II 

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. 

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 ‘‘Save America’s Clean 

5 Energy Jobs Act’’. 


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1 SEC. 2. DIRECT PAYMENT OF RENEWABLE ELECTRICITY 

2 PRODUCTION CREDIT AND ENERGY CREDIT. 

3 (a) RENEWABLE ELECTRICITY PRODUCTION CRED4 IT.— 

5 (1) IN GENERAL.—Section 45(e) of the Internal 

6 Revenue Code of 1986 is amended by adding at the 

7 end the following new paragraph: 

8 ‘‘(12) ELECTION FOR DIRECT PAYMENT.— 

9 ‘‘(A) IN GENERAL.—In the case of any ap10 plicable facility, the amount of any credit deter11 mined under subsection (a) with respect to such 

12 facility for any taxable year during the period 

13 described in paragraph (2)(A)(ii) of such sub14 section shall, at the election of the taxpayer, be 

15 treated as a payment equal to such amount 

16 which is made by the taxpayer against the tax 

17 imposed by chapter 1 for such taxable year. 

18 ‘‘(B) APPLICABLE FACILITY.—For pur19 poses of this paragraph, the term ‘applicable fa20 cility’ means a qualified facility— 

21 ‘‘(i) the construction of which began 

22 before January 1, 2023, and 

23 ‘‘(ii) which is originally placed in serv24 ice after March 25, 2021. 

25 ‘‘(C) FORM AND EFFECT OF ELECTION.— 


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1 ‘‘(i) IN GENERAL.—An election under 

2 subparagraph (A) shall be made in such 

3 manner as the Secretary may prescribe 

4 and not later than the due date (including 

5 extensions) for the return of tax for the 

6 taxable year in which the qualified facility 

7 is originally placed in service. Such elec8 tion, once made, shall be irrevocable with 

9 respect to such qualified facility for the pe10 riod described in subsection (a)(2)(A)(ii). 

11 ‘‘(ii) EFFECT.—Any election under 

12 subparagraph (A) shall, for any taxable 

13 year during the period described in sub14 section (a)(2)(A)(ii), reduce the amount of 

15 the credit which would (but for this para16 graph) be allowable under this section with 

17 respect to such qualified facility for such 

18 taxable year to zero. 

19 ‘‘(D) APPLICATION TO PARTNERSHIPS AND

20 S CORPORATIONS.—In the case of a partnership 

21 or S corporation which makes an election under 

22 subparagraph (A)— 

23 ‘‘(i) such subparagraph shall apply 

24 with respect to such partnership or cor25 poration without regard to the fact that no 


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1 tax is imposed by chapter 1 on such part2 nership or corporation, and 

3 ‘‘(ii)(I) in the case of a partnership, 

4 each partner’s distributive share of the 

5 credit determined under subsection (a) 

6 with respect to the qualified facility shall 

7 be deemed to be zero, and 

8 ‘‘(II) in the case of a S corporation, 

9 each shareholder’s pro rata share of the 

10 credit determined under subsection (a) 

11 with respect to the qualified facility shall 

12 be deemed to be zero.’’. 

13 (2) EFFECTIVE DATE.—The amendment made 

14 by this subsection shall apply to facilities placed in 

15 service after March 25, 2021. 

16 (b) ENERGY CREDIT.— 

17 (1) IN GENERAL.—Section 48 of the Internal 

18 Revenue Code of 1986 is amended by adding at the 

19 end the following new subsection: 

20 ‘‘(e) ELECTION FOR DIRECT PAYMENT.— 

21 ‘‘(1) IN GENERAL.—In the case of any applica22 ble property placed in service during any taxable 

23 year, the amount of any credit determined under 

24 subsection (a) with respect to such property for such 

25 taxable year shall, at the election of the taxpayer, be 


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1 treated as a payment equal to such amount which is 

2 made by the taxpayer against the tax imposed by 

3 chapter 1 for such taxable year (regardless of wheth4 er such tax would have been on such taxpayer). 

5 ‘‘(2) APPLICABLE PROPERTY.—For purposes of 

6 this subsection, the term ‘applicable property’ means 

7 any energy property (including any qualified prop8 erty which is treated as energy property pursuant to 

9 subsection (a)(5))— 

10 ‘‘(A) the construction of which began be11 fore January 1, 2023, and 

12 ‘‘(B) which is originally placed in service 

13 after March 25, 2021. 

14 Such term shall not include any property if a credit 

15 for qualified progress expenditures has been allowed 

16 with respect to such property before the date of any 

17 election under paragraph (1). 

18 ‘‘(3) FORM AND EFFECT OF ELECTION.— 

19 ‘‘(A) IN GENERAL.—An election under 

20 paragraph (1) shall be made in such manner as 

21 the Secretary may prescribe and not later than 

22 the due date (including extensions) for the re23 turn of tax for the taxable year in which the ap24 plicable property is originally placed in service. 


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1 Such election, once made, shall be irrevocable 

2 with respect to the applicable property. 

3 ‘‘(B) EFFECT.—Any election under para4 graph (1) shall reduce the amount of the credit 

5 which would (but for this subsection) be allow6 able under this section with respect to such ap7 plicable property for the taxable year in which 

8 such property is placed in service to zero. 

9 The reduction in credit under subparagraph (B) 

10 shall not be taken into account for purposes of 

11 applying section 50(a) with respect to such 

12 property. 

13 ‘‘(4) APPLICATION TO PARTNERSHIPS AND S

14 CORPORATIONS.—Rules similar to the rules of sec15 tion 45(e)(12)(D) shall apply for purposes of this 

16 subsection. 

17 ‘‘(5) REGULATIONS AND GUIDANCE.—The Sec18 retary shall prescribe such regulations and guidance 

19 as may be necessary to carry out this subsection, in20 cluding regulations or guidance to relating to report21 ing on the use of applicable property for purposes of 

22 administering the recapture under section 50(a) of 

23 any refund made by reason of this section.’’. 


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1 (2) EFFECTIVE DATE.—The amendment made 

2 by this subsection shall apply to property placed in 

3 service after March 25, 2021. 

4 (c) CARBON OXIDE SEQUESTRATION CREDIT.— 

5 (1) IN GENERAL.—Section 45Q(f) of the Inter6 nal Revenue Code of 1986 is amended by adding at 

7 the end the following new paragraph: 

8 ‘‘(8) ELECTION FOR DIRECT PAYMENT.— 

9 ‘‘(A) IN GENERAL.—In the case of any ap10 plicable equipment, the amount of any credit 

11 determined under subsection (a) with respect to 

12 any qualified carbon oxide captured by such 

13 equipment for any taxable year during the ap14 plicable period shall, at the election of the tax15 payer, be treated as a payment equal to such 

16 amount which is made by the taxpayer against 

17 the tax imposed by chapter 1 for such taxable 

18 year. 

19 ‘‘(B) APPLICABLE EQUIPMENT.—For pur20 poses of this paragraph, the term ‘applicable 

21 equipment’ means carbon capture equipment— 

22 ‘‘(i) which is originally placed in serv23 ice after March 25, 2021, at a qualified fa24 cility the construction of which began be25 fore January 1, 2023, and 


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1 ‘‘(ii)(I) the construction of which 

2 began before January 1, 2023, or 

3 ‘‘(II) which was placed in service at a 

4 qualified facility the original planning and 

5 design of which included such equipment. 

6 ‘‘(C) APPLICABLE PERIOD.—For purposes 

7 of this paragraph, the term ‘applicable period’ 

8 means the 12-year period beginning on the date 

9 that the applicable equipment was originally 

10 placed in service. 

11 ‘‘(D) FORM AND EFFECT OF ELECTION.— 

12 ‘‘(i) IN GENERAL.—An election under 

13 subparagraph (A) shall be made in such 

14 manner as the Secretary may prescribe 

15 and not later than the due date (including 

16 extensions) for the return of tax for the 

17 taxable year in which the applicable equip18 ment is originally placed in service. Such 

19 election, once made, shall be irrevocable 

20 with respect to such applicable equipment 

21 for the applicable period. 

22 ‘‘(ii) EFFECT.—Any election under 

23 subparagraph (A) shall, for any taxable 

24 year during the applicable period, reduce 

25 the amount of the credit which would (but 


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1 for this paragraph) be allowable under this 

2 section with respect to such applicable 

3 equipment for such taxable year to zero. 

4 ‘‘(E) APPLICATION TO PARTNERSHIPS AND

5 S CORPORATIONS.—In the case of a partnership 

6 or S corporation which makes an election under 

7 subparagraph (A)— 

8 ‘‘(i) such subparagraph shall apply 

9 with respect to such partnership or cor10 poration without regard to the fact that no 

11 tax is imposed by chapter 1 on such part12 nership or corporation, and 

13 ‘‘(ii)(I) in the case of a partnership, 

14 each partner’s distributive share of the 

15 credit determined under subsection (a) 

16 with respect to the qualified carbon oxide 

17 captured using such applicable equipment 

18 shall be deemed to be zero, and 

19 ‘‘(II) in the case of a S corporation, 

20 each shareholder’s pro rata share of the 

21 credit determined under subsection (a) 

22 with respect to the qualified carbon oxide 

23 captured using such applicable equipment 

24 shall be deemed to be zero.’’. 


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1 (2) EFFECTIVE DATE.—The amendment made 

2 by this subsection shall apply to property placed in 

3 service after March 25, 2021. 

Æ 


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