Sec. 135. Production tax credit for certain electricity generation using carbon capture utilization and storage
574 words·~3 min read·
/bill/116/hr/9054/ih/section-135·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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: For purposes of section 38, the carbon capture production credit for any taxable year is an amount equal to— in the case of a qualified facility using fossil fuels, the product of— the megawatt hours of electricity— produced by the taxpayer at a qualified facility during the 20-year period beginning on the date the facility was originally placed in service, and sold by the taxpayer to an unrelated person during the taxable year, multiplied by $30 per megawatt hour in the case of a qualified facility storing carbon in secure geological storage, or $24 per megawatt hour in the case of a qualified facility using captured carbon oxide as a tertiary injectant in a qualified enhanced oil or natural gas recovery project, multiplied by the discount factor, in the case of electricity generation facilities using exclusively qualified hydrogen, qualified ammonia, or qualified blends, the product of— the megawatt hours of electricity— produced by the taxpayer at a qualified facility during the 20-year period beginning on the date the facility was originally placed in service, and sold by the taxpayer to an unrelated person during the taxable year, multiplied by $100 per megawatt hour.
For purposes of this section: The term discount factor means an amount equal to 90 divided by the annual carbon dioxide emissions rate expressed in pounds per megawatt-hour for a qualified facility, except that— if the annual carbon dioxide emissions rate for a qualified facility is less than 90 pounds per megawatt-hour, the discount factor is equal to 1, and if the annual carbon dioxide emissions rate for a qualified facility is greater 180 pounds per megawatt-hour, the discount factor is equal to 0.
The term qualified ammonia means ammonia fuel produced with less than 17.5 pounds of carbon dioxide emissions per million Btu of gross fuel heating value. The term qualified blend means a blend of qualified hydrogen or qualified ammonia with fossil fuel in which the fossil fuel provides no more than 30 percent of the heating value input. The term qualified facility means an electricity generation plant that— is equipped with carbon capture equipment, the construction of which commenced before January 1, 2033, captures carbon oxide using carbon capture equipment, stores captured carbon oxide in secure geological storage or uses captured carbon oxide as a tertiary injectant in a qualified enhanced oil or natural gas recovery project, and has not been the basis for a credit received under section 45Q.
The term qualified hydrogen means hydrogen fuel produced with less than 17.5 pounds of carbon dioxide emissions per million Btu of gross fuel heating value. . Section 38(B) of such Code is amended by striking plus at the end of paragraph (32), by striking the period at the end of paragraph
(33)and inserting , plus , and by adding at the end the following new paragraph: the carbon capture production credit under section 45U(a). . 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. 45U. Electricity produced using carbon capture utilization and storage technology. . The amendments made by this section shall apply with respect to electricity sold and produced after the date of the enactment of this Act.