,,ii  #aag? ,,congress  #a/ ,session    
,s4 #bdge  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #bg1 #bjba,mr4   
,crapo 7= himself1 ,mr4 ,:iteh\se1 ,mr4 
,b>rasso1 ,mr4 ,b5net1 ,mr4 ,ris*1 &    
,mr4 ,hick5loop]7 introduc$ ! foll[+    
bill2 :i* 0 read twice & ref]r$ to !    
,committee on ,f9ance  ,a ,,bill  ,to   
am5d ! ,int]nal ,rev5ue ,code ( #aihf to
 provide inve/m5t & production tax      
cr$its = em]g+ en]gy te*nologies1 & =   
o!r purposes4  #a4 ,%ort title ,?is ,act
 may be cit$ z ! ,en]gy ,sector         
,innovation ,cr$it ,act ( #bjba4  #b4   
,f9d+s ,congress f9ds ! foll[+3 7#a7    
,promis+ en]gy res\rces ) z]o or v l[   
m>ket p5etration (t5 face significant   
incumb5cy disadvantages z !y e/abli% a  
foo?old1 includ+ suboptimal res\rce     
location relative to exi/+ grid         
infra/ructure & ! lack ( economies (    
scale4  7#b7 ,en]gy sector innovation c 
conf] num]\s b5efits to jobs & !        
economy1 ! environm5t & climate1 & !    
g5]al social welf>e4  7#c7 ,en]gy sector

 innovation c come 9 num]\s =ms1 n all (
 :i* are readily quantifiable1 includ+--
 7,a7 div]sify+ & increas+ ! ,nation's  
en]gy g5]ation portfolio & en]gy        
security1  7,b7 improv+ ! dispat*ability
 & reliability ( en]gy g5]ation2 &  7,c7
 improv+ en]gy effici5cy1 emissions     
r$uctions1 or o!r m>k]s ( p]=mance4  #c4
 ,inve/m5t cr$it = em]g+ en]gy te*nology
  7a7 ,9 g5]al ,subp>t ,e ( "p ,,iv (   
sub*apt] ,a ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 aft] section #dh;,c ! foll[+ new       
section3  #dh;,d4 ,em]g+ en]gy te*nology
 cr$it  7a7 ,e/abli%m5t ( cr$it ,=      
purposes ( section #df1 ! em]g+ en]gy   
te*nology cr$it = any taxable ye> is an 
am\nt equal to ! applicable p]c5tage 7z 
det]m9$ "u subsection 7c77 ( ! basis (  
any qualifi$ em]g+ en]gy prop]ty plac$ 9
 s]vice by ! taxpay] dur+ su* taxable   
ye>4  7b7 ,qualifi$ em]g+ en]gy prop]ty 
7#a7 ,9 g5]al ,! t]m qualifi$ em]g+     
en]gy prop]ty means prop]ty :i* is      
con/ruct$1 recon/ruct$1 erect$1 or      

acquir$ by ! taxpay]1 & ! orig9al use ( 
:i* comm5ces ) ! taxpay]1 :i* is-- 7,a7 
a qualifi$ production facility 7z def9$ 
9 section #de,u7d771  7,b7 c>bon capture
 equipm5t1 or  7,c7 en]gy /orage        
te*nology4  7#b7 ,c>bon capture equipm5t
  7,a7 ,9 g5]al ,= purposes ( ?is       
section1 ! t]m c>bon capture equipm5t   
means prop]ty :i* conta9s equipm5t t c  
sep>ate & capture qualifi$ c>bon oxide  
7z def9$ 9 section #de,q7c77 & is plac$ 
9 s]vice at1 & us$ 9 connection )1 a    
facility-- 7i7 :i* satisfies !          
requirem5ts "u section #de,q7d77#b71 &  
7ii7 :i* is-- 7,i7 an electric g5]at+   
facility :i*-- 7aa7 0 orig9ally plac$ 9 
s]vice be=e su* prop]ty1 &  7bb7 is a   
po9t s\rce ( air pollutants1  7,,ii7 a  
manufactur+ or indu/rial facility-- 7aa7
 :i* 0 orig9ally plac$ 9 s]vice be=e su*
 prop]ty1  7bb7 :i* is a po9t s\rce (   
air pollutants1 &  7cc7 = :i* su*       
prop]ty is prim>ily us$ to capture      
qualifi$ c>bon oxide 7z def9$ 9 section 
#de,q7c77 :i* w\ld o!rwise be releas$   

into ! atmosph]e z a result (-- 7,,aa7 !
 production ( ammonia1 helium1 or e?anol
 at su* facility1 or 7,,bb7 ! process+ (
 natural gas at su* facility1 or        
7,,iii7 a manufactur+ or indu/rial      
facility describ$ 9 subclause 7,,ii7 =  
:i* item 7cc7 ( su* subclause does n    
apply4  7,b7 ,direct air capture  7i7 ,9
 g5]al ,= purposes ( ?is section1 ! t]m 
c>bon capture equipm5t %all include any 
direct air capture facility :i* c       
capture n less ?an #e1jjj metric tons ( 
qualifi$ c>bon oxide 7z def9$ 9 section 
#de,q7c77 annually4  7ii7 ,direct air   
capture facility ,! t]m direct air      
capture facility has ! same mean+ giv5  
su* t]m "u section #de,q7e77#a7 7z 9    
effect on ! date ( enactm5t ( ?is       
section74  7,c7 ,rules reg>d+ capture ( 
c>bon oxide ,) respect to any qualifi$  
c>bon oxide captur$ us+ prop]ty describ$
 9 subp>agraph 7,a7 or 7,b71 ! taxpay]  
%all physically or contractually ensure 
! disposal1 utilization1 or use ( su*   
qualifi$ c>bon oxide 9 a mann] consi/5t 

) ! requirem5ts "u section #de,q4  7#c7 
,en]gy /orage te*nology ,= purposes (   
?is section1 ! t]m en]gy /orage         
te*nology means /ation>y equipm5t :i*-- 
7,a7 is capable ( absorb+ en]gy1 /or+   
en]gy = a p]iod ( "t1 & dispat*+ ! /or$ 
en]gy us+ batt]ies1 compress$ air1 pump$
 hydrop[]1 !rmal en]gy /orage1 liquid   
air1 reg5]ative fuel cells1 fly:eels1   
capacitors1 sup]conduct+ magnets1 /ack$ 
objects1 or o!r te*nologies id5tifi$ by 
! ,secret>y1 9 consultation ) !         
,secret>y ( ,en]gy1 &  7,b7 has a       
capacity ( n less ?an #a megawatt4  7#d7
 ,application ) o!r cr$its  7,a7 ,9     
g5]al ,! t]m qualifi$ em]g+ en]gy       
prop]ty %all n include any prop]ty =    
:i*1 = ! taxable ye> or any prior       
taxable ye>-- 7i7 electricity produc$ f 
su* prop]ty is tak5 into acc\nt =       
purposes ( ! cr$it all[$ "u section #de1
 #de;,j1 or #de,u1  7ii7 qualifi$ c>bon 
oxide captur$ by su* prop]ty is tak5    
into acc\nt = purposes ( ! cr$it all[$  
"u section #de,q1  7iii7 ! basis ( su*  

prop]ty is tak5 into acc\nt = purposes (
 ! cr$it all[$ "u section #dh1 #dh;,a1  
#dh;,b1 or #dh;,c1 or  7iv7 hydrog5     
produc$ f su* prop]ty is tak5 into      
acc\nt = purposes ( ! cr$it all[$ "u    
section #de,v4  7,b7 ,d5ial ( d\ble     
b5efit ,) respect to any section        
describ$ 9 clause 7i71 7ii71 7iii71 or  
7iv7 ( subp>agraph 7,a71 no cr$it %all  
be all[$ "u su* section = any taxable   
ye> ) respect to any prop]ty = :i* a    
cr$it is all[$ "u ?is section = su*     
taxable ye> or any prior taxable ye>4   
7,c7 ,additional rule ,subp>agraphs     
7,a77ii7 & 7,b7 %all n apply = purposes 
( ! cr$it all[$ "u ?is section or       
section #de,q ) respect to any qualifi$ 
c>bon oxide captur$ us+ prop]ty describ$
 9 subp>agraph 7,a7 or 7,b7 ( p>agraph  
7#b7 if su* c>bon oxide is dispos$ ( 9 a
 mann] consi/5t ) section               
#de,q7a77#c77;,b74  7c7 ,applicable     
p]c5tages  7#a7 ,qualifi$ ,production   
,facilities ,9 ! case ( any qualifi$    
production facility :i* satisfies !     

requirem5ts =-- 7,a7 a ti] #a facility  
7z describ$ 9 clause 7i7 ( section      
#de,u7b77#b77;,a771 ! applicable        
p]c5tage %all be #dj p]c5t1  7,b7 a ti] 
#b facility 7z describ$ 9 clause 7ii7 ( 
su* section71 ! applicable p]c5tage %all
 be #cj p]c5t1  7,c7 a ti] #c facility  
7z describ$ 9 clause 7iii7 ( su*        
section71 ! applicable p]c5tage %all be 
#bj p]c5t1 &  7,d7 a ti] #d facility 7z 
describ$ 9 clause 7iv7 ( su* section71 !
 applicable p]c5tage %all be #aj p]c5t4 
7#b7 ,c>bon capture equipm5t  7,a7 ,9   
g5]al ,) respect to c>bon capture       
equipm5t1 ! applicable p]c5tage %all    
be-- 7i7 9 ! case ( ti] #a equipm5t1 #dj
 p]c5t1  7ii7 9 ! case ( ti] #b         
equipm5t1 #cj p]c5t1  7iii7 9 ! case (  
ti] #c equipm5t1 #bj p]c5t1  7iv7 9 !   
case ( ti] #d equipm5t1 #aj p]c5t1 &    
7v7 9 ! case ( any o!r su* equipm5t1 z]o
 p]c5t4  7,b7 ,equipm5t ti]s  7i7 ,9    
g5]al ,= purposes ( ?is p>agraph-- 7,i7 
,ti] #a equipm5t ,! t]m ti] #a equipm5t 
means any c>bon capture equipm5t = :i* !

 m>ket p5etration level = ! cal5d> ye>  
prec$+ ! cal5d> ye> 9 :i* con/ruction ( 
su* equipm5t began is less ?an #j4ge    
p]c5t4  7,,ii7 ,ti] #b equipm5t ,! t]m  
ti] #b equipm5t has ! same mean+ giv5 ! 
t]m ti] #a equipm5t "u subclause 7,i71  
except t at lea/ #j4ge p]c5t b less ?an 
#a4e p]c5t %all be sub/itut$ = less ?an 
#j4ge p]c5t4  7,,iii7 ,ti] #c equipm5t  
,! t]m ti] #c equipm5t has ! same mean+ 
giv5 ! t]m ti] #a equipm5t "u subclause 
7,i71 except t at lea/ #a4e p]c5t b less
 ?an #b4be p]c5t %all be sub/itut$ =    
less ?an #j4ge p]c5t4  7,,iv7 ,ti] #d   
equipm5t ,! t]m ti] #d equipm5t has !   
same mean+ giv5 ! t]m ti] #a equipm5t "u
 subclause 7,i71 except t at lea/ #b4be 
p]c5t b less ?an #c p]c5t %all be       
sub/itut$ = less ?an #j4ge p]c5t4  7ii7 
,m>ket p5etration level ,= purposes (   
?is subp>agraph1 ! t]m m>ket p5etration 
level means1 ) respect to any cal5d>    
ye>1 ! am\nt equal to ! great] (-- 7,i7 
! am\nt 7express$ z a p]c5tage7 equal to
 ! quoti5t (-- 7aa7 ! total am\nt       

7express$ 9 metric tons7 ( c>bon oxide  
captur$ & dispos$ (1 us$1 or utiliz$ 9 a
 mann] consi/5t ) ! requirem5ts "u      
section #de,q by c>bon capture equipm5t 
)9 ! ,unit$ ,/ates dur+ su* cal5d> ye>  
7z det]m9$ by ! ,secret>y on ! basis (  
data report$ by ! ,en]gy ,in=mation     
,adm9i/ration & ! ,environm5tal         
,protection ,ag5cy71 divid$ by  7bb7 !  
total am\nt ( gre5h\se gas emissions 9 !
 ,unit$ ,/ates 7express$ 9 metric tons (
 ,,co#b-;e7 dur+ ! mo/ rec5t cal5d> ye> 
end+ prior to ! date ( enactm5t ( ?is   
section = :i* su* data is available to !
 ,adm9i/rator ( ! ,environm5tal         
,protection ,ag5cy1 or  7,,ii7 ! am\nt  
det]m9$ "u ?is clause = ! prec$+ cal5d> 
ye>4  7,c7 ,division ( equipm5t =       
purposes ( det]m9+ ti] ,= purposes (    
det]m9+ ! applicable ti] = any c>bon    
capture equipm5t "u subp>agraph 7,b71   
su* subp>agraph %all be appli$ sep>ately
 7& ! total am\nt ( c>bon oxide captur$ 
by su* equipm5t %all be det]m9$         
sep>ately7 ) respect to-- 7i7 any su*   

equipm5t describ$ 9 subclause 7,i7 (    
subsection 7b77#b77;,a77ii71  7ii7 any  
su* equipm5t describ$ 9 subclause 7,,ii7
 ( su* subsection1  7iii7 any su*       
equipm5t describ$ 9 subclause 7,,iii7 ( 
su* subsection1 &  7iv7 any su* equipm5t
 describ$ 9 subp>agraph 7,b7 (          
subsection 7b77#b74  7,d7 ,det]m9ation (
 ti] ,= purposes ( ?is p>agraph1 !      
det]m9ation z to :e!r any c>bon capture 
equipm5t qualifies z a ti] #a1 #b1 #c1  
or #d equipm5t %all be made-- 7i7 dur+ !
 ye> 9 :i* con/ruction ( su* equipm5t   
beg9s 7z det]m9$ "u rules simil> to !   
rules 9 section #de,u7e771 &  7ii7 bas$ 
on ! det]m9ations includ$ 9 report      
describ$ 9 section                      
#de,u7b77#b77;,d77i77,,ii7 ) respect to 
su* cal5d> ye>4  7,e7 ,report+ ,!       
,secret>y %all1 z "p ( ! reports publi%$
 pursuant to section                    
#de,u7b77#b77;,d77i7 & 9 ! same mann] z 
describ$ "u su* section1 publi% !       
applicable m>ket p5etration level & ti] 
= any c>bon capture equipm5t 7z det]m9$ 

sep>ately = su* equipm5t pursuant to    
subp>agraph 7,c774  7#c7 ,en]gy /orage  
te*nology  7,a7 ,9 g5]al ,) respect to  
en]gy /orage te*nology1 ! applicable    
p]c5tage %all be-- 7i7 9 ! case ( ti] #a
 te*nology1 #dj p]c5t1  7ii7 9 ! case ( 
ti] #b te*nology1 #cj p]c5t1  7iii7 9 ! 
case ( ti] #c te*nology1 #bj p]c5t1     
7iv7 9 ! case ( ti] #d te*nology1 #aj   
p]c5t1 &  7v7 9 ! case ( any o!r su*    
te*nology1 z]o p]c5t4  7,b7 ,te*nology  
ti]s  7i7 ,9 g5]al ,= purposes ( ?is    
p>agraph-- 7,i7 ,ti] #a te*nology ,! t]m
 ti] #a te*nology means any en]gy /orage
 te*nology = :i* ! m>ket p5etration     
level = ! cal5d> ye> prec$+ ! cal5d> ye>
 9 :i* con/ruction ( su* te*nology began
 is less ?an #j4ge p]c5t4  7,,ii7 ,ti]  
#b te*nology ,! t]m ti] #b te*nology has
 ! same mean+ giv5 ! t]m ti] #a         
te*nology "u subclause 7,i71 except t at
 lea/ #j4ge p]c5t b less ?an #a4e p]c5t 
%all be sub/itut$ = less ?an #j4ge      
p]c5t4  7,,iii7 ,ti] #c te*nology ,! t]m
 ti] #c te*nology has ! same mean+ giv5 

! t]m ti] #a te*nology "u subclause     
7,i71 except t at lea/ #a4e p]c5t b less
 ?an #b4be p]c5t %all be sub/itut$ =    
less ?an #j4ge p]c5t4  7,,iv7 ,ti] #d   
te*nology ,! t]m ti] #d te*nology has ! 
same mean+ giv5 ! t]m ti] #a te*nology  
"u subclause 7,i71 except t at lea/     
#b4be p]c5t b less ?an #c p]c5t %all be 
sub/itut$ = less ?an #j4ge p]c5t4  7ii7 
,m>ket p5etration level ,= purposes (   
?is subp>agraph1 ! t]m m>ket p5etration 
level means1 ) respect to any cal5d>    
ye>1 ! am\nt equal to ! great] (-- 7,i7 
! am\nt 7express$ z a p]c5tage7 equal to
 ! quoti5t (-- 7aa7 ! total nameplate   
capacity 7express$ 9 megawatts7 ( en]gy 
/orage te*nology 9 op]ation )9 ! ,unit$ 
,/ates at ! beg9n+ ( su* cal5d> ye> 7z  
det]m9$ by ! ,secret>y on ! basis ( data
 report$ by ! ,en]gy ,in=mation         
,adm9i/ration71 divid$ by  7bb7 ! total 
dome/ic electricity production nameplate
 capacity 7express$ 9 megawatts7 at !   
close ( su* ye>1 or  7,,ii7 ! am\nt     
det]m9$ "u ?is clause = ! prec$+ cal5d> 

ye>4  7,c7 ,division ( te*nology =      
purposes ( det]m9+ ti]  7i7 ,9 g5]al ,= 
purposes ( det]m9+ ! applicable ti] =   
any en]gy /orage te*nology "u           
subp>agraph 7,b71 su* subp>agraph %all  
be appli$ sep>ately 7& ! total capacity 
( su* te*nology %all be det]m9$         
sep>ately7 ) respect to-- 7,i7 any su*  
te*nology :i* is li?ium-ion bas$1       
7,,ii7 any su* te*nology :i* uses pump$ 
hydrop[]1  7,,iii7 any su* te*nology    
:i*-- 7aa7 is n describ$ 9 subclause    
7,i7 or 7,,ii71 &  7bb7 is classifi$ z  
%ort-duration /orage "u clause 7ii71 &  
7,,iv7 any su* te*nology :i*-- 7aa7 is n
 describ$ 9 subclause 7,i7 or 7,,ii71 & 
7bb7 is classifi$ z long-duration /orage
 "u clause 7ii74  7ii7 ,classification  
,! ,secret>y ( ,en]gy 79 consultation ) 
! ,secret>y7 %all issue su* regulations 
or o!r guidance z ! ,secret>y ( ,en]gy  
det]m9es necess>y or appropriate to     
def9e ! t]ms %ort-duration /orage &     
long-duration /orage = purposes (       
classify+ en]gy /orage te*nology "u     

clause 7i74  7,d7 ,det]m9ation ( ti] ,= 
purposes ( ?is p>agraph1 ! det]m9ation z
 to :e!r any en]gy /orage te*nology     
qualifies z a ti] #a1 #b1 #c1 or #d     
te*nology %all be made-- 7i7 dur+ ! ye> 
9 :i* con/ruction ( su* te*nology beg9s 
7z det]m9$ "u rules simil> to ! rules 9 
section #de,u7e771 &  7ii7 bas$ on !    
det]m9ations includ$ 9 report describ$ 9
 section #de,u7b77#b77;,d77i77,,ii7 )   
respect to su* cal5d> ye>4  7,e7        
,report+ ,! ,secret>y %all1 z "p ( !    
reports publi%$ pursuant to section     
#de,u7b77#b77;,d77i7 & 9 ! same mann] z 
describ$ "u su* section1 publi% !       
applicable m>ket p5etration level & ti] 
= any en]gy /orage te*nology 7z det]m9$ 
sep>ately = su* te*nology pursuant to   
subp>agraph 7,c774  7d7 ,special rules  
7#a7 ,c]ta9 qualifi$ progress exp5diture
 rules made applicable ,rules simil> to 
! rules ( subsections 7c77#d7 & 7d7 (   
section #df 7z 9 effect on ! day be=e ! 
enactm5t ( ! ,rev5ue ,reconciliation    
,act ( #aiij7 %all apply = purposes (   

?is section4  7#b7 ,transf] ( cr$it     
7,a7 ,9 g5]al ,if1 ) respect to a cr$it 
all[$ "u subsection 7a7 = any taxable   
ye>1 ! taxpay] elects ! application (   
?is p>agraph = su* taxable ye> ) respect
 to all 7or any portion specifi$ 9 su*  
election7 ( su* cr$it1 ! eligible       
project p>tn] specifi$ 9 su* election1 &
 n ! taxpay]1 %all be treat$ z ! taxpay]
 = purposes ( ?is title ) respect to su*
 cr$it 7or su* portion !re(74  7,b7     
,eligible project p>tn]  7i7 ,9 g5]al ,=
 purposes ( ?is p>agraph1 ! t]m eligible
 project p>tn] means1 ) respect to any  
qualifi$ em]g+ en]gy prop]ty1 any p]son 
:o-- 7,i7 has an own]%ip int]e/ 9 su*   
prop]ty1  7,,ii7 provid$ equipm5t = or  
s]vices 9 ! con/ruction ( su* prop]ty1  
7,,iii7 provides electric transmission  
or di/ribution s]vices = su* prop]ty1   
7,,iv7 pur*ases electricity f su*       
prop]ty pursuant to a contract1 or  7,v7
 provides f9anc+ = su* prop]ty4  7ii7   
,f9anc+ ,= purposes ( clause 7i77,v71   
any am\nt paid z consid]ation = a       

transf] describ$ 9 subp>agraph 7,a7 %all
 n be treat$ z f9anc+ = qualifi$ em]g+  
en]gy prop]ty4  7,c7 ,d$uction = paym5ts
 9 connection ) transf] ,a d$uction "u  
"p ,,vi ( sub*apt] ,b %all be all[$ 9 an
 am\nt equal to ! am\nt paid by !       
taxpay] z consid]ation = a transf]      
describ$ 9 subp>agraph 7,a74  7,d7      
,taxable ye> 9 :i* cr$it tak5 into      
acc\nt ,9 ! case ( any cr$it 7or portion
 !re(7 ) respect to :i* an election is  
made "u subp>agraph 7,a71 su* cr$it %all
 be tak5 into acc\nt 9 ! fir/ taxable   
ye> ( ! eligible project p>tn] end+ )1  
or aft]1 ! elect+ taxpay]'s taxable ye> 
) respect to :i* ! cr$it 0 det]m9$4     
7,e7 ,limitations on election  7i7 ,"t =
 election ,an election "u ?is p>agraph  
to transf] any portion ( ! cr$it all[$  
"u subsection 7a7 %all be made n lat]   
?an ! due date = ! return ( tax = !     
elect+ taxpay]'s taxable ye> ) respect  
to :i* ! cr$it 0 det]m9$4  7ii7 ,no     
fur!r transf]s ,no election may be made 
"u ?is p>agraph by a taxpay] ) respect  

to any portion ( ! cr$it all[$ "u       
subsection 7a7 :i* has be5 previ\sly    
transf]r$ to su* taxpay] "u ?is         
p>agraph4  7,f7 ,treatm5t ( transf] "u  
private use rules ,= purposes ( section 
#ada7;b77#a71 any b5efit d]iv$ by an    
eligible project p>tn] 9 connection ) an
 election "u ?is p>agraph %all n be tak5
 into acc\nt z a private bus9ess use4   
7,g7 ,special rules = public prop]ty    
7i7 ,9 g5]al ,if1 ) respect to a cr$it  
"u subsection 7a7 = any taxable ye>--   
7,i7 a qualifi$ public entity w\ld be ! 
taxpay] 7b = ?is subp>agraph71 &  7,,ii7
 su* entity elects ! application (      
subp>agraph 7,a7 = su* taxable ye> )    
respect to all 7or any portion specifi$ 
9 su* election7 ( su* cr$it1  ! eligible
 project p>tn] specifi$ 9 su* election1 
& n ! qualifi$ public entity1 %all be   
treat$ z ! taxpay] = purposes ( ?is     
title ) respect to su* cr$it 7or su*    
portion !re(74  7ii7 ,qualifi$ public   
entity ,= purposes ( ?is subp>agraph1 ! 
t]m qualifi$ public entity means-- 7,i7 

any ,/ate or local gov]nm5t1 or a       
political subdivision !re(1 or  7,,ii7  
an ,indian tribal gov]nm5t4  7,h7       
,prop]ty us$ by c]ta9 tax-exempt        
organizations & gov]nm5tal units ,9 !   
case ( a taxpay] mak+ an election "u ?is
 p>agraph1 ! cr$it subject to su* an    
election %all be det]m9$ not)/&+-- 7i7  
section #ej7;b77#c71 &  7ii7 9 ! case ( 
any entity describ$ 9 section           
#ej7;b77#d77;,a77i71 section            
#ej7;b77#d74  7,i7 ,additional election 
requirem5ts ,! ,secret>y may prescribe  
su* regulations z may be appropriate to 
c>ry out ! purposes ( ?is p>agraph1     
includ+-- 7i7 rules = det]m9+ :i* p]sons
 are eligible project p>tn]s ) respect  
to any qualifi$ em]g+ en]gy prop]ty1 &  
7ii7 requir+ in=mation to be includ$ 9  
an election "u subp>agraph 7,a7 or      
impos+ additional report+ requirem5ts4  
7e7 ,regulations ,! ,secret>y 79        
consultation ) ! ,secret>y ( ,en]gy & ! 
,adm9i/rator ( ! ,environm5tal          
,protection ,ag5cy7 %all issue su*      

regulations or o!r guidance z !         
,secret>y det]m9es necess>y or          
appropriate to c>ry out ! purposes ( ?is
 section1 includ+ rules = report+-- 7#a7
 = purposes ( p>agraph 7#b77;,b77ii7 (  
subsection 7c71 ! am\nt ( c>bon oxide   
captur$ by c>bon capture equipm5t1 &    
7#b7 = purposes ( p>agraph 7#c77;,b77ii7
 ( su* subsection1 ! capacity ( en]gy   
/orage te*nology4  4  7b7 ,special rule 
= proce$s ( transf]s = mutual or        
coop]ative electric companies ,section  
#eja7;c77#ab77;,i7 ( su* ,code is am5d$ 
by ins]t+ or #dh;,d7d77#b7 aft] section 
#de;,j7e77#a74  7c7 ,con=m+ am5dm5ts    
7#a7 ,section #df ( su* ,code is am5d$  
by /rik+ & at ! end ( p>agraph 7#e71 by 
/rik+ ! p]iod at ! end ( p>agraph 7#f7 &
 ins]t+ 1 &1 & by add+ at ! end ! foll[+
 new p>agraph3  7#g7 ! em]g+ en]gy      
te*nology cr$it4  4  7#b7 ,section      
#di7;a77#a77;,c7 ( su* ,code is am5d$ by
 /rik+ & at ! end ( clause 7iv71 by     
/rik+ ! p]iod at ! end ( clause 7v7 &   
ins]t+ 1 &1 & by add+ at ! end ! foll[+ 

new clause3  7vi7 ! basis ( any qualifi$
 em]g+ en]gy prop]ty 7z def9$ 9 section 
#dh;,d7b77#a774  4  7#c7 ,! table (     
sections = subp>t ,e ( "p ,,iv (        
sub*apt] ,a ( *apt] #a ( su* ,code is   
am5d$ by ins]t+ aft] ! item relat+ to   
section #dh;,c ! foll[+ new item3  ,sec4
 #dh;,d4 ,em]g+ en]gy te*nology cr$it4  
4  7d7 ,effective date ,! am5dm5ts made 
by ?is section %all apply to prop]ty    
plac$ 9 s]vice 9 taxable ye>s beg9n+    
aft] ! date ( ! enactm5t ( ?is ,act1 "u 
rules simil> to ! rules ( section #dh7m7
 ( ! ,int]nal ,rev5ue ,code ( #aihf 7z 9
 effect on ! day be=e ! date ( !        
enactm5t ( ! ,rev5ue ,reconciliation    
,act ( #aiij74  #d4 ,production cr$it = 
em]g+ en]gy te*nology  7a7 ,9 g5]al     
,subp>t ,d ( "p ,,iv ( sub*apt] ,a (    
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by add+ at ! end ! foll[+
 new section3  #de,u4 ,electricity      
produc$ f em]g+ en]gy te*nology  7a7    
,g5]al rule ,= purposes ( section #ch1 !
 em]g+ en]gy te*nology production cr$it 

det]m9$ "u ?is section = any taxable ye>
 beg9n+ 9 ! cr$it p]iod ) respect to a  
qualifi$ production facility ( ! taxpay]
 is an am\nt equal to ! applicable      
p]c5tage ( ei!r ( ! foll[+ am\nts1 z    
elect$ by ! taxpay] "u subsection 7g73  
7#a7 ,! annual gross receipts ( !       
taxpay] f ! sale ( electricity g5]at$ at
 ! qualifi$ production facility to an   
unrelat$ p]son 7)9 ! mean+ ( section    
#de7;e77#d77 dur+ su* taxable ye>4  7#b7
 ,an am\nt equal to ! product (-- 7,a7  
#aej p]c5t ( ! national av]age :olesale 
price ( a kil[att h\r ( electricity 9 ! 
cal5d> ye> :i* began #b ye>s prior to ! 
cal5d> ye> 9 :i* su* taxable ye> beg9s1 
multipli$ by  7,b7 ! numb] ( kil[att    
h\rs ( electricity produc$ at ! qualifi$
 production facility & sold to an       
unrelat$ p]son 7)9 ! mean+ ( section    
#de7;e77#d77 dur+ su* taxable ye>4  7b7 
,applicable p]c5tage  7#a7 ,9 g5]al ,=  
purposes ( subsection 7a71 ! applicable 
p]c5tage is-- 7,a7 9 ! case ( a ti] #a  
facility1 #fj p]c5t1  7,b7 9 ! case ( a 

ti] #b facility1 #de p]c5t1  7,c7 9 !   
case ( a ti] #c facility1 #cj p]c5t1    
7,d7 9 ! case ( a ti] #d facility1 #ae  
p]c5t1 &  7,e7 9 ! case ( any o!r       
facility1 z]o p]c5t4  7#b7 ,facility    
,ti]s  7,a7 ,9 g5]al ,= purposes ( ?is  
section-- 7i7 ,ti] #a facility ,! t]m   
ti] #a facility means any qualifi$      
production facility :i* g5]ates         
electricity f an individual en]gy       
production te*nology-- 7,i7 describ$ 9  
subsection 7d77#b77;,a71 &  7,,ii7 = :i*
 ! m>ket p5etration level = ! cal5d> ye>
 prec$+ ! cal5d> ye> 9 :i* con/ruction (
 su* facility began is less ?an #j4ge   
p]c5t4  7ii7 ,ti] #b facility ,! t]m ti]
 #b facility has ! same mean+ giv5 ! t]m
 ti] #a facility "u clause 7i71 except t
 at lea/ #j4ge p]c5t b less ?an #a4e    
p]c5t %all be sub/itut$ = less ?an #j4ge
 p]c5t4  7iii7 ,ti] #c facility ,! t]m  
ti] #c facility has ! same mean+ giv5 ! 
t]m ti] #a facility "u clause 7i71      
except t at lea/ #a4e p]c5t b less ?an  
#b4be p]c5t %all be sub/itut$ = less ?an

 #j4ge p]c5t4  7iv7 ,ti] #d facility ,! 
t]m ti] #d facility has ! same mean+    
giv5 ! t]m ti] #a facility "u clause    
7i71 except t at lea/ #b4be p]c5t b less
 ?an #c p]c5t %all be sub/itut$ = less  
?an #j4ge p]c5t4  7,b7 ,m>ket p5etration
 level ,= purposes ( ?is p>agraph1 ! t]m
 m>ket p5etration level means1 ) respect
 to any cal5d> ye>1 ! am\nt equal to !  
great] (-- 7i7 ! am\nt 7express$ z a    
p]c5tage7 equal to ! quoti5t (-- 7,i7 ! 
sum ( all electricity produc$ 7express$ 
9 t]awatt h\rs7 f ! individual en]gy    
production te*nology by all qualifi$    
production facilities 7z def9$ 9        
subsection 7d77#a71 except t subp>agraph
 7,d7 ( su* subsection %all n apply7    
dur+ su* cal5d> ye> 7z det]m9$ by !     
,secret>y on ! basis ( data report$ by !
 ,en]gy ,in=mation ,adm9i/ration71      
divid$ by  7,,ii7 ! total dome/ic p[]   
sector electricity production 7express$ 
9 t]awatt h\rs7 = su* cal5d> ye>1 or    
7ii7 ! am\nt det]m9$ "u ?is subp>agraph 
= ! prec$+ cal5d> ye>4  7,c7            

,con/ruction beg9s ,= purposes ( ?is    
subsection & section #dh;,d1 !          
det]m9ation z to :e!r a facility        
qualifies z a ti] #a1 #b1 #c1 or #d     
facility %all be-- 7i7 made dur+ !      
cal5d> ye> 9 :i* con/ruction ( su*      
facility beg9s1  7ii7 bas$ on !         
det]m9ations includ$ 9 report describ$ 9
 subp>agraph 7,d77i77,,ii7 ) respect to 
su* cal5d> ye>1 &  7iii7 cont+5t on !   
taxpay] ma9ta9+ a cont9u\s program (    
con/ruction or cont9u\s ef=ts to advance
 t[>ds completion ( ! facility4  7,d7   
,guidance & reports  7i7 ,reports  7,i7 
,e/imates ,dur+ ! mon? ( ,decemb] ( !   
cal5d> ye> :i* includes ! date (        
enactm5t ( ?is section1 & dur+ ! mon? ( 
,decemb] ( ea* subsequ5t ye>1 !         
,secret>y ( ,en]gy 79 consultation ) !  
,secret>y7 %all publi% an annual report 
:i* conta9s e/imates ) respect to !     
applicable m>ket p5etration level & ti] 
= ea* individual en]gy production       
te*nology describ$ 9 subsection         
7d77#b77;,a7 :i* has be5 us$ to g5]ate  

electricity by any qualifi$ production  
facility 7z def9$ 9 subsection 7d77#a71 
except t subp>agraph 7,d7 ( su*         
subsection %all n apply7 dur+ su* cal5d>
 ye>4  7,,ii7 ,f9al report ,dur+ ! mon? 
( ,febru>y ( ea* cal5d> ye> beg9n+ aft] 
! date ( enactm5t ( ?is section1 !      
,secret>y ( ,en]gy 79 consultation ) !  
,secret>y7 %all publi% an annual report 
:i* provides ! f9al det]m9ation )       
respect to ! applicable m>ket p5etration
 level & ti] = ea* individual en]gy     
production te*nology describ$ 9         
subsection 7d77#b77;,a7 :i* has be5 us$ 
to g5]ate electricity by any qualifi$   
production facility 7z def9$ 9          
subsection 7d77#a71 except t subp>agraph
 7,d7 ( su* subsection %all n apply7    
dur+ ! prec$+ cal5d> ye>4  7,,iii7      
,previ\s ye>s ,9 ! case ( a facility :i*
 began con/ruction dur+ a cal5d> ye>    
prec$+ ! cal5d> ye> :i* includes ! date 
( enactm5t ( ?is section1 = purposes (  
det]m9+ :e!r su* facility qualifies z a 
ti] #a1 #b1 #c1 or #d facility "u       

subp>agraph 7,c71 ! ,secret>y ( ,en]gy  
79 consultation ) ! ,secret>y7 %all     
include1 z "p ( ! fir/ report describ$ 9
 subclause 7,,ii7 :i* is publi%$ aft] ! 
date ( enactm5t ( ?is section1 ! f9al   
det]m9ation ) respect to ! applicable   
m>ket p5etration level & ti] = ea*      
individual en]gy production te*nology   
describ$ 9 subsection 7d77#b77;,a7 :i*  
has be5 us$ to g5]ate electricity by any
 qualifi$ production facility 7z def9$ 9
 subsection 7d77#a71 except t           
subp>agraph 7,d7 ( su* subsection %all n
 apply7 dur+ su* prec$+ cal5d> ye>s z   
are det]m9$ by ! ,secret>y to be        
relevant = purposes ( ! adm9i/ration (  
?is section4  7ii7 ,classification (    
en]gy production te*nology ,! ,secret>y 
( ,en]gy 79 consultation ) ! ,secret>y7 
%all issue su* regulations or o!r       
guidance 7z well z any subsequ5t updates
 to su* regulations or guidance7 z !    
,secret>y ( ,en]gy det]m9es necess>y or 
appropriate to ensure t any qualifi$    
production facility or te*nology us$ = !

 production ( electricity is classifi$  
)9 a s+le en]gy production te*nology =  
purposes ( subsection 7d77#b74 ,9 ! case
 ( any te*nology us$ = ! production (   
electricity :i* may be classifi$ )9 #b  
or m diff]5t categories ( en]gy         
production te*nology "u su* subsection1 
! ,secret>y ( ,en]gy %all make !        
det]m9ation z to ! correct category )   
respect to su* te*nology z rapidly z    
possible1 ) su* det]m9ations to be      
includ$ 9 any report describ$ 9 clause  
7i74  7iii7 ,national av]age :olesale   
price ,= purposes ( det]m9+ ! am\nt     
applicable "u subsection 7a77#b77;,a7 ) 
respect to any cal5d> ye>1 ! ,secret>y (
 ,en]gy 79 consultation ) ! ,secret>y7  
%all include 9 any report describ$ 9    
clause 7i7 a det]m9ation ) respect to ! 
national av]age :olesale price ( a      
kil[att h\r ( electricity dur+ su*      
cal5d> ye>4  7c7 ,cr$it p]iod ,=        
purposes ( ?is section1 ! cr$it p]iod ) 
respect to any qualifi$ production      
facility is ! #aj-ye> p]iod beg9n+ ) !  

date ! facility 0 orig9ally plac$ 9     
s]vice4  7d7 ,qualifi$ production       
facility  7#a7 ,9 g5]al ,= purposes (   
?is section1 ! t]m qualifi$ production  
facility means any electric g5]at+      
facility :i*-- 7,a7 is locat$ 9 ! ,unit$
 ,/ates or a possession ( ! ,unit$      
,/ates 7z su* t]ms are us$ 9 section    
#fch71  7,b7 g5]ates electricity us+    
en]gy production te*nology1  7,c7       
produces su* electricity ) an emissions 
rate less ?an #ajj;g ,,co#b-;e p] k,wh1 
&  7,d7 is plac$ 9 s]vice aft] ! date ( 
enactm5t ( ?is section4  7#b7 ,en]gy    
production te*nology  7,a7 ,9 g5]al ,=  
purposes ( p>agraph 7#a71 ea* ( ! foll[+
 %all be treat$ z an individual en]gy   
production te*nology3 7i7 ,traditional  
nucle> fission4  7ii7 ,light wat]       
reactor-bas$ advanc$ nucle> fission4    
7iii7 ,non-light wat] reactor-bas$      
advanc$ nucle> fission4  7iv7 ,nucle>   
fusion4  7v7 ,conc5trat+ sol> !rmal p[]4
  7vi7 ,silicon photovoltaic4  7vii7    
,cadmium telluride & copp] indium       

gallium sel5ide sol>4  7viii7 ,em]g+    
photovoltaics4  7ix7 ,enhanc$ geo!rmal4 
7x7 ,hydro!rmal4  7xi7 ,m>9e en]gy4     
7xii7 ,fix$ bottom (f%ore w9d4  7xiii7  
,float+ (f%ore w9d4  7xiv7 ,traditional 
on%ore w9d4  7xv7 ,new on%ore w9d4      
7xvi7 ,coal4  7xvii7 ,natural gas4      
7xviii7 ,petroleum4  7xix7 ,op5-loop    
biomass4  7xx7 ,clos$-loop biomass4     
7xxi7 ,hydrop[]4  7,b7 ,additional      
specifications  7i7 ,nucle> fission     
7,i7 ,traditional nucle> fission ,=     
purposes ( clause 7i7 ( subp>agraph     
7,a71 ! t]m traditional nucle> fission  
means any nucle> fission :i* is n       
describ$ 9 subclause 7,,ii7 or 7,,iii74 
7,,ii7 ,light wat] reactor-bas$ advanc$ 
nucle> fission ,= purposes ( clause 7ii7
 ( su* subp>agraph1 ! t]m light wat]    
reactor-bas$ advanc$ nucle> fission %all
 include small modul> light wat]        
reactors4  7,,iii7 ,non-light wat]      
reactor-bas$ advanc$ nucle> fission ,=  
purposes ( clause 7iii7 ( su*           
subp>agraph1 ! t]m non-light wat]       

reactor-bas$ advanc$ nucle> fission     
means any advanc$ nucle> fission :i* is 
n includ$ "u clause 7ii7 ( su*          
subp>agraph4  7ii7 ,nucle> fusion ,=    
purposes ( clause 7iv7 ( subp>agraph    
7,a71 only nucle> fusion = :i* net p[]  
is produc$ f ! fusion reaction %all be  
includ$4  7iii7 ,em]g+ photovoltaics ,= 
purposes ( clause 7viii7 ( su*          
subp>agraph1 ! t]m em]g+ photovoltaics  
includes p]ovskite-bas$ &               
p]ovskite-enhanc$ sol>1 quantum dots1   
organic photovoltaics1 multi-junction   
t&em devices1 & any photovoltaic sol>   
te*nology n includ$ "u clause 7vii7 (   
su* subp>agraph4  7iv7 ,m>9e en]gy ,=   
purposes ( clause 7xi7 ( su*            
subp>agraph1 ! t]m m>9e en]gy has ! same
 mean+ giv5 su* t]m "u section #fcb ( ! 
,en]gy ,indep5d5ce & ,security ,act (   
#bjjg 7#db ,u4,s4,c4 #agbaa74  7v7      
,traditional on%ore w9d ,= purposes (   
clause 7xiv7 ( subp>agraph 7,a71 ! t]m  
traditional on%ore w9d means any en]gy  
production te*nology ( a design :i* is !

 same z or sub/antially simil> to w9d   
te*nology t has a*iev$ megawatt scale or
 l>g] deploym5t 9 ! ,unit$ ,/ates z ( ! 
date ( enactm5t ( ?is section4  7vi7    
,new on%ore w9d ,= purposes ( clause    
7xv7 ( su* subp>agraph1 ! t]m new on%ore
 w9d means any en]gy production         
te*nology :i* is n includ$ 9 clause     
7xiv7 ( su* subp>agraph4  7vii7         
,op5-loop biomass ,= purposes ( clause  
7xix7 ( su* subp>agraph1 ! t]m op5-loop 
biomass has ! same mean+ giv5 su* t]m "u
 section #de7;c77#c74  7viii7           
,clos$-loop biomass ,= purposes ( clause
 7xx7 ( su* subp>agraph1 ! t]m          
clos$-loop biomass has ! same mean+ giv5
 su* t]m "u section #de7;c77#b74  7#c7  
,emissions rate  7,a7 ,exclusions ,=    
purposes ( p>agraph 7#a77;,c71 !        
emissions rate %all n include-- 7i7 any 
emissions :i* are captur$ us+ c>bon     
capture equipm5t1 provid$ t any c>bon   
oxide captur$ us+ su* equipm5t is       
dispos$ (1 us$1 or utiliz$ 9 a mann]    
consi/5t ) ! requirem5ts "u section     

#de,q1 or  7ii7 9 ! case ( electricity  
g5]at$ f any fossil fuel1 any up/ream or
 fugitive emissions1 su* z emissions    
relat$ to ! extraction1 transportation1 
/orage ( su* fuel4  7,b7 ,lifecycle     
analysis ,= purposes ( p>agraph         
7#a77;,c71 9 ! case ( any facility :i*  
g5]ates electricity ?r\gh combu/ion ( a 
non-fossil fuel1 ! emissions rate %all  
be det]m9$ bas$ on a lifecycle analysis4
  7#d7 ,application ) o!r cr$its  7,a7  
,9 g5]al ,! t]m qualifi$ production     
facility %all n include any facility =  
:i*1 = ! taxable ye> or any prior       
taxable ye>-- 7i7 electricity produc$ f 
su* facility is tak5 into acc\nt =      
purposes ( ! cr$it all[$ "u section #de 
or #de;,j1  7ii7 qualifi$ c>bon oxide   
captur$ by su* facility is tak5 into    
acc\nt = purposes ( ! cr$it all[$ "u    
section #de,q1  7iii7 ! basis ( any     
prop]ty :i* is "p ( su* facility is tak5
 into acc\nt = purposes ( ! cr$it all[$ 
"u section #dh1 #dh;,a1 #dh;,b1 #dh;,c1 
or #dh;,d1 or  7iv7 hydrog5 produc$ f   

su* facility is tak5 into acc\nt =      
purposes ( ! cr$it all[$ "u section     
#de,v4  7,b7 ,d5ial ( d\ble b5efit ,)   
respect to any section describ$ 9 clause
 7i71 7ii71 7iii71 or 7iv7 ( subp>agraph
 7,a71 no cr$it %all be all[$ "u su*    
section = any taxable ye> ) respect to  
any prop]ty = :i* a cr$it is all[$ "u   
?is section = su* taxable ye> or any    
prior taxable ye>4  7#e7 ,,co#b-;e ,9   
?is section1 ! t]m ,,co#b-;e means !    
quantity ( a gre5h\se gas t has a global
 w>m+ pot5tial equival5t to #a metric   
ton ( c>bon dioxide1 z det]m9$ "u table 
,a-#a ( subp>t ,a ( "p #ih ( title #dj1 
,code ( ,f$]al ,regulations1 z 9 effect 
on ! date ( enactm5t ( ?is section4  7e7
 ,det]m9ation ( :5 con/ruction beg9s2   
cont9u\s program ( con/ruction or       
cont9uity ( ef=t  7#a7 ,9 g5]al ,=      
purposes ( ?is section1 con/ruction ( a 
facility beg9s :5-- 7,a7 physical "w ( a
 significant nature beg9s1 or  7,b7 dur+
 ! ye> 9 :i* ! taxpay] beg9s physical   
"w1 a facility has inve/$ n less ?an--  

7i7 #b p]c5t ( con/ruction co/s1 or     
7ii7 #ej1jjj1jjj4  7#b7 ,"w p]=m$ ,=    
purposes ( p>agraph 7#a71 any "w p]=m$--
 7,a7 by ! taxpay]1 or  7,b7 = ! taxpay]
 by o!r p]sons "u a b9d+ writt5 contract
 :i* is ent]$ into prior to !           
manufacture1 con/ruction1 or production 
( ! prop]ty = use by ! taxpay] 9 !      
taxpay]'s trade or bus9ess 7or = !      
taxpay]'s production ( income71  %all be
 tak5 into acc\nt 9 det]m9+ :e!r        
con/ruction has begun4  7#c7 ,cont9u\s  
program ( con/ruction ,= purposes ( ?is 
section1 ! t]m cont9u\s program (       
con/ruction means cont9u+ physical "w ( 
a significant nature1 z det]m9$ by !    
,secret>y bas$ ^u relevant facts &      
circum/ances4  7#d7 ,cont9u\s ef=ts ,=  
purposes ( ?is section1 ! t]m cont9u\s  
ef=ts means mak+ cont9u\s ef=ts t[>ds   
completion ( ! facility1 z det]m9$ by ! 
,secret>y bas$ ^u relevant facts &      
circum/ances4  7f7 ,transf] ( cr$it     
,rules simil> to ! rules ( subsection   
7d77#b7 ( section #dh;,d %all apply =   

purposes ( ?is section4  7g7 ,election  
,an election "u ?is subsection ) respect
 to ! am\nts describ$ 9 p>agraphs 7#a7 &
 7#b7 ( subsection 7a7 %all be includ$ 9
 ! return ( tax = ! taxable ye> 9 :i* ! 
qualifi$ production facility is plac$ 9 
s]vice4 ,su* election1 once made1 %all  
be irrevocable = any taxable ye> dur+ ! 
cr$it p]iod "u subsection 7c74  7h7     
,regulations ,n lat] ?an #ah mon?s aft] 
! date ( ! enactm5t ( ?is section1 !    
,secret>y %all prescribe su* regulations
 z may be necess>y or appropriate to    
c>ry out ! purposes ( ?is section4  4   
7b7 ,cr$it all[$ z "p ( g5]al bus9ess   
cr$it ,section #ch7;b7 ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
plus at ! end ( p>agraph 7#cb71 by /rik+
 ! p]iod at ! end ( p>agraph 7#cc7 &    
ins]t+ 1 plus1 & by add+ at ! end !     
foll[+ new p>agraph3  7#cd7 ! em]g+     
en]gy te*nology production cr$it det]m9$
 "u section #de,u7a74  4  7c7 ,special  
rule = proce$s ( transf]s = mutual or   
coop]ative electric companies ,section  

#eja7;c77#ab77;,i7 ( su* ,code1 z am5d$ 
by section #c7;b71 is am5d$ by /rik+ or 
#dh;,d7d77#b7 & ins]t+ 1 #de,u7f71 or   
#dh;,d7d77#b74  7d7 ,cl]ical am5dm5t ,! 
table ( sections = subp>t ,d ( "p ,,iv (
 sub*apt] ,a ( *apt] #a ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new item3  ,sec4      
#de,u4 ,electricity produc$ f em]g+     
en]gy te*nology4  4  7e7 ,effective date
 ,! am5dm5ts made by ?is section %all   
apply to electricity produc$ & sold 9   
taxable ye>s beg9n+ aft] ! date ( !     
enactm5t ( ?is ,act4  #e4 ,clean hydrog5
 production cr$it  7a7 ,9 g5]al ,subp>t 
,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( 
! ,int]nal ,rev5ue ,code ( #aihf1 z     
am5d$ by section #d1 is am5d$ by add+ at
 ! end ! foll[+ new section3  #de,v4    
,clean hydrog5 production  7a7 ,g5]al   
rule  7#a7 ,am\nt ( cr$it ,= purposes ( 
section #ch1 ! clean hydrog5 production 
cr$it det]m9$ "u ?is section = any      
taxable ye> beg9n+ 9 ! cr$it p]iod )    
respect to a qualifi$ hydrog5 production

 facility ( ! taxpay] is an am\nt equal 
to ! product (-- 7,a7 ! applicable      
p]c5tage ( an am\nt equal to #bej p]c5t 
( ! national av]age :olesale price ( a  
kilogram ( hydrog5 9 ! cal5d> ye> :i*   
began #b ye>s prior to ! cal5d> ye> 9   
:i* su* taxable ye> beg9s1 &  7,b7      
subject to p>agraph 7#b71 ! am\nt (     
clean hydrog5 produc$ at ! qualifi$     
hydrog5 production facility dur+ su*    
taxable ye>4  7#b7 ,increase =          
z]o-emissions hydrog5 ,9 ! case ( any   
clean hydrog5 describ$ 9 subsection     
7d77#a77;,a77ii71 ! am\nt det]m9$ "u    
p>agraph 7#a77;,b7 ) respect to su*     
clean hydrog5 %all be equal to twice !  
am\nt o!rwise det]m9$ "u su* p>agraph4  
7b7 ,applicable p]c5tage  7#a7 ,9 g5]al 
,= purposes ( subsection 7a77#a77;,a71 !
 applicable p]c5tage is-- 7,a7 9 ! case 
( a ti] #a facility1 #fj p]c5t1  7,b7 9 
! case ( a ti] #b facility1 #de p]c5t1  
7,c7 9 ! case ( a ti] #c facility1 #cj  
p]c5t1  7,d7 9 ! case ( a ti] #d        
facility1 #ae p]c5t1 &  7,e7 9 ! case ( 

any o!r facility1 z]o p]c5t4  7#b7      
,facility ti]s  7,a7 ,9 g5]al ,=        
purposes ( ?is subsection-- 7i7 ,ti] #a 
facility ,! t]m ti] #a facility means   
any qualifi$ hydrog5 production facility
 :i* produces clean hydrog5 f a qualifi$
 production me?od = :i* ! m>ket         
p5etration level = ! cal5d> ye> prec$+ !
 cal5d> ye> 9 :i* con/ruction or        
modification ( su* facility began is    
less ?an #j4ge p]c5t4  7ii7 ,ti] #b     
facility ,! t]m ti] #b facility has !   
same mean+ giv5 ! t]m ti] #a facility "u
 clause 7i71 except t at lea/ #j4ge     
p]c5t b less ?an #a4e p]c5t %all be     
sub/itut$ = less ?an #j4ge p]c5t4  7iii7
 ,ti] #c facility ,! t]m ti] #c facility
 has ! same mean+ giv5 ! t]m ti] #a     
facility "u clause 7i71 except t at lea/
 #a4e p]c5t b less ?an #b4be p]c5t %all 
be sub/itut$ = less ?an #j4ge p]c5t4    
7iv7 ,ti] #d facility ,! t]m ti] #d     
facility has ! same mean+ giv5 ! t]m ti]
 #a facility "u clause 7i71 except t at 
lea/ #b4be p]c5t b less ?an #c p]c5t    

%all be sub/itut$ = less ?an #j4ge      
p]c5t4  7,b7 ,m>ket p5etration level ,= 
purposes ( ?is p>agraph1 ! t]m m>ket    
p5etration level means1 ) respect to any
 cal5d> ye>1 ! am\nt equal to ! great]  
(-- 7i7 ! am\nt 7express$ z a p]c5tage7 
equal to ! quoti5t (-- 7,i7 subject to  
subsection 7d77#a77;,c71 ! total en]gy  
cont5t 7express$ 9 megawatt h\rs7 ( all 
clean hydrog5 produc$ us+ ! qualifi$    
production me?od by all qualifi$ hydrog5
 production facilities 7z def9$ 9       
subsection 7d77#b77;,a71 except t clause
 7iii7 ( su* subsection %all n apply7   
dur+ su* cal5d> ye> 7z det]m9$ by !     
,secret>y on ! basis ( data report$ by !
 ,en]gy ,in=mation ,adm9i/ration71      
divid$ by  7,,ii7 ! total dome/ic p[]   
sector electricity production 7express$ 
9 megawatt h\rs7 = su* cal5d> ye>1 or   
7ii7 ! am\nt det]m9$ "u ?is subp>agraph 
= ! prec$+ cal5d> ye>  7,c7 ,division ( 
production me?ods = purposes ( det]m9+  
ti] ,= purposes ( det]m9+ ! applicable  
ti] = any qualifi$ production me?od "u  

subp>agraph 7,b71 su* subp>agraph %all  
be appli$ sep>ately ) respect to-- 7i7  
any su* me?od describ$ 9 subp>agraph    
7,a7 ( subsection 7d77#c71 &  7ii7 any  
su* me?od describ$ 9 subp>agraph 7,b7 ( 
su* subsection4  7,d7 ,con/ruction beg9s
 ,= purposes ( ?is subsection1 !        
det]m9ation z to :e!r a facility        
qualifies z a ti] #a1 #b1 #c1 or #d     
facility %all be-- 7i7 made dur+ ! ye> 9
 :i* con/ruction or modification ( su*  
facility beg9s1  7ii7 bas$ on !         
det]m9ations includ$ 9 report describ$ 9
 section #de,u7b77#b77;,d77i77,,ii7 )   
respect to su* cal5d> ye>1 &  7iii7     
cont+5t on ! taxpay] ma9ta9+ a cont9u\s 
program ( con/ruction or cont9u\s ef=ts 
to advance t[>ds completion ( !         
facility4  7,e7 ,reports  7i7 ,9 g5]al  
,! ,secret>y %all1 z "p ( ! reports     
publi%$ pursuant to section             
#de,u7b77#b77;,d77i7 & 9 ! same mann] z 
describ$ "u su* section1 publi% !       
applicable m>ket p5etration level & ti] 
= ea* qualifi$ production me?od :i* has 

be5 us$ to produce clean hydrog5 by any 
qualifi$ hydrog5 production facility 7z 
def9$ 9 subsection 7d77#b77;,a71 except 
t clause 7iii7 ( su* subsection %all n  
apply74  7ii7 ,national av]age :olesale 
price ,= purposes ( det]m9+ ! am\nt     
applicable "u subsection 7a77#a77;,a7 ) 
respect to any cal5d> ye>1 ! ,secret>y (
 ,en]gy 79 consultation ) ! ,secret>y7  
%all include 9 any report describ$ 9    
section #de,u7b77#b77;,d77i7 a          
det]m9ation ) respect to ! national     
av]age :olesale price ( a kilogram (    
hydrog5 dur+ su* cal5d> ye>4  7c7 ,cr$it
 p]iod ,= purposes ( ?is section1 !     
cr$it p]iod ) respect to any qualifi$   
hydrog5 production facility is-- 7#a7 9 
! case ( a facility describ$ 9 subclause
 7,i7 ( subsection 7d77#b77;,a77iii71 ! 
#aj-ye> p]iod beg9n+ ) ! date ! facility
 0 orig9ally plac$ 9 s]vice1 or  7#b7 9 
! case ( a facility describ$ 9 subclause
 7,,ii7 ( su* subsection1 ! #aj-ye>     
p]iod beg9n+ ) ! date t ! prop]ty       
requir$ to modify su* facility is plac$ 

9 s]vice4  7d7 ,def9itions ,9 ?is       
section-- 7#a7 ,clean hydrog5  7,a7 ,9  
g5]al ,! t]m clean hydrog5 means hydrog5
 :i*1 z det]m9$ bas$ on a lifecycle     
analysis1 is produc$ ?r\gh a qualifi$   
production me?od = :i* ! rate ( !       
gre5h\se gas emissions-- 7i7 is great]  
?an z]o & n great] ?an #b1ejj;g         
,,co#b-;e 7z def9$ 9 section            
#de,u7d77#e77 p] kilogram ( hydrog5     
produc$1 or  7ii7 is equal to or less   
?an z]o4  7,b7 ,special rules  7i7      
,emissions f g5]ation ( electricity ,9 !
 case ( any hydrog5 produc$ f a qualifi$
 production me?od describ$ 9 p>agraph   
7#c77;,a7-- 7,i7 if su* me?od uses      
electricity g5]at$ f a r5ewable en]gy   
res\rce 7z def9$ 9 section #djc ( !     
,r5ewable ,en]gy ,res\rces ,act ( #aihj 
7#db ,u4,s4,c4 #gcgb77 or nucle> p[]1   
su* hydrog5 %all be deem$ to be clean   
hydrog5 describ$ 9 subp>agraph 7,a77ii71
 or  7,,ii7 if su* me?od uses           
electricity g5]at$ f a s\rce t emits    
gre5h\se gases dur+ production1 any su* 

emissions :i* are releas$ into !        
atmosph]e dur+ su* production %all be   
includ$ = purposes ( det]m9+ ! rate ( ! 
gre5h\se gas emissions "u subp>agraph   
7,a74  7ii7 ,non-electrolysis or use (  
fossil fuels ,9 ! case ( any hydrog5    
produc$-- 7,i7 ?r\gh ! use ( fossil     
fuels or ?r\gh ! use ( electricity :i*  
is g5]at$ ?r\gh combu/ion ( a fossil    
fuel1 or  7,,ii7 us+ a me?od describ$ 9 
p>agraph 7#c77;,b71  subp>agraph 7,a7   
%all be appli$ ) respect to su* hydrog5 
on ! basis ( a lifecycle analysis4      
7iii7 ,exclusion ( hydrog5 emissions ,= 
purposes ( subp>agraph 7,a71 ) respect  
to hydrog5 produc$ ?r\gh a qualifi$     
production me?od1 any su* hydrog5 :i* is
 releas$ into ! atmosph]e dur+ su*      
production %all n be includ$ = purposes 
( det]m9+ ! rate ( ! gre5h\se gas       
emissions "u su* subp>agraph4  7iv7     
,c>bon capture ,= purposes ( det]m9+ !  
rate ( ! gre5h\se gas emissions "u      
subp>agraph 7,a71 su* subp>agraph %all n
 apply ) respect to any qualifi$ c>bon  

oxide 7z def9$ 9 section #de,q7c77      
captur$ us+ c>bon capture equipm5t if   
su* c>bon oxide is dispos$ (1 us$1 or   
utiliz$ 9 a mann] consi/5t ) !          
requirem5ts "u section #de,q4  7v7      
,up/ream & d[n/ream emissions  7,i7 ,9  
g5]al ,9 ! case ( hydrog5 produc$ us+ a 
qualifi$ production me?od describ$ 9    
clause 7ii71 = purposes ( ! application 
( subp>agraph 7,a7 bas$ on a lifecycle  
analysis ) respect to su* me?od1 su*    
subp>agraph %all n apply ) respect to-- 
7aa7 any up/ream emissions1 &  7bb7 any 
d[n/ream emissions relat$ to !          
compression1 liquefaction1 use1 or      
transport ( hydrog5 subsequ5t to        
production4  7,,ii7 ,high-temp]ature    
electrolysis ,= purposes ( det]m9+ !    
rate ( ! gre5h\se gas emissions "u      
subp>agraph 7,a7 ) respect to hydrog5   
produc$ us+ high-temp]ature             
electrolysis1 su* subp>agraph %all apply
 ) respect to any direct emissions      
result+ f ! fuel s\rce us$ to create    
heat to :i* clause 7iv7 does n apply4   

7,,iii7 ,up/ream emissions ,= purposes (
 ?is clause1 ! t]m up/ream emissions    
means ! quantity ( gre5h\se gases1      
express$ 9 metric tons ( ,,co#b-;e1     
emitt$ to ! atmosph]e result+ f !       
extraction1 process+1 transportation1   
f9anc+1 or o!r prep>ation ( hydrog5 =   
use4  7,c7 ,en]gy cont5t ,= purposes (  
subsection 7b77#b77;,b77i77,i71 ! en]gy 
cont5t ( #a kilogram ( clean hydrog5    
%all be deem$ to be equal to #cc4f      
kil[att h\rs ( en]gy4  7#b7 ,qualifi$   
hydrog5 production facility  7,a7 ,9    
g5]al ,! t]m qualifi$ hydrog5 production
 facility means any facility-- 7i7 :i*  
is locat$ 9 ! ,unit$ ,/ates or a        
possession ( ! ,unit$ ,/ates 7z su* t]ms
 are us$ 9 section #fch71  7ii7 :i*     
produces clean hydrog5 us+ a qualifi$   
production me?od1 &  7iii7 7,i7 :i* is  
plac$ 9 s]vice aft] ! date ( enactm5t ( 
?is section1 or  7,,ii7 :i*-- 7aa7 0    
orig9ally plac$ 9 s]vice be=e ! date (  
enactm5t ( ?is section &1 prior to !    
modification describ$ 9 item 7bb71 did n

 produce clean hydrog51 &  7bb7 aft] !  
date ( enactm5t ( ?is section1 is       
modifi$ to produce clean hydrog51       
includ+-- 7,,aa7 modification ( a       
facility :i*1 prior to su* modification1
 produc$ hydrog5 :i* did n satisfy !    
requirem5ts "u p>agraph 7#a77;,a71 or   
7,,bb7 = purposes ( p>agraph            
7#a77;,b77iv71 in/allation ( c>bon      
capture equipm5t4  7,b7 ,application )  
o!r cr$its  7i7 ,9 g5]al ,) respect to  
any taxable ye>1 ! t]m qualifi$ hydrog5 
production facility %all n include--    
7,i7 any facility :i*-- 7aa7 produces   
electricity-- 7,,aa7 :i* is tak5 into   
acc\nt = purposes ( ! cr$it all[$ "u    
section #de1 #de;,j1 or #de,u = su*     
taxable ye> or any previ\s taxable ye>1 
& 7,,bb7 :i* is us$ by su* facility = ! 
production ( clean hydrog51 or  7bb7 =  
su* taxable ye> or any previ\s taxable  
ye>1 ! basis ( any prop]ty :i* is "p (  
su* facility is tak5 into acc\nt =      
purposes ( ! cr$it all[$ "u section #dh1
 #dh;,a1 #dh;,b1 #dh;,c1 or #dh;,d1 or  

7,,ii7 any c>bon capture equipm5t plac$ 
9 s]vice at a facility :i* is us$ to    
capture qualifi$ c>bon oxide :i* is tak5
 into acc\nt 9 su* taxable ye> or any   
previ\s taxable ye> = purposes ( ! cr$it
 all[$ "u section #de,q4  7ii7 ,d5ial ( 
d\ble b5efit ,) respect to any section  
describ$ 9 clause 7,i7 or 7,,ii7 (      
clause 7i71 no cr$it %all be all[$ "u   
su* section = any taxable ye> ) respect 
to any prop]ty = :i* a cr$it is all[$ "u
 ?is section = su* taxable ye> or any   
prior taxable ye>4  7#c7 ,qualifi$      
production me?od ,! t]m qualifi$        
production me?od means-- 7,a7           
electrolysis1 &  7,b7 any me?od n       
describ$ 9 subp>agraph 7,a74  7e7       
,transf] ( cr$it  7#a7 ,9 g5]al ,if1 )  
respect to a cr$it all[$ "u subsection  
7a7 = any taxable ye>1 ! taxpay] elects 
! application ( ?is subsection = su*    
taxable ye> ) respect to all 7or any    
portion specifi$ 9 su* election7 ( su*  
cr$it1 ! eligible project p>tn] specifi$
 9 su* election1 & n ! taxpay]1 %all be 

treat$ z ! taxpay] = purposes ( ?is     
title ) respect to su* cr$it 7or su*    
portion !re(74  7#b7 ,eligible project  
p>tn]  7,a7 ,9 g5]al ,= purposes ( ?is  
subsection1 ! t]m eligible project p>tn]
 means1 ) respect to any qualifi$       
hydrog5 production facility1 any p]son  
:o-- 7i7 has an own]%ip int]e/ 9 su*    
facility1  7ii7 provid$ equipm5t = or   
s]vices 9 ! con/ruction ( su* facility1 
7iii7 provides electricity or fe$/ock = 
production ( hydrog5 at su* facility1   
7iv7 pur*ases hydrog51 or a direct      
product !re(1 produc$ at su* facility   
pursuant to a contract1 or  7v7 provides
 f9anc+ = su* facility4  7,b7 ,f9anc+ ,=
 purposes ( subp>agraph 7,a77v71 any    
am\nt paid z consid]ation = a transf]   
describ$ 9 p>agraph 7#a7 %all n be      
treat$ z f9anc+ = qualifi$ hydrog5      
production facility4  7,c7 ,o!r rules   
,rules simil> to ! rules ( subp>agraphs 
7,c7 ?r\gh 7,i7 ( section #dh;,d7d77#b7 
%all apply = purposes ( ?is subsection4 
7f7 ,det]m9ation ( :5 con/ruction beg9s2

 cont9u\s program ( con/ruction or      
cont9uity ( ef=t ,rules simil> to !     
rules ( section #de,u7e7 %all apply =   
purposes ( ?is section4  7g7            
,regulations ,n lat] ?an #a ye> aft] !  
date ( ! enactm5t ( ?is section1 !      
,secret>y %all prescribe su* regulations
 z may be necess>y or appropriate to    
c>ry out ! purposes ( ?is section4  4   
7b7 ,cr$it all[$ z "p ( g5]al bus9ess   
cr$it ,section #ch7;b7 ( ! ,int]nal     
,rev5ue ,code ( #aihf1 z am5d$ by       
section #d7;b71 is am5d$ by /rik+ plus  
at ! end ( p>agraph 7#cc71 by /rik+ !   
p]iod at ! end ( p>agraph 7#cd7 & ins]t+
 1 plus1 & by add+ at ! end ! foll[+ new
 p>agraph3  7#ce7 ! clean hydrog5       
production cr$it det]m9$ "u section     
#de,v7a74  4  7c7 ,cl]ical am5dm5t ,!   
table ( sections = subp>t ,d ( "p ,,iv (
 sub*apt] ,a ( *apt] #a ( ! ,int]nal    
,rev5ue ,code ( #aihf1 z am5d$ by       
section #d7;d71 is am5d$ by add+ at !   
end ! foll[+ new item3  ,sec4 #de,v4    
,clean hydrog5 production4  4  7d7      

,effective date ,! am5dm5ts made by ?is 
section %all apply to hydrog5 produc$ 9 
taxable ye>s beg9n+ aft] ! date ( !     
enactm5t ( ?is ,act4  #f4 ,report on    
additional en]gy production te*nology   
7a7 ,9 g5]al ,n lat] ?an #a ye> aft] !  
date ( enactm5t ( ?is ,act1 & e #e ye>s 
!reaft]1 ! ,secret>y ( ,en]gy 7ref]r$ to
 9 ?is section z ! ,secret>y7 %all      
submit a report to ! ,committee on ,ways
 & ,means ( ! ,h\se ( ,repres5tatives & 
! ,committee on ,f9ance ( ! ,s5ate :i*--
 7#a7 id5tifies new & em]g+ en]gy       
production te*nologies :i*-- 7,a7 h less
 ?an #c p]c5t m>ket p5etration level 7z 
def9$ 9 subsection 7b77#b77;,b7 (       
section #de,u ( ! ,int]nal ,rev5ue ,code
 ( #aihf 7z add$ by section #d ( ?is    
,act772 &  7,b7 ! ,secret>y recomm5ds   
%\ld be add$ to subsection 7d77#b77;,a7 
( su* section z an individual en]gy     
production te*nology2  7#b7 includes    
legislative language to c>ry out !      
recomm5dations describ$ 9 p>agraph      
7#a77;,b72 &  7#c7 consid]s petitions & 

comm5ts submitt$ "u subsection 7b74  7b7
 ,report process  7#a7 ,9 g5]al ,n lat] 
?an #bd mon?s aft] ! date ( enactm5t (  
?is ,act1 ! ,secret>y %all publi% 9 !   
,f$]al ,regi/] & on a publicly available
 ,int]net website ( ! ,dep>tm5t ( ,en]gy
 a notice reque/+ memb]s ( ! public to  
submit to ! ,dep>tm5t ( ,en]gy dur+ !   
#fj-;day p]iod beg9n+ on ! date ( su*   
publication petitions = inclusion ( any 
te*nology us$ = ! production (          
electricity z an individual en]gy       
production te*nology "u subsection      
7d77#b7 ( section #de,u ( ! ,int]nal    
,rev5ue ,code ( #aihf 7z add$ by section
 #d ( ?is ,act74  7#b7 ,cont5t ,ea*     
petition describ$ 9 p>agraph 7#a7 %all  
include ! foll[+ in=mation3 7,a7 ,! "n &
 address ( ! petition]4  7,b7 ,a        
description ( ! te*nology us$ = !       
production ( electricity4  7,c7 ,a      
c]tification z to :e!r su* te*nology    
satisfies ! requirem5ts "u subsection   
7d77#a77;,c7 ( section #de,u ( !        
,int]nal ,rev5ue ,code ( #aihf4  7,d7   

,su* o!r in=mation z ! ,secret>y may    
require4  7#c7 ,proc$ures ,! ,secret>y  
%all prescribe & publi% 9 ! ,f$]al      
,regi/] & on a publicly available       
int]net website ( ! ,dep>tm5t ( ,en]gy  
proc$ures to be compli$ ) by memb]s ( ! 
public submitt+ petitions = inclusion "u
 p>agraph 7#a74  7c7 ,review  7#a7      
,publication & public availability ,z   
soon z practicable1 ! ,secret>y %all    
publi% on a publicly available int]net  
website ( ! ,dep>tm5t ( ,en]gy !        
petitions = inclusions submitt$ "u      
p>agraph 7#a7 ( subsection 7b7 t conta9 
! in=mation requir$ "u p>agraph 7#b7 (  
su* subsection4  7#b7 ,public comm5t    
7,a7 ,9 g5]al ,! ,secret>y %all publi% 9
 ! ,f$]al ,regi/] & on a publicly       
available int]net website ( ! ,dep>tm5t 
( ,en]gy a notice reque/+ memb]s ( !    
public to submit to ! ,dep>tm5t ( ,en]gy
 comm5ts on ! petitions = inclusion     
publi%$ by ! ,dep>tm5t ( ,en]gy "u      
p>agraph 7#a74  7,b7 ,publication ,!    
,secret>y %all publi% a notice 9 !      

,f$]al ,regi/] direct+ memb]s ( ! public
 to a publicly available int]net website
 ( ! ,dep>tm5t ( ,en]gy to view !       
comm5ts ( ! memb]s ( ! public receiv$ "u
 subp>agraph 7,a74  7d7 ,s5se (         
,congress ,x is ! s5se ( ,congress t1 to
 inc5tivize innovation 9 en]gy g5]ation 
te*nologies & to promote ! reliability (
 & p]=mance improvem5ts 9 ! ,unit$      
,/ates en]gy sector1 ,congress %\ld1 n  
lat] ?an #ij days aft] ! ,secret>y      
submits any report "u subsection 7a71   
consid] a bill to add any te*nology us$ 
= ! production ( electricity :i* is     
includ$ 9 su* report to ! li/ (         
individual en]gy production te*nologies 
"u section #de,u7d77#b7 ( ! ,int]nal    
,rev5ue ,code ( #aihf4