[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7849 Introduced in House (IH)]
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117th CONGRESS
2d Session
H. R. 7849
To amend the Internal Revenue Code of 1986 to allow a credit against
tax for the purchase of certain adaptive gear required to prevent the
entanglement of right whales.
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IN THE HOUSE OF REPRESENTATIVES
May 19, 2022
Mr. Moulton (for himself and Mr. Keating) 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 allow a credit against
tax for the purchase of certain adaptive gear required to prevent the
entanglement of right whales.
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 ``Conserving Lobstering And Whales Act
of 2022'' or the ``CLAW Act of 2022''.
SEC. 2. ADAPTIVE GEAR REQUIRED TO PREVENT RIGHT WHALE ENTANGLEMENT.
(a) Allowance of Credit.--
(1) In general.--Subpart D of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 is amended by
adding at the end the following new section:
``SEC. 45U. ADAPTIVE GEAR REQUIRED TO PREVENT RIGHT WHALE ENTANGLEMENT.
``(a) In General.--For purposes of section 38, in the case of an
eligible lobstering business, the right whale entanglement prevention
credit determined under this section for any taxable year is an amount
equal to 30 percent of the amounts paid or incurred by the taxpayer for
the taxable year for the purchase of any adaptive gear required by
State or Federal law or regulation to prevent the entanglement of right
whales in the course of the trade or business of lobstering.
``(b) Eligible Lobstering Business.--
``(1) In general.--For purposes of this section, the term
`eligible lobstering business' means any person--
``(A) engaged in the trade or business of
lobstering, and
``(B) that submits a return of tax with respect to
such taxable year that includes each of the following,
as applicable, but in any case not less than 1 of--
``(i) a State commercial lobster license
for such person, and
``(ii) a Federal vessel identification
number for each vessel used by such person in
the course of the trade or business of
lobstering.
``(2) Controlled groups.--All persons which are treated as
a single employer under subsections (a) and (b) of section 52
shall be treated as a single taxpayer for purposes of this
subsection.
``(c) Adaptive Gear.--For purposes of this section, the term
`adaptive gear' means--
``(1) gear required by the National Oceanic and Atmospheric
Administration as part of the Atlantic Large Whale Take
Reduction Plan, and
``(2) equipment used for electronic vessel tracking
required by the Atlantic States Marine Fisheries Commission for
North Atlantic right whale risk reduction.''.
(2) Credit made part of general business credit.--Section
38(b) of such Code is amended by striking ``plus'' at the end
of paragraph (32), by striking the period at the end of
paragraph (33) and inserting ``, plus'', and by adding at the
end the following new paragraph:
``(34) in the case of an eligible lobstering business, the
right whale entanglement prevention credit determined under
45U(a).''.
(3) Clerical amendment.--The table of sections for subpart
D of part IV of subchapter A of chapter 1 of such Code is
amended by adding at the end the following new item:
``Sec. 45U. Adaptive gear required to prevent right whale
entanglement.''.
(b) Direct Pay Option.--
(1) 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 OF RIGHT WHALE ENTANGLEMENT PREVENTION
CREDIT.
``(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 the right whale entanglement
prevention credit determined under section 45U(a), such taxpayer shall
be treated as making a payment against the tax imposed by subtitle A
for the taxable year equal to such amount.
``(b) Timing.--The payment described in subsection (a) shall be
treated as made on the later of the due date of the return of tax
(determined without extensions) for such taxable year or the date on
which such return is filed.
``(c) Exclusion From Gross Income.--Gross income of the taxpayer
shall be determined without regard to this section.
``(d) Denial of Double Benefit.--Solely for purposes of section 38,
in the case of a taxpayer making an election under this section, the
right whale entanglement prevention credit determined under section
45U(a) shall be reduced by the amount of the portion of such credit
with respect to which the taxpayer makes such election.''.
(2) 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 of right whale entanglement prevention
credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
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