Title: To amend the Internal Revenue Code of 1986 to provide for an increased credit for carbon oxide sequestration for direct air capture facilities, and for other purposes.
Policy area: Taxation

Summary:
This bill provides for an increased carbon oxide sequestration tax credit for direct air capture facilities.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5883 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 5883

To amend the Internal Revenue Code of 1986 to provide for an increased 
     credit for carbon oxide sequestration for direct air capture 
                  facilities, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 12, 2020

Mr. Schweikert (for himself and Mr. Wenstrup) 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 provide for an increased 
     credit for carbon oxide sequestration for direct air capture 
                  facilities, 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. INCREASE IN CREDIT FOR CARBON OXIDE SEQUESTRATION FOR DIRECT 
              AIR CAPTURE FACILITIES.

    (a) Increase in Applicable Dollar Amount for Direct Air Capture 
Facilities.--Section 45Q(b)(1)(A) of the Internal Revenue Code of 1986 
is amended--
            (1) in clause (i)(I) and (ii)(I), by inserting ``($62.50 in 
        the case of a direct air capture facility)'' after ``$50'', and
            (2) in clause (i)(II) and (ii)(II), by inserting ``($43.75 
        in the case of a direct air capture facility)'' after ``$35''.
    (b) Repeal of Placed-in-Service Deadline; Decrease in Capture 
Requirements for Direct Air Capture Facilities.--Section 45Q(d) of the 
Internal Revenue Code of 1986 is amended to read as follows:
    ``(d) Qualified Facility.--For purposes of this section, the term 
`qualified facility' means any industrial facility or direct air 
capture facility which captures--
            ``(1) in the case of a facility which emits not more than 
        500,000 metric tons of carbon oxide into the atmosphere during 
        the taxable year, not less than 25,000 metric tons of qualified 
        carbon oxide during the taxable year which is utilized in a 
        manner described in subsection (f)(5),
            ``(2) in the case of an electricity generating facility 
        which is not described in subparagraph (A), not less than 
        500,000 metric tons of qualified carbon oxide during the 
        taxable year, or
            ``(3) in the case of a direct air capture facility or any 
        facility not described in subparagraph (A) or (B), not less 
        than 50,000 metric tons of qualified carbon oxide during the 
        taxable year.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2020.
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