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139 STAT. 272 PUBLIC LAW 119–21—JULY 4, 2025 (iv) in paragraph (7), as redesignated by clause (i), by striking ‘‘or (3)’’ and inserting ‘‘(3), or (4)’’. (B) CONFORMING AMENDMENTS.— (i) Section 1371(d)(1) is amended by striking ‘‘sec- tion 50(a)(5)’’ and inserting ‘‘section 50(a)(6)’’. (ii) Section 6418(g)(3) is amended by striking ‘‘sub- section (a)(5)’’ each place it appears and inserting ‘‘sub- section (a)(7)’’. (c) DENIAL OF CREDIT FOR EXPENDITURES FOR CERTAIN WIND AND SOLAR LEASING ARRANGEMENTS.— (1) IN GENERAL.—Section 48E is amended— (A) by redesignating subsection (i) as subsection (j), and (B) by inserting after subsection (h) the following new subsection: ‘‘(i) DENIAL OF CREDIT FOR EXPENDITURES FOR WIND AND SOLAR LEASING ARRANGEMENTS.—No credit shall be determined under this section for any qualified investment during the taxable year with respect to property described in paragraph (1) or (4) of section 25D(d) (as applied by substituting ‘lessee’ for ‘taxpayer’) if the taxpayer rents or leases such property to a third party during such taxable year.’’. (2) CONFORMING RULES.—Section 50 is amended by adding at the end the following new subsection: ‘‘(e) RULES FOR GEOTHERMAL HEAT PUMPS.—For purposes of this section and section 168, the ownership of energy property described in section 48(a)(3)(A)(vii) shall be determined without regard to whether such property is readily usable by a person other than the lessee or service recipient.’’. (d) DOMESTIC CONTENT RULES.—Subparagraph (B) of section 48E(a)(3) is amended to read as follows: ‘‘(B) DOMESTIC CONTENT.—Rules similar to the rules of section 48(a)(12) shall apply, except that, for purposes of subparagraph (B) of such section and the application of rules similar to the rules of section 45(b)(9)(B), the adjusted percentage (as determined under section 45(b)(9)(C)) shall be determined as follows: ‘‘(i) In the case of any qualified investment with respect to any qualified facility or energy storage tech- nology the construction of which begins before June 16, 2025, 40 percent (or, in the case of a qualified facility which is an offshore wind facility, 20 percent). ‘‘(ii) In the case of any qualified investment with respect to any qualified facility or energy storage tech- nology the construction of which begins on or after June 16, 2025, and before January 1, 2026, 45 percent (or, in the case of a qualified facility which is an offshore wind facility, 27.5 percent). ‘‘(iii) In the case of any qualified investment with respect to any qualified facility or energy storage tech- nology the construction of which begins during cal- endar year 2026, 50 percent (or, in the case of a quali- fied facility which is an offshore wind facility, 35 per- cent). Applicability. Determination. Time periods. Determination.