I 

115TH CONGRESS 

2D SESSION H. R. 5270 

To amend the Internal Revenue Code of 1986 to allow a credit against 

tax for coal-powered electric generation units. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 14, 2018 

Mr. BUCSHON (for himself, Mr. BARTON, Mr. CRAMER, Mr. BARR, Mr. JENKINS of West Virginia, and Mr. MCKINLEY) 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 allow a 

credit against tax for coal-powered electric generation units. 

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 ‘‘Electricity Reliability 

5 and Fuel Security Act’’. 

6 SEC. 2. COAL-POWERED ELECTRIC GENERATION UNIT 

7 CREDIT. 

8 (a) FEDERAL TAX CREDIT FOR COAL-POWERED

9 ELECTRIC GENERATION UNITS.—Subpart D of part IV 

10 of subchapter A of chapter 1 of the Internal Revenue Code 


dlhill on DSK3GLQ082PROD with BILLS
2 

•HR 5270 IH

1 of 1986 is amended by adding at the end the following 

2 new section: 

3 ‘‘SEC. 45T. COAL-POWERED ELECTRIC GENERATION UNIT 

4 CREDIT. 

5 ‘‘(a) IN GENERAL.—For purposes of section 38, in 

6 the case of a taxpayer who owns or leases a coal-powered 

7 electric generation unit, the coal-powered electric genera8 tion unit credit determined under this section for a taxable 

9 year shall be an amount equal to the lesser of 30 percent 

10 of qualified expenses paid or incurred by such taxpayer 

11 in such year or the product of— 

12 ‘‘(1) $13, multiplied by 

13 ‘‘(2) the nameplate capacity rating in kilowatts 

14 of such unit. 

15 ‘‘(b) COAL-POWERED ELECTRIC GENERATION

16 UNIT.—For purposes of this section, the term ‘coal-pow17 ered electric generation unit’ means an electric generation 

18 unit (as defined in section 48A(c)(6)) that uses coal to 

19 produce not less than 75 percent of the electricity pro20 duced by such unit. 

21 ‘‘(c) QUALIFIED EXPENSES.—For purposes of this 

22 section, the term ‘qualified expenses’ means amounts paid 

23 or incurred for the operation or maintenance of a coal24 powered electric generation unit, other than amounts paid 

25 or incurred for coal. 


dlhill on DSK3GLQ082PROD with BILLS
3 

•HR 5270 IH

1 ‘‘(d) TRANSFER OF CREDIT BY CERTAIN PUBLIC EN2 TITIES.— 

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

4 under subsection (a) for any taxable year— 

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

6 taxpayer (but for this paragraph), and 

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

8 this paragraph for such taxable year with re9 spect to all (or any portion specified in such 

10 election) of such credit, the eligible project part11 ner specified in such election, and not the quali12 fied public entity, shall be treated as the tax13 payer for purposes of this title with respect to 

14 such credit (or such portion thereof). 

15 ‘‘(2) DEFINITIONS.—For purposes of this sub16 section— 

17 ‘‘(A) QUALIFIED PUBLIC ENTITY.—The 

18 term ‘qualified public entity’ means— 

19 ‘‘(i) a Federal, State, or local govern20 ment entity, or any political subdivision, 

21 agency, or instrumentality thereof, 

22 ‘‘(ii) a mutual or cooperative electric 

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

24 1381(a)(2), or 


dlhill on DSK3GLQ082PROD with BILLS
4 

•HR 5270 IH

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

2 which had or has received a loan or loan 

3 guarantee under the Rural Electrification 

4 Act of 1936. 

5 ‘‘(B) ELIGIBLE PROJECT PARTNER.—With 

6 respect to coal-powered electric generation unit, 

7 the term ‘eligible project partner’ means any 

8 person who— 

9 ‘‘(i) is responsible for operating, main10 taining, or repairing such unit, 

11 ‘‘(ii) participates in the provision, in12 cluding transportation, of coal to such 

13 unit, 

14 ‘‘(iii) provides financing for the con15 struction or operation of such unit, or 

16 ‘‘(iv) leases such unit. 

17 ‘‘(3) SPECIAL RULES.— 

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

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

20 is determined at the partnership level— 

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

22 a qualified public entity shall be treated as 

23 the taxpayer with respect to such entity’s 

24 distributive share of such credit, and 


dlhill on DSK3GLQ082PROD with BILLS
5 

•HR 5270 IH

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

2 shall include any partner of the partner3 ship. 

4 ‘‘(B) TAXABLE YEAR IN WHICH CREDIT

5 TAKEN INTO ACCOUNT.—In the case of any 

6 credit (or portion thereof) with respect to which 

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

8 credit shall be taken into account in the first 

9 taxable year of the eligible project partner end10 ing with, or after, the qualified public entity’s 

11 taxable year with respect to which the credit 

12 was determined. 

13 ‘‘(C) TREATMENT OF TRANSFER UNDER

14 PRIVATE USE RULES.—For purposes of section 

15 141(b)(1), any benefit derived by an eligible 

16 project partner in connection with an election 

17 under this subsection shall not be taken into ac18 count as a private business use. 

19 ‘‘(e) BASIS ADJUSTMENT.—For purposes of this sub20 title, if a credit is allowed under this section with respect 

21 to any coal-powered electric generation unit, the basis of 

22 such property shall be reduced by the amount of the credit 

23 so allowed. 


dlhill on DSK3GLQ082PROD with BILLS
6 

•HR 5270 IH

1 ‘‘(f) TERMINATION.—This section shall apply to tax2 able years beginning after December 31, 2017, and ending 

3 before January 1, 2023.’’. 

4 (b) CONFORMING AMENDMENT.—Section 

5 501(c)(12)(I) is amended by inserting ‘‘or 45T(d)(1)’’ 

6 after ‘‘section 45J(e)(I)’’. 

7 (c) CREDIT ALLOWED AGAINST ALTERNATIVE MIN8 IMUM TAX.—Subparagraph (B) of section 38(c)(4) of the 

9 Internal Revenue Code of 1986 is amended— 

10 (1) by redesignating clauses (x), (xi), and (xii) 

11 as clauses (xi), (xii), and (xiii), respectively; and 

12 (2) by inserting after clause (ix) the following 

13 new clause: 

14 ‘‘(x) the credit determined under sec15 tion 45T,’’. 

16 (d) CLERICAL AMENDMENT.—The table of sections 

17 for subpart D of part IV of subchapter A of chapter 1 

18 is amended by adding at the end the following new item: 

‘‘Sec. 45T. Coal-powered electric generation unit credit.’’. 

Æ 


dlhill on DSK3GLQ082PROD with BILLS