S.Amdt. 5396

1. Strikes section 136101

   Strikes

   In H.R. 5376 · Placed on Calendar Senate

   Struck: SEC. 136101. EXTENSION AND MODIFICATION OF CREDIT FOR ELECTRICITY PRODUCED FROM CERTAIN RENEWABLE RESOURCES.

   Struck: (a) In General.--The following provisions of section 45(d) are each amended by striking "January 1, 2022" each place it appears and inserting "January 1, 2027":

   Struck: (1) Paragraph (2)(A).

   Struck: (2) Paragraph (3)(A).

   Show 114 more struck paragraphsShow less

   Struck: (3) Paragraph (4)(B).

   Struck: (4) Paragraph (6).

   Struck: (5) Paragraph (7).

   Struck: (6) Paragraph (9).

   Struck: (7) Paragraph (11)(B).

   Struck: (b) Base Credit Amount.--Section 45 is amended by striking "1.5 cents" each place it appears and inserting "0.3 cents".

   Struck: (c) Application of Extension to Solar.--Section 45(d)(4)(A) is amended by striking "is placed in service before January 1, 2006" and inserting "the construction of which begins before January 1, 2027.".

   Struck: (d) Extension of Election to Treat Qualified Facilities as Energy Property.--Section 48(a)(5)(C)(ii) is amended by striking "January 1, 2022" and inserting "January 1, 2027".

   Struck: (e) Application of Extension to Wind Facilities.--

   Struck: (1) In general.--Section 45(d)(1) is amended by striking "January 1, 2022" and inserting "January 1, 2027".

   Struck: (2) Application of phaseout percentage.--

   Struck: (A) Renewable electricity production credit.-- Section 45(b)(5) is amended by inserting "placed in service before January 1, 2022" after "In the case of any facility".

   Struck: (B) Energy credit.--Section 48(a)(5)(E) is amended by inserting "placed in service before January 1, 2022" after "In the case of any facility".

   Struck: (3) Qualified offshore wind facilities under energy credit.--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.".

   Struck: (f) Wage and Apprenticeship Requirements.--Section 45(b) is amended by adding at the end the following new paragraphs:

   Struck: "(6) Increased credit amount for qualified facilities.--

   Struck: "(A) In general.--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)) shall be equal to such amount multiplied by 5 (determined without regard to this sentence).

   Struck: "(B) Qualified facility requirements.--A qualified facility meets the requirements of this subparagraph if it is one of the following:

   Struck: "(i) A facility with a maximum net output of less than 1 megawatt.

   Struck: "(ii) 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) and (8).

   Struck: "(iii) A facility which satisfies the requirements of paragraphs (7) and (8).

   Struck: "(7) Prevailing wage requirements.--

   Struck: "(A) In general.--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 contractors and subcontractors in--

   Struck: "(i) the construction of such facility, and

   Struck: "(ii) for the period of the taxable year which is within the 10-year period beginning on the date the facility was originally placed in service, 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 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." "(B) Correction and penalty related to failure to satisfy wage requirements.--

   Struck: "(i) In general.--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--

   Struck: "(I) makes payment to such laborer or mechanic in an amount equal to the sum of--

   Struck: "(aa) an amount equal to the difference between--

   Struck: "(AA) the amount of wages paid to such laborer or mechanic during such period, and

   Struck: "(BB) the amount of wages required to be paid to such laborer or mechanic pursuant to such subparagraph during such period, plus

   Struck: "(bb) 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

   Struck: "(II) makes payment to the Secretary of a penalty in an amount equal to the product of--

   Struck: "(aa) $5,000, multiplied by "(bb) 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.

   Struck: "(ii) Deficiency procedures not to apply.--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.

   Struck: "(iii) Intentional disregard.--If the Secretary determines that any failure described in subclause (i) is due to intentional disregard of the requirements under subparagraph (A), subclause (I) shall be applied by substituting 'three times the sum' for 'the sum' in item (aa) thereof and subclause (II) shall be applied by substituting '$10,000' for '5,000' in item (aa) thereof.

   Struck: "(iv) Limitation on period for payment.-- Pursuant to rules issued by the Secretary which are similar to the rules under chapter 63, 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 clause are made by the taxpayer on or before the date which is 180 days after the date of such determination.

   Struck: "(8) Apprenticeship requirements.--The requirements described in this subparagraph with respect to the construction of any qualified facility are as follows:

   Struck: "(A) Labor hours.--

   Struck: "(i) Percentage of total labor hours.-- Taxpayers shall ensure that 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) on any qualified facility shall, subject to subparagraph (B), be performed by qualified apprentices.

   Struck: "(ii) Applicable percentage.--For purposes of clause (i), the applicable percentage shall be--

   Struck: "(I) in the case of a qualified facility the construction of which begins before January 1, 2023, 10 percent,

   Struck: "(II) 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

   Struck: "(III) in the case of a qualified facility the construction of which begins after December 31, 2023, 15 percent.

   Struck: "(B) Apprentice to journeyworker ratio.--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.

   Struck: "(C) Participation.--Each contractor and subcontractor who employs 4 or more individuals to perform construction, alteration, or repair work on a qualified facility shall employ 1 or more qualified apprentices to perform such work.

   Struck: "(D) Exception.--

   Struck: "(i) In general.--A taxpayer shall not be treated as failing to satisfy the requirements of this paragraph if such taxpayer--

   Struck: "(I) makes a good faith effort to comply with the requirements of this paragraph, or

   Struck: "(II) 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--

   Struck: "(aa) $50, multiplied by "(bb) 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.

   Struck: "(ii) Good faith effort.--For purposes of clause (i), a taxpayer shall be deemed to have satisfied the requirements under such 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--

   Struck: "(I) such request has been denied, provided that such denial is not the result of a refusal by the contractors or subcontractors engaged in the performance of construction, alteration, or repair work on such qualified facility to comply with the established standards and requirements of the registered apprenticeship program, or

   Struck: "(II) 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.

   Struck: "(iii) Intentional disregard.--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.

   Struck: "(E) Definitions.--For purposes of this paragraph--

   Struck: "(i) Labor hours.--The term 'labor hours'--

   Struck: "(I) means the total number of hours devoted to the performance of construction, alteration, or repair work by employees of the taxpayer (including construction, alteration, or repair work by any contractor or subcontractor), and

   Struck: "(II) excludes any hours worked by--

   Struck: "(aa) foremen,

   Struck: "(bb) superintendents,

   Struck: "(cc) owners, or

   Struck: "(dd) 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).

   Struck: "(ii) Qualified apprentice.--The term 'qualified apprentice' means an individual who is an employee of the contractor or subcontractor and who is participating in a registered apprenticeship program, as defined in section 3131(e)(3)(B).

   Struck: "(9) Domestic content bonus credit amount.--

   Struck: "(A) In general.--In the case of any qualified facility which satisfies the requirement under subparagraph (B), 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 otherwise in effect under such subsection.

   Struck: "(B) Requirement.--

   Struck: "(i) In general.--The requirement described in this subclause with respect to any qualified facility is satisfied 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.

   Struck: "(ii) Steel and iron.--

   Struck: "(I) In general.--In the case of steel or iron, clause (i) shall be applied in a manner consistent with section 661.5(b) of title 49, Code of Federal Regulations.

   Struck: "(II) Exception.--Subclause (I) shall not apply with respect to any steel or iron which is used as a component or subcomponent of a manufactured product which is not primarily made of steel or iron.

   Struck: "(iii) Manufactured product.--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 of the total costs across all such manufactured products of such facility are attributable to manufactured products (including components) which are mined, produced, or manufactured in the United States.

   Struck: "(C) Adjusted percentage.--

   Struck: "(i) In general.--Subject to subclause (ii), for purposes of subparagraph (B)(iii), the adjusted percentage shall be--

   Struck: "(I) in the case of a facility the construction of which begins before January 1, 2025, 40 percent,

   Struck: "(II) in the case of a facility the construction of which begins after December 31, 2024, and before January 1, 2026, 45 percent,

   Struck: "(III) in the case of a facility the construction of which begins after December 31, 2025, and before January 1, 2027, 50 percent, and

   Struck: "(IV) in the case of a facility the construction of which begins after December 31, 2026, 55 percent.

   Struck: "(ii) Offshore wind facility.--For purposes of subparagraph (B)(iii), in the case of a qualified facility which is an offshore wind facility, the adjusted percentage shall be--

   Struck: "(I) in the case of a facility the construction of which begins before January 1, 2025, 20 percent,

   Struck: "(II) in the case of a facility the construction of which begins after December 31, 2024, and before January 1, 2026, 27.5 percent,

   Struck: "(III) in the case of a facility the construction of which begins after December 31, 2025, and before January 1, 2027, 35 percent,

   Struck: "(IV) in the case of a facility the construction of which begins after December 31, 2026, and before January 1, 2028, 45 percent, and

   Struck: "(V) in the case of a facility the construction of which begins after December 31, 2027, 55 percent.

   Struck: "(10) Phaseout for elective payment.--

   Struck: "(A) In general.--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--

   Struck: "(i) the value of such credit (determined without regard to this paragraph), multiplied by "(ii) the applicable percentage.

   Struck: "(B) 100 percent applicable percentage for certain qualified facilities.--In the case of any qualified facility--

   Struck: "(i) which satisfies the requirements under paragraph (9) with respect to the construction of such facility, or

   Struck: "(ii) with a maximum net output of less than 1 megawatt, the applicable percentage shall be 100 percent.

   Struck: "(C) Phased domestic content requirement.--Subject to subparagraph (D), in the case of any qualified facility which is not described in subparagraph (B), the applicable percentage shall be--

   Struck: "(i) if construction of such facility began before January 1, 2024, 100 percent,

   Struck: "(ii) if construction of such facility began in calendar year 2024, 90 percent,

   Struck: "(iii) if construction of such facility began in calendar year 2025, 85 percent, and

   Struck: "(iv) if construction of such facility began after December 31, 2025, 0 percent.

   Struck: "(D) Exception.--

   Struck: "(i) In general.--For purposes of this paragraph, the Secretary shall provide appropriate exceptions to the requirements under subparagraph (B) for the construction of qualified facilities if--

   Struck: "(I) the inclusion of domestic products increases the overall costs of construction of qualified facilities by more than 25 percent, or

   Struck: "(II) relevant domestic products are not produced in the United States in sufficient and reasonably available quantities or of a satisfactory quality.

   Struck: "(ii) Applicable percentage.--In any case in which the Secretary provides an exception pursuant to clause (i), the applicable percentage shall be 100 percent.

   Struck: "(11) Special rule for qualified facility located in energy community.--

   Struck: "(A) In general.--In the case of a qualified facility which is located in an energy community, the credit determined under subsection (a) shall be increased by an amount equal to 10 percent of the amount otherwise in effect under such subsection (without application of subsection (b)(9)).

   Struck: "(B) Energy community.--The term 'energy community' means a census tract or any directly adjoining census tract in which--

   Struck: "(i) after December 31, 1999, a coal mine has closed, or

   Struck: "(ii) after December 31, 2009, a coal- fired electric generating unit has been retired.

   Struck: "(12) Regulations and guidance.--The Secretary shall issue such regulations or other guidance as the Secretary determines necessary or appropriate 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 establishing the requirements of this subsection.".

   Struck: (g) Credit Reduced for Tax-exempt Bonds.--Section 45(b)(3) is amended to read as follows:

   Struck: "(3) Credit reduced for tax-exempt bonds.--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--

   Struck: "(A) the numerator of which is the sum, for the taxable year and all prior taxable years, of proceeds of an issue of any obligations used to provide financing for the qualified facility the interest on which is exempt from tax under section 103, and

   Struck: "(B) 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.".

   Struck: (h) Rounding Adjustment.--Section 45(b)(2) is amended by striking "If any amount as increased under the preceding sentence is not a multiple of 0.1 cent, such amount shall be rounded to the nearest multiple of 0.1 cent" and inserting "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".

   Struck: (i) Conforming Amendment.--Section 45(b)(4)(A) is amended by striking "last sentence" and inserting "last two sentences".

   Struck: (j) Effective Dates.--

   Struck: (1) The amendments made by subsections (a), (b), (c), (d), (e), (f), (h), and (i) of this section shall apply to facilities placed in service after December 31, 2021.

   Struck: (2) The amendment made by subsection (g) shall apply to facilities the construction of which begins after December 31, 2021.

   Original wording

   Strike section 136101.

Read automatically from the Congressional Record. Check the original before relying on it.

As printed