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136 STAT. 1974 PUBLIC LAW 117–169—AUG. 16, 2022 respect to such component shall be equal to the product of— ‘‘(i) the amount determined under paragraph (1) with respect to such component, as determined without regard to this paragraph, multiplied by ‘‘(ii) the phase out percentage under subparagraph (B). ‘‘(B) PHASE OUT PERCENTAGE.—The phase out percent- age under this subparagraph is equal to— ‘‘(i) in the case of an eligible component sold during calendar year 2030, 75 percent, ‘‘(ii) in the case of an eligible component sold during calendar year 2031, 50 percent, ‘‘(iii) in the case of an eligible component sold during calendar year 2032, 25 percent, ‘‘(iv) in the case of an eligible component sold after December 31, 2032, 0 percent. ‘‘(C) EXCEPTION.—For purposes of determining the amount under this subsection with respect to any applicable critical mineral, this paragraph shall not apply. ‘‘(4) LIMITATION ON CAPACITY OF BATTERY CELLS AND BAT- TERY MODULES.— ‘‘(A) IN GENERAL.—For purposes of subparagraph (K)(ii) or (L)(ii) of paragraph (1), the capacity determined under either subparagraph with respect to a battery cell or bat- tery module shall not exceed a capacity-to-power ratio of 100:1. ‘‘(B) CAPACITY-TO-POWER RATIO.—For purposes of this paragraph, the term ‘capacity-to-power ratio’ means, with respect to a battery cell or battery module, the ratio of the capacity of such cell or module to the maximum dis- charge amount of such cell or module. ‘‘(c) DEFINITIONS.—For purposes of this section— ‘‘(1) ELIGIBLE COMPONENT.— ‘‘(A) IN GENERAL.—The term ‘eligible component’ means— ‘‘(i) any solar energy component, ‘‘(ii) any wind energy component, ‘‘(iii) any inverter described in subparagraphs (B) through (G) of paragraph (2), ‘‘(iv) any qualifying battery component, and ‘‘(v) any applicable critical mineral. ‘‘(B) APPLICATION WITH OTHER CREDITS.—The term ‘eligible component’ shall not include any property which is produced at a facility if the basis of any property which is part of such facility is taken into account for purposes of the credit allowed under section 48C after the date of the enactment of this section. ‘‘(2) INVERTERS.— ‘‘(A) IN GENERAL.—The term ‘inverter’ means an end product which is suitable to convert direct current elec- tricity from 1 or more solar modules or certified distributed wind energy systems into alternating current electricity. ‘‘(B) CENTRAL INVERTER.—The term ‘central inverter’ means an inverter which is suitable for large utility-scale systems and has a capacity which is greater than 1,000 Definition. Determination. VerDate Sep 11 2014 15:35 Oct 25, 2022 Jkt 029139 PO 00169 Frm 00158 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL169.117 PUBL169 jmbennett on LAP3P8D0R2PROD with Publaw