[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4735 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 4735
To amend the Internal Revenue Code of 1986 to allow a credit for
certain facilities that remediate and reclaim coal refuse sites in the
United States by producing electricity from coal refuse.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 18, 2019
Mr. Meuser (for himself and Mr. Cartwright) 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 for
certain facilities that remediate and reclaim coal refuse sites in the
United States by producing electricity from coal refuse.
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 ``Mine Affected Community Energy and
Environment Act''.
SEC. 2. CREDIT FOR COAL REFUSE USED TO PRODUCE ELECTRICITY AT CERTAIN
FACILITIES.
(a) In General.--Section 45(e) of the Internal Revenue Code of 1986
is amended by adding at the end the following new paragraph:
``(12) Coal refuse facilities.--
``(A) Determination of credit amount.--
``(i) In general.--The credit determined
under this section (without regard to this
subparagraph) for any taxable year shall be an
amount equal to the product of--
``(I) $12.50, multiplied by
``(II) the tons of coal refuse used
at a coal refuse facility to produce
electricity at such facility during the
10-year period beginning on January 1,
2019.
``(ii) Exclusion.--Other than coal refuse
removed from sites that are subject to the
current remediation and reclamation activities
of a coal refuse facility, coal refuse
generated from sites where coal is mined after
the effective date of this legislation is
excluded from the determination of the credit
amount in this section.
``(B) Eligible recipient.--For purposes of this
subsection, the term `eligible recipient' means, with
respect to a coal refuse facility for a taxable year, a
taxpayer who, for each ton of eligible coal refuse
described in subparagraph (A) for such taxpayer for the
previous taxable year, contributed $0.50 to the State
in which such facility is located for restoring
riparian buffers within the communities where the coal
refuse is being removed or consumed, or in communities
located downstream of that activity, for the purpose of
improving water quality downstream of the communities
affected by such coal refuse and reducing carbon
emissions in such communities.
``(C) Credit eligibility.--In the case of a
facility described in subparagraph (A), if the owner of
such facility is not the producer of the electricity,
the person eligible for the credit determined under
subparagraph (A) shall be the lessee or the operator of
such facility.
``(D) Application of rules.--Rules similar to the
rules of paragraphs (1), (3), and (5) of this
subsection shall apply for purposes of determining the
amount of any increase under this paragraph.''.
(b) Coal Refuse Facility Defined.--Section 45(d) of such Code is
amended by adding at the end the following new paragraph:
``(12) Coal refuse facility.--In the case of a facility
using coal refuse to produce electricity, the term `coal refuse
facility' means any facility--
``(A) which was originally placed in service prior
to January 1, 2019, and combusts coal refuse or fuel
composed of at least 75 percent coal refuse by BTU
energy value, and
``(B) uses--
``(i) at a minimum, a circulating fluidized
bed combustion unit or a pressurized fluidized
bed combustion unit, equipped with a limestone
injection system for control of acid gases, and
``(ii) a fabric filter particulate emission
control system.''.
(c) Coal Refuse.--Section 45(c) of such Code is amended by adding
at the end the following new paragraph:
``(11) Coal refuse.--The term `coal refuse' means any waste
coal, rock, shale, slurry, culm, gob, boney, slate, clay, and
related materials associated with or near a coal seam that are
either brought aboveground or otherwise removed from a coal
mine in the process of mining coal or that are separated from
coal during the cleaning or preparation operations. Such term
includes underground development wastes, coal processing wastes
and excess spoil, but does not include overburden from surface
mining activities.''.
(d) Allowance of Credit Against Alternative Minimum Tax.--Section
38(c)(4)(B)(v) of such Code is amended by inserting ``or section
45(e)(12) (relating to coal refuse facilities)'' before the comma at
the end.
(e) Credit Refundable.--For purposes of this title, the credit
allowed by reason of this section shall be treated as a credit allowed
under subpart C (and not this subpart).
(f) Passive Activity Losses.--Section 469(d) of the Internal
Revenue Code of 1986 is amended by adding to section 469(d)(2)(A)(ii)
(other than section 27 ``and section 45(e)(12))''.
(g) Credit Made Part of General Business Credit.--Subsection (b) of
section 38 of the Internal Revenue Code of 1986 is amended by--
(1) striking ``plus'' at the end of paragraph (31);
(2) striking the period at the end of paragraph (32) and
inserting ``, plus''; and
(3) adding at the end the following new paragraph:
``(33) the coal refuse facility credit determined under
section 45(e)(12).''.
(h) Advance Payment of Credit.--Subchapter B of chapter 65 of such
Code is amended by adding at the end the following new section:
``SEC. 6433. ELECTIVE PAYMENT FOR COAL REFUSE FACILITIES.
``(a) In General.--Any person electing the application of this
section with respect to any eligible coal refuse facility shall be
treated as making a payment against the tax imposed by subtitle A for
the taxable year equal to the amount of the credit that would be
determined under section 45(e)(12) for such facility for such year.
Except as provided in subsection (b), such payment shall be treated as
made on the later of the due date of the return of such tax or the date
on which such return is filed.
``(b) Quarterly Election.--
``(1) In general.--At the close of any quarter of the
taxable year of any taxpayer entitled to a credit with respect
to an eligible coal refuse facility, if a claim is filed under
this section, the Secretary shall pay (without interest) an
amount equal to the credit determined under section 45 for such
quarter, calculated as if such credit were determined on a
quarterly basis.
``(2) Time for filing claim.--No claim filed under this
subsection (b) shall be allowed unless filed during the first
quarter following the last quarter included in the claim.
``(3) Payment of claim.--Notwithstanding paragraph (1) of
this subsection, if the Secretary has not paid pursuant to a
claim filed under this section within 45 days of the date of
the filing of such claim (20 days in the case of an electronic
claim), the claim shall be paid with interest from such date
determined by using the overpayment rate and method under
section 6621.
``(c) Special Rules for Partnerships and S Corporations.--In the
case of an eligible coal refuse facility owned or used by a partnership
or an S corporation--
``(1) the elections under subsection (a) or (b) may be made
only by such partnership or S corporation,
``(2) such partnership or S corporation shall be treated as
making the payment referred to in subsection (a) only to the
extent of the proportionate share of such partnership or S
corporation as is owned by persons who would be treated as
making such payment if the property were owned or used by such
persons, and
``(3) the return required to be made by such partnership or
S corporation under section 6031 or 6037 (as the case may be)
shall be treated as a return of tax for purposes of subsection
(a).
``(d) Coordination With Production Credits.--In the case of any
eligible coal refuse facility with respect to which an election is made
under subsection (a) or (b), no credit shall be determined under
section 45 with respect to such facility for the taxable year in which
such election is made.
``(e) Eligible Coal Refuse Facility.--The term `eligible coal
refuse facility' means a facility eligible for a credit during the
taxable year pursuant to section 45(d)(12).
``(f) Exclusion From Gross Income.--Any credit or refund allowed or
made by reason of this section shall not be includible in gross income
or alternative minimum taxable income.
``(g) Regulations.--The Secretary may by regulations prescribe the
conditions, not inconsistent with the provisions of this section, under
which payments may be made under this section.''.
(i) Effective Date.--The amendments made by this section shall
apply to coal refuse used to produce electricity after December 31,
2018, in taxable years beginning after such date.
<all>