RECOUPS Act of 2020

I 116TH CONGRESS 2D SESSION H. R. 7896 To amend the Internal Revenue Code of 1986 to allow the carbon capture credit to enhance the efficiency and effectiveness of the carbon oxide sequestration tax credit. IN THE HOUSE OF REPRESENTATIVES JULY 31, 2020 Mr. BERGMAN (for himself and Mrs. FLETCHER) 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 allow the carbon capture credit to enhance the efficiency and effec- tiveness of the carbon oxide sequestration tax 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 ‘‘Redeeming Effective- 4 ness to Carbon Oxide Utilization Plus Sequestration Act 5 of 2020’’ or ‘‘RECOUPS Act of 2020’’. 6 VerDate Sep 11 2014 02:34 Aug 22, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H7896.IH H7896 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 7896 IH SEC. 2. ENHANCED EFFICIENCY ELECTION FOR CARBON 1 OXIDE SEQUESTRATION CREDIT. 2 (a) IN GENERAL.—Section 45Q(f) of the Internal 3 Revenue Code of 1986 is amended by adding at the end 4 the following new paragraph: 5 ‘‘(8) EFFICIENCY ELECTION.— 6 ‘‘(A) IN GENERAL.—In the case of any 7 carbon capture equipment placed in service on 8 or after the date of the enactment of the Bipar- 9 tisan Budget Act of 2018, a taxpayer that 10 claims a carbon oxide sequestration credit for 11 any taxable year may elect to treat the credit 12 as a payment in excess of the tax imposed, or 13 the estimated tax payment required, by subtitle 14 A to the extent such credit exceeds the tax li- 15 ability of such taxpayer in such taxable year. 16 ‘‘(B) LIMITATION.—If the taxpayer de- 17 scribed in subparagraph (A) makes an election 18 under this paragraph (in such time and manner 19 as the Secretary may prescribe by regulations), 20 the dollar amounts applicable under paragraph 21 (3) or (4) of subsection (a) shall be 90 percent 22 of the applicable dollar amount determined 23 under paragraph (1) of subsection (b).’’. 24 VerDate Sep 11 2014 02:34 Aug 22, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H7896.IH H7896 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 7896 IH (b) EFFECTIVE DATE.—The amendment made by 1 this section shall apply to taxable years beginning after 2 December 31, 2019. 3 Æ VerDate Sep 11 2014 02:34 Aug 22, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H7896.IH H7896 kjohnson on DSK79L0C42PROD with BILLS