Electricity Reliability and Fuel Security Act

To amend the Internal Revenue Code of 1986 to allow a credit against tax for coal-powered electric generation units. 1. Short title This Act may be cited as the Electricity Reliability and Fuel Security Act 2. Coal-powered electric generation unit credit (a) Federal tax credit for coal-Powered electric generation units Subpart D of part IV of subchapter A of chapter 1 45T. Coal-powered electric generation unit credit (a) In general For purposes of section 38, in the case of a taxpayer who owns or leases a coal-powered electric generation unit, the coal-powered electric generation unit credit determined under this section for a taxable year shall be an amount equal to the lesser of 30 percent of qualified expenses paid or incurred by such taxpayer in such year or the product of— (1) $13, multiplied by (2) the nameplate capacity rating in kilowatts of such unit. (b) Coal-Powered electric generation unit For purposes of this section, the term coal-powered electric generation unit (c) Qualified expenses For purposes of this section, the term qualified expenses (d) Transfer of credit (1) In general With respect to a credit under subsection (a) for any taxable year, a taxpayer may elect to transfer all or any portion of such credit to any eligible project partner as specified in such election and such eligible project partner, not the taxpayer, shall be entitled to claim the credit for such taxable year. (2) Election to transfer The taxpayer may elect to transfer all or any portion of the credit to an eligible project partner by attaching a statement to the taxpayer’s tax return for the taxable year in which the qualified expenses were paid or incurred, providing such information as is necessary for the Secretary to adequately identify the eligible project partner and the amount of the credit being transferred. (3) Application to qualified public entities (A) In general For purposes of this subsection, the term taxpayer (B) Qualified public entity The term qualified public entity (i) a Federal, State, or local government entity, or any political subdivision, agency, or instrumentality thereof, (ii) a mutual or cooperative electric company described in section 501(c)(12) or 1381(a)(2), or (iii) a not-for-profit electric utility which had or has received a loan or loan guarantee under the Rural Electrification Act of 1936. (4) Eligible project partner With respect to coal-powered electric generation unit, the term eligible project partner (A) is responsible for operating, maintaining, or repairing such unit, (B) participates in the provision, including transportation, of coal or other materials and supplies to such unit, (C) provides financing for the construction, expansion, repair, or operation of such unit, or (D) leases such unit. (5) Special rules (A) Application to partnerships In the case of a credit under subsection (a) which is determined at the partnership level, the term eligible project partner (B) Taxable year in which credit taken into account In the case of any credit (or portion thereof) with respect to which an election is made under paragraph (2), such credit shall be taken into account in the first taxable year of the eligible project partner ending with, or after, the taxpayer's taxable year with respect to which the credit was determined. (C) Treatment of transfer under private use rules For purposes of section 141(b)(1), any benefit derived by an eligible project partner in connection with an election under this subsection shall not be taken into account as a private business use. (e) Basis adjustment For purposes of this subtitle, if a credit is allowed under this section with respect to any coal-powered electric generation unit, the basis, if any, of such property shall be reduced by the amount of the credit so allowed. (f) Termination This section shall apply to taxable years beginning after December 31, 2017, and ending before January 1, 2023. . (b) Conforming amendment Section 501(c)(12)(I) is amended by inserting or 45T(d)(1) section 45J(e)(I) (c) Credit To be part of general business credit (1) In general Section 38(b) plus , plus (38) the coal-powered electric generation unit credit determined under section 45T(a). . (2) Credit allowed against alternative minimum tax Subparagraph (B) of section 38(c)(4) (A) by redesignating clauses (x), (xi), and (xii) as clauses (xi), (xii), and (xiii), respectively; and (B) by inserting after clause (ix) the following new clause: (x) the credit determined under section 45T, . (d) Clerical amendment The table of sections for subpart D of part IV of subchapter A of chapter 1 is amended by adding at the end the following new item: Sec. 45T. Coal-powered electric generation unit credit. .

Summary: Electricity Reliability and Fuel Security Act This bill amends the Internal Revenue Code to allow a tax credit through 2022 for a portion of the expenses for the operation or maintenance of a coal-powered electric generation unit, excluding expenses for coal. The credit applies to taxpayers who own or lease an electric generation unit that uses coal to produce at least 75% of the electricity produced by the unit. Taxpayers and certain public entities may transfer the credit to an eligible project partner. An "eligible project partner" is a person who: is responsible for operating, maintaining, or repairing the unit; participates in the provision, including transportation, of coal or other materials and supplies to the unit; provides financing for the construction, expansion, repair, or operation of the unit; or leases the unit.