II 

116TH CONGRESS 

2D SESSION S. 4966 

To amend the Internal Revenue Code of 1986 to provide for a 5-year 

extension of the carbon oxide sequestration credit, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 7, 2020 

Mrs. CAPITO (for herself, Mr. WHITEHOUSE, Mr. BARRASSO, Mr. CRAMER, 

Mr. HOEVEN, Ms. SMITH, and Mr. MANCHIN) 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 

for a 5-year extension of the carbon oxide sequestration 

credit, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘45Q Carbon Capture, 

5 Utilization, and Storage Tax Credit Amendments Act of 

6 2020’’. 


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1 SEC. 2. EXTENSION OF CREDIT FOR CARBON OXIDE SE2 QUESTRATION. 

3 Section 45Q(d)(1) of the Internal Revenue Code of 

4 1986 is amended by striking ‘‘January 1, 2024’’ and in5 serting ‘‘January 1, 2029’’. 

6 SEC. 3. ELECTIVE PAYMENT FOR CARBON OXIDE SEQUES7 TRATION AND QUALIFYING ADVANCED COAL 

8 PROJECTS. 

9 (a) IN GENERAL.—Subchapter B of chapter 65 of the 

10 Internal Revenue Code of 1986 is amended by adding at 

11 the end the following new section: 

12 ‘‘SEC. 6431. ELECTIVE PAYMENT FOR CARBON OXIDE SE13 QUESTRATION AND QUALIFYING ADVANCED 

14 COAL PROJECTS. 

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— 

19 ‘‘(1) a carbon oxide sequestration credit which 

20 would (without regard to this section) be determined 

21 under section 45Q with respect to such taxpayer, or 

22 ‘‘(2) a qualifying advanced coal project credit 

23 which would (without regard to this section) be de24 termined under section 48A with respect to such 

25 taxpayer, 


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1 such taxpayer shall be treated as making a payment 

2 against the tax imposed by subtitle A for the taxable year 

3 equal to the amount of such portion. 

4 ‘‘(b) TIMING.—The payment described in subsection 

5 (a) shall be treated as made on the later of the due date 

6 of the return of tax for such taxable year or the date on 

7 which such return is filed. 

8 ‘‘(c) EXCLUSION FROM GROSS INCOME.—Gross in9 come of the taxpayer shall be determined without regard 

10 to this section. 

11 ‘‘(d) DENIAL OF DOUBLE BENEFIT.—Solely for pur12 poses of section 38, in the case of a taxpayer making an 

13 election under this section, the carbon oxide sequestration 

14 credit determined under section 45Q or the qualifying ad15 vanced coal project credit determined under section 48A 

16 shall be reduced by the amount of the portion of such 

17 credit with respect to which the taxpayer makes such elec18 tion. 

19 ‘‘(e) SPECIAL RULES.—In the case of a taxpayer 

20 making an election under this section with respect to the 

21 qualifying advanced coal project credit determined under 

22 section 48A, the credit subject to such an election shall 

23 be determined notwithstanding— 

24 ‘‘(1) section 50(b)(3), and 


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1 ‘‘(2) in the case of any entity described in sec2 tion 50(b)(4)(A)(i), section 50(b)(4).’’. 

3 (b) SPECIAL RULE FOR PROCEEDS OF TRANSFERS

4 FOR MUTUAL OR COOPERATIVE ELECTRIC COMPANIES.— 

5 Section 501(c)(12)(I) of the Internal Revenue Code of 

6 1986 is amended by inserting ‘‘or 6431(a)’’ after ‘‘section 

7 45J(e)(1)’’. 

8 (c) CLERICAL AMENDMENT.—The table of sections 

9 for subchapter B of chapter 65 of such Code is amended 

10 by adding at the end the following new item: 

‘‘Sec. 6431. Elective payment for carbon oxide sequestration and qualifying advanced coal projects.’’. 

11 (d) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to property originally placed in 

13 service after the date of the enactment of this Act. 

14 SEC. 4. ALLOWANCE OF CERTAIN CARBON SEQUESTRATION 

15 CREDITS AGAINST THE BASE EROSION MIN16 IMUM TAX. 

17 (a) IN GENERAL.—Section 59A(b)(1)(B)(ii) of the 

18 Internal Revenue Code of 1986 is amended by striking 

19 ‘‘plus’’ and the end of subclause (I), by redesignating sub20 clause (II) as subclause (IV), and by inserting after sub21 clause (I) the following new subclauses: 

22 ‘‘(II) the credit allowed under 

23 section 38 for the taxable year which 

24 is properly allocable to the carbon diVerDate Sep 11 2014 03:07 Dec 12, 2020 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S4966.IS S4966

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1 oxide sequestration credit determined 

2 under section 45Q(a), 

3 ‘‘(III) the credit allowed under 

4 section 38 for the taxable year which 

5 is properly allocable to the investment 

6 credit determined under section 46, 

7 but only to the extent properly allo8 cable to the qualifying advanced coal 

9 project credit determined under sec10 tion 48A, plus’’. 

11 (b) APPLICATION TO TAXABLE YEARS BEGINNING

12 AFTER 2025.—Subparagraph (B) of section 59A(b)(2) of 

13 the Internal Revenue Code of 1986 is amended to read 

14 as follows: 

15 ‘‘(B) by applying subparagraph (B)(ii) 

16 thereof without regard to subclauses (I) and 

17 (IV).’’. 

18 (c) EFFECTIVE DATE.—The amendments made by 

19 this section shall apply to base erosion payments (as de20 fined in section 59A(d) of the Internal Revenue Code of 

21 1986) paid or incurred in taxable years beginning after 

22 December 31, 2017. 

Æ 


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