,,ii ,calendar ,no4 #gh #aagth          
,,congress  #ast ,session  ,s4 #baah    
,,in ,,the ,,senate ,,of ,,the ,,united 
,,states  ,june #ag1 #bjba,mr4 ,wyden   
7for himself1 ,ms4 ,stabenow1 ,mr4      
,menendez1 ,mr4 ,carper1 ,mr4 ,cardin1  
,mr4 ,brown1 ,mr4 ,bennet1 ,mr4 ,casey1 
,mr4 ,whitehouse1 and ,ms4 ,cortez      
,masto7 introduced the following bill2  
which was read the first time  ,june    
#ba1 #bjba,read the second time and     
placed on the calendar  ,a ,,bill  ,to  
amend the ,internal ,revenue ,code of   
#aihf to provide tax incentives for     
increased investment in clean energy1   
and for other purposes4  #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 ,credit for 
production of clean hydrogen4,sec4 #bjd4
 ,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--,termination of     
certain fossil fuel provisions,sec4     
#dja4 ,termination of provisions        
relating to oil1 gas1 and other         
materials4,sec4 #djb4 ,modification of  
certain provisions relating to oil1 gas1
 and other fossil fuels4,,title         
,v--,workforce development              
requirements,sec4 #eja4 ,use of         
qualified apprentices4,,title           
,,vi--,miscellaneous,sec4 #fja4         
,adjustment of qualifying advanced      
energy project credit4,sec4 #fjb4       
,issuance of exempt facility bonds for  
qualified carbon dioxide capture        
facilities4,sec4 #fjc4 ,limitation on   
importation of certain energy equipment 
and components4,sec4 #fjd4 ,elimination 
of negative effects on small businesses 
and certain individual taxpayers4  ,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 subject to subsection 7g77#g71 #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
 owned by the taxpayer-- 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 maximum net output equal
 to or greater than #a megawatt1 which--
 7,i7 subject to subparagraph 7,b7 of   
paragraph 7#c71 satisfies the           
requirements under subparagraph 7,a7 of 
such paragraph1 and  7,,ii7 with respect
 to the construction of such facility1  
satisfies the requirements under section
 #eja 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 ,the term        
qualified facility shall include either 

of the following in connection with a   
facility described in subparagraph 7,a7 
7without regard to clause 7ii7 of such  
subparagraph7 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 #de,q1 #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 ,secretary and the     
,administrator of the ,environmental    
,protection ,agency 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 annually    

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 ,secretary and the ,administrator
 of the ,environmental ,protection      
,agency1 a taxpayer which owns such     
facility may file a petition with the   
,secretary and the ,administrator of the
 ,environmental ,protection ,agency 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   
,secretary and the ,administrator of the
 ,environmental ,protection ,agency     
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  
7,a7 ,in general ,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 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  7,b7 ,failure to satisfy
 wage requirements  7i7 ,in general ,in 
the case of any taxpayer which fails to 
satisfy the requirement under           
subparagraph 7,a7 with respect to any   
facility for any year during the period 
described in paragraph 7#a77;,b71 the   
amount of the credit which would 7but   
for this subparagraph7 be allowable     
under this section with respect to such 
facility for such year shall be reduced 
to zero4  7ii7 ,correction and penalty  
,clause 7i7 shall not apply with respect
 to any failure by the taxpayer to      

satisfy the requirement under           
subparagraph 7,a7 with respect to any   
facility for any year if1 with respect  
to any laborer or mechanic who was paid 
wages at a rate below the rate described
 in such subparagraph for any period    
during such year1 such taxpayer-- 7,i7  
makes payment to such laborer or        
mechanic in an amount equal to the sum  
of-- 7aa7 an amount equal to the        
difference between-- 7,,aa7 the amount  
of wages paid to such laborer or        
mechanic during such period1 and 7,,bb7 
the amount of wages required to be paid 
to such laborer or mechanic pursuant to 
such subparagraph during such period1   
plus  7bb7 interest on the amount       
determined under item 7aa7 at the       
underpayment rate established under     
section #ffba for the period described  
in such item1 and  7,,ii7 makes payment 
to the ,secretary of a penalty in an    
amount equal to the product of-- 7aa7   
#e1jjj1 multiplied by  7bb7 the total   
number of laborers and mechanics who    

were paid wages at a rate below the rate
 described in subparagraph 7,a7 for any 
period during such year4  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 the ,secretary of ,energy1  
and the ,administrator of the           
,environmental ,protection ,agency      
determine 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 the construction of 
which begins during any calendar year   
subsequent to the year described in     

subparagraph 7,c71 #j percent4  7e7     
,definitions ,for purposes of 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 ,secretary and  
the ,administrator of the ,environmental
 ,protection ,agency 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  7#g7 ,increase 
in credit in certain cases  7,a7        
,nascent clean energy technology  7i7   
,in general ,in the case of any         
qualified facility which generates      
electricity using a nascent clean energy
 technology1 for purposes of determining
 the amount of the credit under         
subsection 7a7 with respect to any      
electricity produced by the taxpayer at 
such facility using such technology     
during the taxable year1 the amount     
under paragraph 7#a7 of such subsection 
shall be increased by an amount equal to
 #aj percent of the amount otherwise in 
effect under such paragraph 7without    
application of subparagraph 7,b7 or     
7,c774  7ii7 ,definition ,for purposes  
of this subparagraph1 the term nascent  
clean energy technology means any       
technology or method used for the       

production of electricity which1 in the 
calendar year preceding the calendar    
year in which construction of the       
qualified facility began1 achieved a    
market penetration level of less than #c
 percent4  7iii7 ,market penetration    
level ,for purposes of this             
subparagraph1 the term market           
penetration level means1 with respect to
 any calendar year1 the amount equal to 
the greater of-- 7,i7 the amount        
7expressed as a percentage7 equal to the
 quotient of-- 7aa7 the sum of all      
electricity produced 7expressed in      
terawatt hours7 from the technology or  
method used for the production of       
electricity by all electricity          
generating facilities in the ,united    
,states during such calendar year 7as   
determined by the ,secretary on the     
basis of data reported by the ,energy   
,information ,administration71 divided  
by  7bb7 the total domestic power sector
 electricity production 7expressed in   
terawatt hours7 for such calendar year1 

or  7,,ii7 the amount determined under  
this clause for the preceding calendar  
year with respect to such technology or 
method4  7,b7 ,energy communities  7i7  
,in general ,in the case of any         
qualified facility which is located in  
an energy community1 for purposes of    
determining the amount of the credit    
under subsection 7a7 with respect to any
 electricity produced by the taxpayer at
 such facility during the taxable year1 
the amount under paragraph 7#a7 of such 
subsection shall be increased by an     
amount equal to #aj percent of the      
amount otherwise in effect under such   
paragraph 7without application of       
subparagraph 7,a7 or 7,c774  7ii7       
,energy community ,for purposes of this 
subparagraph1 the term energy community 
means a census tract-- 7,i7 in which--  
7aa7 for the calendar year in which     
construction of the qualified facility  
began-- 7,,aa7 not less than #e percent 
of the employment in such tract is      
within the oil and gas sector1 or 7,,bb7

 an industrial facility is located which
 is mandated to report emissions of     
greenhouse gases under the ,greenhouse  
,gas ,reporting ,program established    
under part #ih of title #dj1 ,code of   
,federal ,regulations1  7bb7 after      
,december #ca1 #aiii1 a coal mine has   
closed1 or  7cc7 after ,december #ca1   
#bjji1 a coal-fired electric generating 
unit has been retired1 or  7,,ii7 which 
is immediately adjacent to any census   
tract described in subclause 7,i74  7,c7
 ,domestic content  7i7 ,in general ,in 
the case of any qualified facility which
 satisfies the requirement under clause 
7ii77,i71 for purposes of determining   
the amount of the credit under          
subsection 7a7 with respect to any      
electricity produced by the taxpayer at 
such facility during the taxable year1  
the amount under paragraph 7#a7 of such 
subsection shall be increased by an     
amount equal to #aj percent of the      
amount otherwise in effect under such   
paragraph 7without application of       

subparagraph 7,a7 or 7,b774  7ii7       
,requirement  7,i7 ,in general ,subject 
to clause 7iii71 the requirement        
described in this subclause with respect
 to any qualified facility is that1     
prior to the end of the taxable year in 
which such facility is placed in        
service1 the taxpayer shall certify to  
the ,secretary that1 any steel1 iron1 or
 manufactured product used in the       
construction of such facility was       
produced in the ,united ,states4  7,,ii7
 ,steel and iron ,in the case of steel  
or iron1 subclause 7,i7 shall be applied
 in a manner consistent with section    
#ffa4e7;b7 of title #di1 ,code of       
,federal ,regulations4  7,,iii7         
,manufactured product ,for purposes of  
subclause 7,i71 a manufactured product  
shall be deemed to have been            
manufactured in the ,united ,states if  
not less than #ee percent of the total  
cost of the components of such product  
is attributable to components which are 
mined1 produced1 or manufactured in the 

,united ,states4  7iii7 ,international  
agreements ,this subparagraph shall be  
applied in a manner which is consistent 
with the obligations of the ,united     
,states under international agreements4 
7#h7 ,credit reduced for grants1        
tax-exempt bonds1 subsidized energy     
financing1 and other credits ,rules     
similar to the rules under section      
#de7;b77#c7 shall apply for purposes of 
this section4  7h7 ,election for direct 
payment  7#a7 ,in general ,the          
applicable percentage of 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  7,a7 ,in  
general ,an election under paragraph    
7#a7 shall be made prior to the date on 

which the qualified facility is placed  
in service and in such manner as the    
,secretary may prescribe4 ,such         
election1 once made1 shall-- 7i7 be     
irrevocable with respect to such        
qualified facility for the period       
described in subsection 7b77#a77;,b71   
and  7ii7 for any taxable year during   
such period1 reduce the amount of the   
credit which would 7but for this        
subsection7 be allowable under this     
section with respect to such qualified  
facility for such taxable year to zero4 
7,b7 ,additional information ,for       
purposes of an election under paragraph 
7#a71 the ,secretary may require such   
information as the ,secretary deems     
necessary for purposes of preventing    
duplication1 fraud1 or any improper     
payments under this subsection4  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  7#d7       
,certain entities treated as taxpayers  
,in the case of an election under this  
subsection-- 7,a7 any ,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       
subsection71  7,b7 any mutual or        
cooperative electric company described  
in section #eja7;c77#ab7 or section     
#acha7;a77#b77;,c71 or  7,c7 an ,indian 

tribal government 7as defined in section
 #aci;,e7c77#a771  shall be treated as a
 taxpayer for purposes of this          
subsection and determining the amount of
 any credit under subsection 7a74  7#e7 
,excess payment  7,a7 ,in general ,in   
the case of any payment made to a       
taxpayer under this subsection which the
 ,secretary determines constitutes an   
excessive payment1 the tax imposed on   
such taxpayer by chapter #a for the     
taxable year in which such determination
 is made shall be increased by an amount
 equal to the sum of-- 7i7 the amount of
 the excessive payment1 plus  7ii7 an   
amount equal to #bj percent of the      
excessive payment4  7,b7 ,reasonable    
cause ,subparagraph 7,a77ii7 shall not  
apply if the taxpayer demonstrates to   
the satisfaction of the ,secretary that 
the excessive payment resulted from     
reasonable cause4  7,c7 ,definition ,for
 purposes of this paragraph1 the term   
excessive payment means1 with respect to
 a qualified facility for any taxable   

year1 an amount equal to the excess of--
 7i7 the amount of the payment made to  
the taxpayer under this subsection with 
respect to such facility for such       
taxable year1 over  7ii7 the amount of  
the credit which 7without application of
 this subsection7 is otherwise allowable
 under this section with respect to such
 facility for such taxable year4  7#f7  
,applicable percentage ,for purposes of 
paragraph 7#a7-- 7,a7 ,in general ,in   
the case of any qualified facility which
 satisfies the requirements under       
subsection 7g77#g77;,c77ii7 with respect
 to the construction of such facility1  
the applicable percentage shall be #ajj 
percent4  7,b7 ,phased domestic content 
requirement ,subject to subparagraph    
7,c71 in the case of any qualified      
facility which fails to satisfy the     
requirements under such subsection with 
respect to the construction of such     
facility1 the applicable percentage     
shall be-- 7i7 if construction of such  
facility began before ,january #a1      

#bjbd1 #ajj percent1  7ii7 if           
construction of such facility began in  
calendar year #bjbd1 #ij percent1  7iii7
 if construction of such facility began 
in calendar year #bjbe1 #he percent1 and
  7iv7 if construction of such facility 
began after ,december #ca1 #bjbe1 #j    
percent4  7,c7 ,exception ,if the       
,secretary determines that1 for purposes
 of application of the requirements     
under subsection 7g77#g77;,c77ii7 with  
respect to the construction of the      
qualified facility-- 7i7 their          
application would be inconsistent with  
the public interest1  7ii7 such         
materials and products are not produced 
in the ,united ,states in sufficient and
 reasonably available quantities and of 
a satisfactory quality1 or  7iii7       
inclusion of domestic material will     
increase the cost of the construction of
 the qualified facility by more than #be
 percent1  the applicable percentage    
shall be #ajj percent4  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 ,increase in   
credit rate in certain cases  7,a7      
,disadvantaged and energy communities   
7i7 ,in general ,in the case of-- 7,i7  
any energy storage property or any      
qualified investment with respect to a  
qualified facility 7with the exception  
of any such facility described in       

section #de,u7b77#b77;,b77-- 7aa7 which 
is placed in service within a           
disadvantaged community or an energy    
community 7as defined in section        
#de,u7g77#g77;,b77ii771 and  7bb7 has a 
maximum net output of less than #e      
megawatts1 or  7,,ii7 any qualified     
property which is not described in      
subclause 7,i7 and is placed in service 
within an energy community1  for        
purposes applying paragraph 7#a7 with   
respect to such property or investment1 
the percentage under subparagraph 7,a7  
of such paragraph 7or1 in the case of a 
microgrid1 subparagraph 7,b77i7 of such 
paragraph71 shall be increased by #aj   
percentage points4  7ii7 ,disadvantaged 
community ,for purposes of this         
subparagraph1 the term disadvantaged    
community has the same meaning given the
 term low-income community in section   
#de;,d7e77#a71 as applied by            
substituting #fj percent for #hj percent
 each place it appears in subparagraph  
7,b7 thereof4  7,b7 ,nascent clean      

energy technology ,in the case of any   
qualified facility which generates      
electricity using a nascent clean energy
 technology 7as defined in section      
#de,u7g77#g77;,a77ii771 for purposes    
applying paragraph 7#a7 with respect to 
any qualified investment with respect to
 such facility1 the percentage under    
subparagraph 7,a7 of such paragraph 7or1
 in the case of a microgrid1            
subparagraph 7,b77i7 of such paragraph71
 shall be increased by #aj percentage   
points4  7,c7 ,domestic content  7i7 ,in
 general ,in the case of any qualified  
investment with respect to a qualified  
facility or with respect to grid        
improvement property which satisfies the
 requirement under clause 7ii77,i71 for 
purposes of applying paragraph 7#a7 with
 respect to such qualified investment1  
the percentage under subparagraph 7,a7  
of such paragraph 7or1 in the case of a 
qualified investment with respect to a  
microgrid1 subparagraph 7,b77i7 of such 
paragraph71 shall be increased by #aj   

percentage points4  7ii7 ,requirements  
7,i7 ,in general ,the requirement       
described in this subclause with respect
 to any qualified investment with       
respect to a qualified facility or with 
respect to grid improvement property is 
satisfied if the taxpayer certifies to  
the ,secretary that-- 7aa7 in the case  
of a qualified investment with respect  
to a qualified facility1 any property   
used at such facility is composed of    
steel1 iron1 or manufactured products   
which were produced in the ,united      
,states1 and  7bb7 in the case of a     
qualified investment with respect to any
 grid improvement property1 such        
property is composed of steel1 iron1 or 
manufactured products which were        
produced in the ,united ,states4  7,,ii7
 ,steel and iron ,in the case of steel  
or iron1 subclause 7,i7 shall be applied
 in a manner consistent with section    
#ffa4e7;b7 of title #di1 ,code of       
,federal ,regulations4  7,,iii7         
,manufactured product ,for purposes of  

subclause 7,i71 a manufactured product  
shall be deemed to have been            
manufactured in the ,united ,states if  
not less than #ee percent of the total  
cost of the components of such product  
is attributable to components which are 
mined1 produced1 or manufactured in the 
,united ,states4  7iii7 ,international  
agreements ,this subparagraph shall be  
applied in a manner which is consistent 
with the obligations of the ,united     
,states under international agreements4 
7,d7 ,maximum credit rate               
,notwithstanding any adjustment or      
increase pursuant to this paragraph1 the
 percentage under subparagraph 7,a7 or  
7,b77i7 of paragraph 7#a7 shall not     
exceed #ej percent4  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 sum of-- 7,a7 the basis of any  
qualified property placed in service by 

the taxpayer during such taxable year   
which is part of a qualified facility1  
plus  7,b7 the amount of any            
expenditures which are-- 7i7 paid or    
incurred by the taxpayer for qualified  
interconnection property-- 7,i7 in      
connection with a qualified facility    
which has a maximum net output of not   
greater than #e megawatts1 and  7,,ii7  
placed in service during the taxable    
year of the taxpayer1 and  7ii7 properly
 chargeable to capital account of the   
taxpayer4  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 and  7,c7  
7i7 the construction1 reconstruction1 or
 erection of which is completed by the  

taxpayer1 or  7ii7 which is acquired by 
the taxpayer if the original use of such
 property 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 subparagraph 
7,b77ii77 is not greater than zero1 and 
7iv7 in the case of any facility with a 
maximum net output equal to or greater  
than #a megawatt1 which-- 7,i7 satisfies
 the requirements of subparagraph       
7,b77iii71 and  7,,ii7 with respect to  
the construction of such facility1      
satisfies the requirements under section
 #eja 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;,c7 shall apply

 for purposes of this paragraph4  7ii7  
,greenhouse gas emissions rate ,rules   
similar to the rules of section         
#de,u7b77#b7 shall apply for purposes of
 this paragraph4  7iii7 ,wage           
requirements  7,i7 ,in general ,the     
requirements described in this subclause
 with respect to any facility are that  
the taxpayer shall ensure that any      
laborers and mechanics employed by      
contractors and subcontractors in-- 7aa7
 the construction of such facility1 or  
7bb7 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,,ii7          
,correction and penalty related to      

failure to satisfy wage requirements    
,for purposes of section #ej7;a71 a     
taxpayer shall not be treated as failing
 to satisfy the requirements of this    
clause if such taxpayer meets           
requirements similar to the requirements
 of section #de,u7b77#c77;,b77ii74  7,c7
 ,microgrids  7i7 ,in general ,for      
purposes of this section1 the term      
qualified facility shall include any    
microgrid which satisfies the           
requirements under clauses 7i71 7ii71   
and 7iv7 of subparagraph 7,a74  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      
infrastructure1 and  7,,iii7 has a      
maximum net output of not greater than  
#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 ,agency and the ,secretary4 
7,d7 ,exclusion ,the term qualified     
facility shall not include any facility 
for which-- 7i7 a renewable electricity 
production credit determined under      
section #de1  7ii7 an advanced nuclear  
power facility production credit        
determined under section #de;,j1  7iii7 
a carbon oxide sequestration credit     
determined under section #de,q1  7iv7 a 
clean electricity production credit     
determined under section #de,u1 or  7v7 
an energy credit determined under       
section #dh1  is allowed under section  
#ch for the taxable year or any prior   

taxable year4  7#d7 ,qualified          
interconnection property ,for purposes  
of this paragraph-- 7,a7 ,in general    
,the term qualified interconnection     
property means1 with respect to a       
qualified facility which is not a       
microgrid1 any tangible property-- 7i7  
which is part of an addition1           
modification1 or upgrade to a           
transmission system which is required at
 or beyond the point at which the       
qualified facility interconnects to such
 transmission system in order to        
accommodate such interconnection1  7ii7 
7,i7 which is constructed1              
reconstructed1 or erected by the        
taxpayer1 or  7,,ii7 for which the cost 
with respect to the construction1       
reconstruction1 or erection of such     
property is paid or incurred by such    
taxpayer1 and  7iii7 the original use of
 which1 pursuant to an interconnection  
agreement1 commences with the utility4  
7,b7 ,interconnection agreement ,the    
term interconnection agreement means an 

agreement entered into by a utility and 
the taxpayer for the purposes of        
interconnecting the qualified facility  
owned by such taxpayer to the           
transmission system of such utility4    
7,c7 ,transmission system ,the term     
transmission system means the facilities
 owned1 controlled1 or operated by a    
utility which are used to provide       
electric transmission service4  7,d7    
,utility ,the term utility means the    
owner or operator of an electrical      
transmission or distribution system     
which is subject to the regulatory      
authority of-- 7i7 the ,federal ,energy 
,regulatory ,commission1 or  7ii7 a     
,state public utility commission or     
other appropriate ,state agency4  7#e7  
,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  7#f7          
,definitions ,for purposes of this      
subsection1 the terms ,,co#b;e per ,k,wh
 and greenhouse gas emissions rate have 
the same meaning given such terms under 
section #de,u7b74  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 of paragraph 
7#d71 and  7ii7 with respect to the     
construction of such property1 satisfies
 the requirements under section #eja 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 stored by the taxpayer for an      
unrelated person1  7,b7 with respect to 
which depreciation 7or amortization in  
lieu of depreciation7 is allowable1     
7,c7 7i7 the construction1              
reconstruction1 or erection of which is 
completed by the taxpayer1 or  7ii7     
which is acquired by the taxpayer if the
 original use of such property commences
 with the taxpayer1  7,d7 which has a   
capacity of not less than #e kilowatt   
hours1 and  7,e7 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 property--  

7i7 which is-- 7,i7 an overhead1        
submarine1 or underground transmission  
property which is capable of            
transmitting electricity at a voltage of
 not less than #bge kilovolts1 and      
7,,ii7 other equipment necessary for the
 operation of property described in     
clause 7i71 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        
,regulations1  7ii7 which satisfies the 
requirements under subparagraphs 7,b71  
7,c71 and 7,e7 of paragraph 7#b74  7,b7 
,exclusion ,the term qualified          
transmission property shall not include 
any property used for distribution of   
electricity between substations and     
end-use customers4  7#d7 ,wage          
requirements  7,a7 ,in general ,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-- 7i7 the construction
 of such property1 or  7ii7 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  7,b7 ,correction and    
penalty related to failure to satisfy   
wage requirements ,for purposes of      
section #ej7;a71 a taxpayer shall not be
 treated as failing to satisfy the      
requirements of this clause if such     
taxpayer meets requirements similar to  
the requirements of section             
#de,u7b77#c77;,b77ii74  7d7 ,special    
rules  7#a7 ,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   
7#b7 ,special rule for property financed
 by subsidized energy financing or      
industrial development bonds ,rules     
similar to the rules of section         
#dh7;a77#d7 shall apply for purposes of 
this section4  7e7 ,credit phase-,out   
7#a7 ,in general ,if the ,secretary1 the
 ,secretary of ,energy1 and the         
,administrator of the ,environmental    
,protection ,agency determine 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 investment with       
respect to any qualified facility 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 any    
qualified investment with respect to any
 qualified facility or grid improvement 
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   
any qualified investment with respect to
 any qualified facility or grid         
improvement property the construction of
 which begins during the second calendar

 year following such determination year1
 #ge percent1  7,c7 for any qualified   
investment with respect to any qualified
 facility or grid improvement property  
the construction of which begins during 
the third calendar year following such  
determination year1 #ej percent1 and    
7,d7 for any qualified investment with  
respect to any qualified facility or    
grid improvement 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 ,secretary and the ,administrator  
of the ,environmental ,protection       
,agency determine 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 ,secretary
 and the ,administrator of the          
,environmental ,protection ,agency 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 applicable percentage of 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  7,a7 ,in general ,an election 
under paragraph 7#a7 shall be made prior
 to the date on which the qualified     
property or grid improvement property is
 placed in service and in such manner as
 the ,secretary may prescribe4 ,such    
election1 once made1 shall-- 7i7 be     
irrevocable with respect to the         
qualified property or grid improvement  
property to which such election applies1
 and  7ii7 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,b7 ,additional information ,for       
purposes of an election under paragraph 
7#a71 the ,secretary may require such   
information as the ,secretary deems     
necessary for purposes of preventing    
duplication1 fraud1 or any improper     
payments under this subsection4  7#c7   
,application to partnerships and ,s     

corporations2 excess payments ,rules    
similar to the rules of paragraphs 7#c7 
and 7#e7 of section #de,u7h7 shall apply
 for purposes of this subsection4  7#d7 
,special rules for certain entities     
7,a7 ,eligibility of certain property   
,for purposes of this subsection1       
paragraphs 7#c7 and 7#d7 of section     
#ej7;b7 shall not apply with respect    
to-- 7i7 any ,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 subsection71     
7ii7 any mutual or cooperative electric 
company described in section            
#eja7;c77#ab7 or section                
#acha7;a77#b77;,c71 or  7iii7 an ,indian
 tribal government 7as defined in       
section #aci;,e7c77#a774  7,b7 ,certain 
entities treated as taxpayers ,in the   
case of an election under this          
subsection1 any entity described in     
clause 7i71 7ii71 or 7iii7 of           
subparagraph 7,a7 shall be treated as a 

taxpayer for purposes of this subsection
 and determining the amount of any      
credit under subsection 7a74  7#e7      
,applicable percentage ,for purposes of 
paragraph 7#a7-- 7,a7 ,in general ,in   
the case of any property which satisfies
 the requirements under subsection      
7a77#b77;,c77ii7 with respect to the    
construction of such property1 the      
applicable percentage shall be #ajj     
percent4  7,b7 ,phased domestic content 
requirement ,subject to subparagraph    
7,c71 in the case of any property which 
fails to satisfy the requirements under 
such subsection with respect to the     
construction of such property1 the      
applicable percentage shall be-- 7i7 if 
construction of such property began     
before ,january #a1 #bjbd1 #ajj percent1
  7ii7 if construction of such property 
began in calendar year #bjbd1 #ij       
percent1  7iii7 if construction of such 
property began in calendar year #bjbe1  
#he percent1 and  7iv7 if construction  
of such property began after ,december  

#ca1 #bjbe1 #j percent4  7,c7 ,exception
 ,if the ,secretary determines that1 for
 purposes of application of the         
requirements under subsection           
7a77#b77;,c77ii7 with respect to the    
construction of such property-- 7i7     
their application would be inconsistent 
with the public interest1  7ii7 such    
materials and products are not produced 
in the ,united ,states in sufficient and
 reasonably available quantities and of 
a satisfactory quality1 or  7iii7       
inclusion of domestic material will     
increase the cost of the construction of
 the property by more than #be percent1 
the applicable percentage shall be #ajj 
percent4  4  7#b7 ,public utility       
property ,section #ej7;d7 is amended--  
7,a7 in paragraph 7#b7-- 7i7 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  7ii7 by adding the     

following new subparagraphs3  7,a7 no   
election under this paragraph shall be  
permitted if the making of such election
 is prohibited by 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  1 and  7,b7  

by adding at the end the following3     
,paragraphs 7#a77;,b7 and 7#b77;,b7 of  
the section #df7;e7 referred to in      
paragraph 7#a7 of this subsection shall 
not apply to any qualified investment   
described in section #dh;,d of a real   
estate investment trust4  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  
#bjba1 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    
,subpart ,a of part ,,iv of subchapter  
,a of chapter #a is amended by inserting
 after section #be;,d the following3    
#be;,e4 ,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 ,secretary and 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  7#c7 has a capacity of not less
 than #c kilowatt hours1 and  7#d7      

satisfies the requirements under        
subparagraphs 7,a71 7,c71 7,d71 and 7,e7
 of subsection 7b77#a74  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 ,secretary1 the ,secretary of      
,energy1 and the ,administrator of the  
,environmental ,protection ,agency      
determine 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  7#e7 ,coordination with other
 credits ,the terms qualified property  
and energy storage property shall not   
include any property for which a credit 
is allowed under section #be;,d for any 
expenditure with respect to such        
property4  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 ,secretary and the      
,administrator of the ,environmental    
,protection ,agency 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 ,section   
#bc7;c77#a7 is amended by striking and  
section #be;,d and inserting 1 section  
#be;,d1 and section #be;,e4  7,b7       
,section #be7;e77#a77;,c7 is amended by 
striking and #be;,d and inserting       
#be;,d1 and #be;,e4  7,c7 ,paragraph    
7#a7 of section #de7;d7 is amended by   
striking with respect to which and all  
that follows through the period and     
inserting the following3 with respect to
 which-- 7,a7 any qualified small wind  
energy property expenditure 7as defined 

in subsection 7d77#d7 of section #be;,d7
 is taken into account in determining   
the credit under such section1 or  7,b7 
any expenditures for qualified property 
7as defined in subsection 7b7 of section
 #be;,e7 which uses wind to produce     
electricity is taken into account in    
determining the credit under such       
section4  4  7,d7 ,section #ajaf7;a7 is 
amended-- 7i7 by redesignating          
paragraphs 7#ce7 through 7#ch7 as       
paragraphs 7#cf7 through 7#ci71         
respectively1 and  7ii7 by inserting    
after paragraph 7#cd7 the following3    
7#ce7 to the extent provided in section 
#be;,e7g71 in the case of amounts with  
respect to which a credit has been      
allowed under section #be;,e1  4  7,e7  
,the table of contents for subpart ,a of
 part ,,iv of subchapter ,a of chapter  
#a is amended by inserting after the    
item relating to section #be;,d the     
following new item3  ,sec4 #be;,e4      
,residential clean electricity credit4  
4  7#c7 ,effective date ,the amendments 

made by this subsection 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 ,elimination of
 phaseout ,section #be;,d7g7 is amended 
to read as follows3  7g7 ,applicable    
percentage ,for purposes of subsection  
7a71 the applicable percentage shall be 
#cj percent4  4  7#b7 ,effective date   
,the amendments made by this subsection 
shall apply to property placed in       
service after ,december #ca1 #bjbj4  7b7
 ,renewable electricity production      
credit  7#a7 ,carryforward of credit    
7,a7 ,in general ,section #ci7;a7 is    
amended by adding at the end the        
following3  7#d7 #be-year carryforward  
for renewable electricity production    
credit ,in the case of the renewable    
electricity production credit-- 7,a7    
this section shall be applied separately
 from the business credit 7other than   

the renewable electricity production    
credit71 and  7,b7 paragraph 7#b7 shall 
be applied-- 7i7 by substituting #bf    
taxable years for #ba taxable years in  
subparagraph 7,a7 thereof1 and  7ii7 by 
substituting #be taxable years for #bj  
taxable years in subparagraph 7,b7      
thereof4  4  7,b7 ,effective date ,the  
amendment made by this paragraph shall  
apply to credit carryforwards carried to
 taxable years beginning after the date 
of enactment of this ,act4  7#b7        
,election for direct payment for        
renewable electricity production credit 
,section #de is amended by adding at the
 end the following3  7f7 ,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 7a77#b77;,a77ii7 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
  7,a7 ,in general ,an election under   
paragraph 7#a7 shall be made prior to   
the applicable date on and in such      
manner as the ,secretary may prescribe4 
,such election1 once made1 shall-- 7i7  
be irrevocable with respect to such     
qualified facility for the period       
described in subsection                 
7a77#b77;,a77ii71 and  7ii7 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,b7 ,additional information 
,for purposes of an election under      
paragraph 7#a71 the ,secretary may      
require such information as the         
,secretary deems necessary for purposes 
of preventing duplication1 fraud1 or any
 improper payments under this           
subsection4  7,c7 ,applicable date ,for 
purposes of this paragraph1 the term    

applicable date means-- 7i7 in the case 
of any qualified facility which is      
placed in service after ,december #ca1  
#bjbj1 and before the date of enactment 
of the ,clean ,energy for ,america ,act1
 the earlier of-- 7,i7 the date which is
 #ahj days after the date of enactment  
of such ,act1 or  7,,ii7 the end of the 
taxable year in which such facility is  
placed in service1  7ii7 in the case of 
any qualified facility the construction 
of which begins before the date of      
enactment of the ,clean ,energy for     
,america ,act and which is not placed in
 service before such date1 the later    
of-- 7,i7 the date on which such        
facility is placed in service1 or       
7,,ii7 the date which is #ahj days after
 the date of enactment of such ,act1 or 
7iii7 in the case of any qualified      
facility the construction of which      
begins on or after the date of enactment
 of the ,clean ,energy for ,america     
,act1 the date on which such facility is
 placed in service4  7#c7 ,application  

to partnerships and ,s corporations2    
excess payment ,rules similar to the    
rules of paragraphs 7#c7 and 7#e7 of    
section #de,u7h7 shall apply for        
purposes of this subsection4  7#d7      
,certain entities treated as taxpayers  
,in the case of an election under this  
subsection-- 7,a7 any ,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       
subsection71  7,b7 any mutual or        
cooperative electric company described  
in section #eja7;c77#ab7 or section     
#acha7;a77#b77;,c71 or  7,c7 an ,indian 
tribal government 7as defined in section
 #aci;,e7c77#a771  shall be treated as a
 taxpayer for purposes of this          
subsection and determining the amount of
 any credit under subsection 7a74  4    
7c7 ,termination of allocation of       
unutilized limitation for advanced      
nuclear power facilities  7#a7 ,in      
general ,section #de;,j7b7 is amended by

 striking paragraph 7#e74  7#b7         
,effective date ,the amendment made by  
this subsection shall apply to          
facilities the construction of which    
begins after the date of enactment of   
this ,act4  7d7 ,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#a77;,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
  7#a7 ,in general ,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-- 7i7 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     
7ii7 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  7#b7 ,coordination with    
other credits ,the term qualified       
facility shall not include any facility 
for which a credit determined under     
section #de,u or #dh;,d is allowed under
 section #ch for the taxable year or any
 prior taxable year4  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      
,december #ca1 #bjbf1 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     
,secretary and the ,administrator of the
 ,environmental ,protection ,agency     
determine 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#a77;,b77ii7
 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#a77;,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 
,wage requirements ,section #de,q7f71 as
 amended by paragraph 7#a77;,d71 is     
amended by adding at the end the        
following3  7#i7 ,wage requirements     
7,a7 ,in general ,the term qualified    
facility shall not include any facility 
which fails to satisfy-- 7i7 subject to 
clause 7ii7 of subparagraph 7,b71 the   
requirements under clause 7i7 of such   
subparagraph1 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 #eja of the  
,clean ,energy for ,america ,act4  7,b7 
,requirements  7i7 ,in general ,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-- 7,i7 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  7,,ii7 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  7ii7 ,failure to satisfy
 wage requirements2 correction and      
penalty ,in the case of any taxpayer    
which fails to satisfy the requirement  
under clause 7i7 with respect to the    
construction of any facility or the     
alteration or repair of a facility or   
carbon capture equipment in any year    
during the period described in clause   
7i77,,ii71 rules similar to the rules of
 clauses 7i7 and 7ii7 of section        
#de,u7b77#c77;,b7 shall apply for       
purposes of this subparagraph4  4  7#c7 
,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  7,a7 ,in  
general ,an election under paragraph    
7#a7 shall be made prior to the         
applicable date and in such manner as   
the ,secretary may prescribe4 ,such     
election1 once made1 shall-- 7i7 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  7ii7  
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,b7 ,additional 
information ,for purposes of an election
 under paragraph 7#a71 the ,secretary   
may require such information as the     
,secretary deems necessary for purposes 
of preventing duplication1 fraud1 or any
 improper payments under this           
subsection4  7,c7 ,applicable date ,for 
purposes of this paragraph1 the term    
applicable date means-- 7i7 in the case 
of any carbon capture equipment which is
 placed in service after ,december #ca1 
#bjbj1 and before the date of enactment 
of the ,clean ,energy for ,america ,act1
 the earlier of-- 7,i7 the date which is
 #ahj days after the date of enactment  
of such ,act1 or  7,,ii7 the end of the 
taxable year in which such equipment is 
placed in service1  7ii7 in the case of 
any carbon capture equipment the        
construction of which began before the  
date of enactment of the ,clean ,energy 

for ,america ,act and which has not     
placed in service before such date1 the 
later of-- 7,i7 the date on which such  
equipment is placed in service1 or      
7,,ii7 the date which is #ahj days after
 the date of enactment of such ,act1 and
  7iii7 in the case of any carbon       
capture equipment the construction of   
which begins on or after the date of    
enactment of the ,clean ,energy for     
,america ,act1 the date on which such   
equipment is placed in service4  7#c7   
,application to partnerships and ,s     
corporations2 excess payment ,rules     
similar to the rules of paragraphs 7#c7 
and 7#e7 of section #de,u7h7 shall apply
 for purposes of this subsection4  7#d7 
,certain entities treated as taxpayers  
,in the case of an election under this  
subsection-- 7,a7 any ,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       
subsection71  7,b7 any mutual or        

cooperative electric company described  
in section #eja7;c77#ab7 or section     
#acha7;a77#b77;,c71 or  7,c7 an ,indian 
tribal government 7as defined in section
 #aci;,e7c77#a771  shall be treated as a
 taxpayer for purposes of this          
subsection and determining the amount of
 any credit under subsection 7a74  4    
7#d7 ,credit reduced for grants1        
tax-exempt bonds1 subsidized energy     
financing1 and other credits ,section   
#de,q7f71 as amended by paragraphs      
7#a77;,d7 and 7#b71 is amended by adding
 at the end the following3  7#aj7       
,credit reduced for grants1 tax-exempt  
bonds1 subsidized energy financing1 and 
other credits ,rules similar to the     
rules under section #de7;b77#c7 shall   
apply for purposes of this section4  4  
7#e7 ,effective dates  7,a7 ,in general 
,the amendments made by paragraph 7#a7  
7with the exception of the amendment    
made under subparagraph 7,d7 of such    
paragraph7 shall apply to facilities the
 construction of which begins after the 

date of enactment of this ,act4  7,b7   
,elimination of use of carbon oxide as  
tertiary injectant ,the amendment made  
by paragraph 7#a77;,d7 shall apply to   
facilities the construction of which    
begins after ,december #ca1 #bjbf4  7,c7
 ,wage requirements ,the amendments made
 by paragraph 7#b7 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#c7 shall apply to carbon    
capture equipment which is placed in    
service after ,december #ca1 #bjbj4     
7,e7 ,credit reduced for grants1        
tax-exempt bonds1 subsidized energy     
financing1 and other credits ,the       
amendments made by paragraph 7#d7 shall 
apply to taxable years beginning after  
the date of enactment of this ,act4  7e7
 ,modification of credits for energy    
property  7#a7 ,termination  7,a7 ,solar
 energy property ,section               
#dh7;a77#c77;,a77i7 is amended by       

inserting but only with respect to      
property the construction of which      
begins before ,january #a1 #bjbd1 after 
swimming pool14  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 #bjbd1 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 #bjbd4  7#b7
 ,elimination of phaseouts  7,a7 ,in    
general ,section #dh is amended by      
striking paragraphs 7#f7 and 7#g74  7,b7
 ,effective date ,the amendments made by
 this paragraph shall apply to property 
the construction of which begins after  
,december #ca1 #bjbj4  7#c7 ,increase in
 credit rate for geothermal deposits    
7,a7 ,in general ,section               
#dh7;a77#b77;,a77i77,,ii7 is amended by 
striking paragraph 7#c77;,a77i7 and     
inserting clause 7i7 or 7iii7 of        

paragraph 7#c77;,a74  7,b7 ,effective   
date ,the amendments made by this       
paragraph shall apply to property the   
construction of which begins after      
,december #ca1 #bjbj4  7#d7 ,election   
for direct payment  7,a7 ,in general    
,section #dh1 as amended by paragraph   
7#a71 is amended by adding at the end   
the following3  7e7 ,election for direct
 payment  7#a7 ,in general ,in the case 
of any energy 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  7,a7 ,in 
general ,an election under paragraph    
7#a7 shall be made prior to the         
applicable date and in such manner as   

the ,secretary may prescribe4 ,such     
election1 once made1 shall-- 7i7 be     
irrevocable with respect to the energy  
property to which such election applies1
 and  7ii7 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,b7 ,additional information ,for       
purposes of an election under paragraph 
7#a71 the ,secretary may require such   
information as the ,secretary deems     
necessary for purposes of preventing    
duplication1 fraud1 or any improper     
payments under this subsection4  7,c7   
,applicable date ,for purposes of this  
paragraph1 the term applicable date     
means-- 7i7 in the case of any energy   
property which is placed in service     
after ,december #ca1 #bjbj1 and before  
the date of enactment of the ,clean     
,energy for ,america ,act1 the earlier  
of-- 7,i7 the date which is #ahj days   

after the date of enactment of such     
,act1 or  7,,ii7 the end of the taxable 
year in which such property is placed in
 service1  7ii7 in the case of any      
energy property the construction of     
which began before the date of enactment
 of the ,clean ,energy for ,america ,act
 and which has not been placed in       
service before such date1 the later of--
 7,i7 the date on which such property is
 placed in service1 or  7,,ii7 the date 
which is #ahj days after the date of    
enactment of such ,act1 or  7iii7 in the
 case of any energy property the        
construction of which begins on or after
 the date of enactment of the ,clean    
,energy for ,america ,act1 the date on  
which such property is placed in        
service4  7#c7 ,application to          
partnerships and ,s corporations2 excess
 payment ,rules similar to the rules of 
paragraphs 7#c7 and 7#e7 of section     
#de,u7h7 shall apply for purposes of    
this subsection4  7#d7 ,special rules   
for certain entities  7,a7 ,eligibility 

of certain property ,for purposes of    
this subsection1 paragraphs 7#c7 and    
7#d7 of section #ej7;b7 shall not apply 
with respect to-- 7i7 any ,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       
subsection71  7ii7 any mutual or        
cooperative electric company described  
in section #eja7;c77#ab7 or section     
#acha7;a77#b77;,c71 or  7iii7 an ,indian
 tribal government 7as defined in       
section #aci;,e7c77#a774  7,b7 ,certain 
entities treated as taxpayers ,in the   
case of an election under this          
subsection1 any entity described in     
clause 7i71 7ii71 or 7iii7 of           
subparagraph 7,a7 shall be treated as a 
taxpayer for purposes of this subsection
 and determining the amount of any      
credit under subsection 7a74  4  7,b7   
,effective date ,the amendment made by  
this paragraph shall apply to property  
placed in service after ,december #ca1  

#bjbj4  7#e7 ,energy credit for         
qualified biogas property and qualified 
manure resource recovery property  7,a7 
,in general ,section #dh7;a77#c77;,a7 is
 amended by striking or at the end of   
clause 7vii7 and by adding at the end   
the following new clauses3  7ix7        
qualified biogas property1 or  7x7      
qualified manure resource recovery      
property1  4  7,b7 #cj-,percent credit  
,section #dh7;a77#b77;,a77i7 is amended 
by striking and at the end of subclause 
7,,iv71 by striking and at the end of   
subclause 7,v71 and by adding at the end
 the following new subclauses3  7,,vi7  
qualified biogas property1 and  7,,vii7 
qualified manure resource recovery      
property1 and  4  7,c7 ,definitions     
,section #dh7;c7 is amended by adding at
 the end the following new paragraphs3  
7#f7 ,qualified biogas property  7,a7   
,in general ,the term qualified biogas  
property means property comprising a    
system which-- 7i7 uses anaerobic       
digesters1 or other biological1         

chemical1 thermal1 or mechanical        
processes 7alone or in combination71 to 
convert biomass 7as defined in section  
#de,k7c77#c77 into a gas which consists 
of not less than #eb percent methane1   
and  7ii7 captures such gas for use as a
 fuel4  7,b7 ,inclusion of certain      
cleaning and conditioning equipment     
,such term shall include any property   
which cleans and conditions the gas     
referred to in subparagraph 7,a7 for use
 as a fuel4  7,c7 ,termination ,no      
credit shall be determined under this   
section with respect to any qualified   
biogas property for any period after    
,december #ca1 #bjbc4  7#g7 ,qualified  
manure resource recovery property  7,a7 
,in general ,the term qualified manure  
resource recovery property means        
property comprising a system which uses 
physical1 biological1 chemical1 thermal1
 or mechanical processes to recover the 
nutrients nitrogen and phosphorus from a
 non-treated digestate or animal manure 
by reducing or separating at least #ej  

percent of the concentration of such    
nutrients1 excluding any reductions     
during the incineration1 storage1       
composting1 or field application of the 
non-treated digestate or animal manure4 
7,b7 ,inclusion of certain processing   
equipment ,such term shall include-- 7i7
 any property which is used to recover  
the nutrients referred to in            
subparagraph 7,a71 such as-- 7,i7       
biological reactors1  7,,ii7            
crystallizers1  7,,iii7 water filtration
 membrane systems and other water       
purifiers1  7,,iv7 evaporators1  7,v7   
distillers1  7,,vi7 decanter            
centrifuges1 and  7,,vii7 equipment that
 facilitates the process of removing and
 dewatering suspended and dissolved     
solids1 ammonia stripping1 gasification1
 or ozonation1 and  7ii7 any thermal    
drier which treats the nutrients        
recovered by the processes referred to  
in subparagraph 7,a74  7,c7 ,termination
 ,no credit shall be determined under   
this section with respect to any        

qualified manure resource recovery      
property for any period after ,december 
#ca1 #bjbc4  4  7,d7 ,denial of double  
benefit for qualified biogas property   
,section #de7;e7 is amended by adding at
 the end the following new paragraph3   
7#ab7 ,coordination with energy credit  
for qualified biogas property ,the term 
qualified facility shall not include any
 facility which produces electricity    
from gas produced by qualified biogas   
property 7as defined in section         
#dh7;c77#f77 if a credit is determined  
under section #dh with respect to such  
property for the taxable year or any    
prior taxable year4  4  7,e7 ,effective 
date ,the amendments made by this       
paragraph shall apply to property placed
 in service after ,december #ca1 #bjbj1 
under rules similar to the rules of     
section #dh7m7 of such ,code 7as in     
effect on the day before the date of the
 enactment of the ,revenue              
,reconciliation ,act of #aiij74  7#f7   
,expansion of energy credit to include  

clean hydrogen production facilities    
7,a7 ,in general ,section #dh7;a77#e7 is
 amended-- 7i7 in subparagraph 7,a77ii71
 by inserting subject to subparagraph   
7,g77i71 before the energy percentage1  
7ii7 in subparagraph 7,b71 by inserting 
or #de,x after section #de1  7iii7 in   
subparagraph 7,c7-- 7,i7 in clause 7i71 
by inserting or1 subject to subparagraph
 7,g77ii71 a qualified clean hydrogen   
production facility 7as defined in      
section #de,x7d77#c77 after section     
#de7;d71  7,,ii7 in clause 7ii71 by     
inserting 7or1 in the case of a         
qualified clean hydrogen production     
facility1 which is placed in service    
after #bjbj and the construction of     
which begins before ,january #a1 #bjcj7 
after ,january #a1 #bjbb1 and  7,,iii7  
in clause 7iii77,i71 by inserting or    
#de,x after section #de1 and  7iv7 by   
adding at the end the following3  7,g7  
,qualified clean hydrogen production    
facilities  7i7 ,energy percentage  7,i7
 ,in general ,for purposes of           

subparagraph 7,a77ii71 in the case of a 
qualified investment credit facility    
which is a qualified clean hydrogen     
production facility1 the energy         
percentage with respect to such facility
 shall be an amount 7expressed as a     
percentage7 equal to-- 7aa7 in the case 
of a facility which is estimated to     
produce qualified clean hydrogen 7as    
defined in described in section         
#de,x7d77#b77 which is described in     
subparagraph 7,a7 of section            
#de,x7b77#b71 #bj percent of the energy 
percentage otherwise applicable under   
subparagraph 7,a77ii71  7bb7 in the case
 of a facility which is estimated to    
produce qualified clean hydrogen which  
is described in subparagraph 7,b7 of    
section #de,x7b77#b71 #be percent of the
 energy percentage otherwise applicable 
under subparagraph 7,a77ii71  7cc7 in   
the case of a facility which is         
estimated to produce qualified clean    
hydrogen which is described in          
subparagraph 7,c7 of section            

#de,x7b77#b71 #cd percent of the energy 
percentage otherwise applicable under   
subparagraph 7,a77ii71 and  7dd7 in the 
case of a facility which is estimated to
 produce qualified clean hydrogen which 
is described in subparagraph 7,d7 of    
section #de,x7b77#b71 #ajj percent of   
the energy percentage otherwise         
applicable under subparagraph 7,a77ii74 
7,,ii7 ,recapture ,the ,secretary shall1
 by regulations1 provide for recapturing
 the benefit of any credit allowable    
under this section with respect to any  
qualified clean hydrogen production     
facility which fails to produce         
qualified clean hydrogen consistent with
 the applicable percentage reduction in 
lifecycle greenhouse gas emissions      
described in section #de,x7b77#b7 which 
were estimated for such facility        
pursuant to subclause 7,i74  7ii7 ,no   
double benefit ,for purposes of this    
paragraph1 the term qualified investment
 credit facility shall not include any  
qualified clean hydrogen production     

facility for which a credit is allowed  
under section #ch for the taxable year  
or any prior taxable year which is      
properly allocable to any credit        
determined under-- 7,i7 this section    
7other than pursuant to this paragraph71
 or  7,,ii7 section #de1 #de;,j1 #de,q1 
#de,u1 #de,v1 or #dh;,d4  4  7,b7       
,effective date ,the amendments made by 
this paragraph shall apply to property  
placed in service after ,december #ca1  
#bjbj4  7#g7 ,fuel cells using          
electromechanical processes  7,a7 ,in   
general ,section #dh7;c77#a7 is         
amended-- 7i7 in subparagraph 7,a77i7-- 
7,i7 by inserting or electromechanical  
after electrochemical1 and  7,,ii7 by   
inserting 7#a kilowatts in the case of a
 fuel cell power plant with a linear    
generator assembly7 after #j4e kilowatt1
 and  7ii7 in subparagraph 7,c7-- 7,i7  
by inserting 1 or linear generator      
assembly1 after a fuel cell stack       
assembly1 and  7,,ii7 by inserting or   
electromechanical after electrochemical4

  7,b7 ,linear generator assembly       
limitation ,section #dh7;c77#a7 is      
amended by redesignating subparagraph   
7,d7 as subparagraph 7,e7 and by        
inserting after subparagraph 7,c7 the   
following new subparagraph3  7,d7       
,linear generator assembly ,the term    
linear generator assembly does not      
include any assembly which contains     
rotating parts4  4  7,c7 ,effective date
 ,the amendments made by this paragraph 
shall apply to property the construction
 of which begins after ,december #ca1   
#bjbj4  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  7#a7
 ,allowance of credit ,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 an 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#d71 and  7ii7 the emissions 
factor for such fuel 7as determined     
under subsection 7b771 and  7,b7 for any
 transportation fuel which is sold      
during any calendar year beginning after
 ,december #ca1 #bjbi1 and which has an 
emissions rate equal to or less than    
zero1 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#d74  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      
,special rate for sustainable aviation  
fuel  7,a7 ,in general ,in the case of  
an transportation fuel which is         
sustainable aviation fuel1 paragraphs   
7#a77;,a77i7 and 7#b7 shall each be     
applied by substituting #b4jj for #a4jj4
  7,b7 ,sustainable aviation fuel ,for  
purposes of this subparagraph 7,a71 the 
term sustainable aviation fuel means    
liquid fuel which is sold for use in1 or
 used in1 an aircraft and which-- 7i7   
consists of synthesized hydrocarbons1   
7ii7 meets the requirements of-- 7,i7   
,,astm ,international ,standard ,d#geff1
 or  7,,ii7 the ,fischer ,tropsch       
provisions of ,,astm ,international     

,standard ,d#afee1 ,annex ,a#a1  7iii7  
is derived from-- 7,i7 biomass 7as such 
term is defined in section              
#de,k7c77#c771 or  7,,ii7 electrolysis  
powered by renewable energy resources1  
or  7,,iii7 carbon oxides captured from 
an industrial source or from the ambient
 air1 and  7iv7 is not derived from palm
 fatty acid distillates4  7#d7 ,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#e7 ,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 ,secretary and the ,secretary of   
,energy 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 under subparagraph 7,c71 a taxpayer  
producing such fuel may file a petition 
with the ,secretary and the ,secretary  
of ,energy 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 ,secretary and the 
,secretary of ,energy 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 annually 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 
and the #b4jj amount in subsection      
7a77#c7 shall each 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 ,secretary and the  
,administrator of the ,environmental    
,protection ,agency determine 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 applicable under 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 applicable under 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 subject to clause 7ii7 of          
subparagraph 7,b71 satisfies the        
requirements under clause 7i7 of such   
subparagraph1 and  7,,ii7 with respect  
to the construction of such facility1   
satisfies the requirements under section
 #eja of the ,clean ,energy for ,america
 ,act4  ,clause 7ii77,,ii7 shall not    
apply to any facility placed in service 
before ,january #a1 #bjbc4  7,b7 ,wage  
requirements  7i7 ,in general ,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-- 7,i7 the            

construction of such facility1 or       
7,,ii7 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  7ii7 ,failure to satisfy
 wage requirements2 correction and      
penalty ,in the case of any taxpayer    
which fails to satisfy the requirement  
under clause 7i7 with respect to the    
construction of any facility or the     
alteration or repair of such facility in
 any year during the period described in
 clause 7i77,,ii71 rules similar to the 
rules of clauses 7i7 and 7ii7 of section
 #de,u7b77#c77;,b7 shall apply for      
purposes of this subparagraph4  7iii7   
,special rule for facilities placed in  

service before ,january #a1 #bjbc ,in   
the case of any facility placed in      
service before ,january #a1 #bjbc-- 7,i7
 clause 7i77,i7 shall not apply1 and    
7,,ii7 clause 7ii7 shall be applied     
without regard to the phrase the        
construction of any facility or4  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 ,secretary and the ,secretary
 of ,energy shall jointly 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  7#b7        
,conforming amendments  7,a7 ,section   
#ch7;b71 as amended by section #aja1 is 
amended 7i7 in paragraph 7#cc71 by      
striking plus at the end1  7ii7 in      
paragraph 7#cd71 by striking the period 
at the end and inserting 1 plus1 and    
7iii7 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  7#c7 ,effective  
date ,the amendments made by this       

section shall apply to transportation   
fuel produced after ,december #ca1      
#bjbb4  7b7 ,sustainable aviation fuel  
credit  7#a7 ,in general ,subpart ,d of 
part ,,iv of subchapter ,a of chapter #a
 is amended by inserting after section  
#dj;,a the following new section3       
#dj;,b4 ,sustainable aviation fuel      
credit  7a7 ,in general  7#a7 ,credit   
amount ,for purposes of section #ch1 the
 sustainable aviation fuel credit for   
the taxable year is1 with respect to any
 sale or use of a qualified mixture     
which occurs during such taxable year1  
an amount equal to the product of-- 7,a7
 the number of gallons of sustainable   
aviation fuel in such mixture1          
multiplied by  7,b7 the sum of-- 7i7    
#a4ej1 plus  7ii7 the applicable        
supplementary credit amount with respect
 to the sustainable aviation fuel4  7#b7
 ,applicable supplementary credit amount
  7,a7 ,in general ,for purposes of this
 section1 the applicable supplementary  
credit amount means1 with respect to any

 sustainable aviation fuel1 an amount   
equal to #j4ja for every percentage     
point by which the lifecycle greenhouse 
gas emissions reduction percentage with 
respect to such fuel exceeds #ej        
percent4  7,b7 ,limitation ,in no event 
shall the applicable supplementary      
credit amount exceed #j4ej4  7b7        
,qualified mixture ,for purposes of this
 section-- 7#a7 ,in general ,the term   
qualified mixture means a mixture of    
sustainable aviation fuel and kerosene  
if-- 7,a7 such mixture is produced in   
the ,united ,states by a taxpayer1 and  
7,b7 such mixture is-- 7i7 sold for use 
in an aircraft1 or  7ii7 used by the    
taxpayer in an aircraft4  7#b7 ,sale or 
use must be in trade or business1 etc   
,sustainable aviation fuel used in the  
production of a qualified mixture shall 
be taken into account-- 7,a7 only if the
 sale or use described in paragraph 7#a7
 is in a trade or business of the       
taxpayer1 and  7,b7 for the taxable year
 in which such sale or use occurs4  7#c7

 ,fueling must be in the ,united ,states
 ,a qualified mixture shall not be      
treated as used or sold for use in an   
aircraft unless the transfer of such    
mixture to the fuel tank of such        
aircraft occurs in the ,united ,states4 
7#d7 ,united ,states ,for purposes of   
this subsection1 the term ,united       
,states includes any possession of the  
,united ,states4  7c7 ,sustainable      
aviation fuel ,for purposes of this     
section1 the term sustainable aviation  
fuel means liquid fuel-- 7#a7 which--   
7,a7 consists of synthesized            
hydrocarbons1  7,b7 meets the           
requirements of-- 7i7 ,,astm            
,international ,standard ,d#geff1 or    
7ii7 the ,fischer ,tropsch provisions of
 ,,astm ,international ,standard        
,d#afee1 ,annex ,a#a1  7,c7 is derived  
from-- 7i7 biomass 7as such term is     
defined in section #de,k7c77#c771 or    
7ii7 electrolysis powered by renewable  
energy resources1 or  7iii7 carbon      
oxides captured from an industrial      

source or from the ambient air1 and     
7,d7 is not derived from palm fatty acid
 distillates1 and  7#b7 which has been  
certified by the producer of such fuel  
in accordance with subsection 7d7 as    
having lifecycle greenhouse gas         
emissions that are equal to or less than
 #ej percent of the lifecycle greenhouse
 gas emissions for petroleum-based jet  
fuel4  7d7 ,certification requirements  
,a certification meet the requirements  
of this subsection if such certification
 is based on a method which-- 7#a7      
demonstrates that the fuel conforms     
with-- 7,a7 the sustainability criteria 
of the ,carbon ,offsetting and          
,reduction ,scheme for ,international   
,aviation1 and  7,b7 the traceability   
and information transmission            
requirements approved by the            
,international ,civil ,aviation         
,organization with the agreement of the 
,united ,states1  7#b7 takes into       
account all elements used to determine  
lifecycle emissions by the              

,international ,civil ,aviation         
,organization1 and  7#c7 is approved    
by-- 7,a7 the ,international ,civil     
,aviation ,organization1 or  7,b7 the   
,secretary and ,administrator of the    
,environmental ,protection ,agency4  7e7
 ,time limit for adoption of new        
sustainable aviation fuel emissions     
reduction test ,for purposes of         
subparagraph 7,b7 of subsection 7d77#c71
 the ,secretary and the ,administrator  
of the ,environmental ,protection       
,agency shall1 within #bd months after  
the date of the enactment of this       
section1 adopt at least one method for  
testing lifecycle greenhouse gas        
emissions that meets the requirements of
 such subsection4  7f7 ,certification of
 sustainable aviation fuel ,no credit   
shall be allowed under this section with
 respect to any sustainable aviation    
fuel unless the taxpayer obtains a      
certification 7in such form and manner  
as prescribed by the ,secretary7 from   
the producer or importer of the         

sustainable aviation fuel which         
identifies the product produced and the 
percentage of sustainable aviation fuel 
in the product4  7g7 ,termination ,this 
section shall not apply to any sale or  
use after ,december #ca1 #bjbb4  4  7#b7
 ,credit made part of general business  
credit ,section #ch7;b71 as amended by  
this ,act1 is amended-- 7,a7 in         
paragraph 7#cd71 by striking plus at the
 end1  7,b7 in paragraph 7#ce71 by      
striking the period at the end and      
inserting 1 plus1 and  7,c7 by adding at
 the end the following new paragraph3   
7#cf7 the sustainable aviation fuel     
credit determined under section #dj;,b4 
4  7#c7 ,coordination with renewable    
diesel  7,a7 ,in general ,section       
#dj;,a7f7 is amended by striking        
paragraph 7#d74  7,b7 ,other            
coordination rules  7i7 ,the last       
sentence of section #dj;,a7d77#a7 is    
amended by inserting or #dj;,b after    
#dj4  7ii7 ,the second sentence of      
section #dj;,a7f77#c7 is amended by     

inserting or #dj;,b after #dj4  7,c7    
,regulations ,under rules prescribed by 
the ,secretary of the ,treasury 7or the 
,secretary's delegate71 the amount of   
the credit allowed under section #dj;,b 
of the ,internal ,revenue ,code of #aihf
 7as added by this subsection7 shall be 
properly reduced to take into account   
any benefit provided with respect to    
sustainable aviation fuel 7as defined in
 such section #dj;,b7 by reason of the  
application of section #fdbf or section 
#fdbg7;e74  7#d7 ,effective date  7,a7  
,in general ,the amendments made by this
 subsection shall apply to taxable years
 ending after the date of the enactment 
of this ,act4  7,b7 ,special rule ,the  
,secretary of the ,treasury 7or the     
,secretary's delegate7 shall establish  
rules for the application of the        
amendments made by paragraph 7#c77;,a7  
with respect to credits under section   
#fdbf and payments under section        
#fdbg7;e7 for calendar quarters ending  
after the date of the enactment of this 

,act and before the last taxable year of
 a taxpayer which ends after such date  
of enactment4  #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 ,phaseout ,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 ,secretary and the 
,secretary of ,transportation 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 ,credit phase-out 
,section #cj;,c is amended by striking  
subsection 7g7 and inserting the        
following3  7g7 ,credit phase-out  7#a7 
,in general ,following a determination  
by the ,secretary1 the ,secretary of    
,transportation1 and the ,administrator 
of the ,environmental ,protection       
,agency 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  7#b7 
,modification  7,a7 ,in general ,section

 #cj;,c7b7 is amended-- 7i7 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  7ii7 in paragraph    
7#a71 by striking #cj1jjj and inserting 
#bjj1jjj4  7,b7 ,effective date ,the    
amendments made by this paragraph shall 
apply to property placed in service     
after ,december #ca1 #bjba4  7#c7       
,additional modification  7,a7 ,in      
general ,section #cj;,c1 as amended by  
paragraphs 7#a7 and 7#b71 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 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  
subject to clause 7ii7 of subparagraph  
7,b71 the requirements under clause 7i7 
of such subparagraph1 and  7ii7 with    
respect to the construction of such     
property1 the requirements under section

 #eja of the ,clean ,energy for ,america
 ,act4  7,b7 ,requirements  7i7 ,in     
general ,the requirements described in  
this clause 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  7ii7 ,correction and    
penalty related to failure to satisfy   
wage requirements ,in the case of any   
taxpayer which fails to satisfy the     
requirement under clause 7i7 with       
respect to any property1 rules similar  
to the rules of section                 
#de,u7b77#c77;,b77ii7 shall apply for   
purposes of this subparagraph4  4  7,b7 
,effective date ,the amendments made by 
this paragraph shall apply to property  

placed in service after ,december #ca1  
#bjbb4  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 ,may 
#bd1 #bjba4  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 year1 unless1 in    
accordance with applicable rules        
promulgated by the ,secretary of        
,transportation1 the vehicle is not     
assigned such a number4  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 return1 or the inclusion  
of any information with respect to the  
credit under section #cf;,c which is    
inconsistent with the report provided   
under section #cf;,c7g74  4  7,c7       
,effective date ,the amendments made by 
this paragraph shall apply to vehicles  
acquired after ,december #ca1 #bjba4    
7#e7 ,phaseout ,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 ,secretary and the ,secretary of 
,transportation 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 
,credit increase  7,a7 ,in general      
,subsection 7b7 of section #cf;,c1 as   
redesignated and moved by the preceding 
paragraphs of this subsection1 is       
amended-- 7i7 by adding at the end the  
following new paragraphs3  7#d7         
,vehicles produced by labor organization
 facility ,in the case of a vehicle the 
final assembly of which is at a facility
 whose production workers are members of
 or represented by a labor organization1
 the amount determined under this       
paragraph is #b1ejj4  7#e7 ,assembly in 
,united ,states ,in the case of a       
vehicle-- 7,a7 the final assembly of    
which is at a facility which is located 
in the ,united ,states1 and  7,b7 which 
is acquired before ,january #a1 #bjbf1  
the amount determined under this        
paragraph is #b1ejj4  1  7ii7 by        
striking is #b1ejj4 in paragraph 7#b7   
and inserting 8is--  7i7 #b1ejj1 in the 
case of a vehicle sold before ,january  

#a1 #bjbf1 and  7ii7 #e1jjj1 in the case
 of a vehicle sold after ,december #ca1 
#bjbe4  and  7iii7 by striking          
paragraphs 7#b7 and 7#c7 in paragraph   
7#a7 and inserting paragraphs 7#b71     
7#c71 7#d71 and 7#e74  7,b7 ,effective  
date ,the amendments made by this       
paragraph shall apply to vehicles       
acquired after ,december #ca1 #bjba4    
7#g7 ,limitation based on place of      
assembly  7,a7 ,in general ,paragraph   
7#a7 of section #cf;,c7c71 as           
redesignated1 moved1 and amended by the 
preceding paragraphs of this subsection1
 is further amended-- 7i7 by striking   
and at the end of subparagraph 7,f77ii71
  7ii7 by striking the period at the end
 of subparagraph 7,g7 and inserting 1   
and1 and  7iii7 by adding at the end the
 following new subparagraph3  7,h7 in   
the case of a vehicle sold after        
,december #ca1 #bjbe1 the final assembly
 of which is at a facility which is     
located in the ,united ,states4  4  7,b7
 ,effective date ,the amendments made by

 this paragraph shall apply to vehicles 
acquired after ,december #ca1 #bjba4    
7#h7 ,limitation based on manufacturer's
 suggested retail price  7,a7 ,in       
general ,paragraph 7#a7 of section      
#cf;,c7c71 as redesignated1 moved1 and  
amended by the preceding paragraphs of  
this subsection1 is further amended--   
7i7 by striking and at the end of       
subparagraph 7,g71  7ii7 by striking the
 period at the end of subparagraph 7,h7 
and inserting 1 and1 and  7iii7 by      
adding at the end the following new     
subparagraph3  7,i7 the manufacturer's  
suggested retail price for which is not 
in excess of #hj1jjj4  4  7,b7          
,effective date ,the amendments made by 
this paragraph shall apply to vehicles  
acquired after ,december #ca1 #bjba4    
7#i7 ,reporting requirement  7,a7 ,in   
general ,section #cf;,c1 as             
redesignated1 moved1 and amended by the 
preceding paragraphs of this subsection1
 is further amended by adding at the end
 the following new subsection3  7g7     

,reporting requirement ,the person who  
sells or leases any new qualified       
plug-in electric drive motor vehicle to 
the taxpayer shall furnish a report to  
the taxpayer and to the ,secretary1 at  
such time and in such manner as the     
,secretary shall provide1 containing--  
7#a7 the taxpayer's name and taxpayer   
identification number1  7#b7 the vehicle
 identification number of the vehicle1  
unless1 in accordance with applicable   
rules promulgated by the ,secretary of  
,transportation1 the vehicle is not     
assigned such a number1  7#c7 the       
battery capacity of the vehicle1  7#d7  
verification that original use of the   
vehicle commences with the taxpayer1 and
  7#e7 the maximum credit under this    
section allowable to the taxpayer with  
respect to the vehicle4  4  7,b7        
,effective date ,the amendments made by 
this paragraph shall apply to vehicles  
acquired after ,december #ca1 #bjba4    
7#aj7 ,limitation to non-business       
vehicles  7,a7 ,in general ,paragraph   

7#a7 of section #cf;,c7c71 as           
redesignated1 moved1 and amended by the 
preceding paragraphs of this subsection1
 is further amended-- 7i7 by striking   
and at the end of subparagraph 7,h71    
7ii7 by striking the period at the end  
of subparagraph 7,i7 and inserting 1    
and1 and  7iii7 by adding at the end the
 following new subparagraph3  7,j7 which
 is not of a character subject to the   
allowance for depreciation4  4  7,b7    
,effective date ,the amendments made by 
this paragraph shall apply to vehicles  
acquired after ,december #ca1 #bjba4    
7#aa7 ,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 to 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   
purchase 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  
7,c7 ,comparative price ,for purposes of
 subparagraph 7,a71 the ,secretary and  
the ,secretary of ,transportation shall 
publish an annual list of prices of     
various types and classes of commercial 
vehicles described in subparagraph 7,b74
  7#c7 ,exclusion ,for purposes of      
paragraph 7#a77;,a71 the basis of any   
qualified commercial electric vehicle   
which is a qualified electric           
transportation option shall not include 
any cost relating to any component or   
feature which-- 7,a7 is not integral to 
the vehicle1 or  7,b7 does not          
contribute to improving the efficiency  
or range of the electric propulsion of  
the vehicle4  7c7 ,qualified commercial 
electric vehicle ,for purposes of this  
section-- 7#a7 ,in general ,the term    
qualified commercial electric vehicle   
means-- 7,a7 any vehicle which-- 7i7    
meets the requirements of subparagraphs 
7,a71 7,b71 7,c71 7,d71 and 7,g7 of     

section #cf;,c7c77#a71  7ii7 is         
primarily propelled by an electric motor
 which draws electricity from a battery 
which-- 7,i7 has a capacity of not less 
than #aj kilowatt hours1 and  7,,ii7 is 
capable of being recharged from an      
external source of electricity1 and     
7iii7 is of a character subject to the  
allowance for depreciation1 and  7,b7   
any qualified electric transportation   
option4  7#b7 ,qualified electric       
transportation option  7,a7 ,in general 
,the term qualified electric            
transportation option means any vehicle 
used in any manner of transportation--  
7i7 the original use of which commences 
with the taxpayer1  7ii7 which is       
acquired for use or lease by the        
taxpayer and not for resale1  7iii7     
which is capable of moving passengers1  
cargo1 or property1  7iv7 which is      
powered by an integrated1 on-board      
electric propulsion system which-- 7,i7 
is the primary source of propulsion1    
7,,ii7 is capable of powering the       

vehicle 7including any of its components
 and accessories7 for not less than     
#b_/c of the maximum operating period   
between recharging or refueling of such 
vehicle1 and  7,,iii7 in the case of a  
vehicle which derives any of its power  
from the on-board combustion of a fuel1 
uses a renewable fuel1  7v7 which was   
manufactured for sale in commercial     
quantities with a reasonable expectation
 of profit1  7vi7 which is in compliance
 with any applicable safety or air      
quality standards1 as determined by the 
,secretary1 the ,secretary of           
,transportation1 the ,secretary of      
,homeland ,security1 and the            
,administrator of the ,environmental    
,protection ,agency1 and  7vii7 which is
 of a character subject to the allowance
 for depreciation4  7,b7 ,on-board      
electric propulsion system ,for purposes
 of this paragraph1 the term on-board   
electric propulsion system means-- 7i7  
#a or more on-board traction batteries  
which-- 7,i7 are integrated or          

swappable1 and  7,,ii7 have an aggregate
 capacity 7as defined in subsection     
7d77#d77 of not less than #aj kilowatt  
hours1 or  7ii7 an on-board power source
 other than a battery with an electrical
 output capacity equivalent of not less 
than #aj kilowatt hours1 as determined  
by the ,secretary4  7,c7 ,renewable fuel
 ,for purposes of this paragraph1 the   
term renewable fuel means any fuel at   
least #he percent of the volume of which
 consists of one or more of the         
following3 7i7 ,ethanol4  7ii7          
,biodiesel 7as defined in section       
#dj;,a7d77#a774  7iii7 ,advanced biofuel
 7as defined in section #baa7o77#a77;,b7
 of the ,clean ,air ,act 7#db ,u4,s4,c4 
#gede7o77#a77;,b7774  7iv7 ,renewable   
natural gas4  7v7 ,hydrogen4  7d7       
,special rules  7#a7 ,in general ,rules 
similar to the rules under subsection   
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       
,secretary and the ,secretary of        
,transportation 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  7f7 ,reporting requirement    
,the person who sells or leases any     
qualified commercial electric vehicle to
 the taxpayer shall furnish a report to 
the taxpayer and to the ,secretary1 at  

such time and in such manner as the     
,secretary shall provide1 containing--  
7#a7 the taxpayer's name and taxpayer   
identification number1  7#b7 the vehicle
 identification number of the vehicle1  
unless1 in accordance with applicable   
rules promulgated by the ,secretary of  
,transportation1 the vehicle is not     
assigned such a number1  7#c7 the       
battery capacity of the vehicle1  7#d7  
verification that original use of the   
vehicle commences with the taxpayer1 and
  7#e7 the maximum credit under this    
section allowable to the taxpayer with  
respect to the vehicle4  4  7,b7        
,mathematical or clerical error ,section
 #fbac7;g77#b71 as amended by paragraph 
7#d71 is further amended-- 7i7 in       
subparagraph 7,q71 by striking and at   
the end1  7ii7 in subparagraph 7,r71 by 
striking the period at the end and      
inserting 1 and1 and  7iii7 by adding at
 the end the following3  7,s7 the       
inclusion of any information for        
purposes of the credit under section    

#de,w which is inconsistent with the    
report provided under section #de,w7f74 
4  7,c7 ,conforming amendments  7i7     
,section #ch7;b71 as amended by section 
#bja1 is further 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   
,qualified commercial electric vehicle  
credit4  4  7,d7 ,effective date ,the   
amendments made by this paragraph shall 
apply to vehicles acquired after        
,december #ca1 #bjba4  7#ab7            
,certification by ,secretary ,no credit 
shall be allowed under section #cf;,c or
 section #de,w of the ,internal ,revenue
 ,code of #aihf for any vehicle acquired
 after ,december #ca1 #bjba1 unless the 
,secretary of the ,treasury certifies   

that no credit under either such section
 will be allowed with respect to any new
 qualified plug-in electric drive motor 
vehicle1 any qualified #b- or #c-wheeled
 plug-in electric vehicle1 or any       
qualified commercial electric vehicle   
the final assembly of which is in the   
,people's ,republic of ,china4  #bjc4   
,credit for production of clean hydrogen
  7a7 ,in general ,subpart ,d of part   
,,iv of subchapter ,a of chapter #a1 as 
amended by sections #aja1 #bja1 and     
#bjb1 is amended by adding at the end   
the following new section3  #de,x4      
,credit for production of clean hydrogen
  7a7 ,amount of credit ,for purposes of
 section #ch1 the clean hydrogen        
production credit for any taxable year  
is an amount equal to the product of--  
7#a7 the applicable amount1 multiplied  
by  7#b7 the kilograms of qualified     
clean hydrogen-- 7,a7 produced by the   
taxpayer at a qualified clean hydrogen  
production facility during the #aj-year 
period beginning on the date the        

facility was placed in service1 and     
7,b7 sold by the taxpayer to an         
unrelated person1 or used by the        
taxpayer1 during the taxable year4  7b7 
,applicable amount  7#a7 ,in general    
,for purposes of subsection 7a77#a71 the
 applicable amount shall be an amount   
equal to the applicable percentage of   
#c4jj4 ,if any amount as determined     
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 ,applicable percentage 
,for purposes of paragraph 7#a71 the    
term applicable percentage means-- 7,a7 
in the case of any qualified clean      
hydrogen which is produced through a    
process that1 as compared to hydrogen   
produced by steam-methane reforming1    
achieves a percentage reduction in      
lifecycle greenhouse gas emissions which
 is less than #ge percent1 #bj percent1 
7,b7 in the case of any qualified clean 
hydrogen which is produced through a    
process that1 as compared to hydrogen   

produced by steam-methane reforming1    
achieves a percentage reduction in      
lifecycle greenhouse gas emissions which
 is not less than #ge percent and less  
than #he percent1 #be percent1  7,c7 in 
the case of any qualified clean hydrogen
 which is produced through a process    
that1 as compared to hydrogen produced  
by steam-methane reforming1 achieves a  
percentage reduction in lifecycle       
greenhouse gas emissions which is not   
less than #he percent and less than #ie 
percent1 #cd percent1 and  7,d7 in the  
case of any qualified clean hydrogen    
which is produced through a process     
that1 as compared to hydrogen produced  
by steam-methane reforming1 achieves a  
percentage reduction in lifecycle       
greenhouse gas emissions which is not   
less than #ie percent1 #ajj percent4    
7#c7 ,inflation adjustment ,the #c4jj   
amount in paragraph 7#a7 shall be       
adjusted by multiplying such amount by  
the inflation adjustment factor 7as     
determined under section #de7;e77#b71   

determined by substituting #bjbj for    
#aiib in subparagraph 7,b7 thereof7 for 
the calendar year in which the sale or  
use of the qualified clean hydrogen     
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  7c7 ,credit reduced for     
grants1 tax-exempt bonds1 subsidized    
energy financing1 and other credits ,the
 amount of the credit determined under  
subsection 7a7 with respect to any      
qualified clean hydrogen production     
facility for any taxable year shall be  
reduced in a manner similar to the      
reduction applied under section         
#de7;b77#c74  7d7 ,definitions ,for     
purposes of this section-- 7#a7         
,lifecycle greenhouse gas emissions ,for
 purposes of this section1 the term     
lifecycle greenhouse gas emissions has  
the same meaning given such term under  
subparagraph 7,h7 of section #baa7o77#a7
 of the ,clean ,air ,act 7#db ,u4,s4,c4 

#gede7o77#a771 as in effect on the date 
of enactment of this section4  7#b7     
,qualified clean hydrogen  7,a7 ,in     
general ,the term qualified clean       
hydrogen means hydrogen which is        
produced through a process that1 as     
compared to hydrogen produced by        
steam-methane reforming of non-renewable
 natural gas1 achieves a percentage     
reduction in lifecycle greenhouse gas   
emissions which is not less than #ej    
percent4  7,b7 ,exclusion ,the term     
qualified clean hydrogen shall not      
include any hydrogen for which a credit 
is allowed for the taxable year-- 7i7   
under section #ch which is properly     
allocable to any credit determined under
 this part 7other than this section71 or
  7ii7 under subchapter ,b of chapter   
#fe of subtitle ,f4  7#c7 ,qualified    
clean hydrogen production facility  7,a7
 ,in general ,the term qualified clean  
hydrogen production facility means-- 7i7
 a facility owned by the taxpayer-- 7,i7
 which produces qualified clean hydrogen

 which1 with respect to any taxable     
year1 is sold by the taxpayer to an     
unrelated person or used by the         
taxpayer1 and  7,,ii7 which-- 7aa7      
subject to clause 7ii7 of subparagraph  
7,b71 satisfies the requirements under  
clause 7i7 of such subparagraph1 and    
7bb7 with respect to the construction of
 such facility1 satisfies the           
requirements under section #eja of the  
,clean ,energy for ,america ,act1 and   
7ii7 in connection with any facility    
described in clause 7i71 any property   
used to convert feedstock to hydrogen1  
including any equipment or supporting   
facility which-- 7,i7 accepts or        
receives feedstock1  7,,ii7 conditions  
or stores feedstock or hydrogen1 or     
7,,iii7 distributes or redistributes    
hydrogen4  7,b7 ,wage requirements  7i7 
,in general ,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-- 7,i7 the            
construction of such facility1 or       
7,,ii7 for any year described in        
subsection 7a77#b77;,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  7ii7 ,failure to satisfy
 wage requirements2 correction and      
penalty ,in the case of any taxpayer    
which fails to satisfy the requirement  
under clause 7i7 with respect to the    
construction of any facility or the     
alteration or repair of such facility in
 any year during the period described in
 clause 7i77,,ii71 rules similar to the 
rules of clauses 7i7 and 7ii7 of section
 #de,u7b77#c77;,b7 shall apply for      
purposes of this subparagraph4  7#d7    

,steam-methane reforming ,the term      
steam-methane reforming means a hydrogen
 production process in which            
high-temperature steam is used to       
produce hydrogen from natural gas1      
without carbon capture and              
sequestration4  7e7 ,special rules  7#a7
 ,in general ,rules similar to the rules
 of paragraphs 7#c7 and 7#d7 of section 
#de7;e7 shall apply for purposes of this
 section4  7#b7 ,production in the      
,united ,states ,no credit shall be     
allowed under this section with respect 
to any qualified clean hydrogen which is
 produced outside of the ,united ,states
 7as defined in section #fch7a7 or any  
possession of the ,united ,states 7as   
defined in section #fch7b774  7f7       
,credit phase-,out  7#a7 ,in general ,if
 the ,secretary and the ,administrator  
of the ,environmental ,protection       
,agency determine 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 hydrogen 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     
subsection 7b77#a74  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#a7 of 
subsection 7b7 7as adjusted by paragraph
 7#c7 of such subsection71 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  7g7 ,guidance
 ,not later than #a year after the date 
of enactment of this section1 the       
,secretary1 the ,secretary of ,energy1  
and ,administrator of the ,environmental
 ,protection ,agency shall publish      
guidance prescribing methods for        
determining the credit based on         
lifecycle greenhouse gas emissions4  4  
7b7 ,conforming amendments  7#a7        
,section #ch7;b7 of the ,internal       
,revenue ,code of #aihf1 as amended by  
section #aja1 #bja1 and #bjb1 is        
amended-- 7,a7 in paragraph 7#ce71 by   
striking plus at the end1  7,b7 in      
paragraph 7#cf71 by striking the period 

at the end and inserting 1 plus1 and    
7,c7 by adding at the end the following 
new paragraph3  7#cg7 the clean hydrogen
 production credit determined under     
section #de,x7a74  4  7#b7 ,the table of
 sections for subpart ,d of part ,,iv of
 subchapter ,a of chapter #a1 as amended
 by sections #aja1 #bja1 and #bjb1 is   
amended by adding at the end the        
following new item3  ,sec4 #de,x4 ,clean
 hydrogen production credit4  4  7c7    
,effective date ,the amendments made by 
this section shall apply to hydrogen    
used or sold after ,december #ca1 #bjbj4
  #bjd4 ,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 ,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 applicable national      
program requirements under-- 7,i7 the   
,energy ,star ,residential ,new         
,construction 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 in the case of a      
multifamily dwelling unit1 subject to   
clause 7ii7 of subparagraph 7,b71 which 
satisfies the requirements under clause 
7i7 of such subparagraph4  7,b7 ,wage   
requirements  7i7 ,in general ,the      
requirements described in this clause   
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  7ii7 ,correction and    
penalty related to failure to satisfy   
wage requirements ,in the case of any   
taxpayer which fails to satisfy the     
requirement under clause 7i7 with       
respect to any dwelling unit1 rules     
similar to the rules of section         
#de,u7b77#c77;,b77ii7 shall apply for   
purposes of this subparagraph4  7,c7    
,denial of double benefit ,the term     
qualified residence does not include any
 dwelling unit for which a deduction    
determined under section #agi;,d is     
allowed for the taxable year in which   

the dwelling unit is acquired as        
provided in subsection 7a77#b74  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 ,secretary and the      
,secretary of ,energy1 and  7#b7 in     
accordance with-- 7,a7 any applicable   
rules under the national program        
requirements of the ,energy ,star       
,residential ,new ,construction 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 ,secretary   
and 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 each
 of the dollar amounts in paragraph     
7#a77;,b7 7after application of         
subsection 7c77#b77 and subsections     
7a77#b71 7c77#b77;,a71 and              
7c77#b77;,b77i77,i7 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 as provided in subparagraph 7,b71
 meets or exceeds the requirements of-- 
7i7 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 or  7ii7 if no standard        
established by the ,consortium for      
,energy ,efficiency applies to such     
property1 an equivalent standard as     
established by the ,secretary and the   
,administrator of the ,environmental    
,protection ,agency1  7,b7 in the case  

of a building envelope improvement-- 7i7
 except as provided in clause 7ii7 or   
7iii71 meets or exceeds the latest      
applicable requirements of the ,energy  
,star program 7or any successor program1
 as determined by the ,secretary71 as in
 effect on ,january #a of the year in   
which the property is placed in service1
  7ii7 in the case of a window          
treatment1 meets or exceeds the         
applicable certification requirements   
for such product under the ,attachments 
,energy ,rating ,council certification  
program1 or  7iii7 in the case of       
insulation described in subsection      
7d77#b77;,a71 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  7,c7 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,d7 is for use in 
a dwelling unit which is located in the 
,united ,states and used as a residence 
by the individual1 and  7,e7 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,c7 through 7,e7 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 be      
applied without regard to the applicable

 qualified property amount for such     
property4  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 as of       
,january #a of the calendar year in     
which 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 applicable requirements under       
paragraph 7#a71 subsection 7b77#a7 shall
 be applied without regard to the lesser
 of and without regard to subparagraph  
7,b74  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 system1 including air       
barrier insulation1 which 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  7,b7 exterior  

doors and windows 7including skylights74
  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     
,maximum amount of deduction  7#a7 ,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 the #c years
 immediately preceding such taxable     
year4  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 and  7,b7 in subsection 7d77#a77;,a7--
 7i7 by striking subsection 7b7 and     
inserting subsection 7b77#b71 and  7ii7 
by striking #a4hj and inserting #b4ej4  
7#b7 ,inflation adjustment ,section     
#agi;,d7g7 is amended to read as        
follows3  7g7 ,inflation adjustment     
7#a7 ,in general ,in the case of a      
taxable year beginning after #bjbb1 each
 dollar amount in subsection 7b77#b7    
7and the #b4ej amount in subsection     
7d77#a77;,a77 shall be increased by an  
amount equal to-- 7,a7 such dollar      
amount1 multiplied by  7,b7 the         
cost-of-living adjustment determined    
under section #a7;f77#c7 for the        
calendar year in which the taxable year 
begins1 determined by substituting      
calendar year #bjba for calendar year   
#bjaf in subparagraph 7,a77ii7 thereof4 
,any increase determined under the      
preceding sentence which is not a       
multiple of #aj cents shall be rounded  
to the nearest multiple of #aj cents4   

7#b7 ,partial allowance ,in the case of 
a taxable year beginning after #bjbj1   
the 4#fj amount in 7d77#a77;,a7 shall be
 increased by an amount equal to-- 7,a7 
such dollar amount1 multiplied by  7,b7 
the cost-of-living adjustment determined
 under section #a7;f77#c7 for the       
calendar year in which the taxable year 
begins1 determined by substituting      
calendar year #bjai for calendar year   
#bjaf in subparagraph 7,a77ii7 thereof4 
,any increase determined under the      
preceding sentence which is not a       
multiple of #a cent shall be rounded to 
the nearest cent4  4  7b7 ,definition of
 energy efficient building property     
7#a7 ,energy reduction standard ,section
 #agi;,d7c77#a77;,d7 is amended by      
striking #ej percent and inserting #be  
percent4  7#b7 ,inclusion of multifamily
 buildings  7,a7 ,in general            
,subparagraph 7,b7 of section           
#agi;,d7c77#a7 is amended to read as    
follows3  7,b7 which is installed on or 
in any commercial building or           

multifamily building which is located   
within the ,united ,states1  4  7,b7    
,application of standards ,subparagraph 
7,d7 of section #agi;,d7c7 is amended-- 
7i7 by striking meets the minimum       
requirements of ,reference ,standard    
#ij4a using methods of calculation under
 subsection 7d77#b7 and inserting       
meets-- 7i7 in the case of any property 
within the scope of ,reference ,standard
 #ij4a1 the minimum requirements of     
,reference ,standard #ij4a using methods
 of calculation under subsection        
7d77#b71 and  7ii7 in the case of any   
other property1 the minimum requirements
 of a comparable standard to ,reference 
,standard #ij4a which shall be          
determined by the ,secretary and the    
,secretary of ,energy using methods of  
calculation under subsection 7d77#b74  4
  7,c7 ,definitions ,subsection 7c7 of  
section #agi;,d is amended by adding at 
the end the following new paragraphs3   
7#c7 ,commercial building ,the term     
commercial building means a building    

with a primary use or purpose other than
 as residential housing4  7#d7          
,multifamily building ,the term         
multifamily building means a structure  
of #e or more dwelling units with a     
primary use as residential housing1 and 
includes such buildings owned and       
operated as a condominium1 cooperative1 
or other common interest community4  4  
7#c7 ,wage and workforce requirements   
7,a7 ,in general ,section               
#agi;,d7c77#a71 as amended by paragraph 
7#b71 is amended-- 7i7 in subparagraph  
7,c77iii71 by striking and at the end1  
7ii7 in subparagraph 7,d71 by striking  
the period at the end and inserting 1   
and1 and  7iii7 by adding at the end the
 following3  7,e7 which satisfies the   
requirements-- 7i7 subject to           
subparagraph 7,b7 of subsection 7d77#g71
 under subparagraph 7,a7 of such        
subsection1 and  7ii7 with respect to   
the construction of such property1 the  
requirements under section #eja of the  
,clean ,energy for ,america ,act4  4    

7,b7 ,requirements ,section #agi7;d7 is 
amended by adding at the end the        
following new paragraph3  7#g7 ,wage    
requirements  7,a7 ,in general ,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 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  7,b7      
,correction and penalty related to      
failure to satisfy wage requirements ,in
 the case of any taxpayer which fails to
 satisfy the requirement under          
subparagraph 7,a7 with respect to any   
property1 rules similar to the rules of 
section #de,u7b77#c77;,b77ii7 shall     
apply for purposes of this paragraph4  4

  7#d7 ,election to use different       
standards for retrofits ,section #agi;,d
 is amended by redesignating subsection 
7h7 as subsection 7i7 and by inserting  
after subsection 7g7 the following new  
subsection3  7h7 ,alternative method for
 energy efficient retrofit building     
property  7#a7 ,in general ,in the case 
of a taxpayer which elects 7at such time
 and in such manner as the ,secretary   
may provide7 the application of this    
subsection with respect to any qualified
 building1 the amount of the deduction  
allowed under subsection 7a7-- 7,a7     
shall be determined-- 7i7 by            
substituting energy usage intensity for 
total annual energy and power costs in  
subsection 7b77#b71 and  7ii7 without   
regard to subsection 7c77#a77;,d71 and  
7,b7 shall be allowed for the taxable   
year which includes the date of the     
qualifying final certification with     
respect to the qualified retrofit plan  
of such building in lieu of the taxable 
year in which the property is placed in 

service4  7#b7 ,qualified building ,for 
purposes of this subsection1 the term   
qualified building means a commercial   
building or multifamily building-- 7,a7 
which is located in the ,united ,states1
  7,b7 with respect to which a qualified
 retrofit plan has been established1 and
  7,c7 which was originally placed in   
service not less than #e years before   
the establishment of the qualified      
retrofit plan with respect to such      
building4  7#c7 ,qualified retrofit plan
 ,for purposes of this subsection1 the  
term qualified retrofit plan means a    
written plan prepared by a qualified    
professional which specifies specific   
modifications to a building which1 in   
the aggregate1 are expected to reduce   
such building's energy usage intensity  
by #be percent or more in comparison to 
the baseline energy usage intensity of  
such building4 ,such plan shall provide 
for a qualified professional to-- 7,a7  
as of any date during the #a-year period
 ending on the date of the first        

certification described in subparagraph 
7,b71 certify the energy usage intensity
 of such building as of such date1  7,b7
 certify the status of property         
installed pursuant to such plan as      
meeting the requirements of             
subparagraphs 7,b7 and 7,c7 of          
subsection 7c77#a71 and  7,c7 as of any 
date following completion of the plan1  
certify-- 7i7 the energy usage intensity
 of such building as of such date1 and  
7ii7 the portfolio manager score of such
 building as of such date4  7#d7        
,qualifying final certification ,for    
purposes of this subsection1 the term   
qualifying final certification means1   
with respect to any qualified retrofit  
plan1 the certification described in    
paragraph 7#c77;,c7 if-- 7,a7 the energy
 usage intensity certified in such      
certification is not more than #ge      
percent of the baseline energy usage    
intensity of the building1 and  7,b7 the
 portfolio manager score certified in   
such certification is not less than #ej4

  7#e7 ,other definitions ,for purposes 
of this subsection-- 7,a7 ,baseline     
energy usage intensity ,the term        
baseline energy usage intensity means   
the energy usage intensity certified    
under paragraph 7#c77;,a74  7,b7        
,portfolio manager score ,the term      
portfolio manager score means the score 
determined under the methodology 7as in 
effect on the date of the enactment of  
this ,act7 developed by the             
,administrator of the ,environmental    
,protection ,agency for rating a        
building's energy efficiency for        
purposes of the ,energy ,star program4  
,modifications after the date of the    
enactment of this paragraph to such     
methodology shall be taken into account 
under this paragraph as provided by the 
,secretary and such ,administrator4     
7,c7 ,energy usage intensity ,the term  
energy usage intensity means energy     
usage intensity determined in accordance
 with such regulations or other guidance
 as the ,secretary may provide and      

measured in ,british thermal units4     
7,d7 ,qualified professional ,the term  
qualified professional means an         
individual who is a licenced architect  
or a licenced engineer and meets such   
other requirements as the ,secretary may
 provide4  7#f7 ,certain rules not      
applicable ,paragraphs 7#a71 7#e71 and  
7#f77;,b7 of subsection 7d7 shall not   
apply for purposes of this subsection4  
4  7c7 ,other rules  7#a7 ,allocation of
 deduction ,section #agi;,d7d77#d7 is   
amended to read as follows3  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  4  7#b7 ,elimination 
of interim rule for lighting systems    
,section #agi;,d1 as amended by         
subsections 7a77#b7 and 7b77#d71 is     
amended by striking subsection 7f7 and  
by redesignating subsections 7g71 7h71  
and 7i7 as subsections 7f71 7g71 and    
7h71 respectively4  7#c7 ,application to
 real estate investment trust earnings  
and profits ,section #cab7k77#c77;,b7 is
 amended-- 7,a7 by striking ,for        
purposes of computing the earnings and  
profits of a corporation and inserting  
the following3  7,i7 ,in general ,for   
purposes of computing the earnings and  
profits of a corporation1 except as     
provided in clause 7ii7  1 and  7,b7 by 

adding at the end the following new     
clause3  7,,ii7 ,special rule ,in the   
case of a corporation that is a real    
estate investment trust1 any amount     
deductible under section #agi;,d shall  
be allowed in the year in which the     
property giving rise to such deduction  
is placed in service4  4  7d7 ,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 ,termination
 of certain fossil fuel provisions      
#dja4 ,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 date of the enactment of the  
,clean ,energy for ,america ,act occurs4
  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 date of the enactment of the  
,clean ,energy for ,america ,act occurs 
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 date of the enactment 
of the ,clean ,energy for ,america ,act 
occurs 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  7#a7 ,in general ,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  7#b7 ,conforming        

amendments  7,a7 ,section #bia7;b7 is   
amended-- 7i7 in paragraph 7#a71 by     
striking without regard to this section7
 and all that follows and inserting     
without regard to this section7 under   
section #faf7;a7 or #fag7;a7 shall be   
reduced by #cj percent41  7ii7 in       
paragraph 7#b71 by striking section     
#bfc7;c71 #faf7;a71 or #fag7;a7 and     
inserting section #faf7;a7 or #fag7;a71 
7iii7 by striking paragraph 7#d71 and   
7iv7 by redesignating paragraph 7#e7 as 
paragraph 7#d74  7,b7 ,section #eg7;a7  
is amended by striking paragraph 7#b74  
7f7 ,percentage depletion  7#a7         
,percentage depletion of oil and gas    
wells1 coal1 lignite1 and oil shale     
7,a7 ,in general ,section #fac is       
amended-- 7i7 in subsection 7a71 by     
striking 7#ajj percent in the case of   
oil and gas properties71  7ii7 in       
subsection 7b7-- 7,i7 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  7,,ii7
 in paragraph 7#d71 by striking coal1   
lignite11  7,,iii7 in paragraph 7#e71 by
 inserting 7except oil shale7 after clay
 and shale1  7,,iv7 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 
and  7,v7 in paragraph 7#g71 by striking
 or at the end of subparagraph 7,b71 by 
striking the period at the end of       
subparagraph 7,c7 and inserting 2 or1   
and by adding at the end the following  
new subparagraph3  7,d7 coal1 lignite1  
and oil shale4  1  7iii7 in subsection  
7c77#a71 striking other than an oil or  
gas well and1  7iv7 in subsection       
7c77#d7-- 7,i7 by striking subparagraphs
 7,a7 and 7,h71  7,,ii7 by inserting and
 at the end of subparagraph 7,g71       
7,,iii7 by redesignating subparagraphs  
7,b7 through 7,g7 as subparagraphs 7,a7 
through 7,f71 respectively1 and  7,,iv7 
by redesignating subparagraph 7,i7 as   

subparagraph 7,g71  7v7 in subsection   
7d71 by striking ,except as provided in 
section #fac;,a1 in the case of and     
inserting ,in the case of1 and  7vi7 in 
subsection 7e77#b71 by striking or      
section #fac;,a4  7,b7 ,conforming      
amendments  7i7 ,section #bia7;a77#b7 is
 amended by striking and coal 7including
 lignite74  7ii7 7,i7 ,part ,i of       
subchapter ,i of chapter #a is amended  
by striking section #fac;,a 7and the    
item relating to such section in the    
table of sections74  7,,ii7 ,section    
#de;,h7d7 is amended by striking section
 #fac;,a7d77#c7 and inserting section   
#afg7;h77#e77;,c74  7,,iii7 ,section    
#eg7;a77#a7 is amended by striking the  
last sentence4  7,,iv7 ,section         
#afg7;h77#e7 is amended-- 7aa7 by       
striking subparagraph 7,b77iii7 and     
inserting the following3  7iii7 which-- 
7,i7 engages 7by itself or with a       
related person7 in the refining of crude
 oil1 and  7,,ii7 together with related 
persons1 has average daily refinery runs

 for the taxable year 7determined by    
dividing the aggregate refinery runs for
 the taxable year by the number of days 
in the taxable year7 in excess of       
#ge1jjj barrels4  1 and  7bb7 by adding 
at the end the following new            
subparagraph3  7,c7 ,related person ,for
 purposes of subparagraph 7,b77iii71 a  
person is a related person with respect 
to the taxpayer if a significant        
ownership interest in either the        
taxpayer or such person is held by the  
other1 or if a third person has a       
significant ownership interest in both  
the taxpayer and such person4 ,for      
purposes of the preceding sentence1 the 
term significant ownership interest     
means-- 7i7 with respect to any         
corporation1 #ae percent or more in     
value of the outstanding stock of such  
corporation1  7ii7 with respect to a    
partnership1 #ae percent or more        
interest in the profits or capital of   
such partnership1 and  7iii7 with       
respect to an estate or trust1 #ae      

percent or more of the beneficial       
interests in such estate or trust4  ,for
 purposes of determining a significant  
ownership interest1 an interest owned by
 or for a corporation1 partnership1     
trust1 or estate shall be considered as 
owned directly both by itself and       
proportionately by its shareholders1    
partners1 or beneficiaries1 as the case 
may be4  4  7,v7 ,section #gjc7;a77#b7  
is amended by inserting and at the end  
of subparagraph 7,d71 by striking 1 and 
at the end of subparagraph 7,e7 and     
inserting a period1 and by striking     
subparagraph 7,f74  7,,vi7 ,section     
#gje7;a7 is amended by inserting and at 
the end of paragraph 7#a77;,c71 by      
striking 2 and at the end of paragraph  
7#b77;,b7 and inserting a period1 and by
 striking paragraph 7#c74  7,,vii7      
,section #abjb7;e77#c77;,d7 is amended  
by striking or #fac;,a4  7,,viii7       
,section #acfg7;a77#b7 is amended by    
inserting and at the end of subparagraph
 7,c71 by striking 1 and at the end of  

subparagraph 7,d7 and inserting a       
period1 and by striking subparagraph    
7,e74  7iii7 ,section #iic7;c77#b77;,c7 
is amended by striking 7including oil1  
gas1 coal1 or uranium products7 under   
section #fac or #fac;,a and inserting   
7including uranium products7 under      
section #fac4  7iv7 ,section            
#addf7;c77#b7 is amended by striking but
 the amount of such deduction shall be  
determined without regard to sections   
#fac and #fac;,a4  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  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 amendments  7,a7     
,section #bgb is amended by striking    
coal or each place it appears4  7,b7    
,section #adjb7;a77#c77;,b7 is amended  
by striking coal14  7,c7 7i7 ,the       
heading of section #fca is amended by   
striking 1 coal14  7ii7 ,the item       
relating to section #fca in the table of
 sections for part ,,iii of subchapter  
,i of chapter #a is amended by striking 
1 coal14  7#c7 ,effective date ,the     
amendments made by this subsection shall
 apply to dispositions 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 7i7 ,section #de,q7e7 is   
amended by adding at the end the        
following new paragraph3  7#d7          
,inflation adjustment factor ,the term  

inflation adjustment factor means1 with 
respect to any calendar year1 a fraction
 the numerator of which is the ,,gnp    
implicit price deflator for the         
preceding calendar year and the         
denominator of which is the ,,gnp       
implicit price deflator for #bjjh4 ,for 
purposes of the preceding sentence1 the 
term ,,gnp implicit price deflator means
 the first revision of the implicit     
price deflator for the gross national   
product as computed and published by the
 ,secretary of ,commerce4 ,not later    
than ,april #a of any calendar year1 the
 ,secretary shall publish the inflation 
adjustment factor for the preceding     
calendar year4  4  7ii7 ,section #de,q1 
as amended by this ,act1 is amended in  
subsection 7b77#a7 by striking          
determined under section                
#dc7;b77#c77;,b7 for such calendar year1
 determined by substituting #bjbe for   
#aiij each place it appears in          
subparagraph 7,a77ii7 and 7,b77ii7 and  
inserting determined under subsection   

7e77#d7 by substituting #bjbe for #bjjh4
  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     
,repeal of passive loss exception for   
oil and gas interests  7#a7 ,in general 
,section #dfi7;c77#c77;,a7 is amended-- 
7,a7 by striking ,the term and inserting
 the following3  7i7 ,exception ,the    
term  4  7,b7 by adding at the end the  
following new clause3  7ii7 ,termination
 ,clause 7i7 shall not apply to any     
taxable year beginning after the date of
 the enactment of the ,clean ,energy for
 ,america ,act4  4  7#b7 ,conforming    
amendment ,section #dfi7;c77#d7 is      
amended by striking ,paragraphs 7#b7 and
 7#c7 and inserting ,paragraphs 7#b7 and
 7#c77;,a77i74  7m7 ,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 
#djb4 ,modification of certain          
provisions relating to oil1 gas1 and    
other fossil fuels  7a7 ,modifications  
of foreign tax credit rules applicable  
to major integrated oil companies which 
are dual capacity taxpayers  7#a7 ,in   
general ,section #ija is amended by     
redesignating subsection 7n7 as         
subsection 7o7 and by inserting after   
subsection 7m7 the following new        
subsection3  7n7 ,special rules relating
 to major integrated oil companies which
 are dual capacity taxpayers  7#a7      
,general rule ,notwithstanding any other
 provision of this chapter1 any amount  

paid or accrued by a dual capacity      
taxpayer which is a major integrated oil
 company 7within the meaning of section 
#afg7;h77#e77 to a foreign country or   
possession of the ,united ,states for   
any period shall not be considered a    
tax-- 7,a7 if1 for such period1 the     
foreign country or possession does not  
impose a generally applicable income    
tax1 or  7,b7 to the extent such amount 
exceeds the amount 7determined in       
accordance with regulations7 which-- 7i7
 is paid by such dual capacity taxpayer 
pursuant to the generally applicable    
income tax imposed by the country or    
possession1 or  7ii7 would be paid if   
the generally applicable income tax     
imposed by the country or possession    
were applicable to such dual capacity   
taxpayer4  ,nothing in this paragraph   
shall be construed to imply the proper  
treatment of any such amount not in     
excess of the amount determined under   
subparagraph 7,b74  7#b7 ,dual capacity 
taxpayer ,for purposes of this          

subsection1 the term dual capacity      
taxpayer means1 with respect to any     
foreign country or possession of the    
,united ,states1 a person who-- 7,a7 is 
subject to a levy of such country or    
possession1 and  7,b7 receives 7or will 
receive7 directly or indirectly a       
specific economic benefit 7as determined
 in accordance with regulations7 from   
such country or possession4  7#c7       
,generally applicable income tax ,for   
purposes of this subsection-- 7,a7 ,in  
general ,the term generally applicable  
income tax means an income tax 7or a    
series of income taxes7 which is        
generally imposed under the laws of a   
foreign country or possession on income 
derived from the conduct of a trade or  
business within such country or         
possession4  7,b7 ,exceptions ,such term
 shall not include a tax unless it has  
substantial application1 by its terms   
and in practice1 to-- 7i7 persons who   
are not dual capacity taxpayers1 and    
7ii7 persons who are citizens or        

residents of the foreign country or     
possession4  4  7#b7 ,effective ,date   
7,a7 ,in general ,the amendments made by
 this subsection shall apply to taxes   
paid or accrued in taxable years        
beginning after the date of the         
enactment of this ,act4  7,b7 ,contrary 
treaty obligations upheld ,the          
amendments made by this subsection shall
 not apply to the extent contrary to any
 treaty obligation of the ,united       
,states4  7b7 ,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 7as in effect  
on the day before the date of enactment 
of the ,clean ,energy for ,america ,act7
 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  7c7 ,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  7d7 ,clarification of
 tar sands as crude oil for excise tax  
purposes  7#a7 ,in general ,paragraph   
7#a7 of section #dfab7;a7 is amended to 
read as follows3  7#a7 ,crude oil ,the  
term crude oil includes crude oil       
condensates1 natural gasoline1 any      
bitumen or bituminous mixture1 any oil  
derived from a bitumen or bituminous    
mixture 7including oil derived from tar 
sands71 and any oil derived from        
kerogen-bearing sources 7including oil  

derived from oil shale74  4  7#b7       
,technical amendment ,paragraph 7#b7 of 
section #dfab7;a7 is amended by striking
 from a well located4  7#c7 ,effective  
date ,the amendments made by this       
subsection shall apply to oil and       
petroleum products received1 entered1   
used1 or exported after ,december #ca1  
#bjba4  ,v ,workforce development       
requirements  #eja4 ,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 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      
effort to comply with the requirements  
of this section2 or  7#b7 in the case of
 any failure by the taxpayer to satisfy 
the requirement under subsection 7a7    
with respect to the construction1       
alteration1 or repair work on any       
applicable project to which paragraph   
7#a7 does not apply1 makes payment to   
the ,secretary of the ,treasury 7or the 

,secretary's delegate7 of a penalty in  
an amount equal to the product of-- 7,a7
 #ejj1 multiplied by  7,b7 the total    
labor hours for which the requirement   
described in such subsection was not    
satisfied with respect to the           
construction1 alteration1 or repair work
 on such applicable project4  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#i77;,a77ii7 of section #de,q of    
such ,code1  7,c7 subsection            
7b77#a77;,a77iv77,,ii7 of section #de,u 
of such ,code1  7,d7 subsection         
7e77#d77;,a77ii77,,ii7 of section #de,v 
of such ,code1  7,e7 subsection         
7d77#c77;,a77i77,,ii77bb7 of section    
#de,x of such ,code1  7,f7 subsection   
7d77#c77;,a77ii77,,ii7 of section #dh;,c
 of such ,code1  7,g7 subsections       
7b77#c77;,a77iv77,,ii7 and              

7c77#a77;,b77ii7 of section #dh;,d of   
such ,code1 and  7,h7 subsection        
7c77#a77;,e77ii7 of section #agi;,d of  
such ,code1  any property1 equipment1 or
 facility for which a credit is allowed 
or determined 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  ,,vi ,miscellaneous  #fja4      
,adjustment of qualifying advanced      
energy project credit  7a7 ,in general  
,section #dh;,c is amended-- 7#a7 in    
subsection 7c77#a7-- 7,a7 in            
subparagraph 7,a7-- 7i7 by inserting 1  
any portion of the qualified investment 
of which is certified by the ,secretary 
under subsection 7d7 as eligible for a  
credit under this section after means a 
project1  7ii7 in clause 7i7-- 7,i7 by  
striking a manufacturing facility for   
the production of and inserting an      
industrial or manufacturing facility for
 the production or recycling of1  7,,ii7
 in clause 7,i71 by inserting water1    
after sun11  7,,iii7 in clause 7,,ii71  
by striking an energy storage system for
 use with electric or hybrid-electric   
motor vehicles and inserting energy     
storage systems and components1  7,,iv7 
in clause 7,,iii71 by striking grids to 
support the transmission of intermittent

 sources of renewable energy1 including 
storage of such energy and inserting    
grid modernization equipment or         
components1  7,v7 in subclause 7,,iv71  
by striking and sequester carbon dioxide
 emissions and inserting 1 remove1 use1 
or sequester carbon oxide emissions1    
7,,vi7 by striking subclause 7,v7 and   
inserting the following3  7,v7 equipment
 designed to refine1 electrolyze1 or    
blend any fuel1 chemical1 or product    
which is-- 7aa7 renewable1 or  7bb7     
low-carbon and low-emission1  1  7,,vii7
 by striking subclause 7,,vi71  7,,viii7
 by redesignating subclause 7,,vii7 as  
subclause 7,,ix71  7,,ix7 by inserting  
after subclause 7,v7 the following new  
subclauses3  7,,vi7 property designed to
 produce energy conservation            
technologies 7including residential1    
commercial1 and industrial              
applications71  7,,vii7 light-1 medium-1
 or heavy-duty electric or fuel cell    
vehicles1 as well as-- 7aa7             
technologies1 components1 or materials  

for such vehicles1 and  7bb7 associated 
charging or refueling infrastructure1   
7,,viii7 hybrid vehicles with a gross   
vehicle weight rating of not less than  
#ad1jjj pounds1 as well as technologies1
 components1 or materials for such      
vehicles1 or  1 and  7,x7 in subclause  
7,,ix71 as so redesignated1 by striking 
and at the end and inserting or1 and    
7iii7 by striking clause 7ii7 and       
inserting the following3  7ii7 which    
re-equips an industrial or manufacturing
 facility with equipment designed to    
reduce its greenhouse gas emissions well
 below current best practices through   
the installation of-- 7,i7 low- or      
zero-carbon process heat systems1       
7,,ii7 carbon capture1 transport1       
utilization and storage systems1        
7,,iii7 energy efficiency and reduction 
in waste from industrial processes1 or  
7,,iv7 any industrial technology which  
significantly reduces greenhouse gas    
emissions1 as determined by the         
,secretary4  4  7,b7 by redesignating   

subparagraph 7,b7 as subparagraph 7,c71 
and  7,c7 by inserting after            
subparagraph 7,a7 the following new     
subparagraph3  7,b7 ,additional         
qualifying advanced energy projects ,the
 term qualifying advanced energy project
 shall also include any project         
described in subparagraph 7,a7 which is 
located in a census tract-- 7i7 which1  
prior to the date of enactment of the   
,clean ,energy for ,america ,act1 had no
 projects which received a certification
 and allocation of credits under        
subsection 7d71 and  7ii7 7,i7 in which1
 after ,december #ca1 #aiii1 a coal mine
 has closed1  7,,ii7 in which1 after    
,december #ca1 #bjji1 a coal-fired      
electric generating unit has been       
retired1 or  7,,iii7 which is           
immediately adjacent to a census tract  
described in subclause 7,i7 or 7,,ii74  
1  7#b7 in subsection 7d7-- 7,a7 in     
paragraph 7#a7-- 7i7 in subparagraph    
7,a71 by striking this section and      
inserting the ,clean ,energy for        

,america ,act1 and  7ii7 by striking    
subparagraph 7,b7 and inserting the     
following3  7,b7 ,limitations  7i7      
,initial allocation ,the total amount of
 credits that may be allocated under the
 program prior to the date of enactment 
of the ,clean ,energy for ,america ,act 
shall not exceed #b1cjj1jjj1jjj4  7ii7  
,additional allocation ,the total amount
 of credits that may be allocated under 
the program on or after to the date of  
enactment of the ,clean ,energy for     
,america ,act shall not exceed          
#h1jjj1jjj1jjj1 of which not greater    
than #d1jjj1jjj1jjj may be allocated to 
projects which are not located in a     
census tract described in subparagraph  
7,b7 of subsection 7c77#a74  1  7,b7 in 
paragraph 7#b7-- 7i7 in subparagraph    
7,a71 by striking #b-year and inserting 
#c-year1  7ii7 in subparagraph 7,b7--   
7,i7 by striking #a year and inserting  
#ah months1 and  7,,ii7 by adding at the
 end the following new sentence3 ,not   
later than #ahj days after the date on  

which such evidence was provided by the 
applicant1 the ,secretary shall         
determine whether the requirements of   
the certification have been met41 and   
7iii7 by adding at the end the following
 new subparagraph3  7,d7 ,location of   
project ,in the case of an applicant    
which receives a certification1 if the  
,secretary determines that the project  
has been placed in service at a location
 which is materially different than the 
location specified in the application   
for such project1 the certification     
shall no longer be valid4  1  7,c7 in   
paragraph 7#c7-- 7i7 by striking        
subparagraph 7,a7 and inserting the     
following3  7,a7 shall take into        
consideration only those projects-- 7i7 
for which there is a reasonable         
expectation of commercial viability1 and
  7ii7 which-- 7,i7 satisfies the       
requirements under paragraph 7#f71 and  
7,,ii7 with respect to the re-equipping1
 expansion1 or establishment of an      
industrial or manufacturing facility1   

satisfies the requirements under section
 #eja of the ,clean ,energy for ,america
 ,act1 and  1 and  7ii7 in subparagraph 
7,b7-- 7,i7 by striking clauses 7i7 and 
7ii7 and inserting the following3  7i7  
will provide the greatest net impact in 
avoiding or reducing anthropogenic      
emissions of greenhouse gases 7or1 in   
the case of a project described in      
subsection 7c77#a77;,a77ii71 will       
provide the greatest reduction of       
greenhouse gas emissions as compared to 
current best practices71  7ii7 will     
provide the greatest domestic job       
creation 7both direct and indirect7     
during the credit period1  1  7,,ii7 by 
redesignating clauses 7iii7 through 7v7 
as clauses 7iv7 through 7vi71           
respectively1 and  7,,iii7 by inserting 
after clause 7ii7 the following new     
clause3  7iii7 will provide the greatest
 job creation within the vicinity of the
 project1 particularly with respect to--
 7,i7 low-income communities 7as defined
 in section #de;,d7e771 and  7,,ii7     

dislocated workers who were previously  
employed in manufacturing1 coal power   
plants1 or coal mining1  1  7,d7 in     
paragraph 7#d7-- 7i7 by striking        
subparagraph 7,a7 and inserting the     
following3  7,a7 ,review and report ,not
 later than #d years after the date of  
enactment of the ,clean ,energy for     
,america ,act1 the ,secretary shall--   
7i7 review the credits allocated under  
this section as of such date1 and  7ii7 
submit a report regarding the allocation
 of such credits to-- 7,i7 the          
,committee on ,finance and the          
,committee on ,energy and ,natural      
,resources of the ,senate1 and  7,,ii7  
the ,committee on ,ways and ,means and  
the ,committee on ,energy and ,commerce 
of the ,house of ,representatives4  1   
and  7ii7 by adding at the end the      
following new subparagraph3  7,d7       
,special rule ,for purposes of          
reallocating credits pursuant to this   
paragraph1 the limitation under         
paragraph 7#a77;,b77ii7 with respect to 

allocation of credits to projects which 
are not located in a census tract       
described in subparagraph 7,b7 of       
subsection 7c77#a7 shall not apply4  1  
and  7,e7 by adding at the end the      
following3  7#f7 ,wage requirements     
7,a7 ,in general ,the requirements      
described in this subparagraph with     
respect to any project are that the     
taxpayer shall ensure that any laborers 
and mechanics employed by contractors   
and subcontractors in the re-equipping1 
expansion1 or establishment of an       
industrial or manufacturing facility    
shall be paid wages at rates not less   
than the prevailing rates for           
construction or alteration 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,b7 ,correction and    
penalty related to failure to satisfy   
wage requirements ,in the case of any   
taxpayer which fails to satisfy the     

requirement under subparagraph 7,a7 with
 respect to any project-- 7i7 rules     
similar to the rules of section         
#de,u7b77#c77;,b77ii7 shall apply for   
purposes of this paragraph1 and  7ii7 if
 the failure to satisfy the requirement 
under subparagraph 7,a7 is not corrected
 pursuant to the rules described in     
clause 7i71 the certification with      
respect to such project shall no longer 
be valid4  1  7#c7 in subsection 7e71 by
 striking #dh1 #dh;,a1 or #dh;,b and    
inserting #de,q1 #dh1 #dh;,a1 #dh;,b1 or
 #dh;,d1 and  7#d7 by adding at the end 
the following3  7f7 ,special rule for   
property financed by subsidized energy  
financing or industrial development     
bonds ,rules similar to the rules in    
section #dh7;a77#d7 shall apply for     
purposes of this section4  7g7          
,technical assistance ,for purposes of  
assisting with applications for         
certification under subsection 7d71 the 
,secretary of ,energy shall provide     
technical assistance to any ,state 7or  

political subdivision thereof71 tribe1  
or economic development organization    
which1 prior to the date of enactment of
 the ,clean ,energy for ,america ,act-- 
7#a7 had no applicants for certification
 under such subsection1 or  7#b7 had    
less than #b qualifying advanced energy 
projects which received an allocation of
 credits under such subsection4  7h7    
,election for direct payment  7#a7 ,in  
general ,in the case of any eligible    
property placed in service during any   
taxable year which is part of a         
qualifying advanced energy project1 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  7,a7 ,in general ,an election 

under paragraph 7#a7 shall be made as   
part of the application for             
certification under subsection          
7d77#b77;,a7 and in such manner as the  
,secretary may prescribe4 ,such         
election1 once made1 shall-- 7i7 be     
irrevocable with respect to the eligible
 property to which such election        
applies1 and  7ii7 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,b7 ,additional information ,for       
purposes of an election under paragraph 
7#a71 the ,secretary may require such   
information as the ,secretary deems     
necessary for purposes of preventing    
duplication1 fraud1 or any improper     
payments under this subsection4  7#c7   
,application to partnerships and ,s     
corporations2 excess payments ,rules    
similar to the rules of paragraphs 7#c7 
and 7#e7 of section #de,u7h7 shall apply

 for purposes of this subsection4  7#d7 
,special rules for certain entities     
7,a7 ,eligibility of certain property   
,for purposes of this subsection1       
paragraphs 7#c7 and 7#d7 of section     
#ej7;b7 shall not apply with respect    
to-- 7i7 any ,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 subsection71     
7ii7 any mutual or cooperative electric 
company described in section            
#eja7;c77#ab7 or section                
#acha7;a77#b77;,c71 or  7iii7 an ,indian
 tribal government 7as defined in       
section #aci;,e7c77#a774  7,b7 ,certain 
entities treated as taxpayers ,in the   
case of an election under this          
subsection1 any entity described in     
clause 7i71 7ii71 or 7iii7 of           
subparagraph 7,a7 shall be treated as a 
taxpayer for purposes of this subsection
 and determining the amount of any      
credit under subsection 7a74  4  7b7    

,authorization of appropriations ,to    
carry out subsection 7f7 of section     
#dh;,c of the ,internal ,revenue ,code  
of #aihf 7as added by subsection        
7a77#d771 there is authorized to be     
appropriated to the ,state ,energy      
,program of the ,department of ,energy1 
out of moneys in the ,treasury not      
otherwise appropriated1 #ejj1jjj1 to    
remain available until expended4  7c7   
,effective date ,the amendments made by 
this section shall apply to property    
placed in service after ,december #ca1  
#bjba4  #fjb4 ,issuance of exempt       
facility bonds for qualified carbon     
dioxide capture facilities  7a7 ,in     
general ,section #adb is amended-- 7#a7 
in subsection 7a7-- 7,a7 in paragraph   
7#ad71 by striking or at the end1  7,b7 
in paragraph 7#ae71 by striking the     
period at the end and inserting 1 or1   
and  7,c7 by adding at the end the      
following new paragraph3  7#af7         
qualified carbon dioxide capture        
facilities4  1 and  7#b7 by adding at   

the end the following new subsection3   
7n7 ,qualified carbon dioxide capture   
facility  7#a7 ,in general ,for purposes
 of subsection 7a77#af71 the term       
qualified carbon dioxide capture        
facility means-- 7,a7 the eligible      
components of an industrial carbon      
dioxide facility1 and  7,b7 a direct air
 capture facility 7as defined in section
 #de,q7e77#a774  7#b7 ,definitions ,in  
this subsection3 7,a7 ,eligible         
component  7i7 ,in general ,the term    
eligible component means any equipment  
installed in an industrial carbon       
dioxide facility which is-- 7,i7 used   
for the purpose of capture1 treatment   
and purification1 compression1          
transportation1 or on-site storage of   
carbon dioxide produced by the          
industrial carbon dioxide facility1 or  
7,,ii7 integral or functionally related 
and subordinate to a process which      
converts a solid or liquid product from 
coal1 petroleum residue1 biomass1 or    
other materials which are recovered for 

their energy or feedstock value into a  
synthesis gas composed primarily of     
carbon dioxide and hydrogen for direct  
use or subsequent chemical or physical  
conversion4  7ii7 ,definitions ,for     
purposes of this subparagraph-- 7,i7    
,biomass  7aa7 ,in general ,the term    
biomass means any-- 7,,aa7 agricultural 
or plant waste1 7,,bb7 byproduct of wood
 or paper mill operations1 including    
lignin in spent pulping liquors1 and    
7,,cc7 other products of forestry       
maintenance4  7bb7 ,exclusion ,the term 
biomass does not include paper which is 
commonly recycled4  7,,ii7 ,coal ,the   
term coal means anthracite1 bituminous  
coal1 subbituminous coal1 lignite1 and  
peat4  7,b7 ,industrial carbon dioxide  
facility  7i7 ,in general ,except as    
provided in clause 7ii71 the term       
industrial carbon dioxide facility means
 a facility that emits carbon dioxide   
7including from any fugitive emissions  
source7 that is created as a result of  
any of the following processes3 7,i7    

,fuel combustion4  7,,ii7 ,gasification4
  7,,iii7 ,bioindustrial4  7,,iv7       
,fermentation4  7,v7 ,any manufacturing 
industry relating to-- 7aa7 chemicals1  
7bb7 fertilizers1  7cc7 glass1  7dd7    
steel1  7ee7 petroleum residues1  7ff7  
forest products1  7gg7 agriculture1     
including feedlots and dairy operations1
 and  7hh7 transportation grade liquid  
fuels4  7ii7 ,exceptions ,for purposes  
of clause 7i71 an industrial carbon     
dioxide facility shall not include--    
7,i7 any geological gas facility1 or    
7,,ii7 any air separation unit that--   
7aa7 does not qualify as gasification   
equipment1 or  7bb7 is not a necessary  
component of an oxy-fuel combustion     
process4  7iii7 ,definitions ,in this   
subparagraph-- 7,i7 ,petroleum residue  
,the term petroleum residue means the   
carbonized product of high-boiling      
hydrocarbon fractions obtained in       
petroleum processing4  7,,ii7           
,geological gas facility ,the term      
geological gas facility means a facility

 that-- 7aa7 produces a raw product     
consisting of gas or mixed gas and      
liquid from a geological formation1     
7bb7 transports or removes impurities   
from such product1 or  7cc7 separates   
such product into its constituent parts4
  7#c7 ,special rule for facilities with
 less than #fe percent capture and      
storage percentage  7,a7 ,in general ,an
 eligible component of an industrial    
carbon dioxide facility with a capture  
and storage percentage that is less than
 #fe percent shall only be treated as a 
qualified carbon dioxide facility with  
respect to the percentage of the costs  
attributable to such eligible component 
which is equal to the capture and       
storage percentage of such facility4    
7,b7 ,capture and storage percentage    
7i7 ,in general ,subject to clause 7ii71
 the capture and storage percentage     
shall be an amount1 expressed as a      
percentage1 equal to the quotient of--  
7,i7 the total metric tons of carbon    
dioxide annually captured1 transported1 

and injected into-- 7aa7 a facility for 
geologic storage1 or  7bb7 an enhanced  
oil or gas recovery well followed by    
geologic storage1 divided by  7,,ii7 the
 total metric tons of carbon dioxide    
which would otherwise be released into  
the atmosphere each year as industrial  
emission of greenhouse gas if the       
eligible components were not installed  
in the industrial carbon dioxide        
facility4  7ii7 ,limited application of 
eligible components ,in the case of     
eligible components that are designed to
 capture carbon dioxide solely from     
specific sources of emissions or        
portions thereof within an industrial   
carbon dioxide facility1 the capture and
 storage percentage under this          
subparagraph shall be determined based  
only on such specific sources of        
emissions or portions thereof4  7#d7    
,regulations ,the ,secretary shall issue
 such regulations or other guidance as  
are necessary to carry out the          
provisions of this subsection1 including

 methods for determining costs          
attributable to an eligible component   
for purposes of paragraph 7#c77;,a74  4 
7b7 ,volume cap ,section #adf7;g77#d7 is
 amended by striking paragraph 7#aa7 of 
section #adb7;a7 7relating to high-speed
 intercity rail facilities7 and         
inserting paragraph 7#aa7 or 7#af7 of   
section #adb7;a74  7c7 ,clarification of
 private business use ,section          
#ada7;b77#f7 is amended by adding at the
 end the following new subparagraph3    
7,c7 ,clarification relating to         
qualified carbon dioxide capture        
facilities ,for purposes of this        
subsection1 the sale of carbon dioxide  
produced by a qualified carbon dioxide  
capture facility 7as defined in section 
#adb7n77 which is owned by a            
governmental unit shall not constitute  
private business use4  4  7d7 ,effective
 date ,the amendments made by this      
section shall apply to obligations      
issued after ,december #ca1 #bjba4      
#fjc4 ,limitation on importation of     

certain energy equipment and components 
7a7 ,in general ,the importation of an  
article described in subsection 7b7 is  
prohibited unless the ,united ,nations  
certifies that the article is not mined 
or otherwise produced using forced labor
 or child labor4  7b7 ,articles         
described ,an article described in this 
subsection is a solar cell1 a wind      
turbine1 energy storage equipment1 or a 
component for such equipment4  #fjd4    
,elimination of negative effects on     
small businesses and certain individual 
taxpayers  7a7 ,in general ,in the case 
of any taxable year beginning after the 
date of the enactment of this ,act1 the 
,secretary of the ,treasury 7or the     
,secretary's delegate7 shall pay to each
 applicable eligible taxpayer an amount 
equal to the excess 7if any7 of-- 7#a7  
the tax imposed under chapter #a of the 
,internal ,revenue ,code of #aihf       
7determined after the application of the
 amendments made by this ,act which are 
in effect for such taxable year71 over  

7#b7 the tax imposed under such chapter 
on such taxpayer for such taxable year  
7determined without regard to the       
amendments made by this ,act74  7b7     
,applicable eligible taxpayer ,for      
purposes of this section-- 7#a7 ,in     
general ,the term applicable eligible   
taxpayer means1 with respect to any     
taxable year1 any eligible taxpayer who 
establishes to the satisfaction of the  
,secretary of the ,treasury 7or the     
,secretary's delegate7 that there is an 
excess described in subsection 7a7 with 
respect to such taxpayer4  7#b7         
,eligible taxpayer  7,a7 ,in general    
,the term eligible taxpayer means1 with 
respect to any taxable year-- 7i7 an    
individual with an adjusted gross income
 of not more than #djj1jjj1 and  7ii7   
any employer that has an average number 
of fewer than #ejj employees for the    
taxable year4  7,b7 ,aggregation rules  
,for purposes of subparagraph 7,a77ii71 
all persons treated as a single employer
 under subsection 7b71 7c71 7m71 or 7o7 

of section #dad of the ,internal        
,revenue ,code of #aihf shall be treated
 as one employer4  7,c7 ,special rule   
for pass-thru entities ,in the case of a
 partnership1 ,s corporation1 or other  
pass-thru entity that is described in   
subparagraph 7,a77ii7-- 7i7 any partner1
 shareholder1 or other applicable       
individual who is not described in      
subparagraph 7,a77i7 shall be treated as
 an eligible taxpayer1 and  7ii7 the    
amount of the excess described under    
subsection 7a7 of such partner1         
shareholder1 or other applicable        
individual shall be determined by only  
taking into account the income1 gain1   
loss1 deduction1 or credit of such      
partnership1 ,s corporation1 or other   
pass-thru entity4  ,for purposes of the 
preceding sentence1 the term applicable 
individual means1 with respect to any   
pass-thru entity1 any individual to whom
 the income1 gain1 loss1 or deduction of
 such entity is attributed for tax      
purposes4  7c7 ,treatment of payments   

,the amount of any payment under        
subsection 7a7 shall be treated as a    
refund of taxes due from a provision    
described in section #acbd7;b77#b7 of   
title #ca1 ,united ,states ,code4  7d7  
,regulations ,the ,secretary of the     
,treasury 7or the ,secretary's delegate7
 shall issue such regulations or other  
guidance as are necessary to carry out  
the provisions of this section4  ,june  
#ba1 #bjba,read the second time and     
placed on the calendar