HR5862-119

1. Short title, etc This Act may be cited as the American Energy Independence and Affordability Act. Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.

2. Table of contents The table of contents of this Act is as follows:

101. Clean energy production credit Section 45Y(d)(3) is amended by striking calendar year 2032. and inserting means the later of— the calendar year in which the Secretary determines that the annual greenhouse gas emissions from the production of electricity in the United States are equal to or less than 25 percent of the annual greenhouse gas emissions from the production of electricity in the United States for calendar year 2022, or 2032. Section 45Y(d) is amended— in paragraph (1), by striking Subject to paragraph (4), the amount and inserting The amount, and by striking paragraph (4). Section 45Y is amended by striking subsection (h). Section 45Y(b)(2)(C) is amended by striking clause (iii). The amendments made by this section shall take effect as if included in section 70512 of Public Law 119–21. means the later of— (A) the calendar year in which the Secretary determines that the annual greenhouse gas emissions from the production of electricity in the United States are equal to or less than 25 percent of the annual greenhouse gas emissions from the production of electricity in the United States for calendar year 2022, or (B) 2032. .

102. Clean electricity investment credit Section 48E(e) is amended— in paragraph (1), by striking Subject to paragraph (4), the amount and inserting The amount, and by striking paragraph (4). Section 48E is amended by striking subsection (i) and by redesignating subsections (j) and (k) as subsections (i) and (j), respectively. Section 50 is amended by striking subsection (e). Section 48(a)(2)(A)(ii) is amended by striking 0 percent and inserting 2 percent. The amendments made by this section shall take effect as if included in section 70513 of Public Law 119–21.

103. Advanced manufacturing production credit Section 45X(c)(6) is amended by striking subparagraph (R) and by redesignating subparagraphs (S) through (AA) as subparagraphs (R) through (ZZ), respectively. Section 45X(b)(3) is amended by striking subparagraph (D). Section 45X(b)(1)(M) is amended by striking (2.5 percent in the case of metallurgical coal). The heading of section 45X(b)(3) is amended by striking and termination. Section 45X(b)(3)(A) is amended by striking subparagraphs (C) and (D) and inserting subparagraph (C). The heading of section 45X(b)(3)(C) is amended by striking other than metallurgical coal. The heading of section 45X(b)(3)(C)(ii) is amended by striking other than metallurgical coal. Section 45X(b)(3) is amended by striking subparagraph (E). The amendments made by this section shall take effect as if included in section 70514 of Public Law 119–21.

104. Repeal of restriction on the extension of advance energy project credit program Section 48C(e)(3)(C) is amended by striking shall not be increased and inserting shall be increased. The amendment made by this section shall take effect as if included in section 70515 of Public Law 119–21.

105. Reversion of construction date for clean hydrogen production credit Section 45V(c)(3)(C) is amended by striking January 1, 2028 and inserting January 1, 2033. The amendment made by this section shall take effect as if included in section 70511 of Public Law 119–21.

106. Reversion of termination for residential clean energy credit Section 25D(h) is amended by striking with respect to any expenditures made after December 31, 2025 and inserting to property placed in service after December 31, 2034. Section 25D(g) is amended by striking and at the end of paragraph (2), by striking 30 percent. at the end of paragraph (3) and inserting and before January 1, 2033, 30 percent, and by adding at the end the following new paragraphs: in the case of property placed in service after December 31, 2032, and before January 1, 2034, 26 percent, and in the case of property placed in service after December 31, 2033, and before January 1, 2035, 22 percent. The amendments made by this section shall take effect as if included in section 70506 of Public Law 119–21. (4)in the case of property placed in service after December 31, 2032, and before January 1, 2034, 26 percent, and (5)in the case of property placed in service after December 31, 2033, and before January 1, 2035, 22 percent..

107. Reinstatement of special rate for sustainable aviation fuel Section 45Z(a)(3) is amended to read as follows: In the case of a transportation fuel which is sustainable aviation fuel, paragraph (2) shall be applied— in the case of fuel produced at a qualified facility described in paragraph (2)(A), by substituting 35 cents for 20 cents, and in the case of fuel produced at a qualified facility described in paragraph (2)(B), by substituting $1.75 for $1.00. For purposes of subparagraph (A), the term sustainable aviation fuel means liquid fuel, the portion of which is not kerosene, which is sold for use in an aircraft and which— meets the requirements of— ASTM International Standard D7566, or the Fischer Tropsch provisions of ASTM International Standard D1655, Annex A1, and is not derived from palm fatty acid distillates or petroleum. Section 45Z(c)(1) is amended by striking and the $1.00 amount in subsection (a)(2)(B) and inserting the $1.00 amount in subsection (a)(2)(B), the 35 cent amount in subsection (a)(3)(A)(i), and the $1.75 amount in subsection (a)(3)(A)(ii). The amendments made by this section shall take effect as if included in section 70521 of Public Law 119–21. (3)Special rate for sustainable aviation fuel (A)In generalIn the case of a transportation fuel which is sustainable aviation fuel, paragraph (2) shall be applied— (i)in the case of fuel produced at a qualified facility described in paragraph (2)(A), by substituting 35 cents for 20 cents, and (ii)in the case of fuel produced at a qualified facility described in paragraph (2)(B), by substituting $1.75 for $1.00. (B)Sustainable aviation fuelFor purposes of subparagraph (A), the term sustainable aviation fuel means liquid fuel, the portion of which is not kerosene, which is sold for use in an aircraft and which— (i)meets the requirements of— (I)ASTM International Standard D7566, or (II)the Fischer Tropsch provisions of ASTM International Standard D1655, Annex A1, and (ii)is not derived from palm fatty acid distillates or petroleum..

201. Energy efficient home improvement credit Section 25C(h) is amended to read as follows: No credit shall be allowed under subsection (a) with respect to any item of specified property placed in service after December 31, 2024, unless— such item is produced by a qualified manufacturer, and the taxpayer includes the qualified product identification number of such item on the return of tax for the taxable year. For purposes of this section, the term qualified product identification number means, with respect to any item of specified property, the product identification number assigned to such item by the qualified manufacturer pursuant to the methodology referred to in paragraph (3). For purposes of this section, the term qualified manufacturer means any manufacturer of specified property which enters into an agreement with the Secretary which provides that such manufacturer will— assign a product identification number to each item of specified property produced by such manufacturer utilizing a methodology that will ensure that such number (including any alphanumeric) is unique to each such item (by utilizing numbers or letters which are unique to such manufacturer or by such other method as the Secretary may provide), label such item with such number in such manner as the Secretary may provide, and make periodic written reports to the Secretary (at such times and in such manner as the Secretary may provide) of the product identification numbers so assigned and including such information as the Secretary may require with respect to the item of specified property to which such number was so assigned. For purposes of this subsection, the term specified property means any qualified energy property and any property described in subparagraph (B) or (C) of subsection (c)(3). The amendment made by this section shall take effect as if included in the enactment of section 70505 of Public Law 119–21. (h)Product identification number requirement (1)In generalNo credit shall be allowed under subsection (a) with respect to any item of specified property placed in service after December 31, 2024, unless— (A)such item is produced by a qualified manufacturer, and (B)the taxpayer includes the qualified product identification number of such item on the return of tax for the taxable year. (2)Qualified product identification numberFor purposes of this section, the term qualified product identification number means, with respect to any item of specified property, the product identification number assigned to such item by the qualified manufacturer pursuant to the methodology referred to in paragraph (3). (3)Qualified manufacturerFor purposes of this section, the term qualified manufacturer means any manufacturer of specified property which enters into an agreement with the Secretary which provides that such manufacturer will— (A)assign a product identification number to each item of specified property produced by such manufacturer utilizing a methodology that will ensure that such number (including any alphanumeric) is unique to each such item (by utilizing numbers or letters which are unique to such manufacturer or by such other method as the Secretary may provide), (B)label such item with such number in such manner as the Secretary may provide, and (C)make periodic written reports to the Secretary (at such times and in such manner as the Secretary may provide) of the product identification numbers so assigned and including such information as the Secretary may require with respect to the item of specified property to which such number was so assigned. (4)Specified propertyFor purposes of this subsection, the term specified property means any qualified energy property and any property described in subparagraph (B) or (C) of subsection (c)(3)..

202. New energy efficient home credit Section 45L(h) is amended by striking acquired after June 30, 2026 and inserting acquired after December 31, 2032. The amendment made by this section shall take effect as if included in section 70508 of Public Law 119–21.

203. Repeal of termination of new energy efficient commercial buildings deduction Section 179D is amended by striking subsection (i). The amendment made by this section shall take effect as if included in section 70507 of Public Law 119–21.

204. Restoration of cost recovery for energy property Section 168(e)(3)(B)(vi) is amended— by redesignating subclauses (I) and (II) as subclauses (II) and (III), respectively, and by inserting before subclause (II) (as so redesignated) the following subclause: is described in subparagraph (A) of section 48(a)(3) (or would be so described if “solar or wind energy” were substituted for “solar energy” in clause (i) thereof and the last sentence of such section did not apply to such subparagraph), The amendment made by this section shall take effect as if included in section 70509 of Public Law 119–21. (I) is described in subparagraph (A) of section 48(a)(3) (or would be so described if “solar or wind energy” were substituted for “solar energy” in clause (i) thereof and the last sentence of such section did not apply to such subparagraph), .

301. Reversion of termination date for previously-owned vehicle credit Section 25E(g) is amended by striking acquired after September 30, 2025 and inserting acquired after December 31, 2032. The amendment made by this section shall take effect as if included in section 70501 of Public Law 119–21.

302. Reversion of termination date for clean vehicle credit Section 30D(h) is amended by striking acquired after September 30, 2025 and inserting placed in service after December 31, 2032. Section 30D(e)(1)(B) is amended by striking and at the end of clause (iii), by striking the period at the end of clause (iv) and inserting , and, and by adding at the end the following clause: in the case of a vehicle placed in service after December 31, 2026, 80 percent. Section 30D(e)(2)(B) is amended by striking and at the end of clause (ii), by striking the period at the end of clause (iii), and by adding at the end the following clauses: in the case of a vehicle placed in service during calendar year 2027, 80 percent, in the case of a vehicle placed in service during calendar year 2028, 90 percent, and in the case of a vehicle placed in service after December 31, 2028, 100 percent. The amendments made by this section shall take effect as if included in section 70502 of Public Law 119–21. (v)in the case of a vehicle placed in service after December 31, 2026, 80 percent.. (iv)in the case of a vehicle placed in service during calendar year 2027, 80 percent, (v)in the case of a vehicle placed in service during calendar year 2028, 90 percent, and (vi)in the case of a vehicle placed in service after December 31, 2028, 100 percent..

303. Reversion of termination date for qualified commercial clean vehicles credit Section 45W(g) is amended by striking September 30, 2025 and inserting December 31, 2032. The amendment made by this section shall take effect as if included in section 70503 of Public Law 119–21.

304. Reversion of termination date for alternative fuel vehicle refueling property credit Section 30C(i) is amended by striking June 30, 2026 and inserting December 31, 2032. The amendment made by this section shall take effect as if included in section 70504 of Public Law 119–21.