Sec. 121. Deployment of solar and wind technology through tax credits
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Subsection
(a)of section 48 of the Internal Revenue Code is amended— in paragraph (2)(A)(i)— in subclause (III), by striking and at the end; and by adding at the end the following new subclause: qualified offshore wind property, and ; and in paragraph (3)(A)— in clause (vi), by striking or at the end; in clause (vii), by adding or at the end; and by adding at the end the following new clause: qualified offshore wind property, but only with respect to property the construction of which begins before January 1, 2028, . Subsection
(c)of section 48 of such Code is amended by adding at the end the following new paragraph: The term qualified offshore wind property means an offshore facility using wind to produce electricity. The term offshore facility means any facility located in the inland navigable waters of the United States, including the Great Lakes, or in the coastal waters of the United States, including the territorial seas of the United States, the exclusive economic zone of the United States, and the outer Continental Shelf of the United States. The term qualified offshore wind property shall not include any property described in paragraph (4). In the case of any property described in subparagraph
(A)which was placed in service after December 31, 2016, and for which a credit under this section was allowed by reason of subsection (a)(5) in any taxable year which ends before or includes the date of the enactment of the Clean Energy Innovation and Deployment Act of 2020 , notwithstanding any election under such subsection (a)(5), such property may be treated at the election of the taxpayer as qualified offshore wind property (and not as qualified property which is part of a qualified investment credit facility) for— taxable years beginning on or after such date of enactment, and any taxable years ending before such date of enactment, including by filing an amended return. Notwithstanding section 6501, an amended return may be filed for purposes of clause
(ii)for any taxable year described in such clause. . The amendments made by this section shall take effect on the date of the enactment of this Act. Section 48 of the Internal Revenue Code of 1986 is amended— in subsection (a)— in paragraph (2)(A)(i)(II), by striking January 1, 2022 and inserting January 1, 2028 ; in paragraph (3)(A)— in clause (ii), by striking January 1, 2022 and inserting January 1, 2028 ; and in clause (vii), by striking January 1, 2022 and inserting January 1, 2028 ; and in paragraph (5)(C)— in clause (i)— by striking (2), (3), (4), (6), (7), ; and by inserting and which is placed in service after 2008 and the construction of which begins before January 1, 2028 after section 45(d) ; and in clause (ii), by inserting at the beginning of the clause which is a qualified facility (within the meaning of section 45) described in paragraph (2), (3), (4), (6), and
(7)and ; and in subsection (c)— in paragraph (1)(D), by striking January 1, 2022 and inserting January 1, 2028 ; in paragraph (2)(D), by striking January 1, 2022 and inserting January 1, 2028 ; in paragraph (3)(A)(iv), by striking January 1, 2022 and inserting January 1, 2028 ; and in paragraph (4)(C), by striking January 1, 2022 and inserting January 1, 2028 . Section 48 of such Code is further amended by adding at the end the following new subsections: If a taxpayer elects to transfer all (or any portion specified in the election) of the credit determined under this section for an energy property described in subsection (a)(5) or (a)(6) for any taxable year to an eligible project partner for a specified period, then the eligible project partner specified in such election (and not the taxpayer) shall be treated for purposes of this title with respect to such credit (or such portion thereof) as the person entitled to such credit (or portion thereof). For purposes of this paragraph, the term eligible project partner means, with respect to any energy property described in subsection (a)(5) or (a)(6), any person who— has an ownership interest in such energy property, provided equipment for or services in the construction of such energy property, provides electric transmission or distribution services for such energy property, purchases electricity from such energy property pursuant to a contract, or provides financing for such energy property. For purposes of paragraph (1)(E), any amount paid as consideration for a transfer described in subsection
(e)shall not be treated as financing of a qualified facility. In the case of any credit (or portion thereof) with respect to which an election is made under subsection (e), such credit shall be taken into account in the first taxable year of the eligible project partner ending with, or after, the electing taxpayer’s taxable year with respect to which the credit was determined. An election under subsection
(e)to transfer any portion of the credit allowed under this section shall be made not later than the due date for the return of tax for the electing taxpayer’s taxable year with respect to which the credit was determined. No election may be made under subsection
(e)by a taxpayer with respect to any portion of the credit allowed under this section which has been previously transferred to such taxpayer. For purposes of section 141(b)(1), any benefit derived by an eligible project partner in connection with an election under subsection
(e)shall not be taken into account as a private business use. The Secretary may prescribe such regulations as may be appropriate to carry out the purposes of this section, including— rules for determining which persons are eligible project partners with respect to any energy property, and requiring information to be included in an election under subparagraph
(A)or imposing additional reporting requirements. In the case of a taxpayer making an election under this section, the credit subject to such an election shall be determined notwithstanding— section 50(b)(3); and section 50(b)(4) for an entity described in 50(b)(4)(A)(i). In the case of a mutual or cooperative electric company described in this paragraph or an organization described in section 1381(a)(2), income received or accrued in connection with the transfer of credit under this section shall be treated as an amount collected from members for the sole purpose of meeting losses and expenses. This section shall apply to taxable years ending before January 1, 2050. . Section 48(a)(6) of such Code is amended— in subparagraph (A)— by striking January 1, 2022, the energy percentage and inserting January 1, 2028, the energy percentage ; in clause (i), by striking after December 31, 2019, and before January 1, 2021 and inserting after December 31, 2020, and before January 1, 2027 ; and in clause (ii), by striking after December 31, 2020, and before January 1, 2022 and inserting after December 31, 2021, and before January 1, 2027 ; and in subparagraph (B), by striking begins before January 1, 2022, and which is not placed in service before January 1, 2024 and inserting begins before January 1, 2028, and which is not placed in service before January 1, 2030 . Section 48(a)(7) of such Code is amended— in subparagraph (A)— in clause (i), by striking after December 31, 2019, and before January 1, 2021 and inserting after December 31, 2020, and before January 1, 2027 ; and in clause (ii), by striking after December 31, 2020, and before January 1, 2022 and inserting after December 31, 2021, and before January 1, 2027 ; and in subparagraph (B), by striking January 1, 2024 and inserting January 1, 2030 . Section 45(d)(1) of the Internal Revenue Code of 1986 is amended by striking January 1, 2021 and inserting January 1, 2028 . Section 45(d)(9)(a)(i) and
(ii)and Section 45(d)(11)(B) of the Internal Revenue Code of 1986 is amended by striking January 1, 2021 and inserting January 1, 2028 . Section 45(b)(5)(D) of the Internal Revenue Code of 1986 is amended by striking January 1, 2021 and inserting January 1, 2028 . Section 48(a)(5)(E) of the Internal Revenue Code of 1986 is amended by striking January 1, 2021 and inserting January 1, 2028 . Section 45 of the Internal Revenue Code of 1986 is amended by adding at the end the following: If the taxpayer elects to transfer all (or any portion specified in the election) of the credit determined under this section for any taxable year with respect to any qualified facility as defined in subsection (d)(1) to an eligible project partner for a specified period, then, the eligible project partner specified in such election (and not the taxpayer) shall be treated for purposes of this title with respect to such credit (or such portion thereof) as the person producing and selling the electricity to which such credit (or portion thereof) relates. For purposes of this section, the term eligible project partner means, with respect to any qualified facility as defined in subsection (d)(1), any person who— has an ownership interest in such qualified facility, provided equipment for or services in the construction of such qualified facility, provides electric transmission or distribution services for such qualified facility, purchases electricity from such qualified facility pursuant to a contract, or provides financing for such qualified facility. For purposes of paragraph (1)(E), any amount paid as consideration for a transfer described in subsection
(f)shall not be treated as financing of a qualified facility. In the case of any credit (or portion thereof) with respect to which an election is made under subsection (f), such credit shall be taken into account in the first taxable year of the eligible project partner ending with, or after, the electing taxpayer’s taxable year with respect to which the credit was determined. An election under subsection
(f)to transfer any portion of the credit allowed under this section shall be made not later than the due date for the return of tax for the electing taxpayer’s taxable year with respect to which the credit was determined. No election may be made under subsection
(f)by a taxpayer with respect to any portion of the credit allowed under this section which has been previously transferred to such taxpayer under this paragraph. For purposes of section 141(b)(1), any benefit derived by an eligible project partner in connection with an election under this section shall not be taken into account as a private business use. The Secretary may prescribe such regulations as may be appropriate to carry out the purposes of this section, including— rules for determining which persons are eligible project partners with respect to any energy property, and requiring information to be included in an election under subsection
(f)or imposing additional reporting requirements. This section shall apply to taxable years ending before January 1, 2050. . The amendments made by this section shall apply to taxable years beginning after December 31, 2020.