--- kind: "diff" citation: "H.R. 2811" bill: "118-hr-2811" heading: "Limit, Save, Grow Act of 2023" from: "ih" from_label: "Introduced in House" to: "eh" to_label: "Engrossed in House" sections_amended: 21 sections_added: 2 sections_removed: 2 url: "https://uscodex.org/bills/118/hr/2811/changes/eh" --- # H.R. 2811 — what changed H.R. 2811, Limit, Save, Grow Act of 2023 — 21 sections amended, 2 added, and 2 removed between Introduced in House and Engrossed in House. Edits are marked `struck` and `inserted`. ## Sec. 202 Rescission of Inflation Reduction Act funds — added - The unobligated balances of amounts appropriated or otherwise made available by each of the following provisions of Public Law 117–169 (commonly referred to as the “Inflation Reduction Act”) are hereby permanently rescinded: - (1) Section 50131. - (2) Section 50144. - (3) Section 50224. - (4) Section 60114. - (5) Section 60501. ## Sec. 225 Zero-emission nuclear power production credit repealed - (a) In general— Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 45U (and by striking the item relating to such section in the table of sections for such subpart). - (a) Carbon oxide capture requirements— - (1) In general— Section 45Q(d) is amended to read as follows: - “(d) Qualified facility—For purposes of this section, the term “qualified facility” means any industrial facility or direct air capture facility— - “(1) the construction of which begins before January 1, 2026, and— - “(A) construction of carbon capture equipment begins before such date, or - “(B) the original planning and design for such facility includes installation of carbon capture equipment, and - “(2) which captures— - “(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), - “(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 - “(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.” - (2) Definitions removed— - (A) In general— Section 45Q(e) is amended by striking paragraphs (1) and (2) and redesignating paragraphs (3) through (5) as paragraphs (1) through (3), respectively. - (B) Conforming amendment— Section 142(o)(1)(B) is amended by striking “section 45Q(e)(3)” and inserting “section 45Q(e)(1)”. - (b) Modified applicable dollar amount—Conforming amendments— Section 45Q(b)(1) 38(b) is amended to read as follows:amended— - (1) in paragraph (32), by adding “plus” at the end, - (2) in paragraph (33), by striking the comma at the end and inserting a period, and - (3) by striking paragraph (34). - “(1) Applicable dollar amount - “(B) In general—The applicable dollar amount shall be an amount equal to— - “(i) for any taxable year beginning in a calendar year after 2016 and before 2027— - “(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 - “(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 - “(ii) for any taxable year beginning in a calendar year after 2026— - “(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 - “(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”. - “(C) Rounding—The applicable dollar amount determined under subparagraph (A) shall be rounded to the nearest cent.” - (c) Wage and apprenticeship requirements—Effective date— Section 45Q is amended The amendments made by striking subsection (h) this section shall apply to electricity produced and by redesignating subsection (i) as subsection (h).sold after December 31, 2023, in taxable years beginning after such date. - (d) Credit reduced for tax-Exempt bonds— Section 45Q(f) is amended by striking paragraph (8). - (e) Application of section for certain carbon capture equipment— Section 45Q(g) is amended by striking “the earlier of January 1, 2023, and”. - (f) Election— Section 45Q(f) is amended by striking paragraph (9). - (g) No regulations for baseline carbon oxide production— Subsection (h) of section 45Q, as redesignated by subsection (c), is amended— - (1) in paragraph (1), by adding “and” at the end, - (2) in paragraph (2), by striking “, and” and inserting a period, and - (3) by striking paragraph (3). - (h) Effective dates— - (1) In general— Except as provided in paragraphs (2), (3), and (4), the amendments made by this section shall apply to facilities or equipment placed in service after December 31, 2022. - (2) Carbon oxide capture requirements— The amendments made by subsection (a) shall apply to facilities or equipment the construction of which begins after August 16, 2022. - (3) Application of section for certain carbon capture equipment— The amendments made by subsection (e) shall take effect on August 16, 2022. - (4) Election— The amendment made by subsection (f) shall apply to carbon oxide captured and disposed of after December 31, 2021. ## Sec. 226 Repeal of sustainable aviation fuel credit - (a) In general— Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 45U 40B (and by striking the item relating to such section in the table of sections for such subpart). - (b) Conforming amendments—amendment— Section 38(b) is amended—amended by striking paragraph (35). - (c) Coordination with biodiesel removed— - (1) In general— Section 40A(d)(1) is amended by striking “or 40B”. - (2) Conforming amendment— Section 40A(f) is amended by adding at the end the following: - “(4) Certain aviation fuel - “(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. - “(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.” - (3) Sustainable aviation fuel credit provisions removed— Section 6426 is amended by striking subsection (k). - (d) Conforming amendments— - (1) Section 6426 is amended— - (A) in subsection (a)(1), by striking “(e), and (k)” and inserting “and (e)”, and - (B) in subsection (h), by striking “under section 40, 40A, or 40B” and inserting “under section 40 or 40A”. - (2) Section 6427(e) is amended— - (A) in the heading, by striking “alternative fuel, or sustainable aviation fuel” and inserting “or alternative fuel”, - (B) in paragraph (1), by striking “or the sustainable aviation fuel mixture credit”, and - (C) in paragraph (6)— - (i) in subparagraph (C), by adding “and” at the end, - (ii) in subparagraph (D), by striking “, and” and inserting a period, and - (iii) by striking subparagraph (E). - (3) Section 4101(a)(1) is amended by striking “every person producing or importing sustainable aviation fuel (as defined in section 40B),”. - (4) Section 87 is amended— - (A) in paragraph (1), by adding “and” at the end, - (B) in paragraph (2), by striking “, and” and inserting a period, and - (C) by striking paragraph (3). - (e) Effective date— The amendments made by this section shall apply to fuel sold or used after December 31, 2022. - (1) in paragraph (32), by adding “plus” at the end, - (2) in paragraph (33), by striking the comma at the end and inserting a period, and - (3) by striking paragraph (34). - (c) Effective date— The amendments made by this section shall apply to electricity produced and sold after December 31, 2023, in taxable years beginning after such date. ## Sec. 227 Clean hydrogen repeals - (a) Credit for production of clean hydrogen repealed— - (1) In general— Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 45V (and by striking the item relating to such section in the table of sections for such subpart). - (2) Conforming amendment— Section 38(b) is amended by striking paragraph (36). - (3) Effective date— The amendments made by this section shall apply to hydrogen produced after December 31, 2022. - (a) Biodiesel and renewable diesel credit— Section 40A(g) is amended by striking “December 31, 2024” and inserting “December 31, 2022”. - (b) Biodiesel mixture credit—Credit for electricity produced from renewable resources allowed if electricity is used To produce clean hydrogen— - (1) In general— Section 6426(c)(6) 45(e) is amended by striking “December 31, 2024” and inserting “December 31, 2022”.paragraph (13). - (2) Fuels not used for taxable purposes—Effective date— Section 6427(e)(6)(B) is amended The amendments made by striking “December 31, 2024” and inserting “December this subsection shall apply to electricity produced after December 31, 2022”.2022. - (c) Election To Treat Clean Hydrogen Production Facilities as Energy Property— - (1) In general— Section 48(a) is amended by striking paragraph (15) and by redesignating paragraph (16) as paragraph (15). - (2) Effective date— The amendments made by this subsection shall apply to property placed in service after December 31, 2022. - (d) Reinstatement of alternative fuel credit for liquefied hydrogen— - (1) In general— Section 6426(d)(2) is amended by redesignating subparagraphs (D), (E), and (F) as subparagraphs (E), (F), and (G), respectively, and by inserting after subparagraph (C) the following: - “(D) liquefied hydrogen,” - (2) Conforming amendment— Section 6426(e)(2) is amended by striking “(E)” and inserting “(F)”. - (3) Effective date— The amendments made by this subsection shall apply to fuel sold or used after December 31, 2022. - (c) Alternative fuel credit— Section 6426(d)(5) is amended by striking “December 31, 2024” and inserting “December 31, 2021”. - (d) Alternative fuel mixture credit— Section 6426(e)(3) is amended by striking “December 31, 2024” and inserting “December 31, 2021”. - (e) Payments for alternative fuels— Section 6427(e)(6)(C) is amended by striking “December 31, 2024” and inserting “December 31, 2021”. - (f) Repeal of special rule— Subsection (g) of section 13201 of Public Law 117–169 is repealed. - (g) Effective date— The amendments made by this section shall apply to fuel sold or used after December 31, 2021. ## Sec. 228 Nonbusiness energy property credit - (a) In general— Section 40(b)(6)(j)(i) 25C is amended by striking “2025” and inserting “2022”.to read as follows: - “25C. Nonbusiness energy property - “(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— - “(1) 10 percent of the amount paid or incurred by the taxpayer for qualified energy efficiency improvements installed during such taxable year, and - “(2) the amount of the residential energy property expenditures paid or incurred by the taxpayer during such taxable year. - “(b) Limitations - “(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. - “(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. - “(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— - “(A) $50 for any advanced main air circulating fan, - “(B) $150 for any qualified natural gas, propane, or oil furnace or hot water boiler, and - “(C) $300 for any item of energy-efficient building property. - “(c) Qualified energy efficiency improvements—For purposes of this section— - “(1) In general—The term “qualified energy efficiency improvements” means any energy efficient building envelope component, if— - “(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), - “(B) the original use of such component commences with the taxpayer, and - “(C) such component reasonably can be expected to remain in use for at least 5 years. - “(2) Energy efficient building envelope component—The term “energy efficient building envelope component” means a building envelope component which meets— - “(A) applicable Energy Star program requirements, in the case of a roof or roof products, - “(B) version 6.0 Energy Star program requirements, in the case of an exterior window, a skylight, or an exterior door, and - “(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. - “(3) Building envelope component—The term “building envelope component” means— - “(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, - “(B) exterior windows (including skylights), - “(C) exterior doors, and - “(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. - “(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). - “(d) Residential energy property expenditures—For purposes of this section— - “(1) In general—The term “residential energy property expenditures” means expenditures made by the taxpayer for qualified energy property which is— - “(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 - “(B) originally placed in service by the taxpayer. - “(2) Qualified energy property - “(A) In general—The term “qualified energy property” means— - “(i) energy-efficient building property, - “(ii) a qualified natural gas, propane, or oil furnace or hot water boiler, or - “(iii) an advanced main air circulating fan. - “(B) Performance and quality standards—Property described under subparagraph (A) shall meet the performance and quality standards, and the certification requirements (if any), which— - “(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 - “(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. - “(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— - “(i) shall require measurements to be based on published data which is tested by manufacturers at 95 degrees Fahrenheit, and - “(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. - “(3) Energy-efficient building property—The term “energy-efficient building property” means— - “(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, - “(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, - “(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 - “(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. - “(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. - “(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). - “(e) Special rules—For purposes of this section— - “(1) Application of rules—Rules similar to the rules under paragraphs (4), (5), (6), (7), and (8) of section 25D(e) shall apply. - “(2) Joint ownership of energy items - “(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. - “(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. - “(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)). - “(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. - “(g) Termination—This section shall not apply with respect to any property placed in service— - “(1) after December 31, 2007, and before January 1, 2009, or - “(2) after December 31, 2021.” - (b) Conforming amendments— - (1) Section 1016(a)(33) is amended by striking “section 25C(g)” and inserting “25C(f)”. - (2) Section 6213(g)(2) is amended— - (A) by adding “and” at the end of subparagraph (P), - (B) by striking the comma at the end of subparagraph (Q) and inserting a period, and - (C) by striking subparagraphs (R) and (S). - (c) Effective date— The amendments made by this section shall apply to property placed in service after December 31, 2021. - (b) Effective date— The amendment made by subsection (a) shall apply to qualified second generation biofuel production after December 31, 2021. ## Sec. 229 Residential clean energy credit reverted to credit for residential energy efficient property - (a) Extension reversed— - (1) In general— Section 25D(h) is amended by striking “December 31, 2034” and inserting “December 31, 2023”. - (2) Phaseout restored— Section 25D(g) is amended— - (a) In general— Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 40B (and by striking the item relating to such section in the table of sections for such subpart). - (b) Conforming amendment— Section 38(b) is amended by striking paragraph (35). - (c) Coordination with biodiesel removed— - (1) In general— Section 40A(d)(1) is amended by striking “or 40B”. - (2) Conforming amendment— Section 40A(f) is amended by adding at the end the following: - “(4) Certain aviation fuel - “(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. - “(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.” - (3) Sustainable aviation fuel credit provisions removed— Section 6426 is amended by striking subsection (k). - (d) Conforming amendments— - (1) Section 6426 is amended— - (A) in subsection (a)(1), by striking “(e), and (k)” and inserting “and (e)”, and - (B) in subsection (h), by striking “under section 40, 40A, or 40B” and inserting “under section 40 or 40A”. - (2) Section 6427(e) is amended— - (A) in the heading, by striking “alternative fuel, or sustainable aviation fuel” and inserting “or alternative fuel”, - (B) in paragraph (1), by striking “or the sustainable aviation fuel mixture credit”, and - (C) in paragraph (6)— - (i) in subparagraph (C), by adding “and” at the end, - (ii) in subparagraph (D), by striking “, and” and inserting a period, and - (iii) by striking subparagraph (E). - (3) Section 4101(a)(1) is amended by striking “every person producing or importing sustainable aviation fuel (as defined in section 40B),”. - (4) Section 87 is amended— - (A) [was (5)(5)(2)] in paragraph (1), by adding “and” at the end, - (B) in paragraph (2), by striking “before January 1, 2022, 26 percent,” and inserting “before January 1, 2023, 26 percent, and”, - (C) in paragraph (3), by striking “December 31, 2021, and before January 1, 2033, 30 percent,” and inserting “December 31, 2022, and before January 1, 2024, 22 percent.”, and - (D) by striking paragraphs (4) and (5). - (b) Residential Clean Energy Credit for Battery Storage Technology removed; biomass expenditure provisions restored— - (1) In general— Paragraph (6) of section 25D(a) is amended to read as follows: - “(6) the qualified biomass fuel property expenditures,” - (2) Definition of qualified biomass fuel property expenditures restored— Paragraph (6) of section 25D(d) is amended to read as follows: - “(6) Qualified biomass fuel property expenditure - “(A) In general—The term “qualified biomass fuel property expenditure” means an expenditure for property— - “(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 - “(ii) which has a thermal efficiency rating of at least 75 percent (measured by the higher heating value of the fuel). - “(B) Biomass fuel—For purposes of this section, the term “biomass fuel” means any plant-derived fuel available on a renewable or recurring basis.” - (c) Conforming amendments— - (1) Section 25D(d)(3) is amended by striking “, without regard to subparagraph (D) thereof”. - (2) The heading for section 25D is amended by striking “clean energy credit” and inserting “energy efficient property”. - (3) The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 25D and inserting the following: - (d) Effective dates— - (1) In general— Except as provided in paragraph (2), the amendments made by this section shall apply to expenditures made after December 31, 2021. - (2) Residential Clean Energy Credit for Battery Storage Technology removed; biomass expenditure provisions restored— The amendments made by subsection (b) shall apply to expenditures made after December 31, 2022. - (B) in paragraph (2), by striking “, and” and inserting a period, and - (C) by striking paragraph (3). - (e) Effective date— The amendments made by this section shall apply to fuel sold or used after December 31, 2022. ## Sec. 230 Energy efficient commercial buildings deduction - (a) Credit for production of clean hydrogen repealed—In general— - (1) In general—Maximum amount of deduction rules restored— Subpart D of part IV of subchapter A of chapter 1 Section 179D(b) is amended by striking section 45V (and by striking the item relating to such section in the table of sections for such subpart).read as follows: - “(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— - “(1) the product of— - “(A) $1.80, and - “(B) the square footage of the building, over - “(2) the aggregate amount of the deductions under subsection (a) with respect to the building for all prior taxable years.” - (2) Conforming amendment—Modification of efficiency standard— Section 38(b) 179D(c)(1)(D) is amended by striking paragraph (36).“25 percent” and inserting “50 percent”. - (3) Effective date—Reference standard— The amendments made by this section shall apply Section 179D(c)(2) is amended to hydrogen produced after December 31, 2022.read as follows: - “(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.” - (4) Partial allowance— - (A) In general— Section 179D(d) is amended— - (i) by redesignating paragraphs (1) through (5) as paragraphs (2) through (6), respectively, and - (ii) by inserting before paragraph (2) the following: - “(1) Partial allowance - “(A) In general—Except as provided in subsection (f), if— - “(i) the requirement of subsection (c)(1)(D) is not met, but - “(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, - “(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).” - (B) Conforming amendments— - (i) Section 179D(c)(1)(D) is amended— - (I) by striking “subsection (d)(5)” and inserting “subsection (d)(6)”, and - (II) by striking “subsection (d)(1)” and inserting “subsection (d)(2)”. - (ii) Paragraph (3)(A) of section 179D(d), as redesignated by subparagraph (A), is amended by striking “paragraph (1)” and inserting “paragraph (2)”. - (iii) Paragraph (5) of section 179D(d), as redesignated by subparagraph (A), is amended by striking “paragraph (2)(B)(iii)” and inserting “paragraph (3)(B)(iii)”. - (iv) Section 179D(h)(2) is amended by inserting “or (d)(1)(A)” after “subsection (c)(1)(D)”. - (5) Allocation of deduction for public property— Paragraph (4) of section 179D(d), as redesignated by paragraph (4)(A), is amended to read as follows: - “(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.” - (6) Alternative deduction for energy efficient building retrofit property repealed— - (A) In general— Section 179D is amended by striking subsection (f). - (B) Restoration of text relating to interim rules for lighting systems— Section 179D is amended by inserting after subsection (e) the following: - “(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— - “(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. - “(2) Reduction in deduction if reduction less than 40 percent - “(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. - “(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— - “(i) 50, and - “(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. - “(C) Exceptions—This subsection shall not apply to any system— - “(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 - “(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.” - (7) Inflation adjustment— Section 179D(g) is amended— - (A) by inserting “or subsection (d)(1)(A)” after “subsection (b)”, - (B) by striking “2022” and inserting “2020”, and - (C) by striking “calendar year 2021” and inserting “calendar year 2019”. - (b) Special rule for real estate investment trusts removed— Section 312(k)(3)(B) is amended to read as follows: - “(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).” - (c) Conforming amendment— Paragraph (2) of section 179D(d), as redesignated by subsection (a)(4)(A), is amended by striking “not later than the date that is 4 years before the date such property is placed in service” and inserting “not later than the date that is 2 years before the date that construction of such property begins”. - (d) Effective dates— The amendments made by this section shall apply to taxable years beginning after December 31, 2022. - (b) Credit for electricity produced from renewable resources allowed if electricity is used To produce clean hydrogen— - (1) In general— Section 45(e) is amended by striking paragraph (13). - (2) Effective date— The amendments made by this subsection shall apply to electricity produced after December 31, 2022. - (c) Election To Treat Clean Hydrogen Production Facilities as Energy Property— - (1) In general— Section 48(a) is amended by striking paragraph (15) and by redesignating paragraph (16) as paragraph (15). - (2) Effective date— The amendments made by this subsection shall apply to property placed in service after December 31, 2022. - (d) Reinstatement of alternative fuel credit for liquefied hydrogen— - (1) In general— Section 6426(d)(2) is amended by redesignating subparagraphs (D), (E), and (F) as subparagraphs (E), (F), and (G), respectively, and by inserting after subparagraph (C) the following: - “(D) liquefied hydrogen,” - (2) Conforming amendment— Section 6426(e)(2) is amended by striking “(E)” and inserting “(F)”. - (3) Effective date— The amendments made by this subsection shall apply to fuel sold or used after December 31, 2022. ## Sec. 231 Modifications to new energy efficient home credit - (a) In general—Extension reversed— Section 25C 45L(h) is amended to read as follows:by striking “December 31, 2032” and inserting “December 31, 2021”. - (b) Decrease in credit amounts— Paragraph (2) of section 45L(a) is amended to read as follows: - “(2) Applicable amount—For purposes of paragraph (1), the applicable amount is an amount equal to— - “(A) in the case of a dwelling unit described in paragraph (1) or (2) of subsection (c), $2,000, and - “(B) in the case of a dwelling unit described in paragraph (3) of subsection (c), $1,000.” - “25C. Nonbusiness energy property - “(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— - “(1) 10 percent of the amount paid or incurred by the taxpayer for qualified energy efficiency improvements installed during such taxable year, and - “(2) the amount of the residential energy property expenditures paid or incurred by the taxpayer during such taxable year. - “(b) Limitations - “(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. - “(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. - “(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— - “(A) $50 for any advanced main air circulating fan, - “(B) $150 for any qualified natural gas, propane, or oil furnace or hot water boiler, and - “(C) $300 for any item of energy-efficient building property. - “(c) Qualified energy efficiency improvements—For purposes of this section— - “(1) In general—The term “qualified energy efficiency improvements” means any energy efficient building envelope component, if— - “(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), - “(B) the original use of such component commences with the taxpayer, and - “(C) such component reasonably can be expected to remain in use for at least 5 years. - “(2) Energy efficient building envelope component—The term “energy efficient building envelope component” means a building envelope component which meets— - “(A) applicable Energy Star program requirements, in the case of a roof or roof products, - “(B) version 6.0 Energy Star program requirements, in the case of an exterior window, a skylight, or an exterior door, and - “(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. - “(3) Building envelope component—The term “building envelope component” means— - “(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, - “(B) exterior windows (including skylights), - “(C) exterior doors, and - “(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. - “(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). - “(d) Residential energy property expenditures—For purposes of this section— - “(1) In general—The term “residential energy property expenditures” means expenditures made by the taxpayer for qualified energy property which is— - “(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 - “(B) originally placed in service by the taxpayer. - “(2) Qualified energy property - “(A) In general—The term “qualified energy property” means— - “(i) energy-efficient building property, - “(ii) a qualified natural gas, propane, or oil furnace or hot water boiler, or - “(iii) an advanced main air circulating fan. - “(B) Performance and quality standards—Property described under subparagraph (A) shall meet the performance and quality standards, and the certification requirements (if any), which— - “(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 - “(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. - “(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— - “(i) shall require measurements to be based on published data which is tested by manufacturers at 95 degrees Fahrenheit, and - “(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. - “(3) Energy-efficient building property—The term “energy-efficient building property” means— - “(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, - “(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, - “(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 - “(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. - “(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. - “(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). - “(e) Special rules—For purposes of this section— - “(1) Application of rules—Rules similar to the rules under paragraphs (4), (5), (6), (7), and (8) of section 25D(e) shall apply. - “(2) Joint ownership of energy items - “(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. - “(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. - “(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)). - “(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. - “(g) Termination—This section shall not apply with respect to any property placed in service— - “(1) after December 31, 2007, and before January 1, 2009, or - “(2) after December 31, 2021.” - (b) Conforming amendments— - (1) Section 1016(a)(33) is amended by striking “section 25C(g)” and inserting “25C(f)”. - (2) Section 6213(g)(2) is amended— - (A) by adding “and” at the end of subparagraph (P), - (B) by striking the comma at the end of subparagraph (Q) and inserting a period, and - (C) by striking subparagraphs (R) and (S). - (c) Effective date—Reversal of modification of energy saving requirements— The amendments made by this section shall apply Section 45L(c) is amended to property placed in service after December 31, 2021.read as follows: - “(c) Energy saving requirements—A dwelling unit meets the energy saving requirements of this subsection if such unit is— - “(1) certified— - “(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— - “(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 - “(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 - “(B) to have building envelope component improvements account for at least 1/5 of such 50 percent, - “(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 - “(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— - “(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 - “(B) meets the requirements established by the Administrator of the Environmental Protection Agency under the Energy Star Labeled Homes program.” - (d) Prevailing wage requirement removed— Section 45L is amended by striking subsection (g) and redesignating subsection (h) as subsection (g). - (e) Basis adjustment— Section 45L(e) is amended by striking “This subsection shall not apply for purposes of determining the adjusted basis of any building under section 42”. - (f) Effective dates— The amendments made by this section shall apply to dwelling units acquired after December 31, 2021. ## Sec. 232 Clean vehicle credit - (a) Per vehicle dollar limitation— Section 30D(b) is amended by striking paragraphs (2) and (3) and inserting the following: - “(2) Base amount—The amount determined under this paragraph is $2,500. - “(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.” - (b) Final assembly— Section 30D(d) is amended— - (a) Extension reversed— - (1) In general— Section 25D(h) is amended by striking “December 31, 2034” and inserting “December 31, 2023”. - (2) Phaseout restored— Section 25D(g) is amended— - (A) in paragraph (1), by adding “and” at the end, - (B) in paragraph (2), by striking “before January 1, 2022, 26 percent,” and inserting “before January 1, 2023, 26 percent, and”, - (C) in paragraph (3), by striking “December 31, 2021, and before January 1, 2033, 30 percent,” and inserting “December 31, 2022, and before January 1, 2024, 22 percent.”, and - (D) by striking paragraphs (4) and (5). - (b) Residential Clean Energy Credit for Battery Storage Technology removed; biomass expenditure provisions restored— - (1) In general— Paragraph (6) of section 25D(a) is amended to read as follows: - “(6) the qualified biomass fuel property expenditures,” - (1) Definition of qualified biomass fuel property expenditures restored— Paragraph (6) of section 25D(d) is amended to read as follows:in paragraph (1)— - (A) in subparagraph (E), by adding “and” at the end, - (B) in subparagraph (F)(ii), by striking the comma at the end and inserting a period, and - (C) by striking subparagraph (G), and - (2) by striking paragraph (5). - “(6) Qualified biomass fuel property expenditure - “(A) In general—The term “qualified biomass fuel property expenditure” means an expenditure for property— - “(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 - “(ii) which has a thermal efficiency rating of at least 75 percent (measured by the higher heating value of the fuel). - “(B) Biomass fuel—For purposes of this section, the term “biomass fuel” means any plant-derived fuel available on a renewable or recurring basis.” - (c) Conforming amendments—Definition— - (1) In general— Section 25D(d)(3) is 30D(d), as amended by striking “, without regard to subparagraph (D) thereof”.subsection (b), is amended— - (A) in the heading, by striking “Clean” and inserting “Qualified plug-In electric drive motor”, - (B) in paragraph (1)— - (i) in the matter preceding subparagraph (A), by striking “clean” and inserting “qualified plug-in electric drive motor”, - (ii) in subparagraph (C), by striking “qualified” before “manufacturer”, - (iii) in subparagraph (F)(i), by striking “7” and inserting “4”, and - (iv) by striking subparagraph (H), - (C) in paragraph (3)— - (i) in the heading, by striking “qualified manufacturer” and inserting “Manufacturer”, and - (ii) by striking “The term “qualified manufacturer” means” and all that follows through the period and inserting “The term “manufacturer” has the meaning given such term in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act (42 U.S.C. 7521 et seq.).”, and - (D) by striking paragraph (6). - (2) Conforming amendments— The heading for section 25D Section 30D is amended by striking “clean energy credit” and inserting “energy efficient property”.amended— - (A) in subsection (a), by striking “new clean vehicle” and inserting “new qualified plug-in electric drive motor vehicle”, and - (B) in subsection (b)(1), by striking “new clean vehicle” and inserting “new qualified plug-in electric drive motor vehicle”. - (d) Critical mineral requirements removed— Section 30D is amended by striking subsection (e). - (e) Limitation on number of vehicles eligible for credit restored— - (1) In general— Section 30D is amended by inserting after subsection (d) the following: - “(e) Limitation on number of new qualified plug-In electric drive motor vehicles eligible for credit - “(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. - “(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. - “(3) Applicable percentage—For purposes of paragraph (1), the applicable percentage is— - “(A) 50 percent for the first 2 calendar quarters of the phaseout period, - “(B) 25 percent for the 3rd and 4th calendar quarters of the phaseout period, and (C) - “(C) 0 percent for each calendar quarter thereafter. - “(4) Controlled groups—Rules similar to the rules of section 30B(f)(4) shall apply for purposes of this subsection.” - (2) Excluded entities— Section 30D(d), as amended by Public Law 117–169, is amended by striking paragraph (7). - (f) Special rules repealed— Section 30D(f) is amended by striking paragraphs (8), (9), (10), and (11). - (g) Transfer of credit repealed— - (1) In general— Section 30D is amended by striking subsection (g). - (2) Restoration of text relating to plug-in electric vehicles— Section 30D is amended by inserting after subsection (f) the following: - “(g) Credit allowed for 2- and 3-wheeled plug-In electric vehicles - “(1) In general—In the case of a qualified 2- or 3-wheeled plug-in electric vehicle— - “(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 - “(B) the amount of the credit allowed under subparagraph (A) shall be treated as a credit allowed under subsection (a). - “(2) Applicable amount—For purposes of paragraph (1), the applicable amount is an amount equal to the lesser of— - “(A) 10 percent of the cost of the qualified 2- or 3-wheeled plug-in electric vehicle, or - “(B) $2,500. - “(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— - “(A) has 2 or 3 wheels, - “(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)), - “(C) is manufactured primarily for use on public streets, roads, and highways, - “(D) is capable of achieving a speed of 45 miles per hour or greater, and - “(E) is acquired— - “(i) after December 31, 2011, and before January 1, 2014, or - “(ii) in the case of a vehicle that has 2 wheels, after December 31, 2014, and before January 1, 2022.” - (3) Conforming amendments reversed— Section 30D(f), as amended by Public Law 117–169, is amended— - (A) by inserting after paragraph (2) the following: - “(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.” - (B) in paragraph (8), by striking “, including any vehicle with respect to which the taxpayer elects the application of subsection (g)”. - (h) Termination repealed— Section 30D is amended by striking subsection (h). - (i) Additional conforming amendments— - (1) The heading of section 30D is amended by striking “clean vehicle credit” and inserting “new qualified plug-in electric drive motor vehicles”. - (2) Section 30B is amended— - (A) in subsection (h)(8) by inserting “, except that no benefit shall be recaptured if such property ceases to be eligible for such credit by reason of conversion to a qualified plug-in electric drive motor vehicle”, before the period at the end, and - (B) by inserting after subsection (h) the following subsection: - “(i) Plug-In conversion credit - “(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. - “(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). - “(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. - “(4) Termination—This subsection shall not apply to conversions made after December 31, 2011.” - (3) Section 38(b)(30) is amended by striking “clean” and inserting “qualified plug-in electric drive motor”. - (4) Section 6213(g)(2) is amended by striking subparagraph (T). - (5) Section 6501(m) is amended by striking “30D(f)(6)” and inserting “30D(e)(4)”. - (6) The table of sections for subpart B of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 30D and inserting after the item relating to section 30C the following item: - (j) Gross up repealed— Section 13401 of Public Law 117–169 is amended by striking subsection (j). - (k) Transition rule repealed— Section 13401 of Public Law 117–169 is amended by striking subsection (l). - (l) Effective dates— - (1) In general— Except as provided in paragraphs (2), (3), (4), and (5), the amendments made by this section shall apply to vehicles placed in service after December 31, 2022. - (2) Final assembly— The amendments made by subsection (b) shall apply to vehicles sold after August 16, 2022. - (3) Manufacturer limitation— The amendment made by subsections (d) and (e) shall apply to vehicles sold after December 31, 2022. - (4) Transfer of credit— The amendments made by subsection (g) shall apply to vehicles placed in service after December 31, 2023. - (5) Transition rule— The amendment made by subsection (k) shall take effect as if included in Public Law 117–169. - (3) The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 25D and inserting the following: - (d) Effective dates— - (1) In general— Except as provided in paragraph (2), the amendments made by this section shall apply to expenditures made after December 31, 2021. - (2) Residential Clean Energy Credit for Battery Storage Technology removed; biomass expenditure provisions restored— The amendments made by subsection (b) shall apply to expenditures made after December 31, 2022. ## Sec. 233 Repeal of credit for previously-owned clean vehicles - (a) In general— Subpart A of part IV of subchapter A of chapter 1 is amended by striking section 25E (and by striking the item relating to such section in the table of sections for such subpart). - (a) In general— - (1) Maximum amount of deduction rules restored— Section 179D(b) is amended to read as follows: - “(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— - “(1) the product of— - “(A) $1.80, and - “(B) the square footage of the building, over - “(2) the aggregate amount of the deductions under subsection (a) with respect to the building for all prior taxable years.” - (2) Modification of efficiency standard— Section 179D(c)(1)(D) is amended by striking “25 percent” and inserting “50 percent”. - (3) Reference standard— Section 179D(c)(2) is amended to read as follows: - “(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.” - (4) Partial allowance— - (A) In general— Section 179D(d) is amended— - (i) by redesignating paragraphs (1) through (5) as paragraphs (2) through (6), respectively, and - (ii) by inserting before paragraph (2) the following: - “(1) Partial allowance - “(A) In general—Except as provided in subsection (f), if— - “(i) the requirement of subsection (c)(1)(D) is not met, but - “(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, - “(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).” - (B) Conforming amendments— - (i) Section 179D(c)(1)(D) is amended— - (I) by striking “subsection (d)(5)” and inserting “subsection (d)(6)”, and - (II) by striking “subsection (d)(1)” and inserting “subsection (d)(2)”. - (ii) Paragraph (3)(A) of section 179D(d), as redesignated by subparagraph (A), is amended by striking “paragraph (1)” and inserting “paragraph (2)”. - (iii) Paragraph (5) of section 179D(d), as redesignated by subparagraph (A), is amended by striking “paragraph (2)(B)(iii)” and inserting “paragraph (3)(B)(iii)”. - (iv) Section 179D(h)(2) is amended by inserting “or (d)(1)(A)” after “subsection (c)(1)(D)”. - (5) Allocation of deduction for public property— Paragraph (4) of section 179D(d), as redesignated by paragraph (4)(A), is amended to read as follows: - “(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.” - (6) Alternative deduction for energy efficient building retrofit property repealed— - (A) In general— Section 179D is amended by striking subsection (f). - (B) Restoration of text relating to interim rules for lighting systems— Section 179D is amended by inserting after subsection (e) the following: - “(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— - “(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. - “(2) Reduction in deduction if reduction less than 40 percent - “(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. - “(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— - “(i) 50, and - “(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. - “(C) Exceptions—This subsection shall not apply to any system— - “(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 - “(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.” - (7) Inflation adjustment— Section 179D(g) is amended— - (A) by inserting “or subsection (d)(1)(A)” after “subsection (b)”, - (B) by striking “2022” and inserting “2020”, and - (C) by striking “calendar year 2021” and inserting “calendar year 2019”. - (b) Special rule for real estate investment trusts removed—Conforming amendment— Section 312(k)(3)(B) 6213(g)(2) is amended to read as follows:by striking subparagraph (U). - “(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).” - (c) Conforming amendment—Effective date— Paragraph (2) of section 179D(d), as redesignated by subsection (a)(4)(A), is amended The amendments made by striking “not later than the date that is 4 years before the date such property is placed in service” and inserting “not later than the date that is 2 years before the date that construction of such property begins”.this section shall apply to vehicles acquired after December 31, 2022. - (d) Effective dates— The amendments made by this section shall apply to taxable years beginning after December 31, 2022. ## Sec. 234 Repeal of credit for qualified commercial clean vehicles - (a) Extension reversed—In general— Section 45L(h) Subpart D of part IV of subchapter A of chapter 1 is amended by striking “December 31, 2032” and inserting “December 31, 2021”.section 45W (and by striking the item relating to such section in the table of sections for such subpart). - (b) Conforming amendments— - (1) Section 38(b) is amended by striking paragraph (37). - (2) Section 6213(g)(2) is amended by striking subparagraph (V). - (b) Decrease in credit amounts— Paragraph (2) of section 45L(a) is amended to read as follows: - “(2) Applicable amount—For purposes of paragraph (1), the applicable amount is an amount equal to— - “(A) in the case of a dwelling unit described in paragraph (1) or (2) of subsection (c), $2,000, and - “(B) in the case of a dwelling unit described in paragraph (3) of subsection (c), $1,000.” - (c) Reversal of modification of energy saving requirements—Effective date— Section 45L(c) is amended The amendments made by this section shall apply to read as follows:vehicles acquired after December 31, 2022. - “(c) Energy saving requirements—A dwelling unit meets the energy saving requirements of this subsection if such unit is— - “(1) certified— - “(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— - “(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 - “(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 - “(B) to have building envelope component improvements account for at least 1/5 of such 50 percent, - “(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 - “(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— - “(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 - “(B) meets the requirements established by the Administrator of the Environmental Protection Agency under the Energy Star Labeled Homes program.” - (d) Prevailing wage requirement removed— Section 45L is amended by striking subsection (g) and redesignating subsection (h) as subsection (g). - (e) Basis adjustment— Section 45L(e) is amended by striking “This subsection shall not apply for purposes of determining the adjusted basis of any building under section 42”. - (f) Effective dates— The amendments made by this section shall apply to dwelling units acquired after December 31, 2021. ## Sec. 235 Alternative fuel refueling property credit - (a) Per vehicle dollar limitation—In general— Section 30D(b) 30C(i) is amended by striking paragraphs (2) and (3) “December 31, 2032” and inserting the following:“December 31, 2021”. - (b) Property of a character subject to depreciation— - (1) In general— Section 30C(a) is amended by striking “(6 percent in the case of property of a character subject to depreciation)”. - “(2) Base amount—The amount determined under this paragraph is $2,500. - “(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.” - (b) Final assembly— Section 30D(d) is amended— - (2) Modification of credit limitation— in paragraph (1)—Subsection (b) of section 30C is amended— - (A) in subparagraph (E), by adding “and” at the end, - (A) in subparagraph (F)(ii), by striking the comma at the end and inserting a period, andmatter preceding paragraph (1)— - (i) by striking “with respect to any single item of” and inserting “with respect to all”, and - (ii) by inserting “at a location” before “shall not exceed”, and - (B) in paragraph (1), by striking subparagraph (G), and“$100,000 in the case of any such item of property” and inserting “$30,000 in the case of a property”. - (3) Bidirectional charging equipment not included; eligible census tract requirement removed— by striking paragraph (5).Section 30C(c) is amended to read as follows: - “(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— - “(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 - “(2) only the following were treated as clean-burning fuels for purposes of section 179A(d): - “(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. - “(B) Any mixture— - “(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 - “(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. - “(C) Electricity.” - (c) Certain electric charging stations not included as qualified alternative fuel vehicle refueling property; wage and apprenticeship requirements removed— Section 30C is amended by striking subsections (f) and (g) and redesignating subsections (h) and (i) as subsections (f) and (g), respectively. - (c) Definition— - (1) In general— Section 30D(d), as amended by subsection (b), is amended— - (A) in the heading, by striking “Clean” and inserting “Qualified plug-In electric drive motor”, - (B) in paragraph (1)— - (i) in the matter preceding subparagraph (A), by striking “clean” and inserting “qualified plug-in electric drive motor”, - (ii) in subparagraph (C), by striking “qualified” before “manufacturer”, - (iii) in subparagraph (F)(i), by striking “7” and inserting “4”, and - (iv) by striking subparagraph (H), - (C) in paragraph (3)— - (i) in the heading, by striking “qualified manufacturer” and inserting “Manufacturer”, and - (ii) by striking “The term “qualified manufacturer” means” and all that follows through the period and inserting “The term “manufacturer” has the meaning given such term in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act (42 U.S.C. 7521 et seq.).”, and - (D) by striking paragraph (6). - (2) Conforming amendments— Section 30D is amended— - (A) in subsection (a), by striking “new clean vehicle” and inserting “new qualified plug-in electric drive motor vehicle”, and - (B) in subsection (b)(1), by striking “new clean vehicle” and inserting “new qualified plug-in electric drive motor vehicle”. - (d) Critical mineral requirements removed—Effective date— Section 30D is amended The amendments made by striking subsection (e).this section shall apply to property placed in service after December 31, 2021. - (e) Limitation on number of vehicles eligible for credit restored— - (1) In general— Section 30D is amended by inserting after subsection (d) the following: - “(e) Limitation on number of new qualified plug-In electric drive motor vehicles eligible for credit - “(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. - “(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. - “(3) Applicable percentage—For purposes of paragraph (1), the applicable percentage is— - “(A) 50 percent for the first 2 calendar quarters of the phaseout period, - “(B) 25 percent for the 3rd and 4th calendar quarters of the phaseout period, and (C) - “(C) 0 percent for each calendar quarter thereafter. - “(4) Controlled groups—Rules similar to the rules of section 30B(f)(4) shall apply for purposes of this subsection.” - (2) Excluded entities— Section 30D(d), as amended by Public Law 117–169, is amended by striking paragraph (7). - (f) Special rules repealed— Section 30D(f) is amended by striking paragraphs (8), (9), (10), and (11). - (g) Transfer of credit repealed— - (1) In general— Section 30D is amended by striking subsection (g). - (2) Restoration of text relating to plug-in electric vehicles— Section 30D is amended by inserting after subsection (f) the following: - “(g) Credit allowed for 2- and 3-wheeled plug-In electric vehicles - “(1) In general—In the case of a qualified 2- or 3-wheeled plug-in electric vehicle— - “(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 - “(B) the amount of the credit allowed under subparagraph (A) shall be treated as a credit allowed under subsection (a). - “(2) Applicable amount—For purposes of paragraph (1), the applicable amount is an amount equal to the lesser of— - “(A) 10 percent of the cost of the qualified 2- or 3-wheeled plug-in electric vehicle, or - “(B) $2,500. - “(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— - “(A) has 2 or 3 wheels, - “(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)), - “(C) is manufactured primarily for use on public streets, roads, and highways, - “(D) is capable of achieving a speed of 45 miles per hour or greater, and - “(E) is acquired— - “(i) after December 31, 2011, and before January 1, 2014, or - “(ii) in the case of a vehicle that has 2 wheels, after December 31, 2014, and before January 1, 2022.” - (3) Conforming amendments reversed— Section 30D(f), as amended by Public Law 117–169, is amended— - (A) by inserting after paragraph (2) the following: - “(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.” - (B) in paragraph (8), by striking “, including any vehicle with respect to which the taxpayer elects the application of subsection (g)”. - (h) Termination repealed— Section 30D is amended by striking subsection (h). - (i) Additional conforming amendments— - (1) The heading of section 30D is amended by striking “clean vehicle credit” and inserting “new qualified plug-in electric drive motor vehicles”. - (2) Section 30B is amended— - (A) in subsection (h)(8) by inserting “, except that no benefit shall be recaptured if such property ceases to be eligible for such credit by reason of conversion to a qualified plug-in electric drive motor vehicle”, before the period at the end, and - (B) by inserting after subsection (h) the following subsection: - “(i) Plug-In conversion credit - “(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. - “(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). - “(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. - “(4) Termination—This subsection shall not apply to conversions made after December 31, 2011.” - (3) Section 38(b)(30) is amended by striking “clean” and inserting “qualified plug-in electric drive motor”. - (4) Section 6213(g)(2) is amended by striking subparagraph (T). - (5) Section 6501(m) is amended by striking “30D(f)(6)” and inserting “30D(e)(4)”. - (6) The table of sections for subpart B of part IV of subchapter A of chapter 1 is amended by striking the item relating to section 30D and inserting after the item relating to section 30C the following item: - (j) Gross up repealed— Section 13401 of Public Law 117–169 is amended by striking subsection (j). - (k) Transition rule repealed— Section 13401 of Public Law 117–169 is amended by striking subsection (l). - (l) Effective dates— - (1) In general— Except as provided in paragraphs (2), (3), (4), and (5), the amendments made by this section shall apply to vehicles placed in service after December 31, 2022. - (2) Final assembly— The amendments made by subsection (b) shall apply to vehicles sold after August 16, 2022. - (3) Manufacturer limitation— The amendment made by subsections (d) and (e) shall apply to vehicles sold after December 31, 2022. - (4) Transfer of credit— The amendments made by subsection (g) shall apply to vehicles placed in service after December 31, 2023. - (5) Transition rule— The amendment made by subsection (k) shall take effect as if included in Public Law 117–169. ## Sec. 236 Advanced energy project credit extension reversed - (a) In general— Subpart A of part IV of subchapter A of chapter 1 Section 48C is amended by striking section 25E (and by striking the item relating to such section in the table of sections for such subpart).subsection (e) and redesignating subsection (f) as subsection (e). - (b) Conforming amendment—Modification of qualifying advanced energy projects— Section 6213(g)(2) 48C(c)(1)(A) is amended by striking subparagraph (U).amended— - (1) by striking “, any portion of the qualified investment of which is certified by the Secretary under subsection (e) as eligible for a credit under this section”, - (2) in clause (i)— - (A) by striking “an industrial or manufacturing facility for the production or recycling of” and inserting “a manufacturing facility for the production of”, - (B) in subclause (I), by striking “water,”, - (C) in subclause (II), by striking “energy storage systems and components” and inserting “an energy storage system for use with electric or hybrid-electric motor vehicles”, - (D) in subclause (III), by striking “grid modernization equipment or components” and inserting “grids to support the transmission of intermittent sources of renewable energy, including storage of such energy”, - (E) in subclause (IV), by striking “, remove, use, or sequester carbon oxide emissions” and inserting “and sequester carbon dioxide emissions”, - (F) by striking subclause (V) and inserting the following: - “(V) property designed to refine or blend renewable fuels or to produce energy conservation technologies (including energy-conserving lighting technologies and smart grid technologies),” - (G) by striking subclauses (VI), (VII), and (VIII), - (H) by inserting after subclause (V) the following: - “(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” - (I) by redesignating subclause (IX) as subclause (VII), and inserting “, and” at the end of such subclause, and - (3) by striking clauses (ii) and (iii) and inserting the following: - “(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.” - (c) Effective date—Conforming amendment— The amendments made by this Subparagraph (A) of section shall apply 48C(c)(2) is amended to vehicles acquired after December 31, 2022.read as follows: - “(A) which is necessary for the production of property described in paragraph (1)(A)(i),” - (d) Denial of double benefit— Section 48C(e), as redesignated by this section, is amended by striking “48B, 48E, 45Q, or 45V” and inserting “or 48B”. - (e) Effective date— The amendments made by this section shall take effect on January 1, 2023. ## Sec. 237 Repeal of advanced manufacturing production credit - (a) In general— Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 45W 45X (and by striking the item relating to such section in the table of sections for such subpart). - (b) Conforming amendment— Section 38(b) is amended by striking paragraph (38). - (b) Conforming amendments— - (1) Section 38(b) is amended by striking paragraph (37). - (2) Section 6213(g)(2) is amended by striking subparagraph (V). - (c) Effective date— The amendments made by this section shall apply to vehicles acquired components produced and sold after December 31, 2022. ## Sec. 238 Repeal of clean electricity production credit - (a) In general— Section 30C(i) Subpart D of part IV of subchapter A of chapter 1 is amended by striking “December 31, 2032” and inserting “December 31, 2021”.section 45Y (and by striking the item relating to such section in the table of sections for such subpart). - (b) Conforming amendment— Section 38(b) is amended by striking paragraph (39). - (b) Property of a character subject to depreciation— - (1) In general— Section 30C(a) is amended by striking “(6 percent in the case of property of a character subject to depreciation)”. - (2) Modification of credit limitation— Subsection (b) of section 30C is amended— - (A) in the matter preceding paragraph (1)— - (i) by striking “with respect to any single item of” and inserting “with respect to all”, and - (ii) by inserting “at a location” before “shall not exceed”, and - (B) in paragraph (1), by striking “$100,000 in the case of any such item of property” and inserting “$30,000 in the case of a property”. - (3) Bidirectional charging equipment not included; eligible census tract requirement removed— Section 30C(c) is amended to read as follows: - “(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— - “(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 - “(2) only the following were treated as clean-burning fuels for purposes of section 179A(d): - “(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. - “(B) Any mixture— - “(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 - “(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. - “(C) Electricity.” - (c) Certain electric charging stations not included as qualified alternative fuel vehicle refueling property; wage and apprenticeship requirements removed—Effective date— Section 30C is amended The amendments made by striking subsections (f) and (g) and redesignating subsections (h) and (i) as subsections (f) and (g), respectively.this section shall apply to facilities placed in service after December 31, 2024. - (d) Effective date— The amendments made by this section shall apply to property placed in service after December 31, 2021. ## Sec. 239 Repeal of clean electricity investment credit - (a) In general— Section 48C Subpart E of part IV of subchapter A of chapter 1 is amended by striking subsection (e) and redesignating subsection (f) as subsection (e).section 48E (and by striking the item relating to such section in the table of sections for such subpart). - (b) Conforming amendments— - (1) Section 46, as amended by Public Law 117–169, is amended— - (A) in paragraph (5), by adding “and” at the end, - (B) in paragraph (6), by striking “, and” and inserting a period, and - (C) by striking paragraph (7). - (b) Modification of qualifying advanced energy projects— Section 48C(c)(1)(A) is amended— - (2) Section 49(a)(1)(C), as amended by striking “, any portion of the qualified investment of which Public Law 117–169, is certified by the Secretary under subsection (e) as eligible for a credit under this section”,amended— - (A) by adding “and” at the end of clause (v), - (B) by striking the comma at the end of clause (vi) and inserting a period, and - (C) by striking clauses (vii) and (viii). - (3) in clause (i)—Section 50(a)(2)(E), as amended by Public Law 117–169, is amended by striking “48D(b)(5), or 48E(e)” and inserting “or 48D(b)(5)”. - (A) by striking “an industrial or manufacturing facility for the production or recycling of” and inserting “a manufacturing facility for the production of”, - (B) in subclause (I), by striking “water,”, - (C) in subclause (II), by striking “energy storage systems and components” and inserting “an energy storage system for use with electric or hybrid-electric motor vehicles”, - (D) in subclause (III), by striking “grid modernization equipment or components” and inserting “grids to support the transmission of intermittent sources of renewable energy, including storage of such energy”, - (E) in subclause (IV), by striking “, remove, use, or sequester carbon oxide emissions” and inserting “and sequester carbon dioxide emissions”, - (F) by striking subclause (V) and inserting the following: - “(V) property designed to refine or blend renewable fuels or to produce energy conservation technologies (including energy-conserving lighting technologies and smart grid technologies),” - (G) by striking subclauses (VI), (VII), and (VIII), - (H) by inserting after subclause (V) the following: - “(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” - (I) by redesignating subclause (IX) as subclause (VII), and inserting “, and” at the end of such subclause, and - (4) Section 50(c)(3), as amended by Public Law 117–169, is amended by striking clauses (ii) and (iii) and inserting the following:“or clean electricity investment credit”. - “(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.” - (c) Conforming amendment—Effective date— Subparagraph (A) of The amendments made by this section 48C(c)(2) is amended shall apply to read as follows:facilities and property placed in service after December 31, 2024. - “(A) which is necessary for the production of property described in paragraph (1)(A)(i),” - (d) Denial of double benefit— Section 48C(e), as redesignated by this section, is amended by striking “48B, 48E, 45Q, or 45V” and inserting “or 48B”. - (e) Effective date— The amendments made by this section shall take effect on January 1, 2023. ## Sec. 240 Cost recovery for qualified facilities, qualified property, and energy storage technology removed - (a) In general— Subpart D of part IV of subchapter A of chapter 1 is Section 168(e)(3)(B), as amended by striking section 45X (and by striking the item relating to such section in the table of sections for such subpart).Public Law 117–169, is amended— - (1) in clause (vi)(III), by adding “and” at the end, - (2) in clause (vii), by striking “, and,” at the end and inserting a period, and - (3) by striking clause (viii). - (b) Conforming amendment—Effective date— Section 38(b) is amended The amendments made by striking paragraph (38).this section shall apply to facilities and property placed in service after December 31, 2024. - (c) Effective date— The amendments made by this section shall apply to components produced and sold after December 31, 2022. ## Sec. 241 Repeal of clean fuel production credit - (a) In general— Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 45Y 45Z (and by striking the item relating to such section in the table of sections for such subpart). - (b) Conforming amendments— - (1) Section 30C(c)(1)(B), as amended by Public Law 117–169, is amended by striking clause (iv). - (2) Section 38(b), as amended by Public Law 117–169, is amended by striking paragraph (40). - (3) Section 4101(a)(1), as amended by Public Law 117–169, is amended by striking “every person producing a fuel eligible for the clean fuel production credit (pursuant to section 45Z),”. - (b) Conforming amendment— Section 38(b) is amended by striking paragraph (39). - (c) Effective date— The amendments made by this section shall apply to facilities placed in service transportation fuel produced after December 31, 2024. ## Sec. 242 Repeal of sections relating to elective payment for energy property and electricity produced from certain renewable resources; transfer of credits - (a) In general— Subpart E of part IV of subchapter A Subchapter B of chapter 1 65 is amended by striking section 48E sections 6417 and 6418 (and by striking the item items relating to such section sections in the table of sections for such subpart).subchapter). - (b) Conforming amendments— - (1) Section 46, as 50(d) is amended by Public Law 117–169, is amended—striking “In the case of a real estate investment trust making an election under section 6418, paragraphs (1)(B) and (2)(B) of the section 46(e) referred to in paragraph (1) of this subsection shall not apply to any investment credit property of such real estate investment trust to which such election applies”. - (A) in paragraph (5), by adding “and” at the end, - (B) in paragraph (6), by striking “, and” and inserting a period, and - (C) by striking paragraph (7). - (2) Section 49(a)(1)(C), as 39(a) is amended by Public Law 117–169, is amended—striking paragraph (4). - (A) by adding “and” at the end of clause (v), - (B) by striking the comma at the end of clause (vi) and inserting a period, and - (C) by striking clauses (vii) and (viii). - (3) Section 50(a)(2)(E), as amended by 13801 of Public Law 117–169, 117–169 is amended by striking “48D(b)(5), or 48E(e)” and inserting “or 48D(b)(5)”.subsection (f). - (4) Section 50(c)(3), as amended by Public Law 117–169, is amended by striking “or clean electricity investment credit”. - (c) Effective date— The amendments made by this section shall apply to facilities and property placed in service taxable years beginning after December 31, 2024.2022. ## Sec. 243 Transition rule - 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. - (a) In general— Section 168(e)(3)(B), as amended by Public Law 117–169, is amended— - (1) in clause (vi)(III), by adding “and” at the end, - (2) in clause (vii), by striking “, and,” at the end and inserting a period, and - (3) by striking clause (viii). - (b) Effective date— The amendments made by this section shall apply to facilities and property placed in service after December 31, 2024. ## Sec. 244 Repeal of clean fuel production credit — removed - (a) In general— Subpart D of part IV of subchapter A of chapter 1 is amended by striking section 45Z (and by striking the item relating to such section in the table of sections for such subpart). - (b) Conforming amendments— - (1) Section 30C(c)(1)(B), as amended by Public Law 117–169, is amended by striking clause (iv). - (2) Section 38(b), as amended by Public Law 117–169, is amended by striking paragraph (40). - (3) Section 4101(a)(1), as amended by Public Law 117–169, is amended by striking “every person producing a fuel eligible for the clean fuel production credit (pursuant to section 45Z),”. - (c) Effective date— The amendments made by this section shall apply to transportation fuel produced after December 31, 2024. ## Sec. 245 Repeal of sections relating to elective payment for energy property and electricity produced from certain renewable resources; transfer of credits — removed - (a) In general— Subchapter B of chapter 65 is amended by striking sections 6417 and 6418 (and by striking the items relating to such sections in the table of sections for such subchapter). - (b) Conforming amendments— - (1) Section 50(d) is amended by striking “In the case of a real estate investment trust making an election under section 6418, paragraphs (1)(B) and (2)(B) of the section 46(e) referred to in paragraph (1) of this subsection shall not apply to any investment credit property of such real estate investment trust to which such election applies”. - (2) Section 39(a) is amended by striking paragraph (4). - (3) Section 13801 of Public Law 117–169 is amended by striking subsection (f). - (c) Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2022. ## Sec. 305 Effective date - The amendments made by this title shall take effect on October 1, 2025.2024. ## Sec. 312 Rule of construction for exemption adjustment - 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: - “(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.” ## Sec. 313 Supplemental nutrition assistance program under the Food and Nutrition Act of 2008 — added - Section 2 of the Food and Nutrition Act of 2008 (7 U.S.C. 2011) is amended by adding at end the following: