RECOUPS Act of 2020

Redeeming Effectiveness to Carbon Oxide Utilization Plus Sequestration Act of 2020 or the RECOUPS Act of 2020

This bill allows taxpayers who claim a carbon oxide sequestration tax credit to elect to treat the credit as a payment in excess of tax liability. This allows the taxpayer a direct payment of 90% of the dollar amount of the credit.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7896 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 7896

To amend the Internal Revenue Code of 1986 to allow the carbon capture 
credit to enhance the efficiency and effectiveness of the carbon oxide 
                       sequestration tax credit.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 31, 2020

 Mr. Bergman (for himself and Mrs. Fletcher) 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 allow the carbon capture 
credit to enhance the efficiency and effectiveness of the carbon oxide 
                       sequestration tax 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 ``Redeeming Effectiveness to Carbon 
Oxide Utilization Plus Sequestration Act of 2020'' or ``RECOUPS Act of 
2020''.

SEC. 2. ENHANCED EFFICIENCY ELECTION FOR CARBON OXIDE SEQUESTRATION 
              CREDIT.

    (a) In General.--Section 45Q(f) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(8) Efficiency election.--
                    ``(A) In general.--In the case of any carbon 
                capture equipment placed in service on or after the 
                date of the enactment of the Bipartisan Budget Act of 
                2018, a taxpayer that claims a carbon oxide 
                sequestration credit for any taxable year may elect to 
                treat the credit as a payment in excess of the tax 
                imposed, or the estimated tax payment required, by 
                subtitle A to the extent such credit exceeds the tax 
                liability of such taxpayer in such taxable year.
                    ``(B) Limitation.--If the taxpayer described in 
                subparagraph (A) makes an election under this paragraph 
                (in such time and manner as the Secretary may prescribe 
                by regulations), the dollar amounts applicable under 
                paragraph (3) or (4) of subsection (a) shall be 90 
                percent of the applicable dollar amount determined 
                under paragraph (1) of subsection (b).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2019.
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