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

“28-percent rate gain” applies in that section

the term “28-percent rate gain” means the excess (if any) of— (A) the sum of— (i) collectibles gain; and (ii) section 1202 gain, over (B) the sum of— (i) collectibles loss; (ii) the net short-term capital loss; and (iii) the amount of long-term capital loss carried under section 1212(b)(1)(B) to the taxable year. (5) Collectibles gain and loss For purposes of this subsection— (A) In general

“adjusted net capital gain” applies in that section

the term “adjusted net capital gain” means the sum of— (A) net capital gain (determined without regard to paragraph (11)) reduced (but not below zero) by the sum of— (i) unrecaptured section 1250 gain, and (ii) 28-percent rate gain, plus (B) qualified dividend income (as defined in paragraph (11)). (4) 28-percent rate gain For purposes of this subsection,

“allocable parental tax” applies in that section

The term “allocable parental tax” means the excess of— (i) the tax which would be imposed by this section on the parent’s taxable income if such income included the net unearned income of all children of the parent to whom this subsection applies, over (ii) the tax imposed by this section on the parent without regard to this subsection. For purposes of clause (i), net unearned income of all children of the parent shall not be taken into account in computing any exclusion, deduction, or credit of the parent.

“applicable threshold” applies in that section

the term “applicable threshold” means— (i) $450,000 in the case of subsection (a), (ii) $425,000 in the case of subsection (b), (iii) $400,000 in the case of subsection (c), and (iv) ½ the amount applicable under clause (i) (after adjustment, if any, under subparagraph (C)) in the case of subsection (d). (C) Inflation adjustment For purposes of this paragraph, with respect to taxable years beginning in calendar years after 2013, each of the dollar amounts under clauses (i), (ii), and (iii) of subparagraph (B) shall be adjusted in the same manner as under paragraph (1)(C)(i), except that subsection (f)(3)(A)(ii) shall be applied by substituting “2012” for “2016”.

“C-CPI-U” applies in that section

The term “C-CPI-U” means the Chained Consumer Price Index for All Urban Consumers (as published by the Bureau of Labor Statistics of the Department of Labor). The values of the Chained Consumer Price Index for All Urban Consumers taken into account for purposes of determining the cost-of-living adjustment for any calendar year under this subsection shall be the latest values so published as of the date on which such Bureau publishes the initial value of the Chained Consumer Price Index for All Urban Consumers for the month of August for the preceding calendar year.

“collectibles gain” applies in that section

The terms “collectibles gain” and “collectibles loss” mean gain or loss (respectively) from the sale or exchange of a collectible (as defined in section 408(m) without regard to paragraph (3) thereof) which is a capital asset held for more than 1 year but only to the extent such gain is taken into account in computing gross income and such loss is taken into account in computing taxable income. (B) Partnerships, etc. For purposes of subparagraph (A), any gain from the sale of an interest in a partnership, S corporation, or trust which is attributable to unrealized appreciation in the value of collectibles shall be treated as gain from the sale or exchange of a collectible.

“collectibles loss” applies in that section

The terms “collectibles gain” and “collectibles loss” mean gain or loss (respectively) from the sale or exchange of a collectible (as defined in section 408(m) without regard to paragraph (3) thereof) which is a capital asset held for more than 1 year but only to the extent such gain is taken into account in computing gross income and such loss is taken into account in computing taxable income. (B) Partnerships, etc. For purposes of subparagraph (A), any gain from the sale of an interest in a partnership, S corporation, or trust which is attributable to unrealized appreciation in the value of collectibles shall be treated as gain from the sale or exchange of a collectible.

“Consumer Price Index” applies in that section

the term “Consumer Price Index” means the last Consumer Price Index for all-urban consumers published by the Department of Labor. For purposes of the preceding sentence, the revision of the Consumer Price Index which is most consistent with the Consumer Price Index for calendar year 1986 shall be used. (6) C-CPI-U For purposes of this subsection— (A) In general

“net capital gain” applies in that section

the term “net capital gain” means net capital gain (determined without regard to this paragraph) increased by qualified dividend income. (B) Qualified dividend income For purposes of this paragraph— (i) In general

“net unearned income” applies in that section

The term “net unearned income” means the excess of— (i) the portion of the adjusted gross income for the taxable year which is not attributable to earned income (as defined in section 911(d)(2)), over (ii) the sum of— (I) the amount in effect for the taxable year under section 63(c)(5)(A) (relating to limitation on standard deduction in the case of certain dependents), plus (II) the greater of the amount described in subclause (I) or, if the child itemizes his deductions for the taxable year, the amount of the itemized deductions allowed by this chapter for the taxable year which are directly connected with the production of the portion of adjusted gross income referred to in clause (i).

“pass-thru entity” applies in that section

the term “pass-thru entity” means— (A) a regulated investment company; (B) a real estate investment trust; (C) an S corporation; (D) a partnership; (E) an estate or trust; (F) a common trust fund; and (G) a qualified electing fund (as defined in section 1295). (11) Dividends taxed as net capital gain (A) In general For purposes of this subsection,

“qualified dividend income” applies in that section

The term “qualified dividend income” means dividends received during the taxable year from— (I) domestic corporations, and (II) qualified foreign corporations. (ii) Certain dividends excluded Such term shall not include— (I) any dividend from a corporation which for the taxable year of the corporation in which the distribution is made, or the preceding taxable year, is a corporation exempt from tax under section 501 or 521, (II) any amount allowed as a deduction under section 591 (relating to deduction for dividends paid by mutual savings banks, etc.), and (III) any dividend described in section 404(k).

“qualified foreign corporation” applies in that section

the term “qualified foreign corporation” means any foreign corporation if— (I) such corporation is incorporated in a possession of the United States, or (II) such corporation is eligible for benefits of a comprehensive income tax treaty with the United States which the Secretary determines is satisfactory for purposes of this paragraph and which includes an exchange of information program.

“section 1202 gain” applies in that section

the term “section 1202 gain” means the excess of— (A) the gain which would be excluded from gross income under section 1202 but for the percentage limitation in section 1202(a), over (B) the gain excluded from gross income under section 1202. (8) Coordination with recapture of net ordinary losses under section 1231 If any amount is treated as ordinary income under section 1231(c), such amount shall be allocated among the separate categories of net section 1231 gain (as defined in section 1231(c)(3)) in such manner as the Secretary may by forms or regulations prescribe.

“unrecaptured section 1250 gain” applies in that section

The term “unrecaptured section 1250 gain” means the excess (if any) of— (i) the amount of long-term capital gain (not otherwise treated as ordinary income) which would be treated as ordinary income if section 1250(b)(1) included all depreciation and the applicable percentage under section 1250(a) were 100 percent, over (ii) the excess (if any) of— (I) the amount described in paragraph (4)(B); over (II) the amount described in paragraph (4)(A).

“surviving spouse” applies in that section

the term “surviving spouse” means a taxpayer— (A) whose spouse died during either of his two taxable years immediately preceding the taxable year, and (B) who maintains as his home a household which constitutes for the taxable year the principal place of abode (as a member of such household) of a dependent (i) who (within the meaning of section 152, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B) thereof) is a son, stepson, daughter, or stepdaughter of the taxpayer, and (ii) with respect to whom the taxpayer is entitled to a deduction for the taxable year under section 151.

“ceiling amount” applies in that section

the term “ceiling amount” means, with respect to any taxpayer, the amount (not less than $20,000) determined by the Secretary for the tax rate category in which such taxpayer falls. (3) Authority to prescribe tables for taxpayers who itemize deductions The Secretary may provide that this section shall apply also for any taxable year to individuals who itemize their deductions. Any tables prescribed under the preceding sentence shall be on the basis of taxable income.

“applicable percentage” applies in that section

the term “applicable percentage” means 50 percent— (A) reduced (but not below 35 percent) by 1 percentage point for each $2,000 or fraction thereof by which the taxpayer’s adjusted gross income for the taxable year exceeds $15,000, and (B) further reduced (but not below 20 percent) by 1 percentage point for each $2,000 ($4,000 in the case of a joint return) or fraction thereof by which the taxpayer’s adjusted gross income for the taxable year exceeds $75,000 ($150,000 in the case of a joint return). (b) Definitions of qualifying individual and employment-related expenses For purposes of this section— (1) Qualifying individual

“dependent care center” applies in that section

the term “dependent care center” means any facility which— (i) provides care for more than six individuals (other than individuals who reside at the facility), and (ii) receives a fee, payment, or grant for providing services for any of the individuals (regardless of whether such facility is operated for profit).

“educational organization” applies in that section

The term “educational organization” means an educational organization described in section 170(b)(1)(A)(ii). (9) Identifying information required with respect to service provider No credit shall be allowed under subsection (a) for any amount paid to any person unless— (A) the name, address, and taxpayer identification number of such person are included on the return claiming the credit, or (B) if such person is an organization described in section 501(c)(3) and exempt from tax under section 501(a), the name and address of such person are included on the return claiming the credit.

“employment-related expenses” applies in that section

The term “employment-related expenses” means amounts paid for the following expenses, but only if such expenses are incurred to enable the taxpayer to be gainfully employed for any period for which there are 1 or more qualifying individuals with respect to the taxpayer: (i) expenses for household services, and (ii) expenses for the care of a qualifying individual. Such term shall not include any amount paid for services outside the taxpayer’s household at a camp where the qualifying individual stays overnight.

“mirror code tax system” applies in that section

the term “mirror code tax system” means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States. (5) Treatment of payments For purposes of section 1324 of title 31 , United States Code, the payments under this subsection shall be treated in the same manner as a refund due from a credit provision referred to in subsection (b)(2) of such section.

“phaseout percentage” applies in that section

The term “phaseout percentage” means 20 percent reduced (but not below zero) by 1 percentage point for each $2,000 (or fraction thereof) by which the taxpayer’s adjusted gross income for the taxable year exceeds $400,000. (h) Application of credit in possessions (1) Payment to possessions with mirror code tax systems The Secretary shall pay to each possession of the United States with a mirror code tax system amounts equal to the loss (if any) to that possession by reason of the application of this section (determined without regard to this subsection) with respect to taxable years beginning in or with 2021.

“qualifying individual” applies in that section

The term “qualifying individual” means— (A) a dependent of the taxpayer (as defined in section 152(a)(1)) who has not attained age 13, (B) a dependent of the taxpayer (as defined in section 152, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B)) who is physically or mentally incapable of caring for himself or herself and who has the same principal place of abode as the taxpayer for more than one-half of such taxable year, or (C) the spouse of the taxpayer, if the spouse is physically or mentally incapable of caring for himself or herself and who has the same principal place of abode as the taxpayer for more than one-half of such taxable year.

“student” applies in that section

The term “student” means an individual who during each of 5 calendar months during the taxable year is a full-time student at an educational organization. (8) Educational organization

“taxable year” applies in that section

the term “taxable year” means the taxable year of the taxpayer in which the service is performed. (7) Student

“disability income” applies in that section

the term “disability income” means the aggregate amount includable in the gross income of the individual for the taxable year under section 72 or 105(a) to the extent such amount constitutes wages (or payments in lieu of wages) for the period during which the individual is absent from work on account of permanent and total disability.

“qualified individual” applies in that section

the term “qualified individual” means any individual— (1) who has attained age 65 before the close of the taxable year, or (2) who retired on disability before the close of the taxable year and who, when he retired, was permanently and totally disabled. (c) Section 22 amount For purposes of subsection (a)— (1) In general An individual’s section 22 amount for the taxable year shall be the applicable initial amount determined under paragraph (2), reduced as provided in paragraph (3) and in subsection (d).

“child with special needs” applies in that section

The term “child with special needs” means any child if— (A) a State or Indian tribal government has determined that the child cannot or should not be returned to the home of his parents, (B) such State or Indian tribal government has determined that there exists with respect to the child a specific factor or condition (such as his ethnic background, age, or membership in a minority or sibling group, or the presence of factors such as medical conditions or physical, mental, or emotional handicaps) because of which it is reasonable to conclude that such child cannot be placed with adoptive parents without providing adoption assistance, and (C) such child is a citizen or resident of the United …

“eligible child” applies in that section

The term “eligible child” means any individual who— (A) has not attained age 18, or (B) is physically or mentally incapable of caring for himself. (3) Child with special needs

“qualified adoption expenses” applies in that section

The term “qualified adoption expenses” means reasonable and necessary adoption fees, court costs, attorney fees, and other expenses— (A) which are directly related to, and the principal purpose of which is for, the legal adoption of an eligible child by the taxpayer, (B) which are not incurred in violation of State or Federal law or in carrying out any surrogate parenting arrangement, (C) which are not expenses in connection with the adoption by an individual of a child who is the child of such individual’s spouse, and (D) which are not reimbursed under an employer program or otherwise. (2) Eligible child

“applicable income threshold” applies in that section

the term “applicable income threshold” means— (I) $60,000 in the case of a joint return or surviving spouse (as defined in section 2(a)), (II) $50,000 in the case of a head of household, and (III) $40,000 in any other case. (iv) Safe harbor amount For purposes of this subparagraph,

“mirror code tax system” applies in that section

the term “mirror code tax system” means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States. (2) Puerto Rico (A) Application to taxable years in 2021 (i) For application of refundable credit to residents of Puerto Rico, see subsection (i)(1). (ii) For nonapplication of advance payment to residents of Puerto Rico, see section 7527A(e)(4)(A).

“modified adjusted gross income” applies in that section

the term “modified adjusted gross income” means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933. (2) Threshold amount For purposes of paragraph (1),

“qualifying child” applies in that section

The term “qualifying child” means a qualifying child of the taxpayer (as defined in section 152(c)) who has not attained age 17. (2) Exception for certain noncitizens The term “qualifying child” shall not include any individual who would not be a dependent if subparagraph (A) of section 152(b)(3) were applied without regard to all that follows “resident of the United States”.

“safe harbor amount” applies in that section

the term “safe harbor amount” means, with respect to any taxable year, the product of— (I) $2,000, multiplied by (II) the excess (if any) of the number of qualified children taken into account in determining the annual advance amount with respect to the taxpayer under section 7527A with respect to months beginning in such taxable year, over the number of qualified children taken into account in determining the credit allowed under this section for such taxable year.

“social security number” applies in that section

the term “social security number” means a social security number issued to an individual by the Social Security Administration, but only if the social security number is issued— (i) to a citizen of the United States or pursuant to subclause (I) (or that portion of subclause (III) that relates to subclause (I)) of section 205(c)(2)(B)(i) of the Social Security Act, and (ii) before the due date for such return.

“social security taxes” applies in that section

The term “social security taxes” means, with respect to any taxpayer for any taxable year— (i) the amount of the taxes imposed by sections 3101 and 3201(a) on amounts received by the taxpayer during the calendar year in which the taxable year begins, (ii) 50 percent of the taxes imposed by section 1401 on the self-employment income of the taxpayer for the taxable year, and (iii) 50 percent of the taxes imposed by section 3211(a) on amounts received by the taxpayer during the calendar year in which the taxable year begins.

“threshold amount” applies in that section

the term “threshold amount” means— (A) $110,000 in the case of a joint return, (B) $75,000 in the case of an individual who is not married, and (C) $55,000 in the case of a married individual filing a separate return. For purposes of this paragraph, marital status shall be determined under section 7703. (c) Qualifying child For purposes of this section— (1) In general

“applicable tax limit” applies in that section

the term “applicable tax limit” means the limitation imposed by section 26(a) for the taxable year reduced by the sum of the credits allowable under this subpart (other than this section and sections 23 and 25D). (2) Indebtedness not treated as certified where certain requirements not in fact met Subsection (a) shall not apply to any indebtedness if all the requirements of subsection (c)(1), (d), (e), (f), and (i) of section 143 and clauses (iv), (v), and (vii) of subsection (c)(2)(A), were not in fact met with respect to such indebtedness.

“certificate credit rate” applies in that section

The term “certificate credit rate” means the rate of the credit allowable by this section which is specified in the mortgage credit certificate. (2) Certified indebtedness amount

“certified indebtedness amount” applies in that section

The term “certified indebtedness amount” means the amount of indebtedness which is— (A) incurred by the taxpayer— (i) to acquire the principal residence of the taxpayer, (ii) as a qualified home improvement loan (as defined in section 143(k)(4)) with respect to such residence, or (iii) as a qualified rehabilitation loan (as defined in section 143(k)(5)) with respect to such residence, and (B) specified in the mortgage credit certificate. (c) Mortgage credit certificate; qualified mortgage credit certificate program For purposes of this section— (1) Mortgage credit certificate

“correction amount” applies in that section

the term “correction amount” means an amount equal to the excess credit amount divided by 0.25. (B) Excess credit amount (i) In general For purposes of subparagraph (A)(ii),

“credit amount” applies in that section

the term “credit amount” means the sum of the products determined under clauses (i) and (ii) of subsection (d)(2)(A). (3) Special rule for States having constitutional home rule cities In the case of a State having one or more constitutional home rule cities (within the meaning of section 146(d)(3)(C)), the reduction in the State ceiling by reason of paragraph (1) shall be allocated to the constitutional home rule city, or to the portion of the State not within such city, whichever caused the reduction.

“excess credit amount” applies in that section

the term “excess credit amount” means the excess of— (I) the credit amount for any mortgage credit certificate program, over (II) the amount which would have been the credit amount for such program had such program met the requirements of paragraph (2) of subsection (d). (ii) Credit amount For purposes of clause (i),

“mortgage credit certificate” applies in that section

The term “mortgage credit certificate” means any certificate which— (A) is issued under a qualified mortgage credit certificate program by the State or political subdivision having the authority to issue a qualified mortgage bond to provide financing on the principal residence of the taxpayer, (B) is issued to the taxpayer in connection with the acquisition, qualified rehabilitation, or qualified home improvement of the taxpayer’s principal residence, (C) specifies— (i) the certificate credit rate, and (ii) the certified indebtedness amount, and (D) is in such form as the Secretary may prescribe. (2) Qualified mortgage credit certificate program (A) In general

“nonissued bond amount” applies in that section

the term “nonissued bond amount” means, with respect to any qualified mortgage credit certificate program, the amount of qualified mortgage bonds which the issuing authority is otherwise authorized to issue and elects not to issue under subsection (c)(2)(A)(ii).

“principal residence” applies in that section

The term “principal residence” has the same meaning as when used in section 121. (8) Qualified rehabilitation and home improvement (A) Qualified rehabilitation

“qualified home improvement” applies in that section

The term “qualified home improvement” means an alteration, repair, or improvement described in section 143(k)(4). (9) Qualified mortgage bond

“qualified mortgage bond” applies in that section

The term “qualified mortgage bond” has the meaning given such term by section 143(a)(1). (10) Manufactured housing For purposes of this section,

“qualified mortgage credit certificate program” applies in that section

The term “qualified mortgage credit certificate program” means any program— (i) which is established by a State or political subdivision thereof for any calendar year for which it is authorized to issue qualified mortgage bonds, (ii) under which the issuing authority elects (in such manner and form as the Secretary may prescribe) not to issue an amount of private activity bonds which it may otherwise issue during such calendar year under section 146, (iii) under which the indebtedness certified by mortgage credit certificates meets the requirements of the following subsections of section 143 (as modified by subparagraph (B) of this paragraph): (I) subsection (c) (relating to residence …

“qualified rehabilitation” applies in that section

The term “qualified rehabilitation” has the meaning given such term by section 143(k)(5)(B). (B) Qualified home improvement

“single family residence” applies in that section

the term “single family residence” includes any manufactured home which has a minimum of 400 square feet of living space and a minimum width in excess of 102 inches and which is of a kind customarily used at a fixed location. Nothing in the preceding sentence shall be construed as providing that such a home will be taken into account in making determinations under section 143.

“eligible educational institution” applies in that section

The term “eligible educational institution” means an institution— (A) which is described in section 481 of the Higher Education Act of 1965 ( 20 U.S.C. 1088 ), as in effect on the date of the enactment of this section, and (B) which is eligible to participate in a program under title IV of such Act.

“eligible student” applies in that section

the term “eligible student” means, with respect to any academic period, a student who— (A) meets the requirements of section 484(a)(1) of the Higher Education Act of 1965 ( 20 U.S.C. 1091(a)(1) ), as in effect on the date of the enactment of this section, and (B) is carrying at least ½ the normal full-time work load for the course of study the student is pursuing. (4) Restrictions on taxpayers who improperly claimed American Opportunity Tax Credit in prior years (A) Taxpayers making prior fraudulent or reckless claims (i) In general No American Opportunity Tax Credit shall be allowed under this section for any taxable year in the disallowance period.

“modified adjusted gross income” applies in that section

the term “modified adjusted gross income” means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933. (e) Election not to have section apply A taxpayer may elect not to have this section apply with respect to the qualified tuition and related expenses of an individual for any taxable year. (f) Definitions For purposes of this section— (1) Qualified tuition and related expenses (A) In general

“qualified tuition and related expenses” applies in that section

The term “qualified tuition and related expenses” means tuition and fees required for the enrollment or attendance of— (i) the taxpayer, (ii) the taxpayer’s spouse, or (iii) any dependent of the taxpayer with respect to whom the taxpayer is allowed a deduction under section 151, at an eligible educational institution for courses of instruction of such individual at such institution. (B) Exception for education involving sports, etc. Such term does not include expenses with respect to any course or other education involving sports, games, or hobbies, unless such course or other education is part of the individual’s degree program.

“eligible individual” applies in that section

The term “eligible individual” means any individual if such individual has attained the age of 18 as of the close of the taxable year. (2) Dependents and full-time students not eligible The term “eligible individual” shall not include— (A) any individual with respect to whom a deduction under section 151 is allowed to another taxpayer for a taxable year beginning in the calendar year in which such individual’s taxable year begins, and (B) any individual who is a student (as defined in section 152(f)(2)). (d) Qualified retirement savings contributions For purposes of this section— (1) In general

“qualified retirement savings contributions” applies in that section

The term “qualified retirement savings contributions” means, with respect to any taxable year, the sum of— (A) the amount of contributions made by the eligible individual during such taxable year to the ABLE account (within the meaning of section 529A) of which such individual is the designated beneficiary, and (B) in the case of any taxable year beginning before January 1, 2027 — (i) the amount of the qualified retirement contributions (as defined in section 219(e)) made by the eligible individual, (ii) the amount of— (I) any elective deferrals (as defined in section 402(g)(3)) of such individual, and (II) any elective deferral of compensation by such individual under an eligible deferred …

“building envelope component” applies in that section

The term “building envelope component” means— (A) any insulation material or system, including air sealing material or system, which is specifically and primarily designed to reduce the heat loss or gain of a dwelling unit when installed in or on such dwelling unit, (B) exterior windows (including skylights), and (C) exterior doors. (4) Manufactured homes included

“dwelling unit” applies in that section

The term “dwelling unit” includes a manufactured home which conforms to Federal Manufactured Home Construction and Safety Standards (part 3280 of title 24, Code of Federal Regulations). (d) Residential energy property expenditures For purposes of this section— (1) In general

“eligible fuel” applies in that section

the term “eligible fuel” means— (A) biodiesel and renewable diesel (within the meaning of section 40A), (B) second generation biofuel (within the meaning of section 40), and (C) transportation fuel (as defined in section 45Z(d)(5)). (e) Home energy audits For purposes of this section,

“energy efficient building envelope component” applies in that section

The term “energy efficient building envelope component” means a building envelope component which meets— (A) in the case of an exterior window or skylight, Energy Star most efficient certification requirements, (B) in the case of an exterior door, applicable Energy Star requirements, and (C) in the case of any other component, the prescriptive criteria for such component established by the most recent International Energy Conservation Code standard in effect as of the beginning of the calendar year which is 2 years prior to the calendar year in which such component is placed in service. (3) Building envelope component

“home energy audit” applies in that section

the term “home energy audit” means an inspection and written report with respect to a dwelling unit located in the United States and owned or used by the taxpayer as the taxpayer’s principal residence (within the meaning of section 121) which— (1) identifies the most significant and cost-effective energy efficiency improvements with respect to such dwelling unit, including an estimate of the energy and cost savings with respect to each such improvement, and (2) is conducted and prepared by a home energy auditor that meets the certification or other requirements specified by the Secretary in regulations or other guidance (as prescribed by the Secretary not later than 365 days after the date …

“qualified energy efficiency improvements” applies in that section

The term “qualified energy efficiency improvements” means any energy efficient building envelope component, if— (A) such component is installed in or on a dwelling unit located in the United States and owned and used by the taxpayer as the taxpayer’s principal residence (within the meaning of section 121), (B) the original use of such component commences with the taxpayer, and (C) such component reasonably can be expected to remain in use for at least 5 years. (2) Energy efficient building envelope component

“qualified energy property” applies in that section

The term “qualified energy property” means any of the following: (A) Any of the following which meet or exceed the highest efficiency tier (not including any advanced tier) established by the Consortium for Energy Efficiency which is in effect as of the beginning of the calendar year in which the property is placed in service: (i) An electric or natural gas heat pump water heater. (ii) An electric or natural gas heat pump. (iii) A central air conditioner. (iv) A natural gas, propane, or oil water heater. (v) A natural gas, propane, or oil furnace or hot water boiler.

“qualified manufacturer” applies in that section

the term “qualified manufacturer” means any manufacturer of specified property which enters into an agreement with the Secretary which provides that such manufacturer will— (A) assign a product identification number to each item of specified property produced by such manufacturer utilizing a methodology that will ensure that such number (including any alphanumeric) is unique to each such item (by utilizing numbers or letters which are unique to such manufacturer or by such other method as the Secretary may provide), (B) label such item with such number in such manner as the Secretary may provide, and (C) make periodic written reports to the Secretary (at such times and in such manner as the …

“qualified product identification number” applies in that section

the term “qualified product identification number” means, with respect to any item of specified property, the product identification number assigned to such item by the qualified manufacturer pursuant to the methodology referred to in paragraph (3). (3) Qualified manufacturer For purposes of this section,

“residential energy property expenditures” applies in that section

The term “residential energy property expenditures” means expenditures made by the taxpayer for qualified energy property which is— (A) installed on or in connection with a dwelling unit located in the United States and used as a residence by the taxpayer, and (B) originally placed in service by the taxpayer. Such term includes expenditures for labor costs properly allocable to the onsite preparation, assembly, or original installation of the property. (2) Qualified energy property

“specified property” applies in that section

the term “specified property” means any qualified energy property and any property described in subparagraph (B) or (C) of subsection (c)(3). (i) Termination This section shall not apply with respect to any property placed in service after December 31, 2025 .

“condominium management association” applies in that section

the term “condominium management association” means an organization which meets the requirements of paragraph (1) of section 528(c) (other than subparagraph (E) thereof) with respect to a condominium project substantially all of the units of which are used as residences. (7) Allocation in certain cases If less than 80 percent of the use of an item is for nonbusiness purposes, only that portion of the expenditures for such item which is properly allocable to use for nonbusiness purposes shall be taken into account.

“qualified battery storage technology expenditure” applies in that section

The term “qualified battery storage technology expenditure” means an expenditure for battery storage technology which— (A) is installed in connection with a dwelling unit located in the United States and used as a residence by the taxpayer, and (B) has a capacity of not less than 3 kilowatt hours. (e) Special rules For purposes of this section— (1) Labor costs Expenditures for labor costs properly allocable to the onsite preparation, assembly, or original installation of the property described in subsection (d) and for piping or wiring to interconnect such property to the dwelling unit shall be taken into account for purposes of this section.

“qualified fuel cell property expenditure” applies in that section

The term “qualified fuel cell property expenditure” means an expenditure for qualified fuel cell property (as defined in section 48(c)(1), without regard to subparagraph (D) thereof) installed on or in connection with a dwelling unit located in the United States and used as a principal residence (within the meaning of section 121) by the taxpayer. (4) Qualified small wind energy property expenditure

“qualified geothermal heat pump property” applies in that section

The term “qualified geothermal heat pump property” means any equipment which— (i) uses the ground or ground water as a thermal energy source to heat the dwelling unit referred to in subparagraph (A) or as a thermal energy sink to cool such dwelling unit, and (ii) meets the requirements of the Energy Star program which are in effect at the time that the expenditure for such equipment is made. (6) Qualified battery storage technology expenditure

“qualified geothermal heat pump property expenditure” applies in that section

The term “qualified geothermal heat pump property expenditure” means an expenditure for qualified geothermal heat pump property installed on or in connection with a dwelling unit located in the United States and used as a residence by the taxpayer. (B) Qualified geothermal heat pump property

“qualified small wind energy property expenditure” applies in that section

The term “qualified small wind energy property expenditure” means an expenditure for property which uses a wind turbine to generate electricity for use in connection with a dwelling unit located in the United States and used as a residence by the taxpayer. (5) Qualified geothermal heat pump property expenditure (A) In general

“qualified solar electric property expenditure” applies in that section

The term “qualified solar electric property expenditure” means an expenditure for property which uses solar energy to generate electricity for use in a dwelling unit located in the United States and used as a residence by the taxpayer. (3) Qualified fuel cell property expenditure

“qualified solar water heating property expenditure” applies in that section

The term “qualified solar water heating property expenditure” means an expenditure for property to heat water for use in a dwelling unit located in the United States and used as a residence by the taxpayer if at least half of the energy used by such property for such purpose is derived from the sun. (2) Qualified solar electric property expenditure

“capacity” applies in that section

The terms “motor vehicle” and “capacity” have the meaning given such terms in paragraphs (2) and (4) of section 30D(d), respectively. (d) VIN number requirement No credit shall be allowed under subsection (a) with respect to any vehicle unless the taxpayer includes the vehicle identification number of such vehicle on the return of tax for the taxable year. (e) Application of certain rules For purposes of this section, rules similar to the rules of section 30D(f) (without regard to paragraph (10) or (11) thereof) shall apply for purposes of this section. (f) Transfer of credit Rules similar to the rules of section 30D(g) shall apply.

“modified adjusted gross income” applies in that section

the term “modified adjusted gross income” means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933. (c) Definitions For purposes of this section— (1) Previously-owned clean vehicle

“motor vehicle” applies in that section

The terms “motor vehicle” and “capacity” have the meaning given such terms in paragraphs (2) and (4) of section 30D(d), respectively. (d) VIN number requirement No credit shall be allowed under subsection (a) with respect to any vehicle unless the taxpayer includes the vehicle identification number of such vehicle on the return of tax for the taxable year. (e) Application of certain rules For purposes of this section, rules similar to the rules of section 30D(f) (without regard to paragraph (10) or (11) thereof) shall apply for purposes of this section. (f) Transfer of credit Rules similar to the rules of section 30D(g) shall apply.

“previously-owned clean vehicle” applies in that section

The term “previously-owned clean vehicle” means, with respect to a taxpayer, a motor vehicle— (A) the model year of which is at least 2 years earlier than the calendar year in which the taxpayer acquires such vehicle, (B) the original use of which commences with a person other than the taxpayer, (C) which is acquired by the taxpayer in a qualified sale, and (D) which— (i) meets the requirements of subparagraphs (C), (D), (E), (F), and (H) (except for clause (iv) thereof) of section 30D(d)(1), or (ii) is a motor vehicle which— (I) satisfies the requirements under subparagraphs (A) and (B) of section 30B(b)(3), and (II) has a gross vehicle weight rating of less than 14,000 pounds.

“qualified buyer” applies in that section

The term “qualified buyer” means, with respect to a sale of a motor vehicle, a taxpayer— (A) who is an individual, (B) who purchases such vehicle for use and not for resale, (C) with respect to whom no deduction is allowable with respect to another taxpayer under section 151, and (D) who has not been allowed a credit under this section for any sale during the 3-year period ending on the date of the sale of such vehicle. (4) Motor vehicle; capacity

“qualified sale” applies in that section

The term “qualified sale” means a sale of a motor vehicle— (A) by a dealer (as defined in section 30D(g)(8)), (B) for a sale price which does not exceed $25,000, and (C) which is the first transfer since the date of the enactment of this section to a qualified buyer other than the person with whom the original use of such vehicle commenced. (3) Qualified buyer

“covered State” applies in that section

The term “covered State” means one of the States, or the District of Columbia, that, for a calendar year, voluntarily elects to participate under this section and to identify scholarship granting organizations in the State, in accordance with subsection (g). (2) Eligible student

“eligible student” applies in that section

The term “eligible student” means an individual who— (A) is a member of a household with an income which, for the calendar year prior to the date of the application for a scholarship, is not greater than 300 percent of the area median gross income (as such term is used in section 42), and (B) is eligible to enroll in a public elementary or secondary school. (3) Qualified contribution

“qualified contribution” applies in that section

The term “qualified contribution” means a charitable contribution of cash to a scholarship granting organization that uses the contribution to fund scholarships for eligible students solely within the State in which the organization is listed pursuant to subsection (g). (4) Qualified elementary or secondary education expense

“qualified elementary or secondary education expense” applies in that section

The term “qualified elementary or secondary education expense” means any expense of an eligible student which is described in section 530(b)(3)(A). (5) Scholarship granting organization

“scholarship granting organization” applies in that section

The term “scholarship granting organization” means any organization— (A) which— (i) is described in section 501(c)(3) and exempt from tax under section 501(a), and (ii) is not a private foundation, (B) which prevents the co-mingling of qualified contributions with other amounts by maintaining one or more separate accounts exclusively for qualified contributions, (C) which satisfies the requirements of subsection (d), and (D) which is included on the list submitted for the applicable covered State under subsection (g) for the applicable year.

“regular tax liability” applies throughout its part

The term “regular tax liability” means the tax imposed by this chapter for the taxable year. (2) Exception for certain taxes For purposes of paragraph (1), any tax imposed by any of the following provisions shall not be treated as tax imposed by this chapter: (A) section 55 (relating to minimum tax), (B) section 59A (relating to base erosion and anti-abuse tax), (C) subsection (m)(5)(B), (q), (t), or (v) of section 72 (relating to additional taxes on certain distributions), (D) section 143(m) (relating to recapture of proration of Federal subsidy from use of mortgage bonds and mortgage credit certificates), (E) section 530(d)(4) (relating to additional tax on certain distributions from …

“tentative minimum tax” applies throughout its part

the term “tentative minimum tax” means the amount determined under section 55(b)(1).

“75/25 mixed-fuel vehicle” applies in that section

the term “75/25 mixed-fuel vehicle” means a mixed-fuel vehicle which operates using at least 75 percent alternative fuel and not more than 25 percent petroleum-based fuel. (D) 90/10 mixed-fuel vehicle For purposes of this subsection,

“90/10 mixed-fuel vehicle” applies in that section

the term “90/10 mixed-fuel vehicle” means a mixed-fuel vehicle which operates using at least 90 percent alternative fuel and not more than 10 percent petroleum-based fuel. (f) Limitation on number of new qualified hybrid and advanced lean-burn technology vehicles eligible for credit (1) In general In the case of a qualified vehicle sold during the phaseout period, only the applicable percentage of the credit otherwise allowable under subsection (c) or (d) shall be allowed.

“alternative fuel” applies in that section

The term “alternative fuel” means compressed natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen, and any liquid at least 85 percent of the volume of which consists of methanol. (5) Credit for mixed-fuel vehicles (A) In general In the case of a mixed-fuel vehicle placed in service by the taxpayer during the taxable year, the credit determined under this subsection is an amount equal to— (i) in the case of a 75/25 mixed-fuel vehicle, 70 percent of the credit which would have been allowed under this subsection if such vehicle was a qualified alternative fuel motor vehicle, and (ii) in the case of a 90/10 mixed-fuel vehicle, 90 percent of the credit which would have been …

“automobile” applies in that section

The terms “automobile”, “passenger automobile”, “medium duty passenger vehicle”, “light truck”, and “manufacturer” have the meanings given such terms in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act ( 42 U.S.C. 7521 et seq.). (4) Reduction in basis For purposes of this subtitle, the basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit so allowed (determined without regard to subsection (g)).

“comparable vehicle” applies in that section

the term “comparable vehicle” means, with respect to any new qualified hybrid motor vehicle, any vehicle which is powered solely by a gasoline or diesel internal combustion engine and which is comparable in weight, size, and use to such vehicle. (v) Certification A certification described in clause (i) shall be made by the manufacturer and shall be determined in accordance with guidance prescribed by the Secretary. Such guidance shall specify procedures and methods for calculating fuel economy savings and incremental hybrid costs. (3) New qualified hybrid motor vehicle For purposes of this subsection— (A) In general

“consumable fuel” applies in that section

the term “consumable fuel” means any solid, liquid, or gaseous matter which releases energy when consumed by an auxiliary power unit. (C) Maximum available power (i) Certain passenger automobiles and light trucks In the case of a vehicle to which paragraph (2)(A) applies,

“lifetime fuel savings” applies in that section

the term “lifetime fuel savings” means, in the case of any new advanced lean burn technology motor vehicle, an amount equal to the excess (if any) of— (A) 120,000 divided by the 2002 model year city fuel economy for the vehicle inertia weight class, over (B) 120,000 divided by the city fuel economy for such vehicle. (d) New qualified hybrid motor vehicle credit (1) In general For purposes of subsection (a), the new qualified hybrid motor vehicle credit determined under this subsection for the taxable year is the credit amount determined under paragraph (2) with respect to a new qualified hybrid motor vehicle placed in service by the taxpayer during the taxable year.

“light truck” applies in that section

The terms “automobile”, “passenger automobile”, “medium duty passenger vehicle”, “light truck”, and “manufacturer” have the meanings given such terms in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act ( 42 U.S.C. 7521 et seq.). (4) Reduction in basis For purposes of this subtitle, the basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit so allowed (determined without regard to subsection (g)).

“manufacturer” applies in that section

The terms “automobile”, “passenger automobile”, “medium duty passenger vehicle”, “light truck”, and “manufacturer” have the meanings given such terms in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act ( 42 U.S.C. 7521 et seq.). (4) Reduction in basis For purposes of this subtitle, the basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit so allowed (determined without regard to subsection (g)).

“maximum available power” applies in that section

the term “maximum available power” means the maximum power available from the rechargeable energy storage system, during a standard 10 second pulse power or equivalent test, divided by such maximum power and the SAE net power of the heat engine. (ii) Other motor vehicles In the case of a vehicle to which paragraph (2)(B) applies,

“medium duty passenger vehicle” applies in that section

The terms “automobile”, “passenger automobile”, “medium duty passenger vehicle”, “light truck”, and “manufacturer” have the meanings given such terms in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act ( 42 U.S.C. 7521 et seq.). (4) Reduction in basis For purposes of this subtitle, the basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit so allowed (determined without regard to subsection (g)).

“mixed-fuel vehicle” applies in that section

the term “mixed-fuel vehicle” means any motor vehicle described in subparagraph (C) or (D) of paragraph (3), which— (i) is certified by the manufacturer as being able to perform efficiently in normal operation on a combination of an alternative fuel and a petroleum-based fuel, (ii) either— (I) has received a certificate of conformity under the Clean Air Act, or (II) has received an order certifying the vehicle as meeting the same requirements as vehicles which may be sold or leased in California and meets or exceeds the low emission vehicle standard under section 88.105–94 of title 40, Code of Federal Regulations, for that make and model year vehicle, (iii) the original use of which …

“motor vehicle” applies in that section

The term “motor vehicle” means any vehicle which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails) and which has at least 4 wheels. (2) City fuel economy The city fuel economy with respect to any vehicle shall be measured in a manner which is substantially similar to the manner city fuel economy is measured in accordance with procedures under part 600 of subchapter Q of chapter I of title 40, Code of Federal Regulations, as in effect on the date of the enactment of this section. (3) Other terms

“new advanced lean burn technology motor vehicle” applies in that section

the term “new advanced lean burn technology motor vehicle” means a passenger automobile or a light truck— (A) with an internal combustion engine which— (i) is designed to operate primarily using more air than is necessary for complete combustion of the fuel, (ii) incorporates direct injection, (iii) achieves at least 125 percent of the 2002 model year city fuel economy, (iv) for 2004 and later model vehicles, has received a certificate that such vehicle meets or exceeds— (I) in the case of a vehicle having a gross vehicle weight rating of 6,000 pounds or less, the Bin 5 Tier II emission standard established in regulations prescribed by the Administrator of the Environmental Protection …

“new qualified alternative fuel motor vehicle” applies in that section

The term “new qualified alternative fuel motor vehicle” means any motor vehicle— (i) which is only capable of operating on an alternative fuel, (ii) the original use of which commences with the taxpayer, (iii) which is acquired by the taxpayer for use or lease, but not for resale, and (iv) which is made by a manufacturer. (B) Alternative fuel

“new qualified fuel cell motor vehicle” applies in that section

the term “new qualified fuel cell motor vehicle” means a motor vehicle— (A) which is propelled by power derived from 1 or more cells which convert chemical energy directly into electricity by combining oxygen with hydrogen fuel which is stored on board the vehicle in any form and may or may not require reformation prior to use, (B) which, in the case of a passenger automobile or light truck, has received on or after the date of the enactment of this section a certificate that such vehicle meets or exceeds the Bin 5 Tier II emission level established in regulations prescribed by the Administrator of the Environmental Protection Agency under section 202(i) of the Clean Air Act for that make …

“new qualified hybrid motor vehicle” applies in that section

The term “new qualified hybrid motor vehicle” means a motor vehicle— (i) which draws propulsion energy from onboard sources of stored energy which are both— (I) an internal combustion or heat engine using consumable fuel, and (II) a rechargeable energy storage system, (ii) which, in the case of a vehicle to which paragraph (2)(A) applies, has received a certificate of conformity under the Clean Air Act and meets or exceeds the equivalent qualifying California low emission vehicle standard under section 243(e)(2) of the Clean Air Act for that make and model year, and (I) in the case of a vehicle having a gross vehicle weight rating of 6,000 pounds or less, the Bin 5 Tier II emission standard …

“passenger automobile” applies in that section

The terms “automobile”, “passenger automobile”, “medium duty passenger vehicle”, “light truck”, and “manufacturer” have the meanings given such terms in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act ( 42 U.S.C. 7521 et seq.). (4) Reduction in basis For purposes of this subtitle, the basis of any property for which a credit is allowable under subsection (a) shall be reduced by the amount of such credit so allowed (determined without regard to subsection (g)).

“qualified vehicle” applies in that section

the term “qualified vehicle” means any new qualified hybrid motor vehicle (described in subsection (d)(2)(A)) and any new advanced lean burn technology motor vehicle. (g) Application with other credits (1) Business credit treated as part of general business credit So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to property of a character subject to an allowance for depreciation shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)).

“total traction power” applies in that section

the term “total traction power” means the sum of the peak power from the rechargeable energy storage system and the heat engine peak power of the vehicle, except that if such storage system is the sole means by which the vehicle can be driven, the total traction power is the peak power of such storage system. (D) Exclusion of plug-in vehicles Any vehicle with respect to which a credit is allowable under section 30D (determined without regard to subsection (c) thereof) shall not be taken into account under this section.

“vehicle inertia weight class” applies in that section

the term “vehicle inertia weight class” has the same meaning as when defined in regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act ( 42 U.S.C. 7521 et seq.). (3) New qualified fuel cell motor vehicle For purposes of this subsection,

“eligible census tract” applies in that section

the term “eligible census tract” means any population census tract which— (I) is described in section 45D(e), or (II) is not an urban area. (ii) Urban area For purposes of clause (i)(II),

“qualified alternative fuel vehicle refueling project” applies in that section

the term “qualified alternative fuel vehicle refueling project” means a project consisting of one or more properties that are part of a single project. (C) Project requirements A project meets the requirements of this subparagraph if it is one of the following: (i) A project the construction of which begins prior to the date that is 60 days after the Secretary publishes guidance with respect to the requirements of paragraphs (2)(A) and (3). (ii) A project which satisfies the requirements of paragraphs (2)(A) and (3).

“qualified alternative fuel vehicle refueling property” applies in that section

The term “qualified alternative fuel vehicle refueling property” has the same meaning as the term “qualified clean-fuel vehicle refueling property” would have under section 179A if— (A) paragraph (1) of section 179A(d) did not apply to property installed on property which is used as the principal residence (within the meaning of section 121) of the taxpayer, and (B) only the following were treated as clean-burning fuels for purposes of section 179A(d): (i) Any fuel at least 85 percent of the volume of which consists of one or more of the following: ethanol, natural gas, compressed natural gas, liquified natural gas, liquefied petroleum gas, or hydrogen.

“urban area” applies in that section

the term “urban area” means a census tract (as defined by the Bureau of the Census) which, according to the most recent decennial census, has been designated as an urban area by the Secretary of Commerce. (d) Application with other credits (1) Business credit treated as part of general business credit So much of the credit which would be allowed under subsection (a) for any taxable year (determined without regard to this subsection) that is attributable to property of a character subject to an allowance for depreciation shall be treated as a credit listed in section 38(b) for such taxable year (and not allowed under subsection (a)).

“capacity” applies in that section

The term “capacity” means, with respect to any battery, the quantity of electricity which the battery is capable of storing, expressed in kilowatt hours, as measured from a 100 percent state of charge to a 0 percent state of charge. (5) Final assembly For purposes of paragraph (1)(G),

“dealer” applies in that section

the term “dealer” means a person licensed by a State, the District of Columbia, the Commonwealth of Puerto Rico, any other territory or possession of the United States, an Indian tribal government, or any Alaska Native Corporation (as defined in section 3 of the Alaska Native Claims Settlement Act ( 43 U.S.C. 1602(m) ) 1 to engage in the sale of vehicles. (9) Indian tribal government For purposes of this subsection,

“eligible entity” applies in that section

the term “eligible entity” means, with respect to the vehicle for which the credit is allowed under subsection (a), the dealer which sold such vehicle to the taxpayer and has— (A) subject to paragraph (4), registered with the Secretary for purposes of this paragraph, at such time, and in such form and manner, as the Secretary may prescribe, (B) prior to the election described in paragraph (1) and not later than at the time of such sale, disclosed to the taxpayer purchasing such vehicle— (i) the manufacturer’s suggested retail price, (ii) the value of the credit allowed and any other incentive available for the purchase of such vehicle, and (iii) the amount provided by the dealer to such …

“final assembly” applies in that section

the term “final assembly” means the process by which a manufacturer produces a new clean vehicle at, or through the use of, a plant, factory, or other place from which the vehicle is delivered to a dealer or importer with all component parts necessary for the mechanical operation of the vehicle included with the vehicle, whether or not the component parts are permanently installed in or on the vehicle. (6) New qualified fuel cell motor vehicle For purposes of this section,

“Indian tribal government” applies in that section

the term “Indian tribal government” means the recognized governing body of any Indian or Alaska Native tribe, band, nation, pueblo, village, community, component band, or component reservation, individually identified (including parenthetically) in the list published most recently as of the date of enactment of this subsection pursuant to section 104 of the Federally Recognized Indian Tribe List Act of 1994 ( 25 U.S.C. 5131 ).

“modified adjusted gross income” applies in that section

the term “modified adjusted gross income” means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933. (11) Manufacturer’s suggested retail price limitation (A) In general No credit shall be allowed under subsection (a) for a vehicle with a manufacturer’s suggested retail price in excess of the applicable limitation. (B) Applicable limitation For purposes of subparagraph (A), the applicable limitation for each vehicle classification is as follows: (i) Vans In the case of a van, $80,000. (ii) Sport utility vehicles In the case of a sport utility vehicle, $80,000. (iii) Pickup trucks In the case of a pickup truck, $80,000.

“motor vehicle” applies in that section

The term “motor vehicle” means any vehicle which is manufactured primarily for use on public streets, roads, and highways (not including a vehicle operated exclusively on a rail or rails) and which has at least 4 wheels. (3) Qualified manufacturer

“new clean vehicle” applies in that section

The term “new clean vehicle” means a motor vehicle— (A) the original use of which commences with the taxpayer, (B) which is acquired for use or lease by the taxpayer and not for resale, (C) which is made by a qualified manufacturer, (D) which is treated as a motor vehicle for purposes of title II of the Clean Air Act, (E) which has a gross vehicle weight rating of less than 14,000 pounds, (F) which is propelled to a significant extent by an electric motor which draws electricity from a battery which— (i) has a capacity of not less than 7 kilowatt hours, and (ii) is capable of being recharged from an external source of electricity, (G) the final assembly of which occurs within North America, …

“qualified manufacturer” applies in that section

The term “qualified manufacturer” means any manufacturer (within the meaning of the regulations prescribed by the Administrator of the Environmental Protection Agency for purposes of the administration of title II of the Clean Air Act ( 42 U.S.C. 7521 et seq.)) which enters into a written agreement with the Secretary under which such manufacturer agrees to make periodic written reports to the Secretary (at such times and in such manner as the Secretary may provide) providing vehicle identification numbers and such other information related to each vehicle manufactured by such manufacturer as the Secretary may require. (4) Battery capacity

“applicable minimum age” applies in that section

the term “applicable minimum age” means— (i) except as otherwise provided in this subparagraph, age 19, (ii) in the case of a specified student (other than a qualified former foster youth or a qualified homeless youth), age 24, and (iii) in the case of a qualified former foster youth or a qualified homeless youth, age 18. (C) Specified student For purposes of this paragraph,

“disqualified income” applies in that section

the term “disqualified income” means— (A) interest or dividends to the extent includible in gross income for the taxable year, (B) interest received or accrued during the taxable year which is exempt from tax imposed by this chapter, (C) the excess (if any) of— (i) gross income from rents or royalties not derived in the ordinary course of a trade or business, over (ii) the sum of— (I) the deductions (other than interest) which are clearly and directly allocable to such gross income, plus (II) interest deductions properly allocable to such gross income, (D) the capital gain net income (as defined in section 1222) of the taxpayer for such taxable year, and (E) the excess (if any) of— (i) the …

“earned income” applies throughout its chapter

The term “earned income” means— (i) wages, salaries, tips, and other employee compensation, but only if such amounts are includible in gross income for the taxable year, plus (ii) the amount of the taxpayer’s net earnings from self-employment for the taxable year (within the meaning of section 1402(a)), but such net earnings shall be determined with regard to the deduction allowed to the taxpayer by section 164(f).

“eligible individual” applies in that section

The term “eligible individual” means— (i) any individual who has a qualifying child for the taxable year, or (ii) any other individual who does not have a qualifying child for the taxable year, if— (I) such individual’s principal place of abode is in the United States for more than one-half of such taxable year, (II) such individual (or, if the individual is married, either the individual or the individual’s spouse) has attained age 25 but not attained age 65 before the close of the taxable year, and (III) such individual is not a dependent for whom a deduction is allowable under section 151 to another taxpayer for any taxable year beginning in the same calendar year as such taxable year.

“extended active duty” applies throughout its chapter

the term “extended active duty” means any period of active duty pursuant to a call or order to such duty for a period in excess of 90 days or for an indefinite period. (d) Married individuals (1) In general In the case of an individual who is married, this section shall apply only if a joint return is filed for the taxable year under section 6013. (2) Determination of marital status For purposes of this section— (A) In general Except as provided in subparagraph (B), marital status shall be determined under section 7703(a).

“passive activity” applies in that section

the term “passive activity” has the meaning given such term by section 469. (j) Inflation adjustments (1) In general In the case of any taxable year beginning after 2015 (2021 in the case of the dollar amount in subsection (i)(1)), each of the dollar amounts in subsections (b)(2) and (i)(1) shall be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting in subparagraph (A)(ii) thereof— (i) in the case of amounts in subsection (b)(2)(A), “calendar year 1995” for “calendar year 2016”, (ii) in the case of the $5,000 amount in …

“qualified former foster youth” applies in that section

the term “qualified former foster youth” means an individual who— (i) on or after the date that such individual attained age 14, was in foster care provided under the supervision or administration of an entity administering (or eligible to administer) a plan under part B or part E of title IV of the Social Security Act (without regard to whether Federal assistance was provided with respect to such child under such part E), and (ii) provides (in such manner as the Secretary may provide) consent for entities which administer a plan under part B or part E of title IV of the Social Security Act to disclose to the Secretary information related to the status of such individual as a qualified …

“qualified homeless youth” applies in that section

the term “qualified homeless youth” means, with respect to any taxable year, an individual who certifies, in a manner as provided by the Secretary, that such individual is either an unaccompanied youth who is a homeless child or youth, or is unaccompanied, at risk of homelessness, and self-supporting. (2) Elimination of maximum age for credit Subsection (c)(1)(A)(ii)(II) shall be applied without regard to the phrase “but not attained age 65”. (3) Increase in credit and phaseout percentages The table contained in subsection (b)(1) shall be applied by substituting “15.3” for “7.65” each place it appears therein.

“qualifying child” applies throughout its chapter

The term “qualifying child” means a qualifying child of the taxpayer (as defined in section 152(c), determined without regard to paragraph (1)(D) thereof and section 152(e)). (B) Married individual The term “qualifying child” shall not include an individual who is married as of the close of the taxpayer’s taxable year unless the taxpayer is entitled to a deduction under section 151 for such taxable year with respect to such individual (or would be so entitled but for section 152(e)). (C) Place of abode For purposes of subparagraph (A), the requirements of section 152(c)(1)(B) shall be met only if the principal place of abode is in the United States.

“specified student” applies in that section

the term “specified student” means, with respect to any taxable year, an individual who is an eligible student (as defined in section 25A(b)(3)) during at least 5 calendar months during the taxable year. (D) Qualified former foster youth For purposes of this paragraph,

“eligible alternative TAA recipient” applies in that section

The term “eligible alternative TAA recipient” means, with respect to any month, any individual who— (A) is a worker described in section 246(a)(3)(B) of the Trade Act of 1974 who is participating in the program established under section 246(a)(1) of such Act, and (B) is receiving a benefit for such month under section 246(a)(2) of such Act. An individual shall continue to be treated as an eligible alternative TAA recipient during the first month that such individual would otherwise cease to be an eligible alternative TAA recipient by reason of the preceding sentence. (4) Eligible PBGC pension recipient

“eligible coverage month” applies in that section

The term “eligible coverage month” means any month if— (A) as of the first day of such month, the taxpayer— (i) is an eligible individual, (ii) is covered by qualified health insurance, the premium for which is paid by the taxpayer, (iii) does not have other specified coverage, and (iv) is not imprisoned under Federal, State, or local authority, and (B) such month begins more than 90 days after the date of the enactment of the Trade Act of 2002, and before January 1, 2022 . (2) Joint returns In the case of a joint return, the requirements of paragraph (1)(A) shall be treated as met with respect to any month if at least 1 spouse satisfies such requirements.

“eligible individual” applies in that section

The term “eligible individual” means— (A) an eligible TAA recipient, (B) an eligible alternative TAA recipient, and (C) an eligible PBGC pension recipient. (2) Eligible TAA recipient (A) In general Except as provided in subparagraph (B),

“eligible PBGC pension recipient” applies in that section

The term “eligible PBGC pension recipient” means, with respect to any month, any individual who— (A) has attained age 55 as of the first day of such month, and (B) is receiving a benefit for such month any portion of which is paid by the Pension Benefit Guaranty Corporation under title IV of the Employee Retirement Income Security Act of 1974. (d) Qualifying family member For purposes of this section— (1) In general

“eligible TAA recipient” applies in that section

the term “eligible TAA recipient” means, with respect to any month, any individual who is receiving for any day of such month a trade readjustment allowance under chapter 2 of title II of the Trade Act of 1974 or who would be eligible to receive such allowance if section 231 of such Act were applied without regard to subsection (a)(3)(B) of such section. An individual shall continue to be treated as an eligible TAA recipient during the first month that such individual would otherwise cease to be an eligible TAA recipient by reason of the preceding sentence. (B) Special rule In the case of any eligible coverage month beginning after the date of the enactment of this paragraph,

“individual health insurance” applies in that section

the term “individual health insurance” means any insurance which constitutes medical care offered to individuals other than in connection with a group health plan and does not include Federal- or State-based health insurance coverage. (K) Coverage under an employee benefit plan funded by a voluntary employees’ beneficiary association (as defined in section 501(c)(9)) established pursuant to an order of a bankruptcy court, or by agreement with an authorized representative, as provided in section 1114 of title 11 , United States Code.

“qualified health insurance” applies in that section

The term “qualified health insurance” means any of the following: (A) Coverage under a COBRA continuation provision (as defined in section 9832(d)(1)). (B) State-based continuation coverage provided by the State under a State law that requires such coverage. (C) Coverage offered through a qualified State high risk pool (as defined in section 2744(c)(2) of the Public Health Service Act). (D) Coverage under a health insurance program offered for State employees. (E) Coverage under a State-based health insurance program that is comparable to the health insurance program offered for State employees.

“qualifying family member” applies in that section

The term “qualifying family member” means— (A) the taxpayer’s spouse, and (B) any dependent of the taxpayer with respect to whom the taxpayer is entitled to a deduction under section 151(c). Such term does not include any individual who has other specified coverage. (2) Special dependency test in case of divorced parents, etc. If section 152(e) applies to any child with respect to any calendar year, in the case of any taxable year beginning in such calendar year, such child shall be treated as described in paragraph (1)(B) with respect to the custodial parent (as defined in section 152(e)(4)(A)) and not with respect to the noncustodial parent.

“qualifying individual” applies in that section

the term “qualifying individual” means— (i) an eligible individual for whom, as of the date on which the individual seeks to enroll in the coverage described in subparagraphs (B) through (H) of paragraph (1), the aggregate of the periods of creditable coverage (as defined in section 9801(c)) is 3 months or longer and who, with respect to any month, meets the requirements of clauses (iii) and (iv) of subsection (b)(1)(A); and (ii) the qualifying family members of such eligible individual.

“first-time homebuyer” applies in that section

The term “first-time homebuyer” means any individual if such individual (and if married, such individual’s spouse) had no present ownership interest in a principal residence during the 3-year period ending on the date of the purchase of the principal residence to which this section applies. (2) Principal residence

“modified adjusted gross income” applies in that section

the term “modified adjusted gross income” means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933. (3) Limitation based on purchase price No credit shall be allowed under subsection (a) for the purchase of any residence if the purchase price of such residence exceeds $800,000. (4) Age limitation No credit shall be allowed under subsection (a) with respect to the purchase of any residence unless the taxpayer has attained age 18 as of the date of such purchase.

“principal residence” applies in that section

The term “principal residence” has the same meaning as when used in section 121. (3) Purchase (A) In general

“purchase” applies in that section

The term “purchase” means any acquisition, but only if— (i) the property is not acquired from a person related to the person acquiring such property (or, if married, such individual’s spouse), and (ii) the basis of the property in the hands of the person acquiring such property is not determined— (I) in whole or in part by reference to the adjusted basis of such property in the hands of the person from whom acquired, or (II) under section 1014(a) (relating to property acquired from a decedent). (B) Construction A residence which is constructed by the taxpayer shall be treated as purchased by the taxpayer on the date the taxpayer first occupies such residence. (4) Purchase price

“purchase price” applies in that section

The term “purchase price” means the adjusted basis of the principal residence on the date such residence is purchased. (5) Related persons A person shall be treated as related to another person if the relationship between such persons would result in the disallowance of losses under section 267 or 707(b) (but, in applying section 267(b) and (c) for purposes of this section, paragraph (4) of section 267(c) shall be treated as providing that the family of an individual shall include only his spouse, ancestors, and lineal descendants).

“qualified official extended duty service” applies in that section

the term “qualified official extended duty service” means service on qualified official extended duty as— (I) a member of the uniformed services, (II) a member of the Foreign Service of the United States, or (III) an employee of the intelligence community. (iii) Definitions Any term used in this subparagraph which is also used in paragraph (9) of section 121(d) shall have the same meaning as when used in such paragraph. (5) Joint returns In the case of a credit allowed under subsection (a) with respect to a joint return, half of such credit shall be treated as having been allowed to each individual filing such return for purposes of this subsection.