[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4175 Introduced in Senate (IS)]

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119th CONGRESS
  2d Session
                                S. 4175

    To amend the Internal Revenue Code of 1986 to extend the clean 
  electricity production credit and the clean electricity investment 
credit based on increases in the price of, and demand for, electricity, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 24, 2026

   Mr. Wyden introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to extend the clean 
  electricity production credit and the clean electricity investment 
credit based on increases in the price of, and demand for, electricity, 
                        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. EXTENSION OF CLEAN ENERGY PRODUCTION, INVESTMENT, AND 
              RESIDENTIAL CREDITS BASED ON PRICE AND DEMAND INCREASES.

    (a) Production Credit.--Section 45Y(d) of the Internal Revenue Code 
of 1986 is amended--
            (1) in paragraph (1), by striking ``Subject to paragraph 
        (4), the amount'' and inserting ``The amount'',
            (2) by striking paragraph (3) and inserting the following 
        new paragraph:
            ``(3) Applicable year.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `applicable year' means the later of--
                            ``(i) the calendar year that is 6 years 
                        subsequent to any price or demand increase year 
                        (as determined under subparagraph (B)), or
                            ``(ii) 2032.
                    ``(B) Price or demand increase year.--
                            ``(i) In general.--For purposes of this 
                        paragraph, the term `price or demand increase 
                        year' means a calendar year in which, as 
                        reported in the Electric Power Annual (or any 
                        similar report) published by the Energy 
                        Information Administration--
                                    ``(I) the national average price of 
                                electricity provided by the total 
                                electric industry to ultimate customers 
                                in all sectors is more than 2 percent 
                                higher than in the most recent previous 
                                calendar year for which such data is 
                                available, or
                                    ``(II) the total annual sales of 
                                electricity provided by the total 
                                electric industry to ultimate customers 
                                in all sectors (measured in megawatt-
                                hours) is greater than in the most 
                                recent previous year for which such 
                                data is available.
                            ``(ii) Determination.--For purposes of 
                        determining whether any year qualifies as a 
                        price or demand increase year, the Secretary 
                        shall make such determination--
                                    ``(I) with respect to calendar year 
                                2025, before January 1, 2027, and
                                    ``(II) with respect to any 
                                subsequent calendar year, before 
                                January 1 of the first calendar year 
                                beginning after the date on which the 
                                Electric Power Annual (or any similar 
                                report) is published with respect to 
                                such year.
                            ``(iii) Application after initial phase-out 
                        of credit.--In the case of a determination by 
                        the Secretary that a year qualifies as a price 
                        or demand increase year, if such determination 
                        is made during a year in which the phase-out 
                        percentage is applicable under paragraph (2)--
                                    ``(I) the applicable year shall be 
                                deemed to be the calendar year that is 
                                6 years subsequent to such price or 
                                demand increase year, and
                                    ``(II) during the 6-year period 
                                subsequent to such price or demand 
                                increase year, the phase-out percentage 
                                shall be deemed to be 100 percent.'', 
                                and
            (3) by striking paragraph (4).
    (b) Investment Credit.--Section 48E(e) of the Internal Revenue Code 
of 1986 is amended--
            (1) in paragraph (1), by striking ``Subject to paragraph 
        (4), the amount'' and inserting ``The amount'', and
            (2) by striking paragraph (4).
    (c) Energy Efficient Home Improvement Credit.--Section 25C(i) of 
the Internal Revenue Code of 1986 is amended--
            (1) by striking ``This section'' and inserting the 
        following:
            ``(1) In general.--Subject to paragraph (2), this 
        section'', and
            (2) by adding at the end the following new paragraph:
            ``(2) Renewed application of credit following price or 
        demand increase years.--In the case of any calendar year that, 
        pursuant to section 45Y(d)(3), is determined by the Secretary 
        to qualify as a price or demand increase year (as defined under 
        such section), paragraph (1) shall not apply with respect to 
        property placed in service during the period of the first 2 
        calendar years beginning after the date that such determination 
        was made by the Secretary.''.
    (d) Residential Clean Energy Credit.--Section 25D(h) of the 
Internal Revenue Code of 1986 is amended--
            (1) by striking ``The credit'' and inserting the following:
            ``(1) In general.--Subject to paragraph (2), the credit'', 
        and
            (2) by adding at the end the following new paragraph:
            ``(2) Renewed application of credit following price or 
        demand increase years.--In the case of any calendar year that, 
        pursuant to section 45Y(d)(3), is determined by the Secretary 
        to qualify as a price or demand increase year (as defined under 
        such section), paragraph (1) shall not apply with respect to 
        expenditures made during the period of the first 2 calendar 
        years beginning after the date that such determination was made 
        by the Secretary.''.

SEC. 2. ELIMINATING DENIAL OF CREDIT FOR WIND AND SOLAR LEASING 
              ARRANGEMENTS.

    (a) Production Credit.--Section 45Y of the Internal Revenue Code of 
1986 is amended by striking subsection (h).
    (b) Investment Credit.--Section 48E of the Internal Revenue Code of 
1986 is amended by striking subsection (i).
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of enactment of this 
Act.
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