American Jobs in Energy Manufacturing Act of 2021
Bill: S.622 | Sponsor: Sen. Manchin, Joe, III (D-WV)
Policy area: Taxation

Summary:
American Jobs in Energy Manufacturing Act of 2021
This bill revises the definition of qualifying advanced energy project for purposes of the tax credit for such project. Specifically, the bill expands the definition to include property designed to produce energy from water, property designed to produce energy conservation technologies, light-, medium-, or heavy-duty electric or fuel cell vehicles, certain hybrid vehicles, and manufacturing facilities designed to reduce greenhouse gas emissions.
The definition also includes projects located in a census tract in which a coal mine closed after 1999 and in which a coal-fired electric generating unit was retired after 2009, and provides additional credit allocations for projects to retool, expand, or build new facilities that make or recycle energy-related products, and for projects in communities where coal mines have closed or coal-fired electric units have been retired.

To amend the Internal Revenue Code of 1986 to enhance the qualifying 
                    advanced energy project credit.

    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 ``American Jobs in Energy 
Manufacturing Act of 2021''.

SEC. 2. ADJUSTMENT OF QUALIFYING ADVANCED ENERGY PROJECT CREDIT.

    (a) In General.--Section 48C of the Internal Revenue Code of 1986 
is amended--
            (1) in subsection (c)(1)--
                    (A) in subparagraph (A)--
                            (i) by inserting ``, any portion of the 
                        qualified investment of which is certified by 
                        the Secretary under subsection (d) as eligible 
                        for a credit under this section'' after ``means 
                        a project'',
                            (ii) in clause (i)--
                                    (I) by striking ``a manufacturing 
                                facility for the production of'' and 
                                inserting ``an industrial or 
                                manufacturing facility for the 
                                production or recycling of'',
                                    (II) in clause (I), by inserting 
                                ``water,'' after ``sun,'',
                                    (III) in clause (II), by striking 
                                ``an energy storage system for use with 
                                electric or hybrid-electric motor 
                                vehicles'' and inserting ``energy 
                                storage systems and components'',
                                    (IV) in clause (III), by striking 
                                ``grids to support the transmission of 
                                intermittent sources of renewable 
                                energy, including storage of such 
                                energy'' and inserting ``grid 
                                modernization equipment or 
                                components'',
                                    (V) in subclause (IV), by striking 
                                ``and sequester carbon dioxide 
                                emissions'' and inserting ``, remove, 
                                use, or sequester carbon oxide 
                                emissions'',
                                    (VI) by striking subclause (V) and 
                                inserting the following:
                                    ``(V) equipment designed to refine, 
                                electrolyze, or blend any fuel, 
                                chemical, or product which is--
                                            ``(aa) renewable, or
                                            ``(bb) low-carbon and low-
                                        emission,'',
                                    (VII) by striking subclause (VI),
                                    (VIII) by redesignating subclause 
                                (VII) as subclause (IX),
                                    (IX) by inserting after subclause 
                                (V) the following new subclauses:
                                    ``(VI) property designed to produce 
                                energy conservation technologies 
                                (including residential, commercial, and 
                                industrial applications),
                                    ``(VII) light-, medium-, or heavy-
                                duty electric or fuel cell vehicles, as 
                                well as--
                                            ``(aa) technologies, 
                                        components, or materials for 
                                        such vehicles, and
                                            ``(bb) associated charging 
                                        or refueling infrastructure,
                                    ``(VIII) hybrid vehicles with a 
                                gross vehicle weight rating of not less 
                                than 14,000 pounds, as well as 
                                technologies, components, or materials 
                                for such vehicles, or'', and
                                    (X) in subclause (IX), as so 
                                redesignated, by striking ``and'' at 
                                the end and inserting ``or'', and
                            (iii) by striking clause (ii) and inserting 
                        the following:
                            ``(ii) which re-equips an industrial or 
                        manufacturing facility with equipment designed 
                        to reduce its greenhouse gas emissions well 
                        below current best practices through the 
                        installation of--
                                    ``(I) low- or zero-carbon process 
                                heat systems,
                                    ``(II) carbon capture, transport, 
                                utilization and storage systems,
                                    ``(III) energy efficiency and 
                                reduction in waste from industrial 
                                processes, or
                                    ``(IV) any industrial technology 
                                which significantly reduces greenhouse 
                                gas emissions, as determined by the 
                                Secretary.''.
                    (B) by redesignating subparagraph (B) as 
                subparagraph (C), and
                    (C) by inserting after subparagraph (A) the 
                following new subparagraph:
                    ``(B) Additional qualifying advanced energy 
                projects.--The term `qualifying advanced energy 
                project' shall also include any project described in 
                subparagraph (A) which is located in a census tract--
                            ``(i) which, prior to the date of enactment 
                        of the American Jobs in Energy Manufacturing 
                        Act of 2021, had no projects which received a 
                        certification and allocation of credits under 
                        subsection (d), and
                            ``(ii)(I) in which, after December 31, 
                        1999, a coal mine has closed,
                            ``(II) in which, after December 31, 2009, a 
                        coal-fired electric generating unit has been 
                        retired, or
                            ``(III) which is immediately adjacent to a 
                        census tract described in subclause (I) or 
                        (II).'',
            (2) in subsection (d)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A), by striking ``this 
                        section'' and inserting ``the American Jobs in 
                        Energy Manufacturing Act of 2021'', and
                            (ii) by striking subparagraph (B) and 
                        inserting the following:
                    ``(B) Limitations.--
                            ``(i) Initial allocation.--The total amount 
                        of credits that may be allocated under the 
                        program prior to the date of enactment of the 
                        American Jobs in Energy Manufacturing Act of 
                        2021 shall not exceed $2,300,000,000.
                            ``(ii) Additional allocation.--The total 
                        amount of credits that may be allocated under 
                        the program on or after to the date of 
                        enactment of the American Jobs in Energy 
                        Manufacturing Act of 2021 shall not exceed 
                        $8,000,000,000, of which not greater than 
                        $4,000,000,000 may be allocated to projects 
                        which are not located in a census tract 
                        described in subparagraph (B) of subsection 
                        (c)(1).'',
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by striking ``2-
                        year'' and inserting ``3-year'',
                            (ii) in subparagraph (B)--
                                    (I) by striking ``1 year'' and 
                                inserting ``18 months'', and
                                    (II) by adding at the end the 
                                following new sentence: ``Not later 
                                than 180 days after the date on which 
                                such evidence was provided by the 
                                applicant, the Secretary shall 
                                determine whether the requirements of 
                                the certification have been met.'', and
                            (iii) by adding at the end the following 
                        new subparagraph:
                    ``(D) Location of project.--In the case of an 
                applicant which receives a certification, if the 
                Secretary determines that the project has been placed 
                in service at a location which is materially different 
                than the location specified in the application for such 
                project, the certification shall no longer be valid.'',
                    (C) in paragraph (3)--
                            (i) by striking subparagraph (A) and 
                        inserting the following:
                    ``(A) shall take into consideration only those 
                projects--
                            ``(i) where there is a reasonable 
                        expectation of commercial viability, and
                            ``(ii) which will ensure laborers and 
                        mechanics employed by contractors and 
                        subcontractors in the performance of any 
                        qualifying advanced energy project shall be 
                        paid wages at rates not less than the 
                        prevailing rates on projects of a similar 
                        character in the locality as determined by the 
                        Secretary of Labor, in accordance with 
                        subchapter IV of chapter 31 of title 40, United 
                        States Code, and'', and
                            (ii) in subparagraph (B)--
                                    (I) by striking clauses (i) and 
                                (ii) and inserting the following:
                            ``(i) will provide the greatest net impact 
                        in avoiding or reducing anthropogenic emissions 
                        of greenhouse gases (or, in the case of a 
                        project described in subsection (c)(1)(A)(ii), 
                        will provide the greatest reduction of 
                        greenhouse gas emissions as compared to current 
                        best practices),
                            ``(ii) will provide the greatest domestic 
                        job creation (both direct and indirect) during 
                        the credit period,'',
                                    (II) by redesignating clauses (iii) 
                                through (v) as clauses (iv) through 
                                (vi), respectively, and
                                    (III) by inserting after clause 
                                (ii) the following new clause:
                            ``(iii) will provide the greatest job 
                        creation within the vicinity of the project, 
                        particularly with respect to--
                                    ``(I) low-income communities (as 
                                described in section 45D(e)), and
                                    ``(II) dislocated workers who were 
                                previously employed in manufacturing, 
                                coal power plants, or coal mining,'', 
                                and
                    (D) in paragraph (4)--
                            (i) by striking subparagraph (A) and 
                        inserting the following:
                    ``(A) Review and report.--Not later than 4 years 
                after the date of enactment of the American Jobs in 
                Energy Manufacturing Act of 2021, the Secretary shall--
                            ``(i) review the credits allocated under 
                        this section as of such date, and
                            ``(ii) submit a report regarding the 
                        allocation of such credits to--
                                    ``(I) the Committee on Finance and 
                                the Committee on Energy and Natural 
                                Resources of the Senate, and
                                    ``(II) the Committee on Ways and 
                                Means and the Committee on Energy and 
                                Commerce of the House of 
                                Representatives.'', and
                            (ii) by adding at the end the following new 
                        subparagraph:
                    ``(D) Special rule.--For purposes of reallocating 
                credits pursuant to this paragraph, the limitation 
                under paragraph (1)(B)(ii) with respect to allocation 
                of credits to projects which are not located in a 
                census tract described in subparagraph (B) of 
                subsection (c)(1) shall not apply.'',
            (3) in subsection (e), by inserting ``45Q,'' after 
        ``section'', and
            (4) by adding at the end the following new subsection:
    ``(f) Technical Assistance.--For purposes of assisting with 
applications for certification under subsection (d), the Secretary of 
Energy shall provide technical assistance to any State (or political 
subdivision thereof), tribe, or economic development organization 
which, prior to the date of enactment of the American Jobs in Energy 
Manufacturing Act of 2021--
            ``(1) had no applicants for certification under such 
        subsection, or
            ``(2) had less than 2 qualifying advanced energy projects 
        which received an allocation of credits under such 
        subsection.''.
    (b) Authorization of Appropriations.--To carry out subsection (f) 
of section 48C of the Internal Revenue Code of 1986 (as added by 
subsection (a)(4)), there is authorized to be appropriated to the State 
Energy Program of the Department of Energy, out of moneys in the 
Treasury not otherwise appropriated, $500,000, to remain available 
until expended.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2021.
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