Termination and Restrictions on Clean Electricity Investment Credit
Section 70513 · Sec. 70513 ·
What this chapter is about
This part ends a clean power investment credit for wind and solar put in use after 2027. It shuts firms tied to certain foreign governments out. It claws the credit back if such a firm is paid within ten years. It also bars the credit where wind or solar gear is leased out.
The document says “shall not”Who acts: Secretary of the TreasuryHow: statuteSec. 70513 in the PDF
What the document says
“This section shall not apply to any qualified property placed in service by the taxpayer after December 31, 2027, which is part of an applicable facility.”
The section adds a new paragraph (4) to section 48E(e) of the Internal Revenue Code of 1986 so that the section does not apply to qualified property placed in service after December 31, 2027 that is part of a facility using wind or solar energy to produce electricity, judged without regard to any construction start date requirement in section 45. Energy storage technology placed in service at such a facility is excepted.
What the document actually says
“This section shall not apply to any qualified property placed in service by the taxpayer after December 31, 2027, which is part of an applicable facility.”
That sentence, in plain words
The credit does not reach gear put to use after December 31, 2027. That gear must be part of a covered plant.
What this is about
A covered plant is one that runs on wind or sun. Storage gear at such a plant is left out of this bar. So batteries may still qualify.
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The document says “shall not”Who acts: Secretary of the TreasuryHow: statuteSec. 70513 in the PDF
What the document says
“The terms `qualified facility' and `qualified interconnection property' shall not include any facility or property the construction, reconstruction, or erection of which begins after December 31, 2025, if the construction, reconstruction, or erection of such facility or property includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)).”
The section adds a new paragraph (6) to section 48E(b) of the Internal Revenue Code of 1986 taking out of the terms qualified facility and qualified interconnection property anything whose construction, reconstruction or erection begins after December 31, 2025 that involves material assistance from a prohibited foreign entity, and adds a matching paragraph (3) to section 48E(c) for energy storage technology.
What the document actually says
“The terms `qualified facility' and `qualified interconnection property' shall not include any facility or property the construction, reconstruction, or erection of which begins after December 31, 2025, if the construction, reconstruction, or erection of such facility or property includes any material assistance from a prohibited foreign entity (as defined in section 7701(a)(52)).”
That sentence, in plain words
A plant or link does not count if two things hold. Work on it starts after December 31, 2025. It drew help from a barred foreign body.
What this is about
The same bar covers storage gear. The help must be of a kind the law calls material. That is measured by a cost ratio.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall not”Who acts: Secretary of the TreasuryHow: statuteSec. 70513 in the PDF
What the document says
“No credit shall be determined under subsection (a) for any taxable year if the taxpayer is--”
The section adds a new paragraph (6) to section 48E(d) of the Internal Revenue Code of 1986 barring the credit for a taxable year where the taxpayer is a specified foreign entity as defined in section 7701(a)(51)(B) or a foreign-influenced entity as defined in section 7701(a)(51)(D) read without clause (i)(II), and barring it where the effective control test applies and relates to a qualified facility or energy storage technology.
What the document actually says
“No credit shall be determined under subsection (a) for any taxable year if the taxpayer is--”
That sentence, in plain words
No credit is given for a tax year. That holds if the taxpayer is one of the two kinds named below.
What this is about
One is a named foreign body. The other is a body under foreign sway. A third rule covers control of the plant or storage gear.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: Secretary of the TreasuryHow: statuteSec. 70513 in the PDF
What the document says
“then the tax under this chapter for the taxable year in which such applicable payment occurs shall be increased by 100 percent of the aggregate decrease in the credits allowed under section 38 for all prior taxable years”
The section adds a new paragraph (4) to section 50(a) of the Internal Revenue Code of 1986 so that where a specified taxpayer makes an applicable payment within ten years of placing the property in service, the tax for the year of that payment rises by the full amount the credits allowed in earlier years would have fallen had the clean electricity investment credit for that property been reduced to zero. An applicable payment is one described in section 7701(a)(51)(D)(i)(II), and a specified taxpayer is one allowed the credit for a taxable year beginning more than two years after enactment. Conforming cross reference changes follow.
What the document actually says
“then the tax under this chapter for the taxable year in which such applicable payment occurs shall be increased by 100 percent of the aggregate decrease in the credits allowed under section 38 for all prior taxable years”
That sentence, in plain words
The tax for that year goes up. It rises by the full amount of credit already taken.
What this is about
The clock runs for ten years from when the gear is put to use. A payment to a barred foreign body triggers it. The whole credit is then paid back.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall not”Who acts: Secretary of the TreasuryHow: statuteSec. 70513 in the PDF
What the document says
“No credit shall be determined under this section for any qualified investment during the taxable year with respect to property described in paragraph (1) or (4) of section 25D(d) (as applied by substituting `lessee' for `taxpayer') if the taxpayer rents or leases such property to a third party during such taxable year.”
The section inserts a new subsection (i) into section 48E of the Internal Revenue Code of 1986 denying the credit for a qualified investment in property described in paragraph (1) or (4) of section 25D(d) where the taxpayer rents or leases that property to a third party during the year. It also adds a new subsection (e) to section 50 providing that ownership of geothermal heat pump property is worked out without regard to whether it is readily usable by someone other than the lessee or service recipient.
What the document actually says
“No credit shall be determined under this section for any qualified investment during the taxable year with respect to property described in paragraph (1) or (4) of section 25D(d) (as applied by substituting `lessee' for `taxpayer') if the taxpayer rents or leases such property to a third party during such taxable year.”
That sentence, in plain words
No credit is given where the gear is rented or leased out. That covers two kinds of home energy property.
What this is about
The bar bites for the whole tax year. A separate rule covers ground source heat pumps. There ownership is judged a different way.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
“In the case of any qualified investment with respect to any qualified facility or energy storage technology the construction of which begins before June 16, 2025, 40 percent (or, in the case of a qualified facility which is an offshore wind facility, 20 percent).”
The section rewrites subparagraph (B) of section 48E(a)(3) of the Internal Revenue Code of 1986 so that rules similar to section 48(a)(12) apply, with the adjusted percentage set at 40 percent, or 20 percent for an offshore wind facility, where construction begins before June 16, 2025, at 45 percent where it begins on or after that date and before January 1, 2026, and at higher figures for later start dates.
What the document actually says
“In the case of any qualified investment with respect to any qualified facility or energy storage technology the construction of which begins before June 16, 2025, 40 percent (or, in the case of a qualified facility which is an offshore wind facility, 20 percent).”
That sentence, in plain words
For work begun before June 16, 2025 the figure is 40 percent. For an offshore wind plant it is 20 percent.
What this is about
The figure sets how much must be made at home. It rises for work begun later. The full table sits in the law.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: Secretary of the TreasuryHow: statuteSec. 70513 in the PDF
What the document says
“for purposes of subsection (a)(1), the applicable percentage shall be 30 percent and such percentage shall not be increased or otherwise adjusted by any other provision of this section, and”
The section inserts a new subsection (j) into section 48E of the Internal Revenue Code of 1986 so that for qualified fuel cell property as defined in section 48(c)(1) read without subparagraph (E), one clause of the qualified facility test is disregarded, the applicable percentage is a flat 30 percent that no other provision may raise or adjust, and subsection (g) does not apply. It also adds a rule freezing the energy percentage for certain energy property.
What the document actually says
“for purposes of subsection (a)(1), the applicable percentage shall be 30 percent and such percentage shall not be increased or otherwise adjusted by any other provision of this section, and”
That sentence, in plain words
The rate is 30 percent for this property. No other rule in the section may raise it.
What this is about
Fuel cell property is treated apart. One test that would apply is switched off. So is one other subsection.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall apply”Who acts: Secretary of the TreasuryHow: statuteSec. 70513 in the PDF
What the document says
“Except as provided in paragraphs (2), (3), (4), and (5), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act.”
The section applies its amendments to taxable years beginning after enactment, except that the domestic content rules apply on or after June 16, 2025, the removal of the energy credit for certain property applies to property whose construction begins on or after that date, the fuel cell rules apply to property whose construction begins after December 31, 2025, and the wind and solar termination applies to facilities whose construction begins more than 12 months after enactment.
What the document actually says
“Except as provided in paragraphs (2), (3), (4), and (5), the amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act.”
That sentence, in plain words
The changes start with tax years that begin after this law passed. Four parts are treated apart.
What this is about
Two of them run from June 16, 2025. One reaches work begun after 2025. The wind and solar end date reaches work begun a year after this law.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Provide for reconciliation pursuant to title II of H. Con. Res. 14, Public Law 119-21, sec. 70513, 139 Stat. 270 (2025). https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm
This page
“Termination and Restrictions on Clean Electricity Investment Credit,” Provide for reconciliation pursuant to title II of H. Con. Res. 14, section 70513. Read the Mandate, https://readthemandate.org/pl-119-21/section-70513/ (retrieved August 26, 2026).
Cite the document when the claim is about what the document says. Cite this page when the indexing, the wording or the record of what has happened is what is being relied on.
What This Page Covers, and What It Leaves Out
Each distinct thing the section does: end the credit for wind and solar property, bar facilities and storage built with material assistance from a prohibited foreign entity, bar the credit for a specified or foreign-influenced entity, claw the credit back on a payment to such an entity within ten years, deny the credit for wind and solar leasing arrangements and set a geothermal heat pump rule, reset the domestic content percentages, freeze the energy percentage for certain property, apply the credit to qualified fuel cell property at 30 percent, and fix the effective dates.
The full domestic content percentage table, the redesignations, and the conforming cross reference amendments, which are carried in summaries.
The section works by amending sections 48, 48E, 50, 1371, 6418 and 7701 of the Internal Revenue Code of 1986, none of which is indexed here, so how the credit is otherwise worked out cannot be checked against anything on this site.
