Editor's Note:
Pub. L. 117-169 amended
Sec. 45 with delayed effective dates as indicated below.
I.R.C. § 45(a) General Rule —
For purposes of section 38,
the renewable electricity production credit for any taxable year is
an amount equal to the product of—
I.R.C. § 45(a)(1) —
0.3 cents, multiplied by
I.R.C. § 45(a)(2) —
the kilowatt hours of electricity—
I.R.C. § 45(a)(2)(A) —
produced by the taxpayer—
I.R.C. § 45(a)(2)(A)(i) —
from qualified energy resources, and
I.R.C. § 45(a)(2)(A)(ii) —
at a qualified facility during the
10-year period beginning on the date the facility was originally placed
in service, and
I.R.C. § 45(a)(2)(B) —
sold by the taxpayer to an unrelated
person during the taxable year.
I.R.C. § 45(b) Limitations And Adjustments —
I.R.C. § 45(b)(1) Phaseout Of Credit —
The amount of the credit determined under subsection
(a) shall be reduced by an amount which bears the same ratio to the
amount of the credit (determined without regard to this paragraph)
as—
I.R.C. § 45(b)(1)(A) —
the amount by which the reference price
for the calendar year in which the sale occurs exceeds 8 cents, bears
to
I.R.C. § 45(b)(1)(B) —
3 cents.
I.R.C. § 45(b)(2) Credit And Phaseout Adjustment Based On Inflation —
The 0.3 cent amount in subsection (a), the 8 cent amount
in paragraph (1), the $4.375 amount in subsection (e)(8)(A), the $2
amount in subsection (e)(8)(D)(ii)(I), and in subsection (e)(8)(B)(i)
the reference price of fuel used as a feedstock (within the meaning
of subsection (c)(7)(A)) in 2002 shall each be adjusted by multiplying
such amount by the inflation adjustment factor for the calendar year
in which the sale occurs. If the 0.3 cent amount as increased under
the preceding sentence is not a multiple of 0.05 cent, such amount
shall be rounded to the nearest multiple of 0.05 cent. In any other
case, if an amount as increased under this paragraph is not a multiple
of 0.1 cent, such amount shall be rounded to the nearest multiple
of 0.1 cent.
I.R.C. § 45(b)(3) Credit Reduced For Tax-Exempt Bonds —
The amount of the credit determined under subsection
(a) with respect to any facility for any taxable year (determined
after the application of paragraphs (1) and (2)) shall be reduced
by the amount which is the product of the amount so determined for
such year and the lesser of 15 percent or a fraction—
I.R.C. § 45(b)(3)(A) —
the numerator of which is the sum, for
the taxable year and all prior taxable years, of proceeds of an issue
of any obligations the interest on which is exempt from tax under
section 103 and which is used to provide financing for the qualified
facility, and
I.R.C. § 45(b)(3)(B) —
the denominator of which is the aggregate
amount of additions to the capital account for the qualified facility
for the taxable year and all prior taxable years.
The amounts under
the preceding sentence for any taxable year shall be determined as
of the close of the taxable year.
I.R.C. § 45(b)(4) Credit Rate And Period For Electricity Produced And Sold From
Certain Facilities —
Editor's Note: Sec. 45(b)(4)(A), below, before amendment by Pub. L. 117-169, Sec. 13101(j)(1), is effective
for facilities placed in service before January 1, 2023.
I.R.C. § 45(b)(4)(A) Credit Rate —
In the case of electricity produced and sold in any
calendar year after 2003 at any qualified facility described in paragraph
(3), (5), (6), (7), (9), or (11) of subsection (d), the amount in
effect under subsection (a)(1) for such calendar year (determined
before the application of the last two sentences of paragraph (2)
of this subsection) shall be reduced by one-half.
Editor's Note: Sec. 45(b)(4)(A), below, after amendment by Pub. L. 117-169, Sec. 13101(j)(1), is effective
for facilities placed in service after December 31, 2022.
I.R.C. § 45(b)(4)(A) Credit Rate —
In the case of electricity produced and sold in any
calendar year after 2003 at any qualified facility described in paragraph
(3), (5), (6), or (7) of subsection (d), the amount in effect under
subsection (a)(1) for such calendar year (determined before the application
of the last two sentences of paragraph (2) of this subsection) shall
be reduced by one-half.
I.R.C. § 45(b)(4)(B) Credit Period
I.R.C. § 45(b)(4)(B)(i) In General —
Except as provided in clause (ii) or clause (iii), in
the case of any facility described in paragraph (3), (4), (5), (6),
or (7) of subsection (d), the 5-year period beginning on the date
the facility was originally placed in service shall be substituted
for the 10-year period in subsection (a)(2)(A)(ii).
I.R.C. § 45(b)(4)(B)(ii) Certain Open-Loop Biomass Facilities —
In the case of any facility described in subsection
(d)(3)(A)(ii) placed in service before the date of the enactment of
this paragraph, the 5-year period beginning on January 1, 2005, shall
be substituted for the 10-year period in subsection (a)(2)(A)(ii).
I.R.C. § 45(b)(4)(B)(iii) Termination —
Clause (i) shall not apply to any facility placed in
service after the date of the enactment of this clause.
I.R.C. § 45(b)(5) Phaseout Of Credit For Wind Facilities —
In the case of any facility using wind to produce electricity
which is placed in service before January 1, 2022, the amount of the
credit determined under subsection (a) (determined after the application
of paragraphs (1), (2), and (3) and without regard to this paragraph)
shall be reduced by—
I.R.C. § 45(b)(5)(A) —
in the case of any facility the construction
of which begins after December 31, 2016, and before January 1, 2018,
20 percent,
I.R.C. § 45(b)(5)(B) —
in the case of any facility the construction
of which begins after December 31, 2017, and before January 1, 2019,
40 percent,
I.R.C. § 45(b)(5)(C) —
in the case of any facility the construction
of which begins after December 31, 2018, and before January 1, 2020,
60 percent, and
I.R.C. § 45(b)(5)(D) —
in the case of any facility the construction
of which begins after December 31, 2019, and before January 1, 2022,
40 percent.
I.R.C. § 45(b)(6) Increased Credit Amount For Qualified Facilities
I.R.C. § 45(b)(6)(A) In General —
In the case of any qualified facility which satisfies
the requirements of subparagraph (B), the amount of the credit determined
under subsection (a) (determined after the application of paragraphs
(1) through (5) and without regard to this paragraph) shall be equal
to such amount multiplied by 5.
I.R.C. § 45(b)(6)(B) Qualified Facility Requirements —
A qualified facility meets the requirements of this
subparagraph if it is one of the following:
I.R.C. § 45(b)(6)(B)(i) —
A facility with a maximum net output
of less than 1 megawatt (as measured in alternating current).
I.R.C. § 45(b)(6)(B)(ii) —
A facility 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 (7)(A) and
(8).
I.R.C. § 45(b)(6)(B)(iii) —
A facility which satisfies the requirements
of paragraphs (7)(A) and (8).
I.R.C. § 45(b)(7) Prevailing Wage Requirements
I.R.C. § 45(b)(7)(A) In general —
The requirements described in this subparagraph with
respect to any qualified facility are that the taxpayer shall ensure
that any laborers and mechanics employed by the taxpayer or any contractor
or subcontractor in—
I.R.C. § 45(b)(7)(A)(i) —
the construction of such facility, and
I.R.C. § 45(b)(7)(A)(ii) —
with respect to any taxable year, for
any portion of such taxable year which is within the period described
in subsection (a)(2)(A)(ii), the alteration or repair of such facility,
shall be paid wages at rates not
less than the prevailing rates for construction, alteration, or repair
of a similar character in the locality in which such facility is located
as most recently determined by the Secretary of Labor, in accordance
with subchapter IV of chapter 31 of title 40, United States Code.
For purposes of determining an increased credit amount under paragraph
(6)(A) for a taxable year, the requirement under clause (ii) is applied
to such taxable year in which the alteration or repair of the qualified
facility occurs.
I.R.C. § 45(b)(7)(B) Correction And Penalty Related To Failure To Satisfy Wage Requirements
I.R.C. § 45(b)(7)(B)(i) In General —
In the case of any taxpayer which fails to satisfy the
requirement under subparagraph (A) with respect to the construction
of any qualified facility or with respect to the alteration or repair
of a facility in any year during the period described in subparagraph
(A)(ii), such taxpayer shall be deemed to have satisfied such requirement
under such subparagraph with respect to such facility for any year
if, with respect to any laborer or mechanic who was paid wages at
a rate below the rate described in such subparagraph for any period
during such year, such taxpayer—
I.R.C. § 45(b)(7)(B)(i)(I) —
makes payment to such laborer or mechanic
in an amount equal to the sum of—
I.R.C. § 45(b)(7)(B)(i)(I)(aa) —
an amount equal to the difference between—
I.R.C. § 45(b)(7)(B)(i)(I)(aa)(AA) —
the amount of wages paid to such laborer
or mechanic during such period, and
I.R.C. § 45(b)(7)(B)(i)(I)(aa)(BB) —
the amount of wages required to be
paid to such laborer or mechanic pursuant to such subparagraph during
such period, plus
I.R.C. § 45(b)(7)(B)(i)(I)(bb) —
interest on the amount determined under
item (aa) at the underpayment rate established under section 6621
(determined by substituting “6 percentage points” for “3
percentage points” in subsection (a)(2) of such section) for
the period described in such item, and
I.R.C. § 45(b)(7)(B)(i)(II) —
makes payment to the Secretary of a
penalty in an amount equal to the product of—
I.R.C. § 45(b)(7)(B)(i)(II)(aa) —
$5,000, multiplied by
I.R.C. § 45(b)(7)(B)(i)(II)(bb) —
the total number of laborers and mechanics
who were paid wages at a rate below the rate described in subparagraph
(A) for any period during such year.
I.R.C. § 45(b)(7)(B)(ii) Deficiency Procedures Not To Apply —
Subchapter B of chapter 63 (relating to deficiency procedures
for income, estate, gift, and certain excise taxes) shall not apply
with respect to the assessment or collection of any penalty imposed
by this paragraph.
I.R.C. § 45(b)(7)(B)(iii) Intentional Disregard —
If the Secretary determines that any failure described
in clause (i) is due to intentional disregard of the requirements
under subparagraph (A), such clause shall be applied—
I.R.C. § 45(b)(7)(B)(iii)(I) —
in subclause (I), by substituting “three
times the sum” for “the sum”, and
I.R.C. § 45(b)(7)(B)(iii)(II) —
in subclause (II), by substituting “$10,000”
for “5,000” in item (aa) thereof.
I.R.C. § 45(b)(7)(B)(iv) Limitation On Period For Payment —
Pursuant to rules issued by the Secretary, in the case
of a final determination by the Secretary with respect to any failure
by the taxpayer to satisfy the requirement under subparagraph (A),
subparagraph (B)(i) shall not apply unless the payments described
in subclauses (I) and (II) of such subparagraph are made by the taxpayer
on or before the date which is 180 days after the date of such determination.
I.R.C. § 45(b)(8) Apprenticeship Requirements —
The requirements described in this paragraph with respect
to the construction of any qualified facility are as follows:
I.R.C. § 45(b)(8)(A) Labor Hours
I.R.C. § 45(b)(8)(A)(i) Percentage Of Total Labor Hours —
Taxpayers shall ensure that, with respect to the construction
of any qualified facility, not less than the applicable percentage
of the total labor hours of the construction, alteration, or repair
work (including such work performed by any contractor or subcontractor)
with respect to such facility shall, subject to subparagraph (B),
be performed by qualified apprentices.
I.R.C. § 45(b)(8)(A)(ii) Applicable Percentage —
For purposes of clause (i), the applicable percentage
shall be—
I.R.C. § 45(b)(8)(A)(ii)(I) —
in the case of a qualified facility
the construction of which begins before January 1, 2023, 10 percent,
I.R.C. § 45(b)(8)(A)(ii)(II) —
in the case of a qualified facility
the construction of which begins after December 31, 2022, and before
January 1, 2024, 12.5 percent, and
I.R.C. § 45(b)(8)(A)(ii)(III) —
in the case of a qualified facility
the construction of which begins after December 31, 2023, 15 percent.
I.R.C. § 45(b)(8)(B) Apprentice To Journeyworker Ratio —
The requirement under subparagraph (A)(i) shall be subject
to any applicable requirements for apprentice-to-journeyworker ratios
of the Department of Labor or the applicable State apprenticeship
agency.
I.R.C. § 45(b)(8)(C) Participation —
Each taxpayer, contractor, or subcontractor who employs
4 or more individuals to perform construction, alteration, or repair
work with respect to the construction of a qualified facility shall
employ 1 or more qualified apprentices to perform such work.
I.R.C. § 45(b)(8)(D) Exception
I.R.C. § 45(b)(8)(D)(i) In General —
A taxpayer shall not be treated as failing to satisfy
the requirements of this paragraph if such taxpayer—
I.R.C. § 45(b)(8)(D)(i)(I) —
satisfies the requirements described
in clause (ii), or
I.R.C. § 45(b)(8)(D)(i)(II) —
subject to clause (iii), in the case
of any failure by the taxpayer to satisfy the requirement under subparagraphs
(A) and (C) with respect to the construction, alteration, or repair
work on any qualified facility to which subclause (I) does not apply,
makes payment to the Secretary of a penalty in an amount equal to
the product of—
I.R.C. § 45(b)(8)(D)(i)(II)(aa) —
$50, multiplied by
I.R.C. § 45(b)(8)(D)(i)(II)(bb) —
the total labor hours for which the
requirement described in such subparagraph was not satisfied with
respect to the construction, alteration, or repair work on such qualified
facility.
I.R.C. § 45(b)(8)(D)(ii) Good Faith Effort —
For purposes of clause (i), a taxpayer shall be deemed
to have satisfied the requirements under this paragraph with respect
to a qualified facility if such taxpayer has requested qualified apprentices
from a registered apprenticeship program, as defined in section 3131(e)(3)(B),
and—
I.R.C. § 45(b)(8)(D)(ii)(I) —
such request has been denied, provided
that such denial is not the result of a refusal by the taxpayer or
any contractors or subcontractors engaged in the performance of construction,
alteration, or repair work with respect to such qualified facility
to comply with the established standards and requirements of the registered
apprenticeship program, or
I.R.C. § 45(b)(8)(D)(ii)(II) —
the registered apprenticeship program
fails to respond to such request within 5 business days after the
date on which such registered apprenticeship program received such
request.
I.R.C. § 45(b)(8)(D)(iii) Intentional Disregard —
If the Secretary determines that any failure described
in subclause (i)(II) is due to intentional disregard of the requirements
under subparagraphs (A) and (C), subclause (i)(II) shall be applied
by substituting “$500” for “$50” in item (aa)
thereof.
I.R.C. § 45(b)(8)(E) Definitions —
For purposes of this paragraph—
I.R.C. § 45(b)(8)(E)(i) Labor Hours —
The term “labor hours”—
I.R.C. § 45(b)(8)(E)(i)(I) —
means the total number of hours devoted
to the performance of construction, alteration, or repair work by
any individual employed by the taxpayer or by any contractor or subcontractor,
and
I.R.C. § 45(b)(8)(E)(i)(II) —
excludes any hours worked by—
I.R.C. § 45(b)(8)(E)(i)(II)(aa) —
foremen,
I.R.C. § 45(b)(8)(E)(i)(II)(bb) —
superintendents,
I.R.C. § 45(b)(8)(E)(i)(II)(cc) —
owners, or
I.R.C. § 45(b)(8)(E)(i)(II)(dd) —
persons employed in a bona fide executive,
administrative, or professional capacity (within the meaning of those
terms in part 541 of title 29, Code of Federal Regulations).
I.R.C. § 45(b)(8)(E)(ii) Qualified Apprentice —
The term “qualified apprentice” means an
individual who is employed by the taxpayer or by any contractor or
subcontractor and who is participating in a registered apprenticeship
program, as defined in section 3131(e)(3)(B).
Editor's Note: Sec. 45(b)(9), below, added by Pub. L. 117-169, Sec. 13101(f), and before
redesignation by Sec. 13101(g)(1), is effective for facilities placed
in service before January 1, 2023.
I.R.C. § 45(b)(9) Regulations And Guidance —
The Secretary shall issue such regulations or other
guidance as the Secretary determines necessary to carry out the purposes
of this subsection, including regulations or other guidance which
provides for requirements for recordkeeping or information reporting
for purposes of administering the requirements of this subsection.
Editor's Note: Sec. 45(b)(9), below, added by Pub. L. 117-169, Sec. 13101(g)(2), is effective
for facilities placed in service after December 31, 2022.
I.R.C. § 45(b)(9) Domestic Content Bonus Credit Amount
I.R.C. § 45(b)(9)(A) In General —
In the case of any qualified facility which satisfies
the requirement under subparagraph (B)(i), the amount of the credit
determined under subsection (a) (determined after the application
of paragraphs (1) through (8)) shall be increased by an amount equal
to 10 percent of the amount so determined.
I.R.C. § 45(b)(9)(B) Requirement
I.R.C. § 45(b)(9)(B)(i) In General —
The requirement described in this clause is satisfied
with respect to any qualified facility if the taxpayer certifies to
the Secretary (at such time, and in such form and manner, as the Secretary
may prescribe) that any steel, iron, or manufactured product which
is a component of such facility (upon completion of construction)
was produced in the United States (as determined under section 661
of title 49, Code of Federal Regulations).
I.R.C. § 45(b)(9)(B)(ii) Steel And Iron —
In the case of steel or iron, clause (i) shall be applied
in a manner consistent with section 661.5 of title 49, Code of Federal
Regulations.
I.R.C. § 45(b)(9)(B)(iii) Manufactured Product —
For purposes of clause (i), the manufactured products
which are components of a qualified facility upon completion of construction
shall be deemed to have been produced in the United States if not
less than the adjusted percentage (as determined under subparagraph
(C)) of the total costs of all such manufactured products of such
facility are attributable to manufactured products (including components)
which are mined, produced, or manufactured in the United States.
I.R.C. § 45(b)(9)(C) Adjusted Percentage
I.R.C. § 45(b)(9)(C)(i) In General —
Subject to subclause (ii), for purposes of subparagraph
(B)(iii), the adjusted percentage shall be 40 percent.
I.R.C. § 45(b)(9)(C)(ii) Offshore Wind Facility —
For purposes of subparagraph (B)(iii), in the case of
a qualified facility which is an offshore wind facility, the adjusted
percentage shall be 20 percent.
Editor's Note: Sec. 45(b)(10), below, added by Pub. L. 117-169, Sec. 13101(g)(2), is effective
for facilities placed in service after December 31, 2022.
I.R.C. § 45(b)(10) Phaseout For Elective Payment
I.R.C. § 45(b)(10)(A) In General —
In the case of a taxpayer making an election under section
6417 with respect to a credit under this section, the amount of such
credit shall be replaced with—
I.R.C. § 45(b)(10)(A)(i) —
the value of such credit (determined
without regard to this paragraph), multiplied by
I.R.C. § 45(b)(10)(A)(ii) —
the applicable percentage.
I.R.C. § 45(b)(10)(B) 100 Percent Applicable Percentage For Certain Qualified Facilities —
In the case of any qualified facility—
I.R.C. § 45(b)(10)(B)(i) —
which satisfies the requirements under
paragraph (9)(B), or
I.R.C. § 45(b)(10)(B)(ii) —
with a maximum net output of less than
1 megawatt (as measured in alternating current),
the applicable percentage shall be
100 percent.
I.R.C. § 45(b)(10)(C) Phased Domestic Content Requirement —
Subject to subparagraph (D), in the case of any qualified
facility which is not described in subparagraph (B), the applicable
percentage shall be—
I.R.C. § 45(b)(10)(C)(i) —
if construction of such facility began
before January 1, 2024, 100 percent, and
I.R.C. § 45(b)(10)(C)(ii) —
if construction of such facility began
in calendar year 2024, 90 percent.
I.R.C. § 45(b)(10)(D) Exception
I.R.C. § 45(b)(10)(D)(i) In General —
For purposes of this paragraph, the Secretary shall
provide exceptions to the requirements under this paragraph if—
I.R.C. § 45(b)(10)(D)(i)(I) —
the inclusion of steel, iron, or manufactured
products which are produced in the United States increases the overall
costs of construction of qualified facilities by more than 25 percent,
or
I.R.C. § 45(b)(10)(D)(i)(II) —
relevant steel, iron, or manufactured
products are not produced in the United States in sufficient and reasonably
available quantities or of a satisfactory quality.
I.R.C. § 45(b)(10)(D)(ii) Applicable Percentage —
In any case in which the Secretary provides an exception
pursuant to clause (i), the applicable percentage shall be 100 percent.
Editor's Note: Sec. 45(b)(11), below, added by Pub. L. 117-169, Sec. 13101(g)(2), is effective
for facilities placed in service after December 31, 2022.
I.R.C. § 45(b)(11) Special Rule For Qualified Facility Located In Energy Community
I.R.C. § 45(b)(11)(A) In General —
In the case of a qualified facility which is located
in an energy community, the credit determined under subsection (a)
(determined after the application of paragraphs (1) through (10),
without the application of paragraph (9)) shall be increased by an
amount equal to 10 percent of the amount so determined.
I.R.C. § 45(b)(11)(B) Energy Community —
For purposes of this paragraph, the term “energy
community” means—
I.R.C. § 45(b)(11)(B)(i) —
a brownfield site (as defined in subparagraphs
(A), (B), and (D)(ii)(III) of section 101(39) of the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601(39))),
I.R.C. § 45(b)(11)(B)(ii) —
a metropolitan statistical area or
non-metropolitan statistical area which—
I.R.C. § 45(b)(11)(B)(ii)(I) —
has (or, at any time during the period
beginning after December 31, 2009, had) 0.17 percent or greater direct
employment or 25 percent or greater local tax revenues related to
the extraction, processing, transport, or storage of coal, oil, or
natural gas (as determined by the Secretary), and
I.R.C. § 45(b)(11)(B)(ii)(II) —
has an unemployment rate at or above
the national average unemployment rate for the previous year (as determined
by the Secretary), or
I.R.C. § 45(b)(11)(B)(iii) —
a census tract—
I.R.C. § 45(b)(11)(B)(iii)(I) —
in which—
I.R.C. § 45(b)(11)(B)(iii)(I)(aa) —
after December 31, 1999, a coal mine
has closed, or
I.R.C. § 45(b)(11)(B)(iii)(I)(bb) —
after December 31, 2009, a coal-fired
electric generating unit has been retired, or
I.R.C. § 45(b)(11)(B)(iii)(II) —
which is directly adjoining to any
census tract described in subclause (I).
Editor's Note: Sec. 45(b)(12), below, as redesignated by Pub. L. 117-169, Sec. 13101(g)(1), is effective
for facilities placed in service after December 31, 2022.
I.R.C. § 45(b)(12) Regulations And Guidance —
The Secretary shall issue such regulations or other
guidance as the Secretary determines necessary to carry out the purposes
of this subsection, including regulations or other guidance which
provides for requirements for recordkeeping or information reporting
for purposes of administering the requirements of this subsection.
I.R.C. § 45(c) Resources —
For purposes of this section:
I.R.C. § 45(c)(1) In General —
The term “qualified energy resources” means—
I.R.C. § 45(c)(1)(A) —
wind,
I.R.C. § 45(c)(1)(B) —
closed-loop biomass,
I.R.C. § 45(c)(1)(C) —
open-loop biomass,
I.R.C. § 45(c)(1)(D) —
geothermal energy,
I.R.C. § 45(c)(1)(E) —
solar energy,
I.R.C. § 45(c)(1)(F) —
small irrigation power,
I.R.C. § 45(c)(1)(G) —
municipal solid waste,
I.R.C. § 45(c)(1)(H) —
qualified hydropower production, and
I.R.C. § 45(c)(1)(I) —
marine and hydrokinetic renewable energy.
I.R.C. § 45(c)(2) Closed-Loop Biomass —
The term “closed-loop biomass” means any
organic material from a plant which is planted exclusively for purposes
of being used at a qualified facility to produce electricity.
I.R.C. § 45(c)(3) Open-Loop Biomass
I.R.C. § 45(c)(3)(A) In General —
The term “open-loop biomass” means—
I.R.C. § 45(c)(3)(A)(i) —
any agricultural livestock waste nutrients,
or
I.R.C. § 45(c)(3)(A)(ii) —
any solid, nonhazardous, cellulosic
waste material or any lignin material which is derived from—
I.R.C. § 45(c)(3)(A)(ii)(I) —
any of the following forest-related
resources: mill and harvesting residues, precommercial thinnings,
slash, and brush,
I.R.C. § 45(c)(3)(A)(ii)(II) —
solid wood waste materials, including
waste pallets, crates, dunnage, manufacturing and construction wood
wastes (other than pressure-treated, chemically-treated, or painted
wood wastes), and landscape or right-of-way tree trimmings, but not
including municipal solid waste, gas derived from the biodegradation
of solid waste, or paper which is commonly recycled, or
I.R.C. § 45(c)(3)(A)(ii)(III) —
agriculture sources, including orchard
tree crops, vineyard, grain, legumes, sugar, and other crop by-products
or residues.
Such term shall
not include closed-loop biomass or biomass burned in conjunction with
fossil fuel (cofiring) beyond such fossil fuel required for startup
and flame stabilization.
I.R.C. § 45(c)(3)(B) Agricultural Livestock Waste Nutrients
I.R.C. § 45(c)(3)(B)(i) In General —
The term “agricultural livestock waste nutrients”
means agricultural livestock manure and litter, including wood shavings,
straw, rice hulls, and other bedding material for the disposition
of manure.
I.R.C. § 45(c)(3)(B)(ii) Agricultural Livestock —
The term “agricultural livestock” includes
bovine, swine, poultry, and sheep.
I.R.C. § 45(c)(4) Geothermal Energy —
The term “geothermal energy” means energy
derived from a geothermal deposit (within the meaning of section 613(e)(2)).
I.R.C. § 45(c)(5) Small Irrigation Power —
The term “small irrigation power” means
power—
I.R.C. § 45(c)(5)(A) —
generated without any dam or impoundment
of water through an irrigation system canal or ditch, and
I.R.C. § 45(c)(5)(B) —
the nameplate capacity rating of which
is not less than 150 kilowatts but is less than 5 megawatts.
I.R.C. § 45(c)(6) Municipal Solid Waste —
The term “municipal solid waste” has the
meaning given the term “solid waste” under section 1004(27)
of the Solid Waste Disposal Act (42
U.S.C. 6903), except that such term does not include
paper which is commonly recycled and which has been segregated from
other solid waste (as so defined).
I.R.C. § 45(c)(7) Refined Coal
I.R.C. § 45(c)(7)(A) In General —
The term “refined coal”
means a fuel which—
I.R.C. § 45(c)(7)(A)(i) —
which—
I.R.C. § 45(c)(7)(A)(i)(I) —
is a liquid, gaseous, or solid fuel
produced from coal (including lignite) or high carbon fly ash, including
such fuel used as a feedstock,
I.R.C. § 45(c)(7)(A)(i)(II) —
is sold by the taxpayer with the reasonable
expectation that it will be used for the purpose of producing steam,
and
I.R.C. § 45(c)(7)(A)(i)(III) —
is certified by the taxpayer as resulting
(when used in the production of steam) in a qualified emission reduction,
or
I.R.C. § 45(c)(7)(A)(ii) —
which is steel industry fuel.
I.R.C. § 45(c)(7)(B) Qualified Emission Reduction —
The term “qualified emission
reduction” means a reduction of at least 20 percent of the emissions
of nitrogen oxide and at least 40 percent of the emissions of either
sulfur dioxide or mercury released when burning the refined coal (excluding
any dilution caused by materials combined or added during the production
process), as compared to the emissions released when burning the feedstock
coal or comparable coal predominantly available in the marketplace
as of January 1, 2003.
I.R.C. § 45(c)(7)(C) Steel Industry Fuel
I.R.C. § 45(c)(7)(C)(i) In General —
The term “steel industry fuel” means a fuel
which—
I.R.C. § 45(c)(7)(C)(i)(I) —
is produced through a process of liquifying
coal waste sludge and distributing it on coal, and
I.R.C. § 45(c)(7)(C)(i)(II) —
is used as a feedstock for the manufacture
of coke.
I.R.C. § 45(c)(7)(C)(ii) Coal Waste Sludge —
The term “coal waste sludge” means the tar
decanter sludge and related byproducts of the coking process, including
such materials that have been stored in ground, in tanks and in lagoons,
that have been treated as hazardous wastes under applicable Federal
environmental rules absent liquefaction and processing with coal into
a feedstock for the manufacture of coke.
I.R.C. § 45(c)(8) Qualified Hydropower Production
I.R.C. § 45(c)(8)(A) In General —
The term “qualified hydropower production”
means—
I.R.C. § 45(c)(8)(A)(i) —
in the case of any hydroelectric dam
which was placed in service on or before the date of the enactment
of this paragraph, the incremental hydropower production for the taxable
year, and
I.R.C. § 45(c)(8)(A)(ii) —
in the case of any nonhydroelectric
dam described in subparagraph (C), the hydropower production from
the facility for the taxable year.
I.R.C. § 45(c)(8)(B) Determination Of Incremental Hydropower Production
I.R.C. § 45(c)(8)(B)(i) In General —
For purposes of subparagraph (A), incremental hydropower
production for any taxable year shall be equal to the percentage of
average annual hydropower production at the facility attributable
to the efficiency improvements or additions of capacity placed in
service after the date of the enactment of this paragraph, determined
by using the same water flow information used to determine an historic
average annual hydropower production baseline for such facility. Such
percentage and baseline shall be certified by the Federal Energy Regulatory
Commission.
I.R.C. § 45(c)(8)(B)(ii) Operational Changes Disregarded —
For purposes of clause (i), the determination of incremental
hydropower production shall not be based on any operational changes
at such facility not directly associated with the efficiency improvements
or additions of capacity.
I.R.C. § 45(c)(8)(C) Nonhydroelectric Dam —
For purposes of subparagraph (A),
a facility is described in this subparagraph if—
I.R.C. § 45(c)(8)(C)(i) —
the hydroelectric project installed on
the nonhydroelectric dam is licensed by the Federal Energy Regulatory
Commission and meets all other applicable environmental, licensing,
and regulatory requirements,
I.R.C. § 45(c)(8)(C)(ii) —
the nonhydroelectric dam was placed
in service before the date of the enactment of this paragraph and
operated for flood control, navigation, or water supply purposes and
did not produce hydroelectric power on the date of the enactment of
this paragraph, and
I.R.C. § 45(c)(8)(C)(iii) —
the hydroelectric project is operated
so that the water surface elevation at any given location and time
that would have occurred in the absence of the hydroelectric project
is maintained, subject to any license requirements imposed under applicable
law that change the water surface elevation for the purpose of improving
environmental quality of the affected waterway.
The Secretary, in consultation with
the Federal Energy Regulatory Commission, shall certify if a hydroelectric
project licensed at a nonhydroelectric dam meets the criteria in clause
(iii). Nothing in this section shall affect the standards under which
the Federal Energy Regulatory Commission issues licenses for and regulates
hydropower projects under part I of the Federal Power Act.
I.R.C. § 45(c)(9) Indian Coal
I.R.C. § 45(c)(9)(A) In General —
The term “Indian coal” means coal which
is produced from coal reserves which, on June 14, 2005—
I.R.C. § 45(c)(9)(A)(i) —
were owned by an Indian tribe, or
I.R.C. § 45(c)(9)(A)(ii) —
were held in trust by the United States
for the benefit of an Indian tribe or its members.
I.R.C. § 45(c)(9)(B) Indian Tribe —
For purposes of this paragraph, the term “Indian
tribe” has the meaning given such term by section 7871(c)(3)(E)(ii).
I.R.C. § 45(c)(10) Marine And Hydrokinetic Renewable Energy
I.R.C. § 45(c)(10)(A) In General —
The term “marine and hydrokinetic renewable energy”
means energy derived from—
I.R.C. § 45(c)(10)(A)(i) —
waves, tides, and currents in oceans,
estuaries, and tidal areas,
I.R.C. § 45(c)(10)(A)(ii) —
free flowing water in rivers, lakes,
and streams,
Editor's Note: Sec. 45(c)(10)(A)(iii)–(iv), below, before
amendment by Pub. L. 117-169,
Sec. 13101(j)(2)(i)–(ii), is effective for facilities placed
in service before January 1, 2023.
I.R.C. § 45(c)(10)(A)(iii) —
free flowing water in an irrigation
system, canal, or other man-made channel, including projects that
utilize nonmechanical structures to accelerate the flow of water for
electric power production purposes, or
I.R.C. § 45(c)(10)(A)(iv) —
differentials in ocean temperature (ocean
thermal energy conversion).
Editor's Note: Sec. 45(c)(10)(A)(iii)–(v), below, after
amendment by Pub. L. 117-169,
Sec. 13101(j)(2)(i)–(iii) (adding clause (v)), is effective
for facilities placed in service after December 31, 2022.
I.R.C. § 45(c)(10)(A)(iii) —
free flowing water in an irrigation
system, canal, or other man-made channel, including projects that
utilize nonmechanical structures to accelerate the flow of water for
electric power production purposes,
I.R.C. § 45(c)(10)(A)(iv) —
differentials in ocean temperature (ocean
thermal energy conversion), or
I.R.C. § 45(c)(10)(A)(v) —
pressurized water used in a pipeline
(or similar man-made water conveyance) which is operated—
I.R.C. § 45(c)(10)(A)(v)(I) —
for the distribution of water for agricultural,
municipal, or industrial consumption, and
I.R.C. § 45(c)(10)(A)(v)(II) —
not primarily for the generation of
electricity.
I.R.C. § 45(c)(10)(B) Exceptions —
Such term shall not include any energy which is derived
from any source which utilizes a dam, diversionary structure (except
as provided in subparagraph (A)(iii)), or impoundment for electric
power production purposes.
I.R.C. § 45(d) Qualified Facilities —
For purposes of this section:
I.R.C. § 45(d)(1) Wind Facility —
In the case of a facility using
wind to produce electricity, the term “qualified facility”
means any facility owned by the taxpayer which is originally placed
in service after December 31, 1993, and the construction of which
begins before January 1, 2025. Such term shall not include any facility
with respect to which any qualified small wind energy property expenditure
(as defined in subsection (d)(4) of
section 25D) is
taken into account in determining the credit under such section.
I.R.C. § 45(d)(2) Closed-Loop Biomass Facility
I.R.C. § 45(d)(2)(A) In General —
In the case of a facility using
closed-loop biomass to produce electricity, the term “qualified
facility” means any facility—
I.R.C. § 45(d)(2)(A)(i) —
owned by the taxpayer which is originally
placed in service after December 31, 1992, and the construction of
which begins before January 1, 2025, or
I.R.C. § 45(d)(2)(A)(ii) —
owned by the taxpayer which before
January 1, 2025, is originally placed in service and modified to use
closed-loop biomass to co-fire with coal, with other biomass, or with
both, but only if the modification is approved under the Biomass Power
for Rural Development Programs or is part of a pilot project of the
Commodity Credit Corporation as described in 65
Fed. Reg. 63052.
For purposes of clause (ii), a facility
shall be treated as modified before January 1, 2025, if the construction
of such modification begins before such date.
I.R.C. § 45(d)(2)(B) Expansion Of Facility —
Such term shall include a new unit placed in service
after the date of the enactment of this subparagraph in connection
with a facility described in subparagraph (A)(i), but only to the
extent of the increased amount of electricity produced at the facility
by reason of such new unit.
I.R.C. § 45(d)(2)(C) Special Rules —
In the case of a qualified facility described in subparagraph
(A)(ii)—
I.R.C. § 45(d)(2)(C)(i) —
the 10-year period referred to in subsection
(a) shall be treated as beginning no earlier than the date of the
enactment of this clause, and
I.R.C. § 45(d)(2)(C)(ii) —
if the owner of such facility is not
the producer of the electricity, the person eligible for the credit
allowable under subsection (a) shall be the lessee or the operator
of such facility.
I.R.C. § 45(d)(3) Open-Loop Biomass Facilities
I.R.C. § 45(d)(3)(A) In General —
In the case of a facility using
open-loop biomass to produce electricity, the term “qualified
facility” means any facility owned by the taxpayer which—
I.R.C. § 45(d)(3)(A)(i) —
in the case of a facility using agricultural
livestock waste nutrients—
I.R.C. § 45(d)(3)(A)(i)(I) —
is originally placed in service after
the date of the enactment of this subclause and the construction of
which begins before January 1, 2025, and
I.R.C. § 45(d)(3)(A)(i)(II) —
the nameplate capacity rating of which
is not less than 150 kilowatts, and
I.R.C. § 45(d)(3)(A)(ii) —
in the case of any other facility,
the construction of which begins before January 1, 2025.
I.R.C. § 45(d)(3)(B) Expansion Of Facility —
Such term shall include a new unit placed in service
after the date of the enactment of this subparagraph in connection
with a facility described in subparagraph (A), but only to the extent
of the increased amount of electricity produced at the facility by
reason of such new unit.
I.R.C. § 45(d)(3)(C) Credit Eligibility —
In the case of any facility described in subparagraph
(A), if the owner of such facility is not the producer of the electricity,
the person eligible for the credit allowable under subsection (a)
shall be the lessee or the operator of such facility.
I.R.C. § 45(d)(4) Geothermal Or Solar Energy Facility —
In the case of a facility using
geothermal or solar energy to produce electricity, the term “qualified
facility” means any facility owned by the taxpayer which is
originally placed in service after the date of the enactment of this
paragraph and the construction of which begins before January 1, 2025.
Such term shall not include any property
described in section 48(a)(3) the
basis of which is taken into account by the taxpayer for purposes
of determining the energy credit under section 48.
I.R.C. § 45(d)(5) Small Irrigation Power Facility —
In the case of a facility using
small irrigation power to produce electricity, the term “qualified
facility” means any facility owned by the taxpayer which is
originally placed in service after the date of the enactment of this
paragraph and before October 3, 2008.
I.R.C. § 45(d)(6) Landfill Gas Facilities —
In the case of a facility producing
electricity from gas derived from the biodegradation of municipal
solid waste, the term “qualified facility” means any facility
owned by the taxpayer which is originally placed in service after
the date of the enactment of this paragraph and the construction of
which begins before January 1, 2025.
I.R.C. § 45(d)(7) Trash Facilities —
In the case of a facility (other
than a facility described in paragraph (6)) which uses municipal solid
waste to produce electricity, the term “qualified facility”
means any facility owned by the taxpayer which is originally placed
in service after the date of the enactment of this paragraph and the
construction of which begins before January 1, 2025. Such term shall
include a new unit placed in service in connection with a facility
placed in service on or before the date of the enactment of this paragraph,
but only to the extent of the increased amount of electricity produced
at the facility by reason of such new unit.
I.R.C. § 45(d)(8) Refined Coal Production Facility —
In the case of a facility that produces refined coal,
the term “refined coal production facility” means—
I.R.C. § 45(d)(8)(A) —
with respect to a facility producing
steel industry fuel, any facility (or any modification to a facility)
which is placed in service before January 1, 2010, and
I.R.C. § 45(d)(8)(B) —
with respect to any other facility producing
refined coal, any facility placed in service after the date of the
enactment of the American Jobs Creation Act of 2004 and before January
1, 2012.
I.R.C. § 45(d)(9) Qualified Hydropower Facility
I.R.C. § 45(d)(9)(A) In General —
In the case of a facility producing qualified hydroelectric
production described in subsection (c)(8), the term “qualified
facility” means—
I.R.C. § 45(d)(9)(A)(i) —
in the case of any facility producing
incremental hydropower production, such facility but only to the extent
of its incremental hydropower production attributable to efficiency
improvements or additions to capacity described in subsection (c)(8)(B)
placed in service after the date of the enactment of this paragraph
and before January 1, 2025, and
I.R.C. § 45(d)(9)(A)(ii) —
any other facility placed in service
after the date of the enactment of this paragraph and the construction
of which begins before January 1, 2025.
I.R.C. § 45(d)(9)(B) Credit Period —
In the case of a qualified facility described in subparagraph
(A), the 10-year period referred to in subsection (a) shall be treated
as beginning on the date the efficiency improvements or additions
to capacity are placed in service.
I.R.C. § 45(d)(9)(C) Special Rule —
For purposes of subparagraph (A)(i), an efficiency improvement
or addition to capacity shall be treated as placed in service before
January 1, 2025, if the construction of such improvement or addition
begins before such date.
I.R.C. § 45(d)(10) Indian Coal Production Facility —
The term “Indian coal production facility”
means a facility that produces Indian coal.
I.R.C. § 45(d)(11) Marine And Hydrokinetic Renewable Energy Facilities —
In the case of a facility producing electricity from
marine and hydrokinetic renewable energy, the term “qualified
facility” means any facility owned by the taxpayer—
Editor's Note: Sec. 45(d)(11)(A), below, before amendment by Pub. L. 117-169, Sec. 13101(j)(2)(B), is
effective for facilities placed in service before January 1, 2023.
I.R.C. § 45(d)(11)(A) —
which has a nameplate capacity rating
of at least 150 kilowatts, and
Editor's Note: Sec. 45(d)(11)(A), below, after amendment by Pub. L. 117-169, Sec. 13101(j)(2)(B), is
effective for facilities placed in service after December 31, 2022.
I.R.C. § 45(d)(11)(A) —
which has a nameplate capacity rating
of at least 25 kilowatts, and
I.R.C. § 45(d)(11)(B) —
which is originally placed in service
on or after the date of the enactment of this paragraph and the construction
of which begins before January 1, 2025.
I.R.C. § 45(e) Definitions And Special Rules —
For purposes of this section—
I.R.C. § 45(e)(1) Only Production In The United States Taken Into Account —
Sales shall be taken into account under this section
only with respect to electricity the production of which is within—
I.R.C. § 45(e)(1)(A) —
the United States (within the meaning
of section 638(1)),
or
I.R.C. § 45(e)(1)(B) —
a possession of the United States (within
the meaning of section 638(2)).
I.R.C. § 45(e)(2) Computation Of Inflation Adjustment Factor And Reference Price
I.R.C. § 45(e)(2)(A) In General —
The Secretary shall, not later than April 1 of each
calendar year, determine and publish in the Federal Register the inflation
adjustment factor and the reference price for such calendar year in
accordance with this paragraph.
I.R.C. § 45(e)(2)(B) Inflation Adjustment Factor —
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. 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.
I.R.C. § 45(e)(2)(C) Reference Price —
The term “reference price” means, with respect
to a calendar year, the Secretary's determination of the annual average
contract price per kilowatt hour of electricity generated from the
same qualified energy resource and sold in the previous year in the
United States. For purposes of the preceding sentence, only contracts
entered into after December 31, 1989, shall be taken into account.
I.R.C. § 45(e)(3) 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.
I.R.C. § 45(e)(4) 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 electricity to an unrelated person if such electricity
is sold to such a person by another member of such group.
I.R.C. § 45(e)(5) 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.
I.R.C. § 45(e)(6) [Repealed By Pub. L. 109-58, Sec. 1301(f)(3).]
I.R.C. § 45(e)(7) Credit Not To Apply To Electricity Sold To Utilities Under Certain
Contracts —
I.R.C. § 45(e)(7)(A) In General —
The credit determined under subsection (a) shall not
apply to electricity
I.R.C. § 45(e)(7)(A)(i) —
produced at a qualified facility
described in subsection (d)(1) which is originally placed in service
after June 30, 1999, and
I.R.C. § 45(e)(7)(A)(ii) —
sold to a utility pursuant to a
contract originally entered into before January 1, 1987 (whether or
not amended or restated after that date).
I.R.C. § 45(e)(7)(B) Exception —
Subparagraph (A) shall not apply if—
I.R.C. § 45(e)(7)(B)(i) —
the prices for energy and capacity
from such facility are established pursuant to an amendment to the
contract referred to in subparagraph (A)(ii),
I.R.C. § 45(e)(7)(B)(ii) —
such amendment provides that the
prices set forth in the contract which exceed avoided cost prices
determined at the time of delivery shall apply only to annual quantities
of electricity (prorated for partial years) which do not exceed the
greater of—
I.R.C. § 45(e)(7)(B)(ii)(I) —
the average annual quantity of electricity
sold to the utility under the contract during calendar years 1994,
1995, 1996, 1997, and 1998, or
I.R.C. § 45(e)(7)(B)(ii)(II) —
the estimate of the annual electricity
production set forth in the contract, or, if there is no such estimate,
the greatest annual quantity of electricity sold to the utility under
the contract in any of the calendar years 1996, 1997, or 1998, and
I.R.C. § 45(e)(7)(B)(iii) —
such amendment provides that energy
and capacity in excess of the limitation in clause (ii) may be
I.R.C. § 45(e)(7)(B)(iii)(I) —
sold to the utility only at prices
that do not exceed avoided cost prices determined at the time of delivery,
or
I.R.C. § 45(e)(7)(B)(iii)(II) —
sold to a third party subject to
a mutually agreed upon advance notice to the utility.
For purposes of this subparagraph,
avoided cost prices shall be determined as provided for in 18 CFR 292.304(d)(1) or any
successor regulation.
I.R.C. § 45(e)(8) Refined Coal Production Facilities
I.R.C. § 45(e)(8)(A) Determination Of Credit Amount —
In the case of a producer of refined coal, the credit
determined under this section (without regard to this paragraph) for
any taxable year shall be increased by an amount equal to $4.375 per
ton of qualified refined coal—
I.R.C. § 45(e)(8)(A)(i) —
produced by the taxpayer at a refined
coal production facility during the 10-year period beginning on the
date the facility was originally placed in service, and
I.R.C. § 45(e)(8)(A)(ii) —
sold by the taxpayer—
I.R.C. § 45(e)(8)(A)(ii)(I) —
to an unrelated person, and
I.R.C. § 45(e)(8)(A)(ii)(II) —
during such 10-year period and such
taxable year.
I.R.C. § 45(e)(8)(B) Phaseout Of Credit —
The amount of the increase determined under subparagraph
(A) shall be reduced by an amount which bears the same ratio to the
amount of the increase (determined without regard to this subparagraph)
as—
I.R.C. § 45(e)(8)(B)(i) —
the amount by which the reference price
of fuel used as a feedstock (within the meaning of subsection (c)(7)(A))
for the calendar year in which the sale occurs exceeds an amount equal
to 1.7 multiplied by the reference price for such fuel in 2002, bears
to
I.R.C. § 45(e)(8)(B)(ii) —
$8.75.
I.R.C. § 45(e)(8)(C) Application Of Rules —
Rules similar to the rules of the subsection (b)(3)
and paragraphs (1) through (5) of this subsection shall apply for
purposes of determining the amount of any increase under this paragraph.
I.R.C. § 45(e)(8)(D) Special Rule For Steel Industry Fuel
I.R.C. § 45(e)(8)(D)(i) In General —
In the case of a taxpayer who produces steel industry
fuel—
I.R.C. § 45(e)(8)(D)(i)(I) —
this paragraph shall be applied separately
with respect to steel industry fuel and other refined coal, and
I.R.C. § 45(e)(8)(D)(i)(II) —
in applying this paragraph to steel
industry fuel, the modifications in clause (ii) shall apply.
I.R.C. § 45(e)(8)(D)(ii) Modifications
I.R.C. § 45(e)(8)(D)(ii)(I) Credit Amount —
Subparagraph (A) shall be applied by substituting ”$2
per barrel-of-oil equivalent” for “$4.375 per ton”.
I.R.C. § 45(e)(8)(D)(ii)(II) Credit Period —
In lieu of the 10-year period referred to in clauses
(i) and (ii)(II) of subparagraph (A), the credit period shall be the
period beginning on the later of the date such facility was originally
placed in service, the date the modifications described in clause
(iii) were placed in service, or October 1, 2008, and ending on the
later of December 31, 2009, or the date which is 1 year after the
date such facility or the modifications described in clause (iii)
were placed in service.
I.R.C. § 45(e)(8)(D)(iii) Modifications —
The modifications described in this clause are modifications
to an existing facility which allow such facility to produce steel
industry fuel.
I.R.C. § 45(e)(8)(D)(iv) Barrel-Of-Oil Equivalent —
For purposes of this subparagraph, a barrel-of-oil equivalent
is the amount of steel industry fuel that has a Btu content of 5,800,000
Btus.
I.R.C. § 45(e)(9) Coordination With Credit For Producing Fuel From A Nonconventional
Source
I.R.C. § 45(e)(9)(A) In General —
The term “qualified facility” shall not
include any facility which produces electricity from gas derived from
the biodegradation of municipal solid waste if such biodegradation
occurred in a facility (within the meaning of section 45K) the production from which
is allowed as a credit under section 45K for
the taxable year or any prior taxable year.
I.R.C. § 45(e)(9)(B) Refined Coal Facilities
I.R.C. § 45(e)(9)(B)(i) In General —
The term “refined coal production facility”
shall not include any facility the production from which is allowed
as a credit under section 45K for
the taxable year or any prior taxable year (or under section 29, as in effect on the day before
the date of enactment of the Energy Tax Incentives Act of 2005, for
any prior taxable year).
I.R.C. § 45(e)(9)(B)(ii) Exception For Steel Industry Coal —
In the case of a facility producing steel industry fuel,
clause (i) shall not apply to so much of the refined coal produced
at such facility as is steel industry fuel.
I.R.C. § 45(e)(10) Indian Coal Production Facilities
I.R.C. § 45(e)(10)(A) Determination Of Credit Amount —
In the case of a producer of Indian coal, the credit
determined under this section (without regard to this paragraph) for
any taxable year shall be increased by an amount equal to the applicable
dollar amount per ton of Indian coal—
I.R.C. § 45(e)(10)(A)(i) —
produced by the taxpayer at an Indian
coal production facility during the 16-year period beginning on January
1, 2006, and
I.R.C. § 45(e)(10)(A)(ii) —
sold by the taxpayer—
I.R.C. § 45(e)(10)(A)(ii)(I) —
to an unrelated person (either directly
by the taxpayer or after sale or transfer to one or more related persons),
and
I.R.C. § 45(e)(10)(A)(ii)(II) —
during such 16-year period and such
taxable year.
I.R.C. § 45(e)(10)(B) Applicable Dollar Amount
I.R.C. § 45(e)(10)(B)(i) In General —
The term “applicable dollar amount” for
any taxable year beginning in a calendar year means—
I.R.C. § 45(e)(10)(B)(i)(I) —
$1.50 in the case of calendar years
2006 through 2009, and
I.R.C. § 45(e)(10)(B)(i)(II) —
$2.00 in the case of calendar years
beginning after 2009.
I.R.C. § 45(e)(10)(B)(ii) Inflation Adjustment —
In the case of any calendar year after 2006, each of
the dollar amounts under clause (i) shall be equal to the product
of such dollar amount and the inflation adjustment factor determined
under paragraph (2)(B) for the calendar year, except that such paragraph
shall be applied by substituting “2005” for “1992”.
I.R.C. § 45(e)(10)(C) Application Of Rules —
Rules similar to the rules of the subsection (b)(3)
and paragraphs (1), (3), (4), and (5) of this subsection shall apply
for purposes of determining the amount of any increase under this
paragraph.
I.R.C. § 45(e)(11) Allocation Of Credit To Patrons Of Agricultural Cooperative
I.R.C. § 45(e)(11)(A) Election To Allocate
I.R.C. § 45(e)(11)(A)(i) In General —
In the case of an eligible cooperative organization,
any portion of the credit determined under subsection (a) for the
taxable year may, at the election of the organization, be apportioned
among patrons of the organization on the basis of the amount of business
done by the patrons during the taxable year.
I.R.C. § 45(e)(11)(A)(ii) Form And Effect Of Election —
An election under clause (i) for any taxable year shall
be made on a timely filed return for such year. Such election, once
made, shall be irrevocable for such taxable year. Such election shall
not take effect unless the organization designates the apportionment
as such in a written notice mailed to its patrons during the payment
period described in section 1382(d).
I.R.C. § 45(e)(11)(B) Treatment Of Organizations And Patrons —
The amount of the credit apportioned to any patrons
under subparagraph (A)—
I.R.C. § 45(e)(11)(B)(i) —
shall not be included in the amount
determined under subsection (a) with respect to the organization for
the taxable year, and
I.R.C. § 45(e)(11)(B)(ii) —
shall be included in the amount determined
under subsection (a) for the first taxable year of each patron ending
on or after the last day of the payment period (as defined in section 1382(d)) for the taxable year
of the organization or, if earlier, for the taxable year of each patron
ending on or after the date on which the patron receives notice from
the cooperative of the apportionment.
I.R.C. § 45(e)(11)(C) Special Rules For Decrease In Credits For Taxable Year —
If the amount of the credit of a cooperative organization
determined under subsection (a) for a taxable year is less than the
amount of such credit shown on the return of the cooperative organization
for such year, an amount equal to the excess of—
I.R.C. § 45(e)(11)(C)(i) —
such reduction, over
I.R.C. § 45(e)(11)(C)(ii) —
the amount not apportioned to such
patrons under subparagraph (A) for the taxable year, shall be treated
as an increase in tax imposed by this chapter on the organization.
Such increase shall not be treated as tax imposed by this chapter
for purposes of determining the amount of any credit under this chapter.
I.R.C. § 45(e)(11)(D) Eligible Cooperative Defined —
For purposes of this 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.
Editor's Note: Sec. 45(e)(12), below, added by Pub. L. 117-169, Sec. 13102(f)(4), is effective
for property placed in service after December 31, 2022.
I.R.C. § 45(e)(12) Coordination With Energy Credit For Qualified Biogas Property —
The term “qualified facility” shall not
include any facility which produces electricity from gas produced
by qualified biogas property (as defined in section 48(c)(7)) if a
credit is allowed under section 48 with respect to such property for
the taxable year or any prior taxable year.
Editor's Note: Sec. 45(e)(13), below, added by Pub. L. 117-169, Sec. 13204(b)(1), is effective
for electricity produced after December 31, 2022.
I.R.C. § 45(e)(13) Special Rule For Electricity Used At A Qualified Clean Hydrogen
Production Facility —
Electricity produced by the taxpayer shall be treated
as sold by such taxpayer to an unrelated person during the taxable
year if—
I.R.C. § 45(e)(13)(A) —
such electricity is used during such
taxable year by the taxpayer or a person related to the taxpayer at
a qualified clean hydrogen production facility (as defined in section 45V(c)(3)) to produce qualified
clean hydrogen (as defined in section 45V(c)(2)), and
I.R.C. § 45(e)(13)(B) —
such use and production is verified
(in such form or manner as the Secretary may prescribe) by an unrelated
third party.
(Added by Pub. L. 102-486, title XIX, Sec.
1914(a), Oct. 24, 1992, 106 Stat. 2776;
amended by Pub. L. 106-170,
title V, Sec. 507, Dec. 17, 1999, 113
Stat. 1860; Pub. L.
106-554, Sec. 319, Dec. 21, 2000, 114 Stat. 2763; Pub. L. 107-147, title VI, Sec.
603(a), Mar. 9, 2002, 116 Stat. 21; Pub. L. 108-311, title III, Sec.
313(a), Oct. 4, 2004, 118 Stat. 1166; Pub. L. 108-357, title VII, Sec.
710 Oct. 22, 2004, 118 Stat. 1418; Pub. L. 109-58, title XIII, Sec.
1301, 1302, 1322(a), Aug. 8, 2005, 119
Stat. 594; Pub. L. 109-135,
title IV, Sec. 402(b), 403(t), 412(j), Dec. 21, 2005, 119 Stat. 2577; Pub. L. 109-432, div. A, Sec. 201,
Dec. 20, 2006; Pub. L. 110-172,
Sec. 7(b), 9(a), Dec. 29, 2007, 121 Stat. 2473; Pub. L. 110-343, div. B, title I,
Sec. 101, 102, 106, 108, Oct. 3, 2008, 122
Stat. 3765; Pub. L. 111-5,
div. B, title I, Sec. 1101, Feb. 17, 2009, 123
Stat. 115; Pub. L.
111-312, Sec. 702(a), Dec. 17, 2010, 124 Stat. 3296; Pub. L. 112-240, title IV, Sec.
406, 407, Jan. 2, 2013, 126 Stat. 2313; Pub. L. 113-295, Div. A, title I,
Sec. 154(a), 155(a), title II, Sec. 210(g)(1), Dec. 19, 2014, 128 Stat. 4010; Pub.
L. 114-113, Div. P, title III, Sec. 301(a), 304(a), Div.
Q, title I, Sec. 186, 187, Dec. 18, 2015; Pub.
L. 115-123, Div. D, title I, Sec. 40408(a), 40409(a), Feb.
9, 2018, 132 Stat. 64; Pub. L. 115-141, Div. U, title IV, Sec.
401(a)(14)–(16), Mar. 23, 2018, 132
Stat. 348; Pub. L. 116-94,
Div. Q, title I, Sec. 127(a),(c) 128(a), Dec. 20, 2019; Pub. L. 116-260, Div. EE, title I, Sec.
131(a), (c)(1), 145(a), Dec. 27, 2020, 134
Stat. 1182; Pub. L. 117-169,
title I, Sec. 13101(a)(1)–(6), (b)(1), (2), (c), (e)(1), (2)(A),
(f), (g)(1), (2), (h), (i)(1), (2), (j)(1), (2)(A)(i)–(iii),
(B), 13102(f)(4), 13204(b)(1), Aug. 16, 2002, 136 Stat. 1818.)
BACKGROUND NOTES
AMENDMENTS
2022 — Subsec. (a)(1). Pub. L. 117-169, Sec. 13101(b)(1), amended
par. (1) by striking “1.5 cents” and inserting “0.3
cents”.
Subsec. (b)(2). Pub.
L. 117-169, amended par. (2) by striking “1.5 cent”
and inserting “0.3 cent”.
Subsec. (b)(2). Pub.
L. 117-169, amended par. (2) by substituting “If the
0.3 cent amount as increased under the preceding sentence is not a
multiple of 0.05 cent, such amount shall be rounded to the nearest
multiple of 0.05 cent. In any other case, if an amount as increased
under this paragraph is not a multiple of 0.1 cent, such amount shall
be rounded to the nearest multiple of 0.1 cent.” for “If
any amount as increased under the preceding sentence is not a multiple
of 0.1 cent, such amount shall be rounded to the nearest multiple
of 0.1 cent.”
Subsec. (b)(3). Pub.
L. 117-169 amended par. (3). Before amendment, it read as
follows:
“(3) Credit Reduced For Grants, Tax-Exempt
Bonds, Subsidized Energy Financing, And Other Credits.—The amount
of the credit determined under subsection (a) with respect to any
project for any taxable year (determined after the application of
paragraphs (1) and (2)) shall be reduced by the amount which is the
product of the amount so determined for such year and the lesser of
1/2 or a fraction—
“(A) the numerator of which is the sum, for
the taxable year and all prior taxable years, of—
“(i) grants provided by the United States,
a State, or a political subdivision of a State for use in connection
with the project,
“(ii) proceeds of an issue of State or local
government obligations used to provide financing for the project the
interest on which is exempt from tax under section 103,
“(iii) the aggregate amount of subsidized
energy financing provided (directly or indirectly) under a Federal,
State, or local program provided in connection with the project, and
“(B) the denominator of which is the aggregate
amount of additions to the capital account for the project for the
taxable year and all prior taxable years.
“The amounts under the preceding sentence
for any taxable year shall be determined as of the close of the taxable
year. This paragraph shall not apply with respect to any facility
described in subsection (d)(2)(A)(ii).”
Subsec. (b)(4)(A). Pub.
L. 117-169, Sec. 13101(i)(2), amended subpar. (A) by striking “last
sentence” and inserting “last two sentences”.
Pub. L. 117-169,
Sec. 13101(j), amended subpar. (A) by striking “(7), (9), or
(11)” and inserting “or (7)”.
Subsec. (b)(5). Pub.
L. 117-169, Sec. 13101(e)(2)(A), amended par. (5) by inserting “which
is placed in service before January 1, 2022” after “using
wind to produce electricity”.
Subsec. (b)(6)–(9). Pub.
L. 117-169, Sec. 13101(f), amended subsec. (b) by adding
pars. (6)–(9).
Subsec. (b)(9)–(12). Pub.
L. 117-169, Sec. 13101(g)(1)–(2), amended subsec.
(b) by redesignating par. (9) (as added by the preceding provision)
as par. (12) and adding new pars. (9)–(11).
Subsec. (c)(10)(A). Pub.
L. 117-169, Sec. 13101(j)(2)(A), clauses (i)–(iii),
amended subsec. (c)(10)(A) in clause (iii) by striking “or”,
in clause (iv) by striking the period at the end and inserting “,
or”, and by adding new clause (v).
Subsec. (d). Pub. L.
117-169, Sec. 13101(a)(1)–(6), amended pars. (2)(A),
(3)(A), (6), (7), (9), and (11)(B) by striking “January 1, 2022”
each place it appeared and inserting “January 1, 2025”.
Subsec. (d)(1). Pub.
L. 117-169, Sec. 13101(e)(1), amended par. (1) by striking “January
1, 2022” and inserting “January 1, 2025”.
Subsec. (d)(4). Pub.
L. 117-169, Sec. 13101(c), amended par. (4) by striking “and
which” and all that follows through “January 1, 2022”
and inserting “and the construction of which begins before January
1, 2025”.
Subsec. (d)(11). Pub.
L. 117-169, Sec. 13101(j)(2)(B), amended par. (11) by striking “150”
and inserting “25”.
Subsec. (e)(12). Pub.
L. 117-169, Sec. 13102(f)(4), added par. (12).
Subsec. (e)(13). Pub.
L. 117-169, Sec. 13204(b)(1), added par. (13).
2020 — Subsec. (b)(5)(D). Pub. L. 116-260, Div. EE, Sec. 131(c)(1),
amended subpar. (D) by substituting “January 1, 2022”
for “January 1, 2021”.
Subsec. (d). Pub. L.
116-260, Div. EE, Sec. 131(a), amended subsec. (d) by substituting “January
1, 2022” for “January 1, 2021” each place it appeared.
Subsec. (e)(10)(A). Pub.
L. 116-260, Div. EE, Sec. 145(a), amended subpar. (A) by
substituting “16-year period” for “15-year period”
each place it appeared.
2019 — Subsec. (b)(5). Pub. L. 116-94, Div. Q, Sec. 127(c)(2)(A),
amended par. (5) by striking “and” at the end of subpar.
(B), and substituting “, and” for the period at the end
of subparagraph (C), and adding new subpar. (D).
Subsec. (d)(1). Pub. L.
116-94, Div. Q, Sec. 127(c)(1), amended par. (1) by substituting “January
1, 2021” for “January 1, 2020”.
Subsec. (d)(2)(A). Pub.
L. 116-94, Div. Q, Sec. 127(a), amended subpar. (A) by substituting “January
1, 2021” for “January 1, 2018” each place it appeared.
Subsec. (d)(3)(A). Pub.
L. 116-94, Div. Q, Sec. 127(a), amended subpar. (A) by substituting “January
1, 2021” for “January 1, 2018” each place it appeared.
Subsec. (d)(4)(B). Pub.
L. 116-94, Div. Q, Sec. 127(a), amended subpar. (B) by substituting “January
1, 2021” for “January 1, 2018” each place it appeared.
Subsec. (d)(6). Pub. L.
116-94, Div. Q, Sec. 127(a), amended par. (6) by substituting “January
1, 2021” for “January 1, 2018” each place it appeared.
Subsec. (d)(7). Pub. L.
116-94, Div. Q, Sec. 127(a), amended par. (7) by substituting “January
1, 2021” for “January 1, 2018” each place it appeared.
Subsec. (d)(9). Pub. L.
116-94, Div. Q, Sec. 127(a), amended par. (9) by substituting “January
1, 2021” for “January 1, 2018” each place it appeared.
Subsec. (d)(11)(B). Pub.
L. 116-94, Div. Q, Sec. 127(a), amended subpar. (B) by substituting “January
1, 2021” for “January 1, 2018” each place it appeared.
Subsec. (e)(10)(A). Pub.
L. 116-94, Div. Q, Sec. 128(a), amended subpar. (A) by substituting “15-year
period” for “12-year period” each place it appeared.
2018 — Subsec. (c)(6). Pub. L. 115-141, Sec. 401(a)(14), amended
par. (6) by substituting “section 1004(27)” for “section
2(27)”.
Subsec. (c)(7)(A)(i)(II). Pub.
L. 115-141, Sec. 401(a)(15), amended subclause (II) by substituting “for
the purpose” for “for purpose”.
Subsec. (c)(7)(A)(i)(III). Pub.
L. 115-141, Sec. 401(a)(16), amended subclause (III) by
substituting “, or” for the period at the end.
Subsec. (d)(2)(A). Pub.
L. 115-123, Sec. 40409(a)(1), amended subpar. (A) by substituting “January
1, 2018” for “January 1, 2017” each place it appeared.
Subsec. (d)(3)(A). Pub.
L. 115-123, Sec. 40409(a)(2), amended subpar. (A) by substituting “January
1, 2018” for “January 1, 2017” each place it appeared.
Subsec. (d)(4)(B). Pub.
L. 115-123, Sec. 40409(a)(3), amended subpar. (B) by substituting “January
1, 2018” for “January 1, 2017” each place it appeared.
Subsec. (d)(6). Pub.
L. 115-123, Sec. 40409(a)(4), amended par. (6) by substituting “January
1, 2018” for “January 1, 2017” each place it appeared.
Subsec. (d)(7). Pub.
L. 115-123, Sec. 40409(a)(5), amended par. (7) by substituting “January
1, 2018” for “January 1, 2017” each place it appeared.
Subsec. (d)(9). Pub.
L. 115-123, Sec. 40409(a)(6), amended par. (9) by substituting “January
1, 2018” for “January 1, 2017” each place it appeared.
Subsec. (d)(11)(B). Pub.
L. 115-123, Sec. 40409(a)(7), amended subpar. (B) by substituting “January
1, 2018” for “January 1, 2017” each place it appeared.
Subsec. (e)(10)(A). Pub.
L. 115-123, Sec. 40408(a), amended subpar. (A) by substituting “12-year
period” for “11-year period” each place it appeared.
2015 — Subsec. (b)(5). Pub. L. 114-113, Div. P, Sec. 301(a)(2),
amended subsec. (b) by adding par. (5).
Subsec. (d)(2)(A). Pub.
L. 114-113, Div. Q, Sec. 187(a)(1), amended subpar. (A)
by substituting “January 1, 2017” for “January 1,
2015” each place it appeared.
Subsec. (d)(3)(A). Pub.
L. 114-113, Div. Q, Sec. 187(a)(2), amended subpar. (A)
by substituting “January 1, 2017” for “January 1,
2015” each place it appeared.
Subsec. (d)(4)(B). Pub.
L. 114-113, Div. Q, Sec. 187(a)(3), amended subpar. (B)
by substituting “January 1, 2017” for “January 1,
2015” each place it appeared.
Subsec. (d)(6). Pub.
L. 114-113, Div. Q, Sec. 187(a)(4), amended par. (6) by
substituting “January 1, 2017” for “January 1, 2015”
each place it appeared.
Subsec. (d)(7). Pub.
L. 114-113, Div. Q, Sec. 187(a)(5), amended par. (7) by
substituting “January 1, 2017” for “January 1, 2015”
each place it appeared.
Subsec. (d)(9). Pub.
L. 114-113, Div. Q, Sec. 187(a)(6), amended par. (9) by
substituting “January 1, 2017” for “January 1, 2015”
each place it appeared.
Subsec. (d)(1). Pub.
L. 114-113, Div. P, Sec. 301(a)(7), amended par. (1) by
substituting “January 1, 2020” for “January 1, 2015”.
Subsec. (d)(10). Pub.
L. 114-113, Div. Q, Sec. 186(b), amended par. (10). Before
amendment, it read as follows:
“(10) Indian Coal Production Facility.—In
the case of a facility that produces Indian coal, the term “Indian
coal production facility” means a facility which is placed in
service before January 1, 2009.”
Subsec. (d)(11)(B). Pub.
L. 114-113, Div. Q, Sec. 187(a)(7), amended subpar. (B)
by substituting “January 1, 2017” for “January 1,
2015” each place it appeared.
Subsec. (e)(10)(A). Pub.
L. 114-113, Div. Q, Sec. 186(a), amended subpar. (A) by
substituting “11-year period” for “9-year period”
each place it appeared.
Subsec. (e)(10)(A)(ii)(I). Pub.
L. 114-113, Div. Q, Sec. 186(c), amended subclause (I) by
inserting “(either directly by the taxpayer or after sale or
transfer to one or more related persons)”.
Subsec. (e)(10)(D). Pub.
L. 114-113, Div. Q, Sec. 186(d)(2), struck subpar. (D).
Before being struck, it read as follows:
“(D) Treatment As Specified Credit.—The
increase in the credit determined under subsection (a) by reason of
this paragraph with respect to any facility shall be treated as a
specified credit for purposes of section 38(c)(4)(A) during the 4-year
period beginning on the later of January 1, 2006, or the date on which
such facility is placed in service by the taxpayer.”
2014 — Subsec. (b)(2). Pub. L. 113-295, Div. A, Sec. 210(g)(1),
amended par. (2) by substituting “$2 amount” for “$3
amount”.
Subsec. (d)(1). Pub.
L. 113-295, Div. A, Sec. 155(a)(1), substituted “January
1, 2015” for “January 1, 2014” each place it appeared.
Subsec. (d)(2)(A). Pub.
L. 113-295, Div. A, Sec. 155(a)(2), substituted “January
1, 2015” for “January 1, 2014” each place it appeared.
Subsec. (d)(3)(A). Pub.
L. 113-295, Div. A, Sec. 155(a)(3), substituted “January
1, 2015” for “January 1, 2014” each place it appeared.
Subsec. (d)(4)(B). Pub.
L. 113-295, Div. A, Sec. 155(a)(4), substituted “January
1, 2015” for “January 1, 2014” each place it appeared.
Subsec. (d)(6). Pub.
L. 113-295, Div. A, Sec. 155(a)(5), substituted “January
1, 2015” for “January 1, 2014” each place it appeared.
Subsec. (d)(7). Pub.
L. 113-295, Div. A, Sec. 155(a)(6), substituted “January
1, 2015” for “January 1, 2014” each place it appeared.
Subsec. (d)(9). Pub.
L. 113-295, Div. A, Sec. 155(a)(7), substituted “January
1, 2015” for “January 1, 2014” each place it appeared.
Subsec. (d)(11)(B). Pub.
L. 113-295, Div. A, Sec. 155(a)(8), substituted “January
1, 2015” for “January 1, 2014” each place it appeared.
Subsec. (e)(10)(A). Pub.
L. 113-295, Div. A, Sec. 154(a), substituted “9-year
period” for “8-year period” each place it appeared.
2013 — Subsec. (c)(6). Pub. L. 112-240, Sec. 407(a)(2),
amended par. (6) by inserting “, except that such term does
not include paper which is commonly recycled and which has been segregated
from other solid waste (as so defined)” after “(42 U.S.C. 6903)”.
Subsec. (d)(1). Pub.
L. 112-240, Sec. 407(a)(1), amended par. (1) by substituting “January
1, 2014” for “January 1, 2013”.
Subsec. (d)(1). Pub.
L. 112-240, Sec. 407(a)(3)(A)(i), amended par. (1)
by substituting “the construction of which begins before January
1, 2014” for “before January 1, 2014”.
Subsec. (d)(2)(A). Pub.
L. 112-240, Sec. 407(a)(3)(B), amended subpar. (A)
by inserting the flush sentence at the end.
Subsec. (d)(2)(A)(i). Pub.
L. 112-240, Sec. 407(a)(3)(A)(ii), amended clause
(i) by substituting “the construction of which begins before
January 1, 2014” for “before January 1, 2014”.
Subsec. (d)(3)(A)(i)(I). Pub. L. 112-240, Sec. 407(a)(3)(A)(iii),
amended subclause (I) by substituting “the construction of which
begins before January 1, 2014” for “before January 1,
2014”.
Subsec. (d)(3)(A)(ii). Pub. L. 112-240, Sec. 407(a)(3)(C),
amended clause (ii) by substituting “the construction of which
begins” for “is originally placed in service”.
Subsec. (d)(4). Pub.
L. 112-240, Sec. 407(a)(3)(D), amended par. (4) by
striking “and before January 1, 2014 (January 1, 2006, in the
case of a facility using solar energy). Such term shall not include
any property described in section 48(a)(3) the basis of which is taken
into account by the taxpayer for purposes of determining the energy
credit under section 48.” and inserting “and which—(A)
in the case of a facility using solar energy, is placed in service
before January 1, 2006, or (B) in the case of a facility using geothermal
energy, the construction of which begins before January 1, 2014. Such
term shall not include any property described in section 48(a)(3)
the basis of which is taken into account by the taxpayer for purposes
of determining the energy credit under section 48.”
Subsec. (d)(6). Pub.
L. 112-240, Sec. 407(a)(3)(A)(iv), amended par. (6)
by substituting “the construction of which begins before January
1, 2014” for “before January 1, 2014”.
Subsec. (d)(7). Pub.
L. 112-240, Sec. 407(a)(3)(A)(v), amended par. (7)
by substituting “the construction of which begins before January
1, 2014” for “before January 1, 2014”.
Subsec. (d)(9)(B). Pub.
L. 112-240, Sec. 407(a)(3)(A)(vi), amended subpar.
(B) by substituting “the construction of which begins before
January 1, 2014” for “before January 1, 2014”.
Subsec. (d)(9). Pub.
L. 112-240, Sec. 407(a)(3)(E), amended par. (9) by
redesignating subpar. (A) and (B), as amended, as clauses (i) and
(ii), respectively; by striking “In the case of a facility”
and inserting “(A) In General.—In the case of a facility”;
by redesignating subpar. (C) as subpar. (B); and by adding a new subpar.
(C).
Subsec. (d)(11)(B). Pub.
L. 112-240, Sec. 407(a)(3)(A)(vii), amended subpar.
(B) by substituting “the construction of which begins before
January 1, 2014” for “before January 1, 2014”.
Subsec. (e)(10)(A). Pub.
L. 112-240, Sec. 406(a), amended subpar. (A) by substituting “8-year
period” for “7-year period” each place it appeared.
2010 — Subsec. (d)(8)(B). Pub. L. 111-312, Sec. 702(a), amended
subpar. (B) by substituting “January 1, 2012” for “January
1, 2010”.
2009 — Subsec. (d)(1). Pub. L. 111-5, Div. B, Sec. 1101(a)(1),
amended par. (1) by substituting “2013” for “2010”.
Subsec. (d)(2). Pub.
L. 111-5, Div. B, Sec. 1101(a)(2), amended par. (2)
by substituting “2014” for “2011” each place
it appeared.
Subsec. (d)(3). Pub.
L. 111-5, Div. B, Sec. 1101(a)(2), amended par. (3)
by substituting “2014” for “2011” each place
it appeared.
Subsec. (d)(4). Pub.
L. 111-5, Div. B, Sec. 1101(a)(2), amended par. (4)
by substituting “2014” for “2011” each place
it appeared.
Subsec. (d)(5). Pub.
L. 111-5, Div. B, Sec. 1101(b), amended par. (5)
by substituting “and before October 3, 2008” for “and
before the date of the enactment of paragraph (11)”.
Subsec. (d)(6). Pub.
L. 111-5, Div. B, Sec. 1101(a)(2), amended par. (6)
by substituting “2014” for “2011” each place
it appeared.
Subsec. (d)(7). Pub.
L. 111-5, Div. B, Sec. 1101(a)(2), amended par. (7)
by substituting “2014” for “2011” each place
it appeared.
Subsec. (d)(9). Pub.
L. 111-5, Div. B, Sec. 1101(a)(2), amended par. (9)
by substituting “2014” for “2011” each place
it appeared.
Subsec. (d)(11)(B). Pub.
L. 111-5, Div. B, Sec. 1101(a)(3), amended subpar.
(B) by substituting “2014” for “2012”.
2008 — Subsec. (b)(2). Pub. L. 110-343, Div. B, Sec. 108(b)(2),
amended par. (2) by inserting “the $3 amount in subsection (e)(8)(D)(ii)(I),”
after “subsection (e)(8)(A),”.
Subsec. (b)(4)(A). Pub.
L. 110-343, Div. B, Sec. 102(d), amended subpar.
(A) by substituting “or (9)” for “(9), or (11)”.
Subsec. (c)(1)(G)–(I). Pub. L. 110-343, Div. B, Sec. 102(a),
amended par. (1) by striking “and” at the end of subpar.
(G), by substituting “, and” for the period at the end
of subpar. (H), and by adding subpar. (I).
Subsec. (c)(7)(A). Pub.
L. 110-343, Div. B, Sec. 108(a)(1), amended subpar.
(A). Before amendment, it read as follows:
“(A) In General.—The term ‘refined
coal' means a fuel which—
“(i) is a liquid, gaseous, or solid fuel
produced from coal (including lignite) or high carbon fly ash, including
such fuel used as a feedstock,
“(ii) is sold by the taxpayer with the reasonable
expectation that it will be used for purpose of producing steam,
“(iii) is certified by the taxpayer as resulting
(when used in the production of steam) in a qualified emission reduction,
and
“(iv) is produced in such a manner as to
result in an increase of at least 50 percent in the market value of
the refined coal (excluding any increase caused by materials combined
or added during the production process), as compared to the value
of the feedstock coal.”
Subsec. (c)(7)(A)(i). Pub.
L. 110-343, Div. B, Sec. 101(b)(1), amended clause
(i) by striking “and” at the end of subclause (II), by
substituting period for “, and” at the end of subclause
(III), and by striking subclause (IV). Before being struck, subclause
(IV) read as follows:
“(IV) is produced in such a manner as to
result in an increase of at least 50 percent in the market value of
the refined coal (excluding any increase caused by materials combined
or added during the production process), as compared to the value
of the feedstock coal, or”.
Subsec. (c)(7)(B). Pub.
L. 110-343, Div. B, Sec. 101(b)(2), amended subpar.
(B) by inserting “at least 40 percent of the emissions of”
after “nitrogen oxide and”.
Subsec. (c)(7)(C). Pub.
L. 110-343, Div. B, Sec. 108(a)(2), amended par.
(7) by adding subpar. (C).
Subsec. (c)(8)(C). Pub.
L. 110-343, Div. B, Sec. 101(e), amended subpar.
(C). Before being amended it read as follows:
“(C) Nonhydroelectric Dam.—For purposes
of subparagraph (A), a facility is described in this subparagraph
if—
“(i) the facility is licensed by the Federal
Energy Regulatory Commission and meets all other applicable environmental,
licensing, and regulatory requirements,
“(ii) the facility was placed in service
before the date of the enactment of this paragraph and did not produce
hydroelectric power on the date of the enactment of this paragraph,
and
“(iii) turbines or other generating devices
are to be added to the facility after such date to produce hydroelectric
power, but only if there is not any enlargement of the diversion structure,
or construction or enlargement of a bypass channel, or the impoundment
or any withholding of any additional water from the natural stream
channel.”
Subsec. (c)(10). Pub.
L. 110-343, Div. B, Sec. 102(b), amended subsec.
(c) by adding par. (10).
Subsec. (d)(1). Pub.
L. 110-343, Div. B, Sec. 106(c)(3)(B), amended par.
(1) by adding a sentence at the end.
Subsec. (d)(1). Pub.
L. 110-343, Div. B, Sec. 101(a)(1), amended par.
(1) by substituting “January 1, 2010” for “January
1, 2009”.
Subsec. (d)(2)(A)(i). Pub.
L. 110-343, Div. B, Sec. 101(a)(2)(A), amended clause
(i) by substituting “January 1, 2011” for “January
1, 2009”.
Subsec. (d)(2)(A)(ii). Pub. L. 110-343, Div. B, Sec. 101(a)(2)(A),
amended clause (ii) by substituting “January 1, 2011”
for “January 1, 2009”.
Subsec. (d)(2)(B)–(C). Pub., L. 110-343,
Div. B, Sec. 101(d)(2), amended par. (2) by redesignating subpar.
(B) as subpar. (C) and by adding subpar. (B).
Subsec. (d)(3)(A)(i)(I). Pub. L. 110-343, Div. B, Sec. 101(a)(2)(B),
amended subclause (I) by substituting “January 1, 2011”
for “January 1, 2009”.
Subsec. (d)(3)(A)(ii). Pub. L. 110-343, Div. B, Sec. 101(a)(2)(B),
amended clause (ii) by substituting “January 1, 2011”
for “January 1, 2009”.
Subsec. (d)(3)(B)–(C). Pub. L. 110-343, Div. B, Sec. 101(d)(1),
amended par. (3) by redesignating subpar. (B) as subpar. (C) and by
adding subpar. (B).
Subsec. (d)(4). Pub.
L. 110-343, Div. B, Sec. 101(a)(2)(C), amended par.
(4) by substituting “January 1, 2011” for “January
1, 2009”.
Subsec. (d)(5). Pub.
L. 110-343, Div. B, Sec. 101(a)(2)(D), amended par.
(5) by substituting “January 1, 2011” for “January
1, 2009”.
Subsec. (d)(5). Pub.
L. 110-343, Div. B, Sec. 102(e), amended par. (5),
as amended by Act. Sec. 101, by substituting “the date of the
enactment of paragraph (11)” for “January 1, 2012”.
Note that the amendment by Act. Sec. 101(a)(2)(D) substituted “January
1, 2011” for “January 1, 2009”, not “January
1, 2012” in par. (5).
Subsec. (d)(6). Pub.
L. 110-343, Div. B, Sec. 101(a)(2)(E), amended par.
(6) by substituting “January 1, 2011” for “January
1, 2009”.
Subsec. (d)(7). Pub.
L. 110-343, Div. B, Sec. 101(a)(2)(F), amended par.
(7) by substituting “January 1, 2011” for “January
1, 2009”.
Subsec. (d)(7). Pub.
L. 110-343, Div. B, Sec. 101(c)(1), (2), amended
par. (7) by substituting “facility (other than a facility described
in paragraph (6)) which uses” for “facility which burns”
and by striking “Combustion” in the heading.
Subsec. (d)(8). Pub.
L. 110-343, Div. B, Sec. 101(a)(1), amended par.
(8) by substituting “January 1, 2010” for “January
1, 2009”.
Subsec. (d)(8). Pub.
L. 110-343, Div. B, Sec. 108(c), amended par. (8).
Before amendment, it read as follows:
“(8) Refined Coal Production Facility.—In
the case of a facility that produces refined coal, the term ‘refined
coal production facility' means a facility which is placed in service
after the date of the enactment of this paragraph and before January
1, 2010.”
Subsec. (d)(9)(A) and (B). Pub. L. 110-343, Div. B, Sec. 101(a)(2)(G),
amended subpar. (A) and (B) by substituting “January 1, 2011”
for “January 1, 2009”.
Subsec. (d)(11). Pub.
L. 110-343, Div. B, Sec. 102(c), amended subsec.
(d) by adding par. (11).
Subsec. (e)(8)(D). Pub.
L. 110-343, Div. B, Sec. 108(b)(1), amended par.
(8) by adding subpar. (D).
Subsec. (e)(9)(B). Pub.
L. 110-343, Div. B, Sec. 108(d)(1), amended subpar.
(B). Before amendment it read as follows:
“(B) Refined Coal Facilities.—The term ‘refined
coal production facility' shall not include any facility the production
from which is allowed as a credit under section 45K for the taxable
year or any prior taxable year (or under section 29, as in effect
on the day before the date of enactment of the Energy Tax Incentives
Act of 2005, for any prior taxable year).”
2007 — Subsec. (c)(3)(A)(ii). Pub. L. 110-172, Sec. 7(b)(1), amended
clause (ii) by striking “which is segregated from other waste
materials and” after “lignin material”.
Subsec. (d)(2)(B). Pub.
L. 110-172, Sec. 7(b)(2), amended subpar. (B) by
adding “and” at the end of clause (i), by striking clause
(ii); and by redesignating clause (iii) as clause (ii). Before being
struck, clause (ii) read as follows:
“(ii) the amount of the credit determined
under subsection (a) with respect to the facility shall be an amount
equal to the amount determined without regard to this clause multiplied
by the ratio of the thermal content of the closed-loop biomass used
in such facility to the thermal content of all fuels used in such
facility, and”.
Subsec. (e)(7)(A)(i). Pub.
L. 110-172, Sec. 9(a), amended clause (i) by substituting “originally
placed in service” for “placed in service by the taxpayer”.
2006 — Subsec. (d). Pub. L. 109-432, Sec. 201, amended
subsec. (d) by substituting “January 1, 2009” for “January
1, 2008”.
2005 — Subsec. (c)(3)(A)(ii). Pub. L. 109-135, Sec. 402(b), amended
clause (ii) by substituting “lignin material” for “nonharzardous
lignin waste material”.
Subsec. (c)(7)(A)(i). Pub.
L. 109-135, Sec. 403(t), amended clause (i) by striking “synthetic”.
Subsec. (d)(8). Pub.
L. 109-135, Sec. 412(j)(1), amended par. (8) by substituting “In
the case of a facility that produces refined coal, the term”
for “The term”.
Subsec. (d)(10). Pub.
L. 109-58, Sec. 412(j)(2), amended par. (10) by substituting “In
the case of a facility that produces Indian coal, the term”
for “The term”.
Subsec. (b)(4)(A). Pub.
L. 109-58, Sec. 1301(c)(2), amended subpar. (A) by
substituting “(7), or (9)” for “or (7)”.
Subsec. (b)(4)(B)(i). Pub.
L. 109-58, Sec. 1301(b)(1), amended clause (i) by
inserting “or clause (iii)” after “clause (ii)”.
Subsec. (b)(4)(B)(ii). Pub.
L. 109-58, Sec. 1301(f)(1), amended clause (ii) by
substituting “January 1, 2005,” for “the date of
the enactment of this Act”.
Subsec. (b)(4)(B)(iii). Pub. L. 109-58, Sec. 1301(b)(2),
added clause (iii).
Subsec. (c). Pub.
L. 109-58, Sec. 1301(d)(4), amended the heading for
subsec. (c) by substituting “Resources” for “Qualified
Energy Resources and Refined Coal”.
Subsec. (c)(1)(F)–(H). Pub. L. 109-58, Sec. 1301(c)(1),
amended par. (1) by striking “and” at the end of subpar.
(F); by substituting “, and” for the period at the end
of subpar. (G); and by adding subpar. (H).
Subsec. (c)(3)(A)(ii). Pub.
L. 109-58, Sec. 1301(f)(2), amended clause (ii) by
inserting “or any nonhazardous lignin waste material”
after “cellulosic waste material”.
Subsec. (c)(8). Pub. L. 109-58, Sec. 1301(c)(3),
added par. (8).
Subsec. (c)(9). Pub. L. 109-58, Sec. 1301(d)(2),
added par. (9).
Subsec. (d)(1)–(3), (5)–(7). Pub. L. 109-58, Sec. 1301(a)(1),
amended par. (1), (2), (3), (5), (6), (7) by substituting “January
1, 2008” for “January 1, 2006”.
Subsec. (d)(4). Pub.
L. 109-58, Sec. 1301(a)(2), amended par. (4) by substituting “January
1, 2008 (January 1, 2006, in the case of a facility using solar energy)”.
Subsec. (d)(7). Pub.
L. 109-58, Sec. 1301(e), amended par. (7) by adding
the sentence at the end.
Subsec. (d)(9). Pub.
L. 109-58, Sec. 1301(c)(4), added par. (9).
Subsec. (d)(10). Pub.
L. 109-58, Sec. 1301(d)(3), added par. (10).
Subsec. (e)(6). Pub.
L. 109-58, Sec. 1301(f)(3), struck par. (6). Before
being struck, it read as follows:
“(6) Credit Eligibility In The Case Of Government-Owned
Facilities Using Poultry Waste.—In the case of a facility using
poultry waste to produce electricity and owned by a governmental unit,
the person eligible for the credit under subsection (a) is the lessee
or the operator of such facility.”
Subsec. (e)(8)(C). Pub.
L. 109-58, Sec. 1301(f)(3), amended subpar. (C) by
striking “and (9)” after “(5)”.
Subsec. (e)(9). Pub.
L. 109-58, Sec. 1301(f)(4)(A), amended par. (9).
Before amendment, it read as follows:
“(9) Coordination With Credit For Producing
Fuel From A Nonconventional Source.—The term ‘qualified
facility' shall not include any facility the production from which
is allowed as a credit under section 29 for the taxable year or any
prior taxable year.”
Subsec. (e)(9). Pub.
L. 109-58, Sec. 1322(a)(3)(C), amended par. (9) by
substituting “section 45K” for “section 29”
each place it appeared and by inserting “(or under section 29,
as in effect on the day before the date of the enactment of the Energy
Tax Incentives Act of 2005, for any prior taxable year)” before
the period at the end.
Subsec. (e)(10). Pub.
L. 109-58, Sec. 1301(d)(1), added par. (10).
Subsec. (e)(11). Pub.
L. 109-58, Sec. 1302(a), added par. (11).
2004 — Sec. 45. Pub. L. 108-357, Sec. 710(b)(3)(B),
amended the heading of Sec. 45 by adding “, ETC.” at the
end.
Subsec. (b)(2). Pub.
L. 108-357, Sec. 710(b)(3)(C), amended par. (2) by
substituting “The 1.5 cent amount in subsection (a), the 8 cent
amount in paragraph (1), the $4.375 amount in subsection (e)(8)(A),
and in subsection (e)(8)(B)(i) the reference price of fuel used as
a feedstock (within the meaning of subsection (c)(7)(A)) in 2002”
for “The 1.5 cent amount in subsection (a) and the 8 cent amount
in paragraph (1)”.
Subsec. (b)(3). Pub.
L. 108-357, Sec. 710(f), amended par. (3) by inserting “the
lesser of 1/2 or” before “a fraction” in the matter
preceding subpar. (A) and by adding the sentence at the end.
Subsec. (b)(4). Pub.
L. 108-357, Sec. 710(c), added par. (4).
Subsec. (c). Pub.
L. 108-357, Sec. 710(a), amended subsec. (c). Prior
to amendment it read as follows:
“(c) Definitions.—For purposes of this
section —
“(1) Qualified Energy Resources.—The
term ‘qualified energy resources' means—
“(A) wind,
“(B) closed-loop biomass, and
“(C) poultry waste.
“(2) Closed-Loop Biomass.—The term ‘closed-loop
biomass' means any organic material from a plant which is planted
exclusively for purposes of being used at a qualified facility to
produce electricity.
“(3) Qualified Facility.—
“(A) Wind Facility.—In the case of
a facility using wind to produce electricity, the term ‘qualified
facility’ means any facility owned by the taxpayer which is originally
placed in service after December 31, 1993, and before January 1, 2006.
“(B) Closed-Loop Biomass Facility.—In
the case of a facility using closed-loop biomass to produce electricity,
the term ‘qualified facility’ means any facility owned by the taxpayer
which is originally placed in service after December 31, 1992, and
before January 1, 2006.
“(C) Poultry Waste Facility.—In the
case of a facility using poultry waste to produce electricity, the
term ‘qualified facility’ means any facility of the taxpayer which
is originally placed in service after December 31, 1999, and before
January 1, 2006.
“(4) Poultry Waste.—The term ‘poultry
waste’ means poultry manure and litter, including wood shavings, straw,
rice hulls, and other bedding material for the disposition of manure.”
Subsec. (d)–(e). Pub. L. 108-357, Sec. 710(b)(1),
redesignated subsec. (d) as subsec. (e) and added subsec. (d).
Subsec. (e)(7)(A)(i). Pub.
L. 108-357, Sec. 710(b)(3), amended clause (i), by
substituting “subsection (d)(1)” for “subsection
(c)(3)(A)”.
Subsec. (e)(8). Pub.
L. 108-357, Sec. 710(b)(2), amended subsec. (e) by
adding par. (8).
Subsec. (e)(9). Pub.
L. 108-357, Sec. 710(d), amended subsec. (e) by adding
par. (9).
Subsec. (c)(3). Pub.
L. 108-311, Sec. 313(a), amended subpars. (A), (B),
and (C) by substituting “January 1, 2006” for “January
1, 2004”.
2002 — Subsec. (c)(3). Pub. L. 107-147, Sec. 603(a), amended
subpars. (A), (B), and (C) by substituting “2004” for “2002”.
2000 — Subsec. (d)(7)(A)(i). Pub. L. 106-554, Sec. 319(1), amended
clause (i) by substituting “subsection (c)(3)(A)” for “paragraph
(3)(A)”.
1999 — Subsec. (c)(1). Pub. L. 106-170, Sec. 507(b)(1),
amended par. (1) by striking “and” at end the end of subpar.
(A), by substituting “, and” for the period at the end,
and by adding subpar. (C).
Subsec. (c)(3). Pub. L. 106-170, Sec. 507(a),
amended par. (3). Before amendment, it read as follows:
“(3) Qualified Facility.—The term ‘qualified
facility' means any facility owned by the taxpayer which is originally
placed in service after December 31, 1993 (December 31, 1992, in the
case of a facility using closed-loop biomass to produce electricity),
and before July 1, 1999.”
Subsec. (c)(4) Pub.
L. 106-170, Sec. 507(b)(2), added par. (4).
Subsec. (d). Pub.
L. 106-170, Sec. 507(c), added par. (6) and (7).
EFFECTIVE DATE OF 2022 AMENDMENTS
Amendments by Pub. L.
117-169, title I, Sec. 13101(a)(1)–(6), (b)(1), (2),
(c), (e)(1), (2)(A), (f), (i)(1), (2), effective for facilities placed
in service after December 31, 2021.
Amendments by Pub. L.
117-169, title I, Sec. 13101(g)(1), (2), (j)(1), (2)(A)(i)–(iii),
(B), effective for facilities placed in service after December 31,
2022.
Amendments by Pub. L.
117-169, title I, Sec. 13101(h), effective for facilities
the construction of which begins after the date of enactment of this
Act. [Enacted: Aug. 16, 2022]
Amendments by Pub. L.
117-169, title I, Sec. 13102(f)(4), effective for property
placed in service after December 31, 2022.
Amendments by Pub. L.
117-169, title I, Sec. 13204(b)(1), effective for electricity
produced after December 31, 2022.
EFFECTIVE DATE OF 2020 AMENDMENTS
Amendments by Pub. L.
116-260, Div. EE, Sec. 131(a), (c)(1), effective January
1, 2021.
Amendment by Pub. L.
116-260, Div. EE, Sec. 145(a), effective for coal produced
after December 31, 2020.
EFFECTIVE DATE OF 2019 AMENDMENTS
Amendments by Pub. L.
116-94, Div. Q, Sec. 127(a), (c), effective January 1, 2018.
Amendments by Pub. L.
116-94, Div. Q, 128(a), effective for coal produced after
December 31, 2017.
EFFECTIVE DATE OF 2018 AMENDMENTS
Amendments by Pub. L.
115-141, Sec. 401(a)(14)-(16), effective March 23, 2018.
Amendment by Pub.
L. 115-123, Sec. 40408(a), effective for coal produced after
December 31, 2016.
Amendments by Pub.
L. 115-123, Sec. 40409(a), effective on January 1, 2017.
EFFECTIVE DATE OF 2015 AMENDMENTS
Amendments by Pub. L.
114-113, Div. P, Sec. 301(a), effective January 1, 2015.
Amendment by Pub. L.
114-113, Div. Q, Sec. 186(a), effective for coal produced
after December 31, 2014.
Amendments by Pub. L.
114-113, Div. Q, Sec. 186(b) and (c), effective for coal
produced and sold after December 31, 2015, in taxable years ending
after such date.
Amendments by Pub. L.
114-113, Div. Q, Sec. 186(d), effective for credits determined
for taxable years beginning after December 31, 2015.
Amendments by Pub. L.
114-113, Div. Q, Sec. 187(a), effective January 1, 2015.
EFFECTIVE DATE OF 2014 AMENDMENTS
Amendments by Pub.
L. 113-295, Div. A, Sec. 154(a), effective for coal
produced after December 31, 2013.
Amendments by Pub.
L. 113-295, Div. A, Sec. 155(a), effective January
1, 2014.
Amendment by Pub.
L. 113-295, Div. A, Sec. 210(g)(1), effective as
if included in the provisions of the Energy Improvement and Extension
Act of 2008 [Pub. L. 110-343,
Sec. 108] to which they relate [Effective for fuel
produced and sold after September 30, 2008].
EFFECTIVE DATE OF 2013 AMENDMENTS
Amendments by Sec. 406(a), of Pub. L. 112-240 effective for coal
produced after December 31, 2012.
Amendments by Sec. 407(a), other than (a)(2), of Pub. L. 112-240 effective on the
date of the enactment of this Act [Enacted: Jan. 2, 2013].
Amendment by Sec. 407(a)(2) of Pub. L. 112-240 effective for electricity
produced and sold after the date of the enactment of this Act [Enacted:
Jan. 2, 2013], in taxable years ending after such date.
EFFECTIVE DATE OF 2010 AMENDMENTS
Amendment by Sec. 702(a) of Pub. L. 111-312 effective for facilities
placed in service after December 31, 2009.
EFFECTIVE DATE OF 2009 AMENDMENTS
Amendments by Div. B, Sec. 1101(a) of Pub. L. 111-5 effective for property
placed in service after the date of the enactment of this Act [Enacted:
Feb. 17, 2009].
Amendment by Div. B, Sec. 1101(b) of Pub. L. 111-5 effective as if included
in section 102 of the Energy Improvement and Extension Act of 2008.
EFFECTIVE DATE OF 2008 AMENDMENTS
Amendments by Div. B, Sec. 101(a) and (e) of Pub. L. 110-343 effective for property
originally placed in service after December 31, 2008.
Amendments by Div. B, Sec. 101(b) of Pub. L. 110-343 effective for coal
produced and sold from facilities placed in service after December
31, 2008.
Amendments by Div. B, Sec. 101(c) of Pub. L. 110-343 effective for electricity
produced and sold after the date of the enactment of this Act [Enacted:
Oct. 3, 2008].
Amendments by Div. B, Sec. 101(d) of Pub. L. 110-343 effective for property
placed in service after the date of the enactment of this Act [Enacted:
Oct. 3, 2008].
Amendments by Div. B, Sec. 102 of Pub. L. 110-343 effective for electricity
produced and sold after the date of the enactment of this Act [Enacted:
Oct. 3, 2008], in taxable years ending after such date.
Amendments by Div. B, Sec. 106 of Pub. L. 110-343 effective for taxable
years beginning after December 31, 2007.
Amendments by Div. B, Sec. 108 of Pub. L. 110-343 effective for fuel
produced and sold after September 30, 2008.
EFFECTIVE DATE OF 2007 AMENDMENTS
Amendments by Sec. 7(b) of Pub. L. 110-172 effective as if
included in the provisions of the American Jobs Creation Act of 2004
[Pub. L. 108-357, Sec. 710]
to which they relates.
Amendment by Sec. 9(a) of Pub. L. 110-172 effective as if
included in the provisions of the Tax Relief Extension Act of 1999
[Pub. L. 106-170, Sec. 507]
to which it relates.
EFFECTIVE DATE OF 2006 AMENDMENTS
Amendments by Sec. 201 of Pub. L. 109-432 effective on the
date of the enactment of this Act [Enacted: Dec. 20, 2006].
EFFECTIVE DATE OF 2005 AMENDMENTS
Amendment by Sec. 402(b) of Pub. L. 109-135 effective as if
included in the provisions of the Energy Policy Act of 2005 [Pub. L. 109-58, Sec. 1301] to
which it relates.
Amendment by Sec. 403(t) of Pub. L. 109-135 effective as if
included in the American Jobs Creation Act of 2004 [Pub. L. 108-357, Sec. 710] to
which it relates.
Amendments by Sec. 412(j) of Pub. L. 109-135 effective on the
date of the enactment of this Act [Enacted: Dec. 21, 2005].
Amendments by Sec. 1301 of Pub. L. 109-58 effective on the date
of the enactment of this Act [Enacted: Aug. 8, 2005], except that
amendments made by subsections (e) and (f) of Sec. 1301 are effective
as if included in the amendments made by section 710 of the American
Jobs Creation Act of 2004 [Pub. L.
108-357].
Amendment by Sec. 1302(a) of Pub. L. 109-58 effective for taxable
years of cooperative organizations ending after the date of the enactment
of this Act [Enacted: Aug. 8, 2005].
Amendment by Sec. 1322(a)(3) of Pub. L. 109-58 effective for credits
determined under the Internal Revenue Code of 1986 for taxable years
ending after December 31, 2005.
EFFECTIVE DATE OF 2004 AMENDMENTS
Section 710(g) of Pub.
L. 108-357, as amended by Pub. L. 109-58, Sec. 1301(f)(6),
provided:
“(g) Effective Dates.—
“(1) In General.—Except as otherwise
provided in this subsection, the amendments made by this section shall
apply to electricity produced and sold after the date of the enactment
of this Act [Enacted: Oct. 22, 2004], in taxable years ending after
such date.
“(2) Certain Biomass Facilities.—With
respect to any facility described in section 45(d)(3)(A)(ii) of the Internal
Revenue Code of 1986, as added by subsection (b)(1), which
is placed in service before the date of the enactment of this Act,
the amendments made by this section shall apply to electricity produced
and sold after December 31, 2004, in taxable years ending after such
date.
“(3) Credit Rate And Period For New Facilities.—The
amendments made by subsection (c) shall apply to electricity produced
and sold after December 31, 2004, in taxable years ending after such
date.
“(4) Nonapplication Of Amendments To Pre-Effective
Date Poultry Waste Facilities.—The amendments made by this section
shall not apply with respect to any poultry waste facility (within
the meaning of section 45(c)(3)(C), as in effect on the day before
the date of the enactment of this Act [Enacted: Oct. 22, 2004]) placed
in service before January 1, 2005.
“(5) Refined Coal Production Facilities.—Section 45(e)(8) of the Internal Revenue Code of
1986, as added by this section, shall apply to refined coal produced
and sold after the date of the enactment of this Act [Enacted: Oct.
22, 2004].”
Amendments by Sec. 313(a) of Pub. L. 108-311 effective for facilities
placed in service after December 31, 2003.
EFFECTIVE DATE OF 2002 AMENDMENTS
Amendments by Sec. 603(a) of Pub. L. 107-147 effective for facilities
placed in service after December 31, 2001.
EFFECTIVE DATE OF 2000 AMENDMENTS
Amendment by Sec. 319(l) of Pub. L. 106-554 effective on the
date of enactment of this Act.
EFFECTIVE DATE OF 1999 AMENDMENTS
Amendments by Sec. 507 of Pub. L. 106-170 effective on the
date of enactment of this Act [Enacted: Dec. 17, 1999].
EFFECTIVE DATE
Applicable to tax years ending after December 31,
1992.
PRIOR SECTION
A prior section 45 was redesignated as section
35 by Pub. L. 98-369, Sec.
471(c)(1).