ACCESS 45Q Act

To amend the Internal Revenue Code of 1986 to extend and allow an elective payment of the tax credit for carbon oxide sequestration. 1. Short title This Act may be cited as the Accelerating Carbon Capture and Extending Secure Storage through 45Q Act ACCESS 45Q Act 2. Extension of credit for carbon oxide sequestration Section 45Q(d)(1) January 1, 2026 January 1, 2036 3. Elective payment for carbon oxide sequestration (a) In general Subchapter B of chapter 65 6431. Elective payment for carbon oxide sequestration (a) In general In the case of a taxpayer making an election (at such time and in such manner as the Secretary may provide) under this section with respect to any portion of a carbon oxide sequestration credit which would (without regard to this section) be determined under section 45Q with respect to such taxpayer, such taxpayer shall be treated as making a payment against the tax imposed by subtitle A for the taxable year equal to the amount of such portion. (b) Limitation The portion of a carbon oxide sequestration credit with respect to which a taxpayer may make an election under this section shall not exceed the portion of such credit which is attributable to property originally placed in service after the date of the enactment of this section. (c) Timing The payment described in subsection (a) shall be treated as made on the later of the due date of the return of tax for such taxable year or the date on which such return is filed. (d) Exclusion from gross income Gross income of the taxpayer shall be determined without regard to this section. (e) Denial of double benefit Solely for purposes of section 38, in the case of a taxpayer making an election under this section, the carbon oxide sequestration credit determined under section 45Q shall be reduced by the amount of the portion of such credit with respect to which the taxpayer makes such election. (f) Special rules (1) In the case of a taxpayer making an election under this subsection, the credit subject to such an election shall be determined notwithstanding— (A) section 50(b)(3); and (B) section 50(b)(4) for an entity described in 50(b)(4)(A)(i). (2) In the case of a mutual or cooperative electric company described in this paragraph or an organization described in section 1381(a)(2), any income received or accrued in connection with the credit under this section shall be treated as an amount collected from members for the sole purpose of meeting losses and expenses. . (b) Clerical amendment The table of sections for subchapter B of chapter 65 of such Code is amended by adding at the end the following new item: Sec. 6431. Elective payment for carbon oxide sequestration. . (c) Effective date The amendments made by this section shall apply to credits determined for taxable years ending after the date of the enactment of this Act. 4. Allowance of the carbon oxide sequestration credit against the base erosion minimum tax (a) In general Section 59A(b) (1) by inserting and the carbon dioxide sequestration credit determined under section 45Q section 41(a) (2) by inserting (other than the credit allowed under section 38 for the taxable year which is properly allocable to the credit for carbon oxide sequestration determined under section 45Q) credits allowed under this chapter (b) Effective date The amendments made by this section shall take effect as if included in section 41119 of the Bipartisan Budget Act of 2018.

Summary: Accelerating Carbon Capture and Extending Secure Storage through 45Q Act or the ACCESS 45Q Act This bill extends the tax credit for carbon oxide sequestration through 2035 and allows taxpayers an election to receive payments in lieu of the credit. The bill also permits an allowance of the carbon oxide tax credit against the base erosion minimum tax. The base erosion minimum tax is a tax on large corporation that is calculated after adding back to taxable income certain deductible payments made to related foreign persons.