r/title-26-INTERNAL-REVENUE-CODE wiki — defined terms

“qualified clinical testing expenses” applies in that section

the term “qualified clinical testing expenses” means the amounts which are paid or incurred by the taxpayer during the taxable year which would be described in subsection (b) of section 41 if such subsection were applied with the modifications set forth in subparagraph (B). (B) Modifications For purposes of subparagraph (A), subsection (b) of section 41 shall be applied— (i) by substituting “clinical testing” for “qualified research” each place it appears in paragraphs (2) and (3) of such subsection, and (ii) by substituting “100 percent” for “65 percent” in paragraph (3)(A) of such subsection. (C) Exclusion for amounts funded by grants, etc.

“rare disease or condition” applies in that section

the term “rare disease or condition” means any disease or condition which— (A) affects less than 200,000 persons in the United States, or (B) affects more than 200,000 persons in the United States but for which there is no reasonable expectation that the cost of developing and making available in the United States a drug for such disease or condition will be recovered from sales in the United States of such drug. Determinations under the preceding sentence with respect to any drug shall be made on the basis of the facts and circumstances as of the date such drug is designated under section 526 of the Federal Food, Drug, and Cosmetic Act.

“credit allowance date” applies in that section

the term “credit allowance date” means, with respect to any qualified equity investment— (A) the date on which such investment is initially made, and (B) each of the 6 anniversary dates of such date thereafter. (b) Qualified equity investment For purposes of this section— (1) In general

“equity investment” applies in that section

The term “equity investment” means— (A) any stock (other than nonqualified preferred stock as defined in section 351(g)(2)) in an entity which is a corporation, and (B) any capital interest in an entity which is a partnership. (c) Qualified community development entity For purposes of this section— (1) In general

“high migration rural county” applies in that section

the term “high migration rural county” means any county which, during the 20-year period ending with the year in which the most recent census was conducted, has a net out-migration of inhabitants from the county of at least 10 percent of the population of the county at the beginning of such period. (f) National limitation on amount of investments designated (1) In general There is a new markets tax credit limitation for each calendar year.

“low-income community” applies in that section

The term “low-income community” means any population census tract if— (A) the poverty rate for such tract is at least 20 percent, or (B) (i) in the case of a tract not located within a metropolitan area, the median family income for such tract does not exceed 80 percent of statewide median family income, or (ii) in the case of a tract located within a metropolitan area, the median family income for such tract does not exceed 80 percent of the greater of statewide median family income or the metropolitan area median family income. Subparagraph (B) shall be applied using possessionwide median family income in the case of census tracts located within a possession of the United States.

“qualified active low-income community business” applies in that section

the term “qualified active low-income community business” means, with respect to any taxable year, any corporation (including a nonprofit corporation) or partnership if for such year— (i) at least 50 percent of the total gross income of such entity is derived from the active conduct of a qualified business within any low-income community, (ii) a substantial portion of the use of the tangible property of such entity (whether owned or leased) is within any low-income community, (iii) a substantial portion of the services performed for such entity by its employees are performed in any low-income community, (iv) less than 5 percent of the average of the aggregate unadjusted bases of the …

“qualified business” applies in that section

the term “qualified business” has the meaning given to such term by section 1397C(d); except that— (A) in lieu of applying paragraph (2)(B) thereof, the rental to others of real property located in any low-income community shall be treated as a qualified business if there are substantial improvements located on such property, and (B) paragraph (3) thereof shall not apply. (e) Low-income community For purposes of this section— (1) In general

“qualified community development entity” applies in that section

The term “qualified community development entity” means any domestic corporation or partnership if— (A) the primary mission of the entity is serving, or providing investment capital for, low-income communities or low-income persons, (B) the entity maintains accountability to residents of low-income communities through their representation on any governing board of the entity or on any advisory board to the entity, and (C) the entity is certified by the Secretary for purposes of this section as being a qualified community development entity.

“qualified equity investment” applies in that section

The term “qualified equity investment” means any equity investment in a qualified community development entity if— (A) such investment is acquired by the taxpayer at its original issue (directly or through an underwriter) solely in exchange for cash, (B) substantially all of such cash is used by the qualified community development entity to make qualified low-income community investments, and (C) such investment is designated for purposes of this section by the qualified community development entity.

“qualified low-income community investment” applies in that section

The term “qualified low-income community investment” means— (A) any capital or equity investment in, or loan to, any qualified active low-income community business, (B) the purchase from another qualified community development entity of any loan made by such entity which is a qualified low-income community investment, (C) financial counseling and other services specified in regulations prescribed by the Secretary to businesses located in, and residents of, low-income communities, and (D) any equity investment in, or loan to, any qualified community development entity. (2) Qualified active low-income community business (A) In general For purposes of paragraph (1),

“eligible employer” applies in that section

The term “eligible employer” has the meaning given such term by section 408(p)(2)(C)(i). (2) Requirement for new qualified employer plans Such term shall not include an employer if, during the 3-taxable year period immediately preceding the 1st taxable year for which the credit under this section is otherwise allowable for a qualified employer plan of the employer, the employer or any member of any controlled group including the employer (or any predecessor of either) established or maintained a qualified employer plan with respect to which contributions were made, or benefits were accrued, for substantially the same employees as are in the qualified employer plan.

“eligible employer plan” applies in that section

The term “eligible employer plan” means a qualified employer plan within the meaning of section 4972(d). (3) First credit year

“first credit year” applies in that section

The term “first credit year” means— (A) the taxable year which includes the date that the eligible employer plan to which such costs relate becomes effective with respect to the eligible employer, or (B) at the election of the eligible employer, the taxable year preceding the taxable year referred to in subparagraph (A). (e) Special rules For purposes of this section— (1) Aggregation rules All persons treated as a single employer under subsection (a) or (b) of section 52, or subsection (m) or ( o ) of section 414, shall be treated as one person. All eligible employer plans shall be treated as 1 eligible employer plan.

“qualified startup costs” applies in that section

The term “qualified startup costs” means any ordinary and necessary expenses of an eligible employer which are paid or incurred in connection with— (i) the establishment or administration of an eligible employer plan, or (ii) the retirement-related education of employees with respect to such plan. (B) Plan must have at least 1 participant Such term shall not include any expense in connection with a plan that does not have at least 1 employee eligible to participate who is not a highly compensated employee. (2) Eligible employer plan

“wages” applies in that section

the term “wages” has the meaning given such term by section 3121(a). (iii) Inflation adjustment In the case of any taxable year beginning in a calendar year after 2023, the $100,000 amount under clause (i) shall be increased by an amount equal to— (I) such dollar amount, multiplied by (II) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2007” for “calendar year 2016” in subparagraph (A)(ii) thereof. If any amount as adjusted under this clause is not a multiple of $5,000, such amount shall be rounded to the next lowest multiple of $5,000.

“eligible small business” applies in that section

The term “eligible small business” means a business that meets the gross receipts test of section 448(c), determined— (A) by substituting “5-taxable-year” for “3-taxable-year” in paragraph (1) thereof, and (B) by substituting “5-year” for “3-year” in paragraph (3)(A) thereof.

“qualified child care expenditure” applies in that section

The term “qualified child care expenditure” means any amount paid or incurred— (i) to acquire, construct, rehabilitate, or expand property— (I) which is to be used as part of a qualified child care facility of the taxpayer, (II) with respect to which a deduction for depreciation (or amortization in lieu of depreciation) is allowable, and (III) which does not constitute part of the principal residence (within the meaning of section 121) of the taxpayer or any employee of the taxpayer, (ii) for the operating costs of a qualified child care facility of the taxpayer, including costs related to the training of employees, to scholarship programs, and to the providing of increased compensation to …

“qualified child care facility” applies in that section

The term “qualified child care facility” means a facility— (i) the principal use of which is to provide child care assistance, and (ii) which meets the requirements of all applicable laws and regulations of the State or local government in which it is located, including the licensing of the facility as a child care facility. Clause (i) shall not apply to a facility which is the principal residence (within the meaning of section 121) of the operator of the facility.

“qualified child care resource and referral expenditure” applies in that section

The term “qualified child care resource and referral expenditure” means any amount paid or incurred under a contract to provide child care resource and referral services to an employee of the taxpayer. (B) Nondiscrimination The services shall not be treated as qualified unless the provision of such services (or the eligibility to use such services) does not discriminate in favor of employees of the taxpayer who are highly compensated employees (within the meaning of section 414(q)). (4) Eligible small business

“recapture amount” applies in that section

the term “recapture amount” means any increase in tax (or adjustment in carrybacks or carryovers) determined under subsection (d). (2) Other deductions and credits No deduction or credit shall be allowed under any other provision of this chapter with respect to the amount of the credit determined under this section. (g) Regulations and guidance The Secretary shall issue such regulations or other guidance as may be necessary to carry out the purposes of this section, including guidance to carry out the purposes of paragraphs (1)(A)(iii) and (2)(C) of subsection (c).

“recapture event” applies in that section

the term “recapture event” means— (A) Cessation of operation The cessation of the operation of the facility as a qualified child care facility. (B) Change in ownership (i) In general Except as provided in clause (ii), the disposition of a taxpayer’s interest in a qualified child care facility with respect to which the credit described in subsection (a) was allowable. (ii) Agreement to assume recapture liability Clause (i) shall not apply if the person acquiring such interest in the facility agrees in writing to assume the recapture liability of the person disposing of such interest in effect immediately before such disposition.

“eligible taxpayer” applies in that section

the term “eligible taxpayer” means— (1) any Class II or Class III railroad, and (2) any person who transports property using the rail facilities of a Class II or Class III railroad or who furnishes railroad-related property or services to a Class II or Class III railroad, but only with respect to miles of railroad track assigned to such person by such Class II or Class III railroad for purposes of subsection (b). (d) Qualified railroad track maintenance expenditures For purposes of this section,

“qualified railroad track maintenance expenditures” applies in that section

the term “qualified railroad track maintenance expenditures” means gross expenditures (whether or not otherwise chargeable to capital account) for maintaining railroad track (including roadbed, bridges, and related track structures) owned or leased as of January 1, 2015 , by a Class II or Class III railroad (determined without regard to any consideration for such expenditures given by the Class II or Class III railroad which made the assignment of such track).

“applicable EPA regulations” applies in that section

The term “applicable EPA regulations” means the Highway Diesel Fuel Sulfur Control Requirements of the Environmental Protection Agency. (4) Applicable period

“applicable period” applies in that section

The term “applicable period” means, with respect to any facility, the period beginning on January 1, 2003 , and ending on the earlier of the date which is 1 year after the date on which the taxpayer must comply with the applicable EPA regulations with respect to such facility or December 31, 2009 . (5) Low sulfur diesel fuel

“low sulfur diesel fuel” applies in that section

The term “low sulfur diesel fuel” means diesel fuel with a sulfur content of 15 parts per million or less. (d) Special rule for determination of refinery runs For purposes of this section and section 179B(b), in the calculation of average daily domestic refinery run or retained production, only refineries which on April 1, 2003 , were refineries of the refiner or a related person (within the meaning of section 613A(d)(3)), shall be taken into account.

“qualified costs” applies in that section

The term “qualified costs” means, with respect to any facility, those costs paid or incurred during the applicable period for compliance with the applicable EPA regulations with respect to such facility, including expenditures for the construction of new process operation units or the dismantling and reconstruction of existing process units to be used in the production of low sulfur diesel fuel, associated adjacent or offsite equipment (including tankage, catalyst, and power supply), engineering, construction period interest, and sitework. (3) Applicable EPA regulations

“small business refiner” applies in that section

The term “small business refiner” means, with respect to any taxable year, a refiner of crude oil— (A) with respect to which not more than 1,500 individuals are engaged in the refinery operations of the business on any day during such taxable year, and (B) the average daily domestic refinery run or average retained production of which for all facilities of the taxpayer for the 1-year period ending on December 31, 2002 , did not exceed 205,000 barrels. (2) Qualified costs

“barrel” applies in that section

The terms “crude oil”, “natural gas”, “domestic”, and “barrel” have the meanings given such terms by section 613A(e). (d) Other rules (1) Production attributable to the taxpayer In the case of a qualified marginal well in which there is more than one owner of operating interests in the well and the crude oil or natural gas production exceeds the limitation under subsection (c)(2), qualifying crude oil production or qualifying natural gas production attributable to the taxpayer shall be determined on the basis of the ratio which taxpayer’s revenue interest in the production bears to the aggregate of the revenue interests of all operating interest owners in the production.

“crude oil” applies in that section

The terms “crude oil”, “natural gas”, “domestic”, and “barrel” have the meanings given such terms by section 613A(e). (d) Other rules (1) Production attributable to the taxpayer In the case of a qualified marginal well in which there is more than one owner of operating interests in the well and the crude oil or natural gas production exceeds the limitation under subsection (c)(2), qualifying crude oil production or qualifying natural gas production attributable to the taxpayer shall be determined on the basis of the ratio which taxpayer’s revenue interest in the production bears to the aggregate of the revenue interests of all operating interest owners in the production.

“domestic” applies in that section

The terms “crude oil”, “natural gas”, “domestic”, and “barrel” have the meanings given such terms by section 613A(e). (d) Other rules (1) Production attributable to the taxpayer In the case of a qualified marginal well in which there is more than one owner of operating interests in the well and the crude oil or natural gas production exceeds the limitation under subsection (c)(2), qualifying crude oil production or qualifying natural gas production attributable to the taxpayer shall be determined on the basis of the ratio which taxpayer’s revenue interest in the production bears to the aggregate of the revenue interests of all operating interest owners in the production.

“natural gas” applies in that section

The terms “crude oil”, “natural gas”, “domestic”, and “barrel” have the meanings given such terms by section 613A(e). (d) Other rules (1) Production attributable to the taxpayer In the case of a qualified marginal well in which there is more than one owner of operating interests in the well and the crude oil or natural gas production exceeds the limitation under subsection (c)(2), qualifying crude oil production or qualifying natural gas production attributable to the taxpayer shall be determined on the basis of the ratio which taxpayer’s revenue interest in the production bears to the aggregate of the revenue interests of all operating interest owners in the production.

“qualified crude oil production” applies in that section

The terms “qualified crude oil production” and “qualified natural gas production” mean domestic crude oil or natural gas which is produced from a qualified marginal well. (2) Limitation on amount of production which may qualify (A) In general Crude oil or natural gas produced during any taxable year from any well shall not be treated as qualified crude oil production or qualified natural gas production to the extent production from the well during the taxable year exceeds 1,095 barrels or barrel-of-oil equivalents (as defined in section 45K(d)(5)).

“qualified marginal well” applies in that section

The term “qualified marginal well” means a domestic well— (i) the production from which during the taxable year is treated as marginal production under section 613A(c)(6), or (ii) which, during the taxable year— (I) has average daily production of not more than 25 barrel-of-oil equivalents (as so defined), and (II) produces water at a rate not less than 95 percent of total well effluent. (B) Crude oil, etc.

“qualified natural gas production” applies in that section

The terms “qualified crude oil production” and “qualified natural gas production” mean domestic crude oil or natural gas which is produced from a qualified marginal well. (2) Limitation on amount of production which may qualify (A) In general Crude oil or natural gas produced during any taxable year from any well shall not be treated as qualified crude oil production or qualified natural gas production to the extent production from the well during the taxable year exceeds 1,095 barrels or barrel-of-oil equivalents (as defined in section 45K(d)(5)).

“reference price” applies in that section

the term “reference price” means, with respect to any calendar year— (i) in the case of qualified crude oil production, the reference price determined under section 45K(d)(2)(C), and (ii) in the case of qualified natural gas production, the Secretary’s estimate of the annual average wellhead price per 1,000 cubic feet for all domestic natural gas. (c) Qualified crude oil and natural gas production For purposes of this section— (1) In general

“advanced nuclear facility” applies in that section

the term “advanced nuclear facility” means any nuclear facility the reactor design for which is approved after December 31, 1993 , by the Nuclear Regulatory Commission (and such design or a substantially similar design of comparable capacity was not approved on or before such date).

“advanced nuclear power facility” applies in that section

The term “advanced nuclear power facility” means any advanced nuclear facility— (A) which is owned by the taxpayer and which uses nuclear energy to produce electricity, and (B) which is placed in service after the date of the enactment of this paragraph and before January 1, 2021 . (2) Advanced nuclear facility For purposes of paragraph (1),

“eligible project partner” applies in that section

The term “eligible project partner” means any person who— (i) is responsible for, or participates in, the design or construction of the advanced nuclear power facility to which the credit under subsection (a) relates, (ii) participates in the provision of the nuclear steam supply system to such facility, (iii) participates in the provision of nuclear fuel to such facility, (iv) is a financial institution providing financing for the construction or operation of such facility, or (v) has an ownership interest in such facility.

“qualified public entity” applies in that section

The term “qualified public entity” means— (i) a Federal, State, or local government entity, or any political subdivision, agency, or instrumentality thereof, (ii) a mutual or cooperative electric company described in section 501(c)(12) or 1381(a)(2), or (iii) a not-for-profit electric utility which had or has received a loan or loan guarantee under the Rural Electrification Act of 1936. (B) Eligible project partner

“unutilized national megawatt capacity limitation” applies in that section

The term “unutilized national megawatt capacity limitation” means the excess (if any) of— (i) 6,000 megawatts, over (ii) the aggregate amount of national megawatt capacity limitation allocated by the Secretary before January 1, 2021 , reduced by any amount of such limitation which was allocated to a facility which was not placed in service before such date.

“barrel” applies in that section

The term “barrel” means 42 United States gallons. (7) Related persons Persons shall be treated as related to each other if such persons would be treated as a single employer under the regulations prescribed under section 52(b). In the case of a corporation which is a member of an affiliated group of corporations filing a consolidated return, such corporation shall be treated as selling qualified fuels to an unrelated person if such fuels are sold to such a person by another member of such group. (8) Pass-thru in the case of estates and trusts Under regulations prescribed by the Secretary, rules similar to the rules of subsection (d) of section 52 shall apply.

“biomass” applies in that section

The term “biomass” means any organic material other than— (A) oil and natural gas (or any product thereof), and (B) coal (including lignite) or any product thereof. (d) Other definitions and special rules For purposes of this section— (1) Only production within the United States taken into account Sales shall be taken into account under this section only with respect to qualified fuels the production of which is within— (A) the United States (within the meaning of section 638(1)), or (B) a possession of the United States (within the meaning of section 638(2)).

“GNP implicit price deflator” applies in that section

The term “GNP implicit price deflator” means the first revision of the implicit price deflator for the gross national product as computed and published by the Department of Commerce. (C) Reference price

“inflation adjustment factor” applies in that section

The term “inflation adjustment factor” means, with respect to a calendar year, a fraction the numerator of which is the GNP implicit price deflator for the calendar year and the denominator of which is the GNP implicit price deflator for calendar year 1979.

“qualified fuels” applies in that section

The term “qualified fuels” means— (A) oil produced from shale and tar sands, (B) gas produced from— (i) geopressured brine, Devonian shale, coal seams, or a tight formation, or (ii) biomass, and (C) liquid, gaseous, or solid synthetic fuels produced from coal (including lignite), including such fuels when used as feedstocks. (2) Gas from geopressured brine, etc. (A) In general Except as provided in subparagraph (B), the determination of whether any gas is produced from geopressured brine, Devonian shale, coal seams, or a tight formation shall be made in accordance with section 503 of the Natural Gas Policy Act of 1978 (as in effect before the repeal of such section).

“reference price” applies in that section

The term “reference price” means with respect to a calendar year the Secretary’s estimate of the annual average wellhead price per barrel for all domestic crude oil the price of which is not subject to regulation by the United States. (3) Production attributable to the taxpayer In the case of a property or facility in which more than 1 person has an interest, except to the extent provided in regulations prescribed by the Secretary, production from the property or facility (as the case may be) shall be allocated among such persons in proportion to their respective interests in the gross sales from such property or facility.

“acquire” applies in that section

The term “acquire” includes purchase. (c) Energy saving requirements (1) In general (A) In general A dwelling unit meets the requirements of this subparagraph if such dwelling unit meets the requirements of paragraph (2) or (3) (whichever is applicable). (B) Zero energy ready home program A dwelling unit meets the requirements of this subparagraph if such dwelling unit is certified as a zero energy ready home under the zero energy ready home program of the Department of Energy as in effect on January 1, 2023 (or any successor program determined by the Secretary).

“construction” applies in that section

The term “construction” includes substantial reconstruction and rehabilitation. (4) Acquire

“eligible contractor” applies in that section

The term “eligible contractor” means— (A) the person who constructed the qualified new energy efficient home, or (B) in the case of a qualified new energy efficient home which is a manufactured home, the manufactured home producer of such home. (2) Qualified new energy efficient home

“qualified new energy efficient home” applies in that section

The term “qualified new energy efficient home” means a dwelling unit— (A) located in the United States, (B) the construction of which is substantially completed after the date of the enactment of this section, and (C) which meets the energy saving requirements of subsection (c). (3) Construction

“eligible employer” applies in that section

the term “eligible employer” means any taxpayer which employs individuals as miners in underground mines in the United States. (d) Wages For purposes of this section,

“qualified mine rescue team employee” applies in that section

the term “qualified mine rescue team employee” means with respect to any taxable year any full-time employee of the taxpayer who is— (1) a miner eligible for more than 6 months of such taxable year to serve as a mine rescue team member as a result of completing, at a minimum, an initial 20-hour course of instruction as prescribed by the Mine Safety and Health Administration’s Office of Educational Policy and Development, or (2) a miner eligible for more than 6 months of such taxable year to serve as a mine rescue team member by virtue of receiving at least 40 hours of refresher training in such instruction. (c) Eligible employer For purposes of this section,

“wages” applies in that section

the term “wages” has the meaning given to such term by subsection (b) of section 3306 (determined without regard to any dollar limitation contained in such section). (e) Termination This section shall not apply to taxable years beginning after December 31, 2021 .

“eligible agricultural business” applies in that section

the term “eligible agricultural business” means any person in the trade or business of— (1) selling agricultural products, including specified agricultural chemicals, at retail predominantly to farmers and ranchers, or (2) manufacturing, formulating, distributing, or aerially applying specified agricultural chemicals. (f) Specified agricultural chemical For purposes of this section,

“qualified chemical security expenditure” applies in that section

the term “qualified chemical security expenditure” means, with respect to any eligible agricultural business for any taxable year, any amount paid or incurred by such business during such taxable year for— (1) employee security training and background checks, (2) limitation and prevention of access to controls of specified agricultural chemicals stored at the facility, (3) tagging, locking tank valves, and chemical additives to prevent the theft of specified agricultural chemicals or to render such chemicals unfit for illegal use, (4) protection of the perimeter of specified agricultural chemicals, (5) installation of security lighting, cameras, recording equipment, and intrusion detection …

“specified agricultural chemical” applies in that section

the term “specified agricultural chemical” means— (1) any fertilizer commonly used in agricultural operations which is listed under— (A) section 302(a)(2) of the Emergency Planning and Community Right-to-Know Act of 1986, (B) section 101 of part 172 of title 49, Code of Federal Regulations, or (C) part 126, 127, or 154 of title 33, Code of Federal Regulations, and (2) any pesticide (as defined in section 2(u) of the Federal Insecticide, Fungicide, and Rodenticide Act), including all active and inert ingredients thereof, which is customarily used on crops grown for food, feed, or fiber.

“eligible differential wage payments” applies in that section

The term “eligible differential wage payments” means, with respect to each qualified employee, so much of the differential wage payments (as defined in section 3401(h)(2)) paid to such employee for the taxable year as does not exceed $20,000. (2) Qualified employee

“qualified employee” applies in that section

The term “qualified employee” means a person who has been an employee of the taxpayer for the 91-day period immediately preceding the period for which any differential wage payment is made. (3) Controlled groups All persons treated as a single employer under subsection (b), (c), (m), or ( o ) of section 414 shall be treated as a single employer. (c) Coordination with other credits The amount of credit otherwise allowable under this chapter with respect to compensation paid to any employee shall be reduced by the credit determined under this section with respect to such employee.

“applicable electric generating unit” applies in that section

The term “applicable electric generating unit” means the principal electric generating unit for which the carbon capture equipment is originally planned and designed. (2) Baseline carbon oxide production (A) In general

“applicable facility” applies in that section

the term “applicable facility” means a qualified facility— (i) which was placed in service before the date of the enactment of the Bipartisan Budget Act of 2018, and (ii) for which no taxpayer claimed a credit under this section in regards to such facility for any taxable year ending before the date of the enactment of such Act.

“baseline carbon oxide production” applies in that section

The term “baseline carbon oxide production” means either of the following: (i) In the case of an applicable electric generating unit which was originally placed in service more than 1 year prior to the date on which construction of the carbon capture equipment begins, the average annual carbon oxide production, by mass, from such unit during— (I) in the case of an applicable electric generating unit which was 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 period beginning on the date such unit was placed …

“capacity factor” applies in that section

The term “capacity factor” means the ratio (expressed as a percentage) of the actual electric output from the applicable electric generating unit to the potential electric output from such unit. (3) Direct air capture facility (A) In general Subject to subparagraph (B),

“direct air capture facility” applies in that section

the term “direct air capture facility” means any facility which uses carbon capture equipment to capture carbon dioxide directly from the ambient air. (B) Exception The term “direct air capture facility” shall not include any facility which captures carbon dioxide— (i) which is deliberately released from naturally occurring subsurface springs, or (ii) using natural photosynthesis. (4) Qualified enhanced oil or natural gas recovery project

“lifecycle greenhouse gas emissions” applies in that section

the term “lifecycle greenhouse gas emissions” has the same meaning given such term under subparagraph (H) of section 211( o )(1) of the Clean Air Act ( 42 U.S.C. 7545 ( o )(1)), as in effect on the date of the enactment of the Bipartisan Budget Act of 2018, except that “product” shall be substituted for “fuel” each place it appears in such subparagraph.

“qualified carbon oxide” applies in that section

The term “qualified carbon oxide” means— (A) any carbon dioxide which— (i) is captured from an industrial source by carbon capture equipment which is originally placed in service before the date of the enactment of the Bipartisan Budget Act of 2018, (ii) would otherwise be released into the atmosphere as industrial emission of greenhouse gas or lead to such release, and (iii) is measured at the source of capture and verified at the point of disposal, injection, or utilization, (B) any carbon dioxide or other carbon oxide which— (i) is captured from an industrial source by carbon capture equipment which is originally placed in service on or after the date of the enactment of the Bipartisan …

“qualified enhanced oil or natural gas recovery project” applies in that section

The term “qualified enhanced oil or natural gas recovery project” has the meaning given the term “qualified enhanced oil recovery project” by section 43(c)(2), by substituting “crude oil or natural gas” for “crude oil” in subparagraph (A)(i) thereof. (5) Tertiary injectant

“qualified facility” applies in that section

the term “qualified facility” means any industrial facility or direct air capture facility— (1) the construction of which begins before January 1, 2033 , and either— (A) construction of carbon capture equipment begins before such date, or (B) the original planning and design for such facility includes installation of carbon capture equipment, and (2) which— (A) in the case of a direct air capture facility, captures not less than 1,000 metric tons of qualified carbon oxide during the taxable year, (B) in the case of an electricity generating facility— (i) captures not less than 18,750 metric tons of qualified carbon oxide during the taxable year, and (ii) with respect to any carbon capture …

“tertiary injectant” applies in that section

The term “tertiary injectant” has the same meaning as when used within section 193(b)(1). (f) Special rules (1) Only qualified carbon oxide captured and disposed of or used within the united states taken into account The credit under this section shall apply only with respect to qualified carbon oxide the capture and disposal, use, or utilization of which is within— (A) the United States (within the meaning of section 638(1)), or (B) a possession of the United States (within the meaning of section 638(2)).

“credit period” applies in that section

The term “credit period” means, with respect to any eligible small employer, the 2-consecutive-taxable year period beginning with the 1st taxable year in which the employer (or any predecessor) offers 1 or more qualified health plans to its employees through an Exchange. (3) Nonelective contribution

“eligible small employer” applies in that section

The term “eligible small employer” means, with respect to any taxable year, an employer— (A) which has no more than 25 full-time equivalent employees for the taxable year, (B) the average annual wages of which do not exceed an amount equal to twice the dollar amount in effect under paragraph (3)(B) for the taxable year, and (C) which has in effect an arrangement described in paragraph (4). (2) Full-time equivalent employees (A) In general

“employee” applies in that section

The term “employee” shall include a leased employee within the meaning of section 414(n). (2) Credit period

“full-time equivalent employees” applies in that section

The term “full-time equivalent employees” means a number of employees equal to the number determined by dividing— (i) the total number of hours of service for which wages were paid by the employer to employees during the taxable year, by (ii) 2,080. Such number shall be rounded to the next lowest whole number if not otherwise a whole number. (B) Excess hours not counted If an employee works in excess of 2,080 hours of service during any taxable year, such excess shall not be taken into account under subparagraph (A).

“nonelective contribution” applies in that section

The term “nonelective contribution” means an employer contribution other than an employer contribution pursuant to a salary reduction arrangement. (4) Wages

“payroll taxes” applies in that section

The term “payroll taxes” means— (i) amounts required to be withheld from the employees of the tax-exempt eligible small employer under section 3401(a), (ii) amounts required to be withheld from such employees under section 3101(b), and (iii) amounts of the taxes imposed on the tax-exempt eligible small employer under section 3111(b). (B) Special rule A rule similar to the rule of section 24(d)(2)(C) shall apply for purposes of subparagraph (A).

“seasonal worker” applies in that section

The term “seasonal worker” means a worker who performs labor or services on a seasonal basis as defined by the Secretary of Labor, including workers covered by section 500.20(s)(1) of title 29, Code of Federal Regulations and retail workers employed exclusively during holiday seasons.

“tax-exempt eligible small employer” applies in that section

the term “tax-exempt eligible small employer” means an eligible small employer which is any organization described in section 501(c) which is exempt from taxation under section 501(a). (3) Payroll taxes For purposes of this subsection— (A) In general

“wages” applies in that section

The term “wages” has the meaning given such term by section 3121(a) (determined without regard to any dollar limitation contained in such section). (5) Aggregation and other rules made applicable (A) Aggregation rules All employers treated as a single employer under subsection (b), (c), (m), or ( o ) of section 414 shall be treated as a single employer for purposes of this section. (B) Other rules Rules similar to the rules of subsections (c), (d), and (e) of section 52 shall apply.

“added employee” applies in that section

The term “added employee” means a qualifying employee who is not covered by title I of the Family and Medical Leave Act of 1993, as amended. (ii) Added employer

“added employer” applies in that section

The term “added employer” means an eligible employer (determined without regard to this paragraph), whether or not covered by that title I, who offers paid family and medical leave to added employees. (3) Aggregation rule (A) In general Except as provided in subparagraph (B), all persons which are treated as a single employer under subsections (b) and (c) of section 414 shall be treated as a single employer. (B) Exception (i) In general Subparagraph (A) shall not apply to any person who establishes to the satisfaction of the Secretary that such person has a substantial and legitimate business reason for failing to provide a written policy described in paragraph (1) or (2).

“applicable percentage” applies in that section

the term “applicable percentage” means 12.5 percent increased (but not above 25 percent) by 0.25 percentage points for each percentage point by which the rate of payment (as described under subsection (c)(1)(B)) exceeds 50 percent. (3) Rate of payment determined without regard to whether leave is taken For purposes of determining the applicable percentage with respect to paragraph (1)(B), the rate of payment under the insurance policy shall be determined without regard to whether any qualifying employees were on family and medical leave during the taxable year.

“eligible employer” applies in that section

The term “eligible employer” means any employer who has in place a written policy that meets the following requirements: (A) The policy provides— (i) in the case of a qualifying employee who is not a part-time employee (as defined in section 4980E(d)(4)(B)), not less than 2 weeks of annual paid family and medical leave, and (ii) in the case of a qualifying employee who is a part-time employee, an amount of annual paid family and medical leave that is not less than an amount which bears the same ratio to the amount of annual paid family and medical leave that is provided to a qualifying employee described in clause (i) as— (I) the number of hours the employee is expected to work during any …

“family and medical leave” applies in that section

the term “family and medical leave” means leave for any 1 or more of the purposes described under subparagraph (A), (B), (C), (D), or (E) of paragraph (1), or paragraph (3), of section 102(a) of the Family and Medical Leave Act of 1993, as amended, whether the leave is provided under that Act or by a policy of the employer. (2) Exclusion If an employer provides paid leave as vacation leave, personal leave, or medical or sick leave (other than leave specifically for 1 or more of the purposes referred to in paragraph (1)), that paid leave shall not be considered to be family and medical leave under paragraph (1). (3) Definitions In this subsection,

“medical or sick leave” applies in that section

the terms “vacation leave”, “personal leave”, and “medical or sick leave” mean those 3 types of leave, within the meaning of section 102(d)(2) of that Act. (f) Determinations made by Secretary of Treasury For purposes of this section, any determination as to whether an employer or an employee satisfies the applicable requirements for an eligible employer (as described in subsection (c)) or qualifying employee (as described in subsection (d)), respectively, shall be made by the Secretary based on such information, to be provided by the employer, as the Secretary determines to be necessary or appropriate. (g) Wages For purposes of this section,

“personal leave” applies in that section

the terms “vacation leave”, “personal leave”, and “medical or sick leave” mean those 3 types of leave, within the meaning of section 102(d)(2) of that Act. (f) Determinations made by Secretary of Treasury For purposes of this section, any determination as to whether an employer or an employee satisfies the applicable requirements for an eligible employer (as described in subsection (c)) or qualifying employee (as described in subsection (d)), respectively, shall be made by the Secretary based on such information, to be provided by the employer, as the Secretary determines to be necessary or appropriate. (g) Wages For purposes of this section,

“qualifying employee” applies in that section

the term “qualifying employee” means any employee (as defined in section 3(e) of the Fair Labor Standards Act of 1938, as amended) who— (1) has been employed by the employer for 1 year or more (or, at the election of the employer, for not less than 6 months), and (2) for the preceding year, had compensation, as determined on an annualized basis (pro-rata for part-time employees), not in excess of an amount equal to 60 percent of the amount applicable for such year under clause (i) of section 414(q)(1)(B), and (3) is customarily employed for not less than 20 hours per week. (e) Family and medical leave (1) In general Except as provided in paragraph (2), for purposes of this section,

“vacation leave” applies in that section

the terms “vacation leave”, “personal leave”, and “medical or sick leave” mean those 3 types of leave, within the meaning of section 102(d)(2) of that Act. (f) Determinations made by Secretary of Treasury For purposes of this section, any determination as to whether an employer or an employee satisfies the applicable requirements for an eligible employer (as described in subsection (c)) or qualifying employee (as described in subsection (d)), respectively, shall be made by the Secretary based on such information, to be provided by the employer, as the Secretary determines to be necessary or appropriate. (g) Wages For purposes of this section,

“wages” applies in that section

the term “wages” has the meaning given such term by subsection (b) of section 3306 (determined without regard to any dollar limitation contained in such section). Such term shall not include any amount taken into account for purposes of determining any other credit allowed under this subpart. (h) Election to have credit not apply (1) In general A taxpayer may elect to have this section not apply for any taxable year. (2) Other rules Rules similar to the rules of paragraphs (2) and (3) of section 51(j) shall apply for purposes of this subsection.

“eligible employer” applies in that section

the term “eligible employer” has the meaning given such term in section 408(p)(2)(C)(i).

“electricity” applies in that section

the term “electricity” means the energy produced by a qualified nuclear power facility from the conversion of nuclear fuel into electric power. (c) Other rules (1) Inflation adjustment The 0.3 cent amount in subsection (a)(1)(A) and the 2.5 cent amount in subsection (b)(2)(A)(ii)(II)(aa) shall each be adjusted by multiplying such amount by the inflation adjustment factor (as determined under section 45(e)(2), as applied by substituting “calendar year 2023” for “calendar year 1992” in subparagraph (B) thereof) for the calendar year in which the sale occurs.

“qualified nuclear power facility” applies in that section

the term “qualified nuclear power facility” means any nuclear facility— (A) which is owned by the taxpayer and which uses nuclear energy to produce electricity, (B) which is not an advanced nuclear power facility as defined in subsection (d)(1) of section 45J, and (C) which is placed in service before the date of the enactment of this section. (2) Reduction amount (A) In general For purposes of this section,

“reduction amount” applies in that section

the term “reduction amount” means, with respect to any qualified nuclear power facility for any taxable year, the amount equal to the lesser of— (i) the amount determined under subsection (a)(1), or (ii) the amount equal to 16 percent of the excess of— (I) subject to subparagraph (B), the gross receipts from any electricity produced by such facility (including any electricity services or products provided in conjunction with the electricity produced by such facility) and sold to an unrelated person during such taxable year, over (II) the amount equal to the product of— (aa) 2.5 cents, multiplied by (bb) the amount determined under subsection (a)(1)(B).

“zero-emission credit program” applies in that section

the term “zero-emission credit program” means any payments with respect to a qualified nuclear power facility as a result of any Federal, State or local government program for, in whole or in part, the zero-emission, zero-carbon, or air quality attributes of any portion of the electricity produced by such facility. (iii) Exclusion For purposes of clause (i), any amount received by the taxpayer from a zero-emission credit program shall be excluded from the amount determined under subparagraph (A)(ii)(I) if the full amount of the credit calculated pursuant to subsection (a) (determined without regard to this subparagraph) is used to reduce payments from such zero-emission credit program.

“lifecycle greenhouse gas emissions” applies in that section

the term “lifecycle greenhouse gas emissions” has the same meaning given such term under subparagraph (H) of section 211( o )(1) of the Clean Air Act ( 42 U.S.C. 7545 ( o )(1)), as in effect on the date of enactment of this section. (B) GREET model The term “lifecycle greenhouse gas emissions” shall only include emissions through the point of production (well-to-gate), as determined under the most recent Greenhouse gases, Regulated Emissions, and Energy use in Transportation model (commonly referred to as the “GREET model”) developed by Argonne National Laboratory, or a successor model (as determined by the Secretary). (2) Qualified clean hydrogen (A) In general

“qualified clean hydrogen” applies in that section

The term “qualified clean hydrogen” means hydrogen which is produced through a process that results in a lifecycle greenhouse gas emissions rate of not greater than 4 kilograms of CO2e per kilogram of hydrogen. (B) Additional requirements Such term shall not include any hydrogen unless— (i) such hydrogen is produced— (I) in the United States (as defined in section 638(1)) or a possession of the United States (as defined in section 638(2)), (II) in the ordinary course of a trade or business of the taxpayer, and (III) for sale or use, and (ii) the production and sale or use of such hydrogen is verified by an unrelated party.

“qualified clean hydrogen production facility” applies in that section

The term “qualified clean hydrogen production facility” means a facility— (A) owned by the taxpayer, (B) which produces qualified clean hydrogen, and (C) the construction of which begins before January 1, 2028 . (d) Special rules (1) Treatment of facilities owned by more than 1 taxpayer Rules similar to the rules section 45(e)(3) shall apply for purposes of this section. (2) Coordination with credit for carbon oxide sequestration No credit shall be allowed under this section with respect to any qualified clean hydrogen produced at a facility which includes carbon capture equipment for which a credit is allowed to any taxpayer under section 45Q for the taxable year or any prior taxable year.

“comparable vehicle” applies in that section

the term “comparable vehicle” means, with respect to any qualified commercial clean vehicle, any vehicle which is powered solely by a gasoline or diesel internal combustion engine and which is comparable in size and use to such vehicle. (4) Limitation The amount determined under this subsection with respect to any qualified commercial clean vehicle shall not exceed— (A) in the case of a vehicle which has a gross vehicle weight rating of less than 14,000 pounds, $7,500, and (B) in the case of a vehicle not described in subparagraph (A), $40,000. (c) Qualified commercial clean vehicle For purposes of this section,

“qualified commercial clean vehicle” applies in that section

the term “qualified commercial clean vehicle” means any vehicle which— (1) meets the requirements of section 30D(d)(1)(C) and is acquired for use or lease by the taxpayer and not for resale, (2) either— (A) meets the requirements of subparagraph (D) of section 30D(d)(1) and is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails), or (B) is mobile machinery, as defined in section 4053(8) (including vehicles that are not designed to perform a function of transporting a load over the public highways), (3) either— (A) is propelled to a significant extent by an electric motor which draws electricity from a battery …

“applicable critical mineral” applies in that section

The term “applicable critical mineral” means any of the following: (A) Aluminum Aluminum which is— (i) converted from bauxite to a minimum purity of 99 percent alumina by mass, or (ii) purified to a minimum purity of 99.9 percent aluminum by mass. (B) Antimony Antimony which is— (i) converted to antimony trisulfide concentrate with a minimum purity of 90 percent antimony trisulfide by mass, or (ii) purified to a minimum purity of 99.65 percent antimony by mass. (C) Barite Barite which is barium sulfate purified to a minimum purity of 80 percent barite by mass.

“battery cell” applies in that section

The term “battery cell” means an electrochemical cell— (I) comprised of 1 or more positive electrodes and 1 or more negative electrodes, (II) with an energy density of not less than 100 watt-hours per liter, and (III) capable of storing at least 12 watt-hours of energy. (iii) Battery module

“battery module” applies in that section

The term “battery module” means a module— (I) (aa) in the case of a module using battery cells, with 2 or more battery cells which are configured electrically, in series or parallel, to create voltage or current, as appropriate, to a specified end use, or (bb) with no battery cells, (II) with an aggregate capacity of not less than 7 kilowatt-hours (or, in the case of a module for a hydrogen fuel cell vehicle, not less than 1 kilowatt-hour), and (III) which is comprised of all other essential equipment needed for battery functionality, such as current collector assemblies and voltage sense harnesses, or any other essential energy collection equipment. (6) Applicable critical minerals

“blade” applies in that section

The term “blade” means an airfoil-shaped blade which is responsible for converting wind energy to low-speed rotational energy. (ii) Offshore wind foundation

“capacity-to-power ratio” applies in that section

the term “capacity-to-power ratio” means, with respect to a battery cell or battery module, the ratio of the capacity of such cell or module to the maximum discharge amount of such cell or module. (c) Definitions For purposes of this section— (1) Eligible component (A) In general

“central inverter” applies in that section

The term “central inverter” means an inverter which is suitable for large utility-scale systems and has a capacity which is greater than 1,000 kilowatts (expressed on a per alternating current watt basis). (C) Commercial inverter

“certified distributed wind energy system” applies in that section

The term “certified distributed wind energy system” means a wind energy system which is certified by an accredited certification agency to meet Standard 9.1-2009 of the American Wind Energy Association (including any subsequent revisions to or modifications of such Standard which have been approved by the American National Standards Institute). (E) Microinverter

“commercial inverter” applies in that section

The term “commercial inverter” means an inverter which— (i) is suitable for commercial or utility-scale applications, (ii) has a rated output of 208, 480, 600, or 800 volt three-phase power, and (iii) has a capacity which is not less than 20 kilowatts and not greater than 125 kilowatts (expressed on a per alternating current watt basis). (D) Distributed wind inverter (i) In general

“distributed wind inverter” applies in that section

The term “distributed wind inverter” means an inverter which— (I) is used in a residential or non-residential system which utilizes 1 or more certified distributed wind energy systems, and (II) has a rated output of not greater than 150 kilowatts. (ii) Certified distributed wind energy system

“electrode active material” applies in that section

The term “electrode active material” means cathode materials, anode materials, anode foils, and electrochemically active materials, including solvents, additives, and electrolyte salts that contribute to the electrochemical processes necessary for energy storage. (ii) Battery cell

“eligible component” applies in that section

The term “eligible component” means— (i) any solar energy component, (ii) any wind energy component, (iii) any inverter described in subparagraphs (B) through (G) of paragraph (2), (iv) any qualifying battery component, and (v) any applicable critical mineral. (B) Application with other credits The term “eligible component” shall not include any property which is produced at a facility if the basis of any property which is part of such facility is taken into account for purposes of the credit allowed under section 48C after the date of the enactment of this section.

“inverter” applies in that section

The term “inverter” means an end product which is suitable to convert direct current electricity from 1 or more solar modules or certified distributed wind energy systems into alternating current electricity. (B) Central inverter

“microinverter” applies in that section

The term “microinverter” means an inverter which— (i) is suitable to connect with one solar module, (ii) has a rated output of— (I) 120 or 240 volt single-phase power, or (II) 208 or 480 volt three-phase power, and (iii) has a capacity which is not greater than 650 watts (expressed on a per alternating current watt basis). (F) Residential inverter

“nacelle” applies in that section

The term “nacelle” means the assembly of the drivetrain and other tower-top components of a wind turbine (with the exception of the blades and the hub) within their cover housing. (iv) Related offshore wind vessel

“offshore wind foundation” applies in that section

The term “offshore wind foundation” means the component (including transition piece) which secures an offshore wind tower and any above-water turbine components to the seafloor using— (I) fixed platforms, such as offshore wind monopiles, jackets, or gravity-based foundations, or (II) floating platforms and associated mooring systems. (iii) Nacelle

“photovoltaic cell” applies in that section

The term “photovoltaic cell” means the smallest semiconductor element of a solar module which performs the immediate conversion of light into electricity. (ii) Photovoltaic wafer

“photovoltaic wafer” applies in that section

The term “photovoltaic wafer” means a thin slice, sheet, or layer of semiconductor material of at least 240 square centimeters— (I) produced by a single manufacturer either— (aa) directly from molten or evaporated solar grade polysilicon or deposition of solar grade thin film semiconductor photon absorber layer, or (bb) through formation of an ingot from molten polysilicon and subsequent slicing, and (II) which comprises the substrate or absorber layer of one or more photovoltaic cells. (iii) Polymeric backsheet

“polymeric backsheet” applies in that section

The term “polymeric backsheet” means a sheet on the back of a solar module which acts as an electric insulator and protects the inner components of such module from the surrounding environment. (iv) Solar grade polysilicon

“qualifying battery component” applies in that section

The term “qualifying battery component” means any of the following: (i) Electrode active materials. (ii) Battery cells. (iii) Battery modules. (B) Associated definitions (i) Electrode active material

“related offshore wind vessel” applies in that section

The term “related offshore wind vessel” means any vessel which is purpose-built or retrofitted for purposes of the development, transport, installation, operation, or maintenance of offshore wind energy components. (v) Tower

“residential inverter” applies in that section

The term “residential inverter” means an inverter which— (i) is suitable for a residence, (ii) has a rated output of 120 or 240 volt single-phase power, and (iii) has a capacity which is not greater than 20 kilowatts (expressed on a per alternating current watt basis). (G) Utility inverter

“solar energy component” applies in that section

The term “solar energy component” means any of the following: (i) Solar modules. (ii) Photovoltaic cells. (iii) Photovoltaic wafers. (iv) Solar grade polysilicon. (v) Torque tubes or structural fasteners. (vi) Polymeric backsheets. (B) Associated definitions (i) Photovoltaic cell

“solar grade polysilicon” applies in that section

The term “solar grade polysilicon” means silicon which is— (I) suitable for use in photovoltaic manufacturing, and (II) purified to a minimum purity of 99.999999 percent silicon by mass. (v) Solar module

“solar module” applies in that section

The term “solar module” means the connection and lamination of photovoltaic cells into an environmentally protected final assembly which is— (I) suitable to generate electricity when exposed to sunlight, and (II) ready for installation without an additional manufacturing process. (vi) Solar tracker

“solar tracker” applies in that section

The term “solar tracker” means a mechanical system that moves solar modules according to the position of the sun and to increase energy output. (vii) Solar tracker components (I) Torque tube

“structural fastener” applies in that section

The term “structural fastener” means a component which is used— (aa) to connect the mechanical and drive system components of a solar tracker to the foundation of such solar tracker, (bb) to connect torque tubes to drive assemblies, or (cc) to connect segments of torque tubes to one another. (4) Wind energy component (A) In general

“torque tube” applies in that section

The term “torque tube” means a structural steel support element (including longitudinal purlins) which— (aa) is part of a solar tracker, (bb) is of any cross-sectional shape, (cc) may be assembled from individually manufactured segments, (dd) spans longitudinally between foundation posts, (ee) supports solar panels and is connected to a mounting attachment for solar panels (with or without separate module interface rails), and (ff) is rotated by means of a drive system. (II) Structural fastener

“tower” applies in that section

The term “tower” means a tubular or lattice structure which supports the nacelle and rotor of a wind turbine. (5) Qualifying battery component (A) In general

“utility inverter” applies in that section

The term “utility inverter” means an inverter which— (i) is suitable for commercial or utility-scale systems, (ii) has a rated output of not less than 600 volt three-phase power, and (iii) has a capacity which is greater than 125 kilowatts and not greater than 1000 kilowatts (expressed on a per alternating current watt basis) 1 (3) Solar energy component (A) In general

“wind energy component” applies in that section

The term “wind energy component” means any of the following: (i) Blades. (ii) Nacelles. (iii) Towers. (iv) Offshore wind foundations. (v) Related offshore wind vessels. (B) Associated definitions (i) Blade

“applicable facility” applies in that section

the term “applicable facility” means a qualified facility which— (i) uses wind to produce electricity (within the meaning of such term as used in section 45(d)(1), as determined without regard to any requirement under such section with respect to the date on which construction of property begins), or (ii) uses solar energy to produce electricity (within the meaning of such term as used in section 45(d)(4), as determined without regard to any requirement under such section with respect to the date on which construction of property begins). (e) Definitions For purposes of this section: (1) CO 2 e per KWh

“applicable year” applies in that section

the term “applicable year” means calendar year 2032. (4) Termination for wind and solar facilities (A) In general This section shall not apply with respect to any applicable facility placed in service after December 31, 2027 . (B) Applicable facility For purposes of this paragraph,

“CO 2 e per KWh” applies in that section

The term “CO 2 e per KWh” means, with respect to any greenhouse gas, the equivalent carbon dioxide (as determined based on global warming potential) per kilowatt hour of electricity produced. (2) Greenhouse gas

“combined heat and power system property” applies in that section

the term “combined heat and power system property” has the same meaning given such term by section 48(c)(3) (without regard to subparagraphs (A)(iv), (B), and (D) thereof). (C) Conversion from BTU to KWh (i) In general For purposes of subparagraph (A)(i), the amount of kilowatt hours of electricity produced in the form of useful thermal energy shall be equal to the quotient of— (I) the total useful thermal energy produced by the combined heat and power system property within the qualified facility, divided by (II) the heat rate for such facility. (ii) Heat rate For purposes of this subparagraph,

“eligible cooperative” applies in that section

the term “eligible cooperative” means a cooperative organization described in section 1381(a) which is owned more than 50 percent by agricultural producers or by entities owned by agricultural producers. For this purpose an entity owned by an agricultural producer is one that is more than 50 percent owned by agricultural producers.

“GDP implicit price deflator” applies in that section

The term “GDP implicit price deflator” means the most recent revision of the implicit price deflator for the gross domestic product as computed and published by the Department of Commerce before March 15 of the calendar year. (d) Credit phase-out (1) In general Subject to paragraph (4), the amount of the clean electricity production credit under subsection (a) for any qualified facility the construction of which begins during a calendar year described in paragraph (2) shall be equal to the product of— (A) the amount of the credit determined under subsection (a) without regard to this subsection, multiplied by (B) the phase-out percentage under paragraph (2).

“greenhouse gas” applies in that section

The term “greenhouse gas” has the same meaning given such term under section 211( o )(1)(G) of the Clean Air Act ( 42 U.S.C. 7545 ( o )(1)(G)), as in effect on the date of the enactment of this section. (3) Qualified carbon dioxide

“greenhouse gas emissions rate” applies in that section

the term “greenhouse gas emissions rate” means the amount of greenhouse gases emitted into the atmosphere by a facility in the production of electricity, expressed as grams of CO 2 e per KWh. (B) Fuel combustion and gasification In the case of a facility which produces electricity through combustion or gasification, the greenhouse gas emissions rate for such facility shall be equal to the net rate of greenhouse gases emitted into the atmosphere by such facility (taking into account lifecycle greenhouse gas emissions, as described in section 211( o )(1)(H) of the Clean Air Act ( 42 U.S.C. 7545 ( o )(1)(H))) in the production of electricity, expressed as grams of CO 2 e per KWh.

“heat rate” applies in that section

the term “heat rate” means the amount of energy used by the qualified facility to generate 1 kilowatt hour of electricity, expressed as British thermal units per net kilowatt hour generated. (3) Production attributable to the taxpayer In the case of a qualified facility in which more than 1 person has an ownership interest, except to the extent provided in regulations prescribed by the Secretary, production from the facility shall be allocated among such persons in proportion to their respective ownership interests in the gross sales from such facility.

“inflation adjustment factor” applies in that section

The term “inflation adjustment factor” means, with respect to a calendar year, a fraction the numerator of which is the GDP implicit price deflator for the preceding calendar year and the denominator of which is the GDP implicit price deflator for the calendar year 1992.

“qualified carbon dioxide” applies in that section

The term “qualified carbon dioxide” means carbon dioxide captured from an industrial source which— (A) would otherwise be released into the atmosphere as industrial emission of greenhouse gas, (B) is measured at the source of capture and verified at the point of disposal or utilization, and (C) is captured and disposed or utilized within the United States (within the meaning of section 638(1)) or a possession of the United States (within the meaning of section 638(2)).

“qualified facility” applies in that section

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

“applicable material” applies in that section

The term “applicable material” means— (I) monoglycerides, diglycerides, and triglycerides, (II) free fatty acids, and (III) fatty acid esters. (ii) Biomass

“biomass” applies in that section

The term “biomass” has the same meaning given such term in section 45K(c)(3). (C) Regulations and guidance The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of subparagraph (A)(iv). (e) Guidance Not later than January 1, 2025 , the Secretary shall issue guidance regarding implementation of this section, including calculation of emissions factors for transportation fuel, the table described in subsection (b)(1)(B)(i), and the determination of clean fuel production credits under this section.

“CO 2 e” applies in that section

The term “CO 2 e” means, with respect to any greenhouse gas, the equivalent carbon dioxide (as determined based on relative global warming potential). (3) Greenhouse gas

“greenhouse gas” applies in that section

The term “greenhouse gas” has the same meaning given that term under section 211( o )(1)(G) of the Clean Air Act ( 42 U.S.C. 7545 ( o )(1)(G)), as in effect on the date of the enactment of this section. (4) Qualified facility

“mmBTU” applies in that section

The term “mmBTU” means 1,000,000 British thermal units. (2) CO 2 e

“qualified facility” applies in that section

The term “qualified facility”— (A) means a facility used for the production of transportation fuels, and (B) does not include any facility for which one of the following credits is allowed under section 38 for the taxable year: (i) The credit for production of clean hydrogen under section 45V. (ii) The credit determined under section 46 to the extent that such credit is attributable to the energy credit determined under section 48 with respect to any specified clean hydrogen production facility for which an election is made under subsection (a)(15) of such section. (iii) The credit for carbon oxide sequestration under section 45Q. (5) Transportation fuel (A) In general

“sustainable aviation fuel” applies in that section

the term “sustainable aviation fuel” means liquid fuel, the portion of which is not kerosene, which is sold for use in an aircraft and which— (A) meets the requirements of— (i) ASTM International Standard D7566, or (ii) the Fischer Tropsch provisions of ASTM International Standard D1655, Annex A1, and (B) is not derived from palm fatty acid distillates or petroleum.

“transportation fuel” applies in that section

The term “transportation fuel” means a fuel which— (i) is suitable for use as a fuel in a highway vehicle or aircraft, (ii) has an emissions rate which is not greater than 50 kilograms of CO 2 e per mmBTU, (iii) is not derived from coprocessing an applicable material (or materials derived from an applicable material) with a feedstock which is not biomass, and (iv) is not produced from a fuel for which a credit under this section is allowable. (B) Definitions In this paragraph— (i) Applicable material

“United States” applies in that section

the term “United States” includes any possession of the United States. (2) Production attributable to the taxpayer In the case of a facility in which more than 1 person has an ownership interest, except to the extent provided in regulations prescribed by the Secretary, production from the facility shall be allocated among such persons in proportion to their respective ownership interests in the gross sales from such facility. (3) Related persons Persons shall be treated as related to each other if such persons would be treated as a single employer under the regulations prescribed under section 52(b).