For purposes of section 38, the advanced manufacturing production credit for any taxable year is an amount equal to the sum of the credit amounts determined under subsection (b) with respect to each eligible component which is-
Any eligible 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.
For purposes of this subsection, a taxpayer shall be treated as selling components to an unrelated person if such component is sold to such person by a person related to the taxpayer.
At the election of the taxpayer (in such form and manner as the Secretary may prescribe), a sale of components by such taxpayer to a related person shall be deemed to have been made to an unrelated person.
As a condition of, and prior to, any election described in clause (i), the Secretary may require such information or registration as the Secretary deems necessary for purposes of preventing duplication, fraud, or any improper or excessive amount determined under paragraph (1).
Subject to paragraph (3), the amount determined under this subsection with respect to any eligible component, including any eligible component it incorporates, shall be equal to-
For purposes of paragraph (1)(F)(ii), the applicable amount with respect to any wind energy component shall be-
For purposes of paragraph (1)(I), the applicable amount with respect to any inverter shall be-
Subject to subparagraph (C), in the case of any eligible component sold after December 31, 2029, the amount determined under this subsection with respect to such component shall be equal to the product of-
The phase out percentage under this subparagraph is equal to-
For purposes of determining the amount under this subsection with respect to any applicable critical mineral, this paragraph shall not apply.
For purposes of subparagraph (K)(ii) or (L)(ii) of paragraph (1), the capacity determined under either subparagraph with respect to a battery cell or battery module shall not exceed a capacity-to-power ratio of 100:1.
For purposes of this paragraph, the term "capacity-to-power ratio" means, with respect to a battery cell or battery module, the ratio of the capacity of such cell or module to the maximum discharge amount of such cell or module.
For purposes of this section-
The term "eligible component" means-
The term "eligible component" shall not include any property which is produced at a facility if the basis of any property which is part of such facility is taken into account for purposes of the credit allowed under section 48C after the date of the enactment of this section.
The term "inverter" means an end product which is suitable to convert direct current electricity from 1 or more solar modules or certified distributed wind energy systems into alternating current electricity.
The term "central inverter" means an inverter which is suitable for large utility-scale systems and has a capacity which is greater than 1,000 kilowatts (expressed on a per alternating current watt basis).
The term "commercial inverter" means an inverter which-
The term "distributed wind inverter" means an inverter which-
The term "certified distributed wind energy system" means a wind energy system which is certified by an accredited certification agency to meet Standard 9.1-2009 of the American Wind Energy Association (including any subsequent revisions to or modifications of such Standard which have been approved by the American National Standards Institute).
The term "microinverter" means an inverter which-
The term "residential inverter" means an inverter which-
The term "utility inverter" means an inverter which-
The term "solar energy component" means any of the following:
The term "photovoltaic cell" means the smallest semiconductor element of a solar module which performs the immediate conversion of light into electricity.
The term "photovoltaic wafer" means a thin slice, sheet, or layer of semiconductor material of at least 240 square centimeters-
The term "polymeric backsheet" means a sheet on the back of a solar module which acts as an electric insulator and protects the inner components of such module from the surrounding environment.
The term "solar grade polysilicon" means silicon which is-
The term "solar module" means the connection and lamination of photovoltaic cells into an environmentally protected final assembly which is-
The term "solar tracker" means a mechanical system that moves solar modules according to the position of the sun and to increase energy output.
The term "torque tube" means a structural steel support element (including longitudinal purlins) which-
The term "structural fastener" means a component which is used-
The term "wind energy component" means any of the following:
The term "blade" means an airfoil-shaped blade which is responsible for converting wind energy to low-speed rotational energy.
The term "offshore wind foundation" means the component (including transition piece) which secures an offshore wind tower and any above-water turbine components to the seafloor using-
The term "nacelle" means the assembly of the drivetrain and other tower-top components of a wind turbine (with the exception of the blades and the hub) within their cover housing.
The term "related offshore wind vessel" means any vessel which is purpose-built or retrofitted for purposes of the development, transport, installation, operation, or maintenance of offshore wind energy components.
The term "tower" means a tubular or lattice structure which supports the nacelle and rotor of a wind turbine.
The term "qualifying battery component" means any of the following:
The term "electrode active material" means cathode materials, anode materials, anode foils, and electrochemically active materials, including solvents, additives, and electrolyte salts that contribute to the electrochemical processes necessary for energy storage.
The term "battery cell" means an electrochemical cell-
The term "battery module" means a module-
The term "applicable critical mineral" means any of the following:
Aluminum which is-
Antimony which is-
Barite which is barium sulfate purified to a minimum purity of 80 percent barite by mass.
Beryllium which is-
Cerium which is-
Cesium which is-
Chromium which is-
Cobalt which is-
Dysprosium which is-
Europium which is-
Fluorspar which is-
Gadolinium which is-
Germanium which is-
Graphite which is purified to a minimum purity of 99.9 percent graphitic carbon by mass.
Indium which is-
Lithium which is-
Manganese which is-
Neodymium which is-
Nickel which is-
Niobium which is-
Tellurium which is-
Tin which is purified to low alpha emitting tin which-
Tungsten which is converted to ammonium paratungstate or ferrotungsten.
Vanadium which is converted to ferrovanadium or vanadium pentoxide.
Yttrium which is-
Any of the following minerals, provided that such mineral is purified to a minimum purity of 99 percent by mass:
In this section-
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).
Sales shall be taken into account under this section only with respect to eligible components the production of which is within-
Under regulations prescribed by the Secretary, rules similar to the rules of subsection (d) of section 52 shall apply.
For purposes of this section, a person shall be treated as having sold an eligible component to an unrelated person if such component is integrated, incorporated, or assembled into another eligible component which is sold to an unrelated person.
1 So in original. Probably should be followed by a period.
2 So in original. Probably should be followed by ", or".
26 U.S.C. § 45X
EDITORIAL NOTES
REFERENCES IN TEXTThe date of the enactment of this section, referred to in subsec. (c)(1)(B), is the date of enactment of Pub. L. 117-169, which was approved Aug. 16, 2022.
STATUTORY NOTES AND RELATED SUBSIDIARIES
EFFECTIVE DATE Pub. L. 117-169, §13502(c), Aug. 16, 2022, 136 Stat. 1981, provided that: "The amendments made by this section [enacting this section and amending section 38 of this title] shall apply to components produced and sold after December 31, 2022."
- Secretary
- The term "Secretary" means the Secretary of the Treasury or his delegate.
- TIN
- The term "TIN" means the identifying number assigned to a person under section 6109.
- person
- The term "person" shall be construed to mean and include an individual, a trust, estate, partnership, association, company or corporation.
- taxable year
- The term "taxable year" means the calendar year, or the fiscal year ending during such calendar year, upon the basis of which the taxable income is computed under subtitle A. "Taxable year" means, in the case of a return made for a fractional part of a year under the provisions of subtitle A or under regulations prescribed by the Secretary, the period for which such return is made.
- taxpayer
- The term "taxpayer" means any person subject to any internal revenue tax.
- trade or business
- The term "trade or business" includes the performance of the functions of a public office.