H.R. 5862

119 HR 5862 IH: American Energy Independence and Affordability Act
 U.S. House of Representatives
 2025-10-28
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 I  119th CONGRESS  1st Session  H. R. 5862  IN THE HOUSE OF REPRESENTATIVES   October 28, 2025   Mr. Thompson of California  (for himself,  Mr. Neal ,  Mr. Doggett ,  Mr. Larson of Connecticut ,  Mr. Davis of Illinois ,  Ms. Sánchez ,  Ms. Sewell ,  Ms. DelBene ,  Ms. Chu ,  Ms. Moore of Wisconsin ,  Mr. Boyle of Pennsylvania ,  Mr. Beyer ,  Mr. Evans of Pennsylvania ,  Mr. Schneider ,  Mr. Panetta ,  Mr. Gomez ,  Mr. Horsford ,  Ms. Plaskett ,  Mr. Suozzi ,  Mr. Fields ,  Ms. Barragán ,  Ms. Ansari ,  Mr. Tonko ,  Mr. Cleaver ,  Mr. Carter of Louisiana ,  Mr. Vargas ,  Mr. Tran ,  Ms. Matsui ,  Ms. Salinas ,  Ms. McCollum ,  Mr. Garcia of California ,  Mr. Norcross ,  Ms. Castor of Florida ,  Mr. Garamendi ,  Mr. Scott of Virginia ,  Mr. Lieu ,  Ms. DeGette ,  Mr. Lynch ,  Mrs. Cherfilus-McCormick ,  Ms. Norton ,  Mrs. McIver ,  Ms. Kelly of Illinois ,  Mr. Landsman ,  Ms. Simon ,  Mr. Casten ,  Mr. Goldman of New York ,  Ms. Tokuda ,  Mr. Vicente Gonzalez of Texas ,  Mr. Kennedy of New York ,  Mr. DeSaulnier ,  Mr. Min ,  Mrs. Foushee ,  Ms. Elfreth ,  Mr. Magaziner ,  Mr. Deluzio ,  Ms. Brownley ,  Mr. Costa ,  Mr. Mfume ,  Ms. Morrison ,  Mr. Mullin ,  Ms. Williams of Georgia ,  Ms. Pettersen ,  Ms. Lofgren ,  Ms. Ross ,  Mr. Courtney ,  Mr. Takano ,  Ms. Scholten ,  Mr. Espaillat ,  Mr. Correa ,  Mr. Jackson of Illinois ,  Ms. Schakowsky ,  Ms. Titus ,  Mr. Stanton ,  Ms. McClellan ,  Mr. McGarvey ,  Ms. Budzinski ,  Mr. Huffman ,  Ms. Friedman ,  Mr. Carbajal ,  Mr. Bell ,  Ms. McBride ,  Mr. Quigley ,  Ms. Scanlon ,  Ms. Randall ,  Mr. Carson ,  Ms. Bynum ,  Mr. Hoyer ,  Mr. Nadler ,  Mr. Torres of New York ,  Ms. Kamlager-Dove ,  Mr. Ruiz ,  Ms. Pingree ,  Mr. Mrvan ,  Ms. Lois Frankel of Florida ,  Mr. Cohen ,  Ms. Bonamici ,  Mr. Larsen of Washington ,  Ms. Jacobs ,  Mr. Gottheimer ,  Mr. Khanna ,  Ms. Garcia of Texas ,  Mr. Latimer ,  Mr. Thanedar ,  Ms. Johnson of Texas ,  Mr. Foster ,  Ms. Davids of Kansas ,  Ms. McDonald Rivet ,  Mr. Amo ,  Mr. Sorensen ,  Mr. Thompson of Mississippi ,  Ms. Stansbury ,  Mr. Menendez ,  Ms. Waters ,  Mr. McGovern , and  Mr. Moulton ) introduced the following bill; which was referred to the  Committee on Ways and Means    A BILL
To amend the Internal Revenue Code of 1986 to restore certain energy-related provisions as in effect prior to the enactment of  Public Law 119–21 .
1.
Short title, etc
(a)
Short title
This Act may be cited as the   American Energy Independence and Affordability Act  .
(b)
References to the Internal Revenue Code of 1986
Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986.
2.
Table of contents
The table of contents of this Act is as follows:
Sec. 1. Short title, etc.
Sec. 2. Table of contents.
Title I—Lowering Energy Costs through All-of-the-Above Energy Production
Sec. 101. Clean energy production credit.
Sec. 102. Clean electricity investment credit.
Sec. 103. Advanced manufacturing production credit.
Sec. 104. Repeal of restriction on the extension of advance energy project credit program.
Sec. 105. Reversion of construction date for clean hydrogen production credit.
Sec. 106. Reversion of termination for residential clean energy credit.
Sec. 107. Reinstatement of special rate for sustainable aviation fuel.
Title II—Lowering Energy Costs Through Energy Efficiency
Sec. 201. Energy efficient home improvement credit.
Sec. 202. New energy efficient home credit.
Sec. 203. Repeal of termination of new energy efficient commercial buildings deduction.
Sec. 204. Restoration of cost recovery for energy property.
Title III—Ensuring America Leads the Way in Our Automotive Future
Sec. 301. Reversion of termination date for previously-owned vehicle credit.
Sec. 302. Reversion of termination date for clean vehicle credit.
Sec. 303. Reversion of termination date for qualified commercial clean vehicles credit.
Sec. 304. Reversion of termination date for alternative fuel vehicle refueling property credit.
I
Lowering Energy Costs through All-of-the-Above Energy Production
101.
Clean energy production credit
(a)
Restoration of phase-Out
 Section 45Y(d)(3)  is amended by striking  calendar year 2032.  and inserting
means the later of—
(A)
the calendar year in which the Secretary determines that the annual greenhouse gas emissions from the production of electricity in the United States are equal to or less than 25 percent of the annual greenhouse gas emissions from the production of electricity in the United States for calendar year 2022, or
(B)
2032.
  .
(b)
Restoration of credit for wind and solar facilities
 Section 45Y(d)  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)
Restoration of credit for wind and solar leasing arrangements
 Section 45Y  is amended by striking subsection (h).
(d)
Repeal of provision for existing studies
 Section 45Y(b)(2)(C)  is amended by striking clause (iii).
(e)
Effective dates
The amendments made by this section shall take effect as if included in section 70512 of  Public Law 119–21 .
102.
Clean electricity investment credit
(a)
Repeal of termination for wind and solar facilities
 Section 48E(e)  is amended—
(1)
in paragraph (1), by striking  Subject to paragraph (4), the amount  and inserting  The amount , and
(2)
by striking paragraph (4).
(b)
Restoration of credit for expenditures for wind and solar leasing arrangements
(1)
In general
 Section 48E  is amended by striking subsection (i) and by redesignating subsections (j) and (k) as subsections (i) and (j), respectively.
(2)
Conforming rule repeal
 Section 50  is amended by striking subsection (e).
(c)
Restoration of credit for certain energy property
 Section 48(a)(2)(A)(ii)  is amended by striking  0 percent  and inserting  2 percent .
(d)
Effective dates
The amendments made by this section shall take effect as if included in section 70513 of  Public Law 119–21 .
103.
Advanced manufacturing production credit
(a)
Repeal of inclusion of metallurgical coal as an applicable critical mineral
 Section 45X(c)(6)  is amended by striking subparagraph (R) and by redesignating subparagraphs (S) through (AA) as subparagraphs (R) through (ZZ), respectively.
(b)
Repeal of termination for wind energy components
 Section 45X(b)(3)  is amended by striking subparagraph (D).
(c)
Conforming amendments
(1)
 Section 45X(b)(1)(M)  is amended by striking  (2.5 percent in the case of metallurgical coal) .
(2)
The heading of  section 45X(b)(3)  is amended by striking
and termination  .
(3)
 Section 45X(b)(3)(A)  is amended by striking  subparagraphs (C) and (D)  and inserting  subparagraph (C) .
(4)
The heading of  section 45X(b)(3)(C)  is amended by striking
other than metallurgical coal  .
(5)
The heading of  section 45X(b)(3)(C)(ii)  is amended by striking
other than metallurgical coal  .
(6)
 Section 45X(b)(3)  is amended by striking subparagraph (E).
(d)
Effective date
The amendments made by this section shall take effect as if included in section 70514 of  Public Law 119–21 .
104.
Repeal of restriction on the extension of advance energy project credit program
(a)
In general
 Section 48C(e)(3)(C)  is amended by striking  shall not be increased  and inserting  shall be increased .
(b)
Effective date
The amendment made by this section shall take effect as if included in section 70515 of  Public Law 119–21 .
105.
Reversion of construction date for clean hydrogen production credit
(a)
In general
 Section 45V(c)(3)(C)  is amended by striking  January 1, 2028  and inserting  January 1, 2033 .
(b)
Effective date
The amendment made by this section shall take effect as if included in section 70511 of  Public Law 119–21 .
106.
Reversion of termination for residential clean energy credit
(a)
In general
 Section 25D(h)  is amended by striking  with respect to any expenditures made after December 31, 2025  and inserting  to property placed in service after December 31, 2034 .
(b)
Conforming amendment
 Section 25D(g)  is amended by striking  and  at the end of paragraph (2), by striking  30 percent.  at the end of paragraph (3) and inserting  and before January 1, 2033, 30 percent,  and by adding at the end the following new paragraphs:
(4)
in the case of property placed in service after December 31, 2032, and before January 1, 2034, 26 percent, and
(5)
in the case of property placed in service after December 31, 2033, and before January 1, 2035, 22 percent.
 .
(c)
Effective date
The amendments made by this section shall take effect as if included in section 70506 of  Public Law 119–21 .
107.
Reinstatement of special rate for sustainable aviation fuel
(a)
In general
 Section 45Z(a)(3)  is amended to read as follows:
(3)
Special rate for sustainable aviation fuel
(A)
In general
In the case of a transportation fuel which is sustainable aviation fuel, paragraph (2) shall be applied—
(i)
in the case of fuel produced at a qualified facility described in paragraph (2)(A), by substituting  35 cents  for  20 cents , and
(ii)
in the case of fuel produced at a qualified facility described in paragraph (2)(B), by substituting  $1.75  for  $1.00 .
(B)
Sustainable aviation fuel
For purposes of subparagraph (A), the term  sustainable aviation fuel  means liquid fuel, the portion of which is not kerosene, which is sold for use in an aircraft and which—
(i)
meets the requirements of—
(I)
ASTM International Standard D7566, or
(II)
the Fischer Tropsch provisions of ASTM International Standard D1655, Annex A1, and
(ii)
is not derived from palm fatty acid distillates or petroleum.
 .
(b)
Conforming amendment
 Section 45Z(c)(1)  is amended by striking  and the $1.00 amount in subsection (a)(2)(B)  and inserting  the $1.00 amount in subsection (a)(2)(B), the 35 cent amount in subsection (a)(3)(A)(i), and the $1.75 amount in subsection (a)(3)(A)(ii) .
(c)
Effective date
The amendments made by this section shall take effect as if included in section 70521 of  Public Law 119–21 .
II
Lowering Energy Costs Through Energy Efficiency
201.
Energy efficient home improvement credit
(a)
Restoring product identification number requirement
 Section 25C(h)  is amended to read as follows:
(h)
Product identification number requirement
(1)
In general
No credit shall be allowed under subsection (a) with respect to any item of specified property placed in service after December 31, 2024, unless—
(A)
such item is produced by a qualified manufacturer, and
(B)
the taxpayer includes the qualified product identification number of such item on the return of tax for the taxable year.
(2)
Qualified product identification number
For purposes of this section, the term  qualified product identification number  means, with respect to any item of specified property, the product identification number assigned to such item by the qualified manufacturer pursuant to the methodology referred to in paragraph (3).
(3)
Qualified manufacturer
For purposes of this section, the term  qualified manufacturer  means any manufacturer of specified property which enters into an agreement with the Secretary which provides that such manufacturer will—
(A)
assign a product identification number to each item of specified property produced by such manufacturer utilizing a methodology that will ensure that such number (including any alphanumeric) is unique to each such item (by utilizing numbers or letters which are unique to such manufacturer or by such other method as the Secretary may provide),
(B)
label such item with such number in such manner as the Secretary may provide, and
(C)
make periodic written reports to the Secretary (at such times and in such manner as the Secretary may provide) of the product identification numbers so assigned and including such information as the Secretary may require with respect to the item of specified property to which such number was so assigned.
(4)
Specified property
For purposes of this subsection, the term  specified property  means any qualified energy property and any property described in subparagraph (B) or (C) of subsection (c)(3).
 .
(b)
Effective date
The amendment made by this section shall take effect as if included in the enactment of section 70505 of  Public Law 119–21 .
202.
New energy efficient home credit
(a)
In general
 Section 45L(h)  is amended by striking  acquired after June 30, 2026  and inserting  acquired after December 31, 2032 .
(b)
Effective date
The amendment made by this section shall take effect as if included in section 70508 of  Public Law 119–21 .
203.
Repeal of termination of new energy efficient commercial buildings deduction
(a)
In general
 Section 179D  is amended by striking subsection (i).
(b)
Effective date
The amendment made by this section shall take effect as if included in section 70507 of  Public Law 119–21 .
204.
Restoration of cost recovery for energy property
(a)
In general
 Section 168(e)(3)(B)(vi)  is amended—
(1)
by redesignating subclauses (I) and (II) as subclauses (II) and (III), respectively, and
(2)
by inserting before subclause (II) (as so redesignated) the following subclause:
(I)
is described in subparagraph (A) of section 48(a)(3) (or would be so described if “solar or wind energy” were substituted for “solar energy” in clause (i) thereof and the last sentence of such section did not apply to such subparagraph),
  .
(b)
Effective date
The amendment made by this section shall take effect as if included in section 70509 of  Public Law 119–21 .
III
Ensuring America Leads the Way in Our Automotive Future
301.
Reversion of termination date for previously-owned vehicle credit
(a)
In general
 Section 25E(g)  is amended by striking  acquired after September 30, 2025  and inserting  acquired after December 31, 2032 .
(b)
Effective date
The amendment made by this section shall take effect as if included in section 70501 of  Public Law 119–21 .
302.
Reversion of termination date for clean vehicle credit
(a)
In general
 Section 30D(h)  is amended by striking  acquired after September 30, 2025  and inserting  placed in service after December 31, 2032 .
(b)
Conforming amendments
(1)
 Section 30D(e)(1)(B)  is amended by striking  and  at the end of clause (iii), by striking the period at the end of clause (iv) and inserting  , and , and by adding at the end the following clause:
(v)
in the case of a vehicle placed in service after December 31, 2026, 80 percent.
 .
(2)
 Section 30D(e)(2)(B)  is amended by striking  and  at the end of clause (ii), by striking the period at the end of clause (iii), and by adding at the end the following clauses:
(iv)
in the case of a vehicle placed in service during calendar year 2027, 80 percent,
(v)
in the case of a vehicle placed in service during calendar year 2028, 90 percent, and
(vi)
in the case of a vehicle placed in service after December 31, 2028, 100 percent.
 .
(c)
Effective date
The amendments made by this section shall take effect as if included in section 70502 of  Public Law 119–21 .
303.
Reversion of termination date for qualified commercial clean vehicles credit
(a)
In general
 Section 45W(g)  is amended by striking  September 30, 2025  and inserting  December 31, 2032 .
(b)
Effective date
The amendment made by this section shall take effect as if included in section 70503 of  Public Law 119–21 .
304.
Reversion of termination date for alternative fuel vehicle refueling property credit
(a)
In general
 Section 30C(i)  is amended by striking  June 30, 2026  and inserting  December 31, 2032 .
(b)
Effective date
The amendment made by this section shall take effect as if included in section 70504 of  Public Law 119–21 .