HR 3291 — Certainty for Our Energy Future Act

(a) Amount of credit (1) In general For purposes of section 38, the clean electricity production credit for any taxable year is an amount equal to the product of— (A) the kilowatt hours of electricity— (i) produced by the taxpayer at a qualified facility, and (ii) (I) sold by the taxpayer to an unrelated person during the taxable year, or (II) in the case of a qualified facility which is equipped with a metering device which is owned and operated by an unrelated person, sold, consumed, or stored by the taxpayer during the taxable year, multiplied by (B) the applicable amount with respect to such qualified facility. (2) Applicable amount (A) Base amount Subject to subsection (g)(7), in the case of any qualified facility which is not described in clause (i) or (ii) of subparagraph (B) and does not satisfy the requirements described in clause (iii) of such subparagraph, the applicable amount shall be 0.3 cents. (B) Alternative amount Subject to subsection (g)(7), in the case of any qualified facility— (i) with a maximum net output of less than 1 megawatt (as measured in alternating current), (ii) the construction of which begins prior to the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (9) and (10) of subsection (g), or (iii) which— (I) satisfies the requirements under paragraph (9) of subsection (g), and (II) with respect to the construction of such facility, satisfies the requirements under paragraph (10) of subsection (g), the applicable amount shall be 1.5 cents. (b) Qualified facility (1) In general (A) Definition Subject to subparagraphs (B), (C), and (D), the term “qualified facility” means a facility owned by the taxpayer— (i) which is used for the generation of electricity, (ii) which is placed in service after December 31, 2024, and (iii) for which the greenhouse gas emissions rate (as determined under paragraph (2)) is not greater than zero. (B) 10-year production credit For purposes of this section, a facility shall only be treated as a qualified facility during the 10-year period beginning on the date the facility was originally placed in service. (C) Expansion of facility; incremental production The term “qualified facility” shall include either of the following in connection with a facility described in subparagraph (A) (without regard to clause (ii) of such subparagraph) which was placed in service before January 1, 2025, but only to the extent of the increased amount of electricity produced at the facility by reason of the following: (i) A new unit which is placed in service after December 31, 2024. (ii) Any additions of capacity which are placed in service after December 31, 2024. (D) Determination of capacity For purposes of subparagraph (C), additions of capacity of a facility shall be determined in any reasonable manner, including based on— (i) determinations by, or reports to, the Federal Energy Regulatory Commission (including interconnection agreements), the Nuclear Regulatory Commission, or any similar entity, reflecting additions of capacity, (ii) determinations or reports reflecting additions of capacity made by an independent professional engineer, (iii) reports to, or issued by, regional transmission organizations or independent system operators reflecting additions of capacity, or (iv) any other method or manner provided by the Secretary. (E)  1 Coordination with other credits The term “qualified facility” shall not include any facility for which a credit determined under section 45, 45J, 45Q, 45U, 48, 48A, or 48E is allowed under section 38 for the taxable year or any prior taxable year. (E)  1 Material assistance from prohibited foreign entities The term “qualified facility” shall not include any facility for which construction begins after December 31, 2025, if the construction of such facility includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)). (2) Greenhouse gas emissions rate (A) ...

(a) Investment credit for qualified property (1) In general For purposes of section 46, the clean electricity investment credit for any taxable year is an amount equal to the applicable percentage of the qualified investment for such taxable year with respect to— (A) any qualified facility, and (B) any energy storage technology. (2) Applicable percentage (A) Qualified facilities Subject to paragraph (3)— (i) Base rate In the case of any qualified facility which is not described in subclause (I) or (II) of clause (ii) and does not satisfy the requirements described in subclause (III) of such clause, the applicable percentage shall be 6 percent. (ii) Alternative rate In the case of any qualified facility— (I) with a maximum net output of less than 1 megawatt (as measured in alternating current), (II) the construction of which begins prior to the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (3) and (4) of subsection (d), or (III) which— (aa) satisfies the requirements of subsection (d)(3), and (bb) with respect to the construction of such facility, satisfies the requirements of subsection (d)(4),  the applicable percentage shall be 30 percent. (B) Energy storage technology Subject to paragraph (3)— (i) Base rate In the case of any energy storage technology which is not described in subclause (I) or (II) of clause (ii) and does not satisfy the requirements described in subclause (III) of such clause, the applicable percentage shall be 6 percent. (ii) Alternative rate In the case of any energy storage technology— (I) with a capacity of less than 1 megawatt, (II) the construction of which begins prior to the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (3) and (4) of subsection (d), or (III) which— (aa) satisfies the requirements of subsection (d)(3), and (bb) with respect to the construction of such property, satisfies the requirements of subsection (d)(4),  the applicable percentage shall be 30 percent. (3) Increase in credit rate in certain cases (A) Energy communities (i) In general In the case of any qualified investment with respect to a qualified facility or with respect to energy storage technology which is placed in service within an energy community (as defined in section 45(b)(11)(B), as applied without regard to clause (iv) thereof), for purposes of applying paragraph (2) with respect to such property or investment, the applicable percentage shall be increased by the applicable credit rate increase. (ii) Applicable credit rate increase For purposes of clause (i), the applicable credit rate increase shall be an amount equal to— (I) in the case of any qualified investment with respect to a qualified facility described in paragraph (2)(A)(i) or with respect to energy storage technology described in paragraph (2)(B)(i), 2 percentage points, and (II) in the case of any qualified investment with respect to a qualified facility described in paragraph (2)(A)(ii) or with respect to energy storage technology described in paragraph (2)(B)(ii), 10 percentage points. (B) Domestic content Rules similar to the rules of section 48(a)(12) shall apply, except that, for purposes of subparagraph (B) of such section and the application of rules similar to the rules of section 45(b)(9)(B), the adjusted percentage (as determined under section 45(b)(9)(C)) shall be determined as follows: (i) In the case of any qualified investment with respect to any qualified facility or energy storage technology the construction of which begins before June 16, 2025, 40 percent (or, in the case of a qualified facility which is an offshore wind facility, 20 percent). (ii) In the case of any qualified investment with respect to any qualified facility or energy storage technology the construction of which begins on or after June 16, 2025, and before January 1, 2026, 45 percent (or, in the case of a qualified facility which is an offshore ...