Rural Wind Energy Modernization and Extension Act of 2021
Bill: S.532 | Sponsor: Sen. Klobuchar, Amy (D-MN)
Policy area: Taxation

Summary:
Rural Wind Energy Modernization and Extension Act of 2021
This bill expands the energy tax credit to include qualified distributed wind energy property. The bill defines qualified distributed wind energy property to include property that uses one or more wind turbines used to produce electricity in a single project with a total nameplate capacity not exceeding 10 megawatts.

To amend the Internal Revenue Code of 1986 to modify the energy tax 
     credit to apply to qualified distributed wind energy property.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rural Wind Energy Modernization and 
Extension Act of 2021''.

SEC. 2. QUALIFIED DISTRIBUTED WIND ENERGY PROPERTIES ADDED TO ENERGY 
              CREDIT.

    (a) In General.--Section 48 of the Internal Revenue Code of 1986 is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (7)--
                            (i) in the header, by striking, ``Phaseout 
                        for fiber-optic solar, qualified fuel cell, and 
                        qualified small wind energy property'' and 
                        inserting ``Phaseout for fiber-optic solar or 
                        qualified fuel cell property'', and
                            (ii) by striking ``qualified fuel cell 
                        property, qualified small wind property, or 
                        energy property'' and inserting ``qualified 
                        fuel cell property or energy property'', and
                    (B) by adding at the end the following new 
                paragraph:
            ``(8) Phaseout for qualified distributed wind energy 
        property.--
                    ``(A) In general.--Subject to subparagraph (B), in 
                the case of any qualified distributed wind energy 
                property described in paragraph (3)(A)(vi), the energy 
                percentage determined under paragraph (2) shall be 
                equal to--
                            ``(i) in the case of any property the 
                        construction of which begins before January 1, 
                        2028, 30 percent, and
                            ``(ii) in the case of any property the 
                        construction of which begins after December 31, 
                        2027, 10 percent.
                    ``(B) Placed in service deadline.--In the case of 
                any qualified distributed wind energy property 
                described in subparagraph (A)(i) which is not placed in 
                service before January 1, 2029, the energy percentage 
                determined under paragraph (2) shall be equal to 10 
                percent.'',
            (2) by striking ``qualified small wind energy property'' 
        each place it appears and inserting ``qualified distributed 
        wind energy property'', and
            (3) by amending subsection (c)(4) to read as follows:
            ``(4) Qualified distributed wind energy property.--
                    ``(A) In general.--The term `qualified distributed 
                wind energy property' means property that uses one or 
                more wind turbines in a single project with a total 
                nameplate capacity not exceeding 10 MW which--
                            ``(i) are installed on properties with 
                        sufficient electrical load such that the annual 
                        energy consumption of the property is at least 
                        50 percent of the annual energy produced by the 
                        wind energy property, or
                            ``(ii) are used as part of a subscription-
                        based or shared-ownership program that benefits 
                        at least five customers and allocates energy 
                        production proportionately to subscription or 
                        ownership where no more than 50 percent of the 
                        energy produced is claimed by any one owner or 
                        subscriber.
                    ``(B) Wind turbine.--The term `wind turbine' means 
                equipment which--
                            ``(i) uses wind to produce electricity, and
                            ``(ii) is certified by an accredited 
                        certification agency that applies the 
                        performance and design standards of the 
                        American Wind Energy Association or 
                        International Electrotechnical Commission.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.
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