S.Amdt. 540

SA 540. Ms. CANTWELL (for herself, Mr. Bingaman, Mr. Carper, Mr.
Schumer, and Mr. Hatch) submitted an amendment intended to be proposed
to amendment SA 98 proposed by Mr. Inouye (for himself and Mr. Baucus)
to the bill H.R. 1, making supplemental appropriations for job
preservation and creation, infrastructure investment, energy efficiency
and science, assistance to the unemployed, and State and local fiscal
stabilization, for fiscal year ending September 30, 2009, and for other
purposes; which was ordered to lie on the table; as follows:

On page 457, line 15, strike ``Section'' and insert the
following:
(a) In General.--Section
On page 457, between lines 16 and 17, insert the following:
(b) Clarification With Respect to Green Community
Programs.--Clause (ii) of section 54D(f)(1)(A) is amended by
inserting ``(including the use of loans, grants, or other
repayment mechanisms to implement such programs)'' after
``green community programs''.
Beginning on page 457, line 18, strike all through page
458, line 16, and insert the following:

SEC. 1121. EXTENSION AND MODIFICATION OF CREDIT FOR
NONBUSINESS ENERGY PROPERTY.

(a) In General.--Section 25C is amended by striking
subsections (a) and (b) and inserting the following new
subsections:
``(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 30
percent of the sum of--
``(1) the amount paid or incurred by the taxpayer during
such taxable year for qualified energy efficiency
improvements, and
``(2) the amount of the residential energy property
expenditures paid or incurred by the taxpayer during such
taxable year.
``(b) Limitation.--The aggregate amount of the credits
allowed under this section for taxable years beginning in
2009 and 2010 with respect to any taxpayer shall not exceed
$1,500.''.
(b) Modifications of Standards for Energy-Efficient
Building Property.--
(1) Electric heat pumps.--Subparagraph (B) of section
25C(d)(3) is amended to read as follows:
``(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.''.
(2) Central air conditioners.--Subparagraph (C) of section
25C(d)(3) is amended by striking ``2006'' and inserting
``2009''.
(3) Water heaters.--Subparagraph (D) of section 25C(d)(3)
is amended to read as follows:
``(E) a natural gas, propane, or oil water heater which has
either an energy factor of at least 0.82 or a thermal
efficiency of at least 90 percent.''.
(4) Wood stoves.--Subparagraph (E) of section 25C(d)(3) is
amended by inserting ``, as measured using a lower heating
value'' after ``75 percent''.
(c) Modifications of Standards for Oil Furnaces and Hot
Water Boilers.--
(1) In general.--Paragraph (4) of section 25C(d) is amended
to read as follows:
``(4) Qualified natural gas, propane, and oil furnaces and
hot water boilers.--
``(A) Qualified natural gas furnace.--The term `qualified
natural gas furnace' means any natural gas furnace which
achieves an annual fuel utilization efficiency rate of not
less than 95.
``(B) Qualified natural gas hot water boiler.--The term
`qualified natural gas hot water boiler' means any natural
gas hot water boiler which achieves an annual fuel
utilization efficiency rate of not less than 90.
``(C) Qualified propane furnace.--The term `qualified
propane furnace' means any propane furnace which achieves an
annual fuel utilization efficiency rate of not less than 95.
``(D) Qualified propane hot water boiler.--The term
`qualified propane hot water boiler' means any propane hot
water boiler which achieves an annual fuel utilization
efficiency rate of not less than 90.
``(E) Qualified oil furnaces.--The term `qualified oil
furnace' means any oil furnace which achieves an annual fuel
utilization efficiency rate of not less than 90.
``(F) Qualified oil hot water boiler.--The term `qualified
oil hot water boiler' means any oil hot water boiler which
achieves an annual fuel utilization efficiency rate of not
less than 90.''.
(2) Conforming amendment.--Clause (ii) of section
25C(d)(2)(A) is amended to read as follows:
``(ii) any qualified natural gas furnace, qualified propane
furnace, qualified oil furnace, qualified natural gas hot
water boiler, qualified propane hot water boiler, or
qualified oil hot water boiler, or''.
(d) Modifications of Standards for Qualified Energy
Efficiency Improvements.--
(1) Qualifications for exterior windows, doors, and
skylights.--Subsection (c) of section 25C is amended by
adding at the end the following new paragraph:
``(4) Qualifications for exterior windows, doors, and
skylights.--Such term shall not include any component
described in subparagraph (B) or (C) of paragraph (2) unless
such component is equal to or below a U factor of 0.30 and
SHGC of 0.30.''.
(2) Additional qualification for insulation.--Subparagraph
(A) of section 25C(c)(2) is amended by inserting ``and meets
the prescriptive criteria for such material or system
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'' after ``such dwelling unit''.
(e) Extension.--Section 25C(g)(2) is amended by striking
``December 31, 2009'' and inserting ``December 31, 2010''.
(f) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to taxable years
beginning after December 31, 2008.
(2) Efficiency standards.--The amendments made by
paragraphs (1), (2), and (3) of subsection (b) and
subsections (c) and (d) shall apply to property placed in
service after December 31, 2009.
On page 461, strike lines 8 to 10 and insert the following:
(b) Ensuring Consumer Accessibility to Alternative Fuel
Vehicle Refueling Property in the Case of Electricity.--
Section 179(d)(3) is amended by striking subparagraph (B) and
inserting the following:
``(B) for the recharging of motor vehicles propelled by
electricity, but only if--
``(i) the property complies with the Society of Automotive
Engineers' connection standards,
``(ii) the property provides for non-restrictive access for
charging and for payment interoperability with other systems,
and
``(iii) the property--

``(I) is located on property owned by the taxpayer, or
``(II) is located on property owned by another person, is
placed in service with the permission of such other person,
and is fully maintained by the taxpayer.''.

(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2008.

SEC. 1124. RECOVERY PERIOD FOR DEPRECIATION OF SMART METERS
AND SMART GRID SYSTEMS.

(a) 5-Year Recovery Period.--
(1) In general.--Subparagraph (B) of section 168(e)(3) is
amended by striking ``and'' at the end of clause (vi), by
striking the period at the end of clause (vii) and inserting
``, and'', and by adding at the end the following new
clauses:
``(viii) any qualified smart electric meter, and
``(ix) any qualified smart electric grid system.''.
(2) Conforming amendments.--Subparagraph (D) of section
168(e)(3) is amended by inserting ``and'' at the end of
clause (i), by striking the comma at the end of clause (ii)
and inserting a period, and by striking clauses (iii) and
(iv).

[[Page S1873]]

(b) Technical Amendments.--Paragraphs (18)(A)(ii) and
(19)(A)(ii) of section 168(i) are each amended by striking
``16 years'' and inserting ``10 years''.
(c) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to property
placed in service after the date of the enactment of this
Act.
(2) Technical amendment.--The amendments made by subsection
(b) shall take effect as if included in section 306 of the
Energy Improvement and Extension Act of 2008.
On page 467, strike lines 1 through 18, and insert the
following:

PART VI--MODIFICATION OF CREDIT FOR CARBON DIOXIDE SEQUESTRATION

SEC. 1151. APPLICATION OF MONITORING REQUIREMENTS TO CARBON
DIOXIDE USED AS A TERTIARY INJECTANT.

(a) In General.--Section 45Q(a)(2) is amended by striking
``and'' at the end of subparagraph (A), by striking the
period at the end of subparagraph (B) and inserting ``,
and'', and by adding at the end the following new
subparagraph:
``(C) disposed of by the taxpayer in secure geological
storage.''.
(b) Conforming Amendments.--
(1) Section 45Q(d)(2) is amended--
(A) by striking ``subsection (a)(1)(B)'' and inserting
``paragraph (1)(B) or (2)(C) of subsection (a)'',
(B) by striking ``and unminable coal seems'' and inserting
``, oil and gas reservoirs, and unminable coal seams'', and
(C) by inserting ``the Secretary of Energy, and the
Secretary of the Interior,'' after ``Environmental Protection
Agency''.
(2) Section 45Q(e) is amended by striking ``captured and
disposed of or used as a tertiary injectant'' and inserting
``taken into account in accordance with subsection (a)''.
(c) Effective Date.--The amendments made by this section
shall apply to carbon dioxide captured after the date of the
enactment of this Act.
Beginning on page 467, strike line 21 and all that follows
through page 470, line 23, and insert the following:

SEC. 1161. MODIFICATION OF CREDIT FOR QUALIFIED PLUG-IN
ELECTRIC MOTOR VEHICLES.

(a) Increase in Vehicles Eligible for Credit.--Section
30D(b)(2)(B) is amended by striking ``250,000'' and inserting
``500,000''.
(b) Exclusion of Neighborhood Electric Vehicles From
Existing Credit.--Section 30D(e)(1) is amended to read as
follows:
``(1) Motor vehicle.--The term `motor vehicle' means a
motor vehicle (as defined in section 30(c)(2)), which is
treated as a motor vehicle for purposes of title II of the
Clean Air Act.''.
(c) Credit for Certain Other Vehicles.--Section 30D is
amended--
(1) by redesignating subsections (f) and (g) as subsections
(g) and (h), respectively, and
(2) by inserting after subsection (e) the following new
subsection:
``(f) Credit for Certain Other Vehicles.--For purposes of
this section--
``(1) In general.--In the case of a specified vehicle, this
section shall be applied with the following modifications:
``(A) For purposes of subsection (a)(1), in lieu of the
applicable amount determined under subsection (a)(2), the
applicable amount shall be 10 percent of so much of the cost
of the specified vehicle as does not exceed $40,000.
``(B) Subsection (b) shall not apply and no specified
vehicle shall be taken into account under subsection (b)(2).
``(C) In the case of a specified vehicle which is a 2-or 3-
wheeled motor vehicle, subsection (c)(1) shall be applied by
substituting `2.5 kilowatt hours' for `4 kilowatt hours'.
``(D) In the case of a specified vehicle which is a low-
speed motor vehicle, subsection (c)(3) shall not apply.
``(2) Specified vehicle.--For purposes of this subsection--
``(A) In general.--The term `specified vehicle' means--
``(i) any 2- or 3- wheeled motor vehicle, or
``(ii) any low-speed motor vehicle,
which is placed in service after December 31, 2009, and
before January 1, 2012.
``(B) 2- or 3-wheeled motor vehicle.--The term `2- or 3-
wheeled motor vehicle' means any vehicle--
``(i) which would be described in section 30(c)(2) except
that it has 2 or 3 wheels,
``(ii) with motive power having a seat or saddle for the
use of the rider and designed to travel on not more than 3
wheels in contact with the ground,
``(iii) which has an electric motor that produces in excess
of 5-brake horsepower,
``(iv) which draws propulsion from 1 or more traction
batteries, and
``(v) which has been certified to the Department of
Transportation pursuant to section 567 of title 49, Code of
Federal Regulations, as conforming to all applicable Federal
motor vehicle safety standards in effect on the date of the
manufacture of the vehicle.
``(C) Low-speed motor vehicle.--The term `low-speed motor
vehicle' means a motor vehicle (as defined in section
30(c)(2)) which--
``(i) is placed in service after December 31, 2009, and
``(ii) meets the requirements of section 571.500 of title
49, Code of Federal Regulations.''.
(d) Effective Dates.--
(1) In general.--The amendment made by subsections (a) and
(c) shall take effect on the date of the enactment of this
Act.
(2) Other modifications.--The amendments made by subsection
(b) shall apply to property placed in service after December
31, 2009, in taxable years beginning after such date.

SEC. 1162. CONVERSION KITS.

(a) In General.--Section 30B (relating to alternative motor
vehicle credit) is amended by redesignating subsections (i)
and (j) as subsections (j) and (k), respectively, and by
inserting after subsection (h) the following new 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) Definitions and special rules.--For purposes of this
subsection--
``(A) Qualified plug-in electric drive motor vehicle.--The
term `qualified plug-in electric drive motor vehicle' means
any new qualified plug-in electric drive motor vehicle (as
defined in section 30D(c), determined without regard to
paragraphs (4) and (6) thereof).
``(B) Plug-in traction battery module.--The term `plug-in
traction battery module' means an electro-chemical energy
storage device which--
``(i) which has a traction battery capacity of not less
than 2.5 kilowatt hours,
``(ii) which is equipped with an electrical plug by means
of which it can be energized and recharged when plugged into
an external source of electric power,
``(iii) which consists of a standardized configuration and
is mass produced,
``(iv) which has been tested and approved by the National
Highway Transportation Safety Administration as compliant
with applicable motor vehicle and motor vehicle equipment
safety standards when installed by a mechanic with
standardized training in protocols established by the battery
manufacturer as part of a nationwide distribution program,
``(v) which complies with the requirements of section 32918
of title 49, United States Code, and
``(vi) which is certified by a battery manufacturer as
meeting the requirements of clauses (i) through (v).
``(C) Credit allowed to lessor of battery module.--In the
case of a plug-in traction battery module which is leased to
the taxpayer, the credit allowed under this subsection shall
be allowed to the lessor of the plug-in traction battery
module.
``(D) 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.
``(3) Termination.--This subsection shall not apply to
conversions made after December 31, 2012.''.
(b) Credit Treated as Part of Alternative Motor Vehicle
Credit.--Section 30B(a) is amended by striking ``and'' at the
end of paragraph (3), by striking the period at the end of
paragraph (4) and inserting ``, and'', and by adding at the
end the following new paragraph:
``(5) the plug-in conversion credit determined under
subsection (i).''.
(c) No Recapture for Vehicles Converted to Qualified Plug-
in Electric Drive Motor Vehicles.--Paragraph (8) of section
30B(h) is amended by adding at the end the following: ``,
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.''.
(d) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2008, in taxable years beginning after such date.
Beginning on page 518, strike line 1 and all that follows
through page 521, line 23, and insert the following:
``(2) Certain qualified progress expenditures rules made
applicable.--Rules similar to the rules of subsections (c)(4)
and (d) of section 46 (as in effect on the day before the
enactment of the Revenue Reconciliation Act of 1990) shall
apply for purposes of this section.
``(3) Limitation.--The amount which is treated for all
taxable years with respect to any qualifying advanced energy
project shall not exceed the amount designated by the
Secretary as eligible for the credit under this section.
``(c) Definitions.--
``(1) Qualifying advanced energy project.--
``(A) In general.--The term `qualifying advanced energy
project' means a project--
``(i) which re-equips, expands, or establishes a
manufacturing facility for the production of property which
is--

``(I) designed to be used to produce energy from the sun,
wind, geothermal deposits (within the meaning of section
613(e)(2)), or other renewable resources,
``(II) designed to manufacture fuel cells, microturbines,
or an energy storage system for use with electric or hybrid-
electric motor vehicles,

[[Page S1874]]

``(III) designed to manufacture electric grids to support
the transmission of intermittent sources of renewable energy,
including storage of such energy,
``(IV) designed to capture and sequester carbon dioxide
emissions,
``(V) designed to refine or blend renewable fuels or to
produce energy conservation technologies (including energy-
conserving lighting technologies and smart grid
technologies), or
``(VI) other advanced energy property designed to reduce
greenhouse gas emissions as may be determined by the
Secretary, and

``(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.
``(B) Exception.--Such term shall not include any portion
of a project for the production of any property which is used
in the refining or blending of any transportation fuel (other
than renewable fuels).
``(2) Eligible property.--The term `eligible property'
means any property which is part of a qualifying advanced
energy project and is necessary for the production of
property described in paragraph (1)(A)(i).
``(d) Qualifying Advanced Energy Project Program.--
``(1) Establishment.--
``(A) In general.--Not later than 180 days after the date
of enactment of this section, the Secretary, in consultation
with the Secretary of Energy, shall establish a qualifying
advanced energy project program to consider and award
certifications for qualified investments eligible for credits
under this section to qualifying advanced energy project
sponsors.
``(B) Limitation.--The total amount of credits that may be
allocated under the program shall not exceed $2,000,000,000.
``(2) Certification.--
``(A) Application period.--Each applicant for certification
under this paragraph shall submit an application containing
such information as the Secretary may require during the 3-
year period beginning on the date the Secretary establishes
the program under paragraph (1).
``(B) Time to meet criteria for certification.--Each
applicant for certification shall have 2 years from the date
of acceptance by the Secretary of the application during
which to provide to the Secretary evidence that the
requirements of the certification have been met.
``(C) Period of issuance.--An applicant which receives a
certification shall have 5 years from the date of issuance of
the certification in order to place the project in service
and if such project is not placed in service by that time
period then the certification shall no longer be valid.
``(3) Selection criteria.--In determining which qualifying
advanced energy projects to certify under this section, the
Secretary--
``(A) shall take into consideration only those projects
where there is a reasonable expectation of commercial
viability, and
``(B) shall take into consideration which projects--
``(i) will provide the greatest domestic job creation (both
direct and indirect) during the credit period,
``(ii) will provide the greatest net impact in avoiding or
reducing air pollutants or anthropogenic emissions of
greenhouse gases,
``(iii) have the greatest readiness for commercial
employment, replication, and further commercial use in the
United States,
``(iv) will provide the greatest benefit in terms of
newness in the commercial market,
``(v) have the lowest levelized cost of generated or stored
energy, or of measured reduction in energy consumption or
greenhouse gas emission (based on costs of the full supply
chain), and
``(vi) have the shortest project time from certification to
completion.
On page 524, after line 3, insert the following:

SEC. 1303. INCENTIVES FOR MANUFACTURING FACILITIES PRODUCING
PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES AND
COMPONENTS.

(a) Deduction for Manufacturing Facilities.--Part VI of
subchapter B of chapter 1 (relating to itemized deductions
for individuals and corporations) is amended by inserting
after section 179E the following new section:

``SEC. 179F. ELECTION TO EXPENSE MANUFACTURING FACILITIES
PRODUCING PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES
AND COMPONENTS.

``(a) Treatment as Expenses.--A taxpayer may elect to treat
the applicable percentage of the cost of any qualified plug-
in electric drive motor vehicle manufacturing facility
property as an expense which is not chargeable to a capital
account. Any cost so treated shall be allowed as a deduction
for the taxable year in which the qualified manufacturing
facility property is placed in service.
``(b) Applicable Percentage.--For purposes of subsection
(a), the applicable percentage is--
``(1) 100 percent, in the case of qualified plug-in
electric drive motor vehicle manufacturing facility property
which is placed in service before January 1, 2012, and
``(2) 50 percent, in the case of qualified plug-in electric
drive motor vehicle manufacturing facility property which is
placed in service after December 31, 2011, and before January
1, 2015.
``(c) Election.--
``(1) In general.--An election under this section for any
taxable year shall be made on the taxpayer's return of the
tax imposed by this chapter for the taxable year. Such
election shall be made in such manner as the Secretary may by
regulations prescribe.
``(2) Election irrevocable.--Any election made under this
section may not be revoked except with the consent of the
Secretary.
``(d) Qualified Plug-In Electric Drive Motor Vehicle
Manufacturing Facility Property.--For purposes of this
section--
``(1) In general.--The term `qualified plug-in electric
drive motor vehicle manufacturing facility property' means
any qualified property--
``(A) the original use of which commences with the
taxpayer,
``(B) which is placed in service by the taxpayer after the
date of the enactment of this section and before January 1,
2015, and
``(C) no written binding contract for the construction of
which was in effect on or before the date of the enactment of
this section.
``(2) Qualified property.--
``(A) In general.--The term `qualified property' means any
property which is a facility or a portion of a facility used
for the production of--
``(i) any new qualified plug-in electric drive motor
vehicle (as defined by section 30D(c)), or
``(ii) any eligible component.
``(B) Eligible component.--The term `eligible component'
means any battery, any electric motor or generator, or any
power control unit which is designed specifically for use
with a new qualified plug-in electric drive motor vehicle (as
so defined).
``(e) Special Rule for Dual Use Property.--In the case of
any qualified plug-in electric drive motor vehicle
manufacturing facility property which is used to produce both
qualified property and other property which is not qualified
property, the amount of costs taken into account under
subsection (a) shall be reduced by an amount equal to--
``(1) the total amount of such costs (determined before the
application of this subsection), multiplied by
``(2) the percentage of property expected to be produced
which is not qualified property.
``(f) Election to Receive Loan in Lieu of Deduction.--
``(1) In general.--If a taxpayer elects to have this
subsection apply for any taxable year--
``(A) subsection (a) shall not apply to any qualified plug-
in electric drive motor vehicle manufacturing facility
property placed in service by the taxpayer,
``(B) such taxpayer shall receive a loan from the Secretary
in an amount and under such terms as provided in section
1303(b) of the American Recovery and Reinvestment Tax Act of
2009, and
``(C) in the taxable year in which such qualified loan is
repaid, each of the limitations described in paragraph (2)
shall be increased by the qualified plug-in electric drive
motor vehicle manufacturing facility amount which is--
``(i) determined under paragraph (3), and
``(ii) allocated to such limitation under paragraph (4).
``(2) Limitations to be increased.--The limitations
described in this paragraph are--
``(A) the limitation imposed by section 38(c), and
``(B) the limitation imposed by section 53(c).
``(3) Qualified plug-in electric drive motor vehicle
manufacturing facility amount.--For purposes of this
paragraph--
``(A) In general.--The qualified plug-in electric drive
motor vehicle manufacturing facility amount is an amount
equal to the applicable percentage of any qualified plug-in
electric drive motor vehicle manufacturing facility which is
placed in service during the taxable year.
``(B) Applicable percentage.--For purposes of subparagraph
(A), the applicable percentage is--
``(i) 35 percent, in the case of qualified plug-in electric
drive motor vehicle manufacturing facility property which is
placed in service before January 1, 2012, and
``(ii) 17.5 percent, in the case of qualified plug-in
electric drive motor vehicle manufacturing facility property
which is placed in service after December 31, 2011, and
before January 1, 2015.
``(C) Special rule for dual use property.--In the case of
any qualified plug-in electric drive motor vehicle
manufacturing facility property which is used to produce both
qualified property and other property which is not qualified
property, the amount of costs taken into account under
subparagraph (A) shall be reduced by an amount equal to--
``(i) the total amount of such costs (determined before the
application of this subparagraph), multiplied by
``(ii) the percentage of property expected to be produced
which is not qualified property.
``(4) Allocation of qualified plug-in electric drive motor
vehicle manufacturing facility amount.--The taxpayer shall,
at such time and in such manner as the Secretary may
prescribe, specify the portion (if any) of the qualified
plug-in electric drive motor vehicle manufacturing facility
amount for the taxable year which is to be allocated to each
of the limitations described in paragraph (2) for such
taxable year.
``(5) Election.--
``(A) In general.--An election under this subsection for
any taxable year shall be

[[Page S1875]]

made on the taxpayer's return of the tax imposed by this
chapter for the taxable year. Such election shall be made in
such manner as the Secretary may by regulations prescribe.
``(B) Election irrevocable.--Any election made under this
subsection may not be revoked except with the consent of the
Secretary.''.
(b) Loan Program.--
(1) In general.--The Secretary of the Treasury (or the
Secretary's delegate) shall provide a loan to any person who
is allowed a deduction under section 179F of the Internal
Revenue Code and who makes an election under section 179F(f)
of such Code in an amount equal to the qualified plug-in
electric drive motor vehicle manufacturing facility amount
(as defined in such section 179F(f)).
(2) Term.--Such loan shall be in the form of a senior note
issued by the taxpayer to the Secretary of the Treasury,
secured by the qualified plug-in electric drive motor vehicle
manufacturing facility property (as defined in section 179F
of the Internal Revenue Code of 1986) of the taxpayer, and
having a term of 20 years and interest payable at the
applicable Federal rate (as determined under section 1274(d)
of the Internal Revenue Code of 1986).
(3) Appropriations.--There is hereby appropriated to the
Secretary of the Treasury such sums as may be necessary to
carry out this subsection.
(c) Clerical Amendment.--The table of sections for part VI
of subchapter B of chapter 1 is amended by adding at the end
the following new item:

``Sec. 179F. Election to expense manufacturing facilities producing
plug-in electric drive motor vehicle and components.''.

(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
______