Improvements to credit for carbon oxide sequestration

(a)

Increase in applicable dollar amount

Section 45Q(b)(1)(A) of the Internal Revenue Code of 1986 is amended—(1)in clause (i)(I) and (ii)(I), by striking $50 and inserting $85, and(2)in clause (i)(II) and (ii)(II), by striking $35 and inserting $50. (b)

Repeal of placed-In-Service deadline; expansion of facilities to which credit applies

Section 45Q(d) of such Code is amended to read as follows:

(d)

Qualified facility

For purposes of this section, the term ‘qualified facility’ means any industrial facility or direct air capture facility which captures—(1)in the case of a facility which emits not more than 500,000 metric tons of carbon oxide into the atmosphere during the taxable year, not less than 10,000 metric tons of qualified carbon oxide during the taxable year which is utilized in a manner described in subsection (f)(5),(2)in the case of an electricity generating facility which is not described in paragraph (1), not less than 100,000 metric tons of qualified carbon oxide during the taxable year,(3)in the case of a direct air capture facility, not less than 10,000 metric tons of qualified carbon oxide during the taxable year, or(4)in the case of any facility not described in paragraph (1), (2), or (3), not less than 25,000 metric tons of qualified carbon oxide during the taxable year.

(c)

Extension of credit period

Paragraphs (3)(A) and (4)(A) of section 45Q(a) of such Code are each amended by striking 12-year and inserting 20-year.(d)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2020.