What This Bill Does
This bill removes certain tax credits from the Internal Revenue Code of 1986. The bill eliminates credits listed as sections 45, 45J, 45Q, 45U, 45V, 45X, 45Y, 48, 48A, 48B, 48C, 48D, and 48E from the tax code. It also makes related changes to other tax sections that reference these removed credits.
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Who It Affects
- Organizations exempt from federal income tax
- State and local governments
- Tennessee Valley Authority
- Indian tribal governments
- Alaska Native Corporations
- Corporations operating on a cooperative basis that provide electric energy in rural areas
- Taxpayers who currently claim the removed credits
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Key Provisions
- The bill repeals tax credits listed as sections 45, 45J, 45Q, 45U, 45V, 45X, 45Y, 48, 48A, 48B, 48C, 48D, and 48E from the Internal Revenue Code (Sec. 2(a))
- The bill updates Section 38 of the tax code by removing references to the repealed credits and renumbering remaining paragraphs (Sec. 2(b))
- The bill modifies rules for tax-exempt organizations, states, the Tennessee Valley Authority, Indian tribal governments, Alaska Native Corporations, and rural electric cooperatives who wish to claim certain remaining credits (Sec. 2(c)(17))
- The bill changes the definition of "qualified facility" to mean a facility used for the production of transportation fuels (Sec. 2(c)(6)(B))
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What Changes
If this bill becomes law, the specific tax credits listed above would no longer be available. Any references to these credits in other parts of the tax code would be removed or updated. Tax-exempt entities and certain government organizations would face new procedures for claiming remaining available credits.
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Important Definitions
- **Applicable entity:** An organization exempt from federal income tax, a state or political subdivision, the Tennessee Valley Authority, an Indian tribal government, an Alaska Native Corporation, or a corporation operating on a cooperative basis that furnishes electric energy to rural areas (Sec. 2(c)(17)(B))
- **Qualified facility:** A facility used for the production of transportation fuels (Sec. 2(c)(6)(B))
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Effective Date
The amendments made by this bill apply to taxable years beginning after December 31, 2022 (Sec. 2(d))
I
118TH CONGRESS
1ST SESSION H. R. 1562
To amend the Internal Revenue Code of 1986 to repeal certain credits.
IN THE HOUSE OF REPRESENTATIVES
MARCH 10, 2023
Mr. PERRY (for himself, Mr. ROY, Mr. BIGGS, and Mr. OGLES) 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 repeal
certain credits.
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 ‘‘Restoring Energy Mar-
4
ket Freedom Act’’.
5
SEC. 2. REPEAL OF CREDITS.
6
(a) IN GENERAL.—Subpart D of part IV of sub-
7
chapter A of chapter 1 of the Internal Revenue Code of
8
1986 is amended by striking sections 45, 45J, 45Q, 45U,
9
45V, 45X, 45Y, 48, 48A, 48B, 48C, 48D, and 48E (and
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•HR 1562 IH
by striking the items relating to such sections in the table
1
of sections for such subpart).
2
(b) GENERAL BUSINESS CREDIT.—Section 38 of
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such Code is amended—
4
(1) in subsection (b), by striking paragraphs
5
(8), (21), (29), (36), (37), (38), and (39) and redes-
6
ignating paragraphs (9)–(20), (22)–(28), (30)–(35),
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and (40)–(41) as paragraphs (8)–(19), (20)–(26),
8
(27)–(32), and (33)–(34), respectively, and
9
(2) in subsection (c)(4)(B), by striking clauses
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(iv), (v), and (x) and redesignating clauses (vi)–(ix)
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and (xi)–(xii) as clauses (iv)–(vii) and (viii)–(ix), re-
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spectively.
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(c) CONFORMING AMENDMENTS.—
14
(1) Section 25(e)(3) of such Code is amended
15
by adding ‘‘(as in effect immediately before its re-
16
peal)’’ before the period at the end.
17
(2) Section 30C of such Code is amended—
18
(A) in subsection (g)(2)(B), by inserting
19
‘‘(as in effect immediately prior to its repeal)’’
20
after ‘‘section 45(b)(7)(B)’’, and
21
(B) in subsection (g)(3), by inserting ‘‘(as
22
in effect immediately prior to its repeal)’’ after
23
‘‘section 45(b)(8)’’.
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(3) Section 45K(b)(3) of such Code is amended
1
by striking ‘‘(within the meaning of section
2
48(a)(4)(C))’’ and inserting ‘‘(within the meaning of
3
section 48(a)(4)(C) as in effect immediately before
4
its repeal)’’.
5
(4) Section 45K(g)(2) of such Code is amended
6
by striking subparagraph (E).
7
(5) Section 45L(g)(2)(B) of such Code is
8
amended by inserting ‘‘(as in effect immediately
9
prior to its repeal)’’ after ‘‘section 45(b)(7)(B)’’.
10
(6) Section 45Z of such Code is amended—
11
(A) in subsection (c), by inserting ‘‘(as in
12
effect immediately prior to its repeal)’’ after
13
‘‘pursuant to section 45Y(c)’’,
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(B) by amending subsection (d)(4) to read
15
as follows:
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‘‘(4) QUALIFIED FACILITY.—The term ‘quali-
17
fied facility’ means a facility used for the production
18
of transportation fuels.’’, and
19
(C) in subsection (f)—
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(i) in paragraph (5), by inserting ‘‘(as
21
in effect immediately prior to its repeal)’’
22
after ‘‘section 45Y(g)(6)’’,
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•HR 1562 IH
(ii) in paragraph (6), by inserting
1
‘‘(as in effect immediately prior to its re-
2
peal)’’ after ‘‘section 45(b)(7)’’, and
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(iii) in paragraph (7), by inserting
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‘‘(as in effect immediately prior to its re-
5
peal)’’ after ‘‘section 45(b)(8)’’.
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(7) Section 49(a)(C) of such Code is amended
7
by adding ‘‘and’’ at the end of clause (i), by striking
8
the comma at the end of clause (ii) and inserting a
9
period, and by striking clauses (ii), (iv), (v), and
10
(vi).
11
(8) Section 50(a)(2)(E) of such Code is amend-
12
ed by striking ‘‘section 48(b)’’.
13
(9) Section 50(a) of such Code is amended—
14
(A) in paragraph (2), by striking subpara-
15
graph (E), and
16
(B) by striking paragraph (3).
17
(10) Section 56A(c) of such Code is amended
18
by striking paragraph (9).
19
(11) Section 59A(b)(4) of such Code is amend-
20
ed by striking ‘‘properly allocable to’’ and all that
21
follows through the period and by inserting ‘‘prop-
22
erly allocable to the low-income housing credit deter-
23
mined under section 42(a).’’.
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(12) Section 142(o) of such Code is amended
1
by inserting ‘‘as in effect immediately prior to its re-
2
peal’’ after ‘‘(as defined in section 45Q(e)(3)’’.
3
(13) Section 168(e)(3)(B) of such Code is
4
amended—
5
(A) in clause (v), by adding ‘‘and’’ at the
6
end, and
7
(B) by striking clause (vi).
8
(14) Section 179D(b) of such Code is amend-
9
ed—
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(A) in paragraph (4)(B), by inserting ‘‘(as
11
in effect immediately prior to its repeal)’’ after
12
‘‘section 45(b)(7)(B)’’, and
13
(B) in paragraph (5), by inserting ‘‘(as in
14
effect immediately prior to its repeal)’’ after
15
‘‘section 45(b)(8)’’.
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(15) Section 409 of such Code is amended—
17
(A) in subsection (g), by striking ‘‘section
18
48(n)(1) or’’ and ‘‘section 48(n)(1) and’’, and
19
(B) in subsection (m), by striking ‘‘, or
20
subparagraph (A) or (B) of section 48(n)(1)’’.
21
(16) Section 501(c)(12) of such Code is amend-
22
ed by striking subparagraph (I) and by redesig-
23
nating subparagraph (J) as subparagraph (I).
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(17) Section 6417 of such Code is amended—
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(A) in subsection (b), by striking para-
1
graphs (2), (3), (4), (5), (7), (8), (10), (11),
2
and (12) and by redesignating paragraphs (6)
3
and (9) as paragraphs (2) and (3), respectively,
4
and
5
(B) in subsection (d)—
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(i) by amending paragraph (1) to read
7
as follows:
8
‘‘(1) APPLICABLE ENTITY.—The term ‘applica-
9
ble entity’ means—
10
‘‘(A) any organization exempt from the tax
11
imposed by subtitle A,
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‘‘(B) any State or political subdivision
13
thereof,
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‘‘(C) the Tennessee Valley Authority,
15
‘‘(D) an Indian tribal government (as de-
16
fined in section 30D(g)(9)),
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‘‘(E) any Alaska Native Corporation (as
18
defined in section 3 of the Alaska Native
19
Claims Settlement Act (43 U.S.C. 1602(m)), or
20
‘‘(F) any corporation operating on a coop-
21
erative basis which is engaged in furnishing
22
electric energy to persons in rural areas.’’, and
23
(ii) by amending paragraph (3) to
24
read as follows:
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‘‘(3) ELECTIONS.—
1
‘‘(A) DUE DATE.—Any election under sub-
2
section (a) shall be made not later than—
3
‘‘(i) in the case of any government, or
4
political subdivision, described in para-
5
graph (1) and for which no return is re-
6
quired under section 6011 or 6033(a),
7
such date as is determined appropriate by
8
the Secretary, or
9
‘‘(ii) in any other case, the due date
10
(including extensions of time) for the re-
11
turn of tax for the taxable year for which
12
the election is made, but in no event earlier
13
than 180 days after the date of the enact-
14
ment of this section.
15
‘‘(B) ADDITIONAL
RULES.—Any election
16
under subsection (a), once made, shall be irrev-
17
ocable and shall apply (except as otherwise pro-
18
vided in this paragraph) with respect to any
19
credit for the taxable year for which the election
20
is made.’’.
21
(18) Section 6418(f)(1) of such Code is amend-
22
ed—
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(A) in subparagraph (A), by striking
1
clauses (ii)–(vii) and (ix)–(xi) and by redesig-
2
nating clause (viii) as clause (ii),
3
(B) by striking subparagraph (B), and
4
(C) by redesignating subparagraph (C) as
5
subparagraph (B).
6
(d) EFFECTIVE DATE.—The amendments made by
7
this subsection shall apply to taxable years beginning after
8
December 31, 2022.
9
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