H.R. 7516 - Clean Energy Innovation and Deployment Act of 2020

116TH CONGRESS
2D SESSION

H.R. 7516

To advance innovation in and deployment of zero-emission
electricity technology, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JULY 9, 2020

Ms. DEGETTE (for herself, Mr. HUFFMAN, and Mr. PETERS)
introduced the following bill; which was referred to the Committee
on Energy and Commerce, and in addition to the Committees
on Science, Space, and Technology, Ways and Means, Transportation
and Infrastructure, and Education and Labor, for a period
to be subsequently determined by the Speaker, in each case
for consideration of such provisions as fall within
the jurisdiction of the committee concerned

A BILL

To advance innovation in and deployment of zero-emission electricity technology, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE. — This Act may be cited as the "Clean Energy Innovation and Deployment Act of 2020".

(b) TABLE OF CONTENTS. — The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I — INVESTMENT IN CLEAN ENERGY TECHNOLOGY INNOVATION

* * *

Subtitle B — Beneficial Electrification

Sec. 111. Innovation in electric vehicles through the advanced technology manufacturing incentive program.

Sec. 112. Deployment of electric vehicles through tax credits.

Sec. 113. Deployment of electric vehicle charging infrastructure through supply equipment programs.

Sec. 114. Deployment of energy efficient buildings through tax credits.

Sec. 115. Deployment of energy efficient buildings through grants.

Subtitle C — Zero-Emission Electricity Generation Technology

Sec. 121. Deployment of solar and wind technology through tax credits.

Sec. 122. Energy tax credit monetization.

Sec. 123. Innovation in energy storage through research, development, and demonstration.

Sec. 124. Deployment of energy storage through tax credits.

Sec. 125. Normalization opt-out for utilities.

Sec. 126. Deployment of carbon capture utilization and storage through tax credits.

Sec. 127. Innovation in advanced nuclear technology through demonstration.

Sec. 128. Innovation in carbon removal, utilization and storage through research, development, and demonstration.

Sec. 129. Deployment of electric grid modernization through grants.

Sec. 130. Prize competition for electricity-related technologies for remote communities.

Sec. 131. Report to Congress.

* * *

TITLE III — INCENTIVES FOR THE ACCELERATED DEPLOYMENT
OF 100 PERCENT ZERO-EMISSION ELECTRICITY SYSTEM

Sec. 300. Purpose.

Sec. 301. Zero-emission electricity acceleration investment tax credit.

Sec. 302. Zero-emission electricity acceleration grants.

* * *

TITLE I — INVESTMENT IN CLEAN ENERGY TECHNOLOGY INNOVATION

* * *

Subtitle B — Beneficial Electrification

* * *

SEC. 112. DEPLOYMENT OF ELECTRIC VEHICLES THROUGH TAX CREDITS.

(a) NEW PHASEOUT RULES ADDED TO QUALIFIED PLUG-IN ELECTRIC VEHICLE TAX CREDIT. — Subsection (e) of section 30D of the Internal Revenue Code of 1986 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 Clean Energy Innovation and Deployment 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 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 Clean Energy Innovation and Deployment 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 OF CREDIT FOR NEW QUALIFIED FUEL CELL MOTOR VEHICLES. — Section 30B(k)(1) of the Internal Revenue Code of 1986 is amended by striking "December 31, 2020" and inserting "December 31, 2028".

(c) EFFECTIVE DATE. — The amendments made by this section shall apply to property purchased after the date of the enactment of this Act.

* * *

SEC. 114. DEPLOYMENT OF ENERGY EFFICIENT BUILDINGS THROUGH TAX CREDITS.

(a) CREDIT DATES EXTENDED. — Subsection (g) of section 25D of the Internal Revenue Code of 1986 is amended —

(1) in paragraph (1), by striking "January 1, 2020" and inserting "January 1, 2025";

(2) in paragraph (2), by striking "after December 31, 2019, and before January 1, 2021" and inserting "after December 31, 2024, and before January 1, 2026"; and

(3) in paragraph (3), by striking "after December 31, 2020, and before January 1, 2022" and inserting "after December 31, 2025, and before January 1, 2027".

(b) TERMINATION DATE EXTENDED. — Subsection (h) of section 25D of such Code is amended by striking "December 31, 2021" and inserting "December 31, 2026".

(c) EFFECTIVE DATE. — The amendments made by this section shall apply to property placed in service after December 31, 2019.

* * *

Subtitle C — Zero-Emission Electricity Generation Technology

SEC. 121. DEPLOYMENT OF SOLAR AND WIND TECHNOLOGY THROUGH TAX CREDITS.

(a) ENERGY CREDIT FOR QUALIFIED OFFSHORE WIND FACILITIES. —

(1) IN GENERAL. — Subsection (a) of section 48 of the Internal Revenue Code is amended —

(A) in paragraph (2)(A)(i) —

(i) in subclause (III), by striking "and" at the end, and

(ii) by adding at the end the following new subclause:

"(V) qualified offshore wind property, and", and

(B) in paragraph (3)(A) —

(i) in clause (vi), by striking "or" at the end,

(ii) in clause (vii), by adding "or" at the end, and

(iii) by adding at the end the following new clause:

"(viii) qualified offshore wind property, but only with respect to property the construction of which begins before January 1, 2028,".

(2) QUALIFIED OFFSHORE WIND PROPERTY. — Subsection (c) of section 48 of such Code is amended by adding at the end the following new paragraph:

"(5) QUALIFIED OFFSHORE WIND PROPERTY. —

"(A) IN GENERAL. — The term 'qualified offshore wind property' means an offshore facility using wind to produce electricity.

"(B) OFFSHORE FACILITY. — The term 'offshore facility' means any facility located in the inland navigable waters of the United States, including the Great Lakes, or in the coastal waters of the United States, including the territorial seas of the United States, the exclusive economic zone of the United States, and the outer Continental Shelf of the United States.

"(C) EXCEPTION FOR QUALIFIED SMALL WIND ENERGY PROPERTY. — The term 'qualified offshore wind property' shall not include any property described in paragraph (4).

"(D) SPECIAL RULE. — In the case of any property described in subparagraph (A) which was placed in service after December 31, 2016, and for which a credit under this section was allowed by reason of subsection (a)(5) in any taxable year which ends before or includes the date of the enactment of the Clean Energy Innovation and Deployment Act of 2020, notwithstanding any election under such subsection (a)(5), such property may be treated at the election of the taxpayer as qualified offshore wind property (and not as qualified property which is part of a qualified investment credit facility) for —

"(i) taxable years beginning on or after such date of enactment, and

"(ii) any taxable years ending before such date of enactment, including by filing an amended return. Notwithstanding section 6501, an amended return may be filed for purposes of clause (ii) for any taxable year described in such clause.".

(3) EFFECTIVE DATE. — The amendments made by this section shall take effect on the date of the enactment of this Act.

(b) EXTENSION AND PHASEOUT OF INVESTMENT TAX CREDIT. —

(1) EXTENSION OF INVESTMENT TAX CREDIT. — Section 48 of the Internal Revenue Code of 1986 is amended —

(A) in subsection (a) —

(i) in paragraph (2)(A)(i)(II), by striking "January 1, 2022" and inserting "January 1, 2028";

(ii) in paragraph (3)(A) —

(I) in clause (ii), by striking "January 1, 2022" and inserting "January 1, 2028"; and

(II) in clause (vii), by striking "January 1, 2022" and inserting "January 1, 2028"; and

(iii) in paragraph (5)(C) —

(I) in clause (i) —

(aa) by striking "(2), (3), (4), (6), (7),"; and (bb) by inserting "and which is placed in service after 2008 and the construction of which begins before January 1, 2028" after "section 45(d)"; and

(II) in clause (ii), by inserting at the beginning of the clause "which is a qualified facility (within the meaning of section 45) described in paragraph (2), (3), (4), (6), and (7) and"; and

(B) in subsection (c) —

(i) in paragraph (1)(D), by striking "January 1, 2022" and inserting "January 1, 2028";

(ii) in paragraph (2)(D), by striking "January 1, 2022" and inserting "January 1, 2028";

(iii) in paragraph (3)(A)(iv), by striking "January 1, 2022" and inserting "January 1, 2028"; and

(iv) in paragraph (4)(C), by striking "January 1, 2022" and inserting "January 1, 2028".

(2) CREDIT TRANSFERABILITY FOR SOLAR INVESTMENT TAX CREDIT. — Section 48 of such Code is further amended by adding at the end the following new subsections:

"(e) TRANSFERABILITY. — If a taxpayer elects to transfer all (or any portion specified in the election) of the credit determined under this section for an energy property described in subsection (a)(5) or (a)(6) for any taxable year to an eligible project partner for a specified period, then the eligible project partner specified in such election (and not the taxpayer) shall be treated for purposes of this title with respect to such credit (or such portion thereof) as the person entitled to such credit (or portion thereof).

"(f) ELIGIBLE PROJECT PARTNER. —

"(1) IN GENERAL. — For purposes of this paragraph, the term 'eligible project partner' means, with respect to any energy property described in subsection (a)(5) or (a)(6), any person who —

"(A) has an ownership interest in such energy property,

"(B) provided equipment for or services in the construction of such energy property,

"(C) provides electric transmission or distribution services for such energy property,

"(D) purchases electricity from such energy property pursuant to a contract, or

"(E) provides financing for such energy property.

"(2) SPECIAL RULE. — For purposes of paragraph (1)(E), any amount paid as consideration for a transfer described in subsection (e) shall not be treated as financing of a qualified facility.

"(g) TAXABLE YEAR IN WHICH CREDIT TAKEN INTO ACCOUNT. — In the case of any credit (or portion thereof) with respect to which an election is made under subsection (e), such credit shall be taken into account in the first taxable year of the eligible project partner ending with, or after, the electing taxpayer's taxable year with respect to which the credit was determined.

"(h) LIMITATIONS ON ELECTION. —

"(1) TIME FOR ELECTION. — An election under subsection (e) to transfer any portion of the credit allowed under this section shall be made not later than the due date for the return of tax for the electing taxpayer's taxable year with respect to which the credit was determined.

"(2) NO FURTHER TRANSFERS. — No election may be made under subsection (e) by a taxpayer with respect to any portion of the credit allowed under this section which has been previously transferred to such taxpayer.

"(3) TREATMENT OF TRANSFER UNDER PRIVATE USE RULES. — For purposes of section 141(b)(1), any benefit derived by an eligible project partner in connection with an election under subsection (e) shall not be taken into account as a private business use.

"(4) ADDITIONAL ELECTION REQUIREMENTS. — The Secretary may prescribe such regulations as may be appropriate to carry out the purposes of this section, including —

"(A) rules for determining which persons are eligible project partners with respect to any energy property, and

"(B) requiring information to be included in an election under subparagraph (A) or imposing additional reporting requirements.

"(i) SPECIAL RULES. —

"(1) In the case of a taxpayer making an election under this section, the credit subject to such an election shall be determined notwithstanding —

"(A) section 50(b)(3); and

"(B) section 50(b)(4) for an entity described in 50(b)(4)(A)(i).

"(2) In the case of a mutual or cooperative electric company described in this paragraph or an organization described in section 1381(a)(2), income received or accrued in connection with the transfer of credit under this section shall be treated as an amount collected from members for the sole purpose of meeting losses and expenses.

"(j) TERMINATION. — This section shall apply to taxable years ending before January 1, 2050.".

(3) PHASEOUTS. —

(A) SOLAR ENERGY PROPERTY. — Section 48(a)(6) of such Code is amended —

(i) in subparagraph (A) —

(I) by striking "January 1, 2022, the energy percentage" and inserting "January 1, 2028, the energy percentage";

(II) in clause (i), by striking "after December 31, 2019, and before January 1, 2021" and inserting "after December 31, 2020, and before January 1, 2027"; and

(III) in clause (ii), by striking "after December 31, 2020, and before January 1, 2022" and inserting "after December 31, 2021, and before January 1, 2027"; and

(ii) in subparagraph (B), by striking "begins before January 1, 2022, and which is not placed in service before January 1, 2024" and inserting "begins before January 1, 2028, and which is not placed in service before January 1, 2030".

(B) FIBER-OPTIC SOLAR, QUALIFIED FUEL CELL, AND QUALIFIED SMALL WIND ENERGY PROPERTY. — Section 48(a)(7) of such Code is amended —

(i) in subparagraph (A) —

(I) in clause (i), by striking "after December 31, 2019, and before January 1, 2021" and inserting "after December 31, 2020, and before January 1, 2027"; and

(II) in clause (ii), by striking "after December 31, 2020, and before January 1, 2022" and inserting "after December 31, 2021, and before January 1, 2027"; and

(ii) in subparagraph (B), by striking "January 1, 2024" and inserting "January 1, 2030".

(c) EXTENSION OF PRODUCTION TAX CREDIT. —

(1) WIND. — Section 45(d)(1) of the Internal Revenue Code of 1986 is amended by striking "January 1, 2021" and inserting "January 1, 2028".

(2) HYDROPOWER, MARINE AND HYDROKINETIC. — Section 45(d)(9)(a)(i) and (ii) and Section 45(d)(11)(B) of the Internal Revenue Code of 1986 is amended by striking "January 1, 2021" and inserting "January 1, 2028".

(3) APPLICATION OF PHASEOUT PERCENTAGE. — Section 45(b)(5)(D) of the Internal Revenue Code of 1986 is amended by striking "January 1, 2021" and inserting "January 1, 2028".

(4) TREATMENT AS ENERGY PROPERTY. — Section 48(a)(5)(E) of the Internal Revenue Code of 1986 is amended by striking "January 1, 2021" and inserting "January 1, 2028".

(5) CREDIT TRANSFERABILITY FOR WIND PRODUCTION TAX CREDIT. — Section 45 of the Internal Revenue Code of 1986 is amended by adding at the end the following:

"(f) TRANSFERABILITY. — If the taxpayer elects to transfer all (or any portion specified in the election) of the credit determined under this section for any taxable year with respect to any qualified facility as defined in subsection (d)(1) to an eligible project partner for a specified period, then, the eligible project partner specified in such election (and not the taxpayer) shall be treated for purposes of this title with respect to such credit (or such portion thereof) as the person producing and selling the electricity to which such credit (or portion thereof) relates.

"(g) ELIGIBLE PROJECT PARTNER. —

"(1) IN GENERAL. — For purposes of this section, the term 'eligible project partner' means, with respect to any qualified facility as defined in subsection (d)(1), any person who —

"(A) has an ownership interest in such qualified facility,

"(B) provided equipment for or services in the construction of such qualified facility,

"(C) provides electric transmission or distribution services for such qualified facility,

"(D) purchases electricity from such qualified facility pursuant to a contract, or "(E) provides financing for such qualified facility.

"(2) SPECIAL RULE. — For purposes of paragraph (1)(E), any amount paid as consideration for a transfer described in subsection (f) shall not be treated as financing of a qualified facility.

"(h) TAXABLE YEAR IN WHICH CREDIT TAKEN INTO ACCOUNT. — In the case of any credit (or portion thereof) with respect to which an election is made under subsection (f), such credit shall be taken into account in the first taxable year of the eligible project partner ending with, or after, the electing taxpayer's taxable year with respect to which the credit was determined.

"(i) LIMITATIONS ON ELECTION. —

"(1) TIME FOR ELECTION. — An election under subsection (f) to transfer any portion of the credit allowed under this section shall be made not later than the due date for the return of tax for the electing taxpayer's taxable year with respect to which the credit was determined.

"(2) NO FURTHER TRANSFERS. — No election may be made under subsection (f) by a taxpayer with respect to any portion of the credit allowed under this section which has been previously transferred to such taxpayer under this paragraph.

"(3) TREATMENT OF TRANSFER UNDER PRIVATE USE RULES. — For purposes of section 141(b)(1), any benefit derived by an eligible project partner in connection with an election under this section shall not be taken into account as a private business use.

"(4) ADDITIONAL ELECTION REQUIREMENTS. —

The Secretary may prescribe such regulations as may be appropriate to carry out the purposes of this section, including —

"(A) rules for determining which persons are eligible project partners with respect to any energy property, and

"(B) requiring information to be included in an election under subsection (f) or imposing additional reporting requirements.

"(j) TERMINATION. — This section shall apply to taxable years ending before January 1, 2050.".

(d) EFFECTIVE DATE. — The amendments made by this section shall apply to taxable years beginning after December 31, 2020.

SEC. 122. ENERGY TAX CREDIT MONETIZATION.

(a) IN GENERAL. — Subchapter B of chapter 65 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

"SEC. 6431. ELECTIVE PAYMENT FOR ENERGY PROPERTY AND ELECTRICITY PRODUCED FROM CERTAIN RENEWABLE RESOURCES, ETC.

"(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 —

"(1) any portion of an energy credit which would (without regard to this section) be determined under section 48 with respect to property originally placed in service after December 31, 2019 and before January 1, 2025,

"(2) any portion of a renewable electricity production credit which would (without regard to this section) be determined under section 45 with respect to property originally placed in service after December 31, 2019 and before January 1, 2025, or

"(3) any portion of a credit carryforward to the extent attributable to section 48 or section 45 that is allowed under section 38(a)(1) (determined without regard to section 38(c)) for taxable years ending after December 31, 2019 and before January 1, 2025,

such taxpayer shall be treated as making a payment against the tax imposed by subtitle A for the taxable year equal to 85 percent of such amount.

"(b) TIMING. — The payment described in subsection (a) shall be treated as made on the later of the due date of the return of tax (determined without extensions) for such taxable year or the date on which such return is filed.

"(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 48 or the renewable electricity production credit determined under section 45 shall be reduced by the amount of the portion of such credit with respect to which the taxpayer makes such election.

"(e) SPECIAL RULES. —

"(1) In the case of a taxpayer making an election under this section, the credit subject to such an election shall be determined notwithstanding —

"(A) section 50(b)(3); and

"(B) section 50(b)(4) for an entity described in 50(b)(4)(A)(i).

"(2) In the case of a mutual or cooperative electric company described in this paragraph or an organization described in section 1381(a)(2), income received or accrued in connection with the refunding or direct payment of credit under this section shall be treated as an amount collected from members for the sole purpose of meeting losses and expenses.".

(b) CLERICAL AMENDMENT. — The table of sections for subchapter B of chapter 65 of such Code 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 taxable years ending after the date of the enactment of this Act.

* * *

SEC. 124. DEPLOYMENT OF ENERGY STORAGE THROUGHTAX CREDITS.

(a) ENERGY CREDIT FOR ENERGY STORAGE TECHNOLOGIES. —

(1) IN GENERAL. — Subclause (II) of section 48(a)(2)(A)(i) of the Internal Revenue Code of 1986 is amended by striking "paragraph (3)(A)(i)" and inserting "clause (i) or (ix) of paragraph (3)(A)".

(2) ENERGY STORAGE TECHNOLOGIES. — Subparagraph (A) of section 48(a)(3) of the Internal Revenue Code of 1986, as amended by section 121, is amended by striking "or" at the end of clause (vii), by adding "or" at the end of clause (viii), and by adding at the end the following new clause:

"(ix) equipment which receives, stores, and delivers energy using batteries, compressed air, pumped hydropower, hydrogen storage (including hydrolysis), thermal energy storage, regenerative fuel cells, flywheels, capacitors, superconducting magnets, or other technologies identified by the Secretary in consultation with the Secretary of Energy, and which has a capacity of not less than 5 kilowatt hours,".

(3) PHASEOUT OF CREDIT. — Paragraph (6) of section 48(a) of the Internal Revenue Code of 1986 is amended —

(A) by striking "ENERGY" in the heading and inserting "AND ENERGY STORAGE", and

(B) by striking "paragraph (3)(A)(i)" both places it appears and inserting "clause (i) or (ix) of paragraph (3)(A)".

(4) EFFECTIVE DATE. — The amendments made by this subsection shall apply to property placed in service after December 31, 2019.

(b) RESIDENTIAL ENERGY EFFICIENT PROPERTY CREDIT FOR BATTERY STORAGE TECHNOLOGY. —

(1) IN GENERAL. — Subsection (a) of section 25D of the Internal Revenue Code of 1986 is amended by striking "and" at the end of paragraph (4), by inserting "and" after the comma at the end of paragraph (5), and by inserting after paragraph (5) the following new paragraph:

"(6) the qualified battery storage technology expenditures,".

(2) QUALIFIED BATTERY STORAGE TECHNOLOGY EXPENDITURE. — Subsection (d) of section 25D of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

"(6) QUALIFIED BATTERY STORAGE TECHNOLOGY EXPENDITURE. — The term 'qualified battery storage technology expenditure' means an expenditure for battery storage technology which —

"(A) is installed on or 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) EFFECTIVE DATE. — The amendments made by this subsection shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2018.

* * *

SEC. 126. DEPLOYMENT OF CARBON CAPTURE UTILIZATION AND STORAGE THROUGH TAX CREDITS.

Section 45Q(d)(1) of the Internal Revenue Code of 1986 is amended by striking "January 1, 2024" and inserting "December 31, 2029".

* * *

TITLE III — INCENTIVES FOR THE ACCELERATED DEPLOYMENT
OF 100 PERCENT ZERO-EMISSION ELECTRICITY SYSTEM

SEC. 300. PURPOSE.

The purpose of this title is to provide support for any given power company to accelerate the deployment of a 100 percent zero-emission electricity generation system as early as possible before 2050.

SEC. 301. ZERO-EMISSION ELECTRICITY ACCELERATION INVESTMENT TAX CREDIT.

(a) IN GENERAL. — Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

"SEC. 45U. ZERO-EMISSION ELECTRICITY ACCELERATION INVESTMENT CREDIT.

"(a) IN GENERAL. — For purposes of section 38, in the case of a taxpayer who is a qualified zero-emission electricity taxpayer, the zero-emission electricity acceleration investment credit shall be the applicable percentage of the cost of a qualified zero-emission electricity generating unit.

"(b) DEFINITIONS. — In this section;

"(1) APPLICABLE PERCENTAGE. — The term 'applicable percentage' means —

"(A) 50 percent in the case of a qualified zero-emission electricity generating unit that begins to generate electricity before December 31, 2025,

"(B) 40 percent in the case of a qualified zero-emission electricity generating unit that begins to generate electricity before December 31, 2030, and

"(C) 30 percent in the case of a qualified zero-emission electricity generating unit that begins to generate electricity before December 31, 2037.

"(2) GENERATING UNIT. — The term 'generating unit' has the meaning given such term in section 201 of the Clean Energy Innovation and Deployment Act of 2020.

"(3) QUALIFIED ZERO-EMISSION ELECTRICITY GENERATING UNIT. — The term 'qualified zero-emission electricity generating unit' means a generating unit —

"(A) that is placed into service after the date of enactment of this section, and

"(B) the operation of which does not result in the release of carbon dioxide into the atmosphere.

"(4) QUALIFIED ZERO-EMISSION ELECTRICITY TAXPAYER. — The term 'qualified zero-emission electricity taxpayer' means, for a taxable year, a taxpayer who —

"(A) does not own a generating unit that emits carbon dioxide at any point during such taxable year, and

"(B) for such taxable year, owns non-emitting electricity generating units with a generating capacity that is equal to or greater than the annual average generating capacity of generating units owned by such taxpayer during the 5-year period ending on the date of the enactment of this section.

"(c) TRANSFERABILITY. —

"(1) IN GENERAL. — If the qualified zero-emission electricity taxpayer elects to transfer all (or any portion specified in the election) of the credit determined under this section for any taxable year with respect to any qualified facility to an eligible project partner for a specified period, then, the eligible project partner specified in such election (and not the taxpayer) shall be treated for purposes of this title with respect to such credit (or such portion thereof) as the person producing and selling the electricity to which such credit (or portion thereof) relates.

"(2) DEDUCTION FOR PAYMENTS IN CONNECTION WITH TRANSFER. — There shall be allowed as a deduction under part VI of subchapter B an amount equal to the amount paid by a taxpayer as consideration for a transfer described in paragraph (1).

"(3) ELIGIBLE PROJECT PARTNER. —

"(A) For purposes of this subsection, the term 'eligible project partner' means, with respect to any qualified facility, any person who —

"(i) has an ownership interest in such qualified facility,

"(ii) provided equipment for or services in the construction of such qualified facility,

"(iii) provides electric transmission or distribution services for such qualified facility,

"(iv) purchases electricity from such qualified facility pursuant to a contract, or

"(v) provides financing for such qualified facility.

"(B) For purposes of subparagraph (A)(v), any amount paid as consideration for a transfer described in paragraph (1) shall not be treated as financing of a qualified facility.

"(4) TAXABLE YEAR IN WHICH CREDIT TAKEN INTO ACCOUNT. — In the case of any credit (or portion thereof) with respect to which an election is made under paragraph (1), such credit shall be taken into account in the first taxable year of the eligible project partner ending with, or after, the electing taxpayer's taxable year with respect to which the credit was determined.

"(5) LIMITATIONS ON ELECTION. —

"(A) TIME FOR ELECTION. — An election under this subsection to transfer any portion of the credit allowed under this section shall be made not later than the due date for the return of tax for the electing taxpayer's taxable year with respect to which the credit was determined.

"(B) NO FURTHER TRANSFERS. — No election may be made under this subsection by a taxpayer with respect to any portion of the credit allowed under this section which has been previously transferred to such taxpayer under this paragraph.

"(C) TREATMENT OF TRANSFER UNDER PRIVATE USE RULES. — For purposes of section 141(b)(1), any benefit derived by an eligible project partner in connection with an election under this subsection shall not be taken into account as a private business use.

"(D) ADDITIONAL ELECTION REQUIREMENTS. — The Secretary may prescribe such regulations as may be appropriate to carry out the purposes of this subsection, including —

"(i) rules for determining which persons are eligible project partners with respect to any energy property, and

"(ii) requiring information to be included in an election under paragraph (1) or imposing additional reporting requirements.

"(E) QUALIFIED FACILITY. — For purposes of this section, the term 'qualified facility' has the meaning given in section 45(d).

"(d) CREDIT RECAPTURE. — If a taxpayer who has been allowed a credit under this section for any taxable year ceases, in any subsequent taxable year, to be a qualified zero-emission electricity taxpayer, such taxpayer's tax under this chapter for such subsequent taxable year shall be increased by the amount of any credit or credits previously allocated to such taxpayer under this section (and not previously recaptured under this subsection).

"(e) TERMINATION. — This section shall apply to taxable years ending before January 1, 2050.".

(b) CREDIT MADE PART OF GENERAL BUSINESS CREDIT. — Subsection (b) of section 38 of the Internal Revenue Code of 1986 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 electricity acceleration investment credit determined under section 45U.".

(c) CLERICAL AMENDMENT. — The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item:

"Sec. 45U. Zero-emission electricity acceleration investment credit.".

(d) EFFECTIVE DATE. — The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.