[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1062 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 1062
To amend the Internal Revenue Code of 1986 to extend and allow an
elective payment of the tax credit for carbon oxide sequestration.
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IN THE HOUSE OF REPRESENTATIVES
February 15, 2021
Mr. McKinley (for himself and Mr. Veasey) introduced the following
bill; which was referred to the Committee on Ways and Means
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A BILL
To amend the Internal Revenue Code of 1986 to extend and allow an
elective payment of the tax credit for carbon oxide sequestration.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Accelerating Carbon Capture and
Extending Secure Storage through 45Q Act'' or as the ``ACCESS 45Q
Act''.
SEC. 2. EXTENSION OF CREDIT FOR CARBON OXIDE SEQUESTRATION.
Section 45Q(d)(1) of the Internal Revenue Code of 1986 is amended
by striking ``January 1, 2026'' and inserting ``January 1, 2036''.
SEC. 3. ELECTIVE PAYMENT FOR CARBON OXIDE SEQUESTRATION.
(a) In General.--Subchapter B of chapter 65 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new section:
``SEC. 6431. ELECTIVE PAYMENT FOR CARBON OXIDE SEQUESTRATION.
``(a) In General.--In the case of a taxpayer making an election (at
such time and in such manner as the Secretary may provide) under this
section with respect to any portion of a carbon oxide sequestration
credit which would (without regard to this section) be determined under
section 45Q with respect to such taxpayer, such taxpayer shall be
treated as making a payment against the tax imposed by subtitle A for
the taxable year equal to the amount of such portion.
``(b) Limitation.--The portion of a carbon oxide sequestration
credit with respect to which a taxpayer may make an election under this
section shall not exceed the portion of such credit which is
attributable to property originally placed in service after the date of
the enactment of this section.
``(c) Timing.--The payment described in subsection (a) shall be
treated as made on the later of the due date of the return of tax for
such taxable year or the date on which such return is filed.
``(d) Exclusion From Gross Income.--Gross income of the taxpayer
shall be determined without regard to this section.
``(e) Denial of Double Benefit.--Solely for purposes of section 38,
in the case of a taxpayer making an election under this section, the
carbon oxide sequestration credit determined under section 45Q shall be
reduced by the amount of the portion of such credit with respect to
which the taxpayer makes such election.
``(f) Special Rules.--
``(1) In the case of a taxpayer making an election under
this subsection, the credit subject to such an election shall
be determined notwithstanding--
``(A) section 50(b)(3); and
``(B) section 50(b)(4) for an entity described in
50(b)(4)(A)(i).
``(2) In the case of a mutual or cooperative electric
company described in this paragraph or an organization
described in section 1381(a)(2), any income received or accrued
in connection with the credit under this section shall be
treated as an amount collected from members for the sole
purpose of meeting losses and expenses.''.
(b) Clerical Amendment.--The table of sections for subchapter B of
chapter 65 of such Code is amended by adding at the end the following
new item:
``Sec. 6431. Elective payment for carbon oxide sequestration.''.
(c) Effective Date.--The amendments made by this section shall
apply to credits determined for taxable years ending after the date of
the enactment of this Act.
SEC. 4. ALLOWANCE OF THE CARBON OXIDE SEQUESTRATION CREDIT AGAINST THE
BASE EROSION MINIMUM TAX.
(a) In General.--Section 59A(b) of the Internal Revenue Code of
1986 is amended--
(1) by inserting ``and the carbon dioxide sequestration
credit determined under section 45Q'' after ``section 41(a)''
in paragraph (1)(B)(ii)(I), and
(2) by inserting ``(other than the credit allowed under
section 38 for the taxable year which is properly allocable to
the credit for carbon oxide sequestration determined under
section 45Q)'' after ``credits allowed under this chapter''.
(b) Effective Date.--The amendments made by this section shall take
effect as if included in section 41119 of the Bipartisan Budget Act of
2018.
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