Title: Onshore Wind American Manufacturing Act of 2021
Policy area: Taxation

Summary:
Onshore Wind American Manufacturing Act of 2021
This bill provides tax credits for investment in manufacturing facilities that produce onshore wind turbine components.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 2909 Introduced in Senate (IS)]

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117th CONGRESS
  1st Session
                                S. 2909

 To amend the Internal Revenue Code of 1986 to provide a manufacturing 
  investment tax credit and a production tax credit for manufacturing 
        facilities that produce onshore wind turbine components.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 30, 2021

  Mr. Bennet (for himself and Ms. Stabenow) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to provide a manufacturing 
  investment tax credit and a production tax credit for manufacturing 
        facilities that produce onshore wind turbine components.

    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 ``Onshore Wind American Manufacturing 
Act of 2021''.

SEC. 2. ONSHORE WIND MANUFACTURING CREDIT.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code is amended by inserting after section 36B 
the following new section:

``SEC. 36C. ONSHORE WIND MANUFACTURING CREDIT.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this subtitle for any taxable year an amount 
equal to the sum of--
            ``(1) the onshore wind manufacturing investment credit, and
            ``(2) the onshore wind manufacturing production credit.
    ``(b) Credit Amounts.--For purposes of this section--
            ``(1) Manufacturing investment credit.--
                    ``(A) In general.--The onshore wind manufacturing 
                investment credit for any taxable year is an amount 
                equal to 30 percent of the qualified investment for 
                such taxable year.
                    ``(B) Qualified investment.--The qualified 
                investment for any taxable year is the basis of any 
                onshore wind manufacturing property placed in service 
                in the United States by the taxpayer during such 
                taxable year.
                    ``(C) Onshore wind manufacturing property.--The 
                term `onshore wind manufacturing property' means 
                property--
                            ``(i) which is used predominantly to 
                        manufacture or process any qualified onshore 
                        wind component,
                            ``(ii) with respect to which depreciation 
                        (or amortization in lieu of depreciation) is 
                        allowable, and
                            ``(iii) which--
                                    ``(I) is constructed, 
                                reconstructed, retooled, upgraded, 
                                expanded, or erected by the taxpayer, 
                                or
                                    ``(II) which is acquired by the 
                                taxpayer, if the original use of such 
                                property commences with the taxpayer.
            ``(2) Manufacturing production credit.--
                    ``(A) In general.--The onshore wind manufacturing 
                production credit is an amount equal to the applicable 
                rate with respect to any qualified onshore wind 
                component or related vehicles or specialty equipment 
                which--
                            ``(i) is produced by the taxpayer at a 
                        qualified manufacturing facility, and
                            ``(ii) during the taxable year--
                                    ``(I) is sold by the taxpayer to--
                                            ``(aa) an unrelated person, 
                                        or
                                            ``(bb) a related person for 
                                        the use of such person in their 
                                        trade or business (with the 
                                        exception of any trade or 
                                        business related to resale of 
                                        such onshore wind component 
                                        without any subsequent 
                                        modification, assembly, or 
                                        integration into a project), or
                                    ``(II) if not sold, is placed in 
                                service or operation by the taxpayer or 
                                any other person.
                    ``(B) Applicable rate.--The applicable rate is--
                            ``(i) with respect to any qualified onshore 
                        wind component, the total rated capacity 
                        (expressed in watts) of the completed onshore 
                        wind turbine for which the component is 
                        designed, multiplied by--
                                    ``(I) in the case of any hub, 2 
                                cents,
                                    ``(II) in the case of any tower, 3 
                                cents,
                                    ``(III) in the case of any blade, 4 
                                cents, and
                                    ``(IV) in the case of any nacelle, 
                                5 cents, and
                            ``(ii) with respect to any related vehicles 
                        or specialty equipment, an amount equal to--
                                    ``(I) 30 percent of the sale price 
                                of such vehicles or equipment, in the 
                                case of vehicles or equipment used for 
                                the transport or installation of 
                                advanced onshore wind technology, and
                                    ``(II) 10 percent of the sale price 
                                of such vehicles or equipment, in any 
                                other case.
                    ``(C) Qualified manufacturing facility.--The term 
                `qualified manufacturing facility' means any new or 
                existing facility--
                            ``(i) which is located in the United 
                        States, and
                            ``(ii) which manufactures or assembles 
                        qualified onshore wind components or related 
                        vehicles or specialty equipment.
                    ``(D) Advanced onshore wind technology.--The term 
                `advanced onshore wind technology' means any onshore 
                wind energy production technology whose land-based 
                system components are of a size that cannot be 
                transported on the Interstate Highway System due to the 
                minimum vertical clearances of bridges.
                    ``(E) Production and sale must be in trade or 
                business.--Any qualified onshore wind component 
                produced and sold by the taxpayer shall be taken into 
                account under subparagraph (A)(ii)(I) only if the 
                production and sale described in subparagraph (A) is in 
                a trade or business of the taxpayer.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualified onshore wind component.--
                    ``(A) In general.--The term `qualified onshore wind 
                component' means any blade, tower, nacelle, or hub 
                which is a component in an onshore wind energy system 
                producing electricity which--
                            ``(i) is rated at more than 150 kilowatts, 
                        or
                            ``(ii) is certified by an accredited 
                        certification agency to meet Standard 9.1-2009 
                        of the American Wind Energy Association or the 
                        Small Wind Turbine Standard (SWT-1) of the 
                        American Clean Power Association and American 
                        National Standards Institute.
                    ``(B) Definitions.--
                            ``(i) Blade.--The term `blade' means an 
                        airfoil-shaped blade which is responsible for 
                        converting onshore wind energy to low speed 
                        rotational energy.
                            ``(ii) Tower.--The term `tower' means a 
                        tubular steel, composite, concrete, or steel 
                        lattice structure which supports an onshore 
                        wind turbine.
                            ``(iii) Nacelle.--The term `nacelle' means 
                        the assembly of the drive train and other 
                        tower-top components of an onshore wind 
                        turbine, excluding the blades and hub, within 
                        their cover housing.
                            ``(iv) Hub.--The term `hub' means the 
                        component which connects the blades to the main 
                        shaft of the onshore wind turbine.
            ``(2) Related vehicles or specialty equipment.--The term 
        `related vehicles or specialty equipment' means any vehicles, 
        aircraft, or related logistical equipment which are purpose-
        built or retrofitted for purposes of the transport, 
        installation, or maintenance of onshore wind components and 
        onshore wind turbines.
    ``(d) Special Rules.--For purposes of this section--
            ``(1) Secretary.--Any reference to the Secretary means the 
        Secretary in consultation with the Secretary of Energy.
            ``(2) Labor conditions.--Any property shall be treated as 
        onshore wind manufacturing property, and any facility shall be 
        treated as a qualified manufacturing facility, only if all 
        laborers and mechanics employed by all contractors and 
        subcontractors in the manufacture of such property or at such 
        facility are paid wages at rates not less than the prevailing 
        rates for work of a similar character in the locality as 
        determined by the Secretary of Labor, in accordance with 
        sections 3141 through 3144, 3146, and 3147 of title 40, United 
        States Code.
            ``(3) Certain rules made applicable for investment 
        credit.--For purposes of the onshore wind manufacturing 
        investment credit determined under subsection (b)(1), rules 
        similar to the rules of subsections (a) and (c) of section 50 
        shall apply.
            ``(4) Coordination with general investment credit.--No 
        credit shall be allowed under section 48C with respect to any 
        facility taken into account for purposes of the credit under 
        subsection (b)(2), or any facility with respect to which any 
        qualified investment is taken into account for purposes of the 
        credit under subsection (b)(1). The credit under this section 
        shall be allowed without regard to whether any qualified 
        investment (as defined in section 48C(b)) with respect to a 
        facility has been taken into account for purposes of section 
        48C in any preceding taxable year.
    ``(e) Registration.--
            ``(1) In general.--No credit shall be allowed under this 
        section unless the taxpayer registers with the Secretary, at 
        such time, in such form and manner, and subject to such terms 
        and conditions, as the Secretary may by regulations prescribe. 
        Such registration shall include a demonstration of compliance 
        with the requirements of subsection (d)(2).
            ``(2) Registration in event of change in ownership.--Under 
        regulations prescribed by the Secretary, the taxpayer (other 
        than a corporation the stock of which is regularly traded on an 
        established securities market) shall be required to re-register 
        under this subsection if after a transaction (or series of 
        related transactions) more than 50 percent of ownership 
        interests in, or assets of, the taxpayer are held by persons 
        other than persons (or persons related thereto) who held more 
        than 50 percent of such interests or assets before the 
        transaction (or series of related transactions).
            ``(3) Denial, revocation, or suspension of registration.--
        Rules similar to the rules of section 4222(c) shall apply to 
        registration under this section.
            ``(4) Information reporting.--The Secretary may require--
                    ``(A) information reporting by any person 
                registered under this subsection, and
                    ``(B) information reporting by such other persons 
                as the Secretary deems necessary to carry out this 
                section.
    ``(f) Termination.--
            ``(1) Onshore wind manufacturing investment tax credit.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), in the case of any qualified 
                investment with respect to onshore wind manufacturing 
                property which is placed in service after December 31, 
                2028, the amount of the credit determined under 
                subsection (b)(1) (without regard to this subsection) 
                shall be reduced by--
                            ``(i) in the case of property placed in 
                        service in calendar year 2029, 30 percent,
                            ``(ii) in the case of property placed in 
                        service in calendar year 2030, 65 percent, and
                            ``(iii) in the case of property placed in 
                        service after December 31, 2030, 100 percent.
                    ``(B) 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 
                subparagraph (A).
            ``(2) Onshore wind manufacturing production tax credit.--No 
        credit shall be allowed under subsection (b)(2) in the case of 
        any qualified onshore wind component first sold or placed in 
        service after December 31, 2030.''.
    (b) Clerical Amendment.--The table of sections for subpart C of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code is 
amended by inserting after the item relating to section 36B the 
following new item:

``Sec. 36C. Onshore wind manufacturing credit.''.
    (c) Conforming Amendment.--Paragraph (2) of section 1324(b) of 
title 31, United States Code, is amended by inserting ``, 36C'' after 
``36B''.
    (d) Effective Date.--The amendments made by this section shall 
apply to--
            (1) any qualified investment (as defined in section 
        36C(b)(1)(B) of the Internal Revenue Code of 1986, as added by 
        this section) with respect to property placed in service 
        beginning after August 1, 2021, and
            (2) qualified onshore wind components (as defined in 
        section 36C(c)(1) of such Code, as so added) first sold or 
        placed in service after August 1, 2021.
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