(a) In general
For purposes of section 46, the qualifying advanced energy project credit for any taxable year is an amount equal to 30 percent of the qualified investment for such taxable year with respect to any qualifying advanced energy project of the taxpayer.
(b) Qualified investment
(1) In general
For purposes of subsection (a), the qualified investment for any taxable year is the basis of eligible property placed in service by the taxpayer during such taxable year which is part of a qualifying advanced energy project.
(2) Certain qualified progress expenditures rules made applicable
Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this section.
(3) Limitation
The amount which is treated as the qualified investment for all taxable years with respect to any qualifying advanced energy project shall not exceed the amount designated by the Secretary as eligible for the credit under this section.
(c) Definitions
(1) Qualifying advanced energy project
(A) In general
The term "qualifying advanced energy project" means a project—
(i) which re-equips, expands, or establishes a manufacturing facility for the production of—
(I) property designed to be used to produce energy from the sun, wind, geothermal deposits (within the meaning of section 613(e)(2)), or other renewable resources,
(II) fuel cells, microturbines, or an energy storage system for use with electric or hybrid-electric motor vehicles,
(III) electric grids to support the transmission of intermittent sources of renewable energy, including storage of such energy,
(IV) property designed to capture and sequester carbon dioxide emissions,
(V) property designed to refine or blend renewable fuels or to produce energy conservation technologies (including energy-conserving lighting technologies and smart grid technologies),
(VI) new qualified plug-in electric drive motor vehicles (as defined by section 30D) or components which are designed specifically for use with such vehicles, including electric motors, generators, and power control units, or
(VII) other advanced energy property designed to reduce greenhouse gas emissions as may be determined by the Secretary, and
(ii) any portion of the qualified investment of which is certified by the Secretary under subsection (d) as eligible for a credit under this section.
(B) Exception
Such term shall not include any portion of a project for the production of any property which is used in the refining or blending of any transportation fuel (other than renewable fuels).
(2) Eligible property
The term "eligible property" means any property—
(A) which is necessary for the production of property described in paragraph (1)(A)(i),
(B) which is—
(i) tangible personal property, or
(ii) other tangible property (not including a building or its structural components), but only if such property is used as an integral part of the qualified investment credit facility, and
(C) with respect to which depreciation (or amortization in lieu of depreciation) is allowable.
(d) Qualifying advanced energy project program
(1) Establishment
(A) In general
Not later than 180 days after the date of enactment of this section, the Secretary, in consultation with the Secretary of Energy, shall establish a qualifying advanced energy project program to consider and award certifications for qualified investments eligible for credits under this section to qualifying advanced energy project sponsors.
(B) Limitation
The total amount of credits that may be allocated under the program shall not exceed $2,300,000,000.
(2) Certification
(A) Application period
Each applicant for certification under this paragraph shall submit an application containing such information as the Secretary may require during the 2-year period beginning on the date the Secretary establishes the program under paragraph (1).
(B) Time to meet criteria for certification
Each applicant for certification shall have 1 year from the date of acceptance by the Secretary of the application during which to provide to the Secretary evidence that the requirements of the certification have been met.
(C) Period of issuance
An applicant which receives a certification shall have 3 years from the date of issuance of the certification in order to place the project in service and if such project is not placed in service by that time period, then the certification shall no longer be valid.
(3) Selection criteria
In determining which qualifying advanced energy projects to certify under this section, the Secretary—
(A) shall take into consideration only those projects where there is a reasonable expectation of commercial viability, and
(B) shall take into consideration which projects—
(i) will provide the greatest domestic job creation (both direct and indirect) during the credit period,
(ii) will provide the greatest net impact in avoiding or reducing air pollutants or anthropogenic emissions of greenhouse gases,
(iii) have the greatest potential for technological innovation and commercial deployment,
(iv) have the lowest levelized cost of generated or stored energy, or of measured reduction in energy consumption or greenhouse gas emission (based on costs of the full supply chain), and
(v) have the shortest project time from certification to completion.
(4) Review and redistribution
(A) Review
Not later than 4 years after the date of enactment of this section, the Secretary shall review the credits allocated under this section as of such date.
(B) Redistribution
The Secretary may reallocate credits awarded under this section if the Secretary determines that—
(i) there is an insufficient quantity of qualifying applications for certification pending at the time of the review, or
(ii) any certification made pursuant to paragraph (2) has been revoked pursuant to paragraph (2)(B) because the project subject to the certification has been delayed as a result of third party opposition or litigation to the proposed project.
(C) Reallocation
If the Secretary determines that credits under this section are available for reallocation pursuant to the requirements set forth in paragraph (2), the Secretary is authorized to conduct an additional program for applications for certification.
(5) Disclosure of allocations
The Secretary shall, upon making a certification under this subsection, publicly disclose the identity of the applicant and the amount of the credit with respect to such applicant.
(e) Denial of double benefit
A credit shall not be allowed under this section for any qualified investment for which a credit is allowed under section 48, 48A, or 48B.
References in Text
Subsections (c)(4) and (d) of section 46 (as in effect on the day before the enactment of the Revenue Reconciliation Act of 1990), referred to in subsec. (b)(2), means section 46(c)(4) and (d) as in effect before enactment of Pub. L. 101–508, which amended section 46 generally.
The date of enactment of this section, referred to in subsec. (d)(1)(A), (4)(A), is the date of enactment of Pub. L. 111–5, which was approved Feb. 17, 2009.
Amendments
2014—Subsec. (b)(3). Pub. L. 113–295, §209(g), inserted "as the qualified investment" after "The amount which is treated".
Subsec. (c)(1)(A)(i)(VI). Pub. L. 113–295, §221(a)(2)(C), struck out ", qualified plug-in electric vehicles (as defined by section 30(d))," before "or components".
Effective Date of 2014 Amendment
Amendment by section 209(g) of Pub. L. 113–295 effective as if included in the provisions of the American Recovery and Reinvestment Tax Act of 2009, Pub. L. 111–5, div. B, title I, to which such amendment relates, see section 209(k) of Pub. L. 113–295, set out as a note under section 24 of this title.
Amendment by section 221(a)(2)(C) of Pub. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(b) of Pub. L. 113–295, set out as a note under section 1 of this title.
Effective Date
Section applicable to periods after Feb. 17, 2009, under rules similar to the rules of section 48(m) of this title as in effect on the day before Nov. 5, 1990, see section 1302(d) of Pub. L. 111–5, set out as an Effective Date of 2009 Amendment note under section 46 of this title.
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