,,ii #aaeth ,,congress #ast ,session ,s4 #ajfh ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #h1 #bjag,mr4 ,wyden 7for himself1 ,mr4 ,schumer1 ,ms4 ,stabenow1 ,ms4 ,cantwell1 ,mr4 ,menendez1 ,mr4 ,carper1 ,mr4 ,cardin1 ,mr4 ,bennet1 ,mr4 ,durbin1 ,ms4 ,klobuchar1 ,mr4 ,whitehouse1 ,mrs4 ,shaheen1 ,mrs4 ,gillibrand1 ,mr4 ,coons1 ,mr4 ,schatz1 ,mr4 ,heinrich1 ,mr4 ,king1 ,mr4 ,kaine1 ,mr4 ,booker1 ,ms4 ,duckworth1 ,ms4 ,hassan1 and ,ms4 ,cortez ,masto7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide tax incentives for increased investment in clean energy4 #a4 ,short title2 etc 7a7 ,short title ,this ,act may be cited as the ,clean ,energy for ,america ,act4 7b7 ,amendment of #aihf ,code ,except as otherwise expressly provided1 whenever in this ,act an amendment or repeal is expressed in terms of an amendment to1 or repeal of1 a section or other provision1 the reference shall be considered to be made to a section or other provision of the ,internal ,revenue ,code of #aihf4 7c7 ,table of contents ,the table of contents of this ,act is as follows3 ,sec4 #a4 ,short title2 etc4 ,,title ,i--,clean energy tax credits ,sec4 #aja4 ,clean energy production credit4 ,sec4 #ajb4 ,clean energy investment credit4 ,sec4 #ajc4 ,extensions and modifications of various energy provisions4 ,,title ,,ii--,clean fuel tax credits ,sec4 #bja4 ,clean fuel production credit4 ,sec4 #bjb4 ,temporary extension of existing fuel and transportation incentives4 ,,title ,,iii--,energy ,efficiency ,incentives ,sec4 #cja4 ,credit for new energy efficient residential buildings4 ,sec4 #cjb4 ,heating and air conditioning replacement credit4 ,sec4 #cjc4 ,energy efficiency credit for existing residential buildings4 ,sec4 #cjd4 ,deduction for new energy efficient commercial buildings4 ,sec4 #cje4 ,energy efficiency deduction for existing commercial buildings4 ,sec4 #cjf4 ,temporary extension of existing energy efficiency incentives4 ,,title ,,iv--,clean ,electricity and ,fuel ,bonds ,sec4 #dja4 ,clean energy bonds4 ,i ,clean energy tax credits #aja4 ,clean energy production credit 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a is amended by adding at the end the following new section3 #de,s4 ,clean energy production credit 7a7 ,amount of credit 7#a7 ,in general ,for purposes of section #ch1 the clean energy production credit for any taxable year is an amount equal to the product of-- 7,a7 the applicable credit rate 7as determined under paragraph 7#b771 multiplied by 7,b7 the kilowatt hours of electricity-- 7i7 produced by the taxpayer at a qualified facility1 and 7ii7 7,i7 sold by the taxpayer to an unrelated person during the taxable year1 or 7,,ii7 in the case of a qualified facility which is equipped with a metering device which is owned and operated by an unrelated person1 sold1 consumed1 or stored by the taxpayer during the taxable year4 7#b7 ,applicable credit rate 7,a7 ,in general 7i7 ,maximum credit rate ,except as provided in clause 7ii71 the applicable credit rate is #a4e cents4 7ii7 ,reduction of credit based on greenhouse gas emission rate ,the applicable credit rate shall be reduced 7but not below zero7 by an amount which bears the same ratio to the amount in effect under clause 7i7 as the greenhouse gas emissions rate for the qualified facility bears to #cbe grams of ,,co#b;e per ,k,wh4 7,b7 ,rounding ,if any amount determined under subparagraph 7,a77ii7 is not a multiple of #j4a cent1 such amount shall be rounded to the nearest multiple of #j4a cent4 7b7 ,greenhouse gas emissions rate 7#a7 ,in general ,for purposes of this section1 the term greenhouse gas emissions rate means the amount of greenhouse gases emitted into the atmosphere by a qualified facility in the production of electricity1 expressed as grams of ,,co#b;e per ,k,wh4 7#b7 ,non-fossil fuel combustion and gasification ,in the case of a qualified facility which produces electricity through combustion or gasification of a non-fossil fuel1 the greenhouse gas emissions rate for such facility shall be equal to the net rate of greenhouse gases emitted into the atmosphere by such facility in the production of electricity1 expressed as grams of ,,co#b;e per ,k,wh4 7#c7 ,establishment of safe harbor for qualified facilities 7,a7 ,in general ,the ,secretary1 in consultation with the ,administrator of the ,environmental ,protection ,agency1 shall establish safe-harbor greenhouse gas emissions rates for types or categories of qualified facilities1 which a taxpayer may elect to use for purposes of this section4 7,b7 ,rounding ,in establishing the safe-harbor greenhouse gas emissions rates for qualified facilities1 the ,secretary may round such rates to the nearest multiple of #cb4e grams of ,,co#b;e per ,k,wh 7or1 in the case of a greenhouse gas emissions rate which is less than #af4be grams of ,,co#b;e per ,k,wh1 by rounding such rate to zero74 7#d7 ,carbon capture and sequestration equipment ,for purposes of this subsection1 the amount of greenhouse gases emitted into the atmosphere by a qualified facility in the production of electricity shall not include any qualified carbon dioxide 7as defined in section #dh;,e7c77#c77;,a77 that is captured and disposed of by the taxpayer4 7c7 ,inflation adjustment 7#a7 ,in general ,in the case of a calendar year beginning after #bjah1 the #a4e cent amount in clause 7i7 of subsection 7a77#b77;,a7 shall be adjusted by multiplying such amount by the inflation adjustment factor for the calendar year in which the sale or use of the electricity occurs4 ,if any amount as increased under the preceding sentence is not a multiple of #j4a cent1 such amount shall be rounded to the nearest multiple of #j4a cent4 7#b7 ,annual computation ,the ,secretary shall1 not later than ,april #a of each calendar year1 determine and publish in the ,federal ,register the inflation adjustment factor for such calendar year in accordance with this subsection4 7#c7 ,inflation adjustment factor ,the term inflation adjustment factor means1 with respect to a calendar year1 a fraction the numerator of which is the ,,gdp implicit price deflator for the preceding calendar year and the denominator of which is the ,,gdp implicit price deflator for the calendar year #aiib4 ,the term ,,gdp implicit price deflator means the most recent revision of the implicit price deflator for the gross domestic product as computed and published by the ,department of ,commerce before ,march #ae of the calendar year4 7d7 ,credit phase-,out 7#a7 ,in general ,if the ,secretary1 in consultation with the ,secretary of ,energy and the ,administrator of the ,environmental ,protection ,agency1 determines that the annual greenhouse gas emissions from electrical production in the ,united ,states are equal to or less than #fe percent of the annual greenhouse gas emissions from electrical production in the ,united ,states for calendar year #bjag1 the amount of the clean energy production credit under subsection 7a7 for any qualified facility placed in service during a calendar year described in paragraph 7#b7 shall be equal to the product of-- 7,a7 the amount of the credit determined under subsection 7a7 without regard to this subsection1 multiplied by 7,b7 the phase-out percentage under paragraph 7#b74 7#b7 ,phase-out percentage ,the phase-out percentage under this paragraph is equal to-- 7,a7 for a facility placed in service during the first calendar year following the calendar year in which the determination described in paragraph 7#a7 is made1 #ge percent1 7,b7 for a facility placed in service during the second calendar year following such determination year1 #ej percent1 7,c7 for a facility placed in service during the third calendar year following such determination year1 #be percent1 and 7,d7 for a facility placed in service during any calendar year subsequent to the year described in subparagraph 7,c71 #j percent4 7e7 ,definitions ,in this section3 7#a7 ,,co#b;e per ,k,wh ,the term ,,co#b;e per ,k,wh means1 with respect to any greenhouse gas1 the equivalent carbon dioxide per kilowatt hour of electricity produced4 7#b7 ,greenhouse gas ,the term greenhouse gas has the same meaning given such term under section #baa7o77#a77;,g7 of the ,clean ,air ,act 7#db ,u4,s4,c4 #gede7o77#a77;,g771 as in effect on the date of the enactment of this section4 7#c7 ,qualified facility 7,a7 ,in general ,subject to subparagraphs 7,b7 and 7,c71 the term qualified facility means a facility which is-- 7i7 used for the generation of electricity1 and 7ii7 originally placed in service after ,december #ca1 #bjah4 7,b7 #aj-year production credit ,for purposes of this section1 a facility shall only be treated as a qualified facility during the #aj-year period beginning on the date the facility was originally placed in service4 7,c7 ,expansion of facility2 incremental production ,a qualified facility shall include either of the following in connection with a facility described in subparagraph 7,a77i7 that was previously placed in service1 but only to the extent of the increased amount of electricity produced at the facility by reason of the following3 7i7 ,a new unit placed in service after ,december #ca1 #bjah4 7ii7 ,any efficiency improvements or additions of capacity placed in service after ,december #ca1 #bjah4 7,d7 ,coordination with other credits ,the term qualified facility shall not include any facility for which-- 7i7 a renewable electricity production credit determined under section #de is allowed under section #ch for the taxable year or any prior taxable year1 7ii7 an energy credit determined under section #dh is allowed under section #ch for the taxable year or any prior taxable year1 or 7iii7 a clean energy investment credit determined under section #dh;,e is allowed under section #ch for the taxable year or any prior taxable year4 7f7 ,final guidance ,not later than ,january #a1 #bjah1 the ,secretary1 in consultation with the ,administrator of the ,environmental ,protection ,agency1 shall issue final guidance regarding implementation of this section1 including calculation of greenhouse gas emission rates for qualified facilities and determination of clean energy production credits under this section4 7g7 ,special rules 7#a7 ,only production in the ,united ,states taken into account ,consumption or sales shall be taken into account under this section only with respect to electricity the production of which is within-- 7,a7 the ,united ,states 7within the meaning of section #fch7a771 or 7,b7 a possession of the ,united ,states 7within the meaning of section #fch7b774 7#b7 ,combined heat and power system property 7,a7 ,in general ,for purposes of subsection 7a77#a77;,b71 the kilowatt hours of electricity produced by a taxpayer at a qualified facility shall include any production in the form of useful thermal energy by any combined heat and power system property within such facility4 7,b7 ,combined heat and power system property ,for purposes of this paragraph1 the term combined heat and power system property has the same meaning given such term by section #dh7;c77#c7 7without regard to subparagraphs 7,a77iv71 7,b71 and 7,d7 thereof74 7,c7 ,conversion from ,,btu to ,k,wh 7i7 ,in general ,for purposes of subparagraph 7,a71 the amount of kilowatt hours of electricity produced in the form of useful thermal energy shall be equal to the quotient of-- 7,i7 the total useful thermal energy produced by the combined heat and power system property within the qualified facility1 divided by 7,,ii7 the heat rate for such facility4 7ii7 ,heat rate ,for purposes of this subparagraph1 the term heat rate means the amount of energy used by the qualified facility to generate #a kilowatt hour of electricity1 expressed as ,british thermal units per net kilowatt hour generated4 7#c7 ,production attributable to the taxpayer ,in the case of a qualified facility in which more than #a person has an ownership interest1 except to the extent provided in regulations prescribed by the ,secretary1 production from the facility shall be allocated among such persons in proportion to their respective ownership interests in the gross sales from such facility4 7#d7 ,related persons ,persons shall be treated as related to each other if such persons would be treated as a single employer under the regulations prescribed under section #eb7;b74 ,in the case of a corporation which is a member of an affiliated group of corporations filing a consolidated return1 such corporation shall be treated as selling electricity to an unrelated person if such electricity is sold to such a person by another member of such group4 7#e7 ,pass-thru in the case of estates and trusts ,under regulations prescribed by the ,secretary1 rules similar to the rules of subsection 7d7 of section #eb shall apply4 7#f7 ,allocation of credit to patrons of agricultural cooperative 7,a7 ,election to allocate 7i7 ,in general ,in the case of an eligible cooperative organization1 any portion of the credit determined under subsection 7a7 for the taxable year may1 at the election of the organization1 be apportioned among patrons of the organization on the basis of the amount of business done by the patrons during the taxable year4 7ii7 ,form and effect of election ,an election under clause 7i7 for any taxable year shall be made on a timely filed return for such year4 ,such election1 once made1 shall be irrevocable for such taxable year4 ,such election shall not take effect unless the organization designates the apportionment as such in a written notice mailed to its patrons during the payment period described in section #achb7;d74 7,b7 ,treatment of organizations and patrons ,the amount of the credit apportioned to any patrons under subparagraph 7,a7-- 7i7 shall not be included in the amount determined under subsection 7a7 with respect to the organization for the taxable year1 and 7ii7 shall be included in the amount determined under subsection 7a7 for the first taxable year of each patron ending on or after the last day of the payment period 7as defined in section #achb7;d77 for the taxable year of the organization or1 if earlier1 for the taxable year of each patron ending on or after the date on which the patron receives notice from the cooperative of the apportionment4 7,c7 ,special rules for decrease in credits for taxable year ,if the amount of the credit of a cooperative organization determined under subsection 7a7 for a taxable year is less than the amount of such credit shown on the return of the cooperative organization for such year1 an amount equal to the excess of-- 7i7 such reduction1 over 7ii7 the amount not apportioned to such patrons under subparagraph 7,a7 for the taxable year1 shall be treated as an increase in tax imposed by this chapter on the organization4 ,such increase shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit under this chapter4 7,d7 ,eligible cooperative defined ,for purposes of this section1 the term eligible cooperative means a cooperative organization described in section #acha7;a7 which is owned more than #ej percent by agricultural producers or by entities owned by agricultural producers4 ,for this purpose an entity owned by an agricultural producer is one that is more than #ej percent owned by agricultural producers4 4 7b7 ,conforming amendments 7#a7 ,section #ch7;b7 is amended-- 7,a7 in paragraph 7#ce71 by striking plus at the end1 7,b7 in paragraph 7#cf71 by striking the period at the end and inserting 1 plus1 and 7,c7 by adding at the end the following new paragraph3 7#cg7 the clean energy production credit determined under section #de,s7a74 4 7#b7 ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a is amended by adding at the end the following new item3 ,sec4 #de,s4 ,clean energy production credit4 4 7c7 ,effective date ,the amendments made by this section shall apply to facilities placed in service after ,december #ca1 #bjah4 #ajb4 ,clean energy investment credit 7a7 ,business credit 7#a7 ,in general ,subpart ,e of part ,,iv of subchapter ,a of chapter #a is amended by inserting after section #dh;,d the following new section3 #dh;,e4 ,clean energy investment credit 7a7 ,investment credit for qualified property 7#a7 ,in general ,for purposes of section #df1 the clean energy investment credit for any taxable year is an amount equal to the sum of-- 7,a7 the clean energy percentage of the qualified investment for such taxable year with respect to any qualified facility1 plus 7,b7 #cj percent of the qualified investment for such taxable year with respect to-- 7i7 qualified carbon capture and sequestration equipment1 and 7ii7 energy storage property4 7#b7 ,clean energy percentage 7,a7 ,in general 7i7 ,maximum percentage ,except as provided in clause 7ii71 the clean energy percentage is #cj percent4 7ii7 ,reduction of percentage based on greenhouse gas emissions rate ,the clean energy percentage shall be reduced 7but not below zero7 by an amount which bears the same ratio to #cj percent as the anticipated greenhouse gas emissions rate for the qualified facility bears to #cbe grams of ,,co#b;e per ,k,wh4 7,b7 ,rounding ,if any amount determined under subparagraph 7,a77ii7 is not a multiple of #a percent1 such amount shall be rounded to the nearest multiple of #a percent4 7#c7 ,coordination with rehabilitation credit ,the clean energy percentage shall not apply to that portion of the basis of any property which is attributable to qualified rehabilitation expenditures 7as defined in section #dg7;c77#b774 7b7 ,qualified investment with respect to any qualified facility 7#a7 ,in general ,for purposes of subsection 7a77#a77;,a71 the qualified investment with respect to any qualified facility for any taxable year is the basis of any qualified property placed in service by the taxpayer during such taxable year which is part of a qualified facility4 7#b7 ,qualified property ,the term qualified property means property-- 7,a7 which is-- 7i7 tangible personal property1 or 7ii7 other tangible property 7not including a building or its structural components71 but only if such property is used as an integral part of the qualified facility1 7,b7 with respect to which depreciation 7or amortization in lieu of depreciation7 is allowable1 7,c7 which is constructed1 reconstructed1 erected1 or acquired by the taxpayer1 and 7,d7 the original use of which commences with the taxpayer4 7#c7 ,qualified facility ,the term qualified facility has the same meaning given such term under section #de,s7e77#c7 7without regard to subparagraphs 7,b7 and 7,d7 thereof74 ,such term shall not include any facility for which a renewable electricity production credit under section #de or an energy credit determined under section #dh is allowed under section #ch for the taxable year or any prior taxable year4 7c7 ,qualified investment with respect to qualified carbon capture and sequestration equipment 7#a7 ,in general ,for purposes of subsection 7a77#a77;,b77i71 the qualified investment with respect to qualified carbon capture and sequestration equipment for any taxable year is the basis of any qualified carbon capture and sequestration equipment placed in service by the taxpayer during such taxable year4 7#b7 ,qualified carbon capture and sequestration equipment ,the term qualified carbon capture and sequestration equipment means property-- 7,a7 installed at a facility placed in service before ,january #a1 #bjai1 which produces electricity1 7,b7 which results in at least a #ej percent reduction in the carbon dioxide emissions rate at the facility1 as compared to such rate before installation of such equipment1 through the capture and disposal of qualified carbon dioxide 7as defined in paragraph 7#c77;,a771 7,c7 with respect to which depreciation is allowable1 7,d7 which is constructed1 reconstructed1 erected1 or acquired by the taxpayer1 and 7,e7 the original use of which commences with the taxpayer4 7#c7 ,qualified carbon dioxide 7,a7 ,in general ,the term qualified carbon dioxide means carbon dioxide captured from an industrial source which-- 7i7 would otherwise be released into the atmosphere as industrial emission of greenhouse gas1 7ii7 is measured at the source of capture and verified at the point of disposal or injection1 7iii7 is disposed of by the taxpayer in secure geological storage1 and 7iv7 is captured and disposed of within the ,united ,states 7within the meaning of section #fch7a77 or a possession of the ,united ,states 7within the meaning of section #fch7b774 7,b7 ,secure geological storage ,the term secure geological storage has the same meaning given to such term under section #de,q7d77#b74 7d7 ,qualified investment with respect to energy storage property 7#a7 ,in general ,for purposes of subsection 7a77#a77;,b77ii71 the qualified investment with respect to energy storage property for any taxable year is the basis of any energy storage property placed in service by the taxpayer during such taxable year4 7#b7 ,energy storage property ,the term energy storage property means property-- 7,a7 which receives1 stores1 and delivers electricity or energy for conversion to electricity1 provided that such electricity is-- 7i7 sold by the taxpayer to an unrelated person1 or 7ii7 in the case of a facility which is equipped with a metering device which is owned and operated by an unrelated person1 sold or consumed by the taxpayer1 7,b7 with respect to which depreciation is allowable1 7,c7 which is constructed1 reconstructed1 erected1 or acquired by the taxpayer1 7,d7 the original use of which commences with the taxpayer1 and 7,e7 which is placed in service after ,december #ca1 #bjah4 7e7 ,greenhouse gas emissions rate 7#a7 ,in general ,for purposes of this section1 the term greenhouse gas emissions rate has the same meaning given such term under subsection 7b7 of section #de,s4 7#b7 ,establishment of safe harbor for qualified property 7,a7 ,in general ,the ,secretary1 in consultation with the ,administrator of the ,environmental ,protection ,agency1 shall establish safe-harbor greenhouse gas emissions rates for types or categories of qualified property which are part of a qualified facility1 which a taxpayer may elect to use for purposes of this section4 7,b7 ,rounding ,in establishing the safe-harbor greenhouse gas emissions rates for qualified property1 the ,secretary may round such rates to the nearest multiple of #cb4e grams of ,,co#b;e per ,k,wh 7or1 in the case of a greenhouse gas emissions rate which is less than #af4be grams of ,,co#b;e per ,k,wh1 by rounding such rate to zero74 7f7 ,certain progress expenditure rules made applicable ,rules similar to the rules of subsections 7c77#d7 and 7d7 of section #df 7as in effect on the day before the date of the enactment of the ,revenue ,reconciliation ,act of #aiij7 shall apply for purposes of subsection 7a74 7g7 ,credit phase-,out 7#a7 ,in general ,if the ,secretary1 in consultation with the ,secretary of ,energy and the ,administrator of the ,environmental ,protection ,agency1 determines that the annual greenhouse gas emissions from electrical production in the ,united ,states are equal to or less than #fe percent of the annual greenhouse gas emissions from electrical production in the ,united ,states for calendar year #bjag1 the amount of the clean energy investment credit under subsection 7a7 for any qualified facility1 qualified carbon capture and sequestration equipment1 or energy storage property placed in service during a calendar year described in paragraph 7#b7 shall be equal to the product of-- 7,a7 the amount of the credit determined under subsection 7a7 without regard to this subsection1 multiplied by 7,b7 the phase-out percentage under paragraph 7#b74 7#b7 ,phase-out percentage ,the phase-out percentage under this paragraph is equal to-- 7,a7 for a facility or property placed in service during the first calendar year following the calendar year in which the determination described in paragraph 7#a7 is made1 #ge percent1 7,b7 for a facility or property placed in service during the second calendar year following such determination year1 #ej percent1 7,c7 for a facility or property placed in service during the third calendar year following such determination year1 #be percent1 and 7,d7 for a facility or property placed in service during any calendar year subsequent to the year described in subparagraph 7,c71 #j percent4 7h7 ,definitions ,in this section3 7#a7 ,,co#b;e per ,k,wh ,the term ,,co#b;e per ,k,wh has the same meaning given such term under section #de,s7e77#a74 7#b7 ,greenhouse gas ,the term greenhouse gas has the same meaning given such term under section #de,s7e77#b74 7i7 ,recapture of credit ,for purposes of section #ej1 if the ,administrator of the ,environmental ,protection ,agency determines that-- 7#a7 the greenhouse gas emissions rate for a qualified facility is significantly higher than the anticipated greenhouse gas emissions rate claimed by the taxpayer for purposes of the clean energy investment credit under this section1 or 7#b7 with respect to any qualified carbon capture and sequestration equipment installed in a facility1 the carbon dioxide emissions from such facility cease to be captured or disposed of in a manner consistent with the requirements of subsection 7c71 the facility or equipment shall cease to be investment credit property in the taxable year in which the determination is made4 7j7 ,final guidance ,not later than ,january #a1 #bjah1 the ,secretary1 in consultation with the ,administrator of the ,environmental ,protection ,agency1 shall issue final guidance regarding implementation of this section1 including calculation of greenhouse gas emission rates for qualified facilities and determination of clean energy investment credits under this section4 4 7#b7 ,conforming amendments 7,a7 ,section #df is amended by inserting a comma at the end of paragraph 7#d71 by striking 8and0 at the end of paragraph 7#e71 by striking the period at the end of paragraph 7#f7 and inserting 81 and01 and by adding at the end the following new paragraph3 7#g7 the clean energy investment credit4 4 7,b7 ,section #di7;a77#a77;,c7 is amended by striking 8and0 at the end of clause 7v71 by striking the period at the end of clause 7vi7 and inserting a comma1 and by adding at the end the following new clauses3 7vii7 the basis of any qualified property which is part of a qualified facility under section #dh;,e1 7viii7 the basis of any qualified carbon capture and sequestration equipment under section #dh;,e1 and 7ix7 the basis of any energy storage property under section #dh;,e4 4 7,c7 ,section #ej7;a77#b77;,e7 is amended by inserting or #dh;,e7e7 after section #dh7;b74 7,d7 ,the table of sections for subpart ,e of part ,,iv of subchapter ,a of chapter #a is amended by inserting after the item relating to section #dh;,d the following new item3 #dh;,e4 ,clean energy investment credit4 4 7#c7 ,effective date ,the amendments made by this subsection shall apply to property placed in service after ,december #ca1 #bjah1 under rules similar to the rules of section #dh7m7 of the ,internal ,revenue ,code of #aihf 7as in effect on the day before the date of the enactment of the ,revenue ,reconciliation ,act of #aiij74 7b7 ,individual credit 7#a7 ,in general ,section #be;,d is amended to read as follows3 #be;,d4 ,clean residential energy credit 7a7 ,allowance of credit 7#a7 ,in general ,in the case of an individual1 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-- 7,a7 the clean energy percentage of the expenditures made by the taxpayer for qualified property which is-- 7i7 for use in a dwelling unit which is located in the ,united ,states and used as a residence by the taxpayer1 and 7ii7 placed in service during such taxable year1 plus 7,b7 #cj percent of the expenditures made by the taxpayer for energy storage property which is-- 7i7 for use in a dwelling unit which is located in the ,united ,states and used as a residence by the taxpayer1 and 7ii7 placed in service during such taxable year4 7#b7 ,clean energy percentage 7,a7 ,in general 7i7 ,maximum percentage ,except as provided in clause 7ii71 the clean energy percentage is #cj percent4 7ii7 ,reduction of percentage based on greenhouse gas emissions rate ,the clean energy percentage shall be reduced 7but not below zero7 by an amount which bears the same ratio to #cj percent as the anticipated greenhouse gas emissions rate for the qualified property bears to #cbe grams of ,,co#b;e per ,k,wh4 7,b7 ,rounding ,if any amount determined under subparagraph 7,a77ii7 is not a multiple of #a percent1 such amount shall be rounded to the nearest multiple of #a percent4 7,c7 ,definitions ,for purposes of this section1 the terms greenhouse gas emissions rate and ,,co#b;e per ,k,wh have the same meanings given such terms under subsections 7b7 and 7e77#a7 of section #de,s1 respectively4 7#c7 ,establishment of safe harbor for qualified property 7,a7 ,in general ,the ,secretary1 in consultation with the ,administrator of the ,environmental ,protection ,agency1 shall establish safe-harbor greenhouse gas emissions rates for types or categories of qualified property which are for use in a dwelling unit1 which a taxpayer may elect to use for purposes of this section4 7,b7 ,rounding ,in establishing the safe-harbor greenhouse gas emissions rates for qualified property1 the ,secretary may round such rates to the nearest multiple of #cb4e grams of ,,co#b;e per ,k,wh 7or1 in the case of a greenhouse gas emissions rate which is less than #af4be grams of ,,co#b;e per ,k,wh1 by rounding such rate to zero74 7b7 ,qualified property ,the term qualified property means property-- 7#a7 which is tangible personal property1 7#b7 which is used for the generation of electricity1 7#c7 which is constructed1 reconstructed1 erected1 or acquired by the taxpayer1 7#d7 the original use of which commences with the taxpayer1 and 7#e7 which is originally placed in service after ,december #ca1 #bjah4 7c7 ,energy storage property ,the term energy storage property means property which-- 7#a7 receives1 stores1 and delivers electricity or energy for conversion to electricity which is consumed by the taxpayer1 and 7#b7 is equipped with a metering device which is owned and operated by an unrelated person4 7d7 ,carryforward of unused credit ,if the credit allowable under subsection 7a7 exceeds the limitation imposed by section #bf7;a7 for such taxable year reduced by the sum of the credits allowable under this subpart 7other than this section71 such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection 7a7 for such succeeding taxable year4 7e7 ,credit phase-,out 7#a7 ,in general ,if the ,secretary determines that the annual greenhouse gas emissions from electrical production in the ,united ,states are equal to or less than the percentage specified in section #dh;,e7g71 the amount of the credit allowable under subsection 7a7 for any qualified property or energy storage property placed in service during a calendar year described in paragraph 7#b7 shall be equal to the product of-- 7,a7 the amount of the credit determined under subsection 7a7 without regard to this subsection1 multiplied by 7,b7 the phase-out percentage under paragraph 7#b74 7#b7 ,phase-out percentage ,the phase-out percentage under this paragraph is equal to-- 7,a7 for property placed in service during the first calendar year following the calendar year in which the determination described in paragraph 7#a7 is made1 #ge percent1 7,b7 for property placed in service during the second calendar year following such determination year1 #ej percent1 7,c7 for property placed in service during the third calendar year following such determination year1 #be percent1 and 7,d7 for property placed in service during any calendar year subsequent to the year described in subparagraph 7,c71 #j percent4 7f7 ,special rules ,for purposes of this section3 7#a7 ,labor costs ,expenditures for labor costs properly allocable to the onsite preparation1 assembly1 or original installation of the qualified property or energy storage property and for piping or wiring to interconnect such property to the dwelling unit shall be taken into account for purposes of this section4 7#b7 ,tenant-stockholder in cooperative housing corporation ,in the case of an individual who is a tenant-stockholder 7as defined in section #baf7 in a cooperative housing corporation 7as defined in such section71 such individual shall be treated as having made his tenant-stockholder's proportionate share 7as defined in section #baf7;b77#c77 of any expenditures of such corporation4 7#c7 ,condominiums 7,a7 ,in general ,in the case of an individual who is a member of a condominium management association with respect to a condominium which the individual owns1 such individual shall be treated as having made the individual's proportionate share of any expenditures of such association4 7,b7 ,condominium management association ,for purposes of this paragraph1 the term condominium management association means an organization which meets the requirements of paragraph 7#a7 of section #ebh7;c7 7other than subparagraph 7,e7 thereof7 with respect to a condominium project substantially all of the units of which are used as residences4 7#d7 ,allocation in certain cases ,if less than #hj percent of the use of a property is for nonbusiness purposes1 only that portion of the expenditures for such property which is properly allocable to use for nonbusiness purposes shall be taken into account4 7g7 ,basis adjustment ,for purposes of this subtitle1 if a credit is allowed under this section for any expenditures with respect to any property1 the increase in the basis of such property which would 7but for this subsection7 result from such expenditures shall be reduced by the amount of the credit so allowed4 7h7 ,final guidance ,not later than ,january #a1 #bjah1 the ,secretary1 in consultation with the ,administrator of the ,environmental ,protection ,agency1 shall issue final guidance regarding implementation of this section1 including calculation of greenhouse gas emission rates for qualified property and determination of residential clean energy property credits under this section4 4 7#b7 ,conforming amendments 7,a7 ,paragraph 7#a7 of section #de7;d7 is amended by striking ,such term and all that follows through the period and inserting the following3 ,such term shall not include any facility with respect to which any expenditures for qualified property 7as defined in subsection 7b7 of section #be;,d7 which uses wind to produce electricity is taken into account in determining the credit under such section44 7,b7 ,paragraph 7#cd7 of section #ajaf7;a7 is amended by striking section #be;,d7f7 and inserting section #be;,d7h74 7,c7 ,the item relating to section #be;,d in the table of contents for subpart ,a of part ,,iv of subchapter ,a of chapter #a is amended to read as follows3 ,sec4 #be;,d4 ,clean residential energy credit4 4 7#c7 ,effective date ,the amendments made by this section shall apply to property placed in service after ,december #ca1 #bjah4 #ajc4 ,extensions and modifications of various energy provisions 7a7 ,residential energy efficient property 7#a7 ,in general ,subsection 7h7 of section #be;,d is amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjah4 7#b7 ,elimination of phaseout ,section #be;,d1 as amended by paragraph 7#a71 is amended-- 7,a7 in paragraphs 7#a7 and 7#b7 of subsection 7a71 by striking the applicable percentage each place it appears and inserting #cj percent1 7,b7 in subsection 7h71 by striking 7,december #ca1 #bjba1 in the case of any qualified solar electric property expenditures and qualified solar water heating property expenditures71 7,c7 by striking subsection 7g71 and 7,d7 by redesignating subsection 7h7 as subsection 7g74 7#c7 ,effective date ,the amendments made by this subsection shall apply to property placed in service after ,december #ca1 #bjaf4 7b7 ,electricity produced from certain renewable resources 7#a7 ,in general ,the following provisions of section #de7;d7 are each amended by striking ,january #a1 #bjag each place it appears and inserting ,january #a1 #bjai3 7,a7 ,paragraph 7#b77;,a74 7,b7 ,paragraph 7#c77;,a74 7,c7 ,paragraph 7#d77;,b74 7,d7 ,paragraph 7#f74 7,e7 ,paragraph 7#g74 7,f7 ,paragraph 7#i74 7,g7 ,paragraph 7#aa77;,b74 7#b7 ,termination of half-credit rate ,subparagraph 7,a7 of section #de7;b77#d7 is amended by inserting and before #bjag after after #bjjc4 7#c7 ,effective date ,the amendments made by this subsection shall take effect on ,january #a1 #bjag4 7c7 ,credit for production from advanced nuclear power facilities ,section #de;,j7d77#a77;,b7 is amended by striking #bjba and inserting #bjai4 7d7 ,repeal of energy efficient appliance credit 7#a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of subtitle ,a is amended by striking section #de,m4 7#b7 ,conforming amendments 7,a7 ,section #ch7;b7 is amended by striking paragraph 7#bd74 7,b7 ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of subtitle ,a is amended by striking the item relating to section #de,m4 7#c7 ,effective date ,the amendments made by this subsection shall take effect on the date of the enactment of this ,act4 7e7 ,credit for carbon dioxide sequestration ,section #de,q7c7 is amended-- 7#a7 in paragraph 7#b71 by striking and at the end1 7#b7 in paragraph 7#c71 by striking the period at the end and inserting 1 and1 and 7#c7 by adding at the end the following new paragraph3 7#d7 which is placed in service before ,january #a1 #bjai4 4 7f7 ,elimination of phaseout of credits for wind facilities and solar energy property 7#a7 ,wind facilities 7,a7 ,in general ,paragraph 7#a7 of section #de7;d7 is amended by striking ,january #a1 #bjbj and inserting ,january #a1 #bjai4 7,b7 ,phaseout ,subsection 7b7 of section #de is amended by striking paragraph 7#e74 7,c7 ,qualified investment credit facility 7i7 ,in general ,section #dh7;a77#e77;,c77ii7 is amended by striking ,january #a1 #bjag and all that follows through section #de7;d77 and inserting ,january #a1 #bjai4 7ii7 ,phaseout ,paragraph 7#e7 of section #dh7;a7 is amended by striking subparagraph 7,e74 7,d7 ,effective date ,the amendments made by this paragraph shall take effect on ,january #a1 #bjag4 7#b7 ,solar energy property 7,a7 ,in general ,subclause 7,,ii7 of section #dh7;a77#b77;,a77i7 is amended by striking property the construction of which begins before ,january #a1 #bjbb and inserting periods ending before ,january #a1 #bjai4 7,b7 ,phaseout ,subsection 7a7 of section #dh is amended by striking paragraph 7#f74 7,c7 ,conforming amendment ,subparagraph 7,a7 of section #dh7;a77#b7 is amended by striking ,except as provided in paragraph 7#f71 the energy percentage and inserting ,the energy percentage4 7,d7 ,effective date ,the amendments made by this paragraph shall take effect on ,january #a1 #bjag4 7g7 ,energy credit 7#a7 ,solar energy property ,section #dh7;a77#c77;,a7 is amended-- 7,a7 in clause 7i71 by inserting but only with respect to periods ending before ,january #a1 #bjai after swimming pool11 and 7,b7 in clause 7ii71 by striking ,january #a1 #bjag and inserting ,january #a1 #bjai4 7#b7 ,geothermal energy property ,section #dh7;a77#c77;,a77iii7 is amended by inserting with respect to periods ending before ,january #a1 #bjai1 and after but only4 7#c7 ,thermal energy property ,section #dh7;a77#c77;,a77vii7 is amended by striking ,january #a1 #bjag and inserting ,january #a1 #bjai4 7#d7 ,qualified fuel cell property ,section #dh7;c77#a77;,d7 is amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjah4 7#e7 ,qualified microturbine property ,section #dh7;c77#b77;,d7 is amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjah4 7#f7 ,combined heat and power system property ,section #dh7;c77#c77;,a77iv7 is amended by striking ,january #a1 #bjag and inserting ,january #a1 #bjai4 7#g7 ,qualified small wind energy property ,section #dh7;c77#d77;,c7 is amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjah4 7h7 ,qualifying advanced energy project credit 7#a7 ,in general ,section #dh;,c is amended-- 7,a7 by redesignating subsection 7e7 as subsection 7f71 and 7,b7 by inserting after subsection 7d7 the following new subsection3 7e7 ,additional qualifying advanced energy program 7#a7 ,establishment 7,a7 ,in general ,not later than #ahj days after the date of enactment of this subsection1 the ,secretary1 in consultation with the ,secretary of ,energy1 shall establish an additional qualifying advanced energy project program to consider and award certifications for qualified investments eligible for credits under this section to qualifying advanced energy project sponsors4 7,b7 ,limitation ,the total amount of credits that may be allocated under the program described in subparagraph 7,a7 shall not exceed #e1jjj1jjj1jjj4 7#b7 ,certification 7,a7 ,application period ,each applicant for certification under this paragraph shall submit an application containing such information as the ,secretary may require during the #b-year period beginning on the date the ,secretary establishes the program under paragraph 7#a74 7,b7 ,time to meet criteria for certification ,each applicant for certification shall have #a year from the date of acceptance by the ,secretary of the application during which to provide to the ,secretary evidence that the requirements of the certification have been met4 7,c7 ,period of issuance ,an applicant which receives a certification shall have #c years from the date of issuance of the certification in order to place the project in service and if such project is not placed in service by that time period1 then the certification shall no longer be valid4 7#c7 ,selection criteria ,in determining which qualifying advanced energy projects to certify under this section1 the ,secretary shall consider the same criteria described in subsection 7d77#c74 7#d7 ,review and redistribution 7,a7 ,review ,not later than #d years after the date of enactment of this subsection1 the ,secretary shall review the credits allocated pursuant to this subsection as of such date4 7,b7 ,redistribution ,the ,secretary may reallocate credits awarded under this section if the ,secretary determines that-- 7i7 there is an insufficient quantity of qualifying applications for certification pending at the time of the review1 or 7ii7 any certification made pursuant to paragraph 7#b7 has been revoked pursuant to paragraph 7#b77;,b7 because the project subject to the certification has been delayed as a result of third-party opposition or litigation to the proposed project4 7,c7 ,reallocation ,if the ,secretary determines that credits under this section are available for reallocation pursuant to the requirements set forth in paragraph 7#b71 the ,secretary is authorized to conduct an additional program for applications for certification4 7#e7 ,disclosure of allocations ,the ,secretary shall1 upon making a certification under this subsection1 publicly disclose the identity of the applicant and the amount of the credit with respect to such applicant4 4 7#b7 ,effective date ,the amendments made by this subsection shall apply to periods after the date of the enactment of this ,act1 under rules similar to the rules of section #dh7m7 of the ,internal ,revenue ,code of #aihf 7as in effect on the day before the date of the enactment of the ,revenue ,reconciliation ,act of #aiij74 ,,ii ,clean fuel tax credits #bja4 ,clean fuel production credit 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a1 as amended by section #aja1 is amended by adding at the end the following new section3 #de,t4 ,clean fuel production credit 7a7 ,amount of credit 7#a7 ,in general ,for purposes of section #ch1 the clean fuel production credit for any taxable year is an amount equal to the product of-- 7,a7 #a4jj per gallon with respect to any transportation fuel which is-- 7i7 produced by the taxpayer at a qualified facility1 and 7ii7 sold or used by the taxpayer in a manner described in paragraph 7#b71 and 7,b7 the emissions factor for such fuel 7as determined under subsection 7b77#b774 7#b7 ,sale or use ,for purposes of paragraph 7#a77;,a77ii71 the transportation fuel is sold or used in a manner described in this paragraph if such fuel is-- 7,a7 sold by the taxpayer to an unrelated person-- 7i7 for use by such person in the production of a fuel mixture that will be used as a transportation fuel1 7ii7 for use by such person as a transportation fuel in a trade or business1 or 7iii7 who sells such fuel at retail to another person and places such fuel in the fuel tank of such other person1 or 7,b7 used or sold by the taxpayer for any purpose described in subparagraph 7,a74 7#c7 ,rounding ,if any amount determined under paragraph 7#a7 is not a multiple of #j4a cent1 such amount shall be rounded to the nearest multiple of #j4a cent4 7b7 ,emissions factors 7#a7 ,emissions factor 7,a7 ,in general ,the emissions factor of a transportation fuel shall be an amount equal to the quotient of-- 7i7 an amount 7not less than zero7 equal to-- 7,i7 #ge1 minus 7,,ii7 the emissions rate for such fuel1 divided by 7ii7 #ge4 7,b7 ,establishment of safe harbor emissions rate ,the ,secretary1 in consultation with the ,administrator of the ,environmental ,protection ,agency1 shall establish the safe harbor emissions rate for similar types and categories of transportation fuels based on the amount of lifecycle greenhouse gas emissions 7as described in section #baa7o77#a77;,h7 of the ,clean ,air ,act 7#db ,u4,s4,c4 #gede7o77#a77;,h771 as in effect on the date of the enactment of this section7 for such fuels1 expressed as kilograms of ,,co#b;e per mm,b,t,u1 which a taxpayer may elect to use for purposes of this section4 7,c7 ,rounding of safe harbor emissions rate ,the ,secretary may round the safe harbor emissions rates under subparagraph 7,b7 to the nearest multiple of #g4ej kilograms of ,,co#b;e per mm,b,t,u1 except that1 in the case of an emissions rate that is less than #c4ge kilograms of ,,co#b;e per mm,b,t,u1 the ,secretary may round such rate to zero4 7,d7 ,provisional safe harbor emissions rate 7i7 ,in general ,in the case of any transportation fuel for which a safe harbor emissions rate has not been established by the ,secretary1 a taxpayer producing such fuel may file a petition with the ,secretary for determination of the safe harbor emissions rate with respect to such fuel4 7ii7 ,establishment of provisional and final safe harbor emissions rate ,in the case of a transportation fuel for which a petition described in clause 7i7 has been filed1 the ,secretary1 in consultation with the ,administrator of the ,environmental ,protection ,agency1 shall-- 7,i7 not later than #ab months after the date on which the petition was filed1 provide a provisional safe harbor emissions rate for such fuel which a taxpayer may use for purposes of this section1 and 7,,ii7 not later than #bd months after the date on which the petition was filed1 establish the safe harbor emissions rate for such fuel4 7,e7 ,rounding ,if any amount determined under subparagraph 7,a7 is not a multiple of #j4a1 such amount shall be rounded to the nearest multiple of #j4a4 7#b7 ,publishing safe harbor emissions rate ,the ,secretary1 in consultation with the ,administrator of the ,environmental ,protection ,agency1 shall publish a table that sets forth the safe harbor emissions rate 7as established pursuant to paragraph 7#a77 for similar types and categories of transportation fuels4 7c7 ,inflation adjustment 7#a7 ,in general ,in the case of calendar years beginning after #bjai1 the #a4jj amount in subsection 7a77#a77;,a7 shall be adjusted by multiplying such amount by the inflation adjustment factor for the calendar year in which the sale or use of the transportation fuel occurs4 ,if any amount as increased under the preceding sentence is not a multiple of #a cent1 such amount shall be rounded to the nearest multiple of #a cent4 7#b7 ,inflation adjustment factor ,for purposes of paragraph 7#a71 the inflation adjustment factor shall be the inflation adjustment factor determined and published by the ,secretary pursuant to section #de,s7c71 determined by substituting calendar year #bjah for calendar year #aiib in paragraph 7#c7 thereof4 7d7 ,credit phase-,out 7#a7 ,in general ,if the ,secretary1 in consultation with the ,secretary of ,energy and the ,administrator of the ,environmental ,protection ,agency1 determines that the greenhouse gas emissions from transportation fuel produced and sold at retail annually in the ,united ,states are equal to or less than #fe percent of the greenhouse gas emissions from transportation fuel produced and sold at retail in the ,united ,states during calendar year #bjag1 the amount of the clean fuel production credit under this section for any qualified facility placed in service during a calendar year described in paragraph 7#b7 shall be equal to the product of-- 7,a7 the amount of the credit determined under subsection 7a7 without regard to this subsection1 multiplied by 7,b7 the phase-out percentage under paragraph 7#b74 7#b7 ,phase-out percentage ,the phase-out percentage under this paragraph is equal to-- 7,a7 for a facility placed in service during the first calendar year following the calendar year in which the determination described in paragraph 7#a7 is made1 #ge percent1 7,b7 for a facility placed in service during the second calendar year following such determination year1 #ej percent1 7,c7 for a facility placed in service during the third calendar year following such determination year1 #be percent1 and 7,d7 for a facility placed in service during any calendar year subsequent to the year described in subparagraph 7,c71 #j percent4 7e7 ,definitions ,in this section3 7#a7 mm,b,t,u ,the term mm,b,t,u means #a1jjj1jjj ,british thermal units4 7#b7 ,,co#b;e ,the term ,,co#b;e means1 with respect to any greenhouse gas1 the equivalent carbon dioxide4 7#c7 ,greenhouse gas ,the term greenhouse gas has the same meaning given that term under section #baa7o77#a77;,g7 of the ,clean ,air ,act 7#db ,u4,s4,c4 #gede7o77#a77;,g771 as in effect on the date of the enactment of this section4 7#d7 ,qualified facility 7,a7 ,in general ,subject to subparagraphs 7,b7 and 7,c71 the term qualified facility means a facility used for the production of transportation fuels4 7,b7 #aj-year production credit ,for purposes of this section1 a facility shall only qualify as a qualified facility-- 7i7 in the case of a facility that is originally placed in service after ,december #ca1 #bjah1 for the #aj-year period beginning on the date such facility is placed in service1 or 7ii7 in the case of a facility that is originally placed in service before ,january #a1 #bjai1 for the #aj-year period beginning on ,january #a1 #bjai4 7#e7 ,transportation fuel ,the term transportation fuel means a fuel which is suitable for use as a fuel in a highway vehicle or aircraft4 7f7 ,final guidance ,not later than ,january #a1 #bjah1 the ,secretary1 in consultation with the ,administrator of the ,environmental ,protection ,agency1 shall issue final guidance regarding implementation of this section1 including calculation of emissions factors for transportation fuel1 the table described in subsection 7b77#b71 and the determination of clean fuel production credits under this section4 7g7 ,special rules 7#a7 ,only registered production in the ,united ,states taken into account 7,a7 ,in general ,no clean fuel production credit shall be determined under subsection 7a7 with respect to any transportation fuel unless-- 7i7 the taxpayer is registered as a producer of clean fuel under section #daja at the time of production1 and 7ii7 such fuel is produced in the ,united ,states4 7,b7 ,united ,states ,for purposes of this paragraph1 the term ,united ,states includes any possession of the ,united ,states4 7#b7 ,production attributable to the taxpayer ,in the case of a facility in which more than #a person has an ownership interest1 except to the extent provided in regulations prescribed by the ,secretary1 production from the facility shall be allocated among such persons in proportion to their respective ownership interests in the gross sales from such facility4 7#c7 ,related persons ,persons shall be treated as related to each other if such persons would be treated as a single employer under the regulations prescribed under section #eb7;b74 ,in the case of a corporation which is a member of an affiliated group of corporations filing a consolidated return1 such corporation shall be treated as selling fuel to an unrelated person if such fuel is sold to such a person by another member of such group4 7#d7 ,pass-thru in the case of estates and trusts ,under regulations prescribed by the ,secretary1 rules similar to the rules of subsection 7d7 of section #eb shall apply4 7#e7 ,allocation of credit to patrons of agricultural cooperative 7,a7 ,election to allocate 7i7 ,in general ,in the case of an eligible cooperative organization1 any portion of the credit determined under subsection 7a7 for the taxable year may1 at the election of the organization1 be apportioned among patrons of the organization on the basis of the amount of business done by the patrons during the taxable year4 7ii7 ,form and effect of election ,an election under clause 7i7 for any taxable year shall be made on a timely filed return for such year4 ,such election1 once made1 shall be irrevocable for such taxable year4 ,such election shall not take effect unless the organization designates the apportionment as such in a written notice mailed to its patrons during the payment period described in section #achb7;d74 7,b7 ,treatment of organizations and patrons ,the amount of the credit apportioned to any patrons under subparagraph 7,a7-- 7i7 shall not be included in the amount determined under subsection 7a7 with respect to the organization for the taxable year1 and 7ii7 shall be included in the amount determined under subsection 7a7 for the first taxable year of each patron ending on or after the last day of the payment period 7as defined in section #achb7;d77 for the taxable year of the organization or1 if earlier1 for the taxable year of each patron ending on or after the date on which the patron receives notice from the cooperative of the apportionment4 7,c7 ,special rules for decrease in credits for taxable year ,if the amount of the credit of a cooperative organization determined under subsection 7a7 for a taxable year is less than the amount of such credit shown on the return of the cooperative organization for such year1 an amount equal to the excess of-- 7i7 such reduction1 over 7ii7 the amount not apportioned to such patrons under subparagraph 7,a7 for the taxable year1 shall be treated as an increase in tax imposed by this chapter on the organization4 ,such increase shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit under this chapter4 7,d7 ,eligible cooperative defined ,for purposes of this section the term eligible cooperative means a cooperative organization described in section #acha7;a7 which is owned more than #ej percent by agricultural producers or by entities owned by agricultural producers4 ,for this purpose an entity owned by an agricultural producer is one that is more than #ej percent owned by agricultural producers4 4 7b7 ,conforming amendments 7#a7 ,section #ch7;b71 as amended by section #aja1 is amended-- 7,a7 in paragraph 7#cf71 by striking plus at the end1 7,b7 in paragraph 7#cg71 by striking the period at the end and inserting 1 plus1 and 7,c7 by adding at the end the following new paragraph3 7#ch7 the clean fuel production credit determined under section #de,t7a74 4 7#b7 ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a1 as amended by section #aja1 is amended by adding at the end the following new item3 ,sec4 #de,t4 ,clean fuel production credit4 4 7#c7 ,section #daja7;a77#a7 is amended by inserting every person producing a fuel eligible for the clean fuel production credit 7pursuant to section #de,t71 after section #fdbf7;b77#d77;,a7714 7c7 ,effective date ,the amendments made by this section shall apply to transportation fuel produced after ,december #ca1 #bjah4 #bjb4 ,temporary extension of existing fuel and transportation incentives 7a7 ,alternative motor vehicle credit for fuel cell motor vehicles 7#a7 ,in general ,paragraph 7#a7 of section #cj;,b7k7 is amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjbf4 7#b7 ,effective date ,the amendments made by this subsection shall apply to property purchased after ,december #ca1 #bjaf4 7b7 ,alternative fuel vehicle refueling property credit 7#a7 ,in general ,paragraph 7#a7 of section #cj;,c7g7 is amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjah4 7#b7 ,effective date ,the amendments made by this subsection shall apply to property placed in service after ,december #ca1 #bjaf4 7c7 ,new qualified plug-,in electric drive motor vehicles 7#a7 #b- and #c-wheeled plug-in electric vehicles 7,a7 ,in general ,clause 7ii7 of section #cj;,d7g77#c77;,e7 is amended to read as follows3 7ii7 after ,december #ca1 #bjaf1 and before ,january #a1 #bjai4 4 7,b7 ,effective date ,the amendments made by this paragraph shall apply to vehicles acquired after ,december #ca1 #bjaf4 7#b7 ,elimination on limitation on number of vehicles eligible for credit 7,a7 ,in general ,section #cj;,d1 as amended by paragraph 7#a71 is amended-- 7i7 by striking subsection 7e71 and 7ii7 by redesignating subsections 7f7 and 7g7 as subsections 7e7 and 7f71 respectively4 7,b7 ,conforming amendment ,paragraph 7#cg7 of section #ajaf7;a7 is amended by striking section #cj;,d7f77#a7 and inserting section #cj;,d7e77#a74 7,c7 ,effective date ,the amendments made by this paragraph shall apply to vehicles sold after the date of the enactment of this ,act4 7d7 ,second generation biofuel producer credit 7#a7 ,in general ,section #dj7;b77#f7 is amended-- 7,a7 in subparagraph 7,e77i7-- 7i7 in subclause 7,i71 by striking and at the end1 7ii7 in subclause 7,,ii71 by striking the period at the end and inserting 1 and1 and 7iii7 by inserting at the end the following new subclause3 7,,iii7 qualifies as a transportation fuel 7as defined in section #de,t7e77#e774 1 and 7,b7 in subparagraph 7,j77i71 by striking #bjag and inserting #bjai4 7#b7 ,effective date ,the amendments made by this subsection shall apply to qualified second generation biofuel production after ,december #ca1 #bjaf4 7e7 ,biodiesel and renewable diesel used as fuel 7#a7 ,in general ,section #dj;,a is amended-- 7,a7 in subsection 7f77#c77;,b71 by striking or ,d#cif1 and 7,b7 in subsection 7g71 by striking #bjaf and inserting #bjah4 7#b7 ,effective date ,the amendments made by this subsection shall apply to fuel sold or used after ,december #ca1 #bjaf4 7f7 ,credit for biodiesel and alternative fuel mixtures 7#a7 ,in general ,section #fdbf is amended-- 7,a7 in subsection 7c77#f71 by striking #bjaf and inserting #bjah1 7,b7 in subsection 7d7-- 7i7 in paragraph 7#a71 by striking motor vehicle and inserting highway vehicle1 7ii7 in paragraph 7#b77;,d71 by striking liquefied1 and 7iii7 in paragraph 7#e71 by striking #bjaf and inserting #bjah1 and 7,c7 in subsection 7e71 by amending paragraph 7#c7 to read as follows3 7#c7 ,termination ,this subsection shall not apply to any sale or use for any period after-- 7,a7 in the case of any alternative fuel mixture sold or used by the taxpayer for the purposes described in subsection 7d77#a71 ,december #ca1 #bjah1 7,b7 in the case of any sale or use involving hydrogen that is not for the purposes described in subsection 7d77#a71 ,december #ca1 #bjah1 and 7,c7 in the case of any sale or use not described in subparagraph 7,a7 or 7,b71 ,december #ca1 #bjaf4 4 7#b7 ,effective date ,the amendments made by this subsection shall apply to fuel sold or used after ,december #ca1 #bjaf4 7#c7 ,special rule for certain periods ,notwithstanding any other provision of law1 in the case of-- 7,a7 any biodiesel mixture credit properly determined under section #fdbf7;c7 of the ,internal ,revenue ,code of #aihf for the periods after ,december #ca1 #bjaf1 and before the date of the enactment of this ,act1 and 7,b7 any alternative fuel credit properly determined under section #fdbf7;d7 of such ,code for such periods1 such credit shall be allowed1 and any refund or payment attributable to such credit 7including any payment under section #fdbg7;e7 of such ,code7 shall be made1 only in such manner as the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall provide4 ,such ,secretary shall issue guidance within #cj days after the date of the enactment of this ,act providing for a one-time submission of claims covering periods described in the preceding sentence4 ,such guidance shall provide for a #ahj-;day period for the submission of such claims 7in such manner as prescribed by such ,secretary7 to begin not later than #cj days after such guidance is issued4 ,such claims shall be paid by such ,secretary not later than #fj days after receipt4 ,if such ,secretary has not paid pursuant to a claim filed under this subsection within #fj days after the date of the filing of such claim1 the claim shall be paid with interest from such date determined by using the overpayment rate and method under section #ffba of such ,code4 7g7 ,biodiesel1 biodiesel mixtures1 and alternative fuels 7#a7 ,in general ,section #fdbg7;e77#f7 is amended-- 7,a7 in subparagraph 7,b71 by striking #bjaf and inserting #bjah1 and 7,b7 in subparagraph 7,c71 by striking #bjaf and inserting #bjah4 7#b7 ,effective date ,the amendments made by this subsection shall apply to fuel sold or used after ,december #ca1 #bjaf4 ,,iii ,energy ,efficiency ,incentives #cja4 ,credit for new energy efficient residential buildings 7a7 ,in general ,section #de,l is amended to read as follows3 #de,l4 ,new energy efficient home credit 7a7 ,allowance of credit ,for purposes of section #ch1 in the case of an eligible contractor1 the new energy efficient home credit for the taxable year is the applicable amount for each qualified residence which is-- 7#a7 constructed by the eligible contractor1 and 7#b7 acquired by a person from such eligible contractor for use as a residence during the taxable year4 7b7 ,applicable amount 7#a7 ,in general ,for purposes of subsection 7a71 the applicable amount shall be an amount equal to #a1ejj increased 7but not above #c1jjj7 by #ajj for every #e percentage points by which the efficiency ratio for the qualified residence is certified to be greater than #be percent4 7#b7 ,efficiency ratio ,for purposes of this section1 the efficiency ratio of a qualified residence shall be equal to the quotient1 expressed as a percentage1 obtained by dividing-- 7,a7 an amount equal to the difference between-- 7i7 the annual level of energy consumption of the qualified residence1 and 7ii7 the annual level of energy consumption of the baseline residence1 by 7,b7 the annual level of energy consumption of the baseline residence4 7#c7 ,baseline residence ,for purposes of this section1 the baseline residence shall be a residence which is-- 7,a7 comparable to the qualified residence1 and 7,b7 constructed in accordance with the standards of the #bjae ,international ,energy ,conservation ,code1 as such ,code 7including supplements7 is in effect on the date of the enactment of the ,clean ,energy for ,america ,act4 7c7 ,definitions ,for purposes of this section3 7#a7 ,eligible contractor ,the term eligible contractor means-- 7,a7 the person who constructed the qualified residence1 or 7,b7 in the case of a qualified residence which is a manufactured home1 the manufactured home producer of such residence4 7#b7 ,qualified residence ,the term qualified residence means a dwelling unit-- 7,a7 located in the ,united ,states1 7,b7 the construction of which is substantially completed after the date of the enactment of this section1 and 7,c7 which is certified to have an annual level of energy consumption that is less than the baseline residence and an efficiency ratio of not less than #be percent4 7#c7 ,construction ,the term construction does not include substantial reconstruction or rehabilitation4 7d7 ,certification 7#a7 ,in general 7,a7 ,accredited third party ,a certification described in this section shall be made by a third party that is accredited by a certification program approved by the ,secretary1 in consultation with the ,secretary of ,energy4 7,b7 ,guidance ,a certification described in this section shall be made in accordance with guidance prescribed by the ,secretary1 in consultation with the ,secretary of ,energy4 ,such guidance shall-- 7i7 specify procedures and methods for calculating annual energy consumption levels1 and 7ii7 include requirements to ensure the safe operation of energy efficiency improvements and that all improvements are installed according to the applicable standards of such certification program4 7#b7 ,computer software 7,a7 ,in general ,any calculation under paragraph 7#a77;,b77i7 shall be prepared by qualified computer software4 7,b7 ,qualified computer software ,for purposes of this paragraph1 the term qualified computer software means software-- 7i7 for which the software designer has certified that the software meets all procedures and detailed methods for calculating energy consumption levels as required by the ,secretary1 and 7ii7 which provides such forms as required to be filed by the ,secretary in connection with energy consumption levels and the credit allowed under this section4 7e7 ,basis adjustment ,for purposes of this subtitle1 if a credit is allowed under this section in connection with any expenditure for any property 7other than a qualified low-income building1 as described in section #db7;c77#b771 the increase in the basis of such property which would 7but for this subsection7 result from such expenditure shall be reduced by the amount of the credit so determined4 7f7 ,coordination with investment credits ,for purposes of this section1 expenditures taken into account under section #be;,d or #dg shall not be taken into account under this section4 4 7b7 ,effective date ,the amendment made by this section shall apply to any qualified residence acquired after ,december #ca1 #bjah4 #cjb4 ,heating and air conditioning replacement credit 7a7 ,in general ,subpart ,a of part ,,iv of subchapter ,a of chapter #a is amended by adding at the end the following new section3 #be;,e4 ,heating and air conditioning replacement credit 7a7 ,in general ,in the case of an individual1 there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the lesser of-- 7#a7 the sum of the applicable qualified property amounts for any qualified property placed in service by the individual during such taxable year1 or 7#b7 #a1ejj4 7b7 ,applicable qualified property amount ,for any qualified property1 the applicable qualified property amount shall be equal to the lesser of-- 7#a7 #ej percent of the amount paid or incurred by the individual for such qualified property1 or 7#b7 #ejj4 7c7 ,qualified property ,the term qualified property means a furnace1 boiler1 condensing water heater1 central air conditioning unit1 heat pump1 or biomass property which-- 7#a7 meets the requirements of the ,energy ,star program which are in effect at the time that the property was placed in service1 7#b7 is installed according to applicable ,,acca-,,qi standards which are in effect at the time that the property was placed in service1 7#c7 is for use in a dwelling unit which is located in the ,united ,states and used as a residence by the individual1 and 7#d7 is reasonably expected to remain in service in such dwelling unit for not less than #e years4 7d7 ,biomass property 7#a7 ,in general ,for purposes of this section1 the term biomass property means any property which-- 7,a7 uses the burning of biomass fuel to heat a dwelling unit or to heat water for use in a dwelling unit1 and 7,b7 using the higher heating value1 has a thermal efficiency of not less than #ge percent4 7#b7 ,biomass fuel ,for purposes of paragraph 7#a71 the term biomass fuel means any plant-derived fuel which is available on a renewable or recurring basis1 including any such fuel which has been subject to a densification process 7such as wood pellets74 7e7 ,denial of double benefit ,no credit shall be allowed under subsection 7a7 for any amounts paid or incurred for which a deduction or credit is allowed under any other provision of this chapter4 4 7b7 ,clerical amendment ,the table of sections for subpart ,a of part ,,iv of subchapter ,a chapter #a is amended by inserting after the item relating to section #be;,d the following new item3 #be;,e4 ,heating and air conditioning replacement credit4 4 7c7 ,effective date ,the amendments made by this section shall apply to qualified property placed in service after ,december #ca1 #bjah4 #cjc4 ,energy efficiency credit for existing residential buildings 7a7 ,in general ,section #be;,c is amended to read as follows3 #be;,c4 ,credit for energy efficiency improvements to residential buildings 7a7 ,allowance of credit ,in the case of an individual1 there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the lesser of-- 7#a7 the applicable amount for the qualified residence based on energy efficiency improvements made by the taxpayer and placed in service during such taxable year1 or 7#b7 #cj percent of the amount paid or incurred by the taxpayer for energy efficiency improvements made to the qualified residence that were placed in service during such taxable year4 7b7 ,applicable amount 7#a7 ,in general ,for purposes of subsection 7a77#a71 the applicable amount shall be an amount equal to #a1gej increased 7but not above #f1ejj7 by #cjj for every #e percentage points by which the efficiency ratio for the qualified residence is certified to be greater than #bj percent4 7#b7 ,efficiency ratio ,for purposes of this section1 the efficiency ratio of a qualified residence shall be equal to the quotient1 expressed as a percentage1 obtained by dividing-- 7,a7 an amount equal to the difference between-- 7i7 the projected annual level of energy consumption of the qualified residence after the energy efficiency improvements have been placed in service1 and 7ii7 the annual level of energy consumption of such qualified residence prior to the energy efficiency improvements being placed in service1 by 7,b7 the annual level of energy consumption described in subparagraph 7,a77ii74 7#c7 ,coordination with credit for residential energy efficient property ,for purposes of paragraph 7#b77;,a71 the determination of the difference in annual levels of energy consumption of the qualified residence shall not include any reduction in net energy consumption related to-- 7,a7 qualified property or energy storage property for which a credit was allowed under section #be;,d1 or 7,b7 qualified property for which a credit was allowed under section #be;,e4 7c7 ,definitions ,for purposes of this section3 7#a7 ,qualified residence ,the term qualified residence means a dwelling unit-- 7,a7 located in the ,united ,states1 7,b7 owned and used by the taxpayer as the taxpayer's principal residence 7within the meaning of section #aba71 and 7,c7 which is certified to have-- 7i7 a projected annual level of energy consumption after the energy efficiency improvements have been placed in service that is less than the annual level of energy consumption prior to the energy efficiency improvements being placed in service1 and 7ii7 an efficiency ratio of not less than #bj percent4 7#b7 ,energy efficiency improvements 7,a7 ,in general ,the term energy efficiency improvements means any property installed on or in a dwelling unit which has been certified to reduce the level of energy consumption for such unit1 provided that-- 7i7 the original use of such property commences with the taxpayer1 and 7ii7 such property reasonably can be expected to remain in use for at least #e years4 7,b7 ,amounts paid or incurred for energy efficiency improvements ,for purposes of subsection 7a77#b71 the amount paid or incurred by the taxpayer-- 7i7 shall include expenditures for design and for labor costs properly allocable to the onsite preparation1 assembly1 or original installation of the property1 and 7ii7 shall not include any expenditures related to expansion of the building floor area4 7d7 ,special rules ,for purposes of this section3 7#a7 ,tenant-stockholder in cooperative housing corporation ,in the case of an individual who is a tenant-stockholder 7as defined in section #baf7 in a cooperative housing corporation 7as defined in such section71 such individual shall be treated as having made his tenant-stockholder's proportionate share 7as defined in section #baf7;b77#c77 of any expenditures for energy efficiency improvements of such corporation4 7#b7 ,condominiums 7,a7 ,in general ,in the case of an individual who is a member of a condominium management association with respect to a condominium which the individual owns1 such individual shall be treated as having made the individual's proportionate share of any expenditures for energy efficiency improvements of such association4 7,b7 ,condominium management association ,for purposes of this paragraph1 the term condominium management association means an organization which meets the requirements of paragraph 7#a7 of section #ebh7;c7 7other than subparagraph 7,e7 thereof7 with respect to a condominium project substantially all of the units of which are used as residences4 7#c7 ,allocation in certain cases ,if less than #hj percent of the use of a property is for nonbusiness purposes1 only that portion of the expenditures for energy efficiency improvements for such property which is properly allocable to use for nonbusiness purposes shall be taken into account4 7e7 ,certification 7#a7 ,in general 7,a7 ,accredited third party ,a certification described in this section shall be made by a third party that is accredited by a certification program approved by the ,secretary1 in consultation with the ,secretary of ,energy4 7,b7 ,guidance ,a certification described in this section shall be made in accordance with guidance prescribed by the ,secretary1 in consultation with the ,secretary of ,energy4 ,such guidance shall-- 7i7 specify procedures and methods for calculating annual energy consumption levels1 and 7ii7 include requirements to ensure the safe operation of energy efficiency improvements and that all improvements are installed according to the applicable standards of such certification program4 7#b7 ,computer software 7,a7 ,in general ,any calculation under paragraph 7#a77;,b77i7 shall be prepared by qualified computer software4 7,b7 ,qualified computer software ,for purposes of this paragraph1 the term qualified computer software has the same meaning given such term under section #de,l7d77#b74 7f7 ,basis adjustment ,for purposes of this subtitle1 if a credit is allowed under this section for any expenditures with respect to any energy efficiency improvements1 the increase in the basis of such property which would 7but for this subsection7 result from such expenditures shall be reduced by the amount of the credit so allowed4 7g7 ,coordination with investment credits ,for purposes of this section1 expenditures taken into account under section #be;,d or #dg shall not be taken into account under this section4 4 7b7 ,conforming amendment ,the table of sections for subpart ,a of part ,,iv of subchapter ,a of chapter #a is amended by striking the item relating to section #be;,c and inserting after the item relating to section #be;,b the following item3 ,sec4 #be;,c4 ,credit for energy efficiency improvements to residential buildings4 4 7c7 ,effective date ,the amendments made by this section shall apply to any energy efficiency improvements placed in service after ,december #ca1 #bjah4 #cjd4 ,deduction for new energy efficient commercial buildings 7a7 ,in general ,section #agi;,d is amended to read as follows3 #agi;,d4 ,energy efficient commercial building deduction 7a7 ,in general ,there shall be allowed as a deduction an amount equal to the applicable amount for each qualified building placed in service by the taxpayer during the taxable year4 7b7 ,applicable amount 7#a7 ,in general ,for purposes of subsection 7a71 the applicable amount shall be an amount equal to the product of-- 7,a7 the applicable dollar value1 and 7,b7 the square footage of the qualified building4 7#b7 ,applicable dollar value ,for purposes of paragraph 7#a77;,a71 the applicable dollar value shall be an amount equal to #a4jj increased 7but not above #d4ge7 by #j4be for every #e percentage points by which the efficiency ratio for the qualified building is certified to be greater than #be percent4 7#c7 ,efficiency ratio 7,a7 ,in general ,for purposes of this section1 the efficiency ratio of a qualified building shall be equal to the quotient1 expressed as a percentage1 obtained by dividing-- 7i7 an amount equal to the difference between-- 7,i7 the annual level of energy consumption of the qualified building1 and 7,,ii7 the annual level of energy consumption of the baseline building1 by 7ii7 the annual level of energy consumption of the baseline building4 7,b7 ,exclusion of plug loads ,for purposes of determining the annual level of energy consumption of the qualified and baseline buildings under this paragraph1 any energy consumption attributable to plug loads shall be excluded4 7#d7 ,baseline building ,for purposes of this section1 the baseline building shall be a building which-- 7,a7 is comparable to the qualified building1 and 7,b7 meets the minimum requirements of ,standard #ij4a-bjaf of the ,american ,society of ,heating1 ,refrigerating1 and ,air ,conditioning ,engineers and the ,illuminating ,engineering ,society of ,north ,america 7as in effect on the date of the enactment of the ,clean ,energy for ,america ,act74 7c7 ,qualified building ,the term qualified building means a building-- 7#a7 located in the ,united ,states1 7#b7 which is owned by the taxpayer1 and 7#c7 which is certified to have an annual level of energy consumption that is less than the baseline building and an efficiency ratio of not less than #be percent4 7d7 ,allocation of deduction 7#a7 ,in general ,in the case of a qualified building owned by an eligible entity1 the ,secretary shall promulgate regulations to allow the allocation of the deduction to the person primarily responsible for designing the property in lieu of the owner of such property1 with such person to be treated as the taxpayer for purposes of this section4 7#b7 ,eligible entity ,for purposes of this subsection1 the term eligible entity means-- 7,a7 a ,federal1 ,state1 or local government or a political subdivision thereof1 7,b7 an ,indian tribe 7as defined in section #de;,a7c77#f771 or 7,c7 an organization described in section #eja7;c7 and exempt from tax under section #eja7;a74 7e7 ,basis adjustment ,for purposes of this subtitle1 if a deduction is allowed under this section with respect to any qualified building1 the basis of such property shall be reduced by the amount of the deduction so allowed4 7f7 ,certification 7#a7 ,in general 7,a7 ,accredited third party ,a certification described in this section shall be made by a third party that is accredited by a certification program approved by the ,secretary1 in consultation with the ,secretary of ,energy4 7,b7 ,guidance ,a certification described in this section shall be made in accordance with guidance prescribed by the ,secretary1 in consultation with the ,secretary of ,energy4 ,such guidance shall-- 7i7 specify procedures and methods for calculating annual energy consumption levels1 and 7ii7 include requirements to ensure the safe operation of energy efficiency improvements and that all improvements are installed according to the applicable standards of such certification program4 7#b7 ,computer software 7,a7 ,in general ,any calculation under paragraph 7#a77;,b77i7 shall be prepared by qualified computer software4 7,b7 ,qualified computer software ,for purposes of this paragraph1 the term qualified computer software means software-- 7i7 for which the software designer has certified that the software meets all procedures and detailed methods for calculating energy consumption levels as required by the ,secretary1 and 7ii7 which provides such forms as required to be filed by the ,secretary in connection with energy consumption levels and the deduction allowed under this section4 4 7b7 ,conforming amendment ,the table of sections for part ,,vi of subchapter ,b of chapter #a is amended by striking the item relating to section #agi;,d and inserting after the item relating to section #agi;,c the following item3 ,sec4 #agi;,d4 ,energy efficient commercial building deduction4 4 7c7 ,effective date ,the amendments made by this section shall apply to any qualified building placed in service after ,december #ca1 #bjah4 #cje4 ,energy efficiency deduction for existing commercial buildings 7a7 ,in general ,part ,,vi of subchapter ,b of chapter #a is amended by inserting after section #agi;,e the following new section3 #agi;,f4 ,deduction for energy efficiency improvements to commercial buildings 7a7 ,in general ,there shall be allowed as a deduction an amount equal to the lesser of-- 7#a7 the applicable amount for the qualified building based on energy efficiency improvements made by the taxpayer and placed in service during the taxable year1 or 7#b7 the amount paid or incurred by the taxpayer for energy efficiency improvements made to the qualified building which were placed in service during the taxable year4 7b7 ,applicable amount 7#a7 ,in general ,for purposes of subsection 7a71 the applicable amount shall be an amount equal to the product of-- 7,a7 the applicable dollar value1 and 7,b7 the square footage of the qualified building4 7#b7 ,applicable dollar value ,for purposes of paragraph 7#a71 the applicable dollar value shall be an amount equal to #a4be increased 7but not above #i4be7 by #j4ej for every #e percentage points by which the efficiency ratio for the qualified building is certified to be greater than #bj percent4 7#c7 ,efficiency ratio 7,a7 ,in general ,for purposes of this section1 the efficiency ratio of a qualified building shall be equal to the quotient1 expressed as a percentage1 obtained by dividing-- 7i7 an amount equal to the difference between-- 7,i7 the projected annual level of energy consumption of the qualified building after the energy efficiency improvements have been placed in service1 and 7,,ii7 the annual level of energy consumption of such qualified building prior to the energy efficiency improvements being placed in service1 by 7ii7 the annual level of energy consumption described in clause 7i77,,ii74 7,b7 ,exclusion of plug loads ,for purposes of determining the annual level of energy consumption of the qualified building under this paragraph1 any energy consumption attributable to plug loads shall be excluded4 7#d7 ,coordination with clean energy investment credit ,for purposes of paragraph 7#c77;,a77i71 the determination of the difference in annual levels of energy consumption of the qualified building shall not include any reduction in net energy consumption related to qualified property or energy storage property for which a credit was allowed under section #dh;,e4 7c7 ,definitions 7#a7 ,qualified building ,the term qualified building means a building-- 7,a7 located in the ,united ,states1 7,b7 which is owned by the taxpayer1 and 7,c7 which is certified to have-- 7i7 a projected annual level of energy consumption after the energy efficiency improvements have been placed in service that is less than the annual level of energy consumption prior to the energy efficiency improvements being placed in service1 and 7ii7 an efficiency ratio of not less than #bj percent4 7#b7 ,energy efficiency improvements 7,a7 ,in general ,the term energy efficiency improvements means any property installed on or in a qualified building which has been certified to reduce the level of energy consumption for such building1 provided that depreciation 7or amortization in lieu of depreciation7 is allowable with respect to such property4 7,b7 ,amounts paid or incurred for energy efficiency improvements ,for purposes of subsection 7a77#b71 the amount paid or incurred by the taxpayer-- 7i7 shall include expenditures for design and for labor costs properly allocable to the onsite preparation1 assembly1 or original installation of the property1 and 7ii7 shall not include any expenditures related to expansion of the building floor area4 7d7 ,certification 7#a7 ,in general 7,a7 ,accredited third party ,a certification described in this section shall be made by a third party that is accredited by a certification program approved by the ,secretary1 in consultation with the ,secretary of ,energy4 7,b7 ,guidance ,a certification described in this section shall be made in accordance with guidance prescribed by the ,secretary1 in consultation with the ,secretary of ,energy4 ,such guidance shall-- 7i7 specify procedures and methods for calculating annual energy consumption levels1 and 7ii7 include requirements to ensure the safe operation of energy efficiency improvements and that all improvements are installed according to the applicable standards of such certification program4 7#b7 ,computer software 7,a7 ,in general ,any calculation under paragraph 7#a77;,b77i7 shall be prepared by qualified computer software4 7,b7 ,qualified computer software ,for purposes of this paragraph1 the term qualified computer software has the same meaning given such term under section #agi;,d7f77#b74 7e7 ,allocation of deduction 7#a7 ,in general ,in the case of a qualified building owned by an eligible entity1 the ,secretary shall promulgate regulations to allow the allocation of the deduction to the person primarily responsible for designing the energy efficiency improvements in lieu of the owner of such property1 with such person to be treated as the taxpayer for purposes of this section4 7#b7 ,eligible entity ,for purposes of this subsection1 the term eligible entity has the same meaning given such term under section #agi;,d7d77#b74 7f7 ,basis reduction ,for purposes of this subtitle1 if a deduction is allowed under this section with respect to any energy efficiency improvements1 the basis of such property shall be reduced by the amount of the deduction so allowed4 7g7 ,coordination with other credits ,for purposes of this section1 expenditures taken into account under section #dg or #dh;,e shall not be taken into account under this section4 4 7b7 ,conforming amendment 7#a7 ,section #bfc7;a7 is amended-- 7,a7 in subparagraph 7,k71 by striking or at the end1 7,b7 in subparagraph 7,l71 by striking the period and inserting 1 or1 and 7,c7 by inserting at the end the following new subparagraph3 7,m7 expenditures for which a deduction is allowed under section #agi;,f4 4 7#b7 ,section #cab7k77#c77;,b7 is amended-- 7,a7 in the heading1 by striking or #agi;,e and inserting #agi;,e1 or #agi;,f1 and 7,b7 by striking or #agi;,e and inserting #agi;,e1 or #agi;,f4 7#c7 ,section #ajaf7;a7 is amended-- 7,a7 in paragraph 7#cf71 by striking and at the end1 7,b7 in paragraph 7#cg71 by striking the period at the end and inserting 1 and1 and 7,c7 by inserting at the end the following new paragraph3 7#ch7 to the extent provided in section #agi;,d7f74 4 7#d7 ,section #abde7;a7 is amended-- 7,a7 in paragraph 7#b77;,c71 by inserting #agi;,f1 after #agi;,e11 and 7,b7 in paragraph 7#c77;,c71 by inserting #agi;,f1 after #agi;,e14 7#e7 ,the table of sections for part ,,vi of subchapter ,b of chapter #a is amended by inserting after the item relating to section #agi;,e the following new item3 ,sec4 #agi;,f4 ,deduction for energy efficiency improvements to commercial buildings4 4 7c7 ,effective date ,the amendments made by this section shall apply to any energy efficiency improvements placed in service after ,december #ca1 #bjah4 #cjf4 ,temporary extension of existing energy efficiency incentives 7a7 ,nonbusiness energy property 7#a7 ,in general ,paragraph 7#b7 of section #be;,c7g7 is amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjah4 7#b7 ,effective date ,the amendments made by this subsection shall apply to property placed in service after ,december #ca1 #bjaf4 7b7 ,new energy efficient home credit 7#a7 ,in general ,subsection 7g7 of section #de,l is amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjah4 7#b7 ,effective date ,the amendments made by this subsection shall apply to any qualified new energy efficient home acquired after ,december #ca1 #bjaf4 7c7 ,energy efficient commercial buildings deduction 7#a7 ,in general ,subsection 7h7 of section #agi;,d is amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjah4 7#b7 ,effective date ,the amendments made by this section shall apply to property placed in service after ,december #ca1 #bjaf4 ,,iv ,clean ,electricity and ,fuel ,bonds #dja4 ,clean energy bonds 7a7 ,in general ,subpart ,j of part ,,iv of subchapter ,a of chapter #a is amended by adding at the end the following new section3 #ed;,,bb4 ,clean energy bonds 7a7 ,in general ,if a taxpayer holds a clean energy bond on one or more interest payment dates of the bond during any taxable year1 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 the credits determined under subsection 7b7 with respect to such dates4 7b7 ,amount of credit 7#a7 ,in general ,the amount of the credit determined under this subsection with respect to any interest payment date for a clean energy bond is the applicable percentage 7as determined under paragraph 7#b77 of the amount of interest payable by the issuer with respect to such date4 7#b7 ,applicable percentage 7,a7 ,in general 7i7 ,maximum percentage ,except as provided in clause 7ii71 the applicable percentage is #gj percent4 7ii7 ,reduction of credit based on greenhouse gas emission rate ,the applicable percentage shall be reduced 7but not below zero7 by an amount which bears the same ratio to the percentage in effect under clause 7i7 as-- 7,i7 in the case of a qualified facility described in subsection 7e77#c7 of section #de,s1 the greenhouse gas emissions rate for the facility bears to #cbe grams of ,,co#b;e per ,k,wh 7as such terms are defined in subsections 7b77#a7 and 7e77#a7 of such section71 or 7,,ii7 in the case of a qualified facility described in subsection 7e77#d7 of section #de,t1 the average emissions rate for all transportation fuel produced by such facility bears to #ge kilograms of ,,co#b;e per mm,b,t,u 7as such terms are defined in subsections 7b7 and 7e7 of such section74 7,b7 ,rounding ,if any applicable percentage determined under subparagraph 7,a7 is not a whole percentage point1 such percentage shall be rounded to the nearest whole percentage point4 7,c7 ,safe harbor rules ,rules similar to the rules of sections #de,s7b77#c7 and #de,t7b7 shall apply for purposes of this section4 7c7 ,limitation based on amount of tax 7#a7 ,in general ,the credit allowed under subsection 7a7 for any taxable year shall not exceed the excess of-- 7,a7 the sum of the regular tax liability 7as defined in section #bf7;b77 plus the tax imposed by section #ee1 over 7,b7 the sum of the credits allowable under this part 7other than subpart ,c and this subpart74 7#b7 ,carryover of unused credit ,if the credit allowable under subsection 7a7 exceeds the limitation imposed by paragraph 7#a7 for such taxable year1 such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection 7a7 for such taxable year 7determined before the application of paragraph 7#a7 for such succeeding taxable year74 7d7 ,clean energy bond 7#a7 ,in general ,for purposes of this section1 the term clean energy bond means any bond issued as part of an issue if-- 7,a7 #ajj percent of the excess of the available project proceeds 7as defined in section #ed;,a7e77#d77 of such issue over the amounts in a reasonably required reserve 7within the meaning of section #aej7;a77#c77 with respect to such issue are to be used for capital expenditures incurred by an entity described in subparagraph 7,b7 for one or more qualified facilities1 7,b7 the bond is issued by-- 7i7 a governmental body 7as defined in paragraph 7#c7 of section #ed;,c7d771 7ii7 a public power provider 7as defined in paragraph 7#b7 of such section71 or 7iii7 a cooperative electric company 7as defined in paragraph 7#d7 of such section71 and 7,c7 the issuer makes an irrevocable election to have this section apply4 7#b7 ,applicable rules ,for purposes of applying paragraph 7#a7-- 7,a7 for purposes of section #adi7;b71 a clean energy bond shall not be treated as federally guaranteed by reason of the credit allowed under subsection 7a7 or section #fdcc1 7,b7 for purposes of section #adh1 the yield on a clean energy bond shall be determined without regard to the credit allowed under subsection 7a71 and 7,c7 a bond shall not be treated as a clean energy bond if the issue price has more than a de minimis amount 7determined under rules similar to the rules of section #abgc7;a77#c77 of premium over the stated principal amount of the bond4 7#c7 ,qualified facility ,the term qualified facility means a facility-- 7,a7 which is described in section #de,s7e77#c71 or 7,b7 which is described in section #de,t7e77#d7 and only produces transportation fuel which has an emissions rate of less than #ge kilograms of ,,co#b;e per mm,b,t,u 7as such terms are defined in subsections 7b7 and 7e7 of such section74 7e7 ,interest payment date ,for purposes of this section1 the term interest payment date means any date on which the holder of record of the clean energy bond is entitled to a payment of interest under such bond4 7f7 ,credit phase out 7#a7 ,electrical production ,in the case of a clean energy bond for which the proceeds are used for capital expenditures incurred by an entity for a qualified facility described in subsection 7d77#c77;,a71 if the ,secretary1 in consultation with the ,secretary of ,energy and the ,administrator of the ,environmental ,protection ,agency1 determines that the annual greenhouse gas emissions from electrical production in the ,united ,states are equal to or less than the percentage specified in section #de,s7d77#a71 the amount of the credit determined under subsection 7b7 with respect to any clean energy bond issued during a calendar year described in paragraph 7#c7 shall be equal to the product of-- 7,a7 the amount determined under subsection 7b7 without regard to this subsection1 multiplied by 7,b7 the phase-out percentage under paragraph 7#c74 7#b7 ,fuel production ,in the case of a clean energy bond for which the proceeds are used for capital expenditures incurred by an entity for a qualified facility described in subsection 7d77#c77;,b71 if the ,secretary1 in consultation with the ,secretary of ,energy and the ,administrator of the ,environmental ,protection ,agency1 determines that the annual greenhouse gas emissions from transportation fuel produced and sold at retail annually in the ,united ,states are equal to or less than the percentage specified in section #de,t7d77#a71 the amount of the credit determined under subsection 7b7 with respect to any clean energy bond issued during a calendar year described in paragraph 7#c7 shall be equal to the product of-- 7,a7 the amount determined under subsection 7b7 without regard to this subsection1 multiplied by 7,b7 the phase-out percentage under paragraph 7#c74 7#c7 ,phase-out percentage ,the phase-out percentage under this paragraph is equal to-- 7,a7 for any bond issued during the first calendar year following the calendar year in which the determination described in paragraph 7#a77;,a7 or 7#b77;,a7 is made1 #ge percent1 7,b7 for any bond issued during the second calendar year following such determination year1 #ej percent1 7,c7 for any bond issued during the third calendar year following such determination year1 #be percent1 and 7,d7 for any bond issued during any calendar year subsequent to the year described in subparagraph 7,c71 #j percent4 7g7 ,special rules 7#a7 ,interest on clean energy bonds includible in gross income for ,federal income tax purposes ,for purposes of this title1 interest on any clean energy bond shall be includible in gross income4 7#b7 ,application of certain rules ,rules similar to the rules of subsections 7f71 7g71 7h71 and 7i7 of section #ed;,a shall apply for purposes of the credit allowed under subsection 7a74 7h7 ,regulations ,the ,secretary may prescribe such regulations and other guidance as may be necessary or appropriate to carry out this section and section #fdcc4 4 7b7 ,credit for qualified clean energy bonds allowed to issuer ,subchapter ,b of chapter #fe of subtitle ,f is amended by adding at the end the following new section3 #fdcc4 ,credit for qualified clean energy bonds allowed to issuer 7a7 ,in general ,the issuer of a qualified clean energy bond shall be allowed a credit with respect to each interest payment under such bond which shall be payable by the ,secretary as provided in subsection 7b74 7b7 ,payment of credit 7#a7 ,in general ,the ,secretary shall pay 7contemporaneously with each interest payment date under such bond7 to the issuer of such bond 7or to any person who makes such interest payments on behalf of the issuer7 the applicable percentage 7as determined under subsection 7b7 of section #ed;,,bb7 of the interest payable under such bond on such date4 7#b7 ,interest payment date ,for purposes of this subsection1 the term interest payment date means each date on which interest is payable by the issuer under the terms of the bond4 7c7 ,application of arbitrage rules ,for purposes of section #adh1 the yield on a qualified clean energy bond shall be reduced by the credit allowed under this section4 7d7 ,qualified clean energy bond ,for purposes of this section1 the term qualified clean energy bond means a clean energy bond 7as defined in section #ed;,,bb7d77 issued as part of an issue if the issuer1 in lieu of any credit allowed under section #ed;,,bb7a7 with respect to such bond1 makes an irrevocable election to have this section apply4 4 7c7 ,conforming amendments 7#a7 ,the table of sections for subpart ,j of part ,,iv of subchapter ,a of chapter #a is amended by adding at the end the following new item3 ,sec4 #ed;,,bb4 ,clean energy bonds4 4 7#b7 ,the heading of such subpart 7and the item relating to such subpart in the table of subparts for part ,,iv of subchapter ,a of chapter #a7 are each amended by striking ,build ,america ,bonds and inserting ,build ,america ,bonds and ,clean ,energy ,bonds4 7#c7 ,the table of sections for subchapter ,b of chapter #fe of subtitle ,f is amended by adding at the end the following new item3 ,sec4 #fdcc4 ,credit for qualified clean energy bonds allowed to issuer4 4 7#d7 ,subparagraph 7,a7 of section #fbaa7;b77#d7 is amended by striking and #fdca and inserting #fdca1 and #fdcc4 7d7 ,gross-,up of payment to issuers in case of sequestration 7#a7 ,in general ,in the case of any payment under subsection 7b7 of section #fdcc of the ,internal ,revenue ,code of #aihf 7as added by this ,act7 made after the date of the enactment of this ,act to which sequestration applies1 the amount of such payment shall be increased to an amount equal to-- 7,a7 such payment 7determined before such sequestration71 multiplied by 7,b7 the quotient obtained by dividing #a by the amount by which #a exceeds the percentage reduction in such payment pursuant to such sequestration4 7#b7 ,sequestration ,for purposes of this subsection1 the term sequestration means any reduction in direct spending ordered by the ,president under the ,balanced ,budget and ,emergency ,deficit ,control ,act of #aihe or the ,statutory ,pay-,as-,you-,go ,act of #bjaj4 7e7 ,effective date ,the amendments made by this section shall apply to obligations issued after the date of the enactment of this ,act4