Renewable Energy Investment Act

I 117TH CONGRESS 1ST SESSION H. R. 3180 To amend the Internal Revenue Code of 1986 to provide an elective payment for energy property and electricity produced from certain renewable re- sources, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MAY 13, 2021 Mr. BLUMENAUER (for himself, Mr. LEVIN of California, Mr. BEYER, Ms. DELBENE, Mr. GOMEZ, Mr. HORSFORD, Mr. LARSON of Connecticut, Mr. PANETTA, and Ms. ROSS) 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 provide an elective payment for energy property and electricity produced from certain renewable resources, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Renewable Energy In- 4 vestment Act’’. 5 VerDate Sep 11 2014 22:24 Jun 14, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3180.IH H3180 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 3180 IH SEC. 2. ELECTIVE PAYMENT FOR ENERGY PROPERTY AND 1 ELECTRICITY PRODUCED FROM CERTAIN RE- 2 NEWABLE RESOURCES, ETC. 3 (a) IN GENERAL.—Subchapter B of chapter 65 of the 4 Internal Revenue Code of 1986 is amended by adding at 5 the end the following new section: 6 ‘‘SEC. 6431. ELECTIVE PAYMENT FOR ENERGY PROPERTY 7 AND ELECTRICITY PRODUCED FROM CER- 8 TAIN RENEWABLE RESOURCES, ETC. 9 ‘‘(a) ENERGY PROPERTY.—In the case of a taxpayer 10 making an election under this subsection (at such time 11 and in such manner as the Secretary may provide) with 12 respect to any portion of an applicable credit, such tax- 13 payer shall be treated as making a payment against the 14 tax imposed by subtitle A for the taxable year equal to 15 the amount of such portion. 16 ‘‘(b) APPLICATION TO PARTNERSHIPS AND S COR- 17 PORATIONS.— 18 ‘‘(1) IN GENERAL.—In the case of any applica- 19 ble credit determined with respect to any qualified 20 resources, qualified facility, or energy property held 21 directly by a partnership or S corporation, if such 22 partnership or S corporation makes an election 23 under this subsection (in such manner as the Sec- 24 retary may provide) with respect to any portion of 25 such credit— 26 VerDate Sep 11 2014 22:24 Jun 14, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3180.IH H3180 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 3180 IH ‘‘(A) the Secretary shall make a payment 1 to such partnership or S corporation equal to 2 the amount of such portion, 3 ‘‘(B) subsection (e)(1) shall be applied 4 with respect to such credit before determining 5 any partner’s distributive share, or share- 6 holder’s pro rata share, of such credit, and 7 ‘‘(C) any amount excluded from gross in- 8 come by reason of subsection (e)(2) shall be 9 treated as tax exempt income for purposes of 10 sections 705 and 1366. 11 ‘‘(2) COORDINATION WITH APPLICATION AT 12 PARTNER OR SHAREHOLDER LEVEL.—In the case of 13 any partnership or S corporation, subsection (a) 14 shall be applied at the partner or shareholder level 15 after application of paragraph (1)(B). 16 ‘‘(3) IRREVOCABLE ELECTION.—Any election 17 under this subsection shall be made not later than 18 the due date (including extensions of time) for the 19 partnership or S corporation return for the taxable 20 year for which the applicable credit is determined. 21 Any such election, once made, shall be irrevocable. 22 ‘‘(c) APPLICATION TO GOVERNMENTAL ENTITIES.— 23 In the case of an election under this section— 24 VerDate Sep 11 2014 22:24 Jun 14, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3180.IH H3180 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 3180 IH ‘‘(1) any State or local government, or a polit- 1 ical subdivision thereof, or 2 ‘‘(2) an Indian tribal government (within the 3 meaning of section 139E), 4 shall not fail to be treated as a taxpayer for purposes of 5 this section and determining any applicable credit. 6 ‘‘(d) APPLICABLE CREDIT.—For purposes of this sec- 7 tion, the term ‘applicable credit’ means each of the fol- 8 lowing credits determined with respect to the taxpayer: 9 ‘‘(1) The energy credit under section 48. 10 ‘‘(2) The renewable electricity production credit 11 under section 45. 12 ‘‘(e) SPECIAL RULES.— 13 ‘‘(1) DENIAL OF DOUBLE BENEFIT.—Solely for 14 purposes of section 38, in the case of a taxpayer 15 making an election under this section with respect to 16 any applicable credit, such credit shall be reduced by 17 the amount of the portion of such credit with respect 18 to which the taxpayer makes such election. 19 ‘‘(2) EXCLUSION FROM GROSS INCOME.—Gross 20 income of the taxpayer shall be determined without 21 regard to this section. 22 ‘‘(3) TIMING OF DEEMED PAYMENT.—The pay- 23 ment described in subsection (a) shall be treated as 24 made on— 25 VerDate Sep 11 2014 22:24 Jun 14, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3180.IH H3180 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 3180 IH ‘‘(A) in the case of any government, or po- 1 litical subdivision, to which paragraph (1) ap- 2 plies and for which no return is required under 3 section 6011 or 6033(a), the later of the date 4 that a return would be due under section 5 6033(a) if such government or subdivision were 6 described in that section or the date on which 7 such government or subdivision submits a claim 8 for credit or refund (at such time and in such 9 manner as the Secretary shall provide), and 10 ‘‘(B) in any other case, the later of the due 11 date of the return of tax for the taxable year 12 or the date on which such return is filed. 13 ‘‘(4) WAIVER OF SPECIAL RULES.—In the case 14 of an election under this section, the determination 15 of any applicable credit shall be without regard to 16 paragraphs (3) and (4)(A)(i) of section 50(b). 17 ‘‘(5) TREATMENT OF PAYMENTS TO PARTNER- 18 SHIPS AND S CORPORATIONS.—For purposes of sec- 19 tion 1324 of title 31, United States Code, the pay- 20 ments under subsection (b)(1)(B) shall be treated in 21 the same manner as a refund due from a credit pro- 22 vision referred to in subsection (b)(2) of such sec- 23 tion. 24 VerDate Sep 11 2014 22:24 Jun 14, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3180.IH H3180 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 3180 IH ‘‘(f) REGULATIONS.—The Secretary shall issue such 1 regulations or other guidance as may be necessary or ap- 2 propriate to carry out the purposes of this section, includ- 3 ing regulations or other guidance providing rules for deter- 4 mining a partner’s distributive share of the tax exempt 5 income described in subsection (b)(1)(C).’’. 6 (b) CLERICAL AMENDMENT.—The table of sections 7 for subchapter B of chapter 65 of such Code is amended 8 by adding at the end the following new item: 9 ‘‘Sec. 6431. Elective payment for energy property and electricity produced from certain renewable resources, etc.’’. (c) EFFECTIVE DATE.—The amendments made by 10 this section shall apply to property originally placed in 11 service after the date of the enactment of this Act. 12 Æ VerDate Sep 11 2014 22:24 Jun 14, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\H3180.IH H3180 kjohnson on DSK79L0C42PROD with BILLS