[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 2677 Introduced in Senate (IS)]

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115th CONGRESS
  2d Session
                                S. 2677

 To amend the Internal Revenue Code of 1986 to allow a credit against 
            tax for coal-powered electric generation units.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 16, 2018

  Mrs. Capito introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to allow a credit against 
            tax for coal-powered electric generation units.

    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 ``Electricity Reliability and Fuel 
Security Act''.

SEC. 2. COAL-POWERED ELECTRIC GENERATION UNIT CREDIT.

    (a) Federal Tax Credit for Coal-Powered Electric Generation 
Units.--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:

``SEC. 45T. COAL-POWERED ELECTRIC GENERATION UNIT CREDIT.

    ``(a) In General.--For purposes of section 38, in the case of a 
taxpayer who owns or leases a coal-powered electric generation unit, 
the coal-powered electric generation unit credit determined under this 
section for a taxable year shall be an amount equal to the lesser of 30 
percent of qualified expenses paid or incurred by such taxpayer in such 
year or the product of--
            ``(1) $13, multiplied by
            ``(2) the nameplate capacity rating in kilowatts of such 
        unit.
    ``(b) Coal-Powered Electric Generation Unit.--For purposes of this 
section, the term `coal-powered electric generation unit' means an 
electric generation unit (as defined in section 48A(c)(6)) that uses 
coal to produce not less than 75 percent of the electricity produced by 
such unit.
    ``(c) Qualified Expenses.--For purposes of this section, the term 
`qualified expenses' means amounts paid or incurred for the operation 
or maintenance of a coal-powered electric generation unit, other than 
amounts paid or incurred for coal.
    ``(d) Transfer of Credit.--
            ``(1) In general.--With respect to a credit under 
        subsection (a) for any taxable year, a taxpayer may elect to 
        transfer all or any portion of such credit to any eligible 
        project partner as specified in such election and such eligible 
        project partner, not the taxpayer, shall be entitled to claim 
        the credit for such taxable year.
            ``(2) Election to transfer.--The taxpayer may elect to 
        transfer all or any portion of the credit to an eligible 
        project partner by attaching a statement to the taxpayer's tax 
        return for the taxable year in which the qualified expenses 
        were paid or incurred, providing such information as is 
        necessary for the Secretary to adequately identify the eligible 
        project partner and the amount of the credit being transferred.
            ``(3) Application to qualified public entities.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `taxpayer' shall include a qualified public 
                entity.
                    ``(B) Qualified public entity.--The term `qualified 
                public entity' means--
                            ``(i) a Federal, State, or local government 
                        entity, or any political subdivision, agency, 
                        or instrumentality thereof,
                            ``(ii) a mutual or cooperative electric 
                        company described in section 501(c)(12) or 
                        1381(a)(2), or
                            ``(iii) a not-for-profit electric utility 
                        which had or has received a loan or loan 
                        guarantee under the Rural Electrification Act 
                        of 1936.
            ``(4) Eligible project partner.--With respect to coal-
        powered electric generation unit, the term `eligible project 
        partner' means any person who--
                    ``(A) is responsible for operating, maintaining, or 
                repairing such unit,
                    ``(B) participates in the provision, including 
                transportation, of coal or other materials and supplies 
                to such unit,
                    ``(C) provides financing for the construction, 
                expansion, repair, or operation of such unit, or
                    ``(D) leases such unit.
            ``(5) Special rules.--
                    ``(A) Application to partnerships.--In the case of 
                a credit under subsection (a) which is determined at 
                the partnership level, the term `eligible project 
                partner' shall include any partner of the partnership.
                    ``(B) Taxable year in which credit taken into 
                account.--In the case of any credit (or portion 
                thereof) with respect to which an election is made 
                under paragraph (2), such credit shall be taken into 
                account in the first taxable year of the eligible 
                project partner ending with, or after, the taxpayer's 
                taxable year with respect to which the credit was 
                determined.
                    ``(C) Treatment of transfer under private use 
                rules.--For purposes of section 141(b)(1), 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 use.
    ``(e) Basis Adjustment.--For purposes of this subtitle, if a credit 
is allowed under this section with respect to any coal-powered electric 
generation unit, the basis, if any, of such property shall be reduced 
by the amount of the credit so allowed.
    ``(f) Termination.--This section shall apply to taxable years 
beginning after December 31, 2017, and ending before January 1, 
2023.''.
    (b) Conforming Amendment.--Section 501(c)(12)(I) is amended by 
inserting ``or 45T(d)(1)'' after ``section 45J(e)(I)''.
    (c) Credit To Be Part of General Business Credit.--
            (1) In general.--Section 38(b) of the Internal Revenue Code 
        of 1986 is amended by striking ``plus'' at the end of paragraph 
        (36), by striking the period at the end of paragraph (37) and 
        inserting ``, plus'', and by adding at the end the following 
        new paragraph:
            ``(38) the coal-powered electric generation unit credit 
        determined under section 45T(a).''.
            (2) Credit allowed against alternative minimum tax.--
        Subparagraph (B) of section 38(c)(4) of the Internal Revenue 
        Code of 1986 is amended--
                    (A) by redesignating clauses (x), (xi), and (xii) 
                as clauses (xi), (xii), and (xiii), respectively; and
                    (B) by inserting after clause (ix) the following 
                new clause:
                            ``(x) the credit determined under section 
                        45T,''.
    (d) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 is amended by adding at the end 
the following new item:

``Sec. 45T. Coal-powered electric generation unit credit.''.
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