ACCESS 45Q Act

I 117TH CONGRESS 1ST SESSION H. R. 1062 To amend the Internal Revenue Code of 1986 to extend and allow an elective payment of the tax credit for carbon oxide sequestration. IN THE HOUSE OF REPRESENTATIVES FEBRUARY 15, 2021 Mr. MCKINLEY (for himself and Mr. VEASEY) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to extend and allow an elective payment of the tax credit for car- bon oxide sequestration. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Accelerating Carbon 4 Capture and Extending Secure Storage through 45Q Act’’ 5 or as the ‘‘ACCESS 45Q Act’’. 6 VerDate Sep 11 2014 17:09 Mar 12, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1062.IH H1062 2 •HR 1062 IH SEC. 2. EXTENSION OF CREDIT FOR CARBON OXIDE SE- 1 QUESTRATION. 2 Section 45Q(d)(1) of the Internal Revenue Code of 3 1986 is amended by striking ‘‘January 1, 2026’’ and in- 4 serting ‘‘January 1, 2036’’. 5 SEC. 3. ELECTIVE PAYMENT FOR CARBON OXIDE SEQUES- 6 TRATION. 7 (a) IN GENERAL.—Subchapter B of chapter 65 of the 8 Internal Revenue Code of 1986 is amended by adding at 9 the end the following new section: 10 ‘‘SEC. 6431. ELECTIVE PAYMENT FOR CARBON OXIDE SE- 11 QUESTRATION. 12 ‘‘(a) IN GENERAL.—In the case of a taxpayer making 13 an election (at such time and in such manner as the Sec- 14 retary may provide) under this section with respect to any 15 portion of a carbon oxide sequestration credit which would 16 (without regard to this section) be determined under sec- 17 tion 45Q with respect to such taxpayer, such taxpayer 18 shall be treated as making a payment against the tax im- 19 posed by subtitle A for the taxable year equal to the 20 amount of such portion. 21 ‘‘(b) LIMITATION.—The portion of a carbon oxide se- 22 questration credit with respect to which a taxpayer may 23 make an election under this section shall not exceed the 24 portion of such credit which is attributable to property 25 VerDate Sep 11 2014 17:09 Mar 12, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1062.IH H1062 3 •HR 1062 IH originally placed in service after the date of the enactment 1 of this section. 2 ‘‘(c) TIMING.—The payment described in subsection 3 (a) shall be treated as made on the later of the due date 4 of the return of tax for such taxable year or the date on 5 which such return is filed. 6 ‘‘(d) EXCLUSION FROM GROSS INCOME.—Gross in- 7 come of the taxpayer shall be determined without regard 8 to this section. 9 ‘‘(e) DENIAL OF DOUBLE BENEFIT.—Solely for pur- 10 poses of section 38, in the case of a taxpayer making an 11 election under this section, the carbon oxide sequestration 12 credit determined under section 45Q shall be reduced by 13 the amount of the portion of such credit with respect to 14 which the taxpayer makes such election. 15 ‘‘(f) SPECIAL RULES.— 16 ‘‘(1) In the case of a taxpayer making an elec- 17 tion under this subsection, the credit subject to such 18 an election shall be determined notwithstanding— 19 ‘‘(A) section 50(b)(3); and 20 ‘‘(B) section 50(b)(4) for an entity de- 21 scribed in 50(b)(4)(A)(i). 22 ‘‘(2) In the case of a mutual or cooperative 23 electric company described in this paragraph or an 24 organization described in section 1381(a)(2), any in- 25 VerDate Sep 11 2014 17:09 Mar 12, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1062.IH H1062 4 •HR 1062 IH come received or accrued in connection with the 1 credit under this section shall be treated as an 2 amount collected from members for the sole purpose 3 of meeting losses and expenses.’’. 4 (b) CLERICAL AMENDMENT.—The table of sections 5 for subchapter B of chapter 65 of such Code is amended 6 by adding at the end the following new item: 7 ‘‘Sec. 6431. Elective payment for carbon oxide sequestration.’’. (c) EFFECTIVE DATE.—The amendments made by 8 this section shall apply to credits determined for taxable 9 years ending after the date of the enactment of this Act. 10 SEC. 4. ALLOWANCE OF THE CARBON OXIDE SEQUESTRA- 11 TION CREDIT AGAINST THE BASE EROSION 12 MINIMUM TAX. 13 (a) IN GENERAL.—Section 59A(b) of the Internal 14 Revenue Code of 1986 is amended— 15 (1) by inserting ‘‘and the carbon dioxide se- 16 questration credit determined under section 45Q’’ 17 after ‘‘section 41(a)’’ in paragraph (1)(B)(ii)(I), and 18 (2) by inserting ‘‘(other than the credit allowed 19 under section 38 for the taxable year which is prop- 20 erly allocable to the credit for carbon oxide seques- 21 tration determined under section 45Q)’’ after ‘‘cred- 22 its allowed under this chapter’’. 23 VerDate Sep 11 2014 17:09 Mar 12, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1062.IH H1062 5 •HR 1062 IH (b) EFFECTIVE DATE.—The amendments made by 1 this section shall take effect as if included in section 2 41119 of the Bipartisan Budget Act of 2018. 3 Æ VerDate Sep 11 2014 17:09 Mar 12, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H1062.IH H1062