Infrastructure |
Infrastructure bonds based on BABs | The applicable percentage of the credit for interest paid with respect to qualified bonds is determined in the year the bond is issued as follows: 2022 through 2024 = 35%, 2025 = 32%, 2026 = 30%, 2027 and thereafter = 28% |
Advance refunding bonds | Allows interest on advance refunding bonds issued by state and local governments to be exempt from tax, applicable to advance refunding bonds issued more than 30 days after date of enactment |
Permanent modification of small issuer exception to tax-exempt interest expense allocation rules for financial institutions | Revises the definition of qualified small issuers by increasing the $10 million limit to $30 million (indexed annually for inflation), treats qualified 501(c)(3) bonds as tax-exempt obligations for purposes of the small issuer exception, makes permanent certain rules related to qualified financings |
Modifications to qualified small issue bonds | Expands the definition of eligible manufacturing facilities eligible for financing through qualified small issue bonds to include facilities used for the creation or production of intangible property, and facilities functionally related and subordinate (or directly related and ancillary) to facilities used for the manufacturing, creation, or productions of tangible or intangible property, raises the aggregate cap for prior issues from $10 million to $30 million, indexed annually for inflation |
Expansion of certain exceptions to the private activity bond rules for first-time farmers | Increases the limitation on the exemption of the use of private activity bond proceeds for first-time farmers from $450,000 to $552,500, indexed annually for inflation, repeals the separate, lower dollar limitation on the purchase of used farm equipment |
Certain water and sewage facility bonds exempt from volume cap on private activity bonds | Exempts from the private activity bond volume cap exempt facility bonds for existing water and sewage facilities as of July 1, 2020 |
Exempt facility bonds for zero-emission vehicle infrastructure | Expands the definition of exempt facility bond eligible for tax-exempt private activity bond financing to include any bond issued if 95 percent or more of the net proceeds are to be used to provide zero-emission vehicle infrastructure |
Credit for operations and maintenance costs of government-owned broadband | Creates a 30 percent tax credit for State, local, and tribal governments for the operations and maintenance costs of government owned broadband systems |
Permanent extension of new markets tax credit | For the 2022 and 2023 allocation rounds, provides an additional allocation amount of $2 billion (for a total of $7 billion in 2022) and $1 billion (for a total of $6 billion in 2023), sets the allocation amounts at $5 billion for 2024 and all years thereafter, beginning in 2024 indexes the annual allocation amount to inflation, provides AMT relief to taxpayers claiming the NMTC |
Rehabilitation Tax Credit | Increases the historic rehabilitation tax credit (HTC) percentage from 20 percent to 30 percent for 2020 through 2025, phased down to 26 percent in 2026, 23 percent in 2027, 20 percent in 2028 and thereafter, effective for property placed in service after March 31, 2021, increase in the rehabilitation credit for certain small projects, modifies the substantial rehabilitation requirement, elimination of rehabilitation credit basis adjustment, repeal of temporary limitation on personal casualty losses, creates a tax credit equal to 30% of qualified expenditures for individuals and businesses who participate in a qualified state-based wildfire resiliency program |
Low Income Housing Tax Credit | Increases the 9 percent housing credit and the small state minimum by 50 percent and phases in this increase over five years, temporarily reduces tax-exempt bond financing requirement, provides a 50 percent basis boost for LIHTC buildings that designate at least 20 percent of their occupied units for extremely low-income tenants and limit rent, gives states the ability to provide up to a 30 percent basis boost to properties in rural areas, eliminates the qualified contract exception for buildings receiving allocations after January 1, 2022, changes the right of first refusal safe harbor into an optional safe harbor, increases credit for bond-financed projects designated by housing credit agency |
Neighborhood homes credit | Establishes a new federal tax credit to encourage the rehabilitation of deteriorated homes in distressed neighborhoods |
Tribal Infrastructure | Amends rules related to the issuance of tax-exempt debt by Indian tribal governments, creates a new, permanent, annual $175 million New Markets Tax Credit allocation for low-income communities in tribal areas and for projects |
Green Energy |
Extension of credit for electricity produced from certain renewable resources | Most facilities: The PTC for the following facilities is extended through the end of 2031, phasing down to 80 percent of the applicable rate in 2032, and 60 percent of the applicable rate in 2033: landfill gas (municipal solid waste), trash (municipal solid waste), qualified hydropower, marine and hydrokinetic renewable energy facilities, geothermal Wind: The PTC for wind energy is increased to the full appliable credit rate through the end of 2031, phasing down to 80 percent in 2032, and 60 percent in 2033 Solar: The PTC for solar energy is revived and extended through 2031, phasing down to 80 percent of the applicable credit rate in 2032, and 60 percent of the applicable credit rate in 2033 |
Extension and modification of energy credit | In most cases, the provision extends the investment tax credit (ITC) for property for which construction begins by the end of 2032, and then phases down the credit value over two years, addresses solar, geothermal, and other currently eligible property, and expanded to include energy storage technology, linear generators, microgrid controllers, dynamic glass, biogas property |
Increase in energy credit for solar facilities placed in service in connection with low-income communities | Provides for an enhanced incentive for solar facilities qualifying for the section 48 ITC with respect to which the Secretary makes an allocation of environmental justice solar capacity limitation |
Elective Payment for energy property and electricity produced from certain renewable resources | Allows taxpayers to elect to be treated as having made a payment of tax equal to the value of the various credits they would otherwise be eligible for |
Investment credit for electric transmission property | Provides for a tax credit for the basis of qualifying electric transmission property placed in service by the taxpayer |
Zero emissions facility credit | Provides for a 30 percent credit for qualified investment with respect to any zero emissions facility of the taxpayer |
Extension of credit for carbon oxide sequestration | Extends the credit for carbon oxide sequestration facilities that begin construction before the end of 2031 |
Green energy publicly traded partnerships | Expands the definition of qualified income for publicly traded partnerships from certain income derived from minerals and natural resources to include income derived from green and renewable energy |
Zero-emission nuclear power production credit | Provides a credit for the production of electricity from a qualified nuclear power facility |
Extension of excise tax credits relating to alternative fuels | Extends the income and excise tax credits for biodiesel and biodiesel mixtures at $1.00 per gallon through 2031, extends the $0.10-per-gallon small agri-biodiesel producer credit through the end of 2031, extends the $0.50 per gallon excise tax credits for alternative fuels and alternative fuel mixtures through 2031 |
Extension of second generation biofuel incentives | Extends the second generation biofuel income tax credit through 2031 |
Sustainable aviation fuel credit | Provides a refundable blenders tax credit for each gallon of sustainable aviation fuel sold as part of a qualified fuel mixture |
Clean Hydrogen | Creates a new tax credit for the production of clean hydrogen produced by a taxpayer at a qualified clean hydrogen facility beginning in 2022 during the 10-year period beginning on the date such facility is placed in service |
Nonbusiness energy property credit | Extends the nonbusiness energy property credit to property placed in service before the end of 2031 |
Residential energy efficient property | Extends the credit for the cost of qualified residential energy efficient property expenditures, including solar electric, solar water heating, fuel cell, small wind energy, and geothermal heat pumps |
Energy efficient commercial buildings deduction | Updates and expands the energy efficient commercial buildings deduction by increasing the maximum deduction, determined on a sliding scale, changes this maximum from a lifetime cap to a three- year cap |
New energy efficient home credit | Extends the Section 45L new energy efficient home credit through 2031 |
Refundable new qualified plug-in electric drive motor vehicle credit for individuals | Refundable income tax credit for new qualified plug-in electric drive motor vehicles placed into service by the taxpayer during the taxable year, equal to the base amount of $4,000 plus an additional $3,500 for vehicles placed into service before January 1, 2027 |
Credit for previously-owned qualified plug-in electric drive motor vehicles | Creates a new refundable credit for the purchase of used plug-in electric cars after date of enactment through 2031 |
Credit for qualified commercial electric vehicles | Creates a new credit for qualified commercial electric vehicles placed into service by the taxpayer |
Qualified fuel cell motor vehicles | Extends the credit for the purchase of a qualified fuel cell motor vehicle through 2031, but only with respect to vehicles not of a character subject to depreciation |
Alternative fuel refueling property credit | Extends the alternative fuel vehicle refueling property credit through 2031 |
Reinstatement and expansion of employer provided fringe benefits for bicycle commuting | Eliminates the temporary suspension of the exclusion for qualified bicycle commuting benefits and increases the maximum benefit from $20 per month to $52.50 per month |
Credit for certain new electric bicycles | Provides for a 15% refundable tax credit for qualified electric bicycles placed into service before January 1, 2032 |
Extension of the advanced energy project credit | Revives the Section 48C qualified advanced energy property credit |
Labor costs of installing mechanical insulation property | Provides a credit for up to 10% of the labor costs incurred by a taxpayer in installing mechanical insulation property into a mechanical system which was originally placed in service not less than 1 year before the date on which such mechanical insulation property is installed |
Qualified environmental justice program credit | Creates a capped refundable competitive credit of $1 billion for each year from 2022 through and including 2031 to institutions of higher education for environmental justice (EJ) programs |
Reinstatement of Superfund | Reinstates the Hazardous Substance Superfund Financing Rate on crude oil and imported petroleum products at the rate of 16.4 cents/per gallon, indexed to inflation |
Social Safety Net |
Child Tax Credit | Provides a one-year extension of the CTC and advance payment through 2022, establishes a monthly CTC fully refundable with advance payment through taxable years 2025, reinstates the child tax credit under section 24, as amended by prior sections, as fully refundable for taxable years after 2025 |
Child and Dependent Care Tax Credit | Makes permanent the modifications to the CDCTC made for 2021 in the American Rescue Plan |
Exclusion for Employer-Provided Dependent Care | Makes permanent the American Rescue Plan (ARP) increase in the exclusion for employer-provided dependent care assistance |
Payroll Tax Credit for Childcare Workers | Provides a refundable payroll tax credit against employer-side HI tax for 50 percent of qualified childcare wages paid by an employer that operates a HHS Participating Child Care Provider, as provided by the Secretary of Health and Human Services |
Credit for Caregiver Expenses | Non-refundable credit, up to $4,000, equal to 50 percent of the qualified expenses paid or incurred by a qualified care recipient during the taxable year through 2025 |
Earned Income Tax Credit | Makes permanent the temporary expansion the eligibility and the amount of the earned income tax credit for taxpayers with no qualifying children enacted in the ARP |
Expanding Access to Health Coverage and Lowering Costs | Makes permanent the ARP section 9661 affordability percentages used for 36 (B) premium tax credits, modifies certain eligibility rules and requirements for 36 (B) premium tax credits through 2024, provides temporary enhanced Affordable Care Act (ACA) Marketplace cost-sharing reduction assistance to individuals with household incomes below 138% of the FPL, makes available $10 billion annually to states, providing the option for states to establish a state reinsurance program or use the funds to provide financial assistance to reduce out-of-pocket costs, makes the health coverage tax credit permanent |
Pathway to Practice Training Programs | Incentivizes those from rural and underserved communities to become physicians and to practice in those communities through a scholarship and stipend for qualifying medical students to attend medical school or post-baccalaureate and medical school, creates a new refundable Pathway to Practice medical scholarship voucher credit under section 36G |
Public University Research Infrastructure Credit | Provides a 40 percent general business credit for qualified cash contributions made by a taxpayer to a certified educational institution in connection with a qualifying research infrastructure program |
Modification of Excise Tax on Investment Income of Private Colleges and Universities | Provides a reduction in an institution of higher education’s investment income excise tax liability determined by the amount of qualified undergraduate scholarship and grant aid provided by such university relative to its aggregate undergraduate tuition and fees collected during the taxable year |
Pell Grants | Excludes Federal Pell grants from gross income. For purposes of the American Opportunity Tax Credit, Lifetime Learning Credit, and exclusion of qualified scholarship from income, qualified tuition and related expenses shall not be reduced by any amount paid for the benefit of an individual as a Federal Pell Grant |
Drug Pricing |
Providing for Lower Prices for Certain High-Priced Single Source Drugs | Adds a new Part E to Title XI of the Social Security Act which directs the Secretary of the Department of Health and Human Services (HHS) to establish a Fair Price Negotiation Program to reduce spending on and out-of-pocket costs for prescription drugs |
Selected Drug Manufacturer Excise Tax Imposed During Noncompliance Periods | Establishes an excise tax that will be levied against manufacturers during periods when the manufacturer is noncompliant with the requirements of the fair price negotiation program |
Medicare Part B Rebate by Manufacturers | Establishes a mandatory rebate for drug manufacturers for certain Medicare Part B drugs with prices increasing faster than inflation beginning on July 1, 2023 |
Medicare Part D Rebate by Manufacturers | Establishes a mandatory rebate for drug manufacturers for certain Medicare Part D drugs with prices increasing faster than inflation beginning in 2023 |
Part D Benefit Redesign | Caps the costs for prescription drugs by setting the annual out-of-pocket limit at $2,000 beginning in 2024 |
Allowing Certain Enrollees of Prescription Drug Plans and MA-PD Plans | Allows eligible beneficiaries who meet the out-of-pocket cap in a single prescription fill to pay for such costs in installments throughout the year, known as “smoothing” |
Repeal of Certain Prescription Drug Rebate Rule | Prohibiting Implementation of Rule Relating to Eliminating the Anti-Kickback Statute Safe-Harbor for Prescription Drug Rebates, prohibits the implementation after January 1, 2026, of the final rule entitled “Fraud and Abuse; Removal of Safe Harbor Protection for Rebates Involving Prescription Pharmaceuticals and Creation of New Safe Harbor Protection for Certain Point-of-Sale Reductions in Price on Prescription Pharmaceuticals and Certain Pharmacy Benefit Manager Services Fees” that was published by the Office of the Inspector General of HHS on November 30, 2020 |
