[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 985 Introduced in Senate (IS)]

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117th CONGRESS
  1st Session
                                 S. 985

 To amend the Internal Revenue Code of 1986 to provide direct payments 
of the renewable electricity production credit, the energy credit, and 
                 the carbon oxide sequestration credit.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 25, 2021

 Mr. Carper (for himself, Mr. Whitehouse, and Mr. Heinrich) 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 provide direct payments 
of the renewable electricity production credit, the energy credit, and 
                 the carbon oxide sequestration credit.

    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 ``Save America's Clean Energy Jobs 
Act''.

SEC. 2. DIRECT PAYMENT OF RENEWABLE ELECTRICITY PRODUCTION CREDIT AND 
              ENERGY CREDIT.

    (a) Renewable Electricity Production Credit.--
            (1) In general.--Section 45(e) of the Internal Revenue Code 
        of 1986 is amended by adding at the end the following new 
        paragraph:
            ``(12) Election for direct payment.--
                    ``(A) In general.--In the case of any applicable 
                facility, the amount of any credit determined under 
                subsection (a) with respect to such facility for any 
                taxable year during the period described in paragraph 
                (2)(A)(ii) of such subsection shall, at the election of 
                the taxpayer, be treated as a payment equal to such 
                amount which is made by the taxpayer against the tax 
                imposed by chapter 1 for such taxable year.
                    ``(B) Applicable facility.--For purposes of this 
                paragraph, the term `applicable facility' means a 
                qualified facility--
                            ``(i) the construction of which began 
                        before January 1, 2023, and
                            ``(ii) which is originally placed in 
                        service after March 25, 2021.
                    ``(C) Form and effect of election.--
                            ``(i) In general.--An election under 
                        subparagraph (A) shall be made in such manner 
                        as the Secretary may prescribe and not later 
                        than the due date (including extensions) for 
                        the return of tax for the taxable year in which 
                        the qualified facility is originally placed in 
                        service. Such election, once made, shall be 
                        irrevocable with respect to such qualified 
                        facility for the period described in subsection 
                        (a)(2)(A)(ii).
                            ``(ii) Effect.--Any election under 
                        subparagraph (A) shall, for any taxable year 
                        during the period described in subsection 
                        (a)(2)(A)(ii), reduce the amount of the credit 
                        which would (but for this paragraph) be 
                        allowable under this section with respect to 
                        such qualified facility for such taxable year 
                        to zero.
                    ``(D) Application to partnerships and s 
                corporations.--In the case of a partnership or S 
                corporation which makes an election under subparagraph 
                (A)--
                            ``(i) such subparagraph shall apply with 
                        respect to such partnership or corporation 
                        without regard to the fact that no tax is 
                        imposed by chapter 1 on such partnership or 
                        corporation, and
                            ``(ii)(I) in the case of a partnership, 
                        each partner's distributive share of the credit 
                        determined under subsection (a) with respect to 
                        the qualified facility shall be deemed to be 
                        zero, and
                            ``(II) in the case of a S corporation, each 
                        shareholder's pro rata share of the credit 
                        determined under subsection (a) with respect to 
                        the qualified facility shall be deemed to be 
                        zero.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to facilities placed in service after March 25, 
        2021.
    (b) Energy Credit.--
            (1) In general.--Section 48 of the Internal Revenue Code of 
        1986 is amended by adding at the end the following new 
        subsection:
    ``(e) Election for Direct Payment.--
            ``(1) In general.--In the case of any applicable property 
        placed in service during any taxable year, the amount of any 
        credit determined under subsection (a) with respect to such 
        property for such taxable year shall, at the election of the 
        taxpayer, be treated as a payment equal to such amount which is 
        made by the taxpayer against the tax imposed by chapter 1 for 
        such taxable year (regardless of whether such tax would have 
        been on such taxpayer).
            ``(2) Applicable property.--For purposes of this 
        subsection, the term `applicable property' means any energy 
        property (including any qualified property which is treated as 
        energy property pursuant to subsection (a)(5))--
                    ``(A) the construction of which began before 
                January 1, 2023, and
                    ``(B) which is originally placed in service after 
                March 25, 2021.
        Such term shall not include any property if a credit for 
        qualified progress expenditures has been allowed with respect 
        to such property before the date of any election under 
        paragraph (1).
            ``(3) Form and effect of election.--
                    ``(A) In general.--An election under paragraph (1) 
                shall be made in such manner as the Secretary may 
                prescribe and not later than the due date (including 
                extensions) for the return of tax for the taxable year 
                in which the applicable property is originally placed 
                in service. Such election, once made, shall be 
                irrevocable with respect to the applicable property.
                    ``(B) Effect.--Any election under paragraph (1) 
                shall reduce the amount of the credit which would (but 
                for this subsection) be allowable under this section 
                with respect to such applicable property for the 
                taxable year in which such property is placed in 
                service to zero.
                The reduction in credit under subparagraph (B) shall 
                not be taken into account for purposes of applying 
                section 50(a) with respect to such property.
            ``(4) Application to partnerships and s corporations.--
        Rules similar to the rules of section 45(e)(12)(D) shall apply 
        for purposes of this subsection.
            ``(5) Regulations and guidance.--The Secretary shall 
        prescribe such regulations and guidance as may be necessary to 
        carry out this subsection, including regulations or guidance to 
        relating to reporting on the use of applicable property for 
        purposes of administering the recapture under section 50(a) of 
        any refund made by reason of this section.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to property placed in service after March 25, 2021.
    (c) Carbon Oxide Sequestration Credit.--
            (1) In general.--Section 45Q(f) of the Internal Revenue 
        Code of 1986 is amended by adding at the end the following new 
        paragraph:
            ``(8) Election for direct payment.--
                    ``(A) In general.--In the case of any applicable 
                equipment, the amount of any credit determined under 
                subsection (a) with respect to any qualified carbon 
                oxide captured by such equipment for any taxable year 
                during the applicable period shall, at the election of 
                the taxpayer, be treated as a payment equal to such 
                amount which is made by the taxpayer against the tax 
                imposed by chapter 1 for such taxable year.
                    ``(B) Applicable equipment.--For purposes of this 
                paragraph, the term `applicable equipment' means carbon 
                capture equipment--
                            ``(i) which is originally placed in service 
                        after March 25, 2021, at a qualified facility 
                        the construction of which began before January 
                        1, 2023, and
                            ``(ii)(I) the construction of which began 
                        before January 1, 2023, or
                            ``(II) which was placed in service at a 
                        qualified facility the original planning and 
                        design of which included such equipment.
                    ``(C) Applicable period.--For purposes of this 
                paragraph, the term `applicable period' means the 12-
                year period beginning on the date that the applicable 
                equipment was originally placed in service.
                    ``(D) Form and effect of election.--
                            ``(i) In general.--An election under 
                        subparagraph (A) shall be made in such manner 
                        as the Secretary may prescribe and not later 
                        than the due date (including extensions) for 
                        the return of tax for the taxable year in which 
                        the applicable equipment is originally placed 
                        in service. Such election, once made, shall be 
                        irrevocable with respect to such applicable 
                        equipment for the applicable period.
                            ``(ii) Effect.--Any election under 
                        subparagraph (A) shall, for any taxable year 
                        during the applicable period, reduce the amount 
                        of the credit which would (but for this 
                        paragraph) be allowable under this section with 
                        respect to such applicable equipment for such 
                        taxable year to zero.
                    ``(E) Application to partnerships and s 
                corporations.--In the case of a partnership or S 
                corporation which makes an election under subparagraph 
                (A)--
                            ``(i) such subparagraph shall apply with 
                        respect to such partnership or corporation 
                        without regard to the fact that no tax is 
                        imposed by chapter 1 on such partnership or 
                        corporation, and
                            ``(ii)(I) in the case of a partnership, 
                        each partner's distributive share of the credit 
                        determined under subsection (a) with respect to 
                        the qualified carbon oxide captured using such 
                        applicable equipment shall be deemed to be 
                        zero, and
                            ``(II) in the case of a S corporation, each 
                        shareholder's pro rata share of the credit 
                        determined under subsection (a) with respect to 
                        the qualified carbon oxide captured using such 
                        applicable equipment shall be deemed to be 
                        zero.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to property placed in service after March 25, 2021.
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