H.R. 2811 — what changed

removed “(d) Qualified facility—For purposes of this section, the term “qualified facility” means any industrial facility or direct air capture facility—

removed “(1) the construction of which begins before January 1, 2026, and—

removed “(A) construction of carbon capture equipment begins before such date, or

removed “(B) the original planning and design for such facility includes installation of carbon capture equipment, and

removed “(2) which captures—

removed “(A) in the case of a facility which emits not more than 500,000 metric tons of carbon oxide into the atmosphere during the taxable year, not less than 25,000 metric tons of qualified carbon oxide during the taxable year which is utilized in a manner described in subsection (f)(5),

removed “(B) in the case of an electricity generating facility which is not described in subparagraph (A), not less than 500,000 metric tons of qualified carbon oxide during the taxable year, or

removed “(C) in the case of a direct air capture facility or any facility not described in subparagraph (A) or (B), not less than 100,000 metric tons of qualified carbon oxide during the taxable year.”

removed “(1) Applicable dollar amount

removed “(B) In general—The applicable dollar amount shall be an amount equal to—

removed “(i) for any taxable year beginning in a calendar year after 2016 and before 2027—

removed “(I) for purposes of paragraph (3) of subsection (a), the dollar amount established by linear interpolation between $22.66 and $50 for each calendar year during such period, and

removed “(II) for purposes of paragraph (4) of such subsection, the dollar amount established by linear interpolation between $12.83 and $35 for each calendar year during such period, and

removed “(ii) for any taxable year beginning in a calendar year after 2026—

removed “(I) for purposes of paragraph (3) of subsection (a), an amount equal to the product of $50 and the inflation adjustment factor for such calendar year determined under section 43(b)(3)(B) for such calendar year, determined by substituting “2025” for “1990”, and

removed “(II) for purposes of paragraph (4) of such subsection, an amount equal to the product of $35 and the inflation adjustment factor for such calendar year determined under section 43(b)(3)(B) for such calendar year, determined by substituting “2025” for “1990”.

removed “(C) Rounding—The applicable dollar amount determined under subparagraph (A) shall be rounded to the nearest cent.”

added “(4) Certain aviation fuel

added “(A) In general—Except as provided in the last 3 sentences of paragraph (3), the term “renewable diesel” shall include fuel derived from biomass which meets the requirements of a Department of Defense specification for military jet fuel or an American Society of Testing and Materials specification for aviation turbine fuel.

added “(B) Application of mixture credits—In the case of fuel which is treated as renewable diesel solely by reason of subparagraph (A), subsection (b)(1) and section 6426(c) shall be applied with respect to such fuel by treating kerosene as though it were diesel fuel.”

added “(D) liquefied hydrogen,”

added “25C. Nonbusiness energy property

added “(a) Allowance of credit—In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of—

added “(1) 10 percent of the amount paid or incurred by the taxpayer for qualified energy efficiency improvements installed during such taxable year, and

added “(2) the amount of the residential energy property expenditures paid or incurred by the taxpayer during such taxable year.

added “(b) Limitations

added “(1) Lifetime limitation—The credit allowed under this section with respect to any taxpayer for any taxable year shall not exceed the excess (if any) of $500 over the aggregate credits allowed under this section with respect to such taxpayer for all prior taxable years ending after December 31, 2005.

added “(2) Windows—In the case of amounts paid or incurred for components described in subsection (c)(3)(B) by any taxpayer for any taxable year, the credit allowed under this section with respect to such amounts for such year shall not exceed the excess (if any) of $200 over the aggregate credits allowed under this section with respect to such amounts for all prior taxable years ending after December 31, 2005.

added “(3) Limitation on residential energy property expenditures—The amount of the credit allowed under this section by reason of subsection (a)(2) shall not exceed—

added “(A) $50 for any advanced main air circulating fan,

added “(B) $150 for any qualified natural gas, propane, or oil furnace or hot water boiler, and

added “(C) $300 for any item of energy-efficient building property.

added “(c) Qualified energy efficiency improvements—For purposes of this section—

added “(1) In general—The term “qualified energy efficiency improvements” means any energy efficient building envelope component, if—

added “(A) such component is installed in or on a dwelling unit located in the United States and owned and used by the taxpayer as the taxpayer's principal residence (within the meaning of section 121),

added “(B) the original use of such component commences with the taxpayer, and

added “(C) such component reasonably can be expected to remain in use for at least 5 years.

added “(2) Energy efficient building envelope component—The term “energy efficient building envelope component” means a building envelope component which meets—

added “(A) applicable Energy Star program requirements, in the case of a roof or roof products,

added “(B) version 6.0 Energy Star program requirements, in the case of an exterior window, a skylight, or an exterior door, and

added “(C) the prescriptive criteria for such component established by the 2009 International Energy Conservation Code, as such Code (including supplements) is in effect on the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009, in the case of any other component.

added “(3) Building envelope component—The term “building envelope component” means—

added “(A) any insulation material or system which is specifically and primarily designed to reduce the heat loss or gain of a dwelling unit when installed in or on such dwelling unit,

added “(B) exterior windows (including skylights),

added “(C) exterior doors, and

added “(D) any metal roof or asphalt roof installed on a dwelling unit, but only if such roof has appropriate pigmented coatings or cooling granules which are specifically and primarily designed to reduce the heat gain of such dwelling unit.

added “(4) Manufactured homes included—The term “dwelling unit” includes a manufactured home which conforms to Federal Manufactured Home Construction and Safety Standards (part 3280 of title 24, Code of Federal Regulations).

added “(d) Residential energy property expenditures—For purposes of this section—

added “(1) In general—The term “residential energy property expenditures” means expenditures made by the taxpayer for qualified energy property which is—

added “(A) installed on or in connection with a dwelling unit located in the United States and owned and used by the taxpayer as the taxpayer's principal residence (within the meaning of section 121), and

added “(B) originally placed in service by the taxpayer.

added “(2) Qualified energy property

added “(A) In general—The term “qualified energy property” means—

added “(i) energy-efficient building property,

added “(ii) a qualified natural gas, propane, or oil furnace or hot water boiler, or

added “(iii) an advanced main air circulating fan.

added “(B) Performance and quality standards—Property described under subparagraph (A) shall meet the performance and quality standards, and the certification requirements (if any), which—

added “(i) have been prescribed by the Secretary by regulations (after consultation with the Secretary of Energy or the Administrator of the Environmental Protection Agency, as appropriate), and

added “(ii) are in effect at the time of the acquisition of the property, or at the time of the completion of the construction, reconstruction, or erection of the property, as the case may be.

added “(C) Requirements and standards for air conditioners and heat pumps—The standards and requirements prescribed by the Secretary under subparagraph (B) with respect to the energy efficiency ratio (EER) for central air conditioners and electric heat pumps—

added “(i) shall require measurements to be based on published data which is tested by manufacturers at 95 degrees Fahrenheit, and

added “(ii) may be based on the certified data of the Air Conditioning and Refrigeration Institute that are prepared in partnership with the Consortium for Energy Efficiency.

added “(3) Energy-efficient building property—The term “energy-efficient building property” means—

added “(A) an electric heat pump water heater which yields a Uniform Energy Factor of at least 2.2 in the standard Department of Energy test procedure,

added “(B) an electric heat pump which achieves the highest efficiency tier established by the Consortium for Energy Efficiency, as in effect on January 1, 2009,

added “(C) a central air conditioner which achieves the highest efficiency tier established by the Consortium for Energy Efficiency, as in effect on January 1, 2009, and

added “(D) a natural gas, propane, or oil water heater which has either a Uniform Energy Factor of at least 0.82 or a thermal efficiency of at least 90 percent.

added “(4) Qualified natural gas, propane, or oil furnace or hot water boiler—The term “qualified natural gas, propane, or oil furnace or hot water boiler” means a natural gas, propane, or oil furnace or hot water boiler which achieves an annual fuel utilization efficiency rate of not less than 95.

added “(5) Advanced main air circulating fan—The term “advanced main air circulating fan” means a fan used in a natural gas, propane, or oil furnace and which has an annual electricity use of no more than 2 percent of the total annual energy use of the furnace (as determined in the standard Department of Energy test procedures).

added “(e) Special rules—For purposes of this section—

added “(1) Application of rules—Rules similar to the rules under paragraphs (4), (5), (6), (7), and (8) of section 25D(e) shall apply.

added “(2) Joint ownership of energy items

added “(A) In general—Any expenditure otherwise qualifying as an expenditure under this section shall not be treated as failing to so qualify merely because such expenditure was made with respect to two or more dwelling units.

added “(B) Limits applied separately—In the case of any expenditure described in subparagraph (A), the amount of the credit allowable under subsection (a) shall (subject to paragraph (1)) be computed separately with respect to the amount of the expenditure made for each dwelling unit.

added “(3) Property financed by subsidized energy financing—For purposes of determining the amount of expenditures made by any individual with respect to any property, there shall not be taken into account expenditures which are made from subsidized energy financing (as defined in section 48(a)(4)(C)).

added “(f) Basis adjustments—For purposes of this subtitle, if a credit is allowed under this section for any expenditure with respect to any property, the increase in the basis of such property which would (but for this subsection) result from such expenditure shall be reduced by the amount of the credit so allowed.

added “(g) Termination—This section shall not apply with respect to any property placed in service—

added “(1) after December 31, 2007, and before January 1, 2009, or

added “(2) after December 31, 2021.”

removed “(4) Certain aviation fuel

removed “(A) In general—Except as provided in the last 3 sentences of paragraph (3), the term “renewable diesel” shall include fuel derived from biomass which meets the requirements of a Department of Defense specification for military jet fuel or an American Society of Testing and Materials specification for aviation turbine fuel.

removed “(B) Application of mixture credits—In the case of fuel which is treated as renewable diesel solely by reason of subparagraph (A), subsection (b)(1) and section 6426(c) shall be applied with respect to such fuel by treating kerosene as though it were diesel fuel.”

added “(6) the qualified biomass fuel property expenditures,”

added “(6) Qualified biomass fuel property expenditure

added “(A) In general—The term “qualified biomass fuel property expenditure” means an expenditure for property—

added “(i) which uses the burning of biomass fuel to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit, and

added “(ii) which has a thermal efficiency rating of at least 75 percent (measured by the higher heating value of the fuel).

added “(B) Biomass fuel—For purposes of this section, the term “biomass fuel” means any plant-derived fuel available on a renewable or recurring basis.”

added “(b) Maximum amount of deduction—The deduction under subsection (a) with respect to any building for any taxable year shall not exceed the excess (if any) of—

added “(1) the product of—

added “(A) $1.80, and

added “(B) the square footage of the building, over

added “(2) the aggregate amount of the deductions under subsection (a) with respect to the building for all prior taxable years.”

added “(2) Reference standard 90.1—The term “Reference Standard 90.1” means, with respect to any property, the most recent Standard 90.1 published by the American Society of Heating, Refrigerating, and Air Conditioning Engineers and the Illuminating Engineering Society of North America which has been affirmed by the Secretary, after consultation with the Secretary of Energy, for purposes of this section not later than the date that is 2 years before the date that construction of such property begins.”

added “(1) Partial allowance

added “(A) In general—Except as provided in subsection (f), if—

added “(i) the requirement of subsection (c)(1)(D) is not met, but

added “(ii) there is a certification in accordance with paragraph (6) that any system referred to in subsection (c)(1)(C) satisfies the energy-savings targets established by the Secretary under subparagraph (B) with respect to such system,

added “(B) Regulations—The Secretary, after consultation with the Secretary of Energy, shall establish a target for each system described in subsection (c)(1)(C) such that, if such targets were met for all such systems, the building would meet the requirements of subsection (c)(1)(D).”

added “(4) Allocation of deduction for public property—In the case of energy efficient commercial building property installed on or in property owned by a Federal, State, or local government or a political subdivision thereof, the Secretary shall promulgate a regulation to allow the allocation of the deduction to the person primarily responsible for designing the property in lieu of the owner of such property. Such person shall be treated as the taxpayer for purposes of this section.”

added “(f) Interim rules for lighting systems—Until such time as the Secretary issues final regulations under subsection (d)(1)(B) with respect to property which is part of a lighting system—

added “(1) In general—The lighting system target under subsection (d)(1)(A)(ii) shall be a reduction in lighting power density of 25 percent (50 percent in the case of a warehouse) of the minimum requirements in Table 9.5.1 or Table 9.6.1 (not including additional interior lighting power allowances) of Standard 90.1–2007.

added “(2) Reduction in deduction if reduction less than 40 percent

added “(A) In general—If, with respect to the lighting system of any building other than a warehouse, the reduction in lighting power density of the lighting system is not at least 40 percent, only the applicable percentage of the amount of deduction otherwise allowable under this section with respect to such property shall be allowed.

added “(B) Applicable percentage—For purposes of subparagraph (A), the applicable percentage is the number of percentage points (not greater than 100) equal to the sum of—

added “(i) 50, and

added “(ii) the amount which bears the same ratio to 50 as the excess of the reduction of lighting power density of the lighting system over 25 percentage points bears to 15.

added “(C) Exceptions—This subsection shall not apply to any system—

added “(i) the controls and circuiting of which do not comply fully with the mandatory and prescriptive requirements of Standard 90.1–2007 and which do not include provision for bilevel switching in all occupancies except hotel and motel guest rooms, store rooms, restrooms, and public lobbies, or

added “(ii) which does not meet the minimum requirements for calculated lighting levels as set forth in the Illuminating Engineering Society of North America Lighting Handbook, Performance and Application, Ninth Edition, 2000.”

added “(B) Treatment of amounts deductible under section 179, 179B, 179C, 179D, or 179E—For purposes of computing the earnings and profits of a corporation, any amount deductible under section 179, 179B, 179C, 179D, or 179E shall be allowed as a deduction ratably over the period of 5 taxable years (beginning with the taxable year for which such amount is deductible under section 179, 179B, 179C, 179D, or 179E, as the case may be).”

removed “(D) liquefied hydrogen,”

added “(2) Applicable amount—For purposes of paragraph (1), the applicable amount is an amount equal to—

added “(A) in the case of a dwelling unit described in paragraph (1) or (2) of subsection (c), $2,000, and

added “(B) in the case of a dwelling unit described in paragraph (3) of subsection (c), $1,000.”

removed “25C. Nonbusiness energy property

removed “(a) Allowance of credit—In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of—

removed “(1) 10 percent of the amount paid or incurred by the taxpayer for qualified energy efficiency improvements installed during such taxable year, and

removed “(2) the amount of the residential energy property expenditures paid or incurred by the taxpayer during such taxable year.

removed “(b) Limitations

removed “(1) Lifetime limitation—The credit allowed under this section with respect to any taxpayer for any taxable year shall not exceed the excess (if any) of $500 over the aggregate credits allowed under this section with respect to such taxpayer for all prior taxable years ending after December 31, 2005.

removed “(2) Windows—In the case of amounts paid or incurred for components described in subsection (c)(3)(B) by any taxpayer for any taxable year, the credit allowed under this section with respect to such amounts for such year shall not exceed the excess (if any) of $200 over the aggregate credits allowed under this section with respect to such amounts for all prior taxable years ending after December 31, 2005.

removed “(3) Limitation on residential energy property expenditures—The amount of the credit allowed under this section by reason of subsection (a)(2) shall not exceed—

removed “(A) $50 for any advanced main air circulating fan,

removed “(B) $150 for any qualified natural gas, propane, or oil furnace or hot water boiler, and

removed “(C) $300 for any item of energy-efficient building property.

removed “(c) Qualified energy efficiency improvements—For purposes of this section—

removed “(1) In general—The term “qualified energy efficiency improvements” means any energy efficient building envelope component, if—

removed “(A) such component is installed in or on a dwelling unit located in the United States and owned and used by the taxpayer as the taxpayer's principal residence (within the meaning of section 121),

removed “(B) the original use of such component commences with the taxpayer, and

removed “(C) such component reasonably can be expected to remain in use for at least 5 years.

removed “(2) Energy efficient building envelope component—The term “energy efficient building envelope component” means a building envelope component which meets—

removed “(A) applicable Energy Star program requirements, in the case of a roof or roof products,

removed “(B) version 6.0 Energy Star program requirements, in the case of an exterior window, a skylight, or an exterior door, and

removed “(C) the prescriptive criteria for such component established by the 2009 International Energy Conservation Code, as such Code (including supplements) is in effect on the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009, in the case of any other component.

removed “(3) Building envelope component—The term “building envelope component” means—

removed “(A) any insulation material or system which is specifically and primarily designed to reduce the heat loss or gain of a dwelling unit when installed in or on such dwelling unit,

removed “(B) exterior windows (including skylights),

removed “(C) exterior doors, and

removed “(D) any metal roof or asphalt roof installed on a dwelling unit, but only if such roof has appropriate pigmented coatings or cooling granules which are specifically and primarily designed to reduce the heat gain of such dwelling unit.

removed “(4) Manufactured homes included—The term “dwelling unit” includes a manufactured home which conforms to Federal Manufactured Home Construction and Safety Standards (part 3280 of title 24, Code of Federal Regulations).

removed “(d) Residential energy property expenditures—For purposes of this section—

removed “(1) In general—The term “residential energy property expenditures” means expenditures made by the taxpayer for qualified energy property which is—

removed “(A) installed on or in connection with a dwelling unit located in the United States and owned and used by the taxpayer as the taxpayer's principal residence (within the meaning of section 121), and

removed “(B) originally placed in service by the taxpayer.

removed “(2) Qualified energy property

removed “(A) In general—The term “qualified energy property” means—

removed “(i) energy-efficient building property,

removed “(ii) a qualified natural gas, propane, or oil furnace or hot water boiler, or

removed “(iii) an advanced main air circulating fan.

removed “(B) Performance and quality standards—Property described under subparagraph (A) shall meet the performance and quality standards, and the certification requirements (if any), which—

removed “(i) have been prescribed by the Secretary by regulations (after consultation with the Secretary of Energy or the Administrator of the Environmental Protection Agency, as appropriate), and

removed “(ii) are in effect at the time of the acquisition of the property, or at the time of the completion of the construction, reconstruction, or erection of the property, as the case may be.

removed “(C) Requirements and standards for air conditioners and heat pumps—The standards and requirements prescribed by the Secretary under subparagraph (B) with respect to the energy efficiency ratio (EER) for central air conditioners and electric heat pumps—

removed “(i) shall require measurements to be based on published data which is tested by manufacturers at 95 degrees Fahrenheit, and

removed “(ii) may be based on the certified data of the Air Conditioning and Refrigeration Institute that are prepared in partnership with the Consortium for Energy Efficiency.

removed “(3) Energy-efficient building property—The term “energy-efficient building property” means—

removed “(A) an electric heat pump water heater which yields a Uniform Energy Factor of at least 2.2 in the standard Department of Energy test procedure,

removed “(B) an electric heat pump which achieves the highest efficiency tier established by the Consortium for Energy Efficiency, as in effect on January 1, 2009,

removed “(C) a central air conditioner which achieves the highest efficiency tier established by the Consortium for Energy Efficiency, as in effect on January 1, 2009, and

removed “(D) a natural gas, propane, or oil water heater which has either a Uniform Energy Factor of at least 0.82 or a thermal efficiency of at least 90 percent.

removed “(4) Qualified natural gas, propane, or oil furnace or hot water boiler—The term “qualified natural gas, propane, or oil furnace or hot water boiler” means a natural gas, propane, or oil furnace or hot water boiler which achieves an annual fuel utilization efficiency rate of not less than 95.

removed “(5) Advanced main air circulating fan—The term “advanced main air circulating fan” means a fan used in a natural gas, propane, or oil furnace and which has an annual electricity use of no more than 2 percent of the total annual energy use of the furnace (as determined in the standard Department of Energy test procedures).

removed “(e) Special rules—For purposes of this section—

removed “(1) Application of rules—Rules similar to the rules under paragraphs (4), (5), (6), (7), and (8) of section 25D(e) shall apply.

removed “(2) Joint ownership of energy items

removed “(A) In general—Any expenditure otherwise qualifying as an expenditure under this section shall not be treated as failing to so qualify merely because such expenditure was made with respect to two or more dwelling units.

removed “(B) Limits applied separately—In the case of any expenditure described in subparagraph (A), the amount of the credit allowable under subsection (a) shall (subject to paragraph (1)) be computed separately with respect to the amount of the expenditure made for each dwelling unit.

removed “(3) Property financed by subsidized energy financing—For purposes of determining the amount of expenditures made by any individual with respect to any property, there shall not be taken into account expenditures which are made from subsidized energy financing (as defined in section 48(a)(4)(C)).

removed “(f) Basis adjustments—For purposes of this subtitle, if a credit is allowed under this section for any expenditure with respect to any property, the increase in the basis of such property which would (but for this subsection) result from such expenditure shall be reduced by the amount of the credit so allowed.

removed “(g) Termination—This section shall not apply with respect to any property placed in service—

removed “(1) after December 31, 2007, and before January 1, 2009, or

removed “(2) after December 31, 2021.”

added “(c) Energy saving requirements—A dwelling unit meets the energy saving requirements of this subsection if such unit is—

added “(1) certified—

added “(A) to have a level of annual heating and cooling energy consumption which is at least 50 percent below the annual level of heating and cooling energy consumption of a comparable dwelling unit—

added “(i) which is constructed in accordance with the standards of chapter 4 of the 2006 International Energy Conservation Code, as such Code (including supplements) is in effect on January 1, 2006, and

added “(ii) for which the heating and cooling equipment efficiencies correspond to the minimum allowed under the regulations established by the Department of Energy pursuant to the National Appliance Energy Conservation Act of 1987 and in effect at the time of completion of construction, and

added “(B) to have building envelope component improvements account for at least 1/5 of such 50 percent,

added “(2) a manufactured home which conforms to Federal Manufactured Home Construction and Safety Standards (part 3280 of title 24, Code of Federal Regulations) and which meets the requirements of paragraph (1), or

added “(3) a manufactured home which conforms to Federal Manufactured Home Construction and Safety Standards (part 3280 of title 24, Code of Federal Regulations) and which—

added “(A) meets the requirements of paragraph (1) applied by substituting “30 percent” for “50 percent” both places it appears therein and by substituting “1/3” for “1/5” in subparagraph (B) thereof, or

added “(B) meets the requirements established by the Administrator of the Environmental Protection Agency under the Energy Star Labeled Homes program.”

added “(2) Base amount—The amount determined under this paragraph is $2,500.

added “(3) Battery capacity—In the case of a vehicle which draws propulsion energy from a battery with not less than 5 kilowatt hours of capacity, the amount determined under this paragraph is $417, plus $417 for each kilowatt hour of capacity in excess of 5 kilowatt hours. The amount determined under this paragraph shall not exceed $5,000.”

removed “(6) the qualified biomass fuel property expenditures,”

removed “(6) Qualified biomass fuel property expenditure

removed “(A) In general—The term “qualified biomass fuel property expenditure” means an expenditure for property—

removed “(i) which uses the burning of biomass fuel to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit, and

removed “(ii) which has a thermal efficiency rating of at least 75 percent (measured by the higher heating value of the fuel).

removed “(B) Biomass fuel—For purposes of this section, the term “biomass fuel” means any plant-derived fuel available on a renewable or recurring basis.”

added “(e) Limitation on number of new qualified plug-In electric drive motor vehicles eligible for credit

added “(1) In general—In the case of a new qualified plug-in electric drive motor vehicle sold during the phaseout period, only the applicable percentage of the credit otherwise allowable under subsection (a) shall be allowed.

added “(2) Phaseout period—For purposes of this subsection, the phaseout period is the period beginning with the second calendar quarter following the calendar quarter which includes the first date on which the number of new qualified plug-in electric drive motor vehicles manufactured by the manufacturer of the vehicle referred to in paragraph (1) sold for use in the United States after December 31, 2009, is at least 200,000.

added “(3) Applicable percentage—For purposes of paragraph (1), the applicable percentage is—

added “(A) 50 percent for the first 2 calendar quarters of the phaseout period,

added “(B) 25 percent for the 3rd and 4th calendar quarters of the phaseout period, and (C)

added “(C) 0 percent for each calendar quarter thereafter.

added “(4) Controlled groups—Rules similar to the rules of section 30B(f)(4) shall apply for purposes of this subsection.”

added “(g) Credit allowed for 2- and 3-wheeled plug-In electric vehicles

added “(1) In general—In the case of a qualified 2- or 3-wheeled plug-in electric vehicle—

added “(A) there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the applicable amount with respect to each such qualified 2- or 3-wheeled plug-in electric vehicle placed in service by the taxpayer during the taxable year, and

added “(B) the amount of the credit allowed under subparagraph (A) shall be treated as a credit allowed under subsection (a).

added “(2) Applicable amount—For purposes of paragraph (1), the applicable amount is an amount equal to the lesser of—

added “(A) 10 percent of the cost of the qualified 2- or 3-wheeled plug-in electric vehicle, or

added “(B) $2,500.

added “(3) Qualified 2- or 3-wheeled plug-in electric vehicle—The term “qualified 2- or 3-wheeled plug-in electric vehicle” means any vehicle which—

added “(A) has 2 or 3 wheels,

added “(B) meets the requirements of subparagraphs (A), (B), (C), (E), and (F) of subsection (d)(1) (determined by substituting “2.5 kilowatt hours” for “4 kilowatt hours” in subparagraph (F)(i)),

added “(C) is manufactured primarily for use on public streets, roads, and highways,

added “(D) is capable of achieving a speed of 45 miles per hour or greater, and

added “(E) is acquired—

added “(i) after December 31, 2011, and before January 1, 2014, or

added “(ii) in the case of a vehicle that has 2 wheels, after December 31, 2014, and before January 1, 2022.”

added “(3) Property used by tax-Exempt entity—In the case of a vehicle the use of which is described in paragraph (3) or (4) of section 50(b) and which is not subject to a lease, 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 service, but only if such person clearly discloses to such person or entity in a document the amount of any credit allowable under subsection (a) with respect to such vehicle (determined without regard to subsection (c)). For purposes of subsection (c), property to which this paragraph applies shall be treated as of a character subject to an allowance for depreciation.”

added “(i) Plug-In conversion credit

added “(1) In general—For purposes of subsection (a), the plug-in conversion credit determined under this subsection with respect to any motor vehicle which is converted to a qualified plug-in electric drive motor vehicle is 10 percent of so much of the cost of the converting such vehicle as does not exceed $40,000.

added “(2) Qualified plug-in electric drive motor vehicle—For purposes of this subsection, the term “qualified plug-in electric drive motor vehicle” means any new qualified plug-in electric drive motor vehicle (as defined in section 30D, determined without regard to whether such vehicle is made by a manufacturer or whether the original use of such vehicle commences with the taxpayer).

added “(3) Credit allowed in addition to other credits—The credit allowed under this subsection shall be allowed with respect to a motor vehicle notwithstanding whether a credit has been allowed with respect to such motor vehicle under this section (other than this subsection) in any preceding taxable year.

added “(4) Termination—This subsection shall not apply to conversions made after December 31, 2011.”

removed “(b) Maximum amount of deduction—The deduction under subsection (a) with respect to any building for any taxable year shall not exceed the excess (if any) of—

removed “(1) the product of—

removed “(A) $1.80, and

removed “(B) the square footage of the building, over

removed “(2) the aggregate amount of the deductions under subsection (a) with respect to the building for all prior taxable years.”

removed “(2) Reference standard 90.1—The term “Reference Standard 90.1” means, with respect to any property, the most recent Standard 90.1 published by the American Society of Heating, Refrigerating, and Air Conditioning Engineers and the Illuminating Engineering Society of North America which has been affirmed by the Secretary, after consultation with the Secretary of Energy, for purposes of this section not later than the date that is 2 years before the date that construction of such property begins.”

removed “(1) Partial allowance

removed “(A) In general—Except as provided in subsection (f), if—

removed “(i) the requirement of subsection (c)(1)(D) is not met, but

removed “(ii) there is a certification in accordance with paragraph (6) that any system referred to in subsection (c)(1)(C) satisfies the energy-savings targets established by the Secretary under subparagraph (B) with respect to such system,

removed “(B) Regulations—The Secretary, after consultation with the Secretary of Energy, shall establish a target for each system described in subsection (c)(1)(C) such that, if such targets were met for all such systems, the building would meet the requirements of subsection (c)(1)(D).”

removed “(4) Allocation of deduction for public property—In the case of energy efficient commercial building property installed on or in property owned by a Federal, State, or local government or a political subdivision thereof, the Secretary shall promulgate a regulation to allow the allocation of the deduction to the person primarily responsible for designing the property in lieu of the owner of such property. Such person shall be treated as the taxpayer for purposes of this section.”

removed “(f) Interim rules for lighting systems—Until such time as the Secretary issues final regulations under subsection (d)(1)(B) with respect to property which is part of a lighting system—

removed “(1) In general—The lighting system target under subsection (d)(1)(A)(ii) shall be a reduction in lighting power density of 25 percent (50 percent in the case of a warehouse) of the minimum requirements in Table 9.5.1 or Table 9.6.1 (not including additional interior lighting power allowances) of Standard 90.1–2007.

removed “(2) Reduction in deduction if reduction less than 40 percent

removed “(A) In general—If, with respect to the lighting system of any building other than a warehouse, the reduction in lighting power density of the lighting system is not at least 40 percent, only the applicable percentage of the amount of deduction otherwise allowable under this section with respect to such property shall be allowed.

removed “(B) Applicable percentage—For purposes of subparagraph (A), the applicable percentage is the number of percentage points (not greater than 100) equal to the sum of—

removed “(i) 50, and

removed “(ii) the amount which bears the same ratio to 50 as the excess of the reduction of lighting power density of the lighting system over 25 percentage points bears to 15.

removed “(C) Exceptions—This subsection shall not apply to any system—

removed “(i) the controls and circuiting of which do not comply fully with the mandatory and prescriptive requirements of Standard 90.1–2007 and which do not include provision for bilevel switching in all occupancies except hotel and motel guest rooms, store rooms, restrooms, and public lobbies, or

removed “(ii) which does not meet the minimum requirements for calculated lighting levels as set forth in the Illuminating Engineering Society of North America Lighting Handbook, Performance and Application, Ninth Edition, 2000.”

removed “(B) Treatment of amounts deductible under section 179, 179B, 179C, 179D, or 179E—For purposes of computing the earnings and profits of a corporation, any amount deductible under section 179, 179B, 179C, 179D, or 179E shall be allowed as a deduction ratably over the period of 5 taxable years (beginning with the taxable year for which such amount is deductible under section 179, 179B, 179C, 179D, or 179E, as the case may be).”

removed “(2) Applicable amount—For purposes of paragraph (1), the applicable amount is an amount equal to—

removed “(A) in the case of a dwelling unit described in paragraph (1) or (2) of subsection (c), $2,000, and

removed “(B) in the case of a dwelling unit described in paragraph (3) of subsection (c), $1,000.”

removed “(c) Energy saving requirements—A dwelling unit meets the energy saving requirements of this subsection if such unit is—

removed “(1) certified—

removed “(A) to have a level of annual heating and cooling energy consumption which is at least 50 percent below the annual level of heating and cooling energy consumption of a comparable dwelling unit—

removed “(i) which is constructed in accordance with the standards of chapter 4 of the 2006 International Energy Conservation Code, as such Code (including supplements) is in effect on January 1, 2006, and

removed “(ii) for which the heating and cooling equipment efficiencies correspond to the minimum allowed under the regulations established by the Department of Energy pursuant to the National Appliance Energy Conservation Act of 1987 and in effect at the time of completion of construction, and

removed “(B) to have building envelope component improvements account for at least 1/5 of such 50 percent,

removed “(2) a manufactured home which conforms to Federal Manufactured Home Construction and Safety Standards (part 3280 of title 24, Code of Federal Regulations) and which meets the requirements of paragraph (1), or

removed “(3) a manufactured home which conforms to Federal Manufactured Home Construction and Safety Standards (part 3280 of title 24, Code of Federal Regulations) and which—

removed “(A) meets the requirements of paragraph (1) applied by substituting “30 percent” for “50 percent” both places it appears therein and by substituting “1/3” for “1/5” in subparagraph (B) thereof, or

removed “(B) meets the requirements established by the Administrator of the Environmental Protection Agency under the Energy Star Labeled Homes program.”

removed “(2) Base amount—The amount determined under this paragraph is $2,500.

removed “(3) Battery capacity—In the case of a vehicle which draws propulsion energy from a battery with not less than 5 kilowatt hours of capacity, the amount determined under this paragraph is $417, plus $417 for each kilowatt hour of capacity in excess of 5 kilowatt hours. The amount determined under this paragraph shall not exceed $5,000.”

added “(c) Qualified alternative fuel vehicle refueling property—For purposes of this section, the term “qualified alternative fuel vehicle refueling property” has the same meaning as the term “qualified clean-fuel vehicle refueling property” would have under section 179A if—

added “(1) paragraph (1) of section 179A(d) did not apply to property installed on property which is used as the principal residence (within the meaning of section 121) of the taxpayer, and

added “(2) only the following were treated as clean-burning fuels for purposes of section 179A(d):

added “(A) Any fuel at least 85 percent of the volume of which consists of one or more of the following: ethanol, natural gas, compressed natural gas, liquified natural gas, liquefied petroleum gas, or hydrogen.

added “(B) Any mixture—

added “(i) which consists of two or more of the following: biodiesel (as defined in section 40A(d)(1)), diesel fuel (as defined in section 4083(a)(3)), or kerosene, and

added “(ii) at least 20 percent of the volume of which consists of biodiesel (as so defined) determined without regard to any kerosene in such mixture.

added “(C) Electricity.”

removed “(e) Limitation on number of new qualified plug-In electric drive motor vehicles eligible for credit

removed “(1) In general—In the case of a new qualified plug-in electric drive motor vehicle sold during the phaseout period, only the applicable percentage of the credit otherwise allowable under subsection (a) shall be allowed.

removed “(2) Phaseout period—For purposes of this subsection, the phaseout period is the period beginning with the second calendar quarter following the calendar quarter which includes the first date on which the number of new qualified plug-in electric drive motor vehicles manufactured by the manufacturer of the vehicle referred to in paragraph (1) sold for use in the United States after December 31, 2009, is at least 200,000.

removed “(3) Applicable percentage—For purposes of paragraph (1), the applicable percentage is—

removed “(A) 50 percent for the first 2 calendar quarters of the phaseout period,

removed “(B) 25 percent for the 3rd and 4th calendar quarters of the phaseout period, and (C)

removed “(C) 0 percent for each calendar quarter thereafter.

removed “(4) Controlled groups—Rules similar to the rules of section 30B(f)(4) shall apply for purposes of this subsection.”

removed “(g) Credit allowed for 2- and 3-wheeled plug-In electric vehicles

removed “(1) In general—In the case of a qualified 2- or 3-wheeled plug-in electric vehicle—

removed “(A) there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the applicable amount with respect to each such qualified 2- or 3-wheeled plug-in electric vehicle placed in service by the taxpayer during the taxable year, and

removed “(B) the amount of the credit allowed under subparagraph (A) shall be treated as a credit allowed under subsection (a).

removed “(2) Applicable amount—For purposes of paragraph (1), the applicable amount is an amount equal to the lesser of—

removed “(A) 10 percent of the cost of the qualified 2- or 3-wheeled plug-in electric vehicle, or

removed “(B) $2,500.

removed “(3) Qualified 2- or 3-wheeled plug-in electric vehicle—The term “qualified 2- or 3-wheeled plug-in electric vehicle” means any vehicle which—

removed “(A) has 2 or 3 wheels,

removed “(B) meets the requirements of subparagraphs (A), (B), (C), (E), and (F) of subsection (d)(1) (determined by substituting “2.5 kilowatt hours” for “4 kilowatt hours” in subparagraph (F)(i)),

removed “(C) is manufactured primarily for use on public streets, roads, and highways,

removed “(D) is capable of achieving a speed of 45 miles per hour or greater, and

removed “(E) is acquired—

removed “(i) after December 31, 2011, and before January 1, 2014, or

removed “(ii) in the case of a vehicle that has 2 wheels, after December 31, 2014, and before January 1, 2022.”

removed “(3) Property used by tax-Exempt entity—In the case of a vehicle the use of which is described in paragraph (3) or (4) of section 50(b) and which is not subject to a lease, 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 service, but only if such person clearly discloses to such person or entity in a document the amount of any credit allowable under subsection (a) with respect to such vehicle (determined without regard to subsection (c)). For purposes of subsection (c), property to which this paragraph applies shall be treated as of a character subject to an allowance for depreciation.”

removed “(i) Plug-In conversion credit

removed “(1) In general—For purposes of subsection (a), the plug-in conversion credit determined under this subsection with respect to any motor vehicle which is converted to a qualified plug-in electric drive motor vehicle is 10 percent of so much of the cost of the converting such vehicle as does not exceed $40,000.

removed “(2) Qualified plug-in electric drive motor vehicle—For purposes of this subsection, the term “qualified plug-in electric drive motor vehicle” means any new qualified plug-in electric drive motor vehicle (as defined in section 30D, determined without regard to whether such vehicle is made by a manufacturer or whether the original use of such vehicle commences with the taxpayer).

removed “(3) Credit allowed in addition to other credits—The credit allowed under this subsection shall be allowed with respect to a motor vehicle notwithstanding whether a credit has been allowed with respect to such motor vehicle under this section (other than this subsection) in any preceding taxable year.

removed “(4) Termination—This subsection shall not apply to conversions made after December 31, 2011.”

added “(V) property designed to refine or blend renewable fuels or to produce energy conservation technologies (including energy-conserving lighting technologies and smart grid technologies),”

added “(VI) new qualified plug-in electric drive motor vehicles (as defined by section 30D) or components which are designed specifically for use with such vehicles, including electric motors, generators, and power control units, or”

added “(ii) any portion of the qualified investment of which is certified by the Secretary under subsection (d) as eligible for a credit under this section.”

added “(A) which is necessary for the production of property described in paragraph (1)(A)(i),”

removed “(c) Qualified alternative fuel vehicle refueling property—For purposes of this section, the term “qualified alternative fuel vehicle refueling property” has the same meaning as the term “qualified clean-fuel vehicle refueling property” would have under section 179A if—

removed “(1) paragraph (1) of section 179A(d) did not apply to property installed on property which is used as the principal residence (within the meaning of section 121) of the taxpayer, and

removed “(2) only the following were treated as clean-burning fuels for purposes of section 179A(d):

removed “(A) Any fuel at least 85 percent of the volume of which consists of one or more of the following: ethanol, natural gas, compressed natural gas, liquified natural gas, liquefied petroleum gas, or hydrogen.

removed “(B) Any mixture—

removed “(i) which consists of two or more of the following: biodiesel (as defined in section 40A(d)(1)), diesel fuel (as defined in section 4083(a)(3)), or kerosene, and

removed “(ii) at least 20 percent of the volume of which consists of biodiesel (as so defined) determined without regard to any kerosene in such mixture.

removed “(C) Electricity.”

removed “(V) property designed to refine or blend renewable fuels or to produce energy conservation technologies (including energy-conserving lighting technologies and smart grid technologies),”

removed “(VI) new qualified plug-in electric drive motor vehicles (as defined by section 30D) or components which are designed specifically for use with such vehicles, including electric motors, generators, and power control units, or”

removed “(ii) any portion of the qualified investment of which is certified by the Secretary under subsection (d) as eligible for a credit under this section.”

removed “(A) which is necessary for the production of property described in paragraph (1)(A)(i),”

added In the case of a taxpayer who entered into a binding written contract or made other concrete investment action after August 26, 2022, and before April 19, 2023, to engage in an activity for which a credit would otherwise be available if not for the application of sections 229 and 244 of this Act, such sections shall not apply.

changed The amendments made by this title shall take effect on October 1, 2025.2024.

Section 6(o)(6) of the Food and Nutrition Act of 2008 (7 U.S.C. 2015(6)(o)(6)) is amended by adding at end the following:

changed “(I) Rule of construction for exemption adjustment—During fiscal year 2025 2024 and each subsequent fiscal year, nothing in this paragraph shall be interpreted to allow a State agency to accumulate unused exemptions to be provided beyond the subsequent fiscal year.”