Sec. 7. Extension of publicly traded partnership ownership structure to certain sequestration activities
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/bill/116/hr/5865/ih/section-7A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Subparagraph
(E)of section 7704(d)(1) of the Internal Revenue Code of 1986 is amended— by striking income and gains derived from the exploration and inserting income and gains derived from the following: The exploration ; by inserting or before industrial source ; by inserting a period after carbon dioxide ; by striking or the transportation or storage and inserting the following: The transportation or storage ; by striking the comma at the end and inserting a period; and by adding at the end the following new clauses: The production of any product or the generation of electric power from a project— which meets the requirements of subparagraphs
(A)and
(B)of section 48B(c)(1), and not less than 75 percent of the total carbon oxide emissions of which is qualified carbon oxide (as defined in section 45Q(c)) which is disposed of or utilized as provided in paragraph (6). The generation or storage of electric power (including associated income from the sale or marketing of energy, capacity, resource adequacy, and ancillary services) produced from any power generation facility which is, or from any power generation unit within, a qualified facility which is described in section 45Q(d) and not less than 50 percent (30 percent in the case of a facility or unit placed in service before January 1, 2019) of the total carbon oxide emissions of which is qualified carbon oxide which is disposed of or utilized as provided in paragraph (6). The sale of any good or service from any facility (other than a power generation facility) which is a qualified facility described in section 45Q(d) and the captured qualified carbon oxide (as so defined) of which is disposed of as provided in paragraph (6). . Section 7704(d) of such Code is amended by adding at the end the following new paragraph: For purposes of clauses
(iii)and
(iv)of paragraph (1)(E), carbon oxide is disposed of or utilized as provided in this paragraph if such carbon oxide is— placed into secure geological storage (as determined under section 45Q(f)(2)), used as a tertiary injectant (as defined in section 45Q(e)(3)) in a qualified enhanced oil or natural gas recovery project (as defined in section 45Q(e)(2)) and placed into secure geological storage (as so determined), or utilized in a manner described in section 45Q(f)(5). . The amendments made by this section shall take effect on the date of the enactment of this Act, in taxable years ending after such date.