,,ii  #aagth ,,congress  #ast ,session  
,s4 #abih  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,april #bb1    
#bjba ,mr4 ,wyden 7for himself1 ,ms4    
,stabenow1 ,mr4 ,schumer1 ,ms4          
,cantwell1 ,mr4 ,carper1 ,mr4 ,cardin1  
,mr4 ,bennet1 ,mr4 ,whitehouse1 ,ms4    
,hassan1 ,ms4 ,cortez ,masto1 ,mrs4     
,feinstein1 ,mr4 ,durbin1 ,ms4          
,klobuchar1 ,mrs4 ,shaheen1 ,mrs4       
,gillibrand1 ,mr4 ,blumenthal1 ,mr4     
,schatz1 ,ms4 ,hirono1 ,mr4 ,heinrich1  
,mr4 ,kaine1 ,mr4 ,booker1 ,mr4 ,van    
,hollen1 ,ms4 ,smith1 ,ms4 ,baldwin1    
,ms4 ,rosen1 ,mr4 ,leahy1 ,mr4 ,king1   
and ,mr4 ,murphy7 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--,incentives for 
,clean ,electricity ,sec4 #aja4 ,clean  
electricity production credit4 ,sec4    
#ajb4 ,clean electricity investment     
credit4 ,sec4 #ajc4 ,extensions1        
modifications1 and terminations of      
various energy provisions4 ,,title      
,,ii--,incentives for ,clean            
,transportation ,sec4 #bja4 ,clean fuel 
production credit4 ,sec4 #bjb4          
,transportation electrification4 ,sec4  
#bjc4 ,temporary extensions of existing 
fuel incentives4 ,,title                
,,iii--,incentives for ,energy          
,efficiency ,sec4 #cja4 ,credit for new 

energy efficient residential buildings4 
,sec4 #cjb4 ,energy efficient home      
improvement credit4 ,sec4 #cjc4         
,enhancement of energy efficient        
commercial buildings deduction4 ,sec4   
#cjd4 ,enhancement of energy credit for 
geothermal heat pumps4 ,,title          
,,iv--,clean electricity and fuel bonds 
,sec4 #dja4 ,clean energy bonds4 ,,title
 ,v--,termination of certain fossil fuel
 provisions ,sec4 #eja ,termination of  
provisions relating to oil1 gas1 and    
other materials4 ,,title                
,,vi--,workforce development            
requirements ,sec4 #fja4 ,use of        
qualified apprentices4  ,i ,incentives  
for ,clean ,electricity  #aja4 ,clean   
electricity 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,u4 ,clean electricity     
production credit  7a7 ,amount of credit
 ,for purposes of section #ch1 the clean
 electricity production credit for any  

taxable year is an amount equal to the  
product of-- 7#a7 #a4e cents1 multiplied
 by  7#b7 the kilowatt hours of         
electricity-- 7,a7 produced by the      
taxpayer at a qualified facility1 and   
7,b7  7i7 sold by the taxpayer to an    
unrelated person during the taxable     
year1 or  7ii7 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  7b7  
,qualified facility  7#a7 ,in general   
7,a7 ,definition ,subject to            
subparagraphs 7,b71 7,c71 and 7,d71 the 
term qualified facility means a         
facility-- 7i7 which is used for the    
generation of electricity1  7ii7 which  
is originally placed in service after   
,december #ca1 #bjbb1  7iii7 for which  
the greenhouse gas emissions rate 7as   
determined under paragraph 7#b77 is not 
greater than zero1 and  7iv7 in the case
 of any facility with a total nameplate 

capacity equal to or greater than #a    
megawatt1 which-- 7,i7 satisfies the    
requirements under paragraph 7#c71 and  
7,,ii7 with respect to the construction 
of such facility1 satisfies the         
requirements under section #fja of the  
,clean ,energy for ,america ,act4  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 placed in service      
before ,january #a1 #bjbc1 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 
#bjbb4  7ii7 ,any efficiency            
improvements or additions of capacity   

placed in service after ,december #ca1  
#bjbb4  7,d7 ,coordination with other   
credits ,the term qualified facility    
shall not include any facility for which
 a credit determined under section #de1 
#de;,j1 #dh1 or #dh;,d is allowed under 
section #ch for the taxable year or any 
prior taxable year4  7#b7 ,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 facility in the     
production of electricity1 expressed as 
grams of ,,co#b;e per ,k,wh4  7,b7 ,fuel
 combustion and gasification ,in the    
case of a facility which produces       
electricity through combustion or       
gasification1 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 7taking into account      
lifecycle greenhouse gas emissions1 as  
described in section #baa7o77#a77;,h7 of

 the ,clean ,air ,act 7#db ,u4,s4,c4    
#gede7o77#a77;,h777 in the production of
 electricity1 expressed as grams of     
,,co#b;e per ,k,wh4  7,c7 ,establishment
 of emissions rates for facilities  7i7 
,in general ,the ,secretary1 in         
consultation with the ,administrator of 
the ,environmental ,protection ,agency1 
shall establish greenhouse gas emissions
 rates for types or categories of       
facilities1 which a taxpayer shall use  
for purposes of this section4  7ii7     
,publishing emissions rates ,the        
,secretary shall publish a table that   
sets forth the greenhouse gas emissions 
rates for similar types or categories of
 facilities4  7iii7 ,provisional        
emissions rate  7,i7 ,in general ,in the
 case of any facility for which an      
emissions rate has not been established 
by the ,secretary1 a taxpayer which owns
 such facility may file a petition with 
the ,secretary for determination of the 
emissions rate with respect to such     
facility4  7,,ii7 ,establishment of     

provisional and final emissions rate ,in
 the case of a facility for which a     
petition described in subclause 7,i7 has
 been filed1 the ,secretary1 in         
consultation with the ,administrator of 
the ,environmental ,protection ,agency1 
shall--  7aa7 not later than #ab months 
after the date on which the petition was
 filed1 provide a provisional emissions 
rate for such facility which a taxpayer 
shall use for purposes of this section1 
and  7bb7 not later than #bd months     
after the date on which the petition was
 filed1 establish the emissions rate for
 such facility4  7,d7 ,carbon capture   
and sequestration equipment ,for        
purposes of this subsection1 the amount 
of greenhouse gases emitted into the    
atmosphere by a facility in the         
production of electricity shall not     
include any qualified carbon dioxide    
that is captured by the taxpayer and--  
7i7 pursuant to any regulations         
established under paragraph 7#b7 of     
section #de,q7f71 disposed of by the    

taxpayer in secure geological storage1  
or  7ii7 utilized by the taxpayer in a  
manner described in paragraph 7#e7 of   
such section4  7#c7 ,wage requirements  
,the requirements described in this     
paragraph with respect to any facility  
are that the taxpayer shall ensure that 
any laborers and mechanics employed by  
contractors and subcontractors in--     
7,a7 the construction of such facility1 
or  7,b7 for any year during the period 
described in paragraph 7#a77;,b71 the   
alteration or repair of such facility1  
shall be paid wages at rates not less   
than the prevailing rates for           
construction1 alteration1 or repair of a
 similar character in the locality as   
determined by the ,secretary of ,labor1 
in accordance with subchapter ,,iv of   
chapter #ca of title #dj1 ,united       
,states ,code4  7c7 ,inflation          
adjustment  7#a7 ,in general ,in the    
case of a calendar year beginning after 
#bjba1 the #a4e cent amount in paragraph
 7#a7 of subsection 7a7 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   
the production of electricity in the    
,united ,states are equal to or less    
than #be percent of the annual          
greenhouse gas emissions from the       
production of electricity in the ,united
 ,states for calendar year #bjba1 the   
amount of the clean electricity         
production credit under subsection 7a7  
for any qualified facility the          
construction of which begins 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 the construction of which      
begins during the first calendar year   
following the calendar year in which the
 determination described in paragraph   
7#a7 is made1 #ajj percent1  7,b7 for a 
facility the construction of which      
begins during the second calendar year  
following such determination year1 #ge  
percent1  7,c7 for a facility the       
construction of which begins during the 
third calendar year following such      
determination year1 #ej 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 7as determined
 based on global warming potential7 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 carbon
 dioxide ,the term qualified carbon     
dioxide means carbon dioxide captured   
from an industrial source which-- 7,a7  
would otherwise be released into the    
atmosphere as industrial emission of    
greenhouse gas1  7,b7 is measured at the
 source of capture and verified at the  
point of disposal or utilization1 and   
7,c7 is captured and disposed or        
utilized within the ,united ,states     
7within the meaning of section #fch7a77 
or a possession of the ,united ,states  
7within the meaning of section #fch7b774
  7f7 ,final guidance ,not later than   
,january #a1 #bjbc1 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 electricity  
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 7a7-- 7i7 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 facility1 and  7ii7 the amount of  

greenhouse gases emitted into the       
atmosphere by such facility in the      
production of such useful thermal energy
 shall be included for purposes of      
determining the greenhouse gas emissions
 rate for 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,a77i71 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  7h7 ,election  
for direct payment  7#a7 ,in general    

,the amount of any credit determined    
under subsection 7a7 with respect to any
 qualified facility for any taxable year
 during the period described in         
subsection 7b77#a77;,b7 shall1 at the   
election of the taxpayer1 be treated as 
a payment equal to such amount which is 
made by the taxpayer against the tax    
imposed by chapter #a for such taxable  
year4  7#b7 ,form and effect of election
 ,an election under paragraph 7#a7 shall
 be made prior to the date on which     
construction of the qualified facility  
begins and in such manner as the        
,secretary may prescribe4 ,such         
election1 once made1 shall--  7,a7 be   
irrevocable with respect to such        
qualified facility for the period       
described in subsection 7b77#a77;,b71   
and  7,b7 for any taxable year during   
such period1 reduce the amount of the   
credit which would 7but for this        
paragraph7 be allowable under this      
section with respect to such qualified  
facility for such taxable year to zero4 

7#c7 ,application to partnerships and ,s
 corporations ,in the case of a         
partnership or ,s corporation which     
makes an election under paragraph 7#a7--
 7,a7 such paragraph shall apply with   
respect to such partnership or          
corporation without regard to the fact  
that no tax is imposed by chapter #a on 
such partnership or corporation1 and    
7,b7  7i7 in the case of a partnership1 
each partner's distributive share of the
 credit determined under subsection 7a7 
with respect to the qualified facility  
shall be deemed to be zero1 and  7ii7 in
 the case of a ,s corporation1 each     
shareholder's pro rata share of the     
credit determined under subsection 7a7  
with respect to the qualified facility  
shall be deemed to be zero4  4  7b7     
,conforming amendments  7#a7 ,section   
#ch7;b7 is amended-- 7,a7 in paragraph  
7#cb71 by striking plus at the end1     
7,b7 in paragraph 7#cc71 by striking the
 period at the end and inserting 1 plus1
 and  7,c7 by adding at the end the     

following new paragraph3  7#cd7 the     
clean electricity production credit     
determined under section #de,u7a74  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,u4 ,clean electricity production    
credit4  4  7c7 ,effective date ,the    
amendments made by this section shall   
apply to facilities placed in service   
after ,december #ca1 #bjbb4  #ajb4      
,clean electricity 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;,c the following new 
section3  #dh;,d4 ,clean electricity    
investment credit  7a7 ,investment      
credit for qualified property  7#a7 ,in 
general ,for purposes of section #df1   
the clean electricity investment credit 
for any taxable year is-- 7,a7 except as
 provided in subparagraph 7,b71 an      
amount equal to #cj percent of the      

qualified investment for such taxable   
year with respect to--  7i7 any         
qualified facility1 and  7ii7 any grid  
improvement property1 and  7,b7 in the  
case of a qualified facility which is a 
microgrid1 an amount equal to the       
product of-- 7i7 #cj percent of the     
qualified investment for such taxable   
year with respect to such microgrid1 and
  7ii7 the relative avoided emissions   
rate with respect to such microgrid 7as 
determined under subsection             
7b77#c77;,c77iv774  7#b7 ,disadvantaged 
communities  7,a7 ,in general ,in the   
case of any qualified facility 7with the
 exception of any such facility         
described in section #de,u7b77#b77;,b77 
or energy storage property which is     
placed in service within a disadvantaged
 community1 paragraph 7#a7 shall be     
applied by substituting #dj percent for 
#cj percent4  7,b7 ,disadvantaged       
community ,for purposes of this         
paragraph1 the term disadvantaged       
community has the same meaning given the

 term low-income community in section   
#de;,d7e77#a74  7b7 ,qualified          
investment with respect to any qualified
 facility  7#a7 ,in general ,for        
purposes of subsection 7a71 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

  7,a7 ,in general ,for purposes of this
 section1 the term qualified facility   
means a facility--  7i7 which is used   
for the generation of electricity1  7ii7
 which is originally placed in service  
after ,december #ca1 #bjbb1  7iii7 for  
which the anticipated greenhouse gas    
emissions rate 7as determined under     
clause 7ii77 is not greater than zero1  
and  7iv7 in the case of any facility   
with a total nameplate capacity equal to
 or greater than #a megawatt1 which--   
7,i7 satisfies the requirements under   
subparagraph 7,b77iii71 and  7,,ii7 with
 respect to the construction of such    
facility1 satisfies the requirements    
under section #fja of the ,clean ,energy
 for ,america ,act4  7,b7 ,additional   
rules  7i7 ,expansion of facility2      
incremental production ,rules similar to
 the rules of section #de,u7b77#a77;,b7 
shall apply for purposes of this        
paragraph4  7ii7 ,establishment of      
emissions rates for qualified facilities
  7,i7 ,in general ,the ,secretary1 in  

consultation with the ,administrator of 
the ,environmental ,protection ,agency1 
shall establish greenhouse gas emissions
 rates for types or categories of       
facilities1 which a taxpayer shall use  
for purposes of this section4  7,,ii7   
,publishing emissions rates ,the        
,secretary shall publish a table that   
sets forth the greenhouse gas emissions 
rates for similar types or categories of
 facilities4  7iii7 ,wage requirements  
,the requirements described in this     
clause with respect to any facility are 
that the taxpayer shall ensure that any 
laborers and mechanics employed by      
contractors and subcontractors in--     
7,i7 the construction of such facility1 
or  7,,ii7 for any year during the      
#e-year period beginning on the date the
 facility is originally placed in       
service1 the alteration or repair of    
such facility1  shall be paid wages at  
rates not less than the prevailing rates
 for construction1 alteration1 or repair
 of a similar character in the locality 

as determined by the ,secretary of      
,labor1 in accordance with subchapter   
,,iv of chapter #ca of title #dj1       
,united ,states ,code4  7,c7 ,microgrids
  7i7 ,in general ,for purposes of this 
section1 the term qualified facility    
shall include any microgrid4  7ii7      
,microgrid ,for purposes of this        
section1 the term microgrid means an    
interconnected system of distributed    
energy resources used for the generation
 of electricity which--  7,i7 is        
contained within a clearly defined      
electrical boundary and has the ability 
to operate as a single and controllable 
entity1  7,,ii7 has the ability to be   
managed and isolated from the applicable
 grid region in order to withstand      
larger disturbances and maintain the    
supply of electricity to connected      
critical infrastructure1 and  7,,iii7   
has no point of interconnection to the  
applicable grid region with a throughput
 capacity in excess of #bj megawatts4   
7iii7 ,applicable grid region ,for      

purposes of this subparagraph1 the term 
applicable grid region means a set of   
power plants and transmission lines     
which are--  7,i7 under the control of a
 single grid operator1 and  7,,ii7      
interconnected to the microgrid4  7iv7  
,relative avoided emissions rate  7,i7  
,in general ,for purposes of subsection 
7a77#a77;,b77ii71 the relative avoided  
emissions rate shall be the amount equal
 to the quotient of-- 7aa7 the amount   
equal to the non-baseload output        
emissions rate for the applicable grid  
region minus the greenhouse gas         
emissions rate for the microgrid1       
divided by  7bb7 the non-baseload output
 emissions rate for the applicable grid 
region4  7,,ii7 ,non-baseload output    
emissions rate  7aa7 ,in general ,for   
purposes of this subparagraph1 the term 
non-baseload output emissions rate means
 the amount of greenhouse gases emitted 
into the atmosphere by the applicable   
grid region for the production of       
electricity 7expressed as grams of      

,,co#b;e per ,k,wh7 above baseload4     
7bb7 ,determination ,the non-baseload   
output emissions rate for any applicable
 grid region shall be determined by the 
,administrator of the ,environmental    
,protection ,agency1 in consultation    
with the ,secretary4  7,,iii7           
,greenhouse gas emissions rate ,for     
purposes of this subparagraph1 the term 
greenhouse gas emissions rate has the   
same meaning given such term under      
section #de,u7b77#b74  7,d7 ,exclusion  
,the term qualified facility shall not  
include any facility for which a        
renewable electricity production credit 
under section #de1 an advanced nuclear  
power facility production credit under  
section #de;,j1 or an energy credit     
determined under section #dh is allowed 
under section #ch for the taxable year  
or any prior taxable year4  7#d7        
,coordination with rehabilitation credit
 ,the qualified investment with respect 
to any qualified facility for any       
taxable year shall not include that     

portion of the basis of any property    
which is attributable to qualified      
rehabilitation expenditures 7as defined 
in section #dg7;c77#b774  7c7 ,qualified
 investment with respect to grid        
improvement property  7#a7 ,in general  
7,a7 ,qualified investment ,for purposes
 of subsection 7a71 the qualified       
investment with respect to grid         
improvement property for any taxable    
year is the basis of any grid           
improvement property placed in service  
by the taxpayer during such taxable     
year4  7,b7 ,grid improvement property  
,for purposes of this section1 the term 
grid improvement property means any     
energy storage property or qualified    
transmission property which--  7i7      
satisfies the requirements under        
paragraph 7#d71 and  7ii7 with respect  
to the construction of such property1   
satisfies the requirements under section
 #fja of the ,clean ,energy for ,america
 ,act4  7#b7 ,energy storage property   
,for purposes of this subsection1 the   

term energy storage property means      
property-- 7,a7 which receives1 stores1 
and delivers electricity1 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  7,e7 which has a capacity of
 not less than #e kilowatt hours1 and   
7,f7 which is placed in service after   
,december #ca1 #bjba4  7#c7 ,qualified  
transmission property  7,a7 ,in general 
,for purposes of this subsection1 the   
term qualified transmission property    
means--  7i7 any overhead1 submarine1 or
 underground transmission property which
 is capable of transmitting electricity 

at a voltage of not less than #bge      
kilovolts1 and  7ii7 any other equipment
 necessary for the operation of a new   
circuit1 including equipment listed as  
transmission plant in the ,uniform      
,system of ,accounts for the ,federal   
,energy ,regulatory ,commission under   
part #aja of subchapter ,c of chapter ,i
 of title #ah1 ,code of ,federal        
,regulations4  7,b7 ,exclusion ,the term
 qualified transmission property shall  
not include any property used for       
distribution of electricity4  7#d7 ,wage
 requirements ,the requirements         
described in this paragraph with respect
 to any property are that the taxpayer  
shall ensure that any laborers and      
mechanics employed by contractors and   
subcontractors in--  7,a7 the           
construction of such property1 or  7,b7 
for any year during the #e-year period  
beginning on the date the property is   
originally placed in service1 the       
alteration or repair of such property1  
shall be paid wages at rates not less   

than the prevailing rates for           
construction1 alteration1 or repair of a
 similar character in the locality as   
determined by the ,secretary of ,labor1 
in accordance with subchapter ,,iv of   
chapter #ca of title #dj1 ,united       
,states ,code4  7d7 ,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   
7e7 ,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   
the production of electricity in the    
,united ,states are equal to or less    
than #be percent of the annual          
greenhouse gas emissions from the       
production of electricity in the ,united

 ,states for calendar year #bjba1 the   
amount of the clean electricity         
investment credit under subsection 7a7  
for any qualified property or grid      
improvement property the construction of
 which begins 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 the construction of which      
begins during the first calendar year   
following the calendar year in which the
 determination described in paragraph   
7#a7 is made1 #ajj percent1  7,b7 for   
property the construction of which      
begins during the second calendar year  
following such determination year1 #ge  
percent1  7,c7 for property the         
construction of which begins during the 

third calendar year following such      
determination year1 #ej percent1 and    
7,d7 for property the construction of   
which begins during any calendar year   
subsequent to the year described in     
subparagraph 7,c71 #j percent4  7f7     
,greenhouse gas ,in this section1 the   
term greenhouse gas has the same meaning
 given such term under section          
#de,u7e77#b74  7g7 ,recapture of credit 
,for purposes of section #ej1 if the    
,secretary1 in consultation with the    
,administrator of the ,environmental    
,protection ,agency1 determines that 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      
electricity investment credit under this
 section1 the facility or equipment     
shall cease to be investment credit     
property in the taxable year in which   
the determination is made4  7h7 ,final  
guidance ,not later than ,january #a1   

#bjbc1 the ,secretary1 in consultation  
with the ,administrator of the          
,environmental ,protection ,agency1     
shall issue final guidance regarding    
implementation of this section4  7i7    
,election for direct payment  7#a7 ,in  
general ,in the case of any qualified   
property or grid improvement property   
placed in service during any taxable    
year1 the amount of any credit          
determined under subsection 7a7 with    
respect to such property for such       
taxable year shall1 at the election of  
the taxpayer1 be treated as a payment   
equal to such amount which is made by   
the taxpayer against the tax imposed by 
chapter #a for such taxable year        
7regardless of whether such tax would   
have been on such taxpayer74  7#b7 ,form
 and effect of election ,an election    
under paragraph 7#a7 shall be made prior
 to the date on which construction of   
the qualified property or grid          
improvement property begins and in such 
manner as the ,secretary may prescribe4 

,such election1 once made1 shall--  7,a7
 be irrevocable with respect to the     
qualified property or grid improvement  
property to which such election applies1
 and  7,b7 reduce the amount of the     
credit which would 7but for this        
subsection7 be allowable under this     
section with respect to such property   
for the taxable year in which such      
property is placed in service to zero4  
7#c7 ,application to partnerships and ,s
 corporations ,rules similar to the     
rules of section #de,u7h77#c7 shall     
apply for purposes of this subsection4  
4  7#b7 ,public utility property        
,paragraph 7#b7 of section #ej7;d7 is   
amended--  7,a7 by adding after the     
first sentence the following new        
sentence3 ,at the election of a         
taxpayer1 this paragraph shall not apply
 to any grid improvement property 7as   
defined in section #dh;,d7c77#a77;,b771 
provided--1 and  7,b7 by adding the     
following new subparagraphs3  7,a7 no   
election under this paragraph shall be  

permitted if the making of such election
 is prohibited by1 or required by1 a    
,state or political subdivision thereof1
 by any agency or instrumentality of the
 ,united ,states1 or by a public service
 or public utility commission or other  
similar body of any ,state or political 
subdivision that regulates public       
utilities as described in section       
#ggja7;a77#cc77;,a71  7,b7 an election  
under this paragraph shall be made      
separately with respect to each grid    
improvement property by the due date    
7including extensions7 of the ,federal  
tax return for the taxable year in which
 such property is placed in service by  
the taxpayer1 and once made1 may be     
revoked only with the consent of the    
,secretary1 and  7,c7 an election shall 
not apply with respect to any energy    
storage property 7as defined in section 
#dh;,d7c77#b77 if such property has a   
maximum capacity equal to or less than  
#ejj kilowatt hours4  4  7#c7           
,conforming amendments  7,a7 ,section   

#df is amended--  7i7 by striking 8and0 
at the end of paragraph 7#e71  7ii7 by  
striking the period at the end of       
paragraph 7#f7 and inserting 81 and01   
and  7iii7 by adding at the end the     
following new paragraph3  7#g7 the clean
 electricity investment credit4  4  7,b7
 ,section #di7;a77#a77;,c7 is amended-- 
7i7 by striking 8and0 at the end of     
clause 7iv71  7ii7 by striking the      
period at the end of clause 7v7 and     
inserting a comma1 and  7iii7 by adding 
at the end the following new clauses3   
7vi7 the basis of any qualified property
 which is part of a qualified facility  
under section #dh;,d1 and  7vii7 the    
basis of any energy storage property    
under section #dh;,d4  4  7,c7 ,section 
#ej7;a77#b77;,e7 is amended by striking 
or #dh;,c7b77#b7 and inserting          
#dh;,c7b77#b71 or #dh;,d7e74  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;,c the following

 new item3  #dh;,d4 ,clean electricity  
investment credit4  4  7#d7 ,effective  
date ,the amendments made by this       
subsection shall apply to property      
placed in service after ,december #ca1  
#bjbb1 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 ,residential clean    
electricity credit  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 
#cj percent of the expenditures made by 
the taxpayer for any qualified property 
and any energy storage property which   
is-- 7#a7 for use in connection with a  
dwelling unit which is located in the   
,united ,states and used as a residence 

by the taxpayer1 and  7#b7 placed in    
service during such taxable year4  7b7  
,qualified property  7#a7 ,in general   
,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  7,e7 which is      
originally placed in service after      
,december #ca1 #bjbb1 and  7,f7 for     
which the anticipated greenhouse gas    
emissions rate 7as determined under     
paragraph 7#b77 is not greater than     
zero4  7#b7 ,establishment of emissions 
rates for qualified property  7,a7 ,in  
general ,the ,secretary1 in consultation
 with the ,administrator of the         
,environmental ,protection ,agency1     
shall establish greenhouse gas emissions
 rates for types or categories of       
qualified property which are for use in 
a dwelling unit1 which a taxpayer shall 

use for purposes of this section4  7,b7 
,publishing emissions rates ,the        
,secretary shall publish a table that   
sets forth the greenhouse gas emissions 
rates for similar types or categories of
 qualified property4  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 or sold by
 the taxpayer1  7#b7 is equipped with a 
metering device which is owned and      
operated by an unrelated person1 and    
7#c7 has a capacity of not less than #c 
kilowatt hours4  7d7 ,carryforward of   
unused credit  7#a7 ,in general ,if the 
credit allowable under subsection 7a7   
exceeds the applicable tax limit1 such  
excess shall be carried to each of the  
#c succeeding taxable years and added to
 the credit allowable under subsection  
7a7 for such succeeding taxable year4   
7#b7 ,limitation ,the amount of the     
unused credit which may be taken into   

account under paragraph 7#a7 for any    
taxable year shall not exceed the amount
 7if any7 by which the applicable tax   
limit for such taxable year exceeds the 
sum of--  7,a7 the credit allowable     
under subsection 7a7 for which such     
taxable year determined without regard  
to this subsection1 and  7,b7 the       
amounts which1 by reason of this        
subsection1 are carried to such taxable 
year and are attributable to taxable    
years before the unused credit year4    
7#c7 ,applicable tax limit ,for purposes
 of this subsection1 the term applicable
 tax limit means 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 section74  7e7 ,credit phase-,out 
7#a7 ,in general ,if the ,secretary     
determines that the annual greenhouse   
gas emissions from the production of    
electricity in the ,united ,states are  
equal to or less than the percentage    
specified in section #dh;,d7e71 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   
#ajj percent1  7,b7 for property placed 
in service during the second calendar   
year following such determination year1 
#ge percent1  7,c7 for property placed  
in service during the third calendar    
year following such determination year1 
#ej 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 #bjbc1 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  
electricity 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;,d7g74  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      
,residential clean electricity credit4  
4  7#c7 ,effective date ,the amendments 
made by this section shall apply to     
property placed in service after        
,december #ca1 #bjbb4  #ajc4            
,extensions1 modifications1 and         
terminations of various energy          
provisions  7a7 ,residential energy     
efficient property  7#a7 ,in general    
,section #be;,d7h7 is amended by        
striking ,december #ca1 #bjbc and       
inserting ,december #ca1 #bjbb4  7#b7   
,elimination of phase-out ,section      
#be;,d7g7 is amended-- 7,a7 in paragraph

 7#a71 by adding and at the end1  7,b7  
in paragraph 7#b71 by striking 1 and and
 inserting a period1 and  7,c7 by       
striking paragraph 7#c74  7#c7          
,effective date ,the amendments made by 
this subsection shall apply to property 
placed in service after the date of     
enactment of this ,act4  7b7            
,termination of allocation of unutilized
 limitation for advanced nuclear power  
facilities ,section #de;,j7b7 is amended
 by striking paragraph 7#e74  7c7       
,modification of credit for carbon      
dioxide sequestration  7#a7 ,in general 
,section #de,q is amended-- 7,a7 in     
subsection 7a77#d77;,b77i71 by inserting
 subject to subsection 7f77#h71 before  
used by1  7,b7 in subsection 7b77#a7--  
7i7 in subparagraph 7,a71 by striking   
,the applicable dollar amount and       
inserting ,except as provided in        
subparagraph 7,b71 the applicable dollar
 amount1  7ii7 by redesignating         
subparagraph 7,b7 as subparagraph 7,c71 
7iii7 by inserting after subparagraph   

7,a7 the following3  7,b7 ,applicable   
dollar amount for direct air capture    
facilities ,in the case of any qualified
 facility described in subsection       
7d77#a7 for which construction begins   
after the date of enactment of the      
,clean ,energy for ,america ,act1 the   
applicable dollar amount shall be an    
amount equal to-- 7i7 for any taxable   
year beginning in a calendar year before
 #bjbg--  7,i7 for purposes of paragraph
 7#c7 of subsection 7a71 #age1 and      
7,,ii7 for purposes of paragraph 7#d7 of
 such subsection1 #aej1 and  7ii7 for   
any taxable year beginning in a calendar
 year after #bjbf-- 7,i7 for purposes of
 paragraph 7#c7 of subsection 7a71 an   
amount equal to the product of #age and 
the inflation adjustment factor for such
 calendar year determined under section 
#dc7;b77#c77;,b7 for such calendar year1
 determined by substituting #bjbe for   
#aiij1 and  7,,ii7 for purposes of      
paragraph 7#d7 of such subsection1 an   
amount equal to the product of #aej and 

the inflation adjustment factor for such
 calendar year determined under section 
#dc7;b77#c77;,b7 for such calendar year1
 determined by substituting #bjbe for   
#aiij4  1 and  7iv7 in subparagraph     
7,c71 as so redesignated1 by inserting  
or 7,b7 after subparagraph 7,a71  7,c7  
by striking subsection 7d7 and inserting
 the following3  7d7 ,qualified facility
 ,for purposes of this section1 the term
 qualified facility means--  7#a7 any   
direct air capture facility1 and  7#b7  
any industrial facility which captures--
  7,a7 in the case of an electricity    
generating facility1 not less than #ge  
percent of the carbon oxide which would 
otherwise be released into the          
atmosphere1 or  7,b7 in the case of an  
industrial facility which is not an     
electricity generating facility1 not    
less than #ej percent of the carbon     
oxide which would otherwise be released 
into the atmosphere4  1  7,d7 in        
subsection 7f71 by adding at the end the
 following3  7#h7 ,elimination of use of

 carbon oxide as tertiary injectant ,in 
the case of any qualified facility the  
construction of which begins after the  
date of enactment of the ,clean ,energy 
for ,america ,act1 subsection           
7a77#d77;,b77i7 shall not apply4  1     
7,e7 by redesignating subsection 7h7 as 
subsection 7i71 and  7,f7 by inserting  
after subsection 7g7 the following3  7h7
 ,credit phase-,out  7#a7 ,in general   
7,a7 ,reduction based on emissions from 
production of electricity ,subject to   
subparagraphs 7,b7 and 7,c71 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   
the production of electricity in the    
,united ,states are equal to or less    
than #be percent of the annual          
greenhouse gas emissions from the       
production of electricity in the ,united
 ,states for calendar year #bjba1 the   
amount of the carbon oxide sequestration

 credit under subsection 7a7 for any    
qualified facility the construction of  
which begins during a calendar year     
described in paragraph 7#b7 shall be    
equal to the product of-- 7i7 the amount
 of the credit determined under         
subsection 7a7 without regard to this   
subsection1 multiplied by  7ii7 the     
phase-out percentage under paragraph    
7#b74  7,b7 ,other industrial facilities
 ,in the case of any qualified facility 
described in subsection 7d77#b77;,b7 the
 construction of which begins during a  
calendar year described in paragraph    
7#b71 subparagraph 7,a7 shall be applied
 by substituting industrial sector for  
production of electricity each place it 
appears4  7,c7 ,direct air capture      
facilities ,in the case of any qualified
 facility described in subsection       
7d77#a71 subparagraph 7,a7 shall not    
apply4  7#b7 ,phase-out percentage ,the 
phase-out percentage under this         
paragraph is equal to--  7,a7 for a     
facility the construction of which      

begins during the first calendar year   
following the calendar year in which the
 determination described in paragraph   
7#a77;,a7 is made1 #ajj percent1  7,b7  
for a facility the construction of which
 begins during the second calendar year 
following such determination year1 #ge  
percent1  7,c7 for a facility the       
construction of which begins during the 
third calendar year following such      
determination year1 #ej percent1 and    
7,d7 for a facility the construction of 
which begins during any calendar year   
subsequent to the year described in     
subparagraph 7,c71 #j percent4  4  7#b7 
,elimination of election for applicable 
facilities  7,a7 ,in general ,section   
#de,q7f71 as amended by paragraph       
7#a77;,c71 is amended-- 7i7 by striking 
paragraph 7#f71 and  7ii7 by            
redesignating paragraphs 7#g7 and 7#h7  
as paragraphs 7#f7 and 7#g71            
respectively4  7,b7 ,conforming         
amendment ,section #de,q7a77#d77;,b77i71
 as amended by paragraph 7#a77;,a71 is  

amended by striking subsection 7f77#h7  
and inserting subsection 7f77#g74  7#c7 
,wage requirements ,section #de,q7f71 as
 amended by paragraphs 7#a77;,c7 and    
7#b71 is amended by adding at the end   
the following3  7#h7 ,wage requirements 
7,a7 ,in general ,the term qualified    
facility shall not include any facility 
which fails to satisfy--  7i7 the       
requirements under subparagraph 7,b71   
and  7ii7 with respect to--  7,i7 the   
construction of any facility the        
construction of which begins after the  
date of enactment of the ,clean ,energy 
for ,america ,act1 and  7,,ii7 the      
construction of any carbon capture      
equipment1  the requirements under      
section #fja of the ,clean ,energy for  
,america ,act4  7,b7 ,requirements ,the 
requirements described in this clause   
with respect to any facility1 and any   
carbon capture equipment placed in      
service at such facility1 are that the  
taxpayer shall ensure that any laborers 
and mechanics employed by contractors   

and subcontractors in-- 7i7 in the case 
of any facility the construction of     
which begins after the date of enactment
 of the ,clean ,energy for ,america     
,act1 the construction of such facility1
 or  7ii7 during the #ab-year period    
beginning on the date on which carbon   
capture equipment is originally placed  
in service at any facility 7as described
 in paragraphs 7#c77;,a7 and 7#d77;,a7  
of subsection 7a771 the alteration or   
repair of such facility or such         
equipment1  shall be paid wages at rates
 not less than the prevailing rates for 
construction1 alteration1 or repair of a
 similar character in the locality as   
determined by the ,secretary of ,labor1 
in accordance with subchapter ,,iv of   
chapter #ca of title #dj1 ,united       
,states ,code4  4  7#d7 ,election for   
direct payment ,section #de,q1 as       
amended by the preceding paragraphs of  
this subsection1 is amended--  7,a7 by  
redesignating subsection 7i7 as         
subsection 7j71 and  7,b7 by inserting  

after subsection 7h7 the following3  7i7
 ,election for direct payment  7#a7 ,in 
general ,the amount of any credit       
determined under paragraph 7#c7 or 7#d7 
of subsection 7a7 with respect to any   
qualified carbon oxide for any taxable  
year during the period described in     
paragraph 7#c77;,a7 or 7#d77;,a7 of such
 subsection1 respectively1 shall1 at the
 election of the taxpayer1 be treated as
 a payment equal to such amount which is
 made by the taxpayer against the tax   
imposed by chapter #a for such taxable  
year4  7#b7 ,form and effect of election
 ,an election under paragraph 7#a7 shall
 be made prior to the date on which     
construction of the carbon capture      
equipment begins and in such manner as  
the ,secretary may prescribe4 ,such     
election1 once made1 shall--  7,a7 be   
irrevocable with respect to such carbon 
capture equipment for the period        
described in paragraph 7#c77;,a7 or     
7#d77;,a7 of subsection 7a71 and  7,b7  
for any taxable year during such period1

 reduce the amount of the credit which  
would 7but for this paragraph7 be       
allowable under this section with       
respect to such equipment for such      
taxable year to zero4  7#c7 ,application
 to partnerships and ,s corporations    
,rules similar to the rules of section  
#de,u7h77#c7 shall apply for purposes of
 this subsection4  4  7#e7 ,effective   
dates  7,a7 ,in general ,the amendments 
made by paragraph 7#a7 shall apply to   
facilities the construction of which    
begins after the date of enactment of   
this ,act4  7,b7 ,elimination of        
election for applicable facilities ,the 
amendments made by paragraph 7#b7 shall 
take effect on the date of enactment of 
this ,act4  7,c7 ,wage requirements ,the
 amendments made by paragraph 7#c7 shall
 apply to facilities or equipment the   
construction of which begins after      
,december #ca1 #bjba4  7,d7 ,election   
for direct payment ,the amendments made 
by paragraph 7#d7 shall apply to        
equipment the construction of which     

begins after ,december #ca1 #bjba4  7d7 
,modification of credits for energy     
property  7#a7 ,solar energy property   
,subclause 7,,ii7 of section            
#dh7;a77#b77;,a77i7 is amended by       
striking ,january #a1 #bjbd and         
inserting ,january #a1 #bjbc4  7#b7     
,phase-outs ,section #dh7;a7 is         
amended-- 7,a7 in paragraph 7#f7--  7i7 
by striking subparagraph 7,a7 and       
inserting the following3  7,a7 ,in      
general ,subject to subparagraph 7,b71  
in the case of any energy property      
described in paragraph 7#c77;,a77i7 the 
construction of which begins after      
,december #ca1 #bjai1 before ,january   
#a1 #bjbc1 the energy percentage        
determined under paragraph 7#b7 shall be
 equal to #bf percent4  1 and  7ii7 in  
subparagraph 7,b71 by striking ,january 
#a1 #bjbd and inserting ,january #a1    
#bjbc1 and  7,b7 in paragraph 7#g71 by  
striking subparagraph 7,a7 and inserting
 the following3  7,a7 ,in general       
,subject to subparagraph 7,b71 in the   

case of any qualified fuel cell         
property1 qualified small wind property1
 waste energy recovery property1 or     
energy property described in paragraph  
7#c77;,a77ii7 the construction of which 
begins after ,december #ca1 #bjai1 and  
before ,january #a1 #bjbc1 the energy   
percentage determined under paragraph   
7#b7 shall be equal to #bf percent4  4  
7#c7 ,effective date ,the amendments    
made by this subsection shall take      
effect on the date of enactment of this 
,act4  7e7 ,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 property the construction of 
which begins before ,january #a1 #bjbc1 
after swimming pool11 and  7,b7 in      
clause 7ii71 by striking ,january #a1   
#bjbd and inserting ,january #a1 #bjbc4 
7#b7 ,geothermal energy property        
,section #dh7;a77#c77;,a77iii7 is       
amended by inserting with respect to    
property the construction of which      

begins before ,january #a1 #bjbc1 and   
after but only4  7#c7 ,qualified        
offshore wind facilities ,section       
#dh7;a77#e77;,f7 is amended by striking 
,january #a1 #bjbf each place it appears
 and inserting ,january #a1 #bjbc4  7#d7
 ,qualified fuel cell property ,section 
#dh7;c77#a77;,d7 is amended by striking 
,january #a1 #bjbd and inserting        
,january #a1 #bjbc4  7#e7 ,qualified    
microturbine property ,section          
#dh7;c77#b77;,d7 is amended by striking 
,january #a1 #bjbd and inserting        
,january #a1 #bjbc4  7#f7 ,combined heat
 and power system property ,section     
#dh7;c77#c77;,a77iv7 is amended by      
striking ,january #a1 #bjbd and         
inserting ,january #a1 #bjbc4  7#g7     
,qualified small wind energy property   
,section #dh7;c77#d77;,c7 is amended by 
striking ,january #a1 #bjbd and         
inserting ,january #a1 #bjbc4  7#h7     
,waste energy recovery property ,section
 #dh7;c77#e77;,d7 is amended by striking
 ,january #a1 #bjbd and inserting       

,january #a1 #bjbc4  7f7 ,cost recovery 
for qualified facilities1 qualified     
property1 and grid improvement property 
7#a7 ,in general ,section               
#afh7;e77#c77;,b7 is amended-- 7,a7 in  
clause 7vi77,,iii71 by striking and at  
the end1  7,b7 in clause 7vii71 by      
striking the period at the end and      
inserting 1 and1 and  7,c7 by inserting 
after clause 7vii7 the following3       
7viii7 any qualified facility 7as       
defined in section #de,u7b77#a77;,a771  
any qualified property 7as defined in   
subsection 7b77#b7 of section #dh;,d71  
or any grid improvement property 7as    
defined in subsection 7c77#a77;,b7 of   
such section74  4  7#b7 ,alternative    
system ,the table contained in section  
#afh7;g77#c77;,b7 is amended by         
inserting after the item relating to    
subparagraph 7,b77vii7 the following new
 item3  7,b77viii7#cj  4  7#c7          
,effective date ,the amendments made by 
this subsection shall apply to          
facilities and property placed in       

service after ,december #ca1 #bjbb4     
,,ii ,incentives for ,clean             
,transportation  #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,v4      
,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-- 7,a7 for any    
transportation fuel sold during any     
calendar year ending before ,january #a1
 #bjcj1 and amount equal to the product 
of--  7i7 #a4jj per gallon 7or gallon   
equivalent7 with respect to any         
transportation fuel which is-- 7,i7     
produced by the taxpayer at a qualified 
facility1 and  7,,ii7 sold by the       
taxpayer in a manner described in       
paragraph 7#c71 and  7ii7 the emissions 
factor for such fuel 7as determined     
under subsection 7b771 and  7,b7 for any

 transportation fuel sold during any    
calendar year beginning after ,december 
#ca1 #bjbi1 an amount equal to the      
applicable amount 7as determined under  
paragraph 7#b77 per gallon 7or gallon   
equivalent7 with respect to any         
transportation fuel which is-- 7i7      
produced by the taxpayer at a qualified 
facility1 and  7ii7 sold by the taxpayer
 in a manner described in paragraph     
7#c74  7#b7 ,applicable amount ,for     
purposes of paragraph 7#a77;,b71 the    
applicable amount with respect to any   
transportation fuel shall be an amount  
equal to #a4jj increased by #aj cents   
for every kilogram of ,,co#b;e per      
mm,b,t,u 7or fraction thereof7 for which
 the emissions rate for such fuel is    
below zero4  7#c7 ,sale ,for purposes of
 paragraph 7#a71 the transportation fuel
 is sold in a manner described in this  
paragraph if such fuel is sold by the   
taxpayer to an unrelated person-- 7,a7  
for use by such person in the production
 of a fuel mixture1  7,b7 for use by    

such person in a trade or business1 or  
7,c7 who sells such fuel at retail to   
another person and places such fuel in  
the fuel tank of such other person4     
7#d7 ,rounding ,if any amount determined
 under paragraph 7#a77;,a7 or 7#b7 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   
,calculation  7i7 ,in general ,the      
emissions factor of a transportation    
fuel shall be an amount equal to the    
quotient of--  7,i7 an amount equal to--
 7aa7 the baseline emissions rate1 minus
  7bb7 the emissions rate for such fuel1
 divided by  7,,ii7 the baseline        
emissions rate4  7,b7 ,baseline         
emissions rate ,for purposes of this    
paragraph1 the term baseline emissions  
rate means-- 7i7 for any calendar year  
ending before ,january #a1 #bjbf1 #ge   
kilograms of ,,co#b;e per mm,b,t,u1     
7ii7 for calendar years #bjbf and #bjbg1
 #ej kilograms of ,,co#b;e per mm,b,t,u1

 and  7iii7 for calendar years #bjbh and
 #bjbi1 #be kilograms of ,,co#b;e per   
mm,b,t,u4  7,c7 ,establishment of       
emissions rate ,the ,secretary1 in      
consultation with the ,administrator of 
the ,environmental ,protection ,agency1 
shall establish the 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 shall use for
 purposes of this section4  7,d7        
,rounding of emissions rate ,the        
,secretary may round the emissions rates
 under subparagraph 7,b7 to the nearest 
multiple of #e kilograms of ,,co#b;e per
 mm,b,t,u1 except that1 in the case of  
an emissions rate that is less than #b4e
 kilograms of ,,co#b;e per mm,b,t,u1 the

 ,secretary may round such rate to zero4
  7,e7 ,provisional emissions rate  7i7 
,in general ,in the case of any         
transportation fuel for which an        
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     
emissions rate with respect to such     
fuel4  7ii7 ,establishment of           
provisional and final 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 emissions 
rate for such fuel which a taxpayer     
shall 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 emissions rate for
 such fuel4  7,f7 ,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     
emissions rate ,the ,secretary shall    
publish a table that sets forth the     
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 #bjbc1 the #a4jj amount 
in paragraphs 7#a77;,a77i7 and 7#b7 of  
subsection 7a7 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,u7c71 determined by     
substituting calendar year #bjbb 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 the transportation of    
persons and goods annually in the       
,united ,states are equal to or less    
than #be percent of the greenhouse gas  
emissions from the transportation of    
persons and goods in the ,united ,states
 during calendar year #bjba1 the amount 
of the clean fuel production credit     
under this section shall be determined  
by substituting the applicable amount   
7as determined under paragraph          
7#b77;,a77 for the dollar amount in     
paragraphs 7#a77;,a77i7 and 7#b7 of     
subsection 7a74  7#b7 ,applicable dollar

 amount  7,a7 ,in general ,the          
applicable amount for any taxable year  
described in subparagraph 7,b7 shall be 
an amount equal to the product of--  7i7
 the dollar amount in paragraphs        
7#a77;,a77i7 and 7#b7 of subsection 7a7 
7as adjusted by subsection 7c771        
multiplied by  7ii7 the phase-out       
percentage under subparagraph 7,b74     
7,b7 ,phase-out percentage ,the         
phase-out percentage under this         
subparagraph is equal to-- 7i7 for any  
taxable year beginning in the first     
calendar year following the calendar    
year in which the determination         
described in paragraph 7#a7 is made1    
#ajj percent1  7ii7 for any taxable year
 beginning in the second calendar year  
following such determination year1 #ge  
percent1  7iii7 for any taxable year    
beginning in the third calendar year    
following such determination year1 #ej  
percent1 and  7iv7 for any taxable year 
beginning in any calendar year          
subsequent to the year described in     

clause 7iii71 #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 dioxide 7as determined
 based on relative global warming       
potential74  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 ,the term    
qualified facility means a facility--   
7i7 used for the production of          
transportation fuels1 and  7ii7 which-- 
7,i7 satisfies the requirements under   
subparagraph 7,b71 and  7,,ii7 with     
respect to the construction of such     
facility1 satisfies the requirements    
under section #fja of the ,clean ,energy
 for ,america ,act4  7,b7 ,wage         

requirements ,the requirements described
 in this subparagraph with respect to   
any facility are that the taxpayer shall
 ensure that any laborers and mechanics 
employed by contractors and             
subcontractors in-- 7i7 the construction
 of such facility1 or  7ii7 for any year
 described in subsection 7a77#a7 for    
which the credit under this section is  
claimed1 the alteration or repair of    
such facility1  shall be paid wages at  
rates not less than the prevailing rates
 for construction1 alteration1 or repair
 of a similar character in the locality 
as determined by the ,secretary of      
,labor1 in accordance with subchapter   
,,iv of chapter #ca of title #dj1       
,united ,states ,code4  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  
#bjbc1 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#cc71 by  
striking plus at the end1  7,b7 in      
paragraph 7#cd71 by striking the period 
at the end and inserting 1 plus1 and    
7,c7 by adding at the end the following 
new paragraph3  7#ce7 the clean fuel    
production credit determined under      

section #de,v7a74  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,v4 ,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,v71 after section           
#fdbf7;b77#d77;,a7714  7c7 ,effective   
date ,the amendments made by this       
section shall apply to transportation   
fuel produced after ,december #ca1      
#bjbb4  #bjb4 ,transportation           
electrification  7a7 ,alternative motor 
vehicle credit for fuel cell motor      
vehicles  7#a7 ,in general ,section     
#cj;,b7k7 is amended--  7,a7 by striking
 paragraph 7#a71 and  7,b7 by           
redesignating paragraphs 7#b7 through   
7#d7 as paragraphs 7#a7 through 7#c71   
respectively4  7#b7 ,phase-out ,section 
#cj;,b is amended by adding at the end  

the following3  7l7 ,credit phase-,out  
for new qualified fuel cell motor       
vehicles  7#a7 ,in general ,following a 
determination by the ,secretary1 in     
consultation with the ,secretary of     
,transportation1 that total annual sales
 of new qualified fuel cell motor       
vehicles and new qualified plug-in      
electric drive motor vehicles 7as       
defined in section #cj;,d7d77#a77 in the
 ,united ,states are greater than #ej   
percent of total annual sales of new    
passenger vehicles in the ,united       
,states1 the amount of the new qualified
 fuel cell motor vehicle credit under   
this section for any new qualified fuel 
cell motor vehicle purchased 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 7b7 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      
vehicle purchased during the first      
calendar year following the calendar    
year in which the determination         
described in paragraph 7#a7 is made1    
#ajj percent1  7,b7 for a vehicle       
purchased during the second calendar    
year following such determination year1 
#ge percent1  7,c7 for a vehicle        
purchased during the third calendar year
 following such determination year1 #ej 
percent1 and  7,d7 for a vehicle        
purchased during any calendar year      
subsequent to the year described in     
subparagraph 7,c71 #j percent4  4  7#c7 
,effective date ,the amendments made by 
this subsection shall apply to property 
purchased after ,december #ca1 #bjba4   
7b7 ,alternative fuel vehicle refueling 
property credit  7#a7 ,extension and    
modification  7,a7 ,in general ,section 
#cj;,c is amended-- 7i7 in subsection   
7b7--  7,i7 by striking with respect to 
all qualified alternative fuel vehicle  
refueling property placed in service by 

the taxpayer during the taxable year at 
a location and inserting with respect to
 any single item of qualified           
alternative fuel vehicle refueling      
property placed in service by the       
taxpayer during the taxable year1 and   
7,,ii7 in paragraph 7#a71 by striking   
#cj1jjj and inserting #bjj1jjj1  7ii7 in
 subsection 7e71 by adding at the end   
the following3  7#g7 ,wage requirements 
7,a7 ,in general ,the term qualified    
alternative fuel vehicle refueling      
property shall not include any property 
which fails to satisfy--  7i7 the       
requirements under subparagraph 7,b71   
and  7ii7 with respect to the           
construction of such property1 the      
requirements under section #fja of the  
,clean ,energy for ,america ,act4  7,b7 
,requirements ,the requirements         
described in this subparagraph with     
respect to any property are that the    
taxpayer shall ensure that any laborers 
and mechanics employed by contractors   
and subcontractors in the construction  

of such property are to be paid wages at
 rates not less than the prevailing     
rates for construction of a similar     
character in the locality as determined 
by the ,secretary of ,labor1 in         
accordance with subchapter ,,iv of      
chapter #ca of title #dj1 ,united       
,states ,code4  1 and  7iii7 in         
subsection 7g71 by striking ,december   
#ca1 #bjba and inserting ,december #ca1 
#bjbb4  7,b7 ,effective date ,the       
amendments made by this paragraph shall 
apply to property placed in service     
after ,december #ca1 #bjba4  7#b7       
,additional modification  7,a7 ,in      
general ,section #cj;,c1 as amended by  
paragraph 7#a71 is amended--  7i7 in    
subsection 7c77#b7-- 7,i7 in            
subparagraph 7,a71 by striking one or   
more and all that follows through the   
period and inserting the following3     
hydrogen or any transportation fuel for 
which the clean fuel production credit  
is allowed under section #de,v with     
respect to the production and sale of   

such fuel41 and  7,,ii7 by striking     
subparagraph 7,b7 and inserting the     
following3  7,b7 ,any mixture--  7i7    
which consists of-- 7,i7 any            
transportation fuel--  7aa7 for which   
the clean fuel production credit is     
allowed under section #de,v with respect
 to the production and sale of such     
fuel1 and  7bb7 which is a liquid fuel1 
and  7,,ii7 any taxable fuel 7as defined
 in section #djhc7;a77#a771 and  7ii7 at
 least #bj percent of the volume of     
which consists of fuel described in     
clause 7i77,i74  1 and  7ii7 by striking
 subsection 7g7 and inserting the       
following3  7g7 ,credit phase-,out  7#a7
 ,in general ,following a determination 
by the ,secretary under section         
#de,v7d77#a7 that the greenhouse gas    
emissions from the transportation of    
persons and goods annually in the       
,united ,states are equal to or less    
than #be percent of the greenhouse gas  
emissions from the transportation of    
persons and goods in the ,united ,states

 during calendar year #bjba1 the amount 
of the credit under this section for any
 qualified alternative fuel vehicle     
refueling 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 allowed under subsection 7a7 7as 
determined without regard to this       
subsection71 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 any    
property placed in service during the   
first calendar year following the       
calendar year in which the determination
 described in paragraph 7#a7 is made1   
#ajj percent1  7,b7 for any property    
placed in service during the second     
calendar year following such            
determination year1 #ge percent1  7,c7  
for any property placed in service      
during the third calendar year following
 such determination year1 #ej percent1  

and  7,d7 for any property placed in    
service during any calendar year        
subsequent to the year described in     
subparagraph 7,c71 #j percent4  4  7c7  
,electric vehicles  7#a7 #b- and        
#c-wheeled plug-in electric vehicles    
7,a7 ,in general ,section               
#cj;,d7g77#c77;,e7 is amended by        
striking clause 7ii7 and inserting the  
following3  7ii7 after ,december #ca1   
#bjad4  4  7,b7 ,effective date ,the    
amendments made by this paragraph shall 
apply to vehicles acquired after        
,december #ca1 #bjbj4  7#b7 ,elimination
 on limitation on number of vehicles    
eligible for credit  7,a7 ,in general   
,section #cj;,d is amended by striking  
subsection 7e74  7,b7 ,effective date   
,the amendment made by this paragraph   
shall apply to vehicles sold after the  
date of the enactment of this ,act4     
7#c7 ,making new qualified plug-in      
electric drive motor vehicle credit     
refundable for individuals  7,a7 ,in    
general ,the ,internal ,revenue ,code of

 #aihf is amended-- 7i7 by redesignating
 section #cj;,d as section #cf;,c1 and  
7ii7 by moving section #cf;,c 7as so    
redesignated7 from subpart ,a of part   
,,iv of subchapter ,a of chapter #a to  
the location immediately before section 
#cg in subpart ,c of part ,,iv of       
subchapter ,a of chapter #a4  7,b7      
,conforming amendments  7i7 ,section    
#cf;,c1 as amended by paragraph 7#b7 and
 as redesignated and moved by           
subparagraph 7,a71 is amended--  7,i7 in
 subsection 7a71 by striking ,there     
shall be allowed and inserting ,in the  
case of an individual1 there shall be   
allowed1  7,,ii7 by striking subsection 
7c71  7,,iii7 by redesignating          
subsections 7d71 7f71 and 7g7 as        
subsections 7c71 7d71 and 7e71          
respectively1  7,,iv7 in subsection 7d71
 as so redesignated--  7aa7 by striking 
7determined without regard to subsection
 7c77 each place it appears1 and  7bb7  
by striking paragraph 7#c71 and  7,v7 in
 subsection 7e77#c77;,b71 as so         

redesignated1 by striking subsection    
7d77#a7 and inserting subsection        
7c77#a74  7ii7 ,subsection 7l77#a7 of   
section #cj;,b1 as added by subsection  
7a77#b71 is amended by striking section 
#cj;,d7d77#a7 and inserting section     
#cf;,c7c77#a74  7iii7 ,paragraph 7#cg7  
of section #ajaf7;a7 is amended by      
striking section #cj;,d7f77#a7 and      
inserting section #cf;,c7d77#a74  7iv7  
,section #feja7m7 is amended by striking
 #cj;,d7e77#d7 and inserting            
#cf;,c7d77#f74  7v7 ,section            
#aff7;b77#e77;,a77ii7 of title #bc1     
,united ,states ,code1 is amended by    
striking section #cj;,d7d77#a7 and      
inserting section #cf;,c7c77#a74  7vi7  
,the table of sections for subpart ,c of
 part ,,iv of subchapter ,a of chapter  
#a is amended by inserting after the    
item relating to section #cf;,b the     
following new item3  ,sec4 #cf;,c4 ,new 
qualified plug-in electric drive motor  
vehicles4  4  7,c7 ,effective date ,the 
amendments made by this paragraph shall 

apply to vehicles acquired after        
,december #ca1 #bjba4  7#d7 ,,vin       
requirement  7,a7 ,in general ,section  
#cf;,c7c77#a71 as redesignated and moved
 by paragraph 7#c71 is amended--  7i7 in
 subparagraph 7,e71 by striking and at  
the end1  7ii7 in subparagraph 7,f77ii71
 by striking the period at the end and  
inserting 1 and1 and  7iii7 by adding at
 the end the following3  7,g7 for which 
the taxpayer has provided the vehicle   
identification number on the return of  
tax for the taxable year4  4  7,b7      
,mathematical or clerical error ,section
 #fbac7;g77#b7 is amended-- 7i7 in      
subparagraph 7,p71 by striking and at   
the end1  7ii7 in subparagraph 7,q71 by 
striking the period at the end and      
inserting 1 and1 and  7iii7 by adding at
 the end the following3  7,r7 an        
omission of a correct vehicle           
identification number required under    
section #cf;,c7c77#a77;,g7 7relating to 
credit for new qualified plug-in        
electric drive motor vehicles7 to be    

included on a return4  4  7,c7          
,effective date ,the amendments made by 
this paragraph shall apply to vehicles  
acquired after ,december #ca1 #bjba4    
7#e7 ,phase-out ,section #cf;,c1 as     
redesignated1 moved1 and amended by the 
preceding paragraphs of this subsection1
 is amended by adding at the end the    
following3  7f7 ,credit phase-,out  7#a7
 ,in general ,following a determination 
by the ,secretary1 in consultation with 
the ,secretary of ,transportation1 that 
total annual sales of new qualified fuel
 cell motor vehicles 7as defined in     
section #cj;,b7b77#c77 and new qualified
 plug-in electric drive motor vehicles  
in the ,united ,states are greater than 
#ej percent of total annual sales of new
 passenger vehicles in the ,united      
,states1 the amount of the credit       
allowed under this section for any new  
qualified plug-in electric drive motor  
vehicle sold or qualified #b- or        
#c-wheeled plug-in electric vehicle     
acquired 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      
vehicle sold or acquired during the     
first calendar year following the       
calendar year in which the determination
 described in paragraph 7#a7 is made1   
#ajj percent1  7,b7 for a vehicle sold  
or acquired during the second calendar  
year following such determination year1 
#ge percent1  7,c7 for a vehicle sold or
 acquired during the third calendar year
 following such determination year1 #ej 
percent1 and  7,d7 for a vehicle sold or
 acquired during any calendar year      
subsequent to the year described in     
subparagraph 7,c71 #j percent4  4  7#f7 
,qualified commercial electric vehicles 
7,a7 ,in general ,subpart ,d of part    

,,iv of subchapter ,a of chapter #a1 as 
amended by sections #aja and #bja1 is   
amended by adding at the end the        
following new section3  #de,w4 ,credit  
for qualified commercial electric       
vehicles  7a7 ,in general ,for purposes 
of section #ch1 the qualified commercial
 electric vehicle credit for any taxable
 year is an amount equal to the sum of  
the credit amounts determined under     
subsection 7b7 with respect to each     
qualified commercial electric vehicle   
placed in service by the taxpayer during
 the taxable year4  7b7 ,per vehicle    
amount  7#a7 ,in general ,the amount    
determined under this subsection with   
respect to any qualified commercial     
electric vehicle shall be equal the     
lesser of--  7,a7 #cj percent of the    
basis of such vehicle1 or  7,b7 the     
incremental cost of such vehicle4  7#b7 
,incremental cost  7,a7 ,in general ,for
 purposes of paragraph 7#a77;,b71 the   
incremental cost of any qualified       
commercial electric vehicle is an amount

 equal to the excess of the             
manufacturer's suggested retail price   
for such vehicle over such price for a  
comparable vehicle4  7,b7 ,comparable   
vehicle ,for purposes of this paragraph1
 the term comparable vehicle means1 with
 respect to any qualified commercial    
electric vehicle1 any vehicle which is  
powered solely by a gasoline or diesel  
internal combustion engine and which is 
comparable in weight1 size1 and use to  
such vehicle4  7c7 ,qualified commercial
 electric vehicle ,for purposes of this 
section1 the term qualified commercial  
electric vehicle means any vehicle      
which-- 7#a7 meets the requirements of  
subparagraphs 7,a71 7,b71 7,c71 7,d71   
and 7,g7 of section #cf;,c7c77#a71  7#b7
 is primarily propelled by an electric  
motor which draws electricity from a    
battery which-- 7,a7 has a capacity of  
not less than #aj kilowatt hours1 and   
7,b7 is capable of being recharged from 
an external source of electricity1 and  
7#c7 is of a character subject to the   

allowance for depreciation4  7d7        
,special rules  7#a7 ,in general ,rules 
similar to the rules under subsections  
7d7 of section #cf;,c shall apply for   
purposes of this section4  7#b7         
,property used by tax-exempt entity ,in 
the case of a vehicle the use of which  
is described in paragraph 7#c7 or 7#d7  
of section #ej7;b7 and which is not     
subject to a lease1 the person who sold 
such vehicle to the person or entity    
using such vehicle shall be treated as  
the taxpayer that placed such vehicle in
 service1 but only if such person       
clearly discloses to such person or     
entity in a document the amount of any  
credit allowable under subsection 7a7   
with respect to such vehicle4  7e7      
,credit phase-,out  7#a7 ,in general    
,following a determination by the       
,secretary1 in consultation with the    
,secretary of ,transportation1 that     
total annual sales of qualified         
commercial electric vehicles in the     
,united ,states are greater than #ej    

percent of total annual sales of new    
commercial vehicles in the ,united      
,states1 the amount of the credit       
allowed under this section for any      
qualified commercial electric vehicle   
acquired 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     
vehicle acquired during the first       
calendar year following the calendar    
year in which the determination         
described in paragraph 7#a7 is made1    
#ajj percent1  7,b7 for a vehicle       
acquired during the second calendar year
 following such determination year1 #ge 
percent1  7,c7 for a vehicle acquired   
during the third calendar year following
 such determination year1 #ej percent1  

and  7,d7 for a vehicle acquired during 
any calendar year subsequent to the year
 described in subparagraph 7,c71 #j     
percent4  4  7,b7 ,conforming amendments
  7i7 ,section #ch7;b7 is amended by    
striking paragraph 7#cj7 and inserting  
the following3  7#cj7 the qualified     
commercial electric vehicle credit      
determined under section #de,w1  4  7ii7
 ,the table of sections for subpart ,d  
of part ,,iv of subchapter ,a of chapter
 #a1 as amended by sections #aja and    
#ajb1 is amended by adding at the end   
the following new item3  ,sec4 #de,w4   
,credit for qualified commercial        
electric vehicles4  4  7,c7 ,effective  
date ,the amendments made by this       
paragraph shall apply to vehicles       
acquired after ,december #ca1 #bjba4    
#bjc4 ,temporary extensions of existing 
fuel incentives  7a7 ,second generation 
biofuel producer credit  7#a7 ,in       
general ,section #dj7;b77#f77;,j77i7 is 
amended by striking #bjbb and inserting 
#bjbc4  7#b7 ,effective date ,the       

amendments made by this subsection shall
 apply to qualified second generation   
biofuel production after ,december #ca1 
#bjba4  7b7 ,credit for alternative fuel
 mixtures  7#a7 ,in general ,section    
#fdbf is amended-- 7,a7 in subsection   
7d7--  7i7 in paragraph 7#b77;,d71 by   
striking liquefied1 and  7ii7 in        
paragraph 7#e71 by striking #bjba and   
inserting #bjbb1 and  7,b7 in subsection
 7e7-- 7i7 in paragraph 7#b71 by        
inserting nonliquid hydrogen or before a
 fuel described1 and  7ii7 in paragraph 
7#c71 by striking #bjba and inserting   
#bjbb4  7#b7 ,effective date ,the       
amendments made by this subsection shall
 apply to fuel sold or used after       
,december #ca1 #bjba4  7c7 ,biodiesel1  
biodiesel mixtures1 and alternative     
fuels  7#a7 ,in general ,section        
#fdbg7;e77#f77;,c7 is amended by        
striking #bjba and inserting #bjbb4     
7#b7 ,effective date ,the amendments    
made by this subsection shall apply to  
fuel sold or used after ,december #ca1  

#bjba4  ,,iii ,incentives for ,energy   
,efficiency  #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-- 7,a7 in  
the case of a qualified residence       
described in subclause 7,i7 of          
subsection 7c77#c77;,a77iii71 #b1ejj1   
and  7,b7 in the case of a qualified    
residence described in subclause 7,,ii7 
of such subsection1 #e1jjj4  7#b7       

,adjustment for inflation  7,a7 ,in     
general ,in the case of a taxable year  
beginning after #bjbb1 the dollar       
amounts in paragraph 7#a7 shall each be 
increased by an amount equal to--  7i7  
such dollar amount1 multiplied by  7ii7 
the cost-of-living adjustment determined
 under section #a7;f77#c7 for the       
calendar year1 determined by            
substituting calendar year #bjba for    
calendar year #bjaf in subparagraph     
7,a77ii7 thereof4  7,b7 ,rounding ,if   
any amount as increased under           
subparagraph 7,a7 is not a multiple of  
#ajj1 such amount shall be rounded to   
the nearest multiple of #ajj4  7c7      
,definitions ,for purposes of this      
section3  7#a7 ,construction ,the term  
construction does not include           
substantial reconstruction or           
rehabilitation4  7#b7 ,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#c7 ,qualified residence   
7,a7 ,in general ,the term qualified    
residence means a dwelling unit-- 7i7   
located in the ,united ,states1  7ii7   
the construction of which is            
substantially completed after the date  
of the enactment of this section1  7iii7
 which is certified as satisfying the   
requirements for new residential        
construction under--  7,i7 the ,energy  
,star program 7or any successor program1
 as determined by the ,secretary71 as in
 effect on ,january #a of the year in   
which construction of the dwelling unit 
begins1 or  7,,ii7 the ,zero ,energy    
,ready ,home program 7or any successor  
program1 as determined by the           
,secretary71 as in effect on ,january #a
 of the year in which construction of   
the dwelling unit begins1 and  7iv7     
which satisfies the requirements under  
subparagraph 7,b74  7,b7 ,wage          
requirements ,the requirements described

 in this subparagraph with respect to   
any dwelling unit are that the eligible 
contractor shall ensure that any        
laborers and mechanics employed by such 
contractor and subcontractors in the    
construction of such dwelling unit shall
 be paid wages at rates not less than   
the prevailing rates for construction of
 a similar character in the locality as 
determined by the ,secretary of ,labor1 
in accordance with subchapter ,,iv of   
chapter #ca of title #dj1 ,united       
,states ,code4  7d7 ,certification ,a   
certification described in this section 
shall be made-- 7#a7 by a third party   
which is accredited by a certification  
program approved by the ,secretary1 in  
consultation with the ,secretary of     
,energy1 and  7#b7 in accordance with-- 
7,a7 any applicable rules under the     
,energy ,star or ,zero ,energy ,ready   
,home programs1 as in effect on the date
 on which construction of the dwelling  
unit begins1 and  7,b7 guidance         
prescribed by the ,secretary1 in        

consultation with the ,secretary of     
,energy4  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 #bjba4  #cjb4 ,energy    
efficient home improvement credit  7a7  
,in general ,section #be;,c is amended  
to read as follows3  #be;,c4 ,energy    
efficient home improvement 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  7#a7 ,in general ,for  
any qualified property1 the applicable  
qualified property amount shall be equal
 to the lesser of-- 7,a7 #cj percent of 
the amount paid or incurred by the      
individual for such qualified property  
7including any expenditures for labor   
costs properly allocable to the onsite  
preparation1 assembly1 or original      
installation of such property71 or  7,b7
 #fjj4  7#b7 ,adjustment for inflation  
7,a7 ,in general ,in the case of a      
taxable year beginning after #bjbb1 the 
dollar amount in paragraph 7#a77;,b7    
shall be increased by an amount equal   

to--  7i7 such dollar amount1 multiplied
 by  7ii7 the cost-of-living adjustment 
determined under section #a7;f77#c7 for 
the calendar year1 determined by        
substituting calendar year #bjba for    
calendar year #bjaf in subparagraph     
7,a77ii7 thereof4  7,b7 ,rounding ,if   
any amount as increased under           
subparagraph 7,a7 is not a multiple of  
#aj1 such amount shall be rounded to the
 nearest multiple of #aj4  7c7          
,qualified property  7#a7 ,in general   
,the term qualified property means a    
furnace1 boiler1 condensing water       
heater1 central air conditioning unit1  
heat pump1 biomass property1 or building
 envelope improvement which--  7,a7     
except in the case of a building        
envelope improvement1 meets or exceeds  
the requirements of the highest         
efficiency tier 7not including any      
advanced tier7 established by the       
,consortium for ,energy ,efficiency     
which are in effect at the time that the
 property is placed in service1  7,b7 is

 installed according to applicable ,air 
,conditioning ,contractors of ,america  
,quality ,installation 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  7#b7 ,special rules
 for certain heat pumps  7,a7           
,air-source heat pumps ,in the case of  
any air-source heat pump which satisfies
 the requirements under paragraph 7#a71 
subsection 7b77#a77;,b7 shall be applied
 by substituting #hjj for #fjj4  7,b7   
,ground source heat pump  7i7 ,in       
general ,in the case of any qualified   
geothermal heat pump property which     
satisfies the requirements under        
subparagraphs 7,b7 through 7,d7 of      
paragraph 7#a7--  7,i7 subsection       
7b77#a77;,b7 shall be applied by        
substituting #aj1jjj for #fjj1 and      

7,,ii7 subsection 7a77#b7 shall not     
apply4  7ii7 ,qualified geothermal heat 
pump property ,for purposes of this     
subparagraph1 the term qualified        
geothermal heat pump property means any 
equipment which-- 7,i7 uses the ground  
or ground water as a thermal energy     
source to heat a dwelling unit located  
in the ,united ,states and used as a    
residence by the taxpayer or as a       
thermal energy sink to cool such        
dwelling unit1 and  7,,ii7 meets the    
requirements of the ,energy ,star       
program which are in effect at the time 
that the expenditure for such equipment 
is made4  7#c7 ,special rule for        
insulation ,in the case of any building 
envelope improvement described in       
subsection 7d77#b77;,a7 which satisfies 
the requirements under paragraph 7#a71  
subsection 7b77#a77;,b7 shall not apply4
  7d7 ,other definitions  7#a7 ,biomass 
property  7,a7 ,in general ,for purposes
 of this section1 the term biomass      
property means any property which-- 7i7 

uses the burning of biomass fuel to heat
 a dwelling unit or to heat water for   
use in a dwelling unit1 and  7ii7 using 
the higher heating value1 has a thermal 
efficiency of not less than #ge percent4
  7,b7 ,biomass fuel ,for purposes of   
subparagraph 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  7#b7 ,building
 envelope improvement ,for purposes of  
this section1 the term building envelope
 improvement means-- 7,a7 any insulation
 material or system which--  7i7 is     
specifically and primarily designed to  
reduce the heat loss or gain of a       
dwelling unit when installed in or on   
such dwelling unit1 and  7ii7 meets the 
prescriptive criteria for such material 
or system established by the            
,international ,energy ,conservation    
,code1 as such ,code 7including         
supplements7 is in effect on ,january #a

 of the calendar year in which such     
material or system is installed1 and    
7,b7 exterior doors and windows         
7including skylights7 which received the
 most efficient certification under     
applicable ,energy ,star program        
requirements which are in effect on     
,january #a of the calendar year in     
which the property is placed in service4
  7#c7 ,manufactured homes included ,for
 purposes of this section1 the term     
dwelling unit includes a manufactured   
home which conforms to ,federal         
,manufactured ,home ,construction and   
,safety ,standards 7part #cbhj of title 
#bd1 ,code of ,federal ,regulations74   
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 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  #be;,c4     
,energy efficient home improvement      
credit4  4  7c7 ,effective date ,the    
amendments made by this section shall   
apply to qualified property placed in   
service after ,december #ca1 #bjba4     
#cjc4 ,enhancement of energy efficient  
commercial buildings deduction  7a7 ,in 
general ,section #agi;,d is amended--   
7#a7 by striking subsection 7b7 and     
inserting the following3  7b7 ,maximum  
amount of deduction  7#a7 ,in general   
,the deduction under subsection 7a7 with
 respect to any building for any taxable
 year shall not exceed the excess 7if   
any7 of--  7,a7 the product of-- 7i7 the
 applicable dollar value1 and  7ii7 the 
square footage of the building1 over    
7,b7 the aggregate amount of the        
deductions under subsection 7a7 with    
respect to the building for all prior   
taxable years4  7#b7 ,applicable dollar 
value ,for purposes of paragraph        

7#a77;,a77i71 the applicable dollar     
value shall be an amount equal to #b4ej 
increased 7but not above #e4jj7 by #j4aj
 for each percentage point by which the 
total annual energy and power costs for 
the building are certified to be reduced
 by a percentage greater than #be       
percent4  1  7#b7 in subsection         
7c77#a7--  7,a7 in subparagraph         
7,c77iii71 by striking and at the end1  
7,b7 in subparagraph 7,d7--  7i7 by     
striking #ej percent and inserting #be  
percent1 and  7ii7 by striking the      
period at the end and inserting 1 and1  
and  7,c7 by adding at the end the      
following3  7,e7 which satisfies the    
requirements--  7i7 under subsection    
7d77#g71 and  7ii7 with respect to the  
construction of such property1 the      
requirements under section #fja of the  
,clean ,energy for ,america ,act4  1    
7#c7 in subsection 7d7-- 7,a7 by        
striking paragraph 7#a71  7,b7 by       
striking paragraph 7#d7 and inserting   
the following3  7#d7 ,allocation of     

deduction  7,a7 ,in general ,in the case
 of energy efficient commercial building
 property installed on or in property   
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  
paragraph1 the term eligible entity     
means-- 7i7 a ,federal1 ,state1 or local
 government or a political subdivision  
thereof1  7ii7 an ,indian tribe 7as     
defined in section #de;,a7c77#f771 or   
7iii7 an organization described in      
section #eja7;c7 and exempt from tax    
under section #eja7;a74  1 and  7,c7 by 
adding at the end the following3  7#g7  
,wage requirements ,the requirements    
described in this paragraph with respect
 to any property are that the taxpayer  
shall ensure that any laborers and      

mechanics employed by contractors and   
subcontractors in the construction of   
such property shall be paid wages at    
rates not less than the prevailing rates
 for construction of a similar character
 in the locality as determined by the   
,secretary of ,labor1 in accordance with
 subchapter ,,iv of chapter #ca of title
 #dj1 ,united ,states ,code4  1  7#d7 by
 striking subsection 7f71 and  7#e7 in  
subsection 7g7--  7,a7 by striking      
#bjbj1 each dollar amount in subsection 
7b7 or subsection 7d77#a77;,a7 and      
inserting #bjbb1 each dollar amount in  
subsection 7b77#b71  7,b7 in paragraph  
7#b71 by striking #bjai and inserting   
#bjba1 and  7,c7 in the flush matter at 
the end1 by striking a multiple of #a   
cent shall be rounded to the nearest    
cent and inserting a multiple of #aj    
cents shall be rounded to the nearest   
multiple of #aj cents4  7b7 ,conforming 
amendments ,section #agi;,d1 as amended 
by subsection 7a71 is amended--  7#a7 in
 subsection 7c77#a77;,d7-- 7,a7 by      

striking subsection 7d77#f7 and         
inserting subsection 7d77#e71 and  7,b7 
by striking subsection 7d77#b7 and      
inserting subsection 7d77#a71  7#b7 in  
subsection 7d7--  7,a7 by redesignating 
paragraphs 7#b7 through 7#f7 as         
paragraphs 7#a7 through 7#e71           
respectively1  7,b7 in paragraph 7#b71  
as so redesignated1 by striking         
paragraph 7#b7 and inserting paragraph  
7#a71 and  7,c7 in paragraph 7#d71 as so
 redesignated1 by striking paragraph    
7#c77;,b77iii7 and inserting paragraph  
7#b77;,b77iii71  7#c7 by redesignating  
subsections 7g7 and 7h7 as subsections  
7f7 and 7g71 respectively1 and  7#d7 in 
subsection 7g77#b71 as so redesignated1 
by striking or 7d77#a77;,a74  7c7       
,effective date ,the amendments made by 
this section shall apply to any property
 placed in service after ,december #ca1 
#bjba4  #cjd4 ,enhancement of energy    
credit for geothermal heat pumps  7a7   
,in general ,section #dh7;a7 is         
amended-- 7#a7 in paragraph             

7#b77;,a77i77,,iii71 by striking        
paragraph 7#c77;,a77ii7 and inserting   
clause 7ii7 or 7vii7 of paragraph       
7#c77;,a71 and  7#b7 in paragraph       
7#c77;,a77vii71 by striking but only    
with respect to property the            
construction of which begins before     
,january #a1 #bjbd14  7b7 ,effective    
date ,the amendments made by this       
section shall apply to property the     
construction of which begins after      
,december #ca1 #bjba4  ,,iv ,clean      
electricity and fuel bonds  #dja4 ,clean
 energy bonds  7a7 ,in general ,part    
,,iv of subchapter ,a of chapter #a is  
amended by inserting after subpart ,g   
the following new subpart3  ,h ,clean   
energy bonds  ,sec4 #ed4 ,clean energy  
bonds4  #ed4 ,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 ,in the case of a    
qualified facility described in         
subsection 7e77#d7 of section #de,v1 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 the       
anticipated average emissions rate for  
all transportation fuel produced by such

 facility bears to the baseline         
emissions rate 7as determined under     
subsection 7b77#a77;,b7 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 ,published      
emissions rules ,rules similar to the   
rules of section #de,v7b7 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
 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-- 7i7 #a or more qualified          
facilities1 or  7ii7 grid improvement   
property 7as defined in section         
#dh;,d7c77#a77;,b771  7,b7 the bond is  
issued by--  7i7 a governmental body1   
7ii7 a public power provider1 or  7iii7 
a cooperative electric company1 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 #fdca1  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    
7e7 ,definitions ,in this section3 7#a7 
,available project proceeds ,the term   
available project proceeds means--  7,a7
 the excess of-- 7i7 the proceeds from  
the sale of an issue1 over  7ii7 the    
issuance costs financed by the issue 7to

 the extent that such costs do not      
exceed #b percent of such proceeds71 and
  7,b7 the proceeds from any investment 
of the excess described in subparagraph 
7,a74  7#b7 ,cooperative electric       
company ,the term cooperative electric  
company means a mutual or cooperative   
electric company described in section   
#eja7;c77#ab7 or section                
#acha7;a77#b77;,c74  7#c7 ,governmental 
body ,the term governmental body means  
any ,state or ,indian tribal government1
 or any political subdivision thereof4  
7#d7 ,interest payment date ,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  7#e7 ,public 
power provider ,the term public power   
provider means a ,state utility with a  
service obligation1 as such terms are   
defined in section #bag of the ,federal 
,power ,act 7as in effect on the date of
 the enactment of this paragraph74  7#f7
 ,qualified facility ,the term qualified

 facility means a facility which-- 7,a7 
is described in section                 
#de,u7b77#a77;,a7 and satisfies the     
requirements under clause 7iv7 of such  
section1 or  7,b7  7i7 is described in  
subsection 7e77#d7 of section #de,v and 
satisfies the requirements under        
subparagraph 7,b7 of such subsection1   
and  7ii7 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 section      
#de,v74  7f7 ,credit phase-,out  7#a7   
,electrical production and energy       
storage property ,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 7e77#f77;,a7 or 
any property described in subsection    
7d77#a77;,a77ii71 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 the production of    
electricity in the ,united ,states are  
equal to or less than the percentage    
specified in section #de,u7d77#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 7e77#f77;,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   
the transportation of persons and goods 

annually in the ,united ,states are     
equal to or less than the percentage    
specified in section #de,v7d77#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#a7 or 7#b7 is 
made1 #ajj percent1  7,b7 for any bond  
issued during the second calendar year  
following such determination year1 #ge  
percent1  7,c7 for any bond issued      
during the third calendar year following
 such determination year1 #ej 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 ,s corporations and       
partnerships ,in the case of a clean    
energy bond held by an ,s corporation or
 partnership1 the allocation of the     
credit allowed by this section to the   
shareholders of such corporation or     
partners of such partnership shall be   
treated as a distribution4  7#c7 ,bonds 
held by real estate investment trusts   
,if any clean energy bond is held by a  
real estate investment trust1 the credit
 determined under subsection 7a7 shall  
be allowed to beneficiaries of such     
trust 7and any gross income included    
under paragraph 7#a7 with respect to    
such credit shall be distributed to such
 beneficiaries7 under procedures        

prescribed by the ,secretary4  7#d7     
,credits may be stripped ,under         
regulations prescribed by the           
,secretary-- 7,a7 ,in general ,there may
 be a separation 7including at issuance7
 of the ownership of a clean energy bond
 and the entitlement to the credit under
 this section with respect to such bond4
 ,in case of any such separation1 the   
credit under this section shall be      
allowed to the person who on the credit 
allowance date holds the instrument     
evidencing the entitlement to the credit
 and not to the holder of the bond4     
7,b7 ,certain rules to apply ,in the    
case of a separation described in       
subparagraph 7,a71 the rules of section 
#abhf shall apply to the clean energy   
bond as if it were a stripped bond and  
to the credit under this section as if  
it were a stripped coupon4  7h7         
,regulations ,the ,secretary may        
prescribe such regulations and other    
guidance as may be necessary or         
appropriate to carry out this section   

and section #fdca4  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  #fdca4  
,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 section 
#ed7;b77 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
 #ed7;d77 issued as part of an issue if 
the issuer1 in lieu of any credit       
allowed under section #ed7;a7 with      
respect to such bond1 makes an          
irrevocable election to have this       
section apply4  4  7c7 ,conforming      
amendments  7#a7 ,the table of subparts 
for part ,,iv of subchapter ,a of       
chapter #a is amended by inserting after
 the item relating to subpart ,g the    
following3 ,subpart ,h--,clean ,energy  
,bonds4  7#b7 ,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      

#fdca4 ,credit for qualified clean      
energy bonds allowed to issuer4  4  7#c7
 ,subparagraph 7,a7 of section          
#fbaa7;b77#d7 is amended by striking and
 #fdbh;,a and inserting #fdbh;,a1 and   
#fdca4  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 #fdca 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 ,december #ca1 #bjbb4  ,v  
,termination of certain fossil fuel     
provisions  #eja ,termination of        
provisions relating to oil1 gas1 and    
other materials  7a7 ,amortization of   
geological and geophysical expenditures 
,section #afg7;h7 is amended by adding  
at the end the following new paragraph3 
7#f7 ,termination ,this subsection shall
 not apply to any expenses paid or      
incurred during any taxable year        
beginning after the date of the         
enactment of the ,clean ,energy for     
,america ,act4  4  7b7 ,alaska natural  
gas pipelines ,subparagraph 7,b7 of     
section #afh7;i77#af7 is amended to read
 as follows3  7,b7 is--  7i7  7,i7      
placed in service after ,december #ca1  
#bjac1 or  7,,ii7 treated as placed in  
service on ,january #a1 #bjad1 if the   

taxpayer who places such system in      
service before ,january #a1 #bjad1      
elects such treatment1 and  7ii7 placed 
in service before the end of the        
calendar year in which the ,clean       
,energy for ,america ,act is enacted4  4
  7c7 ,natural gas gathering line       
,paragraph 7#ag7 of section #afh7;i7 is 
amended--  7#a7 in subparagraph 7,a71 by
 inserting which are placed in service  
before the end of the calendar year in  
which the ,clean ,energy for ,america   
,act is enacted and are after pipe1     
equipment1 and appurtenances1 and  7#b7 
in subparagraph 7,b71 by inserting which
 are placed in service before the end of
 the calendar year in which the ,clean  
,energy for ,america ,act is enacted and
 are after pipe1 equipment1 and         
appurtenances4  7d7 ,repeal of deduction
 for tertiary injectants ,subsection 7c7
 of section #aic is amended-- 7#a7 in   
paragraph 7#a71 by striking or at the   
end1  7#b7 in paragraph 7#b71 by        
striking the period at the end and      

inserting 1 or1 and  7#c7 by inserting  
at the end the following3  7#c7 which is
 paid or incurred during any taxable    
year beginning after the date of the    
enactment of the ,clean ,energy for     
,america ,act4  4  7e7 ,intangible      
drilling and development costs          
,subsection 7c7 of section #bfc is      
amended to read as follows3  7c7        
,intangible drilling and development    
costs in the case of oil and gas wells  
and geothermal wells  7#a7 ,in general  
,notwithstanding subsection 7a71 and    
except as provided in subsection 7i71   
regulations shall be prescribed by the  
,secretary under this subtitle          
corresponding to the regulations which  
granted the option to deduct as expenses
 intangible drilling and development    
costs in the case of oil and gas wells  
and which were recognized and approved  
by the ,congress in ,house ,concurrent  
,resolution #ej1 ,seventy-ninth         
,congress4 ,such regulations shall also 
grant the option to deduct as expenses  

intangible drilling and development     
costs in the case of wells drilled for  
any geothermal deposit 7as defined in   
section #fac7;e77#b77 to the same extent
 and in the same manner as such expenses
 are deductible in the case of oil and  
gas wells4 ,this subsection shall not   
apply with respect to any costs to which
 any deduction is allowed under section 
#ei7;e7 or #bia4  7#b7 ,exclusion  7,a7 
,in general ,this subsection shall not  
apply to amounts paid or incurred by a  
taxpayer with regard to any oil or gas  
well in any taxable year beginning after
 the date of the enactment of the ,clean
 ,energy for ,america ,act4  7,b7       
,amortization of excluded amounts ,the  
amount not allowable as a deduction for 
any taxable year by reason of           
subparagraph 7,a7 shall be allowable as 
a deduction ratably over the #fj-month  
period beginning with the month in which
 the costs are paid or incurred4 ,for   
purposes of section #abed1 any deduction
 under this subparagraph shall be       

treated as a deduction under this       
subsection4  4  7f7 ,percentage         
depletion  7#a7 ,percentage depletion of
 oil and gas wells1 coal1 lignite1 and  
oil shale ,section #fac is amended--    
7,a7 in subsection 7a71 by striking     
7#ajj percent in the case of oil and gas
 properties71  7,b7 in subsection 7b7-- 
7i7 by striking paragraph 7#b7 and      
inserting the following3  7#b7 #ae      
percent ,if from deposits in the ,united
 ,states1 gold1 silver1 copper1 and iron
 ore4  1  7ii7 in paragraph 7#d71 by    
striking coal1 lignite11  7iii7 in      
paragraph 7#e71 by inserting 7except oil
 shale7 after ,clay and shale1 and  7iv7
 in paragraph 7#f77;,a71 by striking    
7except shale described in paragraph    
7#b77;,b7 or 7#e77 and inserting 7except
 oil shale and shale described in       
paragraph 7#e771  7,c7 in subsection    
7c77#d7--  7i7 by striking subparagraphs
 7,a7 and 7,h71  7ii7 by inserting and  
at the end of subparagraph 7,g71  7iii7 
by redesignating subparagraphs 7,b7     

through 7,g7 as subparagraphs 7,a7      
through 7,f71 respectively1 and  7iv7 by
 redesignating subparagraph 7,i7 as     
subparagraph 7,g71  7,d7 in subsection  
7d71 by striking ,except as provided in 
section #fac;,a1 in the case of and     
inserting ,in the case of1 and  7,e7 in 
subsection 7e77#b71 by striking or      
section #fac;,a4  7#b7 ,oil and gas     
wells ,section #fac;,a is amended by    
adding at the end the following new     
subsection3  7f7 ,termination ,this     
section shall not apply to any taxable  
year beginning after the date of the    
enactment of the ,clean ,energy for     
,america ,act4  4  7#c7 ,effective date 
,the amendments made by this subsection 
shall apply to taxable years beginning  
after the date of the enactment of this 
,act4  7g7 ,termination of capital gains
 treatment for royalties from coal  7#a7
 ,in general ,subsection 7c7 of section 
#fca is amended--  7,a7 by striking coal
 7including lignite71 or iron ore and   
inserting iron ore1  7,b7 by striking   

coal or iron ore each place it appears  
and inserting iron ore1  7,c7 by        
striking iron ore or coal each place it 
appears and inserting iron ore1 and     
7,d7 by striking coal or in the heading4
  7#b7 ,conforming amendment ,the       
heading of section #fca of the ,internal
 ,revenue ,code of #aihf is amended by  
striking 1 coal14  7#c7 ,effective date 
,the amendments made by this subsection 
shall apply to taxable years beginning  
after the date of the enactment of this 
,act4  7h7 ,enhanced oil recovery credit
  7#a7 ,in general ,subpart ,d of part  
,,iv of subchapter ,a of chapter #a is  
amended by striking section #dc4  7#b7  
,conforming amendments  7,a7 ,section   
#ch7;b7 is amended by striking paragraph
 7#f74  7,b7 ,section #de,q is amended--
 7i7 by striking section                
#dc7;b77#c77;,b7 each place it appears  
and inserting section #dc7;b77#c77;,b7  
7as in effect on the day before the date
 of the enactment of the ,clean ,energy 
for ,america ,act71 and  7ii7 in        

subsection 7e77#b71 by inserting 7as in 
effect on the day before the date of the
 enactment of the ,clean ,energy for    
,america ,act7 after section            
#dc7;c77#b74  7,c7 ,section #aif7;c7 is 
amended--  7i7 by striking paragraph    
7#e71 and  7ii7 by redesignating        
paragraphs 7#f7 through 7#ad7 as        
paragraphs 7#e7 through 7#ac71          
respectively4  7#c7 ,clerical amendment 
,the table of sections for subpart ,d of
 part ,,iv of subchapter ,a of chapter  
#a is amended by striking the item      
relating to section #dc4  7#d7          
,effective date ,the amendments made by 
this subsection shall apply to taxable  
years beginning after the date of the   
enactment of this ,act4  7i7 ,credit for
 producing oil and gas from marginal    
wells  7#a7 ,in general ,subpart ,d of  
part ,,iv of subchapter ,a of chapter #a
 is amended by striking section #de;,i4 
7#b7 ,conforming amendment ,section     
#ch7;b7 is amended by striking paragraph
 7#ai74  7#c7 ,clerical amendment ,the  

table of sections for subpart ,d of part
 ,,iv of subchapter ,a of chapter #a is 
amended by striking the item relating to
 section #de;,i4  7#d7 ,effective date  
,the amendments made by this subsection 
shall apply to taxable years beginning  
after the date of the enactment of this 
,act4  7j7 ,qualifying advanced coal    
project credit  7#a7 ,in general        
,subpart ,e of part ,,iv of subchapter  
,a of chapter #a is amended by striking 
section #dh;,a4  7#b7 ,conforming       
amendments  7,a7 ,section #df1 as       
amended by section #ajb of this ,act1 is
 amended by striking paragraph 7#c7 and 
redesignating paragraphs 7#d7 through   
7#g7 as paragraphs 7#c7 through 7#f71   
respectively4  7,b7 ,section            
#di7;a77#a77;,c71 as amended by section 
#ajb of this ,act1 is amended by        
striking clause 7iii7 and redesignating 
clauses 7iv7 through 7vii7 as clauses   
7iii7 through 7vi71 respectively4  7,c7 
,section #ej7;a77#b77;,e71 as amended by
 section #ajb of this ,act1 is amended  

by striking #dh;,a7b77#c714  7#c7       
,clerical amendment ,the table of       
sections for subpart ,e of part ,,iv of 
subchapter ,a of chapter #a is amended  
by striking the item relating to section
 #dh;,a4  7#d7 ,effective date ,the     
amendments made by this subsection shall
 apply to taxable years beginning after 
the date of the enactment of this ,act4 
7k7 ,qualifying gasification project    
credit  7#a7 ,in general ,subpart ,e of 
part ,,iv of subchapter ,a of chapter #a
 is amended by striking section #dh;,b4 
7#b7 ,conforming amendments  7,a7       
,section #df1 as amended by this ,act1  
is amended by striking paragraph 7#c7   
and by redesignating paragraphs 7#d71   
7#e71 and 7#f7 as paragraphs 7#c71 7#d71
 and 7#e71 respectively4  7,b7 ,section 
#di7;a77#a77;,c71 as amended by this    
,act1 is amended by striking clause     
7iii7 and redesignating clauses 7iv7    
through 7vi7 as clauses 7iii7 through   
7v74  7,c7 ,section #ej7;a77#b77;,e71 as
 amended by this ,act1 is amended by    

striking #dh;,b7b77#c714  7#c7 ,clerical
 amendment ,the table of sections for   
subpart ,e of part ,,iv of subchapter ,a
 of chapter #a is amended by striking   
the item relating to section #dh;,b4    
7#d7 ,effective date ,the amendments    
made by this subsection shall apply to  
taxable years beginning after the date  
of the enactment of this ,act4  7l7     
,reinstatement of treatment of foreign  
base company oil related income as      
foreign base company income  7#a7 ,in   
general ,section #ied7;a7 is amended by 
striking and at the end of paragraph    
7#b71 by striking the period at the end 
of paragraph 7#c7 and inserting 1 and1  
and by adding at the end the following  
new paragraph3  7#d7 the foreign base   
company oil related income for the      
taxable year 7determined under          
subsection 7g7 and reduced as provided  
in subsection 7b77#e774  4  7#b7        
,foreign base company oil related income
 ,section #ied is amended by inserting  
before subsection 7h7 the following new 

subsection3  7g7 ,foreign base company  
oil related income ,for purposes of this
 section--  7#a7 ,in general ,except as 
otherwise provided in this subsection1  
the term foreign base company oil       
related income means foreign oil related
 income 7within the meaning of          
paragraphs 7#b7 and 7#c7 of section     
#ijg7;c77 other than income derived from
 a source within a foreign country in   
connection with-- 7,a7 oil or gas which 
was extracted from an oil or gas well   
located in such foreign country1 or     
7,b7 oil1 gas1 or a primary product of  
oil or gas which is sold by the foreign 
corporation or a related person for use 
or consumption within such country or is
 loaded in such country on a vessel or  
aircraft as fuel for such vessel or     
aircraft4  ,such term shall not include 
any foreign personal holding company    
income 7as defined in subsection 7c774  
7#b7 ,paragraph 7#a7 applies only where 
corporation has produced #a1jjj barrels 
per day or more  7,a7 ,in general ,the  

term foreign base company oil related   
income shall not include any income of a
 foreign corporation if such corporation
 is not a large oil producer for the    
taxable year4  7,b7 ,large oil producer 
,for purposes of subparagraph 7,a71 the 
term large oil producer means any       
corporation if1 for the taxable year or 
for the preceding taxable year1 the     
average daily production of foreign     
crude oil and natural gas of the related
 group which includes such corporation  
equaled or exceeded #a1jjj barrels4     
7,c7 ,related group ,the term related   
group means a group consisting of the   
foreign corporation and any other person
 who is a related person with respect to
 such corporation4  7,d7 ,average daily 
production of foreign crude oil and     
natural gas ,for purposes of this       
paragraph1 the average daily production 
of foreign crude oil or natural gas of  
any related group for any taxable year  
7and the conversion of cubic feet of    
natural gas into barrels7 shall be      

determined under rules similar to the   
rules of section #fac;,a except that    
only crude oil or natural gas from a    
well located outside the ,united ,states
 shall be taken into account4  4  7#c7  
,conforming amendments  7,a7 ,section   
#ieb7;c77#a77;,b77iii7 is amended by    
redesignating subclauses 7,i7 through   
7,,iv7 as subclauses 7,,ii7 through     
7,v71 respectively1 and by inserting    
before subclause 7,,ii7 7as             
redesignated7 the following new         
subclause3  7,i7 foreign base company   
oil related income1  4  7,b7 ,section   
#ied7;b7 is amended--  7i7 in paragraph 
7#d71 by inserting at the end the       
following new sentence3 ,the preceding  
sentence shall not apply to foreign base
 company oil-related income described in
 subsection 7a77#d741  7ii7 in paragraph
 7#e71 by striking and the foreign base 
company services income and inserting   
the foreign base company services       
income1 and the foreign base company oil
 related income1 and  7iii7 by adding at

 the end the following new paragraph3   
7#f7 ,foreign base company oil related  
income not treated as another kind of   
base company income ,income of a        
corporation which is foreign base       
company oil related income shall not be 
considered foreign base company income  
of such corporation under paragraph 7#b7
 or 7#c7 of subsection 7a74  4  7#d7    
,effective date ,the amendments made by 
this subsection shall apply to taxable  
years of foreign corporations beginning 
after the date of the enactment of this 
,act1 and to taxable years of ,united   
,states shareholders with or within     
which such taxable years of foreign     
corporations end4  7m7 ,inclusion of    
foreign oil and gas extraction income in
 tested income for purpose of           
determining global intangible low-,taxed
 income  7#a7 ,in general ,section      
#iea;,a7c77#b77;,a77i7 is amended by    
inserting and at the end of subclause   
7,,iii71 by striking and at the end of  
subclause 7,,iv7 and inserting over1 and

 by striking subclause 7,v74  7#b7      
,effective date ,the amendments made by 
this subsection shall apply to taxable  
years of foreign corporations beginning 
after the date of the enactment of this 
,act1 and to taxable years of ,united   
,states shareholders in which or with   
which such tax years of foreign         
corporations end4  7n7 ,repeal of       
corporate income tax exemption for      
publicly traded partnerships with       
qualifying income and gains from        
activities relating to fossil fuels     
7#a7 ,in general ,section #ggjd7;d77#a7 
is amended--  7,a7 in subparagraph 7,e71
 by striking 7including pipelines       
transporting gas1 oil1 or products      
thereof71 and  7,b7 in the flush matter 
at the end1 by inserting or any coal1   
gas1 oil1 or products thereof before the
 period4  7#b7 ,effective date ,the     
amendments made by this subsection shall
 apply to taxable years beginning after 
the date of the enactment of this ,act4 
,,vi ,workforce development requirements

  #fja4 ,use of qualified apprentices   
7a7 ,in general ,all contractors and    
subcontractors engaged in the           
performance of construction1 alteration1
 or repair work on any applicable       
project shall1 subject to subsection    
7b71 ensure that not less than #ae      
percent of the total labor hours of such
 work be performed by qualified         
apprentices4  7b7                       
,apprentice-to-,journeyworker ratio ,the
 requirement under subsection 7a7 shall 
be subject to any applicable            
requirements for                        
apprentice-to-journeyworker ratios of   
the ,department of ,labor or the        
applicable ,state apprenticeship agency4
  7c7 ,participation ,each contractor   
and subcontractor who employs #d or more
 individuals to perform construction1   
alteration1 or repair work on an        
applicable project shall employ #a or   
more qualified apprentices to perform   
such work4  7d7 ,exception              
,notwithstanding any other provision in 

this section1 this section shall not    
apply in the case of a taxpayer who--   
7#a7 demonstrates a lack of availability
 of qualified apprentices in the        
geographic area of the construction1    
alteration1 or repair work2 and  7#b7   
makes a good faith effort1 and its      
contractors and subcontractors make a   
good faith effort1 to comply with the   
requirements of this section4  7e7      
,definitions ,in this section3  7#a7    
,applicable project ,the term applicable
 project means1 with respect to-- 7,a7  
subsection 7e77#g77;,a77ii7 of section  
#cj;,c of the ,internal ,revenue ,code  
of #aihf1  7,b7 subsection              
7f77#h77;,a77ii7 of section #de,q of    
such ,code1  7,c7 subsection            
7b77#a77;,a77iv77,,ii7 of section #de,u 
of such ,code1  7,d7 subsections        
7b77#c77;,a77iv77,,ii7 and              
7c77#a77;,b77ii7 of section #dh;,d of   
such ,code1 and  7,e7 subsection        
#i;c77#a77;,e77ii7 of section #agi;,d of
 such ,code1  any property1 equipment1  

or facility for which a credit is       
allowed under such sections4  7#b7      
,labor hours ,the term labor hours--    
7,a7 means the total number of hours    
devoted to the performance of           
construction1 alteration1 or repair work
 by employees of the contractor or      
subcontractor2 and  7,b7 excludes any   
hours worked by-- 7i7 foremen2  7ii7    
superintendents2  7iii7 owners2 or  7iv7
 persons employed in a bona fide        
executive1 administrative1 or           
professional capacity 7within the       
meaning of those terms in part #eda of  
title #bi1 ,code of ,federal            
,regulations74  7#c7 ,qualified         
apprentice ,the term qualified          
apprentice means an individual who is an
 employee of the contractor or          
subcontractor and who is participating  
in a registered apprenticeship program1 
as defined in section #caca7;e77#c77;,b7
 of the ,internal ,revenue ,code of     
#aihf4