1753 
account in determining the credit allowed under 
this section. 
‘‘(2) 
UPGRADES
TREATED
AS
REPLACE-
MENTS.—For purposes of this subsection, any up-
grade of an existing electric transmission line shall 
be treated as a replacement of such line. 
‘‘(d) EXCEPTION
FOR CERTAIN PROPERTY
AND 
PROJECTS ALREADY IN PROCESS.—No credit shall be al-
lowed under this section with respect to— 
‘‘(1) any property if a State or political subdivi-
sion thereof, any agency or instrumentality of the 
United States, a public service or public utility com-
mission or other similar body of any State or polit-
ical subdivision thereof, or the governing or rate-
making body of an electric cooperative has, before 
the date of the enactment of this section, selected 
for cost allocation such property for cost recovery, or 
‘‘(2) any property if— 
‘‘(A) construction of such property begins 
before January 1, 2022, or 
‘‘(B) construction of any portion of the 
qualifying electric transmission line to which 
such property relates begins before such date. 
‘‘(e) CERTAIN QUALIFIED PROGRESS EXPENDITURES 
RULES MADE APPLICABLE.—Rules similar to the rules of 
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subsections (c)(4) and (d) of section 46 (as in effect on 
the day before the enactment of the Revenue Reconcili-
ation Act of 1990) shall apply for purposes of this section. 
‘‘(f) CREDIT ADJUSTMENTS; WAGE AND APPREN-
TICESHIP REQUIREMENTS.— 
‘‘(1) BASE CREDIT AMOUNT AND INCREASED 
CREDIT AMOUNT FOR APPLICABLE FACILITIES.— 
‘‘(A) IN GENERAL.— 
‘‘(i) RULE.—In the case of any appli-
cable facility which does not satisfy the re-
quirements of subparagraph (B), the 
amount of the credit determined under this 
subsection shall be 20 percent of such 
amount (determined without regard to this 
sentence). 
‘‘(ii) 
APPLICABLE
FACILITY
DE-
FINED.—For purposes of this subsection, 
the term ‘applicable facility’ means a quali-
fying electric transmission line and related 
transmission property to which such quali-
fying electric transmission line relates. 
‘‘(B) INCREASED CREDIT FOR APPLICABLE 
FACILITY MEETING PROJECT REQUIREMENTS.— 
‘‘(i) IN GENERAL.—In the case of any 
applicable facility which meets the project 
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requirements of this subparagraph, sub-
paragraph (A) shall not apply. 
‘‘(ii) PROJECT
REQUIREMENTS.—A 
project meets the requirements of this sub-
paragraph if it is one of the following: 
‘‘(I) A project with a maximum 
net output of less than 1 megawatt. 
‘‘(II) A project which commences 
construction prior to the date of the 
enactment of this paragraph. 
‘‘(III) A project which satisfies 
the requirements of paragraphs (2) 
and (3). 
‘‘(2) PREVAILING WAGE REQUIREMENTS.— 
‘‘(A) IN GENERAL.—The requirements de-
scribed in this subparagraph with respect to 
any applicable facility are that the taxpayer 
shall ensure that any laborers and mechanics 
employed by contractors and subcontractors 
in— 
‘‘(i) the construction of such facility, 
and 
‘‘(ii) for any year during the 5-year 
period beginning on the date the facility or 
property is originally placed in service, the 
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alteration or repair of such facility or prop-
erty, 
shall be paid wages at rates not less than the 
prevailing rates for construction, alteration, or 
repair of a similar character in the locality as 
most recently determined by the Secretary of 
Labor, in accordance with subchapter IV of 
chapter 31 of title 40, United States Code. 
‘‘(B) CORRECTION AND PENALTY RELATED 
TO
FAILURE
TO
SATISFY
WAGE
REQUIRE-
MENTS.—A taxpayer shall not be treated as 
failing to satisfy the requirements of this para-
graph if such taxpayer meets requirements 
similar 
to 
the 
requirements 
of 
section 
45(b)(8)(B). 
‘‘(3) APPRENTICESHIP
REQUIREMENTS.—The 
requirements described in this subparagraph with re-
spect to the construction of any applicable facility 
are as follows: 
‘‘(A) LABOR HOURS.— 
‘‘(i) PERCENTAGE OF TOTAL LABOR 
HOURS.—All contractors and subcontrac-
tors engaged in the performance of con-
struction, alteration, or repair work on any 
applicable facility prior to such facility 
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being placed into service shall, subject to 
subparagraph (B), ensure that not less 
than the applicable percentage of the total 
labor hours of such work be performed by 
qualified apprentices. 
‘‘(ii) APPLICABLE PERCENTAGE.—For 
purposes of paragraph (1), the applicable 
percentage shall be— 
‘‘(I) in the case of any applicable 
project the construction of which be-
gins before January 1, 2023, 5 per-
cent, 
‘‘(II) in the case of any applica-
ble project the construction of which 
begins after December 31, 2022, and 
before January 1, 2024, 10 percent, 
and 
‘‘(III) in the case of any applica-
ble project the construction of which 
begins after December 31, 2023, 15 
percent. 
‘‘(B) APPRENTICE
TO
JOURNEYWORKER 
RATIO.—The requirement under subparagraph 
(A)(i) shall be subject to any applicable require-
ments for apprentice-to-journeyworker ratios of 
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the Department of Labor or the applicable 
State apprenticeship agency. 
‘‘(C) 
PARTICIPATION.—Each 
contractor 
and subcontractor who employs 4 or more indi-
viduals to perform construction, alteration, or 
repair work on an applicable project shall em-
ploy 1 or more qualified apprentices to perform 
such work. 
‘‘(D) EXCEPTION.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
any other provision of this paragraph, this 
paragraph shall not apply in the case of a 
taxpayer who— 
‘‘(I) demonstrates a lack of avail-
ability of qualified apprentices in the 
geographic area of the construction, 
alteration, or repair work, and 
‘‘(II) makes a good faith effort to 
comply with the requirements of this 
paragraph. 
‘‘(ii) GOOD FAITH EFFORT.—For pur-
poses of clause (i), a taxpayer shall be 
deemed to have satisfied the requirements 
under such paragraph with respect to an 
applicable project if such taxpayer has re-
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quested qualified apprentices from a reg-
istered apprenticeship program, as defined 
in section 3131(e)(3)(B), and such request 
has been denied, provided that such denial 
is not the result of a refusal by the con-
tractors or subcontractors engaged in the 
performance of construction, alteration, or 
repair work on such applicable project to 
comply with the established standards and 
requirements of such apprenticeship pro-
gram. 
‘‘(E) DEFINITIONS.—For purposes of this 
paragraph— 
‘‘(i) LABOR HOURS.—The term ‘labor 
hours’ has the meaning given such term in 
section 45(b)(9)(E)(i). 
‘‘(ii) QUALIFIED
APPRENTICE.—The 
term ‘qualified apprentice’ has the mean-
ing 
given 
such 
term 
in 
section 
45(b)(9)(E)(ii). 
‘‘(4) DOMESTIC
CONTENT
BONUS
CREDIT 
AMOUNT.— 
‘‘(A) IN GENERAL.—In the case of any ap-
plicable facility which satisfies the requirements 
under subparagraph (B), the credit determined 
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under subsection (a) shall be increased by the 
applicable rate in subparagraph (C). 
‘‘(B) REQUIREMENTS.— 
‘‘(i) IN GENERAL.—The requirement 
described in this subclause with respect to 
any applicable facility is satisfied if the 
taxpayer certifies to the Secretary (at such 
time, and in such form and manner, as the 
Secretary may prescribe) that the facility 
is composed of steel, iron, or manufactured 
products which were produced in the 
United States. 
‘‘(ii) STEEL AND IRON.—In the case 
of steel or iron, clause (i) shall be applied 
in a manner consistent with section 
661.5(b) of title 49, Code of Federal Regu-
lations. 
‘‘(iii) MANUFACTURED
PRODUCT.— 
For purposes of clause (i), a manufactured 
product shall be deemed to have been man-
ufactured in the United States if not less 
than 55 percent of the total cost of the 
components of such product is attributable 
to components which are mined, produced, 
or manufactured in the United States. 
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‘‘(C) APPLICABLE
RATE
INCREASE.—For 
purposes of subparagraph (A), the applicable 
credit rate increase shall be an amount equal 
to— 
‘‘(i) in the case of applicable facility 
that does not meet the requirements of 
subclause (I) or (III) of paragraph 
(1)(B)(ii), 2 percentage points, and 
‘‘(ii) in the case of applicable facility 
that meets the requirements of subclause 
(I) or (III) of paragraph (1)(B)(ii), 10 per-
centage points. 
‘‘(D) 
INTERNATIONAL
AGREEMENTS.— 
This paragraph shall be applied in a manner 
which is consistent with the obligations of the 
United States under international agreements. 
‘‘(5) PENALTY FOR DIRECT PAY.— 
‘‘(A) IN GENERAL.—In the case of a tax-
payer making an election under section 6417 
with respect to a credit under this section, the 
amount of such credit shall be replaced with— 
‘‘(i) the value of such credit (deter-
mined without regard to this paragraph), 
multiplied by 
‘‘(ii) the applicable percentage. 
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‘‘(B) 100 PERCENT APPLICABLE PERCENT-
AGE FOR CERTAIN APPLICABLE FACILITY.—In 
the case of any applicable facility— 
‘‘(i) which satisfies the requirements 
under paragraph (11) with respect to the 
construction of such property, or 
‘‘(ii) with a maximum net output of 
less than 1 megawatt, 
the applicable percentage shall be 100 percent. 
‘‘(C) PHASED
DOMESTIC
CONTENT
RE-
QUIREMENT.—Subject to subparagraph (D), in 
the case of any qualified facility which is not 
described in subparagraph (B), the applicable 
percentage shall be— 
‘‘(i) if construction of such facility 
began before January 1, 2024, 100 per-
cent, 
‘‘(ii) if construction of such facility 
began in calendar year 2024, 90 percent, 
‘‘(iii) if construction of such facility 
began in calendar year 2025, 85 percent, 
and 
‘‘(iv) if construction of such facility 
began after December 31, 2025, 0 percent. 
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‘‘(D) EXCEPTIONS.—In order to facilitate 
the use of amounts made available in this sec-
tion, increase the tax incentives for investment 
in clean energy, and grow the domestic supply 
chains, the Secretary shall provide appropriate 
exceptions to the domestic content requirements 
for products under subparagraph (C) for the 
construction of qualified facilities if either the 
inclusion of domestic products increases the 
overall costs of projects by more than 25 per-
cent or relevant manufactured products are not 
produced in the United States in sufficient and 
reasonably available quantities or of a satisfac-
tory quality. 
‘‘(g) TERMINATION.—This section shall not apply to 
any property unless— 
‘‘(1) such property is placed in service before 
January 1, 2032, and 
‘‘(2) the qualifying electric transmission line 
with respect to which such property relates is placed 
in service before such date. 
‘‘(h) REGULATIONS AND GUIDANCE.—The Secretary, 
after consultation with the Chairman of the Federal En-
ergy Regulatory Commission, shall issue such regulations 
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or other guidance as the Secretary determines necessary 
or appropriate to carry out the purposes of this section.’’. 
(b) ELECTIVE
PAYMENT
OF
CREDIT.—Section 
6417(b), as added by the preceding provisions of this Act, 
is amended by adding at the end the following new para-
graph: 
‘‘(6) The qualifying electric transmission prop-
erty credit determined under section 48D.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 46 is amended— 
(A) by striking ‘‘and’’ at the end of para-
graph (5), 
(B) by striking the period at the end of 
paragraph (6) and inserting ‘‘, and’’, and 
(C) by adding at the end the following new 
paragraph: 
‘‘(7) the qualifying electric transmission prop-
erty credit.’’. 
(2) Section 49(a)(1)(C) is amended— 
(A) by striking ‘‘and’’ at the end of clause 
(iv), 
(B) by striking the period at the end of 
clause (v) and inserting ‘‘, and’’, and 
(C) by adding at the end the following new 
clause: 
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‘‘(vi) the basis of any qualifying elec-
tric transmission property under section 
48D.’’. 
(3) Section 50(a)(2)(E) is amended by striking 
‘‘or 48C(b)(2)’’ and inserting ‘‘48C(b)(2), or 48D’’. 
(4) The table of sections for subpart E of part 
IV of subchapter A of chapter 1 of such Code is 
amended by inserting after the item relating to sec-
tion 48C the following new item: 
‘‘Sec. 48D. Qualifying electric transmission property.’’. 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to property placed in service 
after December 31, 2021. 
(2) EXCEPTION FOR CERTAIN PROPERTY AND 
PROJECTS ALREADY IN PROCESS.—For exclusion of 
certain property and projects already in process, see 
section 48D(d) of the Internal Revenue Code of 
1986 (as added by this section). 
SEC. 136106. ZERO EMISSIONS FACILITY CREDIT. 
(a) IN GENERAL.—Subpart E of part IV of sub-
chapter A of chapter 1 is amended by inserting after sec-
tion 48C the following new section: 
‘‘SEC. 48E. ZERO EMISSIONS FACILITY CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 46, the 
zero emissions facility credit for any taxable year is an 
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amount equal to 30 percent of the qualified investment 
for such taxable year with respect to any zero emissions 
facility of the taxpayer. 
‘‘(b) QUALIFIED INVESTMENT.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a), the qualified investment for any taxable year is 
the basis of eligible property placed in service by the 
taxpayer during such taxable year which is part of 
a zero emissions facility. 
‘‘(2) CERTAIN QUALIFIED PROGRESS EXPENDI-
TURES 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 enactment of the 
Revenue Reconciliation Act of 1990) shall apply for 
purposes of this section. 
‘‘(3) LIMITATION.—The amount which is treat-
ed as the qualified investment for all taxable years 
with respect to any zero emissions facility shall not 
exceed the amount designated by the Secretary as el-
igible for the credit under this section. 
‘‘(c) ZERO EMISSIONS FACILITY.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘zero emissions facility’ means any fa-
cility— 
‘‘(A) which generates electricity, 
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‘‘(B) which does not generate any green-
house gases (within the meaning of section 
211(o)(1)(G) of the Clean Air Act (42 U.S.C. 
7545(o)(1)(G)), as in effect on the date of the 
enactment of this section), 
‘‘(C) which uses a technology or process 
which, in the calendar year in which an amount 
of credit is designated with respect to such fa-
cility, achieved a market penetration level of 
less than 3 percent, 
‘‘(D) no portion of which is— 
‘‘(i) a qualified facility (as defined in 
section 45(d)), 
‘‘(ii) an advanced nuclear power facil-
ity (as defined in section 45J(d)), 
‘‘(iii) a qualified facility (as defined in 
section 45Q), or 
‘‘(iv) energy property (as defined in 
section 48(a)(3)). 
‘‘(2) MARKET PENETRATION LEVEL.—For pur-
poses of this subsection, the term ‘market penetra-
tion level’ means, with respect to any calendar year, 
the amount equal to the greater of— 
‘‘(A) the amount (expressed as a percent-
age) equal to the quotient of— 
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‘‘(i) the sum of all electricity produced 
(expressed in terawatt hours) from the 
technology or method used for the produc-
tion of electricity by all electricity gener-
ating facilities in the United States during 
such calendar year (as determined by the 
Secretary on the basis of data reported by 
the Energy Information Administration), 
divided by the total domestic power sector 
electricity 
production 
(expressed 
in 
terawatt hours) for such calendar year, or 
‘‘(ii) the amount determined under 
this subparagraph for the preceding cal-
endar year with respect to such technology 
or method. 
‘‘(d) ELIGIBLE PROPERTY.—For purposes of this 
section, the term ‘eligible property’ means any property— 
‘‘(1) which is necessary for the generation of 
electricity, 
‘‘(2) which is— 
‘‘(A) tangible personal property, or 
‘‘(B) other tangible property (not including 
a building or its structural components), but 
only if such property is used as an integral part 
of the zero emissions facility, and 
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‘‘(3) with respect to which depreciation (or am-
ortization in lieu of depreciation) is allowable. 
‘‘(e) ALLOCATIONS.— 
‘‘(1) IN GENERAL.—Not later than 180 days 
after the date of enactment of this section, the Sec-
retary, after consultation with the Secretary of En-
ergy and the Administrator of the Environmental 
Protection Agency, shall establish a program to con-
sider and award certification amounts of zero emis-
sions facility credit limitation to zero emissions fa-
cilities. 
‘‘(2) ANNUAL LIMITATION.— 
‘‘(A) IN GENERAL.—The amount of zero 
emissions facility 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 $250,000,000 for each 
of calendar years 2022 through 2031, and zero 
thereafter. 
‘‘(C) CARRYOVER
OF
UNUSED
LIMITA-
TION.—If the annual credit limitation for any 
calendar year exceeds the aggregate amount 
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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 2031. 
‘‘(3) PLACED IN SERVICE DEADLINE.— 
‘‘(A) IN GENERAL.—No credit shall be de-
termined under subsection (a) with respect to 
any zero emissions facility which is placed in 
service after the date that is 4 years after the 
date of the designation under this subsection 
relating to such zero emissions facility. 
‘‘(B) APPLICATION OF CARRYOVER.—Any 
amount of credit which expires under subpara-
graph (A) during any calendar year shall be 
taken into account as an excess described in 
paragraph (2)(C) (or as an increase in such ex-
cess) for such calendar, subject to the limitation 
imposed by the last sentence of such paragraph. 
‘‘(4) SELECTION
CRITERIA.—In determining 
which zero emissions facilities to certify under this 
section, the Secretary, after consultation with the 
Secretary of Energy and the Administrator of the 
Environmental Protection Agency, shall— 
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‘‘(A) take into consideration which facili-
ties— 
‘‘(i) will result in the greatest reduc-
tion of greenhouse gas emissions, 
‘‘(ii) have the greatest potential for 
technological innovation and commercial 
deployment, and 
‘‘(iii) will result in the greatest reduc-
tion of local environmental effects that are 
harmful to human health, and 
‘‘(B) 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 zero emis-
sions facility shall be paid wages at rates not 
less than those prevailing on projects of a simi-
lar character 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. 
‘‘(5) DISCLOSURE
OF
CERTIFICATIONS.—The 
Secretary shall, upon making a certification under 
this subsection, publicly disclose the identity of the 
applicant, the amount of the credit awarded with re-
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spect to such applicant, and the location of the zero- 
emissions facility for which such credit is awarded. 
‘‘(f) CREDIT CONDITIONED UPON WAGE AND AP-
PRENTICESHIP REQUIREMENTS.— 
‘‘(1) IN GENERAL.—No credit shall be allocated 
for a zero emissions facility under this section unless 
the zero emissions facility meets the prevailing wage 
requirements of paragraph (2) and the apprentice-
ship requirements of paragraph (3). 
‘‘(2) PREVAILING WAGE REQUIREMENTS.— 
‘‘(A) IN GENERAL.—The requirements de-
scribed in this paragraph with respect to a zero 
emissions facility are that the taxpayer shall en-
sure that any laborers and mechanics employed 
by contractors and subcontractors in— 
‘‘(i) the construction of such zero 
emissions facility, and 
‘‘(ii) for any year during the 5-year 
period beginning on the date the facility is 
originally placed in service, the alteration 
or repair of such zero emissions facility, 
shall be paid wages at rates not less than the 
prevailing rates for construction, alteration, or 
repair of a similar character in the locality as 
most recently determined by the Secretary of 
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Labor, in accordance with subchapter IV of 
chapter 31 of title 40, United States Code. 
‘‘(B) CORRECTION AND PENALTY RELATED 
TO
FAILURE
TO
SATISFY
WAGE
REQUIRE-
MENTS.— 
‘‘(i) IN GENERAL.—In the case of any 
taxpayer which fails to satisfy the require-
ment under subparagraph (A) with respect 
to the construction of any qualified facility 
or with respect to the alteration or repair 
of a facility in any year during the period 
described in subparagraph (A)(ii), such 
taxpayer shall be deemed to have satisfied 
such requirement under such subparagraph 
with respect to such zero emissions facility 
for any year if, with respect to any laborer 
or mechanic who was paid wages at a rate 
below the rate described in such subpara-
graph for any period during such year, 
such taxpayer— 
‘‘(I) makes payment to such la-
borer or mechanic in an amount equal 
to the sum of— 
‘‘(aa) an amount equal to 
the 
difference 
between 
the 
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amount of wages paid to such la-
borer or mechanic during such 
period, and— 
‘‘(bb) the amount of wages 
required to be paid to such la-
borer or mechanic pursuant to 
such subparagraph during such 
period, plus 
‘‘(AA) interest on the 
amount determined under 
item (aa) at the under-
payment 
rate 
established 
under section 6621 for the 
period described in such 
item, and 
‘‘(II) makes payment to the Sec-
retary of a penalty in an amount 
equal to the product of— 
‘‘(aa) $5,000, multiplied by 
‘‘(bb) the total number of la-
borers and mechanics who were 
paid wages at a rate below the 
rate described in subparagraph 
(A) for any period during such 
year. 
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‘‘(ii) PENALTY ASSESSED AS TAX.— 
The penalty described in clause (i)(II) 
shall be treated in the same manner as a 
penalty imposed under subchapter B of 
chapter 68. 
‘‘(3) APPRENTICESHIP
REQUIREMENTS.—The 
requirements described in this subparagraph with re-
spect to a zero emissions facility are as follows: 
‘‘(A) LABOR HOURS.— 
‘‘(i) PERCENTAGE OF TOTAL LABOR 
HOURS.—All contractors and subcontrac-
tors engaged in the performance of con-
struction, alteration, or repair work on any 
facility prior to such facility being placed 
into service shall, subject to subparagraph 
(B), ensure that not less than the applica-
ble percentage of the total labor hours of 
such work be performed by qualified ap-
prentices. 
‘‘(ii) APPLICABLE PERCENTAGE.—For 
purposes of paragraph (1), the applicable 
percentage shall be— 
‘‘(I) in the case of any applicable 
zero emissions facility the construc-
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tion of which begins before January 1, 
2023, 5 percent, 
‘‘(II) in the case of any applica-
ble zero emissions facility the con-
struction of which begins after De-
cember 31, 2022, and before January 
1, 2024, 10 percent, and 
‘‘(III) in the case of any applica-
ble zero emissions facility the con-
struction of which begins after De-
cember 31, 2023, 15 percent. 
‘‘(B) APPRENTICE
TO
JOURNEYWORKER 
RATIO.—The requirement under subparagraph 
(A)(i) shall be subject to any applicable require-
ments for apprentice-to-journeyworker ratios of 
the Department of Labor or the applicable 
State apprenticeship agency. 
‘‘(C) 
PARTICIPATION.—Each 
contractor 
and subcontractor who employs 4 or more indi-
viduals to perform construction, alteration, or 
repair work on an applicable zero emissions fa-
cility shall employ 1 or more qualified appren-
tices to perform such work. 
‘‘(D) EXCEPTION.— 
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‘‘(i) IN
GENERAL.—Notwithstanding 
any other provision of this paragraph, this 
paragraph shall not apply in the case of a 
taxpayer who— 
‘‘(I) demonstrates a lack of avail-
ability of qualified apprentices in the 
geographic area of the construction, 
alteration, or repair work, and 
‘‘(II) makes a good faith effort to 
comply with the requirements of this 
paragraph. 
‘‘(ii) GOOD FAITH EFFORT.—For pur-
poses of clause (i), a taxpayer shall be 
deemed to have satisfied the requirements 
under such paragraph with respect to an 
applicable project if such taxpayer has re-
quested qualified apprentices from a reg-
istered apprenticeship program, as defined 
in section 3131(e)(3)(B), and such request 
has been denied, provided that such denial 
is not the result of a refusal by the con-
tractors or subcontractors engaged in the 
performance of construction, alteration, or 
repair work on such applicable project to 
comply with the established standards and 
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requirements of such apprenticeship pro-
gram. 
‘‘(E) DEFINITIONS.—For purposes of this 
paragraph— 
‘‘(i) LABOR HOURS.—The term ‘labor 
hours’— 
‘‘(I) means the total number of 
hours devoted to the performance of 
construction, 
alteration, 
or 
repair 
work by employees of the contractor 
or subcontractor prior to a facility 
being placed into service, and 
‘‘(II) excludes any hours worked 
by— 
‘‘(aa) foremen, 
‘‘(bb) superintendents, 
‘‘(cc) owners, or 
‘‘(dd) persons employed in a 
bona fide executive, administra-
tive, 
or 
professional 
capacity 
(within the meaning of those 
terms in part 541 of title 29, 
Code of Federal Regulations). 
‘‘(ii QUALIFIED
APPRENTICE.—The 
term ‘qualified apprentice’ has the mean-
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ing 
given 
such 
term 
in 
section 
45(b)(9)(E)(ii). 
‘‘(4) REGULATIONS AND GUIDANCE.—The Sec-
retary shall issue such regulations or other guidance 
as the Secretary determines necessary or appropriate 
to carry out the purposes of this subsection. 
‘‘(5) PENALTY FOR DIRECT PAY.— 
‘‘(A) IN GENERAL.—In the case of a tax-
payer making an election under section 6417 
with respect to a credit under this section, the 
amount of such credit shall be replaced with— 
‘‘(i) the value of such credit (deter-
mined without regard to this paragraph), 
multiplied by 
‘‘(ii) the applicable percentage. 
‘‘(B) 100 PERCENT APPLICABLE PERCENT-
AGE FOR CERTAIN QUALIFIED FACILITIES.—In 
the case of any qualified facility— 
‘‘(i) which satisfies the requirements 
under paragraph (5) with respect to the 
construction of such facility, or 
‘‘(ii) with a maximum net output of 
less than 1 megawatt, 
the applicable percentage shall be 100 percent. 
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‘‘(C) PHASED
DOMESTIC
CONTENT
RE-
QUIREMENT.—Subject to subparagraph (D), in 
the case of any qualified facility which is not 
described in subparagraph (B), the applicable 
percentage shall be— 
‘‘(i) if construction of such facility 
began before January 1, 2024, 100 per-
cent, 
‘‘(ii) if construction of such facility 
began in calendar year 2024, 90 percent, 
‘‘(iii) if construction of such facility 
began in calendar year 2025, 85 percent, 
and 
‘‘(iv) if construction of such facility 
began after December 31, 2025, 0 percent. 
‘‘(D) EXCEPTION.—If the Secretary, after 
consultation with the Secretary of Commerce 
and the United States Trade Representative, 
determines that, for purposes of application of 
the requirements under paragraph (5) with re-
spect to the construction of the qualified facil-
ity— 
‘‘(i) their application would be incon-
sistent with the public interest, 
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‘‘(ii) such materials and products are 
not produced in the United States in suffi-
cient and reasonably available quantities 
and of a satisfactory quality, or 
‘‘(iii) inclusion of domestic material 
will increase the cost of the construction of 
the qualified facility by more than 25 per-
cent, 
the applicable percentage shall be 100 per-
cent.’’. 
(b) ELECTIVE
PAYMENT
OF
CREDIT.—Section 
6417(b), as added and amended by the preceding provi-
sions of this Act, is amended by adding at the end the 
following new paragraph: 
‘‘(7) The zero emissions facility credit deter-
mined under section 48E.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 46 is amended by striking ‘‘and’’ at 
the end of paragraph (6), by striking the period at 
the end of paragraph (7) and inserting ‘‘, and’’, and 
by adding at the end the following new paragraph: 
‘‘(8) the zero emissions facility credit.’’. 
(2) Section 49(a)(1)(C) is amended by striking 
‘‘and’’ at the end of clause (v), by striking the pe-
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riod at the end of clause (vi) and inserting a comma, 
and by adding at the end the following new clause: 
‘‘(vii) the basis of any eligible prop-
erty which is part of a zero emissions facil-
ity under section 48D.’’. 
(3) Section 50(a)(2)(E) is amended by striking 
‘‘ or 48D’’ and inserting ‘‘48D, or 48E(b)(2)’’. 
(4) The table of sections for subpart E of part 
IV of subchapter A of chapter 1 is amended by in-
serting after the item relating to section 48D the 
following new item: 
Sec. 48E. Zero emissions facility credit. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to periods after December 31, 
2021, 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. 136107. EXTENSION AND MODIFICATION OF CREDIT 
FOR CARBON OXIDE SEQUESTRATION. 
(a) EXTENSION.—Section 45Q(d)(1) is amended by 
striking ‘‘January 1, 2026’’ and inserting ‘‘January 1, 
2032’’. 
(b) MODIFICATION OF CARBON OXIDE CAPTURE RE-
QUIREMENTS.—Section 45Q(d)(2) is amended to read as 
follows: 
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‘‘(2) which captures— 
‘‘(A) in the case of a direct air capture fa-
cility, not less than 1,000 metric tons of quali-
fied carbon oxide during the taxable year, 
‘‘(B) in the case of an electricity gener-
ating facility, not less than 18,750 metric tons 
of qualified carbon oxide during the taxable 
year and not less than 75 percent of the carbon 
oxide that would otherwise be released into the 
atmosphere by such facility during such taxable 
year, and 
‘‘(C) in the case of any other facility, not 
less than 12,500 metric tons of qualified carbon 
oxide during the taxable year and not less than 
50 percent of the carbon oxide that would oth-
erwise be released into the atmosphere by such 
facility during such taxable year.’’. 
(c) DETERMINATION
OF
APPLICABLE
DOLLAR 
AMOUNT.— 
(1) IN GENERAL.—Section 45Q(b)(1) is amend-
ed by redesignating subparagraph (B) as subpara-
graph (C) and by inserting after subparagraph (A) 
the following new subparagraph: 
‘‘(B) SPECIAL RULE FOR DIRECT AIR CAP-
TURE FACILITIES.—For any taxable year begin-
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ning after December 31, 2021, in the case of 
any qualified facility described in subsection 
(d)(2)(C), the applicable dollar amount shall be 
an amount equal to— 
‘‘(i) for purposes of paragraph (3) of 
subsection (a), an amount equal to the 
product of $180 and the inflation adjust-
ment factor for such calendar year deter-
mined under section 43(b)(3)(B) for such 
calendar year, determined by substituting 
‘2020’ for ‘1990’, and 
‘‘(ii) for purposes of paragraph (4) of 
such subsection, an amount equal to the 
product of $130 and the inflation adjust-
ment factor for such calendar year deter-
mined under section 43(b)(3)(B) for such 
calendar year, determined by substituting 
‘2020’ for ‘1990’.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 45Q(b)(1)(A) is amended by 
striking ‘‘The applicable dollar amount’’ and in-
serting ‘‘Except as provided in subparagraph 
(B), the applicable dollar amount’’. 
(B) Section 45Q(b)(1)(C), as redesignated 
by subparagraph (A), is amended by striking 
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‘‘subparagraph (A)’’ and inserting ‘‘subpara-
graph (A) or (B)’’. 
(d) WAGE AND APPRENTICESHIP REQUIREMENTS.— 
Section 45Q is amended by redesignating subsection (h) 
as subsection (i) and inserting after subsection (g) fol-
lowing new subsection: 
‘‘(h) BASE CREDIT AMOUNT AND INCREASED CRED-
IT AMOUNT FOR QUALIFIED FACILITIES AND CARBON 
CAPTURE EQUIPMENT.— 
‘‘(1) IN GENERAL.—In the case of any qualified 
facility and any carbon capture equipment which 
does not satisfy the requirements of paragraph (2), 
the amount of the credit determined under sub-
section (a) shall be 20 percent of such amount (de-
termined without regard to this sentence). 
‘‘(2) INCREASED CREDIT FOR CERTAIN FACILI-
TIES AND CARBON CAPTURE EQUIPMENT MEETING 
PROJECT REQUIREMENTS.— 
‘‘(A) IN
GENERAL.—In the case of any 
qualified facility and any carbon capture equip-
ment placed in service at such facility which 
meets the project requirements of this subpara-
graph, subparagraph (A) shall not apply. 
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‘‘(B) PROJECT REQUIREMENTS.—A project 
meets the requirements of this subparagraph if 
it is one of the following: 
‘‘(i) A qualified facility with a max-
imum net output of less than 1 megawatt. 
‘‘(ii) A qualified facility or any carbon 
capture equipment placed in service at 
such facility which commences construction 
prior to the date of the enactment of this 
paragraph. 
‘‘(iii) A project which satisfies the re-
quirements of paragraphs (3) and (4). 
‘‘(3) PREVAILING WAGE REQUIREMENTS.— 
‘‘(A) IN GENERAL.—The requirements de-
scribed in this subparagraph with respect to 
any qualified facility and any carbon capture 
equipment placed in service at such facility are 
that the taxpayer shall ensure that any laborers 
and mechanics employed by contractors and 
subcontractors in— 
‘‘(i) the construction of such facility 
and carbon capture equipment, 
‘‘(ii) the alteration or repair of such 
facility and carbon capture equipment dur-
ing the 12 year-period after being placed 
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into service, or for carbon capture equip-
ment placed in service prior to 2018, until 
the date determined by the Secretary 
under subsection (g), 
shall be paid wages at rates not less than the 
prevailing rates for construction, alteration, or 
repair of a similar character in the locality as 
most recently determined by the Secretary of 
Labor, in accordance with subchapter IV of 
chapter 31 of title 40, United States Code. 
‘‘(B) CORRECTION AND PENALTY RELATED 
TO
FAILURE
TO
SATISFY
WAGE
REQUIRE-
MENTS.— 
‘‘(i) IN GENERAL.—In the case of any 
taxpayer which fails to satisfy the require-
ment under subparagraph (A) with respect 
to the construction of any qualified facility 
or with respect to the alteration or repair 
of a facility in any year during the period 
described in subparagraph (A)(ii), such 
taxpayer shall be deemed to have satisfied 
such requirement under such subparagraph 
with respect to such facility and carbon 
capture equipment for any year if, with re-
spect to any laborer or mechanic who was 
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paid wages at a rate below the rate de-
scribed in such subparagraph for any pe-
riod during such year, such taxpayer— 
‘‘(I) makes payment to such la-
borer or mechanic in an amount equal 
to the sum of an amount equal to the 
difference between the amount of 
wages paid to such laborer or me-
chanic during such period, and— 
‘‘(aa) the amount of wages 
required to be paid to such la-
borer or mechanic pursuant to 
such subparagraph during such 
period, plus 
‘‘(bb) 
interest 
on 
the 
amount determined under item 
(aa) at the underpayment rate 
established under section 6621 
for the period described in such 
item, and 
‘‘(II) makes payment to the Sec-
retary of a penalty in an amount 
equal to the product of— 
‘‘(aa) $5,000, multiplied by 
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‘‘(bb) the total number of la-
borers and mechanics who were 
paid wages at a rate below the 
rate described in subparagraph 
(A) for any period during such 
year. 
‘‘(ii) PENALTY ASSESSED AS TAX.— 
The penalty described in clause (i)(II) 
shall be treated in the same manner as a 
penalty imposed under subchapter B of 
chapter 68. 
‘‘(4) APPRENTICESHIP
REQUIREMENTS.—The 
requirements described in this paragraph with re-
spect to any qualified facility and carbon capture 
equipment are as follows: 
‘‘(A) LABOR HOURS.— 
‘‘(i) PERCENTAGE OF TOTAL LABOR 
HOURS.—All contractors and subcontrac-
tors engaged in the performance of con-
struction, alteration, or repair work on any 
facility and carbon capture equipment 
prior to such facility being placed into 
service shall, subject to subparagraph (B), 
ensure that not less than the applicable 
percentage of the total labor hours of such 
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work be performed by qualified appren-
tices. 
‘‘(ii) APPLICABLE PERCENTAGE.—For 
purposes of paragraph (1), the applicable 
percentage shall be— 
‘‘(I) in the case of any applicable 
project the construction of which be-
gins before January 1, 2023, 5 per-
cent, 
‘‘(II) in the case of any applica-
ble project the construction of which 
begins after December 31, 2022, and 
before January 1, 2024, 10 percent, 
and 
‘‘(III) in the case of any applica-
ble project the construction of which 
begins after December 31, 2023, 15 
percent. 
‘‘(B) APPRENTICE
TO
JOURNEYWORKER 
RATIO.—The requirement under subparagraph 
(A)(i) shall be subject to any applicable require-
ments for apprentice-to-journeyworker ratios of 
the Department of Labor or the applicable 
State apprenticeship agency. 
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‘‘(C) 
PARTICIPATION.—Each 
contractor 
and subcontractor who employs 4 or more indi-
viduals to perform construction, alteration, or 
repair work on an applicable project shall em-
ploy 1 or more qualified apprentices to perform 
such work. 
‘‘(D) EXCEPTION.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
any other provision of this paragraph, this 
paragraph shall not apply in the case of a 
taxpayer who— 
‘‘(I) demonstrates a lack of avail-
ability of qualified apprentices in the 
geographic area of the construction, 
alteration, or repair work, and 
‘‘(II) makes a good faith effort to 
comply with the requirements of this 
paragraph. 
‘‘(ii) GOOD FAITH EFFORT.—For pur-
poses of clause (i), a taxpayer shall be 
deemed to have satisfied the requirements 
under such paragraph with respect to an 
applicable project if such taxpayer has re-
quested qualified apprentices from a reg-
istered apprenticeship program, as defined 
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in section 3131(e)(3)(B), and such request 
has been denied, provided that such denial 
is not the result of a refusal by the con-
tractors or subcontractors engaged in the 
performance of construction, alteration, or 
repair work on such applicable project to 
comply with the established standards and 
requirements of such apprenticeship pro-
gram. 
‘‘(E) DEFINITIONS.—For purposes of this 
paragraph— 
‘‘(i) LABOR HOURS.—The term ‘labor 
hours’ has the meaning given such term in 
section 45(b)(9)(E)(i). 
‘‘(ii) QUALIFIED
APPRENTICE.—The 
term ‘qualified apprentice’ has the mean-
ing 
given 
such 
term 
in 
section 
45(b)(9)(E)(ii). 
‘‘(5) REGULATIONS AND GUIDANCE.—The Sec-
retary shall issue such regulations or other guidance 
as the Secretary determines necessary or appropriate 
to carry out the purposes of this subsection.’’. 
(e) INCREASED APPLICABLE DOLLAR AMOUNT.— 
(1) IN GENERAL.—Section 45Q(b)(1) is amend-
ed— 
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(A) by amending clause (i) of subpara-
graph (A) to read as follows: 
‘‘(i) for any taxable year beginning in 
a calendar year after 2016 and before 
2027— 
‘‘(I) for purposes of paragraph 
(3) of subsection (a), $50 for each 
calendar year during such period, and 
‘‘(II) for purposes of paragraph 
(4) of such subsection, $35 for each 
calendar year during such period, 
and’’, 
(B) by redesignating subparagraphs (B) 
and (C) as subparagraphs (C) and (D), and 
(C) by inserting after subparagraph (A) 
the following new subparagraph: 
‘‘(B) INFLATION
ADJUSTMENT.—In the 
case of any taxable year beginning in a calendar 
year after 2025, each of the dollar amounts in 
subparagraph (A)(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 in which the taxable year be-
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gins, determined by substituting ‘calendar 
year 2024’ for ‘calendar year 2016’ in sub-
paragraph (A)(ii) thereof. 
Any increase determined under the preceding 
sentence shall be rounded to the nearest cent.’’. 
(f) EFFECTIVE DATES.— 
(1) EXTENSION.—The amendment made by 
subsection (a) shall apply to facilities the construc-
tion of which begins after December 31, 2025. 
(2) OTHER
AMENDMENTS.—The amendments 
made by subsections (b), (c), (d), and (e) shall apply 
to taxable years beginning after December 31, 2021. 
SEC. 136108. GREEN ENERGY PUBLICLY TRADED PARTNER-
SHIPS. 
(a) IN GENERAL.—Section 7704(d)(1)(E) is amend-
ed— 
(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: 
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‘‘(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, 
‘‘(v) the transportation or storage of 
any fuel described in subsection (b), (c), 
(d), or (e) of section 6426, 
‘‘(vi) 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 
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as so in effect), or the storage or transpor-
tation of such fuel, 
‘‘(vii) 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), or 
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‘‘(viii) a qualified facility (as defined 
in section 45Q(d), without regard to any 
date by which construction of the facility is 
required to begin).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section apply to taxable years beginning after Decem-
ber 31, 2021. 
SEC. 136109. ZERO-EMISSION NUCLEAR POWER PRODUC-
TION CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 45W. ZERO-EMISSION NUCLEAR POWER PRODUCTION 
CREDIT. 
‘‘(a) AMOUNT OF CREDIT.—For purposes of section 
38, the zero-emission nuclear power production credit for 
any taxable year is an amount equal to the amount by 
which— 
‘‘(1) the product of— 
‘‘(A) 1.5 cents, multiplied by 
‘‘(B) the kilowatt hours of electricity— 
‘‘(i) produced by the taxpayer at a 
qualified nuclear power facility, and 
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‘‘(ii) sold by the taxpayer to an unre-
lated person during the taxable year, ex-
ceeds 
‘‘(2) the reduction amount for such taxable 
year. 
‘‘(b) DEFINITIONS.— 
‘‘(1) QUALIFIED NUCLEAR POWER FACILITY.— 
For purposes of this section, the term ‘qualified nu-
clear power facility’ means any nuclear facility— 
‘‘(A) which is owned by the taxpayer and 
which uses nuclear energy to produce elec-
tricity, 
‘‘(B) which has not received an allocation 
under section 45J(b), and 
‘‘(C) which is placed in service before the 
date of the enactment of this section. 
‘‘(2) REDUCTION AMOUNT.— 
‘‘(A) IN GENERAL.—For purposes of this 
section, the term ‘reduction amount’ means, 
with respect to any qualified nuclear power fa-
cility for any taxable year, the amount equal to 
the lesser of— 
‘‘(i) the amount determined under 
subsection (a)(1), or 
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‘‘(ii) the amount equal to 80 percent 
of the excess of— 
‘‘(I) subject to subparagraph (B), 
the gross receipts from any electricity 
produced by such facility (including 
any electricity services or products 
provided in conjunction with the elec-
tricity produced by such facility) and 
sold to an unrelated person during 
such taxable year, over 
‘‘(II) the amount equal to the 
product of— 
‘‘(aa) 2.5 cents, multiplied 
by 
‘‘(bb) the amount deter-
mined 
under 
subsection 
(a)(1)(B). 
‘‘(B) 
TREATMENT
OF
CERTAIN
RE-
CEIPTS.— 
‘‘(i) IN GENERAL.—The amount de-
termined under subparagraph (A)(ii)(I) 
shall include any amount received by the 
taxpayer during the taxable year with re-
spect to the qualified nuclear power facility 
from a zero-emission credit program unless 
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1800 
the amount received by the taxpayer is 
subject to reduction— 
‘‘(I) by the full amount of the 
credit determined under this section, 
or 
‘‘(II) by any lesser amount if 
such amount entirely offsets the 
amount received from a zero-emission 
credit program. 
‘‘(ii) ZERO-EMISSION
CREDIT
PRO-
GRAM.—For purposes of this subpara-
graph, the term ‘zero-emission credit pro-
gram’ means any payments to a qualified 
nuclear power facility as a result of any 
Federal, State or local government pro-
gram for, in whole or in part, the zero- 
emission, zero-carbon, or air quality at-
tributes of any portion of the electricity 
produced by such facility. 
‘‘(3) ELECTRICITY.—For purposes of this sec-
tion, the term ‘electricity’ means the energy pro-
duced by a qualified nuclear power facility from the 
conversion of nuclear fuel into electric power. 
‘‘(c) OTHER RULES.— 
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1801 
‘‘(1) INFLATION ADJUSTMENT.—The 1.5 cent 
amount in subsection (a)(1)(A) and the 2.5 cent 
amount in subsection (b)(2)(A)(ii)(II)(aa) shall each 
be adjusted by multiplying such amount by the infla-
tion adjustment factor (as determined under section 
45(e)(2), as applied by substituting ‘calendar year 
2022’ for ‘calendar year 1992’ in subparagraph (B) 
thereof) for the calendar year in which the sale oc-
curs. If any amount as increased under the pre-
ceding sentence is not a multiple of 0.1 cent, such 
amount shall be rounded to the nearest multiple of 
0.1 cent. 
‘‘(2) SPECIAL
RULES.—Rules similar to the 
rules of paragraphs (1), (3), (4), and (5) of section 
45(e) shall apply for purposes of this section. 
‘‘(3) DENIAL OF DOUBLE BENEFIT.—No credit 
shall be allowed under section 48E for any power 
production for which a credit is taken under this 
section. 
‘‘(d) 
WAGE
AND
APPRENTICESHIP
REQUIRE-
MENTS.— 
‘‘(1) BASE CREDIT AMOUNT AND INCREASED 
CREDIT AMOUNT FOR QUALIFIED NUCLEAR POWER 
FACILITIES.— 
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1802 
‘‘(A) IN
GENERAL.—In the case of any 
qualified nuclear power facility which does not 
satisfy the requirements of subparagraph (B), 
the amount of the credit determined under sub-
section (a) and the 2.5 cent amount in sub-
section (b)(2)(A)(ii)(II)(aa) shall be 20 percent 
of such amount (determined without regard to 
this sentence). 
‘‘(B) INCREASED CREDIT FOR CERTAIN FA-
CILITIES MEETING PROJECT REQUIREMENTS.— 
‘‘(i) IN GENERAL.—In the case of any 
qualified nuclear power facility which 
meets the project requirements of this sub-
paragraph, subparagraph (A) shall not 
apply. 
‘‘(ii) PROJECT
REQUIREMENTS.—A 
project meets the requirements of this sub-
paragraph if it is one of the following: 
‘‘(I) A project with a maximum 
net output of less than 1 megawatt. 
‘‘(II) A project which satisfies 
the requirements of paragraphs (2) 
and (3). 
‘‘(2) PREVAILING WAGE REQUIREMENTS.— 
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1803 
‘‘(A) IN GENERAL.—The taxpayer shall en-
sure that any laborers and mechanics employed 
by contractors and subcontractors in the alter-
ation or repair of a facility shall be paid wages 
at rates not less than the prevailing rates for 
construction, alteration, or repair of a similar 
character in the locality as most recently deter-
mined by the Secretary of Labor, in accordance 
with subchapter IV of chapter 31 of title 40, 
United States Code. 
‘‘(B) CORRECTION AND PENALTY RELATED 
TO
FAILURE
TO
SATISFY
WAGE
REQUIRE-
MENTS.— 
‘‘(i) IN GENERAL.—In the case of any 
taxpayer which fails to satisfy the require-
ment under subparagraph (A), such tax-
payer shall be deemed to have satisfied 
such requirement under such subparagraph 
with respect to such facility for any year if, 
with respect to any laborer or mechanic 
who was paid wages at a rate below the 
rate described in such subparagraph for 
any period during such year, such tax-
payer— 
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‘‘(I) makes payment to such la-
borer or mechanic in an amount equal 
to the sum of— 
‘‘(aa) an amount equal to 
the 
difference 
between 
the 
amount of wages paid to such la-
borer or mechanic during such 
period, and— 
‘‘(AA) the amount of 
wages required to be paid to 
such laborer or mechanic 
pursuant to such subpara-
graph during such period, 
plus 
‘‘(BB) interest on the 
amount determined under 
item (aa) at the under-
payment 
rate 
established 
under section 6621 for the 
period described in such 
item, and 
‘‘(II) makes payment to the Sec-
retary of a penalty in an amount 
equal to the product of— 
‘‘(aa) $5,000, multiplied by 
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1963 
fied child with respect to any taxpayer (de-
termined without regard to this subpara-
graph). 
‘‘(B) DEATH.— 
‘‘(i) IN GENERAL.—In the case of the 
death of an individual during any calendar 
year, such individual shall be treated as a 
specified child of the relevant taxpayer for 
each calendar month in such calendar year 
which follows the calendar month referred 
to in clause (ii). 
‘‘(ii) 
RELEVANT
TAXPAYER.—For 
purposes of clause (i), the term ‘relevant 
taxpayer’ means the taxpayer with respect 
to whom the individual referred to in 
clause (i) is a specified child for the last 
month for which such individual is alive. 
‘‘(5) TREATMENT OF TEMPORARY ABSENCES.— 
For purposes of this subsection— 
‘‘(A) IN GENERAL.—In the case of any in-
dividual’s temporary absence from such individ-
ual’s principal place of abode, each day com-
posing the temporary absence shall— 
‘‘(i) be treated as a day at such indi-
vidual’s principal place of abode, and 
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