[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 985 Introduced in Senate (IS)]
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117th CONGRESS
1st Session
S. 985
To amend the Internal Revenue Code of 1986 to provide direct payments
of the renewable electricity production credit, the energy credit, and
the carbon oxide sequestration credit.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 25, 2021
Mr. Carper (for himself, Mr. Whitehouse, and Mr. Heinrich) 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 provide direct payments
of the renewable electricity production credit, the energy credit, and
the carbon oxide sequestration credit.
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 ``Save America's Clean Energy Jobs
Act''.
SEC. 2. DIRECT PAYMENT OF RENEWABLE ELECTRICITY PRODUCTION CREDIT AND
ENERGY CREDIT.
(a) Renewable Electricity Production Credit.--
(1) In general.--Section 45(e) of the Internal Revenue Code
of 1986 is amended by adding at the end the following new
paragraph:
``(12) Election for direct payment.--
``(A) In general.--In the case of any applicable
facility, the amount of any credit determined under
subsection (a) with respect to such facility for any
taxable year during the period described in paragraph
(2)(A)(ii) of such subsection shall, at the election of
the taxpayer, be treated as a payment equal to such
amount which is made by the taxpayer against the tax
imposed by chapter 1 for such taxable year.
``(B) Applicable facility.--For purposes of this
paragraph, the term `applicable facility' means a
qualified facility--
``(i) the construction of which began
before January 1, 2023, and
``(ii) which is originally placed in
service after March 25, 2021.
``(C) Form and effect of election.--
``(i) In general.--An election under
subparagraph (A) shall be made in such manner
as the Secretary may prescribe and not later
than the due date (including extensions) for
the return of tax for the taxable year in which
the qualified facility is originally placed in
service. Such election, once made, shall be
irrevocable with respect to such qualified
facility for the period described in subsection
(a)(2)(A)(ii).
``(ii) Effect.--Any election under
subparagraph (A) shall, for any taxable year
during the period described in subsection
(a)(2)(A)(ii), reduce the amount of the credit
which would (but for this paragraph) be
allowable under this section with respect to
such qualified facility for such taxable year
to zero.
``(D) Application to partnerships and s
corporations.--In the case of a partnership or S
corporation which makes an election under subparagraph
(A)--
``(i) such subparagraph shall apply with
respect to such partnership or corporation
without regard to the fact that no tax is
imposed by chapter 1 on such partnership or
corporation, and
``(ii)(I) in the case of a partnership,
each partner's distributive share of the credit
determined under subsection (a) with respect to
the qualified facility shall be deemed to be
zero, and
``(II) in the case of a S corporation, each
shareholder's pro rata share of the credit
determined under subsection (a) with respect to
the qualified facility shall be deemed to be
zero.''.
(2) Effective date.--The amendment made by this subsection
shall apply to facilities placed in service after March 25,
2021.
(b) Energy Credit.--
(1) In general.--Section 48 of the Internal Revenue Code of
1986 is amended by adding at the end the following new
subsection:
``(e) Election for Direct Payment.--
``(1) In general.--In the case of any applicable property
placed in service during any taxable year, the amount of any
credit determined under subsection (a) with respect to such
property for such taxable year shall, at the election of the
taxpayer, be treated as a payment equal to such amount which is
made by the taxpayer against the tax imposed by chapter 1 for
such taxable year (regardless of whether such tax would have
been on such taxpayer).
``(2) Applicable property.--For purposes of this
subsection, the term `applicable property' means any energy
property (including any qualified property which is treated as
energy property pursuant to subsection (a)(5))--
``(A) the construction of which began before
January 1, 2023, and
``(B) which is originally placed in service after
March 25, 2021.
Such term shall not include any property if a credit for
qualified progress expenditures has been allowed with respect
to such property before the date of any election under
paragraph (1).
``(3) Form and effect of election.--
``(A) In general.--An election under paragraph (1)
shall be made in such manner as the Secretary may
prescribe and not later than the due date (including
extensions) for the return of tax for the taxable year
in which the applicable property is originally placed
in service. Such election, once made, shall be
irrevocable with respect to the applicable property.
``(B) Effect.--Any election under paragraph (1)
shall reduce the amount of the credit which would (but
for this subsection) be allowable under this section
with respect to such applicable property for the
taxable year in which such property is placed in
service to zero.
The reduction in credit under subparagraph (B) shall
not be taken into account for purposes of applying
section 50(a) with respect to such property.
``(4) Application to partnerships and s corporations.--
Rules similar to the rules of section 45(e)(12)(D) shall apply
for purposes of this subsection.
``(5) Regulations and guidance.--The Secretary shall
prescribe such regulations and guidance as may be necessary to
carry out this subsection, including regulations or guidance to
relating to reporting on the use of applicable property for
purposes of administering the recapture under section 50(a) of
any refund made by reason of this section.''.
(2) Effective date.--The amendment made by this subsection
shall apply to property placed in service after March 25, 2021.
(c) Carbon Oxide Sequestration Credit.--
(1) In general.--Section 45Q(f) of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
paragraph:
``(8) Election for direct payment.--
``(A) In general.--In the case of any applicable
equipment, the amount of any credit determined under
subsection (a) with respect to any qualified carbon
oxide captured by such equipment for any taxable year
during the applicable period shall, at the election of
the taxpayer, be treated as a payment equal to such
amount which is made by the taxpayer against the tax
imposed by chapter 1 for such taxable year.
``(B) Applicable equipment.--For purposes of this
paragraph, the term `applicable equipment' means carbon
capture equipment--
``(i) which is originally placed in service
after March 25, 2021, at a qualified facility
the construction of which began before January
1, 2023, and
``(ii)(I) the construction of which began
before January 1, 2023, or
``(II) which was placed in service at a
qualified facility the original planning and
design of which included such equipment.
``(C) Applicable period.--For purposes of this
paragraph, the term `applicable period' means the 12-
year period beginning on the date that the applicable
equipment was originally placed in service.
``(D) Form and effect of election.--
``(i) In general.--An election under
subparagraph (A) shall be made in such manner
as the Secretary may prescribe and not later
than the due date (including extensions) for
the return of tax for the taxable year in which
the applicable equipment is originally placed
in service. Such election, once made, shall be
irrevocable with respect to such applicable
equipment for the applicable period.
``(ii) Effect.--Any election under
subparagraph (A) shall, for any taxable year
during the applicable period, reduce the amount
of the credit which would (but for this
paragraph) be allowable under this section with
respect to such applicable equipment for such
taxable year to zero.
``(E) Application to partnerships and s
corporations.--In the case of a partnership or S
corporation which makes an election under subparagraph
(A)--
``(i) such subparagraph shall apply with
respect to such partnership or corporation
without regard to the fact that no tax is
imposed by chapter 1 on such partnership or
corporation, and
``(ii)(I) in the case of a partnership,
each partner's distributive share of the credit
determined under subsection (a) with respect to
the qualified carbon oxide captured using such
applicable equipment shall be deemed to be
zero, and
``(II) in the case of a S corporation, each
shareholder's pro rata share of the credit
determined under subsection (a) with respect to
the qualified carbon oxide captured using such
applicable equipment shall be deemed to be
zero.''.
(2) Effective date.--The amendment made by this subsection
shall apply to property placed in service after March 25, 2021.
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