Accelerating Carbon Capture and Extending Secure Storage through 45Q Act

“6431. Elective payment for carbon oxide sequestration

“(a) Energy property—In the case of a taxpayer making an election (at such time and in such manner as the Secretary may provide) under this section with respect to any portion of a carbon oxide sequestration credit which would (without regard to this section) be determined under section 45Q with respect to such taxpayer, such taxpayer shall be treated as making a payment against the tax imposed by subtitle A for the taxable year equal to the amount of such portion.

“(b) Timing—The payment described in subsection (a) shall be treated as made on the later of the due date of the return of tax for such taxable year or the date on which such return is filed.

“(c) Exclusion from gross income—Gross income of the taxpayer shall be determined without regard to this section.

“(d) Denial of double benefit—Solely for purposes of section 38, in the case of a taxpayer making an election under this section, the carbon oxide sequestration credit determined under section 45Q shall be reduced by the amount of the portion of such credit with respect to which the taxpayer makes such election.

“(e) Special rules

“(1) In the case of a taxpayer making an election under this subsection, the credit subject to such an election shall be determined notwithstanding—

“(A) section 50(b)(3); and

“(B) section 50(b)(4) for an entity described in 50(b)(4)(A)(i).

“(2) In the case of a mutual or cooperative electric company described in this paragraph or an organization described in section 1381(a)(2), any income received or accrued in connection with the credit under this section shall be treated as an amount collected from members for the sole purpose of meeting losses and expenses.”