Carbon Reduction and Tax Credit Act
This bill imposes an excise tax based on the carbon content of fuel. The tax is equal to $40 per ton of carbon contained in fuel (1) produced at a coal mine or an oil or gas well located in the United States; or (2) entered into the United States for consumption, use, or warehousing. The bill requires the tax rate to be adjusted for inflation.
The bill also allows a refundable tax credit of up to $1,000 for each individual taxpayer and each dependent of the taxpayer. The credit must be reduced by a specified amount if the taxpayer's adjusted gross income exceeds $314,000 ($157,000 in the case of a return other than a joint return). The bill requires that the dollar amounts of the credit be adjusted for inflation and specifies that nonresident aliens are ineligible for the credit.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5457 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 5457
To amend the Internal Revenue Code of 1986 to impose an excise tax on
fuel based on the carbon content of such fuel, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 17, 2019
Mr. Sean Patrick Maloney of New York introduced the following bill;
which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to impose an excise tax on
fuel based on the carbon content of such fuel, and for other purposes.
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 ``Carbon Reduction and Tax Credit
Act''.
SEC. 2. EXCISE TAX ON CARBON CONTENT OF FUELS.
(a) In General.--Chapter 38 of the Internal Revenue Code of 1986 is
amended by adding at the end thereof the following new subchapter:
``Subchapter E--Carbon Content Fee
``Sec. 4691. Carbon content.
``SEC. 4691. CARBON CONTENT.
``(a) In General.--In the case of a coal mine or an oil or gas
well, there is hereby imposed a tax equal to $40 per ton of carbon
contained in fuel produced--
``(1) at such mine or well located in the United States, or
``(2) entered into the United States for consumption, use,
or warehousing.
``(b) Adjustment for Years After 2020.--
``(1) In general.--In the case of any calendar year after
2020, the amount under subsection (a) shall be increased by an
amount equal to--
``(A) such amount, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for such calendar year,
determined--
``(i) by substituting `calendar year 2019'
for `calendar year 2016' in subparagraph
(A)(ii) thereof, and
``(ii) by substituting for the C-CPI-U
referred to in section 1(f)(3)(A) the amount
that such CPI would have been if the annual
percentage increase in CPI with respect to each
year after 2019 had been one percentage point
greater.
``(2) Terms related to cpi.--
``(A) Annual percentage increase.--For purposes of
subparagraph (B)(ii)(II), the term `annual percentage
increase' means the percentage (if any) by which C-CPI-
U for any year exceeds the C-CPI-U for the prior year.
``(B) Other terms.--Terms used in this paragraph
which are also used in section 1(f)(3) shall have the
same meanings as when used in such section.
``(3) Rounding.--Any increase determined under subparagraph
(B) shall be rounded to the nearest multiple of $50.''.
(b) Clerical Amendment.--The table of subchapters for chapter 38 of
the Internal Revenue Code of 1986 is amended by adding at the end the
following new item:
``subchapter e--carbon content fee''.
(c) Effective Date.--The amendments made by this section shall
apply to fuel produced after December 31, 2019.
SEC. 3. CREDIT.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to refundable credits)
is amended by inserting after section 36B the following new section:
``SEC. 36C. CREDIT FOR TAXPAYERS.
``(a) Allowance of Credit.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year with
respect to each taxpayer who is an individual and each dependent of the
taxpayer an amount equal to $1,000.
``(b) Limitation Based on Adjusted Gross Income.--The amount of the
credit allowable under subsection (a) shall be reduced (but not below
zero) by $100 for each $1,000 (or fraction thereof) by which the
taxpayer's adjusted gross income exceeds $314,000 ($157,000 in the case
of a return other than a joint return).
``(c) Inflation Adjustment.--In the case of a taxable year
beginning after 2020, the dollar amounts in subsections (a) and (b)
shall be increased by an amount equal to--
``(1) such dollar amount, multiplied by
``(2) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable year
begins, determined by substituting `2019' for `2016' in
subparagraph (A)(ii) thereof.
If any increase under this clause is not a multiple of $50, such
increase shall be rounded to the next lowest multiple of $50.
``(d) Nonresident Alien Ineligible for Credit.--No credit shall be
allowed under this section to any nonresident alien.''.
(b) Conforming Amendments.--
(1) Section 6211(b)(4)(A) of such Code is amended by
inserting ``36C,'' after ``36B,''.
(2) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting ``36C,'' after ``36B,''.
(3) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of 1986
is amended by inserting after the item relating to section 36C
the following new item:
``Sec. 36C. Credit for taxpayers.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2019.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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