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136 STAT. 1989 PUBLIC LAW 117–169—AUG. 16, 2022 ‘‘(II) in the case of a facility the construction of which begins after December 31, 2024, and before January 1, 2026, 27.5 percent, ‘‘(III) in the case of a facility the construction of which begins after December 31, 2025, and before January 1, 2027, 35 percent, ‘‘(IV) in the case of a facility the construction of which begins after December 31, 2026, and before January 1, 2028, 45 percent, and ‘‘(V) in the case of a facility the construction of which begins after December 31, 2027, 55 per- cent. ‘‘(12) PHASEOUT FOR ELECTIVE PAYMENT.— ‘‘(A) IN GENERAL.—In the case of a taxpayer making an election under section 6417 with respect to a credit under this section, the amount of such credit shall be replaced with— ‘‘(i) the value of such credit (determined without regard to this paragraph), multiplied by ‘‘(ii) the applicable percentage. ‘‘(B) 100 PERCENT APPLICABLE PERCENTAGE FOR CER- TAIN QUALIFIED FACILITIES.—In the case of any qualified facility— ‘‘(i) which satisfies the requirements under para- graph (11)(B), or ‘‘(ii) with a maximum net output of less than 1 megawatt (as measured in alternating current), the applicable percentage shall be 100 percent. ‘‘(C) PHASED DOMESTIC CONTENT REQUIREMENT.—Sub- ject to subparagraph (D), in the case of any qualified facility which is not described in subparagraph (B), the applicable percentage shall be— ‘‘(i) if construction of such facility began before January 1, 2024, 100 percent, ‘‘(ii) if construction of such facility began in cal- endar year 2024, 90 percent, ‘‘(iii) if construction of such facility began in cal- endar year 2025, 85 percent, and ‘‘(iv) if construction of such facility began after December 31, 2025, 0 percent. ‘‘(D) EXCEPTION.— ‘‘(i) IN GENERAL.—For purposes of this paragraph, the Secretary shall provide exceptions to the require- ments under this paragraph if— ‘‘(I) the inclusion of steel, iron, or manufac- tured products which are produced in the United States increases the overall costs of construction of qualified facilities by more than 25 percent, or ‘‘(II) relevant steel, iron, or manufactured products are not produced in the United States in sufficient and reasonably available quantities or of a satisfactory quality. ‘‘(ii) APPLICABLE PERCENTAGE.—In any case in which the Secretary provides an exception pursuant to clause (i), the applicable percentage shall be 100 percent.’’. Effective dates. Time periods. VerDate Sep 11 2014 15:35 Oct 25, 2022 Jkt 029139 PO 00169 Frm 00173 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL169.117 PUBL169 jmbennett on LAP3P8D0R2PROD with Publaw