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”.
Redeeming Effectiveness to Carbon Oxide Utilization Plus Sequestration Act of 2020
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.
Sec. 2 Enhanced efficiency election for carbon oxide sequestration credit
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).”
Effective date— The amendment made by this section shall apply to taxable years beginning after December 31, 2019.