Title: To amend the Internal Revenue Code of 1986 to increase and expand the credit for carbon oxide sequestration.
Policy area: Taxation

Summary:
This bill modifies the tax credit for carbon oxide sequestration. It increases the applicable dollar amount of such credit, repeals the placed-in-service deadline, expands the types of facilities to which the credit applies, and extends the credit period from 12 to 20 years.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2633 Introduced in House (IH)]

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117th CONGRESS
  1st Session
                                H. R. 2633

 To amend the Internal Revenue Code of 1986 to increase and expand the 
                 credit for carbon oxide sequestration.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 16, 2021

  Mr. Schweikert (for himself, Mr. Wenstrup, and Mrs. Miller of West 
  Virginia) 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 increase and expand the 
                 credit for carbon oxide sequestration.

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

SECTION 1. IMPROVEMENTS TO CREDIT FOR CARBON OXIDE SEQUESTRATION.

    (a) Increase in Applicable Dollar Amount.--Section 45Q(b)(1)(A) of 
the Internal Revenue Code of 1986 is amended--
            (1) in clause (i)(I) and (ii)(I), by striking ``$50'' and 
        inserting ``$85'', and
            (2) in clause (i)(II) and (ii)(II), by striking ``$35'' and 
        inserting ``$50''.
    (b) Repeal of Placed-In-Service Deadline; Expansion of Facilities 
to Which Credit Applies.--Section 45Q(d) of such Code 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 10,000 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 paragraph (1), not less than 100,000 
        metric tons of qualified carbon oxide during the taxable year,
            ``(3) in the case of a direct air capture facility, not 
        less than 10,000 metric tons of qualified carbon oxide during 
        the taxable year, or
            ``(4) in the case of any facility not described in 
        paragraph (1), (2), or (3), not less than 25,000 metric tons of 
        qualified carbon oxide during the taxable year.''.
    (c) Extension of Credit Period.--Paragraphs (3)(A) and (4)(A) of 
section 45Q(a) of such Code are each amended by striking ``12-year'' 
and inserting ``20-year''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2020.
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