H. R. 5205

To amend the Internal Revenue Code of 1986 to extend and modify the credit for carbon oxide sequestration, and for other purposes.

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117 HR 5205 IH: Negate Emissions to Zero Act of 2021

U.S. House of Representatives

2021-09-10

text/xml

EN

Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I

117th CONGRESS

1st Session

H. R. 5205

IN THE HOUSE OF REPRESENTATIVES

September 10, 2021

Mr. Beyer

(for himself and

Ms. DelBene

) 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 extend and modify the credit for carbon oxide sequestration, and for other purposes.

1.

Short title

This Act may be cited as the

Negate Emissions to Zero Act of 2021

or the

NET Zero Act of 2021

.

2.

Extension and modification of credit for carbon oxide sequestration

(a)

Extension

Section 45Q(d) is amended—

(1)

in paragraph (1), by inserting

except as provided in paragraph (3),

at the beginning and striking

January 1, 2026

and inserting

January 1, 2032

, and

(2)

by adding at the end:

(3)

Exclusion for direct air capture with dedicated geological storage

In the case of qualified carbon oxide captured by a direct air capture facility which is used by the taxpayer in a manner described in subsection (a)(3), paragraph (1) shall not apply.

.

(b)

Modification of carbon oxide capture requirements

Section 45Q(d)(2)(C) is amended by striking

100,000

and replacing it with

1,000

.

(c)

Determination of applicable dollar amount

(1)

In general

Section 45Q(b)(1) is amended by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the following new subparagraph:

(B)

Special rule for direct air capture facilities

For any taxable year beginning after December 31, 2021, in the case of any qualified facility described in subsection (d)(2)(C), the applicable dollar amount shall be an amount equal to—

(i)

for purposes of paragraph (3) of subsection (a), an amount equal to the product of $180 and the inflation adjustment factor for such calendar year determined under section 43(b)(3)(B) for such calendar year, determined by substituting

2020

for

1990

, and

(ii)

for purposes of paragraph (4) of such subsection, an amount equal to the product of $130 and the inflation adjustment factor for such calendar year determined under section 43(b)(3)(B) for such calendar year, determined by substituting

2020

for

1990

.

.

(2)

Conforming amendments

(A)

Section 45Q(b)(1)(A) is amended by striking

The applicable dollar amount

and inserting

Except as provided in subparagraph (B), the applicable dollar amount

.

(B)

Section 45Q(b)(1)(C), as redesignated by paragraph (1), is amended by striking

subparagraph (A)

and inserting

subparagraph (A) or (B)

.

(d)

Effective dates

(1)

Extension

The amendment made by subsection (a) shall apply to facilities the construction of which begins after December 31, 2025.

(2)

Other amendments

The amendments made by subsections (b) and (c) shall apply to taxable years beginning after December 31, 2021.