Title: Electricity Reliability and Fuel Security Act
Policy area: Taxation

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.
Qualified public entities may transfer the credit to an eligible project partner. A "qualified public entity" is: (1) a federal, state, or local government entity or any political subdivision, agency, or instrumentality thereof; (2) a mutual or cooperative electric company; or (3) a not-for-profit electric utility which had or has received a loan or loan guarantee under the Rural Electrification Act of 1936.
An "eligible project partner" is a person who:

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5270 Introduced in House (IH)]

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115th CONGRESS
  2d Session
                                H. R. 5270

 To amend the Internal Revenue Code of 1986 to allow a credit against 
            tax for coal-powered electric generation units.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 14, 2018

Mr. Bucshon (for himself, Mr. Barton, Mr. Cramer, Mr. Barr, Mr. Jenkins 
  of West Virginia, and Mr. McKinley) 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 against 
            tax for coal-powered electric generation units.

    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 ``Electricity Reliability and Fuel 
Security Act''.

SEC. 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 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new section:

``SEC. 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' means an 
electric generation unit (as defined in section 48A(c)(6)) that uses 
coal to produce not less than 75 percent of the electricity produced by 
such unit.
    ``(c) Qualified Expenses.--For purposes of this section, the term 
`qualified expenses' means amounts paid or incurred for the operation 
or maintenance of a coal-powered electric generation unit, other than 
amounts paid or incurred for coal.
    ``(d) Transfer of Credit by Certain Public Entities.--
            ``(1) In general.--If, with respect to a credit under 
        subsection (a) for any taxable year--
                    ``(A) a qualified public entity would be the 
                taxpayer (but for this paragraph), and
                    ``(B) such entity elects the application of this 
                paragraph for such taxable year with respect to all (or 
                any portion specified in such election) of such credit, 
                the eligible project partner specified in such 
                election, and not the qualified public entity, shall be 
                treated as the taxpayer for purposes of this title with 
                respect to such credit (or such portion thereof).
            ``(2) Definitions.--For purposes of this subsection--
                    ``(A) Qualified public entity.--The term `qualified 
                public entity' means--
                            ``(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.
                    ``(B) Eligible project partner.--With respect to 
                coal-powered electric generation unit, the term 
                `eligible project partner' means any person who--
                            ``(i) is responsible for operating, 
                        maintaining, or repairing such unit,
                            ``(ii) participates in the provision, 
                        including transportation, of coal to such unit,
                            ``(iii) provides financing for the 
                        construction or operation of such unit, or
                            ``(iv) leases such unit.
            ``(3) Special rules.--
                    ``(A) Application to partnerships.--In the case of 
                a credit under subsection (a) which is determined at 
                the partnership level--
                            ``(i) for purposes of paragraph (1)(A), a 
                        qualified public entity shall be treated as the 
                        taxpayer with respect to such entity's 
                        distributive share of such credit, and
                            ``(ii) the term `eligible project partner' 
                        shall include any partner of the partnership.
                    ``(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 (1), such credit shall be taken into 
                account in the first taxable year of the eligible 
                project partner ending with, or after, the qualified 
                public entity'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 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)'' after ``section 45J(e)(I)''.
    (c) Credit Allowed Against Alternative Minimum Tax.--Subparagraph 
(B) of section 38(c)(4) of the Internal Revenue Code of 1986 is 
amended--
            (1) by redesignating clauses (x), (xi), and (xii) as 
        clauses (xi), (xii), and (xiii), respectively; and
            (2) 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.''.
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