Sec. 301. Zero-emission electricity acceleration investment tax credit
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Subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 48C the following new section: For purposes of section 46, in the case of a taxpayer who is a qualified zero-emission electricity taxpayer, the zero-emission electricity acceleration investment credit shall be the applicable percentage of the cost of any qualified zero-emission electricity generating unit. For purposes of this section— Except as provided in paragraph (2), with respect to qualified zero-emission electricity generating units placed in service after the date of the enactment of this section, the applicable percentage shall be determined under the following table:
In the case of property placed in service in a taxable year beginning in: The applicable percentage shall be: Any year before 2026 50% 2026 48% 2027 46% 2028 44% 2029 42% 2030 40% 2031 38% 2032 36% 2033 34% 2034 32% 2035 30% Any year thereafter 0% In the case of a taxpayer who is a qualified zero-emission electricity taxpayer solely by reason of subsection (c)(3)(B), the applicable percentage shall be— in the case of property placed in service in a taxable year beginning before January 1, 2031, 7 percentage points less than the applicable percentage otherwise determined with respect to such property for the taxable year under paragraph (1), and in the case of property placed in service in any taxable year beginning after December 31, 2030, zero.
For purposes of this section— The term qualified zero-emission electricity generating unit means a generating unit— that is placed into service after the date of enactment of this section, and the operation of which does not result in the release of carbon dioxide into the atmosphere. The term generating unit has the meaning given such term in section 201 of the Clean Energy Innovation and Deployment Act of 2021 . The term qualified zero-emission electricity taxpayer means, for a taxable year, a taxpayer who— does not own a generating unit that emits carbon dioxide at any point during such taxable year, and for such taxable year, owns non-emitting electricity generating units with a generating capacity that is equal to or greater than the annual average generating capacity of generating units owned by such taxpayer during the 5-year period ending on the date of the enactment of this section.
In the case of a taxpayer not described in subparagraph
(A)who for any taxable year generates not less than 80 percent of the electricity sold by such eligible electricity provider using generating units the operation of which does not result in the release of carbon dioxide into the atmosphere (taking into account units placed in service during such taxable year), such taxpayer shall be treated as a qualified zero-emission electricity taxpayer. In the case of a taxpayer whose electricity generation capacity exceeds the annual average generating capacity of generating units owned by such taxpayer during the 5-year period ending on the date of the enactment of this section, there shall not be taken into account under subsection
(a)the cost of any qualified zero-emission electricity generating unit (or a portion thereof) placed in service to the extent, under such rules as the Secretary may by regulation prescribe, such excess generation is allocable to such qualified zero-emission electricity generating unit (or a portion thereof). If the qualified zero-emission electricity 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 zero-emission electricity generating unit 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. There shall be allowed as a deduction under part VI of subchapter B an amount equal to the amount paid by a taxpayer as consideration for a transfer described in paragraph (1). For purposes of this subsection, the term eligible project partner means, with respect to any qualified zero-emission electricity generating unit, any person who— has an ownership interest in such qualified zero-emission electricity generating unit, provided equipment for or services in the construction of such qualified zero-emission electricity generating unit, provides electric transmission or distribution services for such qualified zero-emission electricity generating unit, purchases electricity from such qualified zero-emission electricity generating unit pursuant to a contract, or provides financing for such qualified zero-emission electricity generating unit. For purposes of subparagraph (A)(v), any amount paid as consideration for a transfer described in paragraph
(1)shall not be treated as financing of a qualified zero-emission electricity generating unit. In the case of any credit (or portion thereof) with respect to which an election is made under paragraph (1), 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 this subsection 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 this subsection 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 subsection 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 subsection, 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 paragraph
(1)or imposing additional reporting requirements. This section shall apply to taxable years ending before January 1, 2050. . Section 46 of such Code is amended by striking and at the end of paragraph (5), by striking the period at the end of paragraph
(6)and inserting , and , and by adding at the end the following new paragraph: the zero-emission electricity acceleration investment credit. . Section 6431(a) of such Code, as added by this Act, is amended by striking or at the end of paragraph (2), by redesignating paragraph
(3)as paragraph (4), and by inserting after paragraph
(2)the following new paragraph: any portion of a zero-emission electricity acceleration investment credit which would (without regard to this section) be determined under section 48D originally placed in service after December 31, 2021, . Section 6431(d) of such Code, as added by this Act, is amended— by striking section 48 or the and inserting section 48, the , and by inserting after section 45 the following: , or the zero-emission electricity acceleration investment credit determined under section 48D . The penultimate sentence of section 50(d) is amended by inserting after the application of section 48(a)(5) is elected the following: or any qualified zero-emission electricity generating unit with respect to which the zero-emission electricity acceleration investment credit is determined under section 48D . The table of sections for subpart E of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 48C the following new item: Sec. 48D. Zero-emission electricity acceleration investment credit. . The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.