II 

115TH CONGRESS 

1ST SESSION S. 2256 

To amend the Internal Revenue Code of 1986 to extend expiring provisions, 

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 20, 2017 

Mr. HATCH (for himself, Mr. GRASSLEY, Mr. CRAPO, Mr. ROBERTS, Mr. 

THUNE, and Mr. ISAKSON) 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 extend 

expiring provisions, 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, ETC. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Tax Extender Act of 2017’’. 

6 (b) AMENDMENT OF 1986 CODE.—Except as other7 wise expressly provided, whenever in this Act an amend8 ment or repeal is expressed in terms of an amendment 

9 to, or repeal of, a section or other provision, the reference 


SSpencer on DSKBBXCHB2PROD with BILLS
2 

•S 2256 IS

1 shall be considered to be made to a section or other provi2 sion of the Internal Revenue Code of 1986. 

3 TITLE I—TAX RELIEF FOR 

4 FAMILIES AND INDIVIDUALS 

5 SEC. 101. EXTENSION OF EXCLUSION FROM GROSS INCOME 

6 OF DISCHARGE OF QUALIFIED PRINCIPAL 

7 RESIDENCE INDEBTEDNESS. 

8 (a) IN GENERAL.—Section 108(a)(1)(E) is amended 

9 by striking ‘‘January 1, 2017’’ each place it appears and 

10 inserting ‘‘January 1, 2019’’. 

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

12 this section shall apply to discharges of indebtedness after 

13 December 31, 2016. 

14 SEC. 102. EXTENSION OF MORTGAGE INSURANCE PRE15 MIUMS TREATED AS QUALIFIED RESIDENCE 

16 INTEREST. 

17 (a) IN GENERAL.—Subclause (I) of section 

18 163(h)(3)(E)(iv) is amended by striking ‘‘December 31, 

19 2016’’ and inserting ‘‘December 31, 2018’’. 

20 (b) EFFECTIVE DATE.—The amendment made by 

21 this section shall apply to amounts paid or accrued after 

22 December 31, 2016. 


SSpencer on DSKBBXCHB2PROD with BILLS
3 

•S 2256 IS

1 SEC. 103. EXTENSION OF ABOVE-THE-LINE DEDUCTION FOR 

2 QUALIFIED TUITION AND RELATED EX3 PENSES. 

4 (a) IN GENERAL.—Section 222(e) is amended by 

5 striking ‘‘December 31, 2016’’ and inserting ‘‘December 

6 31, 2018’’. 

7 (b) EFFECTIVE DATE.—The amendment made by 

8 this section shall apply to taxable years beginning after 

9 December 31, 2016. 

10 TITLE II—INCENTIVES FOR 

11 GROWTH, JOBS, INVESTMENT, 

12 AND INNOVATION 

13 SEC. 201. EXTENSION OF INDIAN EMPLOYMENT TAX CRED14 IT. 

15 (a) IN GENERAL.—Section 45A(f) is amended by 

16 striking ‘‘December 31, 2016’’ and inserting ‘‘December 

17 31, 2018’’. 

18 (b) EFFECTIVE DATE.—The amendment made by 

19 this section shall apply to taxable years beginning after 

20 December 31, 2016. 

21 SEC. 202. EXTENSION OF RAILROAD TRACK MAINTENANCE 

22 CREDIT. 

23 (a) IN GENERAL.—Section 45G(f) is amended by 

24 striking ‘‘January 1, 2017’’ and inserting ‘‘January 1, 

25 2019’’. 


SSpencer on DSKBBXCHB2PROD with BILLS
4 

•S 2256 IS

1 (b) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to expenditures paid or incurred 

3 in taxable years beginning after December 31, 2016. 

4 SEC. 203. EXTENSION OF MINE RESCUE TEAM TRAINING 

5 CREDIT. 

6 (a) IN GENERAL.—Section 45N(e) is amended by 

7 striking ‘‘December 31, 2016’’ and inserting ‘‘December 

8 31, 2018’’. 

9 (b) EFFECTIVE DATE.—The amendment made by 

10 this section shall apply to taxable years beginning after 

11 December 31, 2016. 

12 SEC. 204. EXTENSION OF QUALIFIED ZONE ACADEMY 

13 BONDS. 

14 (a) IN GENERAL.—Section 54E(c)(1) is amended by 

15 striking ‘‘and 2016’’ and inserting ‘‘2016, and 2017’’. 

16 (b) EFFECTIVE DATE.—The amendment made by 

17 this section shall apply to obligations issued after Decem18 ber 31, 2016. 

19 SEC. 205. EXTENSION OF CLASSIFICATION OF CERTAIN 

20 RACE HORSES AS 3-YEAR PROPERTY. 

21 (a) IN GENERAL.—Section 168(e)(3)(A)(i) is amend22 ed— 

23 (1) by striking ‘‘January 1, 2017’’ in subclause 

24 (I) and inserting ‘‘January 1, 2019’’, and 


SSpencer on DSKBBXCHB2PROD with BILLS
5 

•S 2256 IS

1 (2) by striking ‘‘December 31, 2016’’ in sub2 clause (II) and inserting ‘‘December 31, 2018’’. 

3 (b) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to property placed in service after 

5 December 31, 2016. 

6 SEC. 206. EXTENSION OF 7-YEAR RECOVERY PERIOD FOR 

7 MOTORSPORTS ENTERTAINMENT COM8 PLEXES. 

9 (a) IN GENERAL.—Section 168(i)(15)(D) is amended 

10 by striking ‘‘December 31, 2016’’ and inserting ‘‘Decem11 ber 31, 2018’’. 

12 (b) EFFECTIVE DATE.—The amendment made by 

13 this section shall apply to property placed in service after 

14 December 31, 2016. 

15 SEC. 207. EXTENSION OF ACCELERATED DEPRECIATION 

16 FOR BUSINESS PROPERTY ON AN INDIAN 

17 RESERVATION. 

18 (a) IN GENERAL.—Section 168(j)(9) is amended by 

19 striking ‘‘December 31, 2016’’ and inserting ‘‘December 

20 31, 2018’’. 

21 (b) EFFECTIVE DATE.—The amendment made by 

22 this section shall apply to property placed in service after 

23 December 31, 2016. 


SSpencer on DSKBBXCHB2PROD with BILLS
6 

•S 2256 IS

1 SEC. 208. EXTENSION OF ELECTION TO EXPENSE MINE 

2 SAFETY EQUIPMENT. 

3 (a) IN GENERAL.—Section 179E(g) is amended by 

4 striking ‘‘December 31, 2016’’ and inserting ‘‘December 

5 31, 2018’’. 

6 (b) EFFECTIVE DATE.—The amendment made by 

7 this section shall apply to property placed in service after 

8 December 31, 2016. 

9 SEC. 209. EXTENSION OF SPECIAL EXPENSING RULES FOR 

10 CERTAIN PRODUCTIONS. 

11 (a) IN GENERAL.—Section 181(g) is amended by 

12 striking ‘‘December 31, 2016’’ and inserting ‘‘December 

13 31, 2017’’. 

14 (b) EFFECTIVE DATE.—The amendment made by 

15 this section shall apply to productions commencing after 

16 December 31, 2016. 

17 SEC. 210. EXTENSION OF DEDUCTION ALLOWABLE WITH 

18 RESPECT TO INCOME ATTRIBUTABLE TO DO19 MESTIC PRODUCTION ACTIVITIES IN PUERTO 

20 RICO. 

21 (a) IN GENERAL.—Section 199(d)(8)(C) is amend22 ed— 

23 (1) by striking ‘‘first 11 taxable years’’ and in24 serting ‘‘first 12 taxable years’’, and 

25 (2) by striking ‘‘January 1, 2017’’ and insert26 ing ‘‘January 1, 2018’’. 


SSpencer on DSKBBXCHB2PROD with BILLS
7 

•S 2256 IS

1 (b) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2016. 

4 SEC. 211. EXTENSION OF SPECIAL RULE RELATING TO 

5 QUALIFIED TIMBER GAIN. 

6 (a) IN GENERAL.—Section 1201(b) is amended by 

7 striking ‘‘2016’’ and inserting ‘‘2016 or 2017’’. 

8 (b) EFFECTIVE DATE.—The amendment made by 

9 this section shall apply to taxable years beginning after 

10 December 31, 2016. 

11 SEC. 212. EXTENSION OF EMPOWERMENT ZONE TAX INCEN12 TIVES. 

13 (a) IN GENERAL.— 

14 (1) EXTENSION.—Section 1391(d)(1)(A)(i) is 

15 amended by striking ‘‘December 31, 2016’’ and in16 serting ‘‘December 31, 2018’’. 

17 (2) TREATMENT OF CERTAIN TERMINATION

18 DATES SPECIFIED IN NOMINATIONS.—In the case of 

19 a designation of an empowerment zone the nomina20 tion for which included a termination date which is 

21 contemporaneous with the date specified in subpara22 graph (A)(i) of section 1391(d)(1) of the Internal 

23 Revenue Code of 1986 (as in effect before the enact24 ment of this Act), subparagraph (B) of such section 

25 shall not apply with respect to such designation if, 


SSpencer on DSKBBXCHB2PROD with BILLS
8 

•S 2256 IS

1 after the date of the enactment of this section, the 

2 entity which made such nomination amends the 

3 nomination to provide for a new termination date in 

4 such manner as the Secretary of the Treasury (or 

5 the Secretary’s designee) may provide. 

6 (b) EFFECTIVE DATE.—The amendment made by 

7 subsection (a)(1) shall apply to taxable years beginning 

8 after December 31, 2016. 

9 SEC. 213. EXTENSION OF TEMPORARY INCREASE IN LIMIT 

10 ON COVER OVER OF RUM EXCISE TAXES TO 

11 PUERTO RICO AND THE VIRGIN ISLANDS. 

12 (a) IN GENERAL.—Section 7652(f)(1) is amended by 

13 striking ‘‘January 1, 2017’’ and inserting ‘‘January 1, 

14 2019’’. 

15 (b) EFFECTIVE DATE.—The amendment made by 

16 this section shall apply to distilled spirits brought into the 

17 United States after December 31, 2016. 

18 SEC. 214. EXTENSION OF AMERICAN SAMOA ECONOMIC DE19 VELOPMENT CREDIT. 

20 (a) IN GENERAL.—Section 119(d) of division A of 

21 the Tax Relief and Health Care Act of 2006 is amended— 

22 (1) by striking ‘‘January 1, 2017’’ each place 

23 it appears and inserting ‘‘January 1, 2018’’, 


SSpencer on DSKBBXCHB2PROD with BILLS
9 

•S 2256 IS

1 (2) by striking ‘‘first 11 taxable years’’ in para2 graph (1) and inserting ‘‘first 12 taxable years’’, 

3 and 

4 (3) by striking ‘‘first 5 taxable years’’ in para5 graph (2) and inserting ‘‘first 6 taxable years’’. 

6 (b) EFFECTIVE DATE.—The amendments made by 

7 this section shall apply to taxable years beginning after 

8 December 31, 2016. 

9 TITLE III—INCENTIVES FOR EN10 ERGY PRODUCTION AND CON11 SERVATION 

12 SEC. 301. EXTENSION OF CREDIT FOR NONBUSINESS EN13 ERGY PROPERTY. 

14 (a) IN GENERAL.—Section 25C(g)(2) is amended by 

15 striking ‘‘December 31, 2016’’ and inserting ‘‘December 

16 31, 2018’’. 

17 (b) EFFECTIVE DATE.—The amendment made by 

18 this section shall apply to property placed in service after 

19 December 31, 2016. 

20 SEC. 302. EXTENSION AND MODIFICATION OF CREDIT FOR 

21 RESIDENTIAL ENERGY PROPERTY. 

22 (a) IN GENERAL.—Section 25D(h) is amended by 

23 striking ‘‘December 31, 2016’’ and all that follows and 

24 inserting ‘‘December 31, 2021.’’. 

25 (b) PHASEOUT.— 


SSpencer on DSKBBXCHB2PROD with BILLS
10 

•S 2256 IS

1 (1) IN GENERAL.—Section 25D(a) is amended 

2 by striking ‘‘the sum of—’’ and all that follows and 

3 inserting ‘‘the sum of the applicable percentages 

4 of— 

5 ‘‘(1) the qualified solar electric property ex6 penditures, 

7 ‘‘(2) the qualified solar water heating property 

8 expenditures, 

9 ‘‘(3) the qualified fuel cell property expendi10 tures, 

11 ‘‘(4) the qualified small wind energy property 

12 expenditures, and 

13 ‘‘(5) the qualified geothermal heat pump prop14 erty expenditures, 

15 made by the taxpayer during such year.’’. 

16 (2) CONFORMING AMENDMENT.—Section 

17 25D(g) is amended by striking ‘‘paragraphs (1) and 

18 (2) of’’. 

19 (c) EFFECTIVE DATE.—The amendment made by 

20 this section shall apply to property placed in service after 

21 December 31, 2016. 


SSpencer on DSKBBXCHB2PROD with BILLS
11 

•S 2256 IS

1 SEC. 303. EXTENSION OF CREDIT FOR NEW QUALIFIED 

2 FUEL CELL MOTOR VEHICLES. 

3 (a) IN GENERAL.—Section 30B(k)(1) is amended by 

4 striking ‘‘December 31, 2016’’ and inserting ‘‘December 

5 31, 2018’’. 

6 (b) EFFECTIVE DATE.—The amendment made by 

7 this section shall apply to property purchased after De8 cember 31, 2016. 

9 SEC. 304. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL 

10 VEHICLE REFUELING PROPERTY. 

11 (a) IN GENERAL.—Section 30C(g) is amended by 

12 striking ‘‘December 31, 2016’’ and inserting ‘‘December 

13 31, 2018’’. 

14 (b) EFFECTIVE DATE.—The amendment made by 

15 this section shall apply to property placed in service after 

16 December 31, 2016. 

17 SEC. 305. EXTENSION OF CREDIT FOR 2-WHEELED PLUG-IN 

18 ELECTRIC VEHICLES. 

19 (a) IN GENERAL.—Section 30D(g)(3)(E)(ii) is 

20 amended by striking ‘‘January 1, 2017’’ and inserting 

21 ‘‘January 1, 2019’’. 

22 (b) EFFECTIVE DATE.—The amendment made by 

23 this section shall apply to vehicles acquired after Decem24 ber 31, 2016. 


SSpencer on DSKBBXCHB2PROD with BILLS
12 

•S 2256 IS

1 SEC. 306. EXTENSION OF SECOND GENERATION BIOFUEL 

2 PRODUCER CREDIT. 

3 (a) IN GENERAL.—Section 40(b)(6)(J)(i) is amended 

4 by striking ‘‘January 1, 2017’’ and inserting ‘‘January 1, 

5 2019’’. 

6 (b) EFFECTIVE DATE.—The amendment made by 

7 this section shall apply to qualified second generation 

8 biofuel production after December 31, 2016. 

9 SEC. 307. EXTENSION OF BIODIESEL AND RENEWABLE DIE10 SEL INCENTIVES. 

11 (a) INCOME TAX CREDIT.— 

12 (1) IN GENERAL.—Subsection (g) of section 

13 40A is amended by striking ‘‘December 31, 2016’’ 

14 and inserting ‘‘December 31, 2018’’. 

15 (2) EFFECTIVE DATE.—The amendment made 

16 by this subsection shall apply to fuel sold or used 

17 after December 31, 2016. 

18 (b) EXCISE TAX INCENTIVES.— 

19 (1) IN GENERAL.—Section 6426(c)(6) is 

20 amended by striking ‘‘December 31, 2016’’ and in21 serting ‘‘December 31, 2018’’. 

22 (2) PAYMENTS.—Section 6427(e)(6)(B) is 

23 amended by striking ‘‘December 31, 2016’’ and in24 serting ‘‘December 31, 2018’’. 


SSpencer on DSKBBXCHB2PROD with BILLS
13 

•S 2256 IS

1 (3) EFFECTIVE DATE.—The amendments made 

2 by this subsection shall apply to fuel sold or used 

3 after December 31, 2016. 

4 (4) SPECIAL RULE FOR 2017.—Notwithstanding 

5 any other provision of law, in the case of any bio6 diesel mixture credit properly determined under sec7 tion 6426(c) of the Internal Revenue Code of 1986 

8 for the period beginning on January 1, 2017, and 

9 ending on December 31, 2017, such credit shall be 

10 allowed, and any refund or payment attributable to 

11 such credit (including any payment under section 

12 6427(e) of such Code) shall be made, only in such 

13 manner as the Secretary of the Treasury (or the 

14 Secretary’s delegate) shall provide. Such Secretary 

15 shall issue guidance within 30 days after the date of 

16 the enactment of this Act providing for a one-time 

17 submission of claims covering periods described in 

18 the preceding sentence. Such guidance shall provide 

19 for a 180-day period for the submission of such 

20 claims (in such manner as prescribed by such Sec21 retary) to begin not later than 30 days after such 

22 guidance is issued. Such claims shall be paid by such 

23 Secretary not later than 60 days after receipt. If 

24 such Secretary has not paid pursuant to a claim 

25 filed under this subsection within 60 days after the 


SSpencer on DSKBBXCHB2PROD with BILLS
14 

•S 2256 IS

1 date of the filing of such claim, the claim shall be 

2 paid with interest from such date determined by 

3 using the overpayment rate and method under sec4 tion 6621 of such Code. 

5 SEC. 308. EXTENSION OF PRODUCTION CREDIT FOR INDIAN 

6 COAL FACILITIES. 

7 (a) IN GENERAL.—Section 45(e)(10)(A) is amended 

8 by striking ‘‘11-year period’’ each place it appears and in9 serting ‘‘13-year period’’. 

10 (b) EFFECTIVE DATE.—The amendment made by 

11 this section shall apply to coal produced after December 

12 31, 2016. 

13 SEC. 309. EXTENSION OF CREDITS WITH RESPECT TO FA14 CILITIES PRODUCING ENERGY FROM CER15 TAIN RENEWABLE RESOURCES. 

16 (a) IN GENERAL.—The following provisions of sec17 tion 45(d) are each amended by striking ‘‘January 1, 

18 2017’’ each place it appears and inserting ‘‘January 1, 

19 2019’’: 

20 (1) Paragraph (2)(A). 

21 (2) Paragraph (3)(A). 

22 (3) Paragraph (4)(B). 

23 (4) Paragraph (6). 

24 (5) Paragraph (7). 

25 (6) Paragraph (9). 


SSpencer on DSKBBXCHB2PROD with BILLS
15 

•S 2256 IS

1 (7) Paragraph (11)(B). 

2 (b) EXTENSION OF ELECTION TO TREAT QUALIFIED

3 FACILITIES AS ENERGY PROPERTY.—Section 

4 48(a)(5)(C)(ii) is amended by striking ‘‘January 1, 2017’’ 

5 and inserting ‘‘January 1, 2019’’. 

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

7 this section shall take effect on January 1, 2017. 

8 SEC. 310. EXTENSION OF CREDIT FOR ENERGY-EFFICIENT 

9 NEW HOMES. 

10 (a) IN GENERAL.—Section 45L(g) is amended by 

11 striking ‘‘December 31, 2016’’ and inserting ‘‘December 

12 31, 2018’’. 

13 (b) EFFECTIVE DATE.—The amendment made by 

14 this section shall apply to homes acquired after December 

15 31, 2016. 

16 SEC. 311. EXTENSION AND PHASEOUT OF ENERGY CREDIT. 

17 (a) CREDIT PERCENTAGE FOR GEOTHERMAL EN18 ERGY PROPERTY.—Section 48(a)(2)(A)(i)(II) is amended 

19 by striking ‘‘paragraph (3)(A)(i)’’ and inserting ‘‘clause 

20 (i) or (iii) of paragraph (3)(A)’’. 

21 (b) EXTENSION OF SOLAR AND THERMAL ENERGY

22 PROPERTY.—Section 48(a)(3)(A) is amended— 

23 (1) by striking ‘‘periods ending before January 

24 1, 2017’’ in clause (ii) and inserting ‘‘property the 


SSpencer on DSKBBXCHB2PROD with BILLS
16 

•S 2256 IS

1 construction of which begins before January 1, 

2 2022’’, and 

3 (2) by striking ‘‘periods ending before January 

4 1, 2017’’ in clause (vii) and inserting ‘‘property the 

5 construction of which begins before January 1, 

6 2022’’. 

7 (c) PHASEOUT OF 30-PERCENT CREDIT RATE FOR

8 GEOTHERMAL ENERGY PROPERTY.—Section 48(a)(6) is 

9 amended— 

10 (1) by inserting ‘‘AND GEOTHERMAL’’ after 

11 ‘‘SOLAR’’ in the heading, 

12 (2) by striking ‘‘paragraph (3)(A)(i)’’ in sub13 paragraph (A) and inserting ‘‘clause (i) or (iii) of 

14 paragraph (3)(A)’’, and 

15 (3) by striking ‘‘property energy property de16 scribed in paragraph (3)(A)(i)’’ in subparagraph (B) 

17 and inserting ‘‘energy property described in clause 

18 (i) or (iii) of paragraph (3)(A)’’. 

19 (d) PHASEOUT OF 30-PERCENT CREDIT RATE FOR

20 FIBER-OPTIC SOLAR, QUALIFIED FUEL CELL, AND

21 QUALIFIED SMALL WIND ENERGY PROPERTY.— 

22 (1) IN GENERAL.—Section 48(a) is amended by 

23 adding at the end the following new paragraph: 


SSpencer on DSKBBXCHB2PROD with BILLS
17 

•S 2256 IS

1 ‘‘(7) PHASEOUT FOR FIBER-OPTIC SOLAR, 

2 QUALIFIED FUEL CELL, AND QUALIFIED SMALL

3 WIND ENERGY PROPERTY.— 

4 ‘‘(A) IN GENERAL.—In the case of any 

5 qualified fuel cell property, qualified small wind 

6 property, or energy property described in para7 graph (3)(A)(ii), the energy percentage deter8 mined under paragraph (2) shall be equal to— 

9 ‘‘(i) in the case of any property the 

10 construction of which begins after Decem11 ber 31, 2019, and before January 1, 2021, 

12 26 percent, and 

13 ‘‘(ii) in the case of any property the 

14 construction of which begins after Decem15 ber 31, 2020, and before January 1, 2022, 

16 22 percent. 

17 ‘‘(B) PLACED IN SERVICE DEADLINE.—In 

18 the case of any energy property described in 

19 subparagraph (A) which is not placed in service 

20 before January 1, 2024, the energy percentage 

21 determined under paragraph (2) shall be equal 

22 to 0 percent.’’. 

23 (2) CONFORMING AMENDMENT.—Section 

24 48(a)(2)(A) is amended by striking ‘‘paragraph (6)’’ 

25 and inserting ‘‘paragraphs (6) and (7)’’. 


SSpencer on DSKBBXCHB2PROD with BILLS
18 

•S 2256 IS

1 (3) CLARIFICATION RELATING TO PHASEOUT

2 FOR WIND FACILITIES.—Section 48(a)(5)(E) is 

3 amended by inserting ‘‘which is treated as energy 

4 property by reason of this paragraph’’ after ‘‘using 

5 wind to produce electricity’’. 

6 (e) EXTENSION OF QUALIFIED FUEL CELL PROP7 ERTY.—Section 48(c)(1)(D) is amended by striking ‘‘for 

8 any period after December 31, 2016’’ and inserting ‘‘the 

9 construction of which does not begin before January 1, 

10 2022’’. 

11 (f) EXTENSION OF QUALIFIED MICROTURBINE

12 PROPERTY.—Section 48(c)(2)(D) is amended by striking 

13 ‘‘for any period after December 31, 2016’’ and inserting 

14 ‘‘the construction of which does not begin before January 

15 1, 2022’’. 

16 (g) EXTENSION OF COMBINED HEAT AND POWER

17 SYSTEM PROPERTY.—Section 48(c)(3)(A)(iv) is amended 

18 by striking ‘‘which is placed in service before January 1, 

19 2017’’ and inserting ‘‘the construction of which begins be20 fore January 1, 2022’’. 

21 (h) EXTENSION OF QUALIFIED SMALL WIND EN22 ERGY PROPERTY.—Section 48(c)(4)(C) is amended by 

23 striking ‘‘for any period after December 31, 2016’’ and 

24 inserting ‘‘the construction of which does not begin before 

25 January 1, 2022’’. 


SSpencer on DSKBBXCHB2PROD with BILLS
19 

•S 2256 IS

1 (i) EFFECTIVE DATE.—The amendments made by 

2 this section shall take effect on January 1, 2017. 

3 SEC. 312. EXTENSION OF SPECIAL ALLOWANCE FOR SEC4 OND GENERATION BIOFUEL PLANT PROP5 ERTY. 

6 (a) IN GENERAL.—Section 168(l)(2)(D) is amended 

7 by striking ‘‘January 1, 2017’’ and inserting ‘‘January 1, 

8 2019’’. 

9 (b) EFFECTIVE DATE.—The amendment made by 

10 this section shall apply to property placed in service after 

11 December 31, 2016. 

12 SEC. 313. EXTENSION OF ENERGY EFFICIENT COMMERCIAL 

13 BUILDINGS DEDUCTION. 

14 (a) IN GENERAL.—Section 179D(h) is amended by 

15 striking ‘‘December 31, 2016’’ and inserting ‘‘December 

16 31, 2018’’. 

17 (b) EFFECTIVE DATE.—The amendment made by 

18 this section shall apply to property placed in service after 

19 December 31, 2016. 


SSpencer on DSKBBXCHB2PROD with BILLS
20 

•S 2256 IS

1 SEC. 314. EXTENSION OF SPECIAL RULE FOR SALES OR DIS2 POSITIONS TO IMPLEMENT FERC OR STATE 

3 ELECTRIC RESTRUCTURING POLICY FOR 

4 QUALIFIED ELECTRIC UTILITIES. 

5 (a) IN GENERAL.—Section 451(i)(3) is amended by 

6 striking ‘‘January 1, 2017’’ and inserting ‘‘January 1, 

7 2019’’. 

8 (b) EFFECTIVE DATE.—The amendment made by 

9 this section shall apply to dispositions after December 31, 

10 2016. 

11 SEC. 315. EXTENSION OF EXCISE TAX CREDITS RELATING 

12 TO ALTERNATIVE FUELS. 

13 (a) EXTENSION OF ALTERNATIVE FUELS EXCISE

14 TAX CREDITS.— 

15 (1) IN GENERAL.—Sections 6426(d)(5) and 

16 6426(e)(3) are each amended by striking ‘‘December 

17 31, 2016’’ and inserting ‘‘December 31, 2018’’. 

18 (2) OUTLAY PAYMENTS FOR ALTERNATIVE

19 FUELS.—Section 6427(e)(6)(C) is amended by strik20 ing ‘‘December 31, 2016’’ and inserting ‘‘December 

21 31, 2018’’. 

22 (3) EFFECTIVE DATE.—The amendments made 

23 by this subsection shall apply to fuel sold or used 

24 after December 31, 2016. 

25 (b) SPECIAL RULE FOR 2017.—Notwithstanding any 

26 other provision of law, in the case of any alternative fuel 


SSpencer on DSKBBXCHB2PROD with BILLS
21 

•S 2256 IS

1 credit properly determined under section 6426(d) of the 

2 Internal Revenue Code of 1986 for the period beginning 

3 on January 1, 2017, and ending on December 31, 2017, 

4 such credit shall be allowed, and any refund or payment 

5 attributable to such credit (including any payment under 

6 section 6427(e) of such Code) shall be made, only in such 

7 manner as the Secretary of the Treasury (or the Sec8 retary’s delegate) shall provide. Such Secretary shall issue 

9 guidance within 30 days after the date of the enactment 

10 of this Act providing for a one-time submission of claims 

11 covering periods described in the preceding sentence. Such 

12 guidance shall provide for a 180-day period for the sub13 mission of such claims (in such manner as prescribed by 

14 such Secretary) to begin not later than 30 days after such 

15 guidance is issued. Such claims shall be paid by such Sec16 retary not later than 60 days after receipt. If such Sec17 retary has not paid pursuant to a claim filed under this 

18 subsection within 60 days after the date of the filing of 

19 such claim, the claim shall be paid with interest from such 

20 date determined by using the overpayment rate and meth21 od under section 6621 of such Code. 


SSpencer on DSKBBXCHB2PROD with BILLS
22 

•S 2256 IS

1 SEC. 316. EXTENSION OF OIL SPILL LIABILITY TRUST FUND 

2 FINANCING RATE. 

3 (a) IN GENERAL.—Section 4611(f)(2) is amended by 

4 striking ‘‘December 31, 2017’’ and inserting ‘‘December 

5 31, 2018’’. 

6 (b) EFFECTIVE DATE.—The amendment made by 

7 this section shall apply on and after January 1, 2018. 

8 TITLE IV—MODIFICATIONS OF 

9 ENERGY INCENTIVES 

10 SEC. 401. MODIFICATIONS OF CREDIT FOR PRODUCTION 

11 FROM ADVANCED NUCLEAR POWER FACILI12 TIES. 

13 (a) TREATMENT OF UNUTILIZED LIMITATION

14 AMOUNTS.—Section 45J(b) is amended— 

15 (1) by inserting ‘‘or any amendment to’’ after 

16 ‘‘enactment of’’ in paragraph (4), and 

17 (2) by adding at the end the following new 

18 paragraph: 

19 ‘‘(5) ALLOCATION OF UNUTILIZED LIMITA20 TION.— 

21 ‘‘(A) IN GENERAL.—Any unutilized na22 tional megawatt capacity limitation shall be al23 located by the Secretary under paragraph (3) 

24 as rapidly as is practicable after December 31, 

25 2020— 


SSpencer on DSKBBXCHB2PROD with BILLS
23 

•S 2256 IS

1 ‘‘(i) first to facilities placed in service 

2 on or before such date to the extent that 

3 such facilities did not receive an allocation 

4 equal to their full nameplate capacity, and 

5 ‘‘(ii) then to facilities placed in service 

6 after such date in the order in which such 

7 facilities are placed in service. 

8 ‘‘(B) UNUTILIZED NATIONAL MEGAWATT

9 CAPACITY LIMITATION.—The term ‘unutilized 

10 national megawatt capacity limitation’ means 

11 the excess (if any) of— 

12 ‘‘(i) 6,000 megawatts, over 

13 ‘‘(ii) the aggregate amount of national 

14 megawatt capacity limitation allocated by 

15 the Secretary before January 1, 2021, re16 duced by any amount of such limitation 

17 which was allocated to a facility which was 

18 not placed in service before such date. 

19 ‘‘(C) COORDINATION WITH OTHER PROVI20 SIONS.—In the case of any unutilized national 

21 megawatt capacity limitation allocated by the 

22 Secretary pursuant to this paragraph— 

23 ‘‘(i) such allocation shall be treated 

24 for purposes of this section in the same 


SSpencer on DSKBBXCHB2PROD with BILLS
24 

•S 2256 IS

1 manner as an allocation of national mega2 watt capacity limitation, and 

3 ‘‘(ii) subsection (d)(1)(B) shall not 

4 apply to any facility which receives such al5 location.’’. 

6 (b) TRANSFER OF CREDIT BY CERTAIN PUBLIC EN7 TITIES.— 

8 (1) IN GENERAL.—Section 45J is amended— 

9 (A) by redesignating subsection (e) as sub10 section (f), and 

11 (B) by inserting after subsection (d) the 

12 following new subsection: 

13 ‘‘(e) TRANSFER OF CREDIT BY CERTAIN PUBLIC EN14 TITIES.— 

15 ‘‘(1) IN GENERAL.—If, with respect to a credit 

16 under subsection (a) for any taxable year— 

17 ‘‘(A) a qualified public entity would be the 

18 taxpayer (but for this paragraph), and 

19 ‘‘(B) such entity elects the application of 

20 this paragraph for such taxable year with re21 spect to all (or any portion specified in such 

22 election) of such credit, 

23 the eligible project partner specified in such election, 

24 and not the qualified public entity, shall be treated 


SSpencer on DSKBBXCHB2PROD with BILLS
25 

•S 2256 IS

1 as the taxpayer for purposes of this title with re2 spect to such credit (or such portion thereof). 

3 ‘‘(2) DEFINITIONS.—For purposes of this sub4 section— 

5 ‘‘(A) QUALIFIED PUBLIC ENTITY.—The 

6 term ‘qualified public entity’ means— 

7 ‘‘(i) a Federal, State, or local govern8 ment entity, or any political subdivision, 

9 agency, or instrumentality thereof, 

10 ‘‘(ii) a mutual or cooperative electric 

11 company described in section 501(c)(12) or 

12 1381(a)(2), or 

13 ‘‘(iii) a not-for-profit electric utility 

14 which had or has received a loan or loan 

15 guarantee under the Rural Electrification 

16 Act of 1936. 

17 ‘‘(B) ELIGIBLE PROJECT PARTNER.—The 

18 term ‘eligible project partner’ means any person 

19 who— 

20 ‘‘(i) is responsible for, or participates 

21 in, the design or construction of the ad22 vanced nuclear power facility to which the 

23 credit under subsection (a) relates, 


SSpencer on DSKBBXCHB2PROD with BILLS
26 

•S 2256 IS

1 ‘‘(ii) participates in the provision of 

2 the nuclear steam supply system to such 

3 facility, 

4 ‘‘(iii) participates in the provision of 

5 nuclear fuel to such facility, 

6 ‘‘(iv) is a financial institution pro7 viding financing for the construction or op8 eration of such facility, or 

9 ‘‘(v) has an ownership interest in such 

10 facility. 

11 ‘‘(3) SPECIAL RULES.— 

12 ‘‘(A) APPLICATION TO PARTNERSHIPS.—In 

13 the case of a credit under subsection (a) which 

14 is determined at the partnership level— 

15 ‘‘(i) for purposes of paragraph (1)(A), 

16 a qualified public entity shall be treated as 

17 the taxpayer with respect to such entity’s 

18 distributive share of such credit, and 

19 ‘‘(ii) the term ‘eligible project partner’ 

20 shall include any partner of the partner21 ship. 

22 ‘‘(B) TAXABLE YEAR IN WHICH CREDIT

23 TAKEN INTO ACCOUNT.—In the case of any 

24 credit (or portion thereof) with respect to which 

25 an election is made under paragraph (1), such 


SSpencer on DSKBBXCHB2PROD with BILLS
27 

•S 2256 IS

1 credit shall be taken into account in the first 

2 taxable year of the eligible project partner end3 ing with, or after, the qualified public entity’s 

4 taxable year with respect to which the credit 

5 was determined. 

6 ‘‘(C) TREATMENT OF TRANSFER UNDER

7 PRIVATE USE RULES.—For purposes of section 

8 141(b)(1), any benefit derived by an eligible 

9 project partner in connection with an election 

10 under this subsection shall not be taken into ac11 count as a private business use.’’. 

12 (2) SPECIAL RULE FOR PROCEEDS OF TRANS13 FERS FOR MUTUAL OR COOPERATIVE ELECTRIC

14 COMPANIES.—Section 501(c)(12) is amended by 

15 adding at the end the following new subparagraph: 

16 ‘‘(I) In the case of a mutual or cooperative 

17 electric company described in this paragraph or 

18 an organization described in section 1381(a)(2), 

19 income received or accrued in connection with 

20 an election under section 45J(e)(1) shall be 

21 treated as an amount collected from members 

22 for the sole purpose of meeting losses and ex23 penses.’’. 

24 (c) EFFECTIVE DATES.— 


SSpencer on DSKBBXCHB2PROD with BILLS
28 

•S 2256 IS

1 (1) TREATMENT OF UNUTILIZED LIMITATION

2 AMOUNTS.—The amendment made by subsection (a) 

3 shall take effect on the date of the enactment of this 

4 Act. 

5 (2) TRANSFER OF CREDIT BY CERTAIN PUBLIC

6 ENTITIES.—The amendments made by subsection 

7 (b) shall apply to taxable years beginning after the 

8 date of the enactment of this Act. 

9 SEC. 402. ENHANCEMENT OF CARBON DIOXIDE SEQUES10 TRATION CREDIT. 

11 (a) IN GENERAL.—Section 45Q is amended to read 

12 as follows: 

13 ‘‘SEC. 45Q. CREDIT FOR CARBON OXIDE SEQUESTRATION. 

14 ‘‘(a) GENERAL RULE.—For purposes of section 38, 

15 the carbon oxide sequestration credit for any taxable year 

16 is an amount equal to the sum of— 

17 ‘‘(1) $20 per metric ton of qualified carbon 

18 oxide which is— 

19 ‘‘(A) captured by the taxpayer using car20 bon capture equipment which is originally 

21 placed in service at a qualified facility before 

22 the date of the enactment of the Tax Extender 

23 Act of 2017, and 


SSpencer on DSKBBXCHB2PROD with BILLS
29 

•S 2256 IS

1 ‘‘(B) disposed of by the taxpayer in secure 

2 geological storage and not used by the taxpayer 

3 as described in paragraph (2)(B), 

4 ‘‘(2) $10 per metric ton of qualified carbon 

5 oxide which is— 

6 ‘‘(A) captured by the taxpayer using car7 bon capture equipment which is originally 

8 placed in service at a qualified facility before 

9 the date of the enactment of the Tax Extender 

10 Act of 2017, and 

11 ‘‘(B)(i) used by the taxpayer as a tertiary 

12 injectant in a qualified enhanced oil or natural 

13 gas recovery project and disposed of by the tax14 payer in secure geological storage, or 

15 ‘‘(ii) utilized by the taxpayer in a manner 

16 described in subsection (f)(5), 

17 ‘‘(3) the applicable dollar amount per metric 

18 ton of qualified carbon oxide which is— 

19 ‘‘(A) captured by the taxpayer using car20 bon capture equipment which is originally 

21 placed in service at a qualified facility on or 

22 after the date of the enactment of the Tax Ex23 tender Act of 2017, during the 12-year period 

24 beginning on the date the equipment was origi25 nally placed in service, and 


SSpencer on DSKBBXCHB2PROD with BILLS
30 

•S 2256 IS

1 ‘‘(B) disposed of by the taxpayer in secure 

2 geological storage and not used by the taxpayer 

3 as described in paragraph (4)(B), and 

4 ‘‘(4) the applicable dollar amount per metric 

5 ton of qualified carbon oxide which is— 

6 ‘‘(A) captured by the taxpayer using car7 bon capture equipment which is originally 

8 placed in service at a qualified facility on or 

9 after the date of the enactment of the Tax Ex10 tender Act of 2017, during the 12-year period 

11 beginning on the date the equipment was origi12 nally placed in service, and 

13 ‘‘(B)(i) used by the taxpayer as a tertiary 

14 injectant in a qualified enhanced oil or natural 

15 gas recovery project and disposed of by the tax16 payer in secure geological storage, or 

17 ‘‘(ii) utilized by the taxpayer in a manner 

18 described in subsection (f)(5). 

19 ‘‘(b) APPLICABLE DOLLAR AMOUNT; ADDITIONAL

20 EQUIPMENT; ELECTION.— 

21 ‘‘(1) APPLICABLE DOLLAR AMOUNT.— 

22 ‘‘(A) IN GENERAL.—For purposes of this 

23 section, the applicable dollar amount shall be an 

24 amount equal to— 


SSpencer on DSKBBXCHB2PROD with BILLS
31 

•S 2256 IS

1 ‘‘(i) for any taxable year beginning in 

2 a calendar year after 2016 and ending be3 fore 2027— 

4 ‘‘(I) for purposes of paragraph 

5 (3) of subsection (a), the dollar 

6 amount established by linear inter7 polation between $22.66 and $50 for 

8 each calendar year during such pe9 riod, and 

10 ‘‘(II) for purposes of paragraph 

11 (4) of such subsection, the dollar 

12 amount established by linear inter13 polation between $12.83 and $35 for 

14 each calendar year during such pe15 riod, and 

16 ‘‘(ii) for any taxable year beginning in 

17 a calendar year after 2026— 

18 ‘‘(I) for purposes of paragraph 

19 (3) of subsection (a), an amount equal 

20 to the product of $50 and the infla21 tion adjustment factor for such cal22 endar year determined under section 

23 43(b)(3)(B) for such calendar year, 

24 determined by substituting ‘2025’ for 

25 ‘1990’, and 


SSpencer on DSKBBXCHB2PROD with BILLS
32 

•S 2256 IS

1 ‘‘(II) for purposes of paragraph 

2 (4) of such subsection, an amount 

3 equal to the product of $35 and the 

4 inflation adjustment factor for such 

5 calendar year determined under sec6 tion 43(b)(3)(B) for such calendar 

7 year, determined by substituting 

8 ‘2025’ for ‘1990’. 

9 ‘‘(B) ROUNDING.—The applicable dollar 

10 amount determined under subparagraph (A) 

11 shall be rounded to the nearest cent. 

12 ‘‘(2) INSTALLATION OF ADDITIONAL CARBON

13 CAPTURE EQUIPMENT ON EXISTING QUALIFIED FA14 CILITY.—In the case of a qualified facility placed in 

15 service before the date of the enactment of the Tax 

16 Extender Act of 2017, for which additional carbon 

17 capture equipment is placed in service on or after 

18 the date of the enactment of such Act, the amount 

19 of qualified carbon oxide which is captured by the 

20 taxpayer shall be equal to— 

21 ‘‘(A) for purposes of paragraphs (1)(A) 

22 and (2)(A) of subsection (a), the lesser of— 

23 ‘‘(i) the total amount of qualified car24 bon oxide captured at such facility for the 

25 taxable year, or 


SSpencer on DSKBBXCHB2PROD with BILLS
33 

•S 2256 IS

1 ‘‘(ii) the total amount of the carbon 

2 dioxide capture capacity of the carbon cap3 ture equipment in service at such facility 

4 on the day before the date of the enact5 ment of the Tax Extender Act of 2017, 

6 and 

7 ‘‘(B) for purposes of paragraphs (3)(A) 

8 and (4)(A) of such subsection, an amount (not 

9 less than zero) equal to the excess of— 

10 ‘‘(i) the amount described in clause (i) 

11 of subparagraph (A), over 

12 ‘‘(ii) the amount described in clause 

13 (ii) of such subparagraph. 

14 ‘‘(3) ELECTION.—For purposes of determining 

15 the carbon oxide sequestration credit under this sec16 tion, a taxpayer may elect to have the dollar 

17 amounts applicable under paragraph (1) or (2) of 

18 subsection (a) apply in lieu of the dollar amounts 

19 applicable under paragraph (3) or (4) of such sub20 section for each metric ton of qualified carbon oxide 

21 which is captured by the taxpayer using carbon cap22 ture equipment which is originally placed in service 

23 at a qualified facility on or after the date of the en24 actment of the Tax Extender Act of 2017. 


SSpencer on DSKBBXCHB2PROD with BILLS
34 

•S 2256 IS

1 ‘‘(c) QUALIFIED CARBON OXIDE.—For purposes of 

2 this section— 

3 ‘‘(1) IN GENERAL.—The term ‘qualified carbon 

4 oxide’ means— 

5 ‘‘(A) any carbon dioxide which— 

6 ‘‘(i) is captured from an industrial 

7 source by carbon capture equipment which 

8 is originally placed in service before the 

9 date of the enactment of the Tax Extender 

10 Act of 2017, 

11 ‘‘(ii) would otherwise be released into 

12 the atmosphere as industrial emission of 

13 greenhouse gas or lead to such release, and 

14 ‘‘(iii) is measured at the source of 

15 capture and verified at the point of dis16 posal, injection, or utilization, 

17 ‘‘(B) any carbon dioxide or other carbon 

18 oxide which— 

19 ‘‘(i) is captured from an industrial 

20 source by carbon capture equipment which 

21 is originally placed in service on or after 

22 the date of the enactment of the Tax Ex23 tender Act of 2017, 


SSpencer on DSKBBXCHB2PROD with BILLS
35 

•S 2256 IS

1 ‘‘(ii) would otherwise be released into 

2 the atmosphere as industrial emission of 

3 greenhouse gas or lead to such release, and 

4 ‘‘(iii) is measured at the source of 

5 capture and verified at the point of dis6 posal, injection, or utilization, or 

7 ‘‘(C) in the case of a direct air capture fa8 cility, any carbon dioxide which— 

9 ‘‘(i) is captured directly from the am10 bient air, and 

11 ‘‘(ii) is measured at the source of cap12 ture and verified at the point of disposal, 

13 injection, or utilization. 

14 ‘‘(2) RECYCLED CARBON OXIDE.—The term 

15 ‘qualified carbon oxide’ includes the initial deposit of 

16 captured carbon oxide used as a tertiary injectant. 

17 Such term does not include carbon oxide that is re18 captured, recycled, and re-injected as part of the en19 hanced oil and natural gas recovery process. 

20 ‘‘(d) QUALIFIED FACILITY.—For purposes of this 

21 section, the term ‘qualified facility’ means any industrial 

22 facility or direct air capture facility— 

23 ‘‘(1) the construction of which begins before 

24 January 1, 2024, and— 


SSpencer on DSKBBXCHB2PROD with BILLS
36 

•S 2256 IS

1 ‘‘(A) construction of carbon capture equip2 ment begins before such date, or 

3 ‘‘(B) the original planning and design for 

4 such facility includes installation of carbon cap5 ture equipment, and 

6 ‘‘(2) which captures— 

7 ‘‘(A) in the case of a facility which emits 

8 not more than 500,000 metric tons of carbon 

9 oxide into the atmosphere during the taxable 

10 year, not less than 25,000 metric tons of quali11 fied carbon oxide during the taxable year which 

12 is utilized in a manner described in subsection 

13 (f)(5), 

14 ‘‘(B) in the case of an electricity gener15 ating facility which is not described in subpara16 graph (A), not less than 500,000 metric tons of 

17 qualified carbon oxide during the taxable year, 

18 or 

19 ‘‘(C) in the case of a direct air capture fa20 cility or any facility not described in subpara21 graph (A) or (B), not less than 100,000 metric 

22 tons of qualified carbon oxide during the tax23 able year. 

24 ‘‘(e) DEFINITIONS.—For purposes of this section— 

25 ‘‘(1) DIRECT AIR CAPTURE FACILITY.— 


SSpencer on DSKBBXCHB2PROD with BILLS
37 

•S 2256 IS

1 ‘‘(A) IN GENERAL.—Subject to subpara2 graph (B), the term ‘direct air capture facility’ 

3 means any facility which uses carbon capture 

4 equipment to capture carbon dioxide directly 

5 from the ambient air. 

6 ‘‘(B) EXCEPTION.—The term ‘direct air 

7 capture facility’ shall not include any facility 

8 which captures carbon dioxide— 

9 ‘‘(i) which is deliberately released 

10 from naturally occurring subsurface 

11 springs, or 

12 ‘‘(ii) using natural photosynthesis. 

13 ‘‘(2) QUALIFIED ENHANCED OIL OR NATURAL

14 GAS RECOVERY PROJECT.—The term ‘qualified en15 hanced oil or natural gas recovery project’ has the 

16 meaning given the term ‘qualified enhanced oil re17 covery project’ by section 43(c)(2), determined— 

18 ‘‘(A) by substituting ‘crude oil or natural 

19 gas’ for ‘crude oil’ in subparagraph (A)(i) 

20 thereof, and 

21 ‘‘(B) without regard to subparagraph 

22 (A)(iii) thereof. 

23 ‘‘(3) TERTIARY INJECTANT.—The term ‘ter24 tiary injectant’ has the same meaning as when used 

25 within section 193(b)(1). 


SSpencer on DSKBBXCHB2PROD with BILLS
38 

•S 2256 IS

1 ‘‘(f) SPECIAL RULES.— 

2 ‘‘(1) ONLY QUALIFIED CARBON OXIDE CAP3 TURED AND DISPOSED OF OR USED WITHIN THE

4 UNITED STATES TAKEN INTO ACCOUNT.—The credit 

5 under this section shall apply only with respect to 

6 qualified carbon oxide the capture and disposal, use, 

7 or utilization of which is within— 

8 ‘‘(A) the United States (within the mean9 ing of section 638(1)), or 

10 ‘‘(B) a possession of the United States 

11 (within the meaning of section 638(2)). 

12 ‘‘(2) SECURE GEOLOGICAL STORAGE.— 

13 ‘‘(A) IN GENERAL.—Not later than De14 cember 31, 2018, the Secretary, in consultation 

15 with the Administrator of the Environmental 

16 Protection Agency, the Secretary of Energy, 

17 and the Secretary of the Interior, shall establish 

18 regulations for determining adequate security 

19 measures for the geological storage of carbon 

20 dioxide under subsection (a) such that the car21 bon dioxide does not escape into the atmos22 phere. Such term shall include storage at deep 

23 saline formations, oil and gas reservoirs, and 

24 unmineable coal seams under such conditions as 


SSpencer on DSKBBXCHB2PROD with BILLS
39 

•S 2256 IS

1 the Secretary may determine under such regu2 lations. 

3 ‘‘(B) REQUIREMENTS.—The regulations 

4 established pursuant to subparagraph (A) shall 

5 provide that— 

6 ‘‘(i) for purposes of paragraph (1)(B) 

7 or (3)(B) of subsection (a), carbon dioxide 

8 shall be considered disposed of in secure 

9 geological storage if such carbon dioxide is 

10 stored in compliance with rules promul11 gated by the Environmental Protection 

12 Agency under subpart RR of part 98 of 

13 title 40, Code of Federal Regulations (as 

14 in effect on the date of the enactment of 

15 this paragraph), under the Clean Air Act 

16 (42 U.S.C. 7401 et seq.) and rules under 

17 the Safe Drinking Water Act (42 U.S.C. 

18 300f et seq.) which are applicable to car19 bon dioxide disposed of in secure geological 

20 storage and not used as a tertiary 

21 injectant in a qualified enhanced oil or nat22 ural gas recovery project, and 

23 ‘‘(ii) for purposes of paragraph 

24 (2)(B)(i) or (4)(B)(i) of subsection (a), 

25 carbon dioxide shall be considered disposed 


SSpencer on DSKBBXCHB2PROD with BILLS
40 

•S 2256 IS

1 of in secure geological storage if such car2 bon dioxide is stored in compliance with 

3 rules promulgated by the Environmental 

4 Protection Agency which are applicable to 

5 carbon dioxide used as a tertiary injectant 

6 in a qualified enhanced oil or natural gas 

7 recovery project under— 

8 ‘‘(I) subpart UU of part 98 of 

9 title 40, Code of Federal Regulations 

10 (as in effect on the date of the enact11 ment of this paragraph), under the 

12 Clean Air Act, and 

13 ‘‘(II) subpart C of part 146 of 

14 title 40, Code of Federal Regulations 

15 (as in effect on the date of the enact16 ment of this paragraph), under the 

17 Safe Drinking Water Act, to the ex18 tent such rules are applicable to Class 

19 II wells. 

20 ‘‘(3) CREDIT ATTRIBUTABLE TO TAXPAYER.— 

21 ‘‘(A) IN GENERAL.—Except as provided in 

22 subparagraph (B) or in any regulations pre23 scribed by the Secretary, any credit under this 

24 section shall be attributable to— 


SSpencer on DSKBBXCHB2PROD with BILLS
41 

•S 2256 IS

1 ‘‘(i) in the case of qualified carbon 

2 oxide captured using carbon capture equip3 ment which is originally placed in service 

4 at a qualified facility before the date of the 

5 enactment of the Tax Extender Act of 

6 2017, the person that captures and phys7 ically or contractually ensures the disposal, 

8 utilization, or use as a tertiary injectant of 

9 such qualified carbon oxide, and 

10 ‘‘(ii) in the case of qualified carbon 

11 oxide captured using carbon capture equip12 ment which is originally placed in service 

13 at a qualified facility on or after the date 

14 of the enactment of the Tax Extender Act 

15 of 2017, the person that owns the carbon 

16 capture equipment and physically or con17 tractually ensures the capture and dis18 posal, utilization, or use as a tertiary 

19 injectant of such qualified carbon oxide. 

20 ‘‘(B) ELECTION.—If the person described 

21 in subparagraph (A) makes an election under 

22 this subparagraph in such time and manner as 

23 the Secretary may prescribe by regulations, the 

24 credit under this section— 


SSpencer on DSKBBXCHB2PROD with BILLS
42 

•S 2256 IS

1 ‘‘(i) shall be allowable to the person 

2 that disposes of the qualified carbon oxide, 

3 utilizes the qualified carbon oxide, or uses 

4 the qualified carbon oxide as a tertiary 

5 injectant, and 

6 ‘‘(ii) shall not be allowable to the per7 son described in subparagraph (A). 

8 ‘‘(4) RECAPTURE.—The Secretary shall, by reg9 ulations, provide for recapturing the benefit of any 

10 credit allowable under subsection (a) with respect to 

11 any qualified carbon oxide which ceases to be cap12 tured, disposed of, or used as a tertiary injectant in 

13 a manner consistent with the requirements of this 

14 section. 

15 ‘‘(5) UTILIZATION OF QUALIFIED CARBON

16 OXIDE.— 

17 ‘‘(A) IN GENERAL.—For purposes of this 

18 section, utilization of qualified carbon oxide 

19 means— 

20 ‘‘(i) the fixation of such qualified car21 bon oxide through photosynthesis or 

22 chemosynthesis, such as through the grow23 ing of algae or bacteria, 

24 ‘‘(ii) the chemical conversion of such 

25 qualified carbon oxide to a material or 


SSpencer on DSKBBXCHB2PROD with BILLS
43 

•S 2256 IS

1 chemical compound in which such qualified 

2 carbon oxide is securely stored, or 

3 ‘‘(iii) the use of such qualified carbon 

4 oxide for any other purpose for which a 

5 commercial market exists (with the excep6 tion of use as a tertiary injectant in a 

7 qualified enhanced oil or natural gas recov8 ery project), as determined by the Sec9 retary. 

10 ‘‘(B) MEASUREMENT.— 

11 ‘‘(i) IN GENERAL.—For purposes of 

12 determining the amount of qualified carbon 

13 oxide utilized by the taxpayer under para14 graph (2)(B)(ii) or (4)(B)(ii) of subsection 

15 (a), such amount shall be equal to the met16 ric tons of qualified carbon oxide which the 

17 taxpayer demonstrates, based upon an 

18 analysis of lifecycle greenhouse gas emis19 sions and subject to such requirements as 

20 the Secretary, in consultation with the Sec21 retary of Energy and the Administrator of 

22 the Environmental Protection Agency, de23 termines appropriate, were— 

24 ‘‘(I) captured and permanently 

25 isolated from the atmosphere, or 


SSpencer on DSKBBXCHB2PROD with BILLS
44 

•S 2256 IS

1 ‘‘(II) displaced from being emit2 ted into the atmosphere, 

3 through use of a process described in sub4 paragraph (A). 

5 ‘‘(ii) LIFECYCLE GREENHOUSE GAS

6 EMISSIONS.—For purposes of clause (i), 

7 the term ‘lifecycle greenhouse gas emis8 sions’ has the same meaning given such 

9 term under subparagraph (H) of section 

10 211(o)(1) of the Clean Air Act (42 U.S.C. 

11 7545(o)(1)), as in effect on the date of the 

12 enactment of the Tax Extender Act of 

13 2017, except that ‘product’ shall be sub14 stituted for ‘fuel’ each place it appears in 

15 such subparagraph. 

16 ‘‘(6) ELECTION FOR APPLICABLE FACILITIES.— 

17 ‘‘(A) IN GENERAL.—For purposes of this 

18 section, in the case of an applicable facility, for 

19 any taxable year in which such facility captures 

20 not less than 500,000 metric tons of qualified 

21 carbon oxide during the taxable year, the per22 son described in paragraph (3)(A)(ii) may elect 

23 to have such facility, and any carbon capture 

24 equipment placed in service at such facility, 

25 deemed as having been placed in service on the 


SSpencer on DSKBBXCHB2PROD with BILLS
45 

•S 2256 IS

1 date of the enactment of the Tax Extender Act 

2 of 2017. 

3 ‘‘(B) APPLICABLE FACILITY.—For pur4 poses of this paragraph, the term ‘applicable fa5 cility’ means a qualified facility— 

6 ‘‘(i) which was placed in service before 

7 the date of the enactment of the Tax Ex8 tender Act of 2017, and 

9 ‘‘(ii) for which no taxpayer claimed a 

10 credit under this section in regards to such 

11 facility for any taxable year ending before 

12 the date of the enactment of such Act. 

13 ‘‘(7) INFLATION ADJUSTMENT.—In the case of 

14 any taxable year beginning in a calendar year after 

15 2009, there shall be substituted for each dollar 

16 amount contained in paragraphs (1) and (2) of sub17 section (a) an amount equal to the product of— 

18 ‘‘(A) such dollar amount, multiplied by 

19 ‘‘(B) the inflation adjustment factor for 

20 such calendar year determined under section 

21 43(b)(3)(B) for such calendar year, determined 

22 by substituting ‘2008’ for ‘1990’. 

23 ‘‘(g) APPLICATION OF SECTION FOR CERTAIN CAR24 BON CAPTURE EQUIPMENT.—In the case of any carbon 

25 capture equipment placed in service before the date of the 


SSpencer on DSKBBXCHB2PROD with BILLS
46 

•S 2256 IS

1 enactment of the Tax Extender Act of 2017, the credit 

2 under this section shall apply with respect to qualified car3 bon oxide captured using such equipment before the end 

4 of the calendar year in which the Secretary, in consulta5 tion with the Administrator of the Environmental Protec6 tion Agency, certifies that, during the period beginning 

7 after October 3, 2008, a total of 75,000,000 metric tons 

8 of qualified carbon oxide have been taken into account in 

9 accordance with— 

10 ‘‘(1) subsection (a) of this section, as in effect 

11 on the day before the date of the enactment of the 

12 Tax Extender Act of 2017, and 

13 ‘‘(2) paragraphs (1) and (2) of subsection (a) 

14 of this section. 

15 ‘‘(h) REGULATIONS.—The Secretary may prescribe 

16 such regulations and other guidance as may be necessary 

17 or appropriate to carry out this section, including regula18 tions or other guidance to— 

19 ‘‘(1) ensure proper allocation under subsection 

20 (a) for qualified carbon oxide captured by a taxpayer 

21 during the taxable year ending after the date of the 

22 enactment of the Tax Extender Act of 2017, and 

23 ‘‘(2) determine whether a facility satisfies the 

24 requirements under subsection (d)(1) during such 

25 taxable year.’’. 


SSpencer on DSKBBXCHB2PROD with BILLS
47 

•S 2256 IS

1 (b) EFFECTIVE DATE.—The amendments made by 

2 this section shall take effect on the date of the enactment 

3 of this Act. 

Æ 


SSpencer on DSKBBXCHB2PROD with BILLS