H.R. 2 - Moving Forward Act
H.R. 2; Moving Forward Act
- Institutional AuthorsU.S. House of Representatives
- Code Sections
- Subject Area/Tax Topics
- Industry GroupsEnergyReal estate
- Jurisdictions
- Tax Analysts Document Number2020-23960
- Tax Analysts Electronic Citation2020 TNTF 122-292020 EOR 7-47
- Magazine CitationThe Exempt Organization Tax Review, Jul. 2020, p. 14386 Exempt Org. Tax Rev. 143 (2020)
Asterisks indicate omitted text.
]TEXT OF H.R. 2, THE MOVING FORWARD ACT
RULES COMMITTEE PRINT 116-54
JUNE 22, 2020
[Showing the text of H.R. 2, as ordered reported by the Committee on Transportation and Infrastructure, with modifications.]
SECTION 1. SHORT TITLE.
This Act may be cited as the "Moving Forward Act".
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
* * *
DIVISION M — REVENUE PROVISIONS
Sec. 90001. Short title; etc.
TITLE I — INFRASTRUCTURE FINANCING
Subtitle A — Bond Financing Enhancements
Sec. 90101. Credit to issuer for certain infrastructure bonds.
Sec. 90102. Advance refunding bonds.
Sec. 90103. Permanent modification of small issuer exception to tax-exempt interest expense allocation rules for financial institutions.
Sec. 90104. Volume cap on private activity bonds.
Sec. 90105. Modifications to qualified small issue bonds.
Sec. 90106. Expansion of certain exceptions to the private activity bond rules for first-time farmers.
Sec. 90107. Exempt facility bonds for zero-emission vehicle infrastructure.
Sec. 90108. Exempt-facility bonds for sewage and water supply facilities.
Sec. 90109. Qualified highway or surface freight transfer facility bonds.
Subtitle B — School Infrastructure Bonds
Sec. 90111. Restoration of certain qualified tax credit bonds.
Sec. 90112. School infrastructure bonds.
Sec. 90113. Annual report on bond program.
Subtitle C — Other Provisions Related to Infrastructure Financing
Sec. 90121. Credit for operations and maintenance costs of government-owned broadband.
Sec. 90122. Treatment of financial guaranty insurance companies as qualifying insurance corporations under passive foreign investment company rules.
Sec. 90123. Infrastructure grants to improve child care safety.
TITLE II — NEW MARKETS TAX CREDIT
Sec. 90201. Improvement and permanent extension of new markets tax credit.
TITLE III — REHABILITATION TAX CREDIT
Sec. 90301. Increase in rehabilitation credit.
Sec. 90302. Increase in the rehabilitation credit for certain small projects.
Sec. 90303. Modification of definition of substantially rehabilitated.
Sec. 90304. Temporary extension of period for completing rehabilitation.
Sec. 90305. Elimination of rehabilitation credit basis adjustment.
Sec. 90306. Modifications regarding certain tax-exempt use property.
Sec. 90307. Qualification of rehabilitation expenditures for public school buildings for rehabilitation credit.
TITLE IV — GREEN ENERGY
Sec. 90400. Short title.
Subtitle A — Renewable Electricity and Reducing Carbon Emissions
Sec. 90401. Extension of credit for electricity produced from certain renewable resources.
Sec. 90402. Extension and modification of energy credit.
Sec. 90403. Extension of credit for carbon oxide sequestration.
Sec. 90404. Elective payment for energy property and electricity produced from certain renewable resources, etc.
Sec. 90405. Extension of energy credit for offshore wind facilities.
Sec. 90406. Green energy publicly traded partnerships.
Subtitle B — Renewable Fuels
Sec. 90411. Biodiesel and renewable diesel.
Sec. 90412. Extension of excise tax credits relating to alternative fuels.
Sec. 90413. Extension of second generation biofuel incentives.
Subtitle C — Green Energy and Efficiency Incentives for Individuals
Sec. 90421. Extension, increase, and modifications of nonbusiness energy property credit.
Sec. 90422. Residential energy efficient property.
Sec. 90423. Energy efficient commercial buildings deduction.
Sec. 90424. Extension, increase, and modifications of new energy efficient home credit.
Sec. 90425. Modifications to income exclusion for conservation subsidies.
Subtitle D — Greening the Fleet and Alternative Vehicles
Sec. 90431. Modification of limitations on new qualified plug-in electric drive motor vehicle credit.
Sec. 90432. Credit for previously-owned qualified plug-in electric drive motor vehicles.
Sec. 90433. Credit for zero-emission heavy vehicles and zero-emission buses.
Sec. 90434. Qualified fuel cell motor vehicles.
Sec. 90435. Alternative fuel refueling property credit.
Sec. 90436. Modification of employer-provided fringe benefits for bicycle commuting.
Subtitle E — Investment in the Green Workforce
Sec. 90441. Extension of the advanced energy project credit.
Sec. 90442. Labor costs of installing mechanical insulation property.
Subtitle F — Environmental Justice
Sec. 90451. Qualified environmental justice program credit.
Subtitle G — Treasury Report on Data From the Greenhouse Gas Reporting Program
Sec. 90461. Report on Greenhouse Gas Reporting Program.
TITLE V — DISASTER AND RESILIENCY
Sec. 90501. Exclusion of amounts received from state-based catastrophe loss mitigation programs.
Sec. 90502. Repeal of temporary limitation on personal casualty losses.
TITLE VI — HOUSING
Subtitle A — Low-income Housing Tax Credit Improvements
Sec. 90601. Extension of period for rehabilitation expenditures.
Sec. 90602. Extension of basis expenditure deadline.
Sec. 90603. Tax-exempt bond financing requirement.
Sec. 90604. Minimum credit rate.
Sec. 90605. Increases in State allocations.
Sec. 90606. Increase in credit for certain projects designated to serve extremely low-income households.
Sec. 90607. Inclusion of Indian areas as difficult development areas for purposes of certain buildings.
Sec. 90608. Inclusion of rural areas as difficult development areas.
Sec. 90609. Increase in credit for bond-financed projects designated by housing credit agency.
Sec. 90610. Repeal of qualified contract option.
Sec. 90611. Prohibition of local approval and contribution requirements.
Sec. 90612. Adjustment of credit to provide relief during COVID-19 outbreak.
Sec. 90613. Credit for low-income housing supportive services.
Subtitle B — Neighborhood Homes Credit
Sec. 90621. Neighborhood homes credit.
TITLE VII — TRIBAL DEVELOPMENT
Sec. 90701. Treatment of Indian Tribes as States with respect to bond issuance.
Sec. 90702. Treatment of Tribal foundations and charities like charities funded and controlled by other governmental funders and sponsors.
Sec. 90703. New markets tax credit.
TITLE VIII — HIGHWAY TRUST FUND AND RELATED TAXES
Sec. 90801. Extension of Highway Trust Fund expenditure authority.
Sec. 90802. Extension of highway-related taxes.
Sec. 90803. Additional transfers to Highway Trust Fund.
SEC. 3. REFERENCES.
Except as expressly provided otherwise, any reference to "this Act" contained in any division of this Act shall be treated as referring only to the provisions of that division.
* * *
DIVISION M — REVENUE PROVISIONS
SEC. 90001. SHORT TITLE; ETC.
(a) SHORT TITLE. — This division may be cited as the "Renewable Energy, Efficiency, and Infrastructure Tax Act of 2020".
(b) TABLE OF CONTENTS. — The table of contents of this division is as follows:
DIVISION M — REVENUE PROVISIONS
Sec. 90001. Short title; etc.
TITLE I — INFRASTRUCTURE FINANCING
Subtitle A — Bond Financing Enhancements
Sec. 90101. Credit to issuer for certain infrastructure bonds.
Sec. 90102. Advance refunding bonds.
Sec. 90103. Permanent modification of small issuer exception to tax-exempt interest expense allocation rules for financial institutions.
Sec. 90104. Volume cap on private activity bonds.
Sec. 90105. Modifications to qualified small issue bonds.
Sec. 90106. Expansion of certain exceptions to the private activity bond rules for first-time farmers.
Sec. 90107. Exempt facility bonds for zero-emission vehicle infrastructure.
Sec. 90108. Exempt-facility bonds for sewage and water supply facilities.
Sec. 90109. Qualified highway or surface freight transfer facility bonds.
Subtitle B — School Infrastructure Bonds
Sec. 90111. Restoration of certain qualified tax credit bonds.
Sec. 90112. School infrastructure bonds.
Sec. 90113. Annual report on bond program.
Subtitle C — Other Provisions Related to Infrastructure Financing
Sec. 90121. Credit for operations and maintenance costs of government-owned broadband.
Sec. 90122. Treatment of financial guaranty insurance companies as qualifying insurance corporations under passive foreign investment company rules.
Sec. 90123. Infrastructure grants to improve child care safety.
TITLE II — NEW MARKETS TAX CREDIT
Sec. 90201. Improvement and permanent extension of new markets tax credit.
TITLE III — REHABILITATION TAX CREDIT
Sec. 90301. Increase in rehabilitation credit.
Sec. 90302. Increase in the rehabilitation credit for certain small projects.
Sec. 90303. Modification of definition of substantially rehabilitated.
Sec. 90304. Temporary extension of period for completing rehabilitation.
Sec. 90305. Elimination of rehabilitation credit basis adjustment.
Sec. 90306. Modifications regarding certain tax-exempt use property.
Sec. 90307. Qualification of rehabilitation expenditures for public school buildings for rehabilitation credit.
TITLE IV — GREEN ENERGY
Sec. 90400. Short title.
Subtitle A — Renewable Electricity and Reducing Carbon Emissions
Sec. 90401. Extension of credit for electricity produced from certain renewable resources.
Sec. 90402. Extension and modification of energy credit.
Sec. 90403. Extension of credit for carbon oxide sequestration.
Sec. 90404. Elective payment for energy property and electricity produced from certain renewable resources, etc.
Sec. 90405. Extension of energy credit for offshore wind facilities.
Sec. 90406. Green energy publicly traded partnerships.
Subtitle B — Renewable Fuels
Sec. 90411. Biodiesel and renewable diesel.
Sec. 90412. Extension of excise tax credits relating to alternative fuels.
Sec. 90413. Extension of second generation biofuel incentives.
Subtitle C — Green Energy and Efficiency Incentives for Individuals
Sec. 90421. Extension, increase, and modifications of nonbusiness energy property credit.
Sec. 90422. Residential energy efficient property.
Sec. 90423. Energy efficient commercial buildings deduction.
Sec. 90424. Extension, increase, and modifications of new energy efficient home credit.
Sec. 90425. Modifications to income exclusion for conservation subsidies.
Subtitle D — Greening the Fleet and Alternative Vehicles
Sec. 90431. Modification of limitations on new qualified plug-in electric drive motor vehicle credit.
Sec. 90432. Credit for previously-owned qualified plug-in electric drive motor vehicles.
Sec. 90433. Credit for zero-emission heavy vehicles and zero-emission buses.
Sec. 90434. Qualified fuel cell motor vehicles.
Sec. 90435. Alternative fuel refueling property credit.
Sec. 90436. Modification of employer-provided fringe benefits for bicycle commuting.
Subtitle E — Investment in the Green Workforce
Sec. 90441. Extension of the advanced energy project credit.
Sec. 90442. Labor costs of installing mechanical insulation property.
Subtitle F — Environmental Justice
Sec. 90451. Qualified environmental justice program credit.
Subtitle G — Treasury Report on Data From the Greenhouse Gas Reporting Program
Sec. 90461. Report on Greenhouse Gas Reporting Program.
TITLE V — DISASTER AND RESILIENCY
Sec. 90501. Exclusion of amounts received from state-based catastrophe loss mitigation programs.
Sec. 90502. Repeal of temporary limitation on personal casualty losses.
TITLE VI — HOUSING
Subtitle A — Low-income Housing Tax Credit Improvements
Sec. 90601. Extension of period for rehabilitation expenditures.
Sec. 90602. Extension of basis expenditure deadline.
Sec. 90603. Tax-exempt bond financing requirement.
Sec. 90604. Minimum credit rate.
Sec. 90605. Increases in State allocations.
Sec. 90606. Increase in credit for certain projects designated to serve extremely low-income households.
Sec. 90607. Inclusion of Indian areas as difficult development areas for purposes of certain buildings.
Sec. 90608. Inclusion of rural areas as difficult development areas.
Sec. 90609. Increase in credit for bond-financed projects designated by housing credit agency.
Sec. 90610. Repeal of qualified contract option.
Sec. 90611. Prohibition of local approval and contribution requirements.
Sec. 90612. Adjustment of credit to provide relief during COVID-19 outbreak.
Sec. 90613. Credit for low-income housing supportive services.
Subtitle B — Neighborhood Homes Credit
Sec. 90621. Neighborhood homes credit.
TITLE VII — TRIBAL DEVELOPMENT
Sec. 90701. Treatment of Indian Tribes as States with respect to bond issuance.
Sec. 90702. Treatment of Tribal foundations and charities like charities funded and controlled by other governmental funders and sponsors.
Sec. 90703. New markets tax credit.
TITLE VIII — HIGHWAY TRUST FUND AND RELATED TAXES
Sec. 90801. Extension of Highway Trust Fund expenditure authority.
Sec. 90802. Extension of highway-related taxes.
Sec. 90803. Additional transfers to Highway Trust Fund.
(c) AMENDMENT OF 1986 CODE. — Except as otherwise expressly provided, whenever in this division an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.
TITLE I — INFRASTRUCTURE FINANCING
Subtitle A — Bond Financing Enhancements
SEC. 90101. CREDIT TO ISSUER FOR CERTAIN INFRASTRUCTURE BONDS.
(a) IN GENERAL. — Subchapter B of chapter 65 is amended by adding at the end the following new section:
"SEC. 6431A. CREDIT ALLOWED TO ISSUER FOR QUALIFIED INFRASTRUCTURE BONDS.
"(a) IN GENERAL. — In the case of a qualified infrastructure bond, the issuer of such bond shall be allowed a credit with respect to each interest payment under such bond which shall be payable by the Secretary as provided in subsection (b).
"(b) PAYMENT OF CREDIT. —
"(1) IN GENERAL. — The Secretary shall pay (contemporaneously with each date on which interest is so payable) to the issuer of such bond (or to any person who makes such interest payments on behalf of such issuer) an amount equal to the applicable percentage of such interest so payable.
"(2) APPLICABLE PERCENTAGE. — For purposes of this subsection, except as provided in subsection (d), the applicable percentage with respect to any bond shall be determined under the following table:
"In the case of a bond issued during calendar year: | The applicable percentage is: |
|---|---|
2020 through 2024 | 42% |
2025 | 38% |
2026 | 34% |
2027 and thereafter | 30% |
"(3) LIMITATION. —
"(A) IN GENERAL. — The amount of any interest payment taken into account under paragraph (1) with respect to a bond for any payment date shall not exceed the amount of interest which would have been payable under such bond on such date if such interest were determined at the rate which the Secretary estimates will permit the issuance of qualified infrastructure bonds with a specified maturity or redemption date without discount and without additional interest cost.
"(B) DATE OF RATE DETERMINATION WITH RESPECT TO BOND. — Such rate with respect to any qualified infrastructure bond shall be determined as of the first day on which there is a binding, written contract for the sale or exchange of the bond.
"(c) QUALIFIED INFRASTRUCTURE BOND. —
"(1) IN GENERAL. — For purposes of this section, the term 'qualified infrastructure bond' means any bond (other than a private activity bond) issued as part of an issue if —
"(A) 100 percent of the available project proceeds of such issue are to be used for capital expenditures or operations and maintenance expenditures in connection with property the acquisition, construction, or improvement of which would be a capital expenditure,
"(B) the interest on such bond would (but for this section) be excludable from gross income under section 103,
"(C) the issue price has not more than a de minimis amount (determined under rules similar to the rules of section 1273(a)(3)) of premium over the stated principal amount of the bond, and
"(D) prior to the issuance of such bond, the issuer makes an irrevocable election to have this section apply.
"(2) APPLICABLE RULES. — For purposes of applying paragraph (1) —
"(A) NOT TREATED AS FEDERALLY GUARANTEED. — For purposes of section 149(b), a qualified infrastructure bond shall not be treated as federally guaranteed by reason of the credit allowed under this section.
"(B) APPLICATION OF ARBITRAGE RULES. — For purposes of section 148, the yield on a qualified infrastructure bond shall be reduced by the credit allowed under this section.
"(d) DEFINITION AND SPECIAL RULES. — For purposes of this section —
"(1) INTEREST INCLUDIBLE IN GROSS INCOME. — For purposes of this title, interest on any qualified infrastructure bond shall be includible in gross income.
"(2) AVAILABLE PROJECT PROCEEDS. — The term 'available project proceeds' means —
"(A) the excess of —
"(i) the proceeds from the sale of an issue, over
"(ii) the sum of —
"(I) issuance costs financed by the issue (the extent that such costs do not exceed 2 percent of such proceeds), and
"(II) amounts in a reasonably required reserve (within the meaning of section 150(a)(3)) with respect to such issue), and
"(B) the proceeds from any investment of the excess described in clause (i).
"(3) CURRENT REFUNDINGS ALLOWED. —
"(A) IN GENERAL. — In the case of a bond issued to refund a qualified infrastructure bond, such refunding bond shall be treated as a qualified infrastructure bond for purposes of this section if —
"(i) the average maturity date of the issue of which the refunding bond is a part is not later than the average maturity date of the bonds to be refunded by such issue,
"(ii) the amount of the refunding bond does not exceed the outstanding amount of the refunded bond,
"(iii) the refunded bond is redeemed not later than 90 days after the date of the issuance of the refunding bond, and
"(iv) the refunded bond was issued more than 30 days after the date of the enactment of this section.
"(B) APPLICABLE PERCENTAGE LIMITATION. — The applicable percentage with respect to any bond to which subparagraph (A) applies shall be 30 percent.
"(C) DETERMINATION OF AVERAGE MATURITY. — For purposes of subparagraph (A)(i), average maturity shall be determined in accordance with section 147(b)(2)(A).
"(e) REGULATIONS. — The Secretary may prescribe such regulations and other guidance as may be necessary or appropriate to carry out this section.".
(b) GROSS-UP OF PAYMENT TO ISSUERS IN CASE OF SEQUESTRATION. — In the case of any payment under section 6431A(b) of the Internal Revenue Code of 1986 made after the date of the enactment of this Act to which sequestration applies, the amount of such payment shall be increased to an amount equal to —
(1) such payment (determined before such sequestration), multiplied by
(2) the quotient obtained by dividing 1 by the amount by which 1 exceeds the percentage reduction in such payment pursuant to such sequestration.
For purposes of this subsection, the term "sequestration" means any reduction in direct spending ordered in accordance with a sequestration report prepared by the Director of the Office and Management and Budget pursuant to the Balanced Budget and Emergency Deficit Control Act of 1985 or the Statutory Pay-As-You-Go Act of 2010.
(c) CONFORMING AMENDMENTS. —
(1) Section 1324(b)(2) of title 31, United States Code, is amended by striking "or 6431" and inserting "6431, or 6431A".
(2) The table of sections for subchapter B of chapter 65 is amended by adding at the end the following new item:
"Sec. 6431A. Credit allowed to issuer for qualified infrastructure bonds.".
(d) EFFECTIVE DATE. — The amendments made by this section shall apply to bonds issued more than 30 days after the date of the enactment of this Act.
SEC. 90102. ADVANCE REFUNDING BONDS.
(a) IN GENERAL. — Section 149(d) is amended —
(1) by striking "to advance refund another bond." in paragraph (1) and inserting "as part of an issue described in paragraph (2), (3), or (4).",
(2) by redesignating paragraphs (2) and (3) as paragraphs (5) and (7), respectively,
(3) by inserting after paragraph (1) the following new paragraphs:
"(2) CERTAIN PRIVATE ACTIVITY BONDS. — An issue is described in this paragraph if any bond (issued as part of such issue) is issued to advance refund a private activity bond (other than a qualified 501(c)(3) bond).
"(3) OTHER BONDS. —
"(A) IN GENERAL. — An issue is described in this paragraph if any bond (issued as part of such issue), hereinafter in this paragraph referred to as the 'refunding bond', is issued to advance refund a bond unless —
"(i) the refunding bond is only —
"(I) the 1st advance refunding of the original bond if the original bond is issued after 1985, or
"(II) the 1st or 2nd advance refunding of the original bond if the original bond was issued before 1986,
"(ii) in the case of refunded bonds issued before 1986, the refunded bond is redeemed not later than the earliest date on which such bond may be redeemed at par or at a premium of 3 percent or less,
"(iii) in the case of refunded bonds issued after 1985, the refunded bond is redeemed not later than the earliest date on which such bond may be redeemed,
"(iv) the initial temporary period under section 148(c) ends —
"(I) with respect to the proceeds of the refunding bond not later than 30 days after the date of issue of such bond, and
"(II) with respect to the proceeds of the refunded bond on the date of issue of the refunding bond, and
"(v) in the case of refunded bonds to which section 148(e) did not apply, on and after the date of issue of the refunding bond, the amount of proceeds of the refunded bond invested in higher yielding investments (as defined in section 148(b)) which are nonpurpose investments (as defined in section 148(f)(6)(A)) does not exceed —
"(I) the amount so invested as part of a reasonably required reserve or replacement fund or during an allowable temporary period, and
"(II) the amount which is equal to the lesser of 5 percent of the proceeds of the issue of which the refunded bond is a part or $100,000 (to the extent such amount is allocable to the refunded bond).
"(B) SPECIAL RULES FOR REDEMPTIONS. —
"(i) ISSUER MUST REDEEM ONLY IF DEBT SERVICE SAVINGS. — Clause (ii) and (iii) of subparagraph (A) shall apply only if the issuer may realize present value debt service savings (determined without regard to administrative expenses) in connection with the issue of which the refunding bond is a part.
"(ii) REDEMPTIONS NOT REQUIRED BEFORE 90TH DAY. — For purposes of clauses (ii) and (iii) of subparagraph (A), the earliest date referred to in such clauses shall not be earlier than the 90th day after the date of issuance of the refunding bond.
"(4) ABUSIVE TRANSACTIONS PROHIBITED. — An issue is described in this paragraph if any bond (issued as part of such issue) is issued to advance refund another bond and a device is employed in connection with the issuance of such issue to obtain a material financial advantage (based on arbitrage) apart from savings attributable to lower interest rates.", and
(4) by inserting after paragraph (5) (as so redesignated) the following new paragraph:
"(6) SPECIAL RULES FOR PURPOSES OF PARAGRAPH (3). — For purposes of paragraph (3), bonds issued before October 22, 1986, shall be taken into account under subparagraph (A)(i) thereof except — "(A) a refunding which occurred before 1986 shall be treated as an advance refunding only if the refunding bond was issued more than 180 days before the redemption of the refunded bond, and
"(B) a bond issued before 1986, shall be treated as advance refunded no more than once before March 15, 1986.".
(b) CONFORMING AMENDMENT. — Section 148(f)(4)(C) is amended by redesignating clauses (xiv) through (xvi) as clauses (xv) to (xvii), respectively, and by inserting after clause (xiii) the following new clause:
"(xiv) DETERMINATION OF INITIAL TEMPORARY PERIOD. — For purposes of this subparagraph, the end of the initial section temporary period shall be determined without regard to section 149(d)(3)(A)(iv).".
(c) EFFECTIVE DATE. — The amendments made by this section shall apply to advance refunding bonds issued more than 30 days after the date of the enactment of this Act.
SEC. 90103. PERMANENT MODIFICATION OF SMALL ISSUER EXCEPTION TO TAX-EXEMPT INTEREST EXPENSE ALLOCATION RULES FOR FINANCIAL INSTITUTIONS.
(a) PERMANENT INCREASE IN LIMITATION. — Subparagraphs (C)(i), (D)(i), and (D)(iii)(II) of section 265(b)(3) are each amended by striking "$10,000,000" and inserting "$30,000,000".
(b) PERMANENT MODIFICATION OF OTHER SPECIAL RULES. — Section 265(b)(3) is amended —
(1) by redesignating clauses (iv), (v), and (vi) of subparagraph (G) as clauses (ii), (iii), and (iv), respectively, and moving such clauses to the end of subparagraph (H) (as added by paragraph (2)), and
(2) by striking so much of subparagraph (G) as precedes such clauses and inserting the following:
"(G) QUALIFIED 501(c)(3) BONDS TREATED AS ISSUED BY EXEMPT ORGANIZATION. — In the case of a qualified 501(c)(3) bond (as defined in section 145), this paragraph shall be applied by treating the 501(c)(3) organization for whose benefit such bond was issued as the issuer.
"(H) SPECIAL RULE FOR QUALIFIED FINANCINGS. —
"(i) IN GENERAL. — In the case of a qualified financing issue —
"(I) subparagraph (F) shall not apply, and
"(II) any obligation issued as a part of such issue shall be treated as a qualified tax-exempt obligation if the requirements of this paragraph are met with respect to each qualified portion of the issue (determined by treating each qualified portion as a separate issue which is issued by the qualified borrower with respect to which such portion relates).".
(c) INFLATION ADJUSTMENT. — Section 265(b)(3), as amended by subsection (b), is amended by adding at the end the following new subparagraph:
"(I) INFLATION ADJUSTMENT. — In the case of any calendar year after 2020, the $30,000,000 amounts contained in subparagraphs (C)(i), (D)(i), and (D)(iii)(II) shall each be increased by an amount equal to —
"(i) such dollar amount, multiplied by
"(ii) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year, determined by substituting 'calendar year 2019' for 'calendar year 2016' in subparagraph (A)(ii) thereof.
Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $100,000.".
(d) EFFECTIVE DATE. — The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.
SEC. 90104. VOLUME CAP ON PRIVATE ACTIVITY BONDS.
(a) IN GENERAL. — Section 146(d)(1) is amended —
(1) by striking "$75 ($62.50 in the case of calendar year 2001)" and inserting "$135", and
(2) by striking "$225,000,000 ($187,500,000 in the case of calendar year 2001)" and inserting "$402,220,000".
(b) INFLATION ADJUSTMENT. — Section 146(d)(2) is amended —
(1) by striking "2002" and inserting "2020", and
(2) by striking "2001" in subparagraph (B) and inserting "2019".
(c) EFFECTIVE DATE. — The amendments made by this section shall apply to calendar years after 2020.
SEC. 90105. MODIFICATIONS TO QUALIFIED SMALL ISSUE BONDS.
(a) MANUFACTURING FACILITIES TO INCLUDE PRODUCTION OF INTANGIBLE PROPERTY AND FUNCTIONALLY RELATED FACILITIES. — Subparagraph (C) of section 144(a)(12) is amended to read as follows:
"(C) MANUFACTURING FACILITY. — For purposes of this paragraph —
"(i) IN GENERAL. — The term 'manufacturing facility' means any facility which —
"(I) is used in the manufacturing or production of tangible personal property (including the processing resulting in a change in the condition of such property),
"(II) is used in the creation or production of intangible property which is described in section 197(d)(1)(C)(iii), or
"(III) is functionally related and subordinate to a facility described in subclause (I) or (II) if such facility is located on the same site as the facility described in subclause (I) or (II).
"(ii) CERTAIN FACILITIES INCLUDED. — The term 'manufacturing facility' includes facilities that are directly related and ancillary to a manufacturing facility (determined without regard to this clause) if —
"(I) those facilities are located on the same site as the manufacturing facility, and
"(II) not more than 25 percent of the net proceeds of the issue are used to provide those facilities.
"(iii) LIMITATION ON OFFICE SPACE. — A rule similar to the rule of section 142(b)(2) shall apply for purposes of clause (i).
"(iv) LIMITATION ON REFUNDINGS FOR CERTAIN PROPERTY. — Subclauses (II) and (III) of clause (i) shall not apply to any bond issued on or before the date of the enactment of the Renewable Energy, Efficiency, and Infrastructure Tax Act of 2020, or to any bond issued to refund a bond issued on or before such date (other than a bond to which clause (iii) of this subparagraph (as in effect before the date of the enactment of the Renewable Energy, Efficiency, and Infrastructure Tax Act of 2020) applies), either directly or in a series of refundings.".
(b) INCREASE IN LIMITATIONS. — Section 144(a)(4) is amended —
(1) in subparagraph (A)(i), by striking "$10,000,000" and inserting "$30,000,000", and
(2) in the heading, by striking "$10,000,000" and inserting "$30,000,000".
(c) ADJUSTMENT FOR INFLATION. — Section 144(a)(4) is amended by adding at the end the following new subparagraph:
"(H) ADJUSTMENT FOR INFLATION. — In the case of any calendar year after 2020, the $30,000,000 amount in subparagraph (A) shall be increased by an amount equal to —
"(i) such dollar amount, multiplied by
"(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting 'calendar year 2019' for 'calendar year 2016' in subparagraph (A)(ii) thereof.
If any amount as increased under the preceding sentence is not a multiple of $100,000, such amount shall be rounded to the nearest multiple of $100,000.".
(d) EFFECTIVE DATE. — The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.
SEC. 90106. EXPANSION OF CERTAIN EXCEPTIONS TO THE PRIVATE ACTIVITY BOND RULES FOR FIRSTTIME FARMERS.
(a) INCREASE IN DOLLAR LIMITATION. —
(1) IN GENERAL. — Section 147(c)(2)(A) is amended by striking "$450,000" and inserting "$552,500".
(2) REPEAL OF SEPARATE LOWER DOLLAR LIMITATION ON USED FARM EQUIPMENT. — Section 147(c)(2) is amended by striking subparagraph (F) and by redesignating subparagraphs (G) and (H) as subparagraphs (F) and (G), respectively.
(3) QUALIFIED SMALL ISSUE BOND LIMITATION CONFORMED TO INCREASED DOLLAR LIMITATION. — Section 144(a)(11)(A) is amended by striking "$250,000" and inserting "$552,500".
(4) INFLATION ADJUSTMENT. —
(A) IN GENERAL. — Section 147(c)(2)(G), as redesignated by paragraph (2), is amended —
(i) by striking "after 2008, the dollar amount in subparagraph (A) shall be increased" and inserting "after 2020, the dollar amounts in subparagraph (A) and section 144(a)(11)(A) shall each be increased", and
(ii) in clause (ii), by striking "2007" and inserting "2019".
(B) CROSS-REFERENCE. — Section 144(a)(11) is amended by adding at the end the following new subparagraph:
"(D) INFLATION ADJUSTMENT. — For inflation adjustment of dollar amount contained in subparagraph (A), see section 147(c)(2)(G).".
(b) SUBSTANTIAL FARMLAND DETERMINED ON BASIS OF AVERAGE RATHER THAN MEDIAN FARM SIZE. — Section 147(c)(2)(E) is amended by striking "median" and inserting "average".
(c) EFFECTIVE DATE. — The amendments made by this section shall apply to bonds issued after the date of the enactment of this Act.
SEC. 90107. EXEMPT FACILITY BONDS FOR ZERO-EMISSION VEHICLE INFRASTRUCTURE.
(a) IN GENERAL. — Section 142 is amended —
(1) in subsection (a) —
(A) in paragraph (14), by striking "or" at the end,
(B) in paragraph (15), by striking the period at the end and inserting ", or", and
(C) by adding at the end the following new paragraph:
"(16) zero-emission vehicle infrastructure.", and
(2) by adding at the end the following new subsection:
"(n) ZERO-EMISSION VEHICLE INFRASTRUCTURE. —
"(1) IN GENERAL. — For purposes of subsection (a)(16), the term 'zero-emission vehicle infrastructure' means any property (not including a building and its structural components) if such property is part of a unit which —
"(A) is used to charge or fuel zero-emissions vehicles,
"(B) is located where the vehicles are charged or fueled,
"(C) is of a character subject to the allowance for depreciation (or amortization in lieu of depreciation),
"(D) is made available for use by members of the general public,
"(E) accepts payment by use of a credit card reader, and
"(F) is capable of charging or fueling vehicles produced by more than one manufacturer (within the meaning of section 30D(d)(3)).
"(2) INCLUSION OF UTILITY SERVICE CONNECTIONS, ETC. — The term 'zero-emission vehicle infrastructure' shall include any utility service connections, utility panel upgrades, line extensions and conduit, transformer upgrades, or similar property, in connection with property meeting the requirements of paragraph (1).
"(3) ZERO-EMISSIONS VEHICLE. — The term 'zero-emissions vehicle' means —
"(A) a zero-emission vehicle as defined in section 88.102-94 of title 40, Code of Federal Regulations, or
"(B) a vehicle that produces zero exhaust emissions of any criteria pollutant (or precursor pollutant) or greenhouse gas under any possible operational modes and conditions.
"(4) ZERO-EMISSIONS VEHICLE INFRASTRUCTURE LOCATED WITHIN OTHER FACILITIES OR PROJECTS. — For purposes of subsection (a), any zero-emission vehicle infrastructure located within —
"(A) a facility or project described in subsection (a), or
"(B) an area adjacent to a facility or project described in subsection (a) that primarily serves vehicles traveling to or from such facility or project,
shall be treated as described in the paragraph in which such facility or project is described.
"(5) EXCEPTION FOR REFUELING PROPERTY FOR FLEET VEHICLES. — Subparagraphs (D), (E), and (F) of paragraph (1) shall not apply to property which is part of a unit which is used exclusively by fleets of commercial or governmental vehicles.".
(b) EFFECTIVE DATE. — The amendments made by this section shall apply to obligations issued after December 31, 2020.
SEC. 90108. EXEMPT-FACILITY BONDS FOR SEWAGE AND WATER SUPPLY FACILITIES.
(a) BONDS FOR WATER AND SEWAGE FACILITIES EXEMPT FROM VOLUME CAP ON PRIVATE ACTIVITY BONDS. — Section 146(g)(3) is amended by inserting "(4), (5)," after "(2),".
(b) CONFORMING CHANGE. — Paragraphs (2) and (3)(B) of section 146(k) are each amended by striking "(4), (5), (6)," and inserting "(6)".
(c) EFFECTIVE DATE. — The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.
SEC. 90109. QUALIFIED HIGHWAY OR SURFACE FREIGHT TRANSFER FACILITY BONDS.
(a) INCREASE IN LIMITATION. — Section 142(m)(2)(A) is amended by striking "$15,000,000,000" and inserting "$18,750,000,000".
(b) APPLICATION OF DAVIS-BACON ACT REQUIREMENTS. — Section 142(m) is amended by adding at the end the following new paragraph:
"(5) APPLICATION OF DAVIS-BACON ACT REQUIREMENTS. — The provisions of subchapter IV of chapter 31 of title 40, United States Code (commonly referred to as the "Davis-Bacon Act") shall apply with respect to any laborer or mechanic employed by a contractor or subcontractor using the proceeds of an issue described in subsection (a)(15).".
(c) EFFECTIVE DATE. — The amendments made by this section shall apply to bonds issued after the date of the enactment of this Act.
Subtitle B — School Infrastructure Bonds
SEC. 90111. RESTORATION OF CERTAIN QUALIFIED TAX CREDIT BONDS.
(a) ALLOWANCE OF CREDIT. —
(1) IN GENERAL. — Section 54A, as in effect before repeal by Public Law 115-97, is restored as if such repeal had not taken effect.
(2) CREDIT LIMITED TO CERTAIN BONDS. — Section 54A(d)(1), as restored by paragraph (1), is amended by striking subparagraphs (A), (B), and (C).
(b) CREDIT ALLOWED TO ISSUER. —
(1) IN GENERAL. — Section 6431, as in effect before repeal by Public Law 115-97, is restored as if such repeal had not taken effect.
(2) SCHOOL INFRASTRUCTURE BONDS. — Section 6431(f)(3), as restored by paragraph (1), is amended by inserting "any school infrastructure bond (as defined in section 54BB) or" before "any qualified tax credit bond".
(c) QUALIFIED ZONE ACADEMY BONDS. —
(1) IN GENERAL. — Section 54E, as in effect before repeal by Public Law 115-97, is restored as if such repeal had not taken effect.
(2) REMOVAL OF PRIVATE BUSINESS CONTRIBUTION REQUIREMENT. — Section 54E, as restored by paragraph (1), is amended —
(A) in subsection (a)(3), by inserting "and" at the end of subparagraph (A), by striking subparagraph (B), and by redesignating subparagraph (C) as subparagraph (B);
(B) by striking subsection (b); and
(C) in subsection (c)(1) —
(i) by striking "and $400,000,0000" and inserting "$400,000,000"; and
(ii) by striking "and, except as provided" and all that follows through the period at the end and inserting ", and $1,400,000,000 for 2020 and each year thereafter.".
(3) CONSTRUCTION OF A PUBLIC SCHOOL FACILITY. — Section 54E(d)(3)(A), as restored by paragraph (1), is amended by striking "rehabilitating or repairing" and inserting "constructing, rehabilitating, retrofitting, or repairing".
(d) CONFORMING AMENDMENTS. —
(1) So much of subpart I of part IV of subchapter A of chapter 1 as precedes section 54A, as in effect before repeal by Public Law 115-97, is restored as if such repeal had not taken effect.
(2) The table of sections for such subpart I, as restored by paragraph (1), is amended by striking the items relating to sections 54B, 54C, 54D, and 54F.
(e) EFFECTIVE DATE. — The amendments made by this section shall apply to obligations issued after December 31, 2020.
SEC. 90112. SCHOOL INFRASTRUCTURE BONDS.
(a) IN GENERAL. — Part IV of subchapter A of chapter 1 is amended by inserting after subpart I (as restored by section 90111) the following new subpart:
"Subpart J — School Infrastructure Bonds
"Sec. 54BB. School infrastructure bonds.
"SEC. 54BB. SCHOOL INFRASTRUCTURE BONDS.
"(a) IN GENERAL. — If a taxpayer holds a school infrastructure bond on one or more interest payment dates of the bond during any taxable year, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of the credits determined under subsection (b) with respect to such dates.
"(b) AMOUNT OF CREDIT. — The amount of the credit determined under this subsection with respect to any interest payment date for a school infrastructure bond is 100 percent of the amount of interest payable by the issuer with respect to such date.
"(c) LIMITATION BASED ON AMOUNT OF TAX. —
"(1) IN GENERAL. — The credit allowed under subsection (a) for any taxable year shall not exceed the excess of —
"(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over
"(B) the sum of the credits allowable under this part (other than subpart C and this subpart).
"(2) CARRYOVER OF UNUSED CREDIT. — If the credit allowable under subsection (a) exceeds the limitation imposed by paragraph (1) for such taxable year, such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such taxable year (determined before the application of paragraph (1) for such succeeding taxable year).
"(d) SCHOOL INFRASTRUCTURE BOND. —
"(1) IN GENERAL. — For purposes of this section, the term 'school infrastructure bond' means any bond issued as part of an issue if —
"(A) 100 percent of the available project proceeds of such issue are to be used for the purposes described in section 70112 of the Moving Forward Act,
"(B) the interest on such obligation would (but for this section) be excludable from gross income under section 103,
"(C) the issue meets the requirements of paragraph (3), and
"(D) the issuer designates such bond for purposes of this section.
"(2) APPLICABLE RULES. — For purposes of applying paragraph (1) —
"(A) for purposes of section 149(b), a school infrastructure bond shall not be treated as federally guaranteed by reason of the credit allowed under section 6431(a),
"(B) for purposes of section 148, the yield on a school infrastructure bond shall be determined without regard to the credit allowed under subsection (a), and
"(C) a bond shall not be treated as a school infrastructure bond if the issue price has more than a de minimis amount (determined under rules similar to the rules of section 1273(a)(3)) of premium over the stated principal amount of the bond.
"(3) 6-YEAR EXPENDITURE PERIOD. —
"(A) IN GENERAL. — An issue shall be treated as meeting the requirements of this paragraph if, as of the date of issuance, the issuer reasonably expects 100 percent of the available project proceeds to be spent for purposes described in section 70112 of the Moving Forward Act within the 6-year period beginning on such date of issuance.
"(B) FAILURE TO SPEND REQUIRED AMOUNT OF BOND PROCEEDS WITHIN 6 YEARS. — To the extent that less than 100 percent of the available project proceeds of the issue are expended at the close of the period described in subparagraph (A) with respect to such issue, the issuer shall redeem all of the nonqualified bonds within 90 days after the end of such period. For purposes of this paragraph, the amount of the nonqualified bonds required to be redeemed shall be determined in the same manner as under section 142.
"(e) LIMITATION ON AMOUNT OF BONDS DESIGNATED. — The maximum aggregate face amount of bonds issued during any calendar year which may be designated under subsection (d) by any issuer shall not exceed the limitation amount allocated under subsection (g) for such calendar year to such issuer.
"(f) NATIONAL LIMITATION ON AMOUNT OF BONDS DESIGNATED. — The national qualified school infrastructure bond limitation for each calendar year is —
"(1) $10,000,000,000 for 2021,
"(2) $10,000,000,000 for 2022, and
"(3) $10,000,000,000 for 2023.
"(g) ALLOCATION OF LIMITATION. —
"(1) ALLOCATIONS. —
"(A) STATES. — After application of subparagraph (B) and paragraph (3)(A), the limitation applicable under subsection (f) for any calendar year shall be allocated by the Secretary among the States in proportion to the respective amounts received by all local educational agencies in each State under part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.) for the previous fiscal year relative to the total such amount received by all local educational agencies in for the most recent fiscal year ending before such calendar year.
"(B) CERTAIN POSSESSIONS. — One-half of 1 percent of the amount of the limitation applicable under subsection (f) for any calendar year shall be allocated by the Secretary to possessions of the United States other than Puerto Rico for such calendar year.
"(2) ALLOCATIONS TO SCHOOLS. — The limitation amount allocated to a State or possession under paragraph (1) shall be allocated by the State educational agency (or such other agency as is authorized under State law to make such allocation) to issuers within such State or possession in accordance with the priorities described in section 70111(c) of the Moving Forward Act and the eligibility requirements described in section 70111(b) of such Act, except that paragraph (1)(C) of such section shall not apply to the determination of eligibility for such allocation.
"(3) ALLOCATIONS FOR INDIAN SCHOOLS. —
"(A) IN GENERAL. — One-half of 1 percent of the amount of the limitation applicable under subsection (f) for any calendar year shall be allocated by the Secretary to the Secretary of the Interior for schools funded by the Bureau of Indian Affairs for such calendar year.
"(B) ALLOCATION TO SCHOOLS. — The limitation amount allocated to the Secretary of the Interior under paragraph (1) shall be allocated by such Secretary to issuers or schools funded as described in paragraph (2). In the case of amounts allocated under the preceding sentence, Indian tribal governments (as defined in section 7701(a)(40)) shall be treated as qualified issuers for purposes of this subchapter.
"(4) DIGITAL LEARNING. — Up to 10 percent of the limitation amount allocated under paragraph (1) or (3)(A) may be allocated by the State to issuers within such State to carry out activities to improve digital learning in accordance with section 70112(b) of the Moving Forward Act.
"(h) INTEREST PAYMENT DATE. — For purposes of this section, the term 'interest payment date' means any date on which the holder of record of the school infrastructure bond is entitled to a payment of interest under such bond.
"(i) SPECIAL RULES. —
"(1) INTEREST ON SCHOOL INFRASTRUCTURE BONDS INCLUDIBLE IN GROSS INCOME FOR FEDERAL INCOME TAX PURPOSES. — For purposes of this title, interest on any school infrastructure bond shall be includible in gross income.
"(2) APPLICATION OF CERTAIN RULES. — Rules similar to the rules of subsections (f), (g), (h), and (i) of section 54A shall apply for purposes of the credit allowed under subsection (a).".
(b) TRANSITIONAL COORDINATION WITH STATE LAW. — Except as otherwise provided by a State after the date of the enactment of this Act, the interest on any school infrastructure bond (as defined in section 54BB of the Internal Revenue Code of 1986, as added by this section) and the amount of any credit determined under such section with respect to such bond shall be treated for purposes of the income tax laws of such State as being exempt from Federal income tax.
(c) APPLICATION OF CERTAIN LABOR STANDARDS TO PROJECTS FINANCED WITH CERTAIN TAX-FAVORED BONDS. —
(1) IN GENERAL. — Subchapter IV of chapter 31 of the title 40, United States Code, shall apply to projects financed with the proceeds of —
(A) any school infrastructure bond (as defined in section 54BB of the Internal Revenue Code of 1986); and
(B) any qualified zone academy bond (as defined in section 54E of the Internal Revenue Code of 1986) issued after the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009.
(2) CONFORMING AMENDMENT. — Section 1601 of the American Recovery and Reinvestment Tax Act of 2009 is amended by striking paragraph (3) and redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively.
(d) CLERICAL AMENDMENTS. — The table of subparts for part IV of subchapter A of chapter 1 is amended by adding at the end the following:
"SUBPART J — SCHOOL INFRASTRUCTURE BONDS".
(e) EFFECTIVE DATE. — The amendments made by this section shall apply to obligations issued after December 31, 2020.
SEC. 90113. ANNUAL REPORT ON BOND PROGRAM.
(a) IN GENERAL. — Not later than September 30 of each fiscal year beginning after the date of the enactment of this Act, the Secretary of the Treasury shall submit to the appropriate congressional committees a report on the school infrastructure bond program.
(b) ELEMENTS. — The report under paragraph (1) shall include, with respect to the fiscal year preceding the year in which the report is submitted, the following:
(1) An identification of —
(A) each local educational agency that received funds from a school infrastructure bond; and
(B) each local educational agency that was eligible to receive such funds —
(i) but did not receive such funds; or
(ii) received less than the maximum amount of funds for which the agency was eligible.
(2) With respect to each local educational agency described in paragraph (1) —
(A) an assessment of the capacity of the agency to raise funds for the long-term improvement of public school facilities, as determined by an assessment of —
(i) the current and historic ability of the agency to raise funds for construction, renovation, modernization, and major repair projects for schools, including the ability of the agency to raise funds through imposition of property taxes;
(ii) whether the agency has been able to issue bonds to fund construction projects, including —
(I) qualified zone academy bonds under section 54E of the Internal Revenue Code of 1986; and
(II) school infrastructure bonds under section 54BB of the Internal Revenue Code of 1986; and
(iii) the bond rating of the agency;
(B) the demographic composition of the student population served by the agency, disaggregated by —
(i) race;
(ii) the number and percentage of students counted under section 1124(c) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6333(c)); and
(iii) the number and percentage of students who are eligible for a free or reduced price lunch under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.);
(C) the population density of the geographic area served by the agency;
(D) a description of the projects carried out with funds received from school infrastructure bonds;
(E) a description of the demonstrable or expected benefits of the projects; and
(F) the estimated number of jobs created by the projects.
(3) The total dollar amount of all funds received by local educational agencies from school infrastructure bonds.
(4) Any other factors that the Secretary of the Treasury determines to be appropriate.
(c) INFORMATION COLLECTION. — A State or local educational agency that receives funds from a school infrastructure bond shall —
(1) annually compile the information necessary for the Secretary of the Treasury to determine the elements described in subsection (b); and
(2) report the information to the Secretary of the Treasury at such time and in such manner as the Secretary of the Treasury may require.
Subtitle C — Other Provisions Related to Infrastructure Financing
SEC. 90121. CREDIT FOR OPERATIONS AND MAINTENANCE COSTS OF GOVERNMENT-OWNED BROADBAND.
(a) IN GENERAL. — Subchapter B of chapter 65, as amended by the preceding provisions of this Act, is amended by adding at the end the following new section:
"SEC. 6431B. CREDIT FOR OPERATIONS AND MAINTENANCE COSTS OF GOVERNMENT-OWNED BROADBAND.
"(a) IN GENERAL. — In the case of any eligible governmental entity, there shall be allowed a credit equal to the applicable percentage of the qualified broadband expenses paid or incurred by such entity during the taxable year which credit shall be payable by the Secretary as provided in subsection (b).
"(b) PAYMENT OF CREDIT. — Upon receipt from an eligible governmental entity of such information as the Secretary may require for purposes of carrying out this section, the Secretary shall pay to such entity the amount of the credit determined under subsection (a) for the taxable year.
"(c) LIMITATION. — The amount of qualified broadband expenses taken into account under this section for any taxable year with respect to any qualified broadband network shall not exceed the product of $400 multiplied by the number of qualified households subscribed to the qualified broadband service provided by such network (determined as of any time during such taxable year).
"(d) DEFINITIONS. — For purposes of this section —
"(1) APPLICABLE PERCENTAGE. — The term 'applicable percentage' means —
"(A) in the case of any taxable year beginning in 2020 through 2025, 30 percent,
"(B) in the case of any taxable year beginning in 2026, 26 percent, and
"(C) in the case of any taxable year beginning in 2027, 24 percent.
"(2) ELIGIBLE GOVERNMENTAL ENTITY. — The term 'eligible governmental entity' means —
"(A) any State, local, or Indian tribal government,
"(B) any political subdivision or instrumentality of any government described in subparagraph (A), and
"(C) any entity wholly owned by one or more entities described in subparagraph (A) or (B).
For purposes of this paragraph, the term 'State' includes any possession of the United States.
"(3) QUALIFIED BROADBAND EXPENSES. — The term 'qualified broadband expenses' means so much of the amounts paid or incurred for the operation and maintenance of a qualified broadband network as are properly allocable to qualified households subscribed to the qualified broadband service provided by such network.
"(4) QUALIFIED HOUSEHOLD. — The term 'qualified household' means a personal residence which —
"(A) is located in a low-income community (as defined in section 45D(e)), and
"(B) did not have access to qualified broadband service from the eligible governmental entity (determined as of the beginning of the taxable year of such entity).
"(5) QUALIFIED BROADBAND NETWORK. — The term 'qualified broadband network' means property owned by an eligible governmental entity and used for the purpose of providing qualified broadband service.
"(6) QUALIFIED BROADBAND SERVICE. — The term 'qualified broadband service' means fixed, terrestrial broadband service providing downloads at a speed of at least 25 megabits per second and uploads at a speed of at least 3 megabits per second.
"(7) TAXABLE YEAR. — Except as otherwise provided by the Secretary, the term 'taxable year' means, with respect to any eligible governmental entity, the fiscal year of such entity.
"(e) SPECIAL RULES. —
"(1) ALLOCATIONS. — For purposes of subsection (d)(3), amounts shall be treated as properly allocated if allocated ratably among the subscribers of the qualified broadband service.
"(2) DENIAL OF DOUBLE BENEFIT. — Qualified broadband expenses shall not include any amount which is paid or reimbursed (directly or indirectly) by any grant from the Federal Government.
"(f) REGULATIONS. — The Secretary may prescribe such regulations and other guidance as may be necessary or appropriate to carry out this section.
"(g) TERMINATION. — No credit shall be allowed under this section for any taxable year beginning after December 31, 2027.".
(a) GROSS-UP OF PAYMENT TO ISSUERS IN CASE OF SEQUESTRATION. — In the case of any payment under section 6431B(b) of the Internal Revenue Code of 1986 made after the date of the enactment of this Act to which sequestration applies, the amount of such payment shall be increased to an amount equal to —
(1) such payment (determined before such sequestration), multiplied by
(2) the quotient obtained by dividing 1 by the amount by which 1 exceeds the percentage reduction in such payment pursuant to such sequestration.
For purposes of this subsection, the term "sequestration" means any reduction in direct spending ordered in accordance with a sequestration report prepared by the Director of the Office and Management and Budget pursuant to the Balanced Budget and Emergency Deficit Control Act of 1985 or the Statutory Pay-As-You-Go Act of 2010.
(b) CONFORMING AMENDMENTS. —
(1) Section 1324(b)(2) of title 31, United States Code, is amended by striking "or 6431A" and inserting "6431A, or 6431B".
(2) The table of sections for subchapter B of chapter 65, as amended by the preceding provisions of this Act, is amended by adding at the end the following new item:
"Sec. 6431B. Credit for operations and maintenance costs of government-owned broadband.".
(c) EFFECTIVE DATE. — The amendments made by this section shall apply to taxable years beginning after December 31, 2019.
SEC. 90122. TREATMENT OF FINANCIAL GUARANTY INSURANCE COMPANIES AS QUALIFYING INSURANCE CORPORATIONS UNDER PASSIVE FOREIGN INVESTMENT COMPANY RULES.
(a) IN GENERAL. — Section 1297(f)(3) is amended by adding at the end the following new subparagraph:
"(C) SPECIAL RULE FOR FINANCIAL GUARANTY INSURANCE COMPANIES. —
"(i) IN GENERAL. — Notwithstanding subparagraphs (A)(ii) and (B), the applicable insurance liabilities of a financial guaranty insurance company shall include its unearned premium reserves if —
"(I) such company is prohibited under generally accepted accounting principles from reporting on its applicable financial statements reserves for losses and loss adjustment expenses with respect to a financial guaranty insurance or reinsurance contract except to the extent that such reserve amounts are expected to exceed the unearned premium reserves on the contract,
"(II) the applicable financial statement of such company reports financial guaranty exposure of at least 15-to-1, and
"(III) such company includes in its insurance liabilities only its unearned premium reserves relating to insurance written or assumed that is within the single risk limits set forth in subsection (D) of section 4 of the Financial Guaranty Insurance Guideline (modified by using total shareholder's equity as reported on the applicable financial statement of the company rather than aggregate of the surplus to policyholders and contingency reserves).
"(ii) FINANCIAL GUARANTY INSURANCE COMPANY. — For purposes of this subparagraph, the term 'financial guaranty insurance company' means any insurance company the sole business of which is writing or reinsuring financial guaranty insurance (as defined in subsection (A) of section 1 of the Financial Guaranty Insurance Guideline) which is permitted under subsection (B) of section 4 of such Guideline.
"(iii) FINANCIAL GUARANTY EXPOSURE. — For purposes of this subparagraph, the term 'financial guaranty exposure' means the ratio of —
"(I) the net debt service outstanding insured or reinsured by the company that is within the single risk limits set forth in the Financial Guaranty Insurance Guideline (as reported on such company's applicable financial statement), to
"(II) the company's total assets (as so reported).
"(iv) FINANCIAL GUARANTY INSURANCE GUIDELINE. — For purposes of this subparagraph —
"(I) IN GENERAL. — The term 'Financial Guaranty Insurance Guideline' means the October 2008 model regulation that was adopted by the National Association of Insurance Commissioners on December 4, 2007.
"(II) DETERMINATIONS MADE BY SECRETARY. — The determination of whether any provision of the Financial Guaranty Insurance Guideline has been satisfied shall be made by the Secretary.".
(b) REPORTING OF CERTAIN ITEMS. — Section 1297(f)(4) is amended by adding at the end the following new subparagraph:
"(C) CLARIFICATION THAT CERTAIN ITEMS ON APPLICABLE FINANCIAL STATEMENT BE SEPARATELY REPORTED WITH RESPECT TO CORPORATION. — An amount described in paragraph (1)(B) or clause (i)(II), (i)(III), (iii)(I), or (iii)(II) of paragraph (3)(C) shall not be treated as reported on an applicable financial statement for purposes of this section unless such amount is separately reported on such statement with respect to the corporation referred to in paragraph (1).
"(D) AUTHORITY OF SECRETARY TO REQUIRE REPORTING. —
"(i) IN GENERAL. — Each United States person who owns an interest in a specified non-publicly traded foreign corporation and who takes the position that such corporation is not a passive foreign investment company shall report to the Secretary such information with respect to such corporation as the Secretary may require.
"(ii) SPECIFIED NON-PUBLICLY TRADED FOREIGN CORPORATION. — For purposes of this subparagraph, the term 'specified non-publicly traded foreign corporation' means any foreign corporation —
"(I) which would be a passive foreign investment company if subsection (b)(2)(B) did not apply, and
"(II) no interest in which is traded on an established securities market.".
(c) EFFECTIVE DATE. —
(1) IN GENERAL. — Except as otherwise provided in this subsection, the amendments made by this section shall take effect as if included in section 14501 of Public Law 115-97.
(2) REPORTING. — The amendment made by subsection (b) shall apply to reports made after the date of the enactment of this Act.
SEC. 90123. INFRASTRUCTURE GRANTS TO IMPROVE CHILD CARE SAFETY.
(a) IN GENERAL. — Part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) is amended by inserting after section 418 the following:
"SEC. 418A. INFRASTRUCTURE GRANTS TO IMPROVE CHILD CARE SAFETY.
"(a) SHORT TITLE. — This section may be cited as the 'Infrastructure Grants To Improve Child Care Safety Act of 2020'.
"(b) NEEDS ASSESSMENTS. —
"(1) IMMEDIATE NEEDS ASSESSMENT. —
"(A) IN GENERAL. — The Secretary shall conduct an immediate needs assessment of the condition of child care facilities throughout the United States (with priority given to child care facilities that receive Federal funds), that —
"(i) determines the extent to which the COVID-19 pandemic has created immediate infrastructure needs, including infrastructure-related health and safety needs, which must be addressed for child care facilities to operate in compliance with public health guidelines;
"(ii) considers the effects of the pandemic on a variety of child care centers, including home-based centers; and
"(iii) considers how the pandemic has impacted specific metrics, such as —
"(I) capacity;
"(II) investments in infrastructure changes;
"(III) the types of infrastructure changes centers need to implement and their associated costs;
"(IV) the price of tuition; and "(V) any changes or anticipated changes in the number and demographic of children attending.
"(B) TIMING. — The immediate needs assessment should occur simultaneously with the first grant-making cycle under subsection (c).
"(C) REPORT. — Not later than 1 year after the date of the enactment of this section, the Secretary shall submit to the Congress a report containing the result of the needs assessment conducted under subparagraph (A), and make the assessment publicly available.
"(2) LONG-TERM NEEDS ASSESSMENT. —
"(A) IN GENERAL. — The Secretary shall conduct a long-term assessment of the condition of child care facilities throughout the United States (with priority given to child care facilities that receive Federal funds). The assessment may be conducted through representative random sampling.
"(B) REPORT. — Not later than 4 years after the date of the enactment of this section, the Secretary shall submit to the Congress a report containing the results of the needs assessment conducted under subparagraph (A), and make the assessment publicly available.
"(c) CHILD CARE FACILITIES GRANTS. —
"(1) GRANTS TO STATES. —
"(A) IN GENERAL. — The Secretary may award grants to States for the purpose of acquiring, constructing, renovating, or improving child care facilities, including adapting, reconfiguring, or expanding facilities to respond to the COVID-19 pandemic.
"(B) PRIORITIZED FACILITIES. — The Secretary may not award a grant to a State under subparagraph (A) unless the State involved agrees, with respect to the use of grant funds, to prioritize —
"(i) child care facilities primarily serving low-income populations;
"(ii) child care facilities primarily serving children who have not attained the age of 5 years;
"(iii) child care facilities that closed during the COVID-19 pandemic and are unable to open without making modifications to the facility that would otherwise be required to ensure the health and safety of children and staff; and
"(iv) child care facilities that serve the children of parents classified as essential workers during the COVID-19 pandemic.
"(C) DURATION OF GRANTS. — A grant under this subsection shall be awarded for a period of not more than 5 years.
"(D) APPLICATION. — To seek a grant under this subsection, a State shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, which information shall —
"(i) be disaggregated as the Secretary may require; and
"(ii) include a plan to use a portion of the grant funds to report back to the Secretary on the impact of using the grant funds to improve child care facilities.
"(E) PRIORITY. — In selecting States for grants under this subsection, the Secretary shall prioritize States that —
"(i) plan to improve center-based and home-based child care programs, which may include a combination of child care and early Head Start or Head Start programs;
"(ii) aim to meet specific needs across urban, suburban, or rural areas as determined by the State; and
"(iii) show evidence of collaboration with —
"(I) local government officials;
"(II) other State agencies;
"(III) nongovernmental organizations, such as —
"(aa) organizations within the philanthropic community;
"(bb) certified community development financial institutions as defined in section 103 of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702) that have been certified by the Community Development Financial Institutions Fund (12 U.S.C. 4703); and
"(cc) organizations that have demonstrated experience in —
"(AA) providing technical or financial assistance for the acquisition, construction, renovation, or improvement of child care facilities;
"(BB) providing technical, financial, or managerial assistance to child care providers; and
"(CC) securing private sources of capital financing for child care facilities or other low-income community development projects; and
"(IV) local community organizations, such as —
"(aa) child care providers;
"(bb) community care agencies;
"(cc) resource and referral agencies; and
"(dd) unions.
"(F) CONSIDERATION. — In selecting States for grants under this subsection, the Secretary shall consider —
"(i) whether the applicant —
"(I) has or is developing a plan to address child care facility needs; and
"(II) demonstrates the capacity to execute such a plan; and
"(ii) after the date the report required by subsection (b)(1)(C) is submitted to the Congress, the needs of the applicants based on the results of the assessment.
"(G) DIVERSITY OF AWARDS. — In awarding grants under this section, the Secretary shall give equal consideration to States with varying capacities under subparagraph (F).
"(H) MATCHING REQUIREMENT. —
"(i) IN GENERAL. — As a condition for the receipt of a grant under subparagraph (A), a State that is not an Indian tribe shall agree to make available (directly or through donations from public or private entities) contributions with respect to the cost of the activities to be carried out pursuant to subparagraph (A), which may be provided in cash or in kind, in an amount equal to 10 percent of the funds provided through the grant.
"(ii) DETERMINATION OF AMOUNT CONTRIBUTED. — Contributions required by clause (i) may include —
"(I) amounts provided by the Federal Government, or services assisted or subsidized to any significant extent by the Federal Government; or
"(II) philanthropic or private-sector funds.
"(I) REPORT. — Not later than 6 months after the last day of the grant period, a State receiving a grant under this paragraph shall submit a report to the Secretary as described in subparagraph (D) —
"(i) to determine the effects of the grant in constructing, renovating, or improving child care facilities, including any changes in response to the COVID-19 pandemic and any effects on access to and quality of child care; and
"(ii) to provide such other information as the Secretary may require.
"(J) AMOUNT LIMIT. — The annual amount of a grant under this paragraph may not exceed $35,000,000.
"(2) GRANTS TO INTERMEDIARY ORGANIZATIONS. —
"(A) IN GENERAL. — The Secretary may award grants to intermediary organizations, such as certified community development financial institutions, tribal organizations, or other organizations with demonstrated experience in child care facilities financing, for the purpose of providing technical assistance, capacity building, and financial products to develop or finance child care facilities.
"(B) APPLICATION. — A grant under this paragraph may be made only to intermediary organizations that submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require.
"(C) PRIORITY. — In selecting intermediary organizations for grants under this subsection, the Secretary shall prioritize intermediary organizations that —
"(i) demonstrate experience in child care facility financing or related community facility financing;
"(ii) demonstrate the capacity to assist States and local governments in developing child care facilities and programs;
"(iii) demonstrate the ability to leverage grant funding to support financing tools to build the capacity of child care providers, such as through credit enhancements;
"(iv) propose to meet a diversity of needs across States and across urban, suburban, and rural areas at varying types of center-based, home-based, and other child care settings, including early care programs located in freestanding buildings or in mixed-use properties; and
"(v) propose to focus on child care facilities primarily serving low-income populations and children who have not attained the age of 5 years.
"(D) AMOUNT LIMIT. — The amount of a grant under this paragraph may not exceed $10,000,000.
"(3) REPORT. — Not later than the end of fiscal year 2024, the Secretary shall submit to the Congress a report on the effects of the grants provided under this subsection, and make the report publically accessible.
"(d) LIMITATIONS ON AUTHORIZATION OF APPROPRIATIONS. —
"(1) IN GENERAL. — To carry out this section, there is authorized to be appropriated $10,000,000,000 for fiscal year 2020, which shall remain available through fiscal year 2024.
"(2) RESERVATIONS OF FUNDS. —
"(A) INDIAN TRIBES. — The Secretary shall reserve 3 percent of the total amount made available to carry out this section, for payments to Indian tribes.
"(B) TERRITORIES. — The Secretary shall reserve 3 percent of the total amount made available to carry out this section, for payments to territories.
"(3) GRANTS FOR INTERMEDIARY ORGANIZATIONS. — Not less than 10 percent and not more than 15 percent of the total amount made available to carry out this section may be used to carry out subsection (c)(2).
"(4) LIMITATION ON USE OF FUNDS FOR NEEDS ASSESSMENTS. — Not more than $5,000,000 of the amounts made available to carry out this section may be used to carry out subsection (b).
"(e) DEFINITION OF STATE. — In this section, the term 'State' has the meaning provided in section 419, except that it includes the Commonwealth of the Northern Mariana Islands and any Indian tribe.".
(b) EXEMPTION OF TERRITORY GRANTS FROM LIMITATION ON TOTAL PAYMENTS TO THE TERRITORIES. — Section 1108(a)(2) of such Act (42 U.S.C. 1308(a)(2)) is amended by inserting "418A(c)," after "413(f),".
TITLE II — NEW MARKETS TAX CREDIT
SEC. 90201. IMPROVEMENT AND PERMANENT EXTENSION OF NEW MARKETS TAX CREDIT.
(a) PERMANENT EXTENSION. —
(1) IN GENERAL. — Section 45D(f)(1) is amended by striking subparagraphs (G) and (H) and inserting the following new subparagraphs:
"(G) $3,500,000,000 for each of calendar years 2010 through 2018,
"(H) $4,000,000,000 for calendar year 2019,
"(I) $7,000,000,000 for calendar year 2020,
"(J) $6,000,000,000 for calendar year 2021,
"(K) $5,000,000,000 for calendar year 2022 and each calendar year thereafter.".
(2) INFLATION ADJUSTMENT. — Section 45D(f) is amended by adding at the end the following new paragraph:
"(4) INFLATION ADJUSTMENT. —
"(A) IN GENERAL. — In the case of any calendar year beginning after 2022, the dollar amount in paragraph (1)(I) shall be increased by an amount equal to —
"(i) such dollar amount, multiplied by
"(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting 'calendar year 2021' for 'calendar year 2016' in subparagraph (A)(ii) thereof.
"(B) ROUNDING RULE. — Any increase under subparagraph (A) which is not a multiple of $1,000,000 shall be rounded to the nearest multiple of $1,000,000.".
(3) CONFORMING AMENDMENT. — Section 45D(f)(3) is amended by striking the last sentence.
(b) ALTERNATIVE MINIMUM TAX RELIEF. — Subparagraph (B) of section 38(c)(4) is amended —
(1) by redesignating clauses (v) through (xii) as clauses (vi) through (xiii), respectively, and
(2) by inserting after clause (iv) the following new clause:
"(v) the credit determined under section 45D, but only with respect to credits determined with respect to qualified equity investments (as defined in section 45D(b)) initially made after December 31, 2020,".
(c) EFFECTIVE DATES. —
(1) IN GENERAL. — Except as otherwise provided in this subsection, the amendments made by this section shall apply to new markets tax credit limitation determined for calendar years after 2020.
(2) ALTERNATIVE MINIMUM TAX RELIEF. — The amendments made by subsection (b) shall apply to credits determined with respect to qualified equity investments (as defined in section 45D(b) of the Internal Revenue Code of 1986) initially made after December 31, 2020.
(3) SPECIAL RULE FOR ALLOCATION OF INCREASED 2019 LIMITATION. — The amount of the increase in the new market tax credit limitation for calendar year 2019 by reason of the amendments made by subsection (a) shall be allocated in accordance with section 45D(f)(2) of the Internal Revenue Code of 1986 to qualified community development entities (as defined in section 45D(c) of such Code) which —
(A) submitted an allocation application with respect to calendar year 2019, and
(B) either —
(i) did not receive an allocation for such calendar year, or
(ii) received an allocation for such calendar year in an amount less than the amount requested in the allocation application.
TITLE III — REHABILITATION TAX CREDIT
SEC. 90301. INCREASE IN REHABILITATION CREDIT.
(a) IN GENERAL. — Section 47(a)(2) is amended by striking "20 percent" and inserting "the applicable percentage".
(b) APPLICABLE PERCENTAGE. — Section 47(a) is amended by adding at the end the following new paragraph:
"(3) APPLICABLE PERCENTAGE. — For purposes of this subsection, the term 'applicable percentage' means the percentage determined in accordance with the following table:
"In the case of a taxable year beginning in | The applicable percentage is: |
2020 through 2024 | 30 percent |
2025 | 26 percent |
2026 | 23 percent |
2027 and thereafter | 20 percent". |
(c) EFFECTIVE DATE. — The amendments made by this section shall apply to taxable years beginning after December 31, 2019.
SEC. 90302. INCREASE IN THE REHABILITATION CREDIT FOR CERTAIN SMALL PROJECTS.
(a) IN GENERAL. — Section 47 is amended by adding at the end the following new subsection:
"(e) SPECIAL RULE REGARDING CERTAIN SMALLER PROJECTS. —
"(1) IN GENERAL. — In the case of any smaller project —
"(A) the applicable percentage determined under subsection (a)(3) shall not be less than 30 percent, and
"(B) the qualified rehabilitation expenditures taken into account under this section with respect to such project shall not exceed $2,500,000.
"(2) SMALLER PROJECT. — For purposes of this subsection, the term 'smaller project' means the rehabilitation of any qualified rehabilitated building if —
"(A) the qualified rehabilitation expenditures taken into account under this section (or which would be so taken into account but for paragraph (1)(B)) with respect to such rehabilitation do not exceed $3,750,000,
"(B) no credit was allowed under this section with respect to such building to any taxpayer for either of the 2 taxable years immediately preceding the first taxable year in which expenditures described in subparagraph (A) were paid or incurred, and
"(C) the taxpayer elects (at such time and manner as the Secretary may provide) to have this subsection apply with respect to such rehabilitation.".
(b) EFFECTIVE DATE. — The amendment made by this section shall apply to taxable years beginning after December 31, 2019.
SEC. 90303. MODIFICATION OF DEFINITION OF SUBSTANTIALLY REHABILITATED.
(a) IN GENERAL. — Section 47(c)(1)(B)(i)(I) is amended by inserting "50 percent of" before "the adjusted basis".
(b) EFFECTIVE DATE. — The amendment made by subsection (a) shall apply to determinations with respect to 24-month periods (referred to in clause (i) of section 47(c)(1)(B) of the Internal Revenue Code of 1986) and 60-month periods (referred to in clause (ii) of such section) which begin after the date of the enactment of this Act.
SEC. 90304. TEMPORARY EXTENSION OF PERIOD FOR COMPLETING REHABILITATION.
(a) IN GENERAL. — Section 47(c)(1)(B) is amended by adding at the end the following new clause:
"(iv) TEMPORARY EXTENSION OF PERIOD FOR COMPLETING REHABILITATION. — In the case of any period selected by a taxpayer which includes March 13, 2020 (determined without regard to this clause), this subparagraph (and section 13402(b)(2) of Public Law 115-97) shall be applied —
"(I) by substituting '36-month' for '24-month' each place it appears therein, and
"(II) by substituting '72-month' for '60-month' each place it appears therein.".
(b) EFFECTIVE DATE. — The amendment made by this section shall apply to periods which include March 13, 2020 (determined without regard to such amendment).
SEC. 90305. ELIMINATION OF REHABILITATION CREDIT BASIS ADJUSTMENT.
(a) IN GENERAL. — Section 50(c) is amended by adding at the end the following new paragraph:
"(6) EXCEPTION FOR REHABILITATION CREDIT. — In the case of the rehabilitation credit, paragraph (1) shall not apply.".
(b) TREATMENT IN CASE OF CREDIT ALLOWED TO LESSEE. — Section 50(d) is amended by adding at the end the following: "In the case of the rehabilitation credit, paragraph (5)(B) of the section 48(d) referred to in paragraph (5) of this subsection shall not apply.".
(c) EFFECTIVE DATE. — The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
SEC. 90306. MODIFICATIONS REGARDING CERTAIN TAX-EXEMPT USE PROPERTY.
(a) IN GENERAL. — Section 47(c)(2)(B)(v) is amended by adding at the end the following new subclause:
"(III) DISQUALIFIED LEASE RULES TO APPLY ONLY IN CASE OF GOVERNMENT ENTITY. — For purposes of subclause (I), except in the case of a tax-exempt entity described in section 168(h)(2)(A)(i) (determined without regard to the last sentence of section 168(h)(2)(A)), the determination of whether property is tax-exempt use property shall be made under section 168(h) without regard to whether the property is leased in a disqualified lease (as defined in section 168(h)(1)(B)(ii)).".
(b) EFFECTIVE DATE. — The amendments made by this section shall apply to leases entered into after the date of the enactment of this Act.
SEC. 90307. QUALIFICATION OF REHABILITATION EXPENDITURES FOR PUBLIC SCHOOL BUILDINGS FOR REHABILITATION CREDIT.
(a) IN GENERAL. — Section 47(c)(2)(B)(v) is amended by adding at the end the following new subclause:
"(III) CLAUSE NOT TO APPLY TO PUBLIC SCHOOLS. — This clause shall not apply in the case of the rehabilitation of any building which was used as a qualified public educational facility (as defined in section 142(k)(1), determined without regard to subparagraph (B) thereof) at any time during the 5-year period ending on the date that such rehabilitation begins and which is used as such a facility immediately after such rehabilitation.".
(b) REPORT. — Not later than the date which is 5 years after the date of the enactment of this Act, the Secretary of the Treasury, after consultation with the heads of appropriate Federal agencies, shall report to Congress on the effects resulting from the amendment made by subsection (a).
(c) EFFECTIVE DATE. — The amendment made by this section shall apply to property placed in service after the date of the enactment of this Act.
TITLE IV — GREEN ENERGY
SEC. 90400. SHORT TITLE.
This title may be cited as the "Growing Renewable Energy and Efficiency Now Act of 2020" or the "GREEN Act of 2020".
Subtitle A — Renewable Electricity and Reducing Carbon Emissions
SEC. 90401. EXTENSION OF CREDIT FOR ELECTRICITY PRODUCED FROM CERTAIN RENEWABLE RESOURCES.
(a) IN GENERAL. — The following provisions of section 45(d) are each amended by striking "January 1, 2021" each place it appears and inserting "January 1, 2026":
(1) Paragraph (2)(A).
(2) Paragraph (3)(A).
(3) Paragraph (6).
(4) Paragraph (7).
(5) Paragraph (9).
(6) Paragraph (11)(B).
(b) EXTENSION OF ELECTION TO TREAT QUALIFIED FACILITIES AS ENERGY PROPERTY. — Section 48(a)(5)(C)(ii) is amended by striking "January 1, 2021" and inserting "January 1, 2026".
(c) APPLICATION OF EXTENSION TO WIND FACILITIES. —
(1) IN GENERAL. — Section 45(d)(1) is amended by striking "January 1, 2021" and inserting "January 1, 2026".
(2) APPLICATION OF PHASEOUT PERCENTAGE. —
(A) RENEWABLE ELECTRICITY PRODUCTION CREDIT. — Sections 45(b)(5)(D) is amended by striking "and before January 1, 2021,".
(B) ENERGY CREDIT. — Section 48(a)(5)(E)(iv) is amended by striking "and before January 1, 2021,".
(d) EFFECTIVE DATE. — The amendments made by this section shall apply to facilities the construction of which begins after December 31, 2020.
SEC. 90402. EXTENSION AND MODIFICATION OF ENERGY CREDIT.
(a) EXTENSION OF CREDIT. — The following provisions of section 48 are each amended by striking "January 1, 2022" each place it appears and inserting "January 1, 2027":
(1) Subsection (a)(3)(A)(ii).
(2) Subsection (a)(3)(A)(vii).
(3) Subsection (c)(1)(D).
(4) Subsection (c)(2)(D).
(5) Subsection (c)(3)(A)(iv).
(6) Subsection (c)(4)(C).
(b) PHASEOUT OF CREDIT. — Section 48(a) is amended
(1) by striking "December 31, 2019" in paragraphs (6)(A)(i) and (7)(A)(i) and inserting "December 31, 2025",
(2) by striking "December 31, 2020" in paragraphs (6)(A)(ii) and (7)(A)(ii) and inserting "December 31, 2026",
(3) by striking "January 1, 2021" in paragraphs (6)(A)(i) and (7)(A)(i) and inserting "January 1, 2027",
(4) by striking "January 1, 2022" each place it appears in paragraphs (6)(A), (6)(B), and (7)(A) and inserting "January 1, 2028", and
(5) by striking "January 1, 2024" in paragraphs (6)(B) and (7)(B) and inserting "January 1, 2030".
(c) 30 PERCENT CREDIT FOR SOLAR AND GEOTHERMAL. —
(1) EXTENSION FOR SOLAR. — Section 48(a)(2)(A)(i)(II) is amended by striking "January 1, 2022" and inserting "January 1, 2028".
(2) APPLICATION TO GEOTHERMAL. —
(A) IN GENERAL. — Paragraphs (2)(A)(i)(II), (6)(A), and (6)(B) of section 48(a) are each amended by striking "paragraph (3)(A)(i)" and inserting "clause (i) or (iii) of paragraph (3)(A)".
(B) CONFORMING AMENDMENT. — The heading of section 48(a)(6) is amended by inserting "AND GEOTHERMAL" after "SOLAR ENERGY".
(d) ENERGY STORAGE TECHNOLOGIES; WASTE ENERGY RECOVERY PROPERTY; QUALIFIED BIOGAS PROPERTY. —
(1) IN GENERAL. — Section 48(a)(3)(A) is amended by striking "or" at the end of clause (vi), and by adding at the end the following new clauses:
"(viii) energy storage technology,
"(ix) waste energy recovery property, or
"(x) qualified biogas property,".
(2) APPLICATION OF 30 PERCENT CREDIT. — Section 48(a)(2)(A)(i) is amended by striking "and" at the end of subclauses (III) and (IV) and adding at the end the following new subclauses:
"(V) energy storage technology,
"(VI) waste energy recovery property, and
"(VII) qualified biogas property, and".
(3) APPLICATION OF PHASEOUT. — Section 48(a)(7) is amended —
(A) by inserting "energy storage technology, waste energy recovery property, qualified biogas property," after "qualified small wind property,", and
(B) by striking "FIBER-OPTIC SOLAR, QUALIFIED FUEL CELL, AND QUALIFIED SMALL WIND" in the heading thereof and inserting "CERTAIN OTHER".
(4) DEFINITIONS. — Section 48(c) is amended by adding at the end the following new paragraphs:
"(5) ENERGY STORAGE TECHNOLOGY. —
"(A) IN GENERAL. — The term 'energy storage technology' means equipment (other than equipment primarily used in the transportation of goods or individuals and not for the production of electricity) which —
"(i) uses batteries, compressed air, pumped hydropower, hydrogen storage (including hydrolysis and electrolysis), thermal energy storage, regenerative fuel cells, flywheels, capacitors, superconducting magnets, or other technologies identified by the Secretary, after consultation with the Secretary of Energy, to store energy for conversion to electricity and has a capacity of not less than 5 kilowatt hours, or
"(ii) stores thermal energy to heat or cool (or provide hot water for use in) a structure (other than for use in a swimming pool).
"(B) TERMINATION. — The term 'energy storage technology' shall not include any property the construction of which does not begin before January 1, 2028.
"(6) WASTE ENERGY RECOVERY PROPERTY. —
"(A) IN GENERAL. — The term 'waste energy recovery property' means property that generates electricity solely from heat from buildings or equipment if the primary purpose of such building or equipment is not the generation of electricity.
"(B) CAPACITY LIMITATION. — The term 'waste energy recovery property' shall not include any property which has a capacity in excess of 50 megawatts.
"(C) NO DOUBLE BENEFIT. — Any waste energy recovery property (determined without regard to this subparagraph) which is part of a system which is a combined heat and power system property shall not be treated as waste energy recovery property for purposes of this section unless the taxpayer elects to not treat such system as a combined heat and power system property for purposes of this section.
"(D) TERMINATION. — The term 'waste energy recovery property' shall not include any property the construction of which does not begin before January 1, 2028.
"(7) QUALIFIED BIOGAS PROPERTY. —
"(A) IN GENERAL. — The term 'qualified biogas property' means property comprising a system which —
"(i) converts biomass (as defined in section 45K(c)(3)) into a gas which —
"(I) consists of not less than 52 percent methane, or use.
"(II) is concentrated by such system into a gas which consists of not less than 52 percent methane, and "(ii) captures such gas for productive use.
"(B) INCLUSION OF CLEANING AND CONDITIONING PROPERTY. — The term 'qualified biogas property' includes any property which is part of such system which cleans or conditions such gas.
"(C) TERMINATION. — The term 'qualified biogas property' shall not include any property the construction of which does not begin before January 1, 2028.".
(5) DENIAL OF DOUBLE BENEFIT FOR QUALIFIED BIOGAS PROPERTY. — Section 45(e) is amended by adding at the end the following new paragraph:
"(12) COORDINATION WITH ENERGY CREDIT FOR QUALIFIED BIOGAS PROPERTY. — The term 'qualified facility' shall not include any facility which produces electricity from gas produced by qualified biogas property (as defined in section 48(c)(7)) if a credit is determined under section 48 with respect to such property for the taxable year or any prior taxable year.".
(e) FUEL CELLS USING ELECTROMECHANICAL PROCESSES. —
(1) IN GENERAL. — Section 48(c)(1) is amended —
(A) in subparagraph (A)(i) —
(i) by inserting "or electromechanical" after "electrochemical", and
(ii) by inserting "(1 kilowatts in the case of a fuel cell power plant with a linear generator assembly)" after "0.5 kilowatt", and
(B) in subparagraph (C) —
(i) by inserting ", or linear generator assembly," after "a fuel cell stack assembly", and
(ii) by inserting "or electromechanical" after "electrochemical".
(2) LINEAR GENERATOR ASSEMBLY LIMITATION. — Section 48(c)(1) is amended by redesignating subparagraph (D) as subparagraph (E) and by inserting after subparagraph (C) the following new subparagraph:
"(D) LINEAR GENERATOR ASSEMBLY. — The term 'linear generator assembly' does not include any assembly which contains rotating parts.".
(f) EFFECTIVE DATE. — The amendments made by this section shall apply to periods after December 31, 2020, under rules similar to the rules of section 48(m) as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990.
SEC. 90403. EXTENSION OF CREDIT FOR CARBON OXIDE SEQUESTRATION.
(a) IN GENERAL. — Section 45Q(d)(1) is amended by striking "January 1, 2024" and inserting "January 1, 2026".
(b) EFFECTIVE DATE. — The amendment made by this section applies to facilities the construction of which begins after December 31, 2023.
SEC. 90404. ELECTIVE PAYMENT FOR ENERGY PROPERTY AND ELECTRICITY PRODUCED FROM CERTAIN RENEWABLE RESOURCES, ETC.
(a) IN GENERAL. — Subchapter B of chapter 65 is amended by adding at the end the following new section:
"SEC. 6431. ELECTIVE PAYMENT FOR ENERGY PROPERTY, ELECTRICITY PRODUCED FROM CERTAIN RENEWABLE RESOURCES, ETC, AND CARBON OXIDE SEQUESTRATION.
"(a) ENERGY PROPERTY. — In the case of a taxpayer making an election (at such time and in such manner as the Secretary may provide) under this section with respect to any portion of an applicable credit, such taxpayer shall be treated as making a payment against the tax imposed by subtitle A for the taxable year equal to —
"(1) in the case of an Indian tribal government, the amount of such portion, and
"(2) in the case of any other taxpayer, 85 percent of such amount.
"(b) DEFINITIONS AND SPECIAL RULES. — For purposes of this section —
"(1) GOVERNMENTAL ENTITIES TREATED AS TAXPAYERS. — In the case of an election under this section —
"(A) any State or local government, or a political subdivision thereof, or
"(B) an Indian tribal government, shall be treated as a taxpayer for purposes of this section and determining any applicable credit.
"(2) APPLICABLE CREDIT. — The term 'applicable credit' means each of the following credits that would (without regard to this section) be determined with respect to the taxpayer:
"(A) A energy credit under section 48.
"(B) A renewable electricity production credit under section 45.
"(C) A carbon oxide sequestration credit under section 45Q.
"(3) INDIAN TRIBAL GOVERNMENT. — The term 'Indian tribal government' shall have the meaning given such term by section 139E.
"(4) TIMING. — The payment described in subparagraph (A) shall be treated as made on —
"(A) in the case of any government, or political subdivision, to which paragraph (1) applies and for which no return is required under section 6011 or 6033(a), the later of the date that a return would be due under section 6033(a) if such government or subdivision were described in that section or the date on which such government or subdivision submits a claim for credit or refund (at such time and in such manner as the Secretary shall provide), and
"(B) in any other case, the later of the due date of the return of tax for the taxable year or the date on which such return is filed.
"(5) WAIVER OF SPECIAL RULES. — In the case of an election under this section, the determination of any applicable credit shall be without regard to paragraphs (3) and (4)(A)(i) of section 50(b).
"(c) EXCLUSION FROM GROSS INCOME. — Gross income of the taxpayer shall be determined without regard to this section.
"(d) DENIAL OF DOUBLE BENEFIT. — Solely for purposes of section 38, in the case of a taxpayer making an election under this section, the energy credit determined under section 45 or the renewable electricity production credit determined under section 48 shall be reduced by the amount of the portion of such credit with respect to which the taxpayer makes such election.".
(b) CLERICAL AMENDMENT. — The table of sections for subchapter B of chapter 65 is amended by adding at the end the following new item:
"Sec. 6431. Elective payment for energy property and electricity produced from certain renewable resources, etc.".
(c) EFFECTIVE DATE. — The amendments made by this section shall apply to property originally placed in service after the date of the enactment of this Act.
SEC. 90405. EXTENSION OF ENERGY CREDIT FOR OFFSHORE WIND FACILITIES.
(a) IN GENERAL. — Section 48(a)(5) is amended by adding at the end the following new subparagraph:
"(F) QUALIFIED OFFSHORE WIND FACILITIES. —
"(i) IN GENERAL. — In the case of any qualified offshore wind facility —
"(I) subparagraph (C)(ii) shall be applied by substituting 'January 1 of the applicable year (as determined under subparagraph (F)(ii))' for 'January 1, 2026',
"(II) subparagraph (E) shall not apply, and
"(III) for purposes of this paragraph, section 45(d)(1) shall be applied by substituting 'January 1 of the applicable year (as determined under section 48(a)(5)(F)(ii))" for 'January 1, 2026'.
"(ii) APPLICABLE YEAR. — For purposes of this subparagraph, the term 'applicable year' means the later of —
"(I) calendar year 2025, or
"(II) the calendar year subsequent to the first calendar year in which the Secretary, after consultation with the Secretary of Energy, determines that the United States has increased its offshore wind capacity by not less than 3,000 megawatts as compared to such capacity on January 1, 2021.
For purposes of subclause (II), the Secretary shall not include any increase in offshore wind capacity which is attributable to any facility the construction of which began before January 1, 2021.
"(iii) QUALIFIED OFFSHORE WIND FACILITY. — For purposes of this subparagraph, the term 'qualified offshore wind facility' means a qualified facility (within the meaning of section 45) described in paragraph (1) of section 45(d) (determined without regard to any date by which the construction of the facility is required to begin) which is located in the inland navigable waters of the United States or in the coastal waters of the United States.
"(iv) REPORT ON OFFSHORE WIND CAPACITY. — On January 15, 2024, and annually thereafter until the calendar year described in clause (ii)(II), the Secretary, after consultation with the Secretary of Energy, shall issue a report to be made available to the public which discloses the increase in the offshore wind capacity of the United States, as measured in total megawatts, since January 1, 2020.".
(b) EFFECTIVE DATE. — The amendment made by this section shall apply to periods after December 31, 2016, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1986 (as in effect on the day before the date of the enactment of the Revenue Reconciliation Act of 1990).
SEC. 90406. GREEN ENERGY PUBLICLY TRADED PARTNERSHIPS.
(a) IN GENERAL. — Section 7704(d)(1)(E) is amended —
(1) by striking "income and gains derived from the exploration" and inserting "income and gains derived from —
"(i) the exploration",
(2) by inserting "or" before "industrial source",
(3) by striking ", or the transportation or storage" and all that follows and inserting the following:
"(ii) the generation of electric power or thermal energy exclusively using any qualified energy resource (as defined in section 45(c)(1)),
"(iii) the operation of energy property (as defined in section 48(a)(3), determined without regard to any date by which the construction of the facility is required to begin),
"(iv) in the case of a facility described in paragraph (3) or (7) of section 45(d) (determined without regard to any placed in service date or date by which construction of the facility is required to begin), the accepting or processing of open-loop biomass or municipal solid waste,
"(v) the storage of electric power or thermal energy exclusively using energy property that is energy storage property (as defined in section 48(c)(5)),
"(vi) the generation, storage, or distribution of electric power or thermal energy exclusively using energy property that is combined heat and power system property (as defined in section 48(c)(3), determined without regard to subparagraph (B)(iii) thereof and without regard to any date by which the construction of the facility is required to begin),
"(vii) the transportation or storage of any fuel described in subsection (b), (c), (d), or (e) of section 6426,
"(viii) the conversion of renewable biomass (as defined in subparagraph (I) of section 211(o)(1) of the Clean Air Act (as in effect on the date of the enactment of this clause)) into renewable fuel (as defined in subparagraph (J) of such section as so in effect), or the storage or transportation of such fuel,
"(ix) the production, storage, or transportation of any fuel which —
"(I) uses as its primary feedstock carbon oxides captured from an anthropogenic source or the atmosphere,
"(II) does not use as its primary feedstock carbon oxide which is deliberately released from naturally occur ring subsurface springs, and
"(III) is determined by the Secretary, after consultation with the Secretary of Energy and the Administrator of the Environmental Protection Agency, to achieve a reduction of not less than a 60 percent in lifecycle greenhouse gas emissions (as defined in section 211(o)(1)(H) of the Clean Air Act, as in effect on the date of the enactment of this clause) compared to baseline lifecycle greenhouse gas emissions (as defined in section 211(o)(1)(C) of such Act, as so in effect),
"(x) the generation of electric power from, a qualifying gasification project (as defined in section 48B(c)(1) without regard to subparagraph (C)) that is described in section 48(d)(1)(B), or
"(xi) in the case of a qualified facility (as defined in section 45Q(d), without regard to any date by which construction of the facility is required to begin) not less than 50 percent (30 percent in the case of a facility placed in service before January 1, 2021) of the total carbon oxide production of which is qualified carbon oxide (as defined in section 45Q(c)) —
"(I) the generation, availability for such generation, or storage of electric power at such facility, or
"(II) the capture of carbon dioxide by such facility,".
(b) EFFECTIVE DATE. — The amendments made by this section apply to taxable years beginning after December 31, 2020.
Subtitle B — Renewable Fuels
SEC. 90411. BIODIESEL AND RENEWABLE DIESEL.
(a) INCOME TAX CREDIT. — Section 40A(g) is amended to read as follows:
"(g) PHASE OUT; TERMINATION. —
"(1) PHASE OUT. — In the case of any sale or use after December 31, 2022, subsections (b)(1)(A) and (b)(2)(A) shall be applied by substituting for '$1.00' —
"(A) '$.75', if such sale or use is before January 1, 2024,
"(B) '$.50', if such sale or use is after December 31, 2023, and before January 1, 2025, and
"(C) '$.33', if such sale or use is after December 31, 2024, and before January 1, 2026.
"(2) TERMINATION. — This section shall not apply to any sale or use after December 31, 2025.".
(b) EXCISE TAX INCENTIVES. —
(1) PHASE OUT. — Section 6426(c)(2) is amended to read as follows:
"(2) APPLICABLE AMOUNT. — For purposes of this subsection, the applicable amount is —
"(A) $1.00 in the case of any sale or use for any period before January 1, 2023,
"(B) $.75 in the case of any sale or use for any period after December 31, 2022, and before January 1, 2024,
"(C) $.50 in the case of any sale or use for any period after December 31, 2023, and before January 1, 2025, and
"(D) $.33 in the case of any sale or use for any period after December 31, 2024, and before January 1, 2026.".
(2) TERMINATION. —
(A) IN GENERAL. — Section 6426(c)(6) is amended by striking "December 31, 2022" and inserting "December 31, 2025".
(B) PAYMENTS. — Section 6427(e)(6)(B) is amended by striking "December 31, 2022" and inserting "December 31, 2025".
(c) EFFECTIVE DATE. — The amendments made by this section shall apply to fuel sold or used after December 31, 2022.
SEC. 90412. EXTENSION OF EXCISE TAX CREDITS RELATING TO ALTERNATIVE FUELS.
(a) EXTENSION AND PHASEOUT OF ALTERNATIVE FUEL CREDIT. —
(1) IN GENERAL. — Section 6426(d)(1) is amended by striking "50 cents" and inserting "the applicable amount".
(2) APPLICABLE AMOUNT AND TERMINATION. — Section 6426(d)(5) is amended to read as follows:
"(5) PHASEOUT AND TERMINATION. —
"(A) PHASEOUT. — For purposes of this subsection, the applicable amount is —
"(i) 50 cents in the case of any sale or use for any period before January 1, 2023,
"(ii) 38 cents in the case of any sale or use for any period after December 31, 2022, and before January 1, 2024,
"(iii) 25 cents in the case of any sale or use for any period after December 31, 2023, and before January 1, 2025, and
"(iv) 17 cents in the case of any sale or use for any period after December 31, 2024, and before January 1, 2026.
"(B) TERMINATION. — This subsection shall not apply to any sale or use for any period after December 31, 2025.".
(b) ALTERNATIVE FUEL MIXTURE CREDIT. —
(1) IN GENERAL. — Section 6426(e)(3) is amended by striking "December 31, 2020" and inserting "December 31, 2025".
(2) PHASEOUT. — Section 6426(e)(1) is amended by striking "50 cents" and inserting "the applicable amount (as defined in subsection (d)(5)(A))".
(c) PAYMENTS FOR ALTERNATIVE FUELS. — Section 6427(e)(6)(C) is amended by striking "December 31, 2020" and inserting "December 31, 2025".
(d) EFFECTIVE DATE. — The amendments made by this section shall apply to fuel sold or used after December 31, 2020.
SEC. 90413. EXTENSION OF SECOND GENERATION BIOFUEL INCENTIVES.
(a) IN GENERAL. — Section 40(b)(6)(J)(i) is amended by striking "2021" and inserting "2026".
(b) EXTENSION OF SPECIAL ALLOWANCE FOR DEPRECIATION OF SECOND GENERATION BIOFUEL PLANT PROPERTY. — Section 168(l)(2)(D) is amended by striking "2021" and inserting "2026".
(c) EFFECTIVE DATE. —
(1) IN GENERAL. — The amendment made by subsection (a) shall apply to qualified second generation biofuel production after December 31, 2020.
(2) SECOND GENERATION BIOFUEL PLANT PROPERTY. — The amendment made by subsection (b) shall apply to property placed in service after December 31, 2020.
Subtitle C — Green Energy and Efficiency Incentives for Individuals
SEC. 90421. EXTENSION, INCREASE, AND MODIFICATIONS OF NONBUSINESS ENERGY PROPERTY CREDIT.
(a) EXTENSION OF CREDIT. — Section 25C(g)(2) is amended by striking "December 31, 2020" and inserting "December 31, 2025".
(b) INCREASE IN CREDIT PERCENTAGE FOR QUALIFIED ENERGY EFFICIENCY IMPROVEMENTS. — Section 25C(a)(1) is amended by striking "10 percent" and inserting "15 percent"
(c) INCREASE IN LIFETIME LIMITATION OF CREDIT. — Section 25C(b)(1) is amended —
(1) by striking "$500" and inserting "$1,200", and
(2) by striking "December 31, 2005" and inserting "December 31, 2020".
(d) LIMITATIONS. — Section 25C(b) is amended by striking paragraphs (2) and (3) and inserting the following:
"(2) LIMITATION ON QUALIFIED ENERGY EFFICIENCY IMPROVEMENTS. — The credit allowed under this section by reason of subsection (a)(1), with respect to costs paid or incurred by a taxpayer for a taxable year, shall not exceed —
"(A) for components described in subsection (c)(3)(A), the excess (if any) of $600 over the aggregate credits allowed under this section with respect to such components for all prior taxable years ending after December 31, 2020,
"(B) for components described in subsection (c)(3)(B),
"(i) in the case of components which are not described in clause (ii), the excess (if any) of $200 over the aggregate credits allowed under this section with respect to such components for all prior taxable years ending after December 31, 2020, and
"(ii) in the case of components which meet the standards for most efficient certification under applicable Energy Star program requirements, the excess (if any) of $600 over the aggregate credits allowed under this section with respect to such components for all prior taxable years ending after December 31, 2020, or with respect to components described in clause (i) for such taxable year,
"(C) for components described in subsection (c)(3)(C) by any taxpayer for any taxable year, the credit allowed under this section with respect to such amounts for such year shall not exceed the lesser of —
"(i) the excess (if any) of $500 over the aggregate credits allowed under this section with respect to such amounts for all prior taxable years ending after December 31, 2020, or
"(ii) $250 for each exterior door.
"(3) LIMITATION ON RESIDENTIAL ENERGY PROPERTY EXPENDITURES. — The credit allowed under this section by reason of subsection (a)(2) shall not, with respect to an item of property, exceed —
"(A) in the case of property described in subparagraph (A), (B), or (C) of subsection (d)(3), $600, and
"(B) for the case of property described in subparagraph (D) of subsection (d)(3), $400, and
"(C) in the case of a hot water boiler, $600, and
"(D) in the case of a furnace, an amount equal to the sum of —
"(i) $300, plus
"(ii) if the taxpayer is converting from a non-condensing furnace to a condensing furnace, $300.".
(e) STANDARDS FOR ENERGY EFFICIENT BUILDING ENVELOPE COMPONENTS. — Section 25C(c)(2) is amended by striking "meets — " and all that follows through the period at the end and inserting the following: "meets —
"(A) in the case of an exterior window, a skylight, or an exterior door, applicable Energy Star program requirements, and
"(B) in the case of any other component, the prescriptive criteria for such component established by the 2018 IECC (as such term is defined in section 45L(b)(5)).".
(f) ROOFS NOT BUILDING ENVELOPE COMPONENTS. — Section 25C(c)(3) is amended by adding "and" at the end of subparagraph (B), by striking ", and" at the end of subparagraph (C) and inserting a period, and by striking subparagraph (D).
(g) ADVANCED MAIN AIR CIRCULATING FANS NOT QUALIFIED ENERGY PROPERTY. —
(1) IN GENERAL. — Section 25C(d)(2)(A) is amended by adding "or" at the end of clause (i), by striking ", or" at the end of clause (ii) and inserting a period, and by striking clause (iii).
(2) CONFORMING AMENDMENT. — Section 25C(d) is amended by striking paragraph (5) and redesignating paragraph (6) as paragraph (5).
(h) INCREASE IN STANDARD FOR ELECTRIC HEAT PUMP WATER HEATER. — Section 25C(d)(3)(A) is amended by striking "an energy factor of at least 2.0" and inserting "a uniform energy factor of at least 3.0".
(i) UPDATE OF STANDARDS FOR CERTAIN ENERGYEFFICIENT BUILDING PROPERTY. — Section 25C(d)(3) is amended —
(1) by striking "January 1, 2009" each place such term appears and inserting "November 1, 2019", and
(2) by striking subparagraph (D) and inserting the following:
"(D) a natural gas, propane, or oil water heater which, in the standard Department of Energy test procedure, yields —
"(i) in the case of a storage tank water heater —
"(I) in the case of a medium draw water heater, a uniform energy factor of not less than 0.78, and
"(II) in the case of a high-draw water heater, a uniform energy factor of not less than 0.80, and
"(ii) in the case of a tankless water heater —
"(I) in the case of a medium draw water heater, a uniform energy factor of not less than 0.87, and
"(II) in the case of a high-draw water heater, a uniform energy factor of not less than 0.90, and".
(j) INCREASE IN STANDARD FOR FURNACES. — Section 25C(d)(4) is amended by striking by striking "not less than 95." and inserting the following: "not less than —
"(A) in the case of a furnace, 97 percent, and
"(B) in the case of a hot water boiler, 95 percent.".
(k) HOME ENERGY AUDITS. —
(1) IN GENERAL. — Section 25C(a) is amended by striking "and" at the end of paragraph (1), by striking the period at the end of paragraph (2) and inserting ", and", and by adding at the end the following new paragraph:
"(3) 30 percent of the amount paid or incurred by the taxpayer during the taxable year for home energy audits.".
(2) LIMITATION. — Section 25C(b) is amended adding at the end the following new paragraph:
"(4) HOME ENERGY AUDITS. — The amount of the credit allowed under this section by reason of subsection (a)(3) shall not exceed $150.".
(3) HOME ENERGY AUDITS. — Section 25C, as amended by subsections (a), is amended by redesignating subsections (e), (f), and (g), as subsections (f), (g), and (h), respectively, and by inserting after subsection (d) the following new subsection:
"(e) HOME ENERGY AUDITS. — For purposes of this section, the term 'home energy audit' means an inspection and written report with respect to a dwelling unit located in the United States and owned or used by the taxpayer as the taxpayer's principal residence (within the meaning of section 121) which —
"(1) identifies the most significant and cost-effective energy efficiency improvements with respect to such dwelling unit, including an estimate of the energy and cost savings with respect to each such improvement, and
"(2) is conducted and prepared by a home energy auditor that meets the certification or other requirements specified by the Secretary (after consultation with the Secretary of Energy, and not later than 180 days after the date of the enactment of this subsection) in regulations or other guidance.".
(4) CONFORMING AMENDMENT. — Section 1016(a)(33) is amended by striking "section 25C(f)" and inserting "section 25C(g)".
(l) EFFECTIVE DATES. —
(1) INCREASE AND MODERNIZATION. — Except as otherwise provided by this subsection, the amendments made by this section shall apply to property placed in service after December 31, 2020.
(2) EXTENSION. — The amendments made by subsection (a) shall apply to property placed in service after December 31, 2020.
(3) HOME ENERGY AUDITS. — The amendments made by subsection (k) shall apply to amounts paid or incurred after December 31, 2020.
SEC. 90422. RESIDENTIAL ENERGY EFFICIENT PROPERTY.
(a) EXTENSION OF CREDIT. —
(1) IN GENERAL. — Section 25D(h) is amended by striking "December 31, 2021" and inserting "December 31, 2027".
(2) APPLICATION OF PHASEOUT. — Section 25D(g) is amended —
(A) in paragraph (1), by striking "January 1, 2020" and inserting "January 1, 2026",
(B) in paragraph (2) —
(i) by striking "December 31, 2019" and inserting "December 31, 2025", and
(ii) by striking "January 1, 2021" and inserting "January 1, 2027", and
(C) in paragraph (3) —
(i) by striking "December 31, 2020" and inserting "December 31, 2026", and
(ii) by striking "January 1, 2022" and inserting "January 1, 2028".
(b) QUALIFIED BIOMASS FUEL PROPERTY EXPENDITURES; RESIDENTIAL ENERGY EFFICIENT PROPERTY CREDIT FOR BATTERY STORAGE TECHNOLOGY. —
(1) IN GENERAL. — Section 25D(a) is amended by striking "and" at the end of paragraph (4) and by inserting after paragraph (5) the following new paragraphs:
"(6) the qualified biomass fuel property expenditures, and
"(7) the qualified battery storage technology expenditures,".
(2) QUALIFIED BIOMASS FUEL PROPERTY EXPENDITURES; RESIDENTIAL ENERGY EFFICIENT PROPERTY CREDIT FOR BATTERY STORAGE TECHNOLOGY. — Section 25D(d) is amended by adding at the end the following new paragraphs:
"(6) QUALIFIED BIOMASS FUEL PROPERTY EXPENDITURE. —
"(A) IN GENERAL. — The term 'qualified biomass fuel property expenditure' means an expenditure for property —
"(i) which uses the burning of biomass fuel to heat a dwelling unit located in the United States and used as a residence by the taxpayer, or to heat water for use in such a dwelling unit, and
"(ii) which has a thermal efficiency rating of at least 75 percent (measured by the higher heating value of the fuel).
"(B) BIOMASS FUEL. — For purposes of this section, the term 'biomass fuel' means any plant-derived fuel available on a renewable or recurring basis.
"(7) QUALIFIED BATTERY STORAGE TECHNOLOGY EXPENDITURE. — The term 'qualified battery storage technology expenditure' means an expenditure for battery storage technology which —
"(A) is installed in connection with a dwelling unit located in the United States and used as a residence by the taxpayer, and
"(B) has a capacity of not less than 3 kilowatt hours.".
(3) DENIAL OF DOUBLE BENEFIT FOR BIOMASS STOVES. —
(A) IN GENERAL. — Section 25C(d)(3) is amended by adding "and" at the end of subparagraph (C), by striking ", and" at the end of subparagraph (D) and inserting a period, and by striking subparagraph (E).
(B) CONFORMING AMENDMENT. — Section 25C(d), as amended by the preceding provisions of this Act, is amended by striking paragraph (5).
(c) EFFECTIVE DATE. — The amendments made by this section shall apply to expenditures made after the date of the enactment of this Act.
SEC. 90423. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.
(a) EXTENSION. — Section 179D(h) is amended by striking "December 31, 2020" and inserting "December 31, 2025".
(b) INCREASE IN THE MAXIMUM AMOUNT OF DEDUCTION. —
(1) IN GENERAL. — Section 179D(b) is amended by striking "$1.80" and inserting "$3".
(2) INFLATION ADJUSTMENT. — Section 179D, as amended by this Act, is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection:
"(h) INFLATION ADJUSTMENT. — In the case of a taxable year beginning after 2020, each dollar amount in subsection (b) or subsection (d)(1)(A) shall be increased by an amount equal to —
"(1) such dollar amount, multiplied by
"(2) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting 'calendar year 2019' for 'calendar year 2016' in subparagraph (A)(ii) thereof.".
(3) CONFORMING AMENDMENT. — Section 179D(d)(1)(A) is amended by striking "by substituting '$.60' for '$1.80' " and inserting "by substituting '$1' for '$3' ".
(c) LIMIT ON DEDUCTION LIMITED TO THREE-YEAR PERIOD. — Section 179D(b)(2) is amended by striking "for all prior taxable years" and inserting "for the 3 years immediately preceding such taxable year".
(d) UPDATE OF STANDARDS. —
(1) ASHRAE STANDARDS. — Section 179D(c) is amended —
(A) in paragraphs (1)(B)(ii) and (1)(D), by striking "Standard 90.1-2007" and inserting "Reference Standard 90.1", and
(B) by amending paragraph (2) to read as follows:
"(2) REFERENCE STANDARD 90.1. — The term 'Reference Standard 90.1' means, with respect to property, the Standard 90.1 most recently adopted (as of the date that is 2 years before the date that construction of such property begins) by the American Society of Heating, Refrigerating, and Air Conditioning Engineers and the Illuminating Engineering Society of North America.".
(2) CALIFORNIA NONRESIDENTIAL ALTERNATIVE CALCULATION METHOD APPROVAL MANUAL. — Section 179D(d)(2) is amended by striking "2005" and inserting "2019".
(e) CHANGE IN EFFICIENCY STANDARDS. — Section 179D(c)(1)(D) is amended by striking "50" and inserting "30".
(f) DEADWOOD. — Section 179D, as amended by subsection (a), is amended by striking subsection (f) and redesignating subsections (g) and (h) as subsections (f) and (g), respectively.
(g) EFFECTIVE DATE. — The amendments made by this section shall apply to property placed in service after December 31, 2020.
SEC. 90424. EXTENSION, INCREASE, AND MODIFICATIONS OF NEW ENERGY EFFICIENT HOME CREDIT.
(a) EXTENSION OF CREDIT. — Section 45L(g) is amended by striking "December 31, 2020" and inserting "December 31, 2025".
(b) INCREASE IN CREDIT FOR CERTAIN DWELLING UNITS. — Section 45L(a)(2)(A) is amended by striking "$2,000" and inserting "$2,500".
(c) INCREASE IN STANDARD FOR HEATING AND COOLING REDUCTION FOR CERTAIN UNITS. — Section 45L(c)(1) is amended by striking "50 percent" each place such term appears and inserting "60 percent".
(d) ENERGY SAVING REQUIREMENTS MODIFICATIONS. —
(1) ALL ENERGY STAR LABELED HOMES ELIGIBLE; NO REDUCTION IN STANDARD. — Section 45L(c) is amended by amending paragraph (3) to read as follows:
"(3) a unit which meets the requirements established by the Administrator of the Environmental Protection Agency under the Energy Star Labeled Homes program and, in the case of a manufactured home, which conforms to Federal Manufactured Home Construction and Safety Standards (part 3280 of title 24, Code of Federal Regulations).".
(2) UNITS CONSTRUCTED IN ACCORDANCE WITH 2018 IECC STANDARDS. — Section 45L(c), as amended by paragraph (1), is further amended by striking "or" at the end of paragraph (2), by striking the period at the end of paragraph (3) and inserting ", or", and by adding at the end the following new paragraph:
"(4) certified —
"(A) to have a level of annual energy consumption which is at least 15 percent below the annual level of energy consumption of a comparable dwelling unit —
"(i) which is constructed in accordance with the standards of chapter 4 of the 2018 IECC (without taking into account on-site energy generation), and
"(ii) which meets the requirements described in paragraph (1)(A)(ii), and
"(B) to have building envelope component improvements account for at least 1/5 of such 15 percent.".
(3) CONFORMING AMENDMENTS. —
(A) Section 45L(c)(2) is amended by inserting "or (4)" after "paragraph (1)".
(B) Section 45L(a)(2)(A) is amended by striking "or (2)" and inserting ", (2), or (4)".
(C) Section 45L(b) is amended by adding at the end the following:
"(5) 2018 IECC. — The term '2018 IECC' means the 2018 International Energy Conservation Code, as such Code (including supplements) is in effect on November 1, 2018.".
(e) EFFECTIVE DATES. — The amendments made by this section shall apply to dwelling units acquired after December 31, 2020.
SEC. 90425. MODIFICATIONS TO INCOME EXCLUSION FOR CONSERVATION SUBSIDIES.
(a) IN GENERAL. — Section 136(a) is amended —
(1) by striking "any subsidy provided" and inserting "any subsidy —
"(1) provided",
(2) by striking the period at the end and inserting a comma, and
(3) by adding at the end the following new paragraphs:
"(2) provided (directly or indirectly) by a public utility to a customer, or by a State or local government to a resident of such State or locality, for the purchase or installation of any water conservation or efficiency measure,
"(3) provided (directly or indirectly) by a storm water management provider to a customer, or by a State or local government to a resident of such State or locality, for the purchase or installation of any storm water management measure, or
"(4) provided (directly or indirectly) by a State or local government to a resident of such State or locality for the purchase or installation of any wastewater management measure, but only if such measure is with respect to the taxpayer's principal residence.".
(b) CONFORMING AMENDMENTS. —
(1) DEFINITION OF WATER CONSERVATION OR EFFICIENCY MEASURE AND STORM WATER MANAGEMENT MEASURE. — Section 136(c) is amended —
(A) by striking "ENERGY CONSERVATION MEASURE" in the heading thereof and inserting "DEFINITIONS",
(B) by striking "IN GENERAL" in the heading of paragraph (1) and inserting "ENERGY CONSERVATION MEASURE", and
(C) by redesignating paragraph (2) as paragraph (5) and by inserting after paragraph
(1) the following:
"(2) WATER CONSERVATION OR EFFICIENCY MEASURE. — For purposes of this section, the term 'water conservation or efficiency measure' means any evaluation of water use, or any installation or modification of property, the primary purpose of which is to reduce consumption of water or to improve the management of water demand with respect to one or more dwelling units.
"(3) STORM WATER MANAGEMENT MEASURE. — For purposes of this section, the term 'storm water management measure' means any installation or modification of property primarily designed to reduce or manage amounts of storm water with respect to one or more dwelling units.
"(4) WASTEWATER MANAGEMENT MEASURE. — For purposes of this section, the term 'wastewater management measure' means any installation or modification of property primarily designed to manage wastewater (including septic tanks and cesspools) with respect to one or more dwelling units.".
(2) DEFINITION OF PUBLIC UTILITY. — Section 136(c)(5) (as redesignated by paragraph (1)(C)) is amended by striking subparagraph (B) and inserting the following:
"(B) PUBLIC UTILITY. — The term 'public utility' means a person engaged in the sale of electricity, natural gas, or water to residential, commercial, or industrial customers for use by such customers.
"(C) STORM WATER MANAGEMENT PROVIDER. — The term 'storm water management provider' means a person engaged in the provision of storm water management measures to the public.
"(D) PERSON. — For purposes of subparagraphs (B) and (C), the term 'person' includes the Federal Government, a State or local government or any political subdivision thereof, or any instrumentality of any of the foregoing.".
(3) CLERICAL AMENDMENTS. —
(A) The heading for section 136 is amended —
(i) by inserting "AND WATER" after "ENERGY", and
(ii) by striking "PROVIDED BY PUBLIC UTILITIES".
(B) The item relating to section 136 in the table of sections of part III of subchapter B of chapter 1 is amended —
(i) by inserting "and water" after "energy", and
(ii) by striking "provided by public utilities".
(c) EFFECTIVE DATE. — The amendments made by this section shall apply to amounts received after December 31, 2018.
(d) NO INFERENCE. — Nothing in this Act or the amendments made by this Act shall be construed to create any inference with respect to the proper tax treatment of any subsidy received directly or indirectly from a public utility, a storm water management provider, or a State or local government for any water conservation measure or storm water management measure before January 1, 2021.
Subtitle D — Greening the Fleet and Alternative Vehicles
SEC. 90431. MODIFICATION OF LIMITATIONS ON NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLE CREDIT.
(a) IN GENERAL. — Section 30D(e) is amended to read as follows:
"(e) LIMITATION ON NUMBER OF NEW QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES ELIGIBLE FOR CREDIT. —
"(1) IN GENERAL. — In the case of any new qualified plug-in electric drive motor vehicle sold after the date of the enactment of the GREEN Act of 2020 —
"(A) if such vehicle is sold during the transition period, the amount determined under subsection (b)(2) shall be reduced by $500, and
"(B) if such vehicle is sold during the phaseout period, only the applicable percentage of the credit otherwise allowable under subsection (a) shall be allowed.
"(2) TRANSITION PERIOD. — For purposes of this subsection, the transition period is the period subsequent to the first date on which the number of new qualified plug-in electric drive motor vehicles manufactured by the manufacturer of the vehicle referred to in paragraph (1) sold for use in the United States after December 31, 2009, is at least 200,000.
"(3) PHASEOUT PERIOD. —
"(A) IN GENERAL. — For purposes of this subsection, the phaseout period is the period beginning with the second calendar quarter following the calendar quarter which includes the first date on which the number of new qualified plug-in electric drive motor vehicles manufactured by the manufacturer of the vehicle referred to in paragraph (1) sold for use in the United States after December 31, 2009, is at least 600,000.
"(B) APPLICABLE PERCENTAGE. — For purposes of paragraph (1)(B), the applicable percentage is —
"(i) 50 percent for the first calendar quarter of the phaseout period, and
"(ii) 0 percent for each calendar quarter thereafter.
"(C) EXCLUSION OF SALE OF CERTAIN VEHICLES. —
"(i) IN GENERAL. — For purposes of subparagraph (A), any new qualified plugin electric drive motor vehicle manufactured by the manufacturer of the vehicle referred to in paragraph (1) which was sold during the exclusion period shall not be included for purposes of determining the number of such vehicles sold.
"(ii) EXCLUSION PERIOD. — For purposes of this subparagraph, the exclusion period is the period —
"(I) beginning on the first date on which the number of new qualified plug-in electric drive motor vehicles manufactured by the manufacturer of the vehicle referred to in paragraph (1) sold for use in the United States after December 31, 2009, is at least 200,000, and
"(II) ending on the date of the enactment of the GREEN Act of 2020.
"(4) CONTROLLED GROUPS. — Rules similar to the rules of section 30B(f)(4) shall apply for purposes of this subsection.".
(b) EXTENSION FOR 2AND 3-WHEELED PLUG-IN ELECTRIC VEHICLES. — Section 30D(g)(3)(E) is amended to read as follows:
"(E) is acquired after December 31, 2020, and before January 1, 2026.".
(c) EFFECTIVE DATE. —
(1) LIMITATION. — The amendment made by subsection (a) shall apply to vehicles sold after the date of the enactment of this Act.
(2) EXTENSION. — The amendment made by subsection (b) shall apply to vehicles sold after December 31, 2020.
SEC. 90432. CREDIT FOR PREVIOUSLY-OWNED QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES.
(a) IN GENERAL. — Subpart A of part IV of subchapter A of chapter 1 is amended by inserting after section 25D the following new section:
"SEC. 25E. PREVIOUSLY-OWNED QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLES.
"(a) ALLOWANCE OF CREDIT. — In the case of a qualified buyer who during a taxable year places in service a previously-owned qualified plug-in electric drive motor vehicle, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the sum of —
"(1) $1,250, plus
"(2) in the case of a vehicle which draws propulsion energy from a battery which exceeds 4 kilowatt hours of capacity (determined at the time of sale), the lesser of —
"(A) $1,250, and
"(B) the product of $208.50 and such excess kilowatt hours.
"(b) LIMITATIONS. —
"(1) SALE PRICE. — The credit allowed under subsection (a) with respect to sale of a vehicle shall not exceed 30 percent of the sale price.
"(2) ADJUSTED GROSS INCOME. — The amount which would (but for this paragraph) be allowed as a credit under subsection (a) shall be reduced (but not below zero) by $250 for each $1,000 (or fraction thereof) by which the taxpayer's adjusted gross income exceeds $30,000 (twice such amount in the case of a joint return).
"(c) DEFINITIONS. — For purposes of this section —
"(1) PREVIOUSLY-OWNED QUALIFIED PLUG-IN ELECTRIC DRIVE MOTOR VEHICLE. — The term 'previously-owned qualified plug-in electric drive motor vehicle' means, with respect to a taxpayer, a motor vehicle —
"(A) the model year of which is at least 2 earlier than the calendar year in which the taxpayer acquires such vehicle,
"(B) the original use of which commences with a person other than the taxpayer,
"(C) which is acquired by the taxpayer in a qualified sale,
"(D) registered by the taxpayer for operation in a State or possession of the United States, and
"(E) which meets the requirements of subparagraphs (C), (D), (E), and (F) of section 30D(d)(1).
"(2) QUALIFIED SALE. — The term 'qualified sale' means a sale of a motor vehicle —
"(A) by a person who holds such vehicle in inventory (within the meaning of section 471) for sale or lease,
"(B) for a sale price of less than $25,000, and
"(C) which is the first transfer since the date of the enactment of this section to a person other than the person with whom the original use of such vehicle commenced.
"(3) QUALIFIED BUYER. — The term 'qualified buyer' means, with respect to a sale of a motor vehicle, a taxpayer —
"(A) who is an individual,
"(B) who purchases such vehicle for use and not for resale,
"(C) with respect to whom no deduction is allowable with respect to another taxpayer under section 151,
"(D) who has not been allowed a credit under this section for any sale during the 3year period ending on the date of the sale of such vehicle, and
"(E) who possesses a certificate issued by the seller that certifies —
"(i) that the vehicle is a previously owned qualified plug-in electric drive motor vehicle,
"(ii) the capacity of the battery at time of sale, and
"(iii) such other information as the Secretary may require.
"(4) MOTOR VEHICLE; CAPACITY. — The terms 'motor vehicle' and 'capacity' have the meaning given such terms in paragraphs (2) and (4) of section 30D(d), respectively.
"(d) APPLICATION OF CERTAIN RULES. — For purposes of this section, rules similar to the rules of paragraphs (1), (2), (4), (5), (6) and (7) of section 30D(f) shall apply for purposes of this section.
"(e) CERTIFICATE SUBMISSION REQUIREMENT. — The Secretary may require that the issuer of the certificate described in subsection (c)(3)(E) submit such certificate to the Secretary at the time and in the manner required by the Secretary.
"(f) TERMINATION. — No credit shall be allowed under this section with respect to sales after December 31, 2025.".
(b) CLERICAL AMENDMENT. — The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 25D the following new item:
"Sec. 25E. Previously-owned qualified plug-in electric drive motor vehicles.".
(c) EFFECTIVE DATE. — The amendments made by this section shall apply to sales after the date of the enactment of this Act.
SEC. 90433. CREDIT FOR ZERO-EMISSION HEAVY VEHICLES AND ZERO-EMISSION BUSES.
(a) IN GENERAL. — Subpart D of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section:
"SEC. 45U. ZERO-EMISSION HEAVY VEHICLE CREDIT.
"(a) ALLOWANCE OF CREDIT. — For purposes of section 38, in the case of a manufacturer of a zero-emission heavy vehicle, the zero-emission heavy vehicle credit determined under this section for a taxable year is an amount equal to 10 percent of the sum of the sale price of each zero-emission heavy vehicle sold by such taxpayer during such taxable year.
"(b) LIMITATION. — The sale price of a zero-emission heavy vehicle may not be taken into account under subsection (a) to the extent such price exceeds $1,000,000.
"(c) ZERO-EMISSION HEAVY VEHICLE. — For purposes of this section —
"(1) IN GENERAL. — The term 'zero-emission heavy vehicle' means a motor vehicle which —
"(A) has a gross vehicle weight rating of not less than 14,000 pounds,
"(B) is not powered or charged by an internal combustion engine, and
"(C) is propelled solely by an electric motor which draws electricity from a battery or fuel cell.
"(2) MOTOR VEHICLE; MANUFACTURER. — The term 'motor vehicle' and 'manufacturer' have the meaning given such terms in paragraphs (2) and (3) of section 30D(d), respectively.
"(d) SPECIAL RULES. —
"(1) SALE PRICE. — For purposes of this section, the sale price of a zero-emission heavy vehicle shall be reduced by any rebate or other incentive given before, on, or after the date of the sale.
"(2) DOMESTIC USE. — No credit shall be allowed under subsection (a) with respect to a zero emission heavy vehicle to a manufacturer who knows or has reason to know that such vehicle will not be used primarily in the United States or a possession of the United States.
"(3) REGULATIONS. — The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section.
"(e) TERMINATION. — This section shall not apply to sales after December 31, 2025.".
(b) CREDIT MADE PART OF GENERAL BUSINESS CREDIT. — Subsection (b) of section 38 is amended by striking "plus" at the end of paragraph (32), by striking the period at the end of paragraph (33) and inserting ", plus", and by adding at the end the following new paragraph:
"(34) the zero-emission heavy vehicle credit determined under section 45U.".
(c) CLERICAL AMENDMENT. — The table of sections for subpart D of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item:
"Sec. 45U. Zero-emission heavy vehicle credit.".
(d) EFFECTIVE DATE. — The amendments made by this section shall apply to sales after the date of the enactment of this Act.
SEC. 90434. QUALIFIED FUEL CELL MOTOR VEHICLES.
(a) IN GENERAL. — Section 30B(k)(1) is amended by striking "December 31, 2020" and inserting "December 31, 2025".
(b) EFFECTIVE DATE. — The amendment made by this section shall apply to property placed in service after December 31, 2020.
SEC. 90435. ALTERNATIVE FUEL REFUELING PROPERTY CREDIT.
(a) IN GENERAL. — Section 30C(g) is amended by striking "December 31, 2020" and inserting "December 31, 2025".
(b) ADDITIONAL CREDIT FOR CERTAIN ELECTRIC CHARGING PROPERTY. —
(1) IN GENERAL. — Section 30C(a) is amended —
(A) by striking "equal to 30 percent" and inserting the following: "equal to the sum of — "(1) 30 percent".
(B) by striking the period at the end and inserting ", plus", and
(C) by adding at the end the following new paragraph:
"(2) 20 percent of so much of such cost as exceeds the limitation under subsection (b)(1) that does not exceed the amount of cost attributable to qualified alternative vehicle refueling property (determined without regard to paragraphs (1), (2)(A), and (2)(B) of subsection (c)) which —
"(A) is intended for general public use and recharges motor vehicle batteries with no associated fee or payment arrangement,
"(B) is intended for general public use and accepts payment via a credit card reader, or
"(C) is intended for use exclusively by fleets of commercial or governmental vehicles.".
(2) CONFORMING AMENDMENT. — Section 30C(b) is amended —
(A) by striking "The credit allowed under subsection (a)" and inserting "The amount of cost taken into account under subsection (a)(1)",
(B) by striking "$30,000" and inserting "$100,000", and
(C) by striking "$1,000" and inserting "$3,333.33".
(c) EFFECTIVE DATE. — The amendment made by this section shall apply to property placed in service after December 31, 2020.
SEC. 90436. MODIFICATION OF EMPLOYER-PROVIDED FRINGE BENEFITS FOR BICYCLE COMMUTING.
(a) REPEAL OF SUSPENSION OF EXCLUSION FOR QUALIFIED BICYCLE COMMUTING REIMBURSEMENT. — Section 132(f) is amended by striking paragraph (8).
(b) COMMUTING FRINGE INCLUDES BIKESHARE. —
(1) IN GENERAL. — Clause (i) of section 132(f)(5)(F) is amended by striking "a bicycle" and all that follows and inserting "bikeshare, a bicycle, and bicycle improvements, repair, and storage, if the employee regularly uses such bikeshare or bicycle for travel between the employee's residence and place of employment or mass transit facility that connects an employee to their place of employment.".
(2) BIKESHARE. — Section 132(f)(5)(F) is amended by adding at the end the following:
"(iv) BIKESHARE. — The term 'bikeshare' means a bicycle rental operation at which bicycles are made available to customers to pick up and drop off for point-to-point use within a defined geographic area.".
(c) LOW-SPEED ELECTRIC BICYCLES. — Section 132(f)(5)(F), as amended by subsection (b)(2), is amended by adding at the end the following:
"(v) LOW-SPEED ELECTRIC BICYCLES. — The term 'bicycle' includes a two or three-wheeled vehicle with fully operable pedals and an electric motor of less than 750 watts (1 h.p.), whose maximum speed on a paved level surface, when powered solely by such a motor while ridden by an operator who weighs 170 pounds, is less than 20 mph.".
(d) MODIFICATION RELATING TO BICYCLE COMMUTING MONTH. — Clause (iii) of section 132(f)(5)(F) is amended to read as follows:
"(iii) QUALIFIED BICYCLE COMMUTING MONTH. — The term 'qualified bicycle commuting month' means, with respect to any employee, any month during which such employee regularly uses a bicycle for a portion of the travel between the employee's residence and place of employment.".
(e) LIMITATION ON EXCLUSION. —
(1) IN GENERAL. — Subparagraph (C) of section 132(f)(2) is amended by striking "applicable annual limitation" and inserting "applicable monthly limitation".
(2) APPLICABLE MONTHLY LIMITATION DEFINED. — Clause (ii) of section 132(f)(5)(F) is amended to read as follows:
"(ii) APPLICABLE MONTHLY LIMITATION. — The term 'applicable monthly limitation', with respect to any employee for any month, means an amount equal to 20 percent of the dollar amount in effect for the month under paragraph (2)(B).".
(3) AGGREGATE LIMITATION. — Subparagraph (B) of section 132(f)(2) is amended by inserting "and the applicable monthly limitation in the case of any qualified bicycle commuting benefit".
(f) NO CONSTRUCTIVE RECEIPT. — Paragraph (4) of section 132(f) is amended by striking "(other than a qualified bicycle commuting reimbursement)".
(g) CONFORMING AMENDMENTS. — Paragraphs (1)(D), (2)(C), and (5)(F) of section 132(f) are each amended by striking "reimbursement" each place it appears and inserting "benefit".
(h) EFFECTIVE DATE. — The amendments made by this section shall apply to taxable years beginning after December 31, 2020.
Subtitle E — Investment in the Green Workforce
SEC. 90441. EXTENSION OF THE ADVANCED ENERGY PROJECT CREDIT.
(a) IN GENERAL. — Section 48C 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 2021, 2022, 2023, 2024, and 2025, 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 2025.
"(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 give the highest priority to projects which —
"(A) manufacture (other than primarily assembly of components) property described in a subclause of subsection (c)(1)(A)(i) (or components thereof),
"(B) will pay to laborers and mechanics wages 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
"(C) 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) 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, 2025, the Secretary of the Treasury (or the Secretary's delegate), after consultation with the Secretary of Labor, shall submit a report to Congress on the domestic job creation, wages associated with such jobs, and the amount of such wages paid as described in section 48C(e)(4)(B) of the Internal Revenue Code of 1986, attributable to the amendment made by this section.
SEC. 90442. LABOR COSTS OF INSTALLING MECHANICAL INSULATION PROPERTY.
(a) IN GENERAL. — Subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is further amended by adding at the end the following new section:
"SEC. 45V. LABOR COSTS OF INSTALLING MECHANICAL INSULATION PROPERTY.
"(a) IN GENERAL. — For purposes of section 38, the mechanical insulation labor costs credit determined under this section for any taxable year is an amount equal to 10 percent of the mechanical insulation labor costs paid or incurred by the taxpayer during such taxable year.
"(b) MECHANICAL INSULATION LABOR COSTS. — For purposes of this section —
"(1) IN GENERAL. — The term 'mechanical insulation labor costs' means the labor cost of installing mechanical insulation property with respect to a mechanical system referred to in paragraph (2)(A) which was originally placed in service not less than 1 year before the date on which such mechanical insulation property is installed.
"(2) MECHANICAL INSULATION PROPERTY. — The term 'mechanical insulation property' means insulation materials, and facings and accessory products installed in connection to such insulation materials —
"(A) placed in service in connection with a mechanical system which —
"(i) is located in the United States, and
"(ii) is of a character subject to an allowance for depreciation, and
"(B) which result in a reduction in energy loss from the mechanical system which is greater than the expected reduction from the installation of insulation materials which meet the minimum requirements of Reference Standard 90.1 (as defined in section 179D(c)(2)).
"(c) TERMINATION. — This section shall not apply to mechanical insulation labor costs paid or incurred after December 31, 2025.".
(b) CREDIT ALLOWED AS PART OF GENERAL BUSINESS CREDIT. — Section 38(b), as amended by the preceding provisions of this Act, is further amended by striking "plus" at the end of paragraph (33), by striking the period at the end of paragraph (34) and inserting ", plus", and by adding at the end the following new paragraph:
"(35) the mechanical insulation labor costs credit determined under section 45U(a).".
(c) CONFORMING AMENDMENTS. —
(1) Section 280C is amended by adding at the end the following new subsection:
"(i) MECHANICAL INSULATION LABOR COSTS CREDIT. —
"(1) IN GENERAL. — No deduction shall be allowed for that portion of the mechanical insulation labor costs (as defined in section 45U(b)) otherwise allowable as deduction for the taxable year which is equal to the amount of the credit determined for such taxable year under section 45U(a).
"(2) SIMILAR RULE WHERE TAXPAYER CAPITALIZES RATHER THAN DEDUCTS EXPENSES. — If —
"(A) the amount of the credit determined for the taxable year under section 45U(a), exceeds
"(B) the amount of allowable as a deduction for such taxable year for mechanical insulation labor costs (determined without regard to paragraph (1)),
the amount chargeable to capital account for the taxable year for such costs shall be reduced by the amount of such excess.".
(2) The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is further amended by adding at the end the following new item:
"Sec. 45V. Labor costs of installing mechanical insulation property.".
(d) EFFECTIVE DATE. — The amendments made by this section shall apply to amounts paid or incurred after December 31, 2020, in taxable years ending after such date.
Subtitle F — Environmental Justice
SEC. 90451. QUALIFIED ENVIRONMENTAL JUSTICE PROGRAM CREDIT.
(a) IN GENERAL. — Subpart C of part IV of subchapter A of chapter 1 is amended by adding at the end the following new section:
"SEC. 36C. QUALIFIED ENVIRONMENTAL JUSTICE PROGRAMS.
"(a) ALLOWANCE OF CREDIT. — In the case of an eligible educational institution, there shall be allowed as a credit against the tax imposed by this subtitle for any taxable year an amount equal to the applicable percentage of the amounts paid or incurred by such taxpayer during such taxable year which are necessary for a qualified environmental justice program.
"(b) QUALIFIED ENVIRONMENTAL JUSTICE PROGRAM. — For purposes of this section —
"(1) IN GENERAL. — The term 'qualified environmental justice program' means a program conducted by one or more eligible educational institutions that is designed to address, or improve data about, qualified environmental stressors for the primary purpose of improving, or facilitating the improvement of, health and economic outcomes of individuals residing in low-income areas or areas populated disproportionately by racial or ethnic minorities.
"(2) QUALIFIED ENVIRONMENTAL STRESSOR. — The term 'qualified environmental stressor' means, with respect to an area, a contamination of the air, water, soil, or food with respect to such area or a change relative to historical norms of the weather conditions of such area.
"(c) ELIGIBLE EDUCATIONAL INSTITUTION. — For purposes of this section, the term 'eligible educational institution' means an institution of higher education (as such term is defined in section 101 or 102(c) of the Higher Education Act of 1965) that is eligible to participate in a program under title IV of such Act.
"(d) APPLICABLE PERCENTAGE. — For purposes of this section, the term 'applicable percentage' means —
"(1) in the case of a program involving material participation of faculty and students of an institution described in section 371(a) of the Higher Education Act of 1965, 30 percent, and
"(2) in all other cases, 20 percent.
"(e) CREDIT ALLOCATION. —
"(1) ALLOCATION. —
"(A) IN GENERAL. — The Secretary shall allocate credit dollar amounts under this section to eligible educational institutions, for qualified environmental justice programs, that —
"(i) submit applications at such time and in such manner as the Secretary may provide, and
"(ii) are selected by the Secretary under subparagraph (B).
"(B) SELECTION CRITERIA. — The Secretary, after consultation with the Secretary of Energy, the Secretary of Education, the Secretary of Health and Human Services, and the Administrator of the Environmental Protection Agency, shall select applications on the basis of the following criteria:
"(i) The extent of participation of faculty and students of an institution described in section 371(a) of the Higher Education Act of 1965.
"(ii) The extent of the expected effect on the health or economic outcomes of individuals residing in areas within the United States that are low-income areas or areas populated disproportionately by racial or ethnic minorities.
"(iii) The creation or significant expansion of qualified environmental justice programs.
"(2) LIMITATIONS. —
"(A) IN GENERAL. — The amount of the credit determined under this section for any taxable year to any eligible educational institution for any qualified environmental justice program shall not exceed the excess of —
"(i) the credit dollar amount allocated to such institution for such program under this subsection, over "(ii) the credits previously claimed by such institution for such program under this section.
"(B) FIVE-YEAR LIMITATION. — No amounts paid or incurred after the 5-year period beginning on the date a credit dollar amount is allocated to an eligible educational institution for a qualified environmental justice program shall be taken into account under subsection (a) with respect to such institution for such program.
"(C) ALLOCATION LIMITATION. — The total amount of credits that may be allocated under the program shall not exceed —
"(i) $1,000,000,000 for each of 2021, 2022, 2023, 2024, and 2025, and
"(ii) $0 for each subsequent year.
"(f) REQUIREMENTS. —
"(1) IN GENERAL. — An eligible educational institution that has been allocated credit dollar amounts under this section for a qualified environmental justice project for a taxable year shall —
"(A) make publicly available the application submitted to the Secretary under subsection (e) with respect to such project, and
"(B) submit an annual report to the Secretary that describes the amounts paid or incurred for, and expected impact of, such project.
"(2) FAILURE TO COMPLY. — In the case of an eligible educations institution that has failed to comply with the requirements of this subsection, the credit dollar amount allocated to such institution under this section is deemed to be $0.
"(g) PUBLIC DISCLOSURE. — The Secretary, upon making an allocation of credit dollar amounts under this section, shall publicly disclose —
"(1) the identity of the eligible educational institution receiving the allocation, and
"(2) the amount of such allocation.".
(b) CONFORMING AMENDMENTS. —
(1) Section 6211(b)(4)(A) is amended by inserting "36C," after "36B,".
(2) Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting "36C," after "36B,".
(c) CLERICAL AMENDMENT. — The table of sections for subpart C of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 36B the following new item:
"Sec. 36C. Qualified environmental justice programs.".
(d) EFFECTIVE DATE. — The amendments made by this section shall take effect on the date of the enactment of this Act.
Subtitle G — Treasury Report on Data From the Greenhouse Gas Reporting Program
SEC. 90461. REPORT ON GREENHOUSE GAS REPORTING PROGRAM.
(a) IN GENERAL. — Not later than 180 days after the date of the enactment of this Act, the Secretary of the Treasury (or the Secretary's delegate) shall submit a report to Congress on the utility of the data from the Greenhouse Gas Reporting Program for determining the amount of greenhouse gases emitted by each taxpayer for the purpose of imposing a fee on such taxpayers with respect to such emissions. Such report shall include a detailed description and analysis of any administrative or other challenges associated with using such data for such purpose.
(b) GREENHOUSE GAS REPORTING PROGRAM. — For purposes of this section, the term "Greenhouse Gas Reporting Program" means the reporting program established by the Administrator of the Environmental Protection Agency under title II of division F of the Consolidated Appropriations Act, 2008.
TITLE V — DISASTER AND RESILIENCY
SEC. 90501. EXCLUSION OF AMOUNTS RECEIVED FROM STATE-BASED CATASTROPHE LOSS MITIGATION PROGRAMS.
(a) IN GENERAL. — Section 139 of the Internal Revenue Code of 1986 is amended by redesignating subsection
(h) as subsection (i) and by inserting after subsection (g) the following new subsection:
"(h) STATE-BASED CATASTROPHE LOSS MITIGATION PROGRAMS. —
"(1) IN GENERAL. — Gross income shall not include any amount received by an individual as a qualified catastrophe mitigation payment under a program established by a State, or a political subdivision or instrumentality thereof, for the purpose of making such payments.
"(2) QUALIFIED CATASTROPHE MITIGATION PAYMENT. — For purposes of this section, the term 'qualified catastrophe mitigation payment' means any amount which is received by an individual to make improvements to such individual's residence for the sole purpose of reducing the damage that would be done to such residence by a windstorm, earthquake, or wildfire.
"(3) NO INCREASE IN BASIS. — Rules similar to the rules of subsection (g)(3) shall apply in the case of this subsection.".
(b) CONFORMING AMENDMENTS. —
(1) Section 139(d) is amended by striking "and qualified" and inserting ", qualified catastrophe mitigation payments, and qualified".
(2) Section 139(i) (as redesignated by subsection (a)) is amended by striking "or qualified" and inserting ", qualified catastrophe mitigation payment, or qualified".
(c) EFFECTIVE DATE. — The amendments made by this section shall apply to taxable years beginning after December 31, 2019.
SEC. 90502. REPEAL OF TEMPORARY LIMITATION ON PERSONAL CASUALTY LOSSES.
(a) IN GENERAL. — Section 165(h) is amended by striking paragraph (5).
(b) EFFECTIVE DATE. — The amendment made by this section shall apply to losses incurred in taxable years beginning after December 31, 2017.
(c) REGULATIONS. — The Secretary of the Treasury, or the Secretary's designee, shall issue regulations or other guidance consistent with Revenue Procedure 2017-60 to implement the amendment made by this section.
TITLE VI — HOUSING
Subtitle A — Low-income Housing Tax Credit Improvements
SEC. 90601. EXTENSION OF PERIOD FOR REHABILITATION EXPENDITURES.
(a) IN GENERAL. — Clause (ii) of section 42(e)(3)(A) is amended by inserting "(any 36-month period, in the case of buildings receiving an allocation of housing credit dollar amount before January 1, 2022)" after "24-month period".
(b) CONFORMING AMENDMENT. — Subparagraph (A) of section 42(e)(4) is amended by inserting "(or 36-month period, if applicable)" after "24-month period".
(c) EFFECTIVE DATE. — The amendments made by this section shall apply to buildings receiving an allocation of housing credit dollar amount after December 31, 2016.
SEC. 90602. EXTENSION OF BASIS EXPENDITURE DEADLINE.
(a) IN GENERAL. — Clause (i) of section 42(h)(1)(E) is amended by inserting "(the third calendar year, in the case of an allocation made before January 1, 2022)" after "second calendar year".
(b) QUALIFIED BUILDING. — Clause (ii) of section 42(h)(1)(E) is amended —
(1) by striking "the date which is 1 year after the date that the allocation was made" and inserting "the applicable date",
(2) by inserting "(or third, if applicable)" after "second" in the first sentence,
(3) by inserting "(or third)" after "second" in the second sentence,
(4) by striking "BUILDING. — For purposes of" and inserting "BUILDING. —
"(I) IN GENERAL. — For purposes of", and
(5) by adding at the end the following new subclause:
"(II) APPLICABLE DATE. — For purposes of subclause (I), the applicable date is 1 year after the date that the allocation was made with respect to the building (2 years, in the case of allocations made before January 1, 2022).".
(c) EFFECTIVE DATE. — The amendments made by this section shall apply to buildings receiving an allocation of housing credit dollar amount after December 31, 2016.
SEC. 90603. TAX-EXEMPT BOND FINANCING REQUIREMENT.
(a) IN GENERAL. — Subparagraph (B) of section 42(h)(4) is amended by adding at the end the following: "In the case of buildings placed in service in taxable years ending before January 1, 2022, the preceding sentence shall be applied by substituting '25 percent' for '50 percent'.".
(b) EFFECTIVE DATE. — The amendment made by this section shall apply to buildings placed in service in taxable years beginning after December 31, 2019.
SEC. 90604. MINIMUM CREDIT RATE.
(a) IN GENERAL. — Subsection (b) of section 42 is amended —
(1) by redesignating paragraph (3) as paragraph (4), and
(2) by inserting after paragraph (2) the following new paragraph:
"(3) MINIMUM CREDIT RATE. — In the case of any new or existing building to which paragraph (2) does not apply, the applicable percentage shall not be less than 4 percent.".
(b) EFFECTIVE DATE. — The amendments made by this section shall apply to buildings which receive allocations of housing credit dollar amount or, in the case of projects financed by tax-exempt bonds as described in section 42(h)(4) of the Internal Revenue Code of 1986, which receive a determination of housing credit dollar amount, after December 31, 2019, and which are placed in service by the taxpayer after such date.
SEC. 90605. INCREASES IN STATE ALLOCATIONS.
(a) IN GENERAL. — Clause (ii) of section 42(h)(3)(C) is amended —
(1) by striking "$1.75" in subclause (I) and inserting "$4.56 ($3.58 in the case of calendar year 2021)", and
(2) by striking "$2,000,000" in subclause (II) and inserting "$5,214,051 ($4,097,486 in the case of calendar year 2021)".
(b) COST-OF-LIVING ADJUSTMENT. — Subparagraph (H) of section 42(h)(3) is amended —
(1) by striking "2002" in clause (i) and inserting "2020",
(2) by striking "the $2,000,000 and $1.75 amounts in subparagraph (C)" in clause (i) and inserting "the dollar amounts applicable to such calendar year under subclauses (I) and (II) of subparagraph (C)(ii)",
(3) by striking "2001" in clause (i)(II) and inserting "2019",
(4) by striking "$2,000,000 amount" in clause (ii)(I) and inserting "amount under subparagraph (C)(ii)(II)", and
(5) by striking "$1.75 amount" in clause (ii)(II) and inserting "amount under subparagraph (C)(ii)(I)".
(c) EFFECTIVE DATE. — The amendments made by this section shall apply to calendar years beginning after December 31, 2020.
SEC. 90606. INCREASE IN CREDIT FOR CERTAIN PROJECTS DESIGNATED TO SERVE EXTREMELY LOW-INCOME HOUSEHOLDS.
(a) IN GENERAL. — Paragraph (5) of section 42(d) is amended by adding at the end the following new subparagraph:
"(C) INCREASE IN CREDIT FOR PROJECTS DESIGNATED TO SERVE EXTREMELY LOW-INCOME HOUSEHOLDS. — In the case of any building —
"(i) 20 percent or more of the residential units in which are rent-restricted (determined as if the imputed income limitation applicable to such units were 30 percent of area median gross income) and are designated by the taxpayer for occupancy by households the aggregate household income of which does not exceed the greater of —
"(I) 30 percent of area median gross income, or
"(II) 100 percent of an amount equal to the Federal poverty line (within the meaning of section 36B(d)(3)), and
"(ii) which is designated by the housing credit agency as requiring the increase in credit under this subparagraph in order for such building to be financially feasible as part of a qualified low-income housing project, subparagraph (B) shall not apply to the portion of such building which is comprised of such units, and the eligible basis of such portion of the building shall be 150 percent of such basis determined without regard to this subparagraph.".
(b) RESERVED STATE ALLOCATION. — Subparagraph (C) of section 42(h)(3) is amended —
(1) by striking "plus" at the end of clause (iii),
(2) by striking the period at the end of clause (iv) and inserting ", plus",
(3) by inserting after clause (iv) the following new clause:
"(v) an amount equal to 10 percent of the sum of the amounts determined under clauses (i), (ii), (iii), and (iv) (if any).", and
(4) by adding at the end the following: "Any amount allocated pursuant to clause (v) shall be accounted for separately and shall be allocated only to buildings to which subsection (d)(5)(C) applies.".
(c) EFFECTIVE DATE. — The amendments made by this section shall apply to buildings which receive allocations of housing credit dollar amount or, in the case of projects financed by tax-exempt bonds as described in section 42(h)(4) of the Internal Revenue Code of 1986, which receive a determination of housing credit dollar amount, after the date of the enactment of this Act.
SEC. 90607. INCLUSION OF INDIAN AREAS AS DIFFICULT DEVELOPMENT AREAS FOR PURPOSES OF CERTAIN BUILDINGS.
(a) IN GENERAL. — Subclause (I) of section 42(d)(5)(B)(iii) is amended by inserting before the period the following: ", and any Indian area".
(b) INDIAN AREA. — Clause (iii) of section 42(d)(5)(B) is amended by redesignating subclause (II) as subclause (IV) and by inserting after subclause (I) the following new subclauses:
"(II) INDIAN AREA. — For purposes of subclause (I), the term 'Indian area' means any Indian area (as defined in section 4(11) of the Native American Housing Assistance and Self Determination Act of 1996 (25 U.S.C. 4103(11))).
"(III) SPECIAL RULE FOR BUILDINGS IN INDIAN AREAS. — In the case of an area which is a difficult development area solely because it is an Indian area, a building shall not be treated as located in such area unless such building is assisted or financed under the Native American Housing Assistance and Self Determination Act of 1996 (25 U.S.C. 4101 et seq.) or the project sponsor is an Indian tribe (as defined in section 45A(c)(6)), a tribally designated housing entity (as defined in section 4(22) of such Act (25 U.S.C. 4103(22))), or wholly owned or controlled by such an Indian tribe or tribally designated housing entity.".
(c) EFFECTIVE DATE. — The amendments made by this section shall apply to buildings placed in service after December 31, 2019.
SEC. 90608. INCLUSION OF RURAL AREAS AS DIFFICULT DEVELOPMENT AREAS.
(a) IN GENERAL. — Subclause (I) of section 42(d)(5)(B)(iii), as amended by the preceding sections of this Act, is amended by inserting ", any rural area" after "median gross income".
(b) RURAL AREA. — Clause (iii) of section 42(d)(5)(B), as amended by the preceding sections of this Act, is further amended by redesignating subclause (IV) as subclause (V) and by inserting after subclause (III) the following new subclause:
"(IV) RURAL AREA. — For purposes of subclause (I), the term 'rural area' means any non-metropolitan area, or any rural area as defined by section 520 of the Housing Act of 1949, which is identified by the qualified allocation plan under subsection (m)(1)(B).".
(c) EFFECTIVE DATE. — The amendments made by this section shall apply to buildings placed in service after December 31, 2019.
SEC. 90609. INCREASE IN CREDIT FOR BOND-FINANCED PROJECTS DESIGNATED BY HOUSING CREDIT AGENCY.
(a) IN GENERAL. — Clause (v) of section 42(d)(5)(B) is amended by striking the second sentence.
(b) TECHNICAL AMENDMENT. — Clause (v) of section 42(d)(5)(B), as amended by subsection (a), is further amended —
(1) by striking "STATE" in the heading, and
(2) by striking "State housing credit agency" and inserting "housing credit agency".
(c) EFFECTIVE DATE. — The amendments made by this section shall apply to buildings which receive a determination of housing credit dollar amount after the date of the enactment of this Act.
SEC. 90610. REPEAL OF QUALIFIED CONTRACT OPTION.
(a) TERMINATION OF OPTION FOR CERTAIN BUILDINGS. —
(1) IN GENERAL. — Subclause (II) of section 42(h)(6)(E)(i) is amended by inserting "in the case of a building described in clause (iii)," before "on the last day".
(2) BUILDINGS DESCRIBED. — Subparagraph (E) of section 42(h)(6) is amended by adding at the end the following new clause:
"(iii) BUILDINGS DESCRIBED. — A building described in this clause is a building —
"(I) which received its allocation of housing credit dollar amount before January 1, 2020, or
"(II) in the case of a building any portion of which is financed as described in paragraph (4), which received before January 1, 2020, a determination from the issuer of the tax-exempt bonds or the housing credit agency that the building is eligible to receive an allocation of housing credit dollar amount under the rules of paragraphs (1) and (2) of subsection (m).".
(b) RULES RELATING TO EXISTING PROJECTS. — Subparagraph (F) of section 42(h)(6) is amended by striking "the non-low-income portion" and all that follows and inserting "the non-low-income portion and the low-income portion of the building for fair market value (determined by the housing credit agency by taking into account the rent restrictions required for the low-income portion of the building to continue to meet the standards of paragraphs (1) and (2) of subsection (g)). The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out this paragraph.".
(c) CONFORMING AMENDMENTS. —
(1) Paragraph (6) of section 42(h) is amended by striking subparagraph (G) and by redesignating subparagraphs (H), (I), (J), and (K) as subparagraphs (G), (H), (I), and (J), respectively.
(2) Subclause (II) of section 42(h)(6)(E)(i), as amended by subsection (a), is further amended by striking "subparagraph (I)" and inserting "subparagraph (H)".
(d) TECHNICAL AMENDMENT. — Subparagraph (I) of section 42(h)(6), as redesignated by subsection (c), is amended by striking "agreement" and inserting "commitment".
(e) EFFECTIVE DATE. — The amendments made by this section shall apply to buildings with respect to which a written request described in section 42(h)(6)(H) of the Internal Revenue Code of 1986 is submitted after the date of the enactment of this Act.
SEC. 90611. PROHIBITION OF LOCAL APPROVAL AND CONTRIBUTION REQUIREMENTS.
(a) IN GENERAL. — Paragraph (1) of section 42(m) is amended —
(1) by striking clause (ii) of subparagraph (A) and by redesignating clauses (iii) and (iv) thereof as clauses (ii) and (iii), and
(2) by adding at the end the following new subparagraph:
"(E) LOCAL APPROVAL OR CONTRIBUTION NOT TAKEN INTO ACCOUNT. — The selection criteria under a qualified allocation plan shall not include consideration of —
"(i) any support or opposition with respect to the project from local or elected officials, or
"(ii) any local government contribution to the project, except to the extent such contribution is taken into account as part of a broader consideration of the project's ability to leverage outside funding sources, and is not prioritized over any other source of outside funding.".
(b) EFFECTIVE DATE. — The amendments made by this section shall apply to allocations of housing credit dollar amounts made after December 31, 2020.
SEC. 90612. ADJUSTMENT OF CREDIT TO PROVIDE RELIEF DURING COVID-19 OUTBREAK.
(a) IN GENERAL. — At the election of a taxpayer who is an owner of an eligible low-income building —
(1) the credit determined under section 42 of the Internal Revenue Code of 1986 for the first or second taxable year of such building's credit period ending on or after July 1, 2020, shall be 150 percent of the amount which would (but for this subsection) be so allowable with respect to such building for such taxable year, and
(2) the aggregate credits allowable under such section with respect to such building shall be reduced, on a pro rata basis for each subsequent taxable year in the credit period, by the increase in the credit allowed by reason of paragraph (1) with respect to such first or second taxable year.
The preceding sentence shall not be construed to affect whether any taxable year is part of the credit, compliance, or extended use periods for purposes of such section 42.
(b) ELIGIBLE LOW-INCOME BUILDING. — For purposes of this section, the term "eligible low-income building" means a qualified low-income building with respect to which —
(1) the first year in the credit period ends on or after July 1, 2020, and before July 1, 2022, and
(2) construction or leasing delays have occurred after January 31, 2020, due to the outbreak of coronavirus disease 2019 (COVID-19) in the United States.
(c) ELECTION. —
(1) IN GENERAL. — The election under subsection (a) shall be made at such time and in such manner as shall be prescribed by the Secretary of the Treasury (or the Secretary's delegate) and, once made, shall be irrevocable by the taxpayer and any successor in ownership.
(2) PARTNERSHIPS. — In the case of an eligible low-income building owned by a partnership or S corporation, such election shall be made at the entity level.
(3) CERTIFICATION. — An owner making such election shall provide to the housing credit agency, at the same time and in addition to such other information as may be required under section 42(l)(1) of the Internal Revenue Code of 1986 with respect to the building, a certification that the purpose of making such election is to offset any reductions in capital or additional costs arising by reason of the outbreak of coronavirus disease 2019 (COVID-19) in the United States. Such certification shall include any documentation which the housing credit agency may request.
(d) DEFINITIONS. — Any term used in this section which is also used in section 42 of the Internal Revenue Code of 1986 shall have the same meaning as when used in such section.
SEC. 90613. CREDIT FOR LOW-INCOME HOUSING SUPPORTIVE SERVICES.
(a) IN GENERAL. — Subpart D of part IV of subchapter A of chapter 1 is amended by inserting after section 42 the following new section:
"SEC. 42A. CREDIT FOR CONTRIBUTIONS TO LOW-INCOME HOUSING SUPPORTIVE SERVICES.
"(a) IN GENERAL. — For purposes of section 38, the amount of the low-income housing supportive services credit determined under this section for the applicable taxable year is an amount equal to 25 percent of the qualified supportive housing contribution made by the taxpayer.
"(b) QUALIFIED SUPPORTIVE HOUSING CONTRIBUTION. — For purposes of this section —
"(1) IN GENERAL. — The term 'qualified supportive housing contribution' means the total amount contributed in cash by the taxpayer to a qualified supportive housing reserve fund with respect to a qualified low-income building, determined as of the date the building is placed in service.
"(2) QUALIFIED SUPPORTIVE HOUSING RESERVE FUND. — The term 'qualified supportive housing reserve fund' means, with respect to any qualified low-income building, a separate fund reserved exclusively for payment for qualified supportive services provided to tenants of the building pursuant to an extended supportive services commitment. The owner of such building shall designate an administrator to separately account for the amounts in the fund in such manner as the Secretary may prescribe.
"(3) LIMITATIONS. —
"(A) IN GENERAL. — No amount attributable to any governmental grant, including grants provided by the government of any State, possession, tribe, or locality, shall be taken into account under paragraph (1).
"(B) DOLLAR LIMITATION. — The total qualified supportive housing contributions taken into account under this section with respect to any qualified low-income building shall not exceed —
"(i) $120,000, multiplied by
"(ii) the number of low-income units in the building which are occupied at the close of the applicable taxable year.
"(c) APPLICABLE TAXABLE YEAR. — For purposes of this section, the term 'applicable taxable year' means the 1st taxable year in the credit period with respect to the qualified low-income building described in subsection (b)(1).
"(d) QUALIFIED SUPPORTIVE SERVICES. — For purposes of this section, the term 'qualified supportive services' means services —
"(1) provided by the owner of a qualified low income building (directly or through contracts with a third party service provider) to tenants of the building,
"(2) which include health services (including mental health services), coordination of tenant benefits, job training, financial counseling, resident engagement services, or services the principal purpose of which is to help tenants retain permanent housing, or such other services as the Secretary may by regulation provide, and
"(3) which are provided at no cost to tenants,
"(4) usage of or participation in which is not required for tenants.
Such term includes reasonable and necessary measures for the provision of such services, including measures to engage tenants in and coordinate such services and measures required to obtain the certification described in subsection (e)(4).
"(e) EXTENDED SUPPORTIVE SERVICES COMMITMENT. — The term 'extended supportive services commitment' means any agreement between the owner of a qualified low-income building and the housing credit agency which —
"(1) requires that amounts in a qualified supportive housing reserve fund are spent exclusively on the provision of qualified supportive services to tenants of such building,
"(2) requires that the amounts in such fund be spent entirely during the extended use period, and provides for the manner in which such spending will be distributed across such period,
"(3) requires the designation of 1 or more individuals to engage tenants regarding and coordinate delivery of qualified supportive services,
"(4) requires the maintenance of an appropriate certification, as determined by the Secretary after consultation with the Secretary of Housing and Urban Development, for qualified supportive services, subject to recertification at least once every 5 years,
"(5) requires appropriate annual reporting to the housing credit agency on expenditures and outcomes, as determined by such agency, and
"(6) is binding on all successors in ownership of such building.
"(f) RECAPTURE OF QUALIFIED SUPPORTIVE HOUSING RESERVE AMOUNTS. —
"(1) IN GENERAL. — If the owner of a qualified low-income building is determined to be noncompliant with the extended supportive services commitment or extended low-income housing commitment with respect to such building, any remaining amounts in the qualified supportive housing reserve fund with respect to such building shall be transferred to the housing credit agency.
"(2) USE OF REPAYMENTS. — A housing credit agency shall use any amount received pursuant to paragraph (1) only for purposes of qualified low-income buildings.
"(g) SPECIAL RULES. —
"(1) IN GENERAL. — Notwithstanding any other provision of this section, no credit shall be allowed under this section for any taxable year with respect to any qualified low-income building unless —
"(A) the building has received an allocation of the low-income housing credit under section 42 by a housing credit agency which is approved by the governmental unit (in accordance with rules similar to the rules of section 147(f)(2) (other than subparagraph (B)(ii) thereof)) of which such agency is a part,
"(B) the qualified allocation plan of the housing credit agency sets forth selection criteria to determine appropriate, evidence-based supportive services and provides a procedure that the agency (or an agent or other private contractor of such agency) will follow in monitoring for noncompliance with the provisions of this section and in reporting such noncompliance to the Secretary,
"(C) an extended low-income housing commitment is in effect with respect to such building as of the end of such taxable year,
"(D) an extended supportive services commitment is in effect with respect to such building as of the end of such taxable year, and
"(E) appropriate books and records for itemized expenses and expenditures with respect to the qualified supportive housing reserve fund are maintained on an annual basis, and are available for inspection upon request by the housing credit agency.
"(2) DENIAL OF DOUBLE BENEFIT. — The deductions otherwise allowed under this chapter for the taxable year shall be reduced by the amount of the credit allowed under this section for such taxable year.
"(h) DEFINITIONS. — Any term used in this section which is also used in section 42 shall have the same meaning as when used in such section.".
(b) CREDIT TO BE PART OF GENERAL BUSINESS CREDIT. —
(1) IN GENERAL. — Section 38(b), as amended by the preceding provisions of this Act, is amended by striking "plus" at the end of paragraph (34), by striking the period at the end of paragraph (35) and inserting ", plus", and by adding at the end the following new paragraph:
"(36) the low-income housing supportive services credit determined under section 42A(a).".
(2) TREATMENT AS SPECIFIED CREDIT. — Clause (iii) of section 38(c)(4)(B) is amended by inserting ", and the credit determined under section 42A" after "2007".
(c) TREATMENT FOR PURPOSES OF TAX ON BASE EROSION PAYMENTS. — Paragraph (4) of section 59A(b) is amended by redesignating subparagraphs (B) and (C) as subparagraphs (C) and (D), respectively, and by inserting after subparagraph (A) the following new subparagraph:
"(B) the low-income housing supportive services credit determined under section 42A(a),".
(d) PASSIVE ACTIVITY CREDITS. —
(1) IN GENERAL. — Section 469 is amended by striking "42" each place it appears in subsections (i)(3)(C), (i)(6)(B)(i), and (k)(1) and inserting "42 or 42A".
(2) CONFORMING AMENDMENTS. — The headings of subsections (i)(3)(C) and (i)(6)(B) of section 469 are each amended by striking "CREDIT" and inserting "CREDITS".
(e) CLERICAL AMENDMENT. — The table of sections for subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 42 the following new item:
"Sec. 42A. Credit for contributions to low-income housing supportive services.".
(f) EFFECTIVE DATE. — The amendments made by this section shall apply to buildings placed in service after December 31, 2020.
Subtitle B — Neighborhood Homes Credit
SEC. 90621. NEIGHBORHOOD HOMES CREDIT.
(a) IN GENERAL. — Subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by inserting after section 42A the following new section:
"SEC. 42B. NEIGHBORHOOD HOMES CREDIT.
"(a) ALLOWANCE OF CREDIT. — For purposes of section 38, the amount of the neighborhood homes credit determined under this section for a taxable year for a qualified project shall be, with respect to each qualified residence that is part of such qualified project and that experiences a qualified completion event during such taxable year, an amount equal to —
"(1) in the case of an affordable sale, with respect to the seller, the excess of —
"(A) the qualified development cost incurred by such seller for such qualified residence, over
"(B) the sale price of such qualified residence, or
"(2) in the case of any other qualified completion event, with respect to a taxpayer other than the owner of the qualified residence (or a related person with respect to such owner), the excess of —
"(A) the development cost incurred by such taxpayer for such qualified residence, over
"(B) the amount received by such taxpayer as payment for such rehabilitation.
"(b) LIMITATIONS. —
"(1) AMOUNT. — The amount determined under subsection (a) with respect to a qualified residence shall not exceed 35 percent of the lesser of —
"(A) the qualified development cost, or
"(B) 80 percent of the national median sale price for new homes (as determined pursuant to the most recent census data available as of the date on which the neighborhood homes credit agency makes an allocation for the qualified project).
"(2) ALLOCATIONS. —
"(A) IN GENERAL. — The amount determined under subsection (a) with respect to a qualified residence that is part of a qualified project and that experiences a qualified completion event shall not exceed the excess of —
"(i) the amount determined under subparagraph (B), over
"(ii) the amounts previously determined under subsection (a) with respect to such qualified project.
"(B) ALLOCATION AMOUNT. — The amount determined under this paragraph with respect to a qualified residence that is part of a qualified project and that experiences a qualified completion event is the least of —
"(i) the amount allocated to such project by the neighborhood homes credit agency under this section,
"(ii) pursuant to subparagraph (C), the amount such agency determines at the time of the qualified completion event is necessary to ensure the financial feasibility of the project, or
"(iii) in the case of a qualified completion event that occurs after the 5-year period beginning on the date of the allocation referred to in clause (i), $0.
"(C) FINANCIAL FEASABILITY. — For purposes of subparagraph (B)(ii), the neighborhood homes credit agency shall consider —
"(i) the sources and uses of funds and the total financing planned for the qualified project,
"(ii) any proceeds or receipts expected to be generated by reason of tax benefits,
"(iii) the percentage of the amount allocated to such project under this section used for project costs other than the cost of intermediaries, and
"(iv) the reasonableness of the developmental costs and fees of the qualified project.
"(c) QUALIFIED DEVELOPMENT COST. — For purposes of this section —
"(1) IN GENERAL. — The term 'qualified development cost' means, with respect to a qualified residence, so much of the allowable development cost as the neighborhood homes credit agency certifies, at the time of the completion event, meets the standards promulgated under subsection (h)(1)(C).
"(2) ALLOWABLE DEVELOPMENT COST. — The term 'allowable development cost' means —
"(A) the cost of construction, substantial rehabilitation, demolition of any structure, and environmental remediation, and
"(B) in the case of an affordable sale, so much of the cost of acquiring buildings and land as does not exceed an amount equal to 75 percent of the costs described in subparagraph (A).
"(3) CONDOMINIUM AND COOPERATIVE HOUSING UNITS. — In the case of a qualified residence described in subparagraph (B) or (C) of subsection (f)(1), the allowable development cost of such qualified residence shall be an amount equal to the total allowable development cost of the entire condominium or cooperative housing property in which such qualified residence is located, multiplied by a fraction —
"(A) the numerator of which is the total floor space of such qualified residence, and
"(B) the denominator of which is the total floor space of all residences within such property.
"(d) QUALIFIED PROJECT. — For purposes of this section, the term 'qualified project' means a project that —
"(1) a neighborhood homes credit agency certifies will build or substantially rehabilitate 1 or more qualified residences located in one or more qualified census tracts, and
"(2) is designated by such agency as a qualified project under this section and is allocated (before such building or substantial rehabilitation begins) a portion of the amount allocated to such agency under subsection (g).
"(e) QUALIFIED CENSUS TRACT. — For purposes of this section —
"(1) IN GENERAL. — The term 'qualified census tract' means a census tract —
"(A) with —
"(i) a median gross income which does not exceed 80 percent of the applicable area median gross income,
"(ii) a poverty rate that is not less than 130 percent of the applicable area poverty rate, and
"(iii) a median value for owner-occupied homes that does not exceed applicable area median value for owner-occupied homes,
"(B) which is located in a city with a population of not less than 50,000 and a poverty rate that is not less than 150 percent of the applicable area poverty rate, and which has —
"(i) a median gross income which does not exceed the applicable area median gross income, and
"(ii) a median value for owner-occupied homes that does not exceed 80 percent of the applicable area median value for owner-occupied homes, or
"(C) which is located in a nonmetropolitan county and which has —
"(i) a median gross income which does not exceed the applicable area median gross income, and
"(ii) been designated by a neighborhood homes credit agency under this clause.
"(2) ADDITIONAL CENSUS TRACTS FOR SUBSTANTIAL REHABILITATION. — In the case of a qualified residence that is intended for substantial rehabilitation described in subsection (f)(5)(B), the term 'qualified census tract' includes a census tract that meets the requirements of paragraph (1)(A), without regard to clause (iii), and that is designated by the neighborhood homes credit agency under this paragraph.
"(3) LIST OF QUALIFIED CENSUS TRACTS. — The Secretary of Housing and Urban Development shall, for each year, make publicly available a list of qualified census tracts under —
"(A) on a combined basis, subparagraphs (A) and (B) of paragraph (1),
"(B) subparagraph (C) of such paragraph, and
"(C) paragraph (2).
"(f) OTHER DEFINITIONS. — For purposes of this section —
"(1) QUALIFIED RESIDENCE. — The term 'qualified residence' means a residence that consists of —
"(A) a single-family home containing 4 or fewer residential units,
"(B) a condominium unit, or
"(C) a house or an apartment owned by a cooperative housing corporation (as defined in section 216(b)).
"(2) AFFORDABLE SALE. —
"(A) IN GENERAL. —
"(i) IN GENERAL. — The term 'affordable sale' means a sale to a qualified homeowner of a qualified residence that the neighborhood homes credit agency certifies as meeting the standards promulgated under subsection (h)(1)(D) for a price that does not exceed —
"(I) in the case of any qualified residence not described in subclause (II), (III), or (IV), the amount equal to the product of 4 multiplied by the applicable area median gross income,
"(II) in the case of a single-family home containing two residential units, 125 percent of the amount described in subclause (I),
"(III) in the case of a single-family home containing three residential units, 150 percent of the amount described in subclause (I), or
"(IV) in the case of a single-family home containing four residential units, 175 percent of the amount described in subclause (I).
"(ii) RELATED PERSONS. —
"(I) IN GENERAL. — A sale between related persons shall not be treated as an affordable sale.
"(II) DEFINITION. — For purposes of this section, a person (in this clause referred to as the 'related person') is related to any person if the related person bears a relationship to such person specified in section 267(b) or 707(b)(1), or the related person and such person are engaged in trades or businesses under common control (within the meaning of subsections (a) and (b) of section 52). For purposes of the preceding sentence, in applying section 267(b) or 707(b)(1), '10 percent' shall be substituted for '50 percent'.
"(3) APPLICABLE AREA. — The term 'applicable area' means —
"(A) in the case of a metropolitan census tract, the metropolitan area in which such census tract is located, and
"(B) in the case of a census tract other than a census tract described in subparagraph (A), the State.
"(4) SUBSTANTIAL REHABILITATION. — The term 'substantial rehabilitation' means rehabilitation efforts involving qualified development costs that are not less than the greater of —
"(A) $20,000, or
"(B) 20 percent of the cost of acquiring buildings and land.
"(5) QUALIFIED COMPLETION EVENT. — The term 'qualified completion event' means —
"(A) in the case of a qualified residence that is built or substantially rehabilitated as part of a qualified project and sold, an affordable sale, or
"(B) in the case of a qualified residence that is substantially rehabilitated as part of a qualified project and owned by the same qualified homeowner throughout such rehabilitation, the completion of such rehabilitation (as determined by the neighborhood homes credit agency) to the standards promulgated under subsection (h)(1)(D).
"(6) QUALIFIED HOMEOWNER. —
"(A) IN GENERAL. — The term 'qualified homeowner' means, with respect to a qualified residence, an individual —
"(i) who owns and uses such qualified residence as the principal residence of such individual, and
"(ii) whose income is 140 percent or less of the applicable area median gross income for the location of the qualified residence.
"(B) OWNERSHIP. — For purposes of a cooperative housing corporation (as such term is defined in section 216(b)), a tenant-stockholder shall be treated as owning the house or apartment which such person is entitled to occupy.
"(C) INCOME. — For purposes of this paragraph, income shall be a determined in accordance with section 143(f)(2) and 143(f)(4).
"(D) TIMING. — For purposes of this paragraph, the income of a taxpayer shall be determined —
"(i) in the case of a qualified residence that is built or substantially rehabilitated as part of a qualified project and sold, at the time a binding contract for purchase is made, or
"(ii) in the case of a qualified residence that is occupied by a qualified homeowner and intended to be substantially rehabilitated as part of a qualified project, at the time a binding contract to undertake such rehabilitation is made.
"(7) NEIGHBORHOOD HOMES CREDIT AGENCY. — The term 'neighborhood homes credit agency' means the agency designated by the governor of a State as the neighborhood homes credit agency of the State.
"(g) ALLOCATION. —
"(1) STATE NEIGHBORHOOD HOMES CREDIT CEILING. — The State neighborhood homes credit amount for a State for a calendar year is an amount equal to the greater of —
"(A) the product of $6, multiplied by the State population (determined in accordance with section 146(j)), or
"(B) $8,000,000.
"(2) UNUSED AMOUNT. — The State neighborhood homes credit amount for a calendar year shall be increased by the sum of —
"(A) any amount certified by the neighborhood homes credit agency of the State as having been previously allocated to a qualified project and not used during the 5-year period described in subsection (b)(2)(B)(iii), plus
"(B) sum of the amount by which the amount determined under paragraph (1) (without application of this paragraph) exceeded the amount allocated to qualified projects in each of the three immediately preceding calendar years.
"(3) PORTION OF STATE CREDIT CEILING FOR CERTAIN PROJECTS INVOLVING QUALIFIED NONPROFIT ORGANIZATIONS. — Rules similar to the rules of section 42(h)(5) shall apply.
"(h) RESPONSIBILITIES OF NEIGHBORHOOD HOMES CREDIT AGENCIES. —
"(1) IN GENERAL. — Notwithstanding subsection (g), the State neighborhood homes credit dollar amount shall be zero for a calendar year unless the neighborhood homes credit agency of the State —
"(A) allocates such amount pursuant to a qualified allocation plan of the neighborhood homes credit agency,
"(B) allocates not more than 20 percent of such amount for the previous year to projects with respect to qualified residences in census tracts under subsection (e)(1)(C) or (e)(2),
"(C) promulgates standards with respect to reasonable qualified development costs and fees,
"(D) promulgates standards with respect to construction quality, and
"(E) submits to the Secretary (at such time and in such manner as the Secretary may prescribe) an annual report specifying —
"(i) the amount of the neighborhood homes credits allocated to each qualified project for the previous year,
"(ii) with respect to each qualified residence completed in the preceding calendar year —
"(I) the census tract in which such qualified residence is located,
"(II) with respect to the qualified project that includes such qualified residence, the year in which such project received an allocation under this section,
"(III) whether such qualified residence was new or substantially rehabilitated,
"(IV) the eligible basis of such qualified residence,
"(V) the amount of the neighborhood homes credit with respect to such qualified residence,
"(VI) the sales price of such qualified residence or, in the case of a qualified residence that is substantially rehabilitated as part of a qualified project and is owned by the same qualified homeowner during the entirety of such rehabilitation, the cost of the substantial rehabilitation, and
"(VII) the income of the qualified homeowner (expressed as a percentage of the applicable area median gross income for the location of the qualified residence), and
"(iii) such other information as the Secretary may require.
"(2) QUALIFIED ALLOCATION PLAN. — For purposes of this subsection, the term 'qualified allocation plan' means any plan which —
"(A) sets forth the selection criteria to be used to prioritize qualified projects for allocations of State neighborhood homes credit dollar amounts, including —
"(i) the need for new or substantially rehabilitated owner-occupied homes in the area addressed by the project,
"(ii) the expected contribution of the project to neighborhood stability and revitalization,
"(iii) the capability of the project sponsor, and
"(iv) the likelihood the project will result in long-term homeownership,
"(B) has been made available for public comment, and
"(C) provides a procedure that the neighborhood homes credit agency (or any agent or contractor of such agency) shall follow for purposes of —
"(i) identifying noncompliance with any provisions of this section, and
"(ii) notifying the Internal Revenue Service of any such noncompliance of which the agency becomes aware.
"(i) POSSESSIONS TREATED AS STATES. — For purposes of this section, the term 'State' includes the District of Columbia and a possession of the United States.
"(j) REPAYMENT. —
"(1) IN GENERAL. —
"(A) SOLD DURING 5-YEAR PERIOD. — If a qualified residence is sold during the 5-year period beginning on the date of the qualified completion event described in subsection (a) with respect to such qualified residence, the seller shall transfer an amount equal to the repayment amount from the amount realized on such sale to the relevant neighborhood homes credit agency.
"(B) USE OF REPAYMENTS. — A neighborhood homes credit agency shall use any amount received pursuant to subparagraph (A) only for purposes of qualified projects.
"(2) REPAYMENT AMOUNT. — For purposes of paragraph (1)(A), the repayment amount is an amount equal to 50 percent of the gain from such resale, reduced by 20 percent for each year of the 5year period referred to in paragraph (1)(A) which ends before the date of the sale referred to in such paragraph.
"(3) LIEN FOR REPAYMENT AMOUNT. — A neighborhood homes credit agency receiving an allocation under this section shall place a lien on each qualified residence that is built or rehabilitated as part of a qualified project for an amount such agency deems necessary to ensure potential repayment pursuant to paragraph (1)(A).
"(4) DENIAL OF DEDUCTIONS IF CONVERTED TO RENTAL HOUSING. — If, during the 5-year period beginning on the date of the qualified completion event described in subsection (a), an individual who owns a qualified residence fails to use such qualified residence as such individual's principal residence for any period of time, no deduction shall be allowed for expenses paid or incurred by such individual with respect to renting, during such period of time, such qualified residence.
"(5) WAIVER. — The neighborhood homes credit agency may waive the repayment required under paragraph (1)(A) in the case of homeowner experiencing a hardship.
"(k) REPORT. —
"(1) IN GENERAL. — The Secretary shall annually issue a report, to be made available to the public, which contains the information submitted pursuant to subsection (h)(1)(E).
"(2) DE-IDENTIFICATION. — The Secretary shall ensure that any information made public pursuant to paragraph (1) excludes any information that would allow for the identification of qualified homeowners.
"(l) INFLATION ADJUSTMENT. —
"(1) IN GENERAL. — In the case of a calendar year after 2020, the dollar amounts in this section shall be increased by an amount equal to —
"(A) such dollar amount, multiplied by
"(B) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting 'calendar year 2019' for 'calendar year 2016' in subparagraph (A)(ii) thereof.
"(2) ROUNDING. —
"(A) In the case of the dollar amount in subsection (f)(4), any increase under paragraph (1) which is not a multiple of $1,000 shall be rounded to the nearest multiple of $1,000.
"(B) In the case of the dollar amount in subsection (g)(1)(A)(i), any increase under paragraph (1) which is not a multiple of $0.01 shall be rounded to the nearest multiple of $0.01.
"(C) In the case of the dollar amount in subsection (g)(1)(A)(ii), any increase under paragraph (1) which is not a multiple of $100,000 shall be rounded to the nearest multiple of $100,000.".
(b) CURRENT YEAR BUSINESS CREDIT CALCULATION. — Section 38(b), as amended by the preceding provisions of this Act, is amended by striking "plus" at the end of paragraph (35), by striking the period at the end of paragraph (36) and inserting ", plus", and by adding at the end the following new paragraph:
"(37) the neighborhood homes credit determined under section 42B(a),".
(c) CONFORMING AMENDMENTS. — Subsections (i)(3)(C), (i)(6)(B)(i), and (k)(1) of section 469 are each amended by inserting "or 42A" and inserting "42A, or 42B".
(d) CLERICAL AMENDMENT. — The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by inserting after the item relating to section 42A the following new item:
"Sec. 42B. Neighborhood homes credit.".
(e) EFFECTIVE DATE. — The amendments made by this section shall apply to taxable years beginning after December 31, 2020.
TITLE VII — TRIBAL DEVELOPMENT
SEC. 90701. TREATMENT OF INDIAN TRIBES AS STATES WITH RESPECT TO BOND ISSUANCE.
(a) IN GENERAL. — Subsection (c) of section 7871 is amended to read as follows:
"(c) SPECIAL RULES FOR TAX-EXEMPT BONDS. —
"(1) IN GENERAL. — In applying section 146 to bonds issued by Indian Tribal Governments the Secretary shall annually —
"(A) establish a national bond volume cap based on the greater of —
"(i) the State population formula approach in section 146(d)(1)(A) (using national Tribal population estimates supplied annually by the Department of the Interior in consultation with the Census Bureau), and
"(ii) the minimum State ceiling amount in section 146(d)(1)(B) (as adjusted in accordance with the cost of living provision in section 146(d)(2)),
"(B) allocate such national bond volume cap among all Indian Tribal Governments seeking such an allocation in a particular year under regulations prescribed by the Secretary.
"(2) APPLICATION OF GEOGRAPHIC RESTRICTION. — In the case of national bond volume cap allocated under paragraph (1), section 146(k)(1) shall not apply to the extent that such cap is used with respect to financing for a facility located on qualified Indian lands.
"(3) DEFINITIONS AND SPECIAL RULES. — For purposes of this subsection —
"(A) INDIAN TRIBAL GOVERNMENT. — The term 'Indian Tribal Government' means the governing body of an Indian Tribe, band, nation, or other organized group or community which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians, and also includes any agencies, instrumentalities or political subdivisions thereof.
"(B) INTERTRIBAL CONSORTIUMS, ETC. — In any case in which an Indian Tribal Government has authorized an intertribal consortium, a Tribal organization, or an Alaska Native regional or village corporation, as defined in, or established pursuant to, the Alaska Native Claims Settlement Act, to plan for, coordinate or otherwise administer services, finances, functions, or activities on its behalf under this subsection, the authorized entity shall have the rights and responsibilities of the authorizing Indian Tribal Government only to the extent provided in the Authorizing resolution.
"(C) QUALIFIED INDIAN LANDS. — The term 'qualified Indian lands' shall mean an Indian reservation as defined in section 3(d) of the Indian Financing Act of 1974 ( 25 U.S.C. 1452(d)), including lands which are within the jurisdictional area of an Oklahoma Indian Tribe (as determined by the Secretary of the Interior) and shall include lands outside a reservation where the facility is to be placed in service in connection with the active conduct of a trade or business by an Indian Tribe on or near an Indian reservation or Alaska Native village or in connection with infrastructure (including roads, power lines, water systems, railroad spurs, and communication facilities) serving an Indian reservation or Alaska Native village.".
(b) REPEAL OF ESSENTIAL GOVERNMENTAL FUNCTION REQUIREMENTS. — Section 7871 is amended —
(1) by striking subsections (b) and (e), and
(2) by striking "subject to subsection (b)," in subsection (a)(2).
(c) CONFORMING AMENDMENT. — Subparagraph (B) of section 45(c)(9) is amended to read as follows:
"(B) INDIAN TRIBE. — For purposes of this paragraph, the term 'Indian tribe' has the meaning given the term 'Indian Tribal Government' by section 7871(c)(3)(A).".
(d) EFFECTIVE DATE. —
(1) IN GENERAL. — Except as otherwise provided in this subsection, the amendments made by this section shall apply to obligations issued in calendar years beginning after the date of the enactment of this Act.
(2) REPEAL OF ESSENTIAL GOVERNMENTAL FUNCTION REQUIREMENTS. — The amendments made by subsection (b) shall apply to transactions after, and obligations issued in calendar years beginning after, the date of the enactment of this Act.
SEC. 90702. TREATMENT OF TRIBAL FOUNDATIONS AND CHARITIES LIKE CHARITIES FUNDED AND CONTROLLED BY OTHER GOVERNMENTAL FUNDERS AND SPONSORS.
(a) IN GENERAL. — Section 7871(a) is amended by striking "and" at the end of paragraph (6), by striking the period at the end of paragraph (7) and inserting ", and", and by adding at the end the following new paragraph:
"(8) for purposes of —
"(A) determining support of an organization described in section 170(b)(1)(A)(vi), and
"(B) determining whether an organization is described in paragraph (1) or (2) of section 509(a) for purposes of section 509(a)(3).".
(b) EFFECTIVE DATE. — The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
SEC. 90703. NEW MARKETS TAX CREDIT.
(a) EXPANDING LOW-INCOME COMMUNITY DEFINITION TO INCLUDE TRIBAL COMMUNITIES. —
(1) IN GENERAL. — Paragraph (1) of section 45D(e) is amended to read as follows:
"(1) IN GENERAL. — The term 'low income community' means any area —
"(A) comprising a population census tract if —
"(i) the poverty rate for such tract is at least 20 percent, or
"(ii)(I) in the case of a tract not located within a metropolitan area, the median family income for such tract does not exceed 80 percent of statewide median family income, or
"(II) in the case of a tract located within a metropolitan area, the median family income for such tract does not exceed 80 percent of the greater of statewide median family income or the metropolitan area median family income,
"(B) comprising a Tribal Statistical Area. Subparagraph (A)(ii) shall be applied using possession wide median family income in the case of census tracts located within a possession of the United States".
(2) TRIBAL STATISTICAL AREA DEFINED. — Section 45D(e) is amended by adding at the end the following new paragraph:
"(6) TRIBAL STATISTICAL AREA. — For purposes of paragraph (1)(B), the term 'Tribal Statistical Area' means —
"(A) any Tribal Census Tract, Oklahoma Tribal Statistical Area, Tribal-Designated Statistical Area, or Alaska Native Village Statistical Area if —
"(i) the poverty rate for such tract or area is at least 20 percent, or
"(ii) the median family income for such tract or area does not exceed 80 percent of the statewide median family income for a State with boundaries that encompass or intersect the boundaries of such area, and
"(B) any area that will be used for the construction, reconstruction or improvement of a community facility or an infrastructure project that —
"(i) services Tribal or village members of any tract or area described in subparagraph (A), and
"(ii) has documented its eligibility with respect to clause (i) to the satisfaction of the relevant Indian Tribal Government (within the meaning of section 7871(c)).".
(b) TRIBAL INVESTMENT PROPORTIONALITY GOAL. — Section 45D(i) is amended by striking "and" at the end of paragraph (5), by striking the period at the end of paragraph (6) and inserting ", and", and by adding at the end the following new paragraph:
"(7) which ensure that Tribal Statistical Areas (as defined in subsection (e)(6)) receive a proportional allocation of qualified equity investments based on the overall number of Native Americans relative to the portion of the United States population which is at or below the poverty line (as determined for purposes of determining poverty rates under subsection (e)).".
(c) EFFECTIVE DATE. — The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
TITLE VIII — HIGHWAY TRUST FUND AND RELATED TAXES
SEC. 90801. EXTENSION OF HIGHWAY TRUST FUND EXPENDITURE AUTHORITY.
(a) HIGHWAY TRUST FUND. — Section 9503 is amended —
(1) by striking "October 1, 2020" in subsections (b)(6)(B), (c)(1), and (e)(3) and inserting "October 1, 2025", and
(2) by striking "FAST Act" in subsections (c)(1) and (e)(3) and inserting "Moving Forward Act".
(b) SPORT FISH RESTORATION AND BOATING TRUST FUND. — Section 9504 is amended —
(1) by striking "FAST Act" each place it appears in subsection (b)(2) and inserting "Moving Forward Act", and
(2) by striking "October 1, 2020" in subsection (d)(2) and inserting "October 1, 2025".
(c) LEAKING UNDERGROUND STORAGE TANK TRUST FUND. — Section 9508(e)(2) is amended by striking "October 1, 2020" and inserting "October 1, 2025".
SEC. 90802. EXTENSION OF HIGHWAY-RELATED TAXES.
(a) IN GENERAL. —
(1) Each of the following provisions of the Internal Revenue Code of 1986 is amended by striking "September 30, 2022" and inserting "September 30, 2027":
(A) Section 4041(a)(1)(C)(iii)(I).
(C) Section 4081(d)(1).
(2) Each of the following provisions of the Internal Revenue Code of 1986 is amended by striking "October 1, 2022" and inserting "October 1, 2027":
(B) Section 4051(c).
(C) Section 4071(d).
(D) Section 4081(d)(3).
(b) EXTENSION OF TAX, ETC., ON USE OF CERTAIN HEAVY VEHICLES. — Each of the following provisions of the Internal Revenue Code of 1986 is amended by striking "2023" each place it appears and inserting "2028":
(1) Section 4481(f).
(2) Subsections (c)(4) and (d) of section 4482.
(c) FLOOR STOCKS REFUNDS. — Section 6412(a)(1) is amended —
(1) by striking "October 1, 2022" each place it appears and inserting "October 1, 2027",
(2) by striking "March 31, 2023" each place it appears and inserting "March 31, 2028", and
(3) by striking "January 1, 2023" and inserting "January 1, 2028".
(d) EXTENSION OF CERTAIN EXEMPTIONS. —
(1) Section 4221(a) is amended by striking "October 1, 2022" and inserting "October 1, 2027".
(2) Section 4483(i) is amended by striking "October 1, 2023" and inserting "October 1, 2028".
(e) EXTENSION OF TRANSFERS OF CERTAIN TAXES. —
(1) IN GENERAL. — Section 9503 is amended —
(A) in subsection (b) —
(i) by striking "October 1, 2022" each place it appears in paragraphs (1) and (2) and inserting "October 1, 2027",
(ii) by striking "OCTOBER 1, 2022" in the heading of paragraph (2) and inserting "OCTOBER 1, 2027",
(iii) by striking "September 30, 2022" in paragraph (2) and inserting "September 30, 2027", and
(iv) by striking "July 1, 2023" in paragraph (2) and inserting "July 1, 2028", and
(B) in subsection (c)(2), by striking "July 1, 2013" and inserting "July 1, 2028".
(2) MOTORBOAT AND SMALL-ENGINE FUEL TAX TRANSFERS. —
(A) IN GENERAL. — Paragraphs (3)(A)(i) and (4)(A) of section 9503(c) are each amended by striking "October 1, 2022" and inserting "October 1, 2027".
(B) CONFORMING AMENDMENTS TO LAND AND WATER CONSERVATION FUND. — Section 200310 of title 54, United States Code, is amended —
(i) by striking "October 1, 2023" each place it appears and inserting "October 1, 2028", and
(ii) by striking "October 1, 2022" and inserting "October 1, 2027".
SEC. 90803. ADDITIONAL TRANSFERS TO HIGHWAY TRUST FUND.
Section 9503(f) is amended by redesignating paragraph (10) as paragraph (11) and by inserting after paragraph (9) the following new paragraph:
"(10) ADDITIONAL TRANSFERS TO TRUST FUND. — Out of money in the Treasury not otherwise appropriated, there is hereby appropriated —
"(A) $106,700,000,000 to the Highway Account (as defined in subsection (e)(5)(B)) in the Highway Trust Fund, and
"(B) $38,600,000,000 to the Mass Transit Account in the Highway Trust Fund.".
- Institutional AuthorsU.S. House of Representatives
- Code Sections
- Subject Area/Tax Topics
- Industry GroupsEnergyReal estate
- Jurisdictions
- Tax Analysts Document Number2020-23960
- Tax Analysts Electronic Citation2020 TNTF 122-292020 EOR 7-47
- Magazine CitationThe Exempt Organization Tax Review, Jul. 2020, p. 14386 Exempt Org. Tax Rev. 143 (2020)
