165 
producer or a party related to such coal producer 
to be exported or shipped. 
(B) SPECIAL
RULES
FOR
CERTAIN
TAX-
PAYERS.—For purposes of this section— 
(i) IN GENERAL.—If a coal producer or 
a party related to a coal producer has re-
ceived a judgment described in clause (iii), 
such coal producer shall be deemed to have 
established the export of coal to a foreign 
country or shipment of coal to a possession 
of the United States under subparagraph 
(A)(i). 
(ii) AMOUNT OF PAYMENT.—If a tax-
payer described in clause (i) is entitled to 
a payment under subparagraph (A), the 
amount of such payment shall be reduced by 
any amount paid pursuant to the judgment 
described in clause (iii). 
(iii) JUDGMENT DESCRIBED.—A judg-
ment is described in this subparagraph if 
such judgment— 
(I) is made by a court of com-
petent jurisdiction within the United 
States,
166 
(II) relates to the constitutionality 
of any tax paid on exported coal under 
section 4121 of the Internal Revenue 
Code of 1986, and 
(III) is in favor of the coal pro-
ducer or the party related to the coal 
producer. 
(2) EXPORTERS.—Notwithstanding subsections 
(a)(1) and (c) of section 6416 and section 6511 of the 
Internal Revenue Code of 1986, and a judgment de-
scribed in paragraph (1)(B)(iii) of this subsection, 
if— 
(A) an exporter establishes that such ex-
porter exported coal to a foreign country or 
shipped coal to a possession of the United States, 
or caused such coal to be so exported or shipped, 
(B) such exporter filed a tax return on or 
after October 1, 1990, and on or before the date 
of the enactment of this Act, and 
(C) such exporter files a claim for refund 
with the Secretary not later than the close of the 
30-day period beginning on the date of the enact-
ment of this Act, 
then the Secretary shall pay to such exporter an 
amount equal to $0.825 per ton of such coal exported
167 
by the exporter or caused to be exported or shipped, 
or caused to be exported or shipped, by the exporter. 
(b) LIMITATIONS.—Subsection (a) shall not apply with 
respect to exported coal if a settlement with the Federal 
Government has been made with and accepted by, the coal 
producer, a party related to such coal producer, or the ex-
porter, of such coal, as of the date that the claim is filed 
under this section with respect to such exported coal. For 
purposes of this subsection, the term ‘‘settlement with the 
Federal Government’’ shall not include any settlement or 
stipulation entered into as of the date of the enactment of 
this Act, the terms of which contemplate a judgment con-
cerning which any party has reserved the right to file an 
appeal, or has filed an appeal. 
(c) SUBSEQUENT REFUND PROHIBITED.—No refund 
shall be made under this section to the extent that a credit 
or refund of such tax on such exported or shipped coal has 
been paid to any person. 
(d) DEFINITIONS.—For purposes of this section— 
(1) COAL PRODUCER.—The term ‘‘coal producer’’ 
means the person in whom is vested ownership of the 
coal immediately after the coal is severed from the 
ground, without regard to the existence of any con-
tractual arrangement for the sale or other disposition 
of the coal or the payment of any royalties between
168 
the producer and third parties. The term includes any 
person who extracts coal from coal waste refuse piles 
or from the silt waste product which results from the 
wet washing (or similar processing) of coal. 
(2) EXPORTER.—The term ‘‘exporter’’ means a 
person, other than a coal producer, who does not have 
a contract, fee arrangement, or any other agreement 
with a producer or seller of such coal to export or 
ship such coal to a third party on behalf of the pro-
ducer or seller of such coal and— 
(A) is indicated in the shipper’s export dec-
laration or other documentation as the exporter 
of record, or 
(B) actually exported such coal to a foreign 
country or shipped such coal to a possession of 
the United States, or caused such coal to be so 
exported or shipped. 
(3) RELATED PARTY.—The term ‘‘a party related 
to such coal producer’’ means a person who— 
(A) is related to such coal producer through 
any degree of common management, stock owner-
ship, or voting control, 
(B) is related (within the meaning of sec-
tion 144(a)(3) of the Internal Revenue Code of 
1986) to such coal producer, or
169 
(C) has a contract, fee arrangement, or any 
other agreement with such coal producer to sell 
such coal to a third party on behalf of such coal 
producer. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Treasury or the Secretary’s designee. 
(e) TIMING OF REFUND.—With respect to any claim 
for refund filed pursuant to this section, the Secretary shall 
determine whether the requirements of this section are met 
not later than 180 days after such claim is filed. If the Sec-
retary determines that the requirements of this section are 
met, the claim for refund shall be paid not later than 180 
days after the Secretary makes such determination. 
(f) INTEREST.—Any refund paid pursuant to this sec-
tion shall be paid by the Secretary with interest from the 
date of overpayment determined by using the overpayment 
rate and method under section 6621 of the Internal Revenue 
Code of 1986. 
(g) DENIAL
OF DOUBLE BENEFIT.—The payment 
under subsection (a) with respect to any coal shall not ex-
ceed— 
(1) in the case of a payment to a coal producer, 
the amount of tax paid under section 4121 of the In-
ternal Revenue Code of 1986 with respect to such coal
170 
by such coal producer or a party related to such coal 
producer, and 
(2) in the case of a payment to an exporter, an 
amount equal to $0.825 per ton with respect to such 
coal exported by the exporter or caused to be exported 
by the exporter. 
(h) APPLICATION OF SECTION.—This section applies 
only to claims on coal exported or shipped on or after Octo-
ber 1, 1990, through the date of the enactment of this Act. 
(i) STANDING NOT CONFERRED.— 
(1) EXPORTERS.—With respect to exporters, this 
section shall not confer standing upon an exporter to 
commence, or intervene in, any judicial or adminis-
trative proceeding concerning a claim for refund by 
a coal producer of any Federal or State tax, fee, or 
royalty paid by the coal producer. 
(2) COAL PRODUCERS.—With respect to coal pro-
ducers, this section shall not confer standing upon a 
coal producer to commence, or intervene in, any judi-
cial or administrative proceeding concerning a claim 
for refund by an exporter of any Federal or State tax, 
fee, or royalty paid by the producer and alleged to 
have been passed on to an exporter.
171 
SEC. 115. TAX CREDIT FOR CARBON DIOXIDE SEQUESTRA-
TION. 
(a) IN GENERAL.—Subpart D of part IV of subchapter 
A of chapter 1 (relating to business credits) is amended by 
adding at the end the following new section: 
‘‘SEC. 45Q. CREDIT FOR CARBON DIOXIDE SEQUESTRATION. 
‘‘(a) GENERAL RULE.—For purposes of section 38, the 
carbon dioxide sequestration credit for any taxable year is 
an amount equal to the sum of— 
‘‘(1) $20 per metric ton of qualified carbon diox-
ide which is— 
‘‘(A) captured by the taxpayer at a quali-
fied facility, and 
‘‘(B) disposed of by the taxpayer in secure 
geological storage, and 
‘‘(2) $10 per metric ton of qualified carbon diox-
ide which is— 
‘‘(A) captured by the taxpayer at a quali-
fied facility, and 
‘‘(B) used by the taxpayer as a tertiary 
injectant in a qualified enhanced oil or natural 
gas recovery project. 
‘‘(b) QUALIFIED CARBON DIOXIDE.—For purposes of 
this section—
172 
‘‘(1) IN GENERAL.—The term ‘qualified carbon 
dioxide’ means carbon dioxide captured from an in-
dustrial source which— 
‘‘(A) would otherwise be released into the 
atmosphere as industrial emission of greenhouse 
gas, and 
‘‘(B) is measured at the source of capture 
and verified at the point of disposal or injection. 
‘‘(2) RECYCLED
CARBON
DIOXIDE.—The term 
‘qualified carbon dioxide’ includes the initial deposit 
of captured carbon dioxide used as a tertiary 
injectant. Such term does not include carbon dioxide 
that is re-captured, recycled, and re-injected as part 
of the enhanced oil and natural gas recovery process. 
‘‘(c) QUALIFIED FACILITY.—For purposes of this sec-
tion, the term ‘qualified facility’ means any industrial fa-
cility— 
‘‘(1) which is owned by the taxpayer, 
‘‘(2) at which carbon capture equipment is 
placed in service, and 
‘‘(3) which captures not less than 500,000 metric 
tons of carbon dioxide during the taxable year. 
‘‘(d) SPECIAL RULES AND OTHER DEFINITIONS.—For 
purposes of this section—
173 
‘‘(1) ONLY CARBON DIOXIDE CAPTURED AND DIS-
POSED
OF
OR
USED
WITHIN
THE
UNITED
STATES 
TAKEN INTO ACCOUNT.—The credit under this section 
shall apply only with respect to qualified carbon di-
oxide the capture and disposal or use of which is 
within— 
‘‘(A) the United States (within the meaning 
of section 638(1)), or 
‘‘(B) a possession of the United States 
(within the meaning of section 638(2)). 
‘‘(2) SECURE GEOLOGICAL STORAGE.—The Sec-
retary, in consultation with the Administrator of the 
Environmental Protection Agency, shall establish reg-
ulations for determining adequate security measures 
for the geological storage of carbon dioxide under sub-
section (a)(1)(B) such that the carbon dioxide does 
not escape into the atmosphere. Such term shall in-
clude 
storage 
at 
deep 
saline 
formations 
and 
unminable coal seems under such conditions as the 
Secretary may determine under such regulations. 
‘‘(3) TERTIARY INJECTANT.—The term ‘tertiary 
injectant’ has the same meaning as when used within 
section 193(b)(1). 
‘‘(4) QUALIFIED
ENHANCED
OIL
OR
NATURAL 
GAS
RECOVERY
PROJECT.—The term ‘qualified en-
174 
hanced oil or natural gas recovery project’ has the 
meaning given the term ‘qualified enhanced oil recov-
ery project’ by section 43(c)(2), by substituting ‘crude 
oil or natural gas’ for ‘crude oil’ in subparagraph 
(A)(i) thereof. 
‘‘(5) CREDIT
ATTRIBUTABLE
TO
TAXPAYER.— 
Any credit under this section shall be attributable to 
the person that captures and physically or contrac-
tually ensures the disposal of or the use as a tertiary 
injectant of the qualified carbon dioxide, except to the 
extent provided in regulations prescribed by the Sec-
retary. 
‘‘(6) RECAPTURE.—The Secretary shall, by regu-
lations, provide for recapturing the benefit of any 
credit allowable under subsection (a) with respect to 
any qualified carbon dioxide which ceases to be cap-
tured, disposed of, or used as a tertiary injectant in 
a manner consistent with the requirements of this sec-
tion. 
‘‘(7) INFLATION
ADJUSTMENT.—In the case of 
any taxable year beginning in a calendar year after 
2009, there shall be substituted for each dollar amount 
contained in subsection (a) an amount equal to the 
product of— 
‘‘(A) such dollar amount, multiplied by
175 
‘‘(B) the inflation adjustment factor for 
such calendar year determined under section 
43(b)(3)(B) for such calendar year, determined 
by substituting ‘2008’ for ‘1990’. 
‘‘(e) APPLICATION OF SECTION.—The credit under this 
section shall apply with respect to qualified carbon dioxide 
before the end of the calendar year in which the Secretary, 
in consultation with the Administrator of the Environ-
mental Protection Agency, certifies that 75,000,000 metric 
tons of qualified carbon dioxide have been captured and dis-
posed of or used as a tertiary injectant.’’. 
(b) CONFORMING AMENDMENT.—Section 38(b) (relat-
ing to general business credit) is amended by striking 
‘‘plus’’ at the end of paragraph (32), by striking the period 
at the end of paragraph (33) and inserting ‘‘, plus’’, and 
by adding at the end of following new paragraph: 
‘‘(34) the carbon dioxide sequestration credit de-
termined under section 45Q(a).’’. 
(c) CLERICAL AMENDMENT.—The table of sections for 
subpart B of part IV of subchapter A of chapter 1 (relating 
to other credits) is amended by adding at the end the fol-
lowing new section: 
‘‘Sec. 45Q. Credit for carbon dioxide sequestration.’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to carbon dioxide captured after the date 
of the enactment of this Act.