119th CONGRESS 1st Session |
To amend the Internal Revenue Code of 1986 to restore certain energy-related provisions as in effect prior to the enactment of Public Law 119–21.
October 28, 2025
Mr. Thompson of California (for himself, Mr. Neal, Mr. Doggett, Mr. Larson of Connecticut, Mr. Davis of Illinois, Ms. Sánchez, Ms. Sewell, Ms. DelBene, Ms. Chu, Ms. Moore of Wisconsin, Mr. Boyle of Pennsylvania, Mr. Beyer, Mr. Evans of Pennsylvania, Mr. Schneider, Mr. Panetta, Mr. Gomez, Mr. Horsford, Ms. Plaskett, Mr. Suozzi, Mr. Fields, Ms. Barragán, Ms. Ansari, Mr. Tonko, Mr. Cleaver, Mr. Carter of Louisiana, Mr. Vargas, Mr. Tran, Ms. Matsui, Ms. Salinas, Ms. McCollum, Mr. Garcia of California, Mr. Norcross, Ms. Castor of Florida, Mr. Garamendi, Mr. Scott of Virginia, Mr. Lieu, Ms. DeGette, Mr. Lynch, Mrs. Cherfilus-McCormick, Ms. Norton, Mrs. McIver, Ms. Kelly of Illinois, Mr. Landsman, Ms. Simon, Mr. Casten, Mr. Goldman of New York, Ms. Tokuda, Mr. Vicente Gonzalez of Texas, Mr. Kennedy of New York, Mr. DeSaulnier, Mr. Min, Mrs. Foushee, Ms. Elfreth, Mr. Magaziner, Mr. Deluzio, Ms. Brownley, Mr. Costa, Mr. Mfume, Ms. Morrison, Mr. Mullin, Ms. Williams of Georgia, Ms. Pettersen, Ms. Lofgren, Ms. Ross, Mr. Courtney, Mr. Takano, Ms. Scholten, Mr. Espaillat, Mr. Correa, Mr. Jackson of Illinois, Ms. Schakowsky, Ms. Titus, Mr. Stanton, Ms. McClellan, Mr. McGarvey, Ms. Budzinski, Mr. Huffman, Ms. Friedman, Mr. Carbajal, Mr. Bell, Ms. McBride, Mr. Quigley, Ms. Scanlon, Ms. Randall, Mr. Carson, Ms. Bynum, Mr. Hoyer, Mr. Nadler, Mr. Torres of New York, Ms. Kamlager-Dove, Mr. Ruiz, Ms. Pingree, Mr. Mrvan, Ms. Lois Frankel of Florida, Mr. Cohen, Ms. Bonamici, Mr. Larsen of Washington, Ms. Jacobs, Mr. Gottheimer, Mr. Khanna, Ms. Garcia of Texas, Mr. Latimer, Mr. Thanedar, Ms. Johnson of Texas, Mr. Foster, Ms. Davids of Kansas, Ms. McDonald Rivet, Mr. Amo, Mr. Sorensen, Mr. Thompson of Mississippi, Ms. Stansbury, Mr. Menendez, Ms. Waters, Mr. McGovern, and Mr. Moulton) introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to restore certain energy-related provisions as in effect prior to the enactment of Public Law 119–21.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
(a) Short title.—This Act may be cited as the “American Energy Independence and Affordability Act”.
(b) References to the Internal Revenue Code of 1986.—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.
The table of contents of this Act is as follows:
Sec. 1. Short title, etc.
Sec. 2. Table of contents.
Sec. 101. Clean energy production credit.
Sec. 102. Clean electricity investment credit.
Sec. 103. Advanced manufacturing production credit.
Sec. 104. Repeal of restriction on the extension of advance energy project credit program.
Sec. 105. Reversion of construction date for clean hydrogen production credit.
Sec. 106. Reversion of termination for residential clean energy credit.
Sec. 107. Reinstatement of special rate for sustainable aviation fuel.
Sec. 201. Energy efficient home improvement credit.
Sec. 202. New energy efficient home credit.
Sec. 203. Repeal of termination of new energy efficient commercial buildings deduction.
Sec. 204. Restoration of cost recovery for energy property.
Sec. 301. Reversion of termination date for previously-owned vehicle credit.
Sec. 302. Reversion of termination date for clean vehicle credit.
Sec. 303. Reversion of termination date for qualified commercial clean vehicles credit.
Sec. 304. Reversion of termination date for alternative fuel vehicle refueling property credit.
(a) Restoration of phase-Out.—Section 45Y(d)(3) is amended by striking “calendar year 2032.” and insertingmeans 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.”.
(b) Restoration of credit for wind and solar facilities.—Section 45Y(d) 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) Restoration of credit for wind and solar leasing arrangements.—Section 45Y is amended by striking subsection (h).
(d) Repeal of provision for existing studies.—Section 45Y(b)(2)(C) is amended by striking clause (iii).
(e) Effective dates.—The amendments made by this section shall take effect as if included in section 70512 of Public Law 119–21.
(a) Repeal of termination for wind and solar facilities.—Section 48E(e) is amended—
(1) in paragraph (1), by striking “Subject to paragraph (4), the amount” and inserting “The amount”, and
(2) by striking paragraph (4).
(b) Restoration of credit for expenditures for wind and solar leasing arrangements.—
(1) IN GENERAL.—Section 48E is amended by striking subsection (i) and by redesignating subsections (j) and (k) as subsections (i) and (j), respectively.
(2) CONFORMING RULE REPEAL.—Section 50 is amended by striking subsection (e).
(c) Restoration of credit for certain energy property.—Section 48(a)(2)(A)(ii) is amended by striking “0 percent” and inserting “2 percent”.
(d) Effective dates.—The amendments made by this section shall take effect as if included in section 70513 of Public Law 119–21.
(a) Repeal of inclusion of metallurgical coal as an applicable critical mineral.—Section 45X(c)(6) is amended by striking subparagraph (R) and by redesignating subparagraphs (S) through (AA) as subparagraphs (R) through (ZZ), respectively.
(b) Repeal of termination for wind energy components.—Section 45X(b)(3) is amended by striking subparagraph (D).
(1) Section 45X(b)(1)(M) is amended by striking “(2.5 percent in the case of metallurgical coal)”.
(2) The heading of section 45X(b)(3) is amended by striking “and termination”.
(3) Section 45X(b)(3)(A) is amended by striking “subparagraphs (C) and (D)” and inserting “subparagraph (C)”.
(4) The heading of section 45X(b)(3)(C) is amended by striking “other than metallurgical coal”.
(5) The heading of section 45X(b)(3)(C)(ii) is amended by striking “other than metallurgical coal”.
(6) Section 45X(b)(3) is amended by striking subparagraph (E).
(d) Effective date.—The amendments made by this section shall take effect as if included in section 70514 of Public Law 119–21.
(a) In general.—Section 48C(e)(3)(C) is amended by striking “shall not be increased” and inserting “shall be increased”.
(b) Effective date.—The amendment made by this section shall take effect as if included in section 70515 of Public Law 119–21.
(a) In general.—Section 45V(c)(3)(C) is amended by striking “January 1, 2028” and inserting “January 1, 2033”.
(b) Effective date.—The amendment made by this section shall take effect as if included in section 70511 of Public Law 119–21.
(a) In general.—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”.
(b) Conforming amendment.—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:
“(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.”.
(c) Effective date.—The amendments made by this section shall take effect as if included in section 70506 of Public Law 119–21.
(a) In general.—Section 45Z(a)(3) is amended to read as follows:
“(3) SPECIAL RATE FOR SUSTAINABLE AVIATION FUEL.—
“(A) IN GENERAL.—In 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 FUEL.—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—
“(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.”.
(b) Conforming amendment.—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)”.
(c) Effective date.—The amendments made by this section shall take effect as if included in section 70521 of Public Law 119–21.
(a) Restoring product identification number requirement.—Section 25C(h) is amended to read as follows:
“(h) Product identification number requirement.—
“(1) IN GENERAL.—No 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 NUMBER.—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).
“(3) QUALIFIED MANUFACTURER.—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—
“(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 PROPERTY.—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).”.
(b) Effective date.—The amendment made by this section shall take effect as if included in the enactment of section 70505 of Public Law 119–21.
(a) In general.—Section 45L(h) is amended by striking “acquired after June 30, 2026” and inserting “acquired after December 31, 2032”.
(b) Effective date.—The amendment made by this section shall take effect as if included in section 70508 of Public Law 119–21.
(a) In general.—Section 179D is amended by striking subsection (i).
(b) Effective date.—The amendment made by this section shall take effect as if included in section 70507 of Public Law 119–21.
(a) In general.—Section 168(e)(3)(B)(vi) is amended—
(1) by redesignating subclauses (I) and (II) as subclauses (II) and (III), respectively, and
(2) by inserting before subclause (II) (as so redesignated) the following subclause:
“(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),”.
(b) Effective date.—The amendment made by this section shall take effect as if included in section 70509 of Public Law 119–21.
(a) In general.—Section 25E(g) is amended by striking “acquired after September 30, 2025” and inserting “acquired after December 31, 2032”.
(b) Effective date.—The amendment made by this section shall take effect as if included in section 70501 of Public Law 119–21.
(a) In general.—Section 30D(h) is amended by striking “acquired after September 30, 2025” and inserting “placed in service after December 31, 2032”.
(1) 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:
“(v) in the case of a vehicle placed in service after December 31, 2026, 80 percent.”.
(2) 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:
“(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.”.
(c) Effective date.—The amendments made by this section shall take effect as if included in section 70502 of Public Law 119–21.
(a) In general.—Section 45W(g) is amended by striking “September 30, 2025” and inserting “December 31, 2032”.
(b) Effective date.—The amendment made by this section shall take effect as if included in section 70503 of Public Law 119–21.
(a) In general.—Section 30C(i) is amended by striking “June 30, 2026” and inserting “December 31, 2032”.
(b) Effective date.—The amendment made by this section shall take effect as if included in section 70504 of Public Law 119–21.