Qualifying advanced battery project credit

(a) In general Subpart E of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by inserting after section 48G the following new section: 48H. Qualifying advanced battery project credit (a) In general For purposes of section 46, the qualifying advanced battery project credit for any taxable year is an amount equal to 30 percent of the qualified investment for such taxable year with respect to any qualifying advanced battery project of the taxpayer. (b) Qualified investment (1) In general For purposes of subsection (a), the qualified investment for any taxable year is the basis of eligible property placed in service by the taxpayer during such taxable year which is part of a qualifying advanced battery project. (2) Certain qualified progress expenditures rules made applicable Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this section. (3) Limitation The amount which is treated as the qualified investment for all taxable years with respect to any qualifying advanced battery project shall not exceed the amount designated by the Secretary as eligible for the credit under this section. (c) Definitions For purposes of this section— (1) Qualifying advanced battery project The term qualifying advanced battery project means a project, any portion of the qualified investment of which is certified by the Secretary under subsection (e) as eligible for a credit under this section, which re-equips, expands, or establishes a qualified advanced battery manufacturing and research facility. (2) Qualified advanced battery manufacturing and research facility The term qualified advanced battery manufacturing or research facility — (A) means a facility— (i) located within the United States, and (ii) primarily used for the production or research and development of batteries or battery components employing advanced chemistries or technologies that improve battery performance, fire safety, and longevity, including— (I) solid-state lithium metal batteries, (II) lithium-sulfur batteries, (III) metal-air batteries, (IV) sodium-ion batteries, and (V) such other chemistries or technologies as the Secretary, after consultation with the Secretary of Energy, determines to offer significant advancements over traditional lithium-ion technology with respect to performance or fire safety, and (B) does not include facilities which produce only traditional lithium-ion batteries without incorporating advanced chemistries or technologies described in subparagraph (A)(ii). (d) Qualifying advanced battery project program (1) Establishment (A) In general Not later than 180 days after the date of enactment of this section, the Secretary, in consultation with the Secretary of Energy, shall establish a qualifying advanced battery project program to consider and award certifications for qualified investments eligible for credits under this section to qualifying advanced battery project sponsors. (B) Limitation The total amount of credits that may be allocated under the program shall not exceed $3,000,000,000. (2) Certification (A) Application period Each applicant for certification under this paragraph shall submit an application containing such information as the Secretary may require during the 2-year period beginning on the date the Secretary establishes the program under paragraph (1). (B) Time to meet criteria for certification Each applicant for certification shall have 1 year from the date of acceptance by the Secretary of the application during which to provide to the Secretary evidence that the requirements of the certification have been met. (C) Period of issuance An applicant which receives a certification shall have 3 years from the date of issuance of the certification in order to place the project in service and if such project is not placed in service by that time period, then the certification shall no longer be valid. (3) Selection criteria Rules similar to the rules of section 48C(d)(3) shall apply. (4) Review and redistribution (A) Review Not later than 4 years after the date of enactment of this section, the Secretary shall review the credits allocated under this section as of such date. (B) Redistribution The Secretary may reallocate credits awarded under this section if the Secretary determines that— (i) there is an insufficient quantity of qualifying applications for certification pending at the time of the review, or (ii) any certification made pursuant to paragraph (2) has been revoked pursuant to paragraph (2)(B) because the project subject to the certification has been delayed as a result of third party opposition or litigation to the proposed project. (C) Reallocation If the Secretary determines that credits under this section are available for reallocation pursuant to the requirements set forth in paragraph (2), the Secretary is authorized to conduct an additional program for applications for certification. (5) Disclosure of allocations The Secretary shall, upon making an allocation under this subsection, publicly disclose the identity of the applicant and the amount of the credit with respect to such applicant. (e) Denial of double benefit No credit shall be allowed under this section for any qualified investment for which a credit is allowed under another provision of this title. (f) Regulations and guidance The Secretary, after consultation with the Secretary of Energy, shall issue such regulations and guidance as necessary to implement this section, including the publication of an annual list of advanced chemistries or technologies under subsection (c)(2).. (b) Credit eligible for elective payment Section 6417(b) is amended by adding at the end the following new paragraph: (13) The qualifying advanced battery project credit determined under section 48H.. (c) Credit transferable Section 6418(f)(1)(A), as amended by the preceding provisions of this Act, is amended by adding at the end the following new clause: (xv) The qualifying advanced battery project credit determined under section 48H.. (d) Conforming amendments (1) Section 46, as amended by the preceding provisions of this Act, is amended by striking and at the end of paragraph (8), by striking the period at the end of paragraph (9) and inserting, and, and by adding at the end the following new paragraph: (10) the qualifying advanced battery project credit.. (2) Section 49(a)(1)(C), as amended by the preceding provisions of this Act, is amended by striking and at the end of clause (ix), by striking the period at the end of clause (x) and inserting, and, and by adding at the end the following new clause: (xi) the basis of any property which is part of a qualified advanced battery manufacturing or research facility under section 48H.. (3) Section 50(a)(2)(E), as amended by the preceding provisions of this Act, is amended by striking or 48F(f) and inserting 48F(f), or 48H(c)(5). (4) The table of sections for subpart E of part IV of subchapter A of chapter 1, as amended by the preceding provisions of this Act, is amended by inserting after the item relating to section 48G the following new item: Sec. 48H..Qualifying advanced battery project credit.. (e) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2025.