Credit Reduced for Tax-Exempt Bond Financing

For facilities or equipment placed in service after 2022, the credit is reduced by an amount that is the product of the credit amount otherwise determined for the tax year and the lesser of 15% or a fraction determined for the tax year. The numerator of the fraction is the sum, for the tax year and all prior tax years, of the proceeds of an issue of any obligations the interest on which is exempt from tax under section 103 and that is used to provide financing for the facility as of the close of the tax year. The denominator of the fraction is the aggregate amount of additions to the capital account for the facility for the tax year and all prior tax years as of the close of the tax year.