Extend tax credits for clean vehicles to possessions of the United States.

Section 30D(f)(4) of the Internal Revenue Code of 1986 is amended—

(1) in the heading, by striking Property and inserting Certain property,

(2) by striking No credit and inserting:

Except as provided in subparagraph (B), no credit

(2) , and

(3) by adding at the end the following:

In the case of property which is used predominantly in a possession of the United States, the credit allowable under subsection (a) shall be determined without regard to subparagraph (A).

Section 30D(f) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

In the case of any possession of the United States with a mirror code tax system, this section shall not be treated as part of the income tax laws of the United States for purposes of determining the income tax law of such possession unless such possession elects to have this section be so treated.

The Secretary shall pay to each possession of the United States which does not have a mirror code tax system amounts estimated by the Secretary as being equal to the aggregate benefits (if any) that would have been provided to residents of such possession by reason of the provisions of this section if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply unless the respective possession has a plan which has been approved by the Secretary under which such possession will promptly distribute such payments to its residents.

Rules similar to the rules of paragraphs (3), (4), and (5) of section 21(h) shall apply for purposes of this section.

Section 25E of such Code is amended—

(A) by redesignating subsection (g) as subsection (h), and

(B) by inserting after subsection (f) the following new subsection:

Rules similar to the rules of paragraph (12) of section 30D(f) shall apply.

The amendments made by this section shall take effect as if included in the provisions of Public Law 117–169 to which they relate.