31, 2019.
2646 
SEC. 90609. INCREASE IN CREDIT FOR BOND-FINANCED 
PROJECTS DESIGNATED BY HOUSING CREDIT 
AGENCY. 
(a) IN GENERAL.—Clause (v) of section 42(d)(5)(B) 
is amended by striking the second sentence. 
(b) TECHNICAL AMENDMENT.—Clause (v) of section 
42(d)(5)(B), as amended by subsection (a), is further 
amended— 
(1) by striking ‘‘STATE’’ in the heading, and 
(2) by striking ‘‘State housing credit agency’’ 
and inserting ‘‘housing credit agency’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to buildings which receive a deter-
mination of housing credit dollar amount after the date 
of the enactment of this Act. 
SEC. 90610. REPEAL OF QUALIFIED CONTRACT OPTION. 
(a) TERMINATION OF OPTION FOR CERTAIN BUILD-
INGS.— 
(1) IN
GENERAL.—Subclause (II) of section 
42(h)(6)(E)(i) is amended by inserting ‘‘in the case 
of a building described in clause (iii),’’ before ‘‘on 
the last day’’. 
(2) 
BUILDINGS
DESCRIBED.—Subparagraph 
(E) of section 42(h)(6) is amended by adding at the 
end the following new clause:
2647 
‘‘(iii) 
BUILDINGS
DESCRIBED.—A 
building described in this clause is a build-
ing— 
‘‘(I) which received its allocation 
of housing credit dollar amount before 
January 1, 2020, or 
‘‘(II) in the case of a building 
any portion of which is financed as 
described in paragraph (4), which re-
ceived before January 1, 2020, a de-
termination from the issuer of the 
tax-exempt bonds or the housing cred-
it agency that the building is eligible 
to receive an allocation of housing 
credit dollar amount under the rules 
of paragraphs (1) and (2) of sub-
section (m).’’. 
(b) RULES RELATING TO EXISTING PROJECTS.— 
Subparagraph (F) of section 42(h)(6) is amended by strik-
ing ‘‘the nonlow-income portion’’ and all that follows and 
inserting ‘‘the nonlow-income portion and the low-income 
portion of the building for fair market value (determined 
by the housing credit agency by taking into account the 
rent restrictions required for the low-income portion of the 
building to continue to meet the standards of paragraphs
2648 
(1) and (2) of subsection (g)). The Secretary shall pre-
scribe such regulations as may be necessary or appropriate 
to carry out this paragraph.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Paragraph (6) of section 42(h) is amended 
by striking subparagraph (G) and by redesignating 
subparagraphs (H), (I), (J), and (K) as subpara-
graphs (G), (H), (I), and (J), respectively. 
(2) Subclause (II) of section 42(h)(6)(E)(i), as 
amended by subsection (a), is further amended by 
striking ‘‘subparagraph (I)’’ and inserting ‘‘subpara-
graph (H)’’. 
(d) TECHNICAL AMENDMENT.—Subparagraph (I) of 
section 42(h)(6), as redesignated by subsection (c), is 
amended by striking ‘‘agreement’’ and inserting ‘‘commit-
ment’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to buildings with respect to which 
a written request described in section 42(h)(6)(H) of the 
Internal Revenue Code of 1986 is submitted after the date 
of the enactment of this Act. 
SEC. 90611. PROHIBITION OF LOCAL APPROVAL AND CON-
TRIBUTION REQUIREMENTS. 
(a) IN GENERAL.—Paragraph (1) of section 42(m) 
is amended—
2649 
(1) by striking clause (ii) of subparagraph (A) 
and by redesignating clauses (iii) and (iv) thereof as 
clauses (ii) and (iii), and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(E) LOCAL APPROVAL OR CONTRIBUTION 
NOT TAKEN INTO ACCOUNT.—The selection cri-
teria under a qualified allocation plan shall not 
include consideration of— 
‘‘(i) any support or opposition with re-
spect to the project from local or elected 
officials, or 
‘‘(ii) any local government contribu-
tion to the project, except to the extent 
such contribution is taken into account as 
part of a broader consideration of the 
project’s ability to leverage outside funding 
sources, and is not prioritized over any 
other source of outside funding.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to allocations of housing credit dol-
lar amounts made after December 31, 2020.
2650 
SEC. 90612. ADJUSTMENT OF CREDIT TO PROVIDE RELIEF 
DURING COVID–19 OUTBREAK. 
(a) IN GENERAL.—At the election of a taxpayer who 
is an owner of an eligible low-income building— 
(1) the credit determined under section 42 of 
the Internal Revenue Code of 1986 for the first or 
second taxable year of such building’s credit period 
ending on or after July 1, 2020, shall be 150 per-
cent of the amount which would (but for this sub-
section) be so allowable with respect to such building 
for such taxable year, and 
(2) the aggregate credits allowable under such 
section with respect to such building shall be re-
duced, on a pro rata basis for each subsequent tax-
able year in the credit period, by the increase in the 
credit allowed by reason of paragraph (1) with re-
spect to such first or second taxable year. 
The preceding sentence shall not be construed to affect 
whether any taxable year is part of the credit, compliance, 
or extended use periods for purposes of such section 42. 
(b) ELIGIBLE LOW-INCOME BUILDING.—For pur-
poses of this section, the term ‘‘eligible low-income build-
ing’’ means a qualified low-income building with respect 
to which— 
(1) the first year in the credit period ends on 
or after July 1, 2020, and before July 1, 2022, and
2651 
(2) construction or leasing delays have occurred 
after January 31, 2020, due to the outbreak of 
coronavirus disease 2019 (COVID–19) in the United 
States. 
(c) ELECTION.— 
(1) IN
GENERAL.—The election under sub-
section (a) shall be made at such time and in such 
manner as shall be prescribed by the Secretary of 
the Treasury (or the Secretary’s delegate) and, once 
made, shall be irrevocable by the taxpayer and any 
successor in ownership. 
(2) PARTNERSHIPS.—In the case of an eligible 
low-income building owned by a partnership or S 
corporation, such election shall be made at the entity 
level. 
(3) CERTIFICATION.—An owner making such 
election shall provide to the housing credit agency, 
at the same time and in addition to such other infor-
mation as may be required under section 42(l)(1) of 
the Internal Revenue Code of 1986 with respect to 
the building, a certification that the purpose of mak-
ing such election is to offset any reductions in cap-
ital or additional costs arising by reason of the out-
break of coronavirus disease 2019 (COVID–19) in 
the United States. Such certification shall include
2652 
any documentation which the housing credit agency 
may request. 
(d) DEFINITIONS.—Any term used in this section 
which is also used in section 42 of the Internal Revenue 
Code of 1986 shall have the same meaning as when used 
in such section. 
SEC. 90613. CREDIT FOR LOW-INCOME HOUSING SUP-
PORTIVE SERVICES. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 is amended by inserting after sec-
tion 42 the following new section: 
‘‘SEC. 42A. CREDIT FOR CONTRIBUTIONS TO LOW-INCOME 
HOUSING SUPPORTIVE SERVICES. 
‘‘(a) IN GENERAL.—For purposes of section 38, the 
amount of the low-income housing supportive services 
credit determined under this section for the applicable tax-
able year is an amount equal to 25 percent of the qualified 
supportive housing contribution made by the taxpayer. 
‘‘(b) QUALIFIED SUPPORTIVE HOUSING CONTRIBU-
TION.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified sup-
portive housing contribution’ means the total 
amount contributed in cash by the taxpayer to a 
qualified supportive housing reserve fund with re-
2653 
spect to a qualified low-income building, determined 
as of the date the building is placed in service. 
‘‘(2) QUALIFIED
SUPPORTIVE
HOUSING
RE-
SERVE FUND.—The term ‘qualified supportive hous-
ing reserve fund’ means, with respect to any quali-
fied low-income building, a separate fund reserved 
exclusively for payment for qualified supportive serv-
ices provided to tenants of the building pursuant to 
an extended supportive services commitment. The 
owner of such building shall designate an adminis-
trator to separately account for the amounts in the 
fund in such manner as the Secretary may prescribe. 
‘‘(3) LIMITATIONS.— 
‘‘(A) IN
GENERAL.—No amount attrib-
utable to any governmental grant, including 
grants provided by the government of any 
State, possession, tribe, or locality, shall be 
taken into account under paragraph (1). 
‘‘(B) DOLLAR
LIMITATION.—The total 
qualified supportive housing contributions taken 
into account under this section with respect to 
any qualified low-income building shall not ex-
ceed— 
‘‘(i) $120,000, multiplied by
2654 
‘‘(ii) the number of low-income units 
in the building which are occupied at the 
close of the applicable taxable year. 
‘‘(c) APPLICABLE TAXABLE YEAR.—For purposes of 
this section, the term ‘applicable taxable year’ means the 
1st taxable year in the credit period with respect to the 
qualified low-income building described in subsection 
(b)(1). 
‘‘(d) QUALIFIED SUPPORTIVE SERVICES.—For pur-
poses of this section, the term ‘qualified supportive serv-
ices’ means services— 
‘‘(1) provided by the owner of a qualified low- 
income building (directly or through contracts with 
a third party service provider) to tenants of the 
building, 
‘‘(2) which include health services (including 
mental health services), coordination of tenant bene-
fits, job training, financial counseling, resident en-
gagement services, or services the principal purpose 
of which is to help tenants retain permanent hous-
ing, or such other services as the Secretary may by 
regulation provide, 
‘‘(3) which are provided at no cost to tenants, 
and
2655 
‘‘(4) usage of or participation in which is not 
required for tenants. 
Such term includes reasonable and necessary measures for 
the provision of such services, including measures to en-
gage tenants in and coordinate such services and measures 
required to obtain the certification described in subsection 
(e)(4). 
‘‘(e) EXTENDED SUPPORTIVE SERVICES COMMIT-
MENT.—The term ‘extended supportive services commit-
ment’ means any agreement between the owner of a quali-
fied low-income building and the housing credit agency 
which— 
‘‘(1) requires that amounts in a qualified sup-
portive housing reserve fund are spent exclusively on 
the provision of qualified supportive services to ten-
ants of such building, 
‘‘(2) requires that the amounts in such fund be 
spent entirely during the extended use period, and 
provides for the manner in which such spending will 
be distributed across such period, 
‘‘(3) requires the designation of one or more in-
dividuals to engage tenants regarding and coordinate 
delivery of qualified supportive services, 
‘‘(4) requires the maintenance of an appro-
priate certification, as determined by the Secretary
2656 
after consultation with housing credit agencies, for 
qualified supportive services, subject to recertifi-
cation at least once every 5 years, 
‘‘(5) requires appropriate annual reporting to 
the housing credit agency on expenditures and out-
comes, as determined by such agency, and 
‘‘(6) is binding on all successors in ownership of 
such building. 
‘‘(f) RECAPTURE OF QUALIFIED SUPPORTIVE HOUS-
ING RESERVE AMOUNTS.— 
‘‘(1) IN GENERAL.—If the owner of a qualified 
low-income building is determined to be noncompli-
ant with the extended supportive services commit-
ment or extended low-income housing commitment 
with respect to such building, any remaining 
amounts in the qualified supportive housing reserve 
fund with respect to such building shall be trans-
ferred to the housing credit agency. 
‘‘(2) USE OF REPAYMENTS.—A housing credit 
agency shall use any amount received pursuant to 
paragraph (1) only for purposes of qualified low-in-
come buildings. 
‘‘(g) SPECIAL RULES.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of this section, no credit shall be allowed
2657 
under this section for any taxable year with respect 
to any qualified low-income building unless— 
‘‘(A) the building has received an alloca-
tion of the low-income housing credit under sec-
tion 42 by a housing credit agency which is ap-
proved by the governmental unit (in accordance 
with rules similar to the rules of section 
147(f)(2) (other than subparagraph (B)(ii) 
thereof)) of which such agency is a part, 
‘‘(B) the housing credit agency sets forth 
selection criteria to determine appropriate, evi-
dence-based supportive services and provides a 
procedure that the agency (or an agent or other 
private contractor of such agency) will follow in 
monitoring for noncompliance with the provi-
sions of this section and in reporting such non-
compliance to the Secretary, 
‘‘(C) an extended low-income housing com-
mitment is in effect with respect to such build-
ing as of the end of such taxable year, 
‘‘(D) an extended supportive services com-
mitment is in effect with respect to such build-
ing as of the end of such taxable year, and 
‘‘(E) appropriate books and records for 
itemized expenses and expenditures with respect
2658 
to the qualified supportive housing reserve fund 
are maintained on an annual basis, and are 
available for inspection upon request by the 
housing credit agency. 
‘‘(2) DENIAL OF DOUBLE BENEFIT.—The de-
ductions otherwise allowed under this chapter for the 
taxable year shall be reduced by the amount of the 
credit allowed under this section for such taxable 
year. 
‘‘(h) DEFINITIONS.—Any term used in this section 
which is also used in section 42 shall have the same mean-
ing as when used in such section.’’. 
(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.— 
(1) IN GENERAL.—Section 38(b), as amended 
by the preceding provisions of this Act, is amended 
by striking ‘‘plus’’ at the end of paragraph (34), by 
striking the period at the end of paragraph (35) and 
inserting ‘‘, plus’’, and by adding at the end the fol-
lowing new paragraph: 
‘‘(36) the low-income housing supportive serv-
ices credit determined under section 42A(a).’’. 
(2) TREATMENT
AS
SPECIFIED
CREDIT.— 
Clause (iii) of section 38(c)(4)(B) is amended by in-
2659 
serting ‘‘, and the credit determined under section 
42A’’ after ‘‘2007’’. 
(c) TREATMENT FOR PURPOSES OF TAX ON BASE 
EROSION PAYMENTS.—Paragraph (4) of section 59A(b) 
is amended by redesignating subparagraphs (B) and (C) 
as subparagraphs (C) and (D), respectively, and by insert-
ing after subparagraph (A) the following new subpara-
graph: 
‘‘(B) the low-income housing supportive 
services 
credit 
determined 
under 
section 
42A(a),’’. 
(d) PASSIVE ACTIVITY CREDITS.— 
(1) IN GENERAL.—Section 469 is amended by 
striking ‘‘42’’ each place it appears in subsections 
(i)(3)(C), (i)(6)(B)(i), and (k)(1) and inserting ‘‘42 
or 42A’’. 
(2) CONFORMING
AMENDMENTS.—The head-
ings of subsections (i)(3)(C) and (i)(6)(B) of section 
469 are each amended by striking ‘‘CREDIT’’ and in-
serting ‘‘CREDITS’’. 
(e) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by in-
serting after the item relating to section 42 the following 
new item: 
‘‘Sec. 42A. Credit for contributions to low-income housing supportive services.’’.
2660 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to buildings placed in service after 
December 31, 2020. 
Subtitle B—Neighborhood Homes 
Credit 
SEC. 90621. NEIGHBORHOOD HOMES CREDIT. 
(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 amended by inserting after section 
42A the following new section: 
‘‘SEC. 42B. NEIGHBORHOOD HOMES CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec-
tion 38, the amount of the neighborhood homes credit de-
termined under this section for a taxable year for a quali-
fied project shall be, with respect to each qualified resi-
dence that is part of such qualified project and that expe-
riences a qualified completion event during such taxable 
year, an amount equal to— 
‘‘(1) in the case of an affordable sale, with re-
spect to the seller, the excess of— 
‘‘(A) the qualified development cost in-
curred by such seller for such qualified resi-
dence, over 
‘‘(B) the sale price of such qualified resi-
dence, or
2661 
‘‘(2) in the case of any other qualified comple-
tion event, with respect to a taxpayer other than the 
owner of the qualified residence (or a related person 
with respect to such owner), the excess of— 
‘‘(A) the development cost incurred by 
such taxpayer for such qualified residence, over 
‘‘(B) the amount received by such taxpayer 
as payment for such rehabilitation. 
‘‘(b) LIMITATIONS.— 
‘‘(1) AMOUNT.—The amount determined under 
subsection (a) with respect to a qualified residence 
shall not exceed 35 percent of the lesser of— 
‘‘(A) the qualified development cost, or 
‘‘(B) 80 percent of the national median 
sale price for new homes (as determined pursu-
ant to the most recent census data available as 
of the date on which the neighborhood homes 
credit agency makes an allocation for the quali-
fied project). 
‘‘(2) ALLOCATIONS.— 
‘‘(A) IN
GENERAL.—The amount deter-
mined under subsection (a) with respect to a 
qualified residence that is part of a qualified 
project and that experiences a qualified comple-
tion event shall not exceed the excess of—
2662 
‘‘(i) the amount determined under 
subparagraph (B), over 
‘‘(ii) the amounts previously deter-
mined under subsection (a) with respect to 
such qualified project. 
‘‘(B) ALLOCATION AMOUNT.—The amount 
determined under this paragraph with respect 
to a qualified residence that is part of a quali-
fied project and that experiences a qualified 
completion event is the least of— 
‘‘(i) the amount allocated to such 
project by the neighborhood homes credit 
agency under this section, 
‘‘(ii) pursuant to subparagraph (C), 
the amount such agency determines at the 
time of the qualified completion event is 
necessary to ensure the financial feasibility 
of the project, or 
‘‘(iii) in the case of a qualified com-
pletion event that occurs after the 5-year 
period beginning on the date of the alloca-
tion referred to in clause (i), $0. 
‘‘(C) FINANCIAL FEASABILITY.—For pur-
poses of subparagraph (B)(ii), the neighborhood 
homes credit agency shall consider—
2663 
‘‘(i) the sources and uses of funds and 
the total financing planned for the quali-
fied project, 
‘‘(ii) any proceeds or receipts expected 
to be generated by reason of tax benefits, 
‘‘(iii) the percentage of the amount al-
located to such project under this section 
used for project costs other than the cost 
of intermediaries, and 
‘‘(iv) the reasonableness of the devel-
opmental costs and fees of the qualified 
project. 
‘‘(c) QUALIFIED DEVELOPMENT COST.—For pur-
poses of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified devel-
opment cost’ means, with respect to a qualified resi-
dence, so much of the allowable development cost as 
the neighborhood homes credit agency certifies, at 
the time of the completion event, meets the stand-
ards promulgated under subsection (h)(1)(C). 
‘‘(2) ALLOWABLE
DEVELOPMENT
COST.—The 
term ‘allowable development cost’ means— 
‘‘(A) the cost of construction, substantial 
rehabilitation, demolition of any structure, and 
environmental remediation, and
2664 
‘‘(B) in the case of an affordable sale, so 
much of the cost of acquiring buildings and 
land as does not exceed an amount equal to 75 
percent of the costs described in subparagraph 
(A). 
‘‘(3) CONDOMINIUM AND COOPERATIVE HOUS-
ING UNITS.—In the case of a qualified residence de-
scribed in subparagraph (B) or (C) of subsection 
(f)(1), the allowable development cost of such quali-
fied residence shall be an amount equal to the total 
allowable development cost of the entire condo-
minium or cooperative housing property in which 
such qualified residence is located, multiplied by a 
fraction— 
‘‘(A) the numerator of which is the total 
floor space of such qualified residence, and 
‘‘(B) the denominator of which is the total 
floor space of all residences within such prop-
erty. 
‘‘(d) QUALIFIED PROJECT.—For purposes of this 
section, the term ‘qualified project’ means a project that— 
‘‘(1) a neighborhood homes credit agency cer-
tifies will build or substantially rehabilitate one or 
more qualified residences located in one or more 
qualified census tracts, and
2665 
‘‘(2) is designated by such agency as a qualified 
project under this section and is allocated (before 
such building or substantial rehabilitation begins) a 
portion of the amount allocated to such agency 
under subsection (g). 
‘‘(e) QUALIFIED CENSUS TRACT.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—The term ‘qualified census 
tract’ means a census tract— 
‘‘(A) with— 
‘‘(i) a median gross income which 
does not exceed 80 percent of the applica-
ble area median gross income, 
‘‘(ii) a poverty rate that is not less 
than 130 percent of the applicable area 
poverty rate, and 
‘‘(iii) a median value for owner-occu-
pied homes that does not exceed applicable 
area median value for owner-occupied 
homes, 
‘‘(B) which is located in a city with a pop-
ulation of not less than 50,000 and a poverty 
rate that is not less than 150 percent of the ap-
plicable area poverty rate, and which has—
2666 
‘‘(i) a median gross income which 
does not exceed the applicable area median 
gross income, and 
‘‘(ii) a median value for owner-occu-
pied homes that does not exceed 80 per-
cent of the applicable area median value 
for owner-occupied homes, or 
‘‘(C) which is located in a nonmetropolitan 
county and which has— 
‘‘(i) a median gross income which 
does not exceed the applicable area median 
gross income, and 
‘‘(ii) been designated by a neighbor-
hood homes credit agency under this 
clause. 
‘‘(2) ADDITIONAL
CENSUS
TRACTS
FOR
SUB-
STANTIAL REHABILITATION.—In the case of a quali-
fied residence that is intended for substantial reha-
bilitation described in subsection (f)(5)(B), the term 
‘qualified census tract’ includes a census tract that 
meets the requirements of paragraph (1)(A), without 
regard to clause (iii), and that is designated by the 
neighborhood homes credit agency under this para-
graph.
2667 
‘‘(3) LIST
OF
QUALIFIED
CENSUS
TRACTS.— 
The Secretary of Housing and Urban Development 
shall, for each year, make publicly available a list of 
qualified census tracts under— 
‘‘(A) on a combined basis, subparagraphs 
(A) and (B) of paragraph (1), 
‘‘(B) subparagraph (C) of such paragraph, 
and 
‘‘(C) paragraph (2). 
‘‘(f) OTHER DEFINITIONS.—For purposes of this sec-
tion— 
‘‘(1) QUALIFIED RESIDENCE.—The term ‘quali-
fied residence’ means a residence that consists of— 
‘‘(A) a single-family home containing 4 or 
fewer residential units, 
‘‘(B) a condominium unit, or 
‘‘(C) a house or an apartment owned by a 
cooperative housing corporation (as defined in 
section 216(b)). 
‘‘(2) AFFORDABLE SALE.— 
‘‘(A) IN GENERAL.— 
‘‘(i) IN GENERAL.—The term ‘afford-
able sale’ means a sale to a qualified home-
owner of a qualified residence that the 
neighborhood homes credit agency certifies
2668 
as meeting the standards promulgated 
under subsection (h)(1)(D) for a price that 
does not exceed— 
‘‘(I) in the case of any qualified 
residence not described in subclause 
(II), (III), or (IV), the amount equal 
to the product of 4 multiplied by the 
applicable area median gross income, 
‘‘(II) in the case of a single-fam-
ily home containing two residential 
units, 125 percent of the amount de-
scribed in subclause (I), 
‘‘(III) in the case of a single-fam-
ily home containing three residential 
units, 150 percent of the amount de-
scribed in subclause (I), or 
‘‘(IV) in the case of a single-fam-
ily home containing four residential 
units, 175 percent of the amount de-
scribed in subclause (I). 
‘‘(ii) RELATED PERSONS.— 
‘‘(I) IN
GENERAL.—A sale be-
tween related persons shall not be 
treated as an affordable sale.
2669 
‘‘(II) 
DEFINITION.—For 
pur-
poses of this section, a person (in this 
clause referred to as the ‘related per-
son’) is related to any person if the 
related person bears a relationship to 
such 
person 
specified 
in 
section 
267(b) or 707(b)(1), or the related 
person and such person are engaged 
in trades or businesses under common 
control (within the meaning of sub-
sections (a) and (b) of section 52). 
For purposes of the preceding sen-
tence, in applying section 267(b) or 
707(b)(1), ‘10 percent’ shall be sub-
stituted for ‘50 percent’. 
‘‘(3) APPLICABLE AREA.—The term ‘applicable 
area’ means— 
‘‘(A) in the case of a metropolitan census 
tract, the metropolitan area in which such cen-
sus tract is located, and 
‘‘(B) in the case of a census tract other 
than a census tract described in subparagraph 
(A), the State. 
‘‘(4) 
SUBSTANTIAL
REHABILITATION.—The 
term ‘substantial rehabilitation’ means rehabilitation
2670 
efforts involving qualified development costs that are 
not less than the greater of— 
‘‘(A) $20,000, or 
‘‘(B) 20 percent of the cost of acquiring 
buildings and land. 
‘‘(5) QUALIFIED
COMPLETION
EVENT.—The 
term ‘qualified completion event’ means— 
‘‘(A) in the case of a qualified residence 
that is built or substantially rehabilitated as 
part of a qualified project and sold, an afford-
able sale, or 
‘‘(B) in the case of a qualified residence 
that is substantially rehabilitated as part of a 
qualified project and owned by the same quali-
fied homeowner throughout such rehabilitation, 
the completion of such rehabilitation (as deter-
mined by the neighborhood homes credit agen-
cy) to the standards promulgated under sub-
section (h)(1)(D). 
‘‘(6) QUALIFIED HOMEOWNER.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
homeowner’ means, with respect to a qualified 
residence, an individual—
2671 
‘‘(i) who owns and uses such qualified 
residence as the principal residence of such 
individual, and 
‘‘(ii) whose income is 140 percent or 
less of the applicable area median gross in-
come for the location of the qualified resi-
dence. 
‘‘(B) OWNERSHIP.—For purposes of a co-
operative housing corporation (as such term is 
defined in section 216(b)), a tenant-stockholder 
shall be treated as owning the house or apart-
ment which such person is entitled to occupy. 
‘‘(C) INCOME.—For purposes of this para-
graph, income shall be a determined in accord-
ance with sections 143(f)(2) and 143(f)(4). 
‘‘(D) TIMING.—For purposes of this para-
graph, the income of a taxpayer shall be deter-
mined— 
‘‘(i) in the case of a qualified resi-
dence that is built or substantially rehabili-
tated as part of a qualified project and 
sold, at the time a binding contract for 
purchase is made, or 
‘‘(ii) in the case of a qualified resi-
dence that is occupied by a qualified home-
2672 
owner and intended to be substantially re-
habilitated as part of a qualified project, at 
the time a binding contract to undertake 
such rehabilitation is made. 
‘‘(7) NEIGHBORHOOD
HOMES
CREDIT
AGEN-
CY.—The term ‘neighborhood homes credit agency’ 
means the agency designated by the governor of a 
State as the neighborhood homes credit agency of 
the State. 
‘‘(g) ALLOCATION.— 
‘‘(1) STATE
NEIGHBORHOOD
HOMES
CREDIT 
CEILING.—The State neighborhood homes credit 
amount for a State for a calendar year is an amount 
equal to the greater of— 
‘‘(A) the product of $6, multiplied by the 
State population (determined in accordance 
with section 146(j)), or 
‘‘(B) $8,000,000. 
‘‘(2) UNUSED AMOUNT.—The State neighbor-
hood homes credit amount for a calendar year shall 
be increased by the sum of— 
‘‘(A) any amount certified by the neighbor-
hood homes credit agency of the State as hav-
ing been previously allocated to a qualified
2673 
project and not used during the 5-year period 
described in subsection (b)(2)(B)(iii), plus 
‘‘(B) sum of the amount by which the 
amount determined under paragraph (1) (with-
out application of this paragraph) exceeded the 
amount allocated to qualified projects in each of 
the three immediately preceding calendar years. 
‘‘(3) PORTION OF STATE CREDIT CEILING FOR 
CERTAIN
PROJECTS
INVOLVING
QUALIFIED
NON-
PROFIT ORGANIZATIONS.—Rules similar to the rules 
of section 42(h)(5) shall apply. 
‘‘(h) RESPONSIBILITIES OF NEIGHBORHOOD HOMES 
CREDIT AGENCIES.— 
‘‘(1) IN GENERAL.—Notwithstanding subsection 
(g), the State neighborhood homes credit dollar 
amount shall be zero for a calendar year unless the 
neighborhood homes credit agency of the State— 
‘‘(A) allocates such amount pursuant to a 
qualified allocation plan of the neighborhood 
homes credit agency, 
‘‘(B) allocates not more than 20 percent of 
such amount for the previous year to projects 
with respect to qualified residences in census 
tracts under subsection (e)(1)(C) or (e)(2),
2674 
‘‘(C) promulgates standards with respect 
to reasonable qualified development costs and 
fees, 
‘‘(D) promulgates standards with respect 
to construction quality, and 
‘‘(E) submits to the Secretary (at such 
time and in such manner as the Secretary may 
prescribe) an annual report specifying— 
‘‘(i) the amount of the neighborhood 
homes credits allocated to each qualified 
project for the previous year, 
‘‘(ii) with respect to each qualified 
residence completed in the preceding cal-
endar year— 
‘‘(I) the census tract in which 
such qualified residence is located, 
‘‘(II) with respect to the qualified 
project that includes such qualified 
residence, the year in which such 
project received an allocation under 
this section, 
‘‘(III) whether such qualified res-
idence was new or substantially reha-
bilitated,
2675 
‘‘(IV) the eligible basis of such 
qualified residence, 
‘‘(V) the amount of the neighbor-
hood homes credit with respect to 
such qualified residence, 
‘‘(VI) the sales price of such 
qualified residence or, in the case of a 
qualified residence that is substan-
tially rehabilitated as part of a quali-
fied project and is owned by the same 
qualified homeowner during the en-
tirety of such rehabilitation, the cost 
of the substantial rehabilitation, and 
‘‘(VII) the income of the quali-
fied homeowner (expressed as a per-
centage of the applicable area median 
gross income for the location of the 
qualified residence), and 
‘‘(iii) such other information as the 
Secretary may require. 
‘‘(2) QUALIFIED ALLOCATION PLAN.—For pur-
poses of this subsection, the term ‘qualified alloca-
tion plan’ means any plan which— 
‘‘(A) sets forth the selection criteria to be 
used to prioritize qualified projects for alloca-
2676 
tions of State neighborhood homes credit dollar 
amounts, including— 
‘‘(i) the need for new or substantially 
rehabilitated owner-occupied homes in the 
area addressed by the project, 
‘‘(ii) the expected contribution of the 
project to neighborhood stability and revi-
talization, 
‘‘(iii) the capability of the project 
sponsor, and 
‘‘(iv) the likelihood the project will re-
sult in long-term homeownership, 
‘‘(B) has been made available for public 
comment, and 
‘‘(C) provides a procedure that the neigh-
borhood homes credit agency (or any agent or 
contractor of such agency) shall follow for pur-
poses of— 
‘‘(i) identifying noncompliance with 
any provisions of this section, and 
‘‘(ii) notifying the Internal Revenue 
Service of any such noncompliance of 
which the agency becomes aware.
2677 
‘‘(i) POSSESSIONS TREATED AS STATES.—For pur-
poses of this section, the term ‘State’ includes the District 
of Columbia and a possession of the United States. 
‘‘(j) REPAYMENT.— 
‘‘(1) IN GENERAL.— 
‘‘(A) SOLD DURING 5-YEAR PERIOD.—If a 
qualified residence is sold during the 5-year pe-
riod beginning on the date of the qualified com-
pletion event described in subsection (a) with 
respect to such qualified residence, the seller 
shall transfer an amount equal to the repay-
ment amount from the amount realized on such 
sale to the relevant neighborhood homes credit 
agency. 
‘‘(B) USE OF REPAYMENTS.—A neighbor-
hood homes credit agency shall use any amount 
received pursuant to subparagraph (A) only for 
purposes of qualified projects. 
‘‘(2) REPAYMENT AMOUNT.—For purposes of 
paragraph (1)(A), the repayment amount is an 
amount equal to 50 percent of the gain from such 
resale, reduced by 20 percent for each year of the 
5-year period referred to in paragraph (1)(A) which 
ends before the date of the sale referred to in such 
paragraph.
2678 
‘‘(3) LIEN
FOR
REPAYMENT
AMOUNT.—A 
neighborhood homes credit agency receiving an allo-
cation under this section shall place a lien on each 
qualified residence that is built or rehabilitated as 
part of a qualified project for an amount such agen-
cy deems necessary to ensure potential repayment 
pursuant to paragraph (1)(A). 
‘‘(4) DENIAL OF DEDUCTIONS IF CONVERTED 
TO RENTAL HOUSING.—If, during the 5-year period 
beginning on the date of the qualified completion 
event described in subsection (a), an individual who 
owns a qualified residence fails to use such qualified 
residence as such individual’s principal residence for 
any period of time, no deduction shall be allowed for 
expenses paid or incurred by such individual with re-
spect to renting, during such period of time, such 
qualified residence. 
‘‘(5) WAIVER.—The neighborhood homes credit 
agency may waive the repayment required under 
paragraph (1)(A) in the case of homeowner experi-
encing a hardship. 
‘‘(k) REPORT.— 
‘‘(1) IN GENERAL.—The Secretary shall annu-
ally issue a report, to be made available to the pub-
2679 
lic, which contains the information submitted pursu-
ant to subsection (h)(1)(E). 
‘‘(2) DE-IDENTIFICATION.—The Secretary shall 
ensure that any information made public pursuant 
to paragraph (1) excludes any information that 
would allow for the identification of qualified home-
owners. 
‘‘(l) INFLATION ADJUSTMENT.— 
‘‘(1) IN GENERAL.—In the case of a calendar 
year after 2020, the dollar amounts in this section 
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 such calendar 
year by substituting ‘calendar year 2019’ for 
‘calendar year 2016’ in subparagraph (A)(ii) 
thereof. 
‘‘(2) ROUNDING.— 
‘‘(A) In the case of the dollar amount in 
subsection (f)(4), any increase under paragraph 
(1) which is not a multiple of $1,000 shall be 
rounded to the nearest multiple of $1,000. 
‘‘(B) In the case of the dollar amount in 
subsection (g)(1)(A)(i), any increase under 
paragraph (1) which is not a multiple of $0.01
2680 
shall be rounded to the nearest multiple of 
$0.01. 
‘‘(C) In the case of the dollar amount in 
subsection (g)(1)(A)(ii), any increase under 
paragraph (1) which is not a multiple of 
$100,000 shall be rounded to the nearest mul-
tiple of $100,000.’’. 
(b) CURRENT YEAR BUSINESS CREDIT CALCULA-
TION.—Section 38(b), as amended by the preceding provi-
sions of this Act, is amended by striking ‘‘plus’’ at the 
end of paragraph (35), by striking the period at the end 
of paragraph (36) and inserting ‘‘, plus’’, and by adding 
at the end the following new paragraph: 
‘‘(37) the neighborhood homes credit deter-
mined under section 42B(a),’’. 
(c) 
CONFORMING
AMENDMENTS.—Subsections 
(i)(3)(C), (i)(6)(B)(i), and (k)(1) of section 469 are each 
amended by inserting ‘‘or 42A’’ and inserting ‘‘42A, or 
42B’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1, 
as amended by the preceding provisions of this Act, is 
amended by inserting after the item relating to section 
42A the following new item: 
‘‘Sec. 42B. Neighborhood homes credit.’’.
2681 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2020. 
TITLE VII—TRIBAL 
DEVELOPMENT 
SEC. 90701. TREATMENT OF INDIAN TRIBES AS STATES 
WITH RESPECT TO BOND ISSUANCE. 
(a) IN GENERAL.—Subsection (c) of section 7871 is 
amended to read as follows: 
‘‘(c) SPECIAL RULES FOR TAX-EXEMPT BONDS.— 
‘‘(1) IN GENERAL.—In applying section 146 to 
bonds issued by Indian Tribal Governments the Sec-
retary shall annually— 
‘‘(A) establish a national bond volume cap 
based on the greater of— 
‘‘(i) the State population formula ap-
proach in section 146(d)(1)(A) (using na-
tional Tribal population estimates supplied 
annually by the Department of the Interior 
in consultation with the Census Bureau), 
and 
‘‘(ii) 
the 
minimum 
State 
ceiling 
amount in section 146(d)(1)(B) (as ad-
justed in accordance with the cost of living 
provision in section 146(d)(2)),
2682 
‘‘(B) allocate such national bond volume 
cap among all Indian Tribal Governments seek-
ing such an allocation in a particular year 
under regulations prescribed by the Secretary. 
‘‘(2) APPLICATION
OF
GEOGRAPHIC
RESTRIC-
TION.—In the case of national bond volume cap allo-
cated under paragraph (1), section 146(k)(1) shall 
not apply to the extent that such cap is used with 
respect to financing for a facility located on qualified 
Indian lands. 
‘‘(3) DEFINITIONS AND SPECIAL RULES.—For 
purposes of this subsection— 
‘‘(A) INDIAN TRIBAL GOVERNMENT.—The 
term ‘Indian Tribal Government’ means the 
governing body of an Indian Tribe, band, na-
tion, or other organized group or community 
which is recognized as eligible for the special 
programs and services provided by the United 
States to Indians because of their status as In-
dians, and also includes any agencies, instru-
mentalities or political subdivisions thereof. 
‘‘(B) INTERTRIBAL CONSORTIUMS, ETC.— 
In any case in which an Indian Tribal Govern-
ment has authorized an intertribal consortium, 
a Tribal organization, or an Alaska Native re-
2683 
gional or village corporation, as defined in, or 
established pursuant to, the Alaska Native 
Claims Settlement Act, to plan for, coordinate 
or otherwise administer services, finances, func-
tions, or activities on its behalf under this sub-
section, the authorized entity shall have the 
rights and responsibilities of the authorizing In-
dian Tribal Government only to the extent pro-
vided in the Authorizing resolution. 
‘‘(C) QUALIFIED
INDIAN
LANDS.—The 
term ‘qualified Indian lands’ shall mean an In-
dian reservation as defined in section 3(d) of 
the Indian Financing Act of 1974 (25 U.S.C. 
1452(d)), including lands which are within the 
jurisdictional area of an Oklahoma Indian Tribe 
(as determined by the Secretary of the Interior) 
and shall include lands outside a reservation 
where the facility is to be placed in service in 
connection with the active conduct of a trade or 
business by an Indian Tribe on or near an In-
dian reservation or Alaska Native village or in 
connection with infrastructure (including roads, 
power lines, water systems, railroad spurs, and 
communication facilities) serving an Indian res-
ervation or Alaska Native village.’’.