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136 STAT. 2004 PUBLIC LAW 117–169—AUG. 16, 2022 ‘‘(11) The qualifying advanced energy project credit deter- mined under section 48C. ‘‘(12) The clean electricity investment credit determined under section 48E. ‘‘(c) APPLICATION TO PARTNERSHIPS AND S CORPORATIONS.— ‘‘(1) IN GENERAL.—In the case of any applicable credit deter- mined with respect to any facility or property held directly by a partnership or S corporation, any election under subsection (a) shall be made by such partnership or S corporation. If such partnership or S corporation makes an election under such subsection (in such manner as the Secretary may provide) with respect to such credit— ‘‘(A) the Secretary shall make a payment to such part- nership or S corporation equal to the amount of such credit, ‘‘(B) subsection (e) shall be applied with respect to such credit before determining any partner’s distributive share, or shareholder’s pro rata share, of such credit, ‘‘(C) any amount with respect to which the election in subsection (a) is made shall be treated as tax exempt income for purposes of sections 705 and 1366, and ‘‘(D) a partner’s distributive share of such tax exempt income shall be based on such partner’s distributive share of the otherwise applicable credit for each taxable year. ‘‘(2) COORDINATION WITH APPLICATION AT PARTNER OR SHAREHOLDER LEVEL.—In the case of any facility or property held directly by a partnership or S corporation, no election by any partner or shareholder shall be allowed under subsection (a) with respect to any applicable credit determined with respect to such facility or property. ‘‘(3) TREATMENT OF PAYMENTS TO PARTNERSHIPS AND S COR- PORATIONS.—For purposes of section 1324 of title 31, United States Code, the payments under paragraph (1)(A) shall be treated in the same manner as a refund due from a credit provision referred to in subsection (b)(2) of such section. ‘‘(d) SPECIAL RULES.—For purposes of this section— ‘‘(1) APPLICABLE ENTITY.— ‘‘(A) IN GENERAL.—The term ‘applicable entity’ means— ‘‘(i) any organization exempt from the tax imposed by subtitle A, ‘‘(ii) any State or political subdivision thereof, ‘‘(iii) the Tennessee Valley Authority, ‘‘(iv) an Indian tribal government (as defined in section 30D(g)(9)), ‘‘(v) any Alaska Native Corporation (as defined in section 3 of the Alaska Native Claims Settlement Act (43 U.S.C. 1602(m)), or ‘‘(vi) any corporation operating on a cooperative basis which is engaged in furnishing electric energy to persons in rural areas. ‘‘(B) ELECTION WITH RESPECT TO CREDIT FOR PRODUC- TION OF CLEAN HYDROGEN.—If a taxpayer other than an entity described in subparagraph (A) makes an election under this subparagraph with respect to any taxable year in which such taxpayer has placed in service a qualified clean hydrogen production facility (as defined in section 45V(c)(3)), such taxpayer shall be treated as an applicable entity for purposes of this section for such taxable year, Definition. Effective dates. VerDate Sep 11 2014 15:35 Oct 25, 2022 Jkt 029139 PO 00169 Frm 00188 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL169.117 PUBL169 jmbennett on LAP3P8D0R2PROD with Publaw