Bill Summary
The "Certainty for Our Energy Future Act" aims to amend the Internal Revenue Code of 1986 by terminating certain tax credits related to clean electricity production and investment for specific technologies.
Key provisions include:
1. **Termination of Clean Electricity Production and Investment Credits**: The bill ends the clean electricity production credit and the clean electricity investment credit for wind and solar energy facilities that begin construction after December 31, 2030. This means that any new wind or solar projects initiated after this date will not be eligible for these tax incentives.
2. **Definition of Construction Start**: The bill specifies how to determine the beginning of construction for these credits, referencing existing guidance that outlines various tests and requirements.
3. **Denial of Benefits to Certain Foreign Entities**: The legislation includes a provision that denies clean energy tax benefits to companies identified as "disqualified companies," which are defined as entities controlled by governments of designated "countries of concern" (China, Russia, Iran, and North Korea). This aims to prevent foreign influence in the U.S. energy sector.
4. **Implementation Guidance**: The Secretary of the Treasury is tasked with issuing guidance for the implementation of these changes within 180 days of the bill's enactment.
Overall, the Act seeks to phase out certain tax incentives for wind and solar energy and restrict benefits to companies connected with specific foreign nations in an effort to bolster national security and stabilize the energy sector.
Possible Impacts
Here are three examples of how the proposed legislation could affect people:
1. **Impact on Renewable Energy Jobs**: By terminating the clean electricity production credit and the clean electricity investment credit for wind and solar technologies for projects commencing after December 31, 2030, the legislation may deter investments in these renewable energy sectors. This could lead to a reduction in job opportunities for workers in the renewable energy industry, as fewer projects would be initiated, ultimately affecting employment rates in regions reliant on green energy jobs.
2. **Increased Electricity Costs for Consumers**: The removal of tax credits for clean electricity production could lead to higher costs for developing wind and solar energy projects. If producers face higher costs without the benefit of tax incentives, they may pass these costs onto consumers in the form of higher electricity rates. This could particularly affect families and low-income households, as they may struggle with increased utility bills.
3. **Restrictions on Foreign Investment in Clean Energy**: The provision that denies clean energy tax benefits to companies connected to "countries of concern" (such as China, Russia, Iran, and North Korea) may limit the ability of some clean energy companies to secure financing or partnerships. This could hinder the growth and technological advancement of the clean energy sector in the U.S., potentially resulting in a slower transition to renewable energy sources, which would affect environmental sustainability efforts and the overall energy landscape.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3291 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 3291
To amend the Internal Revenue Code of 1986 to terminate the clean
electricity production credit and clean electricity investment credit
with respect to certain technologies, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 8, 2025
Mrs. Kiggans of Virginia (for herself, Mr. Garbarino, Mr. Valadao, Mr.
Newhouse, and Mr. Amodei of Nevada) 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 terminate the clean
electricity production credit and clean electricity investment credit
with respect to certain technologies, and for other purposes.
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 ``Certainty for Our Energy Future
Act''.
SEC. 2. TERMINATION OF CLEAN ELECTRICITY PRODUCTION CREDIT WITH RESPECT
TO CERTAIN TECHNOLOGIES.
(a) In General.--Section 45Y(d) of the Internal Revenue Code of
1986 is amended by adding at the end the following new paragraphs:
``(4) Special rule for wind and solar energy.--The term
`qualified facility' shall not include any facility used for
the generation of electricity using wind or solar energy the
construction of which begins after December 31, 2030.
``(5) Beginning of construction definition.--For purposes
of determining when construction begins for purposes of this
section, principles similar to those under Notice 2013-29,
2013-20 I.R.B. 1085, and any subsequent guidance clarifying,
modifying, or updating such notice, as in effect on January 1,
2025, including the Physical Work Test, Five Percent Safe
Harbor, Continuity Requirement, and Continuity Safe Harbor,
shall apply.''.
(b) Effective Date.--The amendment made by this section shall take
effect on January 1, 2026.
SEC. 3. TERMINATION OF CLEAN ELECTRICITY INVESTMENT CREDIT WITH RESPECT
TO CERTAIN TECHNOLOGIES.
(a) In General.--Section 48E(e) of the Internal Revenue Code of
1986 is amended by adding at the end the following new paragraphs:
``(4) Special rule for wind and solar energy.--The term
`qualified facility' shall not include any facility used for
the generation of electricity using wind or solar energy the
construction of which begins after December 31, 2030.
``(5) Beginning of construction definition.--For purposes
of determining when construction begins for purposes of this
section, principles similar to those under Notice 2013-29,
2013-20 I.R.B. 1085, and any subsequent guidance clarifying,
modifying, or updating such notice, as in effect on January 1,
2025, including the Physical Work Test, Five Percent Safe
Harbor, Continuity Requirement, and Continuity Safe Harbor,
shall apply.''.
(b) Effective Date.--The amendment made by this section shall take
effect on January 1, 2026.
SEC. 4. DENIAL OF CLEAN ENERGY TAX BENEFITS TO COMPANIES CONNECTED TO
COUNTRIES OF CONCERN.
(a) In General.--Chapter 77 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new section:
``SEC. 7531. DENIAL OF CLEAN ENERGY TAX BENEFITS TO COMPANIES CONNECTED
TO COUNTRIES OF CONCERN.
``(a) In General.--In the case of any taxpayer that is a
disqualified company, this title shall be applied without regard to
sections 30C, 40, 40A, 40B, 45, 45Q, 45U, 45V, 45W, 45X, 45Y, 45Z, 48,
48C, 48E, 179D, 6426(c), 6426(d), 6426(e), and 6427(e).
``(b) Disqualified Company.--For purposes of this section--
``(1) In general.--The term `disqualified company' means
any entity--
``(A) created or organized under the laws of, or
controlled by, one or more governments of a foreign
country that is a country of concern, or
``(B) controlled (in the aggregate) by one or more
entities described in subparagraph (A).
``(2) Country of concern.--The term `country of concern'
means the People's Republic of China, the Russian Federation,
the Islamic Republic of Iran, or the Democratic People's
Republic of Korea.
``(3) Control.--The term `control' has the meaning given
such term under section 954(d)(3), determined by treating the
rules of section 958(a)(2) as applying to both foreign and
domestic corporations, partnerships, trusts, and estates.
``(4) Government of a foreign country.--The term
`government of a foreign country' means a national government
of a foreign country, an agency or government instrumentality
of a national government of a foreign country, a dominant or
ruling political party of a foreign country, or any individual
currently in a senior role of a country of concern and with
substantial authority over policy, operations, or the use of
government-owned resources of the foreign country.''.
(b) Clerical Amendment.--The table of sections for chapter 77 of
such Code is amended by adding at the end the following new item:
``Sec. 7531. Denial of clean energy tax benefits to companies connected
to countries of concern.''.
(c) Guidance.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of the Treasury (or the
Secretary's delegate) shall issue guidance regarding implementation of
this section.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning on or after the date that is 180 days
after the date on which the Secretary publishes guidance under
subsection (c).
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