Title: Stranded Gas Recovery and Utilization Act of 2021
Policy area: Taxation

Summary:
Stranded Gas Recovery and Utilization Act of 2021
This bill allows a tax credit for investment in stranded gas infrastructure equal to 30% of the basis of any qualified infrastructure placed in service during a taxable year beginning after December 31, 2021, and before January 1, 2028. The term qualified infrastructure means a gas pipeline, a gas compressor station, a container used for gas storage, or equipment to store gas underground.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6146 Introduced in House (IH)]

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117th CONGRESS
  1st Session
                                H. R. 6146

 To amend the Internal Revenue Code of 1986 to establish business tax 
  credits for producing electricity from stranded natural gas and for 
            certain infrastructure relating to stranded gas.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 7, 2021

 Mr. Burgess 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 establish business tax 
  credits for producing electricity from stranded natural gas and for 
            certain infrastructure relating to stranded gas.

    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 ``Stranded Gas Recovery and 
Utilization Act of 2021''.

SEC. 2. ESTABLISHMENT OF CREDITS FOR STRANDED GAS EXTRACTION.

    (a) Stranded Gas Infrastructure Credit.--Subpart E 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. 48E. STRANDED GAS INFRASTRUCTURE CREDIT.

    ``(a) Amount of Credit.--For the purposes of section 46, the 
stranded gas infrastructure credit determined under this section for 
any taxable year is an amount equal to 30 percent of the basis of any 
qualified infrastructure placed in service by the taxpayer during such 
taxable year.
    ``(b) Qualified Infrastructure.--For the purposes of this section:
            ``(1) Qualified infrastructure.--The term `qualified 
        infrastructure' means--
                    ``(A) a gas pipeline,
                    ``(B) a gas compressor station,
                    ``(C) a container used for gas storage, or
                    ``(D) equipment to store gas underground.
            ``(2) Gas.--The term `gas' means any gas used in a process 
        relating to natural gas extraction, including natural gas and 
        biproducts of natural gas.
    ``(c) Application of Section.--This section shall apply to 
qualified infrastructure placed in service during a taxable year 
beginning after December 31, 2021, and before January 1, 2028.''.
    (b) Conforming Amendment.--Section 46 is amended by striking 
``and'' at the end of paragraph (5), by striking the period at the end 
of paragraph (6) and inserting ``, and'', and by adding at the end the 
following new paragraph:
            ``(7) the stranded gas infrastructure credit.''.
    (c) Clerical Amendment.--The table of sections for subpart E of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 48C the following new 
item:

``Sec. 48E. Stranded gas infrastructure credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to qualified infrastructure placed in service during a taxable 
year beginning after December 31, 2021.
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