S. 4175

119 S4175 IS: To amend the Internal Revenue Code of 1986 to extend the clean electricity production credit and the clean electricity investment credit based on increases in the price of, and demand for, electricity, and for other purposes.
 U.S. Senate
 2026-03-24
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 II  119th CONGRESS  2d Session  S. 4175  IN THE SENATE OF THE UNITED STATES   March 24, 2026   Mr. Wyden  introduced the following bill; which was read twice and referred to the  Committee on Finance    A BILL
To amend the Internal Revenue Code of 1986 to extend the clean electricity production credit and the clean electricity investment credit based on increases in the price of, and demand for, electricity, and for other purposes.
1.
Extension of clean energy production, investment, and residential credits based on price and demand increases
(a)
Production credit
 Section 45Y(d)  of the Internal Revenue Code of 1986 is amended—
(1)
in paragraph (1), by striking  Subject to paragraph (4), the amount  and inserting  The amount ,
(2)
by striking paragraph (3) and inserting the following new paragraph:
(3)
Applicable year
(A)
In general
For purposes of this subsection, the term  applicable year  means the later of—
(i)
the calendar year that is 6 years subsequent to any price or demand increase year (as determined under subparagraph (B)), or
(ii)
2032.
(B)
Price or demand increase year
(i)
In general
For purposes of this paragraph, the term  price or demand increase year  means a calendar year in which, as reported in the Electric Power Annual (or any similar report) published by the Energy Information Administration—
(I)
the national average price of electricity provided by the total electric industry to ultimate customers in all sectors is more than 2 percent higher than in the most recent previous calendar year for which such data is available, or
(II)
the total annual sales of electricity provided by the total electric industry to ultimate customers in all sectors (measured in megawatt-hours) is greater than in the most recent previous year for which such data is available.
(ii)
Determination
For purposes of determining whether any year qualifies as a price or demand increase year, the Secretary shall make such determination—
(I)
with respect to calendar year 2025, before January 1, 2027, and
(II)
with respect to any subsequent calendar year, before January 1 of the first calendar year beginning after the date on which the Electric Power Annual (or any similar report) is published with respect to such year.
(iii)
Application after initial phase-out of credit
In the case of a determination by the Secretary that a year qualifies as a price or demand increase year, if such determination is made during a year in which the phase-out percentage is applicable under paragraph (2)—
(I)
the applicable year shall be deemed to be the calendar year that is 6 years subsequent to such price or demand increase year, and
(II)
during the 6-year period subsequent to such price or demand increase year, the phase-out percentage shall be deemed to be 100 percent.
 , and
(3)
by striking paragraph (4).
(b)
Investment credit
 Section 48E(e)  of the Internal Revenue Code of 1986 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)
Energy efficient home improvement credit
 Section 25C(i)  of the Internal Revenue Code of 1986 is amended—
(1)
by striking  This section  and inserting the following:
(1)
In general
Subject to paragraph (2), this section
 , and
(2)
by adding at the end the following new paragraph:
(2)
Renewed application of credit following price or demand increase years
In the case of any calendar year that, pursuant to section 45Y(d)(3), is determined by the Secretary to qualify as a price or demand increase year (as defined under such section), paragraph (1) shall not apply with respect to property placed in service during the period of the first 2 calendar years beginning after the date that such determination was made by the Secretary.
 .
(d)
Residential clean energy credit
 Section 25D(h)  of the Internal Revenue Code of 1986 is amended—
(1)
by striking  The credit  and inserting the following:
(1)
In general
Subject to paragraph (2), the credit
 , and
(2)
by adding at the end the following new paragraph:
(2)
Renewed application of credit following price or demand increase years
In the case of any calendar year that, pursuant to section 45Y(d)(3), is determined by the Secretary to qualify as a price or demand increase year (as defined under such section), paragraph (1) shall not apply with respect to expenditures made during the period of the first 2 calendar years beginning after the date that such determination was made by the Secretary.
 .
2.
Eliminating denial of credit for wind and solar leasing arrangements
(a)
Production credit
 Section 45Y  of the Internal Revenue Code of 1986 is amended by striking subsection (h).
(b)
Investment credit
 Section 48E  of the Internal Revenue Code of 1986 is amended by striking subsection (i).
(c)
Effective date
The amendments made by this section shall apply to taxable years beginning after the date of enactment of this Act.