Save America’s Clean Energy Jobs Act

II 117TH CONGRESS 1ST SESSION S. 985 To amend the Internal Revenue Code of 1986 to provide direct payments of the renewable electricity production credit, the energy credit, and the carbon oxide sequestration credit. IN THE SENATE OF THE UNITED STATES MARCH 25, 2021 Mr. CARPER (for himself, Mr. WHITEHOUSE, and Mr. HEINRICH) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to provide direct payments of the renewable electricity production credit, the energy credit, and the carbon oxide sequestra- tion credit. 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 ‘‘Save America’s Clean 4 Energy Jobs Act’’. 5 VerDate Sep 11 2014 22:11 Apr 18, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S985.IS S985 kjohnson on DSK79L0C42PROD with BILLS 2 •S 985 IS SEC. 2. DIRECT PAYMENT OF RENEWABLE ELECTRICITY 1 PRODUCTION CREDIT AND ENERGY CREDIT. 2 (a) RENEWABLE ELECTRICITY PRODUCTION CRED- 3 IT.— 4 (1) IN GENERAL.—Section 45(e) of the Internal 5 Revenue Code of 1986 is amended by adding at the 6 end the following new paragraph: 7 ‘‘(12) ELECTION FOR DIRECT PAYMENT.— 8 ‘‘(A) IN GENERAL.—In the case of any ap- 9 plicable facility, the amount of any credit deter- 10 mined under subsection (a) with respect to such 11 facility for any taxable year during the period 12 described in paragraph (2)(A)(ii) of such sub- 13 section shall, at the election of the taxpayer, be 14 treated as a payment equal to such amount 15 which is made by the taxpayer against the tax 16 imposed by chapter 1 for such taxable year. 17 ‘‘(B) APPLICABLE FACILITY.—For pur- 18 poses of this paragraph, the term ‘applicable fa- 19 cility’ means a qualified facility— 20 ‘‘(i) the construction of which began 21 before January 1, 2023, and 22 ‘‘(ii) which is originally placed in serv- 23 ice after March 25, 2021. 24 ‘‘(C) FORM AND EFFECT OF ELECTION.— 25 VerDate Sep 11 2014 22:11 Apr 18, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S985.IS S985 kjohnson on DSK79L0C42PROD with BILLS 3 •S 985 IS ‘‘(i) IN GENERAL.—An election under 1 subparagraph (A) shall be made in such 2 manner as the Secretary may prescribe 3 and not later than the due date (including 4 extensions) for the return of tax for the 5 taxable year in which the qualified facility 6 is originally placed in service. Such elec- 7 tion, once made, shall be irrevocable with 8 respect to such qualified facility for the pe- 9 riod described in subsection (a)(2)(A)(ii). 10 ‘‘(ii) EFFECT.—Any election under 11 subparagraph (A) shall, for any taxable 12 year during the period described in sub- 13 section (a)(2)(A)(ii), reduce the amount of 14 the credit which would (but for this para- 15 graph) be allowable under this section with 16 respect to such qualified facility for such 17 taxable year to zero. 18 ‘‘(D) APPLICATION TO PARTNERSHIPS AND 19 S CORPORATIONS.—In the case of a partnership 20 or S corporation which makes an election under 21 subparagraph (A)— 22 ‘‘(i) such subparagraph shall apply 23 with respect to such partnership or cor- 24 poration without regard to the fact that no 25 VerDate Sep 11 2014 22:11 Apr 18, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S985.IS S985 kjohnson on DSK79L0C42PROD with BILLS 4 •S 985 IS tax is imposed by chapter 1 on such part- 1 nership or corporation, and 2 ‘‘(ii)(I) in the case of a partnership, 3 each partner’s distributive share of the 4 credit determined under subsection (a) 5 with respect to the qualified facility shall 6 be deemed to be zero, and 7 ‘‘(II) in the case of a S corporation, 8 each shareholder’s pro rata share of the 9 credit determined under subsection (a) 10 with respect to the qualified facility shall 11 be deemed to be zero.’’. 12 (2) EFFECTIVE DATE.—The amendment made 13 by this subsection shall apply to facilities placed in 14 service after March 25, 2021. 15 (b) ENERGY CREDIT.— 16 (1) IN GENERAL.—Section 48 of the Internal 17 Revenue Code of 1986 is amended by adding at the 18 end the following new subsection: 19 ‘‘(e) ELECTION FOR DIRECT PAYMENT.— 20 ‘‘(1) IN GENERAL.—In the case of any applica- 21 ble property placed in service during any taxable 22 year, the amount of any credit determined under 23 subsection (a) with respect to such property for such 24 taxable year shall, at the election of the taxpayer, be 25 VerDate Sep 11 2014 22:11 Apr 18, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S985.IS S985 kjohnson on DSK79L0C42PROD with BILLS 5 •S 985 IS treated as a payment equal to such amount which is 1 made by the taxpayer against the tax imposed by 2 chapter 1 for such taxable year (regardless of wheth- 3 er such tax would have been on such taxpayer). 4 ‘‘(2) APPLICABLE PROPERTY.—For purposes of 5 this subsection, the term ‘applicable property’ means 6 any energy property (including any qualified prop- 7 erty which is treated as energy property pursuant to 8 subsection (a)(5))— 9 ‘‘(A) the construction of which began be- 10 fore January 1, 2023, and 11 ‘‘(B) which is originally placed in service 12 after March 25, 2021. 13 Such term shall not include any property if a credit 14 for qualified progress expenditures has been allowed 15 with respect to such property before the date of any 16 election under paragraph (1). 17 ‘‘(3) FORM AND EFFECT OF ELECTION.— 18 ‘‘(A) IN GENERAL.—An election under 19 paragraph (1) shall be made in such manner as 20 the Secretary may prescribe and not later than 21 the due date (including extensions) for the re- 22 turn of tax for the taxable year in which the ap- 23 plicable property is originally placed in service. 24 VerDate Sep 11 2014 22:11 Apr 18, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S985.IS S985 kjohnson on DSK79L0C42PROD with BILLS 6 •S 985 IS Such election, once made, shall be irrevocable 1 with respect to the applicable property. 2 ‘‘(B) EFFECT.—Any election under para- 3 graph (1) shall reduce the amount of the credit 4 which would (but for this subsection) be allow- 5 able under this section with respect to such ap- 6 plicable property for the taxable year in which 7 such property is placed in service to zero. 8 The reduction in credit under subparagraph (B) 9 shall not be taken into account for purposes of 10 applying section 50(a) with respect to such 11 property. 12 ‘‘(4) APPLICATION TO PARTNERSHIPS AND S 13 CORPORATIONS.—Rules similar to the rules of sec- 14 tion 45(e)(12)(D) shall apply for purposes of this 15 subsection. 16 ‘‘(5) REGULATIONS AND GUIDANCE.—The Sec- 17 retary shall prescribe such regulations and guidance 18 as may be necessary to carry out this subsection, in- 19 cluding regulations or guidance to relating to report- 20 ing on the use of applicable property for purposes of 21 administering the recapture under section 50(a) of 22 any refund made by reason of this section.’’. 23 VerDate Sep 11 2014 22:11 Apr 18, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S985.IS S985 kjohnson on DSK79L0C42PROD with BILLS 7 •S 985 IS (2) EFFECTIVE DATE.—The amendment made 1 by this subsection shall apply to property placed in 2 service after March 25, 2021. 3 (c) CARBON OXIDE SEQUESTRATION CREDIT.— 4 (1) IN GENERAL.—Section 45Q(f) of the Inter- 5 nal Revenue Code of 1986 is amended by adding at 6 the end the following new paragraph: 7 ‘‘(8) ELECTION FOR DIRECT PAYMENT.— 8 ‘‘(A) IN GENERAL.—In the case of any ap- 9 plicable equipment, the amount of any credit 10 determined under subsection (a) with respect to 11 any qualified carbon oxide captured by such 12 equipment for any taxable year during the ap- 13 plicable period shall, at the election of the tax- 14 payer, be treated as a payment equal to such 15 amount which is made by the taxpayer against 16 the tax imposed by chapter 1 for such taxable 17 year. 18 ‘‘(B) APPLICABLE EQUIPMENT.—For pur- 19 poses of this paragraph, the term ‘applicable 20 equipment’ means carbon capture equipment— 21 ‘‘(i) which is originally placed in serv- 22 ice after March 25, 2021, at a qualified fa- 23 cility the construction of which began be- 24 fore January 1, 2023, and 25 VerDate Sep 11 2014 22:11 Apr 18, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S985.IS S985 kjohnson on DSK79L0C42PROD with BILLS 8 •S 985 IS ‘‘(ii)(I) the construction of which 1 began before January 1, 2023, or 2 ‘‘(II) which was placed in service at a 3 qualified facility the original planning and 4 design of which included such equipment. 5 ‘‘(C) APPLICABLE PERIOD.—For purposes 6 of this paragraph, the term ‘applicable period’ 7 means the 12-year period beginning on the date 8 that the applicable equipment was originally 9 placed in service. 10 ‘‘(D) FORM AND EFFECT OF ELECTION.— 11 ‘‘(i) IN GENERAL.—An election under 12 subparagraph (A) shall be made in such 13 manner as the Secretary may prescribe 14 and not later than the due date (including 15 extensions) for the return of tax for the 16 taxable year in which the applicable equip- 17 ment is originally placed in service. Such 18 election, once made, shall be irrevocable 19 with respect to such applicable equipment 20 for the applicable period. 21 ‘‘(ii) EFFECT.—Any election under 22 subparagraph (A) shall, for any taxable 23 year during the applicable period, reduce 24 the amount of the credit which would (but 25 VerDate Sep 11 2014 22:11 Apr 18, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S985.IS S985 kjohnson on DSK79L0C42PROD with BILLS 9 •S 985 IS for this paragraph) be allowable under this 1 section with respect to such applicable 2 equipment for such taxable year to zero. 3 ‘‘(E) APPLICATION TO PARTNERSHIPS AND 4 S CORPORATIONS.—In the case of a partnership 5 or S corporation which makes an election under 6 subparagraph (A)— 7 ‘‘(i) such subparagraph shall apply 8 with respect to such partnership or cor- 9 poration without regard to the fact that no 10 tax is imposed by chapter 1 on such part- 11 nership or corporation, and 12 ‘‘(ii)(I) in the case of a partnership, 13 each partner’s distributive share of the 14 credit determined under subsection (a) 15 with respect to the qualified carbon oxide 16 captured using such applicable equipment 17 shall be deemed to be zero, and 18 ‘‘(II) in the case of a S corporation, 19 each shareholder’s pro rata share of the 20 credit determined under subsection (a) 21 with respect to the qualified carbon oxide 22 captured using such applicable equipment 23 shall be deemed to be zero.’’. 24 VerDate Sep 11 2014 22:11 Apr 18, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S985.IS S985 kjohnson on DSK79L0C42PROD with BILLS 10 •S 985 IS (2) EFFECTIVE DATE.—The amendment made 1 by this subsection shall apply to property placed in 2 service after March 25, 2021. 3 Æ VerDate Sep 11 2014 22:11 Apr 18, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6301 E:\BILLS\S985.IS S985 kjohnson on DSK79L0C42PROD with BILLS