Sec. 70513. Termination and restrictions on clean electricity investment credit
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Section 48E(e) is amended— in paragraph (1), by striking The amount of and inserting Subject to paragraph (4), the amount of , and by adding at the end the following new paragraph: This section shall not apply to any qualified property placed in service by the taxpayer after December 31, 2027, which is part of an applicable facility. For purposes of this paragraph, the term applicable facility means a qualified facility which— uses wind to produce electricity (within the meaning of such term as used in section 45(d)(1), as determined without regard to any requirement under such section with respect to the date on which construction of property begins), or uses solar energy to produce electricity (within the meaning of such term as used in section 45(d)(4), as determined without regard to any requirement under such section with respect to the date on which construction of property begins).
This paragraph shall not apply with respect to any energy storage technology which is placed in service at any applicable facility. . Section 48E is amended— in subsection (b)— by redesignating paragraph
(6)as paragraph (7), and by inserting after paragraph
(5)the following new paragraph: The terms qualified facility and qualified interconnection property shall not include any facility or property the construction, reconstruction, or erection of which begins after December 31, 2025, if the construction, reconstruction, or erection of such facility or property includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)). , and in subsection (c), by adding at the end the following new paragraph: The term energy storage technology shall not include any property the construction of which begins after December 31, 2025, if the construction of such property includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)). . Section 48E(d) is amended by adding at the end the following new paragraph: No credit shall be determined under subsection
(a)for any taxable year if the taxpayer is— a specified foreign entity (as defined in section 7701(a)(51)(B)), or a foreign-influenced entity (as defined in section 7701(a)(51)(D), without regard to clause (i)(II) thereof). In the case of a taxpayer for which section 7701(a)(51)(D)(i)(II) is determined to apply for any taxable year, no credit shall be determined under subsection
(a)for such taxable year if such determination relates to a qualified facility described in subsection (b)(3) or energy storage technology described in subsection (c)(2). . Section 50(a) is amended— by redesignating paragraphs
(4)through
(6)as paragraphs
(5)through (7), respectively, by inserting after paragraph
(3)the following new paragraph: If there is an applicable payment made by a specified taxpayer before the close of the 10-year period beginning on the date such taxpayer placed in service investment credit property which is eligible for the clean electricity investment credit under section 48E(a), then the tax under this chapter for the taxable year in which such applicable payment occurs shall be increased by 100 percent of the aggregate decrease in the credits allowed under section 38 for all prior taxable years which would have resulted solely from reducing to zero any credit determined under section 46 which is attributable to the clean electricity investment credit under section 48E(a) with respect to such property. For purposes of this paragraph, the term applicable payment means, with respect to any taxable year, a payment or payments described in section 7701(a)(51)(D)(i)(II). For purposes of this paragraph, the term specified taxpayer means any taxpayer who has been allowed a credit under section 48E(a) for any taxable year beginning after the date which is 2 years after the date of enactment of this paragraph. , in paragraph (5), as redesignated by clause (i), by striking or any applicable transaction to which paragraph (3)(A) applies, and inserting any applicable transaction to which paragraph (3)(A) applies, or any applicable payment to which paragraph (4)(A) applies, , and in paragraph (7), as redesignated by clause (i), by striking or
(3)and inserting (3), or
(4). Section 1371(d)(1) is amended by striking section 50(a)(5) and inserting section 50(a)(6) . Section 6418(g)(3) is amended by striking subsection (a)(5) each place it appears and inserting subsection (a)(7) . Section 48E is amended— by redesignating subsection
(i)as subsection (j), and by inserting after subsection
(h)the following new subsection: No credit shall be determined under this section for any qualified investment during the taxable year with respect to property described in paragraph
(1)or
(4)of section 25D(d) (as applied by substituting lessee for taxpayer ) if the taxpayer rents or leases such property to a third party during such taxable year. . Section 50 is amended by adding at the end the following new subsection: For purposes of this section and section 168, the ownership of energy property described in section 48(a)(3)(A)(vii) shall be determined without regard to whether such property is readily usable by a person other than the lessee or service recipient. . Subparagraph
(B)of section 48E(a)(3) is amended to read as follows: Rules similar to the rules of section 48(a)(12) shall apply, except that, for purposes of subparagraph
(B)of such section and the application of rules similar to the rules of section 45(b)(9)(B), the adjusted percentage (as determined under section 45(b)(9)(C)) shall be determined as follows: In the case of any qualified investment with respect to any qualified facility or energy storage technology the construction of which begins before June 16, 2025, 40 percent (or, in the case of a qualified facility which is an offshore wind facility, 20 percent). In the case of any qualified investment with respect to any qualified facility or energy storage technology the construction of which begins on or after June 16, 2025, and before January 1, 2026, 45 percent (or, in the case of a qualified facility which is an offshore wind facility, 27.5 percent). In the case of any qualified investment with respect to any qualified facility or energy storage technology the construction of which begins during calendar year 2026, 50 percent (or, in the case of a qualified facility which is an offshore wind facility, 35 percent). In the case of any qualified investment with respect to any qualified facility or energy storage technology the construction of which begins after December 31, 2026, 55 percent. . Section 48(a)(2) is amended— in subparagraph (A)(ii), by striking 2 percent and inserting 0 percent , and by adding at the end the following new subparagraph: For purposes of energy property described in subparagraph (A)(ii), the energy percentage applicable to such property pursuant to such subparagraph shall not be increased or otherwise adjusted by any provision of this section. . Section 48E, as amended by subsection (c), is amended— by redesignating subsection
(j)as subsection (k), and by inserting after subsection
(i)the following new subsection: For purposes of this section, in the case of any qualified fuel cell property (as defined in section 48(c)(1), as applied without regard to subparagraph
(E)thereof)— subsection (b)(3)(A) shall be applied without regard to clause
(iii)thereof, for purposes of subsection (a)(1), the applicable percentage shall be 30 percent and such percentage shall not be increased or otherwise adjusted by any other provision of this section, and subsection
(g)shall not apply. . Except as provided in paragraphs (2), (3), (4), and (5), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act. The amendment made by subsection
(d)shall apply on or after June 16, 2025. The amendments made by subsection
(e)shall apply to property the construction of which begins on or after June 16, 2025. The amendments made by subsection
(f)shall apply to property the construction of which begins after December 31, 2025. The amendments made by subsection
(a)shall apply to facilities the construction of which begins after the date which is 12 months after the date of enactment of this Act.