IRA_2022_1660136441.0211065.txt

The Senate has passed a bill that would amend the Internal Revenue Code to provide for corporate tax reform. The bill would impose a new corporate alternative minimum tax, and would exempt certain corporations from the tax. The bill would also allow for a corporate AMT foreign tax credit.

This clause amends the tax code to include a new section (56A) on adjusted financial statement income. Adjusted financial statement income is defined as the net income or loss of a corporation set forth on the corporation's applicable financial statement for the taxable year, adjusted as provided in this section. The section goes on to specify what an applicable financial statement is and how to make adjustments for consolidated financial statements and for dividends and other amounts. If a taxpayer is a shareholder of one or more controlled foreign corporations, the taxpayer's adjusted financial statement income with respect to such controlled foreign corporation shall be adjusted to also take into account the taxpayer's pro rata share of items taken into account in computing the corporation's net income or loss.

This section of the code deals with the taxation of income from mortgage servicing contracts. It stipulates that such income may not be included in gross income under any other provision of the code until it is actually received. Additionally, the Secretary of the Treasury is authorized to promulgate regulations to prevent the avoidance of taxes on amounts not representing reasonable compensation for services rendered under the contract. Finally, this section provides for special adjustments to be made to income from defined benefit pension plans for tax purposes.

The Tax Cuts and Jobs Act amends the tax code to provide a credit for corporations that have paid or accrued income, war profits, and excess profits taxes to any foreign country or possession of the United States. The credit is available for taxable years beginning after December 31, 2017, and before January 1, 2026. The credit is equal to the lesser of the amount of taxes paid or accrued, or the product of the amount of the adjustment under section 56A(c)(3) and the percentage specified in section 55(b)(2)(A)(i). The credit is carryoverable for five succeeding taxable years. In addition, the excise tax on repurchase of corporate stock under the new chapter 37 of subtitle D of the Internal Revenue Code shall be 1 percent of the fair market value of any stock of the corporation which is repurchased by such corporation during the taxable year. This section of the bill deals with the treatment of foreign corporations for the purposes of the repurchase of stock by a covered corporation.

This section amends section 10 275(a) of the Internal Revenue Code to insert 37, before 41. It also amends the table of chapters for subtitle D by inserting a new item after the item relating to chapter 36, to create chapter 37, which deals with the repurchase of corporate stock. This section applies to repurchases of stock after December 31, 2022. The Social Security Act is amended by adding a new part, the Drug Price Negotiation Program, which requires the Secretary to negotiate and, if necessary, renegotiate maximum fair prices for selected drugs with manufacturers. The program also requires the publication of a list of selected drugs and the carrying out of administrative duties and compliance monitoring.

This section of the bill establishes a new program to negotiate drug prices on behalf of Medicare Part B and D enrollees, and sets the maximum fair price for a selected drug at the price negotiated by the program. The program will be implemented in 2026.

This section of the bill establishes exceptions for small biotech drugs from the definition of "negotiation-eligible drug." A qualifying single source drug is not considered a negotiation-eligible drug if it meets either of the following criteria: (1) for Part D drugs, the total expenditures for the qualifying single source drug under Part D of title XVIII are equal to or less than 1 percent of the total expenditures under such Part D for all covered Part D drugs during the year; or (2) for Part B drugs, the total expenditures for the qualifying single source drug under Part B of title XVIII are equal to or less than 1 percent of the total expenditures under such Part B for all covered Part B drugs during the year.

This section of the bill requires manufacturers to provide access to maximum fair prices for drugs to certain eligible individuals and entities during the price applicability period. The manufacturer of a selected drug will provide access to the maximum fair price to eligible individuals and hospitals, physicians, and other providers of services and suppliers. The manufacturer will also submit information to the Secretary on the non-Federal average manufacturer price for the drug and information that the Secretary requires to carry out the negotiation process.

This section of the bill deals with the payment amount for covered drugs under Medicare Part D. For drugs covered under Part D, the payment amount will be the sum of the plan-specific enrollment weighted amounts for each prescription drug plan or MAPD plan. For drugs covered under Part B, the payment amount will be the amount specified in section 1847A(b)(4) of the Social Security Act.

This bill defines the terms "extended-monopoly drug" and "long-monopoly drug" for purposes of the drug pricing provisions in this bill. An extended-monopoly drug is a selected drug for which at least 12, but fewer than 16, years have elapsed since its approval or licensure. A long-monopoly drug is a selected drug for which at least 16 years have elapsed since its approval or licensure. Vaccines are excluded from both definitions. The average manufacturer price for a selected drug is determined by the average of the non-Federal manufacturer prices for the drug for the four calendar quarters of the year involved. For a qualifying single source drug with an initial price applicability year of 2029 or 2030, the maximum fair price negotiated under this section for such drug for such initial price applicability year may not be less than 66 percent of the average non-Federal average manufacturer price for such drug for 2021. The Secretary of Health and Human Services must select a drug for negotiation in order to secure the best possible price for the drug, taking into account the following factors: the manufacturer's research and development costs, the current unit costs of production and distribution, prior Federal financial support for novel therapeutic discovery and development, data on pending and approved patent applications and exclusivities, market data and revenue and sales volume data. In addition, the Secretary must consider evidence about alternative treatments, including the extent to which the drug

This section of the bill establishes a process for the renegotiation of maximum fair prices for certain drugs. The process is to be consistent with the methodology and process established under subsection (b) and in accordance with subsections (c), (d), and (e). A drug for which the Secretary makes a determination described in section 1192(c)(1) before or during the period of renegotiation shall not be subject to the renegotiation process.

This section of the Social Security Act establishes civil monetary penalties for drug manufacturers who do not provide access to a maximum fair price for a selected drug to eligible individuals, or who overcharge for drugs covered by Medicaid. The penalties are $10,000 per unit of the overpriced drug, $1,000,000 per day for violating terms of an agreement with Medicaid, and $100,000,000 for each item of false information provided to Medicaid. The bill also limits administrative and judicial review of certain determinations related to drug pricing, and applies the maximum fair price to payments under Medicare and Medicaid.

The Secretary of Health and Human Services may delay the inclusion of a biosimilar biological product on the list of extended-monopoly drugs if the manufacturer requests a delay and it is determined that there is a high likelihood that the biosimilar product will be licensed and marketed before the selected drug's expiration date. The manufacturer must submit to the Secretary of Health and Human Services information and documents necessary for the Secretary to make determinations under this subsection, as specified by the Secretary and including, to the extent available, items described in subclause (III).

This section of the bill delays the inclusion of a biosimilar biological product on the list of selected drugs published under subsection (a) until the manufacturer of such biosimilar biological product pays a rebate under paragraph (4) with respect to the year for which such manufacturer would have provided access to a maximum fair price for such biological product.

The Secretary of Health and Human Services is authorized to delay the inclusion of a biological product on the list of selected drugs published under subsection (a) for no more than two years. In no case may the Secretary delay the inclusion of a biological product on the list published under subsection (a) if more than one year has elapsed since the biosimilar biological product has been licensed under section 351(k) of the Public Health Service Act and marketing has not commenced for such biosimilar biological product.

This section of the bill establishes the maximum fair price for a biological product and the amount of the rebate for such product. The fair price is increased as described in section 1195(b)(1)(A), and the number of units of the product is increased as well. If the product qualifies as a long-monopoly drug, the amount of the rebate is increased by 65 percent.

This section of the bill deals with rebates for Part B drugs. Part B rebatable drugs are defined as single-source drugs or biologicals (including biosimilar products) for which payment is made under Part B, with the exception of vaccines or drugs/biologicals for which the average total allowed charges per year per individual user is less than $100 (as adjusted for inflation). For each Part B rebatable drug, manufacturers must provide the Secretary with information on the drug's price and market share, and must pay a rebate equal to the difference between the price of the drug and its benchmark price, as specified in the bill. There is a transition rule for reporting in 2023 and 2024, and the Secretary is authorized to delay the timeframe for reporting until 2025.

This section of the bill establishes the payment amount for Part B rebatable drugs for each calendar quarter. The payment amount is determined by the inflation-adjusted payment amount for the drug in the payment amount benchmark quarter (July 1, 2021), increased by the percentage by which the rebate period CPIU (as defined in subparagraph (F)) for the calendar quarter exceeds the benchmark period CPIU (as defined in subparagraph (E)). The Secretary may reduce or waive the amount under subparagraph (A) with respect to a part B rebatable drug and a calendar quarter in the case of a part B rebatable drug that is described as currently in shortage on the shortage list.

This section of the Social Security Act requires drug manufacturers to provide rebates to the government for drugs that have prices that increase faster than inflation. The rebates must be equal to the amount specified in subsection (b) for each dosage form and strength of the drug. This section applies to drugs covered under Part D of the Social Security Act.

This section of the bill reduces or waives the manufacturer price of a Part D rebatable drug for a period of time if the drug is in short supply or if there is a severe supply chain disruption. The annual manufacturer price is determined by the average manufacturer price for each dosage form and strength of the drug.

This section of the bill requires drug manufacturers to provide rebates to the Medicare program for certain drugs dispensed to Medicare beneficiaries. The rebates are based on the difference between the drug's price and a benchmark price. If a manufacturer does not provide the required rebate, they may be subject to a civil money penalty.

This section of the bill redesignates items in the matter preceding item (aa) as items (I) and (II), respectively, and moves the margin of each such redesignated item 2 ems to the right. It also redesignates clause (i)(I) as clause (i)(I)(aa) and adds a new sentence at the end of clause (ii). For 2024 and each succeeding year, the dollar amount specified in clause (i)(I)(aa) will be $0. The Social Security Act is amended to include a new section on prescription drug costs. For years 2025 and beyond, the amount of allowable reinsurance costs will be increased by the specified amount for the 12-month period beginning with October of 2023. This amount will be increased by the percentage increase in the Consumer Price Index for all urban consumers for the 12-month period beginning with October of the previous period. Any dollar amount specified that is not a multiple of $10 will be rounded to the nearest multiple of $10.

The purpose of this section is to establish a program to provide discounts on prescription drugs for certain Medicare beneficiaries. The discounts will be applied before any coverage or financial assistance under other health benefit plans or programs that provide coverage or financial assistance for the purchase or provision of prescription drug coverage on behalf of applicable beneficiaries as specified by the Secretary. Under the program, manufacturers will agree to provide the discounts and the Secretary will make payments to the manufacturers for the difference between the negotiated price and the applicable drug's retail price. The manufacturer must provide discounted prices for applicable drugs of the manufacturer that are dispensed to applicable beneficiaries on or after January 1, 2025. The manufacturer must also collect and have available appropriate data to ensure that it can demonstrate to the Secretary compliance with the requirements under the program. The Secretary of Health and Human Services is responsible for administering the discount program for prescription drugs, including determining eligibility and establishing procedures. Agreements with manufacturers are automatically renewed for at least one year unless terminated by the Secretary for violation of the agreement or other good cause, or by the manufacturer for any reason. Termination by the manufacturer is effective at the end of the plan year.

This section of the Affordable Care Act requires drug manufacturers to provide a discount on drugs to low-income seniors who fall into the "coverage gap." The discount is phased in over time, starting at 50% in 2011 and reaching 75% by 2020. In 2021, the discount will be based on the "specified LIS percent" of the negotiated price of the drug.

This section of the Revenue Code of 1986 defines "drugs" for purposes of the Medicare Part D prescription drug benefit and establishes a percentage threshold for specified small manufacturers. The threshold is used to determine whether a manufacturer's drugs will be subject to price controls under the benefit.

This section of the bill establishes premium stabilization for prescription drug plans under Medicare from 2024-2029. The base beneficiary premium for a given year will be equal to the lesser of (1) the base beneficiary premium from the previous year increased by 6 percent, or (2) the base beneficiary premium that would have applied if this section had not been enacted. The base beneficiary premium for 2030 and subsequent years shall be computed under paragraph (2) or (8) of subsection (a) of the Social Security Act (42 U.S.C. 1395w113(a)), as amended by this paragraph, without regard to this paragraph. The percent specified under this paragraph for 2030 and each subsequent year is the percent that the Secretary determines is necessary to ensure that the base beneficiary premium computed under paragraph (2) of such subsection does not exceed the base beneficiary premium computed under such paragraph for 2019.

The requirements of the Patient Protection and Affordable Care Act are amended to increase the initial coverage limit and out-of-pocket threshold for 2025 and subsequent years, and to eliminate the annual out-of-pocket threshold for 2024 and subsequent years. The Social Security Act is amended to provide discounts for prescription drugs dispensed under Medicare Part D for years 2011 through 2025, and to allow for a maximum monthly cap on cost-sharing payments under prescription drug plans and Medicare Advantage plans. This section allows enrollees in a prescription drug plan or an MA plan to elect to pay their cost-sharing in monthly installments, capped at a maximum monthly amount.

This bill requires prescription drug plans to offer a maximum monthly cap on cost-sharing payments for enrollees who elect to receive coverage under the plan. The maximum monthly cap may be applied to any combination of covered Part D drugs. The bill also appropriates $10 million for the Centers for Medicare and Medicaid Services to carry out the provisions of the bill. Finally, it requires Medicare Part D plans to cover adult vaccines recommended by the Advisory Committee on Immunization Practices.

The bill amends the Patient Protection and Affordable Care Act to treat cost-sharing for covered insulin products as meeting the deductible and out-of-pocket requirements for plan years 2023 and 2024. For plan years 2025 and subsequent plan years, cost-sharing for covered insulin products is only required prior to an individual reaching the out-of-pocket threshold. The copayment amount for such a drug is $35 per month during plan years 2023 through 2025, and the lesser of $35 or 25% of the maximum fair price or negotiated price for the covered insulin product during plan year 2026 and each subsequent plan year.

This bill amends the Social Security Act to require that, for plan year 2023 and subsequent plan years, the copayment amount for a covered insulin product dispensed to a low-income individual may not exceed the applicable copayment amount for the product under the prescription drug plan or Medicare Advantage plan in which the individual is enrolled. The bill also limits the monthly coinsurance and adjusts the supplier payment under Medicare Part B for insulin furnished through durable medical equipment. Additionally, the bill extends and modifies the credit for electricity produced from certain renewable resources.

The Building and Renovation Tax Relief Act imposes a penalty on taxpayers who fail to meet the apprenticeship requirements for construction of qualified facilities. The bill also provides a tax credit for up to 15% of the cost of constructing certain qualified energy efficient buildings, with the credit amount depending on when construction begins. The bill also requires that any taxpayer who employs 4 or more individuals to perform construction work on a qualified facility must employ 1 or more qualified apprentices. If the Secretary determines that any failure is due to intentional disregard of the requirements, the credit shall be applied by substituting $500 for $50. The Secretary of Energy shall issue regulations or other guidance as necessary to carry out the purposes of the Domestic Content Bonus Credit, including recordkeeping and information reporting requirements. The Domestic Content Bonus Credit is a 10% increase to the tax credit for qualified facilities that use components produced in the United States.

This section amends section 48(a) of the Internal Revenue Code to phase out the credit for certain energy property and to reduce the credit. The credit is extended to facilities placed in service after December 31, 2025. The credit is further extended for certain energy property.

The Energy Policy Act of 2005 is amended to include microgrid controllers and qualified biogas property as eligible technologies for the energy investment tax credit. Energy storage technology is defined as property that receives, stores, and delivers energy for conversion to electricity, with a nameplate capacity of not less than 5 kilowatt hours. Thermal energy storage property is also included. Qualified biogas property means property comprising a system which converts biomass into a gas which consists of not less than 52 percent methane by volume, or is concentrated by such system into a gas which consists of not less than 52 percent methane, and captures such gas for sale or productive use. A microgrid controller is defined as equipment part of a qualified microgrid, which is designed and used to monitor and control the energy resources and loads on such microgrid.

This section of the bill deals with the tax credit for energy projects. A project is eligible for the credit if it meets certain requirements, including being a project with a maximum net output of less than 1 megawatt of electrical or thermal energy, or a project that satisfies the requirements of paragraphs (10)(A) and (11). The energy project tax credit is increased by 2 percentage points for projects that use domestic content, as determined by rules similar to the rules for the regular energy project tax credit.

This section of the Energy Policy Act of 2005 provides tax credits for solar and wind energy facilities placed in service in connection with low-income communities. The credit is increased by 2 percentage points for solar projects and 10 percentage points for wind projects. The amendments apply to property placed in service after December 31, 2021.

This section provides a tax credit for certain carbon capture facilities. To qualify, the facility must begin construction before 2033 and must capture a certain amount of carbon oxide each year. The credit is available for units that are originally placed in service more than 1 year prior to the date on which construction of the carbon capture equipment begins, and on or after the date which is 3 years prior to the date on which construction of such equipment begins. The credit is also available for units that are originally placed in service more than 3 years prior to the date on which construction of the carbon capture equipment begins, but only for the 3 years with the highest annual carbon oxide production during the 12-year period preceding the date on which construction of such equipment begins. The credit for qualified facilities and carbon capture equipment is increased from the original amount to five times the original amount if the taxpayer satisfies the requirements under paragraphs (3)(A) and (4).

The Tax Cuts and Jobs Act amends the Internal Revenue Code to create a new section 45Q, which provides a tax credit for carbon capture and sequestration. The credit is available for 12 years and there are several requirements that must be met in order to qualify, including wage, apprenticeship, and recordkeeping requirements. The amendments made by this section will apply to facilities or equipment placed in service after December 31, 2022. The Zero-Emission Nuclear Power Production Credit is a credit for taxpayers who produce electricity using nuclear energy. The credit is available for nuclear facilities that are placed in service before the date of enactment of this section. The Nuclear Energy Production Tax Credit is a tax credit for taxpayers who produce electricity from nuclear power facilities. The credit is available for facilities that come into operation after December 31, 2020.

This section extends the incentives for biodiesel, renewable diesel and alternative fuels through 2024. It also extends the tax credit for qualified second generation biofuel through 2025. In addition, this section establishes a sustainable aviation fuel credit and a tax credit for the production of sustainable aviation fuel.

This section of the Clean Air Act provides tax credits for the production of sustainable aviation fuel and clean hydrogen. The credit for sustainable aviation fuel is $1.25 per gallon of fuel used in a qualified mixture, with a supplementary amount for each type of fuel. The credit for clean hydrogen is $0.60 per kilogram of qualified clean hydrogen produced, multiplied by the applicable percentage. The applicable percentage is determined according to the lifecycle greenhouse gas emissions rate.

The clean hydrogen production credit is a tax credit for businesses that produce qualified clean hydrogen. The credit is equal to the lesser of $5,000 or 30% of the cost of the equipment used to produce the hydrogen. The credit is reduced for tax-exempt bonds. The amendments in this section apply to hydrogen produced after December 31, 2022, and to electricity produced after that date if it is used to produce clean hydrogen. The credit for electricity production from renewable resources is allowed if the electricity is used to produce clean hydrogen. Clean hydrogen production facilities may be treated as energy property.

The Credit for Hydrogen Production Act of 2020 amends the Internal Revenue Code to provide a credit for the production of hydrogen. The credit is available for property placed in service after December 31, 2022, and is recaptured if production falls below expectations. The credit is scheduled to terminate on December 31, 2023. The Tax Cuts and Jobs Act extends, increases, and modifies the nonbusiness energy property credit. The credit is extended through 2032 and the annual limitation is increased to $1,200. The credit is also expanded to include qualified energy efficiency improvements and residential energy property expenditures. The Modification of Residential Energy Property Expenditures allows taxpayers to deduct the cost of qualified energy property, including labor costs, that is installed on their residence. Qualified energy property includes certain electric and natural gas heat pumps, central air conditioners, water heaters, furnaces, and boilers.

The Energy Audit tax credit allows taxpayers to receive a credit of up to $150 for the cost of a home energy audit. The audit must identify the most significant and cost-effective energy efficiency improvements for the dwelling, and include an estimate of the energy and cost savings with respect to each improvement. The credit is subject to the requirements specified by the Secretary in regulations or other guidance. The "product identification number requirement" stipulates that, in order to be eligible for the tax credit under section 25C of the Internal Revenue Code, an item of specified property must be produced by a qualified manufacturer and the taxpayer must include the qualified product identification number of such item on their tax return. The Energy Improvement and Extension Act of 2008 extends and modifies the energy efficient home improvement credit. The credit is now available for an additional two years, through 2021, for qualifying energy efficient property placed in service. The credit is also expanded to include certain qualified energy property placed in service after December 31, 2021. Finally, the Act requires that taxpayers include a product identification number when claiming the credit. The Residential Clean Energy Credit is extended through 2034 and expanded to include battery storage technology expenditures.

The Energy Efficient Commercial Buildings Deduction is being amended to increase the maximum deduction from $0.50 to $1.00 per square foot, and to make the deduction only available for buildings certified to reduce energy and power costs by more than 25%.

The Energy Efficiency Retrofit Tax Credit allows a tax credit for installing energy efficient systems in qualified buildings. The credit is available for buildings that are at least 5 years old and meet certain energy efficiency requirements. The Energy Efficient Homes Credit is extended through 2032 and the credit amount is increased for certain energy efficient dwelling units. The Clean Vehicle Credit is a tax credit for vehicles that meet certain fuel efficiency standards.

This section of the bill establishes a tax credit for the purchase of a new clean vehicle. The credit is available for vehicles purchased after December 31, 2017 and is capped at $7,500. The credit is phased out for each manufacturer after 200,000 qualifying vehicles are sold. To qualify for the credit, a certain percentage of the value of the critical minerals contained in the battery must be extracted or processed in the United States or in a country with which the United States has a free trade agreement, or recycled in North America. The applicable percentage increases each year from 40 percent in 2024 to 80 percent in 2026.

The Clean Vehicle Credit is a tax credit for certain vehicles with clean burning engines. The credit is available for vehicles purchased after January 1, 2017 and before January 1, 2032. The credit is capped at $7,500 per vehicle.

This section of the bill amends the Internal Revenue Code to allow for tax credits for the purchase of certain types of vehicles. The credit for previously-owned clean vehicles is equal to the lesser of $2,500 or 10 percent of the cost of the vehicle. The credit for qualified commercial clean vehicles is equal to the lesser of 15 percent of the basis of the vehicle or the incremental cost of the vehicle, up to a maximum of $7,500 for vehicles with a gross vehicle weight rating of less than 14,000 pounds or $40,000 for other vehicles. The credit is available for vehicles acquired after December 31, 2022.

The Energy Security Act extends the Alternative Fuel Tax Credit through 2032 and increases the credit limit from $30,000 to $100,000. It also includes bidirectional charging equipment as qualified alternative fuel vehicle refueling property. The amount of the tax credit for qualified alternative fuel vehicle refueling property is increased to five times the original amount, if the project meets certain requirements. These requirements include that the project must begin construction before a specified date, and that all laborers and mechanics employed on the project must be paid prevailing wages. The rules in this section apply to property placed in service after December 31, 2022. The purpose of this section is to provide for investment in clean energy manufacturing and construction projects.

This section of the tax code provides for a tax credit for certain heavy duty electric or fuel cell vehicles, hybrid vehicles, and associated charging or refueling infrastructure. It also provides for a tax credit for re-equipping an industrial or manufacturing facility with equipment designed to reduce greenhouse gas emissions.

The Energy Improvement and Extension Act of 2008 provides for a tax credit for certain renewable energy components, including wind energy components, inverters, and battery cells and modules. The credit is phased out after December 31, 2029. The Credit for Renewable Energy Investments Act of 2009 allows a credit for solar energy investments. The credit is available for inverters, central inverters, commercial inverters, distributed wind inverters, and microinverters. The Solar Energy Component Tax Credit is a tax credit for solar energy components used in residential or commercial solar energy systems. The credit is for up to 30% of the cost of the solar energy components, and is capped at $2,000.

This passage defines the terms "solar module," "solar grade polysilicon," and "solar tracker," and lists the six critical minerals necessary for the production of batteries. It also allows for the import of certain metals and alloys, provided that they are purified to a minimum purity of 99 percent by mass.

This section of the bill establishes that certain minerals are eligible for the tax credit, provided that they are purified to a minimum purity of 99 percent. The minerals include arsenic, bismuth, erbium, gallium, hafnium, holmium, iridium, lanthanum, lutetium, magnesium, palladium, platinum, praseodymium, rhodium, rubidium, ruthenium, samarium, scandium, tantalum, terbium, thulium, titanium, ytterbium, zinc, and zirconium. The section also includes special rules for related persons and for sales of integrated components. This section amends the Internal Revenue Code to extend and adjust the hazardous substance Superfund financing rate, and to authorize advances under the Superfund. It also incentivizes clean electricity production and clean transportation. The clean electricity production credit is a tax credit for any taxable year equal to the product of the kilowatt hours of electricity produced by the taxpayer at a qualified facility and sold by the taxpayer to an unrelated person during the taxable year, multiplied by the applicable amount with respect to such qualified facility. The applicable amount is 0.3 cents per kilowatt hour for qualified facilities that are not described in clause (i) or (ii) of subparagraph (B) and do not satisfy the requirements described in clause (iii) of such subparagraph, and 1.5 cents per kilowatt hour for qualified facilities described in clause (i), (ii), or (iii) of subparagraph (B). The qualified facility credit is a credit for facilities used to generate electricity that are placed in service after December 31, 2024, and have a greenhouse gas emissions rate that does not exceed zero. The credit is only available for the 10-year period beginning on the date the facility was originally placed in service. The Clean Air Act Amendments of 2018 establish emissions rates for facilities producing electricity, to be used for purposes of the tax credit for carbon capture and sequestration. The emissions rates are to be published

The "Greenhouse Gas Emission Reduction for New and Existing Power Plants" rule requires power plants to reduce their greenhouse gas emissions by a certain percentage below a baseline emissions rate. The rule applies to new, modified, and existing power plants and sets different targets for each category. For new power plants, the target is a greenhouse gas emission rate that is no more than 1,000 pounds of CO2e per megawatt-hour (MWh) of electricity produced. For existing coal-fired power plants, the target is a reduction of at least 32 percent below the baseline emissions rate. The rule also requires power plants to meet an interim emissions reduction target of 30 percent below the baseline by 2030. This section of the bill allows for qualified facilities to receive clean electricity production credits, provided that the electricity is produced within the United States. Additionally, any combined heat and power system property within the facility will also be taken into account for the purposes of determining the greenhouse gas emissions rate. The credit for electricity production is apportioned among owners of the qualified facility in proportion to their ownership interests in the gross sales from the facility. If more than one person has an ownership interest in the facility, the production from the facility is allocated among such persons in proportion to their respective ownership interests.

This section of the bill deals with the domestic content bonus credit for qualified facilities. The credit is increased by 10 percent if the taxpayer certifies that any steel, iron, or manufactured product used in the construction of the facility was produced in the United States. This passage explains how to determine if a product has been manufactured in the United States. If the construction of the facility where the product was made begins before January 1, 2025, then 40 percent of the total costs of all manufactured products of that facility must be attributable to products mined, produced, or manufactured in the United States. If the construction of the facility where the product was made begins after December 31, 2024 and before January 1, 2026, then 45 percent of the total costs of all manufactured products of that facility must be attributable to products mined, produced, or manufactured in the United States. If the construction of the facility where the product was made begins after December 31, 2025 and before January 1, 2027, then 50 percent of the total costs of all manufactured products of that facility must be attributable to products mined, produced, or manufactured in the United States. If the construction of the facility where the product was made begins after December 31, 2026, then 55 percent of the total costs of all manufactured products of that facility must be attributable to products mined, produced, or manufactured in the United States.

The Clean Electricity Investment Credit is a tax credit for qualified investments in clean electricity facilities and energy storage technologies. The credit is equal to 6 percent of the investment for qualified facilities and energy storage technologies. The credit is available for facilities placed in service after December 31, 2024.

This section allows for a credit with respect to qualified investments in certain energy property. The credit is equal to the lesser of $50,000 or 30% of the basis of the property. The credit is phased out for property placed in service after December 31, 2016.

The Clean Electricity Investment Credit is a tax credit available for qualified facilities and property placed in service after December 31, 2024. The credit is equal to 30% of the basis of the qualified property. This section amends the Internal Revenue Code to provide a tax credit for the production of clean transportation fuels. The credit is equal to the applicable amount per gallon (or gallon equivalent) of fuel produced, multiplied by the emissions factor for the fuel. The applicable amount is 20 cents per gallon for most fuels, but is $1.00 per gallon for fuels produced at qualified facilities that meet certain requirements. For sustainable aviation fuels, the credit is increased to 50 cents per gallon.

This section of the code establishes the emissions rates for transportation fuels, expressed in terms of kilograms of CO2e per mmBTU. The rates are to be based on the most recent determinations under the Greenhouse gases, Regulated Emissions, and Energy use in Transportation model developed by Argonne National Laboratory, or a successor model. For aviation fuels, the rates are to be based on the most recent Carbon Offsetting and Reduction Scheme for International Aviation adopted by the International Civil Aviation Organization with the agreement of the United States, or a similar methodology. The rates may be rounded to the nearest multiple of 5 kilograms of CO2e per mmBTU, except in the case of an emissions rate that is between 2.5 and -2.5 kilograms of CO2e per mmBTU, which may be rounded to zero. A taxpayer producing fuel for transportation may file a petition with the Secretary for determination of the emissions rate with respect to such fuel. The emissions rate will be adjusted for inflation starting in 2024. This section also deals with the clean fuel production credit, which is a credit that is available for producing transportation fuels with low emissions. The credit is available for monoglycerides, diglycerides, triglycerides, free fatty acids, and fatty acid esters. To be eligible for the credit, the taxpayer must be registered as a producer of clean fuel at the time of production and must provide certification from an unrelated party demonstrating compliance with requirements similar to those established under the Carbon Offsetting and Reduction Scheme for International Aviation. The fuel must also be produced in the United States.

This section provides a tax credit for certain transportation fuels and allows taxpayers to make an election to treat a credit as a payment against the tax imposed by subtitle A. The credit is allowed for fuel sold after December 31, 2027. The term applicable credit means the credit for producing electricity from certain renewable resources, the credit for energy property, and the credit for refined coal production property. The section lists 12 credits that are allowed to be carried over to future tax years, including the renewable electricity production credit, the credit for carbon oxide sequestration, the zero-emission nuclear power production credit, and the credit for production of clean hydrogen. If the taxpayer makes the election, they will be treated as an applicable entity for purposes of this section for the taxable year, but only with respect to the credit for which they made the election.

The Energy Policy Act of 2005 created a tax credit for businesses that make investments in eligible components for use in a trade or business. The credit is equal to 30% of the cost of the investment, and the taxpayer may elect to apply the credit against the tax liability for the taxable year in which the investment is made, or for any of the four succeeding taxable years. The taxpayer may also revoke the election at any time. The bill also allows businesses to elect to claim the renewable electricity production credit or the carbon capture equipment credit in lieu of the business energy investment tax credit.

This bill deals with the transfer of tax credits from one taxpayer to another. The bill allows for the transfer of tax credits related to certain facilities or property from an eligible taxpayer to a transferee taxpayer. The transferee taxpayer will be treated as the taxpayer for purposes of this title with respect to such credit. The bill also provides that any payments made by the transferee taxpayer to the eligible taxpayer as consideration for the transfer of the credit will be required to be paid in cash, will not be includible in gross income of the eligible taxpayer, and will not be deductible by the transferee taxpayer. Finally, the bill provides that in the case of any eligible credit determined with respect to any facility or property held directly by a partnership or S corporation, if such partnership or S corporation makes an election under this section with respect to such credit, any amount received as consideration for a transfer described in such subsection shall be treated as tax exempt income for purposes of sections 705 and 1366, and a partners distributive share of such tax exempt income shall be based on such partners distributive share of the otherwise eligible credit for each taxable year.

The Tax Cuts and Jobs Act allows for the transfer of certain tax credits relating to clean energy production to eligible taxpayers. The eligible credits include the clean fuel production credit, the energy credit, the qualifying advanced energy project credit, and the clean electricity investment credit. The bill also amends the Internal Revenue Code to allow for a three-year carryback of certain business tax credits and extends the tax rate for certain taxpayers to taxable years beginning after December 31, 2021. Finally, the Act reinstates the deduction for state and local taxes through 2026.

This bill extends the deduction for state and local taxes through 2027 and allows adjusted financial statement income of corporations to be determined without regard to certain provisions of the code. Additionally, the bill appropriates funds to the Department of Agriculture for conservation programs. This section of the bill authorizes funding for the Credit Corporation and the Commodity Credit Corporation to support conservation easements and regional conservation partnerships. The bill also appropriates $1 billion for conservation technical assistance and $300 million for a program to quantify carbon sequestration and emissions of carbon dioxide, methane, and nitrous oxide.

This section of the Farm Security and Rural Investment Act of 2002 provides for USDA assistance to rural electric cooperatives in the form of loans and other financial assistance to reduce carbon dioxide, methane, and nitrous oxide emissions associated with rural electric systems. There is a limit of 10 percent of the total amount available for each eligible entity.

This section of the bill appropriates $2,200,000,000 for a program to provide financial assistance to farmers, ranchers, or Forest landowners who experienced discrimination prior to January 1, 2021, in Department of Agriculture farm lending programs. The funds are to be used for administrative costs, including training employees, of the agencies and offices of the Department of Agriculture to carry out this section. This section also repeals Section 1005 of the Consolidated Farm and Rural Development Act.

The American Rescue Plan Act of 2021 appropriates $1.8 billion for hazardous fuels reduction projects on National Forest System land within the wildland-urban interface, $200 million for vegetation management projects on National Forest System land, $100 million for environmental reviews by the Forest Service, and $50 million for the protection of old-growth forests on National Forest System land. The bill also authorizes appropriations for competitive grants to non-federal forest landowners for climate mitigation or forest resilience practices, and for grants to support the participation of underserved Forest landowners in emerging private markets for climate mitigation or forest carbon offset projects.

This section provides for the appropriation of $4 billion to subsidize loans for energy efficiency, water efficiency, and climate resilience projects for eligible properties. Additionally, the National Oceanic and Atmospheric Administration is appropriated $2.6 billion for fiscal year 2022 to provide funding to coastal states, the District of Columbia, Tribal Governments, nonprofit organizations, local governments, and institutions of higher education to invest in coastal communities and climate resilience. This section contains appropriations for climate research and weather forecasting, including $50 million for competitive grants to fund climate research relating to weather, ocean, coastal, and atmospheric processes and conditions, and impacts to marine species and coastal habitat.

The Federal Aviation Administration Reauthorization Act of 2018 includes provisions for grant funding to promote the development of sustainable aviation fuels and low-emission aviation technologies. The grant funds will cover 75 percent of the total proposed cost of the project, with the possibility of increasing to 90 percent for small hub airports or nonhub airports. The Act also requires the Secretary of Transportation to adopt at least one methodology for testing lifecycle greenhouse gas emissions.

The Department of Energy will provide $4,275,000,000 in grants to State energy offices to develop and implement high-efficiency electric home rebate programs. The programs must be in accordance with guidelines set forth in the text, and the funds will remain available through September 30, 2022.

The Department of Energy will award grants to states and Indian tribes to establish a high-efficiency electric home rebate program. Under the program, eligible entities will be able to receive rebates for qualified electrification projects, such as the purchase of a heat pump water heater or an electric stove. The maximum rebate is $14,000. This section also provides funding for training contractors involved in the installation of home energy efficiency and electrification improvements.

The Energy Policy and Conservation Act provides funding for grants to assist States and units of local government in adopting and implementing building energy codes. The codes must meet or exceed the 2021 International Energy Conservation Code for residential buildings, the ANSI/ASHRAE/IES Standard 90.12019 for commercial buildings, or achieve equivalent or greater energy savings. The codes must also meet the zero energy provisions in the 2021 International Energy Conservation Code for both residential and commercial buildings. The plan for full compliance with the code must include active training and enforcement programs, as well as measurement of the rate of compliance each year.

This section of the bill appropriates $2 billion for grants to encourage domestic production of efficient hybrid and electric vehicles, and $5 billion for energy infrastructure projects. It also allows the Secretary to guarantee loans for energy infrastructure projects up to $250 billion. The purpose of the bill is to enable the Secretary of Energy to provide guarantees for loans to projects that retool, repower, or replace energy infrastructure that has ceased operations, or that enable operating energy infrastructure to avoid, reduce, utilize, or sequester air pollutants or emissions of greenhouse gases.

This section authorizes the Secretary of Energy to provide grants to non-federal entities for the construction or modification of electric transmission facilities designated by the Secretary to be necessary in the national interest. The grants may not exceed 80 percent of the project costs, and must be repaid with interest. The Department of Energy may award grants to state and local governments for activities related to the siting of covered transmission projects. These activities include studies of project impacts, examination of alternate siting corridors, and participation in regulatory proceedings. Grants may also be awarded for economic development activities in communities affected by the construction and operation of a covered transmission project. The Secretary of Energy is authorized to provide grants to siting authorities for activities related to the siting or permitting of covered transmission projects. The Federal share of the cost of these activities shall not exceed 50 percent. Grant funds may only be disbursed for economic development activities related to a covered transmission project upon approval by the siting authority or commencement of construction of the project.

This section of the bill provides financial assistance to eligible entities to prepare for activities related to reducing greenhouse gas emissions. To be eligible, entities must submit an application to the Secretary containing information on the expected emissions reductions from the project. Priority consideration will be given to projects with the greatest expected emissions reductions, those that would provide the greatest benefit to the greatest number of people, and those with eligible entities that participate in partnerships with purchasers of the output of the eligible facility.

The Energy Act of 2020 appropriates $500 million to the Department of Energy for programs related to high-assay low-enriched uranium, $100 million of which is specifically for research, development, demonstration, and commercial use. Additionally, the act provides funding for solar energy projects on water conveyance facilities managed by the Bureau of Reclamation.

This section of the bill authorizes funding for clean energy goals and drought mitigation, as well as increasing the royalty rates for offshore oil and gas development. It also amends the Outer Continental Shelf Lands Act to allow for wind lease sales in areas adjacent to Puerto Rico, Guam, American Samoa, the United States Virgin Islands, and the Commonwealth of the Northern Mariana Islands.

-The Mineral Leasing Act is being amended to require that royalties be assessed on all gas produced from Federal land and on the outer Continental Shelf, including gas that is consumed or lost by venting, flaring, or negligent releases through any equipment during upstream operations. -There are exceptions for gas vented or flared for not longer than 48 hours in an emergency situation that poses a danger to human health, safety, or the environment; gas used or consumed within the area of the lease, unit, or communitized area for the benefit of the lease, unit, or communitized area; or gas that is unavoidably lost. -This section also sets forth requirements for Lease Sale 257 in the Gulf of Mexico. -The Outer Continental Shelf (OCS) Oil and Gas Lease Sales 257, 258, and 259 are scheduled to occur on September 7, 2021, and October 4, 2021, respectively. -The Continental Shelf Oil and Gas Leasing Program Final Programmatic Environmental Impact Statement was issued on January 17, 2017. The statement outlines the requirements for Lease Sale 261, which must be conducted by September 30, 2023. -This section appropriates $23.5 million to the United States Geological Survey for fiscal year 2022 to produce, collect,

The Department of the Interior may not issue a lease for offshore wind development unless an offshore lease sale has been held during the 1-year period ending on the date of the issuance of the lease for offshore wind development, and the sum total of acres offered for lease in offshore lease sales during that period is not less than 60,000,000 acres. The Department of Energy and the Federal Energy Regulatory Commission are each appropriated $100,000,000 for fiscal year 2022 to facilitate timely and efficient environmental reviews and authorizations. This section appropriates $600,000,000 to the Administrator for fiscal year 2022, to be used for clean heavy-duty vehicle programs. The article discusses a program that provides grants and rebates to encourage the replacement of older, polluting vehicles with newer, cleaner vehicles. The program is administered by the Environmental Protection Agency, and funds are appropriated by Congress. This section authorizes the appropriation of $2.25 billion for grants to reduce air pollution at ports by purchasing or installing zero-emission port equipment or charging stations for electric vehicles. Eligible recipients include states, municipalities, Indian tribes, and nonprofit school transportation associations.

This section of the bill authorizes the appropriation of funds to the Administrator of the Environmental Protection Agency (EPA) to provide grants, loans, or other forms of financial assistance to states, municipalities, Tribal governments, and eligible recipients for the purposes of deploying or benefiting from zero emission technologies, including distributed technologies on residential rooftops, and to carry out other greenhouse gas emission reduction activities.

This section of the Clean Air Act authorizes appropriations for various programs aimed at reducing greenhouse gas emissions and other air pollutants. These programs include a Low Emissions Electricity Program, consumer and industry outreach and education, technical assistance and partnerships with state, tribal and local governments, and assessment of anticipated reductions in emissions. A total of $25 million is appropriated for these activities in fiscal year 2022.

This section of the bill authorizes the appropriation of $250,000,000 for the Environmental Protection Agency to develop and carry out a program to support the development, enhanced standardization and transparency, and reporting criteria for environmental product declarations that include measurements of the embodied greenhouse gas emissions of the material or product associated with all relevant stages of production, use, and disposal. Additionally, the EPA is appropriated $850,000,000 for fiscal year 2022 to remain available until September 30, 2028 for grants, rebates, contracts, loans, and other activities related to reducing methane emissions from petroleum and natural gas systems. This section also imposes a charge on methane emissions that exceed an applicable waste emissions threshold from an owner or operator of an applicable facility that reports more than 25,000 metric tons of carbon dioxide equivalent of greenhouse gases emitted per year.

The proposed rule would exempt emissions that exceed the waste emissions threshold if they are caused by unreasonable delay in environmental permitting of gathering or transmission infrastructure necessary for offtake of increased volume as a result of methane emissions mitigation implementation. Additionally, the proposed rule would exempt an applicable facility from the charge if the facility is subject to and in compliance with methane emissions requirements and if compliance with those requirements will result in equivalent or greater emissions reductions. Finally, the proposed rule would exempt emissions from any well that has been plugged in accordance with applicable regulations.

This section of the Clean Air Act appropriates $100,000,000 to the Environmental Protection Agency for fiscal year 2022 to develop and carry out a program to identify and label construction materials and products that have lower levels of embodied greenhouse gas emissions. This section also provides funding for grants to be awarded to eligible entities for activities related to reducing greenhouse gas emissions and other air pollutants, mitigating climate and health risks, climate resiliency and adaptation, and reducing indoor toxics and indoor air pollution.

This section of the bill provides for grants to be awarded to economically disadvantaged or underserved communities for projects that address air pollution, noise, stormwater, or other burdens. The Federal share of the cost of these projects shall not exceed 80 percent. Additionally, the bill appropriates funds for the purchase and installation of low-carbon materials for use in buildings under the jurisdiction of the General Services Administration and for emerging and sustainable technologies. The bill also establishes the Environmental Review Implementation Fund to help cover the costs of environmental reviews required by the National Environmental Policy Act.

This section of the bill establishes the position of Chief Readiness Support Officer within the Department of Homeland Security, and outlines the Officer's responsibilities. These include coordinating and supporting the Department's preparedness, response, and recovery efforts; overseeing the development and implementation of Department-wide policies and programs related to readiness; and serving as the primary advisor to the Secretary on all matters relating to readiness. This section also appropriates $500 million to the Department of Homeland Security for sustainability and environmental programs, $1.29 billion to the United States Postal Service for the purchase of zero-emission delivery vehicles, and $1.71 billion for the purchase, design, and installation of infrastructure to support zero-emission delivery vehicles. Additionally, it appropriates $15 million to the Office of Inspector General of the United States Postal Service and $25 million to the Comptroller General of the United States for oversight.

This section of the bill appropriates $220 million for Indian Tribe climate resilience and adaptation programs, $10 million for fish hatchery operations and maintenance programs of the Bureau of Indian Affairs, and $5 million for the administrative costs of carrying out this section. These funds are to be available until September 30, 2031 and are not subject to cost-sharing or matching requirements.

The federal government will provide $100 million in funding to support the construction of broadband infrastructure in unserved and underserved areas. There are no cost-sharing or matching requirements for these funds.