I 116TH CONGRESS 2D SESSION H. R. 5883 To amend the Internal Revenue Code of 1986 to provide for an increased credit for carbon oxide sequestration for direct air capture facilities, and for other purposes. IN THE HOUSE OF REPRESENTATIVES FEBRUARY 12, 2020 Mr. SCHWEIKERT (for himself and Mr. WENSTRUP) 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 provide for an increased credit for carbon oxide sequestration for direct air capture facilities, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. INCREASE IN CREDIT FOR CARBON OXIDE SE- 3 QUESTRATION FOR DIRECT AIR CAPTURE FA- 4 CILITIES. 5 (a) INCREASE IN APPLICABLE DOLLAR AMOUNT FOR 6 DIRECT AIR CAPTURE FACILITIES.—Section 7 45Q(b)(1)(A) of the Internal Revenue Code of 1986 is 8 amended— 9 VerDate Sep 11 2014 00:31 Feb 20, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H5883.IH H5883 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 5883 IH (1) in clause (i)(I) and (ii)(I), by inserting 1 ‘‘($62.50 in the case of a direct air capture facility)’’ 2 after ‘‘$50’’, and 3 (2) in clause (i)(II) and (ii)(II), by inserting 4 ‘‘($43.75 in the case of a direct air capture facility)’’ 5 after ‘‘$35’’. 6 (b) REPEAL OF PLACED-IN-SERVICE DEADLINE; DE- 7 CREASE IN CAPTURE REQUIREMENTS FOR DIRECT AIR 8 CAPTURE FACILITIES.—Section 45Q(d) of the Internal 9 Revenue Code of 1986 is amended to read as follows: 10 ‘‘(d) QUALIFIED FACILITY.—For purposes of this 11 section, the term ‘qualified facility’ means any industrial 12 facility or direct air capture facility which captures— 13 ‘‘(1) in the case of a facility which emits not 14 more than 500,000 metric tons of carbon oxide into 15 the atmosphere during the taxable year, not less 16 than 25,000 metric tons of qualified carbon oxide 17 during the taxable year which is utilized in a manner 18 described in subsection (f)(5), 19 ‘‘(2) in the case of an electricity generating fa- 20 cility which is not described in subparagraph (A), 21 not less than 500,000 metric tons of qualified car- 22 bon oxide during the taxable year, or 23 ‘‘(3) in the case of a direct air capture facility 24 or any facility not described in subparagraph (A) or 25 VerDate Sep 11 2014 03:55 Feb 20, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5883.IH H5883 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 5883 IH (B), not less than 50,000 metric tons of qualified 1 carbon oxide during the taxable year.’’. 2 (c) EFFECTIVE DATE.—The amendments made by 3 this section shall apply to taxable years beginning after 4 December 31, 2020. 5 Æ VerDate Sep 11 2014 00:31 Feb 20, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H5883.IH H5883 kjohnson on DSK79L0C42PROD with BILLS