Sec. 13101. Extension and modification of credit for electricity produced from certain renewable resources
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The following provisions of section 45(d) are each amended by striking January 1, 2022 each place it appears and inserting January 1, 2025 : Paragraph (2)(A). Paragraph (3)(A). Paragraph (6). Paragraph (7). Paragraph (9). Paragraph (11)(B). Section 45 is amended— in subsection (a)(1), by striking 1.5 cents and inserting 0.3 cents , and in subsection (b)(2), by striking 1.5 cent and inserting 0.3 cent . Section 45(d)(4) is amended by striking and which and all that follows through January 1, 2022 and inserting and the construction of which begins before January 1, 2025 .
Section 48(a)(5)(C)(ii) is amended by striking January 1, 2022 and inserting January 1, 2025 . Section 45(d)(1) is amended by striking January 1, 2022 and inserting January 1, 2025 . Section 45(b)(5) is amended by inserting which is placed in service before January 1, 2022 after using wind to produce electricity . Section 48(a)(5)(E) is amended by inserting placed in service before January 1, 2022, and before treated as energy property . Section 48(a)(5)(F)(i) is amended by striking offshore wind facility and all that follows and inserting the following: offshore wind facility, subparagraph
(E)shall not apply. . Section 45(b) is amended by adding at the end the following new paragraphs: In the case of any qualified facility which satisfies the requirements of subparagraph (B), the amount of the credit determined under subsection
(a)(determined after the application of paragraphs
(1)through
(5)and without regard to this paragraph) shall be equal to such amount multiplied by 5. A qualified facility meets the requirements of this subparagraph if it is one of the following: A facility with a maximum net output of less than 1 megawatt (as measured in alternating current). A facility the construction of which begins prior to the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (7)(A) and (8). A facility which satisfies the requirements of paragraphs (7)(A) and (8). The requirements described in this subparagraph with respect to any qualified facility are that the taxpayer shall ensure that any laborers and mechanics employed by the taxpayer or any contractor or subcontractor in— the construction of such facility, and with respect to any taxable year, for any portion of such taxable year which is within the period described in subsection (a)(2)(A)(ii), the alteration or repair of such facility, shall be paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality in which such facility is located as most recently determined by the Secretary of Labor, in accordance with subchapter IV of chapter 31 of title 40, United States Code. For purposes of determining an increased credit amount under paragraph (6)(A) for a taxable year, the requirement under clause
(ii)is applied to such taxable year in which the alteration or repair of the qualified facility occurs.” In the case of any taxpayer which fails to satisfy the requirement under subparagraph
(A)with respect to the construction of any qualified facility or with respect to the alteration or repair of a facility in any year during the period described in subparagraph (A)(ii), such taxpayer shall be deemed to have satisfied such requirement under such subparagraph with respect to such facility for any year if, with respect to any laborer or mechanic who was paid wages at a rate below the rate described in such subparagraph for any period during such year, such taxpayer— makes payment to such laborer or mechanic in an amount equal to the sum of— an amount equal to the difference between— the amount of wages paid to such laborer or mechanic during such period, and the amount of wages required to be paid to such laborer or mechanic pursuant to such subparagraph during such period, plus interest on the amount determined under item
(aa)at the underpayment rate established under section 6621 (determined by substituting 6 percentage points for 3 percentage points in subsection (a)(2) of such section) for the period described in such item, and makes payment to the Secretary of a penalty in an amount equal to the product of— $5,000, multiplied by the total number of laborers and mechanics who were paid wages at a rate below the rate described in subparagraph
(A)for any period during such year. Subchapter B of chapter 63 (relating to deficiency procedures for income, estate, gift, and certain excise taxes) shall not apply with respect to the assessment or collection of any penalty imposed by this paragraph. If the Secretary determines that any failure described in clause
(i)is due to intentional disregard of the requirements under subparagraph (A), such clause shall be applied— in subclause (I), by substituting three times the sum for the sum , and in subclause (II), by substituting $10,000 for 5,000 in item
(aa)thereof. Pursuant to rules issued by the Secretary, in the case of a final determination by the Secretary with respect to any failure by the taxpayer to satisfy the requirement under subparagraph (A), subparagraph (B)(i) shall not apply unless the payments described in subclauses
(I)and
(II)of such subparagraph are made by the taxpayer on or before the date which is 180 days after the date of such determination. The requirements described in this paragraph with respect to the construction of any qualified facility are as follows: Taxpayers shall ensure that, with respect to the construction of any qualified facility, not less than the applicable percentage of the total labor hours of the construction, alteration, or repair work (including such work performed by any contractor or subcontractor) with respect to such facility shall, subject to subparagraph (B), be performed by qualified apprentices. For purposes of clause (i), the applicable percentage shall be— in the case of a qualified facility the construction of which begins before January 1, 2023, 10 percent, in the case of a qualified facility the construction of which begins after December 31, 2022, and before January 1, 2024, 12.5 percent, and in the case of a qualified facility the construction of which begins after December 31, 2023, 15 percent. The requirement under subparagraph (A)(i) shall be subject to any applicable requirements for apprentice-to-journeyworker ratios of the Department of Labor or the applicable State apprenticeship agency. Each taxpayer, contractor, or subcontractor who employs 4 or more individuals to perform construction, alteration, or repair work with respect to the construction of a qualified facility shall employ 1 or more qualified apprentices to perform such work. A taxpayer shall not be treated as failing to satisfy the requirements of this paragraph if such taxpayer— satisfies the requirements described in clause (ii), or subject to clause (iii), in the case of any failure by the taxpayer to satisfy the requirement under subparagraphs
(A)and
(C)with respect to the construction, alteration, or repair work on any qualified facility to which subclause
(I)does not apply, makes payment to the Secretary of a penalty in an amount equal to the product of— $50, multiplied by the total labor hours for which the requirement described in such subparagraph was not satisfied with respect to the construction, alteration, or repair work on such qualified facility. For purposes of clause (i), a taxpayer shall be deemed to have satisfied the requirements under this paragraph with respect to a qualified facility if such taxpayer has requested qualified apprentices from a registered apprenticeship program, as defined in section 3131(e)(3)(B), and— such request has been denied, provided that such denial is not the result of a refusal by the taxpayer or any contractors or subcontractors engaged in the performance of construction, alteration, or repair work with respect to such qualified facility to comply with the established standards and requirements of the registered apprenticeship program, or the registered apprenticeship program fails to respond to such request within 5 business days after the date on which such registered apprenticeship program received such request. If the Secretary determines that any failure described in subclause (i)(II) is due to intentional disregard of the requirements under subparagraphs
(A)and (C), subclause (i)(II) shall be applied by substituting $500 for $50 in item
(aa)thereof. For purposes of this paragraph— The term labor hours — means the total number of hours devoted to the performance of construction, alteration, or repair work by any individual employed by the taxpayer or by any contractor or subcontractor, and excludes any hours worked by— foremen, superintendents, owners, or persons employed in a bona fide executive, administrative, or professional capacity (within the meaning of those terms in part 541 of title 29, Code of Federal Regulations). The term qualified apprentice means an individual who is employed by the taxpayer or by any contractor or subcontractor and who is participating in a registered apprenticeship program, as defined in section 3131(e)(3)(B). The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this subsection, including regulations or other guidance which provides for requirements for recordkeeping or information reporting for purposes of administering the requirements of this subsection. . Section 45(b), as amended by subsection (f), is amended— by redesignating paragraph
(9)as paragraph (12), and by inserting after paragraph
(8)the following: In the case of any qualified facility which satisfies the requirement under subparagraph (B)(i), the amount of the credit determined under subsection
(a)(determined after the application of paragraphs
(1)through (8)) shall be increased by an amount equal to 10 percent of the amount so determined. The requirement described in this clause is satisfied with respect to any qualified facility if the taxpayer certifies to the Secretary (at such time, and in such form and manner, as the Secretary may prescribe) that any steel, iron, or manufactured product which is a component of such facility (upon completion of construction) was produced in the United States (as determined under section 661 of title 49, Code of Federal Regulations). In the case of steel or iron, clause
(i)shall be applied in a manner consistent with section 661.5 of title 49, Code of Federal Regulations. For purposes of clause (i), the manufactured products which are components of a qualified facility upon completion of construction shall be deemed to have been produced in the United States if not less than the adjusted percentage (as determined under subparagraph (C)) of the total costs of all such manufactured products of such facility are attributable to manufactured products (including components) which are mined, produced, or manufactured in the United States. Subject to subclause (ii), for purposes of subparagraph (B)(iii), the adjusted percentage shall be 40 percent. For purposes of subparagraph (B)(iii), in the case of a qualified facility which is an offshore wind facility, the adjusted percentage shall be 20 percent. In the case of a taxpayer making an election under section 6417 with respect to a credit under this section, the amount of such credit shall be replaced with— the value of such credit (determined without regard to this paragraph), multiplied by the applicable percentage. In the case of any qualified facility— which satisfies the requirements under paragraph (9)(B), or with a maximum net output of less than 1 megawatt (as measured in alternating current), the applicable percentage shall be 100 percent. Subject to subparagraph (D), in the case of any qualified facility which is not described in subparagraph (B), the applicable percentage shall be— if construction of such facility began before January 1, 2024, 100 percent, and if construction of such facility began in calendar year 2024, 90 percent. For purposes of this paragraph, the Secretary shall provide exceptions to the requirements under this paragraph if— the inclusion of steel, iron, or manufactured products which are produced in the United States increases the overall costs of construction of qualified facilities by more than 25 percent, or relevant steel, iron, or manufactured products are not produced in the United States in sufficient and reasonably available quantities or of a satisfactory quality. In any case in which the Secretary provides an exception pursuant to clause (i), the applicable percentage shall be 100 percent. In the case of a qualified facility which is located in an energy community, the credit determined under subsection
(a)(determined after the application of paragraphs
(1)through (10), without the application of paragraph (9)) shall be increased by an amount equal to 10 percent of the amount so determined. For purposes of this paragraph, the term energy community means— a brownfield site (as defined in subparagraphs (A), (B), and (D)(ii)(III) of section 101(39) of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 ( 42 U.S.C. 9601(39) )), a metropolitan statistical area or non-metropolitan statistical area which— has (or, at any time during the period beginning after December 31, 2009, had) 0.17 percent or greater direct employment or 25 percent or greater local tax revenues related to the extraction, processing, transport, or storage of coal, oil, or natural gas (as determined by the Secretary), and has an unemployment rate at or above the national average unemployment rate for the previous year (as determined by the Secretary), or a census tract— in which— after December 31, 1999, a coal mine has closed, or after December 31, 2009, a coal-fired electric generating unit has been retired, or which is directly adjoining to any census tract described in subclause (I). . Section 45(b)(3) is amended to read as follows: The amount of the credit determined under subsection
(a)with respect to any facility for any taxable year (determined after the application of paragraphs
(1)and (2)) shall be reduced by the amount which is the product of the amount so determined for such year and the lesser of 15 percent or a fraction— the numerator of which is the sum, for the taxable year and all prior taxable years, of proceeds of an issue of any obligations the interest on which is exempt from tax under section 103 and which is used to provide financing for the qualified facility, and the denominator of which is the aggregate amount of additions to the capital account for the qualified facility for the taxable year and all prior taxable years. The amounts under the preceding sentence for any taxable year shall be determined as of the close of the taxable year. . Section 45(b)(2) is amended by striking the second sentence and inserting the following: If the 0.3 cent amount as increased under the preceding sentence is not a multiple of 0.05 cent, such amount shall be rounded to the nearest multiple of 0.05 cent. In any other case, if an amount as increased under this paragraph is not a multiple of 0.1 cent, such amount shall be rounded to the nearest multiple of 0.1 cent. . Section 45(b)(4)(A) is amended by striking last sentence and inserting last two sentences . Section 45(b)(4)(A), as amended by the preceding provisions of this section, is amended by striking (7), (9), or
(11)and inserting or
(7). Section 45 is amended— in subsection (c)(10)(A)— in clause (iii), by striking or , in clause (iv), by striking the period at the end and inserting , or and by adding at the end the following: pressurized water used in a pipeline (or similar man-made water conveyance) which is operated— for the distribution of water for agricultural, municipal, or industrial consumption, and not primarily for the generation of electricity. , and in subsection (d)(11)(A), by striking 150 and inserting 25 . Except as provided in paragraphs
(2)and (3), the amendments made by this section shall apply to facilities placed in service after December 31, 2021. The amendment made by subsection
(h)shall apply to facilities the construction of which begins after the date of enactment of this Act. The amendments made by subsections
(g)and
(j)shall apply to facilities placed in service after December 31, 2022.
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Sec. 13101
Extension and modification of credit for electricity produced from certain renewable resources
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