H.R. 7849 — Introduced in House

I 117th CONGRESS 2d Session H. R. 7849 IN THE HOUSE OF REPRESENTATIVES May 19, 2022Mr. Moulton (for himself and Mr. Keating) 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 the purchase of certain adaptive gear required to prevent the entanglement of right whales. 1. Short title This Act may be cited as the Conserving Lobstering And Whales Act of 2022 or the CLAW Act of 2022. 2. Adaptive gear required to prevent right whale entanglement (a) Allowance of credit (1) In general 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: 45U. Adaptive gear required to prevent right whale entanglement (a) In general For purposes of section 38, in the case of an eligible lobstering business, the right whale entanglement prevention credit determined under this section for any taxable year is an amount equal to 30 percent of the amounts paid or incurred by the taxpayer for the taxable year for the purchase of any adaptive gear required by State or Federal law or regulation to prevent the entanglement of right whales in the course of the trade or business of lobstering. (b) Eligible lobstering business (1) In general For purposes of this section, the term eligible lobstering business means any person— (A) engaged in the trade or business of lobstering, and (B) that submits a return of tax with respect to such taxable year that includes each of the following, as applicable, but in any case not less than 1 of— (i) a State commercial lobster license for such person, and (ii) a Federal vessel identification number for each vessel used by such person in the course of the trade or business of lobstering. (2) Controlled groups All persons which are treated as a single employer under subsections (a) and (b) of section 52 shall be treated as a single taxpayer for purposes of this subsection. (c) Adaptive gear For purposes of this section, the term adaptive gear means— (1) gear required by the National Oceanic and Atmospheric Administration as part of the Atlantic Large Whale Take Reduction Plan, and (2) equipment used for electronic vessel tracking required by the Atlantic States Marine Fisheries Commission for North Atlantic right whale risk reduction. . (2) Credit made part of general business credit Section 38(b) of such Code is amended by striking plus at the end of paragraph (32), by striking the period at the end of paragraph (33) and inserting , plus, and by adding at the end the following new paragraph: (34) in the case of an eligible lobstering business, the right whale entanglement prevention credit determined under 45U(a). . (3) Clerical amendment The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item: Sec. 45U. Adaptive gear required to prevent right whale entanglement. . (b) Direct pay option (1) In general Subchapter B of chapter 65 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 6431. Elective payment of right whale entanglement prevention credit (a) In general In the case of a taxpayer making an election (at such time and in such manner as the Secretary may provide) under this section with respect to any portion of the right whale entanglement prevention credit determined under section 45U(a), such taxpayer shall be treated as making a payment against the tax imposed by subtitle A for the taxable year equal to such amount. (b) Timing The payment described in subsection (a) shall be treated as made on the later of the due date of the return of tax (determined without extensions) for such taxable year or the date on which such return is filed. (c) Exclusion from gross income Gross income of the taxpayer shall be determined without regard to this section. (d) Denial of double benefit Solely for purposes of section 38, in the case of a taxpayer making an election under this section, the right whale entanglement prevention credit determined under section 45U(a) shall be reduced by the amount of the portion of such credit with respect to which the taxpayer makes such election. . (2) Clerical amendment The table of sections for subchapter B of chapter 65 of such Code is amended by adding at the end the following new item: Sec. 6431. Elective payment of right whale entanglement prevention credit. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.