I 

116TH CONGRESS 

1ST SESSION H. R. 2993 

To amend the Internal Revenue Code of 1986 to extend and modify the 

section 45 credit for refined coal from steel industry fuel, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 23, 2019 

Mr. KELLY of Pennsylvania (for himself and Mr. MICHAEL F. DOYLE of 

Pennsylvania) 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 modify the section 45 credit for refined coal from 

steel industry fuel, 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 ‘‘Steel Industry Preser5 vation Act’’. 

6 SEC. 2. EXTENSION AND MODIFICATION OF CREDIT FOR 

7 STEEL INDUSTRY FUEL. 

8 (a) CREDIT PERIOD.— 


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1 (1) IN GENERAL.—Section 45(e)(8)(D)(ii)(II) 

2 of the Internal Revenue Code of 1986 is amended to 

3 read as follows: 

4 ‘‘(II) CREDIT PERIOD.—In lieu 

5 of the 10-year period referred to in 

6 clauses (i) and (ii)(II) of subpara7 graph (A), the credit period shall be 

8 the period beginning on the first date 

9 that the facility first produces steel 

10 industry fuel that is sold to an unre11 lated person after the date of the en12 actment of the Steel Industry Preser13 vation Act, and ending 10 years after 

14 such first date.’’. 

15 (2) CONFORMING AMENDMENT.—Section 

16 45(e)(8)(D) of such Code is amended by striking 

17 clause (iii) and by redesignating clause (iv) as clause 

18 (iii). 

19 (b) EXTENSION OF PLACED-IN-SERVICE DATE.— 

20 Section 45(d)(8)(A) of such Code is amended— 

21 (1) by striking ‘‘(or any modification to a facil22 ity)’’; 

23 (2) by striking ‘‘placed in service before’’ and 

24 inserting ‘‘placed in service— 

25 ‘‘(i) before’’; 


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1 (3) by striking ‘‘and’’ at the end and inserting 

2 ‘‘or’’; and 

3 (4) by adding at the end the following new 

4 clause: 

5 ‘‘(ii) after the date of the enactment 

6 of this clause and before the date that is 

7 18 months after such date, and’’. 

8 (c) CLARIFICATIONS.— 

9 (1) STEEL INDUSTRY FUEL.—Section 

10 45(c)(7)(C)(i)(I) of such Code is amended by insert11 ing ‘‘, or a blend of coal and petroleum coke, or 

12 other coke feedstock’’ after ‘‘on coal’’. 

13 (2) OWNERSHIP INTEREST.—Section 45(d)(8) 

14 of such Code is amended by adding at the end the 

15 following new flush sentence: 

16 ‘‘With respect to a facility producing steel industry 

17 fuel, no person (including a ground lessor, customer, 

18 supplier, or technology licensor) shall be treated as 

19 having an ownership interest in the facility or as 

20 otherwise entitled to the credit allowable under this 

21 section with respect to such facility solely because 

22 such person’s rent, license fee, or other entitlement 

23 to net payments from the owner of such facility is 

24 measured by a fixed dollar amount or a fixed 


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1 amount per ton, or otherwise determined without re2 gard to the profit or loss of such facility.’’. 

3 (3) PRODUCTION AND SALE.—Section 

4 45(e)(8)(D) of such Code, as amended by subsection 

5 (a)(2), is amended by redesignating clause (iii) as 

6 clause (iv) and by inserting after clause (ii) the fol7 lowing new clause: 

8 ‘‘(iii) PRODUCTION AND SALE.—The 

9 owner of a facility producing steel industry 

10 fuel shall be treated as producing and sell11 ing steel industry fuel where that owner 

12 manufactures such steel industry fuel from 

13 coal, a blend of coal and petroleum coke, 

14 or other coke feedstock to which it has 

15 title. The sale of such steel industry fuel 

16 by the owner of the facility to a person 

17 who is not the owner of the facility shall 

18 not fail to qualify as a sale to an unrelated 

19 person solely because such purchaser may 

20 also be a ground lessor, supplier, or cus21 tomer.’’. 

22 (d) ELECTION TO INCREASE CREDIT IN LIEU OF

23 STEEL INDUSTRY FUEL DEDUCTIONS.—Section 45(e)(8) 

24 of such Code is amended by adding at the end the fol25 lowing new subparagraph: 


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1 ‘‘(E) ELECTION FOR INCREASED CREDIT

2 IN LIEU OF DEDUCTIONS FOR STEEL INDUSTRY

3 FUEL.—In the case of a taxpayer who produces 

4 steel industry fuel— 

5 ‘‘(i) IN GENERAL.—At the election of 

6 the taxpayer— 

7 ‘‘(I) no deduction shall be al8 lowed with respect to expenses made 

9 in connection with the production and 

10 sale of steel industry fuel for such 

11 taxable year which are otherwise de12 ductible under this chapter (deter13 mined without regard to this subpara14 graph), 

15 ‘‘(II) no expense made in connec16 tion with the production of and sale of 

17 steel industry fuel which is otherwise 

18 chargeable to capital account in such 

19 taxable year shall be so charged, and 

20 ‘‘(III) the credit determined 

21 under this section (without regard to 

22 this subparagraph) for such taxable 

23 year shall be increased by an amount 

24 equal to the product of the sum of the 

25 amounts to which subclauses (I) and 


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1 (II) apply and the maximum rate of 

2 tax applicable under section 1 or 

3 11(b), as applicable to the taxpayer in 

4 such taxable year. 

5 ‘‘(ii) APPLICATION TO PARTNERSHIPS

6 AND S CORPORATIONS.—In the case of a 

7 partnership or S corporation, the election 

8 shall be made at the partnership or S cor9 poration level. 

10 ‘‘(iii) ELECTION.—An election under 

11 this subparagraph for any taxable year 

12 shall be made not later than the time for 

13 filing the return of tax for such year (in14 cluding extensions), in such manner as the 

15 Secretary may prescribe. Such an election, 

16 once made, shall be irrevocable.’’. 

17 (e) SPECIFIED CREDIT FOR PURPOSES OF ALTER18 NATIVE MINIMUM TAX EXCLUSION.—Section 

19 38(c)(4)(B)(iv)(II) of such Code is amended by inserting 

20 ‘‘(in the case of a refined coal production facility pro21 ducing steel industry fuel, during the credit period set 

22 forth in section 45(e)(8)(D)(ii)(II))’’ after ‘‘service’’. 

23 (f) APPLICATION OF CERTAIN RULES TO STEEL IN24 DUSTRY FUEL.— 


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1 (1) ACTIVITY NOT ENGAGED IN FOR PROFIT.— 

2 Section 183 of such Code is amended by adding at 

3 the end the following new subsection: 

4 ‘‘(f) EXCEPTION.—This section shall not apply to any 

5 deduction with respect to the production of steel industry 

6 fuel (as defined in section 45(c)(7)(C)).’’. 

7 (2) APPLICATION OF ECONOMIC SUBSTANCE

8 DOCTRINE.— 

9 (A) IN GENERAL.—Section 7701(o) of 

10 such Code is amended by adding at the end the 

11 following new paragraph: 

12 ‘‘(6) NON-APPLICATION TO STEEL INDUSTRY

13 FUEL.—The economic substance doctrine shall not 

14 apply to any transaction to the extent such trans15 action relates to steel industry fuel (as defined in 

16 section 45(c)(7)(C)).’’. 

17 (B) CONFORMING AMENDMENT.—Section 

18 7701(o)(5)(C) of such Code is amended by 

19 striking ‘‘The determination’’ and inserting 

20 ‘‘Except as provided in paragraph (6), the de21 termination’’. 

22 (g) EFFECTIVE DATES.— 

23 (1) IN GENERAL.—Except as provided in para24 graph (2), the amendments made by this section 

25 shall apply to fuel produced and sold after the date 


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1 of the enactment of this Act, in taxable years ending 

2 after such date. 

3 (2) APPLICATION OF ECONOMIC SUBSTANCE

4 RULES.—The amendments made by subsection (f)(2) 

5 shall apply to transactions entered into after the 

6 date of the enactment of this Act. 

Æ 


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