Conserving Lobstering And Whales Act of 2022

“45U. Adaptive gear required to prevent right whale entanglement

“(a) In general—For purposes of section 38, in the case of an eligible lobstering business, the right whale entanglement prevention credit determined under this section for any taxable year is an amount equal to 30 percent of the amounts paid or incurred by the taxpayer for the taxable year for the purchase of any adaptive gear required by State or Federal law or regulation to prevent the entanglement of right whales in the course of the trade or business of lobstering.

“(b) Eligible lobstering business

“(1) In general—For purposes of this section, the term “eligible lobstering business” means any person—

“(A) engaged in the trade or business of lobstering, and

“(B) that submits a return of tax with respect to such taxable year that includes each of the following, as applicable, but in any case not less than 1 of—

“(i) a State commercial lobster license for such person, and

“(ii) a Federal vessel identification number for each vessel used by such person in the course of the trade or business of lobstering.

“(2) Controlled groups—All persons which are treated as a single employer under subsections (a) and (b) of section 52 shall be treated as a single taxpayer for purposes of this subsection.

“(c) Adaptive gear—For purposes of this section, the term “adaptive gear” means—

“(1) gear required by the National Oceanic and Atmospheric Administration as part of the Atlantic Large Whale Take Reduction Plan, and

“(2) equipment used for electronic vessel tracking required by the Atlantic States Marine Fisheries Commission for North Atlantic right whale risk reduction.”

“(34) in the case of an eligible lobstering business, the right whale entanglement prevention credit determined under 45U(a).”

“6431. Elective payment of right whale entanglement prevention credit

“(a) In general—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 the right whale entanglement prevention credit determined under section 45U(a), such taxpayer shall be treated as making a payment against the tax imposed by subtitle A for the taxable year equal to such amount.

“(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 (determined without extensions) 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 right whale entanglement prevention credit determined under section 45U(a) shall be reduced by the amount of the portion of such credit with respect to which the taxpayer makes such election.”