S.Amdt. 3645

SA 3645. Ms. HEITKAMP (for herself, Mrs. Capito, Mr. Donnelly, Mr.
Tester, Mr. Blunt, Mr. Barrasso, Mr. Coats, Mr. Daines, and Mr. Enzi)
submitted an amendment intended to be proposed to amendment SA 3464
submitted by Mr. Thune (for himself and Mr. Nelson) to the bill H.R.
636, to amend the Internal Revenue Code of 1986 to permanently extend
increased expensing limitations, and for other purposes; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. ___. EXTENSION OF ENHANCED CARBON DIOXIDE SEQUESTRATION
CREDIT.

(a) Short Title.--This section may be cited as the ``Carbon
Capture Act''.
(b) In General.--
(1) Increase in credit rate for certain carbon capture
equipment.--Section 45Q(a) of the Internal Revenue Code of
1986 is amended--
(A) in paragraph (1)--
(i) by amending subparagraph (A) to read as follows:
``(A) captured by the taxpayer using qualified carbon
capture equipment which is originally placed in service at a
qualified facility before the date of the enactment of the
Carbon Capture Act, and'', and
(ii) in subparagraph (B), by striking ``and'' at the end,
(B) in paragraph (2)--
(i) by amending subparagraph (A) to read as follows:
``(A) captured by the taxpayer using qualified carbon
capture equipment which is originally placed in service at a
qualified facility before the date of the enactment of the
Carbon Capture Act,'', and
(ii) in subparagraph (C), by striking the period at the end
and inserting a comma, and
(C) by adding at the end the following new paragraphs:
``(3) the applicable dollar amount (as determined under
subsection (b)(1)) per metric ton of qualified carbon dioxide
which is--
``(A) captured by the taxpayer using qualified carbon
capture equipment which is originally placed in service at a
qualified facility on or after the date of the enactment of
the Carbon Capture Act, during the 10-year period beginning
on the date the equipment was originally placed in service,
and
``(B) disposed of by the taxpayer in secure geological
storage and not used by the taxpayer as described in
paragraph (4)(B), and
``(4) the applicable dollar amount (as determined under
subsection (b)(1)) per metric ton of qualified carbon dioxide
which is--
``(A) captured by the taxpayer using qualified carbon
capture equipment which is originally placed in service at a
qualified facility on or after the date of the enactment of
the Carbon Capture Act, during the 10-year period beginning
on the date the equipment was originally placed in service,
``(B) used by the taxpayer as a tertiary injectant in a
qualified enhanced oil or natural gas recovery project, and
``(C) disposed of by the taxpayer in secure geological
storage.''.
(2) Applicable dollar amount; additional equipment;
election.--Section 45Q of such Code is amended--
(A) by redesignating subsections (b) through (e) as
subsections (c) through (f), respectively, and
(B) by inserting after subsection (a) the following new
subsection:
``(b) Applicable Dollar Amount; Additional Equipment;
Election.--
``(1) Applicable dollar amount.--
``(A) In general.--The applicable dollar amount shall be an
amount equal to--
``(i) for any taxable year beginning in a calendar year
after 2015 and ending before 2026--

``(I) for purposes of paragraph (3) of subsection (a), the
dollar amount established by linear interpolation between
$22.66 and $30 for each calendar year during such period, and
``(II) for purposes of paragraph (4) of such subsection,
the dollar amount established by linear interpolation between
$12.83 and $30 for each calendar year during such period, and

``(ii) for any taxable year beginning in a calendar year
after 2025, an amount equal to the product of $30 and the
inflation adjustment factor for such calendar year determined
under section 43(b)(3)(B) for such calendar year, determined
by substituting `2024' for `1990'.
``(B) Rounding.--The applicable dollar amount determined
under subparagraph (A) shall be rounded to the nearest cent.
``(2) Installation of additional carbon capture equipment
on existing qualified facility.--In the case of a qualified
facility placed in service before the date of the enactment
of the Carbon Capture Act, for which additional qualified
carbon capture equipment is placed in service on or after the
date of the enactment of the Carbon Capture Act, the amount
of qualified carbon dioxide which is captured by the taxpayer
shall be equal to--
``(A) for purposes of paragraph (1)(A) and (2)(A) of
subsection (a), the lesser of--
``(i) the total amount of qualified carbon dioxide captured
at such facility for the taxable year, or
``(ii) the total amount of the carbon dioxide capture
capacity of the qualified carbon capture equipment in service
at such facility on the day before the date of the enactment
of the Carbon Capture Act, and
``(B) for purposes of paragraph (3)(A) and (4)(A) of such
subsection, an amount (not less than zero) equal to the
excess of--
``(i) the amount described in clause (i) of subparagraph
(A), over
``(ii) the amount described in clause (ii) of such
subparagraph.
``(3) Election.--For purposes of determining the carbon
dioxide sequestration credit under this section, a taxpayer
may elect to have the dollar amounts applicable under
paragraph (1) or (2) of subsection (a) apply in lieu of the
dollar amounts applicable under paragraph (3) or (4) of such
subsection for each metric ton of qualified carbon dioxide
which is captured by the taxpayer using qualified carbon
capture equipment which is originally placed in service at a
qualified facility on or after the date of the enactment of
the Carbon Capture Act.''.
(3) Election to allow credit to person that disposes of or
uses the carbon dioxide.--Paragraph (5) of section 45Q(e) of
such Code, as redesignated by paragraph (2)(A), is amended to
read as follows:
``(5) Credit attributable to taxpayer.--
``(A) In general.--Except as provided subparagraph (B) or
in any regulations prescribed by the Secretary, any credit
under this section shall be attributable to--
``(i) in the case of qualified carbon dioxide captured
using qualified carbon capture equipment which is originally
placed in service at a qualified facility before the date of
the enactment of the Carbon Capture Act, the person that
captures and physically or contractually ensures the disposal
of or the use as a tertiary injectant of such qualified
carbon dioxide, and
``(ii) in the case of qualified carbon dioxide captured
using qualified carbon capture equipment which is originally
placed in service at a qualified facility on or after the
date of the enactment of the Carbon Capture Act, the person
that owns the qualified carbon capture equipment and
physically or contractually ensures the capture and disposal
of or the use as a tertiary injectant of such qualified
carbon dioxide.
``(B) Election.--If the person described in subparagraph
(A) makes an election under this subparagraph in such time
and manner as the Secretary may prescribe by regulations, the
credit under this section--
``(i) shall be allowable to the person that disposes of the
qualified carbon dioxide or uses the qualified carbon dioxide
as a tertiary injectant, and
``(ii) shall not be allowable to the person described in
subparagraph (A).''.

[[Page S1919]]

(4) Definition of qualified facility and qualified carbon
capture equipment.--Subsection (d) of section 45Q of such
Code, as redesignated by paragraph (2)(A), is amended to read
as follows:
``(d) Qualified Facility and Qualified Carbon Capture
Equipment.--
``(1) Qualified facility.--For purposes of this section,
the term `qualified facility' means any industrial facility--
``(A)(i) the construction of which begins before January 1,
2022, and--
``(I) the original planning and design for such facility
includes installation of qualified carbon capture equipment,
or
``(II) construction of qualified carbon capture equipment
begins before such date, or
``(ii) which is placed in service before January 1, 2022,
and includes installation of qualified carbon capture
equipment, provided that construction of such carbon capture
equipment begins before such date, and
``(B) which captures--
``(i) in the case of an electricity generating facility,
not less than 500,000 metric tons of qualified carbon dioxide
during the taxable year, or
``(ii) in the case of facility not described in clause (i),
not less than 100,000 metric tons of qualified carbon dioxide
during the taxable year.
``(2) Qualified carbon capture equipment.--For purposes of
this section, the term `qualified carbon capture equipment'
means--
``(A) carbon capture equipment placed in service before
January 1, 2022, and
``(B) carbon capture equipment the construction of which
begins before such date.''.
(5) Application of section.--Subsection (f) of section 45Q
of such Code, as redesignated by paragraph (2)(A), is amended
to read as follows:
``(f) Application of Section for Certain Carbon Capture
Equipment.--In the case of any qualified carbon capture
equipment placed in service before the date of the enactment
of the Carbon Capture Act, the credit under this section
shall apply with respect to qualified carbon dioxide captured
using such equipment before the end of the calendar year in
which the Secretary, in consultation with the Administrator
of the Environmental Protection Agency, certifies that
75,000,000 metric tons of qualified carbon dioxide have been
taken into account in accordance with paragraphs (1) and (2)
of subsection (a).''.
(6) Regulations.--Section 45Q of such Code is amended by
adding at the end the following new subsection:
``(g) Regulations.--The Secretary may prescribe such
regulations and other guidance as may be necessary or
appropriate to carry out this section, including regulations
or other guidance to--
``(1) ensure proper allocation under subsection (a) for
qualified carbon dioxide captured by a taxpayer during the
taxable year ending after the date of the enactment of the
Carbon Capture Act, and
``(2) determine whether a facility satisfies the
requirements under subsection (d)(1) during such taxable
year.''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
______