,,ii #aagth ,,congress #ast ,session ,s4 #ihf ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #be1 #bjba,ms4 ,smith 7for herself1 ,mrs4 ,capito1 ,mr4 ,whitehouse1 ,mr4 ,cramer1 ,mr4 ,schatz1 ,mr4 ,hoeven1 ,mr4 ,manchin1 ,mr4 ,barrasso1 ,mr4 ,coons1 ,mr4 ,grassley1 ,mr4 ,lujn1 ,ms4 ,ernst1 ,mr4 ,durbin1 and ,ms4 ,klobuchar7 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 provide for a #e-year extension of the carbon oxide sequestration credit1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,carbon ,capture1 ,utilization1 and ,storage ,tax ,credit ,amendments ,act of #bjba4 #b4 ,extension of credit for carbon oxide sequestration ,section #de,q7d77#a7 of the ,internal ,revenue ,code of #aihf is amended by striking ,january #a1 #bjbf and inserting ,january #a1 #bjca4 #c4 ,elective payment for carbon oxide sequestration and qualifying advanced coal projects 7a7 ,in general ,subchapter ,b of chapter #fe of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #fdca4 ,elective payment for carbon oxide sequestration and qualifying advanced coal projects 7a7 ,energy property ,in the case of a taxpayer making an election 7at such time and in such manner as the ,secretary may provide7 under this section with respect to any portion of-- 7#a7 a carbon oxide sequestration credit which would 7without regard to this section7 be determined under section #de,q with respect to such taxpayer1 or 7#b7 a qualifying advanced coal project credit which would 7without regard to this section7 be determined under section #dh;,a with respect to such taxpayer1 such taxpayer shall be treated as making a payment against the tax imposed by subtitle ,a for the taxable year equal to the amount of such portion4 7b7 ,timing ,the payment described in subsection 7a7 shall be treated as made on the later of the due date of the return of tax for such taxable year or the date on which such return is filed4 7c7 ,exclusion from gross income ,gross income of the taxpayer shall be determined without regard to this section4 7d7 ,denial of double benefit ,solely for purposes of section #ch1 in the case of a taxpayer making an election under this section1 the carbon oxide sequestration credit determined under section #de,q or the qualifying advanced coal project credit determined under section #dh;,a shall be reduced by the amount of the portion of such credit with respect to which the taxpayer makes such election4 7e7 ,special rules ,in the case of a taxpayer making an election under this section with respect to the qualifying advanced coal project credit determined under section #dh;,a1 the credit subject to such an election shall be determined notwithstanding-- 7#a7 section #ej7;b77#c71 and 7#b7 in the case of any entity described in section #ej7;b77#d77;,a77i71 section #ej7;b77#d74 4 7b7 ,special rule for proceeds of transfers for mutual or cooperative electric companies ,section #eja7;c77#ab77;,i7 of the ,internal ,revenue ,code of #aihf is amended by inserting or #fdca7;a7 after section #de;,j7e77#a74 7c7 ,clerical amendment ,the table of sections for subchapter ,b of chapter #fe of such ,code is amended by adding at the end the following new item3 ,sec4 #fdca4 ,elective payment for carbon oxide sequestration and qualifying advanced coal projects4 4 7d7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of enactment of this ,act4 #d4 ,allowance of certain carbon sequestration credits against the base erosion minimum tax 7a7 ,in general ,section #ei;,a7b77#a77;,b77ii7 of the ,internal ,revenue ,code of #aihf is amended by striking plus and the end of subclause 7,i71 by redesignating subclause 7,,ii7 as subclause 7,,iv71 and by inserting after subclause 7,i7 the following new subclauses3 7,,ii7 the credit allowed under section #ch for the taxable year which is properly allocable to the carbon dioxide sequestration credit determined under section #de,q7a71 7,,iii7 the credit allowed under section #ch for the taxable year which is properly allocable to the investment credit determined under section #df1 but only to the extent properly allocable to the qualifying advanced coal project credit determined under section #dh;,a1 plus 4 7b7 ,application to taxable years beginning after #bjbe ,subparagraph 7,b7 of section #ei;,a7b77#b7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7,b7 by applying subparagraph 7,b77ii7 thereof without regard to subclauses 7,i7 and 7,,iv74 4 7c7 ,effective date ,the amendments made by this section shall apply to base erosion payments 7as defined in section #ei;,a7d7 of the ,internal ,revenue ,code of #aihf7 paid or incurred in taxable years beginning after ,december #ca1 #bjag4 #e4 ,modifications of qualifying advanced coal project credit 7a7 ,sequestration requirement for certain equipment ,section #dh;,a7e77#a77;,g7 of the ,internal ,revenue ,code of #aihf is amended by inserting and #fj percent in the case of an application for a reallocation of credits under subsection 7d77#d7 with respect to an electrical generating unit in existence on ,october #c1 #bjjh after under subsection 7d77#d74 7b7 ,nameplate generating capacity requirement ,section #dh;,a7e77#a77;,c7 of such ,code is amended by striking #djj megawatts and inserting #bjj megawatts4 7c7 ,advanced coal-,based generation technology requirements 7#a7 ,in general ,section #dh;,a7f77#a7 of such ,code is amended by striking generation technology if-- and all that follows through the unit is designed and inserting generation technology if the unit is designed4 7#b7 ,conforming amendments ,section #dh;,a7f7 of such ,code is amended-- 7,a7 by striking all that precedes the purpose of this section and inserting the following3 7f7 ,advanced coal-,based generation technology ,for 1 7,b7 by striking in subparagraph 7,b7 in the second sentence and inserting in this subsection1 and 7,c7 by striking paragraphs 7#b7 and 7#c74 7d7 ,performance requirements in case of best available control technology ,section #dh;,a7f7 of such ,code1 as amended by this ,act1 is amended by adding at the end the following3 ,in the case of a retrofit of a unit which has undergone a best available control technology analysis after ,august #h1 #bjje1 with respect to the removal or emissions of any pollutant which is ,,so#b or ,n,ox1 the removal or emissions design level with respect to such pollutant shall be the level determined in such analysis44 7e7 ,clarification of reallocation authority ,section #dh;,a7d77#d7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 in subparagraph 7,a7-- 7,a7 by striking ,not later than #f years after the date of enactment of this section1 the and inserting ,the1 and 7,b7 by inserting and every #f months thereafter until all credits available under this section have been allowed after the date which is #f years after the date of enactment of this section1 7#b7 in subparagraph 7,b7-- 7,a7 by striking may reallocate credits available under clauses 7i7 and 7ii7 of paragraph 7#c77;,b7 and inserting shall reallocate credits remaining available under paragraph 7#c71 7,b7 by striking or at the end of clause 7i71 and 7,c7 by striking clause 7ii7 and inserting the following3 7ii7 any applicant for certification which submitted an accepted application has subsequently failed to satisfy the requirements under paragraph 7#b77;,d71 or 7iii7 any certification made pursuant to paragraph 7#b7 has been revoked pursuant to paragraph 7#b77;,e74 1 and 7#c7 in subparagraph 7,c7-- 7,a7 by striking clause 7i7 or 7ii7 of paragraph 7#c77;,b7 and inserting paragraph 7#c71 7,b7 by striking is authorized to and inserting shall1 and 7,c7 by striking an additional program and inserting additional programs4 7f7 ,effective date 7#a7 ,in general ,except as provided in paragraph 7#b71 the amendments made by this section shall apply to allocations and reallocations after the date of the enactment of this ,act4 7#b7 ,reallocation ,the amendments made by subsection 7e7 shall apply to credits remaining available under section #dh;,a7d77#c7 of the ,internal ,revenue ,code of #aihf on the date of the enactment of this ,act4 #f4 ,enhancement of carbon oxide sequestration credit for direct air capture facilities 7a7 ,in general ,section #de,q of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 in subsection 7b77#a7-- 7,a7 in subparagraph 7,a71 by striking ,the applicable dollar amount and inserting ,subject to subparagraph 7,b71 the applicable dollar amount1 and 7,b7 by striking subparagraph 7,b7 and inserting the following3 7,b7 ,special rule for direct air capture facilities 7i7 ,in general ,subject to clause 7ii71 for any taxable year beginning in a calendar year after #bjba1 in the case of any qualified facility described in subsection 7d77#b77;,c71 the applicable dollar amount shall be an amount equal to-- 7,i7 for purposes of paragraph 7#c7 of subsection 7a71 an amount equal to the product of #abj and the inflation adjustment factor for such calendar year determined under section #dc7;b77#c77;,b7 for such calendar year1 determined by substituting #bjbj for #aiij1 and 7,,ii7 for purposes of paragraph 7#d7 of such subsection1 an amount equal to the product of #ge and the inflation adjustment factor for such calendar year determined under section #dc7;b77#c77;,b7 for such calendar year1 determined by substituting #bjbj for #aiij4 7ii7 ,use in enhanced oil or natural gas recovery project ,for any taxable year beginning in a calendar year after #bjcj1 this subparagraph shall not apply with respect to any qualified carbon oxide which is used by the taxpayer in a manner described in subsection 7a77#d77;,b77i74 7,c7 ,rounding ,the applicable dollar amount determined under subparagraph 7,a7 or 7,b7 shall be rounded to the nearest cent4 1 and 7#b7 in subsection 7d77#b7-- 7,a7 in subparagraph 7,b71 by striking or at the end1 and 7,b7 by striking subparagraph 7,c7 and inserting the following3 7,c7 in the case of a direct air capture facility1 not less than #aj1jjj metric tons of qualified carbon oxide during the taxable year1 or 7,d7 in the case of any facility not described in subparagraph 7,a71 7,b71 or 7,c71 not less than #ajj1jjj metric tons of qualified carbon oxide during the taxable year4 4 7b7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjba4