Section 1 Short title
This Act may be cited as the “Negate Emissions to Zero Act of 2021” or the “NET Zero Act of 2021”.
Negate Emissions to Zero Act of 2021
A BILL
To amend the Internal Revenue Code of 1986 to extend and modify the credit for carbon oxide sequestration, and for other purposes.
Sec. 2 Extension and modification of credit for carbon oxide sequestration
Extension— Section 45Q(d) is amended—
in paragraph (1), by inserting “except as provided in paragraph (3),” at the beginning and striking “January 1, 2026” and inserting “January 1, 2032”, and
by adding at the end:
“(3) Exclusion for direct air capture with dedicated geological storage—In the case of qualified carbon oxide captured by a direct air capture facility which is used by the taxpayer in a manner described in subsection (a)(3), paragraph (1) shall not apply.”
Modification of carbon oxide capture requirements— Section 45Q(d)(2)(C) is amended by striking “100,000” and replacing it with “1,000”.
Determination of applicable dollar amount—
In general— Section 45Q(b)(1) is amended by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the following new subparagraph:
“(B) Special rule for direct air capture facilities—For any taxable year beginning after December 31, 2021, in the case of any qualified facility described in subsection (d)(2)(C), the applicable dollar amount shall be an amount equal to—
“(i) for purposes of paragraph (3) of subsection (a), an amount equal to the product of $180 and the inflation adjustment factor for such calendar year determined under section 43(b)(3)(B) for such calendar year, determined by substituting “2020” for “1990”, and
“(ii) for purposes of paragraph (4) of such subsection, an amount equal to the product of $130 and the inflation adjustment factor for such calendar year determined under section 43(b)(3)(B) for such calendar year, determined by substituting “2020” for “1990”.”
Conforming amendments—
Section 45Q(b)(1)(A) is amended by striking “The applicable dollar amount” and inserting “Except as provided in subparagraph (B), the applicable dollar amount”.
Section 45Q(b)(1)(C), as redesignated by paragraph (1), is amended by striking “subparagraph (A)” and inserting “subparagraph (A) or (B)”.
Effective dates—
Extension— The amendment made by subsection (a) shall apply to facilities the construction of which begins after December 31, 2025.
Other amendments— The amendments made by subsections (b) and (c) shall apply to taxable years beginning after December 31, 2021.