I 

117TH CONGRESS 

1ST SESSION H. R. 1062 

To amend the Internal Revenue Code of 1986 to extend and allow an elective 

payment of the tax credit for carbon oxide sequestration. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 15, 2021 

Mr. MCKINLEY (for himself and Mr. VEASEY) introduced the following bill; 

which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to extend 

and allow an elective payment of the tax credit for carbon oxide sequestration. 

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 ‘‘Accelerating Carbon 

5 Capture and Extending Secure Storage through 45Q Act’’ 

6 or as the ‘‘ACCESS 45Q Act’’. 

2 

•HR 1062 IH

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, 2026’’ and in5 serting ‘‘January 1, 2036’’. 

6 SEC. 3. ELECTIVE PAYMENT FOR CARBON OXIDE SEQUES7 TRATION. 

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

9 Internal Revenue Code of 1986 is amended by adding at 

10 the end the following new section: 

11 ‘‘SEC. 6431. ELECTIVE PAYMENT FOR CARBON OXIDE SE12 QUESTRATION. 

13 ‘‘(a) IN GENERAL.—In the case of a taxpayer making 

14 an election (at such time and in such manner as the Sec15 retary may provide) under this section with respect to any 

16 portion of a carbon oxide sequestration credit which would 

17 (without regard to this section) be determined under sec18 tion 45Q with respect to such taxpayer, such taxpayer 

19 shall be treated as making a payment against the tax im20 posed by subtitle A for the taxable year equal to the 

21 amount of such portion. 

22 ‘‘(b) LIMITATION.—The portion of a carbon oxide se23 questration credit with respect to which a taxpayer may 

24 make an election under this section shall not exceed the 

25 portion of such credit which is attributable to property 

3 

•HR 1062 IH

1 originally placed in service after the date of the enactment 

2 of this section. 

3 ‘‘(c) TIMING.—The payment described in subsection 

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

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

6 which such return is filed. 

7 ‘‘(d) EXCLUSION FROM GROSS INCOME.—Gross in8 come of the taxpayer shall be determined without regard 

9 to this section. 

10 ‘‘(e) DENIAL OF DOUBLE BENEFIT.—Solely for pur11 poses of section 38, in the case of a taxpayer making an 

12 election under this section, the carbon oxide sequestration 

13 credit determined under section 45Q shall be reduced by 

14 the amount of the portion of such credit with respect to 

15 which the taxpayer makes such election. 

16 ‘‘(f) SPECIAL RULES.— 

17 ‘‘(1) In the case of a taxpayer making an elec18 tion under this subsection, the credit subject to such 

19 an election shall be determined notwithstanding— 

20 ‘‘(A) section 50(b)(3); and 

21 ‘‘(B) section 50(b)(4) for an entity de22 scribed in 50(b)(4)(A)(i). 

23 ‘‘(2) In the case of a mutual or cooperative 

24 electric company described in this paragraph or an 

25 organization described in section 1381(a)(2), any inVerDate Sep 11 2014 17:09 Mar 12, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1062.IH H1062
4 

•HR 1062 IH

1 come received or accrued in connection with the 

2 credit under this section shall be treated as an 

3 amount collected from members for the sole purpose 

4 of meeting losses and expenses.’’. 

5 (b) CLERICAL AMENDMENT.—The table of sections 

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

7 by adding at the end the following new item: 

‘‘Sec. 6431. Elective payment for carbon oxide sequestration.’’. 

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

9 this section shall apply to credits determined for taxable 

10 years ending after the date of the enactment of this Act. 

11 SEC. 4. ALLOWANCE OF THE CARBON OXIDE SEQUESTRA12 TION CREDIT AGAINST THE BASE EROSION 

13 MINIMUM TAX. 

14 (a) IN GENERAL.—Section 59A(b) of the Internal 

15 Revenue Code of 1986 is amended— 

16 (1) by inserting ‘‘and the carbon dioxide se17 questration credit determined under section 45Q’’ 

18 after ‘‘section 41(a)’’ in paragraph (1)(B)(ii)(I), and 

19 (2) by inserting ‘‘(other than the credit allowed 

20 under section 38 for the taxable year which is prop21 erly allocable to the credit for carbon oxide seques22 tration determined under section 45Q)’’ after ‘‘cred23 its allowed under this chapter’’. 

5 

•HR 1062 IH

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

2 this section shall take effect as if included in section 

3 41119 of the Bipartisan Budget Act of 2018. 

Æ