Solar Energy Manufacturing for America Act
This bill allows a new tax credit for the production and sale of certain solar equipment produced and sold in a taxpayer's trade or business.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5423 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 5423
To amend the Internal Revenue Code of 1986 to establish the advanced
solar manufacturing production credit.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 29, 2021
Mr. Kildee (for himself, Mr. Blumenauer, Ms. DelBene, Mr. Ryan, Mr.
Schneider, Ms. Bourdeaux, Mr. Krishnamoorthi, Mr. Cleaver, Mr. Higgins
of New York, and Mr. Swalwell) introduced the following bill; which was
referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to establish the advanced
solar manufacturing production credit.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Solar Energy Manufacturing for
America Act''.
SEC. 2. ADVANCED SOLAR MANUFACTURING PRODUCTION CREDIT.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 36C. ADVANCED SOLAR MANUFACTURING PRODUCTION CREDIT.
``(a) In General.--
``(1) Allowance of credit.--There shall be allowed as a
credit against the tax imposed by this subtitle for any taxable
year an amount equal to the sum of the credit amounts
determined under subsection (b) with respect to each solar
component which is--
``(A) produced by such taxpayer, and
``(B) during the taxable year--
``(i) sold by the taxpayer to--
``(I) an unrelated person, or
``(II) a related person for the use
of such person in their trade or
business (with the exception of any
trade or business related to resale of
such solar component without any
subsequent modification, assembly, or
integration into a project), or
``(ii) placed in service or operation by
the taxpayer or any other person.
``(2) Production and sale must be in trade or business.--
Any solar component produced and sold by the taxpayer shall be
taken into account only if the production and sale described in
paragraph (1) is in a trade or business of the taxpayer.
``(b) Credit Amount.--
``(1) In general.--Subject to paragraph (3), the amount
determined under this subsection with respect to any solar
component shall be equal to--
``(A) in the case of an integrated module, an
amount equal to the product of--
``(i) 11 cents, multiplied by
``(ii) the capacity of such module
(expressed on a per direct current watt basis),
``(B) in the case of a photovoltaic cell, an amount
equal to the product of--
``(i) 4 cents, multiplied by
``(ii) the capacity of such cell (expressed
on a per direct current watt basis),
``(C) in the case of a photovoltaic wafer, $12 per
square meter,
``(D) in the case of solar grade polysilicon, $3
per kilogram,
``(E) in the case of a solar module which is not an
integrated module, an amount equal to the product of--
``(i) 7 cents, multiplied by
``(ii) the capacity of such module
(expressed on a per direct current watt basis),
``(F) in the case of a solar tracker torque tube,
an amount equal to the product of--
``(i) 87 cents, multiplied by
``(ii) the mass of such torque tube
(expressed on a per kilogram basis),
``(G) in the case of a solar tracker longitudinal
purlin, an amount equal to the product of--
``(i) 87 cents, multiplied by
``(ii) the mass of such longitudinal purlin
(expressed on a per kilogram basis),
``(H) in the case of a solar structural fastener,
an amount equal to the product of--
``(i) $2.28, multiplied by
``(ii) the mass of such structural fastener
(expressed on a per kilogram basis), and
``(I) in the case of an inverter, an amount equal
to the product of--
``(i) the applicable amount, multiplied by
``(ii) the capacity of such inverter
(expressed on a per alternating current watt
basis).
``(2) Applicable amount.--For purposes of paragraph (1)(I),
the applicable amount with respect to any inverter shall be--
``(A) in the case of a central inverter, 0.25
cents,
``(B) in the case of a utility-scale inverter, 1.5
cents,
``(C) in the case of a commercial inverter, 2
cents,
``(D) in the case of a residential inverter, 6.5
cents, and
``(E) in the case of a microinverter, 11 cents.
``(3) Phase out.--
``(A) In general.--In the case of any solar
component sold after December 31, 2028, the amount
determined under this subsection with respect to such
component shall be equal to the product of--
``(i) the amount determined under paragraph
(1) with respect to such component, as
determined without regard to this paragraph,
multiplied by
``(ii) the phase out percentage under
subparagraph (B).
``(B) Phase out percentage.--The phase out
percentage under this subparagraph is equal to--
``(i) in the case of a solar component sold
during calendar year 2029, 70 percent,
``(ii) in the case of a solar component
sold during calendar year 2030, 35 percent, and
``(iii) in the case of a solar component
sold after December 31, 2030, 0 percent.
``(c) Definitions and Other Rules.--In this section--
``(1) Solar component.--The term `solar component' means
any property described in paragraph (2).
``(2) Other definitions.--
``(A) Integrated module.--The term `integrated
module' means a solar module produced by a single
manufacturer through the conversion of a photovoltaic
wafer or other semiconductor material into an end
product which is--
``(i) suitable to generate electricity when
exposed to sunlight, and
``(ii) ready for installation without
additional manufacturing processes.
``(B) Photovoltaic cell.--The term `photovoltaic
cell' means the smallest semiconductor element of a
solar module which performs the immediate conversion of
light into electricity.
``(C) Photovoltaic wafer.--The term `photovoltaic
wafer' means a thin slice or sheet of semiconductor
material of at least 240 square centimeters produced by
a single manufacturer--
``(i) either--
``(I) directly from molten solar
grade polysilicon, or
``(II) through formation of an
ingot from molten polysilicon and
subsequent slicing, and
``(ii) which comprises the substrate of a
photovoltaic cell.
``(D) Solar grade polysilicon.--The term `solar
grade polysilicon' means silicon which is--
``(i) suitable for use in photovoltaic
manufacturing, and
``(ii) purified to a minimum purity of
99.999999 percent silicon by mass.
``(E) Solar module.--The term `solar module' means
the connection and lamination of photovoltaic cells
into an environmentally protected final assembly which
is--
``(i) suitable to generate electricity when
exposed to sunlight, and
``(ii) ready for installation without an
additional manufacturing process.
``(F) Solar tracker components.--
``(i) In general.--The term `solar tracker'
means a structural support element which
supports and mechanically moves solar panels to
varying angles with respect to the position of
the sun to optimize solar panel output
throughout the day.
``(ii) Solar tracker torque tube.--The term
`solar tracker torque tube' means a tubular
structural steel support element of any cross-
sectional shape which--
``(I) is part of a solar tracker,
``(II) may be assembled from
individually manufactured segments,
``(III) spans longitudinally
between foundation posts,
``(IV) supports a solar panel (with
or without the use of additional
support rails), and
``(V) is rotated by means of a
drive system.
``(iii) Solar tracker longitudinal
purlin.--The term `solar tracker longitudinal
purlin' means a structural steel support
element which satisfies the conditions
described in subclauses (I) through (V) of
clause (ii).
``(iv) Solar structural fastener.--The term
`solar structural fastener' means a component
which is used to connect--
``(I) segments of a solar tracker
torque tube or solar tracker
longitudinal purlin,
``(II) the mechanical and drive
system components of a solar tracker to
the foundation of such solar tracker,
or
``(III) solar tracker torque tubes
or solar tracker longitudinal purlins
to drive assemblies.
``(G) Inverters.--
``(i) In general.--The term `inverter'
means an end product which is suitable to
convert direct current electricity into
alternating current electricity.
``(ii) Central inverter.--The term `central
inverter' means an inverter which is suitable
for large utility-scale systems and has a
capacity which is greater than 1,500 kilowatts
(expressed on a per alternating current watt
basis).
``(iii) Commercial inverter.--The term
`commercial inverter' means an inverter which--
``(I) is suitable for commercial
applications,
``(II) has a rated output of 208,
480, or 600 volt three-phase power, and
``(III) has a capacity which is not
less than 20 kilowatts and not greater
than 170 kilowatts (expressed on a per
alternating current watt basis).
``(iv) Microinverter.--The term
`microinverter' means an inverter which--
``(I) is suitable to connect with
at least one integrated module or solar
module,
``(II) has a rated output of 120
volt single-phase power, and
``(III) has a capacity which is not
greater than 650 watts (expressed on a
per alternating current watt basis).
``(v) Residential inverter.--The term
`residential inverter' means an inverter
which--
``(I) is suitable to connect with
at least one integrated module or solar
module for a residence,
``(II) has a rated output of 120
volt single-phase power, and
``(III) has a capacity which is not
greater than 20 kilowatts (expressed on
a per alternating current watt basis).
``(vi) Utility-scale inverter.--The term
`utility-scale inverter' means an inverter
which--
``(I) is suitable for large
utility-scale systems,
``(II) has a rated output of not
less than 480 volt three-phase power,
and
``(III) has a capacity which is
greater than 170 kilowatts and not
greater than 1,500 kilowatts (expressed
on a per alternating current watt
basis).
``(3) Related persons.--Persons shall be treated as related
to each other if such persons would be treated as a single
employer under the regulations prescribed under section 52(b).
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 components to an
unrelated person if such component is sold to such a person by
another member of such group.
``(4) Only production in the united states taken into
account.--Sales shall be taken into account under this section
only with respect to solar components the production of which
is within--
``(A) the United States (within the meaning of
section 638(1)), or
``(B) a possession of the United States (within the
meaning of section 638(2)).
``(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.
``(d) Registration.--
``(1) In general.--The Secretary shall require any person
claiming tax benefits under the provisions of this section to
register with the Secretary at such time, in such form and
manner, and subject to such terms and conditions, as the
Secretary may by regulations prescribe. A registration under
this subsection may be used only in accordance with regulations
prescribed under this subsection.
``(2) Registration in event of change in ownership.--Under
regulations prescribed by the Secretary, a person (other than a
corporation the stock of which is regularly traded on an
established securities market) shall be required to re-register
under this subsection if after a transaction (or series of
related transactions) more than 50 percent of ownership
interests in, or assets of, such person are held by persons
other than persons (or persons related thereto) who held more
than 50 percent of such interests or assets before the
transaction (or series of related transactions).
``(3) Denial, revocation, or suspension of registration.--
Rules similar to the rules of section 4222(c) shall apply to
registration under this section.
``(4) Information reporting.--The Secretary may require--
``(A) information reporting by any person
registered under this subsection, and
``(B) information reporting by such other persons
as the Secretary deems necessary to carry out this
section.''.
(b) Conforming Amendments.--
(1) Section 6211(b)(4)(A) of the Internal Revenue Code of
1986 is amended by inserting ``36C,'' after ``36B,''.
(2) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting ``36C,'' after ``36B,''.
(3) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of 1986
is amended by inserting after the item relating to section 36B
the following new item:
``Sec. 36C. Advanced solar manufacturing production credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to components produced and sold after December 31, 2021.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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