[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 1266 Introduced in Senate (IS)]
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117th CONGRESS
1st Session
S. 1266
To amend the Internal Revenue Code of 1986 to expand the renewable
electricity production credit to include electricity produced from
hydrogen.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 21, 2021
Mr. Young (for himself and Mr. Whitehouse) introduced the following
bill; which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to expand the renewable
electricity production credit to include electricity produced from
hydrogen.
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 ``Hydrogen Utilization and
Sustainability Act''.
SEC. 2. EXPANSION OF RENEWABLE ELECTRICITY PRODUCTION CREDIT TO INCLUDE
ELECTRICITY PRODUCED FROM HYDROGEN.
(a) In General.--Section 45 of the Internal Revenue Code of 1986 is
amended--
(1) in subsection (c)--
(A) in paragraph (1)--
(i) in subparagraph (H), by striking
``and'' at the end;
(ii) in subparagraph (I), by striking the
period at the end and inserting ``, and''; and
(iii) by adding at the end the following
new subparagraph:
``(J) qualified hydrogen.''; and
(B) by adding at the end the following new
paragraph:
``(11) Qualified hydrogen.--The term `qualified hydrogen'
means, with respect to any taxable year, hydrogen fuel which
has been certified prior to such year by the Secretary of
Energy (in consultation with the Secretary) as having a carbon
intensity of not greater than 75 grams of CO<INF>2</INF>e per
kilowatt hour of electricity produced, as determined based on a
lifecycle analysis.''; and
(2) in subsection (d), by adding at the end the following
new paragraph:
``(12) Hydrogen facility.--
``(A) In general.--In the case of a facility using
qualified hydrogen to produce electricity, the term
`qualified facility' means any facility owned by the
taxpayer--
``(i) for which not less than 70 percent of
the electricity produced at such facility
during any taxable year is attributable to the
use of qualified hydrogen, and
``(ii)(I) the construction of which begins
before January 1, 2024, or
``(II) which--
``(aa) was originally placed in
service before the date of enactment of
this paragraph and, prior to the
modification described in item (bb),
did not use hydrogen to produce
electricity, and
``(bb) before January 1, 2024, is
modified to use qualified hydrogen to
produce electricity.
``(B) Modification.--For purposes of subparagraph
(A)(ii)(II)(bb), a facility shall be treated as
modified before January 1, 2024, if the construction of
such modification begins before such date.
``(C) Election.--If the owner of the facility
described in subparagraph (A) makes an election under
this subparagraph in such time and manner as the
Secretary may prescribe by regulations, the credit
under this section--
``(i) shall be allowable to the person that
leases and operates such facility, and
``(ii) shall not be allowable to the owner
of such facility.
``(D) Special rules.--
``(i) Exclusion of electricity not produced
from qualified hydrogen.--For purposes of
subsection (a)(2), the total amount of kilowatt
hours of electricity produced by the taxpayer
at a qualified facility described in
subparagraph (A) for any taxable year shall be
equal to the product of--
``(I) the total amount of kilowatt
hours of electricity produced by the
taxpayer at such facility for such
taxable year, multiplied by
``(II) an amount equal to the
quotient of--
``(aa) the amount of
qualified hydrogen used at such
facility to produce such
electricity (as determined on
the basis of Btu content),
divided by
``(bb) the total amount of
fuel used at such facility to
produce such electricity (as
determined on the basis of Btu
content).
``(ii) Adjustment for negative carbon
intensity.--
``(I) In general.--For purposes of
subsection (a)(2), the total amount of
kilowatt hours of electricity produced
by the taxpayer at a qualified facility
described in subparagraph (A) for any
taxable year (as determined after
application of clause (i)) shall be
increased by an amount equal to the
applicable percentage of such total
amount.
``(II) Applicable percentage.--For
purposes of subclause (I), the
applicable percentage for a qualified
facility for any taxable year is the
amount (expressed as a percentage)
equal to the product of--
``(aa) 1 percentage point,
multiplied by
``(bb) an amount equal to
the quotient of--
``(AA) the total
amount of carbon
dioxide (expressed in
metric tons) which is
removed from the
atmosphere during such
taxable year through
the use of qualified
hydrogen (as determined
pursuant to a
certification of
negative carbon
intensity for such
hydrogen under
subsection (c)(11)) at
such qualified
facility, divided by
``(BB) 1,000.''.
(b) Effective Date.--The amendments made by this section shall take
effect on the date of enactment of this Act.
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