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136 STAT. 1911 PUBLIC LAW 117–169—AUG. 16, 2022 United States (as determined under section 661 of title 49, Code of Federal Regulations). ‘‘(ii) STEEL AND IRON.—In the case of steel or iron, clause (i) shall be applied in a manner consistent with section 661.5 of title 49, Code of Federal Regulations. ‘‘(iii) MANUFACTURED PRODUCT.—For purposes of clause (i), the manufactured products which are compo- nents of a qualified facility upon completion of construction shall be deemed to have been produced in the United States if not less than the adjusted percentage (as determined under subparagraph (C)) of the total costs of all such manufactured products of such facility are attributable to manufactured prod- ucts (including components) which are mined, pro- duced, or manufactured in the United States. ‘‘(C) ADJUSTED PERCENTAGE.— ‘‘(i) IN GENERAL.—Subject to subclause (ii), for pur- poses of subparagraph (B)(iii), the adjusted percentage shall be 40 percent. ‘‘(ii) OFFSHORE WIND FACILITY.—For purposes of subparagraph (B)(iii), in the case of a qualified facility which is an offshore wind facility, the adjusted percent- age shall be 20 percent. ‘‘(10) 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 (9)(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, and ‘‘(ii) if construction of such facility began in cal- endar year 2024, 90 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 Effective dates. Applicability. VerDate Sep 11 2014 13:57 Oct 25, 2022 Jkt 029139 PO 00169 Frm 00095 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL169.117 PUBL169 jmbennett on LAP3P8D0R2PROD with Publaw