ACCESS 45Q Act

I 116TH CONGRESS 2D SESSION H. R. 8858 To amend the Internal Revenue Code of 1986 to extend and allow an elective payment of the tax credit for carbon oxide sequestration. IN THE HOUSE OF REPRESENTATIVES DECEMBER 3, 2020 Mr. MCKINLEY (for himself, Mr. VEASEY, Mr. ARMSTRONG, Mrs. BUSTOS, Mr. MOONEY of West Virginia, Mr. MICHAEL F. DOYLE of Pennsylvania, Mrs. FLETCHER, and Mr. BERGMAN) 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 extend and allow an elective payment of the tax credit for car- bon 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. SHORT TITLE. 3 This Act may be cited as the ‘‘Accelerating Carbon 4 Capture and Extending Secure Storage through 45Q Act’’ 5 or as the ‘‘ACCESS 45Q Act’’. 6 VerDate Sep 11 2014 01:31 Dec 15, 2020 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H8858.IH H8858 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 8858 IH SEC. 2. EXTENSION OF CREDIT FOR CARBON OXIDE SE- 1 QUESTRATION. 2 (a) IN GENERAL.—Section 45Q(d)(1) of the Internal 3 Revenue Code of 1986 is amended by striking ‘‘January 4 1, 2024’’ and inserting ‘‘January 1, 2034’’. 5 (b) EFFECTIVE DATE.—The amendment made by 6 this section applies to facilities the construction of which 7 begins after December 31, 2023. 8 SEC. 3. ELECTIVE PAYMENT FOR CARBON OXIDE SEQUES- 9 TRATION. 10 (a) IN GENERAL.—Subchapter B of chapter 65 of the 11 Internal Revenue Code of 1986 is amended by adding at 12 the end the following new section: 13 ‘‘SEC. 6431. ELECTIVE PAYMENT FOR CARBON OXIDE SE- 14 QUESTRATION. 15 ‘‘(a) ENERGY PROPERTY.—In the case of a taxpayer 16 making an election (at such time and in such manner as 17 the Secretary may provide) under this section with respect 18 to any portion of a carbon oxide sequestration credit which 19 would (without regard to this section) be determined 20 under section 45Q with respect to such taxpayer, such tax- 21 payer shall be treated as making a payment against the 22 tax imposed by subtitle A for the taxable year equal to 23 the amount of such portion. 24 ‘‘(b) TIMING.—The payment described in subsection 25 (a) shall be treated as made on the later of the due date 26 VerDate Sep 11 2014 01:31 Dec 15, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H8858.IH H8858 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 8858 IH of the return of tax for such taxable year or the date on 1 which such return is filed. 2 ‘‘(c) EXCLUSION FROM GROSS INCOME.—Gross in- 3 come of the taxpayer shall be determined without regard 4 to this section. 5 ‘‘(d) DENIAL OF DOUBLE BENEFIT.—Solely for pur- 6 poses of section 38, in the case of a taxpayer making an 7 election under this section, the carbon oxide sequestration 8 credit determined under section 45Q shall be reduced by 9 the amount of the portion of such credit with respect to 10 which the taxpayer makes such election. 11 ‘‘(e) SPECIAL RULES.— 12 ‘‘(1) In the case of a taxpayer making an elec- 13 tion under this subsection, the credit subject to such 14 an election shall be determined notwithstanding— 15 ‘‘(A) section 50(b)(3); and 16 ‘‘(B) section 50(b)(4) for an entity de- 17 scribed in 50(b)(4)(A)(i). 18 ‘‘(2) In the case of a mutual or cooperative 19 electric company described in this paragraph or an 20 organization described in section 1381(a)(2), any in- 21 come received or accrued in connection with the 22 credit under this section shall be treated as an 23 amount collected from members for the sole purpose 24 of meeting losses and expenses.’’. 25 VerDate Sep 11 2014 01:31 Dec 15, 2020 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H8858.IH H8858 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 8858 IH (b) CLERICAL AMENDMENT.—The table of sections 1 for subchapter B of chapter 65 of such Code is amended 2 by adding at the end the following new item: 3 ‘‘Sec. 6431. Elective payment for carbon oxide sequestration.’’. (c) EFFECTIVE DATE.—The amendments made by 4 this section shall apply to property originally placed in 5 service after the date of the enactment of this Act. 6 Æ VerDate Sep 11 2014 01:31 Dec 15, 2020 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H8858.IH H8858 pamtmann on DSKBC07HB2PROD with BILLS