,,ii #aaeth ,,congress #ast ,session ,s4 #bbef ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,december #bj1 #bjag ,mr4 ,hatch 7for himself1 ,mr4 ,grassley1 ,mr4 ,crapo1 ,mr4 ,roberts1 ,mr4 ,thune1 and ,mr4 ,isakson7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to extend expiring provisions1 and for other purposes4 #a4 ,short title1 etc 7a7 ,short title ,this ,act may be cited as the ,tax ,extender ,act of #bjag4 7b7 ,amendment of #aihf ,code ,except as otherwise expressly provided1 whenever in this ,act an amendment or repeal is expressed in terms of an amendment to1 or repeal of1 a section or other provision1 the reference shall be considered to be made to a section or other provision of the ,internal ,revenue ,code of #aihf4 ,i ,tax relief for families and individuals #aja4 ,extension of exclusion from gross income of discharge of qualified principal residence indebtedness 7a7 ,in general ,section #ajh7;a77#a77;,e7 is amended by striking ,january #a1 #bjag each place it appears and inserting ,january #a1 #bjai4 7b7 ,effective date ,the amendments made by this section shall apply to discharges of indebtedness after ,december #ca1 #bjaf4 #ajb4 ,extension of mortgage insurance premiums treated as qualified residence interest 7a7 ,in general ,subclause 7,i7 of section #afc7;h77#c77;,e77iv7 is amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjah4 7b7 ,effective date ,the amendment made by this section shall apply to amounts paid or accrued after ,december #ca1 #bjaf4 #ajc4 ,extension of above-the-line deduction for qualified tuition and related expenses 7a7 ,in general ,section #bbb7;e7 is amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjah4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjaf4 ,,ii ,incentives for growth1 jobs1 investment1 and innovation #bja4 ,extension of ,indian employment tax credit 7a7 ,in general ,section #de;,a7f7 is amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjah4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjaf4 #bjb4 ,extension of railroad track maintenance credit 7a7 ,in general ,section #de;,g7f7 is amended by striking ,january #a1 #bjag and inserting ,january #a1 #bjai4 7b7 ,effective date ,the amendment made by this section shall apply to expenditures paid or incurred in taxable years beginning after ,december #ca1 #bjaf4 #bjc4 ,extension of mine rescue team training credit 7a7 ,in general ,section #de,n7e7 is amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjah4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjaf4 #bjd4 ,extension of qualified zone academy bonds 7a7 ,in general ,section #ed;,e7c77#a7 is amended by striking and #bjaf and inserting #bjaf1 and #bjag4 7b7 ,effective date ,the amendment made by this section shall apply to obligations issued after ,december #ca1 #bjaf4 #bje4 ,extension of classification of certain race horses as #c-year property 7a7 ,in general ,section #afh7;e77#c77;,a77i7 is amended-- 7#a7 by striking ,january #a1 #bjag in subclause 7,i7 and inserting ,january #a1 #bjai1 and 7#b7 by striking ,december #ca1 #bjaf in subclause 7,,ii7 and inserting ,december #ca1 #bjah4 7b7 ,effective date ,the amendments made by this section shall apply to property placed in service after ,december #ca1 #bjaf4 #bjf4 ,extension of #g-year recovery period for motorsports entertainment complexes 7a7 ,in general ,section #afh7;i77#ae77;,d7 is amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjah4 7b7 ,effective date ,the amendment made by this section shall apply to property placed in service after ,december #ca1 #bjaf4 #bjg4 ,extension of accelerated depreciation for business property on an ,indian reservation 7a7 ,in general ,section #afh7;j77#i7 is amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjah4 7b7 ,effective date ,the amendment made by this section shall apply to property placed in service after ,december #ca1 #bjaf4 #bjh4 ,extension of election to expense mine safety equipment 7a7 ,in general ,section #agi;,e7g7 is amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjah4 7b7 ,effective date ,the amendment made by this section shall apply to property placed in service after ,december #ca1 #bjaf4 #bji4 ,extension of special expensing rules for certain productions 7a7 ,in general ,section #aha7;g7 is amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjag4 7b7 ,effective date ,the amendment made by this section shall apply to productions commencing after ,december #ca1 #bjaf4 #baj4 ,extension of deduction allowable with respect to income attributable to domestic production activities in ,puerto ,rico 7a7 ,in general ,section #aii7;d77#h77;,c7 is amended-- 7#a7 by striking first #aa taxable years and inserting first #ab taxable years1 and 7#b7 by striking ,january #a1 #bjag and inserting ,january #a1 #bjah4 7b7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjaf4 #baa4 ,extension of special rule relating to qualified timber gain 7a7 ,in general ,section #abja7;b7 is amended by striking #bjaf and inserting #bjaf or #bjag4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjaf4 #bab4 ,extension of empowerment zone tax incentives 7a7 ,in general 7#a7 ,extension ,section #acia7;d77#a77;,a77i7 is amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjah4 7#b7 ,treatment of certain termination dates specified in nominations ,in the case of a designation of an empowerment zone the nomination for which included a termination date which is contemporaneous with the date specified in subparagraph 7,a77i7 of section #acia7;d77#a7 of the ,internal ,revenue ,code of #aihf 7as in effect before the enactment of this ,act71 subparagraph 7,b7 of such section shall not apply with respect to such designation if1 after the date of the enactment of this section1 the entity which made such nomination amends the nomination to provide for a new termination date in such manner as the ,secretary of the ,treasury 7or the ,secretary's designee7 may provide4 7b7 ,effective date ,the amendment made by subsection 7a77#a7 shall apply to taxable years beginning after ,december #ca1 #bjaf4 #bac4 ,extension of temporary increase in limit on cover over of rum excise taxes to ,puerto ,rico and the ,virgin ,islands 7a7 ,in general ,section #gfeb7;f77#a7 is amended by striking ,january #a1 #bjag and inserting ,january #a1 #bjai4 7b7 ,effective date ,the amendment made by this section shall apply to distilled spirits brought into the ,united ,states after ,december #ca1 #bjaf4 #bad4 ,extension of ,american ,samoa economic development credit 7a7 ,in general ,section #aai7;d7 of division ,a of the ,tax ,relief and ,health ,care ,act of #bjjf is amended-- 7#a7 by striking ,january #a1 #bjag each place it appears and inserting ,january #a1 #bjah1 7#b7 by striking first #aa taxable years in paragraph 7#a7 and inserting first #ab taxable years1 and 7#c7 by striking first #e taxable years in paragraph 7#b7 and inserting first #f taxable years4 7b7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjaf4 ,,iii ,incentives for energy production and conservation #cja4 ,extension of credit for nonbusiness energy property 7a7 ,in general ,section #be;,c7g77#b7 is amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjah4 7b7 ,effective date ,the amendment made by this section shall apply to property placed in service after ,december #ca1 #bjaf4 #cjb4 ,extension and modification of credit for residential energy property 7a7 ,in general ,section #be;,d7h7 is amended by striking ,december #ca1 #bjaf and all that follows and inserting ,december #ca1 #bjba44 7b7 ,phaseout 7#a7 ,in general ,section #be;,d7a7 is amended by striking the sum of-- and all that follows and inserting 8the sum of the applicable percentages of-- 7#a7 the qualified solar electric property expenditures1 7#b7 the qualified solar water heating property expenditures1 7#c7 the qualified fuel cell property expenditures1 7#d7 the qualified small wind energy property expenditures1 and 7#e7 the qualified geothermal heat pump property expenditures1 made by the taxpayer during such year4 4 7#b7 ,conforming amendment ,section #be;,d7g7 is amended by striking paragraphs 7#a7 and 7#b7 of4 7c7 ,effective date ,the amendment made by this section shall apply to property placed in service after ,december #ca1 #bjaf4 #cjc4 ,extension of credit for new qualified fuel cell motor vehicles 7a7 ,in general ,section #cj;,b7k77#a7 is amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjah4 7b7 ,effective date ,the amendment made by this section shall apply to property purchased after ,december #ca1 #bjaf4 #cjd4 ,extension of credit for alternative fuel vehicle refueling property 7a7 ,in general ,section #cj;,c7g7 is amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjah4 7b7 ,effective date ,the amendment made by this section shall apply to property placed in service after ,december #ca1 #bjaf4 #cje4 ,extension of credit for #b-wheeled plug-in electric vehicles 7a7 ,in general ,section #cj;,d7g77#c77;,e77ii7 is amended by striking ,january #a1 #bjag and inserting ,january #a1 #bjai4 7b7 ,effective date ,the amendment made by this section shall apply to vehicles acquired after ,december #ca1 #bjaf4 #cjf4 ,extension of second generation biofuel producer credit 7a7 ,in general ,section #dj7;b77#f77;,j77i7 is amended by striking ,january #a1 #bjag and inserting ,january #a1 #bjai4 7b7 ,effective date ,the amendment made by this section shall apply to qualified second generation biofuel production after ,december #ca1 #bjaf4 #cjg4 ,extension of biodiesel and renewable diesel incentives 7a7 ,income tax credit 7#a7 ,in general ,subsection 7g7 of section #dj;,a is amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjah4 7#b7 ,effective date ,the amendment made by this subsection shall apply to fuel sold or used after ,december #ca1 #bjaf4 7b7 ,excise tax incentives 7#a7 ,in general ,section #fdbf7;c77#f7 is amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjah4 7#b7 ,payments ,section #fdbg7;e77#f77;,b7 is amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjah4 7#c7 ,effective date ,the amendments made by this subsection shall apply to fuel sold or used after ,december #ca1 #bjaf4 7#d7 ,special rule for #bjag ,notwithstanding any other provision of law1 in the case of any biodiesel mixture credit properly determined under section #fdbf7;c7 of the ,internal ,revenue ,code of #aihf for the period beginning on ,january #a1 #bjag1 and ending on ,december #ca1 #bjag1 such credit shall be allowed1 and any refund or payment attributable to such credit 7including any payment under section #fdbg7;e7 of such ,code7 shall be made1 only in such manner as the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall provide4 ,such ,secretary shall issue guidance within #cj days after the date of the enactment of this ,act providing for a one-time submission of claims covering periods described in the preceding sentence4 ,such guidance shall provide for a #ahj-;day period for the submission of such claims 7in such manner as prescribed by such ,secretary7 to begin not later than #cj days after such guidance is issued4 ,such claims shall be paid by such ,secretary not later than #fj days after receipt4 ,if such ,secretary has not paid pursuant to a claim filed under this subsection within #fj days after the date of the filing of such claim1 the claim shall be paid with interest from such date determined by using the overpayment rate and method under section #ffba of such ,code4 #cjh4 ,extension of production credit for ,indian coal facilities 7a7 ,in general ,section #de7;e77#aj77;,a7 is amended by striking #aa-year period each place it appears and inserting #ac-year period4 7b7 ,effective date ,the amendment made by this section shall apply to coal produced after ,december #ca1 #bjaf4 #cji4 ,extension of credits with respect to facilities producing energy from certain renewable resources 7a7 ,in general ,the following provisions of section #de7;d7 are each amended by striking ,january #a1 #bjag each place it appears and inserting ,january #a1 #bjai3 7#a7 ,paragraph 7#b77;,a74 7#b7 ,paragraph 7#c77;,a74 7#c7 ,paragraph 7#d77;,b74 7#d7 ,paragraph 7#f74 7#e7 ,paragraph 7#g74 7#f7 ,paragraph 7#i74 7#g7 ,paragraph 7#aa77;,b74 7b7 ,extension of election ,to treat qualified facilities as energy property ,section #dh7;a77#e77;,c77ii7 is amended by striking ,january #a1 #bjag and inserting ,january #a1 #bjai4 7c7 ,effective date ,the amendments made by this section shall take effect on ,january #a1 #bjag4 #caj4 ,extension of credit for energy-efficient new homes 7a7 ,in general ,section #de,l7g7 is amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjah4 7b7 ,effective date ,the amendment made by this section shall apply to homes acquired after ,december #ca1 #bjaf4 #caa4 ,extension and phaseout of energy credit 7a7 ,credit percentage for geothermal energy property ,section #dh7;a77#b77;,a77i77,,ii7 is amended by striking paragraph 7#c77;,a77i7 and inserting clause 7i7 or 7iii7 of paragraph 7#c77;,a74 7b7 ,extension of solar and thermal energy property ,section #dh7;a77#c77;,a7 is amended-- 7#a7 by striking periods ending before ,january #a1 #bjag in clause 7ii7 and inserting property the construction of which begins before ,january #a1 #bjbb1 and 7#b7 by striking periods ending before ,january #a1 #bjag in clause 7vii7 and inserting property the construction of which begins before ,january #a1 #bjbb4 7c7 ,phaseout of #cj-,percent credit rate for geothermal energy property ,section #dh7;a77#f7 is amended-- 7#a7 by inserting and geothermal after solar in the heading1 7#b7 by striking paragraph 7#c77;,a77i7 in subparagraph 7,a7 and inserting clause 7i7 or 7iii7 of paragraph 7#c77;,a71 and 7#c7 by striking property energy property described in paragraph 7#c77;,a77i7 in subparagraph 7,b7 and inserting energy property described in clause 7i7 or 7iii7 of paragraph 7#c77;,a74 7d7 ,phaseout of #cj-,percent credit rate for fiber-,optic solar1 qualified fuel cell1 and qualified small wind energy property 7#a7 ,in general ,section #dh7;a7 is amended by adding at the end the following new paragraph3 7#g7 ,phaseout for fiber-optic solar1 qualified fuel cell1 and qualified small wind energy property 7,a7 ,in general ,in the case of any qualified fuel cell property1 qualified small wind property1 or energy property described in paragraph 7#c77;,a77ii71 the energy percentage determined under paragraph 7#b7 shall be equal to-- 7i7 in the case of any property the construction of which begins after ,december #ca1 #bjai1 and before ,january #a1 #bjba1 #bf percent1 and 7ii7 in the case of any property the construction of which begins after ,december #ca1 #bjbj1 and before ,january #a1 #bjbb1 #bb percent4 7,b7 ,placed in service deadline ,in the case of any energy property described in subparagraph 7,a7 which is not placed in service before ,january #a1 #bjbd1 the energy percentage determined under paragraph 7#b7 shall be equal to #j percent4 4 7#b7 ,conforming amendment ,section #dh7;a77#b77;,a7 is amended by striking paragraph 7#f7 and inserting paragraphs 7#f7 and 7#g74 7#c7 ,clarification relating to phaseout for wind facilities ,section #dh7;a77#e77;,e7 is amended by inserting which is treated as energy property by reason of this paragraph after using wind to produce electricity4 7e7 ,extension of qualified fuel cell property ,section #dh7;c77#a77;,d7 is amended by striking for any period after ,december #ca1 #bjaf and inserting the construction of which does not begin before ,january #a1 #bjbb4 7f7 ,extension of qualified microturbine property ,section #dh7;c77#b77;,d7 is amended by striking for any period after ,december #ca1 #bjaf and inserting the construction of which does not begin before ,january #a1 #bjbb4 7g7 ,extension of combined heat and power system property ,section #dh7;c77#c77;,a77iv7 is amended by striking which is placed in service before ,january #a1 #bjag and inserting the construction of which begins before ,january #a1 #bjbb4 7h7 ,extension of qualified small wind energy property ,section #dh7;c77#d77;,c7 is amended by striking for any period after ,december #ca1 #bjaf and inserting the construction of which does not begin before ,january #a1 #bjbb4 7i7 ,effective date ,the amendments made by this section shall take effect on ,january #a1 #bjag4 #cab4 ,extension of special allowance for second generation biofuel plant property 7a7 ,in general ,section #afh7l77#b77;,d7 is amended by striking ,january #a1 #bjag and inserting ,january #a1 #bjai4 7b7 ,effective date ,the amendment made by this section shall apply to property placed in service after ,december #ca1 #bjaf4 #cac4 ,extension of energy efficient commercial buildings deduction 7a7 ,in general ,section #agi;,d7h7 is amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjah4 7b7 ,effective date ,the amendment made by this section shall apply to property placed in service after ,december #ca1 #bjaf4 #cad4 ,extension of special rule for sales or dispositions to implement ,,ferc or ,state electric restructuring policy for qualified electric utilities 7a7 ,in general ,section #dea7;i77#c7 is amended by striking ,january #a1 #bjag and inserting ,january #a1 #bjai4 7b7 ,effective date ,the amendment made by this section shall apply to dispositions after ,december #ca1 #bjaf4 #cae4 ,extension of excise tax credits relating to alternative fuels 7a7 ,extension of alternative fuels excise tax credits 7#a7 ,in general ,sections #fdbf7;d77#e7 and #fdbf7;e77#c7 are each amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjah4 7#b7 ,outlay payments for alternative fuels ,section #fdbg7;e77#f77;,c7 is amended by striking ,december #ca1 #bjaf and inserting ,december #ca1 #bjah4 7#c7 ,effective date ,the amendments made by this subsection shall apply to fuel sold or used after ,december #ca1 #bjaf4 7b7 ,special rule for #bjag ,notwithstanding any other provision of law1 in the case of any alternative fuel credit properly determined under section #fdbf7;d7 of the ,internal ,revenue ,code of #aihf for the period beginning on ,january #a1 #bjag1 and ending on ,december #ca1 #bjag1 such credit shall be allowed1 and any refund or payment attributable to such credit 7including any payment under section #fdbg7;e7 of such ,code7 shall be made1 only in such manner as the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall provide4 ,such ,secretary shall issue guidance within #cj days after the date of the enactment of this ,act providing for a one-time submission of claims covering periods described in the preceding sentence4 ,such guidance shall provide for a #ahj-;day period for the submission of such claims 7in such manner as prescribed by such ,secretary7 to begin not later than #cj days after such guidance is issued4 ,such claims shall be paid by such ,secretary not later than #fj days after receipt4 ,if such ,secretary has not paid pursuant to a claim filed under this subsection within #fj days after the date of the filing of such claim1 the claim shall be paid with interest from such date determined by using the overpayment rate and method under section #ffba of such ,code4 #caf4 ,extension of ,oil ,spill ,liability ,trust ,fund financing rate 7a7 ,in general ,section #dfaa7;f77#b7 is amended by striking ,december #ca1 #bjag and inserting ,december #ca1 #bjah4 7b7 ,effective date ,the amendment made by this section shall apply on and after ,january #a1 #bjah4 ,,iv ,modifications of energy incentives #dja4 ,modifications of credit for production from advanced nuclear power facilities 7a7 ,treatment of unutilized limitation amounts ,section #de;,j7b7 is amended-- 7#a7 by inserting or any amendment to after enactment of in paragraph 7#d71 and 7#b7 by adding at the end the following new paragraph3 7#e7 ,allocation of unutilized limitation 7,a7 ,in general ,any unutilized national megawatt capacity limitation shall be allocated by the ,secretary under paragraph 7#c7 as rapidly as is practicable after ,december #ca1 #bjbj-- 7i7 first to facilities placed in service on or before such date to the extent that such facilities did not receive an allocation equal to their full nameplate capacity1 and 7ii7 then to facilities placed in service after such date in the order in which such facilities are placed in service4 7,b7 ,unutilized national megawatt capacity limitation ,the term unutilized national megawatt capacity limitation means the excess 7if any7 of-- 7i7 #f1jjj megawatts1 over 7ii7 the aggregate amount of national megawatt capacity limitation allocated by the ,secretary before ,january #a1 #bjba1 reduced by any amount of such limitation which was allocated to a facility which was not placed in service before such date4 7,c7 ,coordination with other provisions ,in the case of any unutilized national megawatt capacity limitation allocated by the ,secretary pursuant to this paragraph-- 7i7 such allocation shall be treated for purposes of this section in the same manner as an allocation of national megawatt capacity limitation1 and 7ii7 subsection 7d77#a77;,b7 shall not apply to any facility which receives such allocation4 4 7b7 ,transfer of credit by certain public entities 7#a7 ,in general ,section #de;,j is amended-- 7,a7 by redesignating subsection 7e7 as subsection 7f71 and 7,b7 by inserting after subsection 7d7 the following new subsection3 7e7 ,transfer of credit by certain public entities 7#a7 ,in general ,if1 with respect to a credit under subsection 7a7 for any taxable year-- 7,a7 a qualified public entity would be the taxpayer 7but for this paragraph71 and 7,b7 such entity elects the application of this paragraph for such taxable year with respect to all 7or any portion specified in such election7 of such credit1 the eligible project partner specified in such election1 and not the qualified public entity1 shall be treated as the taxpayer for purposes of this title with respect to such credit 7or such portion thereof74 7#b7 ,definitions ,for purposes of this subsection-- 7,a7 ,qualified public entity ,the term qualified public entity means-- 7i7 a ,federal1 ,state1 or local government entity1 or any political subdivision1 agency1 or instrumentality thereof1 7ii7 a mutual or cooperative electric company described in section #eja7;c77#ab7 or #acha7;a77#b71 or 7iii7 a not-for-profit electric utility which had or has received a loan or loan guarantee under the ,rural ,electrification ,act of #aicf4 7,b7 ,eligible project partner ,the term eligible project partner means any person who-- 7i7 is responsible for1 or participates in1 the design or construction of the advanced nuclear power facility to which the credit under subsection 7a7 relates1 7ii7 participates in the provision of the nuclear steam supply system to such facility1 7iii7 participates in the provision of nuclear fuel to such facility1 7iv7 is a financial institution providing financing for the construction or operation of such facility1 or 7v7 has an ownership interest in such facility4 7#c7 ,special rules 7,a7 ,application to partnerships ,in the case of a credit under subsection 7a7 which is determined at the partnership level-- 7i7 for purposes of paragraph 7#a77;,a71 a qualified public entity shall be treated as the taxpayer with respect to such entity's distributive share of such credit1 and 7ii7 the term eligible project partner shall include any partner of the partnership4 7,b7 ,taxable year in which credit taken into account ,in the case of any credit 7or portion thereof7 with respect to which an election is made under paragraph 7#a71 such credit shall be taken into account in the first taxable year of the eligible project partner ending with1 or after1 the qualified public entity's taxable year with respect to which the credit was determined4 7,c7 ,treatment of transfer under private use rules ,for purposes of section #ada7;b77#a71 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 use4 4 7#b7 ,special rule for proceeds of transfers for mutual or cooperative electric companies ,section #eja7;c77#ab7 is amended by adding at the end the following new subparagraph3 7,i7 ,in the case of a mutual or cooperative electric company described in this paragraph or an organization described in section #acha7;a77#b71 income received or accrued in connection with an election under section #de;,j7e77#a7 shall be treated as an amount collected from members for the sole purpose of meeting losses and expenses4 4 7c7 ,effective dates 7#a7 ,treatment of unutilized limitation amounts ,the amendment made by subsection 7a7 shall take effect on the date of the enactment of this ,act4 7#b7 ,transfer of credit by certain public entities ,the amendments made by subsection 7b7 shall apply to taxable years beginning after the date of the enactment of this ,act4 #djb4 ,enhancement of carbon dioxide sequestration credit 7a7 ,in general ,section #de,q is amended to read as follows3 #de,q4 ,credit for carbon oxide sequestration 7a7 ,general rule ,for purposes of section #ch1 the carbon oxide sequestration credit for any taxable year is an amount equal to the sum of-- 7#a7 #bj per metric ton of qualified carbon oxide which is-- 7,a7 captured by the taxpayer using carbon capture equipment which is originally placed in service at a qualified facility before the date of the enactment of the ,tax ,extender ,act of #bjag1 and 7,b7 disposed of by the taxpayer in secure geological storage and not used by the taxpayer as described in paragraph 7#b77;,b71 7#b7 #aj per metric ton of qualified carbon oxide which is-- 7,a7 captured by the taxpayer using carbon capture equipment which is originally placed in service at a qualified facility before the date of the enactment of the ,tax ,extender ,act of #bjag1 and 7,b7 7i7 used by the taxpayer as a tertiary injectant in a qualified enhanced oil or natural gas recovery project and disposed of by the taxpayer in secure geological storage1 or 7ii7 utilized by the taxpayer in a manner described in subsection 7f77#e71 7#c7 the applicable dollar amount per metric ton of qualified carbon oxide which is-- 7,a7 captured by the taxpayer using carbon capture equipment which is originally placed in service at a qualified facility on or after the date of the enactment of the ,tax ,extender ,act of #bjag1 during the #ab-year period beginning on the date the equipment was originally placed in service1 and 7,b7 disposed of by the taxpayer in secure geological storage and not used by the taxpayer as described in paragraph 7#d77;,b71 and 7#d7 the applicable dollar amount per metric ton of qualified carbon oxide which is-- 7,a7 captured by the taxpayer using carbon capture equipment which is originally placed in service at a qualified facility on or after the date of the enactment of the ,tax ,extender ,act of #bjag1 during the #ab-year period beginning on the date the equipment was originally placed in service1 and 7,b7 7i7 used by the taxpayer as a tertiary injectant in a qualified enhanced oil or natural gas recovery project and disposed of by the taxpayer in secure geological storage1 or 7ii7 utilized by the taxpayer in a manner described in subsection 7f77#e74 7b7 ,applicable dollar amount2 additional equipment2 election 7#a7 ,applicable dollar amount 7,a7 ,in general ,for purposes of this section1 the applicable dollar amount shall be an amount equal to-- 7i7 for any taxable year beginning in a calendar year after #bjaf and ending before #bjbg-- 7,i7 for purposes of paragraph 7#c7 of subsection 7a71 the dollar amount established by linear interpolation between #bb4ff and #ej for each calendar year during such period1 and 7,,ii7 for purposes of paragraph 7#d7 of such subsection1 the dollar amount established by linear interpolation between #ab4hc and #ce for each calendar year during such period1 and 7ii7 for any taxable year beginning in a calendar year after #bjbf-- 7,i7 for purposes of paragraph 7#c7 of subsection 7a71 an amount equal to the product of #ej and the inflation adjustment factor for such calendar year determined under section #dc7;b77#c77;,b7 for such calendar year1 determined by substituting #bjbe for #aiij1 and 7,,ii7 for purposes of paragraph 7#d7 of such subsection1 an amount equal to the product of #ce and the inflation adjustment factor for such calendar year determined under section #dc7;b77#c77;,b7 for such calendar year1 determined by substituting #bjbe for #aiij4 7,b7 ,rounding ,the applicable dollar amount determined under subparagraph 7,a7 shall be rounded to the nearest cent4 7#b7 ,installation of additional carbon capture equipment on existing qualified facility ,in the case of a qualified facility placed in service before the date of the enactment of the ,tax ,extender ,act of #bjag1 for which additional carbon capture equipment is placed in service on or after the date of the enactment of such ,act1 the amount of qualified carbon oxide which is captured by the taxpayer shall be equal to-- 7,a7 for purposes of paragraphs 7#a77;,a7 and 7#b77;,a7 of subsection 7a71 the lesser of-- 7i7 the total amount of qualified carbon oxide captured at such facility for the taxable year1 or 7ii7 the total amount of the carbon dioxide capture capacity of the carbon capture equipment in service at such facility on the day before the date of the enactment of the ,tax ,extender ,act of #bjag1 and 7,b7 for purposes of paragraphs 7#c77;,a7 and 7#d77;,a7 of such subsection1 an amount 7not less than zero7 equal to the excess of-- 7i7 the amount described in clause 7i7 of subparagraph 7,a71 over 7ii7 the amount described in clause 7ii7 of such subparagraph4 7#c7 ,election ,for purposes of determining the carbon oxide sequestration credit under this section1 a taxpayer may elect to have the dollar amounts applicable under paragraph 7#a7 or 7#b7 of subsection 7a7 apply in lieu of the dollar amounts applicable under paragraph 7#c7 or 7#d7 of such subsection for each metric ton of qualified carbon oxide which is captured by the taxpayer using carbon capture equipment which is originally placed in service at a qualified facility on or after the date of the enactment of the ,tax ,extender ,act of #bjag4 7c7 ,qualified carbon oxide ,for purposes of this section-- 7#a7 ,in general ,the term qualified carbon oxide means-- 7,a7 any carbon dioxide which-- 7i7 is captured from an industrial source by carbon capture equipment which is originally placed in service before the date of the enactment of the ,tax ,extender ,act of #bjag1 7ii7 would otherwise be released into the atmosphere as industrial emission of greenhouse gas or lead to such release1 and 7iii7 is measured at the source of capture and verified at the point of disposal1 injection1 or utilization1 7,b7 any carbon dioxide or other carbon oxide which-- 7i7 is captured from an industrial source by carbon capture equipment which is originally placed in service on or after the date of the enactment of the ,tax ,extender ,act of #bjag1 7ii7 would otherwise be released into the atmosphere as industrial emission of greenhouse gas or lead to such release1 and 7iii7 is measured at the source of capture and verified at the point of disposal1 injection1 or utilization1 or 7,c7 in the case of a direct air capture facility1 any carbon dioxide which-- 7i7 is captured directly from the ambient air1 and 7ii7 is measured at the source of capture and verified at the point of disposal1 injection1 or utilization4 7#b7 ,recycled carbon oxide ,the term qualified carbon oxide includes the initial deposit of captured carbon oxide used as a tertiary injectant4 ,such term does not include carbon oxide that is recaptured1 recycled1 and re-injected as part of the enhanced oil and natural gas recovery process4 7d7 ,qualified facility ,for purposes of this section1 the term qualified facility means any industrial facility or direct air capture facility-- 7#a7 the construction of which begins before ,january #a1 #bjbd1 and-- 7,a7 construction of carbon capture equipment begins before such date1 or 7,b7 the original planning and design for such facility includes installation of carbon capture equipment1 and 7#b7 which captures-- 7,a7 in the case of a facility which emits not more than #ejj1jjj metric tons of carbon oxide into the atmosphere during the taxable year1 not less than #be1jjj metric tons of qualified carbon oxide during the taxable year which is utilized in a manner described in subsection 7f77#e71 7,b7 in the case of an electricity generating facility which is not described in subparagraph 7,a71 not less than #ejj1jjj metric tons of qualified carbon oxide during the taxable year1 or 7,c7 in the case of a direct air capture facility or any facility not described in subparagraph 7,a7 or 7,b71 not less than #ajj1jjj metric tons of qualified carbon oxide during the taxable year4 7e7 ,definitions ,for purposes of this section-- 7#a7 ,direct air capture facility 7,a7 ,in general ,subject to subparagraph 7,b71 the term direct air capture facility means any facility which uses carbon capture equipment to capture carbon dioxide directly from the ambient air4 7,b7 ,exception ,the term direct air capture facility shall not include any facility which captures carbon dioxide-- 7i7 which is deliberately released from naturally occurring subsurface springs1 or 7ii7 using natural photosynthesis4 7#b7 ,qualified enhanced oil or natural gas recovery project ,the term qualified enhanced oil or natural gas recovery project has the meaning given the term qualified enhanced oil recovery project by section #dc7;c77#b71 determined-- 7,a7 by substituting crude oil or natural gas for crude oil in subparagraph 7,a77i7 thereof1 and 7,b7 without regard to subparagraph 7,a77iii7 thereof4 7#c7 ,tertiary injectant ,the term tertiary injectant has the same meaning as when used within section #aic7;b77#a74 7f7 ,special rules 7#a7 ,only qualified carbon oxide captured and disposed of or used within the ,united ,states taken into account ,the credit under this section shall apply only with respect to qualified carbon oxide the capture and disposal1 use1 or utilization of which is within-- 7,a7 the ,united ,states 7within the meaning of section #fch7a771 or 7,b7 a possession of the ,united ,states 7within the meaning of section #fch7b774 7#b7 ,secure geological storage 7,a7 ,in general ,not later than ,december #ca1 #bjah1 the ,secretary1 in consultation with the ,administrator of the ,environmental ,protection ,agency1 the ,secretary of ,energy1 and the ,secretary of the ,interior1 shall establish regulations for determining adequate security measures for the geological storage of carbon dioxide under subsection 7a7 such that the carbon dioxide does not escape into the atmosphere4 ,such term shall include storage at deep saline formations1 oil and gas reservoirs1 and unmineable coal seams under such conditions as the ,secretary may determine under such regulations4 7,b7 ,requirements ,the regulations established pursuant to subparagraph 7,a7 shall provide that-- 7i7 for purposes of paragraph 7#a77;,b7 or 7#c77;,b7 of subsection 7a71 carbon dioxide shall be considered disposed of in secure geological storage if such carbon dioxide is stored in compliance with rules promulgated by the ,environmental ,protection ,agency under subpart ,,rr of part #ih of title #dj1 ,code of ,federal ,regulations 7as in effect on the date of the enactment of this paragraph71 under the ,clean ,air ,act 7#db ,u4,s4,c4 #gdja et seq47 and rules under the ,safe ,drinking ,water ,act 7#db ,u4,s4,c4 #cjj;f et seq47 which are applicable to carbon dioxide disposed of in secure geological storage and not used as a tertiary injectant in a qualified enhanced oil or natural gas recovery project1 and 7ii7 for purposes of paragraph 7#b77;,b77i7 or 7#d77;,b77i7 of subsection 7a71 carbon dioxide shall be considered disposed of in secure geological storage if such carbon dioxide is stored in compliance with rules promulgated by the ,environmental ,protection ,agency which are applicable to carbon dioxide used as a tertiary injectant in a qualified enhanced oil or natural gas recovery project under-- 7,i7 subpart ,,uu of part #ih of title #dj1 ,code of ,federal ,regulations 7as in effect on the date of the enactment of this paragraph71 under the ,clean ,air ,act1 and 7,,ii7 subpart ,c of part #adf of title #dj1 ,code of ,federal ,regulations 7as in effect on the date of the enactment of this paragraph71 under the ,safe ,drinking ,water ,act1 to the extent such rules are applicable to ,class ,,ii wells4 7#c7 ,credit attributable to taxpayer 7,a7 ,in general ,except as provided in subparagraph 7,b7 or in any regulations prescribed by the ,secretary1 any credit under this section shall be attributable to-- 7i7 in the case of qualified carbon oxide captured using carbon capture equipment which is originally placed in service at a qualified facility before the date of the enactment of the ,tax ,extender ,act of #bjag1 the person that captures and physically or contractually ensures the disposal1 utilization1 or use as a tertiary injectant of such qualified carbon oxide1 and 7ii7 in the case of qualified carbon oxide captured using carbon capture equipment which is originally placed in service at a qualified facility on or after the date of the enactment of the ,tax ,extender ,act of #bjag1 the person that owns the carbon capture equipment and physically or contractually ensures the capture and disposal1 utilization1 or use as a tertiary injectant of such qualified carbon oxide4 7,b7 ,election ,if the person described in subparagraph 7,a7 makes an election under this subparagraph in such time and manner as the ,secretary may prescribe by regulations1 the credit under this section-- 7i7 shall be allowable to the person that disposes of the qualified carbon oxide1 utilizes the qualified carbon oxide1 or uses the qualified carbon oxide as a tertiary injectant1 and 7ii7 shall not be allowable to the person described in subparagraph 7,a74 7#d7 ,recapture ,the ,secretary shall1 by regulations1 provide for recapturing the benefit of any credit allowable under subsection 7a7 with respect to any qualified carbon oxide which ceases to be captured1 disposed of1 or used as a tertiary injectant in a manner consistent with the requirements of this section4 7#e7 ,utilization of qualified carbon oxide 7,a7 ,in general ,for purposes of this section1 utilization of qualified carbon oxide means-- 7i7 the fixation of such qualified carbon oxide through photosynthesis or chemosynthesis1 such as through the growing of algae or bacteria1 7ii7 the chemical conversion of such qualified carbon oxide to a material or chemical compound in which such qualified carbon oxide is securely stored1 or 7iii7 the use of such qualified carbon oxide for any other purpose for which a commercial market exists 7with the exception of use as a tertiary injectant in a qualified enhanced oil or natural gas recovery project71 as determined by the ,secretary4 7,b7 ,measurement 7i7 ,in general ,for purposes of determining the amount of qualified carbon oxide utilized by the taxpayer under paragraph 7#b77;,b77ii7 or 7#d77;,b77ii7 of subsection 7a71 such amount shall be equal to the metric tons of qualified carbon oxide which the taxpayer demonstrates1 based upon an analysis of lifecycle greenhouse gas emissions and subject to such requirements as the ,secretary1 in consultation with the ,secretary of ,energy and the ,administrator of the ,environmental ,protection ,agency1 determines appropriate1 were-- 7,i7 captured and permanently isolated from the atmosphere1 or 7,,ii7 displaced from being emitted into the atmosphere1 through use of a process described in subparagraph 7,a74 7ii7 ,lifecycle greenhouse gas emissions ,for purposes of clause 7i71 the term lifecycle greenhouse gas emissions has the same meaning given such term under subparagraph 7,h7 of section #baa7o77#a7 of the ,clean ,air ,act 7#db ,u4,s4,c4 #gede7o77#a771 as in effect on the date of the enactment of the ,tax ,extender ,act of #bjag1 except that product shall be substituted for fuel each place it appears in such subparagraph4 7#f7 ,election for applicable facilities 7,a7 ,in general ,for purposes of this section1 in the case of an applicable facility1 for any taxable year in which such facility captures not less than #ejj1jjj metric tons of qualified carbon oxide during the taxable year1 the person described in paragraph 7#c77;,a77ii7 may elect to have such facility1 and any carbon capture equipment placed in service at such facility1 deemed as having been placed in service on the date of the enactment of the ,tax ,extender ,act of #bjag4 7,b7 ,applicable facility ,for purposes of this paragraph1 the term applicable facility means a qualified facility-- 7i7 which was placed in service before the date of the enactment of the ,tax ,extender ,act of #bjag1 and 7ii7 for which no taxpayer claimed a credit under this section in regards to such facility for any taxable year ending before the date of the enactment of such ,act4 7#g7 ,inflation adjustment ,in the case of any taxable year beginning in a calendar year after #bjji1 there shall be substituted for each dollar amount contained in paragraphs 7#a7 and 7#b7 of subsection 7a7 an amount equal to the product of-- 7,a7 such dollar amount1 multiplied by 7,b7 the inflation adjustment factor for such calendar year determined under section #dc7;b77#c77;,b7 for such calendar year1 determined by substituting #bjjh for #aiij4 7g7 ,application of section for certain carbon capture equipment ,in the case of any carbon capture equipment placed in service before the date of the enactment of the ,tax ,extender ,act of #bjag1 the credit under this section shall apply with respect to qualified carbon oxide captured using such equipment before the end of the calendar year in which the ,secretary1 in consultation with the ,administrator of the ,environmental ,protection ,agency1 certifies that1 during the period beginning after ,october #c1 #bjjh1 a total of #ge1jjj1jjj metric tons of qualified carbon oxide have been taken into account in accordance with-- 7#a7 subsection 7a7 of this section1 as in effect on the day before the date of the enactment of the ,tax ,extender ,act of #bjag1 and 7#b7 paragraphs 7#a7 and 7#b7 of subsection 7a7 of this section4 7h7 ,regulations ,the ,secretary may prescribe such regulations and other guidance as may be necessary or appropriate to carry out this section1 including regulations or other guidance to-- 7#a7 ensure proper allocation under subsection 7a7 for qualified carbon oxide captured by a taxpayer during the taxable year ending after the date of the enactment of the ,tax ,extender ,act of #bjag1 and 7#b7 determine whether a facility satisfies the requirements under subsection 7d77#a7 during such taxable year4 4 7b7 ,effective date ,the amendments made by this section shall take effect on the date of the enactment of this ,act4