NET Zero Act of 2021
Bill: H.R.5205 | Sponsor: Rep. Beyer, Donald S., Jr. (D-VA)
Policy area: Taxation

Summary:
Negate Emissions to Zero Act of 2021 or the NET Zero Act of 2021
This bill extends through 2031 the tax credit for carbon oxide sequestration. It also modifies requirements for direct air capture facilities.

To amend the Internal Revenue Code of 1986 to extend and modify the 
     credit for carbon oxide sequestration, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Negate Emissions to Zero Act of 
2021'' or the ``NET Zero Act of 2021''.

SEC. 2. EXTENSION AND MODIFICATION OF CREDIT FOR CARBON OXIDE 
              SEQUESTRATION.

    (a) Extension.--Section 45Q(d) is amended--
            (1) in paragraph (1), by inserting ``except as provided in 
        paragraph (3),'' at the beginning and striking ``January 1, 
        2026'' and inserting ``January 1, 2032'', and
            (2) by adding at the end:
            ``(3) Exclusion for direct air capture with dedicated 
        geological storage.--In the case of qualified carbon oxide 
        captured by a direct air capture facility which is used by the 
        taxpayer in a manner described in subsection (a)(3), paragraph 
        (1) shall not apply.''.
    (b) Modification of Carbon Oxide Capture Requirements.--Section 
45Q(d)(2)(C) is amended by striking ``100,000'' and replacing it with 
``1,000''.
    (c) Determination of Applicable Dollar Amount.--
            (1) In general.--Section 45Q(b)(1) is amended by 
        redesignating subparagraph (B) as subparagraph (C) and by 
        inserting after subparagraph (A) the following new 
        subparagraph:
                    ``(B) Special rule for direct air capture 
                facilities.--For any taxable year beginning after 
                December 31, 2021, in the case of any qualified 
                facility described in subsection (d)(2)(C), the 
                applicable dollar amount shall be an amount equal to--
                            ``(i) for purposes of paragraph (3) of 
                        subsection (a), an amount equal to the product 
                        of $180 and the inflation adjustment factor for 
                        such calendar year determined under section 
                        43(b)(3)(B) for such calendar year, determined 
                        by substituting `2020' for `1990', and
                            ``(ii) for purposes of paragraph (4) of 
                        such subsection, an amount equal to the product 
                        of $130 and the inflation adjustment factor for 
                        such calendar year determined under section 
                        43(b)(3)(B) for such calendar year, determined 
                        by substituting `2020' for `1990'.''.
            (2) Conforming amendments.--
                    (A) Section 45Q(b)(1)(A) is amended by striking 
                ``The applicable dollar amount'' and inserting ``Except 
                as provided in subparagraph (B), the applicable dollar 
                amount''.
                    (B) Section 45Q(b)(1)(C), as redesignated by 
                paragraph (1), is amended by striking ``subparagraph 
                (A)'' and inserting ``subparagraph (A) or (B)''.
    (d) Effective Dates.--
            (1) Extension.--The amendment made by subsection (a) shall 
        apply to facilities the construction of which begins after 
        December 31, 2025.
            (2) Other amendments.--The amendments made by subsections 
        (b) and (c) shall apply to taxable years beginning after 
        December 31, 2021.
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