To amend the Internal Revenue Code of 1986 to increase and expand the credit for carbon oxide sequestration.

I 117TH CONGRESS 1ST SESSION H. R. 2633 To amend the Internal Revenue Code of 1986 to increase and expand the credit for carbon oxide sequestration. IN THE HOUSE OF REPRESENTATIVES APRIL 16, 2021 Mr. SCHWEIKERT (for himself, Mr. WENSTRUP, and Mrs. MILLER of West Virginia) introduced the following bill; which was referred to the Com- mittee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to increase and expand the credit for carbon 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. IMPROVEMENTS TO CREDIT FOR CARBON 3 OXIDE SEQUESTRATION. 4 (a) INCREASE IN APPLICABLE DOLLAR AMOUNT.— 5 Section 45Q(b)(1)(A) of the Internal Revenue Code of 6 1986 is amended— 7 (1) in clause (i)(I) and (ii)(I), by striking 8 ‘‘$50’’ and inserting ‘‘$85’’, and 9 VerDate Sep 11 2014 03:49 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2633.IH H2633 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 2633 IH (2) in clause (i)(II) and (ii)(II), by striking 1 ‘‘$35’’ and inserting ‘‘$50’’. 2 (b) REPEAL OF PLACED-IN-SERVICE DEADLINE; EX- 3 PANSION OF FACILITIES TO WHICH CREDIT APPLIES.— 4 Section 45Q(d) of such Code is amended to read as fol- 5 lows: 6 ‘‘(d) QUALIFIED FACILITY.—For purposes of this 7 section, the term ‘qualified facility’ means any industrial 8 facility or direct air capture facility which captures— 9 ‘‘(1) in the case of a facility which emits not 10 more than 500,000 metric tons of carbon oxide into 11 the atmosphere during the taxable year, not less 12 than 10,000 metric tons of qualified carbon oxide 13 during the taxable year which is utilized in a manner 14 described in subsection (f)(5), 15 ‘‘(2) in the case of an electricity generating fa- 16 cility which is not described in paragraph (1), not 17 less than 100,000 metric tons of qualified carbon 18 oxide during the taxable year, 19 ‘‘(3) in the case of a direct air capture facility, 20 not less than 10,000 metric tons of qualified carbon 21 oxide during the taxable year, or 22 ‘‘(4) in the case of any facility not described in 23 paragraph (1), (2), or (3), not less than 25,000 met- 24 VerDate Sep 11 2014 03:49 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2633.IH H2633 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 2633 IH ric tons of qualified carbon oxide during the taxable 1 year.’’. 2 (c) EXTENSION OF CREDIT PERIOD.—Paragraphs 3 (3)(A) and (4)(A) of section 45Q(a) of such Code are each 4 amended by striking ‘‘12-year’’ and inserting ‘‘20-year’’. 5 (d) EFFECTIVE DATE.—The amendments made by 6 this section shall apply to taxable years beginning after 7 December 31, 2020. 8 Æ VerDate Sep 11 2014 03:49 Jun 02, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H2633.IH H2633 kjohnson on DSK79L0C42PROD with BILLS