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H.R. 507House117th Congress (2021-2023)In Committee

Innovative Energy Manufacturing Act of 2021

Sponsored by Brendan F. BoyleRep. Brendan F. Boyle (D-PA)
Introduced January 28, 2021

AI-Generated Summary

Updated February 7, 2026 at 9:53 PM UTC

The Innovative Energy Manufacturing Act of 2021 extends the advanced energy project tax credit in the Internal Revenue Code. It provides a $2.5 billion annual credit limit for each year from 2022 through 2026 and sets rules for how the credit is allocated to qualifying projects. The bill adds labor‑wage requirements and gives priority to projects that manufacture advanced energy equipment, and it expands eligible technologies to include electrochromatic glass. It also requires a Treasury‑Labor report on job creation and wages linked to the credit.

Key Provisions

  • Creates a program, led by the Treasury Secretary with Energy Department input, to allocate up to $2.5 billion in advanced energy project credits each year from 2022‑2026
  • Allows any unused portion of a year’s credit limit to roll over to the next year, but no carry‑over is allowed after 2026
  • Sets a deadline that a project must be placed in service within four years of its credit designation
  • Requires contractors on qualifying projects to pay wages at least equal to local prevailing rates, as determined by the Labor Department
  • Prioritizes projects that manufacture (not just assemble) advanced energy property and have high commercial deployment potential
  • Adds electrochromatic glass to the list of technologies eligible for the credit
  • Mandates a Treasury (or delegate) report, in consultation with Labor, to Congress by Dec 31 2027 on domestic job creation and wages resulting from the credit

Legislative Activity

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HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

January 28, 2021

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HouseIntro Referral

Introduced in House

January 28, 2021

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

January 28, 2021

Bill Text

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Introduced in HouseIssued January 28, 2021

I

117th CONGRESS

1st Session

H. R. 507

IN THE HOUSE OF REPRESENTATIVES

January 28, 2021

Mr. Brendan F. Boyle of Pennsylvania introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to extend the advanced energy project credit.

1.

Short title

This Act may be cited as the Innovative Energy Manufacturing Act of 2021.

2.

Extension of the advanced energy project credit

(a)

In general

Section 48C of the Internal Revenue Code of 1986 is amended by redesignating subsection (e) as subsection (f) and by inserting after subsection (d) the following new subsection:

(e)

Additional allocations

(1)

In general

Not later than 180 days after the date of enactment of this paragraph, the Secretary, after consultation with the Secretary of Energy, shall establish a program to designate amounts of qualifying advanced project credit limitation to qualifying advanced energy projects.

(2)

Annual limitation

(A)

In general

The amount of qualifying advanced project credit limitation that may be designated under this subsection during any calendar year shall not exceed the annual credit limitation with respect to such year.

(B)

Annual credit limitation

For purposes of this subsection, the term annual credit limitation means $2,500,000,000 for each of calendar years 2022, 2023, 2024, 2025, and 2026, and zero thereafter.

(C)

Carryover of unused limitation

If the annual credit limitation for any calendar year exceeds the aggregate amount designated for such year under this subsection, such limitation for the succeeding calendar year shall be increased by the amount of such excess. No amount may be carried under the preceding sentence to any calendar year after 2026.

(3)

Placed in service deadline

No credit shall be determined under subsection (a) with respect to any property which is placed in service after the date that is 4 years after the date of the designation under this subsection relating to such property.

(4)

Selection criteria

Selection criteria similar to those in subsection (d)(3) shall apply, except that in determining designations under this subsection, the Secretary, after consultation with the Secretary of Energy, shall—

(A)

require that applicants provide written assurances to the Secretary that all laborers and mechanics employed by contractors and subcontractors in the performance of construction, alteration or repair work on a qualifying advanced energy project shall be paid wages at rates not less than those prevailing on projects of a similar character in the locality as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code, and

(B)

give the highest priority to projects which—

(i)

manufacture (other than primarily assembly of components) property described in a subclause of subsection (c)(1)(A)(i) (or components thereof), and

(ii)

have the greatest potential for commercial deployment of new applications.

(5)

Disclosure of designations

Rules similar to the rules of subsection (d)(5) shall apply for purposes of this subsection.

.

(b)

Clarification with respect to electrochromatic glass

Section 48C(c)(1)(A)(i)(V) of such Code is amended—

(1)

by striking and smart grid and inserting , smart grid, and

(2)

by inserting , and electrochromatic glass before the comma at the end.

(c)

Effective date

The amendment made by this section shall take effect on the date of the enactment of this Act.

(d)

Progress report

During the 30-day period ending on December 31, 2027, the Secretary of the Treasury (or the Secretary’s delegate), after consultation with the Secretary of Labor, shall submit a report to Congress on any domestic job creation, and wages associated with such jobs, and the amount of such wages paid, attributable to the amendment made by this section.