I 
116TH CONGRESS 
1ST SESSION H. R. 4735 
To amend the Internal Revenue Code of 1986 to allow a credit for certain 
facilities that remediate and reclaim coal refuse sites in the United 
States by producing electricity from coal refuse. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 18, 2019 
Mr. MEUSER (for himself and Mr. CARTWRIGHT) 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 for certain facilities that remediate and reclaim 
coal refuse sites in the United States by producing elec-
tricity from coal refuse. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Mine Affected Commu-
nity Energy and Environment Act’’. 
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SEC. 2. CREDIT FOR COAL REFUSE USED TO PRODUCE 
ELECTRICITY AT CERTAIN FACILITIES. 
(a) IN GENERAL.—Section 45(e) of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new paragraph: 
‘‘(12) COAL REFUSE FACILITIES.— 
‘‘(A) 
DETERMINATION
OF
CREDIT 
AMOUNT.— 
‘‘(i) IN GENERAL.—The credit deter-
mined under this section (without regard 
to this subparagraph) for any taxable year 
shall be an amount equal to the product 
of— 
‘‘(I) $12.50, multiplied by 
‘‘(II) the tons of coal refuse used 
at a coal refuse facility to produce 
electricity at such facility during the 
10-year period beginning on January 
1, 2019. 
‘‘(ii) EXCLUSION.—Other than coal 
refuse removed from sites that are subject 
to the current remediation and reclamation 
activities of a coal refuse facility, coal 
refuse generated from sites where coal is 
mined after the effective date of this legis-
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lation is excluded from the determination 
of the credit amount in this section. 
‘‘(B) ELIGIBLE RECIPIENT.—For purposes 
of this subsection, the term ‘eligible recipient’ 
means, with respect to a coal refuse facility for 
a taxable year, a taxpayer who, for each ton of 
eligible coal refuse described in subparagraph 
(A) for such taxpayer for the previous taxable 
year, contributed $0.50 to the State in which 
such facility is located for restoring riparian 
buffers within the communities where the coal 
refuse is being removed or consumed, or in 
communities located downstream of that activ-
ity, for the purpose of improving water quality 
downstream of the communities affected by 
such coal refuse and reducing carbon emissions 
in such communities. 
‘‘(C) CREDIT ELIGIBILITY.—In the case of 
a facility described in subparagraph (A), if the 
owner of such facility is not the producer of the 
electricity, the person eligible for the credit de-
termined under subparagraph (A) shall be the 
lessee or the operator of such facility. 
‘‘(D) APPLICATION
OF
RULES.—Rules 
similar to the rules of paragraphs (1), (3), and 
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(5) of this subsection shall apply for purposes 
of determining the amount of any increase 
under this paragraph.’’. 
(b) COAL REFUSE FACILITY DEFINED.—Section 
45(d) of such Code is amended by adding at the end the 
following new paragraph: 
‘‘(12) COAL REFUSE FACILITY.—In the case of 
a facility using coal refuse to produce electricity, the 
term ‘coal refuse facility’ means any facility— 
‘‘(A) which was originally placed in service 
prior to January 1, 2019, and combusts coal 
refuse or fuel composed of at least 75 percent 
coal refuse by BTU energy value, and 
‘‘(B) uses— 
‘‘(i) at a minimum, a circulating fluid-
ized bed combustion unit or a pressurized 
fluidized bed combustion unit, equipped 
with a limestone injection system for con-
trol of acid gases, and 
‘‘(ii) a fabric filter particulate emis-
sion control system.’’. 
(c) COAL REFUSE.—Section 45(c) of such Code is 
amended by adding at the end the following new para-
graph: 
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‘‘(11) COAL REFUSE.—The term ‘coal refuse’ 
means any waste coal, rock, shale, slurry, culm, gob, 
boney, slate, clay, and related materials associated 
with or near a coal seam that are either brought 
aboveground or otherwise removed from a coal mine 
in the process of mining coal or that are separated 
from coal during the cleaning or preparation oper-
ations. Such term includes underground development 
wastes, coal processing wastes and excess spoil, but 
does not include overburden from surface mining ac-
tivities.’’. 
(d) ALLOWANCE OF CREDIT AGAINST ALTERNATIVE 
MINIMUM TAX.—Section 38(c)(4)(B)(v) of such Code is 
amended by inserting ‘‘or section 45(e)(12) (relating to 
coal refuse facilities)’’ before the comma at the end. 
(e) CREDIT REFUNDABLE.—For purposes of this 
title, the credit allowed by reason of this section shall be 
treated as a credit allowed under subpart C (and not this 
subpart). 
(f) PASSIVE ACTIVITY LOSSES.—Section 469(d) of 
the Internal Revenue Code of 1986 is amended by adding 
to section 469(d)(2)(A)(ii) (other than section 27 ‘‘and 
section 45(e)(12))’’. 
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(g) CREDIT MADE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38 of the Internal 
Revenue Code of 1986 is amended by— 
(1) striking ‘‘plus’’ at the end of paragraph 
(31); 
(2) striking the period at the end of paragraph 
(32) and inserting ‘‘, plus’’; and 
(3) adding at the end the following new para-
graph: 
‘‘(33) the coal refuse facility credit determined 
under section 45(e)(12).’’. 
(h) ADVANCE PAYMENT OF CREDIT.—Subchapter B 
of chapter 65 of such Code is amended by adding at the 
end the following new section: 
‘‘SEC. 6433. ELECTIVE PAYMENT FOR COAL REFUSE FACILI-
TIES. 
‘‘(a) IN GENERAL.—Any person electing the applica-
tion of this section with respect to any eligible coal refuse 
facility shall be treated as making a payment against the 
tax imposed by subtitle A for the taxable year equal to 
the amount of the credit that would be determined under 
section 45(e)(12) for such facility for such year. Except 
as provided in subsection (b), such payment shall be treat-
ed as made on the later of the due date of the return of 
such tax or the date on which such return is filed. 
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‘‘(b) QUARTERLY ELECTION.— 
‘‘(1) IN GENERAL.—At the close of any quarter 
of the taxable year of any taxpayer entitled to a 
credit with respect to an eligible coal refuse facility, 
if a claim is filed under this section, the Secretary 
shall pay (without interest) an amount equal to the 
credit determined under section 45 for such quarter, 
calculated as if such credit were determined on a 
quarterly basis. 
‘‘(2) TIME FOR FILING CLAIM.—No claim filed 
under this subsection (b) shall be allowed unless 
filed during the first quarter following the last quar-
ter included in the claim. 
‘‘(3) PAYMENT
OF
CLAIM.—Notwithstanding 
paragraph (1) of this subsection, if the Secretary 
has not paid pursuant to a claim filed under this 
section within 45 days of the date of the filing of 
such claim (20 days in the case of an electronic 
claim), the claim shall be paid with interest from 
such date determined by using the overpayment rate 
and method under section 6621. 
‘‘(c) SPECIAL RULES FOR PARTNERSHIPS AND S 
CORPORATIONS.—In the case of an eligible coal refuse fa-
cility owned or used by a partnership or an S corpora-
tion— 
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‘‘(1) the elections under subsection (a) or (b) 
may be made only by such partnership or S corpora-
tion, 
‘‘(2) such partnership or S corporation shall be 
treated as making the payment referred to in sub-
section (a) only to the extent of the proportionate 
share of such partnership or S corporation as is 
owned by persons who would be treated as making 
such payment if the property were owned or used by 
such persons, and 
‘‘(3) the return required to be made by such 
partnership or S corporation under section 6031 or 
6037 (as the case may be) shall be treated as a re-
turn of tax for purposes of subsection (a). 
‘‘(d) COORDINATION WITH PRODUCTION CREDITS.— 
In the case of any eligible coal refuse facility with respect 
to which an election is made under subsection (a) or (b), 
no credit shall be determined under section 45 with re-
spect to such facility for the taxable year in which such 
election is made. 
‘‘(e) ELIGIBLE COAL REFUSE FACILITY.—The term 
‘eligible coal refuse facility’ means a facility eligible for 
a credit during the taxable year pursuant to section 
45(d)(12). 
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‘‘(f) EXCLUSION FROM GROSS INCOME.—Any credit 
or refund allowed or made by reason of this section shall 
not be includible in gross income or alternative minimum 
taxable income. 
‘‘(g) REGULATIONS.—The Secretary may by regula-
tions prescribe the conditions, not inconsistent with the 
provisions of this section, under which payments may be 
made under this section.’’. 
(i) EFFECTIVE DATE.—The amendments made by 
this section shall apply to coal refuse used to produce elec-
tricity after December 31, 2018, in taxable years begin-
ning after such date. 
Æ 
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